A STUDY ON FINANCIAL PERFORMANCE USING RATIO

ANALYSIS AT CHERPULASSERY CO-OPERATIVE URBAN

BANK LTD

PROJECT REPORT
Submitted to

MAHATMA GANDHI UNIVERSITY, KOTTAYAM

In Partial Fulfillment of the Requirements for the Award of

MASTERS DEGREE IN BUSINESS ADMINISTRATION

(2013-2015)

By

RAGESH.M.P
Register No: 50735

RAJAGIRI COLLEGE OF SOCIAL SCIENCES

RAJAGIRI P.O
KOCHI-683104
1
 DECLARATION

I hereby declare that the work incorporated in this project report entitled A STUDY ON
FINANCIAL PERFORMANCE FOR USING RATIO ANALYSIS in bona fide record of the
project done by me as a part of the Final Year Project during the period from April 16th, 2015 to
June 15th, 2014 at Co-operative Urban Bank Cherpulassery.
The study has been undertaken in partial fulfillment of Masters Degree in Business
Administration at Rajagiri College of Social Sciences, Cochin, affiliated to Mahatma Gandhi
University, Kottayam.
I also declare that this report has not been submitted in full or part thereof, to any
University or Institution for the award of any Degree Diploma.

DATE: RAGESH.M.P

PLACE: KALAMASSERY

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 ACKNOWLEDGEMENT

Gaining real time corporate knowledge at the crucial period of my MBA studies has helped me a
lot to frame my career. At the very outset of this report, I would like to express my sincere
thanks to all the persons who have helped me in the summer internship. Without their active
guidance and encouragement, this wouldnt have been successful.

I express my sincere gratitude to Dr. Binoy Joseph, Principal, Rajagiri College of Social
Sciences, for showing his overwhelming support and interest shown in the work.

I hereby solemnly submit my earnest and humble thanks to Dr. Roshna Varghese, Rajagiri
College of Social Sciences, for the guidance, valuable and timely suggestions throughout the
completion of my project work.

I also take this opportunity to extend my profound gratitude and indebtedness to my company
guide Mr. Unnikrishnan.V.C, General Manager, Cherpulassery Co-operative Urban Bank, for
having spared his valuable time for enabling me to learn all aspects of this project.

Last but not least, I am thankful to Lord Almighty and my family members for having
me to complete my study successfully.

RAGESH.M.P

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 TABLE OF CONTENTS

EXECUTIVE SUMMARY 01
CHAPTER 1: INTRODUCTION 02
1.1 INTRODUCTION 03
1.2 PROBLEM STATEMENT 04
1.3 OBJECTIVE OF THE STUDY 04
1.4 CHAPTER SCHEME 04

CHAPTER 2: INDUSTRY AND COMPANY PROFILE 05

2.1 INDUSTRY PROFILE: COOPERATIVE BANKS IN INDIA 06
2.2 ORIGIN OF CO-OPERATIVE BANKS 06
2.3 INDIAN BANKING SYSYTEM 08
2.4 ROLE OF C-OPERATIVE BANKING IN INDIA 09
2.5 AREA OF OPERATION 10
2.6 OPERATIONS OF CO-OPERATIVE BANKS 12
2.8 REGULATION OF CO-OPERATIVE BANKS 15

CHAPTER 3: LITERATURE REVIEW & THEORETICAL 16

FRAMEWORK

3.1 LITERATURE REVIEW 17

3.2 THEORETICAL FRAMEWORK 19

CHAPTER 4: RESEARCH METHODOLOGY 26

4.1 INTRODUCTION 27
4.2 OBJECTIVES OF THE STUDY 27
4.3 METHODS OF DATA COLLECTION 27
4.4 PERIOD OF STUDY 28
5.5 LIMITATIONS OF THE STUDY 28

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CHAPTER 5: DATA ANALYSIS AND INTERPRETATIONS 29

5.1 LIQUIDITY RATIOS 30

5.2 SOLVENCY RATIOS 34
5.3 PROFITABILITY RATIOS 37
5.4 EFFICIENCY RATIOS 40

CHAPTER 6: FINDINGS, SUGGESTINONS AND CONCLUSION 41

6.1 FINDINGS 42
6.2 SUGGESTIONS 43
6.3 CONCLUSION 43

BIBILOGRAPHY 45

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 LIST OF TABLES

TABLE NO TITLE PAGE NO

TABLE 5.1 CURRENT RATIO.. 31

TABLE 5.2 QUICK RATIO. 32
TABLE 5.3 LIQUID ASSET TO TOTAL ASSET RATIOS. 33
TABLE 5.4 DEBT EQUITY RATIO. 34
TABLE 5.5 FIXED ASSET TO NETWORTH RATIO 35
TABLE 5.6 NET CAPITAL RATIO.. 36
TABLE 5.7 NET PROFIT TO TOTAL ASSET RATIO.. 37
TABLE 5.8 NET PROFIT TO NETWORTH RATIOS 38
TABLE 5.9 NET PROFIT TO FIXED ASSET RATIO 39
TABLE 5.10 GROSS RATIO 40

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 LIST OF FIGURES

FIGURE NO TITLE PAGE NO

FIGURE 2.7 TYPES OF CO-OPERATIVE BANK.. 14

FIGURE 3.3 CLASSIFICATION OF RATIOS 20
FIGURE 5.1 CURRENT RATIO... 31
FIGURE 5.2 QUICK RATIO.... 32
FIGURE 5.3 LIQUID ASSET TO TOTAL ASSET RATIO 33
FIGURE 5.4 DEBT EQUITY RATIO 34
FIGURE 5.5 FIXED ASSET TO NETWORTH RATIO.. 35
FIGURE 5.6 NET CAPITAL RATIO. 36
FIGURE 5.7 NET PROFIT TO TOTAL ASSET RATIO. 37
FIGURE 5.8 NET PROFIT TO NETWORTH RATIO. 38
FIGURE 5.9 NET PROFIT TO FIXED ASSET RATIO.. 39
FIGURE 5.10 GROSS RATIO 40

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EXECUTIVE SUMMARY

Co-operative Urban Banks (CUBs) are among the major players in Indias financial and
economic system: Rs.100 thousand crores of deposits, Rs.67 thousand crores of credit and a 10%
share of the deposits market in India as on 31st March 2004. CUBs have the advantage that they
are self-reliant institution stand on its own legs without support from the state and central
Government.

The current ratio was found to be more than one for all the periods, and fluctuated over
the years. As this ratio actually shows satisfactory trend it could be concluded that the bank had
maintain a reasonable level of the liquidity position. Liquid Assets to Total Assets Ratio
indicates that the bank has been efficiently managing the liquid assets. And the net worth
position of the bank was positive. Net capital ratio was positive for all the years and indicated
that the assets of the bank were sufficient to cover its liabilities

The co-operative urban sector has to face the challenges of meeting the competition at the
domestic and international level due to the reform process resulting in increased privatization of
the economy and also increased market access to the domestic market at the global level. But
CUBs have more than demonstrated their ability to actively contribute to recent changes in the
sector and new competitive pressures pose serious challenges. Since the operational efficiency of
the CUBs is crucial in ensuring adequate and timely flow of credit to urban and semi-urban
people for diverse purposes, ratio analysis deserves serious consideration.

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 CHAPTER 1
INTRODUCTION

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 CHAPTER 1
INTRODUCTION
1.1 . INTRODUCTION
A co-operative bank is a financial entity which belongs to its members, who are at the same
time the owners and the customers of their bank. Co-operative banks are often created by persons
belonging to the same local or professional community or sharing a common interest. Co-
operative banks generally provide their members with a wide range of banking and financial
services (loans, deposits, banking accounts etc.). Co-operative banks differ from stockholder
banks 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 stockholder 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 is retail and commercial banking organized on a co-operative basis.
Co-operative banking institutions take deposits and lend money in most parts of the world. Co-
operative banking, includes retail banking, as carried out by credit unions, mutual savings and
loan associations, building societies and co-operatives, as well as commercial banking services
provided by manual organizations (such as co-operative federations) to co-operative businesses.
The structure of commercial banking is of branch-banking type; while the co-operative
banking structure is a three tier federal one as follows,
1. A State Co-operative Bank works at the apex level (i.e. works at state level).
2. The Central Co-operative Bank works at the Intermediate Level. (i.e. District Cooperative
Banks Ltd. Works at district level)
3. Primary co-operative credit societies at base level (At village level).

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1.2. STATEMENT OF THE PROBLEM

Though the Co-operative Banks have been established with laudable objective, they are suffering
from various problems and as a result, their financial performance is very precarious. This is due
to many a number of reasons such as lower or negative spread, mounting nonperforming assets,
entry of other Banking Institutions into the area earmarked for the Cooperative Banks as a result
of which there is an increasing competition, etc. Moreover high levels of non-performing assets
and high growth in credit of CUBs and Rural Credit Co-operative Institutions continue to be the
major area of concern. Therefore, it is necessary to assess the financial performance of these
Banks. In this background, the present study intends to focus on the analysis of financial
performance using ratio analysis in Co-operative Banks and this study will try to identify the
problem areas and suggestions to solve them.

1.3. OBJECTIVES OF THE STUDY

The objective of the study is to find out the financial performance using ratio analysis of Co-
operative Urban bank. It can be summarized as follows.

1. To study and analyze the liquidity and solvency position of the Co-operative bank with
the help of ratio analysis.
2. To study and examine the financial performance and profitability of co-operative urban
bank.
3. To analyze and measure of efficiency of the co-operative urban bank Cherpulassery.

1.4. CHAPTER SCHEME:

For the successful reporting of the project report has been divided into the following.

Chapter 1: Introduction.

Chapter 2: Industry and company profile

Chapter 3: Literature Review &Theoretical Framework.

Chapter 4: Research Methodology.

Chapter 5: Data Analysis and Interpretation.

Chapter 6: Findings, Suggestion and Conclusion.

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 CHAPTER 2
INDUSTRY AND COMPANY PROFILE

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 CHAPTER 2

INDUSTRY AND COMPANY PROFILE

2.1. CO-OPERATIVE BANKS IN INDIA

The Co-operative Bank is an important constituent of the Indian Financial system, judging by the
role assigned to co-operative, the expectations the co-operative is supposed to fulfill their
number, and the number of offices the cooperative bank operate. Though the co-operative
movement originated in the West, but the importance of such banks have assumed in India is
rarely paralleled anywhere else in the world. The co-operative bank in India plays in important
role even today in rural financing. The business of co-operative bank in the urban areas also has
increased phenomenally in recent year due to the sharp increase in the number of primary co-
operative banks. Co-operative Banks in India are registered under the Co-operative Societies
Act. The co-operative bank is also regulated by the RBI. They are governed by the Banking
Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965.

2.2. ORIGIN OF CO-OPERATIVE BANKS:

The history of many co-operative banks can be traced back to the financial exclusion faced by
many communities in nineteenth-century Europe. With the industrial revolution in full swing, the
emerging financial services sector was primarily focused on wealthy individuals and large
enterprises in urban areas. The rural population, in particular farmers, small businesses and the
communities they supported, were effectively excluded from financial services (Oliver Wyman,
2008). Most co-operative banks were established following the ideas of Hermann Schulze (1808-
83) and Wilhelm Raiffeisen (1818-88). Independently from each other, they started to promote
the idea of credit co-operatives, with Schulze focusing on helping small business owners and
artisans in urban areas and Raiffeisen seeking to assist the rural poor.

Thus, co-operative banks were originally set up to correct this market failure and to overcome
the associated problems of asymmetric information in favors of borrowers. They could do so
because member/ consumers financed the institutions and were involved in the decision making
process. Within small communities, relatively intimate knowledge of each others credit and
trustworthiness guaranteed that loans were only provided to borrowers who could be expected to
repay them. Financial incentives for members to monitor each other and the social relationships

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among members hence contributed significantly to the flourishing of co-operative banks.
Beginning in Germany, the co-operative banking concept gradually spread to the rest of the
continent and to the Nordic countries.

Despite the fact that they addressed similar issues, different co-operative banking models
emerged in Europe. These variations resulted from country-specific historical and cultural
factors, which shaped national market structures and market environments. In some countries,
the development of co-operative banking was initiated, nurtured and supported by outside forces,
e.g. governments. Consequently, the form, appearance, organization and operation of co-
operative banking groups differ across countries and over time. They vary in terms of their
attitudes to membership and their interpretation of co-operative values (Oliver Wyman, 2008).
Hence, the co-operative banking model does not exist (Van Diepenbeek, 2007).

The beginning co-operative banking in India dates back to about 1904, when officiall efforts
were made to create a new type of institution based on principles of co-operative organization &
management, which were considered to be suitable for solving the problems peculiar to Indian
conditions. The philosophy of equality, equity and self-help gave way to the thoughts of self-
responsibility and self-administration which resulted in giving birth of co-operative. The origin
on co-operative movement was one such event-arising out of a situation of crisis, exploitation
and sufferings. Co-operative banks in India came into existence with the enactment of the
Agricultural Credit Co-operative Societies Act in 1904. Co-operative bank form an integral part
of banking system in India. Under the act of 1904, a number of co-operative credit societies were
started. Owing to the increasing demand of co-operative credit, anew act was passed in 1912,
which was provided for establishment of co-operative central banks by a union of primary credit
societies and individuals. Co-operative Banks in India are registered under the Co-operative
Societies Act. The cooperative bank is also regulated by the RBI. They are governed by the
Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965.

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 2.3. INDIAN BANKING SYSTEM:

Banking segment in India function under the umbrella of Reserve Bank of India the
regulatory, Central bank. This segment broadly consists of

1. Commercial Banks
2. Co-operative Banks.
The banking system has three tiers. These are the scheduled commercial banks; the
regional rural banks that operate in rural areas not covered by the scheduled bank & the co-
operative and special purpose rural banks.

1. Commercial Bank:

The commercial bank structure in India consist of

a. Scheduled Commercial bank

b. Nonscheduled bank.

Scheduled & Non Scheduled Bank :

There are approximately 50 scheduled commercial banks. Indian and foreign
almost 200 regional rural banks. More than 350 central co-operative banks. 20 land development
bank and no. of primary agriculture credit societies.

2. Co-Operative Bank:

There are two main categories of the co-operative banks.

A) Short term lending oriented co-operative bank -- within this category of banks, State
Co-operative bank, District co-operative bank & Primary agricultural co-operative
societies.
B) Long Term lending oriented co-operative bank within the second category there are
land development bank at three level, state level, district level & village level.
The Co-Operative banking structure in India is divided into different co-operative banks.

i) Primary urban Co-operative banks.

ii) Primary Agricultural co-operative societies

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 iii) District central co-operative banks
iv) State co-operative banks
v) Land development banks.

2.4. ROLE OF CO-OPERATIVE BANKING IN INDIA:

Co-operative Banks are much more important in India than anywhere else in the world.
The distinctive character of this bank is service at a lower cost and service without exploitation.
It has gained its importance by the role assigned to them, the expectations they are supposed to
fulfill, their number, and the number of offices they operate. Co-operative banks role in rural
financing continues to be important day by day, and their business in the urban areas also has
increased phenomenally in recent years mainly due to the sharp increase in the number of
primary co-operative banks. In rural areas, as far as the agricultural and related activities are
concerned, the supply of credit was inadequate, and money lenders would exploit the poor
people in rural areas providing them loans at higher rates. So, Co-operative banks mobilize
deposits and purvey agricultural and rural credit with a wider outreach and provide institutional
credit to the farmers. Co-operative bank have also been an important instrument for various
development schemes, particularly subsidy-based programs for poor.

The Co-operative banks in rural areas mainly finance agricultural based activities like:
Farming
Cattle
Milk
Hatchery
Personal finance
The Co-operative banks in urban areas finance in activities like:
Self-employment
Industries
Small scale units
Home finance
Consumer finance
Personal finance.

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Some of the forward looking Co-operative banks have developed sufficient core competencies to
such an extent that they are able to challenge state and private sector banks.
The exponential growth of Co-operative banks is attributed mainly to their much better contacts
with the local people, personal interaction with customers, and their ability to catch the nerve of
the local clientele. The total deposits and lending of Co-operative banks are much more than the
Old Private Sector Banks and the New Private Sector Banks.

2.5. AREA OF OPERATIONS

The area of operation of the bank shall be confined to the Panchayath of Cherpulassery, Nellaya
and Kulukkallur and Kuttikode, Karattukurussi, Mangode and Veeramangalam in Trikkaderi
Panchayath and Chalavara in ChalavaraPanchayath in OttapalamTaluk of Palakkad District. The
area of operation may also be extended to the whole Panchayath areas of Vallapuzha, Chalavara,
Trikkaderi and Vellinezhi in addition to the above places for the purpose of providing industrial
finance and housing loans (for a change in the area of operations prior approval of the Bank of
India also the Registering authority shall be necessary.

OBJECTIVES CO-OPERATIVE URBAN BANK

1. To encourage thrift, self-help and co-operation among members.

2. To accept deposits of money from the public, repayable on demand or otherwise and
withdrawable by cheque, draft, order or the purpose of lending or investment.
3. To borrow or raise money.
4. To lend or to advance money either upon or without security to members and other as
permitted by the Registrar.
5. To draw, make, accept, discount, buy, sell, collect and deal in bills of exchange, hundies,
promissory notes, coupons, drafts bills of landing, railway receipts, warrants, certificates,
scrips and other instruments and other securities whether transferable or negotiable or not.
6. To grant and to issue letters of credit, travelers cheques and circular notes.
7. To buy and to sell foreign exchange including foreign bank notes.

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8. To acquire, to hold, to issue on commission, to underwrite and to deal in stocks, funds,
shares, debentures, debentures stock, bonds, obligations, securities and investment of all
kinds.
9. To purchase and to sell bonds, scrips, or other forms of securities on behalf of constituents.
10. To acquire, to construct, to maintain and to alter any building or works necessary or
convenient for the purpose of the bank.
11. To manage, to sell and to realize any property which may come into the possession of the
Bank in satisfaction or part satisfaction of any of its claims.
12. To open branches and pay office, with the permission of the Registrar and the Reserve Bank
of India within the area of operation of the Bank so as to provide banking services to the
public.
13. To establish, to support, or to aid in establishment and support of association, institution,
funds, trusts and conveniences, calculated to benefit members, employees of the bank or the
dependents or connection of such persons and to grant pensions.
14. To prepare and to finance schemes for amelioration of the financial condition of members.
15. To provide financial and technical assistance to self-employed person for setting up their
own business.
16. To enter into participation, arrangements with any other Bank or financial institutions with
the object of making loans and advances.
17. To do all such other things as are incidental and conducive to the promotion or advancement
of these objects and of the business of the Bank.
18. To undertake any other form of business which the Central or State Government or the
Kerala State Co-operative Bank or RBI may specify as a form of business in which it is
lawful for a co-operative Banking Institution to engage.

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2.6. OPERATION OF CO-OPERATIVE BANK:
Establishments:
Co-operative bank performs all the main banking functions of deposit
mobilization, supply of credit and provision of remittance facilities.
Co-operative Banks belong to the money market as well as to the capital market.
Co-operative Banks provide limited banking products and are functionally specialists in
agriculture related products. However, cooperative banks now provide housing loans
also.
CUBs provide working capital loans and term loan as well.

The chief functions of Co-operative banks are:

To attract deposit from non-agriculturist,
To use excess funds of some societies temporarily to make up for shortage in another,
To supervise and guide affiliated societies.

The basic principles on which a Co-operative bank works are:

A co-operative character of activities and trait of mutual aid of credit granted.
Catering for collective organizations and their members.
Restriction on the number of individual votes.

As a result, during 2007-08, the Primary Co-operative Agriculture and Rural

Development Banks have again started lending for the Non-Farm Sector including Jewel Loans.
Aiming at high rates on deposits and low rates on lending.
Limitation of dividends out of profits and bonus to depositors and borrowers or grants to
cultural or co-operative Endeavour.

These banks are constituted of voluntary association, self-help and mutual aid, one share one
vote and non-discrimination and equality of members. The co-operative banks are the
organizations of and for the people.

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FUNDS

Funds may be raised by the following means:

a. Shares
b. Entrance fee at the rate of Rs.1/ share such a maximum of Rs.10/ member.
c. Subscription
d. Deposits.
e. Loans, Cash Credits, Overdrafts and Advances.
f. Donation, Grants and Subsidies.

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Figure.2.7. TYPES OF CO-OPERATIVE BANKS

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2.8. REGULATION OF CO-OPERATIVE BANKS IN INDIA:

A spate of functioning of these banks can be improved through a variety of ways,

including by enabling depositors to enforce market discipline failures in recent years has raised
concern about the working of cooperative banks.

The question as to whether banks need to be regulated, and to what extent, has been at the
heart of many debates in academia and among central bankers the world over. Many academics
believe that regulation b central banks should be effectively combined with market discipline.
Though there is no clear cut answer on how much weight should be placed on the market, there
is a growing consensus that market discipline should be an integral part of any regulatory policy
of monitoring banks. Apart from the question about the optimal weight to be placed on market
discipline, another question that arises pertains to the kind of regulatory policies required by the
central bank and the implementation of these policies.

Failure of banks is a subject that is much despised by politicians and central bankers.
Generally, it is very rare that one hears of the failure of banks. Most often, there is a revival of
the failed bank or merger with a healthy bank. The justification that is often provided is that the
social costs of a bank failure are huge. Banks that borrow from the failed bank are unable to
substitute credit and there is a loss of valuable information about borrowers, which in turn
hampers economic development. These arguments hold greater validity in the case of smaller
banks like cooperative banks that primarily deals with small and more opaque borrowers. This
brings us to the issue of cooperative banks in India.

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 CHAPTER 3

LITERATURE REVIEW & THEORETICAL

FRAMEWORK

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 CHAPTER 3

LITERATURE REVIEW

Various studies conducted and numerous suggestions were sought to bring effectiveness in the
working and operations of financial institutions.

Narsimham Committee (1991) emphasized on capital adequacy and liquidity, Padamanabhan

Committee (1995) suggested CAMEL rating (in the form of ratios) to evaluate financial and
operational efficiency, Tarapore Committee (1997) talked about Non-performing assets and asset
quality, Kannan Committee (1998) opined about working capital and lending methods, Basel
committee (1998 and revised in 2001) recommended capital adequacy norms and risk
management measures. Kapoor Committee (1998) recommended for credit delivery system and
credit guarantee and Verma Committee (1999) recommended seven parameters (ratios) to judge
financial performance and several other committees constituted by Reserve Bank of India to
bring reforms in the banking sector by emphasizing on the improvement in the financial health of
the banks. Experts suggested various tools and techniques for effective analysis and
interpretation of the financial and operational aspects of the financial institutions specifically
banks. These have focus on the analysis of financial viability and credit worthiness of money
lending institutions with a view to predict corporate failures and incipient incidence of
bankruptcy among these institutions.

Rajesh and Patel (1999) attempted to evaluate the growth performance of Urban Co-operative
Banks in India for the period from 1974-75 to 1993-94. Performance indicators included: number
of banks, membership, share capital, reserves, deposits, borrowings, working capital, advance
and overdue. The authors opined that though the Urban Cooperative Banks had made remarkable
progress yet their borrowings and overdue had unfavorably enlarged during the study period.

Mukul G. Asher (2007) in his article Reforming Governance and Regulation of Urban Co-
operative Banks in India argued a case for a paradigm shift in the way urban co-operative banks
(UCBs) are managed, governed, and regulated in India to enable them to enhance their
contributions to achieving greater degree of financial inclusion, and more broad based growth.

24
Design / methodology / approach. The paper finds that if the CUBs are to remain relevant and
play a significant developmental role in India, they will require same quality of governance and
regulation as well as professionalism and modernization as the mainstream commercial banks.
The governance and regulatory structures need to be brought in conformity with India's current
and prospective economic structure; and relevant laws modernized. This requires a paradigm
shift in the role of UCBs.

Dutta and Basak (2008) studied and suggested that Co-operative banks should improve their
recovery performance, adopt new system of computerized monitoring of loans, implement
proper prudential norms and organize regular workshops to sustain in the competitive banking
environment.

Pathania and Sharma (1997) studied the working of Himachal Pradesh State Co-operative
Agricultural and Rural Development Bank, which lends money on a long term basis for a variety
of end users. The financial durability of the bank was measured and data were presented on the
long term financial strength, debt to equity ratio, fixed assets to net worth ratio, the short- term
financial performance, and the current ratio. It was concluded that the financial position of the
bank was not sound, with liabilities exceeding equity

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 THEORETICAL FRAMEWORK

3.1. RATIO ANALYSIS

Ratio analysis is one of the techniques of financial analysis where ratios are used as a yardstick
for evaluating the financial condition and performance of a firm. Ratio analysis was pioneered by
Alexander wall who presented a system of ratio analysis in the year 1909. Ratios are quantitative
relationship between two or more variable taken from financial statement.

Ratio analysis is defined as the systemic use of ratio to interpret the financial statement so that
the strength and weakness of the firm a well as its historical performance and current financial
condition can be determined

In the financial statement we can find many item are co-related with each other for example
current asset and current liabilities, capital and long term debt, gross profit and net profit
purchases and sales etc.

Modes of expression of ratios:

a. In proportion
b. In rate or times or coefficient.
c. In percentage.

Advantages of ratio analysis

a. Forecasting.
b. Managerial control.
c. Facilitates communication.
d. Facilitating investment decision.
e. Measuring efficiency.
f. Inter firm comparison.
g. Useful in measuring financial solvency.

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Disadvantages:

a. Practical knowledge.
b. Ratios are means.
c. Non availability of standard or norms.
d. Detachment in preparation of financial statement.
e. Accuracy of financial information.
f. Time lag.
g. Change in price level.
h. Consistency in preparation of financial statement.

Figure 3..3 CLASSIFICATION OF RATIOS

PROFITABILITY
LIQUIDITY RATIO SOLVENCY RATIO RATIO

Current ratio Debt equity ratio Net profit to total

Quick ratio Fixed Asset to net asset ratio
Liquid asset to total worth ratio Net profit to net
asset ratio Net profit ratio worth ratio
Net profit to fixed
asset ratio

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I. LIQUIDITY RATIO:

The importance of adequate liquidity in the sense of the ability of a firm to meet current/short-
term obligations when they become due for payment can hardly be over stresses. In fact,
liquidity is a prerequisite for the very survival of a firm. The short-term creditors of the firm are
interested in the short-term solvency or liquidity of a firm. The short-term creditors of the firm
are interested in the short-term solvency or liquidity of a firm. But liquidity implies from the
viewpoint of utilization of the funds of the firm that funds are idle or they earn very little. A
proper balance between the two contradictory requirements, that is, liquidity and profitability, is
required for efficient financial management. The liquidity ratios measure the ability of a firm to
meet its short-term obligations and reflect the short-term financial strength and solvency of a
firm.

a. Current Ratio:

Current ratio is an indicator of firms commitment to meet short term liabilities. Current ratio is
an index of the concerns financial stability since it shows the extent of the working capital
which is the asset exceeds the current liabilities. As stated earlier a higher current ratio would
indicate inadequate employment of funds while a poor current ratio is a danger signal the
management. It shows the business is trading beyond it sources. The ideal ratio is 2:1

Current ratio= Current Asset / Current Liability.

b. Quick Ratio:

Quick ratio shows the extent of cash and other current asset that are readily convertible into cash
in comparison to the short term obligations of an organization. A quick ratio of 0.5 would
suggest that a company is able to settle half of its current liabilities instantaneously. Quick ratio
differs from current ratio in that those current assets that are not readily convertible into cash are
excluded from the calculation such as inventory and deferred tax credits since conversion of such
assets into cash may take considerable time.

Quick ratio = Cash in hand + Cash at Bank + Receivables + Marketable Securities /

Current Liability

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c. Liquid Asset to Total Asset Ratio:

The degree of liquidity performance adopted by the bank is depicted by this ratio.
The liquid assets included cash in hand and balance with other banks (current account only).
Total assets included cash in hand, balance with other banks, investment, loan and advances,
fixed assets and other assets.
Liquid Assets to Total Assets Ratio = Liquid Assets / Total Assets.

II. SOLVENCY RATIO:

A key metric used to measure an enterprises ability to meet its debt and other obligations. The
solvency ratio indicates whether a companys cash flow is sufficient to meet its short-term and
long-term liabilities. The lower a company's solvency ratio, the greater the probability that it will
default on its debt obligations. These ratios indicate banks involvement in the total resources and
provide basis for measuring leverage ratio. These ratios indicate the ability of the bank to meet
its medium as well as long term obligations and also provide the basis for measuring the leverage
effect on the bank. The various ratios employed were as follows:

a. Debt Equity Ratio:

This ratio is ascertained to determine long-term solvency position of a company. Debt equity
ratio is also called external internal equity ratio. The ratio is calculated to measure the relative
portion off outsiders fund and shareholders fund invested in the bank. The best equity ratio
shows the long-term financial position of an organization. A lower debt ratio implies that a
company as a better capacity to meet in commitments.

If a lot of debt is used to finance increased operations (high debt to equity), the company could
potentially generate more earnings than it would have without this outside financing. If this were
to increase earnings by a greater amount than the debt cost (interest), then the shareholders
benefit as more earnings are being spread among the same amount of shareholders. However, the
cost of this debt financing may outweigh the return that the company generates on the debt
through investment and business activities and become too much for the company to handle.

Debt Equity Ratio = Long term liabilities / net worth

29
b. Fixed Asset to Net-Worth Ratio:
Fixed assets to net worth is a ratio measuring the solvency of a company, This ratio indicates the
extent to which the owners' cash is frozen in the form of fixed assets, such as property, plant, and
equipment, and the extent to which funds are available for the company's operations.
The fixed assets included balance with other banks (Fixed deposit account only), investment,
long-term loan and advance, building and furniture. Fixed assets are considered at their book
values (cost less depreciation)

Fixed Assets to Net-Worth Ratio = Fixed Assets / Net Worth

c. Net Capital Ratio:

The ratio indicates the degree of liquidity of the bank in the long run. It measures the degree of
availability of assets to pay off the long term liabilities. This ratio indicates the relationship
between total assets and liabilities of the bank. This ratio would throw light on the real financial
strength of the bank.

Net Capital Ratio = Total Assets / Total liabilities (Outside/ External)

III. PROFITABILITY RATIO:

A class of financial metrics that are used to assess a business's ability to generate earnings as
compared to its expenses and other relevant costs incurred during a specific period of time. For
most of these ratios, having a higher value relative to a competitor's ratio or the same ratio from a
previous period is indicative that the company is doing well.
These ratios were used to compare the return to the investment. Following were the important
ratios computed. This ratio provides a fairly sound method of diagnosis of the financial status
and overall efficiency of the Bank. It indicates the profitability of the investment and credit given
by the bank.

30
 a. Net Profit to Total Asset Ratio:

This is ratio of profit on total assets of the bank and their employment. An increasing trend over
the years indicates the overall efficiency of the bank.

Net profit to Total Assets Ratio = Net Profit / Total Assets

b. Net Profit to Net Worth Ratio:

A company that is consistently profitable will have a rising net worth or book value, as long as
these earnings are not fully distributed to shareholders but are retained in the business. For public
companies, rising book values over time may be rewarded by an increase in stock market value.
The ratio of net profit to net worth shows whether profitability is being maintained or not.
Net Profit to Net Worth Ratio = Net Profit / Net Worth.

c. Net Profit to Fixed Asset Ratio:

The ratio indicates whether the fixed assets are being used profitability. A decline in the ratio
shows that either the assets are being kept idle or the business conditions are bad.
Net Profit to Fixed Assets Ratio = Net Profit / Fixed Assets

IV. EFFICIENCY RATIOS:

Ratios that are typically used to analyze how well a company uses its assets and liabilities
internally, Efficiency Ratios can calculate the turnover of receivables, the repayment of
liabilities, the quantity and usage of equity and the general use of inventory and machinery.
This test provides a clear picture of financial efficiency of the bank. It indicates the profits for
every rupee spent. Four ratios were adopted to assess the efficiency of the bank, viz., Gross
Ratio, Operating Ratio etc.

31
 a. Gross Ratio:

This ratio helps to ascertain how efficiently the gross income of the bank was earned. The ratio
was computed as follows.
Gross Ratio = Total Expenses / Gross Income

32
 CHAPTER 4
RESEARCH METHODOLOGY

33
 CHAPTER 4

RESEARCH METHODOLOGY

4.1. INTRODUCTION

The financial ratios of the Cooperative Urban Bank have been analyzed with the help of
parameters. Analytical Techniques / Tools Employed- Ratio Analysis was undertaken with a
view to studying financial performance related to the bank. The financial ratio analysis was
considered to be an effective tool in providing bird's eye view of the performance of a business
organization. The financial ratio represents the relationship between two accounting figures
expressed mathematically. Ratio analysis technique is popular in the accounting system and
helps in spotting the strengths and weakness of an enterprise. The ratios relating to liquidity,
solvency, strengthen; profitability and efficiency of the bank have been analyze

4.2. OBJECTIVES OF THE STUDY:

1. To study and analyze the liquidity and solvency position of the Co-operative bank with the
help of ratio analysis.
2. To study and examine the financial performance and profitability of co-operative urban bank.
3. To analyze and measure of efficiency of the co-operative urban bank Cherpulassery

4.3. METHOD OF DATA COLLECTION:

This study is based on secondary data collected from the Annual reports, Published articles,
and Bye-law of co-operative urban bank.

For easy analysis, the table and figure was drawn whether needed.

34
4.4. PERIOD OF STUDY:

The study for financial performance using ratio analysis was conducted at Co-operative urban
bank. The study was conducted for a period of 2 months i.e. from 17th April to June 15. And the
study uses past four years financial data (2012 to 2015).

4.5. LIMITATIONS OF THE STUDY:

The major limitations of this study are as under.

1. The study was limited to only four years financial data.

2. The study is based on only on the past records.
3. Non availability of required data to analysis the performance.

35
 CHAPTER 5
DATA ANALYSIS AND INTERPRETATIONS

36
 CHAPTER 5

DATA ANALYSIS AND INTERPRETATIONS

5.1. LIQUIDITY RATIOS:

Common liquidity ratios include the current ratio, quick ratio and the operating cash flow
ratio. Different analysts consider different asset to be relevant in calculating liquidity.
Some analysts calculate only the sum of cash and equivalents divided by the current
liabilities because they feel that they are the most liquid asset and therefore are the most
likely to be used to cover short term debts in an emergency. A companys ability to turn
short term asset into cash is of the utmost importance when creditors are seeking
payment. Bankruptcy analysts and mortgage originators frequently use the liquidity ratios
to determine whether a company will be able to continue as going concern.

37
5.1. (A). Current Ratio:

This ratio measures the degree of short term liquidity of the bank. It indicates whether the current
assets are sufficient to meet the current liabilities. It is generally believed that a good current
ratio should be between 1.5:1 and 2:1. Generally, higher the value of this ratio, greater will be
the margin and financial solvency of the bank.

Table 5.1: Current Ratio.

YEAR CURRENT ASSET CURRENT CURRENT RATIO
LIABILITY
2011-2012 11,20,54,527.08 3,44,38,694.65 3.25

2012-2013 14,82,19,448.93 3,66,50,026.51 4.04

2013-2014 36,13,73,061.40 4,29,30,288.51 8.41

2014-2015 29,78,94,619.63 4,85,04,504.53 6.14

Figure 5.1 Current Ratio

Current Ratio
10

6
8.41 Current Ratio
4 6.14
3.25 4.04
2

0
2011-2012 2012-2013 2013-2014 2014-2015

The current ratio has been regarded as an important barometer of the liquidity position of any
business concern. The current ratio was found to be more than one for all the period, and
fluctuated over the years. The ratio was highest for the year 2013-2014 (8.41) and lowest for the
year 2011-2012 (3.25). As this ratio actually shows satisfactory trend it could be concluded that
the bank had maintain a reasonable level of the liquidity position, has sufficient current asset to
meet the current liabilities.

38
5.1. (B). Quick Ratio:

This ratio is also called Acid Test ratio or near money ratio. This represents the ratio between
quick assets and current liabilities and computed as follows
Quick Ratio = Quick Assets / Current Liabilities
The quick assets included cash in hand and balance with other banks (current account only). The
current liabilities included deposit (current account only), interest payable, sundry creditors, bills
payables and other short term liabilities. Excluded short term borrowings (cash credit overdraft)

Table 5.2: Quick Ratio.

YEAR QUICK ASSET CURRENT QUICK RATIO
LIABILITY
2011-2012 246296826.08 34438694.65 7.1

2012-2013 318594924.93 36650026.51 8.6

2013-2014 587902960.40 42930288.51 13.6

2014-2015 672309076.63 48504504.53 13.8

Figure 5.2: Quick Ratio

Quick ratio

15

10
13.6 13.8
5 7.1 8.6

0
2011-2012 2012-2013 2013-2014 2014-2015

The standard norm for the quick ratio is 1:1. Quick ratio is increased in the year 2012 to 7.1 from
8.6. Then every year increasing trend its shows the standard norm so the ratio was satisfactory.

39
5.1. (C). Liquid Asset to Total Asset Ratio:

Liquid Assets to Total Assets Ratio = Liquid Assets / Total Assets

The liquid assets included cash in hand and balance with other banks (current account only).
Total assets included cash in hand, balance with other banks, investment, loan and advances,
fixed assets and other assets.
Table 5.3: Liquid Asset to Total Asset Ratio.
YEAR LIQUID ASSET TOTAL ASSET LIQUID ASSET
TO TOTAL ASSET
RATIO

2011-2012 11,14,00,424.28 1173600927.08 0.09

2012-2013 13,87,45,576.48 1416975203.91 0.09

2013-2014 27,27,78,684.37 1566024034.67 0.17

2014-2015 27,79,17,740.21 1655238001.90 0.16

Figure 5.3: Liquid Asset to Total Asset Ratio:

Liquid Asset to Total Asset Ratio

0.2

0.15

0.1 0.17 0.16 Liquid Asset to Total Asset Ratio

0.05 0.09 0.09

0
2011-2012 2012-2013 2013-2014 2014-2015

The ratio was less than one during the entire period. The year 2013-2014 showed the largest ratio
(0.17) followed by 2014-2015 (0.16). The ratio was least in 2012-2013 (0.09). Maintained high
level of liquid asset in the form of cash reserve which adversely affected its profitability. The
ratio in the present case indicates that the bank has been efficiently managing the liquid assets.

40
5.2. SOLVENCY RATIO:

5.2. (A). Debt Equity Ratio:

Debt Equity Ratio = Long Term Liabilities / Net Worth

In the above ratio, debt represents only long term liabilities and not current liabilities (deposit-
fixed, saving), while equity refers to net worth after deducting intangible assets. Net worth
includes statutory reserves, capital reserves, Profit and other reserves and share capital
Table 5.4: Debt Equity Ratio

YEAR LONG TERM NET WORTH DEBT EQUITY

LIABILITY RATIO
2011-2012 35000000.00 75462065.51 0.46

2012-2013 50000000.00 125945642 0.39

2013-2014 154599179.52 145261526.81 1.06

2014-2015 155762338.78 169656955.60 0.91

Figure 5.4: Debt Equity Ratio.

Debt Equity Ratio

1.2
1
0.8
0.6 1.06 Debt Equity Ratio
0.91
0.4
0.46 0.39
0.2
0
2011-2012 2012-2013 2013-2014 2014-2015

It represents the ratio of long term borrowed funds to owners capital. The ratio registered
highest for the year 2013-2014 (1.06) followed by 2014-2015 (0.91). The ratio was
lowest in the year of 2012-2013 (0.39) as compared to 2011-2012(0.46).

41
5.2. (B). Fixed Asset to Net-Worth Ratio:

Fixed Assets to Net-Worth Ratio = Fixed Assets / Net Worth

The fixed assets included balance with other banks (Fixed deposit account only), investment,
long-term loan and advance, building and furniture. Fixed assets are considered at their book
values (cost less depreciation)
Table 5.5: Fixed Asset to Net-Worth Ratio.

YEAR FIXED ASSET NET WORTH FIXED ASSET

NET WORTH
RATIO
2011-2012 9417620.50 75462065.51 0.12

2012-2013 10401707.50 125945642.0 0.08

2013-2014 9239128.5 145261526.81 0.06

2014-2015 13062400.50 169656955.60 0.07

Figure 5.5: Fixed Asset to Net-Worth Ratio

Fixed Asset To Net-worth Ratio

0.15

0.1

0.12 Fixed Asset To Net-worth Ratio

0.05 0.08
0.06 0.07

0
2011-2012 2012-2013 2013-2014 2014-2015

As the table discloses, the year 2011-2012 registered the highest (0.12). The ratio was lowest in
2013-2014 (0.06). This indicates that the bank better fixed Assets position. A higher ratio is
associated with the problems of liquidation because the claim of the owner has to be met by the
sale of fixed assets which are in non-liquid form.

42
5.2. (C). Net Capital Ratio:

The ratio indicates the degree of liquidity of the bank in the long run. It measures the degree of
availability of assets to pay off the long term liabilities. This ratio indicates the relationship
between total assets and liabilities of the bank. This ratio would throw light on the real financial
strength of the bank.
Net Capital Ratio = Total Assets / Total liabilities (Outside/ External)

Table 5.6: Net Capital Ratio.

YEAR TOTAL ASSET TOTAL NET CAPITAL

LIABILITIES RATIO
2011-2012 1208424818.08 1195873233.98 1.010

2012-2013 1461805553.17 1450590309.36 1.007

2013-2014 1615874874.78 1606604916.08 1.005

2014-2015 1704073285.18 1687862450.39 1.009

Figure 5.6: Net Capital Ratio

Net Capital Ratio

1.01

1.008

1.01 Net Capital Ratio

1.006 1.009
1.007
1.004 1.005

1.002
2011-2012 2012-2013 2013-2014 2014-2015

As the table reveals, the year 2011-2012 registered the highest (1.01). The ratio was lowest in
2013-2014 (1.005). It indicated that the assets of the bank were sufficient to cover its liabilities.
The net capital ratio indicates the degree of liquidity of the bank in the long run

43
5.3. PROFITABILITY RATIO:

5.3. (A) Net Profit to Total Asset Ratio:

This is ratio of profit on total assets of the bank and their employment. An increasing trend over
the years indicates the overall efficiency of the bank.
Net profit to Total Assets Ratio = Net Profit / Total Assets

Table 5.7: Net Profit to Total Asset Ratio

YEAR NET PROFIT TOTAL ASSET NET PROFIT TO

TOTAL ASSET
RATIO
2011-2012 12551584.10 1208424818.08 0.010

2012-2013 11215243.81 1461805553.17 0.007

2013-2014 9296958.70 1615874874.78 0.005

2014-2015 16210834.79 1704073285.18 0.009

Figure 5.7: Net Profit to Total Asset Ratio.

Net Profit to Total Asset Ratio

0.01

0.008

0.006
0.01 Net Profit to Total Asset Ratio
0.009
0.004 0.007
0.005
0.002

0
2011-2012 2012-2013 2013-2014 2014-2015

The ratio was positive and increased year by year. As the table reveals, the year 2011-2012
registered the highest (0.01).The ratio was lowest in 2013-2014 (0.005). This indicated that the
profit level was very low relation to total assets of the bank.

44
5.3. (B). Net Profit to Net-Worth Ratio:

The ratio of net profit to net worth shows whether profitability is being maintained or not.
Net Profit to Net Worth Ratio = Net Profit / Net Worth

Table 5.8: Net Profit to Net-Worth Ratio

YEAR NET PROFIT NET WORTH NET PROFIT TO

NET WORTH
RATIO
2011-2012 12551584.10 75462065.51 0.166

2012-2013 11215243.81 125945642 0.089

2013-2014 9296958.70 145261526.81 0.064

2014-2015 16210834.79 169656955.60 0.095

Figure 5.8: Net Profit to Net-Worth Ratio.

Net Profit to Net Worth Ratio

0.2

0.15

0.1 0.166 Net Profit to Net Worth Ratio

0.05 0.089 0.095

0.064

0
2011-2012 2012-2013 2013-2014 2014-2015

The ratio shows the rate of return on the equity capital of the bank. The year 2011-2012
registered the maximum positive ratio (0.166), whereas the year 2013-2014 registered the least
positive ratio (0.064). It indicated that the overall performance was low; profit level was very
low relation to net worth of the bank

45
5.3. (C). Net Profit to Fixed Asset Ratio:
The ratio indicates whether the fixed assets are being used profitability. A decline in the ratio
shows that either the assets are being kept idle or the business conditions are bad.
Net Profit to Fixed Assets Ratio = Net Profit / Fixed Assets

Table 5.9: Net Profit to Fixed Asset Ratio.

YEAR NET PROFIT FIXED ASSET NET PROFIT TO

NET FIXED
ASSET RATIO
2011-2012 12551584.10 9417620.50 1.33

2012-2013 11215243.81 10401707.50 1.07

2013-2014 9296958.70 9239128.5 1.006

2014-2015 16210834.79 13062400.50 1.24

Figure 5.9: Net Profit to Fixed Asset Ratio.

Net Profit to Fixed Asset Ratio

1.4
1.2
1
0.8
1.33 1.24
0.6 1.07 Net Profit to Fixed Asset Ratio
1.006
0.4
0.2
0
2011-2012 2012-2013 2013-2014 2014-2015

The ratio was positive for all the years, and showed a progressive trend over the study period. It
was found to be highest in 2011-2012 (1.33) and lowest in 2008-2009 (0.022).

46
5.4. EFFICIENCY RATIO:
This test provides a clear picture of financial efficiency of the bank. It indicates the profits for
every rupee spent. Four ratios were adopted to assess the efficiency of the bank, viz., Gross
Ratio, Operating Ratio etc.

5.4. (A) Gross Ratio:

Gross Ratio = Total Expenses / Gross Income
The gross income included interest and discount, commission and brokerage and other income.
The total expenses included interest, salary, allowance, rent, legal expenses, audit expenses and
other provisions.
Table 5.10: Gross Ratio.

YEAR TOTAL GROSS INCOME GROSS RATIO

EXPENSES
2011-2012 112401493.80 124953077.90 0.89

2012-2013 146843498.38 158058742.19 0.92

2013-2014 170993103.01 180290061.71 0.94

2014-2015 173254407.19 189465241.98 0.91

Figure 5.10: Gross Ratio.

Gross Ratio

0.96

0.94

0.92
Gross Ratio
0.94
0.9 0.92
0.91
0.88 0.89

0.86
2011-2012 2012-2013 2013-2014 2014-2015

The gross ratio of bank was found to be positive over the years. The year 2013-2014 registered
the highest (0.94). The ratio was lowest in 2010-2011 (0.89).

47
 CHAPTER 6
FINDINGS, SUGGESTIONS & CONCLUSION

48
6.1. FINDINGS.

The important findings recorded in this research report are consolidated as follows.

1. The current ratio was found to be more than one for all the periods, and fluctuated over the
years. As this ratio actually shows satisfactory trend it could be concluded that the bank had
maintain a reasonable level of the liquidity position. Liquid Assets to Total Assets Ratio
indicates that the bank has been efficiently managing the liquid assets.
2. The net worth position of the bank was positive. Net capital ratio was positive for all the
years and indicated that the assets of the bank were sufficient to cover its liabilities.
3. The net profit to total assets ratio was decreased year by year it indicated that the profit level
was moderate relation to total assets of the bank. The net profit to net worth ratio indicated
that the overall performance was good; the net profit to fixed assets ratio was positive for all
the years, and shows a progressive trend over the study period.
4. The efficiency ratio indicates that the expenses were less than the gross income for all the
years during study period. The gross ratio of bank was found to be positive and decreasing
over the years.

49
6.2 SUGGESTIONS:
1. The banks current and liquid asset is sufficient to meet the current liabilities of the bank
which shows the sound liquid position. This has to be maintained for the following years.
2. The Cooperative Urban Bank Cherpulassery must maintain adequate liquid resources,
margin, properly scrutiny of loans and should try to qualitative improvement to the staff.
3. The CUB should change their loan policies.
4. The Bank should try to increase their deposits by opening branches in business areas,
improve the services to clients, introduce different types of deposit scheme and offer
competitive rates of interest.

6.3. CONCLUSION.

The Cooperative Urban Bank has been maintained a reasonable level of solvency
position. The financial position of this bank analyzed by ratio analysis techniques and it is found
that the position solvency, liquidity and profitability are satisfactory. The efficiency ratios
indicated a medium level of the expenditure over the gross income.
The current ratio was found to be more than one for all the periods, and fluctuated over
the years. As this ratio actually shows satisfactory trend it could be concluded that the bank had
maintain a reasonable level of the liquidity position. Liquid Assets to Total Assets Ratio
indicates that the bank has been efficiently managing the liquid assets. The Co-operative bank
net worth position of the bank was positive. Net capital ratio was positive for all the years and
indicated that the assets of the bank were sufficient to cover its liabilities.
CUBs have more than demonstrated their ability to actively contribute to recent changes
in the sector and new competitive pressures pose serious challenges. Since the operational
efficiency of the CUBs is crucial in ensuring adequate and timely flow of credit to urban and
semi-urban people for diverse purposes, ratio analysis deserves serious consideration.

50
BIBLIOGRAPHY

51
Bibliography:
Narsimham Committee (1991) emphasized on capital adequacy and liquidity International
Journal of Scientific and Research Publications, Volume 2, Issue 10, October 2012.

Rajesh and Patel (1999) Financial Performance and Efficiency of Co-operative Banks in India,
Journal of Co-Operative Accounting and Reporting

Mukul G. Asher (2007). Reforming Governance and Regulation of Urban Co-operative Banks
in India. Journal of Financial Regulation and Compliance. Vol. 15; No 1; Year 2007, pp.20-29.

Dutta and Basak (2008) studied and suggested that Co-operative banks should improve their
recovery performance. An analytical study on financial performance of Dharmavaram urban co-
operative bank, Golden Research Thoughts, Vol.1, Issue. IV . Dec.2011.

Pathania and Sharma, S. (1997). The ratio analysis aspect of H.P. State Cooperative Agricultural
and rural Development Bank. Indian Cooperative Review 34 (3) 255-259.

www.ccub.in Accessed on 11-05-2014

www.investopedia.com Accessed on 18-05-2015
www.wikipedia.com Accessed on 20-5-2015

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