Submitted By:Khushboo Patni Sandhya Singh Reeta Singh

Cooperative banking is retail and commercial banking organized on a cooperative basis. Cooperative banking institutions take deposits and lend money in most parts of the world.

The origins of the urban cooperative banking movement in India can be traced to the close of nineteenth century, inspired by the success of the experiments related to the cooperative movement in Britain and the cooperative credit movement in Germany such societies were set up in India

The term Urban Co-operative Banks (UCBs), though not formally defined, refers to primary cooperative banks located in urban and semi-urban areas. These banks, till 1996, were allowed to lend money only for non-agricultural purposes. This distinction does not hold today. These banks were traditionally centered around communities, localities work place groups. They essentially lent to small borrowers and businesses Today, their scope of operations has widened considerably

The urban cooperative sector reported overall net profits as on end-March 2010 2,36,000 crore, with improved asset quality. The growth of capital accelerated at endMarch 2010, reserves also grew at a high rate of around 20 per cent. On the assets side, while loans and advances constituted almost half of total assets, investments grew at the highest rate constituting a little more than one third of the total assets.

In both the scheduled and non-scheduled segments, expansion in the balance sheets was contributed by deposits on the liability side. Net profits declined during 2008-09 and 2009-10. Consequently, the sector reported lower RoA (return on assets) during the last two years as compared with 2007-08. The decline in RoA was mainly due to a decline in net interest margin (NIM) and non interest margin (Non-IM) during the last two years.

Assets quality:There was an improvement in the asset quality of the entire UCB sector both in absolute and percentage terms as at endMarch 2010 over the previous year.. Along with a decline in the nonperforming loans, there was also an increase in the coverage ratio of UCBs at end-March 2010 over the previous year, indicating improvement in the financial soundness of the sector.

gross NPA ratio

20

18

16

14

12

10

gross NPA ratio

0 2007 2008 2009 2010

net NPA ratio

10

net NPA ratio

0 2007 2008 2009 2010

Aanandeshwari Nagrik Co operative bank, Ujjain 112, sakhla bhavan, nayi sadak, Ujjain The President of the Bank is Mr. Kailash Chandra vijyavargiya.

1 Capital adequacy and Risk Ratio:a)CRAR b)Equity Multiplier 2 Asset Quality:a)Provision for loans and investment to total assets 3 Liquidity:a)Cash to total deposit b)Credit to asset c)Credit deposit ratio 4 Profitability :a)Profit b) CASA c) Margin

This ratio is used to protect depositors and promote the stability and efficiency of financial systems around the world. Two types of capital are measured: tier one capital, which can absorb losses without a bank being required to cease trading, and tier two capital, which can absorb losses in the event of a winding-up and so provides a lesser degree of protection to depositors.

CRAR
40

35

30

25

20

CRAR

15

10

0 2006 2007 2008 2009

loans
500

450

400

350

300

250

loans

200

150

100

50

0 2006 2007 2008 2009

A measure of financial leverage. Calculated as: Total Assets / Total Stockholders' Equity Like all debt management ratios, the equity multiplier is a way of examining how a company uses debt to finance its assets. Also known as the financial leverage ratio or leverage ratio. A higher equity multiplier indicates higher financial leverage, which means the company is relying more on debt to finance its assets.

Equity Multiplier
18

16

14

12

10 Equity Multiplier 8

0 2006 2007 2008 2009

Provision For loan and investment to total assets:-

Provision for loan to Total assets

60

50

40

30

Provision for loan to Total assets

20

10

0 2006 2007 2008 2009

The degree to which an asset or security can be bought or sold in the market without affecting the asset's price. Liquidity is characterized by a high level of trading activity. Assets that can by easily bought or sold, are known as liquid assets. a)Cash to total deposit b)Credit to asset c)Credit deposit ratio

800

700

600

500 cash total deposit cash to total deposit 300

400

200

100

0 2006 2007 2008 2009

cash to total deposit

42.8

42.6

42.4

42.2

42

cash to total deposit

41.8

41.6

41.4

41.2 2006 2007 2008 2009

Deposits
800

700

600

500

400

Deposits

300

200

100

0 2004 2005 2006 2007 2008 2009

50

45

40

35

30

25

20

15

10

0 2006 2007 2008 2009

credit
300

250

200

150

credit

100

50

0 2006 2007 2008 2009

250

200

150

short term loan long term loan 100

50

0 2006 2007 2008 2009

total assets
400

350

300

250

200

total assets

150

100

50

0 2006 2007 2008 2009

800

700

600

500 total credit total deposit credit to total deposit 300

400

200

100

0 2006 2007 2008 2009

credit to total deposit

60

50

40

30

credit to total deposit

20

10

0 2006 2007 2008 2009

The ability to earn a profit. Profitability refers to the potential of a venture to be financially successful. This may be assessed before entering into a business or it may be used to analyze a venture that is currently operating. The profitability can be measured by the following factors:a)Profit b) CASA c) Margin

profit
12

10

profit

0 2006 2007 2008 2009

Investment
80

70

60

50

40

Investment

30

20

10

0 2006 2007 2208 2009

250

200

150 Current account saving account 100 CASA

50

0 2006 2007 2008 2009

Current account
70

60

50

40

Current account 30

20

10

0 2006 2007 2008 2009

saving account
160

140

120

100

80

saving account

60

40

20

0 2006 2007 2008 2009

80

70

60

50 Interest earned Interest expenses Margin 30

40

20

10

0 2006 2007 2008 2009

60

50

40

30

Capital Reserves

20

10

0 2004 2005 2006 2007 2008 2009

Capital quality is very good. Assets quality is also very sound, so the Bank is consolidated. Increased in the Net profit because of the improved assets quality. The higher equity multiplier represent that the Bank is more rely on the debt to finance the assets. Bank has a stable position as no higher fluctuation in the cash to total deposit.

The profit is increasing because of proper diversification of the money, as it has also increased investment, so that the profit increased according to investments. CASA is increased for maintain the good quality of capital. Bank also go for some strategy for increase the profit and no. of customers like, provide good quality services for customer satisfaction, expand the new line of business and reduce the operating cost.

Thank You