1SUMMER TRAINING REPORT ON STATE BANK OF INDIA Submitted to dronacharya college of education rait, H.P In the partial fulfillment of degree of Bachelor of business administration UNDER THE GUIDENCE OF: BY: SUBMITTED UNIVERSITY ROLL NO: BBA 2 CERTIFICATION LETTER CENTRAL UNIVERSITY HIMACHAL PRADESH TO WHOM IT MAY CONCERN This is to certify that the Project Report entitled “FINANCIAL ANALYSIS OF KCC Bank” has been completed by: PRIYA MAHAJAN” under my supervision. To the best of my knowledge, this is his own work and he has not submitted the same elsewhere for the award of any other degree or diploma. I approve it for submission in the partial fulfillment of the requirement for the degree of Bachelor of Business Administration. Date: Place: Miss Manpreet Arora (Project Guide) Asst Prof.M.B.A, CUHP,Dharmshala I shall be very thankful to MR. He gives me practical knowledge about banking entries and all necessary information regarding bank. RAHUL AND MR.3 ACKNOWLEDGEMENT No task is single man’s effort . . NARESH both are handled clerical post in KCC Bank rajiana branch. Last but not the least. An assignment puts the knowledge and experience of an individual to litmus test. I would like to thank Mr. The opportunity to express my indebtness to people who have helped me to accomplish this task. There is always a sense of gratitude that one likes to express towards the persons who helped to change an effort in a success.Any job in this world however trivial or tough cannot be accomplished without the assistance of others. I heartily thankful to both persons to gave me this knowledge able opportunity. CONTENTS Chapter no. But some people in the word those are provided me knowledge able information. Bank is helping for people to build the saving habit even it is also helpful to students. KCC bank is also help for rural people and landlord for cultivation their land. Today bank is become a essential part of our life even every body’s life. The products of bank i. In the learning procedure generation gap is hardly matter. Bank is generally come existence under the banking regulation act 1949. deposits. Practical training is became expert to any business man related to their field. PARTICULARS Page no. etc. In my experience I feel life is treated as an race in today’s competitive world the hard working is become most important. The main aim of bank is to provide services to their consumers because bank is make goodwill in the eyes of consumers to provided good services. . Bank is define as its services and objectives.4 PREFACE In any banking institution the PRODUCT AND SERVICES are provided to consumers is hardly matter. in the banking loan is treated as an income of bank. RBI is one of the bank who operate all the activities of bank and also provide the guidelines.e loan. Data collection method……………… Analysis and interpretation of data…. Introduction to KCC Bank………… KCC BANK today…………………… Business profile…………………….... Meaning of research………………… Research problem…………………… Research design……………………. f.5 Acknowledgement Preface Introduction Of Banking Company’s Profile a... g. h. e. e. Findings . 3. b. i. c. d.. f.. 99-100 Chapter 1 . d. Products and services……………….. Business objective…………………… Technology used in KCC BANK……. 3 4 6-18 19-55 21 27 28 29 30 31 32 34 54 Research Methodology 56-62 58 58 59 59 60 61 62 62 5. Board of directors…………………… Board committee…………………….Suggestions And Conclusion………………………. 1. Limitation of study…………………. 2. Awards and recognition……………… Objective of study…………………… Importance of study………………….. h. a. c. g. Bibliography………………………………………… 93-98 6. b. It is no longer confined to only metropolitans or cosmopolitans in India.e. In England. According to one view point the Italian business house carrying on crude from of banking were called banchi bancheri" According to another viewpoint banking is derived from German word "Branck" which mean heap or mound. Banking system in India Without a sound and effective banking system in India it cannot have a healthy economy. In fact.. Indian banking system has reached even to the remote corners of the country. modern commercial banks. After recognizing the benefit of money as a medium of exchange. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors.6 INTRODUCTION OF BANKING In today’s life bank is play the role of friend and helpful to get all things through loan if you do have regular income. HISTORY OF BANKING IN INDIA . repayable on demand or otherwise and withdraw by cheque. This safe place ultimately evolved in to financial institutions that accepts deposits and make loans i. the importance of banking was developed as it provides the safer place to store the money. The most striking is its extensive reach." -Banking Companies (Regulation) Act. ORIGIN OF BANKING : Its origin in the simplest form can be traced to the origin of authentic history. draft or otherwise. For the past three decades India's banking system has several outstanding achievements to its credit. • Definition Of Bank: Banking Means "Accepting Deposits for the purpose of lending or Investment of deposits of money from the public. the issue of paper money by the government was referred to as a raising a bank.1949 ORIGIN OF THE WORD “BANK”:The origin of the word bank is shrouded in mystery. During the mogul period. 14 major banks of the country were nationalized and on 15th April 1980..the journey of Indian Banking System can be segregated into three distinct phases. To make this write-up more explanatory. The first bank in India. Bank of India Ltd.. During the days of the East India Company it was the turn of agency house to carry on the banking business. The Bank of Hindustan is reported to have continued till 1906. Ltd. on 19th July 1969. number of banks with the Indian management were established in the country namely. These three banks also known as the Presidency banks were the independent units and functioned well. From 1786 till today. In the first half of the 19th century the East India Company established there banks. 1935 by passing Reserve bank of India act 1935. Canara Bank. though conservative. The bank of Bengal in 1809. the great Hindu furriest. I prefix the scenario as Phase I. the indigenous banker played a very important role in lending money and financing foreign trade and commerce. These three banks were amalgamated in 1920 and new bank. They areas mentioned below: 2 3 4 Early phase from 1786 to 1969 of Indian Banks Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms. the Bank of Bombay in 1840 and the Bank of Bombay in1843. Punjab National Bank Ltd. In the wake of Swadeshi Movement. New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991. 6 more commercial private sector banks were taken over by the government. With the passing of the State Bank of India Act in 1955 the undertaking of the Imperial Bank of India was taken over by the newly constituted SBI.. The General Bank of India was the first joint stock bank to be established in the year 1786. The other which followed was the Bank of Hindustan and Bengal Bank. The Reserve Bank of India (RBI) which is the Central bank was established in April. the Imperial Bank of India was established on 27th January. While other two failed in the meantime. It is believed that the transitions from many lending to banking must have occurred even before Manu. who has devoted a section of his work to deposit and advances and laid down rules relating to the rate of interest. Phase II and Phase III. Bank of Baroda Ltd. . was established in 1786. The Central office of RBI is in Mumbai and it controls all the other banks in the country. 1921.7 Banking in India has its origin as early or Vedic period. 23 of 1965). Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th July.8 Phase I The General Bank of India was set up in the year 1786. 14 major commercial banks in the country was nationalized. was set up in 1894 with headquarters at Lahore. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks. Mrs. In1955. Central Bank of India. and Bank of Mysore were set up. funds were largely given to traders. major process of nationalization was carried out. Between 1906 and 1913. mostly small. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Canara Bank.1969. It was the effort of the then Prime Minister of India. Reserve Bank of India came in 1935. During those day’s public has lesser confidence in the banks. Bank of India. Moreover. There were approximately 1100 banks. The following are the steps taken by the Government of India to Regulate BankingInstitutions in the Country: . 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. mostly Europeans shareholders. Phase II Government took major steps in this Indian Banking Sector Reform after independence. As an aftermath deposit mobilization was slow. Bank of Baroda. The East India Company established Bank of Bengal (1809). Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. To streamline the functioning and activities of commercial banks. Next came Bank of Hindustan and Bengal Bank. Punjab National Bank Ltd. Indira Gandhi. the Government of India came up with The Banking Companies Act. Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with seven more banks. In 1865 Allahabad Bank was established and first time exclusively by Indians. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. This step brought 80% of the banking segment in India under Government ownership. It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country. Indian Bank. Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. In 1991. the foreign reserves are high. Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions. and banks and their customers have limited foreign exchange exposure. After the nationalization of banks. Time is given more importance than money.9 1 2 3 4 5 6 7 8 1949: Enactment of Banking Regulation Act. 1961: Insurance cover extended to deposits. The financial system of India has shown a great deal of resilience. the capital account is not yet fully convertible. 1955: Nationalization of State Bank of India. Phone banking and net banking is introduced. 1969: Nationalization of 14 major banks. This is all due to a flexible exchange rate regime. 1959: Nationalization of SBI subsidiaries. under the chairmanship of M Narasimham. CO-OPERATIVE BANKING: AN INTRODUCTION .000%. The entire system became more convenient and swift. 1971: Creation of credit guarantee corporation. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. The country is flooded with foreign banks and their ATM stations. 1975: Creation of regional rural banks. a committee was set up by his name which worked for the liberalization of banking practices. Phase III This phase has introduced many more products and facilities in the banking sector in its reforms measure. the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11. Efforts are being put to give a satisfactory service to customers. 1980: Nationalization of seven banks with deposits over 200 crore. servicing and banking in India. while others are nonscheduled banks. processing. Urban Cooperative Banks. Today co-operative banks continue to be a part of a set of institutions. Banks with Demand and Time Liabilities over Rs. According to a Government publication. For these reasons. NABARD. cooperative banks were made an integral part of the institutional framework of community development and extension services. They get financial and other help from the RBI. but also curb the acquisition instincts of the individual producer or trader working for himself. c) Co-operative banks are perhaps the first government –sponsored. SCBs are scheduled o-operative banks. d) Co-operative banks belongs to the money market as well as the capital market. COOPERATIVE BANKING IN HIMACHAL PRADESH . urban. However. distribution. and metropolitan areas also. e) Some co-operative banks are scheduled banks. f) Co-operative banks are required to maintain the CRR and SLR only at the level of 3 Percent and 25 Percent respectively. no loss”. They function with the rule of “one member. certain types of banks viz. co-operative in the country's economy will not only avoid excessive centralization and bureaucratic control likely to result from planning itself.10 Co-operative banks are an important constituent of the Indian Financial System. b) Co-operative banks perform all the main banking functions of deposit mobolisation. Some distinguishing characteristics of the nature of co-operative banks are a) They are organized and managed on the principles of co-operations. When the national economic planning began in India. various Five year plans envisaged a great deal of scale for the organization of co-operative society. one berth” and on “no profit. selfhelp and mutual-help. which was assigned the important role of delivering the fruits of economic planning at the grass root levels. Cooperative banks are a part of the vast and powerful super structure of co-operative institutions which are engaged in tasks of production. governmentsupported and government-subsidised financial agency in India. The cooperative movement originated in the west. State Co-operative Banks. They constitute the “most favored” banking sector with no risk of nationalization. 1934. supply of credit and provisions of remittance facilities. 100 crores each are included in the second schedule of The RBI Act. which are engaged in financing rural and agricultural development. Participation in money market improve their income so that their remain viable. Their role in rural financing continues to be important and their business in the urban areas also has increased in recent years. central Government and State Governments.. Central Co-operative Banks operate in semi-urban. marketing. The bank used to fulfill the needs of people of Solan. and some other parts of the Shimla district. Kangra. some area of Punjab. some branches were exchanged between the State Cooperative Bank Ltd. The Kangra Central Co-operative Bank Ltd. Chapter 2 . And The Jogindra Central Co-op. The Chamba Central Co-operative Bank Ltd. had its area of operation in the old Mahasu district. And The Jogindra Central Co-operative Bank Ltd. 1976. There were only three central co-operative banks. This was the largest Central Co-operative Bank of that time. Haryana. operating in Solan district only.. In September. had its area of operation in the district of Chamba and some other areas of the state. and The Mahasu Central Co operative Bank Ltd.. After reorganization of the states. with a view to extend their respective areas of operations to the whole Shimla and Solan districts respectively. Mandi. one stock bank and 663 co-operative societies that were registered under the co-operative societies act 1912. in its Agricultural Credit Department. These three central co-operative banks were the Mandi Central Co-operative Bank Ltd. in November 1951.. These banks have been allowed to function as central financing agencies in their respective areas. The management was under the control of the managing committee. The management was dancing to the tunes of managing committee which was considered the sole regulating authority. had its operation in the district of Mandi and its surrounding royal states. there was acute scarcity of the banking facilities. The Mahasu Central Co-operative Bank Ltd. Kullu. The Mandi Central Co-operative Bank Ltd. At present the State Co-operative Bank with its headquarters at Shimla and branches at different viable places in the state. Sirmour. The area of operation of The H. In March 1954. In these areas two central co-operative banks viz. the already existing three central co-operative banks and one stock bank was established which started functioning. Kinnour. The Reserve Bank of India. were operating but these were not covered by the unitary system already existing in the state. Shimla and Sirmour. At the district level there are two central co operative banks. The Chamba Central Co-operative Bank Ltd. Bank Ltd. were transferred to Himachal Pradesh in 1966. functions in six districts namely Bilaspur.11 At the time of formation of Himachal Pradesh in the year 1948. examined the possibility of establishing a state co-operative bank in the state keeping in view the difficult geographical conditions in the state and the need for the upliftment of the poor agriculturist.. The Bank was mainly controlled by individuals. which comprised a few influential persons. The Kangra Central Co-operative Bank Ltd.P. After high level discussions between the state government and the Reserve Bank of India. it was decided to have a unitary banking system in the state by establishing the State Co-operative Bank with its headquarters at Shimla and branches at different viable places in the state. functioning in 5 districts namely Hamirpur. Chamba. The only stock bank in the state was Bank of Sirmour with its area of operation in the old Sirmour district. Lahaul & Spiti and Una districts with its head office at Dharamshala in Kangra district and the Jogindra Central Co-operative Bank Ltd. State Co-operative Bank covered the then Union Territory. 000/-. share capital of the bank amounted to Rs. 13. Thus.e. The partition resulted in a great set back to the working of the bank and a sum of Rs.including Punjab Bonds is still locked up in the said Institution at Lahore.933/-. On Ist November. 1966. It is the pioneer banking institution catering to the needs of the societies since 1920 in the then Kangra district.i. unlike most of the District Central Co operative Banks (DCCB) in our country.69.AN OVERVIEW The Kangra Central Co-operative Bank Ltd. Kullu. affiliated with it by raising resources and acting as a balancing factor. In the year 1971-72 bank entered into deposit mobilization field in Pong Dam area and got maximum share of the deposit from the field The bank emerged as the most successful financial institution.and Working Capital Rs. It was established to facilitate the operation of co-operative societies. Its deposit in the year1970-72 was 256 lacs which rose to 1054 lacs in the year 1973-74. The Kangra Central Co-operative Bank Ltd. 59. Reserves Rs. came into existence after its registration on 17th March 1920.. set out its mission and soon built up its image to attract the well off to deposit their surplus with the bank. The Kangra Central Co-operative Bank Ltd. the district of Kangra.840/-. in the wake of partition the bank witnessed a period of stress. Lahore and in the form of Punjab Bonds at Lahore.e.12 COMPANY’S PROFILE THE KCC BANK : MANAGEMENT AND OBJECTIVES KCCB . Kangra. Lahore . 26. .385/.64.132/. All this affected its functioning badly. 12. Out of this 10. Lahaul & Spiti.45.Current Account with Imperial Bank.07. 10. which included Kullu and Lahaul & Spiti also. Lahaul & Spiti and Hamirpur with some part of Hoshiarpur district was merged with the Pradesh and a new district was created and bank expanded its area of operation in five districts.815. 7. Before partition of the country.63. 74% of the working capital was in the form of Fixed Deposit with Provincial Bank. strain and loss of momentum. Una and Hamirpur as DCCB operates in one district only. from there to now the bank has progressed drastically. operates in five districts i.849/. Investments Rs. Deposits Rs. Kullu. 13 From humble beginning. The bank is striving hard to attain professionalism in management. Industrial and other type of societies affiliated to it. The bank is providing loans to the entrepreneurs in various fields like agriculture. today the bank enjoys envious reputation and credit worthiness which is reflected by a high rate of acceleration to its deposits over the year. For this purpose the bank is adopting policies in consonance with principles of co-operative banking. has a network of 156 Branches. The Kangra Central Co-operative Bank Ltd. Weavers. 14 Zonal Offices and 4 Extension counters and has more than 25 hundred PAC's. The bank is playing pivotal role in the basic infrastructural development in the state and is liberally providing financial assistance to various public sector undertakings. luxury goods. The bank has its 90% branches in rural areas. RBI Guidelines. economic reforms. NABARD's advice and social responsibilities. industries besides loans schemes for the employees of the state & central governments. COMPANY PROFILE . S Mankotia.com Website OBJECTIVES OF KCC BANK LTD. Managing Director Founded Headquarters Key people Products Loans.14crores Revenue Total assets ▲ 4.Chairman Bhagwan Das . . The objectives of The Kangra Central Co-operative Bank Ltd. deposits and services products 47.61 crores wwww.kccb.14 KANGRA CENTRAL COOPERATIVE BANK: Type Industry COOPERATIVE Banking Insurance 1920 DHARAMSHALA R.vice chairman. Ajit Mahajan Director Sandeep Kumar. can be understood as: . . for individual members against: I) II) Security of fixed deposit receipt in respect to deposit made in the bank Agriculture and industrial produce. marketing. corporations. cheques and other negotiable instruments on behalf of the members. current or in any type of account.P. III) Securities as defined in the section 20 of the Indian Trust Act. rural bank and other cooperative institution and to do in a general all such thing for promotion of the business of the bank. VI) To act as a banking agency for govt. labourers and others in its area of operation. VIII) To subscribe the share capital of the cooperative societies. drafts. IV) To collect bills. 2) To function as an integrated organization for the provision of credit for production. 3) To make loan and advances to : I) Member societies and individual members only. 4) To lend money or to grant cash credit with limits and overdraft.15 1) To promote the economic interest of the members of the bank in accordanc with cooperative principles and to facilitate the operation of the cooperative societies registered under the act. artisans. supply and processing purposes to co-operative societies. of H. II) To any persons with or without security depending upon the size of the loan. Public bodies and ORGANIZATION AND MANAGEMENT . VII) To facilitate the operation of any society. V) To receive money in saving. f) The General Manager. At the head office four sections are working for facilitating the administration of the Bank. b) The Board of Directors. c) The Executive Committee. The General Manager further appoints three Deputy General Managers to control development. are responsible for the inspection of Branches and follow up actions on inspection reports. administration and audit & inspection. The Deputy General Managers besides assisting the General Manager in the day to day working. Given the professional expertise of the management team and the overall focus on recruiting and . a) The Central Body. Branch Managers are the incharges of their branches. Zonal Managers. Management :- Sh. d) The Chairman. ORGANIZATION STRUCTURE The Board of Directors with the prior approval of the Registrar co-operative societies appoints the General Manager.Rasil Singh Mankotia Hon'ble Chairman of the Bank Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. The Zonal Managers are required to supervise and control the working of the branches and staff in their respective areas.16 The management of the affairs of the bank shall rest as defined in the Byelaws in the following bodies and office bearers. These sections are under the charge of Zonal Managers/Branch Managers. Branch Managers and other staff. e) The Managing Director. P. Nehran Pukhar Tehsil Dehra. Tehsil Jaisinghpur Distt.P. Tehsil Shahpur Distt.O.) 8 Shri Karnail Singh Rana. Hamirpur ( H. Kangra(H. Chairman 9418076361(M) V. Tehsil Dehra Distt. Board of Directors Sr. Shri Rasil Singh Mankotia. Director Village Dah. Director Village Harmittan P.P.17 retaining the best talent in the industry. Dah Kulara Tehsil Indora. Kangra 4 Shri Ajit Paul Mahajan. Distt. Kangra ( H.VPO 9816002221 (M) Bhutti Colony. Kullu (H.P. Director VPO Dohab. Tehsil & Distt. 3 Shri Desh Raj MLA.O. Tehsil & Distt. the bank believes that its people are a significant competitive strength. Director 9418085733 (M) VPO Dehra. Kangra ( H. Director 9418122286 (M) .) 9816258935 (M) 9418489605 (M) 9816285008 (M) 9418187839(M) 6 Shri Joginder Singh Guleria. 1.) 5 Shri Gurcharan Singh Thakur. Name of the Director Phone No.) 7 Smt.P.) 2 Shri Bhagwan Dass. Vice Chairman VPO Sanghol. Distt.). P. Prem Lata Thakur Director. Kale Amb. Kangra ( H.P. No.O.P. Distt. Kangra(H. Bachhwai Tehsil Palampur. Tehsil Indora Distt. P. Distt. Dehlan. Bhugnara Tehsil Nurpur.P. Director Village Bain Attarian P. Una ( H.O.P. Kangra( H.) 9 Shri Jaid Nath Sharma Director Village Hatli.O.P. Distt.) 10 Shri Ramesh Chand Bhatia.P.) 13 Shri Davinder Kumar.P.P.O.Galore. P. Kangra( H. Una ( H. Tehsil Nadaun.) 15 Shri Rajinder Singh Director Village Tharass.O. Distt. Director Village Amtrar. Tehsil Bangana.18 Village Kandi.P.) 11 Shri Ranjeet Singh Rana. Kangra(H.O.O.P.) 12 Shri Amrit Lal Bhardwaj. Director VPO Charara.P. 9816340135 (M) DirectorVillage Bhilla.O. Director Village & P. Kandrori.P.) 9418060287 (M) 9805366394 (M) 9816644040 (M) 9816031863 (M) 9816250324 (M) 9418090816 (M) . Hurla Tehsil & Distt.P. Suneher Tehsil & Distt. Hamirpur (H.) 14 Shri Karan Singh Pathania. Tehsil & Distt. Kullu ( H. Lauhal & Spiti (H. Hamirpur (H. S.) + 91 98166 13905 + 91 94185 50400 18 Shri Rakesh Thakur Director VPO Samirpur.P.) 17 Shri Pawan Kumar Director VPO Ambota. Sandeep Kumar. Distt. Dharmshala (H.P.) + 91 94184 76833 19 Shri S. HAS Managing Director + 91 94180 94470 21 Sh. S. Rangra + 91 94181 34914 Director (RCS Nominee) Dy. VPO Kawaring.K.19 16 Shri Rigizen Samphel Hayerpa. Director. Sharma General Manager + 91 94180 10415 . Tehsil Keylong Distt. RCS. Tehsil Bhoranj Distt.) 20 Sh.P.P. Tehsil Amb. Una (H. Rana General Manager + 91 94187 91237 PRODUCTS AND SERVICES Saving Product Interest Type Payable Frequency Compounded Half Yearly Product Saving Bank Account . J.S.20 22 Sh. Hero Honda We are pleased to inform you that Bank has entered into an MOU with Hero Honda Motors for financing Motor Cycles Tata Motors We are pleased to inform you that Bank has entered into an MOU with Tata Motors for .21 Fixed Deposit Simple Monthly/Quarterly/Half Yearly/On Maturity Term Deposit Compounded Monthly/Quarterly/Half Yearly/On Maturity Recurring Deposit Compounded Monthly LOAN PRODUCTS CO-OP. Sukhi Jeewan and Eternal Life. Kotak Mahindra. Old Mutual Life Insurance Limited. Old Mutual Life Insurance Limited We are pleased to inform you that Bank has entered into a Referral Agreement with Kotak Mahindra. SOCIETIES Agriculture Non Farm Sector Personal Vehicle Weavers/Industrial/Housing Cash Credits INDIVIDUALS Agriculture Non Farm Sector Personal Vehicle Housing Cash Credits SERVICES BY BANK Corporate Tie-up “Sometime we have to reach out in new directions in order to change and grow” National Insurance Company Limited The Bank has signed a MOU with “National Insurance Company Limited” for Corporate Agency Arrangement to provide non-life Insurance Services to Customers and General public along with the Banking Services at a single window through various branches of the Bank. Under the agreement. the Bank will refer its customers and prospective customers through its branches to the insurance company for distribution and providing its life insurance products viz. 22 financing Tata Vehicles AXIS. Chapter 3 RESEARCH METHODOLOGY . HDFC and ICICI Bank for remittance and collection purposes The loan and deposits interest rate is vary according to time and rules. HDFC and ICICI Bank The Bank has also corporate tie-up with AXIS. needs to be elaborated upon. Research Problem. which we used at the time of conducting the research. Research Design.23 The procedure adopted for conducting the research requires a lot of attention as it has direct bearing on accuracy. I have two objectives regarding my research project. The objective of the study gives direction to go through the research problem. Objectives are the main aspect of every study. So. Every study must have an objective for which all the efforts have been done. It is due to this reason that research methodology. the research methodology not only talks about the research methods but also considers the logic behind the method used in the context of the research study. Data Collection method. Research Methodology is a way to systematically study and solve the research problems. Primary objective :- 1) To study the software used in KCC BANK. Without objective no research can be conducted and no result can be obtained. The Research Methodology here includes:1 1 2 3 4 5 6 Objective of study Meaning of Research. It may be understood as a science of studying how research is done scientifically. reliability and adequacy of results obtained. Secondary objective 1. he must clearly state the methodology adapted in conducting the research the research so that it way be judged by the reader whether the methodology of work done is sound or not. Analysis and interpretation of Data Limitation of study OBJECTIVE OF THE STUDY Objectives are the ends that states specifically how goal be achieved. These are shown below :1. If a researcher wants to claim his study as a good study. It guides the researcher and keeps him on track. 2) To analyse the financial statements of the corporation to assess it’s . On the basis of objective all the research process is followed. Primary objective 2. formulating hypothesis or suggested solutions. Every researcher has to face many problemswhich conducting any research that’s why . IMPORTANCE OF THE STUDY 1 2 3 4 By “FINANCIAL PERFORMANCE ANALYSIS OF KCC BANK” we would be able to get a fair picture of the financial position of KCC BANK. Research is an art of scientific investigation. Research is a systematized effort to gain now knowledge. Research is thus.24 true financial position by the use of ratios. “To ERR IS THE HUMAN” is a proverb which indicates that no one is perfect in this world. The search for knowledge through objective and systematic method of finding solutions to a problem is research. By showing the financial performance to various lenders and creditors it is possible to get credit in easy terms if good financial condition is maintained in the company with assets outweighing the liabilities. Research is an academic activity and this term should be used in a technical sense. 2) To see whether KCC BANK is going well or not in different areas. Secondary objective :1) To find out the shortcomings in KCC BANK. Making deductions and reaching conclusions to determine whether they if the formulating hypothesis. Research comprises defining and redefining problems. 1 Meaning of Research: Research is defined as “a scientific and systematic search for pertinent information on a specific topic”. Research Problem The first step while conducting research is careful definition of Research Problem. Protecting the property of the business. an original contribution to the existing stock of knowledge making for its advancement. Compliances with legal requirement. It is a careful investigation or inquiry especially through search for new facts in any branch of knowledge. 2. Research Design A research designs 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. A research design is a framework for the study and is used as guide in collection and analyzing the data. “Problem well defined is problem half solved. a problem statement refers to some difficulty.25 problem statement is defined to know which type of problems a researcher has to face while conducting any study. which researcher experiences in the context of either a theoretical or practical situation and wants to obtain the solution for the same. Research Design includes and outline of what the researcher will do form writing the hypothesis and it operational implication to the final analysis of data. Research Design is the conceptual structure with in which research in conducted. It is a strategy specifying which approach will be used for gathering and analyzing the data. It constitutes the blueprint for the collection measurement and analysis of data. It also include the time and cost budget since most studies are done under these two cost budget since most studies are done under theses tow constraints. The design is such studies must be rigid and not flexible and most focus attention on the following:1 2 3 4 5 6 7 8 9 10 What is the study about? Why is the study being made? Where will the study be carried out? What type of data is required? Where can be required data be found? What period of time will the study include? What will be sample design? What techniques of data collection will be used? How will the data be analyzed? In what style will the report be prepared? TYPES OF RESEARCH DESIGN : 1 2 3 EXPERIMENTAL RESEARCH DESIGN EXPLORATORY RESEARCH DESIGN DESCRIPTIVE& DIAGNOSTIC RESEARCH .” Basically. The problem statement here is:“TO MAKE A FINANCIAL ANALYSIS OF FINANCIAL STATEMENTS OF KCC BANK” 3. It is said that. Descriptive Research Design – It seeks to determine the answers to who.26 Exploratory Research Design: This research design is preferred when researcher has a vague idea about the problem the researcher has to explore the subject. adequate and specific knowledge. 4 Data Collection Method The process of data collection begins after a research problem has been defined and research design ahs been chalked out. From the study.it is the data which is already collected by someone else. It has always been important for the completion of any report. what. Descriptive study is based on some previous understanding of the topic. Diagnostic Research Design It determines the frequency with which something occurs or its association with something else. There are two types of data – PRIMARY DATA It is first hand data. TYPE OF DATA USED IN THE STUDY The required data for the study are basically secondary in nature and the data are collected from : . Primary data is collected by various approaches so as to get a precise. It provides reliable. realistic and relevant data. Experimental Research Design – The research design is used to provide a strong basis for the existence of casual relationship between two or more variables. Researcher has to analyze the data and interprets the results. suitable. It is based on some previous understanding of the matter. where. RESEARCH DESIGN USED IN THE STUDY: Descriptive research design is used in this study because it will ensure the minimization of bias and maximization of reliability of data collected. the type of data to be collected and the procedure to be used for this purpose were decided. when and how questions. SECONDARY DATA . which is collected by researcher itself. Research has got a very specific objective and clear cut data requirements The researcher had to use fact and information already available through financial statements of earlier years and analyse these to make critical evaluation of the available material. It was achieved by a direct approach and observation from the officials of the company. The main tool in gathering primary data was investigation and observation. accurate. Hence by making the type of the research conducted to be both Descriptive and Analytical in nature. classified and tabulated for analysis. Trend Percentage. The valuable cooperation extended by staff members and the branch manager of KCC BANK.e wwww. Chapter 4 CONCLUSION/ SUGGESTIONS . Cash Flow Statement. 2. The analysis and interpretation are based on secondary data contained in the published annual reports of KCC BANK for the study period. Branch manager was reluctant for giving financial data of the bank. Comparative statement.27 1 2 The audited reports of the company.com and some other websites on the internet for the purpose of getting all the required financial data of the bank and to get detailed knowledge about KCC BANK for the convenience of study. INTERNET – which includes required financial data collected form KCC BANK’s official website i. The analytical tools used in this study are: ANALYTICAL TOOLS APPLIED: The study employs the following analytical tools: 1. Brouchers of KCC BANK. 3 4 Methods of data analysis The data collected were edited. Limited knowledge about the bank in the initial stages. Limitations of study Difficulty in data collection. Ratio Analysis. 3. 4.kccb.Kangracontributed a lot to fulfill the requirements in the collection of data in order to complete the project. RECOMMENDATIONS/SUGGESTIONS: • • • • • The bank should improve its profitability position and ROI so that it does not effect the borrowing capacity of the bank. The bank should maintain a proper inventory management system so that the unnecessary blockage of money can be avoided.kcccb. 2010 as compare to previous years.com 3.28 CONCLUSION The current liduidity position of the bank is quite satisfactory and the bank is able to meet its current obligationsout of current resources very well. The company should maintain low level of creditors so that the company can pay them easily when required. But the long term capacity of bank i.google. www. BIBLIOGRAPHY 1.com 2. The bank has even expanded its branches from 152 in 204 to 163 in 2010.e.e. www. The bank must have adequate cash and bank balance to repay its outside liabilities. Implementation of new technology and CBS of branches has been done with use of new software bank c3. The bank is using its working capital as well as fixed assets up to a well satisfactory level. all the knowledge able persons . The bank should keep a good hold on solvency position which will help the bank to repay its outside liabilities. Also due to decrease in net profit the overall profitability of the concern has been lowered in the recent year as compared to past years. solvency position to repay its liabilities has been decreased very slightly in the recent year i. 29 .