“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 Master’s 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

2

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 wouldn’t 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

3

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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.1 CURRENT RATIO………………………….5 FIXED ASSET TO NETWORTH RATIO……… 35 TABLE 5.… 37 TABLE 5.3 LIQUID ASSET TO TOTAL ASSET RATIOS….7 NET PROFIT TO TOTAL ASSET RATIO….…… 31 TABLE 5.……… 36 TABLE 5.9 NET PROFIT TO FIXED ASSET RATIO……… 39 TABLE 5. 33 TABLE 5.… 34 TABLE 5.10 GROSS RATIO…………………………………… 40 6 ...2 QUICK RATIO……………………………….6 NET CAPITAL RATIO…………………. LIST OF TABLES TABLE NO TITLE PAGE NO TABLE 5.8 NET PROFIT TO NETWORTH RATIOS……… 38 TABLE 5.…… 32 TABLE 5.4 DEBT EQUITY RATIO……………………….

2 QUICK RATIO………...………………………….. 14 FIGURE 3. 37 FIGURE 5.. 39 FIGURE 5.3 LIQUID ASSET TO TOTAL ASSET RATIO…… 33 FIGURE 5.5 FIXED ASSET TO NETWORTH RATIO……….3 CLASSIFICATION OF RATIOS………………… 20 FIGURE 5.10 GROSS RATIO……………………………………… 40 7 . 35 FIGURE 5.1 CURRENT RATIO……………………………….9 NET PROFIT TO FIXED ASSET RATIO………. 36 FIGURE 5.. 32 FIGURE 5.7 NET PROFIT TO TOTAL ASSET RATIO……….6 NET CAPITAL RATIO…………………………….. 38 FIGURE 5..4 DEBT EQUITY RATIO…………………………… 34 FIGURE 5. LIST OF FIGURES FIGURE NO TITLE PAGE NO FIGURE 2.8 NET PROFIT TO NETWORTH RATIO…………. 31 FIGURE 5.7 TYPES OF CO-OPERATIVE BANK………….

ratio analysis deserves serious consideration. 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. As this ratio actually shows satisfactory trend it could be concluded that the bank had maintain a reasonable level of the liquidity position.100 thousand crores of deposits. CUBs have the advantage that they are self-reliant institution stand on its own legs without support from the state and central Government. 8 . But CUBs have more than demonstrated their ability to actively contribute to recent changes in the sector and new competitive pressures pose serious challenges. and fluctuated over the years. The current ratio was found to be more than one for all the periods. And the net worth position of the bank was positive. Rs.EXECUTIVE SUMMARY Co-operative Urban Banks (CUBs) are among the major players in India’s financial and economic system: Rs. Liquid Assets to Total Assets Ratio indicates that the bank has been efficiently managing the liquid assets. 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.67 thousand crores of credit and a 10% share of the deposits market in India as on 31st March 2004.

CHAPTER 1 INTRODUCTION 9 .

Depending on countries. (i. banking accounts etc. 2. Co-operative banks differ from stockholder banks by their organization. who are at the same time the owners and the customers of their bank.1 . Co- operative banks generally provide their members with a wide range of banking and financial services (loans. Co- operative banking. Co-operative banking is retail and commercial banking organized on a co-operative basis. building societies and co-operatives. INTRODUCTION A co-operative bank is a financial entity which belongs to its members. The Central Co-operative Bank works at the Intermediate Level.e. which put them at a level playing field with stockholder banks. as carried out by credit unions.e. their values and their governance. this control and supervision can be implemented directly by state entities or delegated to a co-operative federation or central body.). while the co-operative banking structure is a three tier federal one as follows. The structure of commercial banking is of branch-banking type. deposits. 1. works at state level). In most countries. as well as commercial banking services provided by manual organizations (such as co-operative federations) to co-operative businesses. Co-operative banks are often created by persons belonging to the same local or professional community or sharing a common interest. Co-operative banking institutions take deposits and lend money in most parts of the world. their goals. CHAPTER 1 INTRODUCTION 1. 10 . includes retail banking. Works at district level) 3. District Cooperative Banks Ltd. A State Co-operative Bank works at the apex level (i. mutual savings and loan associations. Primary co-operative credit societies at base level (At village level). they are supervised and controlled by banking authorities and have to respect prudential banking regulations.

2. CHAPTER SCHEME: For the successful reporting of the project report has been divided into the following. 1.3. Chapter 4: Research Methodology.2. 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. 1. To analyze and measure of efficiency of the co-operative urban bank Cherpulassery. mounting nonperforming assets. their financial performance is very precarious.4. 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. they are suffering from various problems and as a result. it is necessary to assess the financial performance of these Banks. etc. Therefore. Chapter 6: Findings. Chapter 2: Industry and company profile Chapter 3: Literature Review &Theoretical Framework. It can be summarized as follows. STATEMENT OF THE PROBLEM Though the Co-operative Banks have been established with laudable objective. This is due to many a number of reasons such as lower or negative spread. Chapter 5: Data Analysis and Interpretation. entry of other Banking Institutions into the area earmarked for the Cooperative Banks as a result of which there is an increasing competition. 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. To study and examine the financial performance and profitability of co-operative urban bank. 1. Suggestion and Conclusion. Chapter 1: Introduction.1. To study and analyze the liquidity and solvency position of the Co-operative bank with the help of ratio analysis. 11 .

CHAPTER 2 INDUSTRY AND COMPANY PROFILE 12 .

Though the co-operative movement originated in the West. 1965. Financial incentives for members to monitor each other and the social relationships 13 . The co-operative bank is also regulated by the RBI. CHAPTER 2 INDUSTRY AND COMPANY PROFILE 2. judging by the role assigned to co-operative. 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.1. but the importance of such banks have assumed in India is rarely paralleled anywhere else in the world. in particular farmers. 2. were effectively excluded from financial services (Oliver Wyman. the expectations the co-operative is supposed to fulfill their number. Independently from each other. small businesses and the communities they supported. The co-operative bank in India plays in important role even today in rural financing. with Schulze focusing on helping small business owners and artisans in urban areas and Raiffeisen seeking to assist the rural poor. the emerging financial services sector was primarily focused on wealthy individuals and large enterprises in urban areas. Most co-operative banks were established following the ideas of Hermann Schulze (1808- 83) and Wilhelm Raiffeisen (1818-88). CO-OPERATIVE BANKS IN INDIA The Co-operative Bank is an important constituent of the Indian Financial system. They could do so because member/ consumers financed the institutions and were involved in the decision making process. Co-operative Banks in India are registered under the Co-operative Societies Act. Thus. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act. 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. With the industrial revolution in full swing. and the number of offices the cooperative bank operate. they started to promote the idea of credit co-operatives. relatively intimate knowledge of each other’s credit and trustworthiness guaranteed that loans were only provided to borrowers who could be expected to repay them. 2008). 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.2. Within small communities. The rural population.

organization and operation of co- operative banking groups differ across countries and over time. anew act was passed in 1912. Beginning in Germany. the co-operative banking model does not exist (Van Diepenbeek. The cooperative bank is also regulated by the RBI. The origin on co-operative movement was one such event-arising out of a situation of crisis. 2008). which was provided for establishment of co-operative central banks by a union of primary credit societies and individuals. 1965. equity and self-help gave way to the thoughts of self- responsibility and self-administration which resulted in giving birth of co-operative. 14 . the form. These variations resulted from country-specific historical and cultural factors. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act. when officiall efforts were made to create a new type of institution based on principles of co-operative organization & management. Under the act of 1904. governments. In some countries.among members hence contributed significantly to the flourishing of co-operative banks. appearance. which shaped national market structures and market environments. Owing to the increasing demand of co-operative credit. exploitation and sufferings. nurtured and supported by outside forces. Hence. which were considered to be suitable for solving the problems peculiar to Indian conditions. Consequently. Co-operative banks in India came into existence with the enactment of the Agricultural Credit Co-operative Societies Act in 1904. Co-operative Banks in India are registered under the Co-operative Societies Act.g. Co-operative bank form an integral part of banking system in India. The philosophy of equality. 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. the development of co-operative banking was initiated. different co-operative banking models emerged in Europe. e. 2007). a number of co-operative credit societies were started. The beginning co-operative banking in India dates back to about 1904. They vary in terms of their attitudes to membership and their interpretation of co-operative values (Oliver Wyman.

state level. B) Long Term lending oriented co-operative bank – within the second category there are land development bank at three level. 20 land development bank and no. The Co-Operative banking structure in India is divided into different co-operative banks. the regional rural banks that operate in rural areas not covered by the scheduled bank & the co- operative and special purpose rural banks. i) Primary urban Co-operative banks. District co-operative bank & Primary agricultural co-operative societies. Commercial Banks 2. A) Short term lending oriented co-operative bank -. Commercial Bank: The commercial bank structure in India consist of a. Co-operative Banks.within this category of banks. Scheduled Commercial bank b. These are the scheduled commercial banks. This segment broadly consists of 1. Central bank. 1. Nonscheduled bank. Co-Operative Bank: There are two main categories of the co-operative banks. INDIAN BANKING SYSTEM: Banking segment in India function under the umbrella of Reserve Bank of India the regulatory. 2. State Co-operative bank. of primary agriculture credit societies. Indian and foreign almost 200 regional rural banks. 2. More than 350 central co-operative banks. ii) Primary Agricultural co-operative societies 15 .  Scheduled & Non Scheduled Bank : There are approximately 50 scheduled commercial banks. The banking system has three tiers. district level & village level.3.

iii) District central co-operative banks iv) State co-operative banks v) Land development banks. and the number of offices they operate. the supply of credit was inadequate. Co-operative banks role in rural financing continues to be important day by day.4. ROLE OF CO-OPERATIVE BANKING IN INDIA: Co-operative Banks are much more important in India than anywhere else in the world. 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. their number. 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. 16 . the expectations they are supposed to fulfill. and money lenders would exploit the poor people in rural areas providing them loans at higher rates. 2. Co-operative bank have also been an important instrument for various development schemes. The distinctive character of this bank is service at a lower cost and service without exploitation. In rural areas. So. as far as the agricultural and related activities are concerned. It has gained its importance by the role assigned to them. Co-operative banks mobilize deposits and purvey agricultural and rural credit with a wider outreach and provide institutional credit to the farmers.

warrants. To encourage thrift. 6. To borrow or raise money. repayable on demand or otherwise and withdrawable by cheque. railway receipts. The exponential growth of Co-operative banks is attributed mainly to their much better contacts with the local people. 5. To draw. travelers cheques and circular notes. OBJECTIVES CO-OPERATIVE URBAN BANK 1. To grant and to issue letters of credit. discount.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. drafts bills of landing. To accept deposits of money from the public. 17 . personal interaction with customers. 4. 3. order or the purpose of lending or investment. To lend or to advance money either upon or without security to members and other as permitted by the Registrar. 2. 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. coupons. and their ability to catch the nerve of the local clientele. draft. make. 2.5. The area of operation may also be extended to the whole Panchayath areas of Vallapuzha. To buy and to sell foreign exchange including foreign bank notes. promissory notes. Nellaya and Kulukkallur and Kuttikode. accept. AREA OF OPERATIONS The area of operation of the bank shall be confined to the Panchayath of Cherpulassery. scrips and other instruments and other securities whether transferable or negotiable or not. certificates. self-help and co-operation among members. sell. collect and deal in bills of exchange. Karattukurussi. Chalavara. 7. buy. Mangode and Veeramangalam in Trikkaderi Panchayath and Chalavara in ChalavaraPanchayath in OttapalamTaluk of Palakkad District. The total deposits and lending of Co-operative banks are much more than the Old Private Sector Banks and the New Private Sector Banks. hundies.

trusts and conveniences. 13. calculated to benefit members. To acquire. scrips. To enter into participation. To provide financial and technical assistance to self-employed person for setting up their own business. or other forms of securities on behalf of constituents. 18 . To purchase and to sell bonds. to maintain and to alter any building or works necessary or convenient for the purpose of the bank. 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. or to aid in establishment and support of association. 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. securities and investment of all kinds. 16. 15. 10. to support. bonds. To manage. to issue on commission. 17.8. obligations. 12. debentures. institution. 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. to hold. to underwrite and to deal in stocks. debentures stock. arrangements with any other Bank or financial institutions with the object of making loans and advances. To open branches and pay office. funds. To establish. 18. 9. shares. 11. to construct. 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. To prepare and to finance schemes for amelioration of the financial condition of members. To acquire. employees of the bank or the dependents or connection of such persons and to grant pensions. 14. funds.

supply of credit and provision of remittance facilities. However.  To supervise and guide affiliated societies. The co-operative banks are the organizations of and for the people.  To use excess funds of some societies temporarily to make up for shortage in another. As a result.  Catering for collective organizations and their members.  Co-operative Banks provide limited banking products and are functionally specialists in agriculture related products. The chief functions of Co-operative banks are:  To attract deposit from non-agriculturist. These banks are constituted of voluntary association.  Restriction on the number of individual votes. one share one vote and non-discrimination and equality of members.  Aiming at high rates on deposits and low rates on lending.  Co-operative Banks belong to the money market as well as to the capital market. 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.  Limitation of dividends out of profits and bonus to depositors and borrowers or grants to cultural or co-operative Endeavour. during 2007-08. 19 . self-help and mutual aid. cooperative banks now provide housing loans also.2. the Primary Co-operative Agriculture and Rural Development Banks have again started lending for the Non-Farm Sector including Jewel Loans.  CUBs provide working capital loans and term loan as well.6. OPERATION OF CO-OPERATIVE BANK: Establishments:  Co-operative bank performs all the main banking functions of deposit mobilization.

Donation.10/ member. Shares b. Grants and Subsidies. Entrance fee at the rate of Rs. f. e. c. Deposits.FUNDS Funds may be raised by the following means: a. Subscription d. Overdrafts and Advances. Cash Credits. Loans.1/ share such a maximum of Rs. 20 .

Figure. TYPES OF CO-OPERATIVE BANKS 21 .7.2.

has been at the heart of many debates in academia and among central bankers the world over. Most often. there is a growing consensus that market discipline should be an integral part of any regulatory policy of monitoring banks. Many academics believe that regulation b central banks should be effectively combined with market discipline. which in turn hampers economic development. 22 . The justification that is often provided is that the social costs of a bank failure are huge. Failure of banks is a subject that is much despised by politicians and central bankers. REGULATION OF CO-OPERATIVE BANKS IN INDIA: A spate of functioning of these banks can be improved through a variety of ways. and to what extent. there is a revival of the failed bank or merger with a healthy bank. Apart from the question about the optimal weight to be placed on market discipline.8. The question as to whether banks need to be regulated. Though there is no clear cut answer on how much weight should be placed on the market. another question that arises pertains to the kind of regulatory policies required by the central bank and the implementation of these policies. including by enabling depositors to enforce market discipline failures in recent years has raised concern about the working of cooperative banks. These arguments hold greater validity in the case of smaller banks like cooperative banks that primarily deals with small and more opaque borrowers. it is very rare that one hears of the failure of banks. This brings us to the issue of cooperative banks in India. Generally. Banks that borrow from the failed bank are unable to substitute credit and there is a loss of valuable information about borrowers.2.

CHAPTER 3 LITERATURE REVIEW & THEORETICAL FRAMEWORK 23 .

and more broad based growth. Padamanabhan Committee (1995) suggested CAMEL rating (in the form of ratios) to evaluate financial and operational efficiency. Basel committee (1998 and revised in 2001) recommended capital adequacy norms and risk management measures. Kannan Committee (1998) opined about working capital and lending methods. advance and overdue. governed. 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. Performance indicators included: number of banks. share capital. 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. borrowings. 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. 24 . reserves. 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. Experts suggested various tools and techniques for effective analysis and interpretation of the financial and operational aspects of the financial institutions specifically banks. Tarapore Committee (1997) talked about Non-performing assets and asset quality. deposits. CHAPTER 3 LITERATURE REVIEW Various studies conducted and numerous suggestions were sought to bring effectiveness in the working and operations of financial institutions. 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. working capital. membership. Narsimham Committee (1991) emphasized on capital adequacy and liquidity. Mukul G. and regulated in India to enable them to enhance their contributions to achieving greater degree of financial inclusion.

It was concluded that the financial position of the bank was not sound. with liabilities exceeding equity 25 . implement proper prudential norms and organize regular workshops to sustain in the competitive banking environment.Design / methodology / approach. The financial durability of the bank was measured and data were presented on the long –term financial strength. The governance and regulatory structures need to be brought in conformity with India's current and prospective economic structure. the short. This requires a paradigm shift in the role of UCBs. The paper finds that if the CUBs are to remain relevant and play a significant developmental role in India. and the current ratio. Dutta and Basak (2008) studied and suggested that Co-operative banks should improve their recovery performance. they will require same quality of governance and regulation as well as professionalism and modernization as the mainstream commercial banks. which lends money on a long term basis for a variety of end users. fixed assets to net worth ratio. debt to equity ratio. Pathania and Sharma (1997) studied the working of Himachal Pradesh State Co-operative Agricultural and Rural Development Bank. and relevant laws modernized. adopt new system of computerized monitoring of loans.term financial performance.

Facilitates communication. 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. In proportion b. Advantages of ratio analysis a. 26 . In rate or times or coefficient. Managerial control. Modes of expression of ratios: a. Measuring efficiency. Inter firm comparison. Facilitating investment decision. 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.1. THEORETICAL FRAMEWORK 3. Forecasting. g. e. b. capital and long term debt. Ratios are quantitative relationship between two or more variable taken from financial statement. f. In percentage. c. Useful in measuring financial solvency. Ratio analysis was pioneered by Alexander wall who presented a system of ratio analysis in the year 1909. gross profit and net profit purchases and sales etc. c. d.

Ratios are means. h. Time lag. Consistency in preparation of financial statement. Accuracy of financial information. Figure 3. g.Disadvantages: a. c. f. b. Change in price level. d..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 27 . Practical knowledge. Non availability of standard or norms. Detachment in preparation of financial statement. e.

In fact. Current ratio is an index of the concern’s financial stability since it shows the extent of the working capital which is the asset exceeds the current liabilities. Current Ratio: Current ratio is an indicator of firm’s commitment to meet short term liabilities. b. As stated earlier a higher current ratio would indicate inadequate employment of funds while a poor current ratio is a danger signal the management. 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. is required for efficient financial management. 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. A proper balance between the two contradictory requirements. It shows the business is trading beyond it sources. But liquidity implies from the viewpoint of utilization of the funds of the firm that funds are idle or they earn very little. The short-term creditors of the firm are interested in the short-term solvency or liquidity of a firm. a. 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. that is. 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. The ideal ratio is 2:1 Current ratio= Current Asset / Current Liability. liquidity and profitability. Quick ratio = Cash in hand + Cash at Bank + Receivables + Marketable Securities / Current Liability 28 . The short-term creditors of the firm are interested in the short-term solvency or liquidity of a firm.I.5 would suggest that a company is able to settle half of its current liabilities instantaneously. liquidity is a prerequisite for the very survival of a firm.

A lower debt ratio implies that a company as a better capacity to meet in commitments.c. the company could potentially generate more earnings than it would have without this outside financing. then the shareholders benefit as more earnings are being spread among the same amount of shareholders. II. The solvency ratio indicates whether a company’s cash flow is sufficient to meet its short-term and long-term liabilities. However. These ratios indicate banks involvement in the total resources and provide basis for measuring leverage ratio. Debt Equity Ratio = Long term liabilities / net worth 29 . Debt equity ratio is also called ‘external internal equity ratio’. investment. SOLVENCY RATIO: A key metric used to measure an enterprise’s ability to meet its debt and other obligations. loan and advances. The ratio is calculated to measure the relative portion off outsider’s fund and shareholders’ fund invested in the bank. The lower a company's solvency ratio. Total assets included cash in hand. If a lot of debt is used to finance increased operations (high debt to equity). the greater the probability that it will default on its debt obligations. fixed assets and other assets. Liquid Assets to Total Assets Ratio = Liquid Assets / Total Assets. balance with other banks. The various ratios employed were as follows: a. 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. Liquid Asset to Total Asset Ratio: The degree of liquidity performance adopted by the bank is depicted by this ratio. If this were to increase earnings by a greater amount than the debt cost (interest). The best equity ratio shows the long-term financial position of an organization. Debt Equity Ratio: This ratio is ascertained to determine long-term solvency position of a company. 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 liquid assets included cash in hand and balance with other banks (current account only).

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. 30 . These ratios were used to compare the return to the investment. Fixed Asset to Net-Worth Ratio: Fixed assets to net worth is a ratio measuring the solvency of a company. This ratio would throw light on the real financial strength of the bank. plant. and equipment. Following were the important ratios computed.b. investment. It indicates the profitability of the investment and credit given by the bank. It measures the degree of availability of assets to pay off the long term liabilities. long-term loan and advance. This ratio indicates the extent to which the owners' cash is frozen in the form of fixed assets. such as property. The fixed assets included balance with other banks (Fixed deposit account only). This ratio indicates the relationship between total assets and liabilities of the bank. 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. Net Capital Ratio = Total Assets / Total liabilities (Outside/ External) III. and the extent to which funds are available for the company's operations. For most of these ratios. 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. This ratio provides a fairly sound method of diagnosis of the financial status and overall efficiency of the Bank. building and furniture.

Operating Ratio etc. the quantity and usage of equity and the general use of inventory and machinery. Net Profit to Net Worth Ratio = Net Profit / Net Worth. This test provides a clear picture of financial efficiency of the bank. Net Profit to Net Worth Ratio: A company that is consistently profitable will have a rising net worth or book value. Gross Ratio. EFFICIENCY RATIOS: Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. An increasing trend over the years indicates the overall efficiency of the bank. Net Profit to Total Asset Ratio: This is ratio of profit on total assets of the bank and their employment. For public companies. Four ratios were adopted to assess the efficiency of the bank. as long as these earnings are not fully distributed to shareholders but are retained in the business. c. a. It indicates the profits for every rupee spent. 31 . Net Profit to Fixed Assets Ratio = Net Profit / Fixed Assets IV. Efficiency Ratios can calculate the turnover of receivables. The ratio of net profit to net worth shows whether profitability is being maintained or not.. viz. A decline in the ratio shows that either the assets are being kept idle or the business conditions are bad. rising book values over time may be rewarded by an increase in stock market value. Net profit to Total Assets Ratio = Net Profit / Total Assets b. Net Profit to Fixed Asset Ratio: The ratio indicates whether the fixed assets are being used profitability. the repayment of liabilities.

The ratio was computed as follows. Gross Ratio = Total Expenses / Gross Income 32 . a. Gross Ratio: This ratio helps to ascertain how efficiently the gross income of the bank was earned.

CHAPTER 4 RESEARCH METHODOLOGY 33 .

profitability and efficiency of the bank have been analyze 4. CHAPTER 4 RESEARCH METHODOLOGY 4.Ratio Analysis was undertaken with a view to studying financial performance related to the bank. To study and analyze the liquidity and solvency position of the Co-operative bank with the help of ratio analysis. OBJECTIVES OF THE STUDY: 1. To study and examine the financial performance and profitability of co-operative urban bank. Analytical Techniques / Tools Employed. INTRODUCTION The financial ratios of the Cooperative Urban Bank have been analyzed with the help of parameters. For easy analysis. 2. Published articles.2.1. The financial ratio analysis was considered to be an effective tool in providing bird's eye view of the performance of a business organization. 3. To analyze and measure of efficiency of the co-operative urban bank Cherpulassery 4. solvency. 34 . The financial ratio represents the relationship between two accounting figures expressed mathematically. the table and figure was drawn whether needed.3. and Bye-law of co-operative urban bank. 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. strengthen. METHOD OF DATA COLLECTION: This study is based on secondary data collected from the Annual reports.

5.e. 35 .4. 4. The study was limited to only four years financial data. 2. Non availability of required data to analysis the performance.4. from 17th April to June 15. 3. The study is based on only on the past records. PERIOD OF STUDY: The study for financial performance using ratio analysis was conducted at Co-operative urban bank. LIMITATIONS OF THE STUDY: The major limitations of this study are as under. And the study uses past four year’s financial data (2012 to 2015). 1. The study was conducted for a period of 2 months i.

CHAPTER 5 DATA ANALYSIS AND INTERPRETATIONS 36 .

quick ratio and the operating cash flow ratio. LIQUIDITY RATIOS: Common liquidity ratios include the current ratio. 37 . CHAPTER 5 DATA ANALYSIS AND INTERPRETATIONS 5. 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 company’s 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.1.

08 3.51 8.19.1 Current Ratio Current Ratio 10 8 6 8.1: Current Ratio.14 Figure 5.25 4.63 4.619.93 3. greater will be the margin and financial solvency of the bank.41 2014-2015 29.504.50.82. Current Ratio: This ratio measures the degree of short term liquidity of the bank.40 4.85.1.44.20.25).94.51 4.694.14 3. The ratio was highest for the year 2013-2014 (8.73.5.04 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.30.38. The current ratio was found to be more than one for all the period.527. higher the value of this ratio.448. Table 5.41 Current Ratio 4 6. (A).65 3.53 6. It is generally believed that a good current ratio should be between 1.026.061.13.288. It indicates whether the current assets are sufficient to meet the current liabilities. has sufficient current asset to meet the current liabilities. Generally. YEAR CURRENT ASSET CURRENT CURRENT RATIO LIABILITY 2011-2012 11.29.78. As this ratio actually shows satisfactory trend it could be concluded that the bank had maintain a reasonable level of the liquidity position. 38 .54.5:1 and 2:1.41) and lowest for the year 2011-2012 (3.66.25 2012-2013 14.04.04 2013-2014 36. and fluctuated over the years.

1 2012-2013 318594924.51 13.2: Quick Ratio.5.6 0 2011-2012 2012-2013 2013-2014 2014-2015 The standard norm for the quick ratio is 1:1.6 2013-2014 587902960. (B).65 7.51 8.6 2014-2015 672309076. bills payables and other short term liabilities. 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). sundry creditors.63 48504504. The current liabilities included deposit (current account only). Then every year increasing trend its shows the standard norm so the ratio was satisfactory. Quick ratio is increased in the year 2012 to 7.1 8.08 34438694.8 5 7. 39 . interest payable. Excluded short term borrowings (cash credit overdraft) Table 5.40 42930288. YEAR QUICK ASSET CURRENT QUICK RATIO LIABILITY 2011-2012 246296826.8 Figure 5.6 13.53 13.1 from 8.2: Quick Ratio Quick ratio 15 10 13.6.93 36650026. Quick Ratio: This ratio is also called Acid Test ratio or near money ratio.1.

09 0.09 2013-2014 27.16). Total assets included cash in hand.14.37 1566024034. Table 5. YEAR LIQUID ASSET TOTAL ASSET LIQUID ASSET TO TOTAL ASSET RATIO 2011-2012 11. fixed assets and other assets.79. The ratio in the present case indicates that the bank has been efficiently managing the liquid assets.3: Liquid Asset to Total Asset Ratio: Liquid Asset to Total Asset Ratio 0.1. The year 2013-2014 showed the largest ratio (0.67 0.45.87.684.740.09 0 2011-2012 2012-2013 2013-2014 2014-2015 The ratio was less than one during the entire period.2 0.17 2014-2015 27. 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).17 0.424.16 Figure 5. (C). balance with other banks.16 Liquid Asset to Total Asset Ratio 0. loan and advances.3: Liquid Asset to Total Asset Ratio.28 1173600927.48 1416975203.00.21 1655238001.27.91 0.5.1 0.08 0. 40 .576.09).15 0.17) followed by 2014-2015 (0.17.78. investment.05 0. The ratio was least in 2012-2013 (0.90 0.09 2012-2013 13. Maintained high level of liquid asset in the form of cash reserve which adversely affected its profitability.

39 2013-2014 154599179.46 2012-2013 50000000. saving). The ratio registered highest for the year 2013-2014 (1.4: Debt Equity Ratio.4 0.2.46).5.51 0. SOLVENCY RATIO: 5.2 0 2011-2012 2012-2013 2013-2014 2014-2015 It represents the ratio of long term borrowed funds to owner’s capital.78 169656955. debt represents only long term liabilities and not current liabilities (deposit- fixed. Debt Equity Ratio: Debt Equity Ratio = Long Term Liabilities / Net Worth In the above ratio. Profit and other reserves and share capital Table 5.60 0. Debt Equity Ratio 1.81 1.52 145261526.00 125945642 0.06) followed by 2014-2015 (0.46 0.91 Figure 5. The ratio was lowest in the year of 2012-2013 (0.8 0.06 Debt Equity Ratio 0.06 2014-2015 155762338. Net worth includes statutory reserves.39 0. (A). 41 .2.91). while equity refers to net worth after deducting intangible assets.2 1 0.4: Debt Equity Ratio YEAR LONG TERM NET WORTH DEBT EQUITY LIABILITY RATIO 2011-2012 35000000.00 75462065.91 0.39) as compared to 2011-2012(0.6 1. capital reserves.

the year 2011-2012 registered the highest (0.06). long-term loan and advance.15 0.2.50 169656955. building and furniture.51 0. 42 .12).0 0.07 0 2011-2012 2012-2013 2013-2014 2014-2015 As the table discloses. Fixed assets are considered at their book values (cost less depreciation) Table 5. (B). 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.08 2013-2014 9239128.50 75462065.5: Fixed Asset to Net-Worth Ratio.60 0.06 2014-2015 13062400. 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). The ratio was lowest in 2013-2014 (0.12 2012-2013 10401707.81 0.5: Fixed Asset to Net-Worth Ratio Fixed Asset To Net-worth Ratio 0.12 Fixed Asset To Net-worth Ratio 0.1 0.5. investment.5 145261526.05 0.07 Figure 5. This indicates that the bank better fixed Assets position.08 0. YEAR FIXED ASSET NET WORTH FIXED ASSET NET WORTH RATIO 2011-2012 9417620.06 0.50 125945642.

36 1.39 1.17 1450590309. Net Capital Ratio = Total Assets / Total liabilities (Outside/ External) Table 5.005 1. It indicated that the assets of the bank were sufficient to cover its liabilities.08 1195873233.08 1. This ratio would throw light on the real financial strength of the bank.007 2013-2014 1615874874.006 1.01 Net Capital Ratio 1. This ratio indicates the relationship between total assets and liabilities of the bank.009 1.2.009 Figure 5.007 1.002 2011-2012 2012-2013 2013-2014 2014-2015 As the table reveals.01).18 1687862450.98 1.6: Net Capital Ratio.010 2012-2013 1461805553.6: Net Capital Ratio Net Capital Ratio 1. YEAR TOTAL ASSET TOTAL NET CAPITAL LIABILITIES RATIO 2011-2012 1208424818. (C).005).01 1.5.004 1. Net Capital Ratio: The ratio indicates the degree of liquidity of the bank in the long run.78 1606604916. the year 2011-2012 registered the highest (1. It measures the degree of availability of assets to pay off the long term liabilities. The ratio was lowest in 2013-2014 (1. The net capital ratio indicates the degree of liquidity of the bank in the long run 43 .008 1.005 2014-2015 1704073285.

3.01). the year 2011-2012 registered the highest (0.006 0.008 0.The ratio was lowest in 2013-2014 (0. PROFITABILITY RATIO: 5.005).005 2014-2015 16210834.007 2013-2014 9296958.007 0.18 0.70 1615874874.08 0.004 0.009 0.17 0.81 1461805553.79 1704073285. An increasing trend over the years indicates the overall efficiency of the bank.002 0 2011-2012 2012-2013 2013-2014 2014-2015 The ratio was positive and increased year by year. This indicated that the profit level was very low relation to total assets of the bank.3.005 0.01 Net Profit to Total Asset Ratio 0. Net profit to Total Assets Ratio = Net Profit / Total Assets Table 5.5.01 0.78 0. As the table reveals. 44 .009 Figure 5.10 1208424818. Net Profit to Total Asset Ratio 0.010 2012-2013 11215243. (A) Net Profit to Total Asset Ratio: This is ratio of profit on total assets of the bank and their employment.7: Net Profit to Total Asset Ratio YEAR NET PROFIT TOTAL ASSET NET PROFIT TO TOTAL ASSET RATIO 2011-2012 12551584.7: Net Profit to Total Asset Ratio.

089 0.1 0. profit level was very low relation to net worth of the bank 45 .70 145261526. Net Profit to Net Worth Ratio 0.064 2014-2015 16210834. whereas the year 2013-2014 registered the least positive ratio (0. The year 2011-2012 registered the maximum positive ratio (0.05 0.79 169656955.166 Net Profit to Net Worth Ratio 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.81 125945642 0.5.2 0.15 0.60 0.166).10 75462065.089 2013-2014 9296958.8: Net Profit to Net-Worth Ratio YEAR NET PROFIT NET WORTH NET PROFIT TO NET WORTH RATIO 2011-2012 12551584.166 2012-2013 11215243.064).3. (B).095 0. Net Profit to Net Worth Ratio = Net Profit / Net Worth Table 5.51 0. It indicated that the overall performance was low.095 Figure 5.81 0. Net Profit to Net-Worth Ratio: The ratio of net profit to net worth shows whether profitability is being maintained or not.8: Net Profit to Net-Worth Ratio.

(C).33) and lowest in 2008-2009 (0.5. and showed a progressive trend over the study period.70 9239128.07 2013-2014 9296958.81 10401707.9: Net Profit to Fixed Asset Ratio.022).8 1.9: Net Profit to Fixed Asset Ratio.006 2014-2015 16210834.2 1 0.6 1.4 0. It was found to be highest in 2011-2012 (1.79 13062400.33 2012-2013 11215243.50 1.5 1. A decline in the ratio shows that either the assets are being kept idle or the business conditions are bad.50 1. Net Profit to Fixed Assets Ratio = Net Profit / Fixed Assets Table 5.33 1. 46 .3. YEAR NET PROFIT FIXED ASSET NET PROFIT TO NET FIXED ASSET RATIO 2011-2012 12551584.4 1.07 Net Profit to Fixed Asset Ratio 1.10 9417620.2 0 2011-2012 2012-2013 2013-2014 2014-2015 The ratio was positive for all the years.006 0.24 Figure 5. Net Profit to Fixed Asset Ratio: The ratio indicates whether the fixed assets are being used profitability.24 0.50 1. Net Profit to Fixed Asset Ratio 1.

The year 2013-2014 registered the highest (0. legal expenses.94). rent. 5.96 0. Gross Ratio. EFFICIENCY RATIO: This test provides a clear picture of financial efficiency of the bank.91 Figure 5.10: Gross Ratio.38 158058742.89 0. Table 5.91 0.86 2011-2012 2012-2013 2013-2014 2014-2015 The gross ratio of bank was found to be positive over the years.89).4.88 0. Four ratios were adopted to assess the efficiency of the bank.01 180290061. salary.92 0.5.94 2014-2015 173254407.19 0. It indicates the profits for every rupee spent. Gross Ratio 0.90 0. allowance.10: Gross Ratio.98 0.. YEAR TOTAL GROSS INCOME GROSS RATIO EXPENSES 2011-2012 112401493. The ratio was lowest in 2010-2011 (0. viz.71 0.94 0.94 0. audit expenses and other provisions.92 Gross Ratio 0.89 2012-2013 146843498.92 2013-2014 170993103. commission and brokerage and other income.4. Operating Ratio etc.9 0.19 189465241. The total expenses included interest. (A) Gross Ratio: Gross Ratio = Total Expenses / Gross Income The gross income included interest and discount.80 124953077. 47 .

CHAPTER 6 FINDINGS. SUGGESTIONS & CONCLUSION 48 .

and shows a progressive trend over the study period. As this ratio actually shows satisfactory trend it could be concluded that the bank had maintain a reasonable level of the liquidity position. The efficiency ratio indicates that the expenses were less than the gross income for all the years during study period. FINDINGS. The gross ratio of bank was found to be positive and decreasing over the years. The current ratio was found to be more than one for all the periods. and fluctuated over the years. The net worth position of the bank was positive. 2.6.1. the net profit to fixed assets ratio was positive for all the years. The net profit to net worth ratio indicated that the overall performance was good. 1. 3. 4. 49 . The important findings recorded in this research report are consolidated as follows. Liquid Assets to Total Assets Ratio indicates that the bank has been efficiently managing the liquid assets. 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. Net capital ratio was positive for all the years and indicated that the assets of the bank were sufficient to cover its liabilities.

4. 2.2 SUGGESTIONS: 1. liquidity and profitability are satisfactory. CUBs have more than demonstrated their ability to actively contribute to recent changes in the sector and new competitive pressures pose serious challenges. properly scrutiny of loans and should try to qualitative improvement to the staff. The Bank should try to increase their deposits by opening branches in business areas. The CUB should change their loan policies. The financial position of this bank analyzed by ratio analysis techniques and it is found that the position solvency. CONCLUSION. The Cooperative Urban Bank Cherpulassery must maintain adequate liquid resources. As this ratio actually shows satisfactory trend it could be concluded that the bank had maintain a reasonable level of the liquidity position. 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.3. ratio analysis deserves serious consideration. 3.6. The Co-operative bank net worth position of the bank was positive. Liquid Assets to Total Assets Ratio indicates that the bank has been efficiently managing the liquid assets. introduce different types of deposit scheme and offer competitive rates of interest. The bank’s current and liquid asset is sufficient to meet the current liabilities of the bank which shows the sound liquid position. and fluctuated over the years. 50 . This has to be maintained for the following years. The efficiency ratios indicated a medium level of the expenditure over the gross income. 6. improve the services to clients. The current ratio was found to be more than one for all the periods. The Cooperative Urban Bank has been maintained a reasonable level of solvency position. Net capital ratio was positive for all the years and indicated that the assets of the bank were sufficient to cover its liabilities. margin.

BIBLIOGRAPHY 51 .

P. Journal of Co-Operative Accounting and Reporting Mukul G. Dutta and Basak (2008) studied and suggested that Co-operative banks should improve their recovery performance. Golden Research Thoughts. IV . Vol. Indian Cooperative Review 34 (3) 255-259. Journal of Financial Regulation and Compliance. S. An analytical study on financial performance of Dharmavaram urban co- operative bank. 15.20-29. Pathania and Sharma. Issue 10. www.in Accessed on 11-05-2014 www.1. No 1.wikipedia. State Cooperative Agricultural and rural Development Bank.2011. (1997). The ratio analysis aspect of H. pp. Asher (2007). Rajesh and Patel (1999) Financial Performance and Efficiency of Co-operative Banks in India. Issue. Vol. Volume 2. Year 2007.Bibliography: Narsimham Committee (1991) emphasized on capital adequacy and liquidity International Journal of Scientific and Research Publications. “Reforming Governance and Regulation of Urban Co-operative Banks in India”. Dec.com Accessed on 20-5-2015 52 .investopedia.com Accessed on 18-05-2015 www. October 2012.ccub.