Limitation of Banks

A Study on performance of bank using Camel modelwith special reference to The Citizen Co-operative Bank Ltd. INTRODUCTION India has large number and broad range of rural financial services providers with formal financial banks at one extreme informal provider such as money lenders or traders at the other extreme and between these 2 a large number of semi-formal providers the co-operative sector was conceived as the 1st formal institutional channel for credit delivery to rural India. It has been regarded as key instrument for achieving the financial inclusion objective.

OBJECTIVES * To know the capital adequacy requirements of the co-operative. * To know the credit risk prevailing in the bank. * To know the qualitative measures to monitor and control risks. * To know the profitability of the co-operative banks. * To know the liquidity position of the bank. STATEMENT OF THE PROBLEM Financial statements of banks operating in India will reveal that all of them are almost identically structured. This is because the banks in India have to prepare their financial statement in accordance with the 3rd schedule of sec29 of banking regulation act.

A typical banks balance sheet has 12 schedules 13-16 being allocated to the income statement. In order to compare banks, which is the larger bank? The one whose average assets are larger other banks or the one whose total income. It will evaluate the bank performance on various parameters. There are also more sophiscated models based on performance of bank using camel method. Regulators analysis and investors have to periodically assess the financial condition of each bank. Banks are rated on various parameters based on financial and nonfinancial performance. One of the popularly used assessments goes by the acronym camel.

SCOPE OF THE STUDY

* This study is conducting in The Citizen Co-operative Bank Ltd with reference to the financial reports for the year 2010-11. * This model highlights on capital adequacy, asset management practice, and earning and liquidity position of the co-operative bank. RESEARCH OF METHODOLOGY * Primary Data: Primary data are collected directly from the bank and through internet. * Secondary Data: Secondary data are collected from books and magazines. COMPANY PROFILE Co-operative started in INDIA in 1904. The first urban co-operative credit society was registered in CANJEEVARAM (KANJIVARAM) in the erstwhile Madras province in October, 1904.

They are the primary financiers of agricultural activities, some small-scale industries and self-employed workers. The ANYONYA CO-OPERATIVE BANK in India is considered to have been the first co-operative bank in ASIA. They perform all activities as all banks perform. The first known mutual society in India was probably the ‘Anyonya Sahakari Mandali’ organized in the erstwhile princely State of Baroda in 1889 under the guidance of Vital Laxman also known as Bhau sahib Kavthekar. Urban co-operative credit societies, in their formative phase came to be organized on a community basis to meet the consumption oriented credit needs of their members.

Salary earners societies inculcating habits of thrift and self-help played a significant role in popularizing the movement, especially amongst the middle class as well as organized labour. From its origins then to today. The thrust of UCB’S, historically, has been to mobilize savings from middle and low income urban groups and purvey credit of their members-may of which belonged to weaker sections. COMPANY THE CITIZEN CO-OPERATIVE BANK LTD NO-651/A, ‘D’ Block, 2nd Stage, 1st Main Road, Dr. Rajkumar Road, Rajajinagar, Bangalore-560010. E-MAIL: [email protected] com Phone no: 23321923/23328735