Chapter – 1
A co-operative bank is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank. Co-operative banks are often created by persons belonging to the same local or professional community or sharing a common interest. Co-operative banks generally provide their members with a wide range of banking and financial services (loans, deposits, banking accounts etc.) The 7 co-operative principles are:
* Voluntary and open membership
* Democratic member control
* Member economic participation
* Autonomy and independence
* Education, training and information
* Co-operation among Co-operatives
* Concern for Community
Co-operative banks differ from stockholder banks by their organization, their goals, their values and their governance. In most countries, they are supervised and controlled by banking authorities and have to respect prudential banking regulations, which put them at a level playing field with stockholder banks. Depending on countries, this control and supervision can be implemented directly by state entities or delegated to a co-operative federation or central body. Co-operative banks are deeply rooted inside local areas and communities. They are involved in local development and contribute to the sustainable development of their communities, as their members and management board usually belong to the communities in which they exercise their activities. By increasing banking access in areas or markets where other banks are less present - SMEs, farmers in rural areas, middle or low income households in urban areas - co-operative banks reduce banking exclusion and foster the economic ability of millions of people. They play an influential role on the economic growth in the countries in which they work in and increase the efficiency of the international financial system. Their specific form of enterprise, relying on the above-mentioned principles of organization, has proven successful both in developed and developing countries.
SCOPE AND IMPORTANCE
Generally the financial statements published by the banks periodically help to assess the profitability and financial position of the bank. A good manipulation of accounts is possible only with the help of an intelligent and experienced analyst. To reveal such window dressing and to bring to light the real position of an organization, a critical and objective analysis is required. Here a study is conducted showing the relationship between the savings bank deposit and the cost of funds. The present study attempts to make a critical analysis of how the savings bank deposit of a bank and the cost of funds affect each other or the impact of savings bank deposit on the cost of funds. The study also makes a critical analysis of the actual performance of the bank in terms of performance growth and profitability.
OBJECTIVES OF THE STUDY
The objectives of the study are:
* To study about the fund mobilization program of the bank as to what kind of deposits the funds are invested into like fixed deposits, savings bank and current deposit. * To study about the loans offered by the bank & their rates. * To offer suggestions for the improvement of the financial performance of the bank
LIMITATIONS OF THE STUDY
One of the most important limitations was that the study conducted was short. The researcher faced constraints like time, distance etc. Apart from these the major limitation was the inexperience of the candidate in collecting the data. In short the limitations of the study are:
* The main limitation of the study is the time factor. For a clear evaluation much more time is required. As the time was short and insufficient, it is likely to attempt the accuracy of inferences. * The data is collected through personal interviews and the records of the bank. There is possibility that they may not have given...
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