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Submitted to dronacharya college of education rait, H.P In the partial fulfillment of degree of Bachelor of business administration






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

No task is single mans effort .Any job in this world however trivial or tough cannot be accomplished without the assistance of others. An assignment puts the knowledge and experience of an individual to litmus test. There is always a sense of gratitude that one likes to express towards the persons who helped to change an effort in a success. The opportunity to express my indebtness to people who have helped me to accomplish this task. I would like to thank Mr. Last but not the least; I shall be very thankful to MR. RAHUL AND MR. NARESH both are handled clerical post in KCC Bank rajiana branch. He gives me practical knowledge about banking entries and all necessary information regarding bank. I heartily thankful to both persons to gave me this knowledge able opportunity.


In any banking institution the PRODUCT AND SERVICES are provided to consumers is hardly matter. 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. The products of bank i.e loan, deposits, etc. in the banking loan is treated as an income of bank. Today bank is become a essential part of our life even every bodys life. Bank is define as its services and objectives. KCC bank is also help for rural people and landlord for cultivation their land. Bank is helping for people to build the saving habit even it is also helpful to students. Bank is generally come existence under the banking regulation act 1949. RBI is one of the bank who operate all the activities of bank and also provide the guidelines. In my experience I feel life is treated as an race in todays competitive world the hard working is become most important. But some people in the word those are provided me knowledge able information. In the learning procedure generation gap is hardly matter. Practical training is became expert to any business man related to their field.


Page no.

5 Acknowledgement Preface Introduction Of Banking Companys Profile

a. b. c. d. e. f. g. h. i. 3. a. b. c. d. e. f. g. h. Introduction to KCC Bank KCC BANK today Business profile... Board of directors Board committee. Business objective Technology used in KCC BANK.. Products and services... Awards and recognition Objective of study Importance of study. Meaning of research Research problem Research design... Data collection method Analysis and interpretation of data.. Limitation of study..

1. 2.

3 4 6-18 19-55
21 27 28 29 30 31 32 34 54

Research Methodology

58 58 59 59 60 61 62 62


Findings ,Suggestions And Conclusion. Bibliography




Chapter 1

In todays life bank is play the role of friend and helpful to get all things through loan if you do have regular income.

Definition Of Bank:
Banking Means "Accepting Deposits for the purpose of lending or Investment of deposits of money from the public, repayable on demand or otherwise and withdraw by cheque, draft or otherwise."

-Banking Companies (Regulation) Act,1949

ORIGIN OF THE WORD BANK:The origin of the word bank is shrouded in mystery. 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. In England, the issue of paper money by the government was referred to as a raising a bank.

Its origin in the simplest form can be traced to the origin of authentic history. After recognizing the benefit of money as a medium of exchange, the importance of banking was developed as it provides the safer place to store the money. This safe place ultimately evolved in to financial institutions that accepts deposits and make loans i.e., modern commercial banks.

Banking system in India

Without a sound and effective banking system in India it cannot have a healthy economy. 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. For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country.


7 Banking in India has its origin as early or Vedic period. It is believed that the transitions from many lending to banking must have occurred even before Manu, the great Hindu furriest, who has devoted a section of his work to deposit and advances and laid down rules relating to the rate of interest. During the mogul period, the indigenous banker played a very important role in lending money and financing foreign trade and commerce. During the days of the East India Company it was the turn of agency house to carry on the banking business. 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 Bank of Hindustan is reported to have continued till 1906. While other two failed in the meantime. In the first half of the 19th century the East India Company established there banks, The bank of Bengal in 1809, the Bank of Bombay in 1840 and the Bank of Bombay in1843. These three banks also known as the Presidency banks were the independent units and functioned well. These three banks were amalgamated in 1920 and new bank, the Imperial Bank of India was established on 27th January, 1921. 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 Reserve Bank of India (RBI) which is the Central bank was established in April, 1935 by passing Reserve bank of India act 1935. The Central office of RBI is in Mumbai and it controls all the other banks in the country. In the wake of Swadeshi Movement, number of banks with the Indian management were established in the country namely, Punjab National Bank Ltd., Bank of India Ltd., Bank of Baroda Ltd., Canara Bank. Ltd. on 19th July 1969, 14 major banks of the country were nationalized and on 15th April 1980, 6 more commercial private sector banks were taken over by the government. The first bank in India, though conservative, was established in 1786. From 1786 till today,the journey of Indian Banking System can be segregated into three distinct phases. 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. New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991.

To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase III.

Phase I
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. 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. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders. In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. During those days public has lesser confidence in the banks. As an aftermath deposit mobilization was slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Moreover, funds were largely given to traders.

Phase II
Government took major steps in this Indian Banking Sector Reform after independence. In1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. 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. Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th July,1969, major process of nationalization was carried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country was nationalized. Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking segment in India under Government ownership. The following are the steps taken by the Government of India to Regulate BankingInstitutions in the Country:

1 2 3 4 5 6 7 8

1949: Enactment of Banking Regulation Act. 1955: Nationalization of State Bank of India. 1959: Nationalization of SBI subsidiaries. 1961: Insurance cover extended to deposits. 1969: Nationalization of 14 major banks. 1971: Creation of credit guarantee corporation. 1975: Creation of regional rural banks. 1980: Nationalization of seven banks with deposits over 200 crore.

After the nationalization of banks, the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11,000%. Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions. Phase III This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalization of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money. The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure.


10 Co-operative banks are an important constituent of the Indian Financial System. The cooperative movement originated in the west. Their role in rural financing continues to be important and their business in the urban areas also has increased in recent years. Cooperative banks are a part of the vast and powerful super structure of co-operative institutions which are engaged in tasks of production, processing, marketing, distribution, servicing and banking in India. When the national economic planning began in India, cooperative banks were made an integral part of the institutional framework of community development and extension services, which was assigned the important role of delivering the fruits of economic planning at the grass root levels. Today co-operative banks continue to be a part of a set of institutions, which are engaged in financing rural and agricultural development. However, certain types of banks viz., Urban Cooperative Banks, State Co-operative Banks, Central Co-operative Banks operate in semi-urban, urban, and metropolitan areas also. Some distinguishing characteristics of the nature of co-operative banks are a) They are organized and managed on the principles of co-operations, selfhelp and mutual-help. They function with the rule of one member, one berth and on no profit, no loss. b) Co-operative banks perform all the main banking functions of deposit mobolisation, supply of credit and provisions of remittance facilities. c) Co-operative banks are perhaps the first government sponsored, governmentsupported and government-subsidised financial agency in India. They get financial and other help from the RBI, NABARD, central Government and State Governments. They constitute the most favored banking sector with no risk of nationalization. d) Co-operative banks belongs to the money market as well as the capital market. Participation in money market improve their income so that their remain viable. e) Some co-operative banks are scheduled banks, while others are nonscheduled banks. Banks with Demand and Time Liabilities over Rs. 100 crores each are included in the second schedule of The RBI Act, 1934. SCBs are scheduled o-operative banks. f) Co-operative banks are required to maintain the CRR and SLR only at the level of 3 Percent and 25 Percent respectively. According to a Government publication, co-operative in the country's economy will not only avoid excessive centralization and bureaucratic control likely to result from planning itself, but also curb the acquisition instincts of the individual producer or trader working for himself. For these reasons, various Five year plans envisaged a great deal of scale for the organization of co-operative society.


11 At the time of formation of Himachal Pradesh in the year 1948, there was acute scarcity of the banking facilities. There were only three central co-operative banks, one stock bank and 663 co-operative societies that were registered under the co-operative societies act 1912. These three central co-operative banks were the Mandi Central Co-operative Bank Ltd., The Chamba Central Co-operative Bank Ltd. and The Mahasu Central Co operative Bank Ltd. The Mandi Central Co-operative Bank Ltd., had its operation in the district of Mandi and its surrounding royal states. The Bank was mainly controlled by individuals. The management was dancing to the tunes of managing committee which was considered the sole regulating authority. The Chamba Central Co-operative Bank Ltd. had its area of operation in the district of Chamba and some other areas of the state. The management was under the control of the managing committee, which comprised a few influential persons. The Mahasu Central Co-operative Bank Ltd., had its area of operation in the old Mahasu district. The bank used to fulfill the needs of people of Solan, Sirmour, and some other parts of the Shimla district. This was the largest Central Co-operative Bank of that time. The only stock bank in the state was Bank of Sirmour with its area of operation in the old Sirmour district. The Reserve Bank of India, in its Agricultural Credit Department, 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. After high level discussions between the state government and the Reserve Bank of India, in November 1951, 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. In March 1954, the already existing three central co-operative banks and one stock bank was established which started functioning. The area of operation of The H.P. State Co-operative Bank covered the then Union Territory. After reorganization of the states, some area of Punjab, Haryana, were transferred to Himachal Pradesh in 1966. In these areas two central co-operative banks viz. The Kangra Central Co-operative Bank Ltd. And The Jogindra Central Co-operative Bank Ltd. were operating but these were not covered by the unitary system already existing in the state. These banks have been allowed to function as central financing agencies in their respective areas. In September, 1976, some branches were exchanged between the State Cooperative Bank Ltd. And The Jogindra Central Co-op. Bank Ltd. with a view to extend their respective areas of operations to the whole Shimla and Solan districts respectively. At present the State Co-operative Bank with its headquarters at Shimla and branches at different viable places in the state, functions in six districts namely Bilaspur, Chamba, Kinnour, Mandi, Shimla and Sirmour. At the district level there are two central co operative banks. The Kangra Central Co-operative Bank Ltd. functioning in 5 districts namely Hamirpur, Kangra, Kullu, Lahaul & Spiti and Una districts with its head office at Dharamshala in Kangra district and the Jogindra Central Co-operative Bank Ltd., operating in Solan district only.

Chapter 2


The Kangra Central Co-operative Bank Ltd. came into existence after its registration on 17th March 1920. It was established to facilitate the operation of co-operative societies, affiliated with it by raising resources and acting as a balancing factor. The Kangra Central Co-operative Bank Ltd. set out its mission and soon built up its image to attract the well off to deposit their surplus with the bank. It is the pioneer banking institution catering to the needs of the societies since 1920 in the then Kangra district, which included Kullu and Lahaul & Spiti also. Before partition of the country, share capital of the bank amounted to Rs. 7,69,000/-, Reserves Rs. 59,933/-, Deposits Rs. 12,45,840/-, Investments Rs. 26,849/- and Working Capital Rs. 13,63,815. Out of this 10,07,132/- i.e. 74% of the working capital was in the form of Fixed Deposit with Provincial Bank, Lahore ,Current Account with Imperial Bank, Lahore and in the form of Punjab Bonds at Lahore. The partition resulted in a great set back to the working of the bank and a sum of Rs. 10,64,385/- including Punjab Bonds is still locked up in the said Institution at Lahore. Thus, in the wake of partition the bank witnessed a period of stress, strain and loss of momentum. All this affected its functioning badly.. On Ist November, 1966, the district of Kangra, Kullu, 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. The Kangra Central Co-operative Bank Ltd; unlike most of the District Central Co operative Banks (DCCB) in our country, operates in five districts i.e. Kangra, Kullu, Lahaul & Spiti, Una and Hamirpur as DCCB operates in one district only. 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. Its deposit in the year1970-72 was 256 lacs which rose to 1054 lacs in the year 1973-74, from there to now the bank has progressed drastically.

13 From humble beginning, today the bank enjoys envious reputation and credit worthiness which is reflected by a high rate of acceleration to its deposits over the year. The Kangra Central Co-operative Bank Ltd. has a network of 156 Branches, 14 Zonal Offices and 4 Extension counters and has more than 25 hundred PAC's, Weavers, Industrial and other type of societies affiliated to it. The bank has its 90% branches in rural areas. The bank is providing loans to the entrepreneurs in various fields like agriculture, luxury goods, industries besides loans schemes for the employees of the state & central governments. 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. For this purpose the bank is adopting policies in consonance with principles of co-operative banking, economic reforms, RBI Guidelines, NABARD's advice and social responsibilities. The bank is striving hard to attain professionalism in management.




Type Industry

COOPERATIVE Banking Insurance 1920 DHARAMSHALA R.S Mankotia,Chairman Bhagwan Das ,vice chairman, Ajit Mahajan Director Sandeep Kumar, Managing Director

Founded Headquarters

Key people


Loans, , deposits and services products 47.14crores

Revenue Total assets

4.61 crores



The objectives of The Kangra Central Co-operative Bank Ltd. can be understood as:

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. 2) To function as an integrated organization for the provision of credit for production, marketing, supply and processing purposes to co-operative societies, artisans, labourers and others in its area of operation. 3) To make loan and advances to : I) Member societies and individual members only. II) To any persons with or without security depending upon the size of the loan. 4) To lend money or to grant cash credit with limits and overdraft, for individual members against: I) II) Security of fixed deposit receipt in respect to deposit made in the bank Agriculture and industrial produce.

III) Securities as defined in the section 20 of the Indian Trust Act. IV) To collect bills, drafts, cheques and other negotiable instruments on behalf of the members. V) To receive money in saving, current or in any type of account. corporations. VII) To facilitate the operation of any society. VIII) To subscribe the share capital of the cooperative societies, 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. of H.P., Public bodies and


16 The management of the affairs of the bank shall rest as defined in the Byelaws in the following bodies and office bearers. a) The Central Body. b) The Board of Directors. c) The Executive Committee. d) The Chairman. e) The Managing Director. f) The General Manager.

The Board of Directors with the prior approval of the Registrar co-operative societies appoints the General Manager. The General Manager further appoints three Deputy General Managers to control development, administration and audit & inspection, Zonal Managers, Branch Managers and other staff. The Deputy General Managers besides assisting the General Manager in the day to day working, are responsible for the inspection of Branches and follow up actions on inspection reports. The Zonal Managers are required to supervise and control the working of the branches and staff in their respective areas. Branch Managers are the incharges of their branches. At the head office four sections are working for facilitating the administration of the Bank. These sections are under the charge of Zonal Managers/Branch Managers.

Management :-

Sh.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. Given the professional expertise of the management team and the overall focus on recruiting and

17 retaining the best talent in the industry, the bank believes that its people are a significant competitive strength. Board of Directors Sr. No. 1. Name of the Director Phone No. Shri Rasil Singh Mankotia, Chairman 9418076361(M) V.P.O. Kale Amb, Tehsil & Distt. Hamirpur ( H.P.) 2 Shri Bhagwan Dass, Vice Chairman VPO Sanghol, Tehsil Jaisinghpur Distt. Kangra ( H.P.). 3 Shri Desh Raj MLA, Director Village Dah, P.O. Dah Kulara Tehsil Indora, Distt. Kangra 4 Shri Ajit Paul Mahajan, Director VPO Dohab, Tehsil Shahpur Distt. Kangra ( H.P.) 5 Shri Gurcharan Singh Thakur, Director Village Harmittan P.O. Nehran Pukhar Tehsil Dehra, Distt. Kangra(H.P.) 9816258935 (M) 9418489605 (M) 9816285008 (M) 9418187839(M)

Shri Joginder Singh Guleria, Director 9418085733 (M) VPO Dehra, Tehsil Dehra Distt. Kangra ( H.P.)

Smt. Prem Lata Thakur Director,VPO 9816002221 (M) Bhutti Colony, Tehsil & Distt. Kullu (H.P.)

Shri Karnail Singh Rana, Director

9418122286 (M)


Village Kandi, P.O. Bhugnara Tehsil Nurpur,Distt. Kangra(H.P.) 9 Shri Jaid Nath Sharma Director Village Hatli, P.O.Galore, Tehsil Nadaun, Distt. Hamirpur (H.P.) 10 Shri Ramesh Chand Bhatia, Director Village Amtrar,P.O. Suneher Tehsil & Distt. Kangra( H.P.) 11 Shri Ranjeet Singh Rana, 9816340135 (M) DirectorVillage Bhilla,P.O. Bachhwai Tehsil Palampur, Distt. Kangra( H.P.) 12 Shri Amrit Lal Bhardwaj, Director Village & P.O. Dehlan, Tehsil & Distt. Una ( H.P.) 13 Shri Davinder Kumar, Director VPO Charara, Tehsil Bangana, Distt. Una ( H.P.) 14 Shri Karan Singh Pathania, Director Village Bain Attarian P.O. Kandrori, Tehsil Indora Distt. Kangra(H.P.) 15 Shri Rajinder Singh Director Village Tharass,P.O. Hurla Tehsil & Distt. Kullu ( H.P.) 9418060287 (M) 9805366394 (M) 9816644040 (M) 9816031863 (M) 9816250324 (M) 9418090816 (M)

19 16 Shri Rigizen Samphel Hayerpa, Director, VPO Kawaring, Tehsil Keylong Distt. Lauhal & Spiti (H.P.) 17 Shri Pawan Kumar Director VPO Ambota, Tehsil Amb, Distt. Una (H.P.) + 91 98166 13905 + 91 94185 50400


Shri Rakesh Thakur Director VPO Samirpur, Tehsil Bhoranj Distt. Hamirpur (H.P.)

+ 91 94184 76833


Shri S.K. Rangra + 91 94181 34914 Director (RCS Nominee) Dy. RCS, Dharmshala (H.P.)


Sh. Sandeep Kumar, HAS Managing Director

+ 91 94180 94470


Sh. S. S. Sharma General Manager

+ 91 94180 10415

20 22 Sh. J.S. Rana General Manager + 91 94187 91237


Saving Product Interest Type Payable Frequency Compounded Half Yearly

Product Saving Bank Account

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. SOCIETIES Agriculture Non Farm Sector Personal Vehicle Weavers/Industrial/Housing Cash Credits INDIVIDUALS Agriculture Non Farm Sector Personal Vehicle Housing Cash Credits


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. Kotak Mahindra, Old Mutual Life Insurance Limited We are pleased to inform you that Bank has entered into a Referral Agreement with Kotak Mahindra, Old Mutual Life Insurance Limited. 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. Sukhi Jeewan and Eternal Life. 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


financing Tata Vehicles AXIS, HDFC and ICICI Bank The Bank has also corporate tie-up with AXIS, HDFC and ICICI Bank for remittance and collection purposes

The loan and deposits interest rate is vary according to time and rules.


23 The procedure adopted for conducting the research requires a lot of attention as it has direct bearing on accuracy, reliability and adequacy of results obtained. It is due to this reason that research methodology, which we used at the time of conducting the research, needs to be elaborated upon. It may be understood as a science of studying how research is done scientifically. So, 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. Research Methodology is a way to systematically study and solve the research problems. If a researcher wants to claim his study as a good study, 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.

The Research Methodology here includes:1 1 2 3 4 5 6 Objective of study Meaning of Research. Research Problem. Research Design. Data Collection method. Analysis and interpretation of Data Limitation of study


Objectives are the ends that states specifically how goal be achieved. Every study must have an objective for which all the efforts have been done. Without objective no research can be conducted and no result can be obtained. On the basis of objective all the research process is followed. Objectives are the main aspect of every study. The objective of the study gives direction to go through the research problem. It guides the researcher and keeps him on track. I have two objectives regarding my research project. These are shown below :1. Primary objective 2. Secondary objective
1. Primary objective :-

1) To study the software used in KCC BANK. 2) To analyse the financial statements of the corporation to assess its

24 true financial position by the use of ratios. 2. Secondary objective :1) To find out the shortcomings in KCC BANK. 2) To see whether KCC BANK is going well or not in different areas.


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. 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. Protecting the property of the business. Compliances with legal requirement.

1 Meaning of Research:
Research is defined as a scientific and systematic search for pertinent information on a specific topic. Research is an art of scientific investigation. Research is a systematized effort to gain now knowledge. It is a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Research is an academic activity and this term should be used in a technical sense. Research comprises defining and redefining problems, formulating hypothesis or suggested solutions. Making deductions and reaching conclusions to determine whether they if the formulating hypothesis. Research is thus, an original contribution to the existing stock of knowledge making for its advancement. The search for knowledge through objective and systematic method of finding solutions to a problem is research.

Research Problem
The first step while conducting research is careful definition of Research Problem. To ERR IS THE HUMAN is a proverb which indicates that no one is perfect in this world. Every researcher has to face many problemswhich conducting any research thats why

25 problem statement is defined to know which type of problems a researcher has to face while conducting any study. It is said that, Problem well defined is problem half solved. Basically, a problem statement refers to some difficulty, which researcher experiences in the context of either a theoretical or practical situation and wants to obtain the solution for the same. The problem statement here is:TO


3. 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. Research Design is the conceptual structure with in which research in conducted. It constitutes the blueprint for the collection measurement and analysis of data. 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. A research design is a framework for the study and is used as guide in collection and analyzing the data. It is a strategy specifying which approach will be used for gathering and analyzing the 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?



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. Experimental Research Design The research design is used to provide a strong basis for the existence of casual relationship between two or more variables. Descriptive Research Design It seeks to determine the answers to who, what, where, when and how questions. It is based on some previous understanding of the matter. Diagnostic Research Design It determines the frequency with which something occurs or its association with something else.


Descriptive research design is used in this study because it will ensure the minimization of bias and maximization of reliability of data collected. Descriptive study is based on some previous understanding of the topic. 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. Hence by making the type of the research conducted to be both Descriptive and Analytical in nature. From the study, the type of data to be collected and the procedure to be used for this purpose were decided.

4 Data Collection Method

The process of data collection begins after a research problem has been defined and research design ahs been chalked out. There are two types of data PRIMARY DATA It is first hand data, which is collected by researcher itself. Primary data is collected by various approaches so as to get a precise, accurate, realistic and relevant data. The main tool in gathering primary data was investigation and observation. It was achieved by a direct approach and observation from the officials of the company. SECONDARY DATA - it is the data which is already collected by someone else. Researcher has to analyze the data and interprets the results. It has always been important for the completion of any report. It provides reliable, suitable, adequate and specific


The required data for the study are basically secondary in nature and the data are collected from :

27 1 2 The audited reports of the company. INTERNET which includes required financial data collected form KCC BANKs official website i.e 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. Brouchers of KCC BANK. The valuable cooperation extended by staff members and the branch manager of KCC BANK,Kangracontributed a lot to fulfill the requirements in the collection of data in order to complete the project.

3 4

Methods of data analysis

The data collected were edited, classified and tabulated for analysis. The analytical tools used in this study are: ANALYTICAL TOOLS APPLIED: The study employs the following analytical tools: 1. Comparative statement. 2. Trend Percentage. 3. Ratio Analysis. 4. Cash Flow Statement.

Limitations of study
Difficulty in data collection. Limited knowledge about the bank in the initial stages. Branch manager was reluctant for giving financial data of the bank. The analysis and interpretation are based on secondary data contained in the published annual reports of KCC BANK for the study period.

Chapter 4


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 bank is using its working capital as well as fixed assets up to a well satisfactory level. But the long term capacity of bank i.e. solvency position to repay its liabilities has been decreased very slightly in the recent year i.e. 2010 as compare to previous years. 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. The bank has even expanded its branches from 152 in 204 to 163 in 2010. Implementation of new technology and CBS of branches has been done with use of new software bank c3.

The bank should improve its profitability position and ROI so that it does not effect the borrowing capacity of the bank. The bank should keep a good hold on solvency position which will help the bank to repay its outside liabilities. The company should maintain low level of creditors so that the company can pay them easily when required. The bank must have adequate cash and bank balance to repay its outside liabilities. The bank should maintain a proper inventory management system so that the unnecessary blockage of money can be avoided.

BIBLIOGRAPHY 1. 2. 3. all the knowledge able persons