A Project Report On
Business Performance Analysis of the
H.P. State Cooperative Bank Ltd.- A
Comparative Analysis of B.O.
Nerchowk, Sundernagar and BSL
Colony
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SUBMITTED TO :- Mrs. SHIVANI SHARMA
SUBMITTED BY :- Harsh Kumar
Class :- MBA (2nd year)
CERTIFICATE
This is to certify that the project report entitled “Business Performance Analysis of the H.P.
State Cooperative Bank Ltd.- A Comparative Analysis of B.O. Nerchowk, Sundernagar and
BSL Colony” has been completed by HARSH KUMAR under the best of my knowledge,
with the reference to the partial fulfillment of the requirement for the degree of Masters of
Business Administration.
All the necessary details were provided from our side for the establishment of this project.
Name of student: Harsh Kumar
(MBA 2nd year.)
Certified by: Mrs. SHIVANI SHARMA
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DECLARATION
I hereby declare that the research work presented in this thesis entitled “Business
Performance Analysis of the H.P. State Cooperative Bank Ltd.- A Comparative
Analysis of B.O. Nerchowk, Sundernagar and BSL Colony” is a record of independent
and benefited project work carried out by me under the supervision and guidance of Mrs.
SHIVANI SHARMA.
The information and data given n the report is authentic to the best of my knowledge. The
report has not been previously submitted for the award of any Degree, Diploma, Associated
or other similar title of any other university or institute.
Harsh Kumar
(MBA 2nd year.)
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ACKNOWLEDGEMENT
I have taken efforts in this Project (Business Performance Analysis of the H.P. State
Cooperative Bank Ltd.- A Comparative Analysis of B.O. Nerchowk, Sundernagar and
BSL Colony). However, it would not have been possible without the kind support and help
of many individuals. I would like to extend my sincere thanks to all of them.
I would like to thank my project guide Mrs. SHIVANI SHARMA for giving me this and
guiding me throughout my work with patience. She has taken pain to go through my project
and make necessary corrections as and when needed. Without her guidance and persistent
efforts this project would not have been possible.
I am extremely thankful to my teacher and faculty guide Mrs. SHIVANI SHARMA for their
coordination and cooperation and for there kind guidance and encouragement.
I also thank all my friends who have more or less contributed to the preparation of this
project report. I will be always indebted to them.
The study has indeed helped me to explore more knowledgeable avenues related to my topic
and I am sure it will help me in my future.
[Harsh Kumar]
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INDEX
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1 Introduction
1.1 INTRODUCTION
Cooperative structure plays an important role in Indian financial system. In India three tier
cooperative structure is followed. The basic principle of co-operation is followed in this
structure. At the grass root level various Primary co-operative societies are formed. Members
pool in their funds and needy members are given financial assistance from the pool. At
district level District Central Co-operative banks are formed. These banks give financial
assistance to the primary co-operative societies which fall under their area. These banks
ultimately get financial assistance from State co-operative banks. A state co-operative bank is
apex bank for rural credit in any state. At present Himachal Pradesh has presence of quite a
good number of Commercial banks, Co-operative Banks and Regional Rural Bank (RRB).
The state had a network of 1925 branches as on 31.03.2015. Out of which 1539 branches are
in rural areas, 300 branches in Semi-urban areas and 86 branches in Urban Areas. As far as
rural credit is concerned Himachal Pradesh State Co-operative bank (HPSCB) is the apex
bank for rural financing in the state. There are three main co-operative banks operating in the
state, One is the HPSCB which is operating in six districts namely, Shimla, Mandi, Bilaspur,
Kinnaur, Sirmour as District Cooperative bank, Second bank is Kangra Central Co-operative
Bank (KCCB) which is operating in another 5 districts namely Hamirpur, Kangra, Una,
Chamba, Lahaul and Spiti, Third bank is Jogindra Central Co-operative Bank which is
operating in Solan district only.
FEATURES OF COOPERATIVE BANK
1. Governed sponsored, supported and subsided financial agencies in India.
2. Work on the principal of cooperation, self-help and mutual help.
3. The function on non-profit no loos basic.
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4. Performed limited banking functions.
5. Some of them are Scheduled banks but are non-schedule bank.
6. Cooperative banks usually cater to the credit needs of agriculturist.
7. Cooperative banks are subject to rules laid down by the registrar of cooperative
societies.
8. The area of operations of Cooperative banks is limited and mostly confined to state.
They do not operate at national and international level.
ADVANTAGES OF COOPERATIVE BANK
Easy to form
No obstruction for membership
Limited liabilities
Service motive
Stability and continuity
DISADVANTAGE OF COOPERATIVE BANK
Limited resources
Insufficient management
Lack of secrecy
Absence of motivation
Excessive government interferen.
PROFILE OF HIMACHAL PRADESH STATE COOPERATIVE BANK
The Cooperative Banks came into picture after 1904. Himachal Pradesh has the distinction of
having first Coop. Society Registered in India. Cooperative were primarily visualized as
specialized agency for financing the credit requirement of rural people in the country
particularly agriculture.
The commercial Banks were operating for the years, but it was being felt that these banks
were not paying necessary head to the credit requirements of common masses. Further the
commercial banks, were mainly concentrating their business in the urban area and the
banking facilities to rural people were not available. Consequently, the Co-operative Banks
came into picture after 1904. Himachal Pradesh has the distinction of having first Coop.
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Society Registered in India. Cooperative were primarily visualized as specialized agency for
financing the credit requirement of rural people in the country particularly agriculture.
In Himachal Pradesh at the time of attaining independence of India, Mahasu Central Co-
operative Bank, The Mandi Central Co-operative Bank Ltd. and The Chamba Central Co-
operative Bank Ltd. were functioning to cater to the needs of farmer. In 1953 Himachal
Pradesh State Co-operative Bank was established after amalgamating these three Central Co-
operative Banks into it.
The Registration of Himachal Pradesh State Co-operative Bank was done in August, 1953,
under the Co-operative Society Act, 1912 the bank started functioning on 15th March
1954.At that time, the State of Himachal Pradesh used to be the Union Territory and there
were only 6 districts in the State. The bank started functioning as an Apex bank as well as
Central financing agency under 2-tier system in 6 districts of the State. In the year 1955 one
Joint Stock Bank i.e., Bank of Sirmour was also merged in it.
The Himachal Pradesh Co-operative Bank is serving the people of the State through a
network of 190 branches and Extension Counter of which about 94% is in the rural areas of
the State and one branch at New Subzi Mandi, Azadpur,New Delhi for the benefit
horticulturists of the State.
The performance of the Bank over these 50 years could be summarized as
under:-
H.P. State Cooperative Bank has prepared and implemented number of loan schemes targeted
towards all sections of the society at most attractive terms.
The H.P. State Cooperative Bank Ltd. actively associating in the implementation of poverty
eradication programs launched by the Govt. of India, Govt. of H.P. and various other
agencies. The main Schemes being implemented by the Bank are as under:-
Swarn Jayanti Gram Swarojgar Yojna.
Swarn Jayanti Sehri Swarojgar Yojna.
Self Help Groups.
Kisan Credit Card Schemes.
Under Tie-Up with H.P. Khadi & Village Industries Board.
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Him Swarojgar Credit Card Scheme.
SAMFEX
Him Small Entrepreneur Credit Card Scheme.
Under Tie-Up with SC/ST Development corporation.
Under Tie-Up with Women Development Corporation.
OBJECTIVE OF THE STUDY
The main objectives of the study are:
i. To analyze the Business Performance of the Himachal Pradesh (HP..) State
Cooperative Bank (HPSCB) Ltd.
ii. To study the Comparative Analysis of B.O. Nerchowk, B.O. Sundernagar and B.O.
BSL Colony of the H.P. State Cooperative Bank Ltd.
RESEARCH METHODOLOGY
This study is basically primary in nature. For the purpose of study, Primary data has been
gathered from the three branches (B.O. Nerchowk, B.O. Sundernagar and B.O. BSL Colony)
by banks annual reports and the balance sheet.
The study covers in period of two months and an intensive analysis of data relating to the
period has been attempted.
