Volume 6, Issue 4, April – 2021 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

Financial Analysis of Bagalkot DCC Bank, Bagalkot

Dr. S. O. Halasagi Umadevi Y. Koneri
Research Guide Research scholer
Rani channamma Univesity Rani channamma Univesity,
Belagavi Belagavi

Abstract:- The economic development depends on Siddanagouda Sannaramanagouda Patil. The Agricutural
movement of funds, so banking institutions are playing the Credit Cooperative Society of Kanaginahal was launched on
vital role in the sustainable development of economy. 8th July 1905 with the initial amount of two thousand rupees.
District Central Cooperative Bank has good position in the The first co-operative movement in Asia was started here in
agricultural and rural development of the nation. The Kanaginahal with the leadership of Sri. Siddanagouda
Bagalkote DCC Bank has more reached to the rural areas SannaRamanagouda Patil . The Agricultural Credit
of Bagalkote district, through their 47 branches. The DCC Cooperative Society of Kanaginahal was launched in
Bank Bagalkote works as intermediary between the state Kanaginahal on 8 July 1905 with the initial sum of two
credit cooperative Bank (Apex Bank) and Primary thousand rupees. It was the first of its kind in Asia. Initial
Agricultural Cooperative Societies (PACS). The growth work taken up by the Credit Cooperative Society was building
and development cooperative banks totally depends upon Railway Station in the village and providing safe drinking
their financial ability.DCC bank is one of the key financing water facility to the villagers.
institution at district level who takes responsibility of
meeting credit needs of various types cooperatives in the The Co-operative Credit Societies Act 1904 was passed
district and at the same time DCC banks are having and then amended in 1912 to facilitate the establishment of
various problems like overdue, low recovery rate, non central cooperative banks at the district level, thereby giving it
performing assets etc. Therefore, it is require studying the a three tier federal character. The first Central Cooperative
financial analysis of DCC Bank Bagalkot. This paper Bank was registered in Uttar Pradesh in 1906 as a primary
covered to analyse the financial performance of DCC Bank society. In Rajasthan the first DCC Bank was started in 1910
Bagalkot during the period 0f 2018-19 and 2019-20. at Ajmer. In karnatak the first DCC Bank was started in 1914
i.e. South Canara District Central Cooperative Bank in Puttur.
Keywords:- Financial Analysis, District Central Cooperative Karnatak Co-operative Society Act was passed in the 1959.
Bank, Profitability.
Bank Profile:
I. INTRODUCTION The Bagalkot DCC bank Bagalkot is the result of the
bifurcation of the Bijapur DCC Bank and has started
The economic development depends on movement of functioning from 01.03.2003. The Reserve Bank of India has
funds, so banking institutions are playing the vital role in the granted banking license on 15.12.2011. At present the Bank
sustainable development of economy. District Central has 44 branches, 3 extension counters and Head office is
Cooperative Bank has good position in the agricultural and Navanagar, Bagalkot catering to the financial needs of 262
rural development of the nation. The birth of Bagalkot district PACS and many other co-operatives affiliated to the Bank.
was took place into bifurcated from Bijapur district in 1997
via Government of Karnataka directive Notification RD 42 Sl , Parameters 2018- 2019-20
LRD 87 part III. The new Bagalkot district having eight talkus No 19
– Badami, Bagalkot, Bilagi,Guledgudda, Rabkavi Banhatti, 1 Own Funds 32138 37274
Hunagund,Jamakandi and Mudhol. Bagalkot district is 2 Deposits 214561 250898
agricultural and rural based district. The DCC bank Bagalkot 3 Advances 66328 88479
is the result of the bifurcation of the Bijapur DCC Bank and 4 Total Assets 343248 419279
has started its functioning from March 1, 2003. The DCC bank 5 Capital 12126 14003
has plays an important role in agricultural financing. It 6 Investment 55056 82364
provides various types of loans to the farmers as per their 7 Interest Earned 25920 28420
needs. 8 Interest Paid 18941 20822
9 Profit and Loss 494 510
Cooperative Movement
10 Recovery Rate 97.13 95.09
In Asia, the first cooperative movement was started here
Source: Annual Reports of BDCCB Bank from 2018-19
in Kanaginahak with the leadership of Late. Shi.
and 2019-20

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Volume 6, Issue 4, April – 2021 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
II. REVIEW OF LITERATURE PERIOD OF STUDY:
For collection of the secondary data on financial
Various studies have been under taken the world over to performance of the DCC Bank Bagalkot, Two years i.e. from
know the financial position of cooperative banks in the 2018-19 and 2019-2020 were taken as the reference period.
country and abroad. Some of the related literatures of reviews
are as follows. IV. RESEARCH METHODOLOGY

As per the Maclagan Committee in 1915, Central The financial analysis of the DCC Bank Bagalkot has
Cooperative bank should cover a large area with convenience been taken with the help of financial ratios. The ratios are used
and efficiency. to the financial health of the bank and following ratios are net
worth, deposit, loans and advances, investment, capital, net
G. Prakash-2014: In his paper of study on financial profit and total assets.
performance of Shevapet urban Cooperative Bank,Salem.
Banking institutions are important component of the Indian METHOD OF DATA COLLECTION/ SOURCE OF
economy. Bank means accepting the deposits from public and DATA:-
lending the money to needy people. It allows the economy The study is mainly based on secondary data which is
growth. According this study to analyzed the profitability and collected, compiled and calculated mainly from annual reports
liquidity position of the bank. of the DCC Bank Bagalkot. Other related information
collected from journals, conference proceedings and websites.
EV Murray (2015)Cooperative Credit Structure in India: Why
can’t we do more? ANALYSIS AND INTERPRETATION
The cooperative credit structure has not re-oriented itself In this paper, analyze the financial data through ratio.
to the changing realities. The need for a vibrant and effective Ratio means compassion of two related variables and
cooperative credit delivery mechanism is more relevant today comparable with each other. Ratio helps to understand and
than at any time in the past. It is for the cooperatives to seize compare the financial and overall position of the bank and
the opportunity and make things happen. helps in evaluating the performance with pre determined
standards with its own previous performance. The present
III. OBJECTIVE OFTHE STUDY study is concerned about the evaluation of financial
performance of Bagalkot District Central Co operative Bank
1. To know the financial performance of DCC Bank from 2018-19 to 2019- 20 which has been carried out with the
Bagalkot. help of different ratios. The main variables and their trends are
2. To evaluate the factors influencing to financial given below;
performance of the bank.
A. BALANCE SHEET ANALYSIS (Rs. in Lakhs)
HYPOTHESES OFTHE STUDY:-
The DCC Bank Bagalkot is an important bank of 2018-19 2019-20
Bagalkot to providing funds for agricultural and rural Own Funds/ Net Worth 32138 37274
development of Bagalkot district.
Deposits 214561 250898
SIGNIFICANCE/ IMPORTANCE OFTHE STUDY:- Advances 66328 88479
1. This study is significant to analyze financial performance
Total Assets 343248 419279
of DCC Bank.
2. The outcomes of the present study are useful to the policy Capital 12126 14003
makers to improve the workings of the DCC Bank Investment 55056 82364
Bagalkot.
Working Capital 317461 383455
LIMITATIONS OFTHE STUDY:-
1. First and important limitation of the research is only B. PROFIT AND LOSS ANALYSIS
analysis the financial data.
2. Another problem of the research work is only selected 2018-19 2019-20
period.
3. This study is based on secondary data. Interest Earned 25920 28420
Interest Paid 18941 20822
AREA OF THE STUDY:
The study is based on the performance of DCC Bank Profit and Loss 494 510
Bagalkot. Therefore, study covers Bagalkot District to the
fulfillment of objectives of the study.

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Volume 6, Issue 4, April – 2021 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
Years Owners Fund Total Deposits Ratio 5. Return on Total Asset = Net
profit/Total Asset *100
2018-19 32138 214561 14.9
Year Net Profit Total Assets Ratio
2019-20 37274 250898 14.8
2018-19 49392 34324845 0.14
It denotes the ratio owners’ capital to total 2019-20 51034 41927910 0.12
depositors. The ideal ratio is 10%. So BDCCB has good
financial condition because it has the ratio above the
ideal ratio in both periods. This above table presents the ratio of net profit to
total assets. The ratio ranges from 0.14% to 0.12%, so
Table-2 bank has to take care of productive assets.

1. Credit to Deposits Ratio=Total Advances /Total 6. Net Profit margin = Net profit/Total
Deposits*100 deposits *100
Total Advances Total Deposits Ratio Year Net Profit Total Deposits Ratio
2018-19 22504945 21456101 104.8 2018-19 49392 21456101 0.23
2019-20 26068911 25089846 103.9 2019-20 51034 25089846 0.20

This table produces the ratio of credit to deposits of This above table shows that the ratio net profit to
BDCCB Bagalkot. The credit deposits ratio of the bank total deposits. The ratio ranges from 0.23% to 0.20%. It
is found to be satisfactory. This ratio helps to know the indicates poor performance of the bank.
profitability of the bank. It was recorded in 2018-19 is
104.8% and 2019-20 is 103.9% and reduced by 0.98%. Years Investment Total Deposits
2018-19 55056 214561
2.Interest Earned Ratio= Interest received on
Loan/Total Loans*100 2019-20 82364 250898
Year Interest Earned Loans Ratio
This ratio reflects the % of amounts involved in liquid
2018-19 189.1 2250.5 8.40 assets and amount available to depositors by short notice. It is
2019-20 221.4 2606.9 8.49 very important to know the availability of funds to serve the
depositors at sudden or adverse situation. It indicates that the
3. Advances to Total Assets Ratio= Loans higher ratio, more funds available for deposit holders. In the
&Advances/Total Assets*100 study periods bank has sufficient funds for deposit holders.
Total
Year Loans &Advances Ratio V. CONCLUSION
Assets
2018-19 22504945 34324845 65.5 The present study intended to measure the financial
2019-20 26068911 41927910 62.1 performance of Bagalkot District Central Cooperative Bank
for the period of 2018-19 and 2019-20.BDCCB is a playing
vital role in providing finance to PACS and individual for the
This table shows the proportion of loans and
promotion of agricultural and non agricultural activities
advances in total assets. In the year 2018-19 is 65.5%
thought the bagalkot district. BDCCB has good financial
and 2019-20 is 62.1% and reduced by 3.4%.so bank has
condition because the ratio of own capital to total deposits is
take necessary steps while lending the loans and
above the ideal ratio. The ideal ratio is 10%.
advances.
The ratio of credit to deposits of BDCCB Bagalkot is
4. Capital Deposits Ratio=
found to be satisfactory. This ratio helps to know the
Capital/Deposits*100
profitability of the bank. Bank has continuously works on
Capital Deposits Ratio increase the interest income on loans. The ratio of net profit to
2018-2019 1212574 21456101 5.6 total assets and total deposits is decreasing trend, so bank has
to concentrate on productive assets. Bank has sufficient funds
2019-2020 1400341 25089846 5.5 for disbursement of deposits.

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Volume 6, Issue 4, April – 2021 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
This research recommends that bank could be adopted
proper measures to ensure the financial health in its activities.
This study may help to pay more attention on improving
major banking operations.

REFERENCES

[1]. Financial Management- M.Y.Khan and P.K.Jain

McGrow Hills Companies
[2]. Advanced Accountancy – S.N.Maheshwari
[3]. A study on overall financial performance of
Kozihinjampara service co-operative bank limited by
Mrs.M. Jeshi-the Research journal of social science.
[4]. www.nafscob.org

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