8/3/2019 Final Oscb

1/13

SCHOOL OF MANAGEMENT STUDIESHYDERABAD CENTRAL UNIVERSITY

SUMMER INTERNSHIP PROGRAM16

THMAY - 9

THJULY

ORISSA STATE COOPERATIVE

BANK LTD

BHUBANESWAR

8/3/2019 Final Oscb

2/13

ROLE OF NON PERFORMING ASSETS

AND CREDIT RISK MANAGEMENT

In Orissa State Cooperative Bank ltd

SUBMITTED BY-

ANURADHA SAMAL

10MBMA36

SCHOOL OF MANAGEMENT STUDIES

HYDERABAD CENTRAL UNIVERSITY

UNDER THE GUIDANCE OF

PROF-MARY JESSICA (Internal Guide)

DGM- P.K.BEHERA (External Guide)

8/3/2019 Final Oscb

3/13

HODS CERTIFICATE

This is to certify that Ms ANURADHA SAMAL, Roll No10MBMA36

of SCHOOL OF MANAGEMENT STUDIES has completed her

project titled Role of Non Performing Assets and Credit RiskManagement in special reference to Orissa State CooperativeBank Ltd in partial fulfilment for the award of MBA program

and has submitted the project report. To the best of myknowledge, this project work is original and is not any part of any

earlier work by ANURADHA SAMAL or anybody else. This report

has not been the basis for the award of any degree or diploma by

any University or any other Institution.

8/3/2019 Final Oscb

4/13

DECLARATION

I, Ms ANURADHA SAMAL student of the School

Of Management Studies, Hyderabad Central University , do hereby

declare that the project report entitled Role of Non Performing

Assets and Credit Risk ManagementA case study submitted to the

school of management studies SMS as a partial fulfilment of the

requirement for awarding of master of business administration

degree is my own work and it has not been submitted to any other

university or institution , nor published anywhere else earlier.

Anuradha Samal10MAMB36,SMS,HCU

8/3/2019 Final Oscb

5/13

ACKNOWLEDGEMENT

I like this opportunity to thank Dr. Chetan Srivastava , Placementcoordinator of SMS , HCU for having granted me the permission

and providing me the support and motivation during the tenure of

my MBA degree course and project work . My sincere thanks to my

teacher and internal guide Mrs MaryJessica , Faculty member MBA,SMS, HCU for her valuable support guidance and cooperation in

making this project work a highly useful and knowledge based

experience .I wish to extend my deep sense of gratitude to Mr P.K

Behera, DGM of OSCB Ltd for granting permission to undergo this

project. My sincere and profound thanks to Mr P.K.Behera for his

valuable support, guidance and cooperation during this course of my

project work.

Anuradha Samal10MBMA36 SMS, HCU.

8/3/2019 Final Oscb

6/13

DEPOSIT MOBILISATION1.

DepositsDuring the year 2009-10, the Bank succeeded in increasing its

deposit portfolio to Rs 3385.00 crore as against Rs 2310.22

crore at the end of the year 2008-09 registering a growth rate

of 46.52% on the face of stiff competition from Commercial

counterparts . i\It has computerised its operation including

ATM and provided anywhere and anytime banking facility to

provide customer services.

DEPOSIT PACS/CCBs/OSCBYear PACS CCB OSCB

Total

Deposit

% of

growth

Total

Deposit

%of

growth

Total

Deposit

% of

growth

8/3/2019 Final Oscb

7/13

during

the year

during

the year

during

the year

1999-

00

238.97 42 951.33 24 560.06 34

2000-

01

321.58 30 1188.96 25 731.27 31

2001-

02

425.47 10 1406.85 18 874.82 20

2002-

03

432.75 2 1569.25 13 886.12 1

2003-

04

446.82 3 1761.25 12 1026.01 16

2004-

05

494.85 11 1853.48 5 1078.32 5

2005-

06

516.33 4 1955.75 6 1213.16 12

2006-

07

557.07 8 2126.8 9 1295.86 7

2007-

08

614.66 10.34 2437.00 13.93 1566.27 20.86

2008-

09

733.03 19.25 2949.51 21.03 2310.22 47.51

2009-

10

922.71 25.88 3693.93 25.24 3385 46.52

DEPOSIT POSITION OF OSCB FOR LAST 3 YEARS (in crores)

8/3/2019 Final Oscb

8/13

Year Total Deposit Amount of

increase over

previous year

% of growth

2007-08 1566.26 270.40 20.86%

2008-09 2310.22 743.95 47.51%

2009-10 3385.00 1074.78 46.52%

SOURCES OF DEPOSIT OF OSC BANK FROM 2007-08TO 2009-10(in crores)

SOURCE 2007-08 2008-09 2009-10

Amount % of

deposit

Amount % of

deposit

Amount % of

deposit

CCB 823.69 53% 1528.91 66% 2378.28 70.26%

Other

Coop

220.20 14% 292.48 13% 373.19 11.02%

Individual 522.37 33% 488.82 21% 633.32 18.72Total 1566.26 100% 2310.22 100% 3385.00 100%

Market share of cooperative banks/commercial banks in depositmobilisation (in crores)

8/3/2019 Final Oscb

9/13

Year Commercial banks Coop. Banks Total Deposit Share of Coop Bank Share of Comm

1995-96 6190.69 370.09 6560.78 6% 94%

1996-97 7412.62 500.24 7912.86 6% 94%

1997-98 8979.5 617.95 9597.45 6% 94%

1998-99 9314.85 710.63 10025.48 7% 93%

1999-00 12653.12 945.05 13598.17 7% 93%

2000-01 14818.66 1180.95 15999.61 7% 93%

2001-02 18689.18 1423.73 20112.91 7% 93%

2002-03 20347.87 1569.25 21917.12 7% 93%

2003-04 23359.86 1761.25 25121.11 7% 93%

2004-05 27372.64 1863.49 29226.13 6% 94%

2005-06 31966.97 1877.95 33844.92 5.50% 94.50%

2006-07 41037.16 2126.8 43163.96 4.90% 95.10%

2007-08 52272.25 2422.06 54694.31 4.60% 95.40%

2008-09 67766.26 2914.3 70680.56 4.13% 95.87%

2009-10 74495.75 3652.62 78148.37 4.67% 95.33%

BORROWINGSIn order to meet the resorces gap between the demand and its

own resources , the bank continued to borrow from

RBI/NABARD/NCDC and State Government .During the year

2009-10,the bank borrowed Rs 500.00 crores from NCDC for

the purpose of meeting higher credit needs under Agricultural

sector.The total borrowing outstanding from all sources

amounted to Rs 2235.86 crore as on 31st March,2010 as

against Rs 1722.73 crore as on the corresponding date of the

previous year . The borrowings formed 36% of the working

capital on 31.03.2009.

BorrowingsYear Total amount

borrowed

Increased rate

over previous

Growth rate

8/3/2019 Final Oscb

10/13

year

2005-06 95434.17 26282.99 38%

2006-07 125141.37 29707.20 24%

2007-08 166593.25 41451.88 33%

2008-09 172273.10 5679.85 3%

2009-10 223586.54 51313.44 30%

Sector wise Borrowings from NABARD .RBI,State Governmentand NCDC during last three yearsParticulars

(borrowings from

NABARD)

2007-08 2008-09 2009-10

ST SAOShort Term(SAO) 63313.72 80517.04 100360.00

Short Term(OPP) 1422.01 1967.96 2140.00

ST/DTP 15068.65 13975.00 22500.00

Total ST(SAO) 79804.38 96460.00 125000.00ST HandloomCCB for Mktg and

production of cloth

582.62 582.62

Demand loan from

NABARD

8393.69 3500.00

Total ST Borrowingfrom NABARD

88780.69 100542.62 125000.00

8/3/2019 Final Oscb

11/13

MTC/RMTC 18444.27MT Farm Sector 1634.25 2160.41 2739.35

MT Non Farm 7147.92 8189.43 11875.46

LT Farm Sector 1289.01 1477.03 2493.13

LT Non Farm Sector 19204.32 24849.70 31431.52

Total NABARDBorrowing

136500.46 137219.19 173539.46

RBI Demand Loan

Loan from State Govt

including

World Bank assistance

92.79 53.91 47.08

Loan from

NCDC/SIDBI/Other inst

30000.00 35000.00 50000.00

Grand

Total

166593.25 172273.10 223586.54

Short Term Borrowings:NABARD continued to be the main refinancing agency of the

bank during the year 2009-10 and the total borrowing

outstanding from them under Short Term stood at Rs 1250.00crore constituting 72% of total borrowings of Rs 1735.39 crore

from NABARD for various purposes.

NABARD Sanctioned ST(SAO) credit limit of Rs 125000.00 lakh

in favour of all 17 Central Cooperative Banks for the year

2009-10 for financing crop loan.

8/3/2019 Final Oscb

12/13

All the dues were cleared off in that year .

INVESTMENT AND FUNDS MANAGEMENTInvestmentsComparative position of bank during last three years

Type of

investment

2007-08 2008-09 2009-10

Investment in

Central/ State

Government

securities

53690.13 60351.84 91505.29

Other Trustee

Securities

2684.00 2304.00 1204.00

Shares in Coop

instution

13.20 13.10 13.10

Other

investment

86846.68 166461.42 236643.42

Total 143234.01 229130.3 329365.82

Total interestyield on

investment

during the year

6224.06 13689.51 18251.23

Comparative Growth Rate of Investments

8/3/2019 Final Oscb

13/13

Year Amount Growth over

previous year

Growth rate

2005-06 71145.28 2950.17 4.33%

2006-07 78598.88 7453.60 10.47%

2007-08 143234.01 64635.13 82.23%

2008-09 229130.36 85896.35 59.97%

2009-10 329365.82 100235.46 43.75%