Académique Documents
Professionnel Documents
Culture Documents
STUDY
On
TREASURY MANGEMENT CELL
IN ORISSA STATE
COPERATIVE BANK
1
ARYA School of
Management & IT
BHUBANESWAR
Declaration
I hereby certify that the work which is being presented in the project
entitled, “Treasury Management Cell” in partial
Fulfillment of the requirements for the award degree of Bachelor of
Business Administration Arya School of Management & IT
(Affiliated to Utkal University) Bhubaneswar, is an authentic record
of my own work .
The matter presented in this Project Report has not been submitted
by me for the award of any other degree of this or any other
University.
Debasish Das
BBA V SEM
2
Acknowledgement
Success of every project depends largely on the SELF &
encouragement and guidance of many others. I take this opportunity
to express my gratitude to the people who have been instrumental in
the successful completion of this study project.
First of fall I would like to thank the Management at OSCB for giving
me the opportunity to do my two-month project training in their
esteemed organization.
Internal Guide) for providing me with valuable advice and endless
supply of new ideas and support for this project.
Debasish Das
BBA V SEM
3
TABLE OF CONTENTS
• PREFACE
• SUGGESTION
• CONCLUSION
• BIBLOGRAPHY
4
PREFACE
BBA program is one of the most reputed professional courses in the field of
Management. There is a study project as an integral part of BBA in the Fifth
Semester. As a complementary to that every one has to submit a report on the
work conducted in the industry.
This report is thus prepared for the study project done at Orissa
State Coperative Bank (O.S.C.B). The topic of the project is, “TREASURY
MANAGEMENT CELL”. The organization shall make all possible efforts to
have a secure and safe domain. The data/information is very important and
most critical to the business requirements; therefore proper measures should
be adopted so that the information is well secured and protected.
Debasish Das
BBA V Sem
5
CHAPTER-I
INTRODUCTION, OBJECTIVE,
RESEARCH METHODOLOGY &
LIMITATION
6
INTRODUCTION
7
OBJECTIVE OF THE STUDY
My objective also was to gain a thorough insight into the real banking
scenario after the financial sectors reforms.
METHODOLOGY
My sources of data used in this project are both primary and secondary.
Complete detailed analysis has been made from the year of set of
Treasury Management Cell (TMC) in Orissa Cooperative Bank,
Bhubaneswar till 2009-10. Thorough study of the functioning of the TMC
has been made before the preparation of the project. The sources of the
primary data has been collected from the annual report and the
investment policy of the bank and the internet.
LIMITATION
The main limitation of the project is that some times up to date data is
not available.
8
CHAPTER-II
ORISSA STATE CO-OPERATIVE BANK
OVERVIEW
NABARD
9
The Orissa State Co-operative Bank Ltd. was registered under the
Bihar & Orissa Co-operative Societies act of 1935 as Orissa
Provisional Cooperative Bank with its head Office at Cuttack Later the
bank was shifted to the State capital, Bhubaneswar and has been
functioning there in ever since .OSCB has its branches at Paradeep,
Cuttack, Sambalpur. Berhampur, Angul, Rourkela along with
Bhubaneswar. It also supports 17 central Cooperative banks, Which in
turn support more than 400 primary Co-operative societies. The
Orissa State Co-operative Bank Ltd is at the top of the Cooperative
banking structure. OSCB is organized with the objective of attracting
deposits from public. It also derives its funds from its share capital. It
obtains loans from NABARD and RBI to finance to the peers down to
the District Central Co-op Bank. The bank is also imparting training
facilities on various subjects. As regard to co-operative principles &
activities among the employees of the different type of co- operative
organizations through it’s- Agricultural Cooperative Staff Training
Institute (ACSTI) functioning in it’s premise.
10
1. Short term Co-operative credit structure
4. Commercial bank
5. NABARD
FUNCTIONS OF OSCB
MISSION OF OSCB
ROLE OF OSCB
11
The Orissa State co-operative bank as the apex label institution Of the
short-term co-operative credit delivery systems in the state is playing
measure role strengthening DCCB/PACs for the socio-economic
upliftment of the state.
With an intention to bring about competitive sprit among field staff, OSCB
has taken the following steps.
12
ROLE TOWARD INSPECTION AND SUPERVISION
OPERATIVE
13
attaching deposits from the richer urban class. It is known as the apex
bank and it forms the apex or top of the Cooperative structure in a state.
The State Cooperative Bank derives its fund from its share capital and
deposits. It receives current and fixed deposits from its member as well
as the general public, local boards, Municipalities etc. it also obtains
loans at call and short notice from the Commercial Banks. It also obtains
seasonal agricultural operations. A certain portion of the working capital
is contributed by the state Govt.
Through control from RBI the SCB Banks enjoy the facility of the
deposit Insurance.
The Orissa State Co-operative Bank, a scheduled bank under RBI Act
was registered in the year 1948 as the Apex Bank of the short term coop.
Credit structure of Orissa with an objective of development of the again
ill economy of Orissa by catching the credit equipment of the terms of the
state. The OSCB, in its own way has contributed in providing farm credit
14
and inputs to bring the desired change over the years. The Bank has
been trying to develop the primary societies vis. PACS which constitutes
of schemes as LAMPS (Large scale agricultural multipurpose society I
FAS (Farms service society).
In the state 88% of the population lives in the rural areas and where 73%
of the total work force is engaged in agricultural and allied activities, the
OSCB plays a pivotal role in the pursuing 72% of the agricultural Credit
in the state.
The Bank has assumed the role of leader of the Coop. Credit structure to
develop the lower tiers to cope with the emerging challenges of Banking
Activities.
•Production Credit.
15
GENERAL BANKING BUSINESS OF OSCB
The Bank has been accepting deposits from the public and offering all
Banking facilities to its customers through its fully computerized
branches and extension counters at Bhubaneswar, Cuttack, Paradeep
and Sambalpur. The banking services offered by the include acceptance
of all types of deposits ,bills and exchanges, issue of letter of credit,
advancing loans to farm and non-farm sector.
The OSCB came into existence to support the lending activities of its
affiliated DCCBs. The Bank provides refinance to them to peruse the
following activities
The OSCB has facilitated the DCCBs for diversifying into financing of
non-farm sectors. The DDCB have been dispensing non-farm credit to
small-scale industries in shape of book capital and working capitals loans
are also advanced for trading activities, purchase of commercial
vehicles, housing etc, with refinancing support from the OSCB.
16
The bank is financing housing loan under its “APAN GHAR” scheme.
Maximum amount under this head is Rs.5,00,000.- for purchase of ready
made house or construction for repair, renovation or addition/alternation
the limit is Rs. 50,000/-. The rate of interest is 13% on reducing balance.
Maximum repayment period is 15 years with 18 months moratorium
period.
CONSUMER DURABLE:
The Bank also finance mega project like, Orissa Textile Mills, Kalinga
Hospital, Bhubaneswar Commercial Corporation, Simala Trading
Corporation ,Nilachal Ispat Nigam ,Sugar Industries like Shakti Sugars
etc.
Many of the big projects are doing good business and some are not. So it
increases the NPA of the Sank. For financing big project the bank
requires good project appraisal technique, and expertise. For making
credit available to the rural economy of Orissa, the apex bank has to
improve its performance.
Gross cropped Area (in thousand hectres)= 96.68 in the year’ 1995-96.
Irrigation Potential Created (Khariff and Rabi) thousand hectares in
32.58 in the year 95,98. Total area under forest (in thousand hectares) is
57 22.
Length of coast line is 482 kms. Main crops that are cultivated are paddy,
oil seeds ,jute,sugarcane,tobacco,Macca,wheat etc.
INFORMATION TECHNOLOGY:
The Bank has continued its endeavor to cope with the changed
customers expectation by automating its outlets. In addition to having the
distinction of the first computerized State Co-operative Bank in the
18
country, it has installed ATMs to provide any time banking. Seven days
banking in select branches and extended banking hours till 8,30PM in
some outlets has helped the Bank in retaining customers and attracting
new owners. The phenomenal growth of 31% in deposit mobilization is
the resultant outcome of these initiatives. We are contemplating to
connect all the retail outlets in near feature to provide any where
banking.
19
endeavor to extend the benefits of the scheme to large number of farmer
members. The cumulative issue’ of cards has crossed the mark of 8
Iakhs and reached the level of 8,73,213 as on 31.3.2001 as on 31.3.2000
your bank facilitated organization of KCC holders meets at grass root
level to have direct Interfact with them to sort out theirs difficulties in
getting all the benefits of the scheme. As a result of continuous
monitoring of the scheme, the per capita credit off take has increased
from Rs 6305/-during 1999-2000 to RS.6850/during 2000-2001. No
doubt, it is fact that Iending procedures for dispensation of seasonal
agricultural credit has been streamlined and the farmer members have
got instant access to farm credit at the time of their need through the
kisan credit cards, we are yet to cover a large chunk of the membership
in this scheme was only 28 percent of the total membership, We should
continue our efforts to popularize the scheme and convince farmer
members to got the facilities in built in the scheme.
During the year under report, the around work was done to lunch the
unique and innovative Kalinga Kisan Gold Card scheme to recognize and
reward the good repayment habits of the farmer members. After its
lunching on 2G.4 2001, the scheme has elicited tremendous response
not only from the farming community but also floral the Union
Government, Reserve Bank of India and NABARD , With the package, of
facilities provided in the scheme, it will surely bring about a turn around
recovery climate of the state to improve the financial condition of the
DDCBs and PACS. We all should work together to popularize the
scheme by widely propagating its benefits.
20
CHAPTER-III
TREASURY MANAGEMENT – A
CONCEPTUAL FRAMEWORK
21
Treasury management is the management of an organization’s liquidity
to ensure that the right amount of cash resources are available in the
right place in right currency & at the right time in such a way to
maximize the return on surplus funds, minimize the financing cost of
business. & control interest rate risk & currency exposure to an
acceptable level.
ROLE OF CFO
23
routine aspects of Finance and accounting. The Function of the CFO is
broadly categorised as that of the CFO is broadly categorized as that of
a controller and treasurer.
FUNCTION OF A CONTROLLER
As the treasurer deals with the Iiquid assets, the controller of the
organization has to record the transaction of the liquid assets. It is the
combined & effective working of the Dept. that gives rise to an effective
system of internal control. Some of the important function of controller
are
1.Record all transactions in general ledger, the AlCs receivables & the
AlCs payable sub ledger transactions with respect to fixed assets such
as depreciation. inventory control etc.
FUNCTIONS OF A TREASURER
The treasury in the finance dept. deals with liquid assets, since the
treasurer in the head of the treasury, he has a major responsibility of
being a custodian 0 cash & other liquid asset. The functions of the
treasurer are
A. FUNDING
24
must take various matters into .consideration like debt structure of the
organization. structure of the debt portfolio & advantage & shortcoming
of short term & long term financing etc.
Individual Investors
Institutional Investors
Professional Fund Managers
Foreign Investor
E. SHORT-TERM INVESTMENT:
25
F. RISK (HEDGING) AND FORE X MANAGEMENT
26
At the core of above function h. has to make two key decisions
FINANCING DECISSION
At What cost: All funds have a cost associated with them. The average
cost’ of all the funds mobilized should be kept as low as possible.
INVESTMENT DECISSION
1. Long-term assets
2. Short-term or current assets
27
The financial markets that are present to day have come a long way from
the information markets that have existed earlier. According to the
changing & increasing needs’ of the lender & borrower the financial
markets have also developed. These markets have witnessed
remarkable changes in the nature of transactions. the type of
participants. the magnitude of operations & various sub-markets have
developed. The main segment is dominated mostly organized financial
markets are as follows:
MONEY MARKET:
The money market is a wholesale debt market for low-risk. Highly liquid.
short-term instruments. Funds are available in this market for periods
ranging for a single day up to a year. This market is dominated mostly by
government, banks & financial institutions.
CAPITAL MARKET:
The capital market capital market it; aimed at financial the long term
investment. The transactions taking place in this market will be for
periods over a year.
FOREX MARKET:
The forex market deals with the multicurrency requirement which are met
by the exchange of currencies. Depending on the exchange rate that is
applicable. the transfer of funds takes place in this market. This is one of
the most developed & integrated market across the globe.
CREDIT MARKET:
Credit market is a place where banks, FIS & NBFCs purvey short-
medium & long-term loans to corporate & individuals.
29
secondary markets complement each other, The primary & secondary
markets are so closely interlinked that the level & the nature of
operations taking place in one market affect the other. For instance, if
the price of a security issued by a particular co. is high in the secondary
market, its impact will be left on the primary issued of that co.
By nature, the transactions that take place In the money market are to of
high volumes, involving large amounts. Due to this, the market is
dominated by a relatively small number of large players. Given below is
the list of intermediaries participating in the money market.
• Government
• Central Bank
• Banks
• Corporates
• Financial Institutions
• Other Institutional Bodies-MFs, FIIs. etc.
• Discount Houses & Acceptance Houses
• Market Makers (Primary Dealers & Satellite Dealers, etc.)
Though there are a few type of players, the role & the level of
participation by each type of player in the money market differs greatly.
Further the institutional nature of operators indicates that the money
market is a wholesale market. Govt. is an active money market player, &
30
Utmost economies, It constitutes the biggest borrower of this market.
The need for the Govt. to borrow funds arises mainly when the budgeted
expenditure goes beyond the budgeted revenue. To adjust this budget &
deficit, the Govt. generally issues securities in the money market &
raises. funds. Apart from this regular deficit adjustment which the Govt.
tries to tackle, there could still be cel1aln short-term adjustments which it
would be making. For instance, consider the advance tax receipts of the
Govt. In anticipation of these cash inflows, it incurs expenses thus
creating a deficit. This deficit will later be adjusted with the advance tax
receipts. Further Govt. also issues other securities of varying maturities
to adjust its deficit borrowing.
31
statutory reserve requirements, they can raise the same from the
money market since it is a short-term deficit.
Some times, it so happens that the banks receive certain attractive loan
proposals but do not have the fund for Immediate disposal. In such cases
also, banks will tap the money market to make temporary adjustment of
fund for the loan. Further, banks also lend their short-term surplus funds
into the money market rather than keeping them idle. The collective
operations of the banks on a day-to-day basis are particularly
predominant & hence have a major impact on the interest rate structure.
& the money position.
With a brief overview of the need for or the money market and the major
players operating in it. the next aspect that needs to be highlighted upon
is the means of the raising funds from the money market just as any
other financial market, money market also involves transfer of funds in
exchange of financial assets. And due to the nature of the money
market, the instruments used in it represent short term claims.
With short term liquidity being the main purpose of the money market,
various instruments have developed to suit these 81mrt term
requirements. For instance the requirement of funds by banks to meet
their statutory reserve will vary from one day to a fortnight. similarly,
corporates may require funds for their working capital purpose for any
period up to a year. Given below is a broad classification of the money
market instruments depending upon the type of issuer and the
requirements they meet.
•Certificate of Deposits
•Participation Certificates
Private Sector Securities:
•Commercial Paper
Except fort their debt nature, these securities listed above differ from
each other in their characteristics elating to maturity, issuer, type of the
investor, the risk-return profile, liquidity ,marketability, negotiability,.
transferability, etc. money market instrument however, do not include
33
any equities. Given below is a brief discussion of value is money market
instruments.
Government Securities:
As mentioned earlier, all funds raise by the government from the money
market are through the issue of ‘securities by the RBI. Thus, T-Bills and
Government dated securities are all issued by the RBI on behalf of the
government. Being risk-free securities, they set the benchmark for the
interest rates of the other money market instruments. Through these two
categories of securities are issued by the government, they serve
different purposes while meeting the government’s fund requirement.
Treasury Bill:
The banking system has a very vital and active role in the money
market. The transaction taking place in these securities are large in size,
both bin terms of the volumes traded and the involved in the
transactions. The short-term requirements of banks very from a single
day up to a year for meeting the reserve requirements and credit
accommodation purposes. based on this requirement, various
instruments/markets with differing maturities have developed.
Term Money:
Commercial Papers (CPS): CPs are promissory notes with fixed maturity,
issued by highly rated corporate. This source of short-term finance is
lisped by corporates as an alternative to the bank finance for working
capital.corporatl3s prefer to raise funds through this route when the
Interest than rate at which funds can be issued through this route when
the interest than the rate at which funds can be raised through CP.The
maturity period ranges from 15 days to 1 year.
36
documents attached, these bill of exchange are classified into different
types. The period for which these bill are drawn generally ranges
between 1-6 months.
37
them and helps in the remittance of money from one place to another. In
fact a modern bank performs such a variety of functions that is difficult to
give a precise a general definition to it. Banking is just like business. A
prudent banker acts like an intelligent businessmen whose also aim and
objective is profit maximization. The bank has to solve the problem of
portfolio management i.e. It has to manage its assets and liabilities in
such away that profits are secured without loosing liquidity and solvency.
Held to maturity:
The TMC will earmark the securities required for the purpose of
maintenance of SLR as per the approval of the managing committee from
time to time based on the NDTL position of the bank. The security under
this are considered to be permanent category of investment.
38
The TMC shall classify the securities under this category which are
available for trading in the market through brokers.
Marked to market:
These are of the category which are available of the trading .The
securities under this head shall be considered as current category of
investment.
In trading with the securities in the market,the banks make dual income.
• Fixed interest
The banks able to earn profit due to the market rate movements. The
past data on market rates of investments are depicted in an yield curve.
Yield curve is nothing but the graphical represents of yields of a security
across a time span.
39
CHAPTER-IV
40
TREASURY OPERATION IN OSCB
2.He shall make periodical review of the investment position both inside
& outside the CSGL A/C & shall apprise the same to Managing Director.
3.he shall sign all the Deal settlement sheets arising out of Treasury
management.
4.At the day end, he shall place all the settled during the day before the
Managing Director for his proposal & approval.
41
DEALER
1.He shall place before the Chief Dealer daily founds position of the
Bank with reference to maintenance of sir & indicate the NDTL position
of funds at the opening of the day.
4.He shall obtain deal settlement sheets from the SGL A/C holders on
the same day & ensure maintenance of up to date A/Cs the CSGL A/C.
5.He shall place the statement of CSGL AIC holder before the Chief
Dealer for review & reconciliation on a fortnightly basis.
6.For deployment of daily cash surplus, he shall contact the SGL AIC
holder to ascertain daily call money market rate & shall remit the
available surplus cash in consultation with Chief Dealer For investment in
call money market.
7.ln case of requirement of funds. he shall also contact the SGL AIC
holders for borrowing from call money market in consultation with the
Chief Dealer & borrow maintaining all formalities.
42
9.He shall be held responsible for collection of proceeds of securities,
Treasury Bill etc. on the due dates.
12. He shall attend to all other duties as may be. assigned by the Chief
Dealer from time to time.
SUB-DEALER
2.ln absence of the Dealer, he shall exercise the powers of the dealer
subject to control under Chief Dealer. 3. HE shall attend other duties
relating to TMC as may be assigned by the Dealer & Chief Dealer.
INVESTMENT COMMITTEE
1.Managing Director-Member
43
The Chief Dealer shall produce all the relevant record & an analytical
note on the functioning of the preceding month before the investment
committee before 11 A.M. of the said date.
TYPE OF INVESTMENTS
TRADABLE SECURITIES
1. Govt. of India Dated Securities.
2. State Govt. Securities.
3. Govt. of India Treasury Bill
5. Certificate of deposits(CDs).
NON-TRADABLE SECURITIES
44
CLASSIFICATION OF INVESTMENT PORTFOLIO
The TMC shall classify the investment portfolio as under
1.HELD TO MATURITY
The TMC shall classify the investment under this category & earmark
the securities required for the purpose of maintenance of SLR as per the
approval of the managing committee from time to time based on the
NDTL position of the bank this portfolio shall be reviewed by the
investment committee every month. The security classified under this
headstall be considered as permanent category of investment.
2.MARKED TO MARKET
The TMC shall classify the securities under this category beyond
the SLR requirement of bank which will be available general for trading.
However, keeping in view the “Held to Maturity Category” duly approved
by the managing committee of the bank. The securities classified under
this head shall be considered as current category of investment.
3.AVAILABLE FOR SALE
The TMC shall classify these securities under this category beyond the
“Held to maturity & marked to market” category which will be available for
trading in the market the market through the Broker(s). .
QUALITY CONSIDERATIONS
The TMC shall take prudent decisions on the market trend available
through Reuter Business Watch or other sources which shall be
documented. The quality of the investment shall be decide on the basis
of the basis of analysis of the market situation & information received
from different Brokers & Bankers. The relevant, data shall be
downloaded from the Reuter Business Watch & all the records pertaining
to the trading decisions & investment committee shall record transactions
for review.
45
OPERATIONS IN THE TREASURY MANAGEMENT CELL
For entering into a deal for purchase or sale of a security, the dealer
contacts over telephone different banks and primary dealers who are
active in the money market and obtains quotes from them which is then
verified from the Reauter business terminal installed in the bank. Deal is
executed with the bank or Primary dealer who offers the best rate and
deal slip is prepared accordingly and sent by FAX to the counter party
and a copy of the same is also send to the CGSL account holding
bank ,Le., ICICI Bank for entering the deal in the National dealing
system(NDS).The counter party then sends a deal confirmation slip to
acknowledge the deal. After the Deal slip is sent, the current account is
debited or credited at the IGIGI Bank depending on the nature of the
deal.
FUND MANAGEMENT
OPERATIONAL GUIDELINES
1.. On the basis of available market, the dealer shall enter the deal for
purchase of securities up to Rs. 5.00 corers & place before the Chief
Dealer for approval.
46
2.The Chief Dealer shall enter into any deal in excess of RS.5.00 Crores
but below Rs. 25.00 Crores per day.
3. Any deal of Rs. 25.00 Crores & above shall be entered into with the
prior approval of the Managing Director. .
47
THE ORISSA STATE COOPERATIVE BANK LTD.
(Scheduled Bank)
PANDIT JAWAHARLAL NEHRU MARG,
BHUBANE4SWAR - 751 001
TO
48
We hereby confirm our outright purchase of GOI securities on the terms
detailed below :
1. Party ABC BANK LTD.
2. Security 7.37% GOI 2014
3. Coupon rate 7.37%
4. Maturity date 16/04/2014
5. Interest payment data 16/04, 16/10
6. Deal date 22/08/2005
7. Settlement date 23/08/2005
8. Face value 5,00,00,000.00
9. Price % 102.15
10. Amount payable Rs.5,10,75,000.00
11. Accrued interest (127 days) Rs.12,99,836.11
12. Total settlement amount payable Rs.52274836.11
13. Settlement mode
14. Our current A/c No.2 with ICICI Bank NDS deal through
Bhubaneswar to be debited on collection CSGL A/c with
of Rs.250.00 as fees along with clearing ICICI Bank, Mumbai
corporation charges
15. PAN number
16. Broker AAAA00069N
Direct deal
49
SOURCES AND USES OF FUND
Funds comprising paid up capital and Reserve, Deposits and borrowings
are the main resources of the Bank. A major chunk of these resources
are deployed in loans and advances to the affiliated CCBS, member
societies and individuals for different purposes under farm and non-farm
sectors. The statutory investment requirement under BR Act and RBI Act
are met by, investment in Central/State Government Securities and other
approved Trustee Securities and maintaining in current account with RBI
respectively. Seasonal invisible surpluses are deployed in call money
market to maximize the yield on assets. Besides remaining vigilant over
judicious deployment of funds, the bank has been making concerted
efforts to bring down the level of non-earning assets of the bank to
increase the financial margin.
A detailed account of the sources and uses of funds for the last three
years is presented in the following table.
Sources : Rs. In lakhs
Sl.No. Particulars 2007-08 2008-09 2009-10
1. Share capitals 4958.32 5168.62 6437.98
2. Reserve Fund 13917.91 16749.31 18492.47
3. Own Fund 18876.23 21917.93 24930.45
4. Deposits 102601.38 107850.94 121315.98
5. Borrowings 75573.56 69151.18 95434.17
6. Other Liabilities 15997.65 15718.68 22081.38
Total 213048.83 214638.73 263761.98
Sources of Funds
50
From the details stated above, it may be observe that total
resources mobilized, by the bank during the year 2009-10 amounted to
Rs.2637.61 crores as against Rs.2146.39 crores during the year 2007-
08. The proportion of contribution from the various sources is analyzed
over reaf.
Share Capital
51
The members and break-up of share holding is as under Reserves
Since inception, the Bank has not only achieved the bank even
never but also attained sustainable viability. As a result, the Bank
continued to buried up its Reserve of Funds as per the provision of the
bye-laws. The total reserves at the end of 2009-10 stood at Rs.18492.47
lakhs as against Rs.16749.31 lakhs in 2007-08
Rs.in lakhs
52
Deposits
53
3.37 Current deposits
3.4
Saving bank
deposits
Term deposits
93.23
From the foregoing tables it would be seen that in 2007-08, the demand
deposits formed 6.77% and the time deposit i.e. from deposits formed
93.33% of the total deposit. The bank is making concerted efforts to raise
the row cost deposits by opening more branches, extenuation counts and
improving customer services. Total branch automation (TBA) and
installation of ATM for providing any time and anywhere banking have
helped the bank in a big way to current deposit resources.
54
38
CCB
Other coop
51
Individual
11
55
Borrowings
In order to meet the demand of credit at grass roots revere, the Bank
continued to borrow from RBI, NABARD and State govt. The total
borrowing and outstanding from are sources amount to Rs.95434.17
lakhs as on 31 st March 2010 as against Rs.69151.18 lakhs as on the
corresponding date of the previous year. The borrowings formed 36% of
the working capital on 31.03.2010 against 325 on 31.03.2009
Total borrowings from different sources raised by the Bank during last 3
years wrong with growth rate over previous year are given below.
2008-09 69151.18 - -
56
MT Non Farm 6253.96 3930.00 8072.79
LT farm sector 2339.93 120.92 3503.79
LT Nonfarm sector 4558.88 4097.75 6026.99
TOTAL NABARD Borrowing 75120.17 66771.81 90664.52
RBI Demand Loan 500.00 1200.00
Loan from state Govt. including 376.53 426.73 531.34
World Bank Assistance
Loan from NCDC/ SIDBI/Other 76.86 1512.64 3038.31
Inst.
Grand Total 75573.56 69151.18 95434.17
57
Rs. In lakhs
For financing the Weavers’ Coop. Societies for production and marketing
of handloom fabrics, NABARD sanctioned a credit limit of Rs.1960.49
lakh on behalf of 8 CCBs.
Against the limit, Rs.3559.56 lakh was availed and Rs.1915.09 lakh was
repaid during the year, leaving a balance of Rs.3559.56 as on
31.03.2010.
59
Borrowings from other institution
Other liabilities
USES OF FUNDS
60
The Bank had maintained cash and bank borrowing of Rs.7497.30
lakhs to meet the statuary requirements and other business returned
activities with RBI and other nationalized bank.
2007 – 08 1347.51
2008 – 09 1744.43
2009 – 10 1969.39
61
CHAPTER-V
62
• The treasury management cell of the Orissa State Co-op Bank has
done exceedingly well in the context of profitability of the bank. It is
evident from the fact sheet of net profit the bank earned during the
year of assessment that only because of the TMC, the Bank could
earn net profit. The turn over of securities traded in the treasury cell is
quite praise worthy. Despite the fact that the prevailing situation in the
money market in the country was not so lucrative the bank has
earned trading profit, which is comparable to any new generation and
PSU banks.
• The bank has also never failed to comply the CRR requirements as
stipulated by Reserve Bank of India. This also indicates the effective
and prudent cash management of the bank, which forms one of the
most important functions of the treasury management cell.
• The Orissa state co-operative bank is one of the first bank in apex
Co-op Banks to constitute a treasury management cell to maximize
the income from deployable resources.
• The bank has been able to adhere to the stipulations laid down in the
investment policy of the bank. The exposure limits for different
investment portfolios are as follows.
63
1. Yield to maturity- for long term holding in HTM Category
IDRF
Time was really short but still I had an enriching experiences during the
course of my project. The summer project gave me great insight on the
competitive market and the measure market players in the banking
sector. The project provided me with much of practical knowledge that
will definitely help me when I will commence my service career.
64
SUGGESTIONS
.
Several suggestions can be given for the benefit of OSCB.
The OSCB is the chief source of finance to the DCCBs and PACS.
It has been observed that finances to some DCCBs and PACs have not
been sufficient. OSCB should look into this matter and rectify the same.
Despite the main role played by OSCB in financing agriculture in
Orissa, Many people still rely heavily on commercial banks, because they
are not aware of the banking facilities of OSCB s DCCBs. The OSCB,
thus, should advertise for itself to make itself familiar with the rural
masses
Last but not the least OSCB should justify its base line ‘we build
relationships’ it should truly, in practice, build relationships with the
public and take the banking services to their door step.
65
CONCLUSION
66
BIBLIOGRAPHY
Books Consulted
Treasury Management – ICFI
RBI Bulletin
S.V. Vasudevan, Theory of Bank, Marhotra, Rural Banking.
Financial Management by Khan & Jain.
OSCB Monthly journal
Websites Visited
www.treasurymanagement.com
www.oscb.coop
www.rbi.org
67