A STUDY ON FINANCIAL PERFORMANCE APPRAISAL WITH

REFFERENCE TO INDIAN BANK., ARIYALUR.

A PROJECT
Submitted by

P.SATHISH KUMAR
REG.NO: 312614631013

In partial fulfillment of the requirements

For the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

THANGAVELU ENGINEERING COLLEGE

DEPARTMENT OF MANAGEMENT STUDIES
ANNA UNIVERSITY, CHENNAI
June, 2016.
 ACKNOWLEDGEMENT
It is by unfathomable grace and blessings of the Lord Almighty that we have been able to bring
out this humble piece of work.

If words are considered as symbol of approval and tokens of acknowledgement then following
words play the heralding role of expressing my gratitude

I express our sincere thanks and gratitude to our Chairman K.V. THANGKABALUand also
thanks to our college ChairpersonMrs.T.JAYANTHI THANGKABALU, THANGAVELU
ENGINEERING COLLEGE, for their constant encouragement throughout the project.

I would like to convey my special thanks to Dr.M.SELVAM, Principal, for his valuable support
to make my project a successful one.

I owe my gratitude to my Head of the Department Mr. KM. MURUGAPPAN, and Department
of Management studies for the special quality of kindness they showed to complete my project.

I am grateful to my guide Mr. S.KRISHNAN, HR MANAGER and members for their timely
help providing the necessary information and particulars which are valuable one to complete this
project a successful one.

I express my profound sense of gratitude and indebtedness to my guide Mrs.

M.AMUTHAMALAR, THANGAVELU ENGINEERING COLLEGE, whose guidelines propel
my interest towards the Project.

P.SATHISH KUMAR

(312614631013)
 DECLARATION

I affirm that the Project work titled “A STUDY ON FINANCIAL PERFORMANCE

APPRAISAL WITH REFFERENCE TO INDIAN BANK., ARIYALUR.” Is an original work
done by me and submitted in partial fulfillment of the award of “MASTER OF BUSINESS
ADMINISTRATION” of Anna University, Chennai.

P.SATHISH KUMAR

(312614631013)
 THANGAVELU ENGINEERING COLLEGE

BONAFIDE CERTIFICATE

This is the certify that the project work titled

_______________________________________________________________________________
_____________________________________________________is a bonafide work of
Mr./Ms._______________________________Register Number ______________________who
carried out the project work under my supervision. Certified Further, that to the best of my
knowledge the work reported herein does not form part of any other project report or dissertation
on the basis of which degree or award was conferred on an earlier occasion on his or any other
candidate.

Signature of the HOD with date Signature of the supervisor with date
Department of Management Studies Department of Management Studies
Thangavelu Engineering College Thangavelu Engineering College
Chennai – 600 097 Chennai – 600 097

Submitted for the university viva voce held atThangavelu Engineering College
on ______________.

INTERNAL EXAMINER EXTERNAL EXAMINER

 TABLE OF CONTENTS

S.NO PARTICULARS PAGE.NO

ABSTRACT I
CHAPTER – 1
1.1 INTRODUCTION 2
1.2 INDUSTRY PROFILE 3
1.3 COMPANY PROFILE 9
CHAPTER – II
2.1 REVIEW OF LITERATURE 14
CHAPTER- III
3.1 NEED FOR THE STUDY 19
3.2 SCOPE FOR THE STUDY 20
3.3 OBJECTIVE OF THE STUDY 21
3.4 RESEARCH METHODOLOGY 22
3.5 LIMITATIONS OF THE STUDY 23
CHAPTER – IV
4.1 FINANCIAL TOOLS 24
4.2 DATA ANALYSIS AND INTERPRETATION 26
CHAPTER –V
5.1 FINDINGS 48
5.2 SUGGESTIONS 49
5.3 CONCLUSION 50
APPENDIX
BIBLIOGRAPHY 51
BALANCE SHEET 52

LIST OF TABLES
TABLE NO TITLE PAGE NO
4.1 SHARE CAPITAL 27
RESERVES &SURPLUS
4.2 29
INVESTMENT
4.3 31
TREND IN TOTAL ASSETS
4.4 33
WORKING CAPITAL TURNOVER RATIO
4.5 36
TREND WORKING CAPITAL
4.6 38
CURRENT RATIO
4.7 41
RETURN ON SHAREHOLDER FUND
4.8 43
CASH POSITION RATIO
4.9 45
 LIST OF CHART

TABLE NO TITLE PAGE NO

SHARE CAPITAL 28
4.1
RESERVES &SURPLUS
4.2 30
INVESTMENT
4.3 32
TREND IN TOTAL ASSETS
4.4 34
WORKING CAPITAL TURNOVER RATIO
4.5 37
TREND WORKING CAPITAL
4.6 39
CURRENT RATIO
4.7 42
RETURN ON SHAREHOLDER FUND
4.8 44

4.9 CASH POSITION RATIO 46

 ABSTRACT

The study entitled “A STUDY ON THE FINANCIAL PERFORMANCE APPRAISAL ON

INDIAN BANK” Ariyalur is aimed to evaluate the financial performance during theperiod of 5
years. The methodology adopted was interview, observation, annual report andinternal records.The
tools are used for the analysis of financial performance analysis are RatioAnalysis,TrendAnalysis.
Analyzing financial statement helped in evaluating relationship betweencomponent parts of financial
statements to obtain a better and convenient understanding of firm’sposition and performance.
Financial performance analysis provides a method for assessing the financialstrength and weakness
of the organization with the use of financial statements. The process offinancial statement analysis
consists of the application of analytical tools and techniques fromthe measurement and relationships
which are significant and helpful for decision making.
The study not only shows the financial position of a firm but also serves asstepping stone to
remedial measures for Indian Bank. It helps to identify and givesuggestion the area of weaker
position of Indian Bank.

The study is aimed at ascertaining the behavior of stock return .Simple moving average
model is used to analyze the stock price behavior of the selected companies .Beta calculation is
used to find out the market risk in the shares .Money flow index is used to find out the money
flow with regard to buying and selling of shares . The stock exchanges are increasing their
operation throughout the country to attract a larger share of the market .

The investment will become attractive only when they are being offered a return
commensurate with risk attached to the investment .The study will be useful to various
investors ,individual it identify the behavior of stock return and timing Of purchase and sales of
stock.
 CHAPTER I

INTRODUCTION
 1.1 INTRODUCTION ABOUT THE STUDY

Financial analysis is structural and logical way to present overall financial performance of
a financial institution. It’s also help to evaluate and decision making for business operation. In
financial analysis process ratio analysis is the most dominant and logical structure to help business
related stakeholder. Under the financial ratio analysis process there are few categories to identical
area of financial institution. So business stakeholders try to concentrate to get overall business
overview from profitability, liquidity, assets management and solvency ratio analysis. These ratios
not only help to decision making process also emphasized on risk avoiding and profit raising
related factors. To calculate this ratio need to take quantitative data from bank trading activity and
other sources.

Investopedia Describe about ratio analysis as Quantitative analysis of information

contained in a company’s financial statements. Ratio analysis is based on line items in financial
statements like the balance sheet, income statement and cash flow statement; the ratios of one item
– or a combination of items - to another item or combination are then calculated. Ratio analysis is
used to evaluate various aspects of a company’s operating and financial performance such as its
efficiency, liquidity, profitability and solvency. The trend of these ratios over time is studied to
check whether they are improving or deteriorating. Ratios are also compared across different
companies in the same sector to see how they stack up, and to get an idea of comparative
valuations. Ratio analysis is a cornerstone of fundamental analysis.

This study evaluateindian bank performance for the period 2011-2016 using financial ratio
analysis (hereafter FRA). Financial ratio analysis has wide range advantage to show the bank
financial position compare to past year performance. To analyse the ratio I am take data from
indian Bank Limited annual report. That’s help me to understand the financial position of this
bank and purpose of the study. The study has been used Financial Ratio analysis (FRA) method
and for hypothesis testing Student’s T-test. The bread and butter of statistical data analysis are the
Student’s t-test. It was named after a statistician who called himself Student but whose real name
was William Gossett.Data of this study collected from secondary source in annual report of indian
bank ltd. This data research helps to evaluate the overall bank financial position. To evaluate data
make descriptive statistical analysis these contain Mean, Standard deviation, Minimum,
Maximum. From this descriptive statistics we analyse the financial performance of indian Bank.
For descriptive statistics and student’s T-test I used SPSS and MS excel program to calculate data
and find difference between two periods.

1.2 INDUSTRY PROFILE

The Banking Regulation Act of India, 1949 can be broadly classified into two major
categories, non-scheduled banks and scheduled banks. Scheduled banks comprise commercial
banks and the co-operative banks. In terms of ownership, commercial banks can be further
grouped into nationalized banks, the State Bank of India and its group banks, regional rural banks
and private sector banks (the old/ new domestic and foreign). These banks have over 67,000
branches spread across the country.

The first phase of financial reforms resulted in the nationalization of 14 major banks in
1969 and resulted in a shift from Class banking to Mass banking. This in turn resulted in a
significant growth in the geographical coverage of banks. Every bank had to earmark a minimum
percentage of their loan portfolio to sectors identified as “priority sectors”. The manufacturing
sector also grew during the 1970s in protected environs and the banking sector was a critical
source. The next wave of reforms saw the nationalization of 6 more commercial banks in 1980.
Since then the number of scheduled commercial banks increased four-fold and the number of bank
branches increased eight-fold.

After the second phase of financial sector reforms and liberalization of the sector in the
early nineties, the Public Sector Banks (PSB) s found it extremely difficult to compete with the
new private sector banks and the foreign banks. The new private sector banks first made their
appearance after the guidelines permitting them were issued in January 1993. Eight new private
sector banks are presently in operation. These banks due to their late start have access to state-of-
the-art technology, which in turn helps them to save on manpower costs and provide better
services.

During the year 2000, the State Bank Of India (SBI) and its 7 associates accounted for a 25
percent share in deposits and 28.1 percent share in credit. The 20 nationalized banks accounted for
53.2 percent of the deposits and 47.5 percent of credit during the same period. The share of
foreign banks (numbering 42), regional rural banks and other scheduled commercial banks
accounted for 5.7 percent, 3.9 percent and 12.2 percent respectively in deposits and 8.41 percent,
3.14 percent and 12.85 percent respectively in credit during the year 2000.
Current Scenario

The industry is currently in a transition phase. On the one hand, the PSBs, which are the
mainstay of the Indian Banking system are in the process of shedding their flab in terms of
excessive manpower, excessive non Performing Assets (Npas) and excessive governmental equity,
while on the other hand the private sector banks are consolidating themselves through mergers and
acquisitions.

PSBs, which currently account for more than 78 percent of total banking industry assets
are saddled with NPAs (a mind-boggling Rs 830 billion in 2000), falling revenues from traditional
sources, lack of modern technology and a massive workforce while the new private sector banks
are forging ahead and rewriting the traditional banking business model by way of their sheer
innovation and service. The PSBs are of course currently working out challenging strategies even
as 20 percent of their massive employee strength has dwindled in the wake of the successful
Voluntary Retirement Schemes (VRS) schemes.

The private players however cannot match the PSB’s great reach, great size and access to
low cost deposits. Therefore one of the means for them to combat the PSBs has been through the
merger and acquisition (M& A) route. Over the last two years, the industry has witnessed several
such instances. For instance, Hdfc Bank’s merger with Times Bank Icici Bank’s acquisition of
ITC Classic, Anagram Finance and Bank of Madura. Centurion Bank, Indusind Bank, Bank of
Punjab, Vysya Bank are said to be on the lookout. The UTI bankGlobal Trust Bank merger
however opened a pandora’s box and brought about the realization that all was not well in the
functioning of many of the private sector banks.

Private sector Banks have pioneered internet banking, phone banking, anywhere banking,
mobile banking, debit cards, Automatic Teller Machines (ATMs) and combined various other
services and integrated them into the mainstream banking arena, while the PSBs are still grappling
with disgruntled employees in the aftermath of successful VRS schemes. Also, following India’s
commitment to the W To agreement in respect of the services sector, foreign banks, including
both new and the existing ones, have been permitted to open up to 12 branches a year with effect
from 1998-99 as against the earlier stipulation of 8 branches.
 Talks of government diluting their equity from 51 percent to 33 percent in November 2000
has also opened up a new opportunity for the takeover of even the PSBs. The FDI rules being
more rationalized in Q1FY02 may also pave the way for foreign banks taking the M& A route to
acquire willing Indian partners.

Meanwhile the economic and corporate sector slowdown has led to an increasing number
of banks focusing on the retail segment. Many of them are also entering the new vistas of
Insurance. Banks with their phenomenal reach and a regular interface with the retail investor are
the best placed to enter into the insurance sector. Banks in India have been allowed to provide fee-
based insurance services without risk participation, invest in an insurance company for providing
infrastructure and services support and set up of a separate joint-venture insurance company with
risk participation.

Aggregate Performance of the Banking Industry

Aggregate deposits of scheduled commercial banks increased at a compounded annual

average growth rate (Cagr) of 17.8 percent during 1969-99, while bank credit expanded at a Cagr
of 16.3 percent per annum. Banks’ investments in government and other approved securities
recorded a Cagr of 18.8 percent per annum during the same period.

In FY01 the economic slowdown resulted in a Gross Domestic Product (GDP) growth of
only 6.0 percent as against the previous year’s 6.4 percent. The WPI Index (a measure of inflation)
increased by 7.1 percent as against 3.3 percent in FY00. Similarly, money supply (M3) grew by
around 16.2 percent as against 14.6 percent a year ago.

The growth in aggregate deposits of the scheduled commercial banks at 15.4 percent in
FY01 percent was lower than that of 19.3 percent in the previous year, while the growth in credit
by SCBs slowed down to 15.6 percent in FY01 against 23 percent a year ago.

The industrial slowdown also affected the earnings of listed banks. The net profits of 20
listed banks dropped by 34.43 percent in the quarter ended March 2001. Net profits grew by 40.75
percent in the first quarter of 2000-2001, but dropped to 4.56 percent in the fourth quarter of 2000-
2001.

On the Capital Adequacy Ratio (CAR) front while most banks managed to fulfill the
norms, it was a feat achieved with its own share of difficulties. The CAR, which at present is 9.0
percent, is likely to be hiked to 12.0 percent by the year 2004 based on the Basle Committee
recommendations. Any bank that wishes to grow its assets needs to also shore up its capital at the
same time so that its capital as a percentage of the risk-weighted assets is maintained at the
stipulated rate. While the IPO route was a much-fancied one in the early ‘90s, the current scenario
doesn’t look too attractive for bank majors.

Consequently, banks have been forced to explore other avenues to shore up their capital
base. While some are wooing foreign partners to add to the capital others are employing the M&
A route. Many are also going in for right issues at prices considerably lower than the market prices
to woo the investors.

Interest Rate Scene

The two years, post the East Asian crises in 1997-98 saw a climb in the global interest
rates. It was only in the later half of FY01 that the US Fed cut interest rates. India has however
remained more or less insulated. The past 2 years in our country was characterized by a mounting
intention of the Reserve Bank Of India (RBI) to steadily reduce interest rates resulting in a
narrowing differential between global and domestic rates.

The RBI has been affecting bank rate and CRR cuts at regular intervals to improve
liquidity and reduce rates. The only exception was in July 2000 when the RBI increased the Cash
Reserve Ratio (CRR) to stem the fall in the rupee against the dollar. The steady fall in the interest
rates resulted in squeezed margins for the banks in general.

Governmental Policy

After the first phase and second phase of financial reforms, in the 1980s commercial banks
began to function in a highly regulated environment, with administered interest rate structure,
quantitative restrictions on credit flows, high reserve requirements and reservation of a significant
proportion of lendable resources for the priority and the government sectors. The restrictive
regulatory norms led to the credit rationing for the private sector and the interest rate controls led
to the unproductive use of credit and low levels of investment and growth. The resultant ‘financial
repression’ led to decline in productivity and efficiency and erosion of profitability of the banking
sector in general.

This was when the need to develop a sound commercial banking system was felt. This was
worked out mainly with the help of the recommendations of the Committee on the Financial
System (Chairman: Shri M. Narasimham), 1991. The resultant financial sector reforms called for
interest rate flexibility for banks, reduction in reserve requirements, and a number of structural
measures. Interest rates have thus been steadily deregulated in the past few years with banks being
free to fix their Prime Lending Rates(PLRs) and deposit rates for most banking products. Credit
market reforms included introduction of new instruments of credit, changes in the credit delivery
system and integration of functional roles of diverse players, such as, banks, financial institutions
and non-banking financial companies (Nbfcs). Domestic Private Sector Banks were allowed to be
set up, PSBs were allowed to access the markets to shore up their Cars.

Implications Of Some Recent Policy Measures

The allowing of PSBs to shed manpower and dilution of equity are moves that will lend
greater autonomy to the industry. In order to lend more depth to the capital markets the RBI had in
November 2000 also changed the capital market exposure norms from 5 percent of bank’s
incremental deposits of the previous year to 5 percent of the bank’s total domestic credit in the
previous year. But this move did not have the desired effect, as in, while most banks kept away
almost completely from the capital markets, a few private sector banks went overboard and
exceeded limits and indulged in dubious stock market deals. The chances of seeing banks making
a comeback to the stock markets are therefore quite unlikely in the near future.

The move to increase Foreign Direct Investment FDI limits to 49 percent from 20 percent
during the first quarter of this fiscal came as a welcome announcement to foreign players wanting
to get a foot hold in the Indian Markets by investing in willing Indian partners who are starved of
networth to meet CAR norms. Ceiling for FII investment in companies was also increased from
24.0 percent to 49.0 percent and have been included within the ambit of FDI investment.

The abolishment of interest tax of 2.0 percent in budget 2001-02 will help banks pass on
the benefit to the borrowers on new loans leading to reduced costs and easier lending rates. Banks
will also benefit on the existing loans wherever the interest tax cost element has already been built
into the terms of the loan. The reduction of interest rates on various small savings schemes from
11 percent to 9.5 percent in Budget 2001- 02 was a much awaited move for the banking industry
and in keeping with the reducing interest rate scenario, however the small investor is not very
happy with the move.

Some of the not so good measures however like reducing the limit for tax deducted at
source (TDS) on interest income from deposits to Rs 2,500 from the earlier level of Rs 10,000, in
Budget 2001-02, had met with disapproval from the banking fraternity who feared that the move
would prove counterproductive and lead to increased fragmentation of deposits, increased
volumes and transaction costs. The limit was thankfully partially restored to Rs 5000 at the time of
passing the Finance Bill in the Parliament.
April 2001-Credit Policy Implications

The rationalization of export credit norms in will bestow greater operational flexibility on
banks, and also reduce the borrowing costs for exporters. Thus this move could trigger exports
growth in the future. Banks can also hope to earn increased revenue with the interest paid by RBI
on CRR balances being increased from 4.0 percent to 6.0 percent.

The stock market scam brought out the unholy nexus between the Cooperative banks and
stockbrokers. In order to usher in greater prudence in their operations, the RBI has barred Urban
Cooperative Banks from financing the stock market operations and is also in the process of setting
up of a new apex supervisory body for them.

Meanwhile the foreign banks have a bone to pick with the RBI. The RBI had announced
that forex loans are not to be calculated as a part of Tier-1 Capital for drawing up exposure limits
to companies effective 1 April 2002. This will force foreign banks either to infuse fresh capital to
maintain the capital adequacy ratio (CAR) or pare their asset base. Further, the RBI has also
sought to keep foreign competition away from the nascent net banking segment in India by
allowing only Indian banks with a local physical presence, to offer Internet banking Crystal
Gazing On the macro economic front, GDP is expected to grow by 6.0 to 6.5 percent while the
projected expansion in broad money (M3) for 2001-02 is about 14.5 percent.

Credit and deposits are both expected to grow by 15 -16 percent in FY02. India's foreign
exchange reserves should reach US$50.0 billion in FY02 and the Indian rupee should hold steady.
The interest rates are likely to remain stable this fiscal based on an expected downward trend in
inflation rate, sluggish pace of non-oil imports and likelihood of declining global interest rates.
The domestic banking industry is forecasted to witness a higher degree of mergers and
acquisitions in the future. Banks are likely to opt for the universal banking approach with a
stronger retail approach. Technology and superior customer service will continue to be the
imperatives for success in this industry.

Also, they have been amongst the first movers in the lucrative insurance segment. Already, banks
such as Indian Bank have forged alliances with Prudential Life and Standard Life respectively.
 1.3 COMPANY PROFILE

Indian Bank was originally incorporated on March 5, 1907 under provisions of the Indian
Companies Act, 1882 as “The Indian Bank Limited” with its head office at Chennai (then known
as Madras). For details of change in name and head office, see the section titled

“History and Certain Corporate Matters” on page 112 of this Draft Red Herring
Prospectus).

Constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970
on July 19, 1969).

PUBLIC ISSUE OF 85,950,000, EQUITY SHARES OF RS. 10, EACH (“EQUITY

SHARES”) OF INDIAN BANK (THE “BANK” OR THE

“ISSUER”) FOR CASH AT A PRICE OF RS. 10 PER EQUITY SHARE (INCLUDING

A SHARE PREMIUM OF RS. [5 ] PER EQUITY

SHARE) AGGREGATING RS. [8 ] MILLION (THE “ISSUE”). THE ISSUE INCLUDES

A RESERVATION OF 8,595,000 EQUITY SHARES

OF RS. 10 EACH FOR THE ELIGIBLE EMPLOYEES (THE “EMPLOYEE

RESERVATION PORTION”). THE ISSUE LESS THE EMPLOYEE

RESERVATION PORTION IS REFERRED TO AS THE “NET ISSUE”. THE ISSUE

WILL CONSTITUTE 25 % OF THE PRE ISSUE AND 20% OF THE POST ISSUE FULLY
DILUTED PAID-UP EQUITY CAPITAL OF THE BANK.

PRODUCT

N R I - Foreign Exchange

NRO (Non-Resident Ordinary Account)

NRE (Non-Resident(External) Rupee Account)

FCNR (Foreign Currency Non-Resident Account)

RFC (Resident Foreign Currency Account)

Wealth Management Services
Acquiring Wealth is important , Managing it is more important .Managing Wealth is a
challenge even for the informed , in the complex world of financial markets . Indian Bank Wealth
Management Services will help you in managing Wealth towards realizing your dreams.

Educational Loan

Indian Bank provides convenient educational loans for meritorious/deserving students

to acquire knowledge and skill in the field of their interest. By playing beacon, new-generation's
quest for success is ably supported, paving way for Generation Banking.

Supreme Current Accounts

Supreme Current Accounts : comprising of four variants, each having a different

average monthly balance starting from Rs.1 lakh to Rs.10 lakhs and variable level of insurance
cover and concession in service charges is launched now

Centralized Pension Processing

Pensioners are worthy customers who are ambassadors of our Bank and they are
important source for business development of our bank. With a view to provide better and
complaint free service to all pensioners, by keeping abreast with the pension rules, Indian Bank
has centralized the payment of pension throughout the country in all pension paying Branches. In
our Bank we have established Centralized Pension Processing Centre at Chennai to facilitate the
calculation of the pension at centralized level for all the pensioners drawing pension from our
Indian Bank. All the changes in Pension Paying parameters including revised DA, arrears of
DA ,etc are also done centrally and payment of arrears as per pay commission recommendations
by calculation of the same as per the data available in the Centralized pension processing system
(CPPS) By this we are assured of timely and accurate payment of pension to all categories of
pensioners.

B i-Freedom Current Accounts

The product has been designed keeping in mind your diverse business needs and provides you the
flexibility to hand pick host of services of your choice and convenience. Each product has
different average monthly balance ranging from Rs.50,000 to Rs 5,00,000 and offers a host of
privileges carefully chosen keeping in mind your business model.

Government of India, Ministry of Human Resources Development, Department of Higher

Education, New Delhi has launched a scheme under the name “Central Scheme to provide Interest
Subsidy (CSIS)” for the moratorium period of educational loans availed by students from EWS
under IBA educational loan scheme, to pursue Technical/ Professional courses in India. The
scheme is effective from the academics year 2016-2017

In case of revision in the Price Band, the Bidding/ Issue Period will be extended for three
additional working days after revision of the Price Band, subject to the Bidding/Issue period not
exceeding ten working days. Any revision in the Price Band, and the revised Bidding/Issue Period,
if applicable, will be widely disseminated by notification to the National Stock Exchange of India
Limited (the “NSE”) and the Bombay Stock Exchange Limited (the “BSE”), by issuing a press
release, and also by indicating the change on the websites of the Book Running Lead Managers
(“BRLMs”), and the terminals of the Syndicate Members.

In terms of Rule 19(2)(b) of the Securities Contract Regulation Rules, 1957, (“SCRR”)
this being an Issue for less than 25% of the post-Issue capital, the Issue is being made through the
100% Book Building Process wherein at least 60% of the Net Issue shall be Allotted on a
proportionate basis to Qualified Institutional Buyers (“QIBs”). 5% of the QIB Portion shall be
available for allocation to Mutual Funds only and the remaining QIB Portion shall be available for
allocation to all the QIB Bidders, including Mutual Funds, subject to valid Bids being received at
or above the Issue Price.

If at least 60% of the Net Issue cannot be Allotted to QIBs, then the entire application
money will be refunded. Further, not less than 10% of the Net Issue shall be available for
allocation on a proportionate basis to Non-Institutional Bidders and not less than 30% of the Net
Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject
to valid Bids being received at or above the Issue Price. Further, 8,595,500 Equity Shares shall be
available for allocation on a proportionate basis to the Eligible Employees, subject to valid Bids
being received at or above the Issue Price. We have not opted for IPO grading of the Issu
VISION AND MISSION OF INDIAN BANK

VISION
To be a sound and dynamic banking entity providing financial services of excellence with Pan
India presence.

MISSION
To develop a range of quality financial services and products create value for customers,
shareholders and the society, to motivate people to achieve excellence in
CHAPTER II
 2.1 REVIEW OF LITERATURE

Banks play a significant role in financing the economic needs of the country. To compete
effectively in present day competitive world, banks have been permitted to undertake new
activities such as investment banking, securities trading, insurance business, etc. The number of
market players has increased as their entry barriers have erased. The researchers and economists
have recognized that the measurement of productivity and profitability in banking is necessary to
improve the financial soundness of banks. A large number of studies have been conducted in the
field of operational and financial performance of banks. A brief review of some of these studies
has been presented in this chapter.

Angadi and Devraj (1983) measured productivity of Indian banks for the period 1970-80.
They took total working funds (deposits and credits) as output indicator while establishment
expenses as input indicator. They calculated return per rupee of establishment expenses. The
results indicated that the productivity of the banking system as a whole witnessed a considerable
decline during the years 1970-75. Between the years 1975 and 1978, the productivity improved
but again in the year 1979 it declined. Among the bank-groups, the productivity of public sector
banks, which declined to 45.5 per cent in 1975 from 53.3 per cent in 1970 improved in 1977.
However, it showed a sharp decline in 1980. The productivity of private sector banks, which had
been mostly lower than that of other bankgroups, showed an improvement in 1979. In the case of
foreign banks, the productivity was always higher than other bank-groups. They concluded that
the rapid expansion in rural and semi-urban commercial banks in the initial period of
nationalization, without corresponding growth in business of these offices, contributed to the
deceleration in productivity of these banks.

Verghese(1983) evaluated the profits and profitability of Indian commercial banks during
the period 1970 to 1979. He measured the profitability of commercial banks in terms of gross
profit, net profit, operating margin, gross yield on assets, spread and spread ratios. Trends of
productivity in 25 terms of average deposits per employee, salaries and wages per unit of deposits
and advances, share of establishment expenses in total current operating expenses and net income
per employee has also been calculated. The study revealed that gross profits and net profits have
shown an increasing trend while spread and spread related ratios declined over the study period.
Average assets per employee, average deposits, advances per employee, salaries and wages per
employee, and net income per employee have shown an increasing trend while share of
establishment expenses in the current operating expenses declined during the study period. The
study analyzed an overall improvement in employees’ productivity but it varied from year to year
basis. The study found that the monetary policy measures like interest rate changes, credit reserve
ratios and statutory liquidity ratios have an impact on the profits and profitability of banks

. Nayan (1985) conducted a study on the performance evaluation of commercial banks and
presented a performance evaluation model on the basis of important quantifiable parameters of
performance. The main findings were that the present system of ranking the banks on the basis of
aggregate deposits failed to reflect their overall achievements. The existing system of performance
budgeting is not suitable at branch level. On the basis of all important and quantifiable parameters
of performance, an integrated performance index needs to be developed for evaluating the
performance of commercial banks.

Ojha (1987) made international comparison with respect to productivity of banks between
countries like India, Iraq, Japan, United States of America, Britain, Australia, Brazil and Pakistan
for the year 1985. The key efficiency indicators used by him were: per employee assets, deposits,
net interest and pre-tax profits as well as percentage of pre-tax profits on assets. The results
showed that Japan was the first in respect of assets per employee, which was more than 63 times
of the State Bank Group of India. Japan was also the top performer in terms of deposits. United
States of America showed the highest net interest income per employee and Iraq was the top pre-
tax profit earner. Brazil occupied the top position with respect to the pre-tax profits as 26 per cent
of assets, India was at the bottom. He also analyzed the productivity growth for 4 selected years of
public sector banks in India since 1969. The years considered were 1969, 1979, 1983 and 1984.
The results showed that there had been a substantial growth in productivity per employee in public
sector banks since 1969. Net profits of these banks, however, showed a much lower increase. He
concluded that the growth in productivity had not been enough to offset the declining trend in
profitability. The reason behind this was the excessive recruitment of staff by banks in order to
cope with the rapid expansion of branches and volume of business since 1969 without giving
serious thought to computerization of banks. He suggested that in order to increase productivity
banks should pay attention towards human resource development through training. A deliberate
system of planning in banks should be introduced.

Chawla (1988) analyzed the development and growth of banking activities after
nationalization especially in the Punjab state during the period 1969- 83. The study found that
nationalization of major commercial banks in 1969 made a highly positive impact on deposit
mobilization, credit deployment and branch expansion in the state. Although inter-district
disparities continue to exist, yet a trend was noticed for reduction in these disparities. The
performance of banks in relation to schemes and programmes initiated for upliftment of weaker
sections after nationalization both in quantitative as well as qualitative terms was found to be
unsatisfactory. The researcher observed that within priority sector the relatively well-off have got
the maximum benefits, whereas the poor have remained credit starved.

Nyong (1989) examined the impact of managerial effectiveness on profitability of

Nigerian Banks. He had also discussed the various other measures which affected the profitability
of banking industry in Nigeria. For the analysis purpose, a sample of 40 Nigerian banks including
27 retail banks and 13 wholesale banks has been taken which were in existence in the year 1987.
Cross-sectional data has been used along with questionnaires and interviews. The study found that
if banks employed strong motivation factor, then the bank employees’ which were having long 27
years of experience along with good education were proved to be most productive and profitable.
The study suggested that the human capital programmes should be included to improve the
efficiency of managerial employees, and higher attainable targets should be set to motivate the
employees of the banks.

Singh (1990) examined the trends and changes in productivity in Indian banking industry
in relation to employee productivity and branch productivity. The researcher used 17 indicators to
analyze productivity trends and these indicators were divided into three categories –Per employee
indicators (labour productivity), per branch indicators (branch productivity), and Financial ratios
measuring productivity. The study period (1969-85) was divided into four sub periods. Cross-
sectional and inter-temporal analysis has been done on the basis of various productivity indicators,
and compound annual growth rate has also been calculated. In addition to the comparison of
growth rates of various indicators assessment of relative position performance has been made on
the basis of average T- scores and ranking based on it. Indian Bank and Indian Overseas Bank
made the most significant improvement. The bank which recorded the maximum deterioration was
United Commercial Bank, in terms of employee productivity.

There was a notable slide down in the positions of Allahabad Bank, Bank of Maharashtra
and State Bank of Patiala. The researcher recommended that the role played by the structure of
subsidiaries of State Bank of India in their relative poor performance needed to be examined.

Kaur(1991) studied the profits and profitability of 20 Public Sector Banks during the period 1976
to 1985. The researcher employed trend analysis, ratio analysis and regression analysis for the
study purpose taking 11 variables, which reflected different dimensions of banks’ operations, and
hence, affected the banks’ profitability. The study was primarily based on the secondary data. The
researcher was of the view that spread and burden were the two main factors, which influenced the
profitability of a bank. The other factors determining bank’s profitability were credit policy,
priority sector lending, massive geographical expansion, increasing establishment 28 expenses,
low non-fund income, deposit mobilization, etc. Further, she recommended that nationalized
banks need to focus attention on the management of spread, burden, establishment expenses,
ancillary income, deposit composition and diversification into wide range of financial services.
 CHAPTER III

3.1 NEED FOR THE STUDY

 Financial statement analysis is an important tool for measuring the financial performance
of any company.
 The main aspect of financial management is working capital management and it should be
done on day-to-day basis.
 Hence the company permits me to do in the area of finance.
 This study helps to review the financial performance of the indian bank.

3.2 SCOPE OF THE STUDY

 The study covers almost the entire area of financial operations covered by “indian
bank” the study has been conducted with the help of data obtained from audited
financial records.
  The audited financial records are the company annual reports pertaining to past 5
years from 2009-10 to 2014-2015 and the audited financial records are obtained
from the company’s annual report.
 The researcher tries to measure the performance of the organization and its working
capital management in terms of financial wealth.

3.3 OBJECTIVE OF THE STUDY

Primary Objective

A study on financial performance appraisal in indian bank Ariyalur

To analyze the balance sheet and income statement.

Secondary objective

• To Discussed the Financial ratio measurement and analysis.

• To analyze indian Bank trading recent years.

• To measure profitability, liquidity and credit management of indian Bank

• To show the financial stability analysis consists of (profitability and liquidity).

• To measure descriptive statistics.

• To using Financial ratio analysis (FRA method).

• To using student T test for hypothesis testing.

3.4 RESEARCH METHOLOGY

Research Methodology is basic plan, which guides the data Collection and analysis phase of the
research project . Its is a framework, which specifies the type course of the data and the data
collection periods.
RESEARCH DESIGN

The methodology used in this study is based on analytical. The study is primarily based on
secondary data collected from INDIAN BANK Financial performance analysis.The data are
extracted from final accounts.

DATA COLLECTION

1.Secondary Data

Besides the primary data ,the secondary data was also collected for the study secondary
data means the data that are already available. The research utilizes secondary data are,

a) Annual reports of INDIAN BANK Financial.

b) 5years Balance sheet statements.
c) Article, research papers and journals.
d) Website and books.

e) Area of study:

The area of study is done in the Villupuram district central co operative bank ltd.

f) Period of study:
The period of the study is 5 years from 2011– 2015

3.5 LIMITATION OF THE STUDY

From Starting of this study some force has restricted the area of study, which may interrupt
the accuracy, fluency knowledge limitation of this whole work.
• Study exclusively depends on the published financial data, so it is subject to all limitations that
are inherent in the condensed published financial statements.

• The study is confined to Six years data only (2008–2013). Detailed analysis covering a lengthy
period, which may give slightly different results, has not been made.

• The study is based on secondary data collected from the website www.ib.in.com and branch; so,
the quality of the study depends purely upon the accuracy, reliability and quality of the secondary
data source.

• Shorter time frame of internship may be restricted area of study.

• Limited Knowledge about SPSS may occur discrepancy in measurement procedure

The main model, profitability analysis, used in this research to evaluate the Foreign exchange and
rural areas financial performance of NBL has some limitations itself.

3.6 TOOLS USED FOR ANALYSIS

The tools used for the analysis are

 The receivable management can adopt the following tools for analysis of the financial
statement . These are also termed as method of receivables management ;

 Trend analysis
 Working Capital
 Ratio analysis
 Balance sheet
 CHAPTER IV

4.1 DATA ANALYSIS AND INTERPRETATION

The short term obligation of a firm can be met only when there are sufficient liquid asset.
Therefore, a company must ensure that it does not suffer from lack of liquidity or the capacity to
pay its current obligation . If a company fails to meet such current obligation due to lack of good
liquidity position ,its good in the markst is likely to be affected .

Even a very degree of liquidity is not good for a company because such situation
represents unecessarily excessive funds of tne firm bring tied-uo to the current asset.

Two type of ratio can be calculate for measuring short-term financial position or short-
term solvency of a company.

 Currentratio
 Return on shareholder fund
 Cash position ratio

Trend Analysis

Comparing the past data over a period of time with a base year is called trend analysis.
Trend percentages are calculated for items of the financial statements taking the figure of base
year and on that basis percentage for the other are calculated. The starting year is usually taken
as the base year.

SHARE CAPITAL

TABLE NO: 4.1

Year Amount Tend % Base year Presviousyear

(In crores) (+) or (-) (+) or (-)

2010-2011 829.77 100 0.00 0.00

2011-2012 829.77 103.21 03.21 03.21

2012-2013 829.77 105.34 05.34 4.35

2013-2014 464.85 107.53 07.53 3.45

2014-2015 480.29 111.15 11.15 6.07

(Sources : Secondary data)

INTERPERTATION

 Share capital shown a constant trend in the period 2011 to 2015

Share capital shown an increasing trend in the period 2015 trend percentage
.

SHARE CAPITAL

CHART NO : 4.1

900
800
700
600
500
Amount (In crores)
400 Tend %
Presvious year (+) or (-)
300
200
100
0
2010- 2011- 2012- 2013- 2014-
2011 2012 2013 2014 2015

RESERVES &SURPLUS
 TABLE NO: 4.2

Year Amount Trend % Base year Previous year

(In crores) (+) or (-) (+) or (-)

2010-2011 8691.33 100 0.00 0.00

2011-2012 9971.67 115.13 15.13 15.13

2012-2013 11142.66 137.67 37.67 22.54

2013-2014 13406.80 154.76 54.76 32.22

2014-2015 14352.96 163.88 68.88 36.66

(Sources:Secondary data)

INTERPERTATION

 The reserves & surplus was showing increase trend in the period 2011-2015
 The increase trend in reserves & surplus indicates the increase profit in the firm
 RESERVES AND SURPLUS

CHART NO: 4.2

100%
90%
80%
70%
60%
Previous year (+) or (-)
50% Base year (+) or (-)
40% Trend %
Amount (In crores)
30%
20%
10%
0%
2010- 2011- 2012- 2013- 2014-
2011 2012 2013 2014 2015

INVESTMENT
TABLE NO: 4.3

Year Amount Trend % Base year Previous year

In crores (+) or (-) (+) or (-)

2010-2011 34783.76 100 0.00 0.00

2011-2012 37976.60 115.05 15.05 15.05

2012-2013 41804.98 128.87 28.87 13.82

2013-2014 46809.94 145.32 45.32 31.50

2014-2015 45898.61 163.87 63.87 32.37

(Sources: Secondary data)

INTERPERTATION

 The investment was shown increase trend in the 2011-2015 (i.e 115.05% in 2012 to
163.87% in 2015).
 INVESTMENT

CHART NO : 4.3

100%
90%
80%
70%
60%
Previous year (+) or (-)
50% Base year (+) or (-)
40% Trend %
Amount In crores
30%
20%
10%
0%
2010- 2011- 2012- 2013- 2014-
2011 2012 2013 2014 2015

TRENDS IN TOTAL ASSETS

TABLE NO: 4.4

year Amount Trend % Basic year Pervious year

(In crores) (+) or (-) (+) or (-)

2010-2011 121718.30 100 0.00 0.00

2011-2012 141319 120.14 20.14 20.14

2012-2013 162822.06 142.17 42.17 22.03

2013-2014 187226.20 164.22 64.22 42.19

2014-2015 192835.90 185.64 85.64 43.35

(Sources: secondary data)

INTERPERTATION

 The total asset shown good position (increase) trend.

 The total asset was showing increase trend in the period 2011-2015 (i.e from 120.14% in
2012 to 185.64% 2015.

TOTAL ASSET
CHART NO: 4.4

100%
90%
80%
70%
60% Pervious year (+) or (-)
50% Basic year (+) or (-)
Trend %
40% Amount (In crores)
30%
20%
10%
0%
2010-2011 2011-2012 2012-2013 2013-2014 2014-2015

Working Capital Turnover Ratio

The working capital is required for the smooth running of day to day operations of the business.
Hence, it has utmost importance in analyzing business operation both internally and externally.
Inadequacy or mismanagement of working capital leads towards business failure.

The working capital of a company is the life blood which flows through the veins and arteries of
the structure. as like the lacking or slow down of blood results into a death, the lacking or slow
down of working capital results into a death of financial body (brain - management and muscles –
personnel) of a business and becomes just junk.

The Working Capital Turnover Ratio is one of the best measures to analysis the efficiency of a
firm in managing its working capital. It is figured as shown below:

Working Capital
Working Capital Turnover Ratio =

Net Sales (Net Revenue)

As GSRTC is a service sector, net sales is replaced by net revenue.Moreover, in the present study,
working capital is taken as the excess of current assets over current liabilities.

The faster the working capital turnover, the lower is the total investment and is greater the profit.
However, a very high turnover of working capital may, in some cases, denote deficiency of
working funds for the given volume of business, which ultimately adversely affects the
profitability. Working Capital Analysis

WORKING CAPITAL TURNOVER RATIO (TIME) IN GSRTC

FROM 2011-2015
TABLE NO: 4.5

s.no Year Net revenue Working capital Ratio

1 2010-2011 122666.38 -94797.89 -1.29:1

2 2011-2012 130824.01 6312.28 20.72:1

3 2012-2013 141540.43 7440.20 19.02:1

4 2013-2014 137070.71 1892.69 72.42:1

5 2014-2015 143016.76 -10565.23 -13.54:1

(Source: secondary data)

INTERPERTATION

Computed from the annual reports and accounts of the GSRTC,Ariyalur

WORKING CAPITAL TURNOVER RATIO

 CHART NO: 4.5

200000

150000

100000

50000 Series1
Series2
0 Series3
s.no 1 2 3 4 5
-50000

-100000

-150000

TREND OF WORKING CAPITAL (PERCENT)

 (BASE YEAR 2011-16) in GSRTC FROM 2011 to 2015 (Rs. in lacs)
` TABLE NO: 4.6

s.no Year Current Current Working Adding Working

asset liabilities capital constant capital
value trend
84787.89

1 2010-2011 1516.29 9521.65 -8005.36 0.00 0.00

2 2011-2012 2675.52 4941.10 -2265.58 101110.27 119.68

3 2012-2013 4045.58 6007.49 -1961.91 102238.09 121.01

4 2013-2014 4784.58 6116.49 -1331.91 96690.58 114.45

5 2014-2015 5023.92 6131.35 -1107.443 84232.66 99.70

(Source: secondary data)

INTERPERTATION

Computed from the annual reports and accounts of the GSRTC, increase and decrease for indian
bank ariyalur

WORKING CAPITAL
CHART NO: 4.6

100%
90%
80% Working capital trend
70%
Adding constant value
60% 84787.89
50%
Working capital
40%
Current liabilities
30%
20% Current asset
10%
0%

3.DATA ANALYSIS AND INTERPRETATION

  Current Ratio

In order to measure the short-term liquidity or solvency of a concern, comparison of

current assets and current liabilities is inevitable. Current ratio indicates the ability of a concern to
meet its current obligations as and when they are due for payment.

Current Ratio = (Current asset / Current liabilities )

Current assets = Cash & bank balance, Marketable securities, Cash in hand, Trade debtors,
Bills receivable and Prepaid expenses.

 Return on shareholders’ funds

This ratio established the profitability form the shareholders point of view. It is
calculated by dividing the net profits after interest and tax by the shareholders’ funds. Thus:

net profit after interest ∧tax

Return on shareholders funds= ×100
Shareholders funds

Here, Shareholders’ funds = Equity share capital + Preference share capital + share premium +
Revenue reserves + Capital reserve + Retained earnings – Accumulated lose.

 .Cash position ratio

This ratio is calculated when liquidity is highly restricted in terms of cash and cash
equivalents. This ratio measures liquidity in terms of cash and near cash items and short tern
current liabilities.

Cash position ratio = (Cash and bank balance / Current liabilities )

CURRENT RATIO
 TABLENO: 4.7

Number of year Current asset Current liability Ratio

2010-2011 1516.29 9521.65 0.15

2011-2012 2675.52 4941.10 0.54

2012-2013 4045.88 6007.46 0.67

2013-2014 4784.58 6116.49 0.78

2014-2015 5023.92 6131.35 0.81

(Sources: Secondary data)

INTERPRETATION

In my study period the current ratio in unfavorable in nature but in the year 2011 – 15 the current
ratio is 5.6 it indicating a good liquidity of a firm.

CURRENT RATIO

CARTNO: 4.7
10000
9000
8000
7000
6000
5000 Current asset
Current liability
4000
Ratio
3000
2000
1000
0
2010- 2011- 2012- 2013- 2014-
2011 2012 2013 2014 2015

RETURN ON SHAREHOLDER FUND

TABLE NO: 4.8

 Number of Profit before Shareholder funds Ratio
year interest and
tax

2010-2011 75249.91 9521.1 7.90

2011-2012 90323.60 10801.40 8.36

2012-2013 105642.50 11972.43 8.82

2013-2014 122208.90 13871.04 8.81

2014-2015 125863.50 14833.26 8.48

(Sources: Secondary data)

INTERPRETATION

Return on shareholder fund is a measure of operational efficiency of the firm in the year
2011-2015 the return on shareholder fund 33.75, but in remains years the return on shareholder
fund is very low in identification the bank not managing the operational efficiency

PROFIT BEFORE INTEREST AND TAX

CHART NO: 4.8

140000

120000

100000

80000
Profit before interest and tax
Shareholder funds
60000
ratio

40000

20000

0
2010- 2011- 2012- 2013- 2014-
2011 2012 2013 2014 2015

CASH POSITION RATIO

TABLE NO: 4.9

 Year Cash & bank Current Ratio
balance liability

2010-2011 6877.94 6131.35 1.12

2011-2012 6318.87 6116.49 1.03

2012-2013 7064.24 6007.46 1.30

2013-2014 7757.68 4941.10 1.58

2014-2015 8301.07 4292.65 1.93

(Sources: Secondary data).

INTERPRETATION
Cash position ratio is otherwise called as super quick ratio indicates that liquidity in terms
of cash and near cash items and short-terms current liabilities an ideal cash position ratio 2011 -
2015 the increase in the year but another year in decrease

CASH POSITION RATIO

 CHART NO: 4.9
9000

8000

7000

6000

5000
Cash & bank balance
Current liability
4000 ratio

3000

2000

1000

0
2010-2011 2011-2012 2012-2013 2013-2014 2014-2015
 CHAPTER V

FINDINGS

The study provides key findings according to the data analysis and arrives on some conclusions
based on the findings.
 The average Net Profit Ratio of INDIAN BANK is 10.23%
 The average Operating Profit Ratio of ( Indian Bank) is 22.21% .
 The average Net worth Ratio of (Indian Bank) is 11.83%.
 The average Earnings per Share of ( Indian Bank) is 10.05% .
 The average Total Assets Turnover Ratio of (Indian Bank) is 0.07 time.
 The average Dividend Pay-out Ratio of (Indian Bank) is 19.25%
 The average Debt-Equity Ratio of (Indian Bank) is 10.85 times.
 The average BVPS Growth Ratio of (Indian Bank) is 19.25 times which implies
that the average Propriety Ratio of Indian Bank is 0.05 times
 The average Interest Expended to Interest Earned Ratio of (Indian Banks) is
56.88%
 Performance of INDIAN BANK in terms of Deposits, Advances, Investments, Net
Profit, and Total Assets is tested by applying the t- test.
 The calculated value of Deposits 7.18, Advances 76.36, Investments 32.50, Net
Profit 1.55 and Total Assets 0.09 is greater than the table value 2.306. Therefore, it
is inferred that there is a significant difference in the performance of INDIAN
BANK in terms of Deposits, Advances, Investments, Net Profit, and Total Assets.

SUGGESTIONS
 After studying the Productivity and Profitability Analysis concept, undertaking a
preliminary investigation and careful observations as well as on the basis of the analysis
and interpretations of the collected data.

 The researcher has found some suggestions emerge for consideration.

 On the basis of the study the following suggestions are given to the Public Sector Banks
and Private Sector Banks to improve the profitability and raise their productivity.

 Company may increase current asset by increase cash, bank balance and investments.
 The company may reduce its current liabilities by reducing sundry creditors and
outsanding expenses.

 The company may increase its inventory turnover on the basic of order for sales and
market potential.
 Firm has to concentrate in governing its current assets properly.
 The payment period can be mimized by reducing its credit risk.
 Improper debtor and creditor turnover have to be analysed.

CONCLUSION
INDIAN BANK is India in public and private sectors respectively. To compare the financial
performance of the banks, various ratios have been used to measure the banks’ profitability,
solvency position, and management efficiency. According to the analysis, the banks are
maintaining the required standards and running profitably. The comparison of the performance of
indianBank terms of Deposits, Advances, Investments, Net Profit, and Total Assets. It is have an
extensive operation than INDIAN BANK .

Loans and advances have become an important source of raising the finance amongst individual,
corporate as well as for the higher organizations. A secured business loan is a loan given for
commercial purpose. It Keeps business properties as collateral. It can be taken for a variety of
purposes like diversification, research and development or to buy plants and machineries

The advantage with loans is that you can design your repayment period as well as monthly
installments according to your financial capacity. A loan comes at a lower interest rate when
compared with other business loans. As these loans are taken against collateral, any default in
repayment can put to your commercial property at risk.
BIBLIOGRAPHY

Varde, Varsha S. and Singh, Sampat P., “Towards an Analytical Framework for Profit
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Vashisht, A.K., “Performance Appraisal of Commercial Banks in India,” 1987 (A Thesis

submitted to the Dept. of Commerce and Business Management, HPU, Shimla).

Verghese, S.K., “Profits and Profitability of Indian Commercial Banks in Seventies,”

Economic and Political Weekly, Nov. 1983, pp. M-145 to M-157.

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“VRS to hit Bank Capital Adequacy,” PNB Monthly Review, Jan. 2001.

Wheelen, Thomos, L. and Hunger, David J., Strategic Management and Business
Policy.(2004), Pearson Education, Delhi.P.127.

“Who is afraid of Privatization?,” The Management Accountant, September 1994, p.643.

World Bank Report (2001). The Development and Regulation of NonBank Financial
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Xu, Dianquing, “Contradictory Measures Frustrate Bank Reform”, Economic Reform

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Sinha, R.P., “Public Sector Banks – Reverse Turnaround,” Indian Banking Today and
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ANNEXURE:‘‘ INDIAN BANK BALANCE SHEET” 2011-2015

 Parameters MAR'15 MAR'14 MAR'13 MAR'12 MAR'11
(₹ Cr.) (₹ Cr.) (₹ Cr.) (₹ Cr. (₹ Cr.)

SOURCES OF FUNDS:

Share warrants &Outstandings

0 0 0 0 0
Share Capital
480.29 464.85 829.77 829.77 829.77
Total Reserve
14352.96 13406.19 11142.66 9971.67 8691.33

Deposits 169225.2 162274.8 141980.1 120803 105804.1

Borrowings 2646.09 4963.87 2862.56 4872.86 2100.37

Shareholder's Funds 14833.26 13871.04 11972.43 10801.4 9521.1

Other Liabilities & Provisions 6131.35 6116.49 6007.46 4941.1 4292.65

TOTAL LIABILITIES 192835.9 187226.2 162822.6 141419 121718.3

APPLICATION OF FUNDS:

Cash and balance with Reserve Bank

of India 8301.07 7757.68 7064.24 6318.87 6877.94

Balances with banks and money at

call and short notice 4780.1 2732.86 2574.44 2494.49 1684.37

Investments 45898.61 46809.94 41804.98 37976.0 34783.76

Advances 125863.5 122208.9 105642.5 90323.6 75249.91

Gross Block 4253.45 4083.34 2709.96 2535.89 2352.44

Less : Accumulated Depreciation 1289.96 1153.94 1019.97 910.47 801.71

Less : Impairment of Assets 0 0 0 0 0

Net Block 2963.49 2929.4 1689.99 1625.42 1550.73

Lease Adjustment 0 0 0 0 0

Capital Work in Progress 5.27 2.78 0.52 5.27 55.31

Other Assets 5023.92 4784.58 4045.88 2675.52 1516.29
187226.2
TOTAL ASSETS 192835.9 162822.6 141319 121718.3

Contingent Liability 38037.68 43885.42 36313.06 48051.3 33897.35

Bills for collection 2990.96 2828.24 2980.42 2383.2 1919.31