Research Report in the field of Finance

Undertaken
At
“The Co – operative Bank of Rajkot Ltd.”
i.e. Raj Bank
“Ratio Analysis Based on CAMEL Model of RBI”

1
 PREFACE
As we enter the 21st Century with new hope and new expectations, it is
imperative that we appreciate the world around us is changing rapidly,
throwing open great challenges and innumerable opportunities. Driven by the
growing trend of globalization, the revolutionary developments in Information
Technology and the emergence of the digital era, we are witnessing
phenomenal changes in the world of finance. In the emerging scenario, finance
will be operating in a totally new financial landscape of atoms and electrons.

These far-reaching developments in the world of finance have redefined

the role of the finance manager, to evolve financial strategies that dovetail with
the firm’s competitive business strategies. In the present decade, the analysis of
financial statement of business has generated a wide divergence of view among
the thinkers and the management experts. The analysis of financial statement is
very crucial function.

Ratio are exceptionally useful tools with the finance manager to infer the
financial performance of the enterprise over a period of time, with the help of
ratio analysis conclusion can be drawn regarding several aspects such as
financial health profitability and operational efficiency of the undertaking.

This study aims at determining and analysing the profitability and

operational efficiency of the “The Co-operative Bank of Rajkot Ltd.” by way
of Ratio Analysis for the past five years.

2
 INDEX

PAGE
SR. NO. PARTICULARS
NO.
1. Introduction
2. Brief profile of Banking Sector in general
3. Brief profile of Co-operative Banks
4. History & Development of Raj Bank
5. Organisation Structure
6. Organisation Chart
Concept of Ratio Analysis its measurement and its
7.
analysis
8. Research Methodology
9. Ratio Analysis of Raj Bank
10.
Conclusion & Finding
11.
Bibliography

3
 INTRODUCTION
The firm’s financial information is contained in three basic financial
statements – The Balance Sheet, Profit & Loss Account and Profit and Loss
Appropriation Account. These statements are very useful to different parties
concerned such as management, investor, creditors and other to form
judgement about the operational efficiency and financial position of the firm.
These statements may be more fruitfully used if they are analysed and
interpreted to have an insight into the strengths and weaknesses of the firm.
The success of the firm’s financial plans is based on the financial analysis
which is the starting point for making plans, before using and sophisticated
forecasting and budgeting procedures.

Various tools and techniques are employed by the interested parties in

analysing the financial information contained in these financial statements.
These techniques are as follows:

 Comparative Statements
 Common Size Statements
 Trend Analysis
 Fund Flow Analysis
 Cash Flow Analysis
 Value Added Analysis
 Ratio Analysis

Ahead of all is Ratio Analysis which is a very powerful analytical tool for
measuring performance of an organisation. The Ratio Analysis concentrates on
the inter-relationship among the figures appearing in the aforementioned
financial statements. The Ratio Analysis helps the management to analyse the
past performance of the firm and to make further projections.

Ratio Analysis is a process of comparison of one figure against another,

which make a ratio, and the appraisal of the ratio to make proper analysis about
the strengths and weaknesses of the firm’s operation. Ratio Analysis is

4
extremely helpful in providing valuable insight into a firm’s financial picture.
Ratios normally pinpoint a business strengths and weakness in two ways:

1. Ratios provide an easy way to compare today’s performance with past.

2. Ratios depict the areas in which a particular business is competitively

advantaged or disadvantaged through comparing ratios to those of other
businesses of the same size within the same industry.

5
 BRIEF PROFILE OF BANKING INDUSTRY IN
GENERAL
If there is one industry that has the stigma of being old and boring, it
would have to be banking; however, a global trend of deregulation has opened
up many new businesses to the banks. Coupling that with technological
developments like Internet banking and ATMs, the banking industry is
obviously trying its hardest to shed its lacklustre image.

There is no question that bank stocks are among the hardest to analyze.
Many hold several assets and have several subsidiaries in different industries.
A perfect example of what makes analyzing a bank stock so difficult is the
length of their financials. While it would take us an entire textbook to explain
all the ins and outs of the banking industry, this point will hopefully shed some
light on the more important areas to look at when analyzing a bank as an
investment.

There are two major types of banks:

1. Regional Banks - These are the smaller financial institutions that

primarily focus on one geographical area within a country. Providing
depository and lending services are regional banks primary line of
business.

2. Major (Mega) Banks - While these banks might maintain local

branches, their main scope is in financial centres, where they get
involved with international transactions, and underwriting, etc.

Could you imagine a world without banks? At first this might sound like
a great thought! Banks (and financial institutions) have, however, for several
reasons, become cornerstones of our economic growth and steer the wheels of
the economy towards its goal of “Self reliance in all fields”. They transfer risk,
provide liquidity, facilitate both major and minor transactions, and provide
financial information for both individuals and businesses.

6
 Perhaps the banking industry's largest distinction is the government's
heavy involvement in it. Besides setting restrictions on borrowing limits and
the amount of deposits that the bank must hold in their vault, the government
has a huge influence on banks profitability.

In present age in India there are many banks including foreign banks,
public sector, private sectors, commercial banks and co-operative banks. The
structure of Indian Banking System is as under:

7
 Structure of Indian Banking
System

Unorganised Organised

Co-operative
Commercial
Unlicensed Reserve Bank Banks
Licensed Banks
Indigenous of India
Creditors
Money Lenders

Public Private State Co- Central Co- Rural

Sector Sector operative operative Primary Co-
Banks at Banks at operative
State Level District Level Banks at
Village /
Town Level

8
 BRIEF PROFILE OF CO – OPERATIVE BANKS
Once the Mahatma Gandhiji has remarked that,” There is sweetness in
co-operation; there is no one who weak or strong among those who co-operate.
Each is equal to other”.

The co-operative movement in India has played a significant role as an

important instrument of operationalising developmental initiatives. The Co-
operative Banks came under the preview of Banking Regulation Act, 1949
w.e.f. 1st April 1966. All Co-operative Banks having a paid up capital of Rs. 1
lakh or more have come under the control of Reserve Bank of India. There has
been really a marked improvement in the progress of cooperative credit
movement in our country aided frequently by the government support and the
intervention of Reserve Bank of India.

Also today’s co-operative sector has grown in all over the world, with
globalization. They have also started to implement new technologies and
various management tools. Now, they are competing in same market with all
the other types of banks. In this way the Co-operative Banks holds the key
position in the economy.

CHANGES IN CO-OPERATIVE BANKS

We shall now enumerate the recent changes that have occurred in the
Co-operative Banking Scene, subsequent to the reform measures initiated by
the Government.

 During 1992-93 the Reserve Bank of India liberalised the licensing

policy for new Primary Urban Co-operative Banks greatly; prescribed the
entry point viability norms and advised to follow the guidelines relating to
their operations and advised to adopt norms in respect of income
recognition, classification of assets and provisioning on the lines stipulated
for commercial banks.

9
 During 1993-94 the National Co-operative Bank of India (NCBI) was
registered on 5th August 1993 as a Multi-State Co-operative Society.

 A Co-operative Development Fund was set up by NABARD to help the

Co-operative Banks to improve managerial systems and skills.

 For the first time Scheduled Urban Co-operative Banks were permitted
to invest their surplus funds in Certificate of Deposits and Commercial
Papers of those Institutions / Corporate with credit rating P1 / A1 from
CRISIL / ICRA.

 With a view to maintaining the rural credit flow uninterrupted from

SCBs and RRBs the relaxation in the stipulation that they must recover
loans at least 40% of the demand for the previous year to be eligible for
refinance from NABARD was extended up to June 30, 1996.

 Lending and deposit rates of all Co-operative Banks were deregulated in

various phases.

 In February 1996, PCBs were allowed to invest their surplus funds in

Certificate of Deposits issued by banks and other financial institutions,
approved by the Reserve Bank subject to fulfilling certain conditions.

 During 1995-96, all Scheduled PCBs were brought under the purview of
the provisions of the Banking Ombudsman Scheme, 1995.

 All scheduled and non-scheduled PCBs with deposits of over Rs. 50

crore were required to introduce the system of concurrent audit.

 The prudential accounting norms viz, income recognition, asset

classification, provisioning for bad and doubtful debts and capital adequacy
were applied to State Co-operative Banks and Central Co-operative Banks
form the year 1996-97 in two phases viz., 1996-97 and 1997-98.

10
 HISTORY & DEVELOPMENT OF RAJ BANK
It is well said that “In the emerging competitive business environment
co-operative banks who adhere to strict financial discipline only will survive”.

The co-operative Bank of Rajkot Ltd. popularly known as Raj Bank is

established on 28th November 1980 under the strong, effective leadership of
Shri Ramnikbhai Dhami with the intention of serving the common man.

The bank was started in small premises and converted into a large and
most popular bank having its Area of Operation in the entire Rajkot, Junagadh
and Jamnagar District. In years to come the bank will expand its business in the
entire Gujarat State.

At present, after completion of 25 year, Raj Bank has achieved a key

position in the market of Saurashtra. It has 11 branches in all over Saurashtra
including main branch with the advanced technologies and educated staff.

The Co-operative Bank of Rajkot Ltd, have been at the forerunner of the
change taking place in the Co-operative Banking sector over the years. Their
strategic initiatives have led their position today as the first Co-operative bank
in Saurashtra to provide ATM facility. Their pioneering new approaches to
banking and their focus on extending the availability of tech-driven
convenience to large customer base resulted into rapid business growth.

A critical constituent of their growth has been the quality of their people.
The single minded application and understanding of the challenges of the
market place by their managers. They have built today stable business that will
deliver sustainable value to their stakeholders; there are more exciting
opportunities to grow. These include the whole gamut of financial products
ranging from agriculture credit to consumer credit, liability product and
insurance especially in Rural India.

At last it can be said that The Co-operative Bank of Rajkot Ltd is well
placed to capitalize on emerging competitive business environment
opportunities as it reaches out to new markets in Gujarat.

11
12
 ORGANIZATION STRUCTURE
An organization Structure is the mechanism through which management
try’s to achieve its objectives. Various jobs are divided among units of the
enterprise and are integrated into an effective operation system to achieve an
organizational goal.

It is primarily concerned with the allocation of duties and responsibilities

and delegation of authority. It is a management tool for achieving the
objectives or goals of an enterprise.

From the chart shown below it can be easily understood that Line &
Staff Organisation Structure is followed by Raj Bank.
ORGANIZATION CHART

13
14
 CONCEPT OF RATIO ANALSIS ITS
MEASUREMENT & ITS ANALYSIS
Financial ratio analysis is a fascinating topic to study because it can
teach us so much about accounts and businesses. When we use ratio analysis
we can work out how profitable a business is, we can tell if it has enough
money to pay its bills and we can even tell whether its shareholders should be
happy!

Ratio analysis can also help us to check whether a business is doing

better this year than it was last year; and it can tell us if our business is doing
better or worse than other businesses doing and selling the same things.

In addition to ratio analysis being part of an accounting and business

studies syllabus, it is a very useful thing to know anyway!

The overall layout of this segment is as follows: We will begin by asking

the question, what do we want ratio analysis to tell us? Then, what will we try
to do with it? This is the most important question, funnily enough! The answer
to that question then means we need to make a list of all of the ratios we might
use: we will list them and give the formula for each of them.

Once we have discovered all of the ratios that we can use we need to
know how to use them, who might use them and what for and how will it help
them to answer the question we asked at the beginning?

At this stage we will have an overall picture of what ratio analysis is,
who uses it and the ratios they need to be able to use it. All that's left to do then
is to use the ratios; and we will do that step- by-step, one by one.

The three important questions we have asked at the beginning they are
describe in brief as under: That questions are;

 What do we want ratio analysis to tell us?

 What do the users of accounts need to know?
 Which ratio for which group?

15
What do we want ratio analysis to tell us?

The key question in ratio analysis isn't only to get the right answer: for
example, to be able to say that a business's profit is 10% of turnover. We have
to start working on ratio analysis with the following question in our heads:

What are we trying to find out?

Isn't this just blether, won't the exam just ask me to tell them that profit is 10%
of turnover? Well, yes, but then they want to know that we are a good student
who understands what it means to say that profit is 10% of turnover.

We can use ratio analysis to try to tell us whether the business

1.is profitable
2.has enough money to pay its bills
3.could be paying its employees higher wages
4.is paying its share of tax
5.is using its assets efficiently
6.has a gearing problem
7.is a candidate for being bought by another company or investor

And more, once we have decided what we want to know then we can decide
which ratios we need to use to answer the question or solve the problem facing
us.

Let's look at the ratios we can use to answer these questions.

The Ratios

We can simply make a list of the ratios we can use here but it's much better to
put them into different categories. If we look at the questions in the previous
section, we can see that we talked about profits, having enough cash, efficiently
using assets - we can put our ratios into categories that are designed exactly to
help us to answer these questions. The categories we want to use, section by
section, are:

16
 1.Profitability: has the business made a good profit compared to its
turnover?
2.Return Ratios: compared to its assets and capital employed, has the
business made a good profit?

3.Liquidity: does the business have enough money to pay its bills?
4.Asset Usage or Activity: how has the business used its fixed and current
assets?
5.Gearing: does the company have a lot of debt or is it financed mainly by
shares?
6.Investor or Shareholder

Not everyone needs to use all of the ratios we can put in these categories
so the table that we present at the start of each section is in two columns: basic
and additional.

The basic ratios are those that everyone should use in these categories
whenever we are asked a question about them. We can use the additional ratios
when we have to analyse a business in more detail or when we want to show
someone that we have really thought carefully about a problem.

Users of Accounting Information

Now we know the kinds of questions we need to ask and we know the
ratios available to us, we need to know who might ask all of these questions!
This is an important issue because the person asking the question will normally
need to know something particular.

Of course, anyone can read and ask questions about the accounts of a
business; but in the same way that we can put the ratios into groups, we should
put readers and users of accounts into convenient groups, too: let's look at that
now.

The list of categories of readers and users of accounts includes the

following people and groups of people:

• Investors &Lenders
17
• Managers of the organisation & Employees
• Suppliers and other trade creditors & Customers
• Governments and their agencies & Public
• Financial analysts
• Environmental groups
• Researchers: both academic and professional

18
 What do the Users of Accounts Need to Know?
The users of accounts that we have listed will want to know the sorts of
things we can see in the table below: this is not necessarily everything they will
ever need to know, but it is a starting point for us to think about the different
needs and questions of different users.

To help them determine whether they should buy shares in the

business, hold on to the shares they already own or sell the
Investors
shares they already own. They also want to assess the ability of
the business to pay dividends.
To determine whether their loans and interest will be paid
Lenders
when due
Might need segmental and total information to see how they fit
Managers
into the overall picture
Information about the stability and profitability of their
employers to assess the ability of the business to provide
Employees
remuneration, retirement benefits and employment
opportunities
Businesses supplying goods and materials to other businesses
Suppliers and their will read their accounts to see that they don't have problems:
trade creditors after all, any supplier wants to know if his customers are going
to pay their bills!

The continuance of a business, especially when they have a

Customers
long term involvement with, or are dependent on, the business
The allocation of resources and, therefore, the activities of
Governments and business. To regulate the activities of business, determine
their agencies taxation policies and as the basis for national income and
similar statistics
Local community Financial statements may assist the public by providing
information about the trends and recent developments in the
prosperity of the business and the range of its activities as they
19
 affect their area
They need to know, for example, the accounting concepts
Financial analysts
employed for inventories, depreciation, bad debts and so on
Many organisations now publish reports specifically aimed at
Environmental informing us about how they are working to keep their
groups environment clean.

Researchers' demands cover a very wide range of lines of

enquiry ranging from detailed statistical analysis of the income
Researchers statement and balance sheet data extending over many years to
the qualitative analysis of the wording of the statements

20
Which ratios will each of these groups be interested in?

On this page we see the table which help different groups interested in
their ratio. In the left hand column there is a list of interest groups one by one
and in the right hand column there is a list of ratios they might be interested in.

Interest Group Ratios to watch

Investors Return on Capital Employed
Lenders Gearing ratios
Managers Profitability ratios
Employees Return on Capital Employed
Suppliers and other trade creditors Liquidity
Customers Profitability
Governments and their agencies Profitability
Local Community This could be a long and interesting list
Financial analysts Possibly all ratios
Environmental groups Expenditure on anti-pollution measures
Researchers Depends on the nature of their study

21
 RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. One can
also define research as a scientific and systematic search for pertinent
information on a specific topic. Research in academic activity and as such the
term should be used in a technical sense. Research is, thus, an original
contribution to the existing stock of knowledge making for its advancement.

Where as Research Methodology is a way to systematically solve the

research problem. It may be understood as a science of studying how research
is done. In it we study the various steps that are generally adopted by a
researcher in studying his research problem along with the logic behind them.
It is necessary for the researcher to know not only the research methods /
techniques but also the methodology.

Thus, when we talk of research methodology we not only talk of the

research methods but also consider the logic behind the methods we use in the
context of our research study. Here, data used is secondary, which is their
Annual Reports of last 5 years and method of ratio analysis is based upon the
CAMEL Model of RBI, which give the overall image of firm’s performance.

22
 RATIO ANALYSIS OF RAJ BANK
It's all very well being armed with a list of ratios and people who might
want to use them, but we need to know where to get all the figures to put into
those ratios, don't we?

Here are all the figures which are taken from profit and loss account and
balance sheet of “The Co-operative Bank of Rajkot Ltd.”

Purely for analytical convenience, the Financial Ratio of bank is

generally categorised differently from that of commercial businesses. The
working Group to ``Review the system of on-site supervision over Bank’’
headed by Shri S. Padmanabhan, constituted in February 1995 recommended
far reaching changes in bank inspections by the Reserve Bank of India and
introduce a rating methodology for the banks i.e. CAMEL model. It is
elaborated as under:

1) C – CAPITAL ADEQUACY
2) A – ASSET QUALITY
3) M – MANAGEMENT
4) E – EARNINGS QUALITY
5) L – LIQUIDITY

23
1) C – CAPITAL ADEQUACY

Capital adequacy is stipulated by Bank for International Settlements

(BIS) at Basle to ensure that the banks have enough capital to absorb losses
from assets which turn bad. The norms are fixed as a percentage of risk
weighted assets i.e. assets are, weighted on the basis of the risk involved in
their realisation. For example, cash is given a risk weightage of 0% and higher
weightage for assets secured by goods, mortgage etc. In India Narasimham
Committee recommendations have stipulated that Indian Banks particularly
those with International Presence must have a capital adequacy of 8%. Capital
adequacy reflects the overall financial condition of the banks and also the
ability of the management to meet the need for additional capital. It includes
the following

1) Capital Adequacy Ratio

2) Debt – Equity Ratio
3) Advances to Assets
4) G – Secs to Total Investment

24
1) Capital Adequacy Ratio (CAR) or Capital to Risk Assets Ratio
(CRAR):

As per the latest RBI norms, banks in India should have a CAR of 9%. It is arrived at
by dividing the Tier I and Tier II capital by risk weighted assets. Tier I capital includes
equity capital and free reserves. Tier II capital comprises sub-ordinated debt of 5-7 year
tenure.

CAR = Capital Funds / Risk Weighted Assets X 100

Calculation of Capital Adequacy Ratio of Raj Bank

As on As on As on As on As on
PARTICULARS
31/3/2003 31/3/2004 31/3/2005 31/03/2006 31/03/2007
CAPITAL
358,823,578 355,677,836 377,269,046 387,621,848 654,319,564
FUNDS
RISK
WEIGHTED 1,171,521,435 1,216,129,469 1,554,598,802 1,830,851,543 2,456,154,520
ASSETS

RATIO 30.63 29.25 24.27 21.17 26.64

35.00
Interpretation of the Capital Adequacy Ratio

The minimum CAR as per RBI norms is 9 % at Present. In fact, Raj Bank has always

3
shown a healthy and improved margin of over 9 % which is stipulated by RBI, in the year
2002 – 2003 CAR is of 30.63 %. But from the year 2003 – 2004, it seems to decline in CAR
gradually to 29.25 % in 2003 - 2004 up to 21.17 % in 2005 – 2006. This is due to steady rise

25

30.00
in the Risk Weighted Assets. The main reason for the rise in Risk Weighted Assets and
decline in CAR is constant increase in advances over the last few years. Now, it’s looks to
improve as years passes.

26
2) Debt – Equity Ratio:

Debt-Equity ratio is arrived at by dividing Total borrowings and

Deposits by Net Worth. Net Worth includes equity capital, preference capital,
reserves and surplus less revaluation reserves and miscellaneous expenses not
written off.

Debt-Equity Ratio = Debt / Equity

Calculation of Debt – Equity Ratio of Raj Bank

As on As on As on As on As on
PARTICULARS
31/3/2003 31/3/2004 31/3/2005 31/03/2006 31/03/2007
DEBT 2,113,556,145 2,617,481,094 2,864,094,335 3,362,600,873 3,891,989,283
EQUITY 386,494,929 455,068,711 500,173,019 563,578,548 744,319,564

RATIO 5.47 5.75 5.73 5.97 5.23

6.20
Interpretation of the Debt – Equity Ratio

Deposits form a major portion of liabilities for banks and are included in
the debt component of the debt – equity ratio. A debt – equity ratio of 50 times
is considered healthy for banks. Ratios of Raj Bank are below 50 times, which
is much below the acceptable limit and, therefore, has scope to increase the
debt component on their capital structure.

6.00 27
3) Advances to Assets:

Total Advances also includes receivables. The value Total Assets is

excluding revaluation of all the assets.

Advances to Assets = Total Advances / Total assets

Calculation of Advances to Assets of Raj Bank

As on As on As on As on As on
PARTICULARS
31/3/2003 31/3/2004 31/3/2005 31/03/2006 31/03/2007
1,667,592,11
ADVANCES 914,974,465 1,120,389,619 1,421,177,106
7
2,181,947,347

ASSETS 56,209,726 74,232,950 81,579,900 88,579,119 177,973,776

RATIO 16.28 15.09 17.42 18.83 12.26

20.00
Interpretation of the Advances to Assets

This ratio shows the total advances as a percentage of total assets, which
can give the capital adequacy of the firm. It shows the ability of firm to meet

18.00
capital need. Here, we see that Raj Bank has maintaining constant percentage
of advances to assets for last 4 years but in this year 2006 – 2007 it has

1
decrease by 1/3 almost.

28

16.00
 4) G – Secs to Total Investments:

The ratio is calculated by dividing the amount invested in government

securities by total investments.

G – Secs to Total Investments = G-Secs / Total Investments X 100

Calculation of G – Secs to Total Investments of Raj Bank

As on As on As on As on As on
PARTICULARS
31/3/2003 31/3/2004 31/3/2005 31/03/2006 31/03/2007
G – SECS. 447,050,000 659,110,500 1,081,788,000 1,325,595,500 1,172,980,500
INVESTMENTS 532,117,500 718,785,000 1,086,462,500 1,337,770,000 1,200,149,970

RATIO 84.01 91.70 99.57 99.09 97.74

105.00
Interpretation of the G – Secs to Total Investments

G – Secs to investments indicate the percentage of risk free investments

in banks’ investment portfolio. Since government securities are risk free, the
higher the G – Secs to investments ratio the lower the risk involved in bank
investments. The calculation indicates that Raj bank has shown a stable rise in
G – Secs investments and therefore it has less risk involved in bank’s
ent

investments.

100.00 29
2) A – ASSET QUALITY

The prime motto behind measuring the asset quality is to ascertain the
quality of assets and majority of ratios in this segment are related to non-
performing assets i.e. NPA. A credit facility is treated as past due when it
remains outstanding for 30 days beyond the due date. An NPA is defined
generally as a credit facility in respect of which interest or instalment of
principal is in arrears for two quarter or more. This segment contain following
ratio

1) Gross NPAs to Total Assets

2) Gross NPAs to Net Advances
3) Total Investments to Total Assets
4) Percentage Change in Gross NPAs

30
1) Gross NPAs to Total Assets:

Gross NPAs are gross provisions on NPAs and Total Assets considered
are net of revaluation reserves.

Gross NPAs to Total Assets = Gross NPAs / Total Assets X 100

Calculation of Gross NPAs to Total Assets of Raj Bank

As on As on As on As on As on
PARTICULARS
31/3/2003 31/3/2004 31/3/2005 31/03/2006 31/03/2007
GROSS NPAs 2,289,000 2,919,217 4,835,162 2,150,849 2,362,836
ASSETS 56,209,726 74,232,950 81,579,900 88,579,119 177,973,776

RATIO 4.07 3.93 5.93 2.43 1.33

7.00
Interpretation of the Gross NPAs to Total Assets

The quality of loan is one of the crucial aspects of that decide the health
of banks. This ratio indicates the percentage of gross NPAs to total assets.
Ratio does not give any tolerable or desirable limit. But it should be below 10
%. Going by this norm, the Raj bank has their entire ratio below 10 % which
shows that it has the lowest gross NPAs in relation to their total assets.
sets

6.00 31
2) Gross NPAs to Net Advances:

Net Advances are net of bills rediscounted and specific loan loss
provision.

Gross NPAs to Net Advances = Gross NPAs / Net Advances X 100

Calculation of Gross NPAs to Net Advances of Raj Bank

As on As on As on As on As on
PARTICULARS
31/3/2003 31/3/2004 31/3/2005 31/03/2006 31/03/2007
GROSS NPAs 2,289,000 2,919,217 4,835,162 2,150,849 2,362,836
NET
914,974,465 1,120,389,619 1,421,177,106 1,667,592,117 2,181,947,347
ADVANCES

RATIO 0.25 0.26 0.34 0.13 0.11

0.40
Interpretation of the Gross NPAs to Net Advances

Gross NPAs as a percentage of net advances is most standard measure of

asset quality. A ratio of below 1 % is considered as a tolerable limit. The gross
NPAs of bank stand below 1 % to net advances. Net NPAs in relation to net
nces

advances continue to remain at “ZERO” level for the last 15 years and it

0.35
become one of the only bank across the nation which has lowest level of gross

32
NPAs. Hence from this ratio only we can say that asset quality of Raj Bank is
of high-quality.

33
3) Total Investments to Total Assets:

This ratio is used as a tool to measures the percentage of total assets

locked up in investments.

Total Investments to Total Assets = Total Investments / Total Assets

Calculation of Total Investments to Total Assets of Raj Bank

As on As on As on As on As on
PARTICULARS
31/3/2003 31/3/2004 31/3/2005 31/03/2006 31/03/2007
INVESTMENTS 532,117,500 718,785,000 1,086,462,500 1,337,770,000 1,200,149,970
ASSTES 56,209,726 74,232,950 81,579,900 88,579,119 177,973,776

RATIO 9.47 9.68 13.32 15.10 6.74

16.00
Interpretation of the Total Investments to Total Assets

Total investments to total assets indicate the extent of deployment of

assets in investments as against advances. The higher level of investment
Assets

indicates the lack of credit off-take in the market. The Raj Bank has higher
investments in risk free securities which shows the lack of credit off-take and

14.00
further confirms the aggressive strategy in the disbursal of advances.

34
4) Percentage Change in Gross NPAs:

This measure gives the movement in Gross NPAs on year-on-year basis.

Percentage Change in Gross NPAs = Change in Gross NPAs /

Gross NPAs at beginning X 100

Calculation of Percentage Change in Gross NPAs of Raj Bank

As on As on As on As on As on
PARTICULARS
31/3/2003 31/3/2004 31/3/2005 31/03/2006 31/03/2007
CHANGE IN
820,000 630,217 1,915,945 - 2,684,313 211,987
GROSS NPAs
GROSS NPAs AT
1,469,000 2,289,000 2,919,217 4,835,162 2,150,849
BEGINNING

% CHANGE IN
55.82 27.53 65.63 - 55.52 9.86
NPAs

80.00
Interpretation of the Percentage Change in Gross NPAs

This ratio shows the percentage of increase or decrease in the Gross

NPAs in the firm. From the ratio of Raj Bank it can be said that the gross NPAs
is increasing progressively to 65.63 in 2004 – 2005, which is not the sign that
each one is anticipated but it is increase because of the expansion of business
over a year. But in 2005 – 2006 gross NPAs has been reduced to -55.52 which

60.00 35
5
s
indicate great sign and stand ahead in the lowest gross NPAs level which is
great sign of evolution.

36
3) M – MANAGEMENT

Management is the most important ingredient that ensures sound

functioning of banks. With increased competition in the Indian banking sector,
efficiency and effectiveness have become the rule as banks constantly strive to
improve the productivity of their employees. The major improvements in the
style of management and productivity have come about in the all sectors of
banks. Today, it is not uncommon to see the extended working hours, flexible
time schedules, outsourcing marketing, etc. to attract and retain customers. The
parameters used to assess the quality of management gives the measurement of
the efficiency and effectiveness of management. The ratios of this segment are:

1) Total Advances to Total Deposits

2) Gross Profit Per Employee
3) Net Profit Per Employee
4) Business Per Employee
5) Return on Net Worth

37
1) Total advances to Total Deposits:

This ratio measures the efficiency of the management in converting

deposits into advances. Total deposits include demand deposits, saving
deposits, term deposits and deposits of other banks. Total advances also include
the receivables.

Total advances to Total Deposits = Total advances / Total Deposits X 100

Calculation of Total advances to Total Deposits of Raj Bank

As on As on As on As on As on
PARTICULARS
31/3/2003 31/3/2004 31/3/2005 31/03/2006 31/03/2007
ADVANCES 914,974,465 1,120,389,619 1,421,177,106 1,667,592,117 2,181,947,347
DEPOSITS 2,113,556,145 2,617,481,094 2,864,094,335 3,362,600,873 3,891,989,283

RATIO 43.29 42.80 49.62 49.59 56.06

60.00
Interpretation of the Total advances to Total Deposits

As it said above it measures the efficiency of the management in

converting deposits into advances. Over the last few years Raj Bank
osits

persistently convert deposits into advances, this can be analysed from the chart
shown above.

38

50.00
2) Gross Profit per Employee:

It is arrived at by dividing the Gross profit earned by the bank by total

number of employees. Higher the ratio, higher the efficiency of management.

Gross Profit per Employee = Gross Profit / No. of Employee

Calculation of Gross Profit per Employee of Raj Bank

As on As on As on As on As on
PARTICULARS
31/3/2003 31/3/2004 31/3/2005 31/03/2006 31/03/2007
GROSS PROFIT 77,948,410 80,506,740 81,042,997 81,574,445 106,570,355
NO. OF
109 115 124 124 126
EMPLOYEE

GROSS PROFIT
715,123.03 700,058.61 653,572.56 657,858.43 845,796.47
PER EMPLOYEE

900,000.00
Interpretation of the Gross Profit per Employee

The gross profit per employees of Raj Bank decreases during the year
2004 – 2005 i.e. of Rs.653,572.56 relates to the past couple of year i.e. 2003 –
2004 of Rs.700,058.61 and 2002 – 2003 of Rs.715,123.03 which increases

800,000.00
gradually in 2006 – 2007 to Rs.845,796.47. A picture that show’s us a high
efficiency of the management of the Raj Bank.
yee

39
3) Net Profit per Employee:

It is arrived at by dividing the PAT earned by the bank by total number

of employees. Higher the ratio, higher the efficiency of management.

Net Profit per Employee = Net Profit / No. of Employee

Calculation of Net Profit per Employee of Raj Bank

As on As on As on As on As on
PARTICULARS
31/3/2003 31/3/2004 31/3/2005 31/03/2006 31/03/2007
NET PROFIT 24,589,408 27,081,504 27,706,018 28,037,137 32,477,112
NO. OF
109 115 124 124 126
EMPLOYEE

NET PROFIT PER

225,590.90 235,491.34 223,435.63 226,105.95 257,754.85
EMPLOYEE

270,000.00
Interpretation of the Net Profit per Employee

The net profit per employee ratio of Raj Bank remains constant of the
last few years which show the effective management of the bank which can be
observe from the chart and the figures quoted above.

260,000.00
40
ee
4) Business per Employee:

It is arrived at by dividing total business by total number of employees.

Business includes the sum total advances and deposits in a particular year.

Business per Employee = Total Business / No. of Employee

Calculation of Business per Employee of Raj Bank

As on As on As on As on As on
PARTICULARS
31/3/2003 31/3/2004 31/3/2005 31/03/2006 31/03/2007
3,028,530, 3,737,870, 4,285,271, 5,030,192, 6,073,936,
BUSINESS 611 713 441 989 630
NO. OF 1 1
EMPLOYEE 109 115 124 24 26

BUSINESS PER
27,784,684.50 32,503,223.59 34,558,640.65 40,566,072.49 48,205,846.27
EMPLOYEE

60,000,000.00
Interpretation of the Business per Employee

Business per employee indicates the labour productivity of long term

viability of the bank. From the figures and chart shown above we see that the
business per employee of Raj Bank increases from Rs. 27,784,684.50 in 2002 –
2003 to Rs. 48,205,846.27 in 2006 – 2007. in between the period there is a
steady rise in the business per employee.

41

50,000,000.00
e
42
5) Return on Net Worth (RONW):

It is a measure of the profitability of a company. PAT is expressed as a

percentage of Average Net Worth.

RONW = Net Profit / Net Worth X 100

Calculation of Return on Net Worth (RONW) of Raj Bank

As on As on As on As on As on
PARTICULARS
31/3/2003 31/3/2004 31/3/2005 31/03/2006 31/03/2007
NET PROFIT 24,589,408 27,081,504 27,706,018 28,037,137 32,477,112
NET WORTH 386,494,929 455,068,711 500,173,019 563,578,548 744,319,564

RATIO 6.36 5.95 5.54 4.97 4.36

7.00
6
Interpretation of the Return on Net Worth (RONW)

This ratio expresses the net profit in terms of net worth. This ratio is an
important yardstick of performance for equity shareholders since it indicates
the return on the funds employed by them. As we see that the net worth of the
Raj bank increases and the net profit averagely remain same, the RONW goes
down but than also Raj Bank maintained the dividend pay of 15 % for the last
15 years.
6.00
43
h
4) E – EARNINGS QUALITY

Investing additional funds forms an important part of the banking

function along with lending. In the recent past, banks have been criticized for
making most of their money from treasury operation and other investment
rather than from core lending operation. Even as fee-based operations still
account for a minority of the banks’ revenues, the share of non-interest income
is higher. The ratio of this section, assesses the quality of income in terms of
income generated by core activities i.e., income from lending operations. This
segment contains the following;

1) Operating Profit by Average Working Fund

2) Net Interest Margin
3) Net Profit to Average Assets
4) Percentage Growth in Net Profit
5) Non Interest Income to Total Income
6) Interest Income to Total Income

44
1) Operating Profit by Average Working Funds:

This ratio gives return on total assets employed on a daily basis.

Working funds is the daily average of the total assets during the year.

Operating Profit by Average Working Funds = Operating Profit /

Average Working Funds X 100

Calculation of Operating Profit by Average Working Funds of Raj Bank

As on As on As on As on As on
PARTICULARS
31/3/2003 31/3/2004 31/3/2005 31/03/2006 31/03/2007
OPERATING
77,948,410 80,506,740 81,042,997 81,574,445 106,570,355
PROFIT
AVERAGE
WORKING 2,359,640,000 2,810,263,000 3,242,340,000 3,673,029,000 4,334,346,000
FUNDS

RATIO 3.30 2.86 2.50 2.22 2.46

3.50
Interpretation of the Operating Profit by Average Working Funds

The average ratio of operating profit as a percentage of average working

rking

funds for Raj bank is 2.22 in 2005 – 2006 which is decreased continuously
from 2002 – 2003 i.e. of 3.30 and stable around 2.00 to 2.50 . This is an

45

3.00
encouraging trend. The income is fund based it comes from investments rather
than advances.

46
2) Net Interest Margin (NIM):

It is arrived at by dividing Spread by Total Earning Assets. Spread is the

difference between the interest income and interest expended as a percentage of
Total Assets. Interest income includes dividend income. Interest expanded
includes interest paid on deposits, loans from RBI, and other short-term and
long-term loans.

NIM = Spread / Total Earning Assets X 100

Calculation of Net Interest Margin (NIM) of Raj Bank

As on As on As on As on As on
PARTICULARS
31/3/2003 31/3/2004 31/3/2005 31/03/2006 31/03/2007
SPREAD 79,675,173 81,845,701 85,588,622 108,237,975 155,547,063
EARNING
2,169,456,628 2,417,899,097 2,897,848,268 3,612,933,663 3,997,253,028
ASSETS

NET INTEREST
3.67 3.38 2.95 3.00 3.89
MARGIN (NIM)

4.50
Interpretation of the Net Interest Margin (NIM)

Net interest margin of Raj bank is also shows a steady decrease. The efficient
and prudent asset liability management enables the bank to maintain the interest
spread. The net interest margin in 2004 – 2005 is 2.95 from that of 3.67 in 2002 –
2003 which again taken the momentum and reach to 3.89 in 2006 -2007.

4.00 47

3
3) Net Profit to Average Assets:

This ratio measures return on assets employed or the efficiency in

utilization of the assets. It is arrived at by dividing the Net Profit by Average
Assets, which is the average of total assets in the current year and previous
year.

Net Profit to Average Assets = Net Profit / Average Assets

Calculation of Net Profit to Average Assets of Raj Bank

As on As on As on As on As on
PARTICULARS
31/3/2003 31/3/2004 31/3/2005 31/03/2006 31/03/2007
NET PROFIT 24,589,408 27,081,504 27,706,018 28,037,137 32,477,112
AVG. ASSETS 56,075,500 65,221,338 77,906,425 85,079,509 133,276,447

RATIO 43.85 41.52 35.56 32.95 24.37

50.00
Interpretation of the Net Profit to Average Assets

The profitability of the firm is measured by establishing relation of net

profit with the total assets of the organisation. This indicates the efficiency of

45.00
utilisation of assets in generating revenue. The Raj Bank over the last couple of
48
4
ts
years not able to utilise their assets as effectively as they where in the past
years, which can be seen from the chart and figures arrived on.

49
4) Percentage Growth in Net Profit:

It is percentage change in net profit form last year. It arrived by dividing

changes in net profit by net profit at beginning.

Percentage Growth in Net Profit = Changes in Net Profit /

Net Profit at Beginning X 100

Calculation of Percentage Growth in Net Profit of Raj Bank

As on As on As on As on As on
PARTICULARS
31/3/2003 31/3/2004 31/3/2005 31/03/2006 31/03/2007
CHANGE IN NET
2,397,127 2,492,096 624,514 331,120 4,439,974
PROFIT
NET PROFIT AT
22,192,281 24,589,408 27,081,504 27,706,018 28,037,137
BEGINNING

% GROWTH IN
10.80 10.13 2.31 1.20 15.84
NET PROFIT

18.00
Interpretation of the Percentage Growth in Net Profit

The percentage growth in net profit for Raj Bank in 2005 – 2006 is only
of 1.20 relates to the other preceding years i.e. of 10.13 in 2003 – 2004 and of
10.80 in 2002 – 2003. This shows that the net profit is decreases comparatively

16.00 50
very highly but it has U –turn in 2006 – 2007 reaches 15.84 which give the
enormous quality of earnings of the bank.

51
5) Non – Interest Income / Total Income:

This measures the income from operations, other than lending as a

percentage of total income. Non-interest income is the interest income earned
by the banks excluding income on advances and deposits with RBI.

Non – Interest Income / Total Income = Non – Interest Income /

Total Income X 100

Calculation of Non – Interest Income / Total Income of Raj Bank

As on As on As on As on As on
PARTICULARS
31/3/2003 31/3/2004 31/3/2005 31/03/2006 31/03/2007
NON - INTEREST
37,649,755 41,584,896 44,686,846 24,275,592 22,514,608
INCOME
TOTAL INCOME 299,461,834 312,897,488 326,646,329 327,440,588 398,858,078

RATIO 12.57 13.29 13.68 7.41 5.64

16.00
Interpretation of the Non – Interest Income / Total Income

It expresses the income from operations as a percentage of total income.

The main sources of income of Raj Bank is in advances and deposits that’s
why the non-interest income of Raj Bank is averagely only 10.52 .i.e. 11.00
approximately. Thus the income source or earning source of Raj Bank is on the

14.00
amount of deposits with RBI and advances.
tal

52
6) Interest Income / Total Income:

This ratio measures the income from lending operations as a percentage

of total income generated by the banks in a year. Interest income includes
income on advances, interest on deposits with RBI.

Interest Income / Total Income = Interest Income / Total Income X 100

Calculation of Interest Income / Total Income of Raj Bank

As on As on As on As on As on
PARTICULARS
31/3/2003 31/3/2004 31/3/2005 31/03/2006 31/03/2007
INTEREST
262,136,677 271,689,840 282,662,020 303,164,996 376,343,471
INCOME
TOTAL INCOME 299,461,834 312,897,488 326,646,329 327,440,588 398,858,078

RATIO 87.54 86.83 86.53 92.59 94.36

96.00
Interpretation of the Interest Income / Total Income

This ratio expresses the income from lending operations. It mainly

generates from the deposits and advances. The Raj Bank main income source is
come

from lending operation which shows the average income of about 89 %

Approx. of total income.

94.00 53
5) L – LIQUIDITY

The business of banking is all about borrowing and lending money.

Timely repayment of deposits is of crucial importance to avoid a run on a bank.
With co-operative banks going under frequently and with the recent collapse of
GTB (Global Trust Bank) investors have become extremely sensitive. They are
alert; they rush to the bank to withdraw money at the slightest hint of trouble.
In such a scenario, even false rumours could wreck havoc with a bank. Hence,
banks have to ensure that they always maintain enough liquidity. Through
mandatory Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR),
RBI ensures that banks maintain ample liquidity. In fact, over the last few years
banks have been awash with liquidity. It contains the following;

1) Liquid Assets to Demand Deposits

2) Liquid Assets to Total Deposits
3) Liquid Assets to Total Assets
4) G – Secs to Total Assets
5) Approved Secs to Total Assets

54
1) Liquid Assets / Demand Deposits:

This ratio measures the ability of a bank to meet demand from demand
deposits in a particular year. Liquid assets include cash in hand, balance with
RBI, balance with other banks (both in India and abroad), and money at call
and short notice.

Liquid Assets / Demand Deposits = Liquid Assets / Demand Deposits

Calculation of Liquid Assets / Demand Deposits of Raj Bank

As on As on As on As on As on
PARTICULARS
31/3/2003 31/3/2004 31/3/2005 31/03/2006 31/03/2007
LIQUID
1,019,276,048 1,180,022,630 802,030,048 860,865,769 1,153,812,999
ASSETS
DEMAND
174,658,280 299,597,880 303,278,169 393,986,232 511,499,804
DEPOSITS

RATIO 5.84 3.94 2.64 2.19 2.26

7.00
Interpretation of the Liquid Assets / Demand Deposits
osits

Liquid assets as a percentage of demand deposits are one of the most

important measures of the liquidity position of the bank. In the case of Raj

6.00
55
5
Bank, the ratios indicate that liquid assets are able to meet demand for demand
deposits. Thus it indicates better liquidity situation.

56
2) Liquid Assets / Total Deposits:

Liquid assets are measured as a percentage of Total Deposits. Liquid

Assets include cash in hand, balance with RBI, balance with other banks (both
in India and abroad), and money at call and short notice. Total Deposits include
demand deposits, saving deposits, term deposits and deposits of other financial
institutions.

Liquid Assets / Total Deposits = Liquid Assets / Total Deposits X 100

Calculation of Liquid Assets / Total Deposits of Raj Bank

As on As on As on As on As on
PARTICULARS
31/3/2003 31/3/2004 31/3/2005 31/03/2006 31/03/2007
LIQUID
1,019,276,048 1,180,022,630 802,030,048 860,865,769 1,153,812,999
ASSETS
DEPOSITS 2,113,556,145 2,617,481,094 2,864,094,335 3,362,600,873 3,891,989,283

RATIO 48.23 45.08 28.00 25.60 29.65

60.00
Interpretation of the Liquid Assets / Total Deposits

Liquid assets as a percentage of total deposits measures of the liquidity

position of the bank to meet the amount of total deposits. As we see above that
sits

57
liquidity situation of Raj Bank is quite good, they can cope up with the total
deposits which can be seen from the above chart and figures.

58
3) Liquid Assets / Total Assets:

Liquid Assets as measured as percentage of Total Assets.

Liquid Assets / Total Assets = Liquid Assets / Total Assets

Calculation of Liquid Assets / Total Assets of Raj Bank

As on As on As on As on As on
PARTICULARS
31/3/2003 31/3/2004 31/3/2005 31/03/2006 31/03/2007
LIQUID
1,019,276,048 1,180,022,630 802,030,048 860,865,769 1,153,812,999
ASSETS
ASSETS 56,209,726 74,232,950 81,579,900 88,579,119 177,973,776

RATIO 18.13 15.90 9.83 9.72 6.48

20.00
1
Interpretation of the Liquid Assets / Total Assets

Liquid assets as a percentage of total assets measures of the liquidity

position of the bank to meet the amount of total assets. We have seen above

18.00
that liquidity situation of Raj Bank is quite good; that’s why they are able to
meet with the total assets shown in the above chart.
ssets

59

16.00
4) G – Secs / Total Deposits:

This ratio measures the proportion of risk free liquid assets invested in
G-Secs as a percentage of the assets held by a bank and is arrived at by
dividing investment in government securities by total assets.

G – Secs / Total Deposits = G – Secs / Total Deposits

Calculation of G – Secs / Total Deposits of Raj Bank

As on As on As on As on As on
PARTICULARS
31/3/2003 31/3/2004 31/3/2005 31/03/2006 31/03/2007
G – SECS. 447,050,000 659,110,500 1,081,788,000 1,325,595,500 1,172,980,500
DEPOSITS 56,209,726 74,232,950 81,579,900 88,579,119 177,973,776

RATIO 7.95 8.88 13.26 14.97 6.59

16.00
Interpretation of the G – Secs / Total Deposits

The risk free liquid assets invested by Raj Bank in G – Secs as a

percentage of assets held by the bank is increasing daily as the investment in
the G – Secs increases, this increase is 14.97 in 2005 – 2006 from that of 7.95
in 2002 – 2003. The chart shows the increasing figures over the years which

14.00
suddenly decrease almost half i.e. to 6.59 in 2006 – 2007.

60
ts
5) Approved Securities / Total Assets:

Approved securities are investments made in state-associated bodies like

electricity boards, housing boards, corporation bonds and shares of regional
rural banks.

Approved Securities / Total Assets = Approved Securities / Total Assets X 100

Calculation of Approved Securities / Total Assets of Raj Bank

As on As on As on As on As on
PARTICULARS
31/3/2003 31/3/2004 31/3/2005 31/03/2006 31/03/2007
APPROVED
17,500,000 15,000,000 - - -
SECURITIES
ASSETS 56,209,726 74,232,950 81,579,900 88,579,119 177,973,776

RATIO 31.13 20.21 - - -

35.00
Interpretation of the Approved Securities / Total Assets

Investment in approved securities as a percentage of total assets shows a

decreasing trend in the Raj Bank as they started to invest more on the 3
ssets

government securities which are becoming less risky securities now-a-days

than that of approved securities. The figure in 2002 – 2003 is 31.13 which

30.00 61
gradually decrease as shown in the figures stated above and reach to NIL for
the past couple of year.

62
 CONCLUSION & FINDINGS

More analysis is of no use unless some conclusion is derived from it. On

the basis of ratio analysis one can get an overall idea of the profitability
position of the firm. The following conclusion has been arrived at on the basis
of ratio analysis of the Raj Bank.

1. Capital Adequacy

Raj Bank has always maintained the healthy and stable margin of ratios
in this segment. Then also they are not increasing the debt components in their
capital structure. Although the bank is able to taps the market and went ahead
with their equity offering. This inherent strength of the bank is evident in their
capital structure.

2. Asset Quality

Raj Bank has continue to maintain the “Zero” level in Net NPAs to Net
Advances for last 15 years and it become the only bank having the lowest
Gross NPAs level across the nation, these shows that the asset quality of the
bank is too much sound.

3. Management

From the ratio it can be observed that the management of the Raj Bank
varies widely. Even though there is a decrease in their gross profit per
employee with the increase in the employee but than also there is great
combined effort of employee which has shown the effective and efficient
management of Raj Bank which can be noted from their dividend declaration
of 15 % for last 15 years to their equity shareholders.

63
4. Earning Quality

Raj Bank has increased their investment in total SLR and Non-SLR as
per RBI norms. This also shows that effective utilisation of investment is their,
as their investment is in risk free securities which help them to concentrate over
their lending.

5. Liquidity

Liquidity shows the ability of the firm to meet its current obligation
when they become due for payment. The liquidity position of Raj Bank is too
strong to meet their obligations. Raj Bank has efficiently maintained their
liquidity position for last few years.

Perhaps, more important is the innovative spirit of Raj Bank that turns
challenges into opportunities over the last 25 year of their performance. These
gives the competent and willingness to scale the new height in the years to
come.

64
 BIBLIOGRAPHY

The following books and magazines become very useful to me for

acquiring knowledge regarding various topics relating to the preparation of my
project work both comprehensive & precise.

Books:

Sr. Name of the

Name of the Book Publication
No. Author
Dr. M.M.Varma
1. Banking Law & Practice King Books
R.K.Agarwal
Dr. M.M.Varma
2. Finance Management King Books
R.K.Agarwal
Cost Accounting & Financial
3. Taxmann’s Ravi M. Kishore
Management
Wishwa
4. Research Methodology C.R.Kothari
Prakashan

Web Site: www.Raj Bank.net

Magazines & Journals:

• Analyst ( Issue November, 2004 )
• The Chartered Accountant ( Issue February, 2005 Volume 53 No.8 )
• Indian Journal of Accounting { Issue June, 2005 Volume XXXV (2) }
• Annual Report of Raj Bank ( Last five year i.e. from Financial Year
2002-2003 to 2006-2007)

65