It can be observe from the above graph that the current ratio of the bank moves 5.36to 2.

90 during the study perform from 2003-04 to 2007-08.Generally consider satisfactory ratio 2:1 the ratio of bank less than the consider satisfactory ratio, this ratio indicate that the cushion over able to short-term creditors are relatively lower. An average its standards at 2:1 which is less than the consider satisfactory ratio of 2:1 that is every one rupee of current liabilities minimum 2 Rupees are available as margin of set.

B) QUICK RATIO:

Quick Ratio also known as Acid Test or Liquid ratio is a more vigorous quick assets and current Liabilities. Quick ratio can be calculated by dividing the total quick assets by total current liabilities.

QUICK RATIO = QUICK ASSETS / CURRENT LIABILITIES

Usually a high quick ratio is an indication that the company is liquid and has the ability to meet its current or liquidity liabilities in time and on the other hand a low quick ratio represents that the company liquidity position is not good. An

increase in the quick ratio reveals the liquidity position of the company improved.

As a general rule a quick ratio of 1:1 is considered to be satisfactory. But the acceptable ratio for Indian firms may 0.80:1 instead of 1:1.

QUICK ASSETS = CURRENT ASSETS (STOCK+PREPAID EXPENSES)

II.QUICK RATIO:-

YEAR/PARTICULARS 200304 (RS)

200405 (Rs)

200506 (Rs)

200607 (Rs)

200708 (Rs)

QUICK ASSETS

20219 336771 460033 596891 620167

CURRENT LIABILITIES

62553

79995

196540 243873 237560

RATIO

4.48

4.21

2.34

2.45

2.61

RATIO
5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 4.48 4.21

2.34

2.45

2.61

RATIO

(RS) 2003-04

(Rs) 2004-05

(Rs) 2005-06

(Rs) 2006-07

(Rs) 2007-08

Interpretation:
By the above table we can observe the quick ratio of the bank at 2006-07 is 2.45 but idle quick ratio is 1:1. These ratios are used to know the liquidity positions of organizations. The ideal ratio for Quick ratio is 1:1.The above graph shows the changes in quick ratio from the year 2003-04 to 2007-08.In the year 03-04 the quick ratio is 4.48,it is decreased to 4.21 in 2004. In the year 2005-06 it is decreased to 2.34, in the year 2006-07 if we compare with to 05-06 it is increased to increased to 2.61. 2.45, in the year 2007-08 it is

C) DEBT EQUITY RATIO = LONG TERM DEBTS / SHARE HOLDERS FUNDS YEAR/PARTICULARS 200304 (Rs) LONG TERM DEBTS 2951 SHRE HOLDERS FUNDS RATIO 160602 0.02 2004-05 2005-06 2006(Rs) (Rs) 07 (Rs) 3233 1870 2529 183979 0.017 211604 0.008 239850 0.011 200708 (Rs) 12796 302103 0.04

SHARE HOLDERS FUND = SHARE CAPITAL + PREFERENCE SHARES +GENERAL RESERVES