Ratio Analysis of Punjab National Bank

CD Ratio
It is the ratio of how much a bank lends out of the deposits it has mobilized. It indicates how
much of a bank's core funds are being used for lending, the main banking activity. A higher ratio
indicates more reliance on deposits for lending and vice-versa, according to ratio table CDR has
decreased in F.Y. 2013 and 2014 because of bank has investment, and bank contingent liabilities
and provisions has also increased in these years.

Return on Assets Excluding Revaluations

An indicator of how profitable a company is relative to its total assets. ROA provides an idea of
how efficientmanagement is at using its assets to generate earnings. On the table we saw that the
return on assets ratio is increasing in continuous year, so we can say the bank utilized their assets
to earn more profit.






Mar '14 Mar '13 Mar '12 Mar '11 Mar '10
Credit Deposit Ratio 41.84 38.1 77.39 76.25 74.34


Net Profit / Total Funds 0.65 1.01 1.17 1.32 1.45
Dividend Payout Ratio Net Profit 10.83 13.51 15.27 15.72 20.74
Earnings Per Share 92.32 134.31 144 139.94 123.86
Capital Adequacy Ratio 12.29 12.72 12.63 12.42 14.16
Return on Assets Excluding Revaluations 991.39 924.45 820.13 678.91 514.77
Return on Net Worth(%) 9.31 14.52 17.55 20.61 24.06
Dividend Per Share 10 27 22 22 22
Dividend per Share

DPS, is the annual dividends paid divided by the number of shares outstanding.
On above table, Dividend per share drastically decreasing in mar14, due to banks investment is
increased and also increased the contingence liability and provisions.

Dividend Payout Ratio Net Profit

The percentage of earnings paid to shareholders in dividends. As there is no big difference in
DPR in the following year, there is slightly decrease in year 13 and 14.

Earnings per Share

The portion of a company's profit allocated to each outstanding share of common stock. Earnings
per share serves as an indicator of a company's profitability. In Mar 14, the EPS of the bank is
decreased, due to increase in investment, contingence or provision liability and decrease in their
profitability.

Capital Adequacy Ratio

A measure of a bank's capital. It is expressed as a percentage of a bank's risk weighted credit
exposures. Currently, RBI mandates minimum CRAR of 9%, but the Government of India has
mandated total CRAR of 12%, As the bank maintain their CAR around 12%.

Net Profit / Total Funds

AS on above table, net profit /total funds decreasing in continuous year .As their expenses
increases therefore net profit decrease.


Return on Net Worth(%)

Return On Net Worth (RONW) describes the portion of net income that is eventually returned as
a percentage of the equity held by shareholders in a company. This particular calculation makes
it easier to understand how much profit the business is generating with the investments provided
by the shareholders. Due to increase in investment and contingence liability or provisions.