CHAPTER IV

DATA ANALYSIS AND INTERPRETATION

TABLE 4.1

COMPARATIVE BALANCE SHEET ANALYSIS OF YEAR OF 2013-2014

PARTICULAR SBI INCREASE % OF CANAR INCRE % OF

S - INCREA A ASE- INCRE
DECREASE SE BANK DECR ASE
S /DECRE EASES /DECR
ASE EASE
2014 2013 2014 2013
Capital and
liabilities
Total share 746.57 684.03 62.54 8.3 461.26 443.00 18.26 3.9
capital
Equity share 746.57 684.03 62.54 8.3 461.26 443.00 18.26 3.9
capital
Reserves 117,535.6 98,199. 91.5 23,660 22,401.5 1259.0 5.6
8 65 .60 5 5
Net worth 118,282.2 98,883. 19398.57 16.40 24,121 22,844.5 1277.3 5.2
5 68 .86 5 1
Deposits 1,394,408. 1,202,7 191668.94 13.74 420,72 355,855. 64866. 15.41
 51 39.57 2.82 99 83
Borrowings 183,130.8 169,18 13948.17 0.076 27,230 20,283.3 6947. 25.51
8 2.71 .64 7 27
Total debt 1,577,539. 1,371,9 205617.11 13.03 447,95 376,139. 71814. 16.03
39 22.28 3.46 36 1
Other liabilities 96,412.96 95,455. 957.89 0.99 14,348 11,325.4 3022.7 21.06
& provisions 07 .29 5 9
Total liabilities 1,792,234. 1,566,2 225973.57 12.60 486,42 410,309. 76114. 15.64
60 61.03 3.61 36 25
Assets
Cash & 84,955.66 65,830. 19125.25 22.51 22,153 15,405.9 6747.8 43.8
balances with 41 .78 3 5
rbi
Balance with 47,593.97 48,989. 1395.78 2.84 22,674 19,308.7 3366.1 14.84
banks, money at 75 .93 7 6
call
Advances 1,209,828. 1,045,6 164662.17 13.6 301,06 242,176. 58890. 19.56
72 16.55 7.48 62 86
Investments 398,308.1 350,92 47380.92 11.89 126,82 121,132. 5695.4 4.4
9 7.27 8.26 83 3
Gross block 8,002.16 6,595.7 1406.45 17.57 6,641. 2,862.72 3778.8 56.89
1 56 4
Revaluation 0.00 0.00 0 0 5,498. 2,033.24 3465.0 63.0
reserves 25 1
Net block 8,002.16 6,595.7 1406.45 17.57 1,143. 829.48 313.83 27.44
1 31
Other assets 43,545.90 47,892. 4346.13 9.07 12,555 11,455.7 1100.1 8.7
03 .85 3 2
Total assets 1,792,234. 1,566,2 225973.57 12.60 486,42 410,309. 76114. 15.64
60 61.03 3.61 36 25
Contingent 1,091,358. 993,01 98339.92 90.1 239,32 263,705. 24672. 9.35
liabilities 37 8.45 0.37 34 97
Book value (rs) 1,584.34 1,445.6 138.74 8.75 522.96 515.68 7.28 1.39
0

INFERENCE:
The comparative balance sheet of the year 2013-2014 is as follows.
The share capital of the sbi bank is has in the year of 2013-2014 by 8.3 % and canara bank is has
in the year of 2013-2014 by 3.9 % . The net worth of the sbi bank has increased the reserves and
surplus by 91.5% and canara bank has decreased the reserves and surplus by 5.6% .the total
assets of the increased by canara bank is in 15.64 %. And total assets of the decreased by sbi
bank is in 12.60%.the cash position of the company has fluctuating increase or decreases. The
current liability and provisions of the company is fluctuating year after year.

Table 4.2

Comparative balance sheet analysis of year of 2014-2015

SBI INCREA % OF CANA INCRE % OF

SE- INCREA RA ASE- INCRE
DECREA SE/DEC BANK DECRE ASE/DE
 SE REASE ASE CREAS
E
Particulars 2015 2014 2015 2014
Capital and
liabilities
Total share 746.57 746.57 0 0 475.20 461.26 0 0
capital
Equity share 746.57 746.57 0 0 475.20 461.26 0 0
capital
Reserves 127,691.65 117,535. 10137.97 7.93 25,978.1 23,660. 2317.58 8.92
68 8 60
Net worth 128,438.22 118,282. 10155.97 7.90 26,453.3 24,121. 2340.52 8.84
25 8 86
Deposits 1,576,793.24 1,394,40 182384.73 11.56 473,840. 420,72 53117.2 11.20
8.51 10 2.82 8
Borrowings 205,150.29 183,130. 22019.41 10.73 25,671.5 27,230. 1559.07 6.07
88 7 64
Total debt 1,781,943.53 1,577,53 204404.14 11.14 499,511. 447,95 51558.2 10.32
9.39 67 3.46 1
Other liabilities 137,698.05 96,412.9 41285.09 29.98 16,629.6 14,348. 2281.37 13.71
& provisions 6 6 29
Total liabilities 2,048,079.80 1,792,23 255845.2 12.49 542,594. 486,42 56171.1 10.35
4.60 71 3.61
Assets
Cash & 115,883.84 84,955.6 30928.18 26.68 21,971.9 22,153. 181.83 0.82
balances with 6 5 78
rbi
Balance with 58,977.46 47,593.9 11383.49 19.30 26,669.1 22,674. 3994.21 14.97
banks, money at 7 4 93
call
Advances 1,300,026.39 1,209,82 90737.67 6.97 330,035. 301,06 28968.0 8.77
8.72 51 7.48 3
Investments 495,027.40 398,308. 96719.21 19.53 145,346. 126,82 18523.9 12.74
19 18 8.26 2
Gross block 9,329.16 8,002.16 1327 14.22 6,949.45 6,641.5 307.89 4.43
6
Revaluation 0.00 0.00 0 0 5,405.85 5,498.2 92.4 1.68
reserves 5
Net block 9,329.16 8,002.16 1327 14.22 1,543.60 1,143.3 400.29 25.93
1
Other assets 68,835.55 43,545.9 25289.65 36.73 17,028.3 12,555. 4472.43 26.26
0 2 85
Total assets 2,048,079.80 1,792,23 255845.2 12.49 542,594. 486,42 56171.0 10.35
4.60 70 3.61 9
Contingent 1,093,422.51 1,091,35 2064.14 18.8 297,258. 239,32 57938.3 19.49
liabilities 8.37 69 0.37 2
Book value (rs) 172.04 1,584.34 1412.3 89.14 556.68 522.96 33.72 6.0

INFERENCE:
The comparative balance sheet of the year 2014-2015 is as follows.
The depositions of the sbi bank is has in the year of 2014-2015 by 11.56% and canara bank is
has in the year of 2014-2015 by 11.20% . The net worth of the sbi bank has increased the other
liabilities & provisions by 29.98% and canara bank has decreased the other liabilities &
provisions by 13.71 % .the total assets of the decreased by canara bank is in 10.35%. And
total assets of the increased by sbi bank is in 12.49%.. The current liability sbi bank has
decreased the by 18.8% and canara bank has increased the by 19.49% .
 TABLE 4.3

COMPARATIVE BALANCE SHEET ANALYSIS OF YEAR OF 2015-2016

SBI INCREA % OF CANA INCREA % OF

SE- INCREA RA SE- INCREA
DECRE SE/DEC BANK DECRE SE/DEC
ASE REASE ASE REASE
Particulars 2016 2015 2016 2015
Capital and
liabilities
Total share 776.28 746.57 29.71 3.8 542.99 475.20 67.79 12.48
capital
Equity share 776.28 746.57 29.71 3.8 542.99 475.20 67.49 12.48
capital
Reserves 143,498.1 127,691 16328.51 11.37 25,615. 25,978.18 362.63 1.39
6 .65 55
Net worth 144,274.4 128,438 15846.22 10.98 26,158. 26,453.38 294.84 1.1
4 .22 54
Deposits 1,730,722 1,576,7 153929.2 8.89 479,79 473,840.1 5951.46 1.24
.44 93.24 1.56 0
Borrowings 224,190.5 205,150 19040.3 8.49 26,873. 25,671.57 1201.75 4.4
9 .29 32
Total debt 1,954,913 1,781,9 172969.5 8.84 506,66 499,511.6 7153.21 1.41
.03 43.53 4.88 7
Other 159,875.5 137,698 22177.52 13.87 14,692. 16,629.66 1936.96 11.64
liabilities & 7 .05 70
provisions
Total 2,259,063 2,048,0 210983.2 9.33 547,51 542,594.7 4561.38 0.83
liabilities .04 79.80 4 6.12 1
Assets

Cash & 129,629.3 115,883 13745.49 10.60 20,664. 21,971.95 1307.95 5.95
balances with 3 .84 05
rbi
Balance with 37,838.33 58,977. 21139.13 35.84 36,069. 26,669.14 9400.47 2.60
banks, money 46 61
at call
Advances 1,463,700 1,300,0 163674.0 11.1 324,71 330,035.5 5320.69 1.61
.42 26.39 3 4.82 1
Investments 477,097.2 495,027 17930.12 3.62 142,30 145,346.1 3036.88 2.08
8 .40 9.30 8
Gross block 9,819.16 9,329.1 490 4.9 7,198.1 6,949.45 248.65 3.45
6 0
Revaluation 0.00 0.00 0 0 5,444.6 5,405.85 38.81 0.71
reserves 6
Net block 9,819.16 9,329.1 490 4.9 1,753.4 1,543.60 209.84 11.96
6 4
Other assets 140,408.4 68,835. 71572086 50.9 22,004. 17,028.32 4976.57 22.6
1 55 89
Total assets 2,259,063 2,048,0 210883.2 9.33 547,51 542,594.7 4921.41 0.89
.05 79.80 5 6.11 0
Contingent 1,064,167 1,093,4 29254.86 2.67 314,50 297,258.6 17249.87 5.48
liabilities .65 22.51 8.56 9
Book value 185.85 172.04 13.81 7.43 481.75 556.68 74.93 13.46
(rs)

INFERENCE:
the comparative balance sheet of the year 2015-2016 is as follows.
The total share capital of the sbi bank is has decreased in the year of 2015-2016 by 3.8 % and
canara bank is has increased in the year of 2015-2016 by 12.48 % . The net worth of the sbi
bank has increased the other liabilities & provisions by 9.33 % and canara bank has decreased
the other liabilities & provisions by 0.8% .the total assets of the decreased by canara bank is
in 0.89 %. And total assets of the increased by sbi bank is in 9.33%.. The current liability sbi
bank has decreased the by 2.67 % and canara bank has increased the by 5.48% .

TABLE 4.4

COMPARATIVE BALANCE SHEET ANALYSIS OF YEAR OF 2013-2014

 SBI INCRE % OF CANAR INCRE % OF
ASE- INCREA A ASE- INCRE
DECRE SE/DEC BANK DECRE ASE/DE
ASE REASE ASE CREAS
E
Particulars 2017 2016 2017 2016
Capital and
liabilities
Total share 797.35 776.28 21.07 2.64 597.29 542.99 54.3 9.09
capital
Equity share 797.35 776.28 21.07 2.64 597.29 542.99 54.3 9.09
capital
Reserves 155,903. 143,498.16 12404.9 7.95 27,715. 25,615.5 2099.55 7.5
06 10 5
Net worth 156,700. 144,274.44 12425.9 7.92 28,312. 26,158.5 2153.85 7.60
41 7 39 4
Deposits 2,044,75 1,730,722. 314028. 15.35 495,27 479,791. 15483.6 3.12
1.39 44 95 5.24 56 8
Borrowings 317,693. 224,190.59 93503.0 29.43 39,503. 26,873.3 12630.2 31.97
66 7 56 2 4
Total debt 2,362,44 1,954,913. 407532. 17.25 534,77 506,664. 28113.9 5.25
5.05 03 02 8.80 88 2
Other liabilities & 155,235. 159,875.57 4640.38 2.90 15,055. 14,692.7 362.4 2.4
provisions 19 10 0
Total liabilities 2,674,38 2,259,063. 1994682 74.58 578,14 547,516. 30630.1 5.29
0.65 04 .38 6.29 12 7
Cash & balances 127,997. 129,629.33 1631.71 1.27 19,922. 20,664.0 741.55 3.58
with rbi 62 50 5
Balance with 43,974.0 37,838.33 6135.7 13.95 38,902. 36,069.6 2833.35 7.28
banks, money at 3 96 1
call
Advances 1,571,07 1,463,700. 107377. 6.8 342,00 324,714. 17293.9 5.05
8.38 42 96 8.76 82 4
Investments 765,989. 477,097.28 288892. 37.71 150,26 142,309. 7956.59 5.29
63 35 5.89 30
Gross block 42,344.9 9,819.16 32525.8 76.81 7,168.3 7,198.10 29.78 0.41
9 3 2
Revaluation 31,585.6 0.00 31585.6 31.58 5,373.1 5,444.66 71.51 1.31
reserves 5 5 5
Net block 10,759.3 9,819.16 940.18 8.7 1,795.1 1,753.44 41.73 2.32
4 7
Other assets 154,007. 140,408.41 13599.3 8.83 25,251. 22,004.8 3246.13 12.85
72 1 02 9
Total assets 2,674,38 2,259,063. 415317. 15.52 578,14 547,516. 30630.1 5.2
0.65 05 6 6.30 11 9
Contingent 1,112,08 1,064,167. 4791.37 4.30 459,64 314,508. 145138. 31.57
liabilities 1.35 65 6.73 56 17
Book value (rs) 196.53 185.85 10.68 5.4 474.01 481.75 7.74 1.6

INFERENCE:
the comparative balance sheet of the year 2016-2017is as follows.
The total share capital of the sbi bank is has increased in the year of 2016-2017 by 21.07 %
and canara bank is has decreased in the year of 2016-2017by 9.09% . The net worth of the sbi
bank has increased the total liabilities & provisions by 74.58% and canara bank has decreased
the other liabilities & provisions by 5.9 % .the total assets of the decreased by canara bank is
5.2 %. And total assets of the increased by sbi bank is in 15.52%.. The current liability sbi bank
has decreased the by 4.30% and canara bank has increased the by 31.57%
RATIO ANALYSIS

The relationship between two related items of financial statements

is known as ratio. A ratio is just one number expressed in terms of another. The ratio is
customarily expressed in three different ways. It may be expressed as a proportion
between the two figures. Second it may be expressed in terms of percentage. Third, it
may be expressed in terms of rates.The use of ratio has become increasingly popular
during the last few years only.

Originally, the bankers used the current ratio to judge the capacity
of the borrowing business enterprises to repay the loan and make regular interest
payments. Today it has assumed to be important tool that anybody connected with the
business turns to ratio for measuring the financial strength and the earning capacity of the
business.

 Gross nonperforming assets

 Net non performing assets
 Problem assets
 Total provision assets ratio
 Capital adequacy ratio

GROSS NONPERFORMING ASSETS RATIO

Gross NPA Ratio is the ratio of gross NPA to gross advances of the Bank. Gross NPA is the sum
of all loan assets that are classified as NPA as per the RBI guidelines. The ratio is to be counted
in terms of percentage and the formula for GNPA is as follows:

Gross NPA ratio = Gross NPA

*100

Gross advances
TABLE 4.5

GROSS NON PERFORMING ASSETS RATIO

YEARS SBI CANARA BANK

2013 6.2% 6.36%
2014 7.0% 7.3%
2015 8.9 % 6.6%
2016 8.8 % 6.36%
2017 8.1% 5.8%

INTERPRETATION

The above table and graph makes it very clear that the average gross NPA of all the banking
under study is very satisfactory. It is seen that the gross NPA which was 6.36 at canarabank and
6.2 % at SBI in years of 2013 increased the marginally every year and finally reached 7.3 % at
canarabank in 2014 and 8.9 % of the GNPA increased by the SBI compared to the canara bank
which is much lower than the average gross NPA (5.8 %) at canara bank in the years of 2017.. It
goes without saying that the banking are taking good care and following ideal norms of granting
advances, so that the recovery is satisfactory leading to lower gross NPA. It is very encouraging
that the gross NPA ratio in the last three years is very much lower than the average 6.36% at
canara bank in the years of 2013,2015,2016 and very much increase than the average 8.8% at
SBI bank in the years of 2015,2016 and 2017 .
CHART 4.1

GROSS NON PERFORMING ASSETS RATIO

GROSS NON PERFORMING ASSETS

16.00%
14.00% RATIO
12.00% 6.60% 6.36%
percentage of ratio

7.30% 5.80%
10.00% 6.36%
8.00% CANARA BANK
6.00% SBI
8.90% 8.80% 8.10%
4.00% 7.00%
6.20%
2.00%
0.00%
2013 2014 2015 2016 2017
year
NET NON PERFORMING ASSETS RATIO

The net NPA percentage is the ratio of net NPA to net advances, in which the provision is to be
deducted from the gross advance. The provision is to be made for NPA account.

The formula for that is:

NET NON PERFORMING ASSETS RATIO: = Gross Npa- Provision *100

Gross advance –provision

TABLE 4.6

NET NON PERFORMING ASSETS RATIO

YEARS SBI CANARA BANK

2013 3.11% 1.76 %
2014 1.02 % 2.72 %
2015 1.87 % 1.70 %
2016 2.3 % 1.92%
2017 1.9% 1.48%

INTERPRETATION
The above graph presents the net NPA ratio of all the selected banking taken together. it can be
noticed that net NPA ratio has resulted in the five years of study i.e. from 2013-2017.
The net NPA ratio during these years can be ascribed to the high net NPA position of the state
bank of india. The bank had failed to make sufficient provisions against NPA in these years.
however, they succeeded in making provisions and thus they could bring the net NPA ratio is
SBI bank in year of 2013,2014,2015,2016,,2017 through is 3.11%,1.02%,1.87%,2.3 % and 1.9%.
the net NPA ratio of the canara bank in the year 2013,2014,2015,2016,and 2017 is decrease the
ratio from 1.76%, 2.72 %,1.70%,1.92% and 1.48 %improvement of the above bank. it is to be
seen that the position of all other banks has been very good net NPA ratio. It is therefore, evident
that banks have been able to make enough provisions against their gross NPA which is a very
satisfactory position. The management of all these banks have taken enough care in granting
advances and they have been very meticulous in recovering from defaulters. Another observation
is that the above banks have strictly followed the RBI guidelines by making provisions against
NPAS.

CHART 4.6

NET NON PERFORMING ASSETS RATIO

5.00% NET NON PERFORMING ASSETS

4.50%
1.76%
RATIO
PERCENTAGE OF RATIO

4.00%
3.50% 1.92%
3.00%
1.70% 1.48%
2.50% 2.72% CANARA BANK
2.00%
3.11% SBI
1.50%
2.30%
1.00% 1.87% 1.90%
0.50% 1.02%
0.00%
2013 2014 2015 2016 2017
YEAR

PROBLEM ASSETS RATIO

It is the ratio of gross NPA to total asset of the bank. It has been direct bearing on return
on assets as well as liquidity risk management of the bank. The formula for that is:
 PROPLEM ASSETS RATIO: = GROSS NPA *100

TOTAL ASSETS

TABLE 4.7

PROPLEM ASSETS RATIO

YEARS SBI CANARA BANK

2013 4.2% 3.70%
2014 4.74% 4.55%
2015 5.6% 4.04%
2016 5.73% 3.72%
2017 4.76% 3.44%

INTERPRETATION

The Problem assets ratio shows the proportion of Gross NPA to total assets and the table &
graph given above shows that the percentage of all selected banking is SBI and canarabank the
problem assets ration increased from the SBI at 5.73 % from years of 2016 and decreased from
the 4.2% at years of 2013.and average propel assets ratio from SBI at 4.7 % in the years of 20 14
and 2015.The percentage Shown is, however not stable. It was reducing from PA ratio from
canarabank at 2014 and 2015 as 4.55% and 4.05% but it went slightly down in the year
2013,2016,2017 through ratio is 3.70% ,3.72 % and 3.44%. It seems that much attention has
been given by the management to the proportion of Gross NPA and total assets of the bank. The
gross NPA is on the rise due to the increase in advances.

CHART 4.7

PROPLEM ASSETS RATIO

 10.00% PROPLEM ASSETS RATIO
PERCENTAGE OF RATIO 9.00%
8.00% 4.04% 3.72%
7.00% 4.55%
3.44%
6.00% 3.70%
5.00%
4.00% CANARABANK
3.00% 5.60% 5.73% SBI
4.20% 4.74% 4.76%
2.00%
1.00%
0.00%
2013 2014 2015 2016 2017
YEAR

PROVISION ASSETS RATIO

Provisions are to be made for to keep safety against the NPA, & it directly affect on the gross
profit of the Banks. The provision Ratio is nothing but total provision held for NPA to gross
NPA of the Banks.
The formula for that is,

Total Provisions Ratio =Total Provision X 100

Gross NPA
TABLE 4.8

PROVISION ASSETS RATIO

YEARS SBI CANARA BANK

2013 25.78% 19.58%

2014 24.97% 19.67%
2015 22.27% 19.33%
2016 25.69% 48.1%
2017 31.53% 39.11%

INTERPRETATION

The above table and graph makes it very clear that the average total provision ratio of all the
banking under study is very satisfactory. It is seen that the total provision ratio which was
39.11% at canarabank years of 2017 and 25.69 % at SBI in years of 2016 increased the
marginally every year and finally reached 48.1 % at canarabank in 2016 and 31.53% of the total
provision ratio decreased by the SBI compared to the canara bank which is much lower than the
average total provision ratio (19.33%) at canara bank in the years of 2015.. It goes without
saying that the banking are taking good care and following ideal norms of granting advances, so
that the recovery is satisfactory leading to lower total provision ratio. It is very encouraging that
total provision ratio in the last three years is very much lower than the average 19.6% at canara
bank in the years of 2013,2014,2015 and very much increase than the average 25.78% at SBI
bank in the years of 2013,2015 and 2016.

CHART 4.8

PROVISION ASSETS RATIO

80.00% PROVISION ASSETS RATIO

70.00%
PERCENTAGE OF RATIO

60.00%
50.00% 48.10% 39.11%

40.00%
19.58% 19.67%
19.33% CANARABANK
30.00%
SBI
20.00% 31.53%
25.78% 24.97% 22.27% 25.69%
10.00%
0.00%
2013 2014 2015 2016 2017
YEAR
CAPITAL ADEQUACY RATIO

Capital Adequacy Ratio (CAR) is also known as Capital to Risk (Weighted) Assets Ratio
(CRAR), is the ratio of a bank's capital to its risk. National regulators track a bank's CAR to
ensure that it can absorb a reasonable amount of loss and complies with statutory Capital
requirements.

 It is a measure of a bank's capital. It is expressed as a percentage of a bank's risk

weighted credit exposures.
 This ratio is used to protect depositors and promote stability and efficiency of financial
systems around the world.
 Two types of capital are measured: tier one capital, which can absorb losses without a
bank being required to cease trading, and tier two capital, which can absorb losses in the
event of a winding-up and so provides a lesser degree of protection to depositors.

DEFINITION OF 'CAPITAL ADEQUACY RATIO'

Definition: Capital Adequacy Ratio (CAR) is the ratio of a bank's capital in relation to its risk
weighted assets and current liabilities. It is decided by central banks and bank regulators to
prevent commercial banks from taking excess leverage and becoming insolvent in the process.

Description: It is measured as

Capital Adequacy Ratio = (Tier I + Tier II + Tier III (Capital funds)) /Risk weighted assets
The risk weighted assets take into account credit risk, market risk and operational risk.

The Basel III norms stipulated a capital to risk weighted assets of 8%. However, as per RBI
norms, Indian scheduled commercial banks are required to maintain a CAR of 9% while Indian
public sector banks are emphasized to maintain a CAR of 12%.

Capital adequacy ratios (CARs) are a measure of the amount of a bank's core capital expressed as
a percentage of its risk-weighted asset.

CAPITAL ADEQUACY RATIO IS DEFINED AS:

 TIER 1 CAPITAL = (paid up capital + statutory reserves + disclosed free reserves) -

(equity investments in subsidiary + intangible assets + current & brought-forward losses)
 TIER 2 CAPITAL = A) Undisclosed Reserves + B) General Loss reserves + C) hybrid
debt capital instruments and subordinated debts where Risk can either be

weighted assets ({\displaystyle \,a} ) or the respective national regulator's minimum

total capital requirement. If using risk weighted assets,
 The percent threshold varies from bank to bank (10% in this case, a common requirement
for regulators conforming to the Basel Accords) and is set by the national banking
regulator of different countries.

 Two types of capital are measured: tier one capital ({\displaystyle T_{1}} above),
which can absorb losses without a bank being required to cease trading, and tier two
 capital ({\displaystyle T_{2}} above), which can absorb losses in the event of a
winding-up and so provides a lesser degree of protection to depositors

TABLE 4.9

CAPITAL ADEQUACY RATIO

YEARS SBI CANARA BANK

2013 0.04% 0.1%
2014 0.04% 0.09%
2015 0.3% 0.08%
2016 0.03% 0.09%
2017 0.02% 0.10%

INTERPRETATION

The capital adequacy ratio indicates the scope for improvement in NPA. The higher the ratio, the
better is position of recovering the advances. From the above table and graph it is found that
capital adequacy ratio average form the every years of SBI 0.4% and capital adequacy ratio
average form the every years of canara bank 0.1 % ratio has been decreasing in the first five
years of study and increased a little in the last three years. The variations in the capital adequacy
ratio are caused by the higher percentage of doubtful assets over capital adequacy ratio in some
of the banks. The management should take necessary Measures to reduce capital adequacy ratio.

CHART 4.9

CAPITAL ADEQUACY RATIO

 0.40% CAPITAL ADEQUACY RATIO
0.35% 0.08%
0.30%
percentage of ratio

0.25%
0.20%
0.30% CANARABANK
0.15%
SBI
0.10% 0.10% 0.09% 0.09% 0.10%
0.05%
0.04% 0.04% 0.03% 0.02%
0.00%
2013 2014 2015 2016 2017
year