A

Project Report
on
“ANALYSIS OF FINANCIAL STATEMENT WITH REFERENCE TO
BANK OF INDIA, BHANDARA”
A Project Report submitted for the award of degree of

Bachelor of Business Administration in Faculty of Commerce Under Business Administration &

Management BOS of

Rashtrasant Tukdoji Maharaj Nagpur University, Nagpur.

MISS. ANJALI D. RANGARI

RESEARCHER

Dr. Prashant A. Manusmare Dr. Vikas P.Dhomne

Guide & HOD Principal

J.M.PATEL COLLEGE, BHANDARA

(2018-19)
 Dept. Of Management Science & Research
J.M. Patel Collage
Bhanadara – 441904. Tel:(07184) 252003,252364 Fax:253268
Email : principaljmpc@rediffmail. co Website : www.mbajmpc.org.in

Ref.No : JMPC/ MBA/ Date

CERTIFICATE

This is to certify that this Project Report is submitted by Miss. ANJALI D.

RANGARI in partial fulfillment for the award of Degree of Master of Business
Administration in Rashtrasant Tukodoji Maharaj Nagpur University, Nagpur has satisfactory
completed the Project Report in academic session 2018-2019. This is the result of the
candidate’s own and is of sufficiently high standard to its presentation for the said examination.

Dr. P .A. Manusmare Dr. V.P. Dhomne

Co-coordinator Director Principal

Place : Bhanadara

Date :
 Certificate

This is to certify that Miss. Anjali D. Rangari has completed her work titled
"Analysis of Financial Statement with Reference to Bank of India, Bhandara” under
the supervision of Dr. P.A. Manusmare and is of sufficiently high standard to warrant its
presentation for the award of M.B.A. Post Graduate Degree in the Faculty of
Management, R T M Nagpur University, Nagpur.

This work is the own work of the researcher, complete in all respects and has not been
submitted for any other degree in any other University.
The assistance and the help rendered to the researcher during the course of his research
in the form of basic source material and information have been duly acknowledged.

Place: Nagpur

Date:

Dr .Prashant A. Manusmare

SUPERVISOR
 Declaration

I hereby declare that the research work presented in this thesis entitled: “Analysis
of Financial Statement with Reference to Bank of India, Bhandara.” has been carried
out under the supervision of Dr .Prashant A. Manusmare during the session 2018-19

This work which or any part of this work is based on original research and has not been
submitted by me to any University/ Institution for the award of any diploma or degree.

The source of material, data used in this research study have been duly acknowledged .

Place: Bhandara
Date:

Name of Student
Miss. Anjali D. Rangari

M.B.A. II Year

Acknowledgement

Each stepes in learning of life is an opportunity which adds to our personality.

A research project is usually never one man show, but it is very much the product of
collective efforts.
 I would like to add a few heartful words for the people who were the part of
this work in numerous ways, people who gave unending support right for the stage
the ideas was conceived.
Behind every successful work there are some sort of impetus provided by
some. My research guide Dr. Prashant Manusmare has help me immensely on
accomplishing this research project.
I knowledge my sincere thanks to Dr. Vikas P. Dhomne Principal J. M. P.
C. Bhandara and Co. Ordinator – Prof. Dr. P. A. Manusmare for providing me all
possible help and facility which are available at there disposal.
This work could not have been complete without the active support and
encouragement of my professor and colleagues of J. M. Patel college, Bhandara.
I express my sincere thanks to you all .

Miss. Anjali D. Rangari

M.B.A. II year

INDEX
Sr.No. Page.
No.
1. Company Introduction History,
(About Topic)

2. Objectives
3. Research Methodology.
4. Hypothesis

5. Rational & Significance

6. Literature review
(Financial Analysis and
Interpretation
7. Data Collection.
8. Conclusion.

9. Suggestion.

10. Limitation.

11. Bibliography.

12. Annexure
 INTRODUCTION

INTRODUCTION
Bank of India :

Bank of India (BoI) (BSE: BOI) is an Indian state-owned commercial bank with headquarters in
Mumbai, Maharashtra. Government-owned since nationalization in 1969, It is India's 4th largest
PSU bank, after State Bank of India, Punjab National Bank and Bank of Baroda. It has 4157
branches as on 21/04/2014, including 29 branches outside India, and about 1679 ATMs. BoI is a
founder member of SWIFT (Society for Worldwide Inter Bank Financial Telecommunications),
which facilitates provision of cost-effective financial processing and communication services.
The Bank completed its first one hundred years of operations on 7 September 2006.

History
Previous banks that used the name Bank of India

At least three banks having the name Bank of India had preceded the setting up of the present
Bank of India.

1. A person named Ramakishen Dutt set up the first Bank of India in Calcutta (now Kolkata)
in 1828, but nothing more is known about this bank.
2. The second Bank of India was incorporated in London in the year 1836 as an Anglo-Indian
bank.
3. The third bank named Bank of India was registered in Bombay (now Mumbai) in the year
1864.

The current bank

Bank of India, Mumbai Main Branch

The earlier holders of the Bank of India name had failed and were no longer in existence by the
time a diverse group of Hindus, Muslims, Parsees, and Jews helped establish the present Bank of
India in 1906. It was the first in India promoted by Indian interests to serve all the communities
of India. At the time, banks in India were either owned by Europeans and served mainly the
interests of the European merchant houses, or by different communities and served the banking
needs of their own community.

The promoters incorporated the Bank of India on 7 September 1906 under Act VI of 1882, with
an authorized capital of Rs. 1 crore divided into 100,000 shares each of Rs. 100. The promoters
placed 55,000 shares privately, and issued 45,000 to the public by way of IPO on 3 October
1906; the bank commenced operations on 1 November 1906.

The lead promoter of the Bank of India was Sir Sassoon J. David (1849-1926). He was a member
of the Sations, who in turn were part of a Bombay community of Baghdadi Jews, which was
notable for its history of social service. Sir David was a prudent banker and remained the Chief
Executive of the bank from its founding in 1906 until his death in 1926.

The first board of directors of the bank consisted of Sir Sassoon David, Sir Cowasjee Jehangir, J.
Cowasjee Jehangir, Sir Frederick Leigh Croft, Ratanjee Dadabhoy Tata, Gordhandas Khattau,
Lalubhai Samaldas, Khetsety Khiasey, Ramnarain Hurnundrai, Jenarrayen Hindoomull Dani,
Noordin Ebrahim Noordin.

 1906: BOI founded with Head Office in Bombay.

 1921: BOI entered into an agreement with the Bombay Stock Exchange to manage its
clearing house.
 1946: BOI opened a branch in London, the first Indian bank to do so. This was also the
first post-WWII overseas branch of any Indian bank.
 1950: BOI opened branches in Tokyo and Osaka.
 1951: BOI opened a branch in Singapore.
 1953: BOI opened a branch in Kenya and another in Uganda.
 1953 or 54: BOI opened a branch in Aden.
 1955: BOI opened a branch in Tanganyika.
 1960: BOI opened a branch in Hong Kong.
 1962: BOI opened a branch in Nigeria.
 1967: The Government of Tanzania nationalized BOI's operations in Tanzania and folded
them into the government-owned National Commercial Bank, together with those of Bank
of Baroda and several other foreign banks.
 1969: The Government of India nationalized the 14 top banks, including Bank of India. In
the same year, the People's Democratic Republic of Yemen nationalized BOI's branch in
Aden, and the Nigerian and Ugandan governments forced BOI to incorporate its branches
in those countries.
 1970: National Bank of Southern Yemen incorporated BOI's branch in Yemen, together
with those of all the other banks in the country; this is now National Bank of Yemen. BOI
was the only Indian bank in the country.
 1972: BOI sold its Uganda operation to Bank of Baroda.
 1973: BOI opened a rep in Jakarta.
 1974: BOI opened a branch in Paris. This was the first branch of an Indian bank in Europe.
 1976: The Nigerian government acquired 60% of the shares in Bank of India (Nigeria).
 1978: BOI opened a branch in New York.
 1970s: BOI opened an agency in San Francisco.
 1980: Bank of India (Nigeria) Ltd, changed its name to Allied Bank of Nigeria.
 1986: BOI acquired Paravur Central Bank (Karur Central Bank or Parur Central Bank) in
Kerala in a rescue.
 1987: BOI took over the three UK branches of Central Bank of India (CBI). CBI had been
caught up in the Sethia fraud and default and the Reserve Bank of India required it to
transfer its branches.
 2003: BOI opened a representative office in Shenzhen.
 2005: BOI opened a representative office in Vietnam.
 2006: BOI plans to upgrade the Shenzen and Vietnam representative offices to branches,
and to open representative offices in Beijing, Doha, and Johannesburg. In addition, BOI
plans to establish a branch in Antwerp and a subsidiary in Dar-es-Salaam, marking its
return to Tanzania after 37 years.
 2007: BOI acquired 76 percent of Indonesia-based PT Bank Swadesi.
 2013: BOI opened a fully owned Subsidiary in Auckland, New Zealand on 6th
October,2013 (Bank of India (New Zealand) Ltd.)
 2014: BOI opened a fully owned Subsidiary in Uganda on 18th June, 2014 (Bank of India
(Uganda) Ltd.) which was closed its operations in 1972 and sold the operations to BOB.

CMD since nationalisation

 1969-1970 : Tribhovandas Damodardas Kansara

 1970-1975 : J N Saxena
 1975-1977 : C P Shah
 1977-1980 : H C Sarkar
 1981-1984 : N Vaghul
 1984-1986 : T. Tiwari
 1987-1991 : R. Srinivasan
 1992-1995 : G. S. Dahotre
 1995-1997 : G. Kathuria
 1997-1998 : M G Bhide
 1998-2000 : S Rajagopal
 2000-2003 : K V Krishanamurthy
 2003-2005 : M Venugopal
 2005-2007 : M. Balachandran
 2007-2009 : T.S.Narayanasami
 2009-2014 :Alok Kumar Mishra (Former chairman of Indian Bank's Association) Commented [M1]:
Commented [M2]:
 2014-2015 : Vijayalakshmi R. Iyer
 2015-2016 : B. P. Sharma

About Topic
 The financial analysis with the special reference of Bank of India (BOI), Bhandara
given the financial information of the respective bank. It undertake the record collected
through final account viz., balance sheet, profit & loss a/c by firm which provide useful
financial information for the purpose of decision making.
 The obtained financial information is predict, compare & evaluate to the data
analysis & the interpretation. It is done by making statement of comparison, statement of
common size & trend analysis. The result of data interpretation ascertain the financial
strength & weakness of respective firm. Financial statement is an organization collected
data, according to logical & consistent accounting procedure. Its purpose is to convey an
understanding of some financial aspect of business firm.The financial statement may show
financial position of business at specified moment of time or period.
 Financial statement is generally refers to following basic statements:-
 Income Statement
 Balance Sheet of courses business may also prepare
 Statement of retained earning
 Statement of change in financial position to the above statement including following
 Statement of comparison for P/L A/c & Balance Sheet.
 Statement of common size for P/L A/c & Balance Sheet.
 Trend Analysis
 Ratio Analysis
 From above statement the financial position of business disclose the necessary & relevant
information.
 Financial analysis of the firm also analyses ratio through collected data.
 Ratio play a vital role in the analysis financial statement fot the productive &
effective growth of firm.
 Ration analysis is a study of relationship among the various financial factors in a
business. Financial information of business firm is useful not only to owner but also many
internal & external parties.
OBJECTIVES
 OBJECTIVES
The Soundness and intrinsic worth of co. is Known by financial
analysis. The Financial & Operational Efficiency and profitability of the bank also known
by financial Analysis. This factor can be examined by study of a financial Analysis. An
investor, Government Shareholder and publicnees to known the performance of the
company this is an important of financial Analysis.
The main Objectives of my study is gaining an information on the
basis of meaningful interpretation on firm’s financial strengths, weakness and its
opportunities and risks and other objectives are:

The Objectives are as under:

1. To Study the Financial performance of Bank.
2. To study of trend of financial performance.
3. To make compassion of financial statement.
4. To assess corporate Excellence.
5. To judge credit worthiness.
6. To know progress of Firm.
RESEARCH
METHODOLOGY
 RESEARCH METHODOLOGY
Financial research is a systematic design, Collection and analysis of data & finding
relevant to specific financial aspect of the company.
There are two types of Data in Research Methodology.
1) Primary data :-
a) Observation and personal interviews with senior manager.
b) To find tune experience gained by the researcher, would like the expertise opinion to
shape the project report.
2) Secondary Data :-
The data is collected through financial statement like.
a) Annual Report
b) Balance sheet
c) Profit & loss
d) Other articles
A long with the above source the interaction with official of the Bank is
Manager of Account section also revealed some useful information & guidance required
for project report.
The Calculation were done for the three consecutive year viz. 2007, 2007 –
2012 financial analysis itself technique to assess the tencial soundness of the Bank
Method like comparison, ratio analysis fund flow analysis also help to study
the financial analysis and interpretation of Bank.
HYPOTHESIS
 HYPOTHESIS
Once the problem of research is finally identified & instituted the next
impotent step is to formulate tentative solution or answers. These proposed solution or
explanation constitute the hypothesis which the research would need to test on the basis of
the facts already known or uncovered or likely to be known. It establishes the relationship
of concept with theory & specified the text to be applied, especially in the context of a
meaningful values judgment. The hypothesis, therefore plays a pivotal role in scientific
research.
Meaning:
A hypothesis is a conjectural statement of the relation between two or
move variable. In other words, a hypothesis is a tentative generalization the validity of
which has to be tested.
Landberg agrees with this concept of the hypothesis when he states, A
hypothesis is a tentative generalization the validity of which remains to be tested. In its
most elementary stage the hypothesis may be any lunch, guess imaginative idea, which
become the basis for action or investigation.
Good & Half are of the opinion that a hypothesis is “a proposition
which can be put to test to determine its validity.”
Function of a Hypothesis:
A hypothesis performs the following function.
a) It provides a clear & adequate explanation of the fact connected with the hypothesis
b) While enabling the researcher to process in inquiry along the right lines, it suggests,
experiments & encourages observation, so that we may discover order in nature.
c) It determines the method of verification as well as the procedure of inquiry, besides
limiting the scope of the inquiry to a manageable area, for it is based in relevant fact
 rather than on random samples. In this way, it facilities economies in time, money
and effort.
d) The verification of knowledge are of laws and appropriate explanations are easily
attained when hypothesis are termed in the beginning. They also assist in the
discovery of laws.
e) The conditions and internes drawn by a hypothesis play a significant role in the
advancement of knowledge. The significance of an object or even can be determined
of knowledge. The significance of an object or even can be determined by a
hypothesis. A comparable statement may be made regarding problems.
Types of Hypothesis:
There all many an ages of classifying hypothesis. Three broad
classifications worth mentioning are given below.
a) Hypothesis explaining the existing empirical uniformities.
b) Hypothesis concerned with complex ideal types.
c) Hypothesis & the relation of analysis valuable.
Hypothesis of the study is that:
1) That the Credit worthiness of the Bank is satisfactory.
2) That Bank Introduced a wide range of schemes at attractive
Rational & Significance
 Rational & significance

1. The business firm prepared financial statement under which

involving final account provides useful information for the purpose of
decision making.

2. Financial information is given to predict, compare, evaluate & show

the operating activity of concerned & letter balance sheet depicts the
balance value of acquired assets & liabilities of particulars point of
time.

3. It help to know the strength & weakness of the firm by which it is

helpful in growing productivity & efficiency.

4. It is also help to study the financial analysis & interpretation of

bank.

5. It help in trend analysis which involve comparing in a single bank

over a period.
LITERATURE REVIEW
 Financial Analysis and Interpretation
The Basic for financial analysis planning & decision making data is
financial information. A business firm prepared its final Accounts Viz., Balance sheet,
profit and loss account which provides useful financial information for the purpose of
decision making. Financial information is needed to predict, compare and evaluate show
the operating activity of the concern and later balance sheet depicts the balance value of
the acquired assets and of liabilities of a particular point of time.
However, these statement do not disclose all of the necessary and
relevant information. For the purpose of obtaining the material relevant information
necessary for ascertaining the financial strength and weakness of an enterprise. It is
necessary to analysis data depicted in the financial statement.
Meaning:
The Financial statement is an organization collection data, according to
logical and consistent accounting procedure. Its purpose is to convey an understanding of
some financial as pact of business firm. It may show position of at a moment of Time as in
the case of balance sheet or may revolve of series if activity over a given period of time as
in the case of an income statement.
Thus financial statement generally refers to basis statement.
a) Income Statement and
b) Balance Statement of courses a Business may also prepare
c) Statement of retained earnings and
d) Statement of change in Financial position addition to the above statement.
A) Income Statement (Profit and Loss Account) :-
The income statement is generally considered to be the most useful of
all financial statement. It explains what was happened to business as a result of operations
between two balance sheet dates. For this purpose it matched the revenues and cost
incurred in the process of earning revenue and shows the net profit earned or loss suffered
during a particular period.
B) Balance sheet :-
It is a statement of financial position of business at specified moment of
time or period. It represent all assets owned by the business at a particular moment of time
and claim of the owners and outsider against those assets of that period of time. It is in a
way snapshot of the financial condition of the business at that time.
C) Statement of Retained earnings :-
The term retained earning means the accumulated excess of earning
over losses and dividends. The balance show by income statement is transferred the
balance sheet through this statement. After making necessary appropriation it is thus a
connecting link between balance sheet and income statement. It is fundamentally a
displays of things that have caused the beginning of the period retained balance to be
change into the one shown in the end of the period of balance sheet.
D) Statement of Change in Financial Statement :-
The balance sheet shows the financial condition of the business at
particular moment of time while the income statement disclosed the result of operation of
business over a period of time. However, foe better understanding of the affairs of the
business. It is an essential to identify for the moment of working capital of cash in and out
of the business. This information is available in the statement of change in financial
position of the business. The statement may emphasize any of the following aspect relating
to change in financial position of the business.
1) Change in the firm’s working capital.
2) Change in the firm’s cash position.
3) Change in the firm’s total financial position.

Nature of financial statement:

According to the American institute of certified public accountant
financial statement reflects a combination of recorded facts, According conversion of
recorded facts, Accounting conversions applied after then materially this implies that data
exhibited financial statement are effected by recorded facts, accounting conversion and
personal judgment :
1) Recorded facts :
The term recorded facts means facts which have been recorded in the
accounting books which have not been recorded in the financial books are not in depicted
in the financial statement. However, material for example fixed assets shown example
fixed assets shown at cost irrespective of their market or replacement price, since such
price is not recorded in the book.
2) Accounting convention :
Simply certain fundamental accounting principal, which have been
sanctified by long usage. For Ex., for an account of the convention of conversation
provision is made for expected losses but expected profit are ignore this means that the real
financial position of the business may be such better than what has been shown by
financial statement.
3) Personal judgment :
Personal judgment have also an important bearing on the financial
statement For Ex. The choice of selecting the method of depreciation lies on the account
similarly the need of amortization of fictitious assets also depends on the personal
judgment on the accounting.
4) Ignore Substance :
Financial statement are presented in the form as prescribed by law. As a
result may substantial facts go unrecorded. For.ex. the Assets by an organization financial
lease basis are not shown in the balance sheet through they are used for revenue
generation.
5) Over generalization :
Financial statement present data in a generalized form and not as per the
requirement of the specific users Viz. I have holder, employees. Government potential
investors, lender etc. hence, they cannot meet the specific data requirement of the users.
They are only general purpose statement.
Type of Financial Analysis:
Financial analysis can be classified into two deferent categories
depending upon.
i) Material used
ii) The modus an analysis.
1) On the basis of material used :
 According to this basis financial analysis can be of two types:
a) External analysis :
The analysis is done by those who are outsider for the business. The
term outsider include investors, credits agencies Government agencies and other credition
who have no asses to the internal record of the company. These persons may be depends
upon the published financial statement. Their analysis service only a limited purpose.
b) Internal analysis :
This analysis is done by person who have across to the books of
accounts and other information related to the business. Such as analysis can therefore be
done by executive and employee of the organization or by officers appointed for this
purpose by the government or the court under power vested in them. The analysis is done
depending upon the objectives to be achieved through this analysis.
2) On the basis of modus operand :
According to the financial analysis can be of two types.
i) Horizontal analysis :
In case of this type of analysis financial statement for a number of years
are reviewed or analyzed. The current year figures are compared with standard or base
year. The analysis statement usually content figures as two or more year and the changes
are shown regarding each items from the base year usually in the form of percentage such
as analysis given the manager considerable insight into level and area of strength and
weakness since this type of analysis is based in the data from year to year rather than on
one data it is also termed as “Dynamic Analysis”
ii) Vertical analysis :
In case of this type of analysis a study is made of the Quantities
relationship of the various items in the financial statement on a particular data for ex. The
ratio of different items or cost for a particular period may be calculated with sales for that
period. Steps involved in financial statement analysis.
The analysis or the financial statement requires:-
1) Methodical classification of data given in the financial statement.
 2) Comparison or the various interconnected figures with each other by different tools
of financial analysis.
Methodical Classification:
In order to have a meaningful analysis at is necessary that figures
should be arrange properly. Usually instead of two column (T-form) statement as
ordinarily prepared. The statement are prepared in signal (vertical) column from which
through up significant figures by adding or subtracting this also facilitates showing
figures of a numbers of a firm of number of year side by side for comparison purpose.
Tools of financial analysis:
A financial analysis can adopt the following tools for analysis of the
financial statement.
i) Comparative financial statement :
Comparative financial statement are those statement which have been
designed in a way to as to provide time perspective to the consideration of various element
of the financial position embedded in such statement. In this statement figures for two
period are placed made by side to facility comparison.
Both income statement and balance sheet can be prepared in the firm of
comparative financial statement.
ii) Comparative income statement :
The income statement disclosed the net profit or net loss on account of
operation. A comparative income statement will show the absolute figures the two or more
period. The absolute change from one period to another and if desired change in the terms
of percentage since the figure for two or more period are shown side by side. The reader
can quickly as certain weather sales are increased or decreased weather cost of sale has
increased or certain weather sales are increased or decreased weather cost of sale has
increased or decreased etc. thus only a reading of including the comparative income
statement will be helpful in deriving the meaningful conclusion.
iii) Comparative Balance sheet :
Comparative balance sheet as a two or more different data can be used
comparing asset and liabilities & finding any increased and decreased in those while in
single balance sheet is a present position it is a change in the comparative balance sheet.
Such a balance sheet is very useful in studying the tread in enterprise.
iv) Statement of common size:
The statement of common size disclose absolute common figures from
one period to another. If the change on the term of the percentage since the figure
for two or more period are shown side by side. Thus reader can quickly ascertain
 whether there is increase or decrease in a cost of item maintain. It is helpful in
giving meaningful conclusions.
v) Trend Analysis :
Trend analysis are those statement which have been design in a way
such as to provide prospective comparative information in the consideration with
various elements of financial positions. During analysis the previous year has
been taken as base year & it is comparing with the next two or more years side by
side. The absolute change recorded as comparatively analyzed.
DATA COLLECTION AND
ANALYSIS
Profit & Loss Account

For the year ended mar.2016-2017-2018

Particular March 2016 March 2017 March 2018

INCOME
Interest 30,370.90 27,187.86 25,295.30
Income from Investments 8,952.13 9,059.92 9,153.55
Interest on Balance with 2,120.94 2,012.21 2,731.70
RBI and Other Inter-Bank
funds
Others 352.49 1,030.86 890.86
Total Interest Earned 41,796.46 39,290.85 38,071.41
Other Income 3,652.55 6,772.33 5,733.76
Total Income 45,449.01 46,063.18 43,805.17
EXPENDITURE
Interest Expended 30,071.84 27,464.74 27,565.07
Payments to and 5,357.24 5,396.62 4,903.27
Provisions for Employees
Depreciation 286.26 -12.47 519.98
Operating Expenses 3.698.05 3,481.65 3,677.92
Total Provisions and 12,124.83 11,290.97 13,182.63
Contingencies
Total Expenditure 51,538.22 47,621.50 49,848.87
Net Profit/ Loss for The -6,089.21 -1,558.31 -6,043.71
Year
Balance sheet

For the year ended mar.2016-2017-2018

Particular March 2016 March 2017 March 2018
Capital and Liabilities:
Total Share Capital 817.29 1,055.43 1,743.72
Share Application Money 1,303.65 1,721.92 0.00
Reserves 30,196.28 29,709.72 28,247.76
Net Worth 32,317.22 32,487.07 29991.48
Deposits 513,004.52 540,032.01 520,854.38
Borrowings 51,083.14 39,405.67 43,588.78
Total Debt 564,087.66 579,437.68 564,443.16
Other Liabilities & 13,509.05 14,384.52 9,591.03
Provisions
Total Liabilities 609,913.93 626,309.27 604,025.67
Assets
Cash & Bank with RBI 33,961.61 27,347.66 31,347.84
Balance with Banks, Money 65,179.68 68,540.29 64,534.66
at Call
Advances 359,188.95 366,481.67 341,380.19
Investments 118,848.92 127,826.86 137,111.11
Fixed Assets 8,480.31 8,461.86 2,716.13
Other Assets 24,254.46 27,650.93 26,935.73
Total Assets 609,913.93 626,309.27 604,025.66
Statement of comparison

Balance Sheet

For the year ended 2016-2017

Particular March March Absolute %

2016 2017 Change
Capital and Liabilities:
Total Share Capital 817.29 1,055.43 238.14 29.14
Share Application Money 1,303.65 1,721.92 418.27 32.08
Reserves 30,196.28 29,709.72 -486.56 -1.61
Net Worth 32,317.22 32,487.07 169.85 0.53
Deposits 513,004.52 540,032.01 27,027.49 5.27
Borrowings 51,083.14 39,405.67 -11,677.47 -22.86
Total Debt 564,087.66 579,437.68 15,350.02 2.72
Other Liabilities & 13,509.05 14,384.52 875.47 6.48
Provisions
Total Liabilities 609,913.93 626,309.27 16,395.34 2.69
Assets
Cash & Bank with RBI 33,961.61 27,347.66 -6613.95 -19.47
Balance with Banks, Money 65,179.68 68,540.29 3,360.61 5.16
at Call
Advances 359,188.95 366,481.67 7,292.72 2.03
Investments 118,848.92 127,826.86 8,977.94 7.55
Fixed Assets 8,480.31 8,461.86 -18.45 -0.22
Other Assets 24,254.46 27,650.93 3,396.47 14.00
Total Assets 609,913.93 626,309.27 16,395.34 2.69
Statement of comparison

Balance Sheet

For the year ended 2017-2018

Particular March March Absolute %

2017 2018 Change
Capital and Liabilities:
Total Share Capital 1,055.43 1,743.72 688.29 2.93
Share Application Money 1,721.92 0.00 -1,721.92 -100.00
Reserves 29,709.72 28,247.76 -1,461.96 -4.92
Net Worth 32,487.07 29991.48 -2495.59 -7.68
Deposits 540,032.01 520,854.38 -19,177.63 -3.55
Borrowings 39,405.67 43,588.78 4,183.11 10.62
Total Debt 579,437.68 564,443.16 -14,994.52 -2.59
Other Liabilities & 14,384.52 9,591.03 -4,793.49 -33.32
Provisions
Total Liabilities 626,309.27 604,025.67 -22,283.60 -3.56
Assets
Cash & Bank with RBI 27,347.66 31,347.84 3,999.34 14.62
Balance with Banks, Money 68,540.29 64,534.66 -4,005.63 -5.84
at Call
Advances 366,481.67 341,380.19 -25,101.48 -6.85
Investments 127,826.86 137,111.11 9,284.25 7.26
Fixed Assets 8,461.86 2,716.13 -5,745.73 -67.90
Other Assets 27,650.93 26,935.73 -715.2 -2.59
Total Assets 626,309.27 604,025.66 -22,283.61 -3.56
Statement of Comparison

Profit and Loss

For the year ended March 2016 – 2017

Particular March March Absolute %

2016 2017 Change
INCOME
Interest 30,370.90 27,187.86 -3,183.04 -10.48
Income from 8,952.13 9,059.92 107.79 1.20
Investments
Interest on Balance with 2,120.94 2,012.21 -108.73 -5.13
RBI and Other Inter-Bank
funds
Others 352.49 1,030.86 678.37 192.45
Total Interest Earned 41,796.46 39,290.85 -2,505.61 -5.99
Other Income 3,652.55 6,772.33 3,119.78 85.41
Total Income 45,449.01 46,063.18 614.17 1.35
EXPENDITURE
Interest Expended 30,071.84 27,464.74 -2,607.10 -8.67
Payments to and 5,357.24 5,396.62 39.38 0.74
Provisions for Employees
Depreciation 286.26 -12.47 -298.73 -104.36
Operating Expenses 3.698.05 3,481.65 -216.4 -5.85
Total Provisions and 12,124.83 11,290.97 -833.86 -6.88
Contingencies
Total Expenditure 51,538.22 47,621.50 -3,916.72 -7.60
Net Profit/ Loss for The -6,089.21 -1,558.31 4,530.90 -74.41
Year
Statement of Comparison

Profit and Loss Comparison

For the year ended March 2017– 2018

Particular March March Absolute %
2017 2018 Change
INCOME
Interest 27,187.86 25,295.30 -1892.56 -6.96
Income from Investments 9,059.92 9,153.55 93.63 1.03
Interest on Balance with 2,012.21 2,731.70 719.49 35.76
RBI and Other Inter-Bank
funds
Others 1,030.86 890.86 -140.00 -13.58
Total Interest Earned 39,290.85 38,071.41 -1,219.44 -3.10
Other Income 6,772.33 5,733.76 -1,038.57 -15.34
Total Income 46,063.18 43,805.17 -2,258.01 -4.90
EXPENDITURE
Interest Expended 27,464.74 27,565.07 100.33 0.37
Payments to and 5,396.62 4,903.27 -493.35 -9.14
Provisions for Employees
Depreciation -12.47 519.98 532.45 -4,269.85
Operating Expenses 3,481.65 3,677.92 196.27 5.64
Total Provisions and 11,290.97 13,182.63 1,891.66 16.75
Contingencies
Total Expenditure 47,621.50 49,848.87 2,227.28 4.68
Net Profit/ Loss for The -1,558.31 -6,043.71 -4,485.40 287.84
Year
Statement of Common size

Balance Sheet

For the year ended 2016-2017-2018

Common Size
Particular March March March
2016 2017 2018 2016 2017 2018
Capital and
Liabilities:
Total Share 817.29 1,055.43 1,743.72 0.13 0.17 0.29
Capital
Share 1,303.65 1,721.92 0.00 0.22 0.26 0.00
Application
Money
Reserves 30,196.28 29,709.72 28,247.76 4.95 4.74 4.67
Deposits 513,004.52 540,032.01 520,854.38 84.11 86.22 86.23
Borrowings 51,083.14 39,405.67 43,588.78 8.38 6.29 7.22
Other Liabilities 13,509.05 14,384.52 9,591.03 2.21 2.30 1.59
& Provisions
Total Liabilities 609,913.93 626,309.27 604,025.67 100.00 100.00 100.00
Assets
Cash & Bank 33,961.61 27,347.66 31,347.84 5.57 4.37 5.19
with RBI
Balance with 65,179.68 68,540.29 64,534.66 10.69 10.94 10.68
Banks, Money at
Call
Advances 359,188.95 366,481.67 341,380.19 58.89 58.51 56.52
Investments 118,848.92 127,826.86 137,111.11 19.49 20.41 22.70
Fixed Assets 8,480.31 8,461.86 2,716.13 1.39 1.35 0.45
Other Assets 24,254.46 27,650.93 26,935.73 3.98 4.41 4.46
Total Assets 609,913.93 626,309.27 604,025.66 100.00 100.00 100.00
Statement of Common size

Profit & Loss Account

For the year ended 2016-2017-2018

Common Size
Particular March March March March March March
2016 2017 2018 2016 2017 2018
INCOME
Interest 30,370.90 27,187.86 25,295.30 66.82 59.02 57.75
Income from 8,952.13 9,059.92 9,153.55 19.70 19.67 20.90
Investments
Interest on Balance 2,120.94 2,012.21 2,731.70 4.67 4.37 6.24
with RBI and Other
Inter-Bank funds
Others 352.49 1,030.86 890.86 0.77 2.24 2.03
Other Income 3,652.55 6,772.33 5,733.76 8.04 14.70 13.09
Total Income 45,449.01 46,063.18 43,805.17 100.00 100.00 100.00

EXPENDITURE
Interest Expended 30,071.84 27,464.74 27,565.07 66.17 59.62 62.93
Payments to and 5,357.24 5,396.62 4,903.27 11.79 11.72 11.19
Provisions for
Employees
Depreciation 286.26 -12.47 519.98 0.63 -0.03 1.19
Operating Expenses 3.698.05 3,481.65 3,677.92 8.14 7.56 8.40
Total Provisions 12,124.83 11,290.97 13,182.63 26.68 24.51 30.10
and Contingencies
Net Profit/ Loss for -6,089.21 -1,558.31 -6,043.71 -13.40 -3.38 -13.80
The Year
Total 45,449.01 46,063.19 43,805.16 100.00 100.00 100.00
 Trend Analysis

Balance Sheet

For the year ended 2016-2017-2018

Trend Analysis
Particular March March March 2016 2017 2018
2016 2017 2018
Capital and
Liabilities:
Total Share 817.29 1,055.43 1,743.72 100.00 129.14 213.35
Capital
Share Application 1,303.65 1,721.92 0.00 100.00 132.08 0.00
Money
Reserves 30,196.28 29,709.72 28,247.76 100.00 98.39 93.55
Net Worth 32,317.22 32,487.07 29991.48 100.00 100.53 92.80
Deposits 513,004.52 540,032.01 520,854.38 100.00 105.27 101.53
Borrowings 51,083.14 39,405.67 43,588.78 100.00 77.14 85.33
Total Debt 564,087.66 579,437.68 564,443.16 100.00 102.72 100.06
Other Liabilities & 13,509.05 14,384.52 9,591.03 100.00 106.48 71.00
Provisions
Total Liabilities 609,913.93 626,309.27 604,025.67 100.00 102.69 99.03
Assets
Cash & Bank with 33,961.61 27,347.66 31,347.84 100.00 80.53 92.30
RBI
Balance with 65,179.68 68,540.29 64,534.66 100.00 105.16 99.01
Banks, Money at
Call
Advances 359,188.95 366,481.67 341,380.19 100.00 102.03 95.04
Investments 118,848.92 127,826.86 137,111.11 100.00 107.55 115.37
Fixed Assets 8,480.31 8,461.86 2,716.13 100.00 99.78 32.03
Other Assets 24,254.46 27,650.93 26,935.73 100.00 114.00 111.05
Total Assets 609,913.93 626,309.27 604,025.66 100.00 102.69 99.03
Trend Analysis

Profit & Loss Account

For the year ended 2016-2017-2018

Trend Analysis
Particular March March March 2016 2017 2018
2016 2017 2018
INCOME
Interest 30,370.90 27,187.86 25,295.30 100.00 89.52 83.29
Income from 8,952.13 9,059.92 9,153.55 100.00 101.20 102.25
Investments
Interest on Balance 2,120.94 2,012.21 2,731.70 100.00 96.87 128.80
with RBI and Other
Inter-Bank funds
Others 352.49 1,030.86 890.86 100.00 292.45 252.73
Total Interest Earned 41,796.46 39,290.85 38,071.41 100.00 94.01 91.09
Other Income 3,652.55 6,772.33 5,733.76 100.00 185.41 156.98
Total Income 45,449.01 46,063.18 43,805.17 100.00 101.35 96.38
EXPENDITURE
Interest Expended 30,071.84 27,464.74 27,565.07 100.00 91.33 91.66
Payments to and 5,357.24 5,396.62 4,903.27 100.00 100.74 91.52
Provisions for
Employees
Depreciation 286.26 -12.47 519.98 100.00 -4.36 181.65
Operating Expenses 3.698.05 3,481.65 3,677.92 100.00 94.15 99.46
Total Provisions and 12,124.83 11,290.97 13,182.63 100.00 93.12 108.72
Contingencies
Total Expenditure 51,538.22 47,621.50 49,848.87 100.00 92.40 96.72
Net Profit/ Loss for -6,089.21 -1,558.31 -6,043.71 100.00 25.59 99.25
The Year
 RATIO ANALYSIS
1) Current Ratio
This Ratio is also known as ‘working capital ratio’ and is used for
determining the short term financial position of the firm. It is done by matching the
total current asset of the firm with the current liabilities.
Following is the formula use for calculating current ratio:
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠
Current Ratio =
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑙𝑖𝑡𝑦

Current asset =other assets

Current liabilities =other liabilities & provision

2016 2017 2018

Current Assets 24,254.46 27,650.93 26,935.73
Current Liability 13,509.05 14,384.52 9,591.03
Ratio 1.80 1.92 2.81

1) For the year 2016 –

24,254.46
Current Ratio =
13,509.05
= 1.80

2) For the year 2017 –

27,650.93
Current Ratio =
14,384.52

= 1.92

3) For the year 2018 –

 26,935.73
Current Ratio =
9,591.03
= 2.81

Interpretation:
From the above graph it is observed that the ratio of 2016 – 2017 –
increased from 1.80 to 1.92 & next year 2017- 2018 increased from 1.92 to 2.81.

30,000.00

25,000.00

20,000.00

15,000.00

10,000.00

5,000.00

0.00
Current Assets Current Liabilities
2016 24,254.46 13,509.05
2017 27,650.93 14,384.52
2018 26,935.73 9,591.03
 2) Interest received to total income:
This ratio is used to determine the interest received in respect of total
income. It indicate the ratio of intt. Earning toward total income gain by firm. Following is
the formula use for calculating interest received to total income:

2016 2017 2018

Interest Received 41,796.46 39,290.85 38,071.41
Total Income 45,449.01 46,063.18 43,805.17
Ratio 91.96 % 85.30 % 86.91%

𝐼𝑛𝑡𝑡. 𝑅𝑒𝑐𝑒𝑖𝑣𝑒𝑑
for the year 2016 = ∗ 100
𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑐𝑜𝑚𝑒
41,796.46
= ∗ 100
45,449.01
= 91.96%

𝐼𝑛𝑡𝑡. 𝑅𝑒𝑐𝑒𝑖𝑣𝑒𝑑
for the year 2017 = ∗ 100
𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑐𝑜𝑚𝑒
39,290.85
= ∗ 100
46,063.18
= 85.30%

𝐼𝑛𝑡𝑡. 𝑅𝑒𝑐𝑒𝑖𝑣𝑒𝑑
for the year 2018 = ∗ 100
𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑐𝑜𝑚𝑒
38,071.41
= ∗ 100
43,805.17
= 86.91%
 50,000.00

45,000.00

40,000.00

35,000.00

30,000.00

25,000.00

20,000.00

15,000.00

10,000.00

5,000.00

0.00
Interest Received Total Income
2016 41,796.46 45,449.01
2017 39,290.85 46,063.18
2018 38,071.41 43,805.17

Interpretation

From the above graph it is observed that ratio is 2016-2017 decreased from
91.96% to 85.30% and in 2017-2018 increased from 85.30% to 86.91%.

3) Deposit interest paid to Total Income:

 This ratio is used to determine the interest expended over
total income. Following is the formula use to calculating deposited interest
to total income:

𝐷𝑒𝑝𝑜𝑠𝑖𝑡 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡
= ∗ 100
𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑐𝑜𝑚𝑒
2016 2017 2018
Deposit Interest 30,071.84 27,464.74 27,565.07
Total Income 45,449.01 46,063.18 43,805.17
Ratio 66.17 % 59.62% 62.93 %

for the year 2016 for the year 2017

𝐷𝑒𝑝𝑜𝑠𝑖𝑡 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐷𝑒𝑝𝑜𝑠𝑖𝑡 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡
= =
𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑐𝑜𝑚𝑒 𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑐𝑜𝑚𝑒
∗ 100 ∗ 100
30,071.84 27,464.74
= ∗ 100 = ∗ 100
45,449.01 46,063.18
= 66.17% = 59.62 %

𝐷𝑒𝑝𝑜𝑠𝑖𝑡 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡
for the year 2018 = ∗ 100
𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑐𝑜𝑚𝑒
27,565.07
= ∗ 100
43,805.17
= 62.93%

Graph of Deposit Interest to Total Income:

 50,000.00

45,000.00

40,000.00

35,000.00

30,000.00

25,000.00

20,000.00

15,000.00

10,000.00

5,000.00

0.00
Deposite Interest Total Income
2016 30,071.84 45,449.01
2017 27,464.74 46,063.18
2018 27,565.07 43,805.17

Interpretation:
From the Above Graph it is observed that the ratio is 2014 – 2015 is

increasing with ratio 64.17 % to 67.32 % & then decreasing year 2015-2016 with ratio

67.32 % to 66.17 %.

SOLVENCY RATIO
These ratio offer an insight into financial performance of
a business. These ratio also deals with long term solvency position of
business as these help to know whether the business would be able
to honor its interest, payment & principle payment commitment.
 Following is the formula use to calculating solvency
ratio:
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦
=
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠

2016 2017 2018

Current Liability 13,509.05 14,384.52 9,591.03
Total Assets 609,913.93 626,309.27 604,025.66
Ratio 0.02 % 0.02 % 0.02 %

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦
for the year 2016 =
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
13,509.05
=
609,913.93
= 0.02 %

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦
for the year 2017 =
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
14,384.52
=
626,309.27

= 0.02 %

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦
for the year 2018 =
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
9,591.03
=
604,025.66

= 0.02 %
Graph of Solvency Ratio:

700,000.00

600,000.00

500,000.00

400,000.00

300,000.00

200,000.00

100,000.00

0.00
Current Liabilities Total Assets
2016 13,509.05 609,913.93
2017 14,384.52 626,309.27
2018 9,591.03 604,025.66

Interpretation:
In 2014 Solvency ratio is 0.03 and in 2015 the ratio is 0.02 and in 2016

the ratio is 0.02 so it is concluded that in 2014 Solvency ratio is increasing and in 2015

and 2016 it is stable.

 CONCLUSION

CONCLUSION
1) It is concluded from the study that performance of bank is up to the mark.
2) After comparing the financial statement it is observed that bank has improvement its
strength in financial position.
3) By doing are study it is concluded that BOI bank is an excellent bank in Bhandara
districts.
4) It is observed that the trend of the financial position is increase in nature.
5) From ratio analysis it is concluded that all ratio all up to standards. Therefore, this
bank is treated as Ideal Bank. In brief it is concluded that since this bank is for the
people, by the people to the people. It is running in good condition as well as it has
credit worthiness. Therefore this bank has future development aspect.
 SUGGESTIONS

SUGGESTIONS
1) Operating Expenses can raised by making effective operating system.

2) Bank should increase deposits by providing attractive interest rate.

3) Bank should adopt a stronger recovery policy.

4) Look after its financial strategy.

 LIMITATIONS

LIMITATIONS
Limitation of the Project are as follows:
1) My knowledge in this area is not complete so that my project have some limitation.

2) Due to short period of time my project is not full of all information.

3) As the research has taken place in very short tenure, the shortage of time is one of

the limitation of this study.

4) Calculation made on knowledge of Research.

BIBLIOGARAPHY
 BIBLIOGARAPHY
R, K. Agrawal, The Optimal Insurance Against Consumption Price Risks, Hitotsubashi
Journal of Economics, Vol. 35, No. 1, June 1994
Adams, T.F.M. and Hoshii, Iwao, A Financial History of the new japan, Kodansha
International Ltd., Lokyo 1972.
Ambrose, J.M. amd Carroll, A.M., Using Best’s Ratings in Life Insurer Insolvency
Predication, Journal of Risk and Insurance, Vol, 61, No.2, June 1994.
Annual Reports of State Industrial Development Corporations.
Annual Reports of Unit Trust of India.
Anyahwu, J.C., Housing Finance in Nigeria: The Role of Financial Institutions,
Prajnan, Vol. XIX, No. 4, Oct-Dec. 1990.

Annual Report of BOI Bank.

ANNEXURE
Balance sheet

For the year ended mar.2014-2015-2016

Profit & Loss Account

For the year ended mar.2014-2015-2016