CHAPTER 1

INTORDUCTION
Indian Overseas Bank (IOB) is a major public sector bank based in Chennai, India, with about 3,400
domestic branches. And about 6 foreign branches and representative office. IOB was one of the 14
major banks that were nationalized in 1969. On the eve of Nationalization in 1969, IOB had 195
branches in India with aggregate deposits of Rs.67.70 Cr. and Advances of Rs.44.90 Cr. Currently IOB
is sponsoring two Regional Rural Banks. Pandiyan Grama Bank in Tamil Nadu and Odisha Gramya Bank
in Odisha. Bank has its overseas presence in 5 countries. IOB provides a wide range of products and
services such as saving bank accounts, current accounts, term deposit, retail loans, home loans and
mortgages, depository services, gold investment products, debit and credit cards, multi city cheque
facilities, insurance and mutual funds, and real time gross settlement services. It offers remittances,
resident foreign currency accounts, NRI home loans and many other products for its NRI clients. IOB
such as term loans and working capital loans for micro, small, and medium enterprises and loans for
professional and self-employed individuals, and information technology (IT) and ITes BPO sectors, as
well as NRI accounts, and Internet and mobile banking services. In addition, it provides agricultural
short-term loans and Agri business consultancy services and forex collection services.
IOB also conducts government businesses like payment of direct taxes, indirect taxes, pension
payment scheme, sales tax collections and provident fund scheme.

1.1 HISTORY
In 1937: Shri.M.Ct.M. Chidambaram establishes the Indian Overseas Bank (IOB) to encourage overseas
banking and foreign exchange operations. it started simultaneously at three branches, in Karaikudi,
Madras (Chennai) and Rangoon (Yangon). It then quickly opened a branch in Penang and another in
Singapore. The bank served the Nattukottai Chettiars who were a mercantile class that at the time
had spread from Chettinad in Tamil Nadu state to Ceylon (Sri Lanka), Burma (Myanmar), Malaya,
Singapore, Java, Sumatra, and Saigon. As a result, from the beginning the IOB specialized in foreign
exchange and overseas banking.
During the 1960: The banking sector in India was consolidating by the merger of weak private sector
banks with the stronger ones; the IOB absorbed five banks, including the Kulitali a Bank (est. 1933).
The year 1969: The Government of India nationalized the IOB. At one point, probably before
nationalization, it had twenty of its eighty branches located overseas. After nationalization it, like all
the nationalized banks, turned inward, emphasizing the opening of branches in rural India.
In the year 1988-89: the IOB acquired the Bank of Tamil Nadu in a rescue operation.

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In 2000: the IOB engaged in an initial public offering (IPO) that brought the
government's share in the bank's equity down to 75%. International expansion
During the 1937-38: As mentioned above, the IOB was international from its inception with branches
in Rangoon, Penang, and Singapore.
In year 1941: It opened a branch in Malaya that closed almost immediately presumably because of
the war.
During the year 1946: It opened a branch in Ceylon.
In 1947: It opened a branch in Bangkok and re-opened others.
In the year 1948: The United Commercial Bank opened a branch in Malaya.
The year 1949: The IOB opened a branch in Bangkok.
In the 1963: The Burmese government nationalized the IOB’s branch in Rangoon.
The year 1967: The IOB, the Indian Bank and the United Commercial Bank established the United Asian
Bank Berhad in Malaysia. The Indian Bank had been operating in Malaysia since 1941 and the United
Commercial Bank Limited had been operating there since 1948. The banks set up the United Asian to
comply with the Banking Law in Malaysia which prohibited foreign government banks from operating
in the country. Also, the IOB and six Indian private banks established the Bharat Overseas Bank as a
Chennai-based private bank to take over the IOB's Bangkok branch.
During the year 1977: The IOB opened a branch in Seoul.
In 1979: The IOB opened a Foreign Currency Banking Unit in Colombo, Sri Lanka.
During 1992: The Bank of Commerce (BOC), a Malaysian bank, acquired the United Asian Bank (UAB).
The year 1999: The Bank of Commerce (BOC) merged with the Bank Bumiputra Malaysia to form the
Bumiputra-Commerce Bank (BCB) Berhad.
In 2005: The BCB integrated with the CIMB which company is owned by Datuk Seri Nazir Razak who is
the youngest son of Malaysia's second (former) Prime Minister Tun (from 1970-1976) Abdul Razak and
the youngest brother of today's (2005) deputy prime minister Dato Seri Najib Tun Razak.
In the year 2007: The IOB takes over the Bharat Overseas Bank.
The year 2009: The IOB takes over the Shree Suvarna Sahakari Bank Limited. Before nationalization In
1969: The bank had ventured into consumer credit, had begun computerization of its branches in 1964
and had established an independent department for agricultural finance. In 1969: IOB had 195
branches in India.
During the year 1977: IBO opened a branch in Seoul followed by a foreign currency-banking unit in
Colombo in 1979. In 1997, the bank launched its official website and introduced Online Bill Payment
Services for the MTNL Bills to its New Delhi branch customers in 1999. The IOB’s presence is marked
in key trade centers of the world like Singapore, Seoul, Hong Kong, Bangkok and Germany. Its India

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presence is a well networked branch system spanning the country with multiple branches in major
cities like Bangalore, Chennai, Mumbai, Noida, Hyderabad, New Delhi, Coimbatore, Pune, Faridabad,
Gurgaon and Kolkata. The Indian Overseas Bank currently provides specialized banking services to its
retail customers that include Any Branch Banking (ABB), ATM Banking, IOB STARS (Indian Overseas
Bank - speedy transfer and Realization Service) and the most popular and latest one is the 8% Saving
(Taxable) Bond Scheme.

1.2 ABOUT THE FOUNDER

Indian Overseas Bank (IOB) was founded on February 10th 1937, by Shri.M.Ct.M. Chidambaram
Chettyar.MCt., as he was popularly known, was pioneer in many fields – Banking, Insurance and
Industry. IOB was founded with the twin objectives of specializing in foreign exchange business and
overseas banking. Chidambaram Chettyar succeeded his father as a director of the Indian Bank on the
latter's death in 1929. Chidambaram Chettyar soon emerged as one of the top industrialists in the
country. On 10 February 1937, he founded the Indian Overseas Bank, which concentrated on
improving the country's industrial sector. The bank began business simultaneously from its branches
at Karaikudi and Rangoon. Chidambaram Chettyar was also one of the founders of United India
Assurance.
In 1944, with the assistance of Sir C. P. Ramaswamy Iyer and British technical expertise, Chidambaram
Chettyar founded the Travancore Rayons Limited, with a factory near Perumbavoor. The Travancore
Rayons Limited was the first rayon manufacturing company in India. Chidambaram Chettyar also
served as a director of Indian Bank from 1930 to 1940 and 1945 to 1949. Hidambaram Chettyar died
on 13 March 1954 when the British Overseas Airways constellation Aeroplan on which he was
travelling crashed near Singapore killing 32 people on board.

1.3 GROWTH
● Exports growth at 8.6% in fiscal 2019 slowed compared with 10% in last year. Uptick in exports
of engineering goods and chemicals and readymade garments.
● GDP growth likely to moderate to 5.9 – 6.1% in the fourth quarter of fiscal 2019.
● Credit to industry grew by 7%, of which large industry grew by 8.2%, followed by medium
industries 2.6% and micro and small by 0.7%. Under services growth of 18%, maximum growth
was observed under NBFC with 29%. Personal loan segment contributed 16% growth, of which
credit card 28.6%, housing 19% followed by 6% on vehicle loan.
● Total Income for the year ended 31.03.2019 is Rs. 21838 crores as against Rs. 21662 crores for
the year ended 31.03.2018, Interest Income stood at Rs. 17631 crores as against Rs. 17915
crores for the corresponding periods. Non-Interest Income registered a growth of 12.28% and
improved to Rs. 4206 crores for the year ended 31.03.2019 as against Rs. 3746 crores for the
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 previous year.

1.3.1 GROWTH OVER 5 YEARS (PROFIT)

Table 1.1

YEAR 2015 2016 2017 2018 2019

PROFIT 35.50 -936.19 -646.66 -3606.73 -1985.16

1.4 FUTURE PLANS

1. Indian Overseas Bank to focus on robust policy framework
● The total business of the bank stood at Rs 3,74,530 crore as of March 2019 as against Rs
3,67,831 crore as of FY 2018.
● public-sector Indian Overseas Bank would focus on maintaining
a robust policy framework and establishing various business verticals to reduce non-
performing assets, according to a top official of the bank.
● Bank would also look at conserving capital and reducing risk burden to protect interest
income and meet the provision requirement, Indian Overseas Bank managing director and
CEO R Subramania Kumar said in the annual report.
● On its plans going forward, he said the bank would look at building brand image and improve
recall value with improved customer service and enhanced digital- based dispensation.
● The bank has planned to rebalanced its credit portfolio with retail, agriculture and micro, small
and amp; medium enterprises share of total domestic advances improving from 66.14% to
67.20%.
2. Indian Overseas Bank eyes to raise Rs. 850cr in Financial Year 19-20
● The bank was looking at all avenues to improve capital position, the notification said, adding,
it was actively pursuing monetization of its non-core assets.
● Public sector Public sector Indian Overseas Bank on May 6 plans to raise about Rs850 crores
during the current financial year through sale of non-core assets, to augment capital. on May
6 plans to raise about Rs 850 crore during the current financial year through sale of non-core
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 assets, to augment capital.
● In a notification to the BSE, the city-based bank said it plans to raise the amount from sale of
properties and investments. And quota the bank is currently exploring its options for stake
sale in joint ventures to augment resources which could help raise over Rs 445crores’’.
● As part of the strategy to unlock assets to raise capital, the bank has identified 32 properties
for sale including prime properties in Singapore and Hongkong aggregating to Rs 900 crores.
● IOB will also initiated the process of unlocking value from non-core investments valued at Rs
72 crore to augment capital.
3. Government will increase authorized capital with IOB by Rs.5000cr
● IOB has also initiated the process of unlocking value from non-core investments valued at Rs
72 crores to augment capital.
● The increase in authorized capital will enable the Bank to take steps to shore up its capital
adequacy by way of issue of share capital including in case of further capital infusion by the
Government.’’
● IOB and board of directors has approved issue of equity capital during 2019-20 to a maximum
extent of 300 crore equity shares with appropriate premium by way of public issue, rights
issue, shares to employees, preferential issue and Qualified Institutional Placement. It has
received shareholders and; approval for the same in its Annual General Meeting on July 10,
2019.
4. IOB hopes to post profit in Q2, come out from PCA this fiscal
● Bank is focusing hard on reducing its net NPAs to achieve this end, will enter one- time
settlement with defaulters to pare bad loans.
● IOB is expecting to register a net profit in the September quarter of the current financial year
and come out of Prompt Corrective Action (PCA) by the end of the year.
● It will also be working on improving net interest income (NII) and net interest margin (NIM),
apart from boosting Current Account and Saving Account (CASA) deposits, among other
measures, in order to improve its performance, said Karnam Sekhar, managing director and
chief executive officer, IOB.
5. IOB loss making branches down to 157 from peak of 742
● The bank focus is to achieve profitability at grassroot level and that reduction in loss making
branches stands testimony to this effort.
● The bank added that higher thrust on retail and MSME is given to improve the yield, apart
from diversifying the risk. Branches incurring losses due to higher NPA are advised to focus
more on recovery apart from incremental lending to thrust areas of MSME and retail.

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 CHAPTER 2

VISION, MISSION and CSR ACTIVITIES

2.1 VISION
To be among the top five nationalized banks in terms of business volumes and sustained profitability
with global recognition guided by high standards of governance and ethics; and emerge as the "Most
Preferred Banking Partner" to unlock value to all its stakeholders.

2.2 MISSION
Deliver the best of competitive products in terms of quality, range, utility and cost effectiveness
Optimize our HR resources through training, exposure, mentoring and incentive, relying on the "soft
touch" instead of the "big stick". Develop quality bankers who would rise to be future leaders of the
industry. Contribute to country's economic growth through dedicated efforts and customer focus.
Streamline the process of service delivery from time to time to meet emerging requirements. Nurture
a climate of creative problem-solving to resolve customers' grievances with alacrity ensuring that the
Bank is regarded as Customer Centric. Emphasize a policy-oriented and rule-driven culture of
compliance to meet evolving requirements. Engineer CRM (Customer Relationship Management] and
insights gained for further enhancement of products and service quality. Expand IT infrastructure to
deliver all banking services from "one tap" irrespective of customer location. Adopt a multi-disciplinary
approach to facilitate future growth through the evolution of "banks within the Bank.

2.3 CSR ACTIVITIES

Indian Overseas Bank has been committed to and involve in various social causes, the most prominent
being women empowerment- the Sakthi Indian Overseas Bank Chidambaram Chettiar Memorial Trust
and Indian overseas Banks’s Promotion of the Agricultural Seed Bank. The Sakthi Indian Overseas Bank
Chidambaram Chettiar Memorial Trust is a public charity trust initiated by the Bank and its Staff
Representative organization in February 1996 in memory of Shri M.Ct. Chidambaram Chettiyar, the
founders of Indian Overseas Bank. To enable women in the lower strata of society to equip themselves
with the essential skills and knowledge required for embarking on a career of their choice. Indian
Overseas Bank Promotion of pulses Seed is a project in association with M.S. Swaminathan Research
Foundation, Chennai for the establishment of Seed Banks in various villages under Dryland farm. This
scheme is intended to increase the productivity of pulses in dryland farming. The District of
Ramanathapuram and Pudukkottai in Tamil Nadu were chosen for the 1st Phase of this project. To
increase the availability of good quantity seeds at the right time to small and marginal farmers. The
provision of market linkage for pulses.

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 CHAPTER 3

ORGANIZATION STRUCTURE

Chief Executive and

Managing Directors

Shri Karnam Sekar

Government Nominee
Directors

Ms. Annie George Mathew

Executive Director

Shri K.Swaminathan Shri Ajay Kumar Srivastava

Non - Executive director

Shri T.C.A.Ranganathan

Shareholder Directors

Shri Sanjay Rungta Shri Navin Prakash Sinha

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 CHAPTER 4

BANKING SERVICES AND PRODUCT INFORMATION

4.1 CREDIT CARD

There are two credit cards which are offered by the Indian Overseas Bank which are:
IOB Gold- The chargeable interest on roll over credit in this card is fixed at 24% p.a. In this card the
card-holders can enjoy the facility of flexible payment and also earn reward pints that are redeemable
for travel and lifestyle shopping. IOB Classic- This card also has interest fixed on the roll-over credit at
24% p.a. It also provides insurance cover in case of death, accidents, air crash and also baggage
insurance. Internet Banking facility and SMS alerts are provided by the company. The IOB credit cards
also give various insurance facilities without any charge:
Table 4.1

Insurance cover
Classic card Gold card
Personal Accident (Death due to air crash)

Self 4 lakhs 10 lakhs

Spouse 2 lakhs 2 lakhs

Self 2 lakhs 2 lakhs

Spouse 1 lakhs 1 lakhs

Baggage Insurance 0.25 lakhs 0.25 lakhs

Purchase Protection 0.25 lakhs 0.25 lakhs

Credit Card Statement

The above-mentioned credit cards generate a statement every month which shows the list of
transactions which were carried out by the customer during the previous month. This statement is
then sent to the customer so that any outstanding balance can be paid off.

4.2 SAVING ACCOUNTS

The bank offers savings accounts and deposit accounts to customers which earn interest. The type of
Savings Accounts which the bank offers is:
1.Regular Savings Bank Account
2.Savings Bank No Frills Account
3.IOB Savings Bank Gold I
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4.IOB Savings Bank Gold II
5.IOB Savings Bank Silver I
6.IOB Savings Bank Silver II
7.IOB SB Student
Table 4.2

Deposit Minimum Interest Loan Against

Documents Required
Category Balance Rate Deposit

Savings Proof of Identity, Address and

Rs 100 4.00 % p.a. NA
Account Passport sized photographs

All the above savings account schemes earn an interest rate of 4% p.a. paid on a daily product basis.

4.3 FIXED DEPOSIT INTEREST RATES

The following varieties of fixed deposit accounts are offered by the Indian Overseas Bank which earns
a higher interest rate:
1.Fixed Deposit
2.Floating Rate Deposit
3.Tax Saver Scheme
4.Deposit interest rates for amount up to Rs 1 crore:
Table 4.3

Deposit Tenure Interest Rate

7 days to 60 days 4.00%

61 days to 90 days 4.50%

91 days to 179 days 5.00%

180 days to 269 days 5.75%

270 days to 1 year 6.25%

The interest rate for IOB tax saver deposit scheme is 7% p.a. The interest rate of returns for senior
citizen is higher by 0.50% than the regular fixed deposit rates.

4.4 HOME LOANS

If you are looking for finance to buy a new home, renovate your old home or buy a plot to construct
your old home, the Indian Overseas Bank is your answer. The bank offers home loans to its customers
for the above-mentioned purposes. The following variants of a home loan are offered:

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1.ShubhGruha Housing Loans
2.Home Decor Mortgages
3.Mortgages – Liquoring (loan against rent receivable)
4.Mortgages – Easy Trade Finance
5.NRI Home Loan
6.Housing Loans – NRI – Home Loans for relatives of NRI

4.5 NRI BANKING

Non-Resident Indians (NRIs) can also enjoy the facility of banking in India and the Indian Overseas
Bank also offers its services in the said department. The following types of accounts are offered to
NRIs:
Foreign Currency Accounts- This account can be maintained in foreign currency namely US Dollar,
GBD, EUR, JPY, CAD, and AUD. The fund along with the interest is fully repatriable Accounts- This
account can be maintained as savings, current or term-deposit account and are Indian Rupee
denominated accounts. The account balance is fully repatriable with free interest income from income
tax. NRO Account- When a residing Indian becomes NRI, the Indian account held by him becomes NRO
Account and it is denominated in Indian Rupee. It can be in the form of savings, current or term
deposits. RFC Account- This account can be in the form of savings, or term-deposits and is maintained
in USD, EUR, CAD, GBP, JPY AUD. etc.

4.6 INTERNET BANKING

The bank allows customers to bank online by providing them the facility of internet banking. The
following transactions are some of the many transactions which can be accomplished online:
1.Details of the balances in the account
2.Statement of the account
3.Stoppage of the payment of cheques
4.Issue of cheques and drafts
5.Opening of Deposit accounts
6.Transfer of funds
7.Payment of taxes
8.Payment of various bills like telephone, mobile etc.
9.Information on various products and services
10.Information on various forms of loan as well as deposit modelling.

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 CHAPTER 5

COMPETITORS
Market
Companies Price Net Sales Net Profit Total Assets
Capital
9.93
United Bank 7375.92 8559.88 -2315.92 151529.93
-2.26%
Bank of 12.03
9242.21 17631.27 -3737.88 24768.11
Maharashtra -0.41%
14.90
UCO Bank 10969.67 8932.23 -1923.15 120859.80
-0.67%
17.30
Corporation Bank 10369.94 14330.63 -4321.09 230484.07
-1.70%
18.95
Central Bank 7818.61 22638.57 -6332.98 330717.67
0.00%
20.50
Punjab & Sind 1234.22 8558.67 -2786.13 108982.04
0.49%
27.25
IDBI Bank 21087.40 22071.23 -543.48 320284.49
0.74%
31.75
Syndicate Bank 8520.82 21725.40 -15116.30 311278.86
-1.09%
54.50
Union Bank 9608.44 34066.66 727.02 494038.83
1.49%
63.60
Bank of India 20841.23 40767.81 -5546.90 625222.84
0.39
65.05
Oriental Bank 8912.21 17867.69 54.99 271909.55
-2.40%
166.25
Indian Bank 8171.76 19184.81 321.95 280065.26
-0.33%
191.60
Canara Bank 14432.17 46810.34 347.02 694766.69
-0.70%
273.15
SBI 243775.76 242868.65 862.23 3680914.25
-0.65%

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 CHAPTER 6

FINANCIAL DATA ANALYSIS

Balance Sheet
Year Mar 15 Mar 16 Mar 17 Mar 18 Mar 19
SOURCES OF
FUNDS:
Capital 12,353.50 18,072.70 24,547.30 48,907.70 91,416.50
Reserves Total 1,44,056.70 1,38,585.50 1,12,898.20 83,832.10 72,182.30
Equity Share
0 0 0 0 0
Warrants
Equity Application
0 0 0 0 0
Money
Deposits 25,34,510.20 22,45,142.40 21,13,426.30 21,68,318.10 22,25,340.80
Borrowings 1,08,301.10 2,71,833.10 1,60,976.70 92,280.80 61,460.40
Other Liabilities &
57,148.30 70,734.00 59,826.40 86,341.60 49,683.60
Provisions
Others 0 0 0 0 0
TOTAL LIABILITIES 28,56,369.80 27,44,367.70 24,71,674.90 24,79,680.30 25,00,083.60
APPLICATION OF
FUNDS:
Cash & Balances
1,26,377.70 1,40,335.00 1,14,999.70 1,15,794.50 1,02,925.30
with RBI
Balances with
Banks & money at 1,22,607.70 82,127.40 1,17,230.70 1,49,655.40 2,05,989.70
Call
Investments 7,92,981.00 7,91,895.50 7,16,541.20 6,86,459.40 6,69,322.70
Advances 17,17,560.20 16,08,606.70 14,04,586.20 13,24,888.10 13,25,976.30
Fixed Assets 25,070.60 32,704.60 30,543.30 28,934.30 33,369.00
Other Assets 71,772.50 88,698.40 87,773.80 1,73,948.50 1,62,500.50
Miscellaneous
Expenditure not 0 0 0 0 0
written off
Others 0 0 0 0 0
TOTAL ASSETS 28,56,369.70 27,44,367.60 24,71,674.90 24,79,680.20 25,00,083.50
Contingent
8,35,314.90 7,58,587.30 6,81,377.70 5,83,439.30 5,65,967.80
Liability
Bills for collection 1,49,165.50 1,91,233.40 1,41,095.60 1,52,393.80 1,52,036.30

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 Profit And Loss Account

Year Mar 15 Mar 16 Mar 17 Marc 18 Mar 19

I INCOME:
Interest Earned 2,39,383.30 2,35,172.90 1,97,186.00 1,79,152.10 1,76,312.60
Other Income 21,386.00 25,282.60 33,726.40 37,464.40 42,063.20
Total 2,60,769.30 2,60,455.50 2,30,912.40 2,16,616.50 2,18,375.80
II. Expenditure
Interest expended 1,85,543.80 1,81,346.00 1,45,290.20 1,24,476.40 1,23,521.30
Payments to
Provisions for 26,495.40 33,904.00 30,446.70 29,941.50 26,468.50
Employees
Operating
Expenses &
8,089.00 8,615.90 8,687.80 8,224.10 8,456.90
Administrative
Expenses
Depreciation 1,490.00 1,964.80 2,148.60 2,724.70 3,042.40
Other Expenses,
Provisions & 38,036.80 71,905.90 78,148.40 1,37,566.90 1,16,492.10
Contingencies
Provision for Tax 11,802.40 4,185.30 2,685.50 598.1 141.4
Deferred Tax -6,144.80 -12,493.10 -2,327.40 -23,920.20 -22,368.00
Total 2,65,312.60 2,89,428.80 2,65,079.70 2,79,611.40 2,55,754.60
III. Profit & Loss
Reported Net Profit -4,543.30 -28,973.30 -34,167.40 -62,994.90 -37,378.80
Extraordinary
-110.2 12.5 11.4 17.8 0
Items
Adjusted Net Profit -4,433.10 -28,985.80 -34,178.80 -63,012.70 -37,378.80
Prior Year
0 0 0 69,789.50 0
Adjustments
Profit brought
0 -4,898.40 -34,235.90 -69,789.50 -63,737.00
forward
IV. Appropriations
Transfer to
0 0 0 0 0
Statutory Reserve
Transfer to Other
355.1 364.2 1,386.20 742.1 1,641.50
Reserves
Balance carried
forward to balance -4,898.40 -34,235.90 -69,789.50 -63,737.00 -1,02,757.20
sheet
Earnings Per Share
0 0 0 0 0
Unit Current
Earnings Per Share
0 0 0 0 0
(Adj)-Unit Current
Book Value-Unit
1,128.00 733.4 471.7 228.4 151.8
Current
Book Value (Adj)-
1,128.00 733.4 471.7 228.4 151.8
Unit Current

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6.1 Current Ratio: It shows the number of times the Current Liabilities are covered by Current Assets.
𝑪𝑼𝑹𝑹𝑬𝑵𝑻 𝑨𝑺𝑺𝑬𝑻𝑺
Current Ratio = 𝑪𝑼𝑹𝑹𝑬𝑵𝑻 𝑳𝑰𝑨𝑩𝑰𝑳𝑰𝑻𝑰𝑬𝑺

Table 6.1

Year 2015 2016 2017 2018 2019

Current
27,59,526.60 26,22,964.60 23,53,357.80 22,76,797.40 23,04,214.00
Assets
Current
57,148.30 70,734.00 59,826.40 86,341.60 49,683.60
Liabilities
Current
48.29 37.08 39.34 26.37 46.38
Ratio

Graph 6.1

CURRENT RATIO
60

50
48.29 46.38
40
39.34
30 37.08

20 26.37

10

0
2015 2016 2017 2018 2019

Current Ratio

Interpretation:
The ideal current ratio is 2: 1.
As the current ratio of this firm is more than ideal, it implies that firm is more liquid and have ability
to pay to pay its current obligation in time.

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6.2 Debt Equity Ratio: It measures the relationship between debts and equity.

𝑻𝒐𝒕𝒂𝒍 𝑳𝒊𝒂𝒃𝒊𝒍𝒊𝒕𝒊𝒆𝒔
Debt Equity Ratio = 𝑺𝒉𝒂𝒓𝒆𝒉𝒐𝒍𝒅𝒆𝒓𝒔 𝑭𝒖𝒏𝒅𝒔

Table 6.2
Year 2015 2016 2017 2018 2019
Total
28,56,369.80 27,44,367.70 24,71,674.90 24,79,680.30 25,00,083.60
Liabilities
Shareholders’
1,56,410.20 1,56,658.20 1,37,445.50 1,32,739.80 1,63,598.80
Funds
Debt Equity
18.26 17.52 17.98 18.68 15.28
Ratio

Graph 6.2

DEBT EQUITY RATIO

20
18
18.26 18.68
16 17.52 17.98
14 15.28
12
10
8
6
4
2
0
2015 2016 2017 2018 2019

Debt Equity Ratio

Interpretation:
The above graph depicts that the debt equity ratio should meet the 1:2 that means if the ratio is
greater than one the majority of assets are financed through debt. If it is less than one assets are
primarily financed through equity. In the graph every year debt equity ratio is more than one.

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Integrated Live Project Report
6.3 Investment to Deposited ratio: The total of all the long terms and short-term investments made
by the bank on other sources like banks, share market, loans and advances divided by the total amount
of deposit raised by the banks.
𝑰𝒏𝒗𝒆𝒔𝒕𝒎𝒆𝒏𝒕
Investment to Deposited ratio = X100
𝑫𝒆𝒑𝒐𝒔𝒊𝒕𝒆

Table 6.3
Year 2015 2016 2017 2018 2019
Investments 2534510.20 2245142.40 2113426.30 2168318.10 2225340.80
Deposits 792981.00 791895.50 716541.20 686459.40 669322.70
Investment to
Deposited 31.29 35.27 33.9 31.66 30.08
ratio

Graph 6.3

INVESTMENT TO DEPOSITED RATIO

36
35
35.27
34
33 33.9
32
31 31.66
31.29
30
30.08
29
28
27
2015 2016 2017 2018 2019

Investment to Deposit Ratio

Interpretation:
In the year 2015 the investment deposit ratio is 31.29% which increases to 3.98 % that is 35.27% in
2016 where as it again decreases to 1.37% which is 33.9% in 2017 by the year 2018 it decreases to
2.24% which means 31.66% and the continues to be decreasing in 2019 with 1.58% which is 30.08%.

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Integrated Live Project Report
6.4 Cash Deposit ratio: Cash deposit ratio is with reference to bank’s ratio of average cash balance
held against total deposit of a particular branch.
𝑪𝒂𝒔𝒉
Cash Deposit ratio = 𝑫𝒆𝒑𝒔𝒊𝒕 X100

Table 6.4
Year 2015 2016 2017 2018 2019
Cash 2,48,985.40 2,22,462.40 2,32,230.40 2,65,449.90 3,08,915.00
Deposit 25,34,510.20 22,45,142.40 21,13,426.30 21,68,318.10 22,25,340.80
Cash Deposit
4.99 6.25 5.44 5.34 4.63
ratio

Graph 6.4

CASH DEPOSIT RATIO

7

6
6.25
5 5.44 5.34
4.99
4 4.63

0
2015 2016 2017 2018 2019

Cash Deposit Ratio

Interpretation:
The graph depicts in the year 2015 ranges to be 4.99 by 2016 there was an increase by 6.25 and then
the ratio ranges continued to be brought down in the next three years.

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Integrated Live Project Report
6.5 Net Profit Ratio: It is the ratio of net profit to net sales.
𝑵𝒆𝒕 𝑷𝒓𝒐𝒇𝒊𝒕
Net Profit Ration = 𝑵𝒆𝒕 𝑺𝒂𝒍𝒆𝒔
X 100

Table 6.5
Year 2015 2016 2017 2018 2019
Net Profit -4,433.10 -28,985.80 -34178.80 -63012.70 -37378.80
Net sales 239383.30 235172.90 197186.00 179150.10 176312.60
Net Profit
-1.85 -12.33 -17.33 -35.17 -21.20
Ratio

Graph 6.5

NET PROFIT RATIO

0
2015 2016 2017 2018 2019
-5 -1.85

-10 -12.33

-15 -17.33
-21.2
-20

-25

-30
-35.17
-35

-40

Net Profit Ratio

Interpretation:
As this company shows high net profit ratio it indicates the efficient management of the affairs of
business.

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Integrated Live Project Report
6.6 Other Income to Total Income Ratio:
𝑶𝒕𝒉𝒆𝒓 𝑰𝒏𝒄𝒐𝒎𝒆
Other Income to Total Income Ratio = 𝑻𝒐𝒕𝒂𝒍 𝑰𝒏𝒄𝒐𝒎𝒆
X100

Table 6.6
Years 2015 2016 2017 2018 2019
Other Income 21,386.00 25,282.60 33,726.40 37,464.40 42,063.20
Total Income 2,60,769.30 2,60,455.50 2,30,912.40 2,16,616.50 2,18,375.80
Other Income
to Total Income 8.20 9.71 14.61 17.30 19.26
Ratio

Graph 6.6

OTHER INCOME TO TOTAL INCOME RATIO

25

20
19.26
15 17.3
14.61
10
9.71
8.2
5

0
2015 2016 2017 2018 2019

OTHER INCOME TO TOTAL INCOME RATIO

Interpretation:
In the year 2015 the other income is 8.2 where as in the year 2016 other income is 9.71 by the year
2017increases to 14.61 and then remains to by increasing in the last two years.

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Integrated Live Project Report
6.7 Operating Ratio: It is the ratio of operating expenses to net sales.
𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒏𝒈 𝒆𝒙𝒑𝒆𝒏𝒔𝒆𝒔
Operation Profit Ratio = 𝑵𝒆𝒕 𝑺𝒂𝒍𝒆𝒔
X 100

Table 6.7
Years 2015 2016 2017 2018 2019
Operating
8,089.00 8,615.90 8,687.80 8,224.10 8,456.90
Expenses
Net sales 239383.30 235172.90 197186.00 179150.10 176312.60
Operating
0.03 0.04 0.04 0.05 0.05
Profit Ratio

Graph 6.7

OPERATING RATIO
0.06

0.05
0.05 0.05
0.04
0.04 0.04
0.03
0.03
0.02

0.01

0
2015 2016 2017 2018 2019

OPERATING PROFIT RATIO

Interpretation:
This company shows high ratio which indicates that management is being very efficient in using a
company’s operating expenses for supporting sales.

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Integrated Live Project Report
6.8 Return on Investment: It is the ratio of Operating Profit to total Investment.

𝑵𝒆𝒕 𝑷𝒓𝒐𝒇𝒊𝒕
Return on Investment = 𝑰𝒏𝒗𝒆𝒔𝒕𝒎𝒆𝒏𝒕 X 100

Table 6.8

Years 2015 2016 2017 2018 2019

Net Profit
-4433.10 -28985.80 -34178.80 -63012.70 -37378.80
Ratio
Investment 7,92,981.00 7,91,895.50 7,16,541.20 6,86,459.40 6,69,322.70
Return on
-0.01 -0.04 -0.05 -0.09 -0.06
Investment

Graph 6.8

RETURN ON INVESTMENT
0
2015 2016 2017 2018 2019
-0.01
-0.01
-0.02
-0.03
-0.04
-0.04
-0.05
-0.05
-0.06
-0.06
-0.07
-0.08
-0.09
-0.09
-0.1

Return on Investment

Interpretation:

It shows higher ROI it means efficiently the company is using its assets base to generate sales.

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Integrated Live Project Report
6.9 Earnings Per Share: It represents the earning made per equity share.

𝑵𝒆𝒕 𝑷𝒓𝒐𝒇𝒊𝒕
Earnings Per Share = 𝑺𝒉𝒂𝒓𝒆𝒉𝒐𝒍𝒅𝒆𝒓𝒔 𝑭𝒖𝒏𝒅𝒔 X 100

Table 6.9

Years 2015 2016 2017 2018 2019

Net Profit
-4433.10 -28985.80 -34178.80 -63012.70 -37378.80
Ratio
Shareholders’
1,56,410.20 1,56,658.20 1,37,445.50 1,32,739.80 1,63,598.80
Funds
Earnings Per
-0.03 -0.19 -0.25 -0.47 -0.23
Share

Graph 6.9

EARNING PER SHARE

0
2015 2016 2017 2018 2019
-0.05
-0.03
-0.1

-0.15
-0.19
-0.2 -0.23
-0.25
-0.25

-0.3

-0.35

-0.4

-0.45 -0.47

-0.5

EARNING PER SHARE

Interpretation:
It shows low earning per share (EPS) this means the company is less profitable and the
company has less profits to distribute to its shareholders.

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Integrated Live Project Report
6.10 Return on Equity: It is the ratio of earnings available to equity shareholders to equity
shareholder’s funds.
𝑵𝒆𝒕 𝑰𝒏𝒄𝒐𝒎𝒆
Return on Equity= X 100
𝑬𝒒𝒖𝒊𝒕𝒚 𝑺𝒉𝒂𝒓𝒆𝒉𝒐𝒍𝒅𝒆𝒓𝒔 𝑭𝒖𝒏𝒅

Table 6.10
Year 2015 2016 2017 2018 2019
Net Income 2,60,769.30 2,60,455.50 2,30,912.40 2,16,616.50 2,18,375.80
Shareholders’
1,56,410.20 1,56,658.20 1,37,445.50 1,32,739.80 1,63,598.80
Funds
Return on
1.67 1.66 1.68 1.63 1.33
Equity

Graph 6.10

RETURN ON EQUITY
1.8

1.6 1.67 1.68

1.66 1.63
1.4

1.2 1.33

0.8

0.6

0.4

0.2

0
2015 2016 2017 2018 2019

Earings Per Equity

Interpretation:
ROE of 10% or less is unsatisfactory. But Indian Overseas Bank shows more than 10% it implies
that company is using its investor’s funds effectively

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Integrated Live Project Report