GROWTH OFSTATE BANK OF INDIA

Submitted By
RAJU SIR
TYBBI. Course semester III
Batch-2019-20

Submitted To:
Prof. ARCHANA TIWARI

VNS INSTITUTE OF MANAGEMENT

BARKATULLAH VISHWAVIDYALAYA,

Year-2011-13

1
 DECLARATION

I hereby declare that my Summer Training Report

entitled “ORGANISATIONAL STUDY AND FINANCIAL
ANALYSIS” is an authentic work done by me as part of my
study at (STATE BANK OF INDIA).
The Project was undertaken as a part of the
course curriculum of MBA Full Time Programme of
Barkatullah University , Bhopal. This has not been submitted
to any other examination body earlier.

Date: Signature -
Name: Shweta Agrawal
MBA (Full Time) III Sem
VNS Institute of
Management
 ACKNOWLEDGEMENT

I sincerely acknowledge with a deep heartfelt gratitude

to my Project In charge PROF. ARCHANA TIWARI for her
valuable and faithful guidance, encouragement &
suggestions throughout the completion of the Project work.

I would like to extend my sincere thanks to PROF. (Dr)

P.K. CHOPRA, Director VNS Institute of Management
Bhopal (M.P.) for his continuous support and guidance.

Last but not the least gratitude to all those who

extended their guidance directly or indirectly in completion
of this Project work.

SHWETA AGRAWAL
M.B.A (FULL TIME)
 TABLE OF CONTENTS

Sr. No. CHAPTERS PAGE No.

1 INTRODUCTION 5

INTRODUCTION TO TOPIC 5-32

OBJECTIVES 33

RESEARCH METHODOLOGY 34-41

LIMITATIONS 42

2 ORGANISATIONAL /COMPANY 43-54

PROFILE

3 DATA ANALYSIS AND 55-63

INTERPRETATION

4 OBSERVATION AND FINDINGS 64-65

5 CONCLUSIONS 66-67

6 RECOMMENDATIONS 68-70

7 BIBLIOGRAPHY 71-73

8 ANNEXURE 74-83
INTRODUCTION
TO GROWTH
OF STATE BANK
OF INDIA
 INTRODUCTION TO STATE
BANK OF INDIA

The origin of the State Bank of India goes back to the first
decade of the nineteenth century with the establishment of
the Bank of Calcutta in Calcutta on 2 June 1806. Three years
later the bank received its charter and was re-designed as
the Bank of Bengal (2 January 1809). A unique institution, it
was the first joint-stock bank of British India sponsored by
the Government of Bengal. The Bank of Bombay (15 April
1840) and the Bank of Madras (1 July 1843) followed the
Bank of Bengal. These three banks remained at the apex of
modern banking in India till their amalgamation as the
Imperial Bank of India on 27 January 1921.

Primarily Anglo-Indian creations, the three presidency banks

came into existence either as a result of the compulsions of
imperial finance or by the felt needs of local European
commerce and were not imposed from outside in an
arbitrary manner to modernize India's economy. Their
evolution was, however, shaped by ideas culled from similar
developments in Europe and England, and was influenced by
changes occurring in the structure of both the local trading
environment and those in the relations of the Indian
economy to the economy of Europe and the global economic
framework.

Bank of Bengal H.O.

Establishment
The establishment of the Bank of Bengal marked the advent
of limited liability, joint-stock banking in India. So was the
associated innovation in banking, viz. the decision to allow
the Bank of Bengal to issue notes, which would be accepted
for payment of public revenues within a restricted
geographical area. This right of note issue was very valuable
not only for the Bank of Bengal but also its two siblings, the
Banks of Bombay and Madras. It meant an accretion to the
capital of the banks, a capital on which the proprietors did
not have to pay any interest. The concept of deposit banking
was also an innovation because the practice of accepting
money for safekeeping (and in some cases, even investment
on behalf of the clients) by the indigenous bankers had not
spread as a general habit in most parts of India. But, for a
long time, and especially upto the time that the three
presidency banks had a right of note issue, bank notes and
government balances made up the bulk of the investible
resources of the banks.

The three banks were governed by royal charters, which

were revised from time to time. Each charter provided for a
share capital, four-fifth of which were privately subscribed
and the rest owned by the provincial government. The
members of the board of directors, which managed the
affairs of each bank, were mostly proprietary directors
representing the large European managing agency houses in
India. The rest were government nominees, invariably civil
servants, one of whom was elected as the president of the
board.

Business
The business of the banks was initially confined to
discounting of bills of exchange or other negotiable private
securities, keeping cash accounts and receiving deposits and
issuing and circulating cash notes. Loans were restricted to
Rs.one lakh and the period of accommodation confined to
three months only. The security for such loans was public
securities, commonly called Company's Paper, bullion,
treasure, plate, jewels, or goods 'not of a perishable nature'
and no interest could be charged beyond a rate of twelve per
cent. Loans against goods like opium, indigo, salt woolens,
cotton, cotton piece goods, mule twist and silk goods were
also granted but such finance by way of cash credits gained
momentum only from the third decade of the nineteenth
century. All commodities, including tea, sugar and jute,
which began to be financed later, were either pledged or
hypothecated to the bank. Demand promissory notes were
signed by the borrower in favor of the guarantor, which was
in turn endorsed to the bank. Lending against shares of the
banks or on the mortgage of houses, land or other real
property was, however, forbidden.

Indians were the principal borrowers against deposit of

Company's paper, while the business of discounts on private
as well as salary bills was almost the exclusive monopoly of
individuals Europeans and their partnership firms. But the
main function of the three banks, as far as the government
was concerned, was to help the latter raise loans from time
to time and also provide a degree of stability to the prices of
government securities.

Major change in the

conditions
A major change in the conditions of operation of the Banks of
Bengal, Bombay and Madras occurred after 1860. With the
passing of the Paper Currency Act of 1861, the right of note
issue of the presidency banks was abolished and the
Government of India assumed from 1 March 1862 the sole
power of issuing paper currency within British India. The task
of management and circulation of the new currency notes
was conferred on the presidency banks and the Government
undertook to transfer the Treasury balances to the banks at
places where the banks would open branches. None of the
three banks had till then any branches (except the sole
attempt and that too a short-lived one by the Bank of Bengal
at Mirza pore in 1839) although the charters had given them
such authority. But as soon as the three presidency bands
were assured of the free use of government Treasury
balances at places where they would open branches, they
embarked on branch expansion at a rapid pace. By 1876, the
branches, agencies and sub agencies of the three presidency
banks covered most of the major parts and many of the
inland trade centres in India. While the Bank of Bengal had
eighteen branches including its head office, seasonal
branches and sub agencies, the Banks of Bombay and
Madras had fifteen each.

Presidency Banks Act

The presidency Banks Act, which came into operation on 1

May 1876, brought the three presidency banks under a
common statute with similar restrictions on business. The
proprietary connection of the Government was, however,
terminated, though the banks continued to hold charge of
the public debt offices in the three presidency towns, and the
custody of a part of the government balances. The Act also
stipulated the creation of Reserve Treasuries at Calcutta,
Bombay and Madras into which sums above the specified
minimum balances promised to the presidency banks at only
their head offices were to be lodged. The Government could
lend to the presidency banks from such Reserve Treasuries
but the latter could look upon them more as a favour than as
a right.

The decision of the Government to keep the surplus balances

in Reserve Treasuries outside the normal control of the
presidency banks and the connected decision not to
guarantee minimum government balances at new places
where branches were to be opened effectively checked the
growth of new branches after 1876. The pace of expansion
witnessed in the previous decade fell sharply although, in the
case of the Bank of Madras, it continued on a modest scale
as the profits of that bank were mainly derived from trade
dispersed among a number of port towns and inland centres
of the presidency.

India witnessed rapid commercialisation in the last quarter of

the nineteenth century as its railway network expanded to
cover all the major regions of the country. New irrigation
networks in Madras, Punjab and Sind accelerated the process
of conversion of subsistence crops into cash crops, a portion
of which found its way into the foreign markets. Tea and
coffee plantations transformed large areas of the eastern
Terais, the hills of Assam and the Nilgiris into regions of
estate agriculture par excellence. All these resulted in the
expansion of India's international trade more than six-fold.
The three presidency banks were both beneficiaries and
promoters of this commercialisation process as they became
involved in the financing of practically every trading,
manufacturing and mining activity in the sub-continent.
While the Banks of Bengal and Bombay were engaged in the
financing of large modern manufacturing industries, the
Bank of Madras went into the financing of large modern
manufacturing industries, the Bank of Madras went into the
financing of small-scale industries in a way which had no
parallel elsewhere. But the three banks were rigorously
excluded from any business involving foreign exchange. Not
only was such business considered risky for these banks,
which held government deposits, it was also feared that
these banks enjoying government patronage would offer
unfair competition to the exchange banks which had by then
arrived in India. This exclusion continued till the creation of
the Reserve Bank of India in 1935.

Presidency Banks of Bengal

The presidency Banks of Bengal, Bombay and Madras with

their 70 branches were merged in 1921 to form the Imperial
Bank of India. The triad had been transformed into a
monolith and a giant among Indian commercial banks had
emerged. The new bank took on the triple role of a
commercial bank, a banker's bank and a banker to the
government.

But this creation was preceded by years of deliberations on

the need for a 'State Bank of India'. What eventually
emerged was a 'half-way house' combining the functions of a
commercial bank and a quasi-central bank.

The establishment of the Reserve Bank of India as the

central bank of the country in 1935 ended the quasi-central
banking role of the Imperial Bank. The latter ceased to be
bankers to the Government of India and instead became
agent of the Reserve Bank for the transaction of government
business at centres at which the central bank was not
established. But it continued to maintain currency chests and
small coin depots and operate the remittance facilities
scheme for other banks and the public on terms stipulated
by the Reserve Bank. It also acted as a bankers' bank by
holding their surplus cash and granting them advances
against authorized securities. The management of the bank
clearing houses also continued with it at many places where
the Reserve Bank did not have offices. The bank was also the
biggest tendered at the Treasury bill auctions conducted by
the Reserve Bank on behalf of the Government.
The establishment of the Reserve Bank simultaneously saw
important amendments being made to the constitution of the
Imperial Bank converting it into a purely commercial bank.
The earlier restrictions on its business were removed and the
bank was permitted to undertake foreign exchange business
and executor and trustee business for the first time.

Imperial Bank

The Imperial Bank during the three and a half decades of its
existence recorded an impressive growth in terms of offices,
reserves, deposits, investments and advances, the increases
in some cases amounting to more than six-fold. The financial
status and security inherited from its forerunners no doubt
provided a firm and durable platform. But the lofty traditions
of banking which the Imperial Bank consistently maintained
and the high standard of integrity it observed in its
operations inspired confidence in its depositors that no other
bank in India could perhaps then equal. All these enabled the
Imperial Bank to acquire a pre-eminent position in the Indian
banking industry and also secure a vital place in the
country's economic life. When India attained freedom, the
Imperial Bank had a capital base (including reserves) of
Rs.11.85 crores, deposits and advances of Rs.275.14 crores
and Rs.72.94 crores respectively and a network of 172
branches and more than 200 sub offices extending all over
the country.

First Five Year Plan

In 1951, when the First Five Year Plan was launched, the
development of rural India was given the highest priority.
The commercial banks of the country including the Imperial
Bank of India had till then confined their operations to the
urban sector and were not equipped to respond to the
emergent needs of economic regeneration of the rural areas.
In order, therefore, to serve the economy in general and the
rural sector in particular, the All India Rural Credit Survey
Committee recommended the creation of a state-partnered
and state-sponsored bank by taking over the Imperial Bank
of India, and integrating with it, the former state-owned or
state-associate banks. An act was accordingly passed in
Parliament in May 1955 and the State Bank of India was
constituted on 1 July 1955. More than a quarter of the
resources of the Indian banking system thus passed under
the direct control of the State. Later, the State Bank of India
(Subsidiary Banks) Act was passed in 1959, enabling the
State Bank of India to take over eight former State-
associated banks as its subsidiaries (later named
Associates).

The State Bank of India was thus born with a new sense of
social purpose aided by the 480 offices comprising branches,
sub offices and three Local Head Offices inherited from the
Imperial Bank. The concept of banking as mere repositories
of the community's savings and lenders to creditworthy
parties was soon to give way to the concept of purposeful
banking sub serving the growing and diversified financial
needs of planned economic development. The State Bank of
India was destined to act as the pacesetter in this respect
and lead the Indian banking system into the exciting field of
national development.

STATE BANK OF INDIA

 Old name : Bank of Calcutta (1809), Bank of

Bengal (1809) and Imperial Bank of India
(1921)

 Estd. In Year : 1806

 Founder : Bengal Government

 Nationalization : 1955
  Head Office : Mumbai (Maharashtra)

 Share Capital : 41 percent (RBI)

 Capital : Rs. 5581Crores

SBI ASSOCIATES
 STATE BANK OF BIKANER AND JAIPUR

 Old Name : The Govind Bank Private Limited

 Nationalization : 1959

 Head Office : Jaipur ( Rajasthan)

 Share Capital : 75 percent(SBI)

 STATE BANK OF HYDERABAD

 Old Name : Hyderabad

 Estd. in Year : 1941

 Nationalization : 1959

 Head Office : Hyderabad (Andhra Pradesh)

 Share Capital : 100 percent (SBI)

 STATE BANK OF INDORE

 Old Name: Bank of Indore Ltd.

 Nationalization : 1959

 Head Office : Indore (Madhya Pradesh)

 Share Capital : 98.05 percent (SBI)

 STATE BANK OF PATIALA

 Old Name : Patiala State Bank

 Estd. in Year : 1917

 Founder : Maharaja Bhupinder Singh

  Nationalization : 1959

 Head Office : Patiala (Punjab)

 Share Capital : 100 percent (SBI)

 STATE BANK OF SAURASTRA

 Old Name : Saurastra state Bank

 Estd. in Year : 1902

 Nationalization : 1959

 Head Office : Bhavnagar (Gujarat)

 Share Capital : 100 percent (SBI)

 STATE BANK OF MYSORE

 Old Name: Bank of Mysore Ltd.

 Estd. in Year : 1913

 Founder : M. Visheshwaraiya

 Nationalization : 1959

 Head Office : Bangalore (Karnataka)

 Share Capital : 92.33 percent (SBI)

 STATE BANK OF TRAVANCORE

 Old Name: Travancore Bank Ltd.

 Estd. in Year : 1945

 Nationalization : 1959

 Head Office : Trivandrum (Kerala)

 Share Capital : 75 percent (SBI)

 TOPIC &
WORKING IN
STATE BANK OF
INDIA
 TOPIC AND WORKING
IN STATE BANK OF
INDIA

LIST OF PRODUCTS:-
Branch Code 4823
Branch Name GOVINDPURA
PRODUCTS/SERVICES OFFERED
Personal Banking
Current Accounts
Savings Bank
Savings Plus
Term Deposits
Reinvestment Plan
Multi Option Deposits
Recurring Deposits
Public Provident Fund Scheme
Housing Loans
Car Loans
Education Loans
Consumer Durables Loans
Personal Loans
Property Loans
Loans to Pensioners
Loans against Shares And Debentures
Gold Loans
Demand Loans on Term Deposits
 Demand Loans against Govt. Securities
NRI Banking
Non Resident External Rupee Accounts (NRE)
Ordinary Non Resident Rupee Accounts (NRO)
Non Resident Special Rupee Accounts
Corporate Banking
Cash Credits
Medium Term Loans
Small Scale Industries
Liberalised Scheme
Entrepreneur Scheme
Equity Fund Scheme
Small Business Finance
Retail Trade
Professionals and Self Employed
Business Enterprises
Transport Operators
Government Business
CBDT
Special Deposit Scheme
Posts
Central Civil Pensions
Defense Pensions
Telecom Pensions
State Govt. Pensions
Other Services
Safe Deposit Lockers
Safe Custody
Rupee Travellers Cheques
Gift Cheques
ATM Services
ATM Services
ATM Services
Demat Services
Demat Services
 Demat Services
Other Services
Internet Banking
Miscellaneous Business
Demand Drafts
Telegraphic Transfers
STEPS (Electronic Transfers)
Collections (Cheques)
A. INTRODUCTION TO TOPIC

Concept of financial statement:

Accounting is the process of identifying, measuring and communicating
information to its users. It involves recording, classifying various
business transactions. The financial statement used in accounting safes
two statement profit & loss A/c or income statement and Balance sheet
or position statement. With the help of financial as well as the outsider
who are interested in affairs of the firms like creditors customers,
supplies, financial institution, encloses government, and public.
Definition:-
1. In the words of john N. Myer :- “the financial statement
provides a summery of the accounts of a business enterprise, the
balance sheet is eating the assets, liabilities and capital as on a
creation date and the income statement showing the result of
operations during a certain period.”
2. According to Anthony :- financial statement essentially are
interim reports, presented annually and select a division of the
life of an enterprise into more or less arbitrary accounting reread
more frequently a year.
1.3 : Importance of financial statement :
Financial statements constitute valuable piece of information to various
uses in different ways the utility of financial statement to different
parties is discarded or follows :-
1. For the management :- Management is interested in knowing
the existing profits, possibility of growth, relative
performances, cost information etc. from the financial
statement, so that it can be suitable strategy for its entity.
2. For the Creditors :- the creditors are to be paid in a short
period the creditors are interested in knowing entity’s
capability to repay the amount and interest as and when
repayment, becomes due, so they are interested in finding out
profitability, cash flows etc. of the entity,
3. For the Manages :- Managers are interested in knowing the
social image, chances of promotion and the capacity of the
entity to compensate them Manager wants to know
profitability and chances of grow the of the company.
4. For the employees :- Employs are interested in job
satisfaction, job security, promotion, bonus declaration,
employees welfare scheme etc. of these unit, so they wants to
information an profit ability and future prospects of the
company.
5. For the bankers :-Bankers are interested in the security of the
loan advanced, firms capacity to repay the principal interact
as per terms.
6. For the customers :- Customers are interested in raw product
resource, product safety, and socially responsible policies of
the entity, Information Statement and reports.
7. For the Society :- Society is interested in economic progress of
the country that depends upon the performance of individual
economic entities.
8. For the Investor :- the investor inducing both type of short
term and long term investor Investor mill not only analyses
the present financial position but is will also study in future
planning they wants to know now to safe the investment
already made is and how safe the proposed investment will
be.
9. Share holder :- shareholders or proprietors of the business an
interested in the well being of the business, inky are likely to
know the earning capacity of the business and its prospects of
the future growth.
10. Debenture holder :- debenture holders are interested to know
whether the financial position of the company is sound or not.
Financial Analysis :-
Concept of financial Analysis :- F.A an enterprise or a firm is the
process of identifying the financial strength and weakness of the
firm by properly establishing the scale township between the ions of
the Balance sheet and project & loss A/c. the tern financial analysis
extends to include the interpretation of financial statement.
Definition 1.5
According to Metcalf R.W and Tetrad P.L :-
“Analyzing financial statements is a process of evaluating
relationship between component parts of financial statements to
obtain a better understanding of forms, position & performance”.
 Types of financial Analysis:-
Types of financial analysis

Basis of Material used Basis of method

adopted

External Analysis Internal Horizontal Analysis

Analysis Retical Analysis

The analysis of financial statement for a firm car be undertaken

in different ways, different person or parties may be undertake the
analysis of financial statement in the analysis of financial state mint
may be the shareholders, the creditors, the financial institution the
investor and the management itself. The analysis of financial statement
can be classified into different categories are as follows:
(i) on the basis of Material used :- According to material used,
financial Analysis can be of 2 types
(a) External analysis (b) Internal analysis
(a) External Analysis :- This analysis is performed by outside
parties such as trade creditors , investor, supplies of long debts etc.
this type of analysis is conducted for measuring the operational and
managerial efficiency at different level of the firm. This group depends
almost contritely on published financial statements, this type of
analyses is very quite comprehension and sellable it is curried out on
the basis of published information or by there who do not have the
detailed seconds of the company.
(b) Internal Analysis :- this analysis is performed by the corporate
finance and accounting department and is more detailed than external
analysis. This is boned on detailed information available to outsider this
type of analysis for used of managerial purpose and it can be effected
depending upon the pus- pose to be ache cued. Its conducted by the
excite and emplaces of the enterprises as well as the governmental
and court agencies.
(ii) on the basis of Method adopted :- According to the method adopted,
financial analysis can also be of 2 types. :-
(a) Horizontal Analysis (b) vertical analysis
(a) Horizontal Analysis :- when financial statements for a number
of years are seaweed and analyses , this type of analysis is called
Horizontal Analysis this analysis is useful for long term trend analysis
and planning. It is based on the data from year one year to another are
identified this to also known as the ‘Dynamic Analysis’. It cores a
period of more than I years. It compares the financial statement i.e.
project & loss A/c and Balance sheet of previous year along with the
current year.
(b) Recital Analysis :- this analysis convert each element of the
information into a percentage of a total amount of statement so or to
established relationship with other components of the same
statements it is based on relationship among items in a single period. It
can be provided by a study conducted over a numbers of years, so that
comparison can be effected. It is also known as the ‘vertical Analysis’.
Significance of financial Analysis:-
1. The main significance of financial Analysis depends upon the
management, invertors, Bankers, debenture holders,
Government etc.
2. They want to know the capacity to meet the short term loans,
financial soundness in long run profitability or performance of
one unit with other unit of the same industry.
3. they also wants to find out whether the target and goods are
achieved. or not and they valuate the performance of different
 depart mints, investors want to know the their investment is
safe.
4. They are interested to know the financial portion of any concern.
5. People are financial statements Analysis for satisfying their
particular curiosity.
1.8 Meaning of financial statement Analysis:-
Financial statement Analysis is establishing the relationships and
interpretation there of to understand the working and the financial
position firm. There analysis of financial statement is the process of
establishing and identifying the financial weakness and strength of the
firm. It is also known as the analysis of financial statement evaluating
the relationship between component parts of financial statement for
getting a better understanding of the firmer position and performance.
The basic tool of financial statement analysis is financial ratio
analysis. It is verified as follows:-
- Types of Financial
- Liquidity ratio
- Turnover ratio
- Leverages ratio
- Profitability ratio
- Growth ratio
- Valuation ratio
1.9 Methods of financial statement Analysis:-
The following methods of analysis are generally used:-
A. Comparative Method
B. Trend Analysis
C. Common size statement
D. Ratio Analysis
A. Comparative Statement:- The comparative financial
statement are statement of the financial position at different
period; of time. The element of financial position are shown in
a comparative form so as to give an idea of financial position
at 2 or more periods. Any statement prepared in a
 comparative form will be covered in comparative statement.
Similarly, comparative figures will indicate the trend &
direction of financial position and operative results.
B. Trend Analysis:- The financial statement may be analysis by
computing trends of series of information. This method
determines the direction up words or downwards and involves
the computation of the percentage relationship that each
statement item bears to the same item in base year. The
information for a number of years is taken up and one year,
generally the first year, is taken as a base year the figures of
the base year are taken as 100 and trend ratios for other
years are calculated on the basis of base year. The analyst is
able to see the trend of figures, whether upward or downward.
C. Common size statement:- The Common size statement,
balance sheet and income statement, are shown in analytical
percentages. The figures are shown as percentage of total
assets, total liabilities and total sales. The total assets are
taken as 100 and different assets are expressed as a
percentage of the total. Similarly, various liabilities are taken
as a part of total liabilities.
D. Ratio Analysis:- The ratio analysis is one of the most
powerful tools of financial analysis. It is the process of
establishing and interpreting various ratios. It is with the help
of ratios that the financial statement can be analyzed more
clearly and decisions made from such analysis. Ratio analysis
is not an end in itself. It is only means of better understanding
of financial strength.

METHOD OF FINANCIAL STATEMENT ANALYSIS

The analysis and interpretation of financial statements is used to
explain the financial position and result of operation as well there are
different type of devices or methods are used to study the relationship
between different statements. Analysis of financial statement is the
process of establishing and identifying the financial weakness and
strength of the fire. The purpose of financial analysis is to diagnose the
information contained in financial statement so as to judge the
profitability and financial soundness of the firm. Financial statements
analysis is an attempt to determine the significance and meaning of
the financial statement data. People use financial statement Analysis
for satisfying their particular curiosity. Most of the authors have used
the term analysis only to cover the meanings of both analysis and
interpretation as the objective of analysis is to study the relationship
between various items of financial statements by interpreting we have
also used the term financial statement Analysis or simply “financial
Analysis” to cover the meaning of both analysis and interpretation.
 Techniques of financial statement Analysis:
Ratio’s

(A) (B)
(C)
Traditional Functional
Significance
Classification Classification
Ratios

1. Balance Sheet ratios 1. Liquidity ratio 1.

Primary ratio

Position Statement ratios 2. Leverages Ratio

2. Secondary ratios

2. Profit & Loss Ak ratio 3. Actively ratio

Revenue/ Income Statement Raito 4. Profitability ratio

3. Composite/ Mixed Ratios

Inter Statement ratios.
 1.
Limited use of single
Ratio

8.
Price Level Change

4.9 Limitation of ratio Analysis

TECHNIQUES OF FINANCIAL STATEMENTS

Comparative Statement

Common Size Statement

Trend Analysis

Fund Flow Statement

Cash Flow Statement

Ratio Analysis

31
Comparative statement:- The comparative financial statements are
statement of the financial position at different periods; of time. The
elements of Financial position are shown in a comparative from so as
to give an idea of financial position at 2 or more periods. Any statement
prepared in a comparative form will be covered in comparative
statements. From practical point of view, generally, tow financial
Statements are prepared in comparative form for financial analysis
purposes. Not only the comparison of the figures of two periods but
also be relationship between balance sheet and income statement
enables an in-depth study of financial position and operative results.
The financial data will be comparative only when same accounting
principles are used in preparing these statements. In case of any
deviation in the use of accounting principles this fact must be
mentioned at the foot of financial statements and the analyst should be
careful in using these statement. The two comparative statements are
(i) Balance sheet, and (ii) Income Statement.

(i) Comparative Balance sheet

(ii) Comparative Income statement

Common-size statement:-

The common-size statements, balance sheet and income

statements are shown in analytical percentages. The figures are
shown as percentages of total assets, total liabilities and total sales.
The total assets are taken as 100 and different assets are expressed
as a percentage of the total. Similarly various liabilities are taken as
a pat of total liabilities. These statements are also known as
compound percentage or 100% statement because every individual

3
2
trend percentage where changes in items could not be the analyst is
able to assess the figures in relation to total values. The common-
size statement may be prepared in the following way: -

(1) The totals of assets or liabilities are taken as 100.

(2)The individual assets are expressed as a percentage i. e. 100 and

different liabilities are calculated in relation to total liabilities.

(i) Common- size balance sheet

(ii) Common size income statement

Trend Analysis:- The financial statements may be analyzed by

computing trends of series of information this method determines
the direction upwards or downwards and involves the computation
of the percentage relationship that each statement item bars to the
same item in base year. The information for a number of years is
taken up and one year, generally the first year is taken as a base
years. The figures of the base year are taken as 100 and trend
nations for other years are calculated on the basis of base year. The
analyst is able to see the trend of figures, whether upward or
downward. For examples if sales figures for the year 2000 to 2005
are to be studied, then sales of 2000 will be taken as 100 and the
percentage of sales for all other years will be calculated in relation
to the base year, i-e, 2000.

Fund flow statement:- Fund flow statements is a method by

which we study changes in the financial position of a business
enterprise between beginning and ending financial statements
dates. It is a statement showing sources and uses of funds for a
period of time. In other words the funds flow statement describes
the sources from which additional funds were derived and the use
to which these sources were put. Thus, funds flow statement is a
statement which indicates various means by which the finds have
been obtained during a certain period and the ways to which these
funds have been used during that period. The term “funds’ used
have means working capital, i-e, the excess of current assets over
current liabilities.

Cash flow statement:- Cash flow statement is a statement which

describes the inflows and outflows of cash and cash equivalents in
an enterprise during a specified period of time. Such a statement
enumerates net effects of the various business transactions on cash
and its equivalents and takes into account receipts and
disbursements the cash. A cash flow statement summaries the
causes of changes in cash position of a business enterprise between
dates of two balance Sheets. Cash flow statement should present it
for each period for which financial statements are prepared. This
statement should report cash flows during the period classified by
operating, investing and financing activities. Thus, cash flows are
classified into 3 main categories:-

(i) Cash flow from operating activities.

(ii) Cash flow from investing activities.

(iii) Cash flow from financing activities.

Ratio Analysis:

Meaning:- Ratio Analysis is a technique of analysis and interpretation

of financial statements. It is the process of establishing and
interpreting various ratios for helping in making certain decision. Ratio
Analysis is not an end in itself. It is only a means of better
understanding of financial strengths and weaknesses of a firm. It is one
of the most powerful tools of financial analysis. “ A ratio is known as a
symptom like Blood pressure the rules rate or the temperature of an
individual’. It is with help of ratios that the financial statements can be
analyzed more early and decisions made from such analysis.

Limitation of Ratio Analysis: -

1. Limited use of a single ratio

2. Lack of Adequate standards

3. Ratios no substitute.

4. Change of Accounting procedure.

5. Window dressing

6. Incomparable

7. Personal bias

8. Price level changes

Classification of Ratios:
Various accounting ratios can be classified as follows:-
(A) Traditional classification or statement ratios

(1) Balance sheet ratios or position statement ratio:

Balance sheet ratios deal with the relationship between two

balanced sheet items. E.g. the ratio of current assets to current
liabilities, or the ratio of proprietors funds to fixed assets. The
 various balance sheet ratios have been named in the chart
classifying statements ratios.

(2) Profit & loss a/c ratios or revenue/Income statement

ratio :-

This ratio deal with the relationship between two profit & loss A/C
items. E.g. the ratio of gross profit to sales, or the ratio of Net
profit to sales. The various profit & loss A/ ratios, commonly used,
are named in the chart classifying statement ratios.

(3) Composite/mixed ratios or inter statement ratios:-

These ratios exhibit the relationship between a profit & loss A/c
or Income statement item and a balance sheet item, e.g. stock
turnover ratio, or the ratio of total assets to sales. The most
Commonly used inter-statement ratios are given in the chart
exhibiting traditional classification or statement ratios.

(B) Functional classification or Classification According to test

(1) Liquidity Ratios: - These are the ratios which measure the short
term solvency or financial position of a firm the various liquidity ration
are: current ratio, liquid ratio and absolute liquid ratio.

(2) Leverage Ratios:- Leverages ratio convey a firms ability to

meet the interest cost and repayments. Schedules of its long term
obligations e.g. debt Equity Ratio and Interest Coverage Ratio.

Activity Ratios:- Activity ratios are calculated to measure the

efficiency with which the resources of a firm have been employed. The
various activity or turnover ratios have been named in the chart
classifying the ratios.
B. OBJECTIVES

Objectives of the research study

Management of working capital is very essential in modern

business. Financial statement analysis of working capital is also
very useful for short term management of time.

The following are the main objectives of my research study.

i. To analyze the sources of financial analysis of STATE BANK

OF INDIA bank.

ii. To analyze the sources of financial management of STATE

BANK OF INDIA bank.

iii. To examine the overall financial management of STATE

BANK OF INDIA bank.
C. RESEARCH METHODOLOGY

RESEARCH OBJECTIVES
The above mentioned review literature would have clearly indicated
the two different strategies adopted by the two competing brands in
Singapore automobile market. In order to understand the depth of the
topic the research objectives have been set by the researcher.

Research Design
According to Aaker, Kumar & Day (2001) descriptive research covers a
large proportion of marketing research. This being a quantitative
research which is to decide of how one variable affects another
variable, there are three basic types of research design that is
exploratory, casual and descriptive research design. A descriptive
research design is the one that describes something such as
demographic characteristics of consumers who uses a product or a
service. The descriptive study is typically concerned with determining
frequency with which something occurs or how two variables vary.
Aaker and George (2000), a descriptive study establishes only
associations between variables. The purpose is to provide an accurate
snapshot of some aspect of the market environment.

There are three types of research designs, namely:

(a) Exploratory

(b) Descriptive,

(c) Causative

Exploratory Research:
According to Rajan Saxena, Exploratory research is conducted when
the researcher does not know how and why a certain phenomenon
occurs. In doing so, they used focus groups. Since the prime goal of an
exploratory research is to know the unknown, this research is
unstructured. Focus groups, interviewing key customer groups, experts
and even search for printed or published information are some
common techniques.
Descriptive Research:
Descriptive research is carried out to describe a phenomenon or
market characteristic. Generally, descriptive research is carried out
only when the researcher understands the phenomena or behavioral
characteristics.

Causative Research:
Causative research is done to establish a cause and effective
relationship. Here the researcher may like to see the effect of rising
income and changing life style on consumption of select products. In a
causative research, unlike exploratory or descriptive, hypotheses are
tested. Hypothesis is a statement of predicted outcomes of the
research. In building up a hypothesis, it is important that the
researcher understands the phenomena thoroughly, or a body of
research that exists on the subject matter

Descriptive research studies are those study which are concerned with
describing the character. It is move valuable because researcher has
no control over the variables what has happened or what is happening
is considered so it is very accurate so we can say it is more valuable.

In this study, for practical reasons, a descriptive approach would be

used, considering the proposed study would embrace the above
characteristics of a descriptive study.

Types of Research

The object is comparing the brand equity of European and Asian

automotive brands. Simple way to find out the relative success of one
of the two identical car sold in Singapore. In a research when we talk of
research methodology, we not only take Research methodology, but
also considered the logic behind the method we used in the contest of
our research study and explain why we are using a particular method.
This way we can be stated as under.

1. It relies on empirical evidence

 2. it utilize relevant concepts

3. it is committed to only objective consideration

4. it result into probabilistic prediction

In a method particular research problem involve usually the

consideration of the followings means of obtaining the information

Explanation of the way in which related means of obtaining

information will be organized and the reasoning leading to the selection
Investing the reasons for human behavior i.e. people thinks or do
certain thinks so we comes for quantitative reaches

Types of research are generally classified into two methodologies,

qualitative and quantitative. Malhotra (2004) defines qualitative
research as “An unstructured, exploratory research methodology based
on small samples that provides insights and understanding of the
problem setting” and quantitative research as “a research
methodology that seeks to

Quantify the data and, typically applies some form of statistical

analysis”. There are merits and demerits of both methodologies
(illustrated in following Table4.1).

Table 5.1 – QUALITATIVE VERSUS QUANTITATIVE

RESEARCH

Qualitative Quantitative
Research Research
"All research "There's no such thing
ultimately has as qualitative data.
a qualitative Everything is either 1
grounding" or 0"
- Donald Campbell - Fred Kerlinger
complete, detailed The aim is to
aim
description. classify features,
count them, and
construct statistical
 models in an
attempt to explain
what is observed.

Researcher may only know May clearly in

roughly idea. advance

Recommended Initially of research Last phases of

process research projects.
design Come out in later All aspects of the
stage of study are carefully
dissertation. designed before
data is collected.

Researcher is the Researcher uses

data gathering tools, such as
instrument. questionnaires or
equipment to
collect numerical
data.

Data is in the form Data is in the form

of words, pictures of numbers and
or objects. statistics.

Subjective - Objective – seeks

individuals’ precise measurement
interpretation of & analysis of target
events is concepts, e.g., uses
important ,e.g., surveys,
uses participant questionnaires etc
observation, in-
depth interviews
etc.
 Qualitative data is Quantitative data is
more 'rich', time more efficient, able
consuming, and to test hypotheses,
less able to be but may miss
generalized. contextual detail.

Researcher tends to Researcher tends to

become remain objectively
subjectively separated from the
immersed in the subject matter.
subject matter.

Descriptive research studies are those study which are concerned

with describing the character. It is move valuable because researcher
has no control over the variables what has happened or what is
happening is considered so it is very accurate so we can say it is more
valuable.

. In a research when we talk of research methodology, we not only take

Research methodology, but also considered the logic behind the
method we used in the contest of our research study and explain why
we are using a particular method. This way we can be stated as under.

It relies on empirical evidence

it utilize relevant concepts

it is committed to only objective consideration

it result into probabilistic prediction

In a method particular research problem involve usually the

consideration of the followings

 the means of obtaining the information

 Explanation of the way in which related means of

obtaining information will be organized and the reasoning
 leading to the selection Investing the reasons for human
behavior i.e. people thinks or do certain thinks so we
comes for quantitative reaches

The research methodology used for this study was geared towards
obtaining quantitative data.

Collection of Secondary Data

According to Thorne (1990), Secondary data means data that is already

available i.e., it refers to the data, which have already been collected
and analyzed by someone else. Secondary data may either be
published data or unpublished data. Although the researcher has not
used the secondary data for the purpose of analysis this has been
extensively used by the researcher to explore various theories
attached with the topic that is brand strategy.

Limitation of the study

1. The study is based in published internal reports & data of the STATE
BANK OF INDIA BANK.
2. The study is limited to a period of 5 yrs
3. No comparison is made b/w the others.
RESEARCH DESIGN
Research Design is the plan and structure of the in ventilation to
obtain answer to research question the plan is the overall scheme,
which will be done from writing of the hypothecates to the final
analysis.
Research design are often dependent on the steps which we
referred as research design. in research design the researcher
decides hour his objectives will be revised by the research. in
research design we find answer of same question that we what
would be the study. Where would the study take place, which data
to be studied, what method should be adopted and how much
should be collected of tells us how the data will be collected
 Research Design start from the writing of hypothesis & it ends to
writing of report.
The significance of research design is so give maximum results
and effectively researches to be carried to avoid trial error. Thus
preparation of the research design should be done with great care
as any error may affect the whole study.

Data Analysis

For any research the purpose of achieving the objectives is a very

important criterion. Unless the information drawn from the survey is
properly interpreted and explained the very purpose of a research
cannot be served. Hence data analysis and interpretation is a very
important aspect in a project report. Analysis of data is the process of
orderly research objectives. The primary data collection is in accurate
form that is not ready for analysis. So the researcher must take some
measures to bring the data to a form where it can be easily analyzed.
The various steps include editing (modifying, correcting the collected
data), coding and tabulation (arranging similar data together). The
analysis is carried using statistical tools like percentages. Percentage is
a special kind of ratio. Percentage is used in making comparison
between two or more series of data. Thus the analysis is totally based
on frequency and percentage calculation. Finally meaningful
information is extracted from the analysis. The collected data is
illustrated using pie diagram and bar charts. The conclusions, findings
and suggestions are given on the inference drawn from the analysis.
Scope of the Research Study

The scope of this research study relates to working capital

management of STATE BANK OF INDIA bank. The analysis of
working capital has been made against the financial performance
status in the present day world.

The important aspects of working capital management

which have received adequate attention are production policies,
size of the business, length of manufacturing cycle, credit policy,
turnover of circulating capital, economics of scale, current asset
policies and other factors. A number of ratios have been
calculated to know the exact working capital position and a
number of suggestion have been made to improve the current
efficiency of the management. On the basis of above calculations
any manufacturing company can analyze the working capital
position of their business.
D. LIMITATIONS

Limitations of the research study

Every research study has to encounter some constraints.

The major constraints, which present day study had to
face, are non-availability of sufficient data. Also the study is
based on the analysis of financial statements for the last
ten years only. The data used in this study have been
taken from published annual reports only ie, in this study
secondary data collection method is used. Hence the
limitations of secondary data will be the limitations of this
research study.
COMPANY PROFILE
 3. COMPANY PROFILE

State Bank of India

Type Public
NSE: STATE BANK OF INDIA N
BSE: 500112
Traded as
LSE: STATE BANK OF INDIA D
BSE SENSEX Constituent
Industry Banking, Financial services
Founded July 1, 1955
Headquart
ers Mumbai, Maharashtra, India
Area
served Worldwide
Key
Pratip Chaudhuri
people
(Chairman)
Credit cards, Consumer
banking, corporate banking,
Products finance and insurance,
investment banking, mortgage
loans, private banking, wealth
management
Revenue US$32.44 billion (2011)[1]
Profit US$2.34 billion (2011)[1]
Total
US$369.56 billion (2011)[1]
assets
Total
US$18.71 billion (2011)[1]
equity
Owner(s) Government of India
Employees 222,933 (2011)[1]
Website www.statebankofindia.com

State Bank of India (NSE: STATE BANK OF INDIA N, BSE: 500112,

LSE: STATE BANK OF INDIA D) is the largest banking and financial
services company in India by revenue, assets and market
capitalization. It is a state-owned corporation with its headquarters in
Mumbai, Maharashtra. As of March 2011, it had assets of US$370
billion with over 13,000 outlets including 150 overseas branches and

State Bank of India

State Bank of India (NSE: STATE BANK OF INDIA N, BSE: 500112,

LSE: STATE BANK OF INDIA D) is the largest banking and financial
services company in India by revenue, assets and market
capitalization. It is a state-owned corporation with its headquarters in
Mumbai, Maharashtra. As of March 2011, it had assets of US$370
billion with over 13,000 outlets including 150 overseas branches and
agents globally. The bank traces its ancestry to British India, through
the Imperial Bank of India, to the founding in 1806 of the Bank of
Calcutta, making it the oldest commercial bank in the Indian
Subcontinent. Bank of Madras merged into the other two presidency
banks—Bank of Calcutta and Bank of Bombay—to form the Imperial
Bank of India, which in turn became the State Bank of India. The
Government of India nationalized the Imperial Bank of India in 1955,
with the Reserve Bank of India taking a 60% stake, and renamed it the
State Bank of India. In 2008, the government took over the stake held
by the Reserve Bank of India. STATE BANK OF INDIA is ranked #292
globally in Fortune Global 500 list in 2011.[2]
STATE BANK OF INDIA provides a range of banking products through
its vast network of branches in India and overseas, including products
aimed at non-resident Indians (NRIs). The State Bank Group, with over
16,000 branches, has the largest banking branch network in India.
STATE BANK OF INDIA has 14 local head offices situated at
Chandigarh, Delhi, Lucknow, Patna, Kolkata, Guwahati (North East
Circle), Bhuwaneshwar, Hyderabad, Chennai, Trivandram, Banglore,
Mumbai, Bhopal & Ahmedabad and 57 Zonal Offices that are located at
important cities throughout the country. It also has around 130
branches overseas.

STATE BANK OF INDIA is a regional banking behemoth and is one of

the largest financial institutions in the world. It has a market share
among Indian commercial banks of about 20% in deposits and loans.[3]
The State Bank of India is the 29th most reputed company in the world
according to Forbes.[4] Also, STATE BANK OF INDIA is the only bank
featured in the coveted "top 10 brands of India" list in an annual survey
conducted by Brand Finance and The Economic Times in 2010.[5]

The State Bank of India is the largest of the Big Four banks of India,
along with ICICI Bank, Punjab National Bank and HDFC Bank—its main
competitors.[6]

History

The roots of the State Bank of India lie in the first decade of 19th
century, when the Bank of Calcutta, later renamed the Bank of Bengal,
was established on June 2, 1806. The Bank of Bengal was one of three
Presidency banks, the other two being the Bank of Bombay
(incorporated on April 15, 1840) and the Bank of Madras (incorporated
on July 1, 1843). All three Presidency banks were incorporated as joint
stock companies and were the result of the royal charters. These three
banks received the exclusive right to issue paper currency in 1861 with
the Paper Currency Act, a right they retained until the formation of the
Reserve Bank of India. The Presidency banks amalgamated on January
27, 1921, and the re-organized banking entity took as its name
Imperial Bank of India. The Imperial Bank of India remained a joint
stock company.

Pursuant to the provisions of the State Bank of India Act of 1955, the
Reserve Bank of India, which is India's central bank, acquired a
controlling interest in the Imperial Bank of India. On April 30, 1955, the
Imperial Bank of India became the State Bank of India. The government
of India recently acquired the Reserve Bank of India's stake in STATE
BANK OF INDIA so as to remove any conflict of interest because the
RBI is the country's banking regulatory authority.

In 1959, the government passed the State Bank of India (Subsidiary

Banks) Act, enabling the State Bank of India to take over eight former
state-associated banks as its subsidiaries. On September 13, 2008, the
State Bank of Saurashtra, one of its associate banks, merged with the
State Bank of India.

STATE BANK OF INDIA has acquired local banks in rescues. For

instance, in 1985, it acquired the Bank of Cochin in Kerala, which had
120 branches. STATE BANK OF INDIA was the acquirer as its affiliate,
the State Bank of Travancore, already had an extensive network in
Kerala.

International presence

As of December 31, 2009, the bank had 157 overseas offices spread
over 32 countries. It has branches of the parent in Colombo, Dhaka,
Frankfurt, Hong Kong, Tehran, Johannesburg, London, Los Angeles,
Male in the Maldives, Muscat, Dubai, New York, Osaka, Sydney, and
Tokyo. It has offshore banking units in the Bahamas, Bahrain, and
Singapore, and representative offices in Bhutan and Cape Town. It also
has an ADB in Boston, USA.
STATE BANK OF INDIA operates several foreign subsidiaries or affiliates.
In 1990, it established an offshore bank: State Bank of India (Mauritius).

In 1982, the bank established a subsidiary, State Bank of India

(California), which now has ten branches – nine branches in the state of
California and one in Washington, D.C. The 10th branch was opened in
Fremont, California on 28 March 2011. The other eight branches in
California are located in Los Angeles, Artesia, San Jose, Canoga Park,
Fresno, San Diego, Tustin and Bakersfield.

The Canadian subsidiary, State Bank of India (Canada) also dates to

1982. It has seven branches, four in the Toronto area and three in
British Columbia.

In Nigeria, STATE BANK OF INDIA operates as INMB Bank. This bank

began in 1981 as the Indo-Nigerian Merchant Bank and received
permission in 2002 to commence retail banking. It now has five
branches in Nigeria.

In Nepal, STATE BANK OF INDIA owns 55% of Nepal STATE BANK OF

INDIA Bank, which has branches throughout the country. In Moscow,
STATE BANK OF INDIA owns 60% of Commercial Bank of India, with
Canara Bank owning the rest. In Indonesia, it owns 76% of PT Bank
Indo Monex.

The State Bank of India already has a branch in Shanghai and plans to
open one in Tianjin.[7]

In Kenya, State Bank of India owns 76% of Giro Commercial Bank,

which it acquired for US$8 million in October 2005.[8]..

The State Bank of India (with 74% of the total capital) alongwith the
largest global banking group—BNP Paribas (with 26% of the remaining
capital) headquatered in Paris—formed a joint venture which
established India's most reputed and trusted life insurance company
named STATE BANK OF INDIA Life Insurance company Ltd. in March
2001.

Associate banks

STATE BANK OF INDIA has five associate banks; all use the same logo
of a blue circle and all the associates use the "State Bank of" name,
followed by the regional headquarters' name:

 State Bank of Bikaner & Jaipur

 State Bank of Hyderabad
 State Bank of Mysore
 State Bank of Patiala
 State Bank of Travancore

Earlier STATE BANK OF INDIA had only seven associate banks that
constituted the State Bank Group. Originally, the then seven banks that
became the associate banks belonged to princely states until the
government nationalized them between October 1959 and May 1960.
In tune with the first Five Year Plan, emphasizing the development of
rural India, the government integrated these banks into the State Bank
of India system to expand its rural outreach. There has been a proposal
to merge all the associate banks into STATE BANK OF INDIA to create a
"mega bank" and streamline operations.[9]

The first step towards unification occurred on August 13, 2008 when
State Bank of Saurashtra merged with STATE BANK OF INDIA, reducing
the number of state banks from seven to six. Then on June 19, 2009
the STATE BANK OF INDIA board approved the merger of its subsidiary,
State Bank of Indore, with itself. STATE BANK OF INDIA holds 98.3% in
State Bank of Indore. (Individuals who held the shares prior to its
takeover by the government hold the balance of 1.77%.)
The acquisition of State Bank of Indore added 470 branches to STATE
BANK OF INDIA 's existing network of 12,448 and over 21,000 ATMs.
Also, following the acquisition, STATE BANK OF INDIA’s total assets will
inch very close to the 10 trillion marks. The total assets of STATE
BANK OF INDIA and the State Bank of Indore stood at 9,981,190
million as of March 2009. The process of merging of State Bank of
Indore was completed by April 2010, and the STATE BANK OF INDIA
Indore branches started functioning as STATE BANK OF INDIA branches
on August 26, 2010.[11]

Non-banking subsidiaries

Apart from its five associate banks, STATE BANK OF INDIA also has the
following non-banking subsidiaries:

1. STATE BANK OF INDIA Capital Markets Ltd

2. STATE BANK OF INDIA Funds Management Pvt Ltd

3. STATE BANK OF INDIA Factors & Commercial Services Pvt Ltd

4. STATE BANK OF INDIA Cards & Payments Services Pvt. Ltd. (STATE
BANK OF INDIA CPSL)

5. STATE BANK OF INDIA DFHI Ltd

6. STATE BANK OF INDIA Life Insurance Company Ltd.

7. STATE BANK OF INDIA General Insurance

Current Board of Directors

After the end of O. P. Bhatt's reign as STATE BANK OF INDIA chairman

on March 31, 2011, the post was taken over by Pratip Chaudhuri, who
is the former deputy managing director of the international division of
STATE BANK OF INDIA. As of August 4, 2011, there are twelve members
in the STATE BANK OF INDIA board of directors, including Subir Gokarn,
who is also one of the four deputy governors of the Reserve Bank of
India. The complete list of the Board members is:

1. Pratip Chaudhuri (Chairman)

2. Hemant G. Contractor (Managing Director)
3. Diwakar Gupta (Managing Director)
4. A Krishna Kumar (Managing Director)
5. Dileep C Choksi (Director)
6. S. Venkatachalam (Director)
7. D. Sundaram (Director)
8. Parthasarathy Iyengar (Director)
9. G. D. Nadaf (Officer Employee Director)
10. Rashpal Malhotra (Director)
11. D. K. Mittal (Director)
12. Subir V. Gokarn (Director)[12]

Branches of STATE BANK OF INDIA

 State Bank of India has 172 foreign offices in 37 countries across

the globe.
 STATE BANK OF INDIA has about 25,000 ATMs (25,000th ATM
was inaugurated by the then Chairman of State Bank Shri O.P.
Bhatt on 31 March 2011, the day of his retirement); and STATE
BANK OF INDIA group (including associate banks) has about
45,000 ATMs.
 STATE BANK OF INDIA has 21,500 branches, including branches
that belong to its associate banks.
 STATE BANK OF INDIA includes 99345 offices in India.
 India's number one ADB is in Bellary i e State bank of India
Bellary ADB
Symbol and slogan

 The symbol of the State Bank of India is a circle and not key hole
and a small man at the centre of the circle. A circle depicts
perfection and the common man being the centre of the bank's
business.
 Slogans : "Pure banking nothing else"

also includes : "With you - all the way" and : "a bank of common man"

Loan to NTPC

On July 8, 2011, STATE BANK OF INDIA agreed to give a loan of 100

billion to NTPC (National Thermal Power Corporation), making it the
largest loan STATE BANK OF INDIA had ever given to any single
customer in its entire 200 year history. The loan had a "door-to-door"
maturity period of 12 years, accompanied by a drawdown period of
four years. An NTPC press release said at the time of the declaration of
the loan that: "The loan shall be utilized for financing the capital
expenditure of ongoing and new projects."

NTPC chairman at the time, Arup Roy Choudhury clarified that the loan
amount would be used to add 128,000 MW capacity by the end of year
2032 (NTPC'c capacity at the time of the declaration of the loan was
34,584 MW).[13]

This loan was offered amidst declining finance for power projects in
India, which were a direct result of the lending constraints placed by
the Reserve Bank of India and the increased risk awareness of power
projects. It will also help minimize the shortfall of around 4.51 trillion
that the Power Ministry of India expected to incur in achieving the
objectives of the Eleventh Five Year Plan (This plan targeted an
addition of 78,577 MW or power generation capacity which would
require an investment of 10.3 trillion).
Employees

STATE BANK OF INDIA has turned into the third-largest employer in

India among listed companies after Coal India Limited (383,347) and
Tata Consultancy Services(226,751).

Recent awards and recognitions

 Best Online Banking Award, Best Customer Initiative Award &

Best Risk Management Award (Runner Up) by IBA Banking
Technology Awards 2010
 The Bank of the year 2009, India (won the second year in a row)
by The Banker Magazine
 Best Bank – Large and Most Socially Responsible Bank by the
Business Bank Awards 2009
 Best Bank 2009 by Business India
 The Most Trusted Brand 2009 by The Economic Times
 Most Preferred Bank & Most preferred Home loan provider by
CNBC
 Visionaries of Financial Inclusion By FINO
 Technology Bank of the Year by IBA Banking Technology Awards
 SKOCH Award 2010 for Virtual corporation Category for its e-
payment solution
 The Brand Trust Report[16]: 11th most trusted brand in India.
DATA ANALYSIS AND

INTERPRETATION
 3. DATA ANALYSIS AND INTERPRETATION

Assets

Assets
Cash & Balances with 119,349.8
RBI 3 82,195.58 74,161.07 74,817.26 45,066.10
Balance with Banks,
Money at Call 35,977.62 39,653.42 51,100.63 14,211.16 27,410.76
1,006,401 869,501.6 750,362.3 603,221.9
Advances .55 4 8 4 487,285.96
419,066.4 402,754.1 372,231.4 273,841.7
Investments 5 3 5 2 216,521.05
Gross Block 17,543.26 15,886.95 14,063.96 12,641.08 11,274.90
Accumulated
Depreciation 11,402.13 10,359.09 9,127.29 8,224.86 7,425.54
Net Block 6,141.13 5,527.86 4,936.67 4,416.22 3,849.36
Capital Work In
Progress 345.7 486.03 286.81 246.57 150.02
Other Assets 60,615.96 50,025.30 51,746.73 56,514.65 34,891.16
Minority Interest 0 0 0 0 0
Group Share in Joint
Venture 0 0 0 0 0
1,647,898 1,450,143. 1,304,825. 1,027,269.
Total Asset .24 96 74 52 815,174.41
Capital and Liabilities

Capital and Liabilities:

Total Share Capital 635 634.88 634.88 631.47 526.3
Equity Share Capital 635 634.88 634.88 631.47 526.3
Share Application
Money 0 0 0 0 0
Preference Share
Capital 0 0 0 0 0
Init. Contribution
Settler 0 0 0 0 0
Preference Share
Application Money 0 0 0 0 0
Employee Stock Option 0 0 0 0 0
Reserves 82,836.25 82,500.70 71,755.51 60,604.91 42,009.35
Revaluation Reserves 0 0 0 0 0
Net Worth 83,471.25 83,135.58 72,390.39 61,236.38 42,535.65
1,255,562 1,116,464. 1,011,988. 776,416.5
Deposits .48 56 33 2 636,272.88
142,470.7 122,074.5
Borrowings 7 7 64,591.64 66,023.17 48,661.83
1,398,033 1,238,539. 1,076,579. 842,439.6
Total Debt .25 13 97 9 684,934.71
Minority Interest 2,977.17 2,631.27 2,228.27 2,028.12 1,689.94
Policy Holders Funds 0 0 0 0 0
Group Share in Joint
Venture 0 0 0 0 0
Other Liabilities & 163,294.9 125,837.9 153,627.1 121,565.3
Provisions 6 7 0 3 86,014.12
1,644,799 1,447,512. 1,302,597. 1,025,241.
Total Liabilities .46 68 46 40 813,484.48
 Current Asset

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

1,647,898. 1,450,143. 1,304,825. 1,027,269. 815,174.

Current Asset 24 96 74 52 41

1,800,000.00
1,600,000.00
1,400,000.00
1,200,000.00
1,000,000.00
800,000.00
600,000.00 Current
400,000.00 Asset
200,000.00
0.00
Ma Ma Ma Ma Ma
r r r r r
'11 '10 '09 '08 '07
 Current Liability

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

1,644,799. 1,447,512. 1,302,597. 1,025,241. 813,484.

Current liability 46 68 46 40 48

1,800,000.00
1,600,000.00
1,400,000.00
1,200,000.00
1,000,000.00
800,000.00
600,000.00 Current
400,000.00
200,000.00
0.00
Ma Ma Ma Ma Ma
r r r r r
'11 '10 '09 '08 '07
 CURRENT RATIOS:

Current ratio

The current ratio is a financial ratio that measures whether or not a

firm has enough resources to pay its debts over the next 12 months. It
compares a firm's current assets to its current liabilities. It is expressed
as follows:

For example, if WXY Company's current assets are 50,000,000 and its
current liabilities are 40,000,000, then its current ratio would be
50,000,000 divided by 40,000,000, which equals 1.25. It means that for
every dollar the company owes in the short term it has 1.25 available
in assets that can be converted to cash in the short term. A current
ratio of assets to liabilities of 2:1 is usually considered to be acceptable
(i.e., your current assets are twice your current liabilities).

The current ratio is an indication of a firm's market liquidity and ability

to meet creditor's demands. Acceptable current ratios vary from
industry to industry. If a company's current ratio is in this range, then it
is generally considered to have good short-term financial strength. If
current liabilities exceed current assets (the current ratio is below 1),
then the company may have problems meeting its short-term
obligations. If the current ratio is too high, then the company may not
be efficiently using its current assets or its short-term financing
facilities. This may also indicate problems in working capital
management.

Low values for the current or quick ratios (values less than 1) indicate
that a firm may have difficulty meeting current obligations. Low values,
however, do not indicate a critical problem. If an organization has good
long-term prospects, it may be able to borrow against those prospects
to meet current obligations. Some types of businesses usually operate
with a current ratio less than one. For example, if inventory turns over
much more rapidly than the accounts payable become due, then the
current ratio will be less than one. This can allow a firm to operate with
a low current ratio.

If all other things were equal, a creditor, who is expecting to be paid in

the next 12 months, would consider a high current ratio to be better
than a low current ratio, because a high current ratio means that the
company is more likely to meet its liabilities which fall due in the next
12 months.

Current Ratio

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

Current Ratio 0.04 0.04 0.04 0.07 0.05

Interpretation : Current ratio is increasing from 2007 to 2010 so it is

having stong financial position
 QUICK OR ACID TEST OR LIQUID RATIO
Quick ratio, also known as Acid Test or liquid Ratio, is a more
rigorous test of liquidity than the current ratio. Quick ratio may be
defined as the relationship between quick/liquid assets and current or
liquid liabilities. The quick ratio can be calculated by dividing the total
of the quick assets by total current liabilities thus,

Quick/liquid or Acid test ratio =

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

Quick Ratio 1.4 1.47 1.24 1.08 1.03

Source: Calculations Based on Annual Reports of JP CEMENT from 2007

- 2011,
 Net Profit ratio

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

Net Profit Ratio 0.65 0.91 1.08 1.04 0.86

1.2

0.8

0.6
Net Profit
0.4
Ratio
0.2

0
Ma Ma Ma Ma Ma
r r r r r
'11 '10 '09 '08 '07
OBSERVATION AND

FINDINGS
 4. OBSERVATION AND FINDINGS

1) The working capital of the bank which was Rs. 2446.07 crs. As
on 31st march 2008 & stood at Rs. 4269.81 On 31 st march 2007
there was a marginal increase in the banks working capital by
5057.18 Crs.
2) The borrowing had risen to 652.41 Crs.@8.2% rose from the
year end 2000-2006.At present it is on a decline standing at
596.46 for the year ended 2008-09.
3) The loans and advanceof the which were at Rs. 2095.30 Crs.
as on 31st mar.2007 increase and stood at Rs. 2450.12 Crs. as on
31st march, 2008 and as on 31 st march it is decreased with Rs.
2293.42 Crores as on 31st march 2009.
4) The deposit of bank were on its peaks of 1656.60Crs. On 2004-
05. It decline on 2005-06 by 2% & again on the rise since 2005-06
and the deposits have increased by Rs.482.31Crs. during the year
and stood at Rs. 2923.31Crs. as on 31 st march 2009 as against
Rs. 2440.90 Crs.as on 31st march, 2008.
5) The reserve funds and other funds of the bank which
amounted to Rs. 458.48 Crs. as on 31 st march 2008 & now it
increased to 477.23 Crs. as on 31st march 2009.
6) The authorised share capital of the bank is RS. 200.00.The
paid up capital of the bank which was at Rs. 110.93Crs. as on 31st
march 2008. Increased and stood at Rs.122.02 Crores as on 31st
march 2009.
7) The investment of bank have increased by Rs. 1068.02 Crs. as
on 31st march 2008 decreased and stood at Rs. 2293.42 Crs. as
on 31st march 2009.
8) In STATE BANK OF INDIA Bank the working capital is managed
where bills for collection being bills (As per contra)receivables is
deducted from assets and liabilities side and fixed assets are also
deducted from it then we find the accurate working capial of the
bank as shown in annual report of the bank that is 5057.18 which
is increasing year by year.
CONCLUSIONS
 5. CONCLUSIONS

Every business need fund for two purposes- for its establishment
and to carry out its day to day operations. Fund which is needed
for the short term period or to carry out it day to day operations
like for purchases of raw material, payment of wages , etc. are
known as It should have neither redundant or excess nor
inadequate or shortage of working capital. The basic goal of
working capital management is to manage the current asset and
current liabilities of a firm in such a way that a satisfactory level
of working capital is maintained, i. e. it is neither inadequate nor
excessive.

 The requirement for working capital is increasing, by a very

merger amount which the bank is having proper
management for it’s working capital requirement.

 The banks has reduced it’s borrowing which it built us it’s

own resources.

 The bank is mostly serve the agricultural loan to farmers.

 The loans & advances of the bank were on the steady rise
until 2007-08 but On
2008-09n it has marginally reduced so the loans and
advances are on decline which reflects that the bank is not
lending ample amount of money in the market.
RECOMMENDATIONS
5. RECOMMENDATIONS

The following suggestions have made for the company to improve the
present condition.
It is suggested that the financial manager must be very vigilant in the
management of working capital as it significantly affect the profitability
of the firm. An immediate care is to be given for the working capital
management of the firm, as it is on the banks of closure. Finance
manager must consider the variables that affect the profitability of the
firm directly or indirectly and proper attention must be given to control
these variables.
The management must control the variables like average
payment period days and average collection period days to reduce its
time period of cash conversion cycle. The management must conduct
research studies on their workings and financial performance at least
once in every three financial years. Management must provide proper
training to its finance managers to strengthen their knowledge in
managing the different areas of working capital management like cash
management, inventory management, receivable management and
marketable securities management etc. It is suggested that the
companies must give a better presentation of creditors for the relative
period and for the earlier periods separately. (It has found that current
years’ purchase is too less but the creditors for suppliers stood at a
very large amount. That looks so frivolous.) Amounts in the reserves
and surpluses should be utilized for productive purposes which will not
only increase the earnings of the company but will also increase the
reputation of the company in the market. The companies must
encourage and support the outside scholars who want to conduct
research studies on their companies’ financial performance and other
relevant areas of management. Lastly, it has also suggested the
researchers should be provided with proper and relevant information
by the management for research studies. It has often found that the
management hesitates to provide detailed information regarding
finance.

The following suggestions have made for the researchers who want to
study further about the working capital management.
It is suggested that comparison of the result of one industry with
another similar industry will help to bring proper conclusions of the
study and also it adds effectiveness to the results. A keen probe into
the financial parameters of each public sector undertakings and their
difficulties in arranging the working funds will give a clear picture about
the present day condition of the in our state. It is suggested that
further research is to be conducted on the same topic with different
companies by extending the years of the sample study. The scope of
further research can be extended to keen areas of working capital
management including cash, marketable securities, receivables and
inventory. A further intense exploration of the variables selected for
this research study can be done to find out the extend of deviations
happen in the working capital of any firm so that the finance managers
can be very vigilant in their policies and can exercise a good control
over all those variables which directly or indirectly affect the life of the
firm.
After interpretation and analysis, i am giving certain suggestion to
the bank, which i hope will be helpful for the banks:
(b)The Bank should try to increase it’s proportion of the fixed
assets to net worth.

(c) The proportion of current assets and current liabilities not

maintain please try to maintain it shows our financial
position.

(d)The Bank should utilize it’s stock more efficiently.

(e)The Bank should pay attention towards proper and efficient

utilization of working capital.
(f) The Bank should improve it’s sales strategy.

(g)The Bank must increase it’s return.

(h)It should also pay attention in increasing it’s net profit

margin, so that it can survive in adverse condition also.

(i) The Bank should try reducing their expenses, so that the
margin of can be increase.

(j) There is not sitting arrangements for trainees pls try to

maintain the facility.

(k) Please maintain the working capital of the bank.

BIBLIOGRAPHY
 BIBLIOGRAPHY

1. Agarwal J.K, Agrawal R.K: Management Accounting: Delhi:

Ramesh Book Depo: 8th Edition: 1998

2. Agrawal N.K: Management Accounting of working Capital:

Sterling Publishers (P) Ltd, New Delhi: 1983.

3. Donald Cooper: Business Research Methods: New Delhi: Tata

McGraw Hill Edition: 1998

4. I.M Pandey: Financial Management: New Delhi: Vikas Publishing

House (P) Ltd.: 1983

5. James C. Van Horne: Financial Management Policy: Singapore:

Pearson Education Pvt. Ltd.: Twelfth Edition: 1998

6. K.V Smith: Management of Working Capital: New York: West

Publishing Company: 1994

7. Kothari C.R: Research Methodology: Methods and Techniques:

New Delhi: Vishwa Prakashan: 1999

8. Kulshreshtha N.K: Theory & Practice of Management Accounting:

Aligarh: Naveen Prakashan: 1985

9. M.A Sahaf: Management Accounting: Principles and Practices:

New Delhi: Vikas Publishing (p) Ltd: 2005

10. M.L Agrawal: Cost Accounting: Principles and Practice: Delhi:

Sahitya Bhavan
 WEBSITES :

I. www.google.com

II. www.rbi.com

III. www.statebankofindia.com

IV. www.onlinesbi.com

V. www.sbilife.co.in

PAMPLETS OF SBI
ANNEXURE
ANNEXURE
 --------------
----- in Rs.
Cr.
--------------
Consolidated Balance Sheet of State Bank of India -----

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

Capital and Liabilities:

Total Share Capital 635 634.88 634.88 631.47 526.3
Equity Share Capital 635 634.88 634.88 631.47 526.3
Share Application
Money 0 0 0 0 0
Preference Share
Capital 0 0 0 0 0
Init. Contribution
Settler 0 0 0 0 0
Preference Share
Application Money 0 0 0 0 0
Employee Stock Opiton 0 0 0 0 0
Reserves 82,836.25 82,500.70 71,755.51 60,604.91 42,009.35
Revaluation Reserves 0 0 0 0 0
Net Worth 83,471.25 83,135.58 72,390.39 61,236.38 42,535.65
1,255,562 1,116,464. 1,011,988. 776,416.5
Deposits .48 56 33 2 636,272.88
142,470.7 122,074.5
Borrowings 7 7 64,591.64 66,023.17 48,661.83
1,398,033 1,238,539. 1,076,579. 842,439.6
Total Debt .25 13 97 9 684,934.71
Minority Interest 2,977.17 2,631.27 2,228.27 2,028.12 1,689.94
Policy Holders Funds 0 0 0 0 0
Group Share in Joint
Venture 0 0 0 0 0
Other Liabilities & 163,294.9 125,837.9 153,627.1 121,565.3
Provisions 6 7 0 3 86,014.12
1,644,799 1,447,512. 1,302,597. 1,025,241.
Total Liabilities .46 68 46 40 813,484.48

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

12 mths 12 mths
86 12 mths 12 mths 12 mths

Assets
State Bank of India
---------------
---- in Rs.
Cr.
---------------
Profit & Loss account ----

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

Income
Interest Earned 81,394.36 70,993.92 63,788.43 48,950.31 39,491.03
Other Income 14,935.09 14,968.15 12,691.35 9,398.43 7,446.76
Total Income 96,329.45 85,962.07 76,479.78 58,348.74 46,937.79
Expenditure
Interest expended 48,867.96 47,322.48 42,915.29 31,929.08 23,436.82
Employee Cost 14,480.17 12,754.65 9,747.31 7,785.87 7,932.58
Selling and Admin
Expenses 12,141.19 7,898.23 5,122.06 4,165.94 3,251.14
Depreciation 990.5 932.66 763.14 679.98 602.39
Miscellaneous
Expenses 12,479.30 7,888.00 8,810.75 7,058.75 7,173.55
Preoperative Exp
Capitalised 0 0 0 0 0
Operating Expenses 31,430.88 24,941.01 18,123.66 14,609.55 13,251.78
Provisions &
Contingencies 8,660.28 4,532.53 6,319.60 5,080.99 5,707.88
Total Expenses 88,959.12 76,796.02 67,358.55 51,619.62 42,396.48

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit for the Year 7,370.35 9,166.05 9,121.23 6,729.12 4,541.31
Extraordionary Items 0 0 0 0 0
Profit brought forward 0.34 0.34 0.34 0.34 0.34
Total 7,370.69 9,166.39 9,121.57 6,729.46 4,541.65
Preference Dividend 0 0 0 0 0
Equity Dividend 1,905.00 1,904.65 1,841.15 1,357.66 736.82
Corporate Dividend Tax 246.52 236.76 248.03 165.87 125.22
Per share data (annualised)
Earning Per Share (Rs) 116.07 144.37 143.67 106.56 86.29
Equity Dividend (%) 300 300 290 215 140
Book Value (Rs) 1,023.40 1,038.76 912.73 776.48 594.69
Appropriations
Transfer to Statutory
Reserves 2,488.96 6,495.14 6,725.15 5,205.69 3,682.15
Transfer to Other
87
Reserves 2,729.87 529.5 306.9 -0.1 -2.88
Proposed
8
8
Cash Flow ------------------- in Rs. Cr. -------------------
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
12 mths 12 mths 12 mths 12 mths 12 mths
10438.9
Net Profit Before Tax 14954.23 13926.10 14180.64 7625.08
0
Net Cash From -
Operating Activities 34282.52 -1804.99 29479.73
-856.87 1776.07
Net Cash (used
-
in)/from -1245.53 -1761.52 -1651.93 -284.56
2798.01
Investing Activities
Net Cash (used
19371.1
in)/from Financing2057.11 -3359.67 5097.38 9494.11
2
Activities
Net
(decrease)/increase 15716.2
35094.10 -6926.18 32925.18 7433.49
In Cash and Cash 4
Equivalents
Opening Cash & Cash 103110.0 51968.6 44535.2
87780.05 71478.62
Equivalents 2 9 0
Closing Cash & Cash 104403.8 67466.3
122874.15 96183.84 51968.6
Equivalents
0 4 9

Source : Dion Global Solutions Limited

 State Bank of India
Capital Structure
Period Instrumen --- CAPITAL (Rs. cr)---------P A I D U P -
FromTo AuthorisedIssued Shares Face Capita
t
(nos) Value l
201 Equity
2010 5000 635.08 634998991 10 635
1 Share
201 Equity 634.8
2009 1000 634.97 634882644 10
0 Share 8
200 Equity 634.8
2008 1000 634.97 634880222 10
9 Share 8
200 Equity 631.4
2007 1000 631.56 631470376 10
8 Share 7
200 Equity
2006 1000 526.3 526298878 10 526.3
7 Share
200 Equity
2005 1000 526.3 526298878 10 526.3
6 Share
200 Equity
2004 1000 526.3 526298878 10 526.3
5 Share
200 Equity
2003 1000 526.3 526298878 10 526.3
4 Share
200 Equity
2002 1000 526.3 526298878 10 526.3
3 Share
200 Equity
2001 1000 526.3 526298878 10 526.3
2 Share
200 Equity
2000 1000 526.3 526298878 10 526.3
1 Share
200 Equity
1999 1000 526.3 526298878 10 526.3
0 Share
200 Equity
1996 1000 526.3 526298878 10 526.3
0 Share
474.0
199 Equity
1995 1000 474.01 474009872 10
6 Share 1
199 Equity 474.0
1994 1000 474.01 474009189 10
5 Share 1
199 Equity 473.8
1993 1000 473.83 473828726 10
3
4 Share
1991199 Equity 1000 200 20000000 100 200
 3 Share
Source : Asian CERC
 State Bank of
India
Key Financial Ratios

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
Investment Valuation Ratios
Face Value 10.00 10.00 10.00 10.00 10.00
Dividend Per Share 30.00 30.00 29.00 21.50 14.00
Operating Profit Per
255.39 229.63 230.04 173.61 147.72
Share (Rs)
Net Operating Profit Per
1,504.34 1,353.15 1,179.45 899.83 833.38
Share (Rs)
Free Reserves Per Share
468.29 412.36 373.99 356.61 184.43
(Rs)
Bonus in Equity Capital -- -- -- -- --
Profitability Ratios
Interest Spread 4.12 3.82 4.34 4.32 4.20
Adjusted Cash
9.60 11.62 13.04 12.81 11.43
Margin(%)
Net Profit Margin 8.55 10.54 12.03 11.65 10.12
Return on Long Term
96.72 95.02 100.35 86.83 99.20
Fund(%)
Return on Net Worth(%) 12.71 13.89 15.74 13.72 14.50
Adjusted Return on Net
12.74 13.91 15.74 13.70 14.47
Worth(%)
Return on Assets
1,023.40 1,038.76 912.73 776.48 594.69
Excluding Revaluations Return
on Assets
1,023.40 1,038.76 912.73 776.48 594.69
Including Revaluations
Management Efficiency Ratios
Interest Income / Total
8.39 8.52 8.88 8.82 8.27
Funds
Net Interest Income /
4.10 3.82 3.79 3.87 3.85
Total Funds
Non Interest Income /
0.09 0.10 0.11 0.14 0.19
Total Funds
Interest Expended /
4.29 4.69 5.09 4.96 4.42
Total Funds
Operating Expense /2.67 2.38 2.06 2.16 2.39
Total Funds
Profit Before Provisions /
1.43 1.46 1.75 1.74 1.54
Total Funds
Net Profit / Total Funds 0.65 0.91 1.08 1.04 0.86
Loans Turnover 0.14 0.15 0.16 0.15 0.15
Total Income / Capital
8.48 8.62 8.99 8.96 8.46
Employed(%)
Interest Expended /
4.29 4.69 5.09 4.96 4.42
Capital Employed(%)
Total Assets Turnover
0.08 0.09 0.09 0.09 0.08
Ratios
Asset Turnover Ratio 7.24 7.26 7.20 6.32 5.44
Profit And Loss Account Ratios
Interest Expended /
60.04 66.66 67.28 65.23 59.35
Interest Earned
Other Income / Total
1.10 1.21 1.18 1.56 2.25
Income
Operating Expense /
31.51 27.61 22.91 24.13 28.19
Total Income
Selling Distribution Cost
0.26 0.26 0.33 0.30 0.20
Composition
Balance Sheet Ratios
Capital Adequacy Ratio 11.98 13.39 14.25 13.47 12.34
Advances / Loans
77.19 74.22 78.34 78.31 76.16
Funds(%)
Debt Coverage Ratios
Credit Deposit Ratio 79.90 75.96 74.97 77.51 73.44
Investment Deposit
33.45 36.33 36.38 34.81 38.22
Ratio
Cash Deposit Ratio 8.96 7.56 8.37 8.29 6.22
Total Debt to Owners
Fund 14.37 12.19 12.81 10.96 13.92
Financial Charges
0.35 0.33 1.36 1.37 1.37
Coverage Ratio
Financial Charges
1.19 1.21 1.23 1.23 1.22
Coverage Ratio Post Tax
Leverage Ratios
Current Ratio 0.04 0.04 0.04 0.07 0.05
Quick Ratio 8.50 9.07 5.74 6.15 6.52
Cash Flow Indicator Ratios
Dividend Payout Ratio
Net Profit 26.03 23.36 22.90 22.64 18.98
 Dividend Payout Ratio
23.24 21.20 21.13 20.56 16.75
Cash Profit
Earning Retention Ratio 74.03 76.67 77.11 77.33 80.97
Cash Earning Retention
76.80 78.82 78.88 79.41 83.21
Ratio
AdjustedCash Flow
100.71 79.54 75.05 72.64 84.87
Times
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
Earnings Per Share 116.07 144.37 143.67 106.56 86.29
Book Value 1,023.40 1,038.76 912.73 776.48 594.69

Source : Dion Global Solutions Limited