FINANCIAL RATIOS

Net Profit Margin:

Net Profit Margin= Net profit/ Total revenue
Particulars 2019 2018 2017
SBI 1.21% -1.82% -0.16%
CANARA BANK 0.74% -10.23% 2.71%
IDBI -68.48% -35.77% -18.56
BANK OF BARODA 0.86% -5.57% 3.27%
Peer Comparison: Amongst the following banks SBI has better net profit
margin when compared to other banks as it means the higher the net profit then
the company is more efficient at converting sales into actual profit.

Operating Profit Margin:

Operating Profit Margin= Operating profit/ Total revenue
Particulars 2019 2018 2017
SBI -29.14% -35.70% -29.76
CANARA BANK -13.30% -27.06% -15.54%
IDBI -83.44% -66.21% -32.83%
BANK OF BARODA -11.32% -20.82% 12.73%
Peer Comparison: Amongst the following banks Bank of Baroda seems to be
fine because operating profit margin reflects the % of profit of a company
produces from its operations, prior to subtracting taxes and interest charges.

Net Interest Margin:

Net Interest Margin= (Interest received on investment–Interest paid)/ Average
Assets
Average Assets= Assets at the start of the year/ Asset at the end of the year
Particulars 2019 2018 2017
SBI 2.50% 2.27% 2.36%
CANARA BANK 2.08% 1.97% 1.69%
IDBI 1.84% 1.61% 1.58%
BANK OF BARODA 2.39% 2.15% 1.94%
Peer Comparison: Amongst the following banks SBI has been performing in
the net interest margin.

Return on Assets:
Return on Asset= (Net income/ Total Assets) * 100
Particulars 2019 2018 2017
SBI 0.05% -0.12% 0.00%
CANARA BANK 0.04% -0.68% 0.19%
IDBI -4.71% -2.35% -1.42%
BANK OF BARODA 0.05% -0.33% 0.19%
Peer Comparison: Amongst the following banks SBI and Bank of Baroda are
performing well as ROA looks how efficient management is at using its assets
to generate earnings

Return on Equity:
Return on Equity= (Net income/ Shareholder’s Funds) * 100
Particulars 2019 2018 2017
SBI 0.98% -2.21% 0.13%
CANARA BANK 1.16% -14.51% 3.96%
IDBI -48.94% -50.99% -30.08%
BANK OF BARODA 0.94% -5.60% 3.43%
Peer Comparison: Amongst the following banks Canara bank is performing
well as this ratio is used to measure the amount of a company’s income that is
returned as shareholder’s equity.