VALUATION

OF BANKS {PART-2}

DONE BY: ANNET

SARA ROY
STATE BANK OF INDIA
GROWTH RATE OF DEPOSITS
Growth rate of deposits = {Deposits in the current
year – deposits in the previous year}/ Deposits in the
previous year
={3,241,620.73-2,911,386.01}/2,911,386.01
=0.11%

Expected Growth Rate

0.05%
Due to this pandemic situation, the economy
is facing a struggle with funds. They don’t
have enough funds. So, the amount of
deposits will be less.
Cash Reserve Ratio: 3%
Statutory Liquidity Ratio: 18.00%
 3-0.05=2.95%
 18.00-0.05=17.95%

Other Income Forecasted

In FY20, Advances=2,325,289.56.The growth
rate is 0.06%.
So, in FY21, Advances might be around
0.8%.
Due to this current situation, the economy
is facing a large crisis .So, for the next
financial year, we can expect that there might
be a slight increase in growth rate.
Net Interest Income
Net Interest Income=Total Interest earned-
Total Interest expended
=3,602,595.46-3,556,276.38
=46,319.08
Forecasted Net Interest Income
Foe FY21, the net interest income might be
2.32.
Cost Forecasted
In FY20, the total amount of cost incurred
from deposits and borrowings as interest by
bank is 3,556,276.38.
So, in FY21, the cost incurred by bank
might be around 8,223,344.87.

INDIAN BANK
GROWTH RATE OF DEPOSITS
Growth rate of deposits = {Deposits in the current
year – deposits in the previous year}/ Deposits in the
previous year
={260,225.90-242,075.95}/242,075.95
=0.07%

Expected Growth Rate

0.04%

Here also the reason arises, due to this

pandemic situation, the economy is facing a
struggle with funds. They don’t have enough
funds. So, the amount of deposits will be less.
Cash Reserve Ratio: 3%
Statutory Liquidity Ratio: 18.00%
3-0.04=2.96%
18.00-0.04=17.96%
Other Income Forecasted
In FY20, Advances=197,887.01.The growth
rate is 0.09%.
So, in FY21, Advances might be around
1.50%.
Here also, due to this current situation, the
economy is facing a large crisis .So, for the
next financial year, we can expect that there
might be a slight increase in growth rate.
Net Interest Income
Net Interest Income=Total Interest earned-
Total Interest expended
=21,211.86-10,850.09
=10,361.77
Forecasted Net Interest Income
Foe FY21, the net interest income might be
3.22.
Cost Forecasted
In FY20, the total amount of cost incurred
from deposits and borrowings as interest by
bank is10, 850.09.
So, in FY21, the cost incurred by bank might
be around 2,665.53.