TASK-20

VALUATION OF BANKS PART-2

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

=3241620,73,43-2911386,01,07
2911386,01,07
=0.11%
Expected growth rate-0.06%
Due to this pandemic situation, the economy is struggling with funds. So, the amount of deposits
will be less.
Cash reserve ratio-4%
Statutory liquidity ratio-23%
Expected rates
4%-0.06%=3.94%
23%-0.06%=22.94%

OTHER INCOME FORECAST

FY2020-ADVANCES=45221,47,80
The growth rate is 0.22%
So in FY 2021 the growth rate might be 0.24%
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
= 257323,59,22-159238,76,57
= 980848265
NET INTEREST INCOME FORECAST
IN FY2021 the net interest income might be
=TOTAL INTEREST EARNED-TOTAL INTEREST EXPENDED
=3319474339-1640159287
=1679315052

COST
In FY20, the total amount of cost incurred from deposits and borrowings as interest by bank is
159238,76,57
Therefore in FY21 the total amount of cost incurred would be around 1640159287
CANARA BANK

GROWTH RATE OF DEPOSITS-

Growth rate of deposits=Deposits in the current year-Deposits in the previous year
Deposits in the previous year
= 625351 17 37- 599033 27 48
5990332748
=0.04%
Expected growth rate-0.02%
Due to this pandemic situation, the economy is struggling with funds. So, the amount of deposits
will be less.
Cash reserve ratio-4%
Statutory liquidity ratio-20%
Expected rates
4%-0.02%=3.98%
20%-0.02%=19.98%

OTHER INCOME FORECAST

FY2020-ADVANCES= 7813 15 46
Therefore the growth rate is 0.19
So in FY 2021 the growth rate might be 0.24%
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
= 48934 99 02- 35811 08 34
=131239068
NET INTEREST INCOME FORECAST
IN FY2021 the net interest income might be
=TOTAL INTEREST EARNED-TOTAL INTEREST EXPENDED
=513817397-397503026
=116314371

COST
In FY20, the total amount of cost incurred from deposits and borrowings as interest by bank is
35811 08 34
Therefore in FY21 the total amount of cost incurred would be around 397503026