Bank of India Performance Analysis

PROFITABILITY ANALYSIS
Mar-16

Rs in Crore
1 Total Assets 611760.83
2 Earning Assets
Balances with RBI 33,961.61
Balances with Banks in Deposit Accounts 8,480.31
Balances with Banks & money at Call & Short Notice 65,179.68
Balances with Banks Outside India 24,254.46
Investments + 118,848.92
Advances + 359,188.95
Total Earning Assets 609913.93
3 Interest bearing Liabilities
Saving Deposits 109,207.44
Term & Other Deposits 513005
Borrowings 51,083.14
Subordinated Debt 0.00
Total Interest bearing liabilities 673295.10

Equity Capital 817.29

Reserves 31,224.72
Total Equity 32042.01
5 Interest Income 41796.46
6 Interest Expenditure 30072
10 Non-interest operating income 45,449.01
11 Non-interest operating Expenditure 39500
12 Provisions and Contingencies 12,124.83
Provisions and Contingencies include provision for tax -3,172.65
Profit After tax -6,089.21

Profitability Ratios
Return on Assets= NI/ TA -0.01
Equity Multiplier TA/ TE 1909.25%
TE/ TA 5.24%
ROE=ROA X EM -19.00%

NI/ OR -0.13
OR/ TA 7.43%
TA/ TE 1909.25%
(II - IE)/ TA 1.92%
(OI-OE)/ TA 0.97%
Provisions/TA 0.01981956
ROA 0.91%

(II- IE)/E A 1.92%

EA/ TA 99.70%
(II - IE)/ TA 1.92%

NIM 0.03
II/ EA 6.85%
IE/ Intt Bearing Liab 0.04466368
Intt Bearing Liabilities/ EA 1.10391822
Spread 2.39%

Efficiency ratio= Non intt exp/ (Net Interest Income+Non intt income) -10.8142941

Risk Ratios
Liquidity Risk= Short term securities/ Deposits -0.29432833
Interest Rate Risk = Interest Sensitive Assets/ Interest Sensitive Liabilities 0.23167227
Credit Risk = Provisioning / Assets 0.01981956
Capital Risk = Capital / Assets 0.00133596
Leverage ratio= Total equity/Total assets 0.05237669

Total capital ratio= (Total equity + Long-term debt + Reserve for loan losses)/Total assets 0.18691924
Provision for loan loss ratio= PLL/ TL (provision for loan losses/total loans and leases) 0.03375613
Loan Ratio = Net loans/ Total assets 0.08350182
 Analysis and comments
Mar-17 Mar-18 Mar-19 Mar-20

Rs in Crore Rs in Crore Rs in Crore Rs in Crore

628453.10 611426 627174 658993

27,347.66 31,347.84 29,236.56 29,239.25

8,461.86 8,265.29 8,920.04 8,982.00
68,540.29 64,534.66 65,574.92 57,217.05
27,650.93 26,935.73 32,846.34 34,100.88
127,826.86 137,111.11 147,639.04 158,572.99
366,481.67 341,380.19 341,005.94 368,883.30
626309.27 609574.82 625222.84 656995.47

143,887.40 148,119.83 159,477.15 172,700.68

540032 520854 520862 555505
39,405.67 43,588.78 44,241.17 39,752.46
0.00 0.00 0.00 0.00
723325.08 712562.99 724580.67 767958.12

1,055.43 1,743.72 2,760.03 3,277.66

30,851.91 35,012.76 40,253.92 41,795.49
31907.34 36756.48 43013.95 45073.15
39290.85 38071 40768 42353
27465 27565 27110 27096
46,063.18 43,805.17 45,899.82 49,066.34
36491 37666 38476 37505
11,290.97 13,182.63 13,639.11 14,475.54
-2,627.91 3,759.81 2,720.32 0
-7,807.00 -14,600.55 -20,509.21 -23,539.63

-0.01 -0.02 -0.03 -0.04

1969.62% 1663.45% 1458.07% 1462.05% Profitability Ratios
5.08% 6.01% 6.86% 6.84% ROA: It represents the returns to the assets the bank has invested. Sinc
-24.47% -39.72% -47.68% -52.23% quality issues have not been addressed by the bank properly and vulner
Equity Multiplier: It is the degree of financial leverage employed by t
-0.17 -0.33 -0.45 -0.48
The values have been coming down gradually in the last years which sh
with its equity.
7.33% 7.16% 7.32% 7.45%
ROE: It is a key profitability ratio that is used to measure the amount o
1969.62% 1663.45% 1458.07% 1462.05% trying to work reducing their debts and finace with equity, the bank's in
years.
Profit Margin: It has been negative over the years but values are slowi
savings approach.
Asset Utilization: This ratio has been approximately same over the yea
Net Interest Margin: It has been consistent for the first three years and
banks to issue loans which means that the bank has been issuing consis
 The values have been coming down gradually in the last years which sh
with its equity.
ROE: It is a key profitability ratio that is used to measure the amount o
trying to work reducing their debts and finace with equity, the bank's in
years.
1.88% 1.72% 2.18% 2.32% Profit Margin: It has been negative over the years but values are slowi
1.52% 1.00% 1.18% 1.75% savings approach.
Asset Utilization: This ratio has been approximately same over the yea
0.01796629 0.02156046 0.02174693 0.02196616
Net Interest Margin: It has been consistent for the first three years and
1.61% 0.57% 1.19% 1.87% banks to issue loans which means that the bank has been issuing consis
Spread: It refers to the difference between the interest rate a financial i
1.89% 1.72% 2.18% 2.32% shows that the difference between the borrowing and lending interest ra
99.66% 99.70% 99.69% 99.70% Efficiency Ratio: The ratio has been decreasing over the years indicati
1.88% 1.72% 2.18% 2.32%

0.03 0.03 0.03 0.03

6.27% 6.25% 6.52% 6.45%
0.03797012 0.0386844 0.03741494 0.03528356
1.1549008 1.16895083 1.15891587 1.16889409
2.48% 2.38% 2.78% 2.92%

-5.38830801 -6.56919194 -7.49724669 -5.58683049

-0.32267727 -0.36785189 -0.40853649 -0.41424036

0.23670238 0.26324269 0.28345117 0.28545737
0.01796629 0.02156046 0.02174693 0.02196616
0.00167941 0.00285189 0.00440074 0.00497374
0.05077123 0.06011597 0.06858375 0.06839702
0.1625657 0.18867037 0.20330725 0.19214336
0.0308091 0.03861569 0.03999669 0.03924152
0.06270264 0.07129033 0.07054049 0.06032305
Risk Ratios
Liquidity Risk: They are similar to the LCR in that they measure a com
A good liquidity ratio is anything greater than 1. It indicates that the co
to face financial hardships
Interest rate risk: It refers to the current or prospective risk to the ban
interest rates that affect the bank’s banking book positions. Changes in
interest rate-sensitive income and expenses, affecting its net interest inc
Credit Risk: The ratios have been lower and almost consistent with mi
Capital Risk: It measures a bank's financial stability by measuring its a
exposure and should be atleast 8% of risk weighted assets but the bank
assets thorugh out five years which indicates it instability.
Leverage Ratio: Since, it has been having lower than the ideal 0.5 valu
are financed by debt.
Total Capital Ratio: Since, there has been no significant change in the
consistency.
Loan Ratio: Compared to the ideal 0.6-0.8 loan ratio prefered in the in
are not attractive enough.
ets the bank has invested. Since the values are negative for the last five years, it represents that most asset
y the bank properly and vulnerability of bank is at stake.
ancial leverage employed by the bank and shows the percentages of the bank that are financed with debt.
ually in the last years which shows that the company is working on reducing its debts and trying to finance

used to measure the amount of a company's income that is returned as shareholders' equity. Since, they are
nace with equity, the bank's income that is returned to shareholder's equity has been fluctuating over the

the years but values are slowing increasing year by year indicating that the bank is working towards cost

proximately same over the years indicating that the bank is moving towards cost saving approach.
ent for the first three years and showed a point increase in the last two years. This interest value is used for
e bank has been issuing consistent amount of loans for the past five years.
ually in the last years which shows that the company is working on reducing its debts and trying to finance

used to measure the amount of a company's income that is returned as shareholders' equity. Since, they are
nace with equity, the bank's income that is returned to shareholder's equity has been fluctuating over the

the years but values are slowing increasing year by year indicating that the bank is working towards cost

proximately same over the years indicating that the bank is moving towards cost saving approach.
ent for the first three years and showed a point increase in the last two years. This interest value is used for
e bank has been issuing consistent amount of loans for the past five years.
en the interest rate a financial institution pays to depositors and the interest rate it receives from loans. So, it
rrowing and lending interest rates of the bank has been approximately 1% for the last five years.
reasing over the years indicating that the bank is spending less to generate every dollar of income.

LCR in that they measure a company's ability to meet its short-term financial obligations.
than 1. It indicates that the company is in not in a good financial health and is less likely

or prospective risk to the bank’s capital and earnings arising from adverse movements in
ng book positions. Changes in interest rates also affect a bank’s earnings by altering
es, affecting its net interest income.
and almost consistent with minimal difference indicating less existing risk for the bank.
cial stability by measuring its available capital as a percentage of its risk-weighted credit
k weighted assets but the bank was unable to maintain the minimum 8% of risk weighted
ates it instability.
ng lower than the ideal 0.5 value, it indicates that no more than half of the bank's assets

en no significant change in the total capital ratio, it indicates that the bank is maintaining

0.8 loan ratio prefered in the industry, it has slightly lower ratio indicating that the values