1.

Choose any BFSI company or Bank and download its Annual

Report for the year 2019-20, 2020-2021, 2021-2022, then do ratio
analysis of individual years and hence compare the changes in
Ratio.

Ratio analysis is a widely used tool of financial analysis. It is defined as the

systematic use of ratio to interpret the financial statements so that the strength
and weaknesses of a firm as well as its historical performance and current
financial condition can be determined.
In other words we can say that ratio analysis is a technique of analysis and
interpretation of financial statements. It is a process of establishing and
interpreting various ratios for helping in making certain decisions. Ratios serve as
a means of better understanding of company’s performance as a whole. It is with
the help of ratios that the financial statements i.e. profit and loss account and the
Balance sheet can be analyzed more clearly and decisions made more accurately
from such analysis.
I have selected Kotak Mahindra Bank Ltd. for analysis. In this analysis I will be
analyzing based on five ratios i.e., EPS, P/E, ROE, P/B & CR.

Earning Per Share (EPS)

EPS can be calculated: - Net Income/ Number of o/s stocks
FY19 FY20 FY21 FY22
33.72 38.68 54.65 54.4

The earnings per share in all these four years since 2018 to 2022 was highest in
2021 i.e. it was 54.65 but during these 4 years, it falls up to 33.72 and now in 2022
it is 54.4.
Price to Earning Ratio (P/E)
P/E can be calculated: - Share Price/ EPS
FY19 FY20 FY21 FY22
39.6 36.2 32.4 31.7

Return on Equity (ROE)

ROE can be calculated: - Total Profit/ Total equity
FY19 FY20 FY21 FY22
13% 14% 13% -
The return on equity shows that how the firm uses the shareholder’s interest or
investment fund to generate earning growth. By comparing last four years it is
being the same every year which shows the bank is having much profit available
to equity shareholder & it is not preferred much by the investors.

Price to Book Value (P/B)

P/B can be calculated: - Market value per share/ Book value per share
FY19 FY20 FY21 FY22
5 4.6 5.2 4

Current Ratio (CR)

CR can be calculated: - Current Liabilities/ Current Assets
FY19 FY20 FY21 FY22
2.12 4.08 2.40 -
The current ratio in 2008 was 0.39. Then it remained constant for the three years
i.e. 0.49% in the recent year 2012 it rises up to 0.75%.

Debt to Equity Ratio (D/E)

D/E can be calculated: - Debt/ Equity
FY19 FY20 FY21 FY22
5.78 5.60 4.65 -

The total debt to equity ratio in 2019 was 5.78%, in 2020 it was 5.60%, but in
2021 it fell to 4.65%.

2. Do the comparative study between-?

-Term Plans
-Traditional Category Plans
-Unit Linked Investment Plans (ULIPS)

Term Plans
Term plans provide benefit to the beneficiary only if the insured dies a specified
period. If the policy holder serves until the end of the period the Coverage ceases
without value and Pay-out or death claim cannot be made. Term plan is income
replacement that remains active for a specific number of years.

Traditional Plans
These are the oldest types of plans available. These plans cater to customers with
a low risk appetite. Traditional plans have existed since the inception of
Insurance. These plans have been providing the policyholders, advantages of
savings and protection.
But they lack, transparency, flexibility and liquidity etc. that are available in either
Investment avenues. Ever since the Insurance sector was opened up, private
players have been trying to entice the customer with new and innovative policies.
Unlike traditional products, customers find unit linked plans more transparent,
flexible and easy to understand.
Buying an ULIP is quite different from buying a traditional product. The
policyholder is totally aware of the various charges being charged to him and also
about was his contribution is being invested.

Unit Linked Investment Plans

ULIPs are a type of plan that provides you with a dual advantage of Protection and
flexibility in Investment. It is a type of plan where the cash value of the policy
varies according to the current net asset value of the underlying investment
assets. The premium paid is used to purchase units in Investment assets chosen
by the policyholder.

TRADITIONAL ULIP TERM

BONUS Yes No No

RETURNS Yes Yes No

TAX REBATE Yes No Yes

LIFE COVER Yes No No

3. Research on risks & returns in BFSI Industry (Banking, Financial
Services and Insurance)

Banking and financial institutions, we know, have been early adopters of digital
technologies and have invested heavily both on their core-banking technologies
and on their front-end customer experience solutions. This has taken their
consumers’ buying experience to new levels of ease and convenience.
However, we see a dramatic shift and an increase in focus on risk management in
the last couple of years. The increase in the number of cases on non-performing
assets coming to light has now led regulators to force banking and financial
institutions to look at risks from multiple facets of a banking process and address
each of them with specific outcomes.
We understand the risk business, we understand the complexity and therefore,
we are in a formidable position to build an effective Return on Investment (ROI)
for each and every rupee spent on risk management based on several
implementations we have delivered for prominent banks across the globe.
It’s prudent for India’s BFSI sector to invest in business continuity plans, risk
management strategies and resilient workplace cultures.
The need of the hour for India’s BFSI sector is to invest in thorough business
continuity plans, careful and prudent risk management strategies and resilient
workplace cultures. History reminds us that high-performing companies remain
committed to their employees as well as their organizational purpose and values,
especially during difficult times.