10 Chapter 4

CHAPTER-4 DATA ANALYSIS AND INTERPRETATION
CHAPTER -4
DATA ANALYSIS AND INTERPRETATION
4.1. CAPITAL RISK ADEQUACY RATIO
4.2. DEBT EQUITY RATIO
4.3. TOTAL ADVANCE TO TOTAL ASSET RATIO
4.4. GOVERNMENT SECURITIES TO TOTAL INVESTMENTS RATIO
4.5. GROSS NPA RATIO
4.6. NET NPA RATIO
4.7. TOTAL ADVANCES TO TOTAL DEPOSIT RATIO
4.8. BUSINESS PER EMPLOYEE
4.9. DIVIDEND PAYOUT RATIO
4.10. RETURN ON ASSET RATIO
4.11. INTEREST INCOME TO TOTAL INCOME RATIO
4.12. OTHER INCOME TO TOTAL INCOME RATIO
4.13. LIQUID ASSET TO TOTAL ASSET RATIO
4.14. GOVERNMENT SECURITIES TO TOTAL ASSET RATIO
4.15. APPROVED SECURITIES TO TOTAL ASSET RATIO
4.16. LIQUID ASSET TO DEMAND DEPOSIT RATIO
4.17. LIQUID ASSET TO TOTAL DEPOSIT RATIO
4.18 CONCLUSION
4.19 REFERENCES
131
132
4.1. CAPITAL RISK ADEQUACY RATIO
CRAR is a ratio of Capital Fund to Risk Weighted Assets. Reserve Bank of India
endorses banks to keep up a base Capital to risk-weighted Assets Ratio (CRAR) of 9
% with respect to credit risk, advertise risk and operational risk on a continuous
premise, as against 8 % recommended in Basel reports.
Total capital incorporates Tier-I capital and Tier-II capital. Level I capital
incorporates paid up value capital, free saves, elusive assets and so on. Level II capital
incorporates long haul unsecured advances, misfortune holds; half breed obligation
capital instruments and so forth. The higher the CRAR, the more grounded is viewed
as a bank, as it guarantees high wellbeing against insolvency
CAPITAL
CRAR= TOTAL RISK WEIGHTEDCREDIT EXPOSURE
4.1.1 Hypothesis Testing
Null Hypothesis (Ho):-
There would be no significant difference among Capital Risk Adequacy Ratio

of selected public and private sector banks.
Alternative Hypothesis (Ha):-
There would be significant difference among Capital Risk Adequacy Ratio of

selected public and private sector banks.
133
TABLE 4.1
Table of Capital Risk Adequacy Ratios of the Selected Public Sector Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-

Avg.
BANK 08 09 10 11 12 13
State Bank of India 12.92 13.86 11.98 13.39 14.25 13.54 13.23
Bank of Baroda 13.30 14.67 14.52 14.36 14.05 12.94 13.97
Punjab National Bank 12.72 12.63 12.42 14.16 14.03 13.46 13.24
Bank of India 11.02 11.95 12.17 12.94 13.01 12.04 12.18
Central Bank of India 11.49 12.40 11.64 12.23 13.12 9.39 11.72
(Source: Computed and Compiled from Annual reports of respective Bank)
CHART 4.1
Chart of Averages of Capital Risk Adequacy Ratios in Public Banks
14.5
14
13.5
State Bank of India

13
Bank of Baroda
12.5 Punjab National Bank
Bank of India
12
Central Bank of India
11.5
11
10.5
 By observing table no. 4.1, we can see that the average ratio for the 2007-08 to
2012-13 of State Bank of India was found 13.23. The average ratio for the
2007-08 to 2012-13 of Bank of Baroda was found 13.97. The average ratio for
the 2007-08 to 2012-13 of Punjab National Bank was found 13.24. The
average ratio for the 2007-08 to 2012-13 of Bank of India was found 12.18.
The average ratio for the 2007-08 to 2012-13 of Central Bank of India was
found 11.72.
 By observing Chart no. 4.1., we can see that the average ratio for the 2007-08
to 2012-13 of Bank of Baroda was found highest while the average ratio for
the 2007-08 to 2012-13 of Central Bank of India was found lowest.
134
TABLE 4.2
Table of Capital Risk Adequacy Ratios of the Selected Private Sector Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-
Avg.
BANK 08 09 10 11 12 13
AXIS Bank 17 13.66 12.65 15.80 13.69 13.73 14.43
HDFC Bank 16.80 16.52 16.22 17.44 15.69 13.60 16.04
ICICI Bank 18.74 18.52 19.54 19.41 15.53 15.22 17.68
KOTAK Bank 16.05 17.52 19.92 18.35 20.01 18.65 18.42
YES Bank 18.30 17.90 16.50 20.60 16.60 13.60 17.25
CHART 4.2.
Chart of Averages of Capital Risk Adequacy Ratios in Private Banks
20
18
16
14
Axis Bank Ltd.
12
HDFC Bank Ltd.
10 ICICIBANK LTD
KOTAK MAHINDRA BANK
8
YES BANK
6
 By observing the table no 4.2, we can see that the average ratio for the 2007-
08 to 2012-13 of Axis Bank was found 14.43. The average ratio for the 2007-
08 to 2012-13 of HDFC Bank Ltd. Was found 16.04. The average ratio for the
2007-08 to 2012-13 of ICICI Bank Ltd. was found 17.68. The average ratio
for the 2007-08 to 2012-13 of Kotak Mahindra Bank was found 18.42. The
average ratio for the 2007-08 to 2012-13 of Yes Bank Ltd. was found 17.25
to 2012-13 of Kotak Mahindra Bank was found highest while the average ratio
for the 2007-08 to 2012-13 of Axis Bank Ltd. was found lowest.
135
4.1.2. T-value of Capital Risk Adequacy Ratio of selected Public and private
sector banks.
TABLE 4.3
Statistical Valuations
Statistical data Public banks Private banks
Mean 12.86 16.76
SD 0.9049 1.5644
SEM 0.4047 0.6996
N 5 5
DF 8
Standard error of 0.808

difference
T-cal 4.8205
Remarks T-cal is more than tabular value 2.31.

Null hypothesis rejected.
Explanation
 From the table 4.3, it is found that total number of banks in public segment
was 5 and in private segment it was 5 under the study.
 The mean for the ratio of public banks was found12.86 while the mean for the
ratio of private banks was found 16.76.
 The SD for the ratio of public banks was found 0.9049 while the SD for the
 The SEM for the ratio of public banks was found 0.4047 while the SEM for
the ratio of private banks was found 0.6996.
 The DF for the ratio of public banks and private banks was found 8.
136
 The standard error for the ratio of public banks and private banks was found
0.808.
 The T-cal for the ratio of public banks and private banks was found 4.8205
which are greater than the table value 2.31 of T at 5%. It indicates that the null
hypothesis is rejected.
Interpretation
From the above tables and chart it can be said that there is significant
difference among Capital Risk Adequacy Ratio of selected public and private sector
banks and private sector banks have maintained higher CRAR during study period.
4.2. DEBT EQUITY RATIO
This ratio reflects the degree of leverage of a bank. It reflects how much of the
bank business is financed through debt and how much through equity. This is
calculated as the proportion of total borrowings liability to net worth. ‘Outside
liability’ includes total borrowing, deposits and other liabilities. ‘Net worth’ includes
equity capital and reserve and surplus. Higher the ratio indicates less protection for
the creditors and depositors in the banking system
𝐵𝑂𝑅𝑅𝑂𝑊𝐼𝑁𝐺𝑆
DEBT EQUITY RATIO = 𝑆𝐻𝐴𝑅𝐸 𝐶𝐴𝑃𝐼𝑇𝐴𝐿 +𝑅𝐸𝑆𝐸𝑅𝑉𝐸
There would be no significant difference among Debt Equity Ratio of selected

public and private sector banks.
There would be significant difference among Debt Equity Ratio of selected

public and private sector bank
137
TABLE 4.4
Table of Debt Equity Ratios of the Selected Public Sector Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-

Avg.
BANK 08 09 10 11 12 13
Bank of Baroda 0.74 0.81 0.63 0.85 0.30 0.10 0.57
Bank of India 1.34 1.05 1.30 1.10 0.53 0.63 0.99
(Source-Computed and Compiled from Annual reports of respective Bank)
CHART 4.3
Chart of Averages of Debt Equity Ratios in Public Banks
1.6
1.4
1.2
State Bank of India

1
Bank of Baroda
Bank of India
0.6
0.4
0.2
 By observing table no. 4.4., we can see that the average ratio for the 2007-08
to 2012-13 of State Bank of India was found 1.52. The average ratio for the
the 2007-08 to 2012-13 of Punjab National Bank was found 1.07. The average
ratio for the 2007-08 to 2012-13 of Bank of India was found 0.99. The average
ratio for the 2007-08 to 2012-13 of Central Bank of India was found 0.7
 By observing Chart 4.3, we can see that the average ratio for the 2007-08 to
2012-13 of State Bank of India was found highest while the average ratio for
the 2007-08 to 2012-13 of Bank of Baroda was found lowest.
138
TABLE 4.5
Table of Debt Equity Ratios of the Selected Private Sector Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-

Avg.
BANK 08 09 10 11 12 13
AXIS Bank 1.33 1.49 1.38 1.07 1.52 0.64 1.24
HDFC Bank 0.91 0.80 0.57 0.60 0.63 0.40 0.65
ICICI Bank 2.18 2.32 1.99 1.83 1.88 1.40 1.93
KOTAK Bank 2.16 2.08 1.72 1.35 1.72 1.42 1.74
YES Bank 3.60 3.03 1.76 1.54 2.28 0.75 2.16
(Source-Computed and Compiled from Annual reports of respective Bank)
CHART 4.4.
Chart of Averages of Debt Equity Ratios in Public Banks
2.5
2 Axis Bank Ltd.
HDFC Bank Ltd.

1.5
ICICI Bank Ltd.
1 Kotak Mahindra Bank

Ltd.
Yes Bank Ltd.
0.5
 By observing the table 4.5, we can see that the average ratio for the 2007-08 to
2012-13 of Axis Bank was found 1.24. The average ratio for the 2007-08 to
2012-13 of HDFC Bank Ltd. Was found 0.65. The average ratio for the 2007-
08 to 2012-13 of ICICI Bank Ltd. was found 1.93. The average ratio for the
2007-08 to 2012-13 of Kotak Mahindra Bank was found 1.74. The average
ratio for the 2007-08 to 2012-13 of Yes Bank Ltd. was found 2.16.
 By observing Chart 4.4, we can see that the average ratio for the 2007-08 to
2012-13 of Yes Bank Ltd. was found highest while the average ratio for the
2007-08 to 2012-13 of HDFC Bank ltd. was found lowest.
139
4.2.2. T-value among Debt Equity Ratio of selected public and private sector
banks.
TABLE 4.6.
Mean 0.9820 1.5440
SD 0.3593 0.6038
SEM 0.1607 0.2700
N 5 5
DF 8

difference
T-cal 1.7885
Remarks T-cal is less than tabular value 2.31.

Null hypothesis accepted.
Explanation
 The mean for the ratio of public banks was found 0.9820 while the mean for
0.314.
140
which is less than the table value 2.31 of T at 5%.It indicates that Null
hypothesis accepted.
Interpretation
From the presentation of tables and charts it can be said that there is no
significant difference among Debt Equity Ratio of selected public and private sector
banks and this ratio is on higher side of public sector banks.
4.3 TOTAL ADVANCE TO TOTAL ASSET RATIO
This is the ratio of the total advances to total asset. This ratio indicates banks
aggressiveness in lending which ultimately results in better profitability. Higher ratio
of advances of bank deposits (assets) is preferred to a lower one. Total advances also
include receivables. The value of total assets is excluding the revaluation of all the
assets.
𝑇𝑂𝑇𝐴𝐿 𝐴𝐷𝑉𝐴𝑁𝐶𝐸𝑆
TOTAL ADVANCE TO TOTAL ASSET RATIO= 𝑇𝑂𝑇𝐴𝐿 𝐴𝑆𝑆𝐸𝑇
There would be no significant difference among Total Advance to Total Asset

Ratio of selected public and private sector banks.
There would be significant difference among Total Advance to Total Asset

141
TABLE 4.7
Table of Total Advance to Total Asset Ratios of the Selected Public Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-

Avg.
BANK 08 09 10 11 12 13
Bank of Baroda 0.060 0.064 0.064 0.063 0.063 0.059 0.062
Bank of India 0.064 0.065 0.061 0.061 0.063 0.063 0.062

CHART 4.5.
Chart of Averages of Total Advance to Total Asset Ratios in Public Banks
0.0625
0.062
0.0615
State Bank of India
0.061 Bank of Baroda

Punjab National Bank
0.0605 Bank of India
0.06
0.0595
0.059
 By observing table 4.7, we can see that the average ratio for the 2007-08 to
the 2007-08 to 2012-13 of Punjab National Bank was found 0.061. The
found 0.061
to 2012-13 of Bank of India and Bank of Baroda was found highest while the
average ratio for the 2007-08 to 2012-13 of Central Bank of India was found
lowest.
142
TABLE 4.8.
Table of Total Advance to Total Asset Ratios of the Selected Private Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-
Avg.
BANK 08 09 10 11 12 13
AXIS Bank 0.578 0.594 0.587 0.578 0.552 0.544 0.572
HDFC Bank 0.599 0.578 0.577 0.566 0.540 0.476 0.556
ICICI Bank 0.541 0.519 0.533 0.499 0.576 0.564 0.539
KOTAK Bank 0.579 0.595 0.577 0.555 0.579 0.549 0.572
YES Bank 0.474 0.516 0.582 0.610 0.542 0.555 0.547
CHART 4.6.
Chart of Averages of Total Advance to Total Asset Ratios in Private Banks
0.58
0.57
Axis Bank Ltd.
0.56 HDFC Bank Ltd.
ICICI Bank Ltd.

0.55
Kotak Mahindra Bank

0.54 Ltd.
Yes Bank Ltd.
0.53
0.52
 By observing the table 4.8, we can see that the average ratio for the 2007-08 to
2012-13 of Axis Bank was found 0.572. The average ratio for the 2007-08 to
2012-13 of HDFC Bank Ltd. Was found 0.556. The average ratio for the
average ratio for the 2007-08 to 2012-13 of Yes Bank Ltd. was found 0.547.
to 2012-13 of Yes Bank Ltd. And Kotak Mahindra Bank Ltd. was found
highest while the average ratio for the 2007-08 to 2012-13 of ICICI Bank Ltd.
was found lowest.
143
4.3.2. T- value among Total Advance to Total Asset Ratio of selected public and
private sector banks.
TABLE 4.9.
Mean 0.06120 0.5572
SD 0.00084 0.01479
SEM 0.00037 0.00661
N 5 5
DF 8

difference
T-cal 74.8770

Explanation
0.007.
144
which are greater than the table value 2.31 of T at 5%.
 It indicates that T-cal is more than tabular value 2.31. Null hypothesis
rejected.
Interpretation
significant difference among Total Advance to Total Asset Ratio of selected public
and private sector banks and this ratio is on higher side of public sector banks.
4.4. GOVERNMENT SECURITIES TO TOTAL INVESTMENTS
The level of investment in government securities to total investment is an

imperative indicator, which demonstrates the hazard taking capacity of the bank. It
demonstrates a bank's technique as being high benefit high hazard or low benefit
generally safe. It additionally gives a view with regards to the accessibility of elective
investment openings. Government securities are by and large considered as the most
safe obligation instrument, which, thus, conveys the least return. Since government
securities are without hazard, the higher the government security to investment
proportion, the lower the hazard engaged with a bank's investments.
𝐺𝑂𝑉𝐸𝑅𝑁𝑀𝐸𝑁𝑇 𝑆𝐸𝐶𝑈𝑅𝐼𝑇𝑌
TOTAL ADVANCE TOTOTALASSET RATIO = 𝑇𝑂𝑇𝐴𝐿 𝐼𝑁𝑉𝐸𝑆𝑇𝑀𝐸𝑁𝑇
There would be no significant difference among Government Securities to

Total Investment Ratio of selected public and private sector banks.
There would be significant difference among Government Securities to Total

Investment Ratio of selected public and private sector banks.
145
TABLE 4.10.
Table of Government Securities to Total Investments Ratios of the Selected
Public Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-

Avg.
BANK 08 09 10 11 12 13
Bank of Baroda 0.009 0.013 0.013 0.014 0.016 0.016 0.0135
Bank of India 0.025 0.025 0.023 0.039 0.030 0.030 0.029
CHART 4.7.
Chart of Averages of Government Securities to Total Investments Ratio in
Public Banks
0.9
0.8
0.7
0.6 State Bank of India

Bank of Baroda
0.5
0.4
Bank of India
0.3 Central Bank of India
0.2
0.1
2007-08 to 2012-13 of Bank of Baroda was found 0.0135. The average ratio
for the 2007-08 to 2012-13 of Punjab National Bank was found 0.834. The
found 0.857.
to 2012-13 of Central Bank of India was found highest while the average ratio
for the 2007-08 to 2012-13 of Bank of Baroda was found lowest
146
TABLE 4.11.
Table of Government Securities to Total Investments Ratios of the Selected

Private Sector Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-

Avg.
BANK 08 09 10 11 12 13
AXIS Bank 0.635 0.627 0.613 0.611 0.613 0.596 0.616
HDFC Bank 0.761 0.782 0.756 0.871 0.887 0.641 0.783
ICICI Bank 0.539 0.545 0.476 0.566 0.615 0.676 0.569
KOTAK Bank 0.747 0.769 0.771 0.774 0.895 0.887 0.807
YES Bank 0.550 0.583 0.571 0.665 0.658 0.706 0.622
CHART 4.8.
Chart of Averages of Government Securities to Total Investments Ratios in

Private Banks
0.9
0.8
Axis Bank Ltd.
0.7
0.6 HDFC Bank Ltd.
0.5
ICICI Bank Ltd.
0.4
Kotak Mahindra Bank
0.3 Ltd.
Yes Bank Ltd.
0.2
0.1
 By observing the table 4.11, we can see that the average ratio for the 2007-08
to 2012-13 of Axis Bank was found 0.616. The average ratio for the 2007-08
to 2012-13 of HDFC Bank Ltd. Was found 0.783. The average ratio for the
to 2012-13 of Kotak Mahindra Bank was found highest while the average ratio
for the 2007-08 to 2012-13 of ICICI Bank Ltd. Was found lowest.
147
4.4.2. T-value among Government Securities to Total Investment Ratio of

TABLE 4.12.
Mean 0.5033 0.6794
SD 0.4408 0.1078
SEM 0.1971 0.0482
N 5 5
DF 8

difference
T-cal 0.8675

Explanation
 From the table 4.12 it is found that total number of banks in public segment
0.203.
which is less than the table value 2.31 of T at 5%.
148
 It indicates that T-cal is less than tabular value 2.31. Null hypothesis accepted.
Interpretation
significant difference among Government Securities to Total Investment Ratio of
selected public and private sector banks and this ratio is on higher side of private
sector banks.
4.5. GROSS NPA RATIO
This ratio is utilized to check whether the bank's gross NPAs are expanding
quarter on quarter or year on year. In the event that it is, showing that the bank is
including a crisp stock of terrible credits. It would mean the bank is either not
practicing enough alert when offering credits or is too careless as far as catching up
with borrowers on opportune reimbursements.
𝐺𝑅𝑂𝑆𝑆 𝑁𝑃𝐴
GROSS NPA RATIO = 𝑇𝑂𝑇𝐴𝐿 𝐿𝑂𝐴𝑁
There would be no significant difference among Gross NPA Ratio of selected

There would be significant difference among Gross NPA Ratio of selected

public and private sector banks
149
TABLE 4.13
Table of Gross NPA/ Total Loan Ratio of the Selected Public Sector Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-

BANK Avg.
08 09 10 11 12 13
Bank of Baroda 2.40 2.17 1.83 1.80 1.68 2.32 2.03
Bank of India 3.18 3.64 2.91 3.61 2.14 2.11 2.93


CHART 4.9.
Chart of Averages of Gross NPA/ Total Loan Ratio in Public Banks
4.5
3.5
3 State Bank of India

Bank of Baroda
2.5
2
Bank of India
0.5
 By observing table 4.13., we can see that the average ratio for the 2007-08 to
2012-13 of State Bank of India was found 1.1. The average ratio for the 2007-
08 to 2012-13 of Bank of Baroda was found 2.03. The average ratio for the
2007-08 to 2012-13 of Punjab National Bank was found 3.99. The average
ratio for the 2007-08 to 2012-13 of Central Bank of India was found 3.28.
to 2012-13 of Punjab National Bank was found highest while the average ratio
for the 2007-08 to 2012-13 of Central Bank of India was found lowest
150
TABLE 4.14.
Table of Gross NPA/ Total Loan Ratio of the Selected Private Sector Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-
Avg.
BANK 08 09 10 11 12 13
AXIS Bank 0.12 1.18 1.28 1.39 1.24 0.89 1.02
HDFC Bank 0.97 0.95 1.06 1.44 2.00 1.41 1.30
ICICI Bank 3.22 4.83 5.80 6.52 5.65 4.16 5.03
KOTAK Bank 1.55 1.56 2.03 3.62 4.31 2.88 2.65
YES Bank 0.20 0.22 0.24 0.27 0.68 0.12 0.288
CHART 4.10.
Chart of Averages of Gross NPA/ Total Loan Ratio in Private Banks
6
5
Axis Bank Ltd.
4 HDFC Bank Ltd.
ICICI Bank Ltd.

3
Kotak Mahindra Bank

2 Ltd.
Yes Bank Ltd.
1
to 2012-13 of Axis Bank was found 1.02. The average ratio for the 2007-08 to
to 2012-13 of ICICI Bank Ltd. Was found highest while the average ratio for
the 2007-08 to 2012-13 of Yes Bank Ltd. Was found lowest.
151
4.5.2. T-value among Gross NPA Ratio of selected public and private sector
banks.
TABLE 4.15.
Mean 2.6660 2.0576
SD 1.1243 1.8687
SEM 0.5028 0.8357
N 5 5
DF 8

difference
T-cal 0.6238
Remarks T-cal is less than tabular value 2.31. Null

Explanation
0.975.
152
Interpretation
significant difference among Gross NPA/ Total Loan ratio of selected public and
private sector banks and this ratio is on higher side of private sector banks.
4.6. NET NPA RATIO
Net NPAs mirror the execution of banks. An abnormal state of NPAs

recommends high likelihood of countless defaults that influence the benefit and net
worth of banks and likewise wear out the estimation of the advantage. Credits and
advances more often than not speak to the biggest resource of a large portion of the
banks. It monitors the nature of the bank's advance portfolio. The higher the ratio, the
higher the credits hazard...
𝑁𝐸𝑇 𝑁𝑃𝐴
NET NPA RATIO = 𝑇𝑂𝑇𝐴𝐿 𝐿𝑂𝐴𝑁
There would be no significant difference among Net NPA/Total Loan Ratio of

There would be significant difference among Net NPA/Total Loan Ratio of

153
TABLE 4.16.
Table of Net NPA Ratios of the Selected Public Sector Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-

Avg.
BANK 08 09 10 11 12 13
Bank of Baroda 1.28 0.54 0.35 0.34 0.31 0.47 0.548
Bank of India 2.06 1.47 0.91 1.31 0.44 0.52 1.12
CHART 4.11.
Chart of Averages of Net NPA Ratios in Public Banks
1.8
1.6
1.4
State Bank of India
1.2 Bank of Baroda
1 Punjab National Bank
0.8 Bank of India

0.6
0.4
0.2
to 2012-13 of State Bank of India was found highest while the average ratio
154
TABLE 4.17.
Table of Net NPA Ratios of the Selected Private Sector Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-

Avg.
BANK 08 09 10 11 12 13
AXIS Bank 0.36 0.27 0.29 0.40 0.40 0.42 0.36
HDFC Bank 0.20 0.18 0.19 0.31 0.63 0.47 0.33
ICICI Bank 0.77 0.73 1.11 2.12 2.09 1.55 1.39
KOTAK Bank 0.64 0.61 0.72 1.73 2.39 1.78 1.31
YES Bank 0.01 0.05 0.03 0.06 0.33 0.09 0.09
CHART 4.12.
Chart of Averages of Net NPA Ratios in Private Banks
1.6
1.4
Axis Bank Ltd.
1.2
HDFC Bank Ltd.
1
ICICI Bank Ltd.

0.8
0.6 Kotak Mahindra Bank

Ltd.
0.4 Yes Bank Ltd.
0.2
to 2012-13 of ICICI Bank Ltd. Was found highest while the average ratio for
the 2007-08 to 2012-13 of Yes Bank Ltd was found lowest.
155
4.6.2. T-value among Net NPA/Total Loan Ratio of selected public and private
sector banks.
TABLE 4.18.
Mean 1.2298 0.6960
SD 0.5111 0.6068
SEM 0.2286 0.2713
N 5 5
DF 8

difference
T-cal 1.5044

Explanation
 The mean for the ratio of public banks was found1.2298 while the mean for
0.355.
156
which is grater less the table value 2.31 of T at 5%.
Interpretation
significant difference among Net NPA/ Total Loan ratio of selected public and private
sector banks and this ratio is on higher side of private sector banks.
4.7 TOTAL ADVANCE TO TOTAL DEPOSIT RATIO
This ratio estimates the proficiency and capacity of the banks administration in
changing over the stores accessible with the banks (barring different finances like
value capital, and so forth.) into high winning advances. Total stores incorporate
demand stores, sparing stores, term store and store of other bank. Total advances
likewise incorporate the receivables.
𝑻𝑶𝑻𝑨𝑳 𝑨𝑫𝑽𝑨𝑵𝑪𝑬
TOTAL ADVANCE TO TOTAL DEPOSIT RATIO= 𝑻𝑶𝑻𝑨𝑳 𝑫𝑬𝑷𝑶𝑺𝑰𝑻
There would be no significant difference among Total Advances to Total

Deposits Ratio of selected public and private sector banks.
There would be significant difference among Total Advances to Total

157
TABLE 4.19.
Table of Total Advance to Total Deposit Ratios of the Selected Public Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-

Avg.
BANK 08 09 10 11 12 13
Bank of Baroda 0.069 0.075 0.075 0.073 0.074 0.070 0.07
Bank of India 0.076 0.078 0.071 0.073 0.075 0.076 0.07
CHART 4.13.
Chart of Averages of Total Advance to Total Deposit Ratios in Public Banks
0.082
0.08
0.078

Bank of Baroda
0.074
0.072
Bank of India
0.068
0.066
0.064
for the 2007-08 to 2012-13 of remaining banks were found similar lowest.
158
Table 4.20.
Table of Total Advance to Total Deposit Ratios of the Selected Private Sec Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-

Avg.
BANK 08 09 10 11 12 13
AXIS Bank 0.78 0.771 0.753 0.738 0.695 0.681 0.73
HDFC Bank 0.809 0.792 0.767 0.752 0.692 0.629 0.74
ICICI Bank 0.992 0.993 0.959 0.897 0.998 0.923 0.96
KOTAK Bank 0.950 1.014 1.002 0.870 1.063 0.947 0.97
YES Bank 0.702 0.773 0.748 0.828 0.767 0.710 0.75
CHART 4.14.
Chart of Averages of Total Advance to Total Deposit Ratios in Private Be
1.2
1 Axis Bank Ltd.
0.8 HDFC Bank Ltd.
ICICI Bank Ltd.

0.6
Kotak Mahindra Bank

0.4 Ltd.
Yes Bank Ltd.
0.2
to 2012-13 of Kotak Mahindra Bank Ltd. Was found highest while the
average ratio for the 2007-08 to 2012-13 of Yes Bank Ltd was found lowest.
159
4.7.2. T-value among Total Advances to Total Deposits Ratio of selected public
and private sector banks.
TABLE 4.21.
Mean 0.072 0.8300
SD 0.0045 0.1235
SEM 0.0020 0.0552
N 5 5
DF 8

difference
T-cal 13.7162

Explanation
 The mean for the ratio of public banks was found 0.072 while the mean for the
0.055.
160
rejected.
Interpretation
From the presentation of tables and charts it can be said that there is
significant difference among Total Advance to Deposit ratio of selected public and
4.8. BUSINESS PER EMPLOYEE
Revenue per worker is a proportion of how effectively a specific bank is using

its representatives. Preferably, a bank needs the most astounding business per worker
conceivable, as it indicates higher profitability. As a rule, rising revenue per
representative is a positive sign that proposes the bank is discovering approaches to
crush more deals/revenues out of every one of its worker.
𝑻𝑶𝑻𝑨𝑳 𝑰𝑵𝑪𝑶𝑴𝑬
BUSINESS PER EMPLOYEE = 𝑵𝑶.𝑶𝑭.𝑬𝑴𝑷𝑳𝑶𝒀𝑬𝑬𝑺
There would be no significant difference among Business per Employee Ratio

of selected public and private sector banks.
There would be significant difference among Business per Employee Ratio of

161
TABLE 4.22.
Table of Business per Employee Ratios of the Selected Public Sector Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-
Avg.
BANK 08 09 10 11 12 13
Bank of Baroda 168.9 146.6 122.9 98.1 91.4 71.12 116.50
Bank of India 158.20 136 128.4 101.1 83.3 65.20 112.03
CHART 4.15.
Chart of Averages of Business per Employee Ratios in Public Banks
140
120
100
State Bank of India
80 Bank of Baroda
60 Bank of India
40
20
found 72.38.
the 2007-08 to 2012-13 of State Bank of India was found lowest.
162
TABLE 4.23.
Table of Business per Employee Ratios of the Selected Private Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-
Avg.
BANK 08 09 10 11 12 13
AXIS Bank 121.50 127.60 136.60 111.10 106.12 111.70 119.1
HDFC Bank 75.12 65.40 65.30 59 44 50.60 59.90
ICICI Bank 73.54 70.80 73.50 76.50 115.4 100.8 85.09
KOTAK Bank 68.60 61.30 53.50 48.70 34.7 38.4 50.87
YES Bank 177.42 174.77 222.03 162.38 98.84 69.31 150.79
CHART 4.16.
Chart of Averages of Business per Employee Ratios in Private Banks
160
140
Axis Bank Ltd.
120
HDFC Bank Ltd.
100
ICICI Bank Ltd.

80
60 Kotak Mahindra Bank

Ltd.
40 Yes Bank Ltd.
20
to 2012-13 of Axis Bank was found 1199.1. The average ratio for the 2007-08
to 2012-13 of HDFC Bank Ltd. Was found 59.90. The average ratio for the
to 2012-13 of Yes Bank Ltd was found highest while the average ratio for the
2007-08 to 2012-13 of Kotak Mahindra Bank Ltd was found lowest.
163
4.8.2. T-value among Business per Employee Ratio of selected public and private
sector banks
TABLE 4.24.
Mean 92.008 93.150
SD 22.08 41.69
SEM 9.88 18.65
N 5 5
DF 8

difference
T-cal 0.0541

Explanation
 The SEM for the ratio of public banks was found 9.88 while the SEM for the
164
21.102.
Interpretation
significant difference among Business per Employee ratio of selected public and
private sector banks and this ratio is on higher side of private sector banks
4.9 DIVIDEND PAY-OUT RATIO
Dividend pay-out ratio shows the percentage of profit shared with the shareholders.
The more the ratio will increase the goodwill of the bank in the share market will
strengthen more.
𝐷𝐼𝑉𝐼𝐷𝐸𝑁𝐷
DIVIDEND PAY-OUT RATIO= 𝑁𝐸𝑇 𝑃𝑅𝑂𝐹𝐼𝑇
There would be no significant difference among Dividend Pay-out Ratio of

There would be significant difference among Dividend Pay-out Ratio of

selected public and private sector banks
165
TABLE 4.25.
Table of Dividend Pay-Out Ratios of the Selected Public Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-

Avg.
BANK 08 09 10 11 12 13
Bank of Baroda 1 1.20 1.10 0.80 0.60 0.39 0.84
Bank of India 0.64 0.64 0.62 0.44 0.75 0.50 0.59
CHART 4.17.
Chart of Averages of Dividend Pay-Out Ratios in Public Banks

0.9
0.8
0.7

Bank of Baroda
0.5
0.4
Bank of India
0.2
0.1
the 2007-08 to 2012-13 of Central Bank of India Ltd was found lowest.
166
TABLE 4.26.
Table of Dividend Pay-Out Ratios of the Selected Private Sector Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-
Avg.
BANK 08 09 10 11 12 13
AXIS Bank 1.50 1.40 1.40 1.20 1 0.84 1.22
HDFC Bank 1 0.81 0.74 0.60 0.42 0.50 0.68
ICICI Bank 1.40 1.10 1 0.90 1.10 1 1.08
KOTAK Bank 1 0.90 0.80 0.70 0.30 0.40 0.68
YES Bank 2.10 2.04 2.09 1.68 1.14 0.64 1.61
CHART 4.1
Chart of Averages of Dividend Pay-Out Ratios in Private Banks
1.8
1.6
Axis Bank Ltd.
1.4
1.2 HDFC Bank Ltd.
1
ICICI Bank Ltd.
0.8
Kotak Mahindra Bank
0.6 Ltd.
Yes Bank Ltd.
0.4
0.2
to 2012-13 of Axis Bank Ltd was found highest while the average ratio for the
2007-08 to 2012-13 of HDFC Bank Ltd and Kotak Mahindra Bank Ltd were
found lowest.
167
4.9.2. T-value among Dividend Pay-out Ratio of selected public and private
sector banks.
TABLE 4.27.
Mean 0.5660 1.0540
SD 0.2272 0.3928
SEM 0.1016 0.1757
N 5 5
DF 8

difference
T-cal 2.4047
Remarks T-cal is more than tabular value 2.31. Null

hypothesis rejected.
Explanation
168
0.203.
rejected.
Interpretation
significant difference among Dividend pay-out ratio of selected public and private
sector banks and this ratio is on higher side of private sector banks
4.10. RETURN ON ASSET RATIO
Net profit to total asset shows the proficiency of the banks in using their assets in
producing profits. A higher ratio demonstrates the better pay producing limit of the
assets and better productivity of administration in future.
𝑁𝐸𝑇 𝑃𝑅𝑂𝐹𝐼𝑇
RETURN ON ASSET RATIO= 𝑇𝑂𝑇𝐴𝐿 𝐴𝑆𝑆𝐸𝑇
There would be no significant difference among Return on Assets Ratio of

There would be significant difference among Return on Assets Ratio of

169
TABLE 4.28.
Table of Return on Assets Ratios of the Selected Public Sector Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-

Avg.
BANK 08 09 10 11 12 13
Bank of Baroda 0.90 1.24 1.33 1.21 1.09 0.89 1.11
Punjab National Bank 1 1.19 1.34 1.44 1.39 1.15 1.25
Bank of India 0.65 0.72 0.82 0.70 1.49 1.25 0.94
CHART 4.19.
Chart of Averages of Return on Assets Ratios in Public Banks
1.4
1.2
1
State Bank of India
0.8 Bank of Baroda

0.6 Bank of India
0.4
0.2
to 2012-13 of Punjab National Bank Ltd was found highest while the average
ratio for the 2007-08 to 2012-13 of Central Bank of India was found lowest.
170
TABLE 4.29.
Table of Return on Assets Ratios of the Selected Private Sector Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-

Avg.
BANK 08 09 10 11 12 13
AXIS Bank 1.70 1.68 1.68 1.67 1.44 1.24 1.57
HDFC Bank 1.90 1.77 1.58 1.53 1.28 1.32 1.56
ICICI Bank 1.70 1.50 1.35 1.13 0.98 1.32 1.33
KOTAK Bank 1.81 1.83 1.77 1.72 1.03 1.21 1.56
YES Bank 1.57 1.57 1.58 1.79 1.59 1.54
CHART 4.20.
Chart of Averages of Return on Assets Ratios in Private Banks
1.8
1.6 Axis Bank Ltd.
1.4
HDFC Bank Ltd.
1.2
1 ICICI Bank Ltd.
0.8
Ltd.
0.4
Yes Bank Ltd.
0.2
0
ratio for the 2007-08 to 2012-13 of Yes Bank Ltd. was found 1.61
to 2012-13 of Yes Bank Ltd was found highest while the average ratio for the
2007-08 to 2012-13 of ICICI Bank Ltd. Was found lowest.
171
4.10.2. T-value among Return on Assets Ratio of selected public and private
sector banks.
TABLE 4.30.
Mean 0.9430 1.5260
SD 0.2788 0.1115
SEM 0.12472 0.04986
N 5 5
DF 8

difference
T-cal 4.3406

Explanation
172
0.134.
rejected.
Interpretation
significant difference among Return on Asset ratio of selected public and private
sector banks and this ratio is on higher side of private sector banks.
4.11. INTEREST INCOME TO TOTAL INCOME RATIO
Interest income is an essential wellspring of revenue for banks. The premium

pay total wage demonstrates the capacity of the bank in producing wage from its
loaning. As it were, this ratio estimates the pay from loaning operations as a level of
the total pay created by the bank in a year. Intrigue wage incorporates wage on
advances, enthusiasm on stores with the RBI, and profit wage.
𝐼𝑁𝑇𝐸𝑅𝐸𝑆𝑇 𝐼𝑁𝐶𝑂𝑀𝐸
INTEREST INCOME TO TOTAL INCOME RATIO = 𝑇𝑂𝑇𝐴𝐿 𝐼𝑁𝐶𝑂𝑀𝐸
There would be no significant difference among Interest Income to Total

Income Ratio of selected public and private sector banks.
There would be significant difference among Interest Income to Total Income

173
TABLE 4.31.
Table of Interest Income to Total Income Ratios of the Selected Public Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-

Avg.
BANK 08 09 10 11 12 13
Bank of Baroda 0.906 0.897 0.886 0.856 0.846 0.852 0.87
Bank of India 0.894 0.896 0.892 0.872 0.843 0.854 0.88
CHART 4.21.
Chart of Averages of Interest Income to Total Income Ratios in Public Banks
0.92
0.91
0.9
0.89
State Bank of India
0.88 Bank of Baroda
0.86 Bank of India

0.85
0.84
0.83
0.82
for the 2007-08 to 2012-13 of State Bank of India was found lowest.
174
TABLE 4.32.
Table of Interest Income to Total Income Ratios of the Selected Private Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-

Avg.
BANK 08 09 10 11 12 13
AXIS Bank 0.806 0.802 0.766 0.747 0.789 0.796 0.78
HDFC Bank 0.837 0.828 0.821 0.802 0.832 0.816 0.82
ICICI Bank 0.828 0.817 0.796 0.775 0.804 0.778 0.80
KOTAK Bank 0.874 0.874 0.911 0.916 0.898 0.925 0.90
YES Bank 0.868 0.880 0.866 0.805 0.821 0.783 0.84
CHART 4.22.
Chart of Averages of Interest Income to Total Income Ratios in Private Banks
0.92
0.9
0.88
0.86
Axis Bank Ltd.
0.84 HDFC Bank Ltd.
0.82 ICICI Bank Ltd.
0.8 Kotak Mahindra Bank Ltd.

Yes Bank Ltd.
0.78
0.76
0.74
0.72
to 2012-13 of Axis Bank Ltd was found highest while the average ratio for the
2007-08 to 2012-13 of Yes Bank of India was found lowest
175
4.11.2. T-value among Interest Income to Total Income Ratio of selected public
TABLE 4.33.
Mean 0.8780 0.8280
SD 0.0217 0.0460
SEM 0.0097 0.0206
N 5 5
DF 8

difference
T-cal 2.1969

Explanation
176
0.023.
accepted.
Interpretation
significant difference among Interest income to total income ratio of selected public
4.12. OTHER INCOME TO TOTAL INCOME RATIO
Fee based income account for a noteworthy bit of the bank's other income. The
bank creates higher fee income through inventive items and adjusting the innovation
for supported administration levels. The higher ratio shows expanding extent of fee
based income. The ratio is likewise impacted by gains on government securities,
which changes relying upon loan fee development in the economy.
𝑂𝑇𝐻𝐸𝑅 𝐼𝑁𝐶𝑂𝑀𝐸
OTHER INCOME TO TOTAL INCOME RATIO = 𝑇𝑂𝑇𝐴𝐿 𝐼𝑁𝐶𝑂𝑀𝐸
There would be no significant difference among Other Income to Total

Income Ratio of selected public and private sector banks.
There would be significant difference among Other Income to Total Income

177
TABLE 4.34.
Table of Other Income to Total Income Ratio of the Selected Public Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-

Avg.
BANK 08 09 10 11 12 13
Bank of Baroda 0.094 0.103 0.114 0.144 0.154 0.148 0.13
Bank of India 0.106 0.104 0.108 0.128 0.157 0.146 0.12
CHART 4.23.
Chart of Averages of Other Income to Total Income Ratios in Public Banks
0.16
0.14
0.12
State Bank of India

0.1
Bank of Baroda
Bank of India
0.06
0.04
0.02
for the 2007-08 to 2012-13 of Central Bank of India was found lowest.
178
TABLE 4.35.
Table of Other Income to Total Income Ratio of the Selected Private Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-

Avg.
BANK 08 09 10 11 12 13
AXIS Bank 0.194 0.198 0.234 0.253 0.211 0.204 0.22
HDFC Bank 0.163 0.172 0.179 0.198 0.168 0.184 0.18
ICICI Bank 0.172 0.183 0.204 0.225 0.196 0.222 0.20
KOTAK Bank 0.126 0.137 0.157 0.162 0.082 0.155 0.14
YES Bank 0.132 0.120 0.134 0.195 0.179 0.217 0.16
CHART 4.24.
Chart of Averages of Other Income to Total Income Ratios in Private Banks
0.25
0.2 Axis Bank Ltd.
HDFC Bank Ltd.

0.15
ICICI Bank Ltd.

Ltd.
Yes Bank Ltd.
0.05
to 2012-13 of Axis Bank Ltd. was found highest while the average ratio for
the 2007-08 to 2012-13 of Kotak Mahindra Bank Ltd was found lowest.
179
4.12.2. T-value among Other Income to Total Income Ratio of selected public
TABLE 4.36.
Mean 0.1220 0.1800
SD 0.0217 0.0316
SEM 0.0097 0.0141
N 5 5
DF 8

difference
T-cal 3.3826

Explanation
ratio of private banks was found 0.0316
0.017.
180
rejected.
Interpretation
significant difference among other income to total income ratio of selected public and
4.13 LIQUID ASSET TO TOTAL ASSET RATIO
A satisfactory liquidity position alludes to a circumstance, where

establishment can get adequate assets, either by expanding liabilities or by changing
over its assets rapidly at a sensible cost. It is, subsequently, by and large evaluated as
far as generally speaking assets and obligation administration, as confounding offers
ascend to liquidity hazard. Liquid assets include cash in hand, balance with the RBI,
balance with other banks (both in India and abroad), and money at call and short
notice. Total asset include the revaluations of all the assets. The proportion of liquid
asset to total asset indicates the overall liquidity position of the bank.
𝑳𝑰𝑸𝑼𝑰𝑫 𝑨𝑺𝑺𝑬𝑻
LIQUID ASSET TO TOTAL ASSET RATIO = 𝑻𝑶𝑻𝑨𝑳 𝑨𝑺𝑺𝑬𝑻
There would be no significant difference among Liquid Assets to Total Assets

There would be significant difference among Liquid Assets to Total Assets

Ratio of selected public and private sector banks
181
TABLE 4.37.
Table of Liquid Assets to Total Assets Ratio of the Selected Public Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-

Avg.
BANK 08 09 10 11 12 13
Bank of Baroda 0.156 0.143 0.139 0.127 0.106 0.124 0.13
Bank of India 0.121 0.09 0.106 0.114 0.097 0.099 0.10
(Source: Computed and Compiled from Annual reports of respective Bank).
CHART 4.25.
Chart of Averages of Liquid Assets to Total Assets Ratios in Public Banks
0.14
0.12
0.1
State Bank of India
0.08 Bank of Baroda

0.06 Bank of India
0.04
0.02
the 2007-08 to 2012-13 of State Bank of India, Punjab National Bank, Central
Bank of India were found equally lowest.
182
TABLE 4.38.
Table of Liquid Assets to Total Assets Ratio of the Selected Private Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-

Avg.
BANK 08 09 10 11 12 13
AXIS Bank 0.060 0.049 0.088 0.084 0.102 0.114 0.08
HDFC Bank 0.068 0.062 0.107 0.135 0.096 0.111 0.09
ICICI Bank 0.077 0.074 0.084 0.107 0.079 0.095 0.08
KOTAK Bank 0.044 0.040 0.049 0.061 0.040 0.075 0.05
YES Bank 0.041 0.049 0.059 0.073 0.084 0.096 0.07
CHART 4.26.
Chart of Averages of Liquidity Assets to Total Assets Ratios in Private Banks
0.1
0.09
0.08 Axis Bank Ltd.
0.07
HDFC Bank Ltd.
0.06
ICICI Bank Ltd.
0.05

Ltd.
0.03
Yes Bank Ltd.
0.02
0.01
 By observing the table4.38, we can see that the average ratio for the 2007-08
to 2012-13 of HDFC Bank Ltd was found highest while the average ratio for
the 2007-08 to 2012-13 of Kotak Mahindra Bank Ltd. was found lowest.
183
4.13.2. T-value among Liquid Assets to Total Assets Ratio of selected public and
private sector banks.
TABLE 4.39.
Mean 0.0940 0.0740
SD 0.0219 0.0152
SEM 0.0098 0.0068
N 5 5
DF 8

difference
T-cal 1.6784

Explanation
0.012.
184
Interpretation
significant difference among other Liquid asset to total asset ratio of selected public
4.14. GOVERNMENT SECURITIES TO TOTAL ASSET RATO
Government Securities are the most fluid and safe investments. This ratio
estimates the government securities as an extent of total assets. Banks put resources
into government securities essentially to meet their SLR necessities, which are around
25% of net demand and time liabilities. This ratio estimates the hazard associated with
the assets hand by a bank.
𝐺𝑂𝑉𝐸𝑅𝑁𝑀𝐸𝑁𝑇 𝑆𝐸𝐶𝑈𝑅𝐼𝑇𝐼𝐸𝑆
GOVERNMENT SECURITIES TO TOTAL ASSET RATIO =
𝑇𝑂𝑇𝐴𝐿 𝐴𝑆𝑆𝐸𝑇
There would be no significant difference among Government Securities to

Total Assets Ratio of selected public and private sector banks.
There would be significant difference among Government Securities to Total

Assets Ratio of selected public and private sector banks.
185
TABLE 4.40
Table of Government Securities to Total Assets Ratio of the Selected Public
Sector Bank
YEAR 2007- 2008- 2009- 2010- 2011- 2012-
BANK Avg.
08 09 10 11 12 13
Bank of Baroda 0.002 0.002 0.003 0.004 0.003 0.004 0.003
Bank of India 0.005 0.006 0.006 0.009 0.007 0.007 0.007
CHART 4.27.
Chart of Averages of Government Securities to Total Assets Ratios in Public
Bank
0.25
0.2
State Bank of India

0.15 Bank of Baroda
0.1 Bank of India

0.05
ratio for the 2007-08 to 2012-13 of Bank of India was found 0.007. The
average ratio for the 2007-08 to 2012-13 of Central Bank of India was found
0.23.
186
TABLE 4.41.
Table of Government Securities to Total Assets Ratio of the Selected Private
Sector Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-

Avg.
BANK 08 09 10 11 12 13
AXIS Bank 0.212 0.205 0.182 0.189 0.192 0.183 0.19
HDFC Bank 0.212 0.226 0.193 0.229 0.285 0.238 0.23
ICICI Bank 0.172 0.178 0.158 0.188 0.167 0.189 0.17
KOTAK Bank 0.258 0.256 0.260 0.259 0.284 0.286 0.27
YES Bank 0.238 0.220 0.182 0.187 0.204 0.212 0.21
CHART 4.28.
Chart of Averages of Government Securities to Total Assets Ratios in Private
Banks
0.3
0.25
Axis Bank Ltd.
0.2 HDFC Bank Ltd.
ICICI Bank Ltd.

0.15
Kotak Mahindra Bank

0.1 Ltd.
Yes Bank Ltd.
0.05
to 2012-13 of Kotak Mahindra Bank Ltd was found highest while the average
ratio for the 2007-08 to 2012-13 of ICICI Bank Ltd. was found lowest.
187
4.14.2. T-value among Government Securities to Total Assets Ratio of selected

TABLE 4.42.
Mean 0.1300 0.21400
SD 0.1150 0.0384
SEM 0.0514 0.0172
N 5 5
DF 8

difference
T-cal 1.5482

Explanation
 The SEM for the ratio of public banks was found 0.0514while the SEM for the
0.054.
188
Interpretation
significant difference among Government securities to total asset ratio of selected
public and private sector banks and this ratio is on higher side of private sector banks.
4.15. APPROVED SECURITIES TO TOTAL ASSET RATIO
Approved securities incorporate securities other than government securities. This

ratio estimates the Approved Securities as an extent of Total Assets. Banks put
resources into approved securities essentially subsequent to meeting their SLR
prerequisites, which are around 25% of net demand and time liabilities. This ratio
estimates the hazard associated with the assets hand by a bank.
𝐴𝑃𝑃𝑅𝑂𝑉𝐸𝐷 𝑆𝐸𝐶𝑈𝑇𝐼𝑇𝐼𝐸𝑆
APPROVED SECURITIES TO TOTAL ASSET RATIO = 𝑇𝑂𝑇𝐴𝐿 𝐴𝑆𝑆𝐸𝑇
There would be no significant difference among Approved Securities to Total

There would be significant difference among Approved Securities to Total

189
TABLE 4.43.
Table of Approved Securities to Total Assets Ratio of the Selected Public Banks
YEAR
2007- 2008- 2009- 2010- 2011- 2012-
BANK Avg.
08 09 10 11 12 13
State Bank of India 0 0 0.00035 0.00098 0.0019 0.0014 0.0007
Bank of Baroda 0 0 0 0.00015 0.00036 0.0004 0.0002
Bank of India 0 0 0 0.00015 0.0002 0.0003 0.0001

CHART 4.29
Chart of Averages of Approved Securities to Total Assets Ratios in Public Bank
0.0008
0.0007
0.0006

Bank of Baroda
Bank of India
0.0002
0.0001
found 0.0003.
for the 2007-08 to 2012-13 of Bank of India was found lowest.
190
TABLE 4.44.
Table of Approved Securities to Total Assets Ratio of the Selected Private

Sector Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-

Avg.
BANK 08 09 10 11 12 13
AXIS Bank 0 0 0 0 0 0 0
HDFC Bank 0 0 0 0 0.00001 0 0
ICICI Bank 0 0 0 0 0.00001 0 0
KOTAK Bank 0 0 0 0 0 0 0
YES Bank 0 0.00001 0.00002 0 0 0 0
to 2012-13 of Axis Bank was found 0. The average ratio for the 2007-08 to
2012-13 of HDFC Bank Ltd. Was found 0... The average ratio for the 2007-
08 to 2012-13 of ICICI Bank Ltd. was found 0. The average ratio for the
2007-08 to 2012-13 of Kotak Mahindra Bank was found 0.The average ratio
for the 2007-08 to 2012-13 of Yes Bank Ltd. was found 0.
191
4.15.2. T-value among Approved securities to total asset ratio of selected public
and private sector banks
Table 4.45.
Mean 0.00034 0.0000
SD 0.00023 0.0000
SEM 0.000103 0.0000
N 5 5
DF 8

difference
T-cal 3.3024

Explanation
0.00.
192
rejected.
Interpretation
significant difference among Approved securities to total asset ratio of selected public
4.16. LIQUID ASSET TO DEMAND DEPOSIT RATIO
This ratio estimates the capacity of a bank to take care of the demand from
stores-deposit in a specific year. Demand stores offer high liquidity to the depositor
and subsequently banks need to put these assets in a profoundly fluid frame.
𝐿𝐼𝑄𝑈𝐼𝐷 𝐴𝑆𝑆𝐸𝑇
LIQUID ASSET TO DEMAND DEPOSIT RATIO = 𝐷𝐸𝑀𝐴𝑁𝐷 𝐷𝐸𝑃𝑂𝑆𝐼𝑇
There would be no significant difference among Liquidity Assets to Demand

There would be significant difference among Liquidity Assets to Demand

193
Table 4.46.
Table of Liquid Assets to Demand Deposits Ratio of the Selected Public Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-

Avg.
BANK 08 09 10 11 12 13
Bank of Baroda 2.394 2.217 2.158 1.874 1.667 1.907 2.04
Bank of India 2.703 1.933 2.212 2.316 1.73 1.42 1.99
CHART 4.30.
Chart of Averages of Liquid Assets to Demand Deposits Ratios in Public Banks
2.5
State Bank of India

1.5 Bank of Baroda
1 Bank of India
0.5
the 2007-08 to 2012-13 of State Bank of India was found lowest
194
TABLE 4.47.
Table of Liquid Assets to Demand Deposits Ratio of the Selected Private Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-

Avg.
BANK 08 09 10 11 12 13
AXIS Bank 0.423 0.351 0.580 0.473 0.605 0.624 0.50
HDFC Bank 0.522 0.461 0.639 0.804 0.615 0.514 0.59
ICICI Bank 1.122 1.036 0.980 1.254 1.385 1.541 1.22
KOTAK Bank 0.482 0.358 0.453 0.461 0.334 0.673 0.46
YES Bank 0.610 0.733 0.889 1.101 1.576 1.657 1.09
CHART 4.31.
Chart of Averages of Liquid Assets to Demand Deposits Ratios in Private Banks
1.4
1.2
Axis Bank Ltd.
1
HDFC Bank Ltd.
0.8
ICICI Bank Ltd.
0.6
Kotak Mahindra Bank
Ltd.
0.4
Yes Bank Ltd.
0.2
ratio for the 2007-08 to 2012-13 of Yes Bank Ltd. was found 1.0
to 2012-13 of ICICI Bank Ltd was found highest while the average ratio for
195
4.16.2. T-value among Liquid asset to Demand deposit ratio of selected public
TABLE 4.48.
Mean 1.47 0.7720
SD 0.5340 0.3558
SEM 0.2388 0.1591
N 5 5
DF 8

difference
T-cal 2.4324

Explanation
was 5 and in private segment it1 were 5 under the study.
 The mean for the ratio of public banks was found 1.47 while the mean for the
196
0.287.
rejected.
Interpretation
significant difference among Liquid asset to Demand deposit ratio of selected public
4.17. LIQUID ASSET TO TOTAL DEPOSIT RATIO
This ratio estimates the liquidity accessible to the deposits of a bank. Total
deposits incorporate demand stores, reserve funds stores, term stores and stores of
other money related establishments. Fluid assets incorporate trade out hand, adjust
with the RBI, and adjust with different banks (both in India and abroad), and cash at
call and short notice.
𝑳𝑰𝑸𝑼𝑰𝑫 𝑨𝑺𝑺𝑬𝑻
LIQUID ASSET TO TOTAL DEPOSIT RATIO = 𝑻𝑶𝑻𝑨𝑳 𝑫𝑬𝑷𝑶𝑺𝑰𝑻
There would be no significant difference among Liquid Assets to Total

There would be significant difference among Liquid Assets to Total Deposits

197
TABLE 4.49
Table of Liquid Assets to Total Deposits Ratio of the Selected Public Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-

Avg.
BANK 08 09 10 11 12 13
Bank of Baroda 0.180 0.167 0.163 0.147 0.125 0.147 0.15
Bank of India 0.144 0.109 0.125 0.135 0.114 0.118 0.12
CHART 4.32.
Chart of Averages Liquid Assets to Total Deposits Ratios in Public Banks
0.16
0.14
0.12
State Bank of India

0.1
Bank of Baroda
Bank of India
0.06
0.04
0.02
2007-08 to 2012-13 of Bankof Baroda was found 0.15. The average ratio for
the 2007-08 to 2012-13 of Punjab National Bank and Central Bank of India
were found equally lowest.
198
TABLE 4.50.
Table of Liquid Assets to Deposits Ratio of the Selected Private Sector Banks
YEAR 2007- 2008- 2009- 2010- 2011- 2012-

Avg.
BANK 08 09 10 11 12 13
AXIS Bank 0.081 0.063 0.113 0.108 0.128 0.143 0.10
HDFC Bank 0.092 0.085 0.142 0.179 0.123 0.147 0.13
ICICI Bank 0.142 0.142 0.151 0.192 0.137 0.156 0.15
KOTAK Bank 0.072 0.068 0.084 0.096 0.073 0.129 0.087
YES Bank 0.061 0.073 0.076 0.1 0.119 0.123 0.092
CHART 4.33.
Chart of Averages Liquid Assets to Total Deposits Ratios in Private Banks
0.16
0.14
Axis Bank Ltd.
0.12
HDFC Bank Ltd.
0.1
ICICI Bank Ltd.

0.08

Ltd.
0.04 Yes Bank Ltd.
0.02
to 2012-13 of ICICI Bank Ltd was found highest while the average ratio for
199
4.17. 2. T-value among Liquid Assets to Total Deposits Ratio of selected public
TABLE 4.51.
Mean 0.1140 0.1118
SD 0.0251 0.0271
SEM 0.0112 0.0121
N 5 5
DF 8

difference
T-cal 0.1332

Explanation
0.017.
200
Interpretation
From the presentation and charts it can be said that there is no significant
difference among Liquid asset to total deposit ratio of selected public and private
sector banks and this ratio is on higher side of public sector banks.
4.18 CONCLUSION
This chapter is the heart of the research work. 17 ratios under CAMEL are
calculated and compiled for selected public and private sector banks. They are
presented in tables and charts to interpret and analysis. Hypothesis testing is also done
as per T-test and shown in table for the interpretation of rejection or acceptance of
those one. Moreover a comparative aspect of both banks also considered and
according to it probable findings and suggestion can be drawn out.
201
REFERENCES
¤ C.R.Kothari, Research Methodology, Wiley Eastern

¤ Dr.S.Shajahan, Research Methodology, Jaico Publising House.
¤ Rigby Paul.H, Conceptual Foundation of Business Research, wiley and
Sons,New Delhi
¤ Michel V.P , Research Methodology in Management, Himalaya, Bombay
¤ S.P.Gupta, Statistical method (Sultan and Chand)
¤ Lehman E.L, Testing of hypothesis, (Wiley Eastern)
¤ Dr.J.H Patel, Statistical Analysis (In Gujarati C.Jamnadas & Co.)
202

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CHAPTER-4 DATA ANALYSIS AND INTERPRETATION

DATA ANALYSIS AND INTERPRETATION

4.1. CAPITAL RISK ADEQUACY RATIO

4.2. DEBT EQUITY RATIO

4.3. TOTAL ADVANCE TO TOTAL ASSET RATIO

4.4. GOVERNMENT SECURITIES TO TOTAL INVESTMENTS RATIO

4.5. GROSS NPA RATIO

4.6. NET NPA RATIO

4.7. TOTAL ADVANCES TO TOTAL DEPOSIT RATIO

4.8. BUSINESS PER EMPLOYEE

4.9. DIVIDEND PAYOUT RATIO

4.10. RETURN ON ASSET RATIO

4.11. INTEREST INCOME TO TOTAL INCOME RATIO

4.12. OTHER INCOME TO TOTAL INCOME RATIO

4.13. LIQUID ASSET TO TOTAL ASSET RATIO

4.14. GOVERNMENT SECURITIES TO TOTAL ASSET RATIO

4.15. APPROVED SECURITIES TO TOTAL ASSET RATIO

4.16. LIQUID ASSET TO DEMAND DEPOSIT RATIO

4.17. LIQUID ASSET TO TOTAL DEPOSIT RATIO

4.1. CAPITAL RISK ADEQUACY RATIO

4.1.1 Hypothesis Testing

Null Hypothesis (Ho):-

There would be no significant difference among Capital Risk Adequacy Ratio

Alternative Hypothesis (Ha):-

There would be significant difference among Capital Risk Adequacy Ratio of

YEAR 2007- 2008- 2009- 2010- 2011- 2012-

State Bank of India

Statistical data Public banks Private banks

Mean 12.86 16.76

SEM 0.4047 0.6996

Standard error of 0.808

Remarks T-cal is more than tabular value 2.31.

4.2. DEBT EQUITY RATIO

4.2.1 Hypothesis Testing

Null Hypothesis (Ho):-

There would be no significant difference among Debt Equity Ratio of selected

Alternative Hypothesis (Ha):-

There would be significant difference among Debt Equity Ratio of selected

YEAR 2007- 2008- 2009- 2010- 2011- 2012-

Chart of Averages of Debt Equity Ratios in Public Banks

State Bank of India

Table of Debt Equity Ratios of the Selected Private Sector Banks

YEAR 2007- 2008- 2009- 2010- 2011- 2012-

Chart of Averages of Debt Equity Ratios in Public Banks

2 Axis Bank Ltd.

HDFC Bank Ltd.

1 Kotak Mahindra Bank

Statistical data Public banks Private banks

Mean 0.9820 1.5440

SEM 0.1607 0.2700

Standard error of 0.314

Remarks T-cal is less than tabular value 2.31.

4.3 TOTAL ADVANCE TO TOTAL ASSET RATIO

4.3.1 Hypothesis Testing

Null Hypothesis (Ho):-

There would be no significant difference among Total Advance to Total Asset

Alternative Hypothesis (Ha):-

There would be significant difference among Total Advance to Total Asset

YEAR 2007- 2008- 2009- 2010- 2011- 2012-

(Source: Computed and Compiled from Annual reports of respective Bank)

0.061 Bank of Baroda

0.56 HDFC Bank Ltd.

ICICI Bank Ltd.

Kotak Mahindra Bank