CURRENT RATIO

BOI
2021
• The liquid assets of the bank increased. Therefore we can see that the
ratio is increasing. A liquid asset is a crucial factor that affects the
current ratio. Hence an increase in the current ratio during this
period.
• Deposits are increasing. Banks with high deposits generally have a
higher current ratio because they have more cash available to meet
their short-term financial obligations. Therefore the current ratio is
increasing.
• As we know, the financial year 2020, banks have to face huge losses
due to the pandemic. The financial year 2021 was the year economy
got back on track. Therefore, we can see an increase in deposits,
which resulted in an increase in the current ratio.

2022
• The liquid assets of the bank decreased. Therefore we can see that
the ratio is decreasing. A liquid asset is a crucial factor that affects
the current ratio.
• Operating expenses of the bank increased during this period. Thus
leading to a decrease in the current ratio. Banks with high operating
expenses may have a lower current ratio because they have less cash
available to meet their short-term financial obligations.

BOB
2021
• The liquid assets of the bank increased. Therefore we can see that the
ratio is increasing. A liquid asset is a crucial factor that affects the
current ratio. Hence an increase in the current ratio during this
period.
• Deposits are increasing. Banks with high deposits generally have a
higher current ratio because they have more cash available to meet
their short-term financial obligations. Therefore the current ratio is
increasing.
• As we know, the financial year 2020, banks have to face huge losses
due to the pandemic. The financial year 2021 was the year economy
 got back on track. Therefore, we can see an increase in deposits,
which resulted in an increase in the current ratio.

2022
• The liquid assets of the bank decreased. Therefore we can see that
the ratio is decreasing. A liquid asset is a crucial factor that affects
the current ratio. Hence a decline in the current ratio during this
period.
• Operating expenses of the bank increased during this period. Thus
leading to a decrease in the current ratio. Banks with high operating
expenses may have a lower current ratio because they have less cash
available to meet their short-term financial obligations.

NET PROFIT MARGIN

BOI
2021
• The current ratio of banks increased during this financial year. Bank
major consist of cash therefore, there is an increase in profit margin
this financial year.
• As we know, the financial year 2020, banks have to face huge losses
due to the pandemic. The financial year 2021 was the year economy
got back on track. Therefore, we can see an increase in deposits,
which resulted in an increase in the profit margin of bank.

2022
• During the financial year 2021-2022, the bank increased the
advances therefore; there is an increase in profit margin because
loans and advances are the primary source through which the bank
generates income.
• During the financial year 2021-2022, fixed and other assets
increased, and the fixed asset turnover ratio increased from 0.6 to
0.7. thus, this helping the increasing the profit margin of the bank.

BOB
2021
 • The current ratio of banks increased during this financial year. Bank
major consist of cash therefore, there is an increase in profit margin
this financial year
• As we know, the financial year 2020, banks have to face huge losses
due to the pandemic. The financial year 2021 was the year economy
got back on track. Therefore, we can see an increase in deposits,
which resulted in an increase in the profit margin of bank.
• Banks lend money to individuals and businesses, and their loans on
their books affect their profit margin. During the financial year
2020-2021, advances increased. Therefore there is a decrease in the
net profit margin because lending loan is the primary source through
which banks generate income as the advances increase, profit margin
also increase

2022
• Banks lend money to individuals and businesses, and their loans on
their books affect their profit margin. During the financial year
2021-2022, advances increased. Therefore there is a decrease in the
net profit margin because lending loan is the primary source through
which banks generate income as the advances increase, profit margin
also increase.
• Reserve and surplus increased.
• Investments are increasing during this financial year. Therefore, there
is a increase in the profit margin because it is comparatively less
risky option.

DEBT-EQUITY RATIO

BOI
2021

• As we know, in the financial year 2020, banks have to face huge losses
due to the pandemic. The financial year 2021 was the year economy got
back on track. As the demand for loans went up, the bank borrowed
money for advancing loans thus, there was an increase in the debt-equity
ratio.
2022
• During this period borrowings decreased and capital increased as a
result ratio decreased.

BOB

2021

• As we know, in the financial year 2020, banks have to face huge losses
due to the pandemic. The financial year 2021 was the year economy got
back on track. As the demand for loans went up, the bank borrowed
money for advancing loans thus, there was an increase in the debt-equity
ratio.

2022

• Ratio increased during the period because there was an increase in bank
borrowings but no equity increase. Thus, the ratio increased during the
period.

ROA

BOI

2021
• The level of capital adequacy of a bank can also impact its ROA. A
bank with a higher level of capital adequacy is better able to absorb
losses and maintain its profitability, resulting in a higher ROA. As
the capital adequacy ratio increased during this period, return on
assets also increased during the period. CAR increased from 13.1 to
14.93.
• The quality of a bank's assets, such as loans and investments, can
also impact its ROA. As there is a increase in investments, resulted in
increasing return on asset during the period.

2022
• The level of capital adequacy of a bank can also impact its ROA. A
bank with a higher level of capital adequacy is better able to absorb
 losses and maintain its profitability, resulting in a higher ROA. As
the capital adequacy ratio increased during this period, return on
assets also increased during the period. CAR increased from 14.93 to
17.04.
• The quality of a bank's assets, such as loans and investments, can
also impact its ROA. As there is a increase in advances, resulted in
increasing return on asset during the period.

BOB

2021
• The level of capital adequacy of a bank can also impact its ROA. A
bank with a higher level of capital adequacy is better able to absorb
losses and maintain its profitability, resulting in a higher ROA. As
the capital adequacy ratio increased during this period, return on
assets also increased during the period. CAR increased from 13.3 to
14.99.
• The quality of a bank's assets, such as loans and investments, can
also impact its ROA. As there is a increase in advances, resulted in
increasing return on asset during the period.

2022
• The level of capital adequacy of a bank can also impact its ROA. A
bank with a higher level of capital adequacy is better able to absorb
losses and maintain its profitability, resulting in a higher ROA. As
the capital adequacy ratio increased during this period, return on
assets also increased during the period. CAR increased from 14.99 to
15.84.
• The quality of a bank's assets, such as loans and investments, can also
impact its ROA. As there is a significant increase in advances as well as
in investments, that resulted in increasing return on asset during the
period.
ROE
BOI

2021
• As the net profit margin increase return on equity also increasing during
the period.

2022
• As the net profit margin increase return on equity also increasing during
the period.

BOB

2021
• As the net profit margin increase return on equity also increasing during
the period.

2022
• As the net profit margin increase return on equity also increasing during
the period.

COMPARATIVE ANALYSIS

• In terms of liquidity, Bank of India appears to be in a slightly better

position than Bank of Baroda, with a higher current ratio indicating
that it has more current assets to cover its current liabilities.
However, Bank of Baroda has a higher quick ratio, which suggests
that it has more liquid assets to meet its short-term obligations.
• Both banks appear to be relatively solvent, with debt-to-equity ratios
that are well below 100%. However, Bank of India has a slightly
higher debt-to-equity ratio than Bank of Baroda, which suggests that
it is relying slightly more on debt financing to fund its operations. In
terms of capital adequacy, both banks are above the minimum
regulatory requirement of 9%, with Bank of India having a slightly
higher capital adequacy ratio.
• Both banks appear to be generating profits from their operations, but
Bank of Baroda has a higher ROA and ROE than Bank of India,
suggesting that it is more efficient in generating profits from its
assets and equity.
• Overall, based on the above ratios, Bank of Baroda appears to be in
a slightly better financial position than Bank of India, with higher
liquidity, slightly higher solvency, and significantly higher profitability.
However, it is important to note that the financial health of a bank is
influenced by a wide range of factors, and a more comprehensive
analysis of both banks' financial statements and operations would be
required to draw more definitive conclusions.