e-ISSN: 2582-5208

International Research Journal of Modernization in Engineering Technology and Science

( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:05/Issue:04/April-2023 Impact Factor- 7.868 www.irjmets.com
AN ANALYTICAL STUDY ON FINANCIAL PERFORMANCE OF STATE BANK
OF INDIA (SBI) WITH SPECIAL REFERENCE TO COIMBATORE CITY
Ajay. V*1, Nandhini. D*2
*1,2B. com (Accounting and finance), Rathinam college of arts and science, Coimbatore Tamil Nadu , India.
ABSRACT
Finance may be defined as the arts and science of managing money. It includes financial service and financial
instrument. Finance also is referred as the provision of money at the time when it is needed. Finance function is
the procurement of funds and their effective utilization in business concerns. The concept of finance includes
capital, funds, money and amount. But each word is having unique meaning. Studying and understanding the
concept of finance become an important part of the business concern. Financial statement refers to such
statement which contains financial information about an enterprise. They report profitability and the financial
position of the business at the end of accounting period.
I. INTRODUCTION
Finance may be defined as the arts and science of managing money. It includes financial service and financial
instrument. Finance also is referred as the provision of money at the time when it is needed. Finance function is
the procurement of funds and their effective utilization in business concerns. The concept of finance includes
capital, funds, money and amount. But each word is having unique meaning. Studying and understanding the
concept of finance become an important part of the business concern. Financial statement refers to such
statement which contains financial information about an enterprise. They report profitability and the financial
position of the business at the end of accounting period. The banking sector is the life blood of any modern
economy. It is one of the important financial basements of the financial sector, which plays a vital role in the
functioning of an economy. They role of mobilization of deposits and disbursement of credit to various sector of
banking industry. This will also reflect health of the country.
II. REVIEW OF LITERATURE
A literature review or narrative review is a type of review article. A literature review is a scholarly paper,
which includes the current knowledge including substantive findings, as well as theoretical and methodological
contributions to a particular topic. Literature reviews are secondary sources and do not report new or
original experimental work. Most often associated with academic journals, and are not be confused with book
reviews that may also appear in the same publication. Literature reviews are a basis for research in nearly
every academic field. The main types of literature reviews are evaluative, exploratory and instrumental.
PATEL BHAVESHKUMAR K (2020), study the Financial performance of SBI bank, this study is based on
secondary data that has been collected from annual reports of the SBI bank, books, newspapers, magazines,
journals, documents, research papers, websites and other published information. . It is major part of total
banking system in India. SBI is the
India’s largest commercial bank in terms of assets, deposits and employees. This study main objective is to
find out the profitability, liquidity ratios and solvency ratios to measure the financial health of SBI bank.
Chandan Kumar &Srijit Mishra (2019) made an attempt to measure and understand financial inclusion by
looking At supply of (banking outreach indicators such as number of deposit and credit accounts, number of
bank Branches, average deposit and credit amount per account and credit utilized) and demand for (indicators
of Household level access such as the proportion of households having saving, credit and insurance facilities
From formal as also informal sources) financial services.
III. STATEMENT OF PROBLEM
The competition is expected to increase in the banking sector with consolidation of PSBs and scaling up of
private banks like HDFC Bank and ICICI Bank. Five years ago, the SBI had a big lead in terms of total assets as
other banks were too small and the PSB space was fragmented. But the banking landscape has changed big time
in the last three years. The HDFC Bank has emerged as the second largest bank in terms of total assets. In

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 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:05/Issue:04/April-2023 Impact Factor- 7.868 www.irjmets.com
2019-20, the private sector bank has grown its balance sheet by 23 per cent to Rs 15 lakh crore whereas SBI
grew its balance sheet by only 8 per cent to Rs 39 lakh crore.
IV. SIGNIFICANCE OF THE STUDY
As a result of the new economic policy, foreign banks are entering into the banking sector hence the
competition in the sector is increasing rapidly. So proper study is required to increase the profitability and
growth of the bank. The bank should be able to provide more facilities and services to customers. Financial
statement analysis provides valuable information for managerial decisions. The present study aims to analyze
whether the financial performance of State Bank of India bank is satisfactory or not. When analyzed over
several accounting periods, the balance sheet may assist in identifying underlying trends in the financial
position of the bank.
Scope Of Study-
The study was carried at SBI bank to analyze the financial performance of the past 5 years. The data are
collected from the previous 5 years audit book, profit and Loss account and balance sheet. The study aims to
analyze the liquidity, profitability, solvency position of the bank. The project is conducted in order to know the
functioning of the bank. It will help in determining the negative and positive of the business. The study will also
help the future growth and decision making of the bank.
V. OBJECTIVES
• To evaluate working capital position of SBI bank
• To analyze liquidity, solvency profitability position
• To study and compare the financial performance of SBI bank
• To find out the recent trend through the analysis of SBI bank
• To suggest the measures of an bank for future development
VI. STUDY METHODOLOGY
Nature Of Study-The nature of study is analytical
Source Of Data -The secondary data published from the bank is used for the collection of information required
for the report.
Nature Of Data-The present study is primarily based on secondary data. Apart from the primary data is
collected through instructed interview with the manager of the bank. The major source of data that was
collected through the profit and loss account and balance sheet for period of 5 years and other published
sources.
VII. TOOL FOR ANALYSIS
Ratio analysis is a main tool used for analyzing the working capital, liquidity, solvency and profitability of the
company. Comparative balance sheet is also used as a tool. Mainly three types of ratios are used liquidity ratio,
solvency ratio and profitability ratio.
Limitations
• The main limitations of the study would be that is financial of a bank
• All the secondary data complications are applicable for the study
• The study have been done on the financial performance of SBI bank there is a scope to know the
performance of a bank

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 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:05/Issue:04/April-2023 Impact Factor- 7.868 www.irjmets.com
VIII. ANALYSIS AND INTERPRETATION
STATE BANK OF INDIA (in Rs. Cr.) Mar-22 Mar-21 Mar-20 Mar-19 Mar-18
12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 892.46 892.46 892.46 892.46 892.46

TOTAL SHARE CAPITAL 892.46 892.46 892.46 892.46 892.46

Revaluation Reserve 23,377.87 23,577.35 23,762.67 24,653.94 24,847.99

Reserves and Surplus 255,817.73 229,405.38 207,352.30 195,367.42 193,388.12

Total Reserves and Surplus 279,195.60 252,982.73 231,114.97 220,021.36 218,236.10

TOTAL SHAREHOLDERS FUNDS 280,088.06 253,875.19 232,007.43 220,913.82 219,128.56

Deposits 4,051,534.12 3,681,277.08 3,241,620.73 2,911,386.01 2,706,343.29

Borrowings 426,043.38 417,297.70 314,655.65 403,017.12 362,142.07

Other Liabilities and Provisions 229,931.84 181,979.66 163,110.10 145,597.30 167,138.08

TOTAL CAPITAL AND 4,987,597.41 4,534,429.63 3,951,393.92 3,680,914.25 3,454,752.00

LIABILITIES
ASSETS

Cash and Balances with Reserve

Bank of India 257,859.21 213,201.54 166,735.78 176,932.42 150,397.18

Balances with Banks Money at Call

and Short Notice
136,693.11 129,837.17 84,361.23 45,557.69 41,501.46
Investments 1,481,445.47 1,351,705.21 1,046,954.52 967,021.95 1,060,986.72

Advances 2,733,966.59 2,449,497.79 2,325,289.56 2,185,876.92 1,934,880.19

Fixed Assets 37,708.16 38,419.24 38,439.28 39,197.57 39,992.25

Other Assets 339,924.86 351,768.68 289,613.55 266,327.70 226,994.20

TOTAL ASSETS 4,987,597.41 4,534,429.63 3,951,393.92 3,680,914.25 3,454,752.00

IX. OVERVIEW
State Bank of India (SBI) a Fortune 500 company, is an Indian Multinational, Public Sector Banking and
Financial services statutory body headquartered in Mumbai. The rich heritage and legacy of over 200 years,
accredits SBI as the most trusted Bank by Indians through generations.

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[4651]
 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:05/Issue:04/April-2023 Impact Factor- 7.868 www.irjmets.com
X. CONCLUSION
The State Bank of India has made significant strides in the right direction. It has made remarkable progress in
expanding banking facilities in rural and semi-urban areas, as well as providing financial assistance to
agriculture, cooperative institutions, and small-scale industries.
XI. REFERENCE
[1] V Naseer Abdul (2014) Financial Performance and Employee Efficiency: Comparative Study of Indian
Banks, Indian Journal of Applied Research, Vol.4, Issue-5.
[2] Dr. Tamilarasu A (2014) Role of Banking Sector on Financial Inclusion Development in India – An
Analysis, Galaxy Interdisciplinary Research Journal, Vol-2 (2)

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