Liquidity Ratios:-

INDIAN OVERSEAS BANK

Ratio Demand Deposit to Term Deposit Formula Total Demand Deposit Total Term Deposit Short term Investments to Total Assets Cash to Demand Deposit Short term Investments /Total Assets Cash Balance/Demand Deposit SLR Investment / Total Investment 38,15,84,020 1,78,78,42,785 21% Numerator(in 000 s)
11,80,56,246

Denominator(in 000 s)
1,01,36,75,329

Value 12%

12,01,86,557

11,80,56,246

102%

SLR Investment To Total Investment

38,07,67,660

47,52,04, 028

80%

CANARA BANK
Ratio Demand Deposit to Term Deposit Short term Investments to Total Assets Cash to Demand Deposit SLR Investment To Total Investment Formula Total Demand Deposit Total Term Deposit Short term Investments /Total Assets Cash Balance/Demand Deposit SLR Investment / Total Investment Numerator(in 000 s)
24,49,99,859

Denominator(in 000 s) 2,10,85,55,599

Value 11.61%

71,38,76,938

3,36,07,87,577

21%

30,70,81,152

24,49,99,859

125%

71,14,92,562

83,20,85,207

86%

Comparision:If we compare Liquidity ratios of these two banks we can presume that Canara Bank s asset portfolio is comparatively more liquid than that of India Overseas Bank because Canara s cash balance as well as SLR investment s percentage is higher than that of Indian Overseas.

Ratios related to efficiency and income:-

INDIAN OVERSEAS BANK

Ratio Formula Numerator(in 000 s) 2,57,24,949 Denominator(in 000 s) 1,78,78,42,785 Value Operating Efficiency Operating Expenes/Total Assets Interst Expended/ Total borrowing +deposit Non interest earned income / total income 1.44%

Cost Of Fund

7,89,34,395

1,64,58,41,557

4.80%

Non interest earned income to total income

1,22,51,025

13,32,65,675

9.19%

CANARA BANK
Ratio Operating Efficiency Formula Operating Expenses/Total Assets Interst Expended/ Total borrowing +deposit Non interest earned income / total income Numerator(in 000 s) 4,41,93,156 Denominator(in 000 s) 1,64,58,41,557 Value 2.69%

Cost Of Fund

15,24,07,357

3,08,23,42,990

4.94%

Non interest earned income to total income

2,70,30,337

25,76,70,470

10.49%

Comparision: By looking towards these ratio we can assume that IOB is more efficient than Canara Bank as its operating expenses proportion is comparatively lesser than Canara of their respective total assets  IOB raises fund at cheaper rate than Canara Bank  Canara Bank have more avenues to earn income other than interest on loans than IOB

Profitability Ratio:-

INDIAN OVERSEAS BANK

Ratio Net Interest Margin Formula Interest EarnedInterest Expended/ Total Assets Net Profit/Total Assets Net Profit / total income Net Profit / Equity Fund Net Profit / No. of shares Market Price / EPS Numerator(in 000 s) 4,20,80,255 Denominator(in 000 s) 1,78,78,42,785 Value 2.35%

Return on Assets Profit Margin Return on Equity Earning Per Share P E Ratio

1,07,25,427 1,07,25,427 1,07,25,427 1,07,25,427 109.05

1,78,78,42,785 13,32,65,675 4,12,00,506 61,87,49,343 (In nos) 17.33

0.60% 8.05% 26.03% 17.33 6.29

CANARA BANK
Ratio Net Interest Margin Formula Interest EarnedInterest Expended/ Total Assets Net Profit/Total Assets Net Profit / total income Net Profit / Equity Fund Net Profit / No. of shares Net Profit / total income Numerator (in 000 s) 7,82,32,776 Denominator (in 000 s) 3,36,07,87,577 Value 2.33%

Return on Assets Profit Margin Return on Equity Earning Per Share P E Ratio

4,02,58,882 4,02,58,882 4,02,58,882 4,02,58,882 559.95

3,36,07,87,577 25,76,70,470 2,67,82,000 44,30,00,000 90.88

1.20% 15.62% 150.32% 90.88 6.16

Comparison:
 Although net interest margin of IOB is marginally higher than Canara Bank but Canara Bank gives by far higher returns to its equity shareholders.  Earning per share also is about 5 times more of Canara Bank than IOB