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Karnataka Bank Ltd.

By, Lokesh .H

Company Profile
Karnataka bank limited a leading A1+ class scheduled commercial bank in India was incorporated on February 18th 1924 with a registered office at Mangalore. The bank commenced its business on 23rd may 1924 with an initial paid up capital of Rs.11.580 contributed by 113 share holders. Sri .B.R. Vyasaraya Achar was the first president of the bank. The banks memorandum of association in its objective clause states that the bank apart from carrying on the general function of banking business, would set apart and appropriate from the annual net profit towards the general, mental, moral and physical advancement of other beneficial purpose of the members of the Dravidian Brahmin community, such same as may be deemed fit. The first real recognition for the Mangalore based bank come in the year 1959 with the bank being elevated firm C class to B class. In the stride of progress of expansion, the bank got reinforced by the takeover of 3 banks namely Shringeri Sharada bank ltd an 1st April 1960, Chitradurga bank ltd on December 30 1966., In year 1971 the bank opened its first branch in the countrys financial capital the following year the bank was elevated to A class by the Reserve Bank of India.

Nature of the business carried


In the words of late shri T.A Pai some people believe that banking means money lending that a banker is not but a glorified money lender. But banking is not money lending as money lender does not take the risk where as the banker does bank is into pooling to gather the savings of the community scattered all over and from the very some pool granting loans to the needy in the society. Thus it acts as a link between the savers and the needy. Thus the two main products of the bank are deposits and loans.

Vision Mission and Quality Policy


Vision Statement: Bank believes in total quality at all levels bank are aiming at a total value package one shop for all banking needs. Bank value the opportunity of building a relationship, developing an understanding of changing financial needs at a different stage of life. Bank customer centric focus has enabled the bank to change with time offering quality products though can variant items. Bank motto is to serve the customers with high standard of professionalism with a

personal touch on trust. Mission Statement: Karnataka Banks mission is to be a technological survey, customer centric progressive bank with a national presence driven by the higher standard of corporate governance and guided by sound ethical values. Towards achievement of this, the Bank is committed to the best practice s in corporate governance to protect the interest of share holders, depositors Quality policy: The quality policy of Karnataka bank limited is of providing quick and better service and their by achieving customer satisfaction.

Products/Services Profile

LOANS OR SCHEMES PRODUCT KBL APNA GHAR KBL VARTHAK LOAN KBL UDYOG MITHRA KBL CAR FINANCE VIDYA NIDHI EDUCATIONAL LOAN SCHEME KBL - KRISHIK SARATHI SCHEME DEPOSITS PRODUCTS ABHYUDYA CASH CERFIFICATE FIXED DEPOSITS READY MONEY DEPOSITS INSURANCE LINKED SAVINGS BANK DEPOSIT K-FLEXI DEPOSIT RESIDENT FOREIGN CURRENCY(DOMESTIC) ACCOUNT NRI SERVICES

Area of Operation

The Bank at present has 478 Branches, 267 ATM outlets, 9 Regional Offices, 6 Extension counters, 1 International Division, I Data centre, I customer care centre, 5 service branches, 2 currency chests, 2 central processing centers, spread across 20 states and 2 Union Territories. Further, for better ambience and improved customer service, they shifted 11 branches/offices to new premises, during the year 2010-11.

All the banks in India are competition for the bank.

Some of the major competitions for the bank are : City Union Bank Ltd. Karur Vysya Bank Ltd. The South Indian Bank Ltd. The Vysya Bank Ltd.

Awards/Achievements
The Karnataka Bank Ltd. As awarded recently from the

RBI. For maximum usage of the information and technology in the banking business.
The Governor of the RBI, Mr. Subba Rao present the

Award to the Sri P. Jayarama Bhat (Managing Director), for the efficient usage of the financial softwares in the banking business.

Future Growth Prospective


Growth of information technology in banking industry has given competitiveness and opened up new opportunities to the banks. Adoption of care banking solution finance in 2,000 envisaging any time any where banking. And networking of 500 branches, offices up to March 2011 have enabled your bank in offering customer centric value added products and services like Multi -Branch Banking (MBB) Flexi - Term Deposit, ATM Card linked Credit facility bills etc. The bank is planning to enable money click as a payment gate way for shopping that conversant areas of business like hotel booking ticket booking, purchase of goods etc the bank is also planning to introduce mobile top up through ATMs and internet banking. Further bank is also planning to tie up for online trading in shares.

MCKENSYS 7-S FRAME WORK MODEL


Structure:

Structure at branch level The Karnataka Bank has totally 478 branches on 31st march 2011. each branch is headed by a branch manager who has the responsibility of overall administration of his or her branch. Structure of regional office level The Karnataka Bank has eight regional offices spread across the country. Each regional office is headed by an assistant manager. The regional officers are responsible for controlling the branches coming under them and also for implementation of decision taken at the head office of the bank is divided into different deportments with each deportment headed by its respective departmental head who are responsible for the overall administration of their deportment and also to carry out various activities coming under their departments by taking the help of executive officers and staff of their deportments. The organization structure of the Karnataka Bank has been shown in the chart below the board of directors occupy the two most position followed by the chairman who is next in the hierarchy in the next level of organizational structure there are DGM human relations and industrial relations general manager, planning and development, GM credit. GM credit treasury GM recovery legal and GMD, and DGM inspection and audit. Board of Directors: The Board of Directors of the bank consist and of 12 directors including the chairman who is the Chief Executive Officer. The Constitution of the board confirms with the provisions of section lOB of the Banking Regulation Act, 1947. All the directors on the board are independent Directors.

System
System means formal and informal procedures that govern every day activities. The decision making systems within the organization can range from management institutions to structured computer that govern the everyday activities of the bank. The system of the Karnataka Bank includes Computer System Training System Control System
Computer system: Karnataka Bank has the first bank to realize the importance of centralized banking system and was the first to deploy core banking system a part from this the bank has computerized all activities and branches so to provide quick service to its customer.

Staff:
Table showing the total staff position as
Officers Clerks Sub staff Total

At the end of the year Recruited during the year

2138

2546

1050

5795

137

264

159

551

The Karnataka Bank has well trained developed and skilled staffs who work very hard for the success of the bank. The number of people employed by the bank stood at 5795 as on 31st march 2011. The business per employee has improved from Rs 7.27crores as on 31st march 2010 to Rs.7.71crores as on 31st march 2011. the bank during the 2010-2011 requited 137 new officers ,264 creaks and 159 sub staff.

Style
The MC Kinsey s framework considers style as move than the style of top management.
Karnataka Bank Ltd follows a top to down style of management. It also works in a participative style. The dictions are taken by the top management concerning matters related to the organization. The decisions relating to development matter are taken by the detail heads the bank follows a democratic leadership style which allows the employee to take part in the decision making process. Employees are free to give any ideas, Suggestions etc, for the betterment of the organization. This will be taken with active consultation with the employees.

Shared values
Shared values refer to the guiding concepts, values and

aspirations that unite on organization in same common purpose. They guide employees of any organization towards valued behaviors. Shared values originally called as super ordinate goals. It is the guiding concepts and principles of the organization values and aspirations The Karnataka Bank goes for the following values 1. customer satisfaction 2. quick and better service 3. loyal to the customers 4. honest in work

Skill
Skills refer to the fact that employees have the assets of the organization. Skills of the employees may be improved by giving necessary training to them. The bank believes the skillful employees contribute to the success of the bank. The bank H R D policy a guided by the Chinese proverb if you are planning for one year, grow rice of you are planning for twenty years plant trees. If u are planning for centuries, develop men, during the year 2010-11, 1599 officers,942 clerks and 90 sub staff were given training under various aspects to update improve the knowledge the officers of the bank are also accepted at banker training college Mumbai, nation teal institute of bank management Pune institute of development and research in banking technology, Hyderabad when ever specialized training was toned necessary.

Strategy:
Strategy means action a company plans in response to or in anticipation of challenges in the external environment. The Karnataka bank in order to respond to the changes has formed the following action plan with specific reference to product, pricing and people Action plans on product: 1. Introduction of internet banking. 2. expansion of bank on ATM network 3. introduction of debit cords 4. Retailing in securities. Action plans on pricing: Increasing emphasis on fee based, commission based activities collection of utility bills and other fee based services like mutual fund distribution which the bank to be more competitive.
The bank plan to train employees on marketing of products like schematic loans, insurance, money transfer etc. The bank has decided to give incentives to employees for group performance.

The successful implementation of their strategies or action plans helps the bank to gain competitive advantage ver the other banks

SWOT ANALYSIS
STRENGTHS Highly educated workforce The factors that have contributed to the success of the bank are its workforce because the bank has highly educated workforce. Young and Energetic employees within the age group of 25-45 this helps the junior employees to learn from the experience of the senior employees. Advanced technology The bank is professionally managed. The bank is one of the few banks in India which gives impotence to technology in order to serve its customers better it is one of the few banks which uses financial softwares. 1. The banks strengths lie in management capabilities, focused strategy, speedy decision making. 2. There has been expansion of branches and ATM services by the bank during the last few years. 3. The banks provides good infrastructural facilities to its staff and help their to concentrate more on their job. 4. The bank has introduced various schemes like western union money transfer.

WEAKNESS
The weaknesses of the bank includes that the bank has majority of the branches in the southern region. II. Delay in follow up on various accounts. III. KBL provided loans on lots of conditions: Lengthy procedure of sanctioning of debts.
I.

OPPORTUNITIES
The bank is planning to enable money click as

payment gateway for shopping that covers vast areas of business like hotel booking ticket booking, purchase of goods etc. The bank is also planning to introduce mobile topup through ATMs and internet banking besides continuing value additions like SMS alerts to nonmoney click customers utility bill payment and air ticket booking through ATMs . Farther bank is also planning to tie up for ensure trading in shares. The bank is planning to increase the number of its ATM to 325 by 31-3-2011.

THREATS
As the bank majority business comes from the south any

effect to the economy here would have an adverse effect to the performance of the bank. Stiff competition: The bank is relatively smaller when compared to other banks like SBI and ICICI bank and some others. Since its weights like SBI and corporation bank. The bank is always under treat of being taken over by other banks. Providing license for departments such as LIC and India Post.

Research Methodology
STATEMENT OF THE PROBLEM:

OBJECTIVES OF THE STUDY:


To study the efficiency of Karnataka Bank Limited.
To know how the NPA level affect the financial

performance of Bank. LIMITATIONS OF THE STUDY The study is limited to the extent to the data given by KBL.. An in depth study cannot be done because of time constraint. Based on the limited information it is not possible to arrive at proper conclusion

RESEARCH DESIGN
It involves finding out best tool, process and procedure for getting financial information required for the project work A study on financial performance of Karnataka Bank Limited. The type of research used for the collection & analysis of the data is Historical Research Method. The main source of data for this study is the past records prepared by the bank. The focus of the study is to determine the non-performing assets of the bank s & to identify the ways in which the performance especially the non-performing assets of the KBL can be improved

SOURCES OF DATA COLLECTION: Primary data:

Primary data was collected from the branch manager through discussions in branch of KBL( B.H.ROAD)

Secondary data: Company website Company report Management report Journals Financial statements

ANALYSIS & INTERPRETATION OF DATA

The balance sheet and other relevant data, which was published in the 2006-2007,2007-2008,20082009,2009-2010 and 2010-2011 annual reports were collected and studied. An attempt has been made to analyze the data of KBL keeping in view of the limitation. Guidance was taken from the officials of the banks to analyze the financial performance i.e. profitability, productivity, efficiency and to analyze how the level of Non-Performing Assets affects the performance of the bank.

1. Capital Adequacy Ratio


2006YEAR 2007 % 11.03 20072008 12.17 20082009 13.48 20092010 12.37 20102011 13.33
Capital Adequacy Ratio
16 14 12 10 8 6 4 2 0 Capital Adequacy Ratio

Interpretation: The graph shows that the Capital Adequacy Ratio has been fluctuating over the past 5 years i.e. 11.03%.,12.17%,13.48%, 12.37% and 13.33% for years 2006-07,2007-08,02008-09,2009-10 and 2010-11 respectively for 5 years.

2. Loans & Advances TO Total Asset:


=Loans & Advances/Total Asset*100
YEAR Loans & Advances Total Asset
%
60 58 56 54 52 50 48 2006-07 2007-08 2008-09 2009-10 2010-11

2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 9552067 10841.97 11810.04 14435.68 17348.07 16222.52
58.88

19339.82
56.06

22857.81 51.66

27035.16
53.39

31693.01
54.47

Loans & Advances To Total Assets

Loans & Advances To Total Assets

Interpretation:
The loans and Advances to Total assets has been 58.88% in 2006-07, after that decreasing to 56.06% in 2007-08, 51.66% in 2008-09; 23.39% in 200910 and increase to 54.47% in 2010-11. This shows that bank is unsuccessful in bringing the level of Loans and advances to Total assets which becomes nonperforming assets year by year which in turn would affect the profitability of the bank.

3. Return on Net Worth:


=Profit/ Net Worth*100
YEAR Profit 2006-2007 177.03 2007-2008 241.74 2008-2009 266.70 2009-2010 167.12 2010-2011 204.61

Net Worth
%

1238.62
14.29

1379.60
17.52

1567.02
17.01

1832.75
9.11

2429.09
8.42

Return On Net Worth


1.5 1 0.5 0 2006-07 2007-08 2008-09 2009-10 2010-11 Return On Total Assets

Interpretation: From the above it is clear that the return on Net worth is 14.23% for 2006-07, 17.52% for 2007-08, 17.01% for 2008-09, 9.11% for 2009-10 and 8.42% for 2010-11. It can be analysed that the return on net worth increased to a little extent and then in the 2009 financial year the return on net worth has come down to a greater extent.

4. Total Debt Ratio:


=Total debt/ Total Asset*100
YEAR Total debt
Total Asset

2006-2007 14458.18
16222.52 0.89

2007-2008 17158.39
19339.82 0.88

2008-2009 20337.26
22857.81 0.88

2009-2010 24072.29
27035.16 0.89

2010-2011 28422.78
31693.01 0.89

%
0.895 0.89 0.885 0.88 0.875 2006-07

Total Debt Ratio

Percantage

2007-08

2008-09

2009-10

2010-11

Interpretation: The above table shows the Total Debt ratio of the bank which has 0.89% in 2006-07 to 0.88% in 2007-08 and again same in 0.88% in 2008-09, then onwards increase to 0.89% and 0.89% in 2009-10 and 2010-11 respectively.

5. Deposits per Employee:


=Total Deposits/Total Employee
YEAR Total Deposits Total Employee Rs 2006-2007 14037.44 4667 3.15 2007-2008 17016.11 4677 3.63 2008-2009 2033.28 4947 4.11 2009-2010 23730.64 5244 4.52 2010-2011 27336.44 5795 4.71

Deposits Per Employee


5 4 3 2 1 0 2006-07 2007-08 2008-09 2009-10 2010-11

Crores(Rs.)

Interpretation: The Deposits per Employee has been at Rs.3.15 in 2006-07, after that increasing to Rs.3.63 in 2007-08, Rs.4.11 in 2008-09; Rs.4.52 in 2009-10 and Rs 4.71 in 2010-11.

6. Deposit per Branch:


=Total Deposits/No of Branch
YEAR Total Deposits No of Branch Rs 2006-2007 14037.44 410 34.23 2007-2008 17016.11 431 39.48 2008-2009 2033.28 447 45.48 2009-2010 23730.64 464 51.14 2010-2011 27336.44 478 57.18

Deposit Per Branch


80 60 40 20 0 2006-07 2007-08 2008-09 2009-10 2010-11 Crores(Rs.)

Interpretation: The above graph shows that Deposit per Branch was at Rs 34.23 and slightly increase to Rs.39.48 and then increasing at a higher rate over 3 years i.e. Rs.45.48 in 2008-09, Rs.51.14 in 2009-10 and Rs.57.18 in 201011.

7. Asset Utilization:
= Total Income/ Total Asset*100
YEAR Total Income Total Asset % 2006-2007 1430.52 16222.52 8.81 2007-2008 1797.89 19339.82 9.29 2008-2009 2270.55 22857.81 9.93 2009-2010 2354.68 27035.16 8.70 2010-2011 2662.60 31693.01 8.40

Asset Utilization
10.5 10 9.5 9 8.5 8 7.5
2006-07 2007-08 2008-09 2009-10 2010-11

Percentage

Interpretation: The above graph shows that Assets Utilization was 8.81% in 200607, then increases to 9.29% in 2007-08, 9.93% in 2008-09, 8.70% in 2009-10 and 8.40% in 2010-11. .

8. Earning Per Share:


= Profits/No of Equity Shares*100
YEAR Profit No of Equity Shares % 2006-2007 177.03 121262417 14.59 2007-2008 241.74 121343548 19.92 2008-2009 266.70 121444753 21.96 2009-2010 167.12 123779973 13.50 2010-2011 204.61 134345980 15.20

Earning Per Share


25 20 15 10 5 0 2006-07 2007-08 2008-09 2009-10 2010-11 Percentage

Interpretation: From the above it shows thatthe Earning per Share are 14.59% for 2006-07, 19.92% for 2007-08, 21.96% for 2008-09, 13.50% for 2009-10 and 15.20% for 2010-11.

9. Profit per Employee:


= Profits/No of Employee*100
YEAR Profit(in crores) No of Employee Rs in LAKHS 2006-2007 177.03 4456 3.97 2007-2008 241.74 4677 5.16 2008-2009 266.70 4947 5.39 2009-2010 167.12 5244 3.1 2010-2011 204.61 5795 3.5

Profit per Employee


6 4 2 0 2006-07 2007-08 2008-09 2009-10 2010-11 LAKHS

Interpretation: The above graph shows that the Profit per Employee was Rs.3.97 lakhs in 2006-07, then increases to Rs.5.16 lakhs in 2007-08, Rs.5.39 lakhs in 2008-09, Rs.3.10 lakhs in 2009-10 and Rs.3.50 lakhs in 2010-11.

10. Operating Profit Ratio:


=Operating Profit/Net Sales(BUSINESS) *100
YEAR Operating Profit Net Sales(BUSINESS) 2006-2007 356.59 9552.067 2007-2008 390.60 10841.97 2008-2009 480.21 11810.04 2009-2010 260.84 14435.68 2010-2011 355.29 17348.07

%
5 4 3 2 1 0 2006-07

3.73

3.60
Operating Profit Ratio

4.06

1.80

2.04

Percentage

2007-08

2008-09

2009-10

2010-11

Interpretation: From the above it is clear thatthe Operating profit ratio is 3.73% for 2006-07, 3.60% for 2007-08, 4.06% for 2008-09, 1.80% for 2009-10 and 2.04% for 2010-11. It can be analysed that the operating profit ratio had decreased to a little extent and then in the next financial year the profit percentage has come upward to a greater extent, and come down in 2010 and 2011.

11. Business per Employee:


=Business/No of Employee
YEAR Business No of Employee %
4 3 2 1 Crores(Rs.)

2006-2007 9552.067 4456

2007-2008 10841.97 4677

2008-2009 11810.04 4947

2009-2010 14435.68 5244

2010-2011 17348.07 5795

2.42

2.31

2.38

2.75

2.99

0
2006-07 2007-08 2008-09 2009-10 2010-11

Interpretation: The graph shows that the Business Per employees has been fluctuating over the past 5 years i.e. 2.42%., 2.31%, 2.38%, 2.75% and 2.99% for years 2006-07,2007-08,02008-09,2009-10 and 2010-11 respectively for 5 years.

12. Gross Profit Ratio:


= Gross Profit/ Sales(Business)*100
YEAR Gross Profit Business % 2006-2007 1430.52 9552.067 14.97 2007-2008 1797.89 10841.97 16.58 2008-2009 2270.55 11810.04 19.22 2009-2010 2354.68 14435.68 16.31 2010-2011 2660.60 17348.07 15.34

Gross Profit Ratio


25

20
15 10 5 0 2006-07 2007-08 2008-09 2009-10 2010-11 Gross Profit Ratio

Interpretation: The Gross Profit ratio has been at 14.97% in 2006-07, after that increasing to 16.58% in 2007-08, 19.22% in 2008-09; 16.31% in 2009-10 and 15.34% in 2010-11.

13. Borrowings To Total Working Fund:


= Borrowings/ Total Working Fund(TA OR TL)*100
YEAR Borrowings Working Fund(TA) % 2006-2007 420.73 16222.52 2.60 2007-2008 142.19 19339.82 0.73 2008-2009 3.97 22857.81 0.017 2009-2010 691.64 27035.16 2.55 2010-2011 1086.33 31693.01 3.42

Borrowings To Total Working Fund


4

3
2 1

Borrowings To Total Working Fund

0
2006-07 2007-08 2008-09 2009-10 2010-11

Interpretation:

14. Cash & Bank Balance to Total Working Fund:


= Cash & Bank Balance/ Total Working Fund*100
YEAR Cash & Bank Balance Working Fund(TA) % 2006-2007 826.82 2007-2008 1480.20 2008-2009 1364.98 2009-2010 1743.09 2010-2011 1939.80

16222.52 5.09

19339.82 7.66

22857.81 5.97

27035.16 6.44

31693.01 6.12

Cash & Bank Balance To Total Working Fund


10 5 0 2006-07 2007-08 2008-09 2009-10 2010-11 Cash & Bank Balance To Total Working Fund

Interpretation: The above graph shows that the Cash and bank balance to total working fund was 5.09% in 2006-07, then increases to 7.66% in 2007-08 and decreasing at a higher rate in the 3 years i.e. 5.97% in 2008-09, 6.44% in 2009-10 and 6.12% in 2010-11.

15. Interest Earned To Total Income:


= Interest Income/ Total Income*100
YEAR Interest Income Total Income % 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

1256.25
1430.52 87.81

1570.81
1797.89 87.36

1917.40
2270.55 84.44

2043.42
2354.68 86.78

2370.85
2662.61 89.04

Interest Earned To Total Income


90 88 86 84 82 2006-07 2007-08 2008-09 2009-10 2010-11 Interest Earned To Total Income

Interpretation: The above graph shows that the Interest Earned to Total Income was 87.81% in 2006-07, then decreases to 87.36% in 2007-08, 84.44% in 2008-09, 86.78% in 2009-10 and Increase to89.04% in 2010-11.

16. Interest Expenses To Total Deposit:


=Interest Expenses/Total Deposit*100
YEAR Interest Expenses Total Deposits % 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

836.39
14037.44 5.95

1101.71
17016.11 6.47

1443.83
2033.28 7.10

1707379
23730.64 7.19

1758.36
27336.44 6.43

Interest Expenses To Total Deposit


8 6 4 2 0 2006-07 2007-08 2008-09 2009-10 2010-11 Interest Expenses To Total Deposit

Interpretation: The above graph shows that the Interest Expenses to Total Deposit is 5.95% in 2006-07 and slightly increase to 6.47% in 2007-08 and then increasing when compared to the increase to 7.10% in 2008-09, 7.19% in 2009-10 and again decrease 6.43% in 2010-11.

17. Cash & Bank Balance to Total Deposit:


= Cash & Bank Balance/ Total Deposit*100
YEAR Cash & Bank Balance Total Deposits % 2006-2007 826.82 14037.44 5.89 2007-2008 1480.20 17016.11 8.70 2008-2009 1364.98 2033.28 6.71 2009-2010 1743.09 23730.64 7.34 2010-2011 1939.80 27336.44 7.09

Cash & Bank Balance To Total Deposit


10 8 6 4 2 0 2006-07 2007-08 2008-09 2009-10 2010-11 Cash & Bank Balance To Total Deposit

Interpretation: The Cash And Bank Balance to Total Deposit has been 5.89% in 200607 then increases to 8.70% in 2007-08, from here afterwards it decreases to 6.71%, 7.34% and 7.09%, 2008-09,2009-10, and 2010-11 respectively.

18. Interest Income to Total Loans & Advances:


= Interest Income/ Loans & Advances*100 YEAR Interest Income Loans & Advances %
20 15 10 5 0 2006-07 2007-08 2008-09 2009-10 2010-11

2006-2007 1256.25 9552.067 13.15

2007-2008 1570.81 10841.97 14.48

2008-2009 1917.40 11810.04 16.23

2009-2010 2043.42 14435.68 14.15

2010-2011 2370.85 17348.07 13.66

Interest Income To Total Loans & Advances

Interest Income To Total Loans & Advances

Interpretation: The above table shows the Interest Income to Total Loans And Advances which has been 13.15% in 2006-07, 14.48% in 2007-08 and again increases to 16.23% in 2008-09, then onwards decreases to 14.15% and 13.66% in 2009-10 and 2010-11 respectively.

19. Credit Deposit Ratio:


=Total Loans & Advances/ Total Deposits*100
YEAR Loans & Advances Total Deposits % 2006-2007 9552.067 14037.44 68.05 2007-2008 10841.97 17016.11 93.71 2008-2009 11810.04 2033.28 58.08 2009-2010 14435.68 23730.64 60.83 2010-2011 17348.07 27336.44 63.46

Credit Deposit Ratio


70 65 60 55 50 2006-07 2007-08 2008-09 2009-10 2010-11

Credit Deposit Ratio

Interpretation: The Credit Deposit ratio has been at 68.05% in 2006-07, after that increasing to 93.71% in 2007-08,and decreasing at a higher rate in the next 3 years i.e. 58.08% in 2008-09; 60.83% in 2009-10 and 63.46% in 2010-11.

20. Total Assets to Sales:


= Total Assets/ Sales (BUSINESS)
YEAR Total Asset Loans & Advances
%

2006-2007 16222.52 9552.067


1.69

2007-2008 19339.82 10841.97


1.78

2008-2009 22857.81 11810.04


1.93

2009-2010 27035.16 14435.68


1.87

2010-2011 31693.01 17348.07


1.82

Total Assets To Sales


2 1.8 1.6 1.4 2006-07 2007-08 2008-09 2009-10 2010-11

Total Assets To Sales

Interpretation: The above graph shows that the Total Assets to Sales was 1.69% in 2006-07, then increases to 1.78% in 2007-08 andis increasing at a higher rate 1.93% in 2008-09, 1.87% in 2009-10 and 1.82% in 2010-11.

21. Return on Total Assets:


=NET PROFITS/ Total Assets*100 YEAR 2006-2007 2007-2008 2008-2009 Profit 177.03 241.74 266.70 Total Asset 16222.52 19339.82 22857.81 2009-2010 167.12 27035.16 2010-2011 204.61 31693.01

%
1.4 1.2 1 0.8 0.6 0.4 0.2 0

1.09

1.24

1.16
Return On Total Assets

0.64

0.64

Return On Total Assets

2006-07

2007-08

2008-09

2009-10

2010-11

Interpretation: The above graph shows that Return on Total Assets is1.09% for 200607, 1.24% for 2007-08, 1.16% in 2008-09, 0.64% in 2009-10 and 0.64% for 201011.

Findings:
As the number of branches has increases, the assets of the bank have also increased. Credit deposit ratio is increasing comparatively.

Capital Adequacy ratio is been well maintained above 9% as per RBI rules.
Return on Net worth of the bank has come down from 14.2 (2006-07) to 8.4 (2010-2011). Total debt ratio has been consistently maintained well at the rate of 0.89. Deposits per branch have been increasing proportionately. Asset utilization has come down from 8.8 (2006-07) to 8.40 (2010-2011). Earnings per share have increased compared to the previous year. Even thought the total profits are fluctuating, the others incomes are

consistently increasing.

Suggestions & Recommendations

The bank should maintain the other incomes as there

are many technological changes happening like internet banking, Anywhere Anytime Anyhow, mobile banking. The bank should increase its efficiency in using its assets in order to increase the asset utilization ratio. The bank must increase its profits in order to increase the Returns on net worth.

Conclusion

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