CHAPTER NO – 1 INTRODUCTION The study “Financial analysis and performance” was conducted in order to know the financial status of the company. The scope of the study is to know the financial activities of the bank, its contribution of the financial activities within the bank. The field of financial analysis is compared of ratio analysis trend percentages, comparative statement and common size statement analysis. The study is made to analyze the financial performance with reference to financial statements like profit and loss account and balance sheet with the help of tables, graphs, ratios, providing suggestions for improving the methods and procedure followed in the bank. The main aim is to study the activities of finance department by utilizing the theoretical knowledge relating to practical situations and to highlight difference in practice. The procedure followed in A/c department in particular with regard to the appellation of theory in practice are situated. A critical review of the effectiveness of decision making process and suitable recommendations are also made.
After analyzing the financial statements it’s found that the overall financial position of the company is satisfactory and there is a suitable growth and improvement in the performance as a whole. To achieve more profits and maintain the standards, it’s recommended that the company should be given more importance to inventory management.
In an bank there will be a normal of activities carried on live marketing planning financiers etc., among all these finance plays a major role, which made me to study on this. Finance came to be studies as a part of economics before the turn of the present category formation of large sized undertaking by consolidating the smaller ones brought before the management the problem of financing to these enterprises. The study of potentiality of different securities as a source of procuring funds from outside world and the role and functions of institutional agencies continue to be emphasized during 1921. The problem of financing ensured a new dimension in the II world war. In 1940’s financial wizards continued to be concern with the necessity for choosing sells a financial structure as would be able to with stands stress and strains of the part was adjustments.
In 1960’s and 70’s period was marked by a very faithful and exciting era for a non of interactive developments. The financial manages started thinking on such important issues. As aggregate stock prices business sales etc.
The dimensions of business financial which was earlier limited to period but in recent years If broadened according to day to day operations.
MEANING OF FINANCIALS ANALYSIS One of the important step of accounting is the analysis (and interpretation) of the financial statements which results in the presentation of data the helps various categories of persons in forming opinion about the profitability and financial position of the business concern.
In the words of Myres “Financial of statement analysis is largely a study of relationship among the various financial factors in a business as disclosed by a single set of statement and a study of the trend of the factors as shown in a series of statements.
The most important objective of the analysis and interpretation of financial statements is to understand the significance and meaning of financial statement data to known the strength and weakness of a business undertaking.
So that a forecast may be made of the prospects of that undertaking.
FINANCIAL STATEMENTS
A financial statement is an organized collection of data according to logical and consistent according producers. Its purpose is to convey an understanding of some financial aspects of business firms. It way show a position at a moment of time as in the case of balance sheet, or may revel a series of activities over a given period of time as in the case of and income statement.
Therefore the term financial statement generally refers to two basic statements, such as income statement and balance sheet. Apart from these two statement, such as income statement and balance sheet. Apart from these two statements, a bank may also prepare a statement of retained earning and statement of changes in Financial Position.
OBJECTIVES OR USES OF FINANCIAL ANALYSIS Financial analysis is helpful in assessing financial position and profitability of a concern. The following are the main objectives of analysis of financial statements. To judge the present and future earning capacity or profitability of the concern. To judge the operational efficiency as a whole and of its various part or departments. To judge the short term and long term solvency of the concern for the benefit of the debenture holders and trade creaditors. To have comparative study in regard to one department with another departments.
To help in assessing developments in the future by making forecasting and preparing budgets.
PROCESS OF FINANCIAL ANALYSIS The analysis of financial statements is a process of evaluating the relationship between components of financial statements to obtain a better understanding of the firms position and performance. The functional analysis is the process of selection, relation and evaluations. The first task of the financial analysis is to select the information relevant to the decision under consideration from the total information contained in the financial statement. The second step is to arrange the information in a highlights significant relationship. The final step is interpretation and drawing of inference and conclusions.
TYPES OF FINANCIAL ANALYSIS
On the basis of Material used
Internal Analysis
External Analysis
On the basis of Modus Operandi
Horizontal Analysis
Vertical Analysis
1. On the basis of material an used a)
External Analysis : Those persons who are not connected with enterprises make
it. They do not have access to the enterprises. They do not have access to the detailed record of the company and have to depend mostly on published statements, investors, credit agencies, Governmental agencies and research scholars make such type of analysis.
b)
Internal Analysis : The internal analysis is made by those persons who have
access to the books of accounts. They are members of the organization. Analysis of financial statements or other financial data for managerial purpose is the internal type of analysis. The internal analyst can give more reliable result than the external analyst because every type of information is at his disposal.
2. On the basis of modus operandi :
a)
Horizontal analysis : In case of this type of analysis financial statements for
number of years are reviewed and analyzed. The current years figures are compared with the standard or base year. The analysis statement usually contains figures for two or more years and the changes are shown regarding each item from the percentage. Since the type of analysis is based on the data from year to year rather than on one date, its also termed as Dynamic analysis.
b)
Vertical analysis : In case of this type of analysis a study is made of the
quantitative relationship of the various items in the financial statement on a particular date. Such an analysis is useful in comparing the performance of several
banks in the same group,
or divisions or departments in the same company. Its also termed as static analysis.
TECHNIQUES OF FINANCIAL ANALYSIS The analysis and interpretation of financial statements is used to determine the financial position and operations as well. A number of
techniques are used to study the relationship between different statements. The following methods of analysis are used.
FINANCIAL ANALYSIS TECHNIQUES
Comparative Financial Statement
Comparative Income Statement
Common Size Financial Statement
Trend - %
Funds flow Analysis
Cash Flow analysis
Ratio Analysis
Comparative B/s
1. Comparative Financial Statements The comparative financial statements are the statements of the financial position at different periods of time. The elements of financial position are shown in a comparative form so as to give an idea of financial position at two or more periods.
Thus, in these statements, figures for two or more periods are placed side by side to facilities easy comparison both the income statements and B/S can be prepared in the form of comparative financial statements.
a)
Comparative income statements The income statements discloses net profit or net loss or
account of operations. A comparative income statement will show the absolute figure for two or more periods, the absolute change from one period to another and if desired the change in terms of percentages, since the figure for two or more periods are shown side by side with the help of this we can quickly ascertain whether sales have increased or decreased, whether cost of sales have increased or decreased etc., therefore only a glance of data incorporated in this statement will be helpful in making useful conclusions.
b)
Comparative balance sheet : B/s of two or more different dates can be used for comparing
assets and liabilities and finding out any increase or decreased in those items. Therefore in a single balance sheet the emphasis is on present position, it’s on change in the comparative balance sheet. This type of B/s is very helpful in studying the trends in a business concern.
2. Common size financial statements : Common size financial statements are those in which figures reported are converted into percentages to some common base. When this method is pursued the income statement exhibits each expense item or group of expense items as a percentages of net sales, and net sales are taken at 100 percent. Similarly each individual asset and liabilities classification is shown as a percentage of total assets and liabilities respectively statements prepared in this way are referred to as common size statements.
3. Trend percentages : Trend percentages are very much helpful in making a comparative study of the financial statements for several years. The way calculating trend % involves the calculation of % relationship that each item bears to the same item in the base years. Each item of the base year is taken as 100 and on that basis the %’s for each of the years are calculated. These percentages can be taken as index number of showing the relative changes in the financial data resulting with the passage of time. This method is a very much useful, analytical device for management since by substitution of percentages for large amounts, brevity and readability are achieved.
4. Funds flow statements Funds flow statement is a financial statements, which indicates the various means by which the funds have been obtained during the certain period and the ways to which these funds have used during the period.
In short, it’s the statement, which shows the movement of funds b/w two balance sheet dates.
According to Anthony “the funds flow statements described the sources from which additional funds were derived and the uses to which these funds were put.
The funds flow statements is called by different names, such as, statements of sources and applications of funds, statement of changes in working cap where got and statement and statements of resources provided and applied.
5. Cash flow statements Cash flow statements shows the movement of cash and their causes during the period under consideration. It may be prepared annually half yearly monthly weekly or for any other duration.
Cash flow statement is prepared to show the impact of financial policies and procedures on the cash position of the firm and takes into consideration all transactions that have a direct impact upon cash.
A cash flow statements concentrates on transactions that have direct impact on cash. It deals with the inflow and out flow of cash between two balance sheet dates. In other words, a statement of changes in a financial position of a firm on cash basis is called a cash flow statement.
CHAPTER – 2 RESEARCH DESIGN
“A Research design is the arrangement of conditions for collection and analysis of data in a Manuel that aims to combine relevance to there search purpose with economy in procedure”. -
Eleure setting and others
The followings re the various steps in the research design : 1) The collection of information to understand the competitions in this line of activity. 2) Inter action with managers to understand the means of financial analysis. 3) Decision regarding the financial analysis. 4) Collection of company financial statement details 5) Analysis of major components of financial statements 6) Forwarding certain recommendations and conclusions to the company.
TITLE OF THE STUDY “A STUDY ON FINANCIAL AND PERFORMANCE ANALYSIS OF AIRTEL”
OBJECTIVES OF THE STUDY
1)
To study the pattern and procedure followed regarding financial analysis and performance in Airtel
2)
To analyze the performance of airtel during three years.
3)
To study the existing financial position
4)
To make a critical review of the effectiveness of decision making process and make suitable recommendations.
5)
To provide managers with reports to help them control over financial activities.
SCOPE OF THE STUDY The study is confined to the limits of airtel only. It also covers the various financial statements such as balance sheet, profit / loss account income statement for 3 years.
REFERENCE PERIOD The period covered under this study is 3 financial years that is from 2005-2007
TOOLS FOR THE COLLECTION OF DATA Data required for the study is collected through published statements of annual account’s of Vijaya Bank such as profit and loss account and balance sheet, this supplemented by the information gathered during the discussion with the bank manager.
PLAN OF ANALYSIS The analysis has been made with the help of financial statements of the airtel company. From the financial statements the classification of assets and liabilities are made. The analysis is made separately on different assets and liabilities along with tables, graphs and interpretation for last 3 years i.e., from 2005-2007
OPERATIONAL DEFINITION OF CONCEPT Financial information is required for financial analysis, planning and decision.
1) Financial Statements : Balance sheet and profit and loss account are the basic instruments of an accounting system to communicate financial information to users.
2) Assets : Assets represent economic resources possessed by the firm. Fixed assets are used in Business for more than accounting period of one year, while current assets are converted into cash within an accounting period.
3) Liabilities :
Liabilities are amount payable by the firm liabilities payable within an accounting period are called liabilities and those payable after a year or so are called long term liabilities.
4) Revenues : Revenues are benefits which customers contribute to the firm in exchange for goods or services provided by the bank.
5) Expenses : The cost of the economic resources used in providing gods and services to the customers is called expenses.
6) Profits : Profit is the difference between revenue and expenses
7) Ratio Analysis : Ratio analysis is a process of identifying the financial strengths and weaknesses of the firm.
8) Working capital The fund required for the actual running of any business or unit. The purchase of new materials meeting the manufacturing selling and administrative expenses etc is termed as working capital.
9) Net worth Equity share capital preference share capital reserves and surplus less the intangible assets (including losses)
10)
Capital Employed Capital employed is equal to total of fixed and current assets as reduced by current liabilities.
LIMITATION OF THE STUDY Every effort has been made to make study complete and has exhaustive as possible. However the study in not free from certain limitations. 1)
As the time available is limited and the subject is vast, the study is confined only to the main financial statements.
2)
The study is only confined to airtel and the performance of other company is not analyzed with it.
3)
The study is limited to analysis of the financial statement for 3 years only.
4)
Some information is not collected as it is confidential.
CHAPTER -3 INDUSTRY PROFILE MEANING A banking company has been defined under section 5(1) (c) of the banking company regulation act of 1949, " any company which transacts the business of the banking in India". According to section 5(1) (b) of the same act defines the banking has " accepting for the purpose of lending or investment of deposits money from the public, repayable on demand or otherwise and withdrawal by cheques , drafts, orders or otherwise".
ROLE OF COMMERCIAL BANKS IN A MODREN ECONOMY Bank plays significant role in the economic development of the country, it can be seen from the following points. 1. Deposits mobilization : Banks play significant role in mobilizing
the savings of the people by initiating different deposit schemes by extending a network of branches through out the country. 2. Granting of credit : Banks credit is essential for financing trade,
commerce, industry, agriculture, and other productive activities, banks extend credit to all these fields in order to have economic development of the country.
3. Creation of credit: Commercial banks can increase or decrease
the money supply ij the country and inject elasticity in to the credit system thought their function of creation of money. 4. Channalise funds in to productive investment: Banks not only
lend funds but also ensure that funds are lend only for productive purposes by monitoring properly. 5. Provision of finance to the government : Bank provide short-
term funds by purchasing trustee bills and long term funds by subscribing government bonds provide finance to the government. 6. Protecting the funds of depositor : Banks providing safety to the
funds depositor by lending to different kinds of borrowers engaged in different activities in different areas to be invested in productive projects and they also ensure that advances are properly secured and will comeback in time. 7. Provision of remittance facility : Banks provide remittance facility through remittance mechanism of bank drafts, mail transfers, telegraphic transfers, traveler's. cheques, circular note etc.. And help the businessmen to secure funds when needed.
8. Provision of medium of exchange : Bank deposits withdrawal
by cheque or transferable by credit transfers serves as a means of settlements of debts by this it reduces use of legal tender money. 9. Discharge of social responsibility : Banks have recognized their
social responsibility very well and now a days they serve in the best interest of the society at large . it is their bounded duty to grant credit to every section of the society. 10. Innovative services : Modern banks under take a number of innovative services like, merchant banking, underwriting of securities, factoring, leasing housing finance, setting up of mutual funds etc. For the economic development of the country.
BOOKS OF ACCOUNTS TO BE MAINTAINED BY BANKING COMPANIES A banking company is required to maintain various ledger and register as per the requirements of the banking regulation act 1949 all the books and registers a bank has to maintain can be classified into the following categories 1. Principle ledger 2. Subsidiary ledger. 3. Other register and memorandum books
PRINCIPLE LEDGER A banking company is required maintaining their following principle books a. Cashbook: - which provide the summary of collection and payments of the bank. b. General ledger: - general ledger provides details regarding expensed assets not covered under subsidiary books and also contain the control accounts of subsidiary books. 1. SUBSIDIARY LEDGER It includes : (a) Receiving cashiers counter Cash books; (b) Paying cashiers counter cash books; (c) Current accounts ledger; (d) Saving bank accounts ledger; (e) F-Deed deposit accounts ledger; (f) Investment ledger; (g) Cash credit ledger;
2. OTHER REGISTERS AND MEMORANDUM BOOKS It includes : (a) Bills for collection register (b) Share security register (c) Jewelry register (d) Demand draft register (e) Safe custody register (f) Standing order register (g) Dishonored check register
(h) Letter of credit register (i) Lockers register
FEATURES OF BANK ACCOUNTS Following are some of the feature of bank accounting. 1. Banking companies have to maintain books of accounts
under double entry system 2. It has to maintain books of accounts as reserved under the
provision of banking regulation act. 3. The posting of transaction in the ledger will be based on
deposit credit slips. 4. Sell balancing system of ledger is followed in accounting by
banking companies.
LIQUIDITY V/S PROFITABILITY A liquidity and safety principal aim at meeting demands of depositors for cash tin full and in time and is considered just one principle. That is principle of liquidity but profitability aims at paying of a handsome dividend to the shareholders. The objective of both the principles are complicating in their nature in their words they are opposing considerations. The most liquid asset is not at all profitable and the most profitable asset is least liquid. For instance, the most perfect asset cash is not profitable, the most profitable asset and advances are least liquid.
CHAPTER -3 INDUSTRY PROFILE MEANING A banking company has been defined under section 5(1) (c) of the banking company regulation act of 1949, "any company which transacts the business of the banking in India". According to section 5(1) (b) of the same act defines the banking has " accepting for the purpose of lending or investment of deposits money from the public, repayable on demand or otherwise and withdrawal by cheques , drafts, orders or otherwise".
ROLE OF COMMERCIAL BANKS IN A MODREN ECONOMY Bank plays significant role in the economic development of the country, it can be seen from the following points. 7. Deposits mobilization : Banks play significant role in mobilizing
the savings of the people by initiating different deposit schemes by extending a network of branches through out the country. 8. Granting of credit : Banks credit is essential for financing trade,
commerce, industry, agriculture, and other productive activities, banks extend credit to all these fields in order to have economic development of the country.
9. Creation of credit: Commercial banks can increase or decrease
the money supply ij the country and inject elasticity in to the credit system thought their function of creation of money. 10. Channalise funds in to productive investment: Banks not only
lend funds but also ensure that funds are lend only for productive purposes by monitoring properly. 11. Provision of finance to the government : Bank provide short-
term funds by purchasing trustee bills and long term funds by subscribing government bonds provide finance to the government. 12. Protecting the funds of depositor : Banks providing safety to the
funds depositor by lending to different kinds of borrowers engaged in different activities in different areas to be invested in productive projects and they also ensure that advances are properly secured and will comeback in time. 7. Provision of remittance facility : Banks provide remittance facility through remittance mechanism of bank drafts, mail transfers, telegraphic transfers, traveler's. cheques, circular note etc.. And help the businessmen to secure funds when needed.
10. Provision of medium of exchange : Bank deposits withdrawal
by cheque or transferable by credit transfers serves as a means of settlements of debts by this it reduces use of legal tender money. 11. Discharge of social responsibility : Banks have recognized their
social responsibility very well and now a days they serve in the best interest of the society at large . it is their bounded duty to grant credit to every section of the society. 10. Innovative services : Modern banks under take a number of innovative services like, merchant banking, underwriting of securities, factoring, leasing housing finance, setting up of mutual funds etc. For the economic development of the country.
BOOKS OF ACCOUNTS TO BE MAINTAINED BY BANKING COMPANIES A banking company is required to maintain various ledger and register as per the requirements of the banking regulation act 1949 all the books and registers a bank has to maintain can be classified into the following categories 4. Principle ledger 5. Subsidiary ledger. 6. Other register and memorandum books
PRINCIPLE LEDGER A banking company is required maintaining their following principle books a. Cashbook: - which provide the summary of collection and payments of the bank. b. General ledger: - general ledger provides details regarding expensed assets not covered under subsidiary books and also contain the control accounts of subsidiary books. 1. SUBSIDIARY LEDGER It includes : (h) Receiving cashiers counter Cash books; (i) Paying cashiers counter cash books; (j) Current accounts ledger; (k) Saving bank accounts ledger; (l) F-Deed deposit accounts ledger; (m)Investment ledger; (n) Cash credit ledger;
2. OTHER REGISTERS AND MEMORANDUM BOOKS It includes : (h) Bills for collection register (i) Share security register (j) Jewelry register (k) Demand draft register (l) Safe custody register (m)Standing order register (n) Dishonored check register
(h) Letter of credit register (i) Lockers register
FEATURES OF BANK ACCOUNTS Following are some of the feature of bank accounting. 5. Banking companies have to maintain books of accounts
under double entry system 6. It has to maintain books of accounts as reserved under the
provision of banking regulation act. 7. The posting of transaction in the ledger will be based on
deposit credit slips. 8. Sell balancing system of ledger is followed in accounting by
banking companies.
LIQUIDITY V/S PROFITABILITY A liquidity and safety principal aim at meeting demands of depositors for cash tin full and in time and is considered just one principle. That is principle of liquidity but profitability aims at paying of a handsome dividend to the shareholders. The objective of both the principles are complicating in their nature in their words they are opposing considerations. The most liquid asset is not at all profitable and the most profitable asset is least liquid. For instance, the most perfect asset cash is not profitable, the most profitable asset and advances are least liquid.
CHAPTER-4 COMPANY PROFILE INTRODUCTION Late Shri A.B.Shetty founded Vijaya Bank and other enterprising formers founded Vijaya Bank on 23rd- October 1931 in Mangalore, Karnataka the objective of the founders was essentially to promote Banking habit. Thrift and entrepreneurship among the farming community of Dakshina Kannada district in Karnataka State. The bank became a scheduled bank in 1958 Vijaya Bank steadily grew into a large all India bank, with 9 smaller banks merging with it during the 1963-68, the credit for this mergers well as growth goes to late Shri M. Sunder Ram Shetty, who was then the chief executive of the bank has built a network of 842 branches that span all 28 states and 4 union territories in the country Each Branch provides effective and efficient services and significantly contributes to the growth of the individual and the nation.
SHARE CAPITAL Government of India and institutional investors such as mutual funds UTI holds the share capital of Vijaya Bank. Insurance company. Other finance institution and private corporate Bodies, Indian public NRI's and other commercials banks, government of India acts as promoter of the bank it assist and guides the bank in times of financial difficulties
The distribution of shareholdings as in 31-03-2004 is given below. Category
No of shares
Amount in
%in
held
RS
total
Government of India
233517800
2335178000
53.87
Banks & Financial
9329242
93292120
2.15
Mutual funds & UTI
26509887
265098870
6.11
Bodies Corporate
1368191
136861910
3.16
NRIs/OCBs/FILs
43469128
434691280
10.03
Resident holdings
107005552
1070055520
24.68
TOTAL
433517800
4335178000
100.00
Institutions
LOANS AND ADVANCES Vijaya Bank provides various types of loans and advances to all the class of people. As its caption ' your partner in progress says the services provided by the bank. The different types of loans schemes provided are 1. Educational loans 2. Rent scheme 3. Liquidity finance to SSI 4. Jewel loan 5. Loans for investment resume 6. Loans for the purchase of equipment 7. Loans on motor vehicle 8. Housing loan 9. Advance to small road transport operators 10. Finance for trading activities 11. Agricultural finance
BRANCH NETWORK In the year 1963-68 nine smaller banks merged with the Vijaya Bank, during the year 2001-2002, bank rationalized its branch network by merging 16 branches with the nearby branches, converted its regional foreign exchange cell at Bangalore into a specialized overseas branch, as a result the total number of branches stood at 828 as at the end of 4 march -2002, as compared to 842 a year ago, during the year the bank has offered 2 extension converters closed on extension counter up graded on extension counter into a full pledged branch. On the international front the bank built a network relationship with over200 banks in 80 countries across America Europe and middle cast.
COMPUTERIZATION In banks has 87 computerized branches besides upgrading two partially computerized branches to total computerization taking the number of totally computerized and partially computerized branches to 328 and 10 respectively, converting 76.73% of aggregate business of bank.
CREDIT CARDS Vijaya Bank ewers visa and master card, credit cards for both individuals and cooperators, these cards are accepted at over 100000 members estimated across the country and Nepal,
Vijaya Bank credit cards came along with unique and attractive features like 1) Vijaya cash 2) Vijaya security 3) Vijaya family cards
VIJAYA CASH Instant cash withdrawal is available whenever needed, walk-in to any of 831 branches across the country draw upto RS 5000/ per month classic cards and RS 10000/ for gold cards though the pass book supplied along with the card.
VIJAYA SECURITY Vijaya Bank credit card brings along a 24 hours personal accident insurance coverage in the unfortunate event of the card holder death. Classic card holders - up to Rs 1 lakh, Gold card holders
- up to Rs 2 lakh
incase of road accident, Rs 4 lakh in case of death in an air crash
VIJAYA FAMILY CARDS Vijaya Bank add on credit cards are available for parent, spouse children of card holder above the 18 years of age regardless of his/her income, Billing under the add-on is changed to the main cared holder.
BOARD OF DIRECTORS The management of abroad of bank is vested with the board of directors. Board of directors of Vijaya Bank other than director of central government elected under the terms of Vijaya Bank general regulation, 1998 & sec 9(3)(l ) of the banking companies act 1980 read with the banking regulation act 1949 nationalized banks scheme 1980. The present strength of board of directors of the bank is 7, comprising of executive and 6 non - executive directors having diversified professional experience, the directors have been contributing their professional knowledge, experience and expertise in respective area of their specialization for the development of the bank.
SL
Name
Designation
no 1
Nature of directorship
Sri M.S. Kapur
Chairman &
Term of service(wef)
Executive
16.08.2002
Executive
08.03.2003
Director
Non-
23.03.2003
(govt. of
executive
managing director 2
Sri P A Sethi
Executive director
3
Sri R Renganath
India) 4
5
Sri K R Anand
Sri M Kiran
Director
Non-
(RBI)
executive
Director
Non-
31.07.2003
03.07.2000
executive 6
7
8
Sri Babuseth
Director-non
Non-
tyrewala
official
executive
Smt. Sykhda
Director- non
Non-
mishra
official
executive
Sri pawan kumar
Director
Non-
sharma
-non official
executive
08.05.2001
08.05.2001
20.12.2001
Table showing financial performance of the bank for the last 5 years from 2000 to 2004.
Particulars
2000
2001
2002
2003
2004
Capital &Reserves
447.08
599.44
663.03
811.27
1335.54
Deposits &other
11592.88
126.52.24
14680.51
17019.81
21015.05
Advances
4958.67
5720.01
6196.66
Investment
5088.87
5870.15
7360.73
8861.61
10836.99
Total income
1314.34
1512.45
1727.33
Total expenditure
1261.50
1441.72
1586.43
Net profit / loss
52.84
70.73
130.90
196.56
411.31
No of branches
837.00
842.00
828.00
843.00
866.00
CHAPTER - 5 ASSETS 1. CURRENT ASSETS TABLE NO – 1 TABLE SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF THE CASH AND BANK BALANCE WITH RBI
Percentage to
Increase /
the base year
Decrease
10261830
100%
-
2002 – 2003
10862662
106%
6%
2003 – 2004
8755742
85%
- 15%
2004 – 2005
12821072
125%
25%
Years
Amount
2001 – 2002
INTERPRETATION From the above table we can observe that the percentage of cash and bank balance with RBI in the base year 2001 – 2002 is 100 percent then it has been increased to 106 percent in the year 2002 – 2003. In the year 2003 – 2004 it has been decreased to 85% Even we can observe that in the year 2004 – 2005 it has been increased to 125 percent. So we can see that there is fluctuation when compared to the base year 2001 – 2002.
CHART NO – 1 CHART SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF THE CASH AND BANK BALANCE WITH RBI
TABLE NO – 2 TABLE SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF THE BALANCE WITH BANKS MONEY AT CALL AND SHORT NOTICE
Percentage to
Increase /
the base year
Decrease
6290536
100%
-
2002 – 2003
5172099
82.22%
-17.79%
2003 – 2004
2429873
38.62%
-61.37%
2004 – 2005
3324560
52.85%
-47.14%
Years
Amount
2001 – 2002
INTERPRETATION From the above table we can observe that the percentage of balance with banks money at call and short notice in the base year 2001 – 2002 is 100 percent then it has been decreased to 82.22 percent in the year 2002 – 2003. 38.62 percent in the year 2003 – 2004 and 52.85 percent in the year 2004 – 2005. So, there is gradual decrease when compared to the base year 0f 2001 – 2002.
CHART NO – 2
CHART SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF THE BALANCE WITH BANKS MONEY AT CALL AND SHORT NOTICE
0%
0% 2001 – 2002
2002 – 2003
2003 – 2004
2004 – 2005
-10% -20%
-17.79%
-30% -40%
-47.14%
-50% -60%
-61.37%
-70% Increase / Decrease
TABLE NO – 3 TABLE SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF THE ADVANCES
Percentage to
Increase /
the base year
Decrease
6196605
100%
-
2002 – 2003
78842588
127%
27%
2003 – 2004
110453118
178%
78%
2004 – 2005
143357840
231%
131%
Years
Amount
2001 – 2002
INTERPRETATION From the above table we can observe that the percentage of advances in the base year 2001 – 2002, then it has been increased to 127 percent in the year 2002 – 2003, 178 percent in the year 2003 – 2004 and 231 percent in the year 2004 – 2005 So, there is gradual increase when compared to the base year 0f 2001 – 2002.
CHART NO – 3 CHART SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF THE ADVANCES
131% 140% 120% 100%
78%
80% 60% 27%
40% 20%
0%
0% 2001 – 2002
2002 – 2003
2003 – 2004
Increase / Decrease
2. FIXED ASSETS
2004 – 2005
TABLE NO – 4 TABLE SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF THE ADVANCES.
Percentage to
Increase /
the base year
Decrease
1210269
100%
-
2002 – 2003
1126381
93.06%
-7%
2003 – 2004
1197881
98.97%
-1.02%
2004 – 2005
1153921
95.34%
-4.65%
Years
Amount
2001 – 2002
INTERPRETATION From the above table we can observe that the percentage of advances in the base year 2001 – 2002 is 100 percentage, then it has been decreased to 98.97 percent in the year 2004 – 2004 and 95.34 percentage in the year 2004 – 2005 So, there is gradual increase when compared to the base year of 2001 – 2002.
CHART NO – 4 CHART SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF THE ADVANCES.
0
0% 2001 – 2002
2002 – 2003
-0.01
2003 – 2004
2004 – 2005
-1.02%
-0.02 -0.03 -0.04
-4.65%
-0.05 -0.06 -0.07
-7%
-0.08
Increase / Decrease
TABLE NO – 5 TABLE SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF THE OTHER FIXED ASSETS ((AT COST) (INCREASING FURNITURE AND FIXTURES).
Percentage to
Increase /
the base year
Decrease
444970
100%
-
2002 – 2003
467500
105.06%
5.06%
2003 – 2004
714830
153%
53%
2004 – 2005
1022529
230%
130%
Years
Amount
2001 – 2002
INTERPRETATION From the above table we can observe that the percentage in other investment fixed assets including furniture and fixtures in the base year 2001 – 2002 is 100 percentage, then it has been increased to 105.06 percent in the year 2002 – 2003 and 153 percentage in the year 2003 – 2004 and 230% in the year 2004 – 2005 So, there is gradual increase when compared to the base year of 2001 – 2002.
CHART NO – 5 CHART SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF THE OTHER FIXED ASSETS ((AT COST) (INCREASING FURNITURE AND FIXTURES).
130%
140% 120% 100% 80% 53% 60% 40% 20%
0%
5.06%
0% 2001 – 2002
2002 – 2003
2003 – 2004
2004 – 2005
Increase / Decrease
TABLE NO – 6
TABLE SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF INVESTMENT
Percentage to
Increase /
the base year
Decrease
73607290
100%
-
2002 – 2003
88616137
120%
20%
2003 – 2004
108369893
147%
47%
2004 – 2005
120687398
164%
64%
Years
Amount
2001 – 2002
INTERPRETATION From the above table we can observe that the percentage of investment of Vijaya Bank in the base year 2001 – 2002 is 100 percentage, then it has been increased to 120 percent in the year 2002 – 2003 and 147 percentage in the year 2003 – 2004 and 164% in the year 2004 – 2005 So, there is gradual increase when compared to the base year of 2001 – 2002.
CHART NO – 6 CHART SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF INVESTMENT
64%
70% 60% 47% 50% 40% 30%
20%
20% 10%
0%
0% 2001 – 2002
2002 – 2003
2003 – 2004
2004 – 2005
Increase / Decrease
TABLE NO – 7
TABLE SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF THE BREAK UP
Percentage to
Increase /
the base year
Decrease
73607290
100%
-
2002 – 2003
88616137
120%
20%
2003 – 2004
108369893
147%
47%
2004 – 2005
120687398
164%
64%
Years
Amount
2001 – 2002
INTERPRETATION From the above table we can observe that the percentage of break up in the base year 2001 – 2002 is 100 percentage, then it has been increased to 120 percent in the year 2002 – 2003 and 147 percentage in the year 2003 – 2004 and 164 percent in the year 2004 – 2005 So, there is gradual increase when compared to the base year of 2001 – 2002.
CHART NO – 7 CHART SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF THE BREAK UP
64%
70% 60% 47% 50% 40% 30%
20%
20% 10%
0%
0% 2001 – 2002
2002 – 2003
2003 – 2004
2004 – 2005
Increase / Decrease
TABLE NO – 8
TABLE SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF THE BREAK UP
Percentage to
Increase /
the base year
Decrease
61966605
100%
-
2002 – 2003
78913423
127%
27%
2003 – 2004
110453118
178%
78%
2004 – 2005
143357840
231%
131%
Years
Amount
2001 – 2002
INTERPRETATION From the above table we can observe that the percentage of advances in India in the base year 2001 – 2002 is 100 percent, then it has been increased to 127 percent in the year 2002 – 2003 and 178 percent in the year 2003 – 2004 and 231 percent in the year 2004 – 2005 So, there is gradual increase when compared to the base year of 2001 – 2002.
CHART NO – 8 CHART SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF THE BREAK UP
131% 140% 120% 100%
78%
80% 60% 27%
40% 20%
0%
0% 2001 – 2002
2002 – 2003
2003 – 2004
Increase / Decrease
2004 – 2005
MISCELLANEOUS EXPENSES TABLE NO – 9 TABLE SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF THE OTHER ASSETS
Percentage to
Increase /
the base year
Decrease
7666499
100%
-
2002 – 2003
5635482
74%
-26%
2003 – 2004
8788845
114%
14%
2004 – 2005
10987650
143%
43%
Years
Amount
2001 – 2002
INTERPRETATION From the above table we can observe that the percentage of other assets in the base year 2001 – 2002 is 100 percent, then it has been decreased to 74 percent in the year 2002 – 2003. Even we can observe that in the year 2003 – 04 and 2004 – 2005 it has been increased to 114 percent and 143 percent respectively. So, we can say that there is more fluctuations when compared to the base year 2001 – 2002.
TABLE NO – 9 TABLE SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF THE OTHER ASSETS
0.5 43%
0.4 0.3 0.2 0.1 0 -0.1 -0.2
14% 0% 2001 – 2002
2002 – 2003
2003 – 2004
-26%
-0.3 Increase / Decrease
2004 – 2005
LIABILITIES CURRENT LIABILITIES TABLE NO – 10 TABLE SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF THE OF LIABILITIES AS PROVISIONS
Percentage to
Increase /
the base year
Decrease
7131937
100%
-
2002 – 2003
9274696
130%
30%
2003 – 2004
13837830
194%
94%
2004 – 2005
14875003
208%
108%
Years
Amount
2001 – 2002
INTERPRETATION From the above table we can observe that the percentage of liabilities and provisions in the base year 2001 – 2002 is 100 percent, then it has been increased to 130 percent in the year 2002 – 2003. 194 percent in the year 2003 – 2004 and 208 percent in the year 2004 - 2005. So, there is gradual increase when compared to the base year 2001 – 2002.
CHART NO – 10
CHART SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF THE OF LIABILITIES AS PROVISIONS
108%
120% 94% 100%
80%
60% 30%
40%
20%
0%
0% 2001 – 2002
2002 – 2003
2003 – 2004
2004 – 2005
Increase / Decrease
LONG RUN OR FIXED LIABILITIES TABLE NO – 11
TABLE SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF RESERVES AND SURPLUS
Percentage to
Increase /
the base year
Decrease
3295077
100%
-
2002 – 2003
4777523
145%
45%
2003 – 2004
9020174
274%
174%
2004 – 2005
11556676
350%
250%
Years
Total
2001 – 2002
INTERPRETATION From the above table we can observe that the percentage of reserves and surplus and provisions in the base year 2001 – 2002 is 100 percent, then it has been increased to 145 percent in the year 2002 – 2003. 274 percent in the year 2003 – 2004 and 350 percent in the year 2004 - 2005. So, there is gradual increase when compared to the base year 2001 – 2002.
CHART NO – 11 CHART SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF RESERVES AND SURPLUS
250% 250%
174%
200%
150%
100% 45% 50% 0% 0% 2001 – 2002
2002 – 2003
2003 – 2004
2004 – 2005
Increase / Decrease
DEPOSITS TABLE NO – 12 TABLE SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF DEPOSITS IN INDIA
Percentage to
Increase /
the base year
Decrease
146805098
100%
-
2002 – 2003
170198109
116%
16%
2003 – 2004
210150525
143%
43%
2004 – 2005
256179840
175%
75%
Years
Total
2001 – 2002
INTERPRETATION From the above table we can observe that the percentage of reserves and surplus and provisions in the base year 2001 – 2002 is 100 percent, then it has been increased to 116 percent in the year 2002 – 2003. 143 percent in the year 2003 – 2004 and 175 percent in the year 2004 - 2005. So, there is gradual increase when compared to the base year 2001 – 2002.
CHART NO – 12 CHART SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF DEPOSITS IN INDIA
75% 80% 70% 60% 43%
50% 40% 30% 16% 20% 10%
0%
0% 2001 – 2002
2002 – 2003
2003 – 2004
2004 – 2005
Increase / Decrease
TABLE NO – 13
TABLE SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF DEPOSITS IN INDIA
Percentage to
Increase /
the base year
Decrease
880709
100%
-
2002 – 2003
3208178
364%
264%
2003 – 2004
3366475
382%
282%
2004 – 2005
256179840
727%
627%
Years
Total
2001 – 2002
INTERPRETATION From the above table we can observe that the percent of borrowings in the base year 2001 – 2002 is 100 percent, then it has been increased to 364 percent in the year 2002 – 2003. 382 percent in the year 2003 – 2004 and 727 percent in the year 2004 - 2005. So, there is gradual increase when compared to the base year 2001 – 2002.
CHART NO – 13 CHART SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF DEPOSITS IN INDIA
627%
700% 600% 500% 400% 264%
282%
2002 – 2003
2003 – 2004
300% 200% 100%
0%
0% 2001 – 2002
Increase / Decrease
CAPITAL FUND
2004 – 2005
TABLE NO – 14 TABLE SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF CAPITAL FUND
Percentage to
Increase /
the base year
Decrease
3335178
100%
-
2002 – 2003
3335178
100%
-
2003 – 2004
4335178
130%
30%
2004 – 2005
4335178
130%
30%
Years
Total
2001 – 2002
INTERPRETATION From the above table we can observe that the percent of Capital fund in the base year 2001 – 2002 is 100 percent, In the year 2002 – 2003 the percent is remained same. In the year 2003 – 2004 and 2004 – 2005 it has been increased to 130 percent for each years. So, we can say that the percent of capital fund in the year 2001 – 2002 and 2002 – 2003 is same and again there is same percent in the year 2003 – 2004 and 2004 – 2005 that is 100 percent and 130 percent respectively.
CHART NO – 14 CHART SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF CAPITAL FUND
30%
30%
30%
25%
20%
15%
10%
5%
0%
0%
0% 2001 – 2002
2002 – 2003
2003 – 2004
Increase / Decrease
2004 – 2005
PROFIT AND LOSS ACCOUNT INCOME TABLE NO – 15 TABLE SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF INTEREST EARNED
Percentage to
Increase /
the base year
Decrease
15385043
100%
-
2002 – 2003
16708060
109%
9%
2003 – 2004
19400881
126%
26%
2004 – 2005
20943091
136%
36%
Years
Total
2001 – 2002
INTERPRETATION From the above table we can observe that the percent of interest earned in the base year 2001 – 2002 is 100 percent, then it has been increased to 109 percent in the year 2002 – 2003, 126 percent in the year 2003 – 2004 and 136 percent in the year 2004 – 2005. So, there is gradual increase when compared to the base year of 2001 – 2002.
CHART NO – 15 CHART SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF INTEREST EARNED
36%
40% 35% 26%
30% 25% 20% 15%
9%
10% 5%
0%
0% 2001 – 2002
2002 – 2003
2003 – 2004
Increase / Decrease
2004 – 2005
TABLE NO – 16 TABLE SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF OTHER INCOME
Percentage to
Increase /
the base year
Decrease
1888245
100%
-
2002 – 2003
3460203
183%
83%
2003 – 2004
5256930
278%
178%
2004 – 2005
3536714
187%
87%
Years
Total
2001 – 2002
INTERPRETATION From the above table we can observe that the percent of income in the base year 2001 – 2002 is 100 percent, then it has been increased to 183 percent in the year 2002 – 2003, 278 percent in the year 2003 – 2004 and 187 percent in the year 2004 – 2005. So, there is fluctuation in the increase when compared to the base year of 2001 – 2002.
CHART NO – 16 CHART SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF OTHER INCOME
178% 180% 160% 140% 120% 87%
83%
100% 80% 60% 40% 20%
0%
0% 2001 – 2002
2002 – 2003
2003 – 2004
Increase / Decrease
EXPENDITURE
2004 – 2005
TABLE NO – 17 TABLE SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF THE INTEREST EXPENDED
Percentage to
Increase /
the base year
Decrease
10531928
100%
-
2002 – 2003
10274164
98%
-2%
2003 – 2004
11023233
105%
5%
2004 – 2005
11097758
105%
5%
Years
Total
2001 – 2002
INTERPRETATION From the above table we can observe that the percent of interest expended in the base year 2001 – 2002 is 100 percent, then it has been decreased to 98 percent in the year 2002 – 2003, In the year 2003 – 2004 and 2004 – 2005 it has been increased to 105 percent for each year. So, we can see that there is a fluctuation when compared to the base year of 2001 – 2002.
CHART NO – 17 CHART SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF THE INTEREST EXPENDED
0.06 0.05
5%
5%
0.04 0.03 0.02 0.01
0%
0 -0.01
2001 – 2002
-0.02
2002 – 2003
2003 – 2004
2004 – 2005
-2%
-0.03 Increase / Decrease
TABLE NO – 18 TABLE SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF OPERATING EXPENSES
Years
Total
2001 – 2002
4216278
Percentage to
Increase /
the base year
Decrease
100%
-
2002 – 2003
5570460
132%
32%
2003 – 2004
4978203
118%
18%
2004 – 2005
5491750
130%
30%
INTERPRETATION From the above table we can observe that the percent of operating expenses in the base year 2001 – 2002 is 100 percent, then it has been increased to 132 percent in the year 2002 – 2003, 118 percent in the year 2003 – 2004 and 130 percent in the year 2004 – 2005. So, there is gradual increased when compared to the base year of 2001 – 2002.
CHART NO – 18 CHART SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF OPERATING EXPENSES
32%
35%
30%
30% 25% 18% 20% 15% 10% 5%
0%
0% 2001 – 2002
2002 – 2003
2003 – 2004
Increase / Decrease
2004 – 2005
TABLE NO – 19 TABLE SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF PROFIT AND LOSS ACCOUNT
Percentage to
Increase /
the base year
Decrease
871492
100%
-
2002 – 2003
3142680
361%
261%
2003 – 2004
5616710
644%
544%
2004 – 2005
4851486
557%
457%
Years
Total
2001 – 2002
INTERPRETATION From the above table we can observe that the percent of profit and loss account in the base year 2001 – 2002 is 100 percent, then it has been increased to 361 percent in the year 2002 – 2003, 644 percent in the year 2003 – 2004 and 557 percent in the year 2004 – 2005. So, there is gradual increased when compared to the base year of 2001 – 2002.
CHART NO – 19 CHART SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF PROFIT AND LOSS ACCOUNT
544%
600%
457%
500%
400% 261% 300%
200%
100%
0%
0% 2001 – 2002
2002 – 2003
2003 – 2004
Increase / Decrease
2004 – 2005
TABLE NO – 20 TABLE SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF APPROPRIATIONS
Percentage to
Increase /
the base year
Decrease
2180529
100%
-
2002 – 2003
3142680
144%
44%
2003 – 2004
5616710
258%
158%
2004 – 2005
4851486
222%
122%
Years
Total
2001 – 2002
INTERPRETATION From the above table we can observe that the percent of appropriation in the base year 2001 – 2002 is 100 percent, then it has been increased to 144 percent in the year 2002 – 2003, 258 percent in the year 2003 – 2004 and 222 percent in the year 2004 – 2005. So, there is gradual increased when compared to the base year of 2001 – 2002.
CHART NO – 20 CHART SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF APPROPRIATIONS
158% 160% 140%
122%
120% 100% 80% 44%
60% 40% 20%
0%
0% 2001 – 2002
2002 – 2003
2003 – 2004
2004 – 2005
Increase / Decrease
TABLE NO – 21
TABLE SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF WORKING CAPITAL
Percentage to
Increase /
the base year
Decrease
71387034
100%
-
2002 – 2003
89273488
125%
25%
2003 – 2004
107800903
151%
51%
2004 – 2005
144628489
203%
103%
Years
Total
2001 – 2002
INTERPRETATION From the above table we can observe that the percent of working capital in the base year 2001 – 2002 is 100 percent, then it has been increased to 125 percent in the year 2002 – 2003, 151 percent in the year 2003 – 2004 and 203 percent in the year 2004 – 2005. So, there is gradual increased when compared to the base year of 2001 – 2002.
CHART NO – 21 CHART SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF WORKING CAPITAL
120%
103%
100%
80% 51%
60%
40%
20%
25%
0%
0% 2001 – 2002
2002 – 2003
2003 – 2004
Increase / Decrease
2004 – 2005
CHAPTER – 6 SUMMARY OF FINDINGS, SUGGESTIONS, CONCLUSION SUMMARY OF FINDINGS 1. From this table we can find that there is more fluctuations in the percentage of the cash and bank balance with RBI. That is it has been increased by 6% and 25% in the year 2002 – 2003 and 2004 – 2005 respectively and decrease by 15% in the year 2003 – 2004 2. From this table we can find that the percentage of balance with banks money at call and short notice is to decrease in trand. 3. From this table we can find that the percentage advances as been increased from 2001 – 2002 to 2004 – 2005 4. From this table we can find that the percentage of premises is in decrease trand. This is because of decrease in investment on premises. 5. From this table we can find that the percentage of other fixed assets is having more fluctuations. That is there is a less increase in 2002 – 2003 and 2003 – 2004, but there is a more increase in 2004 – 2005. 6. From this table we can find that the percentage of investment is increase in trend from 2001 – 2002 to 2004 – 2005. This indicates that the bank has shown much interest investment on different sectors 7. from this table we can find that the percentage of break up is increase in trend from 2001 – 2002 to 2004 – 2005.
8. From this table we can find that the percentage of advances in India is increase in trend from 2001 – 2002 to 2004 – 2005. This shows that the bank has made more advances in advances in different sectors. 9. From this table we can find that there is more variations in the percentage of the other assets that is, it has been decreased by 26 % in the year 2002 – 2003 and increase by 14% and 43% in the year 2003 – 2004 and 2004 – 2005. 10. From this table we can find that the percentage of liabilities and provisions as been increased since from 34 years that is 2001 – 2002 to 2004 – 2005. 11. From this table we can find that the percentage of reserves and surplus as been increased since from 2001 – 2002 to 2004 -2005. 12. From this table we can find that the percentage of deposits in India is increase in trend since from 4 years. 13. From this table we can find that the percentage of borrowings is having more fluctuations that is, there is a less increase in the year 2002 – 2003 and 2003 – 2004 but there is a more increase in 2004 – 2005. 14. From this table we can find that the percentage of capital as been increase in the year 2003 – 2004 to 2004 – 2005 respectively at the same percentage that is 30% 15. From this table we can find that the percentage of interest earned income has been increase to year by year that is 2001 – 2002 to 2004 – 2005.
16. From this table we can find that the percentage of other income is having more variation that is, these is a less increase in the year 2002 – 2003 and 2004 – 2005 but there is a more increase in year 2003 – 2004. 17. From this table we can find that the percentage of interest expenses is having more fluctuation that is it has been reduced by 2% in the year 2002 – 2003 and increase by 5 % each in the year 2003 – 2004 and 2004 – 2005. 18. From this table we can find that the percentage of operating expenses is having more variations that is there is more increase in 2002 – 2003 and 2004 – 2005 but there is a less increase in 2003 – 2004 19. From this table we can find that the percentage of P/l account has been increase from 2001 – 2002 to 2004 – 2005. 20. From this table we can find that the percentage of appropriations is having more fluctuations that is there is a less increase in the year 2002 – 2003 but there is more increase in the year 2003 – 2004 and 2004 – 2005.
SUGGESTIONS 1. The more fluctuation in the percent of cash and bank balance with RBI shows that the security created by the bank is fluctuation. This fluctuation is mainly due to less deposits acquired in the year 2003 – 2004. Any how it has been increased in the year 2004 - 2005 which is a good sign to the bank, let the bank increase trend.
to
maintained
the
2. The increase in balance with banks money at call and short notice is not a good sign to a bank because the more money to be called will increase as a result the banks may find difficulty in getting the money for routiation so , it has to take some important measure to curtain the decrease in trend. 3. The increase in advances since from last 3 years is a good sign to the bank so the bank should try to maintain the same increase in trend or for there it should try to increase its advances. 4. The percentage of premises is not a good sign to bank because with out having a good premises its difficult to attract the customers. Therefore the bank has to take some corrective decision there investment on increase in the premises. 5. Whatever the increase that the bank maintained on the investment of fixed assets in the year 2004 – 2005 is a good sign to the bank because these investment on fixed asset is also one of the factors which are helpful in attracting the customers. Let the bank maintain the same increase in trend. 6. The idea of increase investment is different sectors of Vijaya bank is a good decisions as it results in the overall economic development of the country so, let the bank maintain the same increase in trend. 7. The increase in breakup since from last 4 years is a good sign to the bank so, the bank should maintain the same increase in trend. 8. The increase in advances in India since from last 4 years is a good sign to the bank. It results in the economic development of the country. So, let the bank maintain the same increase in trend.
9. The more fluctuations in the percent of other assets shows that there is more variations in the fietiticious assets, such as good will and other accumulated loss. The increase in this assets in the year 2004 – 2005 is a good sign to bank has it shows the states of the bank. 10. The idea of increase Liabilities of provisions is not a good sign to a bank. So, the bank should try to reduces the liabilities and others provisions by increase in the assets. 11. The increase in reserves and surplus is a good sign to the bank as it indicates that the bank has kept more amount of profits as reserves and surplus to assets the uncertain contingens which may accrued in a future. The maintain of this reserves and surplus is very much essentials especially for the bank. To meet the changes is money market. 12. The increase in deposits is a good sign to the bank, because accepting deposits from the public is one of the important functions of bank. This increase in deposits shows that the bank has perform its functions by accepting more deposits from the public through its attractive deposits schemes. Let the bank maintain same. 13. the increase in borrowing is mainly due to increase in advances for various sectors in the economy. The increase in borrowing is a good sign to the bank as it can lend money to the public under various sectors from which the bank can earn more interest from the advances and it also results in economic development of the country. So, let the bank maintain same.
14. The idea of increase in capital is good sign to Vijaya Bank. It results in the economic development of the country. So let the bank maintain the same increase in trend 15. The increase in income is mainly due to increase in the advances given by the bank under various sectors of economy and also for the increase in the interest earned by the bank. Since there is a mutual benefit for both the bank and economy. Let the bank maintained the same increase in trend in the income of the bank. 16. The increase in other income is mainly due to the increase in investment in various sectors of economy and increase in the functions perform by the that is earning bank charges, banks commission etc. This increase in a good sign to the bank as it can meet the others expenditure easily in time. 17. The increase in interest paid is mainly due to increase in deposits accepted from the public both in the year 2003 – 2004 and 2004 – 2005. This increase in a good sign because the bank has performed its functions in attracting the saving from the public in the from of deposits. Moreover the increase in interest paid is just parallel to the increase in the income. So, let the bank maintain same. 18. The increase in day to day operating expenses of the bank shows that the bank has perform more function with more expenditure but the bank should try to reduces these expenditure and also increase in performing the functions with less expenditure. 19. The percentage in profit is good sign to a bank. Therefore the bank has to maintain the same trend the future days also.
20. The increase in a appropriation is just parallel to the increase in profit also which is a good sign to the bank. Because increase in appropriation are very much essential for the banks. To maintained some part of the profits as a reserve and surplus which are helpful to meet the uncertain event in the future. 21. The increase in working capital shows that the bank has performed well in completing its short term objectives. For each and every organization/ Bank achievement of the objective is very much important. Therefore the bank should maintain same.
ANNEXURE BALANCE SHEET OF VIJAYA BANK AS ON 2002-05 LIABILITIES CURRENT LIABILITIES Other Liabilities 1. Bills Payable 2. Interest Accrued 3. Sib-Oriented Debts Bonds raised as a) 5 Years Bond 2004 at 14.20% b) 7 Years Bond 2006 at 12.35% c) 7.5 Years Bond 2010 at 7.5% 4. VRs Bonds @ 11% 5. Provision against Standard Assets 6. Provision for recognition of loan 7. Others including provisions Total Current Liabilities FIXED LIABILITIES Long un Liabilities Reserve and Surplus 1. Statutory Reserve a) Balance as per last balance sheet b) Add during the year 2. Capital Reserve 3. Share premium a) Balance as per last balance sheet b) Add during the year 4. Revaluation reserves 5. Revenue and other reserves a) Investment fluctuation reserve Add : addition during the year b) Deferred Tax Reserve c) Special reserve in term of sec b(1)VIII d) Balance in P/L Account Total Current Liabilities DEPOSITS Deposits in India 1. Demand deposits a. From banks b. From others 2. Saving bank deposits 3. Term Deposits a. From banks b. From others TOTAL BORROWINGS 1. Borrowings in India
31/03/2002
31/03/2003
31/03/2004
31/03/2005
3057481 412633
3076315 422412
5160954 784876
3910184 599687
1200000 600000 1500000 104040
1200000 600000 1500000 100900
1200000 600000 1500000 10034
600000 1500000 99880
145400
192400
339500
406816
99000 1580883 7131937
31500 2083669 9274696
4152160 13837830
5258436 14875003
448149
775600
1267250
2295914
327451
491650
1028664
962000
1400000 674019
621756
1400000 573963
530231
301863
577640
1304840
3224423
275777 90739
727200 80069
1919583 80066
5577 -
400000
650000
1177079 3295077
1503608 4777523
1045808 9020174
2407748 11556676
658188 18002478 28946151
499535 19191403 35111312
512383 19776196 44473100
922591 28522922 53960073
786436 98411845 146805098
1387183 114008676 170198109
1367873 144020973 210150525
1563016 171211238 256179840
a. RBI b. Other Banks c. Other Institutions 2. Borrowings Outside India TOTALS TOTAL FIXED LIABILITIES CAPITAL FUND CAPITAL Authorized capital issued and Subscribed and called up capital Paid up capital held by the central Govt. Held by the public an others Capital Fund total ASSETS Current Assets Cash & Bank balance with RBI 1. Cash in Hand 2. Cash and balance with RBI Current Account Other Account Total Balance with banks money at call & short notice 1. In India a) Balance with bank 1. In Current Account 2. Other Deposits b) Money at call and short notice 1. With Banks 2. Other institutions a) Total 2. OUT SIDE INDIA a) Current Account b) Deposits Accounts b)Total Total A+B Advances a) i. Bill purchased and discounted ii. Cash, Credit Over drafts and Loans repayable on demand iii. Terms Loans Total b) i. Secured by tangible assets ii. Covered by Bank/ Govt Guaranties iii. Unsecured Total Total Current assets FIXED ASSETS Premises Add: during the year Less Depreciation TOTAL OTHER FIXED ASSETS AS PER THE LAST BALANCE SHEET Add: During The year
Less During the year Less Depreciation Add: Lease Terminal Adjusted TOTAL INVESTMENT IN INDIA Provision for depreciation and NPA net investment India TOTAL BREAK UP Govt Securities Other approved Securities Shares Debenture and Bonds Subsidiaries and Joint Ventures Others TOTAL ADVANCES IN INDIA Priority sector Public Sector Banks Others Total Total Fixed Assets Other Assets 1. Inter Office Adjustment (Net Amount) 2. Interest accrued 3. Tax Paid in advance 4. Deferred Tax assets 5. Stationery and stamps 6. Non Banking Assets 7. Others Total Miscellanies Expenses Grand Total
WORKING CAPITAL OF VIJAYA BANK AS ON 2002-05 ASSETS Current Assets Cash & Bank balance with RBI 3. Cash in Hand 4. Cash and balance with RBI Current Account Other Account Total Balance with banks money at call & short notice 2. In India c) Balance with bank 1. In Current Account 2. Other Deposits d) Money at call and short notice 1. With Banks 2. Other institutions a) Total 2. OUT SIDE INDIA a) Current Account b) Deposits Accounts b)Total Total A+B Advances a) i. Bill purchased and discounted ii. Cash, Credit Over drafts and Loans repayable on demand iii. Terms Loans Total b) i. Secured by tangible assets
938446
975160
1030245
1318566
9323384 10261830
9887502 10862662
7674599 50898 8755742
11502456 50 12821072
1412484 2206205
699186 3150000
765686 1250000
1394301 1000138
750000 250000 489186
Nil Nil 2015686
Nil Nil 2394439
60053 911794 971847 6290536
97123 225790 322913 5172099
288643 125544 414187 2429873
810291 119830 930121 3324560
3190155
3612913
4152241
5297185
33863418
40092572
49375741
56909150
24913032 61966605 44396239
35137103 78842588 65559069
56925136 110453118 79770419
81151505 143357840 107043093
700000 1000000 5318689
COMPARATIVE PROFIT & LOSS A/C AS ON 31 MARCH 2003 & 2004 ST
Particulars
2002
2003
2004
2005
(I) Income Interest earned (a) Interest/ Discount on advance / Bills
7142524
7558275
9731862
11469859
(b) Income on Investment
7651395
8630192
9299578
8956831
545366
430906
190305
224696
45758
88687
179136
291705
15385043
16708060
19400881
20943091
(a) Commission exchange & Brokage
472294
455635
490408
541276
(b) Profit on sale of Investment
904296
2252604
3679836
1633581
2631
1717
243378
144564
901665
2250887
3436458
1489017
Nil
Nil
Nil
Nil
3246
2009
1557
1097
1781
1460
2181
2114
1465
549
-624
-1017
369130
216653
253326
296340
01
Nil
230
1214
369129
216653
253096
296340
437004
536479
1077592
1212312
1888242
3460203
5256930
3536714
(c) Interest on balance sheet with RBI & others inter-banks funds (d) Others (Total) Other Income
Less: Loss on sale of investment
(c) Net on revaluation of investment (profit/Loss) (d) Profit on sale of building & other assets Less: Loss on sale of building & other assets (e) Profit on exchange Transactions Less: Loss on exchange Transactions (f) Miscellaneous Income (Total)
Include lease rental income lease equalization A/c Total Income
3623
Nil
2889
2164
17273285
20168263
24657811
24479805
10013370
9901080
10525458
10716527
21747
19218
9754
7706
496811
353866
488021
373525
10531923
10274164
10023033
11097758
3059192
4290055
3315961
3188168
388209
443075
419804
472253
35523
42099
46691
61969
3576
13885
62835
64691
189377
197344
251164
400487
(II) Expenditure Interest expended (a) Interest on deposits (b) Interest on RBI/inter Bank borrowings (c) Others
Operating expenses (a) Payment to & provisions for employees (b) Rent taxes & lighting (c) Printing & stationery (d) Advertisement & Publicity (c) depreciation on Bank property (d) Director's fees Allowances & expenses (e) Auditor fees & expenses (inclusive branch auditor's) (f) Law charges
1075
2184
2721
1019
29493
33442
60137
66758
3743
7792
8298
4693
(g) Postage, Telegrams, Telephone etc
25562
15737
30582
58928
(h) Repairs & Maintenance
13583
10775
19565
15565
(i) Insurance
78689
96080
104238
212373
388256
417992
656237
942846
4216278
5570460
4978203
5491750
1216042
2358038
4543273
4087619
15964248
18202662
20544709
20674127
(j) Other expenditure (Total) Provisions & Contingencies Total expenditure