Final Report..

Published on January 2018 | Categories: Documents | Downloads: 53 | Comments: 0 | Views: 1532
of 95
Download PDF   Embed   Report

Comments

Content

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;

(h) Loan ledger; (i) Bills discount and purchased ledger; G) Receiving deposit account ledger; (k) Fixed deposit account ledger; (I) Customers acceptances, endorsement and guarantee ledger etc.,

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;

(h) Loan ledger; (i) Bills discount and purchased ledger; G) Receiving deposit account ledger; (k) Fixed deposit account ledger; (I) Customers acceptances, endorsement and guarantee ledger etc.,

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

Increase / Decrease 25% 0.25 0.2 0.15 0.1 0.05 0 -0.05 -0.1 -0.15

6% 0%

-15% 2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005

Increase / Decrease

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

326200 3080 310121 241308 880709 150980884

799 2520811 686568 3208178 178183810

36040 759863 2570572 3366475 222537174

1011312 5396950 6408262 274144778

15000000 3335178 2335178 100000 3335178

15000000 3335178 2335178 1000000 3335178

15000000 4335178 2335178 2000000 4335178

15000000 4335178 2335178 2000000 4335178

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 11619349 5951017 61966605 78518971

35137103 78842588 65559069 8497145 4857209 78842588 94877349

56925136 110453118 79770419 11817636 18865063 110453118 121638733

81151505 143357840 107043093 2747162 33567585 143357840 159503472

1736462 245568 1982030 771761 1210269

1982030 3211 1985241 858860 1126381

1985241 154100 2139341 941460 1197881

2139341 35823 2175164 1021243 1153921

1487614 167733 1655347

1634535 224370 1858905

1820147 472414 2292561

2280944 663008 2943952

700000 1000000 5318689

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

20812 1634535 1178583 455952 10982 444970 74175768

38758 1820147 1341088 479059 11559 467500 89367532

11617 2280944 723499 1557443 8669 718330 108927012

54273 2889676 1029030 1060549 6502 1022529 123008708

568478

751395

567119

2321110

73607290

88616137

108369893

120687398

55670713 1542296 314792 14948314 106314 1024861 73607290

70123188 1417117 320211 14470941 106314 2178366 88616137

89615695 1264153 496543 12806940 129510 4057052 108369893

104536504 1056128 400292 11753524 212579 2728271 120687398

22230660 18421042 23022 21291881 61966605 75262529

28303770 14590481 345346 35673826 78913423 90210018

44486642 14016773 452771 51716932 110453118 110282604

57225374 17494547 116107 68521812 143357840 122863877

1182289 3226053 216148 77204 8148 2709 2953948 7666499 161447999

549956 2903474 1011639 392615 5937 2709 769152 5635482 190793684

3351133 2617045 1333068 4079046 7369 2717 1069817 8788845 240710182

3746339 2551436 1747404 700475 6099 2806 2233081 10987640 293354959

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

(Ill) Profit & Loss Net profit for the year

1309037

1965601

4113102

3805678

919010

1177079

1503608

1045808

47518

Nil

Nil

Nil

871492

3142680

5616710

4851486

Transfer to statutory reserve

327451

491650

1028664

952000

Transfer to investment fluctuation

275777

727200

1919583

5577

Transfer to special reserve in terms of

Nil

0

400000

250000

section 36(i) (i) (viii) Interim dividend

Nil

0

489062

735262

400222

400222

733593

490185

Nil

20000

0

Nil

1177079

1503608

1045808

2327679

2180529

3142680

5616710

4851486

Add: Profit brought forward Investment Fluctuation Reserve (Total) (IV) Appropriations

reserve

Proposed dividend Transfer to staff welfare fund Balance carried forward to the balance sheet (Total)

BIBLIOGRAPHY TEXT BOOKS

AUTHORS EDITIONS

Financial

Dr. S.N.

Management Business Finance

Maheshwari H.R.

Financial

Appanaiah I.M. Pandey

Accounting

WEB SITE: www.vijaya.com

th

4 2

nd

st

1

PUBLISHERS SultanChand and Sons CO. Ltd., Himalaya Publishing House Vikas Publishing house PVT Ltd.,

Sponsor Documents

Or use your account on DocShare.tips

Hide

Forgot your password?

Or register your new account on DocShare.tips

Hide

Lost your password? Please enter your email address. You will receive a link to create a new password.

Back to log-in

Close