Sr. No. PARTICULARS Page No.
1 History of Banking 3
2 History of Banking in India 4
BANK OF BARODA
1 Introduction 7
2 Products and Services 11
1 Consolidated Balance Sheet of BoB 15
2 Consolidated Profit and Loss Statement of BoB 17
3 Stand alone Cash flow Statement of BoB 18
1 Ratio Analysis 21
2 Comparative Financial Statement 24
3 Trend Analysis 27
FINDINGS AND SUGGESTIONS
1 Comments 33
2 Suggestions 38
Banking is the business activity of accepting and safeguarding money owned by other
individuals and entities, and then lending out this money in order to earn a profit. The banking
also includes issuance of debit and credit cards, providing safe custody of valuable items,
lockers, ATM services and online transfer of funds across the country or world. It is well said
that banking plays a silent, yet crucial part in economy. The banking activity encourages the flow
of money to productive use and investments. This is turn allows the economy to grow.
A banking system also referred as a system provided by the bank which offers cash management
services for customers, reporting the transactions of their accounts and portfolios. The banking
system should not only be hassle free but it should be able to meet the new challenges posed by
the technology and any other external and internal factors. The banks also offer investment and
insurance products. As a variety of models for cooperation and integration among finance
industries have emerged, some of the traditional distinctions between banks, insurance
companies, and securities firms have diminished. In spite of these changes, banks continue to
maintain and perform their primary role—accepting deposits and lending funds from these
Generally banking in India was fairly mature in terms of supply, product range and reach-even
though reach in rural India and to the poor still remains a challenge. The government has
developed initiatives to address this through the State Bank of India expanding its branch
network and through the National Bank for Agriculture and Rural Development with things like
microfinance. This also included the 2014 plan by prime minister to bring bank accounts to the
estimated 40% of the population that are still unbanked.
HISTORY OF BANKING:
The history of banking depends on the history of money—and on grain-money and food cattle-
money used from at least 9000 BC. The history of banking begins with the first prototype banks
of merchants of the ancient world, which made grain loans to farmers and traders who carried
goods between cities. This began around 2000 BC in Assyria and Babylonia. Later, in ancient
Greece and during the Roman Empire, lenders based in temples made loans and added two
important innovations: they accepted deposits and changed money.
During the early periods, although the banking business was mostly done by private individuals,
many countries established public banks either for the purpose of facilitating commerce or to
serve the Government. The bank of Venice, established in 1157, is supposed to be the most
ancient bank. Originally, it was not a bank in the modern sense, being simply an office for the
transfer of the public debt.
Banking, in the modern sense of the word, can be traced to medieval Renaissance Italy, to the
rich cities in the north such as Florence, Venice and Genoa. The Bardi and Peruzzi families
dominated banking in 14th century Florence, establishing branches in many other parts of
Europe. Perhaps the most famous Italian bank was the Medici bank, established by Giovanni
Medici in 1397. The oldest bank still in existence is Monte dei Paschi di Siena, headquartered in
Siena, Italy, which has been operating continuously since 1472.
As early as 1349, the business of banking was carried on by the drapers of Barcelona. There it
was subject to official regulation. The drapers were not allowed to commence this business until
they had given sufficient security. During 1401, a public bank was established in Barcelona. It
used to exchange money, receive deposits and discount bills of exchange, both for the citizens
and for the foreigners. During 1407, the bank of Genoa was established.
The development of banking spread from northern Italy throughout the Roman Empire, and in
the 15th and 16th century to northern Europe. During the 20th century, developments in
telecommunications and computing caused major changes to banks' operations and let banks
dramatically increase in size and geographic spread.
HISTORY OF BANKING IN INDIA:
A. BANKING IN ANCIENT PERIOD:
The origin of banking in India can be traced back to almost the Vedic period (beginning 1750
BC). The transformation from pure money lending to proper banking appears to have taken place
before the times of Manu. Manu, a great Hindu jurist, has devoted a section of his work
explaining the deposits and advances and he even laid down certain rules on rates of interest.
Later, during the Maurya dynasty (321 to 185 BC), an instrument called ‘Adesha’ was in use,
which was an order on a banker desiring him to pay the money of the note to a third person,
which corresponds to the definition of a bill of exchange as we understand today. During the
Buddhist period, there was considerable use of these instruments. Merchants in large towns gave
letters of credit to one another. Also, during the Moghul period indigenous bankers started
playing a vital role in lending money and financing of foreign trade and commerce.
B. BANKING DURING BRITISH PERIOD:
Banking in India in the modern sense originated in the last decades of the 18th
century. The first
banks were Bank of Hindustan (1770-1829) and The General Bank of India, established 1786
and since defunct. The largest bank, and the oldest still in existence, is the State Bank of India,
which originated in the Bank of Calcutta in June 1806, which almost immediately became the
Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of
Bombay and the Bank of Madras, all three of which were established under charters from the
British East India Company. The three banks merged in 1921 to form the Imperial Bank of India,
which, upon India’s independence, became the State Bank of India in 1955. For many years the
presidency banks acted as quasi-central banks, as did their successors, until the Reserve Bank of
India was established in 1935.
Foreign banks too started to appear, particularly in Calcutta, in the 1860s. The Comptoir
d’Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862;
branches in Madras and Pondicherry, then a French possession, followed. HSBC established
itself in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the
trade of the British Empire, and so became a banking centre.
The Allahabad Bank, established in 1865 and still functioning today, is the oldest joint stock
bank in India, it was not first though. The honour belongs to the Bank of Upper India, which was
established in 1863, and which survived until 1913, when it failed, with some of its assets and
liabilities being transferred to the Alliance Bank of Simla. The first entirely Indian joint stock
bank was the Oudh Commercial Bank, established in 1881 in Faizabad. It failed in 1958. The
next was Punjab National Bank, established in Lahore in 1895, which has survived to the present
and is now one of the largest banks in India.
The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi
movement. The Swadeshi movement inspired local businessmen and political figures to found
banks of and for the Indian community. A number of banks established then have survived to the
present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank
and Central Bank of India. The fervour of Swadeshi movement led to establishing of many
private banks in Dakshina Kannada and Udupi district which were unified earlier and known by
the name South Canara (South Kanara) district. Four nationalized banks started in this district
and also a leading private sector bank. Hence undivided Dakshina Kannada district is known as
“Cradle of Indian Banking”.
C. BANKING POST INDEPENDENCE:
India’s independence marked the end of a regime of the Laissez-faire for the Indian banking. The
Government of India initiated measures to play an active role in the economy of the nation, and
the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy.
This resulted into greater involvement of the States in different segments of the economy
including banking and finance.
D. NATIONALISATION OF INDIAN BANKS:
Despite the provisions, control and regulation of the RBI, banks in India except the State Bank of
India, continued to be owned and operated by private persons. By the 1960s, the Indian banking
industry had become an important tool to facilitate the development of the Indian economy. At
the same time, it had emerged as a large employer, and a debate had ensued about the
nationalization of the banking industry. The Government of India issued an ordinance (Banking
Companies (Acquisition and Transfer of Undertaking) Ordinance, 1969) and nationalized the 14
largest commercial banks with effect from the midnight of July 19, 1969. These banks contained
85% of bank deposits in the country.
A second dose of nationalization of 6 more commercial banks followed in 1980. With the second
dose of nationalization, the Government of India controlled around 91% of the banking business
of India. Later on, in 1993, the Government merged New Bank of India with Punjab National
Bank. It was the only merger between nationalized banks. Until the 1990s, the nationalized
banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy.
E. LIBERALISATION OF INDIAN BANKS:
In the early 1990s, the Government entered into a policy of liberalization, licensing a small
number of private banks. These came to be known as New Generation tech-savvy banks, and
included Global Trust Bank (the first of such new-generation banks to be set-up), which later
amalgamated with Oriental Bank of Commerce, UTI Bank (renamed as Axis Bank), ICICI Bank
and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized
the banking sector in India.
BANK OF BARODA
Bank of Baroda (BoB) is an Indian state-owned banking and financial services company
headquartered in Vadodara (earlier known as Baroda) in Gujarat. It is among top four largest
bank in India and offers a range of banking products and financial services to corporate and retail
customers through its branches and through its specialized subsidiaries and affiliates.
Currently it is one of the Big Four banks of India, along with State Bank of India, ICICI Bank
and Punjab National Bank having international presence.
It has been a long and eventful journey for Bank of Baroda with it completing its centenary
celebrations in 2008 starting from a small building in Baroda to hi-tech corporate centre in
Mumbai and having international presence in over 20 countries, so it’s time to turn back the
pages of time, and salute the great moments of its historical saga.
The Bank of Baroda was founded by the Maharaja of Baroda, H. H. Sir Sayajirao Gaekwad III
on 20 July 1908 in the Princely State of Baroda, in Gujarat, under the Companies Act of 1887
with a paid up capital of Rs.10 Lakh. Two years later, in 1910, the Bank opened its first office
branch in Ahmedabad.
The founder, Maharaja Sayajirao Gaekwad, with his insight into the future, saw "a bank of this
nature will prove a beneficial agency for lending, transmission, and deposit of money and will be
a powerful factor in the development of art, industries and commerce of the State and adjoining
These words are etched into the mind, body and soul of what has now become a banking legend.
Following the Maharaja's words, the emblem was crafted to represent wealth, safety, industrial
development and an inclination to better and promote the country's agrarian economy. This
emblem shows a coin, symbolizing wealth, embossed with an upraised palm, a safety cover for
the depositor's money, with a cogwheel that promotes industrial growth in tandem with the two
corn ears that stand for the progress of the staple agricultural growth in the country.
Since its inception in 1908 in Gujarat, the bank had the logo of an industrial and agriculture
wheel with Sanskrit letters - `Akshayam te Bhavishyati' (the future is secure).
No history is complete without mention of its heroes, mostly ordinary people, who turn in extra-
ordinary performances and contribute to building an institution. There were also the leaders, both
corporate and royal, who provided the vision and guided the Bank through trail blazing years,
and departing, left behind footprints on the sands of time. This Roll of Honor will be incomplete
without mention of men, of the stature of Maharaja Sayajirao Gaekwad, Sampatrao Gaekwad,
Ralph Whitenack, Vithaldas Thakersey, Tulsidas Kilachand and NM Chokshi.
Between 1913 and 1917, as many as 87 banks failed in India. Bank of Baroda survived the crisis,
mainly due to its honest and prudent leadership. This financial integrity, business prudence,
caution and an abiding care and concern for the hard earned savings of hard working people,
were to become the central philosophy around which business decisions would be effected. This
cardinal philosophy was over the 94 years of its existence, to become its biggest asset. It ensured
that the Bank survived the Great War years. It ensured survival during the Great Depression.
The bank grew domestically until after World War II. Then in 1953 it crossed the Indian Ocean
to serve the communities of Indians in Kenya and Uganda by establishing a branch each in
Mombasa and Kampala. The next year it opened a second branch in Kenya, in Nairobi, and in
1956 it opened a branch in Dar-es-Salaam. Then in 1957 BoB took a giant step abroad by
establishing a branch in London which was the center of the British Commonwealth and the
most important international banking center. In 1958 BoB acquired Hind Bank which was its
first domestic acquisition. In 1961 it merged New Citizen Bank of India which helped to increase
its branches in Maharashtra. In 1960’s it opened new branches in Fiji and Mauritius and
expanded its operation to Tamil Nadu.
In 1969 the Indian government nationalized 14 top banks, including BoB subsequent to which it
became state owned banking company.
Even while big names were dragged into the Stock Market scam and the Capital Market scam,
the Bank of Baroda continued its triumphant march along the best ethical practices and has
managed to insulate itself away from fatal transactions and has strictly adhered to the RBI
B. COMPANY PROFILE:
With over 5000 branches globally and staff strength of over 42,000 BoB has continued to retain
its leadership position amongst the nationalized banks. The Bank enjoys strong fundamentals,
large franchise value and good brand image. Story of Bob is scripted in corporate wisdom and
social pride. It is a story crafted in private capital, princely patronage and state ownership. It is a
story of ordinary bankers and their extraordinary contribution in the ascent of Bank of Baroda to
the formidable heights of corporate glory. It is a story that needs to be shared with all those
millions of people - customers, stakeholders, employees & the public at large - who in ample
measure, have contributed to the making of an institution.
Based on 2014 data, the bank is ranked 801 on Forbes Global 2000 list.
Ever since it’s rebranding in 2005, Bank has consistently promoted its major strengths viz. large
international presence; technological advancement and superior customer service etc. Bank had
introduced the sub brand BARODA NEXT-State of the Art-Straight from the Heart to showcase
how it has utilized technology to nurture long term relationships for superior customer
experience. The sub brand has been reinforced by alternate delivery channels such as internet
banking, ATMs, mobile banking etc and robust delivery outfits like Retail Loan Factories, SME
Loan Factories, City Sales Office etc. Bank’s constant endeavor to strengthen its branch/ATM
network combined with well informed staff offering personalized service at its various touch
points have enhanced customer interactions and satisfaction. Thus the Bank has firmly
positioned itself as a technologically advanced customer-centric bank.
It won best Public Sector Bank award at MCX and CNBC–TV18, India’s No. 1 Business
medium presented for the first time, the ‘India Best Banks and Financial Institutions Awards’ to
felicitate India’s best financial professionals for their contribution in building a robust financial
system in 2011.It won first prize under Indira Gandhi Rajbhasha Shield Competition in 2012.
It was in 2005 when Bob went in for rebranding by spending about Rs.800 million on a high
profile rebranding campaign which included Rs.50 million spent on appointing the then Indian
cricket team's captain, Rahul Dravid as its Brand ambassador and a punch line "India's
International Bank" added to the campaign. In the same year it built a Global Data Centre in
Mumbai for running its centralized banking solution (CBS) and other applications in more than
1,900 branches across India and 20 other counties where the bank operates. The bank also
changed its decade long logo which comprise dual ‘B’ letterforms that hold the rays of the rising
sun which is called the Baroda Sun implying that the bank seek to be the source that will help all
the stakeholders realize their goals. The single-colour, compelling vermillion palette was
carefully chosen, for its distinctiveness as it stands for hope and energy.
The bank is the first among Public Sector Banks in India, to introduce and implement extended
working hours like 12-Hour Banking and 24-Hour Banking. The bank also introduced the unique
concept of Happy Hour banking which is designed to encourage customers to avail certain
services during lean business hours of the branch by providing them incentives, gifts as well as
concessions in service charges etc. This facility is available from 5 p.m. to 8 p.m. at 24 hour
banking branches and from 6 p.m. to 8 p.m. at 8 am to 8 pm branches.
After a century now, the bank has its presence in 25 countries across the world. Besides, the
Bank of Baroda possess about 495 urban and 561 semi-urban branches throughout the country
and about 63 branches in the foreign countries.
C. TIMELINE OF THE BANK:
Below are some of the important landmarks in the history of the bank.
1908: Maharaja Sayajirao Gaekwad III set up Bank of Baroda (BOB).
1910: established its first branch in Ahmedabad.
1953: established a branch in Mombasa and another in Kampala.
1959: acquired Hind Bank.
1961: merged in New Citizen Bank of India. This merger helped it increase its branch network
1963: acquired Surat Banking Corporation in Surat, Gujarat.
1964: acquired two banks, Umbergaon People’s Bank in southern Gujarat and Tamil Nadu
Central Bank in Tamil Nadu state.
1969: The Government of India nationalized 14 top banks, including BOB
1975: Acquired the majority shareholding and management control of Bareilly Corporation
Bank (est. 1928) and Nainital Bank (est. in 1954), both in Uttar Pradesh.
1991: Took over London branches of Union Bank of India and Punjab & Sind Bank.
1996: Entered Capital Market in an IPO.
1998: BOB also acquired Punjab Cooperative Bank in a rescue.
1999: BOB merged in Bareilly Corporation Bank in another rescue and also incorporated its
branch in Guyana and Mauritius.
2002: Got listed on the Uganda Securities Exchange.
2005: Rebranding and acquiring new logo.
2007: In its centenary year, BOB total business crossed 2.09 lakh crores, its branches crossed
2000, and its global customer base 29 million people.
2010: Bank of Baroda registered with the Reserve Bank of New Zealand, enabling it to trade as a
bank in New Zealand.
At Bank of Baroda, change is a journey. It has a beginning but there will be no end,as it stands
on the threshold of a digital era, to echo the same sentiments that guided the Bank in its platinum
jubilee year - 'a promising future is the sequel to a glorious past'.
D. MISSION OF THE BANK:
To be a top ranking National Bank of International Standards committed to augmenting stake
holders' value through concern, care and competence.
E. PRODUCTS AND SERVICES OF THE BANK
BoB has a wide variety of products and services that meet diverse requirements of its vast
customer base. Some of the products provided by bank of Baroda in banking services are as
• Gen-Next Service.
• Retail Loans.
• Credit Cards.
• Debit Cards.
• Loans and Advances.
• Internet Banking.
• Mobile Banking.
• ATM/Debit Cards.
• Rail Ticket.
• Baroda eShopee.
• Baroda Instapay.
• Baroda easy pay.
Some of the important rewards received by the bank in last 2 years are as follows:
• Best Public Sector Bank under the category ‘Global Business Development’ by Dun &
Bradstreet – Polaris Financial Technology Banking Awards 2013.
• Banking Technology Excellence Award 2013 among PSBs by IDRBT.
• Bank was awarded 1st Rank in the Public Sector Bank Category in Financial Express -
Ernst & Young Best Banks Survey 2012-13 published in The Financial Express Magazine,
March 2014 issue.
• MSME Banking Excellence Award-2013 as the Best Bank in MSME by the Chamber of
Indian Micro Small and Medium Enterprises.
• The Sunday Standard Best Banker’s Award – Best Banker-HR constituted by The New
Indian Express Group.
• ASSOCHAM 9th Annual Banking Summit –cum-Social Banking Award 2013-Winner in
Public Sector Banks Category in the field of ‘Social Banking’.
• “Excellence in Home Loan Banking” Award by My FM Stars of the Industry.
• The ‘Global Excellence and Leadership Award’ in the category of 50 most talented CSR
Professionals of India by the World CSR Congress.
G. SUBSIDIARIES OF BANK OF BARODA
Bob has established presence in all the major areas of banking including housing finance, credit
cards, asset management and capital market through its various subsidiaries which function in
synergy with the Bank. This diversified presence places the Bank in a position to move towards
the concept of Universal Banking.
Following are the Domestic Subsidiaries of BoB
• BOBCARDS Ltd.
• BOB Capital Markets Ltd.
• Nainital Bank Ltd.
• BOB Housing Finance Ltd.
• BOB Asset Mgmt. Co. Ltd.
BoB has following international subsidiaries
• BOB (Botswana) Ltd.
• BOB (Kenya) Ltd.
• BOB (Uganda) Ltd.
• BOB (Hong Kong) Ltd.
• BOB (Guyana) Inc.
• BOB (UK) Ltd
H. JOINT VENTURES OF BANK OF BARODA
Besides above subsidiaries Bob also has entered into Joint Ventures which are
Domestic Joint Ventures:
• Baroda Pioneer Asset Management Company Ltd
• India First Life Insurance Company Limited
• Baroda Uttar Pradesh Gramin Bank
• Baroda Rajasthan Gramin Bank
• Baroda Gujarat Gramin Bank
• Nanital -Almora Kshetriya Gramin Bank
• Jhabua-Dhar Kshetriya Gramin Bank
International Joint Ventures:
• Indo-Zambia Bank Ltd. (Lusaka)
• India International Bank Malaysia Berhad
CONSOLIDATED BALANCE SHEET OF BoB FOR THE YEAR ENDED 31ST MARCH
Capital and Liabilities: in Rs. Cr.
Total Share Capital 430.68
Equity Share Capital 430.68
Preference Share Capital 0.00
Revaluation Reserves 0.00
Net Worth 37,846.83
Total Debt 616,973.36
Minority Interest 158.41
Policy Holders Funds 0.00
Group Share in Joint Venture 0.00
Other Liabilities & Provisions 21,135.52
Total Liabilities 676,114.10
in Rs. Cr.
Cash & Balances with RBI 19,444.73
Balance with Banks, Money at Call 114,910.94
Gross Block 2,849.30
Accumulated Depreciation 0.00
Net Block 2,849.30
Capital Work In Progress 0.00
Other Assets 13,080.90
Minority Interest 0.00
Group Share in Joint Venture 0.00
Total Assets 676,114.10
Contingent Liabilities 292,860.91
Bills for collection 17,531.43
Book Value (Rs) 881.36
CONSOLIDATED PROFIT & LOSS STATEMENT OF BoB FOR THE YEAR ENDED
in Rs. Cr.
Interest Earned 40,462.89
Other Income 5,555.15
Total Income 46,018.04
Interest expended 27,604.43
Employee Cost 4,334.61
Selling and Admin Expenses 0.00
Miscellaneous Expenses 8,779.66
Preoperative Exp Capitalized 0.00
Operating Expenses 7,592.29
Provisions & Contingencies 5,890.09
Total Expenses 41,086.81
STAND ALONE CASH FLOW STATEMENT OF BoB FOR THE YEAR ENDED 31ST
in Rs. Cr.
Net Profit Before Tax
Net Cash From Operating Activities
Net Cash (used in)/from Investing Activities
Net Cash (used in)/from Financing Activities
Net (decrease)/increase In Cash and Cash Equivalents
Opening Cash & Cash Equivalents
Closing Cash & Cash Equivalents
METHODS OF FINANCIAL DATA ANALYSIS
A number of methods can be used for the purpose of analysis of financial statements. These are
also termed as techniques or tools of financial analysis. Out of these, an enterprise can choose
those techniques which are suitable to its requirements. The principal techniques of financial
a. Ratio Analysis
b. Comparative Financial Statements.
c. Trend Analysis.
d. Cash Flow Analysis.
e. Common size Statement.
Ratio Analysis is a form of Financial Statement Analysis that is used to obtain a quick indication
of a firm's financial performance in several key areas. It compares relationships between
financial statement accounts to identify the strengths and weaknesses of a company. Absolute
figures expressed in financial statements by themselves are meaningfulness.
TYPES OF RATIOS:-
ADVANTAGES OR USES OF RATIO ANALYSIS:-
Ratios are worked out to analyze the following aspects of business organization-
Simplifies the financial statements
Helps in trend analysis
Judging Efficiency and Locating Weakness
LIMITATION OF RATIO ANALYSIS:-
False accounting data gives false ratios
Comparisons not possible if different firms adopt different accounting policies or operate in
different environmental conditions
Ratio analysis becomes less effective in dynamic environment.
Ratios may be misleading in the absence of absolute data.
CLASSIFICATION OF RATIOS:-
BASED ON FINANCIAL STATEMENT:-
1] Balance sheet ratio.
2] Revenue ratio.
3] Composite ratio.
BASED ON FUNCTION:-
1] Liquidity ratios.
2] Leverage ratios.
3] Activity ratios.
4] Profitability ratios.
5] Coverage ratios.
RATIO ANALYSIS OF BoB(Consolidated)
PER SHARE RATIOS
Adjusted EPS (Rs.) 114.84
Adjusted Cash EPS (Rs.) 123.41
Reported EPS (Rs.) 116.45
Reported Cash EPS (Rs.) 125.03
Dividend Per Share 0
Operating Profit Per Share (Rs.) 131.21
Book Value (Excl Rev Res) Per Share (Rs.) 881.36
Book Value (Incl. Rev Res) Per Share (Rs.) 881.36
Net Operating Income Per Share (Rs.) 942.28
Free Reserves Per Share (Rs.) 0
Operating Margin (%) 13.92
Gross Profit Margin (%) 13.01
Net Profit Margin (%) 10.86
Adjusted Cash Margin (%) 11.51
Adjusted Return On Net Worth (%) 13.02
Reported Return On Net Worth (%) 13.21
Return On long Term Funds (%) 88.78
Long Term Debt / Equity 0
Total Debt/Equity 15.32
Owners fund as % of total Source 6.12
Fixed Assets Turnover Ratio 0.06
Current Ratio 0.61
Current Ratio (Inc. ST Loans) 0.02
Quick Ratio 20.64
Inventory Turnover Ratio 0
Dividend payout Ratio (Net Profit) 21.67
Dividend payout Ratio (Cash Profit) 20.18
Earning Retention Ratio 78.03
Cash Earnings Retention Ratio 79.56
Adjusted Cash Flow Time Total Debt 109.45
Financial Charges Coverage Ratio 1.41
Fin. Charges Cov. Ratio (Post Tax) 1.19
Material Cost Component(% earnings) 0
Selling Cost Component 0
Exports as percent of Total Sales 0
Import Comp. in Raw Mat. Consumed 0
Long term assets / Total Assets 0.9
Bonus Component In Equity Capital (%) 0
COMPARATIVE FINANCIAL STATEMENTS
When financial statements figures for two or more years are placed side-side to facilitate
comparison, these are called ‘comparative Financial Statements’.
Such statements not only show the absolute figures of various years but also provide for columns
to indicate to increase or decrease in these figures from one year to another. In addition, these
statements may also show the change from one year to another on percentage form. Such
cooperative statements are of great value in forming the opinion regarding the progress of the
PURPOSE OR UTILITY OR IMPORTANCE OF COMPARATIVE
i. To make the Data simpler and more understandable.
ii. To indicate the Trend.
iii. To indicate the strong points weak points of the concern.
iv. To compare the firms performance with the average performance of the industry.
v. To help in forecasting.
COMPARATIVE BALANCE SHEET:-
The Comparative Balance Sheet as on two or more different dates can be prepared to show the
increase or decrease in various assets, liabilities and capital. Such a comparative Balance Sheet is
very useful in studying the trends in a business enterprise.
ADVANTAGES OF COMPARATIVE BALANCE SHEET:-
i. Helpful for comparison.
ii. Helpful for various stakeholders in knowing growth of the company.
COMPARATIVE CONSOLIDATED BALANCE SHEET OF BoB
Particulars Mar '14 Mar '13 Inc/Dec(Rs) Inc/Dec (%)
Capital and Liabilities:
Total Share Capital
430.68 422.52 8.16 1.93
Equity Share Capital
430.68 422.52 8.16 1.93
37,416.15 32,859.25 4556.9 13.87
37,846.83 33,281.77 4565.06 13.72
5,79,997.06 4,82,638.89 97358.17 20.17
36,976.30 26,552.94 10423.36 39.26
6,16,973.36 5,09,191.83 107781.5 21.17
158.41 110.05 48.36 43.94
Other Liabilities & Provisions
21,135.52 16,804.67 4330.85 25.77
6,76,114.12 5,59,388.32 116725.8 20.87
Cash & Balances with RBI
19,444.73 14,151.18 5,293.55 27.22
Balance with Banks, Money at
Call 1,14,910.94 73,550.88 41,360.06 35.99
4,03,715.37 3,33,625.20 70,090.17 17.36
1,22,112.86 1,25,617.05 -3,504.19 -2.87
2,849.30 2,550.43 298.87 10.49
Accumulated Depreciation 0 0 0 0
2,849.30 2,550.43 298.87 10.49
13,080.90 9,893.59 3,187.31 24.37
6,76,114.10 5,59,388.33 1,16,725.77 17.26
COMPARATIVE PROFIT & LOSS ACCOUNT:-
• Profit and loss account shows the net profit or net loss of a particular year whereas
comparative profit and loss account for a number of years provides the following
information1.Rate of increase or decrease in gross profit.
• Rate of increase or decrease in operating profit.
• Rate of increase or decrease in cost of goods sales.
• Rate of increase or decrease in net profit.
• Rate of increase or decrease in sales.
COMPARATIVE CONSOLIDATED PROFIT & LOSS STATEMENT
Mar '14 Mar '13 Inc/Dec(Rs) Inc/Dec (%)
Interest Earned 40,462.89 36,442.06 4,020.83 11.03
Other Income 5,555.15 4,510.62 1,044.53 23.16
Total Income 46,018.04 40,952.68 5,065.36 12.37
Interest expended 27,604.43 24,486.41 3,118.02 12.73
Employee Cost 4,334.61 3,615.95 718.66 19.87
Selling and Admin
Expenses 0 0 0 0
Depreciation 368.11 321.7 46.41 14.43
Miscellaneous Expenses 8,779.66 7,778.14 1,001.52 12.88
Operating Expenses 7,592.29 6,306.36 1,285.93 20.39
Contingencies 5,890.09 5,409.43 480.66 8.89
Total Expenses 41,086.81 36,202.20 4,884.61 13.49
Net Profit for the Year 4,931.24 4,750.48 180.76 3.81
Minority Interest 35.68 24.79 10.89 43.93
Share Of P/L Of
Associates -105.17 -78.54 -26.63 33.91
Net P/L After Minority
Interest & Share Of
Associates 5,000.73 4,804.23 196.50 4.09
Profit brought forward 281.19 178.73 102.46 57.33
Total 5,212.43 4,929.21 283.22 5.75
Equity Dividend 1,083.68 1,059.63 24.05 2.27
Earning Per Share
(Rs) 114.84 112.77 2.07 1.84
Book Value (Rs) 881.36 790.06 91.30 11.56
Transfer to Statutory
Reserves 3,782.39 3,642.14 140.25 3.85
Transfer to Govt 1,083.68 1,059.63 24.05 2.27
Balance c/f to Balance
Sheet 415.85 281.19 134.66 47.89
Total 5,281.92 4,982.96 298.96 6.00
Trend analysis are very useful is making comparative study of the financial statements for a
number of years. These indicate the direction of movement over a long time and help an analyst
of financial statements to form an opinion as to whether favorable or unfavorable tendencies
have developed. This helps in future forecasts of various items.
KEY BUSINESS ANALYSIS
Total assets and total asset turnover ratio
As we can see in below graph, the Total Assets have increased gradually over the year.
The Asset Turnover ratio is an indicator of the efficiency with which a company is deploying its
assets. It measures the ability of a company to use its assets to efficiently generate sales.
This ratio considers all assets, current and fixed. Those assets include fixed assets, like plant and
equipment, as well as inventory, accounts receivable, as well as any other current assets.
The higher the ratio indicates that the company is utilizing all its assets efficiently to generate
sales. Companies with low profit margins tend to have high asset turnover.
As we can see that the Asset turnover ratio is steady between 0.06 to 0.08 over last 5 years, it
increased in 2011 and 2012 and dipped back in 2013 only to remain steady in 2014.
Profit Before Tax(PBT) and Profit After Tax(PAT)
Just like Asset Turnover ratio the Profit increased steadily in 2011&2012 only to fall in 2013.
The graph visually shows how the net profit of the company stand reduced due to the impact of
Net Interest income
It is the difference between interest payments the company receives on loans outstanding and
interest payments the company makes to customers on their deposits. The same has gradually
increased over the last 5 years.
Networth is the difference between a company's total assets and its total liabilities. It is also
known as shareholder`s equity.
As we can see, the same has gradually increased over the year
Dividend is a payment made by a company to its shareholders usually as a distribution of profits.
When a company makes profit it can either re-invest it in the business or it distributes it to its
shareholders by way of dividends. The dividend payout ratio is the amount of dividends paid to
shareholders relative to the amount of total net profit of a company.
As we can see Equity Dividend has increased over the period. As Net profit reduced in 2013 and
Dividend increased resulting in steep rise in equity dividend ratio.
Book value is a company's assets minus its liabilities. In simple terms it would be the amount of
money that a share holder would get if a company were to liquidate.
Book value appeals more to value investors who look at the relationship to the stock's price by
using the Price to Book ratio.
As we can see the same has increased gradually over the year which is good sign.
Deposit and Advance
Deposits are liability to banks, which need money to lend. It is the amount kept with the bank
subject to some regulatory compliance. In turn, banks pay interest on deposits. It is considered
the safest form of investment. Deposits are of two types current and savings deposits (CASA) as
well as term deposits.
Advance is the amount that banks lend to individuals and companies. They charge interest on
loans. Interest rates vary depending on the terms and conditions of such credit. Banks raise
money to lend through different sources like deposits, money market and so on.
The difference between credit and deposits is expressed as CD ratio in banking parlance. Neither
an extreme lower nor higher CD ratio is good for banks. Generally, a high CD ratio means credit
growth is higher than deposit growth. Alternatively, it also suggests, banks may be hiring more
from debt market than deposits. A lower CD ratio means, deposit growth is higher than credit
As we can see in below graph both Deposit and Advances have increased gradually with
difference remaining more or less the same.
Capital Adequacy Ratio
Capital Adequacy Ratio (CAR) is the measure of a bank's capital and expressed in percentage
term. In simple terms, this capital is set aside by banks to protect depositors. A lower CAR
means a bank is prone to the risk of going burst in case of any crisis. However, a very high CAR
means, the bank is not doing enough business.
As we can see that CAR of bank has reduced in last 2 year which means its expanding its
business.As of Mar-14 its steady at 12.28%
As we can see the % of NPA have increased over the years implying risk for the bank but
despite of this fact the overall NPA% remains one of the least in the PSU banks.
(As on 31st March'14)
FINDINGS AND SUGGESTIONS
Total Business (Deposit+Advances) increased to Rs 9,65,900 crore reflecting a growth of
20.43% (y-o-y) supported by 20.1% in global deposits and 21.0% growth in global
advances despite sluggish economic environment.
Advances 3,28,185.77 3,97,005.81 20.97
- Domestic 2,24,294.33 2,72,168.96 21.34
- Overseas 1,03,891.44 1,24,836.85 20.16
Deposits 4,73,883.34 5,68,894.39 20.05
- Domestic 3,41,705.59 3,79,054.04 10.93
- Overseas 1,32,177.74 1,89,840.35 43.62
Credit-Deposit Ratio stood at 86.15% as against 82.03% last year.
Retail Credit posted a growth of 20.96% constituting 16.6% of Bank’s Gross Domestic
Credit in FY14.
Gross Profit and Net Profit were Rs 9,291 crore and Rs 4,541 crore respectively. Net Profit
registered a growth of 1.35% over the previous year.
Bank earned a Profit after Tax (PAT) of Rs 4,541.08 crore after deducting Rs 1,386.68
crore of unallocated expenditure and Rs 956.23 crore towards provision for tax.
An amount of Rs 3,457.40 crore was transferred to reserves from the profits earned.
Stand alone total income during FY’14 rose by 11.78 % to Rs. 43402 crore due to a growth
of 10.63% in Interest Income.
• ASSET QUALITY:-
The ratio of Gross NPA to Gross Advances was at 2.94%.
Net NPAs to Net Advances stood at 1.52% this year against 1.28% last year.
Both the Gross NPA as well as Net NPA are one of the lowest in the large-sized public
sector banking space.
The cash recovery in NPA accounts during FY14 was Rs 1,261.81 crore, higher than the
cash recovery of Rs 625.57 crore during FY13
As a part of strategy suggested by the RBI for NPA management, Bank sold 23 NPL (NPA
& Write Off accounts) accounts with aggregate outstanding balance of Rs 671.27 crore to
The “asset classification-wise” breakup of advances portfolio is as under.
Standard 3,91,823.53 3,24,828.74
Gross NPA 11,875.90 7,982.58
Total 4,03,699.43 3,32,811.32
Gross NPA are further comprised of
Sub-standard 3,809.20 4,981.15
Doubtful 6,863.10 2,628.33
Loss 1,203.60 373.1
Total Gross NPA 11,875.90 7,982.58
Provision Coverage ratio also improved to 65.45% in Mar’14 from 61.68% in
Sep’13,however the same was less than mandated norm of 70% set by the RBI due to a
steep rise in NPAs and higher provisioning.
• COMMENTS ON RATIOS:-
Net Interest Margin (NIM) as per cent of interest earning assets in global operations was at
the level of 2.36% and in domestic operations at 2.87% during FY14.
Healthy mobilization of domestic CASA deposits at the rate of 16.0% (y-o-y) and shedding
of high-cost preferential deposits were the reasons of the same.
Return on Average Assets stood at 0.75% for FY’14.
Cost of Deposit stood at 5.38% for Mar’14 as against 5.80 for Mar’13
Cost Income ratio stood at 43.44 % in Mar’14 as compared to 39.79 for Mar’13
Return on Net worth stood at 13.00% for Mar’14 as against 14.59 for Mar’13
Earnings Per Share was Rs.107.38 in Mar’14 and Rs.108.84 in FY ended Mach’13.
Book Value per Share improved to Rs 813.50 in March’14 as against Rs.729.11 in
CRAR of the bank was comfortable at 12.88% under BASEL-II (Tier-I Capital: 9.54%;
Tier-II Capital: 3.34%) which reflects the capital strength of the bank.
Book value of Share is consistently increasing over Years .
Bank’s international business too grew at a stronger pace of 33.3% (y-o-y), partly driven by
massive rupee depreciation during FY14.
Business per Employee moved up from Rs 16.89 crore to Rs18.65 crore on year by year
Business per Branch moved up from Rs 184.98 crore to Rs 195.76 crore on year by year
• PRIORITY SECTOR & MSME ADVANCES:-
Bank has always been a frontrunner in the area of Priority Sector and Agriculture lending
through its wide network of 1,781 rural branches and 1,267 semi-urban branches.
Priority Sector Advances of your Bank surged from Rs 80,003 crore as on March 2013 to
Rs 90,488 crore as on March 2014 and formed 40.02% of the Adjusted Net Bank Credit
(ANBC) against the mandated target of 40.00%.
The MSME advances of Rs 56,634 crore as of end-Mar 2014 reflected a growth of Rs
9,912 crore (21.21%) over the MSME advances in the previous year
MSME Credit posted a growth of 21.21% constituting 20.3% of Bank’s Gross Domestic
Credit in FY14.
Under its flagship agriculture loan product “Baroda Kisan Credit Card (BKCC)”, Bank
issued as many as 2,47,796 Credit Cards during FY14 to provide credit to farmers across
India. Baroda Kisan RuPay Card, an ATM enabled smart Card, has been issued to 3,30,257
BKCC holders for their convenience.Bank financed as many as 2,95,743 new farmers
during FY14 granting them loans worth Rs 4,505.55 crore.
As a part of its microfinance initiatives, your Bank credit linked 11,908 Self Help Groups
by granting loans amounting to Rs 198.03 crore during FY14.
Through Baroda Swarojgar Vikas Sansthans (BSVS) ,Bank has also been giving due
preference to SC/ST communities while selecting the trainees.
• INTERNATIONAL FORAYS:-
Bank retained its market position as one of the leading Indian banks in providing services
to the customers across the globe.
Bank further spread its presence in UAE, Tanzania and Uganda by opening an additional
branch in each of these three countries.
Bank’s international presence covers 24 countries through its 102 branches/offices as
Branches/ Offices 60
The Bank also has following Joint Ventures/ Associates:
1. Indo Zambia Bank Ltd., Zambia having 25 branches.
2. India International Bank (Malaysia) Bhd., Malaysia having one branch.
During FY14, Bob opened three new overseas branches/offices. An Electronic Banking
Service Unit at Shabiya, UAE was also made operational during the year.
2 branches of the subsidiaries were opened at Kariakoo in Tanzania and Kololo in Uganda.
Bank has further plans for expansion in upcoming centers in the countries where Bank is
already present. Bank also has plans to enter new countries offering opportunities for
profitable growth of business.
Necessary infrastructure is being created for further expanding the network in UAE, UK,
Kenya, Tanzania and Ghana.
Internet banking (Baroda Connect) is implemented in 14 overseas territories/ subsidiaries.
viz 1.UAE, 2. United Kingdom 3. Oman, 4. Mauritius, 5. Fiji 6.Seychelles, 7. Australia
(View) 8.Kenya, 9.Uganda, 10.Botswana, 11.New Zealand, 12. Ghana. 13. Tanzania (View
Based) 14. USA (View Based). The USA territory has been added in this financial year and
internet banking implementation is in progress for Trinidad & Tobago and Guyana
Subsidiaries and will be made live in the next financial year.
Implementation for sending SMS alert for all transaction is in progress for six territories/
subsidiaries. (Fiji, Guyana, Uganda, Botswana, China, and Kenya).
Bank’s Global Syndication Centre at London and Regional Syndication Centres at Dubai
and Singapore specially focus on the business of Syndication Loans in International
Market. Your Bank has also set up an International Merchant Banking Cell (IMBC) at
Corporate Office, Mumbai, which mainly caters to the requirements of Indian corporates
and also supports the regional syndication centres to canvass business from Indian
corporates who are in need of foreign currency resources.
International Operations contributed a sizeable 32.6% to Bank’s global business.
• The bank should adopt a procedure of obtaining details of loans from other banks before
sanctioning credit, Bob should insist on a clearance certificate stating that no loan is overdue
to any bank of institution.
• The Bob should also reach out to the corporate client for financing their working capital and
• Bank must try to reduce its NPA as there is steep rise in Doubtful and Loss Category of
NPA. Efforts should be made to organize an effective credit collection department.
• There is an increase in deposit in BoB so it must take necessary steps to increase the
percentage of profit by increasing lending to corporate and big clients..
• BoB must increase the percentage of loan amount on the fixed deposits.
• BoB should take an initiative to achieve their future goals and plans.
• Capacity Building is another area where BoB has to invest significantly.
• Provision Coverage ratio needs to be improved.
Bank of Baroda was recognized by Dun & Bradstreet as the Best Public Sector Bank under the
category ‘Global Business Development’ at Polaris Financial Technology Banking Awards
2013.. Bank won a Special Award for Best IT Team among Public Sector Banks at IDRBT
Banking Technology Excellence Awards 2012-13. Bank has been pioneer in spreading and
promoting the use of Hindi through the forum of Nagar Rajbhasha Samitis and has won Reserve
Bank Rajbhasha Competition on Aug-13.
Bank constantly innovates, reorients strategies and realigns business processes with advanced
technology to serve the customers better and earn strong brand. The Bank has identified “RACE
AHEAD” as its motto for the FY15 and it can not only achieve a significant business growth but
also improve its profitability and soundness indicators. With GDP growth expected to pick up,
banking business is likely to witness higher optimism during FY15.
BoB has always looked at technology as a key facilitator to provide better customer service and
ensured that its ‘IT strategy’ follows the ‘Business strategy’ to serve all stakeholders. To respond
to increasing competition and other challenges, Bank will make its business model more cost-
efficient and try to improve its Earnings through an optimum mix of interest income and non-
interest income. To achieve this, it will constantly optimise the use of technology as the change
agent. Boosted by robust economic growth, the bank expects to sustain and improve its
performance. Similar to its efforts to improve Asset Quality management in FY14, your Bank
will focus on credit monitoring, NPA recovery and up-gradation in a big way and further arrest
the fresh slippages. Bank proposes to launch ‘Adarsh Grameen Branches’ shortly. These
branches will be constructed by Bank on its owned plot of land in rural areas and will include
branch premises, manager’s residence and assembly areas. The assembly area will be having
audio-visual facilities to enable various activities like agri-clinic, vocational education, medical
camp etc. This endeavor will not only provide BoB to take forward the mission of Financial
Inclusion, but also generate a lot of goodwill. With its intrinsic strengths in the form of capital,
human resources, technology and iconic brand, Bob is well positioned for growth during FY15.
• Annual report of Bank of Baroda for 2014
• www. money.rediff.com