Understanding and analyzing the current assests of Indian Overseas Bank for three years by Rayyan Furtado

1. UNDERSTANDING AND ANALYZING
THE CURRENT ASSESTS OF IOB FOR
THREE YEARS
COURSE : E-BANKING & FINANCE
CLASS : 1st SEM FINANCIAL ACCOUNTING
SECTION : A
Made By : Rayyan Furtado

2.  Current assets are important because they indicate
how much cash a company essentially has access to
within the next year outside of third-party sources.
 It is indicative of how the company funds its ongoing,
day-to-day operations, and how liquid a firm is.
 Current assets are cash and other assets expected
to be converted to cash or consumed in a year or in
the operating cycle.

3.  Short Term Investments- include securities
bought and held for sale in the near future to
generate income on short-term price
differences.
 Inventory- The inventory value reported on
the balance sheet is usually the historical cost
or fair market value, whichever is lower.
 Prepaid Expenses -these are expenses paid
in cash and recorded as assets before they
are used or consumed.

4.  Cash and equivalents-These assets are literally
money in the bank.
 Short-term investments-normally come into play
when a company has so much cash on hand that it can
afford to tie some of it up in bonds lasting 1 year.
 Accounts receivable-These are funds that customers
currently owe to a company.
 Inventories-These are the components and finished
products that a company has currently stockpiled to
sell to customers.

5. What It Is:
 A current asset is cash or any asset that can
be reasonably converted to cash within one
year.
 Current assets typically include categories
such as cash, marketable securities, short-
term investments, accounts receivable,
prepaid expenses, and inventory.

6. On the basis of the information above, it is observed
that-
 Total assets of the bank during the year 2012
are: Rs.219,648.17 (in Crores).
 Total assets during the year 2011 are
: Rs.178,784.27 (in Crores).
 Total assets during the year 2010 are
: Rs.131,096.40 (in Crores).

7. It is highly critical for a bank to correctly
balance assets and liabilities otherwise the
end result could be disastrous.
In IBO’s case, the bank is performing very
well since it has managed to almost double
its assets from the period of 2010-2012.

8.  Indian Overseas Bank is a significant
sized bank that offers a wide array of
banking solutions.
At the rate in which IOB is growing, there
is no doubt that it will be one of India’s
central banks in the near future.