INDIAN EXPORT POLICIES- India's export finances involve various financial instruments and policies that are used to promote and facilitate the export of goods and services from the country. Some key aspects of Indian export finances include:  Export credit: o The government and commercial banks provide export credit to Indian exporters to help them finance their export activities. This credit is usually provided at a lower interest rate than the normal rate of interest. o Pre-shipment and post-shipment finance: Indian exporters can access pre-shipment and post-shipment finance to cover the cost of production and other expenses related to exporting.  Foreign exchange management: o The Reserve Bank of India (RBI) manages India's foreign exchange reserves and sets policies to ensure the stability of the rupee and facilitate exports.  Export promotion schemes: o The Indian government offers various export promotion schemes to encourage exports, such as the Merchandise Exports from India Scheme (MEIS) and the Services Exports from India Scheme (SEIS).  Duty drawback schemes: o The Indian government offers duty drawback schemes to refund certain duties and taxes paid on inputs used in the production of export goods.  Export-Import Bank of India (Exim Bank): o Exim Bank provides financial assistance to Indian exporters and importers, as well as financing for overseas projects.  Foreign Trade Policy (FTP): o The government of India announces Foreign Trade Policy every 5 years to provide the framework of the trade policies, procedures and incentives to boost exports. The Major Agricultural Commodities Exported From India Include: Year Agricultural Commodities Valued ($ billion) 2019-20 Basmati Rice 3 2019-20 Marine Products 6 2019-20 Cotton 2 2019-20 Oil Meals 1 2019-20 Pulses Lentils 1 Chickpeas 2019-20 Fruits and Vegetables Mangoes 2 Bananas Onion 2019-20 Spices Pepper 3 Ginger Turmeric Cardamom Marine Products: India's marine products exports have been increasing year by year. Basmati Rice: India is one of the largest exporters of Basmati Rice in the world. Fruits and Vegetables: India is a major exporter of fruits and vegetables. Cotton: India is one of the largest exporters of cotton in the world. Oil Meals: India is one of the largest exporters of oil meals. Pulses: India is a major exporter of pulses. Spices: India is a major exporter of spices. It is worth noting that the export figures are affected by many factors such as global demand, domestic production, competition from other countries, currency fluctuation, trade policies, among others. Recommendations for Indian agriculture export-  Focus on high-value crops: India should focus on exporting high-value crops such as fruits, vegetables, and flowers, as they fetch higher prices in the international market.  Improve infrastructure: The Indian agriculture sector needs to improve its infrastructure, such as cold storage facilities, transportation, and

1. assignment- CANARABANK TURNAROUND& RATIO ANALYSISOF CANARA& AXIS
BANK
SubmittedTo Prof. Rakesh Arrawatia
SubmittedBy Group no 1_Sec A
Salil (F2001)
Kundan (P42036)
Pravin (P42032)
Dhairya (P42015)
Dibyajyoti (P42183)
Dharampreet (P42016)
COMMERCIAL BANKING & RISK MANAGEMENT

2. Case
Overview
01
 Canara Bank has ranked among the top five public sector banks in India, since its establishment. It has finally begun to
recover from non-performing assets and low profitability after falling behind its rivals for a while. To achieve a stunning
turnaround in 2013–2014, the company's new chief executive officer brought vision, strategic direction, and enthusiasm to
the table. However, he now faces a number of important questions.
The questions to be analyzed are as follows-
 Should the bank launch an ambitious expansion of its branches, online services, information technology, and human
resources, based solely on the recent encouraging results?
 Is the management committee's optimism justified, given that several new initiatives are still at various stages of
implementation?
 Will this growth overstretch Canara Bank's already constrained resources?

3. CHALLENGES
• Needtoshoreuptheircapital
base
• Annualequityinfusionof₹160
billionto₹180billionfromGovt.
BASEL III
Regulator Req.
• GoBeyond40%
Extending the
reach
• Economic& legalhiton various
sectors
• Risein NPAsfrom3.4%to4%
Asset Quality
Deterioration
• Training of staff for new products
& technological advancement
Human Resource
Management
Deregulation Post 1991
• Diversification in non-traditional activities.
• Started offering suite of services
Statistics
• Sector Accounts for: 79.4%
• Valuation: Rs. 77 Trillion
• Annual Growth rate: 23%
• Profitability: 15%:
Economic Indicators
• GDP Growth deceleration
• Weak Industrial growth data
• Persistent inflation
INDIAN BANKING INDUSTRY

4. Key Challenges for Canara Bank
1. Increasing the Share of Retail Banking
(Interest cost on high cost deposits 10% Vs.
9% of industry)
Solution:
 Reject high-cost preferential deposits
(Loss of Rs.500 Billion in deposits which
will be replenished by retail deposits.
High-cost bulk deposits and CDs fell
from 44.75% to 15% by march 2014
 Low cost CASA deposits
2. Focus on Retail Credit
(Negative growth in previous 2 years)
Solutions:
 Building portfolio in home & Vehicle
loans
 Innovative retail product
 change the service delivery mechanism
through specialized retail outlets

5. Trust and
Dependability
BRAND IMAGE
Easy to use,
Competitive Pricing &
Consumer Centric
PRODUCT DESIGN • Recruited more than 9100 employees during
FY 2013-14
• Reduced average employee age to below 35
years.
• Trained employee for IT enabled processes
EMPLOYEE TRAINING
Low Pricing Strategy
(Festival Dhamaka
Offer)
PRICE
Outcomes of turnaround strategy

6. Outcomes of Turnaround Strategy
 Growth in deposit – 35
% (Rs. 1861 billion)
 Growth in advances –
45% (Rs. 1317 billion)
Branches 4755 (Rs.
Increase of 1027)
 ATMs 6312 (Increase of
2786)
 Yield on funds: Steady growth of
8.1-8.79%
 NPA level – 2.8%
(Industry average 4%)

7. Financial ratio Analysis of Canara Bank
INTERPRETATION OF RATIOS
ROE
• ROE is the measure of how efficiently the bank has used its equity to
generate profit.
• In the year 2018-19 it has higher ROE than the other two years, It is the
year in which has most efficiently utilized its equity.
• Canara bank has used its equity more efficiently in 2018-19 compared to
other two years.
ROA
• ROA is the measure of how efficiently the bank has used its asset to
generate profit.
• In the year 2018-19 it has higher ROA than the other two years, It is the
year in which has most efficiently utilized its asset.
• Canara bank has used its asset more efficiently in 2018-19 compared to
other two years.
Debt to Asset Ratio
• Debt to asset ratio is leverage ratio, it shows that assets being financed
using debt.
• It is decreasing year over year, which indicates that the less amount of
bank’s assets are financed using debt.
• In the year 2019-20 Canara bank has the lowest debt to asset ratio which
indicates that the bank has lower debt against assets owned by the bank.
• Lower debt to asset ratio indicates that the bank has lower financial risk.
It is on safer side.

8. Financial ratio Analysis of Axis Bank
INTERPRETATION OF RATIOS
Debt to Equity
• The debt to equity ratio shows the proportion of equity and debt a
company is using to finance its assets.
• The bank has highest debt to equity ratio in the year 2018-19, which
means the bank has financing from more debt than issuing shares of
equity.
• In the year 2018-19, Canara bank has the highest debt to equity ratio
which indicates it is financing through debt more than the equity of shares.
Debt to Capital
• Debt to capital ratio indicates the amount of debt taken by bank in
comparison of total capital.
• The bank has highest debt to capital ratio in the year 2018-19, which
means the bank the bank has taken more debt against the total capital.
• In the year 2018-19, The bank has the highest debt to capital ratio which
indicates it has more debt than the total capital.
Overhead Efficiency
• Overhead efficiency shows how much the bank is spending to
generate Rs. 1.
• It is decreasing over the years analyzed, which shows that the bank is
spending more money to generate a rupee.
• It has remained constant over the years, which indicates that the
bank is able to control the expenses to generate a rupee.

9. Financial ratio Analysis of Axis Bank
INTERPRETATION OF RATIOS
Yield Ratio
• It shows the amount of profit share in the form of dividend the bank
distributing among its shareholders against its share price.
• The ratio for the bank is increasing year over year, which indicates
that the bank is distributing more profit among its shareholders in the
form of dividends.
• The yield ration has increased for the bank. Which means that the
bank if giving more profit share to its shareholders.
Asset turnover ratio
• Measure the company’s efficiency in generating revenue from its
assets. Higher the ratio, more the efficiently bank is utilizing its assets
in generating revenue.
• The ratio has remained constant over the years and is lower
compared to Canara bank which has much higher ratio.
• Canara bank is able to use its assets more efficiently than the axis
bank in generating revenue.
CASA Ratio
• It indicates the how much of bank’s total deposits are in current and
saving account.
• Higher the ratio, lower the cost to the bank because on current
account bank doesn’t have to give interest.
• Axis bank has higher CASA ratio compared to Canara bank. This
mainly because of the business accounts it has due to its better
banking service quality compared to canara bank.

10. NPA ANALYSIS OF CANARA AND AXIS BANK
NPA Analysis 2017-18 2018-19 2019-20
Gross NPA 34248.64 29789.44 30233.82
Net NPA 16591.71 11275.6 9360.41
% of Gross NPA 6.77 5.26 4.86
% of Net NPA 3.4 2.06 1.56
NPA Analysis 2017-18 2018-19 2019-20
Gross NPA 47468.47 39224.12 37041.15
Net NPA 28542.4 22955.11 18250.95
% of Gross NPA 11.84 8.83 8.21
% of Net NPA 7.48 5.37 4.22
CANARA BANK AXIS BANK
 Gross NPA (GNPA) denotes the total of all the loan assets that haven't been repaid by the borrowers within the
ninety-day period.
 Net NPA (NNPA) is the amount remaining after deducting doubtful and unpaid debts from the GNPA. It is the actual
loss suffered by the bank. (Substandard + Doubtful + Loss) assets.
 After comparing NPA of Canara and Axis from FY 2017-18 to 2019-20, we obtained that Net NPA of Canara Bank is
higher than Axis Bank. It directly indicates that Axis bank has better risk management strategies.
 This also shows that Axis bank has comparatively better bank-led asset management, alternate investment fundings
and suitable platform to auction bad assets.
 However, both the banks shows a decrease in the Net NPA over 3 years periods.