Siby linson

A STUDY ON THE FINANCIAL PERFORMANCE OF
M/S. SOUTH INDIAN BANK LTD, THRISSUR

BY
MR. SIBY LINSON

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CHAPTER I
INTRODUCTION

1.1 INTRODUCTION:

The main role of a bank is to provide financial security and financial support

to its fellow customers. Bank provides a lot in the economic development of each and

every country. A modern industrial society cannot be run by self financing of

entrepreneurs. Some institutional assistance is necessary to mobilize the savings of the

community and to make them available to the entrepreneurs. The people a large

majority of who save in small odd lots also want an institution which can ensure

safety of their funds together with liquidity. Banks assure this with a further facility

that the funds can be drawn back in case of need.

From a broader social angle, banks act as a bridge between the users of capital

and those who save but cannot use the fund themselves. For activating and installing

the idle resources in a productive track both the private and public sector banks are

undergoing a cut throat competition. Even though the public sector banks are the back

bone of the Indian banking sector, the private sector banks is growing day by day and

they are considered as the energy packets to stimulate the economy. The objective

behind this study is to find the financial performance of M S South Indian Bank

Ltd. This analysis helps to find the banks financial strength and opportunities; on the

other hand it throws light on the financial weaknesses and threats. In the context of

financial performance it deals with the firm‟s capacity to raise, handle and use money.

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The traditional method of financial analysis is uses balance sheet and trading

& profit & loss account. The modern method for financial analysis is done by using

comparative statements, common size statements, schedule of changes in working

capital, ratio analysis, etc.

1.2 FINANCIAL ANALYSIS – a brief note

Financial Analysis is just playing with numbers. In the hands of an expert and

a motivated management, however, it can make the difference between the success

and failure of a business. The key to success in financial analysis is to first assess

the interest and needs of management by talking to them. Some owners and

managers are looking simply to maintain current operations until retirement. Others

hope to one day be the largest business in their industry. The more they are interested

in growth, the more analysis they will want.

Financial analysis (also referred to as financial statement analysis or

accounting analysis) refers to an assessment of the viability, stability and profitability

of a business, sub-business or project. It is performed by professionals who

prepare reports using ratios that make use of information taken from financial

statements and other reports. These reports are usually presented to top management

as one of their bases in making the following business decisions.

Continue or discontinue its main operation or part of its business;

Make or purchase certain materials in the manufacture of its product;

Acquire or rent/lease certain machineries and equipment in the

production of its goods;

Issue stocks or negotiate for a bank loan to increase its working capital;

Make decisions regarding investing or lending capital etc.
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1.3 IMPORTANCE

In a very real sense, finance is the language of business. Goals are set and

performance is measured in financial terms. From the very beginning Finance is

considered as the life blood of each and every business enterprise. If there is no sound

and efficient financial structure, then the firm will not have a prospective future. The

financial performance of an organization is a very important factor for the long run

survival and profitability function of any organization. The importance of financial

analysis is to diagnose the information contained in financial statements so as to judge

the profitability and financial soundness of the company. Financial analysis is the

starting point for making plans before using any sophisticated forecasting and

planning procedures. Considering this study a study of the performance of the bank

helps in analyzing the profitability of the bank and thereby the strength and

weaknesses of the bank. It also helps to understand the banking and organizational

operations.

1.4 OBJECTIVES OF THE STUDY

Primary objective

 To study the financial performance of The Bank.

Secondary objective

 To assess the profitability position of the bank

 To study the performance of investments of the bank

 To ascertain the liquidity position of the bank

 To examine the long term financial position of the bank

 To understand about the future prospects of the bank

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1.5 METHODOLOGY

The study is empirical in nature. It is based primarily on secondary data. The

data required for the study are collected from the published annual reports of the bank

for various years. Those which are not available from the annual reports are

collected through interviews with the executives and the public. Apart from

published annual reports of the bank data were also taken from published journals,

articles and other works of similar nature. A period of five years commencing from

2005-06 to 2009-10 is taken for the purposes of the study considering the nature of

the analysis and type of information. The collected data were analyzed and

interpreted using Comparative Statements, Common Size Statements and Ratios.

Graphs and diagrams were made use for better understanding and easy identification

of relationships.

1.6 LIMITATIONS OF THE STUDY

Time: An in-depth study or analysis is not possible because of the

limiting factor of time.

Window dressing: The research is done on the basis of some

financial statements which can be easily window dressed. So we

cannot rely on the results to a large extent.

Confidentiality of certain data: Some data available are

confidential in nature that can‟t be used effectively in this research.

Secondary data: The data used in this study have been taken from

published sources. So the reliability of this study is based on the

genuineness of published records.

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CHAPTER II

INDUSTRY PROFILE

2.1 DEFINITION OF BANKER

According to Macleod: "The essential business of a 'Banker' is to buy Money

and Debts by creating other Debts. A Banker is therefore essentially a dealer in Debts

or Credit”. Definition given by Indian Banking Regulation Act Section 5 (1) (c) of

the Indian Banking Regulation Act of 1949 (called the Indian Banking Companies

Act of 1949 before March, 1966) defines the term "banking company" as "any

company which transacts the business of banking in India." Section 5 (1) (b) of the

same Act defines the term "banking" as "accepting, for the purpose of lending or

investment of deposits of money from the public, repayable on demand or otherwise

and withdrawable by cheque, draft, order or otherwise."

This Act, besides stating the main banking activities, also enumerates in

Section 6, the various subsidiary services, such as the collection of cheques, drafts and

bills, remittance of funds, acceptance of safe-custody deposits, etc. that are performed

by a bank. This Act also stipulates that banking business should be the main business

of a bank. Again Section 7 of this Act requires that every banking company should

use as part of its name, the term 'bank', 'banker' or 'banking company'. According to

the definition given by the Indian Banking Regulation Act of 1949 the essential

characteristics of bank are:

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1. Acceptance of deposits from the public on current fixed and savings

bank accounts.

2. Allowing of withdrawals of those deposits by cheques drafts orders or

otherwise.

3. Utilization of deposits in hand for the purpose of lending or investment

in securities.

4. Performance of other activities called subsidiary services, in addition to

the principal activities of receiving of deposits and lending of funds.

5. Performance of banking business as the main business.

6. Using the term 'bank, 'banker' or 'banking company' as part of the

name.

The definition given by the Indian Banking Regulation Act of 1949

comprises all the essential features of a bank.

2.2 HISTORY OF INDIAS BANKING STRUCTURE

For the past three decades India's banking system has several outstanding

achievements to its credit. The most striking is its extensive reach. It is no longer

confined to only metropolitans or cosmopolitans in India. In fact, Indian banking

system has reached even to the remote corners of the country. This is one of the main

reasons of India's growth process. The government's regular policy for Indian bank

since 1969 has paid rich dividends with the nationalization of 14 major private banks

Of India.

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The first bank in India, though conservative, was established in 1786. From 1786 till

today, the journey of Indian Banking System can be segregated into three distinct

phases. They are as mentioned below:

Early phase from 1786 to 1969 of Indian Banks

Nationalization of Indian Banks and up to 1991 prior to Indian banking

sector Reforms.

New phase of Indian Banking System with the advent of Indian

Financial & Banking Sector Reforms after 1991.

Banking in India originated in the last decades of the 18th century. The first

banks were The General Bank of India, which started in 1786, and Bank of

Hindustan, which started in 1790; both are now defunct. The oldest bank in existence

in India 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. For many years the Presidency banks acted as quasi-central banks, as did

their successors. The three banks merged in 1921 to form the Imperial Bank of India,

which, upon India's independence, became the State Bank of 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 South Indian Bank, Bank of India, Corporation

Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India.

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Post-Independence

The partition of India in 1947 adversely impacted the economies of Punjab

and West Bengal, paralyzing banking activities for months. 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 economic life 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 state in

different segments of the economy including banking and finance. The major steps to

regulate banking included:

The Reserve Bank of India, India's central banking authority, was

nationalized on January 1, 1949 under the terms of the Reserve Bank

of India (Transfer to Public Ownership) Act, 1948 (RBI, 2005b)

In 1949, the Banking Regulation Act was enacted which empowered

the Reserve Bank of India (RBI) "to regulate, control, and inspect the

banks in India."

The Banking Regulation Act also provided that no new bank or branch

of an existing bank could be opened without a license from the RBI,

and no two banks could have common directors.

Nationalization

Despite the provisions, control and regulations of Reserve Bank of India,

banks in India except the State Bank of India or SBI, continued to be owned and

operated by private persons. By the 1960‟s, 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
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nationalization of the banking industry. Indira Gandhi, then Prime Minister of India,

expressed the intention of the Government of India in the annual conference of the All

India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization."

The meeting received the paper with enthusiasm.

Thereafter, her move was swift and sudden. The Government of India issued an

ordinance and nationalised the 14 largest commercial banks with effect from the

midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described

the step as a "masterstroke of political sagacity." Within two weeks of the issue of the

ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer

of Undertaking) Bill, and it received the presidential approval on 9 August 1969.

A second dose of nationalization of 6 more commercial banks followed in

1980. The stated reason for the nationalization was to give the government more

control of credit delivery. With the second dose of nationalization, the Government of

India controlled around 91% of the banking business of India. Later on, in the year

1993, the government merged New Bank of India with Punjab National Bank. It was

the only merger between nationalized banks and resulted in the reduction of the

number of nationalized banks from 20 to 19. After this, until the 1990s, the

nationalized banks grew at a pace of around 4%, closer to the average growth rate of

the Indian economy.

Liberalization

In the early 1990s, the then Narasimha Rao government embarked on a policy

of liberalization, licensing a small number of private banks. These came to be known

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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, Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This

move, along with the rapid growth in the economy of India, revitalized the banking

sector in India, which has seen rapid growth with strong contribution from all the

three sectors of banks, namely, government banks, private banks and foreign banks.

Business significance of banks:

Capital formation is the basic requirement of economic development

For implementation of effective monetary policy

The development of commercial banking strengthens the link between

the organized and the unorganized sectors of the money market.

Developing basic sectors such as agriculture, SSI‟s and rural

industries.

2.3 BANKING SERVICES:

Most of our commercial banks offer the following services. This includes both

primary as well as secondary services.

1. Primary services:

 Accepting deposits: The most important activity of a commercial bank is to

mobilize deposits from the public. People who have surplus income and

savings find it convenient to deposit the amounts with banks. Depending upon

the nature of deposits, funds deposited with bank also earn interest. Thus,

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deposits with the bank grow along with the interest earned. If the rate of

interest is higher, public are motivated to deposit more funds with the bank.

 Granting loans and advances: The second important function of a

commercial bank is to grant loans and advances. Such loans and advances are

given to members of the public and to the business community at a higher rate

of interest than allowed by banks on various deposit accounts. The rate of

interest charged on loans and advances varies depending upon the purpose,

period and the mode of repayment. The difference between the rate of interest

allowed on deposits and the rate charged on the Loans is the main source of a

bank‟s income.

2. Secondary services

 Issuing letters of credit, travellers cheques, circular notes etc.

 Undertaking safe custody of valuables, important documents, and

securities by providing safe deposit vaults or lockers;

 Providing customers with facilities of foreign exchange.

 Transferring money from one place to another; and from one branch to

another branch of the bank.

 Standing guarantee on behalf of its customers, for making payments

for purchase of goods, machinery, vehicles etc.

 Collecting and supplying business information;

 Issuing demand drafts and pay orders; and,

 Providing reports on the credit worthiness of customer

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2.4 INNOVATIONS IN INDIAN BANKING SECTOR

 Retail banking

 Online banking

 Telephone Banking

 Mobile banking or M-Banking or TEXT& SMS Banking

 ATMs

 Debit Credit cards

 Offshore Banking

 Credit Rating

 Step to Door Banking

 Digital TV Banking

 Credit to the Weaker Section

 Mutual funds

 Insurance services

 Merchant banking

 Customer Relationship Management

 Electronic Fund Transfer

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2.5 COMPANY PROFILE

South Indian Bank Limited (SIB) is a private sector bank headquartered at

Thrissur in Kerala, India. The South Indian bank Ltd.., is one of the earliest banks in

South India; “South Indian Bank” came into being during the Swadeshi movement.

The establishment of the bank was the fulfillment of the dreams of a group of

enterprising men who joined together at Thrissur, a major town (now known as the

Cultural Capital of Kerala), in the erstwhile State of Cochin to provide for the people

a safe, efficient and service oriented repository of savings of the community on one

hand and to free the business community from the clutches of greedy money lenders

on the other by providing need based credit at reasonable rates of interest.

Translating the vision of the founding fathers as its corporate mission, the bank has

during its long sojourn been able to project itself as a vibrant, fast growing, service

oriented and trend setting financial intermediary.

The bank is headed by Dr.V A Joseph, Managing Director & CEO of the

bank. South Indian Bank has 641 branches and 3 extension counters spread across

more than 26 states and union territories in India. It has set up 494 ATMs all over

India. In the current year 2010-11, the bank is planning to add 60 more branches

throughout India which aims in having presence in all the states of India. The current

growth plan of the bank is to establish 750 branches, 750 ATMs and 75000 crores of

business by the end of financial year 2013. The bank offers major services in various

segments of accounts and deposits, loans, mutual funds, insurance, money transfers

and other value added services. The Kerala Government had given permission to SIB
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to accept commercial taxes. The bank has been appointed as the largest service

provider (point of sale) for the New Pension Scheme (India) launched by the

Government of India.

SLOGANS of the bank over time:

The South Indian Bank Ltd. - In Step With Progress

To Serve You Everywhere.

Your Interest Above Everything Else

A Bank For All Seasons.

Blending Tradition with Technology.

Bank with the Bank not with the Branch;

Experience Next Generation Banking.

2.6 VISION AND MISSION OF THE BANK

VISION

To emerge as the most preferred bank in the country in terms of brand, values,

principles with core competence in fostering customer aspirations, to build high

quality assets leveraging on the strong and vibrant technology platform in pursuit of

excellence and customer delight and to become a major contributor to the stable

economic growth of the nation.

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MISSION

To provide a secure, agile, dynamic and conducive banking environment to customers

with commitment to values and unshaken confidence, deploying the best technology,

standards, processes and procedures where customer convenience is of significant

importance and to increase the stakeholders‟ value.

2.7 SIB - MILESTONES

 The FIRST among the private sector banks in Kerala to become a scheduled

bank in 1946 under the RBI Act.

 The FIRST bank in the private sector in India to open a Currency Chest on

behalf of the RBI in April 1992.

 The FIRST private sector bank to open a NRI branch in November 1992.

 The FIRST bank in the private sector to start an Industrial Finance Branch in

March 1993.

 The FIRST among the private sector banks in Kerala to open an "Overseas

Branch" to cater exclusively to the export and import business in June 1993.

 The FIRST bank in Kerala to develop an in-house, a fully integrated branch

automation software in addition to the in-house partial automation solution

operational since 1992.

 The FIRST Kerala based bank to implement Core Banking System.

 The THIRD largest branch network among Private Sector banks, in India, with

all its branches under Core banking System.

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2.8 AWARDS AND ACCOLADES

Business world, India‟s Best Bank Award 2010

The Best Web site Award from KMA

Best Bank in Asset Quality Award- Dun & Bradstreet.

No. 1 in Asset Quality- Business Today Ranking of Banks.

Best Performer in Asset Quality- Analyst 2008 Survey.

Top NPA Manager- ASSOCHAM- ECO Pulse Survey.

Best Old Private Sector Bank- Financial Express India's Best Banks

08-09.

Best Asian Banking Website- Asian Banking & Finance Magazine,

Singapore.

Best private sector bank in India in the service quality segment-

Outlook Money - CFore Survey

Special award for excellence in Banking Technology from IDRBT

(Institute for Development & Research in Banking Technology) – the

technical arm of the Reserve Bank of India as a national level

recognition to the excellent contribution made in the area of

Information Systems Security Policies and Procedures

Future Perfect

The South Indian Bank with a new logo and image, marches on. With branches all

over India and a clientele across the world, the bank is considered one of the most pro

active banks in India with a competent tech savvy team of professional at the core of

services. The banks aim at achieving its long term target of Rs. 75,000 crore of

business with 1500 delivery channels and well trained staff strength of 7500 by the

end of March 2013.
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2.9 DEPARTMENTS AT CORPORATE OFFICE

 Managing Director‟s Secretariat

 Executive Director - I

 Executive Director - II

 Accounts

 Department of Information and Communication Technology - [DICT]

 Corporate Financial Management

 Inspection & Vigilance Dept

 Legal Department

 NRI Division

 Personnel Department

 Planning Department

 Secretarial department

 Stationery Cell

 Grievance redressal - Investor / Share Holder Complaints

 IRMD

 Credit Sanctions

 Credit Recovery

 Credit Monitoring

 Organization & Methods and Compliance

 Grievance redressal officer at HO

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OTHER CORPORATE DEPARTMENTS

 Treasury Department

 Staff Training College

 International Banking Division

MARKETING DEPARTMENT

 Online Trading Sibertrade

 Demat Cell

2.10 THE BRAND NEW CORPORATE LOGO

Experience next generation banking
OLD LOGO NEW LOGO

South Indian Bank unveiled the new corporate logo that demonstrates the

major transformation the bank has undergone since its inception. The sharp ends of

the font are smoothened, thickened, and twisted to a form of “S” which denotes the

first letter of the bank. This “S” also stands for safe, solid, secular, shining, schooled,

seasoned, successful, and straight forward bank. The brand new logo was unveiled by

the global brand ambassador Shri Bharath Mammootty.

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2.11 BRAND AMBASSADOR

Super Star Malayalam Movie Actor Padmashree Bharat Mammootty is the

brand ambassador of South Indian Bank. The bank, as part of the global brand

building exercise, has signed South Indian actor Padmashree Bharat Mammootty as

its brand ambassador banking on the film star's pan India appeal, clean image and

popularity among the NRI community'. His tech savvy image goes hand-in-hand with

the bank which has always been in the forefront of embracing technology. The initial

contract between the bank and actor was for three years which was later extended for

five more years. Currently SIB is the only bank in South India that has a brand

ambassador. Through endorsing Mammootty as its global brand ambassador, SIB has

received a huge boost especially in the Middle East.

2.12 BANKS TIE –UPs

ING Life

Bajaj Allianz General Insurance Company Ltd

Export Credit Guarantee Corporation of India

ICICI Prudential AMC

Franklin Templeton

TATA Mutual Fund

Sundaram BNP Paribas

UTI Mutual Funds

Reliance Mutual Funds

HSBC Investments

HDFC Mutual Fund

Fidelity Fund Management Pvt Ltd

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Principal Mutual Funds

Fortis Investments

Birla Sun Life Asset Management Company Ltd

DSP BlackRock Mutual Funds

Sri Lanka's Hatton National Bank (HNB)

2.13 INVESTORS DESK
The Bank’s shares are listed on

 The Cochin Stock Exchange Ltd (CSE)

 The Stock Exchange Mumbai (BSE)

 The National Stock Exchange of India Ltd Mumbai (NSE)

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CHAPTER III
REVIEW OF LITERATURE

Unless judged properly nothing could be justifiably understood from a

financial report or any other scientific report. Financial Statement analysis thus

occupies paramount importance these days. Any study, to be perfect needs so

much of filed review. Financial statement analysis is not at all a new topic. There

are several school of thoughts on financial statement analysis. The judgment and the

quality of interpretation of financial statement analysis depend largely on the ability

of the investigator. When more and more people look at the same thing several

times we get more and more insights and in-depth information‟s on the topic.

The book 'Reminiscences'(1) (1959), written by Shri. K.C. Mammen Mappilai

throws some light on the banking developments that took place in Kerala prior to

independence and also the role played by the Christian community in developing the

banking system in the state. It also contains the history of the National Quilon Bank,

which was the premier bank at that time and explains the reasons for its failure.

Webster’s new wolegiate dictionary (2) (1975) defines a ratio as: “a ratio is defined as

the indicated quotient of two mathematical expressions” and as “a relationship

between two or more things.

(1)
K. C. Mammen Mappilai (1959, ). Reminiscences Malayala Manorama Printing and Publishing Co.

Kottayam, Kerala.
(2)
Webster‟s new wolegiate dictionary, 8th edition Springfield mass, G&C, Merriam, 1975, page no.58

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S. Adve(3) (1980). had some interesting findings in his article “Financial Practices in

Indian Corporate Sector," based on the RBI company finance data. He underlined the

rising dependence on borrowed capital in relation to the total capital employed in the

Indian corporate sector. Trade credit was pointed out to be important sources of

capital when the bank credit was squeezed. Making an industry-wise analysis, the

author came to the conclusion that the industries with large profit margins and those

with large depreciation and development rebate reserves had a relatively lower order

of overall indebtedness and many of them also had a lower order of bank borrowings

in relation to overall indebtedness.

Shri. A.K. Seshadri's "A Swadeshi Bank from South lndia"(4) (1982) gives an account

of the banking crisis that occurred in the state in 1930 due to the failure of the

National Quilon Bank and that in 1960 consequent upon the liquidation of the Palai

central Bank, Palai.

B.A Prakash‟s "Private Financing firms in Kerala"(5) (1984) provides an interesting

account of the functioning of private financing firms in Kerala. The study based on a

survey of the private financing firms in Trichur town seeks to examine the factors,

which contributed to the emergence of these institutions, the method of their

functioning and their importance as a parallel banking system. However he is silent

on questions such as types of borrowers, total amount of uncounted money generated

by the private financing firms, safety of depositors money and so on.

(3)
S. Adve (1980). "Financial Practices in Indian Corporate Sector, Inter-Group and Inter-Size

Differences," Economic and Political Weekly, Feb. 23.
(4)
A K Seshadrl (1982). A Swadeshi Bank, from South India, Indian Bank, Madras

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Kothari &Lee (2001)(6) provide an excellent coverage of research on economies &

fundamental analysis in the accounting literature up until the year 2001, no survey

covers papers in the accounting literature after that year. Furthermore, recent finance

surveys on anomalies focus almost exclusively on behavioral finance & do not cover

accounting anomalies or fundamental analysis. Therefore, one of the goals of our

survey in to fill in some of the gaps of prior literature surveys & capture research

innovations since the year 2000

Mr. Solomon (7) (2006) an economist and financial management guru says while using

fund the finance manager must find rationale answering the following three

questions:-

a. How large should an enterprise be and how fast should it grow?

b. In what form should it hold its assets?

c. How should the funds required be raised?

James C. Van Horne(8) reveals, the functions of finance involve three major decisions.

A company must make; the investment decision, financing decision and the dividend /

share repurchase decision. Each must be considered in relation to our objective an

optimal combination of the three will create value.

(5)
B.A Prakash (1984). "Private Financing firms in Kerala", Economic and Political Weekly. Vol XIX.

Dec. 15
(6)
Kothari & Lee (2001) research on economies & fundamental analysis

(7)
Solomon o.p.cit.(2006), pages 8-9

(8)
James C. Van Horne, in his book “financial management and policy” 12 th edition 2008. Page no.24

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I.M pandey, In his book „financial management‟ (9) says, The term fund can be defined

at least in three ways:-

a. It may be in cash

b. Working capital (difference between current assets and current liabilities)

c. Financial resources (arising from both current and noncurrent items)

Jonathan Berk, Peter de Marzol & Ashok Thambi in their book „financial

management‟ (10) reveals that, Financial Statements are firm issued accounting reports

with past performance information that a firm issues periodically. Public limited

companies need to present an annual report with their financial statements to share

holders every year. The annual report will contain three financial statements:-

a. Balance sheet of the firm

b. Profit and loss statement of the firm

c. A statement of cash flow

In one of the studies published by Kerala Economic Review (11) , it is observed that the

expansion of commercial banks in the rural areas of Kerala is more pronounced than

in any other state.

(9)
I.M pandey, In his book „financial management‟ 9 th edition (2009), (vikas publication

(10)
. Jonathan Berk , Peter de Marzol & Ashok Thambi in their book „financial management‟, Pearson
(2010)

(11)
Kerala Economic Review, Thiruvananthapuram, 2010

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CHAPTER IV

DATA ANALYSIS AND INTERPRETATION

Comparative Balance Sheet as on 31St March for the years 2006 - 2010
(summary)

Table 4.1.1 ( Rs in 000’s )

Amount of % of
Particulars 31/03/2006 31/03/2010 increase/ increase/
decrease decrease
Capital and Liabilities
Capital 704052 1130065 426013 60.51%
ESO(Grants ) outstanding _ 5745

Reserves & Surplus 5704454 13717089 8012635 140.46%

Deposits 95786598 230115241 134328643 140.23%

Borrowings 7223 3309637 3302414 45720%

Other liabilities and provisions 6071924 7062669 990745 16.32%

Total capital & Liabilities 108274251 255340446 147066195 135.83%

Assets

Cash & balances with RBI 5460814 13909488 8448674 154.71%

Balances with banks, money at 7973929 5967239 -2006690 -25.16%
call & short notice

Investments 27393852 71556127 44162275 161.21%

Advances 63702307 158229174 94526867 148.39%

Fixed Assets 898041 1525377 627336 69.9%

Other Assets 2845308 4153041 1307733 46%

Total Assets 108274251 255340446 147066195 135.83%

Contingent liabilities 12951920 27297348 14345428 110.76%

Bills for Collection 1830511 2574632 744121 40.65%
Source: annual reports of the bank (2006-10)

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INTERPRETATION:

 Capital has increased by Rs. 42,60,13,000 in the current year 2009-10 from

the year 2005-06 . The 2009-10 figures are Rs. 1,13,00,65,000. There is an

increase of 60.51%.

 Deposits have also shown substantial increase during the period under

consideration as a result of the aggressive deposit mobilization programmes

adopted by the bank. It has shown an increase of 140.23% during the last 5

years and the aggregate deposit figure as on 31/03/2010 is 2,30,11,52,41,0000.

 The investments showed a drastic increase of 161.21% as a result of the

portfolio diversification and extension undertaken by the bank. From Rs.

27,39,38,52,000 on 31/03/2006, it has increased to Rs. 71,55,61,27,000 .

 Fixed assets of the bank amounted to 89,80,41,000 as on 31/03/2006. In the

current year it has reached by 69.9% to reach 1,52,53,77,000.

27 | P a g e

Comparative Income Statement for the years 2006 - 2010

Table 4.1.2

( Rs in 000’s)

Particulars Amount of % of
31/03/2006 31/03/2010 increase/ increase/
decrease decrease
I. INCOME
Interest Earned 7613225 19357210 11743985 154.25%
Other Income 722662 2084602 1361940 188.47%
TOTAL 8335887 21441812 13105925 157.22%

II. EXPENDITURE
Interest Expended 4511391 13674284 9162893 2031%
Operating Expenses 2260636 3661814 1401178 61.98%
Provisions & Contingencies 1054847 1768109 713262 67.62%
TOTAL 7826874 19104207 11277333 144.08%

III. PROFIT/LOSS
Net Profit for the year 509013 2337605 1828592 359.24%
Transfer from Revenue & Other _ _ _ _
Reserves
Transfer to Other Liabilities & _ _ _ _
Provisions
Profit brought forward from previous 391 146670 146279 37412%
year
TOTAL 509404 2484275 1974871 387.68%

IV. APPROPRIATIONS
Transfer to Statutory Reserve 127300 584500 457200 359.15%
Transfer to Capital Reserve 134640 6873 -127767 -94.91%
Transfer to Revenue and Other
Reserves 38180 900000 861820 2257.25%
Transfer to Investment Reserve _ 202666 202666 _
Transfer to Special Reserve u/s
36(i)(viii) of Income Tax Act _ 92800 92800 _
Proposed Dividend 126730 452026 325296 256.68%
Tax on Proposed Dividend 17774 75076 57302 322.39%
Balance carried over to Balance Sheet 64780 170334 105554 162.94%

509404 2484275 1974871 387.68%
TOTAL

28 | P a g e

INTERPRETATION:
 The total income earned shows a substantial growth in these five years. In the

year 2010 it shows a hike of 157.22% than the year 2006.

 The expenditure rate of the bank is also increasing but it doesn‟t affect

profitability of the bank. The expenditure percentage in the year 2010 is of

144.08% more than that of in the year 2006.

 The total profit of the bank also reveals a very drastic improvement. In the

year 2006 the total profit of the bank is Rs 50, 94, 04,000 and in 2010 it is Rs

2,48,42,75,000. The increasing ratio is 387.68%

29 | P a g e

Common Size Balance Sheet for the years 2006 - 2010

Table 4.1.3 (Rs in 000’s)

Particulars 31/03/2006 Relative % 31/03/2010 Relative %

Capital and Liabilities
Capital 704052 0.65% 1130065 0.44%
ESO(Grants ) outstanding _ _ 5745 0.002%

Reserves & Surplus 5704454 5.27% 13717089 5.37%

Deposits 95786598 88.46% 230115241 90.12%

Borrowings 7223 0.01% 3309637 1.30%

Other liabilities and provisions 6071924 5.61% 7062669 2.80%

Total capital & Liabilities 108274251 100% 255340446 100%

Assets

Cash & balances with RBI 5460814 5.04% 13909488 5.45%

Balances with banks, money at 7973929 7.37% 5967239 2.33%
call & short notice

Investments 27393852 25.30% 71556127 28.03%

Advances 63702307 58.84% 158229174 61.97%

Fixed Assets 898041 0.82% 1525377 0.59%

Other Assets 2845308 2.63% 4153041 1.63%

Total Assets 108274251 100% 255340446 100%


30 | P a g e

INTERPRETATION:

 The capital fund has increased but the relative percentage is decreasing. In
2006 the fund‟s percentage is 0.65% which has decreased to 0.445 in 2010.

 E.S.O.Outstanding forms a relative percentage of 0.002% in the year 2010.

 Deposits are also increasing. And the relative percentage was increased from
88.46 %( 2006) to 90.12% (2010).

 Fixed assets of the bank have also increased. But the relative percentage has
declined from 0.82% (2006) to 0.59% (2010).

 The advances and investment pattern of the bank also reveals a steady growth
trend.

31 | P a g e

Common size Income statement as on 31st March of 2006 & 2010

Table 4.1. 4 (Rs in 000’s)

Particulars 31/03/2006 Relative % 31/03/2010 Relative %
I. INCOME
Interest Earned 7613225 91.33% 19357210 90.28%
Other Income 722662 8.67% 2084602 9.72%
TOTAL 8335887 100% 21441812 100%

II. EXPENDITURE
Interest Expended 4511391 54.12% 13674284 63.77%
Operating Expenses 2260636 27.12% 3661814 17.08%
Provisions & Contingencies 1054847 12.66% 1768109 8.25%
TOTAL 7826874 93.90% 19104207 89.10%
III. PROFIT/LOSS

Net Profit for the year 509013 6.10% 2337605 10.90%
_ _ _ _
Transfer from Revenue & Other Reserves _ _ _ _
Transfer to Other Liabilities & Provisions
Profit brought forward from previous year 391 0.01% 146670 0.68%

TOTAL 509404 6.11% 2484275 11.58%

V. APPROPRIATIONS 127300 584500
Transfer to Statutory Reserve 134640 6873
Transfer to Capital Reserve 38180 900000
Transfer to Revenue and Other Reserves _ 202666
Transfer to Investment Reserve
Transfer to Special Reserve u/s 36(i)(viii) _ 92800
of Income Tax Act 126730 452026
Proposed Dividend 17774 75076
Tax on Proposed Dividend 64780 170334
Balance carried over to Balance Sheet
509404 6.11% 2484275 11.58%

TOTAL

32 | P a g e

INTERPRETATION:

 Interest earned has increased in a high rate, but the relative share of it in total

income has decreased from 91.33% in 2006 to 90.28% in 2010. The

contribution from other income to the total income has increased from 8.67%

to 9.72% during these years.

 Interest expended has increased; operating expenses and provisions &

contingencies has declined. The share of total expenditure is decreased from

93.90% in 2006 to 89.10% in 2010.

 There is a drastic improvement in the net profit percentage. In the year 2006

its relative share in the total profit is 6.10% out of 6.11%. In the year 2010 it is

10.90% out of 11.58% of total profit.

33 | P a g e

1. NET PROFIT MARGIN:

NET PROFIT MARGIN = NET PROFIT
TOTAL INCOME

Table 4.2.1
NET PROFIT MARGIN

( Rs in 000’s)

YEAR NET PROFIT TOTAL INCOME PROFIT MARGIN
(%)

2006 509013 8335887 6.11

2007 1041176 10797636 9.64

2008 1516235 14338175 10.57

2009 1947526 18511936 10.52

2010 2337605 21441812 10.90


34 | P a g e

Figure 4.2.1

12
NET PROFIT MARGIN

10

8
RATIO

6
10.57 10.52 10.9
9.64
4

6.11
2

0
2006 2007 2008 2009 2010
YEARS

INTERPRETATION:

The net profit margin of the bank is showing a improvement trend after a

short decline in the financial year 2008-09. In the current year it is in the

maximum, 10.90%.This shows the improvements in the earning capacity

of the bank.

35 | P a g e

2. DEBT EQUITY RATIO:

DEBT EQUITY RATIO = TOTAL DEBT (EXTERNAL EQUITIES’)
NET WORTH (INTERNAL EQUITIES)

Table 4.2.2
DEBT EQUITY RATIO

(Rs in 000’s )

YEAR TOTAL DEBT NET WORTH DEBT-EQUITY
RATIO

2006 101865745 6408506 15.90

2007 129286172 7239618 17.96

2008 159289482 11609816 13.72

2009 190795179 13040040 14.63

2010 190754026 14847154 12.84


36 | P a g e

Figure 4.2.2

18 DEBT EQUITY RATIO
16

14

12

10
RATIO

17.96
15.9
8
13.72 14.6
12.8
6

4

2

0
2006 2007 2008 2009 2010

YEARS

INTERPRETATION:
Debt equity ratio is the lenders contribution to each rupee of owner’s

contribution. Ideal ratio is 1:1 in public limited companies and 2:1 in private

limited companies. The bank in this year reveals a debt equity ratio of 12.84:1,

which is not an ideal one but shows a decreasing trend compared to the previous

year.

37 | P a g e

3. SOLVENCY RATIO:

SOLVENCY RATIO = TOTAL LIABILITIES TO OUTSIDERS
TOTAL ASSETS

Table 4.2.3
SOLVENCY RATIO

(Rs in 000’s)

TOTAL TOTAL ASSETS SOLVENCY
YEARS LIABILITIES TO RATIO:
OUTSIDERS (%)

2006 101865745 10827425 94.1

2007 129286172 136525790 94.6

2008 159289482 170899298 93.2

2009 190795179 203794066 93.6

2010 190754026 255340446 74.7

38 | P a g e

Figure 4.2.3

SOLVENCY RATIO

100 94.1 94.6 93.2 93.6
90

80 74.7
70

60
RATIO

50

40

30

20

10

0
2006 2007 2008 2009 2010
YEAR

INTERPRETATION:

The ratios in the past four years are very high. Even though the solvency ratio

is less in the year 2010(74.7%) when compared to previous year’s ratios, it

stays satisfactory.

39 | P a g e

4. PROPRIETARY RATIO:

PROPRIETARY RATIO= SHAREHOLDERS FUND
TOTAL ASSETS

Table 4.2.4
PROPRIETARY RATIO

(Rs in 000’s)

YEAR SHARE HOLDERS TOTAL ASSETS PROPRIETARY
FUND RATIO (%)

2006 6408506 10827425 6

2007 7239618 136525790 5.3

2008 11609816 170899298 6.8

2009 13040040 203794066 6.39

2010 14847154 255340446 5.81


40 | P a g e

Figure 4.2.4

PROPRIETARY RATIO
7

6

5

4
RATIO

6.8 6.39
6 5.81
3 5.3

2

1

0
2006 2007 2008 2009 2010
YEARS

INTERPRETATION:

This ratio shows the proportion of total assets financed by the share holders. A

high ratio indicates relatively favorable position to creditors at the time of

liquidation. A low ratio indicates higher risk and danger to creditors. The ratio is

high in all years. While comparing five years the ratio is maximum in the year

2008 (6.8%).

41 | P a g e

5. RETURN ON SHARE HOLDERS INVESTMENT
(ROI):

RETURN ON SHARE HOLDERS EQUITY = NET PROFIT AFTER TAXES
AVG.TOTAL SHARE HOLDERS EQUITY

Table 4.2.5
RETURN ON SHARE HOLDERS EQUITY

(Rs in 000’s)

YEAR NET PROFIT SHARE RETURN ON
HOLDERS INVESTMENT
FUND

2006 509013 6408506 7.94

2007 1041176 7239618 14.38

2008 1516235 11609816 13.16

2009 1947526 13040040 14.93

2010 2337605 14847154 15.74

42 | P a g e

Figure 4.2.5

RETURN ON SHARE HOLDERS INVESTMENT
16

14

12

10
RATIO

8 14.93 15.74
14.38
13.16
6

4
7.94

2

0
2006 2007 2008 2009 2010
YEAR

INTERPRETATION:

The above diagram shows an upward trend in the ROI. When compared the

ROI in 20063 is low, after that it shows a drastic improvement in the ROI

pattern. During the year 2010 it is in the peak position with 15.74%.

43 | P a g e

6. EARNINGS PER SHARE:

EPS= PROFIT AFTER TAX
NO.OF SHARES OUTSTANDING

Table 4.2.6
EARNINGS PER SHARE

(Rs in 000’s)

NET PROFIT
YEAR AFTER TAX AND NO.OF EQUITY E.P.S
PREF. DIVIDENT SHARES

2006 5090130 704052 7.23

2007 10411760 704052 14.79

2008 15162350 904052 16.77

2009 19475260 1130065 17.23

2010 23376050 1130065 20.68


44 | P a g e

Figure 4.2.6

25 E.P.S
20

15
RATIO

10 20.68
16.77 17.23
14.79
5
7.23

0
2006 2007 2008 2009 2010
YEARS

INTERPRETATION:

The earnings per share ratio indicate the profit available to share holder’s per

share basis. It is one of the important market test ratio. The EPS year during the

past five years shows a tremendous increase. During the year 2010 it shows its

maximum value rated as 20.68.

45 | P a g e

7. RETURN ON ASSETS:

ROA= NET PROFIT
AVG. TOTAL ASSET

Table 4.2.7
RETURN ON ASSETS

(Rs in 000’s)

YEAR NET PROFIT TOTAL ASSETS ROA RATIO

2006 509013 10827425 0.47

2007 1041176 136525790 0.76

2008 1516235 170899298 0.89

2009 1947526 203794066 0.96

2010 2337605 255340446 0.91


46 | P a g e

Figure 4.2.7

1.2

RETURN ON ASSETS
1 0.96
0.89 0.91

0.8 0.76
RATIO

0.6
0.47

0.4

0.2

0
2006 2007 2008 2009 2010
YEARS

INTERPRETATION:

The term ROA shows the net profitability of the assets of the bank. In the year

2006 the ROA shows a low rate after that ROA has a increased in a high rate .

But in the year 2010 it shows a declining trend.

47 | P a g e

8. RATIO OF RESERVE AND EQUITY CAPITAL:

RATIO OF RESERVE AND EQUITY CAPITAL=RESERVES AND SURPLUS
EQUITY CAPITAL

Table 4.2.8
RATIO OF RESERVE AND EQUITY CAPITAL

(Rs in 000’s)

RESERVES AND EQUITY RATIO OF
YEAR SUR PLUS CAPITAL RESERVE AND
SURPLUS

2006 5704454 704052 8.10

2007 6535566 704052 9.28

2008 10705764 904052 11.84

2009 11909975 1130065 10.54

2010 13717089 1130065 12.14

48 | P a g e

Figure 4.2.8

14 RATIO OF RESERVES AND EQUITY CAPITAL
11.84 12.14
12
10.54
10 9.28
8.1
8
RATIO

6

4

2

0
2006 2007 2008 2009 2010
YEARS

INTERPRETATION:

This ratio indicates the relationship between the ratio of reserve and equity

capital. Reserves are maintained to expand the business in future and also to

increase the overall efficiencies of the business. The ratio indicates how much

profit the firm available for its future growth. Higher the ratio generally, better

is the position of the firm.

This ratio shows a fluctuating trend in the amount of total reserves and the

equity capital of the bank. In the year 2006 the ratio is 8.10. After that the rate

reveals a higher trend. It is highest in the year 2010 with a rate of 12.14

49 | P a g e

9. STAFF PROFITABILITY RATIO:

STAFF PROFITABILITY RATIO=NET PROFIT
NO.OF EMPLOYEES

Table 4.2.9
STAFF PROFITABILITY RATIO

(Rs in 000’s)

NO.OF NET PROFIT
YEAR NET PROFIT EMPLOYEES PER STAFF

2006 509013 3709 137.23

2007 1041176 3868 269.18

2008 1516235 4223 359.04

2009 1947526 4523 430.58

2010 2337605 4860 480.98

50 | P a g e

Figure 4.2.9

600
NET PROFIT PER STAFF

500 480.98
430.58
400
359.04
RATIO

300 269.18

200
137.23

100

0
2006 2007 2008 2009 2010
YEARS

INTERPRETATION:

This shows the efficiency and effectiveness of the staff and the working

conditions of the bank. This ratio is directly proportional to the amount of profit

each individual employee can contribute. From the above ratios we can see a

hike in the staff profitability ratio. It is highest in the year 2010.

51 | P a g e

10. GROWTH RATE OF NET PROFIT:

GROWTH RATE OF NET PROFIT=INCREASE IN CURRENT YEAR PROFIT
PREVIOUS YEARS PROFIT

Table 4.2.10
GROWTH RATE OF NET PROFIT

(Rs in 000’s)

CURRENT PREVIOUS AMOUNT OF % OF
YEAR YEAR PROFIT YEARS INCREASE INCREASE
PROFIT IN PROFIT

2006 509013 87009 422004 485.01%

2007 1041176 509013 532163 104.55%

2008 1516235 1041176 475059 45.63%

2009 1947526 1516235 431291 28.44%

2010 2337605 1947526 390079 20.03%


52 | P a g e

Figure 4.2.10

500.00% YEARLY INCREASE IN PROFIT (%)
450.00%

400.00%

350.00%

300.00%
RATIO

250.00% 485.01%

200.00%

150.00%

100.00%
104.55%
50.00% 45.63% 28.44% 20.03%
0.00%
2006 2007 2008 2009 2010

YEARS

INTERPRETATION:

This ratio shows the yearly profitability of the bank compared to the previous

year’s profit. As compared to 2005 the year 2006 shows a penetrating trend

(485.01%). After that the yearly profit shows a declining trend. 2010’s yearly

profit is 20.03% which is satisfactory.

53 | P a g e

11. YIELD ON INVESTMENT:

YIELD ON INVESTMENT= INCOME FROM INVESTMENTS X 100
AVERAGE INVESTMENTS

Table 4.2.11
YIELD ON INVESTMENT

(Rs in 000’s)

INCOME FROM AVERAGE YIELD ON
YEAR INVESTMENTS INVESTMENTS INVESTMENT
(%)

2006 1871380 27393852 6.83

2007 2188035 34301326 6.38

2008 2727124 45722249 5.96

2009 3588133 60752032 5.91

2010 3780662 71556127 5.28


54 | P a g e

Figure 4.2.11
8
YIELD ON INVESTMENT ( % )
6.83
7 6.38
5.96 5.91
6
5.28
5
RATIO

4

3

2

1

0
2006 2007 2008 2009 2010
YEARS

INTERPRETATION:

This shows the earnings made by bank on its investments in share, debentures,

bonds, government securities etc…

The investment pattern of the bank is almost similar in past five years. In 2006

the bank makes a high yield on its investments. But in succeeding years market

showed a diminishing trend and it affected the earning capacity of the bank

itself. Thus for the years after 2006 we can see a diminishing trend in the yield on

investment.

55 | P a g e

12. CURRENT RATIO:

CURRENT RATIO= CURRENT ASSETS
CURRENT LIABILITIES

Table 4.2.12
CURRENT RATIO

(Rs in 00,000’s)

YEAR CURRENT CURRENT CURRENT
ASSETS LIABILITIES RATIO

2006 229427.21 447194.92 0.51

2007 333266.43 922177.3 0.36

2008 336734.06 870908.67 0.387

2009 490438.25 984019.57 0.498

2010 1472607.6 315743.06 4.66


*Current assets include:
Cash in hand and at bank, short term investment, other assets.
Current liabilities include:
Borrowings, short term deposits, other liabilities and provision.

56 | P a g e

Figure 4.2.12

5
4.66
4.5
CURRENT RATIO
4

3.5

3

2.5

2

1.5

1
0.51 0.498
0.5 0.36 0.387

0
2006 2007 2008 2009 2010

INTERPRETATION:

The current ratio shows the relation between current assets and current

liabilities of the bank. This ratio measures the banks short term solvency. The

ideal ratio is 2:1. If the bank has ratio more than one it reveals the banks high

potential in paying off the debts. But if the ratio is more than two, it shows the

inefficiency of management in controlling the current asset of the bank. In 2010

the ratio shows a great hike (4.66:1) which will adversely affect the profitability

of the bank.

57 | P a g e

SUMMARY AND FINDINGS

1. The net profits of bank shows an increasing trend in last five years.

2. The total funds available to the shareholders also show an increasing trend.

Thus the bank can expand business widely.

3. The deposits available to bank show an upward trend.

4. In debt equity ratio is decreasing, but in 2007 this was very high. This may be

due to the increasing borrowing from RBI.

5. Solvency ratio is above 1 in all cases and it shows a satisfactory and ideal

position.

6. Proprietary ratio is high in all the five years, even though it is lower in 2010

than past two years. It shows a better position to all the creditors at the time of

liquidity.

7. As the profitability of the business is increasing effectively. Shareholders are

the primary party of benefit from it .Return was very less in 2005.But it

increased very rapidly and it is a maximum of 2010.

8. EPS of the firm is increasing after a sudden fall in 2005. The EPS has

improved from 17.23 in 2009 to 20.68 in 2010.

9. Interest on advances is high in all five years. The ratio is moving at marginal

rate. This may be due to the increase in temporarily performing advance.

Those which are having a chance to become NPA in the coming year

10. Yield on investment is generally decreasing. This is because majority of

investment are made in government securities the return of which depends up

on prevailing interest rate and is comparatively low in 2006-07 bank increased

58 | P a g e

investment and shares. This shows the inefficiency of bank in managing

investment portfolio

11. Increasing trend in net profit margin the improvement in profitability and

earning capacity.

12. The ratio of reserve and capital also show increase trend. This shows the bank

availability of fund

13. Staff profitability ratio show light to earning capacity of employees. It is very

well increasing and its maintains a satisfactory level in all the five years

14. The increase in current ratio to 4.66 shows a position of inefficiency of

management. The ideal ratio is 2:1.

59 | P a g e

SUGGESTIONS AND RECOMMENDATIONS

1) The company has high level of current assets. It ensures liquidity. But at the

same time profitability is adversely affected. So by bringing down liquidity

ratio, the profitability can be increased.

2) More funds should be employed in investment, because it is the major source

of income to bank. In addition to that, the bank should improve its investment

portfolio to take benefit of boom in capital market. It should increase the

proportion of shares and debenture in its investment mix and reduce the

quantity of government securities as they are low income generating

securities.

3) Reduction in net interest margin is not favorable to the firm so it must be

increased.

4) The bank should try to increase the proportion of advances to priority sector

and ensure not to increase the proportion to increase advance to public sector

.This will help to reduce NPA of the bank.

5) The bank should try to decrease its PE ratio also to its places itself in favorite

places among the rival of bang stock.

6) A conscious step to decrease the Debt- equity ratio is advised .A strong capital

basis should be equipped.

7) Bank should try to increase net profit margin.

8) Necessary measure to increase the return to total asset should be undertaken.

This owes a direct relation with profitability of the bank .Profitability can be

increased by better management of current asset and avoiding unnecessary

expenditure.

60 | P a g e

CONCLUSION

The banking sector is the reflection of Indian economy. The last decade has

seen many positive developments in the Indian banking sector. Even though financial

crisis shook the entire globe the Indian banks still are in their growth stage. This

reveals that the Indian banking sector has more untapped potential that can be

exploited in the future years. From the analysis of financial statements it is found that

the bank is successful in a significant increase in the net profits in the current financial

year. Proper changes and management of its investment portfolio will help the bank to

increase its earning from investments. The bank has been successful in changing

regional character into national one by opening branches in almost all states and

uniform territories of the country. From the study it is concluded that the

interpretations, suggestions and findings would support the bank to do things in better

and efficient way. Now it‟s the time for its customers to experience next generation

banking.

61 | P a g e

Siby linson

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