All the figures are INR and 000s are omitted

BANK OF
BARODA

CENTRAL
BANK OF
INDIA

Cash to Demand Deposit Ratio

Demand Deposit
Balances with banks and money at call
Cash and balances with reserve bank of India

3.87
346290617
1122279345
216724154
1339003499

1.30
119703720
14715384
140695075
155410459

Demand to time deposit

total demand deposit
total time deposit

0.081922837
34629,06,17
422703,40,10

0.069705052
119703720
1717289008

Short term investments to total Assets

Short term investments
Total Assets

0.022485483
150962244
6713764769

0.071966614
219833609
3054660996

SLR investments to total investments

SLR Investments
Total investments

0.8760
1055146564
1204505210

0.748672589
665326894
888675375

Profit margin
Net Profit
Total Income from Interest earned

-0.122455308
-53955373
440612774

-0.05478197
-14181900
258878971

Asset Utilisation
Total Income
Total assets

0.073073962
490601390
6713764769

0.091095814
278266829
3054660996

Net Interest Margin

0.0205

0.0275

Return on equity
Net Profit
Equity shareholders' funds

Negative
-53955373
4620931

Negative
-14181900
168,97,143

Return on Assets
Net Profit
Total Assets

-0.00803653
-53955373
6713764769

-0.004642708
-14181900
3054660996

0.01329081
89231371

0.02082545
636,14,691

Liquidity Ratios:

Profitability Ratios:

Banking Efficiency Ratios:

Operating efficiency
total op. expenses

total assets

6713764769

3054660996

Non-interest income to total income

Non-interest income
total income

0.101892528
49988616
490601390

0.069673619
19387857
2782,66,829

Income productivity per employee

net income
no of full time employee

-1037.184464
-53955373
52021

-376.33
-14181900
37685

11.21%
2.99%

7.44%
8.2%

10.79%
2.38%

3.63%
2.21%

Capital Adequacy Ratio

TIER I:
BASE II
BASE III

TIER II:
BASE II
BASE III

Bank of Baroda is one the BIG FOUR banks of India. Central Bank of India is also one of the most
important Public Sector banks of India.
But Bank of Baroda is much larger than the CBI. Its asset base is more than twice that of the CBIs
assets.

Liquidity Ratios:
These are the ratios of liquid assets to that of the liabilities. The ratios give us an idea about the Banks
status to meet its short-term liabilities.
Cash to Demand Deposit Ratio:
BOB has a higher Cash to Demand Deposit ratio of 3.87 than that of CBIs 1.3. It means BOB is more
liquid than CBI and can meet its demand deposit requirements more efficiently than CBI.
Demand to Time Deposit Ratio:
It helps to identify the liquidity required by the banks to meet the demand deposits.
Both the banks have a similar Demand to Time Deposit Ratio of 8.1% and 7% for BOB and CBI
respectively. This means that the banks require comparable liquidity as per their demand deposit
values.
Short-term investments to total investments:
In accordance with the guidelines issued by the Reserve Bank of India, Investments are classified into
Held to Maturity, Held for Trading and Available for Sale categories.
The Held for Trading investments are the short-term investments of the banks. These include the
shares, bonds and debentures and other commercial papers.

The higher the ratio, the higher is the liquidity position of the bank.
The ratio value is 2.2% for BOB and 7.2% for Central Bank of India. The Central Bank of India is more
liquid than the Bank of Baroda which makes it more liquid than BOB in meeting its liabilities. The ratio
compares the short term investments with the individual banks total investments.
SLR investments to total investments:
SLR investments are the reserve requirements that the commercial banks have to maintain in the form
of gold and government securities.
Higher the SLR investments, higher is the liquidity of the banks.
Bank of Baroda has 87.6% of its total investments made in the Government securities (inside India)
whereas, Central Bank of India has 75% of its total investment made in Government securities.
The requirement is to maintain minimum 21.25% of total demand and time liabilities as SLR.
Profitability Ratios:
The ratios indicate banks ability to generate earnings as compared to its expenses and other relevant
costs incurred during a specific period of time.
Net profit Margin:
Both the banks are facing losses with Bank of Baroda facing around 5400 crores of losses and Central
Bank of India facing 1400 crores of losses.
Both have therefore a negative profit margin of -12.24% and -5.47% respectively for Bank of Baroda
and Central Bank of India. The total income here considered is of that earned from the interest
because the primary business activity of the bank is lending.
Asset Utilisation:
The ratio helps us understand how well the bank is utilising its assets to generate revenue.
Between these two, the asset utilisation of Central Bank of India is better at 9.1% against 7.3% of Bank
of Baroda.
Net interest margin:
Net interest margin is calculated by dividing the interest income spread by the total assets. The
interest income is the primary source of income for the banks. Hence, higher ratio indicates more
proper utilisation of the assets to generate income from primary activity.
Both the banks have similar NIM. BOB has an NIM of 2.05% and Central Bank of India has an NIM of
2.75% which is slightly better.
Return on Equity:
Both the banks do not generate any profits and hence have a negative return on equity.
Return on Assets:
The ratio determines the net profit generated through the assets available with the banks. Bank of
Baroda has -0.8% ROA whereas Central Bank of India has ROA of -0.46%.

Banking Efficiency Ratios:

These ratios denote the expenses incurred by the banks in % of the income earned by them.
Operating Efficiency Ratio:
Compares the total operating expenses with the total assets.
Lower the ratio, higher the efficiency of the bank.
OE ratio for Bank of Baroda is 1.3% which is lower than that of Central Bank of India which has 2.1%
of OE ratio. Hence BOB is more efficient in conducting its business compared to that of CBI.
Non-interest Income to Total Income:
This ratio gives us an idea about the fee based income of the banks.
BOB has 10.1% of the total income coming from the service based activities whereas Central Bank of
India has 6.97% of income coming from these activities.
Income Productivity per employee:
Bank of Baroda has a higher per employee loss than that of Central Bank of India even though they
have higher full time employee count than Central Bank of India.
Capital Adequacy Ratio:
The capital adequacy ratio (CAR) is a measure of a bank's capital. It is expressed as a percentage of a
bank's risk weighted credit exposures.
It is used to protect depositors and promote the stability and efficiency of banks. Two types of capital
are measured: tier one capital, which can absorb losses without a bank being required to cease
trading, and tier two capital, which can absorb losses in the event of a winding-up and so provides a
lesser degree of protection to depositors.
Bank of Baroda has higher capital adequacy ratio compared to Central Bank of India in both the Tier I
and Tier II capitals.