MBA Finance Project

BANK OF BARODA
-INDUSTRY PROFILE
INTRODUCTION
A bank is a financial institution that accepts deposits and channels those deposits into
lending activities. Banks primarily provide financial services to customers while
enriching investors. Government restrictions on financial activities by banks vary over
Appa Institute of Engineering &Technology

P. G. Department of Management Studies,
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time and location. Banks are important players in financial markets and offer services
such as investment funds and loans.
DEFINITION:
According to Banking Regulation Act 1949, Sector 5 (b) 66 Banking means “the
accepting for the purpose of deposits of money from the public, repayable on demand or
otherwise, and withdrawal by cheque, drafts, order and otherwise”.

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The main operations of the bank as the above definition states that
• Banks accepts deposits from the public.
• Banks advances loans to needy businessman.
Origin of bank
Without a sound and effective banking system in India it cannot have a healthy economy.
The banking system of India should not only be hassle free but it should be able to meet

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new challenges posed by the technology and any other external and internal factors.
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.

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The government's regular policy for Indian bank since 1969 has paid rich dividends with
the nationalization of 14 major private banks of India.
Not long ago, an account holder had to wait for hours at the bank counters for getting a
draft or for withdrawing his own money. Today, he has a choice. Gone are days when the
most efficient bank transferred money from one branch to other in two days. Now it is
simple as instant messaging or dials a pizza. Money has become the order of the day.
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.

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They are as mentioned below:
• Phase I (1786- 1969) - Initial phase of banking in India when many small
banks were set up
• Phase II (1969- 1991) - Nationalization, regularization and growth
• Phase III (1991 onwards) - Liberalization and its aftermath

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With the reforms in Phase III the Indian banking sector, as it stands today, is mature in
supply, product range and reach, with banks having clean, strong and transparent
balance sheets. The major growth drivers are increase in retail credit demand,
proliferation of ATMs and debit-cards, decreasing NPAs due to Securitization,
improved macroeconomic conditions, diversification, interest rate spreads, and
regulatory and policy changes (e.g. amendments to the Banking Regulation Act).

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Certain trends like growing competition, product innovation and branding, focus on
strengthening risk management systems, emphasis on technology have emerged in the
recent past. In addition, the impact of the Basel II norms is going to be expensive for
Indian banks, with the need for additional capital requirement and costly database
creation and maintenance processes. Larger banks would have a relative advantage
with the incorporation of the norms.

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Types of bank
Retail banking, dealing directly with individuals and small businesses;
• business banking, providing services to mid-market business;

• corporate banking, directed at large business entities;
• private banking, providing wealth management services to high net worth
individuals and families; and
• Investment banking, relating to activities on the financial markets.

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Most banks are profit-making, private enterprises. However, some are owned by
government, or are non-profit organizations. Central banks are normally government-
owned and charged with quasi-regulatory responsibilities, such as supervising
commercial banks, or controlling the cash interest rate. They generally provide liquidity
to the banking system and act as the lender of last resort in event of a crisis.
MAJOR PLAYER IN INDIA

1. HDFC BANK LTD

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2. ICICI BANK LTD

3. STATE BANK OF INDIA LTD
4. PUNJAB NATOINAL BANK LTD
5. BANK OF BARODA LTD
6. FEDERAL BANK LTD
7. AXIS BANK LTD
8. ING VYSYA BANK LTD
9. IDBI BANK LTD

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10. INDUSIND BANK LTD

11. YES
INDIAN BANKING SYSTEM

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Reserve Bank of India
Schedule Banks Non-Schedule Banks
Central co-op
State co-op CommercialBanks and Commercial Banks
Banks Banks Primary Cr.
Societies
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Indian Foreign

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Public Sector
Banks Private Sector
Banks
State Bank of India Other Nationalized Regional Rural

and its Subsidiaries Banks Banks

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COMPANY PROFILE
A. BACKGROUND AND INCEPTION:

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• Established on July 20, 1908 by Maharaja of Baroda Sir Sayajirao Gaekwad

III, in the princely state of Baroda, in Gujarat. The bank, along with 13 other
major commercial banks of India, was nationalized on 19th July, 1969, by the
Government of India.

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• Bank of Baroda is the fifth largest bank in India. It has total assets in excess of Rs.
1.78 lakh crores, or Rs. 1,780 bn., a network of over 2800 branches and offices,
and about 1000+ ATMs. Bank of Baroda offers a wide range of banking products
and financial services to corporate and retail customers through a variety of
delivery channels and through its specialized subsidiaries and affiliates in the
areas of investment banking, credit cards and asset management.
ORIGIN OF BANK

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Prior to independence from the British Rule, the ancient India was ruled by princely
states, scattered over the width and breadth of the large Indian nation. The Maharajas of
the inner States of colonial India contributed to the welfare of their respective regions as
well as the Indian nation as a whole. Their vision and foresight in founding various
financial, charitable, social and philanthropic organizations during their time is still
cherished by any one going into the history of modern India and its achievements in
every walk of life.

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The Maharaja of Baroda, a princely state of British India, by name Sir Sayyajirao
Gaekwad III, had the same vision in establishing a bank for servicing the public at large
and the citizens of Baroda State, a Gujarathi population in particular. On 20th July 1908,
Bank of Baroda was established under the rules of Companies Act 1897, in a small
building at Baroda, by the Maharaja with a paid up capital of Rs.10 lakhs. The guidelines
set by the Maharaja for the bank was to serve the people of the State of Baroda as well as
the neighboring regions with money lending, saving, transmission and encouraging the
development of arts, science, commerce and trade for the people.

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Even during the worst financial disaster caused by the First World War, during the period
1913 to 1917, when as many as 87 banks closed their shutters, Bank of India survived the
turbulence with its clear vision, ethical standards and financial prudence to grow from
strength to strength. There were heroes to sustain the development of this bank to its
present glory, from ordinary people as customers and the heirs of the Royal family of
Baroda.

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The success story of the Bank of Baroda is studded with many a leaps and
strides it made in the International presence, apart from establishing branches all over the
Indian nation, by acquisition of already popular banking entities, as also commencing
new commercial banking establishments, in the unique Gujarathi style. During the years
of 1908 to 2007 (and the century year being round the corner) Bank of Baroda’s growth
owes to the excellence in rendering financial products and services to the national and
international population. Countries beginning from America to Zambia, in the
alphabetical order have been enjoying the services of Bank of Baroda as of today.

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A brief statistics will reveal the magnitude of growth Bank of India has achieved today :
fifth largest bank in India; total assets over 1,78,000 crores; number of offices and
branches 2800; more than 1000 ATMs, notwithstanding affiliates, subsidiaries and
delivery channels all over the world.

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Management Team
Mr. M D Mallya
Chairman & Managing Director

Bank of Baroda
Mr. R K Bakshi

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Executive Director
Bank of Baroda

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Mr. N S Srinath
Executive Director
Bank of Baroda
Mr. S S Mundra
Chief Executive
Bank of Baroda European Operations

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B. NATURE OF THE BUSINESS CARRIED
Bank of Baroda, a premier Public Sector Bank from India, commenced its operations in
Singapore on September 19, 2006, as an Offshore Branch.

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Bank of Baroda, which celebrated its centenary year, has over 3000 branches across the
length and breadth of India and has its footprints in 25 countries across 78 offices across
the globe.
Its Offshore Branch in Singapore offers a wide variety of products and services to
individuals as well as institutional customers, which include acceptance of deposits in
major currencies, syndicated loan, trade finance and other allied services in foreign
exchange and corporate finance.

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C. VISSION, MISSION AND QUALITY POLICY
MISSION

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“Our mission is to be a top ranking National Bank of International Standards committed

to augmenting stake-holders' value through concern, care and competence”.
VISSION
• To evolve as a Retail organization.

• To evolve as a retail banker of preferred choice in the chosen markets.

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• To permeate sale and service culture across the organization.

• To meet the life cycle and life style needs of consumers matching with their rising
aspirations.
QUALITY POLICY

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To provide loan and be competitive in area where bank operates as per quality system of
ISO 9001:2000 certification for 15 branches. By end of the current financial, the Bank is
targeting 54 more branches for this quality certification.
D. PRODUCT/SERVICES PROFILE
• Retail Banking
• Rural/Agri Banking

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• Wholesale Banking
• SME Banking
• Wealth Management
• Demat
• Product Enquiry
• Internet Banking
• NRI Remittances

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• Baroda e-Trading
• Interest Rates
• Deposit Products
• Loan Products
• ATM / Debit Cards
Personal Services

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• Deposits
• Gen-Next
• Loans
• Credit Cards & Debit Cards
• Services
• Lockers
Corporate Services

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• Wholesale Banking
• Deposits
• Loans
• Advances
• Services
International Services

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• NRI Services
• FGN Currency Credits (Foreign Currency Credits)
• ECB (External Communication Borrowings)
• FCNR (B) Loans
• Offshore Banking
• Finance in Export and Import
• Correspondent Banking Facility
• International Treasury

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Treasury service of Bank of Baroda includes Domestic operations and Forex operations.
Domestic Services
• Deposits
• Priority Sector Advances
• Services
• Lockers

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Priority Sector Advances
• Small Scale Industries

• Small Business
• Retail Loans
• Schemes sponsored by the GOI (Government of India)
• Baroda General Credit Card Scheme (BGCC)
• Agriculture related Loans

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E. AREA OF OPERATION
Bank of Baroda had a worldwide network of over 3000 branches, out of which 637 were
located in Metro cities, 540 in urban areas, 649 in Semi-Urban locations, 1100 in Rural
areas and 74 outside India.

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F. OWNERSHIP PATTERN
Share Holding Pattern
Bank of Baroda share holding pattern

Entity Percentage
Govt of India 53.80%

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Domestic Institutions 22.10%

Foreign Institutional Investors 14.2%
Others 9.90%
G) COMPETITORS INFORMATION

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• State Bank of India

• Punjab National Bank
• Bank of India
• Canara Bank
• Union Bank
• IDBI Bank
• Oriental Bank

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• Central Bank
H. INFRASTRUCTURAL FACILITIES
• Fully Computerized Bank

• Core banking
• Mobile banking

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• Training Institutions
• Internet Facility.
I. ACHIEVEMENTS/AWARDS
AWARD
• "Association of Business Communicators of India (ABCI) Awards (2006)"

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• Bank of Baroda is adjudged one of the top 10 Marketers

• Bank of Baroda awarded the Outlook Money NDTV Profit Awards 2007.
• AMITY Leadership Award for Sectoral Excellence in Banking
• SKOCH Challenger Award for Change Management
• IMC Ramakrishna Bajaj National Quality Award
• SPJIMR Marketing Impact Awards (SMIA) 2007
• The Employer Branding Awards 2007

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• Association of Business Communicators of India (ABCI) Awards

• Bank of Baroda bags three Awards of ABCI for the year 2008
• Bank awarded for its "Global Business Development"
Milestones we have achieved

The Bank has provided around a dozen CEOs to the industry – men who went on to build

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other great institutions. People initiatives were blended with IR initiatives to create an
effectively harmonious workplace, where everyone prospered.
J. WORKFLOW MODEL (END TO END)
Customers, who are interested in depositing or in need of the various types of

loans, would approach the near by Branch of BOB for their requirements. Since the bank

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has numerous Branches all over the country, the customers are able to approach the
nearby branch easily. Once the proposal of the customer has been accepted and if it is
within the powers of Branch manager, he will render the requisite services by according
sanction. If not, he will send the proposal to the appropriate delegated authority i.e.
Regional Office or Circle Office as the case may be.
Finally, if the credit amount is more than the limits of Circle Office, then Head
Office will be approached for sanction.

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K. FUTURE GROWTH AND PROSPECTS
The Bank will emerge stronger, more resilient and positioned to become India's first bank
of truly global standards. The relocation to the imposing Baroda Corporate Centre is a
true reflection of the Bank's resolve to move ahead of the times. It will not be out of place
now, 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'.

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3. MCKENSY’s 7s FRAME WORK
Mckensy’s frame work got its birth from the system’s Management
approach, where the system’s approach is based on the view that an organization is
an open system composed of inter –related and independent element.

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Where as Mckensy’s frame work is a frame work where there are 7

organizational factors which are interdependent factors have to be managed
harmoniously for the effective and efficient functioning of the organization.
The frame work’s 7s are:-
1. Structure

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2. Skill
3. Style
4. Strategy
5. Systems

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6. Staff
7. Shared value
PICTORAL REPRESENTATION OF MCKENSY’S 7S MODEL

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STRUCTURE:

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BANK OF BARODA
(GULBARGA BRANCH)

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BRANCH MANAGER
MANAGER
1 ACCOUNTANT 1 CASHIER

2 COUNTER
OFFICERS
2 CLERKS
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2 PEONS
SKILLS
• The distinctive competencies that reside in the organization. Can be distinctive

competencies of people, management practices, system, and/or technology.

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• The Company or Organization has the employees who have various talents and
skills.
• They are not only skilled but also hardworking, honest efficient and innovative in
nature.
• The employees are well experienced and having good skills.
• The employees are having high morale.

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STYLES:
BOB follows top down approach. The decision flow is through top to down direction.
The supervision process flows in same direction that is top down approach. As bank
structure is organized every department has to perform their part of job, for this they
require decision power which is followed in bank. So it follows authoritarian style.

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STRATEGY:
Strategy is a course of action through which an organization relates itself with

environment so as to achieve its objectives”. The way in which competitive advantage
will be achieved. Strategy implies a game plan to achieve the defined business goals.
Every business uses a unique strategy to reach its destiny.

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BOB which mainly focuses on Canvassing low cost deposits, improving non-fund
business, identifying the customer needs, reading the required loan to the customers and
giving polite service.
SYSTEMS:
System is a Formal and Informal procedures that support the strategy and
structure. The organization has good management control system, resource allocation

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systems and distribution systems the process is predetermined rules and regulations
liberally delegated.
All departments are having their own rules, regulations and procedures for the
customer service and which can be reviewed from the HOD.
STAFFS:

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The staff of BOB can be classified under the ground of Top level, Middle level, and
Lower level:
• On the basis of top level the decision maker as well as who holds authority and
responsibilities of bank is the head of branch, manager and assistant manager.
• On the basis of middle level the technical, supervision, computerized, record and
all maintenance activity are performed. It includes special assistant, probationary
officer, computer operator, and single window operator.
• On the basis of lower level the labor work is performed like sweeping.

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SHARED VALUES:

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The core of fundamentals values that are widely in the organization and serve as
guiding principles those are important. These values have meaning because they focus
attention and provide a border sense of purpose. In the organization there exists lots of
mutual understanding and strong interaction among employees.
BOB is purely development and service providing oriented rather than profit
oriented. Shared values help to improve the service to their customers and also balance

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the growth of region and develop the backward areas. The main social objective is
removal of regional imbalances in the State as well as in the country.
4) SWOT ANALYSIS
STRENGHTS:

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• BANK has good country wide presence, BANK also has overseas presence with
profitable overseas operations.
• It also has fully computerized business at all branches.
• BANK has 1,500 rural branches in order to serve the agriculture sector in the
form of different loan to all categories of farmers like poor farmers, marginal
farmers, etc.
• Overseas posting is easily accessible.

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• Excellent work performance.

• All the staff members are experienced and smart workers.
WEAKNESSES:
• There are limited ATMs in Gulbarga which is inconvenient.

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• BOB has poor recovery of loan.
OPPORTUNITIES:
• As computerized banking is available, more E-banking facilities can be

developed.
• There is an opportunity to expand its branches to several areas.

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• The bank has opportunity to enlarge its business to other part of city and wherein
it can increase its customer base.
THREATS:
Major threat appearing is the huge competition from Punjab national bank and
corporation bank.

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5. ANALYSIS OF FINANCIAL STATEMENT
BALANCE SHEET as on 31st march, 2009

(
Rs. 000’s)

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Partic
ulars As on 31.3.2009 As on 31.3.2008
Capital and liabilities

Capital 365,53,77 365,52,77
Reserves and surplus 124,70,01,35 106,78,39,91
Deposits 1923,96,95,17 1520,34,12,72
Borrowings 5636,08,59 3927,04,80
Other liabilities and provisions 165,38,14,66 125,94,41,42
TOTAL 2274,06,72,54 1795,99,51,62
Assets
Cash & balance with RBI 105,96,34,35 9369,72,34
Balance with Bank, money at call 134,90,77,35 129,29,56,33
Investments 524,45,87,58 438,70,06,78
Advances 1439,85,89,61 1067,01,32,41
Fixed assets 2309,71,93 2427,00,81
Other assets 4578,11,72 4301,82,95
TOTAL 2274,06,72,54 1795,99,51,62
Contingent liabilities 733,86,09,83 823,62,32,83
Bills for collections 139,63,99,04 8315,01,73

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PROFIT AND LOSS ACCOUNT for the year ended 31 march, 2009
(Rs.000’s)
particulars Year ended 31 march, Year ended 31 march,
2009 2008
l. income
Interest earned 150,91,57,74 118,13,47,67
Other income 2757,65,80 2051,03,61
TOTAL 178492354 138645128

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ll. expenditure
Interest expended 9968,16,76 7901,67,06
Operating expenses 3576,06,17 3034,29,21
Provisions & contingencies 2077,80,43 1493,02,86
TOTAL 156,22,03,36 124,28,99,13
lll. Profit
Net profit for the year 2227,20,18 1435,52,15
Available for appropriation 2227,20,18 1435,52,15
Appropriation transfer to:

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a) statutory reserve 556,80,05 358,88,04

b) capital reserve 358,25,58 8464,85
c) revenue & other reserves
l. general reserve 707,41,44 650,35,08
ll. special reserve 220,00,00
lll. Statutory reserve 1,17,48 70,30
d) proposed dividend 3835563 340,93,88
TOTAL 2227,20,18 1435,52,15

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Basic and diluted EPS RS. 61.14 RS. 39.41
PERFORMANCE HIGHLIGHTS

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• Total Business (Deposit+Advances) increased to Rs 3, 36,383 crore reflecting a

growth of 30.01%.
• Gross Profit and Net Profit were Rs 4,305.01 crore and Rs 2,227.20 crore
respectively. Net Profit registered a growth of 55.2% over previous year.
• Credit-Deposit Ratio stood at 82.36% as against 77.32%.
• Retail Credit posted a modest growth of 16.3% constituting 17.8% of the Bank’s
Gross Domestic Credit in FY09.

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• Net Interest Margin (NIM) as per cent of interest earning assets was at the level of
2.91%.
• Net NPAs to Net Advances stood at 0.31% this year against 0.47% last year.
• Capital Adequacy Ratio (CAR) as per Basel I stood at 12.88% & as per Basel II at
14.05%.
• Net Worth improved to Rs 11,387 crore registering a rise of 19.52%.
• Book Value improved from Rs 261.54 to Rs 312.61 on year.
• Business per Employee moved up from Rs 710 lacs to Rs 914 lacs on year.

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6. LEARNING EXPERIENCE
Bank of Baroda is a Financial Institution providing various Financial Services

and licenses are granted to Banks by Financial Supervision authorities who provide rights
to conduct the most fundamental banking services such as accepting deposits and making
loans.

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In my ten week project work, I have learnt how the BOB Bank runs its huge
organization with the support from various departmental wings. The success of BOB has
shown how the various functional wings are well coordinated to render its best of service
of their customers. In my training I learnt how the BOB formulates its strategies and
policies to deliver its services and compete with other Nationalized, co-operative, foreign
and private banks. The powers and authority have been decentralized wherever it is

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needed so that the managers have the required power to grant loans on a case to case
basis at the earliest.
BOB maintains good relationship with customers by providing necessary service

so as to face competition and challenge to other banks.
In the training, I have come to know how the Bank functions, how the proposal of
the customer flows through various stages and successfully sanctions the proposal. The

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experience gained by me during the in project at BOB was very useful, good and
knowledgeable. The project has enriched my knowledge and helped me to gain a through
understanding of functions and working of BOB. It has helped me to improve my
presentation skills, communication and personality development.

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1. GENERAL INTRODUCTION
FINANCIAL ANALYSIS
Financial analysis is the process of identifying the financial strengths and weaknesses of
the firm and establishing relationship between the items of the balance sheet and profit &
loss account. Financial ratio analysis is the calculation and comparison of ratios, which
are derived from the information in a company’s financial statements. The level and

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historical trends of these ratios can be used to make inferences about a company’s
financial condition, its operations and attractiveness as an investment. The information in
the statements is used by
• Trade creditors, to identify the firm’s ability to meet their claims i.e. liquidity
position of the company.
• Investors, to know about the present and future profitability of the company and
its financial structure.

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• Management, in every aspect of the financial analysis. It is the responsibility of

the management to maintain sound financial condition in the company.
NATURE OF RATIO ANALYSIS
Ratio analysis is a technique of analysis and interpretation of financial statements. It is

the process of establishing and interpreting various ratios for helping in making certain

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decisions. It is only a means of understanding of financial strengths and weaknesses of a

firm. There are a number of ratios which can be calculated from the information given in
the financial statements, but the analyst has to select the appropriate data and calculate
only a few appropriate ratios. The following are the four steps involved in the ratio
analysis.
• Selection of relevant data from the financial statements depending upon the
objective of the analysis.
• Calculation of appropriate ratios from the above data.

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• Comparison of the calculated ratios with the ratios of the same firm in the past, or
the ratios developed from projected financial statements or the ratios of some
other firms or the comparison with ratios of the industry to which the firm
belongs.
A. STATEMENT OF THE PROBLEM

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Ratio analysis is a very analytical technique to raise pertinent questions on number of

managerial issues. It provides bases or clues to investigate such issues in detail. While
assessing the financial health of the company, ratio analysis answers to the questions
relating to company’s profitability, assets utilization and liquidity and financial
capabilities of the company.
The statement of the problem can be generalized here as:

• Analysis of liquidity and profitability of the current assets and current liabilities.

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• Detection of the reason for the variability of profits.

• Analysis of relationship between assets and liabilities.
• Find out the business fluctuations, technical developments, etc on financial
performance.
• Analysis of various components of working capital such as cash marketable
securities, inventories and receivables.

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B. OBJECTIVE OF THE STUDY
• The main objective of the ratio analysis is to get the knowledge about the
financial position of BOB.
• To know about ratio prevailing at the end of different financial years.
• To form opinion about financial position of BOB.

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• To find out the solution to the unfavorable financial conditions and financial
performance.
• To determine the Profitability, Liquidity Ratios.
• To analyze the capital structure of the company.
• To offer appropriate suggestions for the better performance of the organization
C. SCOPE OF THE STUDY

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• The study has great significance and provides benefits to various parties whom
directly or indirectly interact with the company.
• It is beneficial to management of the company by providing crystal clear picture
regarding important aspects like liquidity, leverage, activity and profitability.
• The study is also beneficial to employees and offers motivation by showing how
actively they are contributing for company’s growth.

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• The investors who are interested in investing in the company’s shares will also get
benefited by going through the study and can easily take a decision whether to
invest or not to invest in the company’s shares.

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D. METHODOLOGY
The information is collected through primary and secondary sources during the project.
That information was utilized for calculating performance evaluation and based on that,
interpretations were made.
The primary source includes the discussion with clerk-cum-cashier of BOB.

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Sources of secondary data:
• Most of the calculations are made on the financial statements of the company
provided statements.
• Referring standard texts and referred books collected some of the information
regarding theoretical aspects.
• Method- to assess the performance of the company method of observation of the
work in finance department in followed.

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E. LIMITATIONS OF THE STUDY
• The changing prices make interpretation of ratio analysis difficult.

• One of the factors of the study was lack of availability of ample information.
Most of the information has been kept confidential and as such as not assed as art
of policy of company.

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2. ANALYSIS AND INTERPRETATION
RATIO ANALYSIS

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Ratio analysis is a widely used tool of financial analysis. It is defined as the systematic use of
ratio to interpret the financial statements so that the strength and weaknesses of a firm as well
as its historical performance and current financial condition can be determined. The term
ratio refers to the numerical or quantitative relationship between two variables.
SIGNIFICANCE OF RATIO ANALYSIS

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Ratio analysis is an important technique of analyzing the financial statement and it helps
the analyst to make quantitative judgment with regard to concerns financial position and
performance. The followings are the main points of importance of ratio analysis are;
• Helps in decision-making
• Helps in financial forecasting and planning helps in communication
• Helps in co-coordinating
• Helps in control

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INTERPRETATION OF THE RATIOS
The interpretation of ratios is an important factor. The inherent limitations of ratio

analysis should be kept in mind while interpreting them. The impact of factors such as
price level changes, change in accounting policies, window dressing etc., should also be
kept in mind when attempting to interpret ratios.

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Classification of Ratios
1. Liquidity ratio
2. Leverage ratio
3. Activity ratio
4. Profitability ratio.
5. Market ratio.

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1. LIQUIDITY RATIOS
Liquidity refers to the ability of a concern to meet its current obligations as & when there
becomes due. The short term obligations of a firm can be met only when there are
sufficient liquid assets.
• Current ratio
A. CURRENT RATIO:

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Current ratio may be defined as the relationship between current assets and current
liabilities. This ratio also known as Working capital ratio is a measure of general liquidity
and is most widely used to make the analysis of a short-term financial position (or)
liquidity of a firm.
Formula
Current assets

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Current ratio =
Current liabilities
2. LEVERAGE RATIOS

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The leverage or solvency ratio refers to the ability of a concern to meet its long term
obligations. Accordingly, long term solvency ratios indicate firm’s ability to meet the
fixed interest and costs and repayment schedules associated with its long term
borrowings. The following ratio serves the purpose of determining the solvency of the
concern.
• Proprietary ratio
• Debt to equity ratio

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• Current assets to fixed assets
A. PROPRIETARY RATIO
A variant to the debt-equity ratio is the proprietary ratio which is also known as equity
ratio. This ratio establishes relationship between share holders’ funds to total assets of the
firm.

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Formula
Shareholders funds
Proprietary ratio =
Total assets

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B. DEBT TO EQUITY
Indicates how well creditors are protected in case of the company's insolvency.
Formula

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Total Debt
Total Equity
C. CURRENT ASSETS TO FIXED ASSETS RATIO
This ratio differs from industry to industry. The increase in the ratio means that trading is
slack or mechanization has been used. A decline in the ratio means that debtors and

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stocks are increased too much or fixed assets are more intensively used. If current assets
increase with the corresponding increase in profit, it will show that the business is
expanding.
Formula
Current Assets
Current Assets to Fixed Assets Ratio =

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Fixed Assets

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3. PROFITABILITY RATIOS
The primary objectives of business undertaking are to earn profits. Because profit is the
engine, that drives the business enterprise
• Return on total asset

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• Return on equity
• Reserves and surplus to capital ratio
• Return on net worth
A. RETURN ON TOTAL ASSETS

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Profitability can be measured in terms of relationship between net profit and assets. This
ratio is also known as profit-to-assets ratio. It measures the profitability of investments.
The overall profitability can be known.
Formula
Net profit
Return on assets =
Total assets

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B. RETURN ON EQUITY
Measures the income earned on the shareholder's investment in the business.
Formula
Net Income
Equity

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C. RESERVES AND SURPLUS TO CAPITAL RATIO
It reveals the policy pursued by the company with regard to growth shares. A very high
ratio indicates a conservative dividend policy and increased ploughing back to profit.
Higher the ratio better will be the position.

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Formula
Reserves& surplus
Reserves & surplus to capital =
Capital
D. RETURN ON NET WORTH

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This volume ratio indicates how many return dollars are generated with each dollar of
investment (net worth).
Formula
Net profit
Return on net worth =
Net worth

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4. MARKET SHARE
Market Value Ratios relate an observable market value, the stock price, to book values
obtained from the firm's financial statements.
• Earning per share

• Dividend per share

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• Price-earning ratio
A. EARNINGS PER SHARE
Earnings per share ratio are used to find out the return that the shareholder’s earn from
their shares. After charging depreciation and after payment of tax, the remaining amount
will be distributed by all the shareholders.

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Formula
Net profit after tax

Earnings per share =
Number of Equity shares
B.DIVIDEND PER SHARE
Dividend per share is calculated by dividing dividend and number of equity shares.

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Formula
Total amount of Dividend

Dividend per share =
Number of outstanding shares

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C. PRICE / EARNING RATIO
The Price-Earnings Ratio is calculated by dividing the current market price per share of
the stock by earnings per share (EPS). (Earnings per share are calculated by dividing net

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income by the number of shares outstanding.) The P/E Ratio indicates how much
investors are willing to pay per dollar of current earnings. As such, high P/E Ratios are
associated with growth stocks.
Formula
Market Price per Share

Price / Earning Ratio =

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Earning Per Shares

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Common Size Analysis (Vertical and Horizontal):
The term "trend analysis" refers to the concept of collecting information and attempting
to spot a pattern, or trend, in the information. In some fields of study, the term "trend
analysis" has more formally-defined meanings. Although trend analysis is often used to
predict future events, it could be used to estimate uncertain events in the past. Financial
statement information is used by both external and internal users, including investors,
creditors, managers, and executives. These users must analyze the information in order to

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make business decisions, so understanding financial statements is of great importance.

Several methods of performing financial statement analysis exist. I will discuss two of
these methods: horizontal analysis and vertical analysis.
Horizontal Analysis
Methods of financial statement analysis generally involve comparing certain information.

The horizontal analysis compares specific items over a number of accounting periods.

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For example, accounts payable may be compared over a period of months within a fiscal
year, or revenue may be compared over a period of several years. It is a procedure in
fundamental analysis in which an analyst compares ratios or line items in a company's
financial statements over a certain period of time. The analyst will use his or her
discretion when choosing a particular timeline; however, the decision is often based on
the investing time horizon under consideration.

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VERTICAL ANALYSIS
It is a method of financial statement analysis in which each entry for each of the three
major categories of accounts (assets, liabilities and equities) in a balance sheet is

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represented as a proportion of the total account. The main advantages of analyzing a

balance sheet in this manner are that the balance sheets of businesses of all sizes can
easily be compared. It also makes it easy to see relative annual changes in one business.
When using vertical analysis, the analyst calculates each item on a single financial
statement as a percentage of a total. The term vertical analysis applies because each year's
figures are listed vertically on a financial statement.
The total used by the analyst on the income statement is net sales revenue, while on the
balance sheet it is total assets. This approach to financial statement analysis, also known

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as component percentages, produces common-size financial statements. Common-size

balance sheets and income statements can be more easily compared, whether across the
years for a single company or across different companies.

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1. LIQUIDITY RATIOS
CURRENT RATIO:
Formula
Current assets

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Current ratio =
Current liabilities
2.1 TABLE SHOWING CURRENT RATIO OF THE BANK
(Rs. In 000)

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YEAR CURRENT CURRENT RATIO

ASSET LIABLITIES
2006 39911639 70839004 0.56
2007 52125045 84376961 0.61
2008 43018295 125944142 0.34

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2009 45781172 165381466 0.27

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2.1 GRAPH SHOWING CURRENT RATIO OF THE BANK

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0.7
0.6
0.5
0.4
0.3 RATIO
0.2
0.1
0
2006 2007 2008 2009

BANK OF BARODA
Interpretation:
As a rule, the current ratio with 2:1 (or) more is considered as satisfactory position of the
firm. But BOB is not maintaining liquidity and it was increased in 2007 and decreasing

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over 2 years. The current ratio in year 2006, 2007, 2008 and 2009 is 0.56, 0.61, 0.34 and
0.27 respectively.
2. LEVERAGE RATIOS

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PROPRIETARY RATIO:
Formula
Shareholders funds
Proprietary ratio =
Total assets

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2.2 TABLE SHOWING PROPRIETARY RATIO OF THE BANK

BANK OF BARODA
(Rs. In 000)
YEAR SHAREHOLDERS TOTAL ASSET RATIO

FUND
2006 78444346 1133925273 0.069
2007 86499376 1431461746 0.060
2008 110439268 1795995162 0.061

2009 128355412 2274067254 0.056
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2.2 GRAPH SHOWING PROPRIETARY RATIO OF THE BANK

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0.07
0.06
0.05
0.04
0.03 RATIO
0.02
0.01
0
2006 2007 2008 2009

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Interpretation:
It determines the long-term solvency of the firm. This ratio indicates the extent to which
the assets of the company can be lost without affecting the interest of the company.

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The proprietary ratio decreases from 0.069 to 0.056 in the year 2009. The shareholders
fund increases over the five years, this shows that there is increase the profitable of the
bank.
DEBT TO EQUITY:

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Formula
Total debt
Debt to equity =
Total Equity
2.3 TABLE SHOWING DEBT EQUITY RATIO OF THE BANK

BANK OF BARODA
(Rs. In 000)
YEAR TOTAL DEBT TOTAL RATIO

EQUITY
2006 48022007 78444346 0.61
2007 11425614 86499376 0.13

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2008 39270480 110439268 0.35
2009 56360859 128355412 0.44

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2.3 GRAPH SHOWING DEBT EQUITY RATIO OF THE BANK

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0.7
0.6
0.5
0.4
0.3 RATIO
0.2
0.1
0
2006 2007 2008 2009

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Interpretation:
Debt-equity ratio in the year 2006 was 0.61 and it had decreased to 0.13 in the year 2007
and increased in next 2 years.

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CURRENT ASSETS TO FIXED ASSETS RATIO:

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Formula
Current Assets
Current Assets to Fixed Assets Ratio =
Fixed Assets

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2.4 TABLE SHOWING CURRENT ASSETS TO FIXED ASSETS

RATIO OF THE BANK
(Rs. In 000)
CURRENT FIXED
YEAR ASSET ASSETS RATIO
2006 39911639 9207269 4.33

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2007 52125045 10888075 4.79
2008 43018295 24270081 1.77
2009 45781172 23097193 1.98

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2.4 GRAPH SHOWING CURRENT ASSETS TO FIXED ASSETS

RATIO OF THE BANK

BANK OF BARODA
5
4.5
4
3.5
3
2.5
RATIO
2
1.5
1
0.5
0
2006 2007 2008 2009
BANK OF BARODA
Interpretation:
The current asset to fixed asset ratio of the bank was decreasing as fixed assets are more
intensively used in the bank. The ratio in year 2006 was 4.33 which increased to 4.79 in

BANK OF BARODA
the year 2007 and decreased to 1.77 in year 2008 and later increased to 1.98 in the year
2009.
3. PROFITABILITY RATIOS
RETURN ON TOTAL ASSETS:

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.
Formula
Net profit
Return on assets =
Total assets
2.5 TABLE SHOWING RETURN ON ASSET RATIO OF THE BANK

BANK OF BARODA
(Rs. In 000)
YEAR NET PROFIT TOTAL ASSET RATIO
2006 8269597 1133925273 0.73
2007 10264645 1431461746 0.72

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2008 14355215 1795995162 0.80
2009 22272018 2274067254 0.98

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2.5 GRAPH SHOWING RETURN ON ASSET RATIO OF THE

BANK

BANK OF BARODA
1
0.9
0.8
0.7
0.6
0.5
RATIO
0.4
0.3
0.2
0.1
0
Appa Institute
2006 of Engineering
2007 2008 &Technology
2009
BANK OF BARODA
Interpretation:
The ratio indicates the return on total assets in the form of profits.
The return of total asset in the year 2006 was 0.73; in 2007 0.72; in 2008 0.80 and in
2009 it increased to 0.98 this shows the increase in profit of the bank.

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RETURN ON EQUITY:
Formula

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Net income
Return on Equity =
Equity
2.6 TABLE SHOWING RETURN ON EQUTY RATIO OF THE

BANK
(Rs. In 000)

BANK OF BARODA
YEAR NET INCOME EQUITY RATIO
2006 8269597 78444346 10.54
2007 10264645 86499376 12.00
2008 14355215 110439268 13.00

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2009 22272018 128355412 17.00

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2.6 GRAPH SHOWING RETURN ON EQUTY RATIO OF THE BANK

BANK OF BARODA
18
16
14
12
10
8 RATIO
6
4
2
0
2006
Appa Institute of2007 2008 &Technology
Engineering 2009
BANK OF BARODA
Interpretation:
The bank equity ratio recorded are 10.54, 12.00, 13.00 and 17.00 in the year 2006, 2007,
2008, 2009 respectively this shows continuously increase in the equity ratio of the bank
which measures the net income.

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RESERVES AND SURPLUS TO CAPITAL RATIO:
Formula

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Reserves& surplus
Reserves & surplus to capital =
Capital
2.7 TABLE SHOWING RESERVES AND SURPLUS TO CAPITAL

RATIO OF THE BANK

BANK OF BARODA
(Rs. In 000)
YEAR RESERVES CAPITAL RATIO

AND SURPLUS
2006 74789072 3655274 20.46
2007 82844100 3655277 22.66

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2008 106783991 3655277 29.21
2009 124700135 3655277 34.11

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2.7 GRAPH SHOWING RESERVES AND SURPLUS TO CAPITAL

RATIO OF THE BANK

BANK OF BARODA
35
30
25
20
15 RATIO
10
5
0
2006 2007 2008 2009

BANK OF BARODA
Interpretation:
The ratio is used to reveal the policy pursued by the company a very high ratio indicates a
conservative dividend policy and vice-versa. Higher the ratio better will be the position.
The ratio of the bank was increasing over year; the ratios are 20.46, 22.66, 29.21 and
34.11 in the year 2006, 2007, 2008 and 2009 respectively.

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RETURN ON NET WORTH:

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Formula
Net profit
Return on net worth =
Net worth
2.8 TABLE SHOWING RETURN ON NET WORTH OF THE BANK

BANK OF BARODA
(Rs. In 000)
YEAR NET INCOME NET WORTH RATIO
2006 8269597 78444400 10.54
2007 10264645 86499400 11.86

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2008 14355215 110439300 12.99
2009 22272018 128355400 17.35

BANK OF BARODA
2.8 TABLE SHOWING RETURN ON NET WORTH OF THE BANK

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18
16
14
12
10
8 RATIO
6
4
2
0
2006 2007 2008 2009

BANK OF BARODA
Interpretation:
The return on net worth were increasing year by year in the year 2006, 2007, 2008, and
2009 the ratios were 10.54, 11.86, 12.99 and 17.35.

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4. MARKET SHARE:
EARNINGS PER SHARE:
Formula
Net profit after tax

Earnings per share =
Number of Equity shares

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2.9 TABLE SHOWING EARNING PER SHARE RATIO OF THE

BANK
(Rs. In 000)
YEAR NET PROFIT NUMBER OF RATIO

AFTER TAX EQUITY
SHARES

BANK OF BARODA
2006 8269597 365527.4 22.62
2007 10264645 365527.6 28.08
2008 14355215 365527.7 39.27
2009 22272018 365527.7 61.00

BANK OF BARODA
2.9 GRAPH SHOWING EARNING PER SHARE RATIO OF THE

BANK

BANK OF BARODA
70
60
50
40
30 RATIO
20
10
0
2006 2007 2008 2009
BANK OF BARODA
Interpretation:
The earning per share of the bank recorded are 22.62, 28.28, 39.27 and 61.00 in the year
2006, 2007, 2008 and 2009 respectively this shows the continuous increase in the earning
per share of the bank.

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DIVIDEND PER SHARE:

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Formula
Total amount of Dividend

Dividend per share =
Number of outstanding shares

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2.10 TABLE SHOWING DIVIDEND PER SHARE RATIO OF THE

BANK
(Rs. In 000)
YEAR TOTAL NUMBER OF RATIO

AMOUNT OF OUTSTANDING
DIVIDEND SHARES

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2006 2076769 365527.4 6.00
2007 2524584 365527.6 7.00
2008 3409388 365527.7 9.00
2009 3835563 365527.7 10.00

BANK OF BARODA
2.10 GRAPH SHOWING DIVIDEND PER SHARE RATIOOF THE

BANK

BANK OF BARODA

BANK OF BARODA
10
9
8
7
6
5
RATIO
4
3
2
1
0
2006 2007 2008 2009
BANK OF BARODA
Interpretation:
The dividend per share of the bank recorded are 6, 7, 9 and 10 in the year 2006, 2007,
2008 and 2009 which was increasing, this shows the dividend per share paid by the bank.

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PRICE / EARNING RATIO:
Formula
Market Price per Share

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Price / Earning Ratio =

Earning Per Shares
2.11 TABLE SHOWING PRICE / EARNING RATIO OF THE BANK
(Rs. In 000)

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YEAR MARKET EARNING PER RATIO

PRICE PER SHARE
SHARE
2006 214.61 22.62 9.49
2007 236.64 28.08 8.43

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2008 302.14 39.27 7.69
2009 351.15 61 5.76

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2.11 GRAPH SHOWING PRICE / EARNING RATIO OF THE BANK

BANK OF BARODA
10
9
8
7
6
5
RATIO
4
3
2
1
0
Appa Institute
2006 of Engineering
2007 2008 &Technology
2009
BANK OF BARODA
Interpretation:
The market price per share is increased due to the increase in the reserves & surplus. The
earnings per share are also increased greatly compared with the last year because of
increase in the net profit. So, the ratio is decreased compared with the previous year.

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It was 9.49 in year 2006 and decreased to 5.76 in 2009.
2.12 HORIZONTAL ANALYSES OF BALANCE SHEET

BANK OF BARODA
2006 2007 2008 2009

particulars
amoun % amoun % amoun % amoun %
t t t t
ASSETS
Cash & 33.33 10 64.13 192.4 93.69 281.1 105.96 317.91

balance with 0 1 0
RBI
Balance with 101.21 10 118.66 117.2 129.29 127.4 134.90 133.29
Bank, money 0 4 7
at call
Investment 351.14 10 349.43 99.51 438.70 124.9 524.45 149.36
0 4
Advance 599.11 10 836.20 139.5 1067.01 178.1 1439.85 241.33
0 4 0
Fixed assets 9.20 10 10.88 118.2 24.27 263.8 23.09 250.98
0 6 0
Other assets 39.91 10 52.12 130.5 43.01 107.7 45.78 114.71
0 9 7
TOTAL 1133.92 1431.46 1795.99 2274.06
LIABILITIES
Capital 3.65 10 3.65 100 3.65 100 3.65 100

0
Reserve and 74.78 10 82.84 110.7 106.78 142.7 124.70 166.75
surplus 0 8 9
Deposits 936.61 10 1249.15 133.3 1520.34 162.3 1923.96 205.42
0 7 2
Borrowings
Appa Institute 48.02 10 11.42 &Technology
of Engineering 23.78 39.27 81.78 56.36 117.37
P. G. Department of 0Management Studies,
Other liabilities 70.83 10 84.37 119.1 125.94 177.8 165.38 233.49
0 2 1
TOTAL 1133.92 1431.46 1795.99 2274.06
BANK OF BARODA
2.13 VERTICAL ANALYSES OF BALANCE SHEET

BANK OF BARODA
2006 2007 2008 2009

particulars
amoun % amoun % amoun % amoun %
t t t t
ASSETS
Cash & 33.33 2.9 64.13 4.4 93.69 5.2 105.96 4.6
balance with
RBI
Balance with 101.21 8.4 118.66 8.2 129.29 7.1 134.90 5.9
Bank, money
at call
Investment 351.14 30.9 349.43 24. 438.70 24.4 524.45 23.06
4
Advance 599.11 52.8 836.20 58. 1067.01 59.4 1439.85 63.33
3 4
Fixed assets 9.20 0.64 10.88 0.7 24.27 1.3 23.09 1.01
6
Other assets 39.91 4.5 52.12 3.6 43.01 2.3 45.78 2.01
TOTAL 1133.92 1431.46 1795.99 2274.06
LIABILITIES
Capital 3.65 0.32 3.65 0.2 3.65 0.20 3.65 0.16

5
Reserve and 74.78 6.5 82.84 5.7 106.78 5.9 124.70 5.4
surplus
Deposits 936.61 82.5
1249.15 87. 1520.34 84.4 1923.96 84.60
2 6
Borrowings 48.02
Appa Institute 4.2 11.42 &Technology
of Engineering 0.8 39.27 2.1 56.36 2.4
P. G. Department of Management0 Studies,
Other 70.83 6.2 84.37 5.8 125.94 7.0 165.38 7.2
liabilities
TOTAL 1133.92 1431.46 1795.99 2274.06
BANK OF BARODA
2.14 COMPARATIVE BALANCE SHEET

BANK OF BARODA
particulars Amount
2006 2007 difference %
ASSETS
Cash & balance 33.33 64.13 30.8 92.41

with RBI
Balance with 101.21 118.66 17.45 17.24
Bank, money at
call
Investment 351.14 349.43 -1.71 -0.49
Advance 599.11 836.20 237.09 39.57
Fixed assets 9.20 10.88 1.68 18.26
Other assets 39.91 52.12 12.21 30.59
TOTAL 1133.92 1431.46
LIABILITIES
Capital 3.65 3.65 0.00 0.00

Reserve and 74.78 82.84 8.06 10.78
surplus
Deposits 936.61 1249.15 312.54 33.37

Borrowings 48.02 11.42 -36.6 -76.22
Other liabilities 70.83 84.37 13.54 19.17
TOTAL 1133.92 1431.46

BANK OF BARODA
2.15 COMPARATIVE BALANCE SHEET

BANK OF BARODA
particulars Amount
2008 2009 difference %
ASSETS
Cash & balance 93.69 105.96 12.27 13.10

with RBI
Balance with 129.29 134.90 5.61 4.34
Bank, money at
call
Investment 438.70 524.45 85.75 19.55
Advance 1067.01 1439.85 372.84 34.94
Fixed assets 24.27 23.09 -1.18 -4.86
Other assets 43.01 45.78 2.77 6.44
TOTAL 1795.99 2274.06
LIABILITIES
Capital 3.65 3.65 0.00 0.00

Reserve and 106.78 124.70 17.92 16.78
surplus
Deposits 1520.34 1923.96 403.62 26.55

AppaBorrowings
Institute of Engineering
39.27 &Technology
56.36 17.09 43.52
Other liabilities 125.94 165.38 39.44 31.32
TOTAL 1795.99 2274.06

BANK OF BARODA
FINDINGS OF THE STUDY
1. The current ratio has shown in a fluctuating trend as 0.56, 0.61, 0.34, and 0.27 during
2006-2009 of which indicates a continuous increase in both current assets and current
liabilities.

BANK OF BARODA
2. The proprietary ratio has shown a fluctuating trend. The proprietary ratio is decreased
compared with the last year. So, the long term solvency of the firm is decreased.
3. Debt-equity ratio in the year 2006 was 61.22 and it had decreased to 13.22 in the year
2007 and increased in next 2 years.
4. The current asset to fixed asset ratio of the bank is decreasing as fixed assets are more
intensively used in the bank. The ratio in year 2006 was 4.33 which increased to 4.79 in

BANK OF BARODA
the year 2007 and decreased to 1.77 in year 2008 and later increased to 1.98 in the year
2009.
5. The return of total asset in the year 2006 was 0.73; in 2007-0.72; in 2008-0.80 and in
2009 it has been increased to 0.98 this shows the increase in profit of the bank.

BANK OF BARODA
6. The bank equity ratio recorded are 10.54, 12.00, 13.00 and 17.00 in the year 2006,
2007, 2008, 2009 respectively this shows continuously increase in the equity ratio of the
bank which measures the net income.
7. The reserve and surplus ratio of the bank has been increasing over year; the ratios are
20.46, 22.66, 29.21 and 34.11 in the year 2006, 2007, 2008 and 2009 respectively.

BANK OF BARODA
8. The return on net worth were increasing year by year in the year 2006, 2007, 2008, and
2009 the ratios were 10.54, 11.86, 12.99 and 17.35.
9. The earning per share of the bank recorded are 22.62, 28.28, 39.27 and 61.00 in the
year 2006, 2007, 2008 and 2009 respectively this shows the continuous increase in the
earning per share of the bank.

BANK OF BARODA
10. The dividend per share of the bank recorded are 6, 7, 9 and 10 in the year 2006, 2007,
2008 and 2009 which has been increasing, this shows the dividend per share paid by the
bank.
11. The price / earning ratio is decreased compared with the previous year. It was 9.49 in
year 2006 and decreased to 5.76 in 2009.

BANK OF BARODA

BANK OF BARODA
SUGGESTIONS:
1) After the analysis of Financial Statements, the company status is in better position.

BANK OF BARODA
2) The company profits are huge in the current year; it is better to declare the dividend to
shareholders.
3) The company is utilizing the fixed assets, which majorly help to the growth of the
organization. The company should maintain that perfectly.
4) The company fixed deposits are raised from the inception, it gives the other income
i.e., Interest on fixed deposits.

BANK OF BARODA

BANK OF BARODA

BANK OF BARODA
CONCLUSION
The company’s overall position is at a good position. Particularly the current year’s
position is well due to raise in the profit level from the last year position. It is better for
the organization to diversify the funds to different sectors in the present market scenario.

BANK OF BARODA

BANK OF BARODA

BANK OF BARODA

BANK OF BARODA
BIBLIOGRAPHY
REFFERED BOOKS
· FINANCIAL MANAGEMENT - I. M. PANDEY

· MANAGEMENT ACCOUNTANCY - PILLAI & BAGAVATI
· MANAGEMENT ACCOUNTING – SHARMA & GUPTA

BANK OF BARODA

BANK OF BARODA

BANK OF BARODA

BANK OF BARODA


MBA Finance Project

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BANK OF BARODA

Appa Institute of Engineering &Technology

Appa Institute of Engineering &Technology

Appa Institute of Engineering &Technology

Appa Institute of Engineering &Technology

Appa Institute of Engineering &Technology

They are as mentioned below:

• Phase II (1969- 1991) - Nationalization, regularization and growth

• Phase III (1991 onwards) - Liberalization and its aftermath

Appa Institute of Engineering &Technology

Appa Institute of Engineering &Technology

Appa Institute of Engineering &Technology

Retail banking, dealing directly with individuals and small businesses;

• business banking, providing services to mid-market business;

Appa Institute of Engineering &Technology

MAJOR PLAYER IN INDIA

Appa Institute of Engineering &Technology

2. ICICI BANK LTD

Appa Institute of Engineering &Technology

10. INDUSIND BANK LTD

INDIAN BANKING SYSTEM

Appa Institute of Engineering &Technology

Reserve Bank of India

Schedule Banks Non-Schedule Banks

Appa Institute of Engineering &Technology

State Bank of India Other Nationalized Regional Rural

Appa Institute of Engineering &Technology

A. BACKGROUND AND INCEPTION:

Appa Institute of Engineering &Technology

• Established on July 20, 1908 by Maharaja of Baroda Sir Sayajirao Gaekwad

Appa Institute of Engineering &Technology

Appa Institute of Engineering &Technology

Appa Institute of Engineering &Technology

Appa Institute of Engineering &Technology

Appa Institute of Engineering &Technology

Appa Institute of Engineering &Technology

Appa Institute of Engineering &Technology

Appa Institute of Engineering &Technology

Chairman & Managing Director

Appa Institute of Engineering &Technology

Appa Institute of Engineering &Technology

Appa Institute of Engineering &Technology

B. NATURE OF THE BUSINESS CARRIED

Appa Institute of Engineering &Technology

Appa Institute of Engineering &Technology

C. VISSION, MISSION AND QUALITY POLICY

Appa Institute of Engineering &Technology

“Our mission is to be a top ranking National Bank of International Standards committed

• To evolve as a Retail organization.

Appa Institute of Engineering &Technology

• To permeate sale and service culture across the organization.

Appa Institute of Engineering &Technology

Appa Institute of Engineering &Technology

Appa Institute of Engineering &Technology

Appa Institute of Engineering &Technology

Appa Institute of Engineering &Technology

Appa Institute of Engineering &Technology

Appa Institute of Engineering &Technology

Appa Institute of Engineering &Technology

Priority Sector Advances

• Small Scale Industries

Appa Institute of Engineering &Technology