INTRODUCTION

MEANING OF BANKING
A Bank is a financial intermediary which accepts deposits of money from the public and lends them with a view to make profits. Banks play an important role in the mobilization of deposits and disbursement of credit to various sectors of the economy. The banking sector is the lifeline of any modern economy. The strength of economy of any country basically depends on the strength and efficiency of the financial system. This in turn, depends on a sound and solvent banking system. A sound banking system efficiently deploys funds in productive sectors and a solvent banking system ensures that the bank is capable of meeting its obligation to the depositors. Through the mobilization of resources and their better allocation, Banks play an important role in the development process of developing countries. According to the Banking Regulation Act 1949 A Banking company means any company which transacts the business of banking. Banking means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable otherwise. on demand or otherwise, and withdrawable by cheque, draft or

HISTORY OF BANKING IN INDIA

History of Banking in India
India cannot have a healthy economy without a sound and effective banking system. The banking system should be hassle free and able to meet the new challenges posed by technology and other factors, both internal and external. In the past three decades, India's banking system has earned several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to metropolises or cities in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main aspects of India's growth story. The government's regulation policy for banks has paid rich dividends with the nationalization of 14 major private banks in 1969. Banking today has become convenient and instant, with the account holder not having to wait for hours at the bank counter for getting a draft or for withdrawing money from his account. 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:

Early phase of Indian banks, from 1786 to 1969 Nationalization of banks and the banking sector reforms, from 1969 to 1991 New phase of Indian banking system, with the reforms after 1991

Phase1
The first bank in India, the General Bank of India, was set up in 1786. Bank of Hindustan and Bengal Bank followed. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840), and Bank of Madras (1843) as independent units and called them Presidency banks. These three banks were amalgamated in 1920 and the Imperial Bank of India, a bank of private shareholders, mostly Europeans, was established. Allahabad Bank was established, exclusively by Indians, in 1865. Punjab National Bank was set up in 1894 with headquarters in Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. The Reserve Bank of India came in 1935. During the first phase, the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1,100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with the Banking Companies Act, 1949, which was later changed to the Banking Regulation Act, 1949 as per amending Act of 1965 (Act No. 23 of 1965). The Reserve Bank of India (RBI) was vested with extensive powers for the supervision of banking in India as the Central banking authority. During those days, the general public had lesser confidence in banks. As an aftermath, deposit mobilization was slow. Moreover, the savings bank facility provided by the Postal department was comparatively safer, and funds were largely given to traders.

Phase2
The government took major initiatives in banking sector reforms after Independence. In 1955, it nationalized the Imperial Bank of India and started offering extensive banking facilities, especially in rural and semi-urban areas. The government constituted the State Bank of India to act as the principal agent of the RBI and to handle banking transactions of the Union government and state governments all over the country. Seven

banks owned by the Princely states were nationalized in 1959 and they became subsidiaries of the State Bank of India. In 1969, 14 commercial banks in the country

were nationalized. In the second phase of banking sector reforms, seven more banks were nationalized in 1980. With this, 80 percent of the banking sector in India came under the government ownership.

Phase3
This phase has introduced many more products and facilities in the banking sector as part of the reforms process. In 1991, under the chairmanship of M Narasimham, a committee was set up, which worked for the liberalization of banking practices. Now, the country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking are introduced. The entire system became more convenient and swift. Time is given importance in all money transactions. The financial system of India has shown a great deal of resilience. It is sheltered from crises triggered by external macroeconomic shocks, which other East Asian countries often suffered. This is all due to a flexible exchange rate regime, the high foreign exchange reserve, the not-yet fully convertible capital account, and the limited foreign exchange exposure of banks and their customers.

FUNCTIONS OF BANKS
PRIMARY FUNCTIONS OR BANKING FUNCTIONS
(A) Accepting Deposits A Bank accepts deposits from individuals, firms and institutions. These deposits are the main sources of finance / revenue of a bank. The deposits received by bank can be as follows: 1. Savings Bank Deposits Savings Bank Deposits are generally kept by salaried persons having fixed income. These accounts can be opened with a small amount. These deposits carry a lower rate of interest than fixed deposits. 2. Current Account Deposits Demand Deposits are generally kept by businessmen, to meet their day-to-day business needs. Money deposited in the current account can be withdrawn in part or full any time. No interest is paid on these accounts. The banks keep almost 100% reserves against these deposits. 3. Fixed Deposits Fixed Deposits are deposits, which are made for fixed period of time which varies from 15 days to 5 years or more. These Deposits carry a high rate of interest. These deposits cannot be normally withdrawn before the expiry of period. If they are withdrawn there will be a loss of interest. At present the rate of interest varies from 5% to 8.5%

depending on the time period and the type of bank.

4. Recurring Deposits In case of such deposits, depositors are encouraged to deposit a specified amount at a regular interval i.e. monthly basis. Interest on these deposits is almost equal to that of Fixed Deposits. (B) Giving Loans Banks provide loans to its customers for short-and medium-terms. On these loans, the banks charge interest. Banks pay lower rate of interest for the deposits accepted and give loans at a higher rate of interest. The difference between the lending rate and deposit rate is the profit of the bank. But since the bank deals in peoples money, it has to keep some cash ready to meet the withdrawals of the depositors. 1. Overdraft Facility This facility is given to current account holders. Under such facility, the customer is allowed to withdraw excess amount than the amount that is available in his account upto a specified limit. Interest is charged on the excess amount withdrawn. 2. Cash Credit Cash loan is granted against the security of the goods or personal security of more than one person other than the borrower. Interest is charged on the actual amount withdrawn. 3. Discounting Bills of Exchange Now-a-days people do not wait for the bill of exchange to mature. Banks give loans to people by discounting bills of exchange. When bills of exchange mature banks get back their payment form the persons who have drawn the bill or who are liable to pay the bills. Banks get commission for discounting the bills.

4. Demand Loans or Money-at-call or Short Notice These loans are given by the banks for a very short period and are generally backed by some security. These loans have no stated maturity and are also called

as call loans. These loans are normally given to stock brokers, dealers in stock exchange etc. They are repayable on demand at 24 hours notice or at 7 days notice. The entire loan amount is paid in lump sum by crediting it to the loan account of the borrower. The interest is charged on the entire amount of loan. 5. Fixed-term Loans Such loans are generally given for a period of One to Ten years to traders, producers, industrialists etc. If the loan is taken for 5 years or more, rate of interest is higher. If loan is taken for 1 or 2 years the rate of interest is low. 6. Participation or Consortium Loans Sometimes two or more banks five fixed term loans to the industrialist against a common security. Such loans are called Consortium or Participation Loans. 7. Consumer Credit These loans are given to householders for the Purchase of durable consumer goods like washing machine, Television, Air Conditioners, Handy cams, Higher Education, Marriages etc. Such loans are repaid in easy installments within a given period of time. 8. Credit Creation Credit Creation is one of the most outstanding functions of a modern commercial bank. Hence, it is mostly said that banks are manufacturers of credit. Credit is created when one party (a person, a firm or an institution) lends money to another party.

(C) Development of Cheques This is also an important function of bank in settling debts. It is more suitable to use Cheques than Cash.

1. Bearer Cheque A bearer Cheque can be encashed immediately when presented at the bank by the bearer (any Person presenting the Cheque) of it. 2. Crossed Cheque A Crossed Cheque is one in which two parallel lines are drawn at the left hand side corner of the Cheque. Such Cheques cannot be encashed immediately but has to be deposited in the payees account in the bank. The amount gets credited in the account. (D) Remittance of Funds Commercial Banks help in remitting (sending) funds from one place to another by issuing bank drafts, mail transfers, telegraphic transfers etc. by charging some commission.

SECONDARY FUNCTIONS OR NON-BANKING FUNCTIONS

(A) Agency Services Commercial Banks provide a number of services as an agent of customers. These include: 1. Transfer of Money This is done by means of Cheques, drafts and telegraphic transfers etc. The bank charges a small commission for providing these services.

2. Executing Orders Standing orders are performed such as payment of insurance premium, payments of subscription fees of clubs and societies.

3. Collection of Money Collection of dividend or interest on securities on behalf of customers. 4. Purchase & Sale Commercial banks purchase and sell securities on behalf of its customers. 5. Trustee Bank also acts as a trustee or executor of will created by its customers. This means undertaking the administration of Estates as Executor or trustee. This includes acquiring and holding and generally dealing with any property right, title or interest in any such property. (B) General Services Commercial Banks also performs a number of general utility services. 1. Safe Deposit Vault Lockers are provided in various sizes on payments on a fixed rent. The lockers are situated in a strong room, generally underground where walls and ceilings are fireproof. The articles kept in the lockers remain in the possession of the locker- holder and the access to the locker is given only after completion of certain formalities. 2. Letters of Credit Letters of credit are issued by commercial banks to help traders to buy goods from foreign countries on credit. It is a document or an order issued by a bank in one place, authorising some other bank in some other place (foreign country) to honour the drafts

or cheques of the person named in the document. The payment is limited to the amount shown in the letter and the amount is chargeable to the issuer of the letter of credit.

3. Travelers Cheque The travelers Cheques are mostly utilized to remove the risk of theft in the course of travel. 4. Foreign Exchange A separate Foreign Exchange Department is maintained by most of the banks. Its function is to convert foreign currency into domestic currency and vice-versa. 5. ATM and Credit Card Facilities Automated Teller Machines facilities provide cash easily and quickly 24 hours a day. Credit Card allows a person to buy goods and services upto certain specified limit without immediate payment. Purchases can be made on credit basis. Amount is paid to shops, hotels etc by the bank. The banks collect the amount due from the customers by debiting their account.

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PROFILE OF THE ORGANISATION

ORIGIN OF THE ORGANISATION

Dena bank was founded on 26 th May, 1938 by the family of Devkaran Nanjee under the name Devkaran Nanjee Banking Company Ltd. It became a Public Ltd Company in December 1939 and later the name was changed to Dena Bank Ltd. In July 1969 Dena Bank Ltd along with 13 major other banks was nationalized and is now a Public Sector Bank constituted under the Banking Companies (Acquisition and

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Transfers of Undertakings) Act, 1970. Under the provisions of the Banking Regulations Act 1949, in addition to the business of banking, the Bank can undertake other business as specified in section 6 of the Banking Regulations Act, 1949.

MILESTONES
One among Six Public Sector Banks selected by the World Bank for sanctioning a loan of Rs 72.30 crores for augmentation of Tier-II capital under financial sector development project in the year 1995. One among the few banks to receive the world bank loan for technological upgradation and training. Launched a Bond Issue of Rs 92.13 crores in November 1996. Maiden Public Issue of Rs 180 crores in November 1996. Introduced Tele-Banking facility of selected metropolitian centers.

Dena Bank has been the First bank to introduce: Minor Savings Schemes Credit card in rural India known as DENA KRISHI SAKH PATRA (DKSP) Drive-in ATM counter of Juhu, Mumbai. Smart Card at selected branches in Mumbai. Customer rating system for rating the bank services.

2.2 Growth and development of the Organization

To evolve and position the bank as a world class, progressive, cost-effective and customer friendly institution providing comprehensive financial and related service: society especially the in-service serving the public and integrating frontiers of technology and serving various segment of weaker section of the society: committed to excellence
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also excelling in the corporate values. Corporate excellence emanate from good corporate

governance exercised by adopting standard of transparency, accountability, professionalism, social responsiveness, and ethical business practices with this in view, the has been making efforts for adopting the best practices. The bank commitment towards corporate governance is to bestow greater transparency and openness in the management and to ensure best performance by staff at all levels to maximize the operational efficiency. Adopting the corporate governance as a the stakeholders value. work ethos, the bank committed to enhancing

2.3 Present Status of Organization

Dena bank might just be another case of bank in trouble. Going by the recent Observations of the accounting department of the bank itself, the banks capital adequacy ratio (CAR) and profitability in serious doubts. An analysis of the financial position of the bank for the year 2002-03, by the which is in possession of Indian would go down as low as low Accounts department of Dena bank, copy of Express, showed that the banks CAR stood at 9.33%

6.02% as per the latest RBI guidelines. In simple terms, a

CAR implies that the bank would be trouble there is a run on it since it has crore for the year 2002-03.

overexposed itself. Future, miscellaneous income, which also accounted for the increase in profits, Went up by Rs. 32.92 crore to Rs. 86.06 however, the review showed that Rs.19.50 crore of the miscellaneous income was due to transfer of old credit over five years lying with the bank in suspense receipts/ unclaimed credits. another element of doubts in the result is the fact that the bank had reversed an amount of Rs. 18.40 crore to the balance sheet as disputed tax liability. this was based on the expert opinions received by bank on tax consultants and also on a high court decision in the case of American express bank. the above three aspects are taken together accounted for Rs. 83.40 crore of profit.

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2.4 Functional department of the organization

Dena bank deals with the following functional departments:

1. Personal
In the Dena Bank Personal Banking section, the organization offer its services with a personal touch by reaching out to all various manner, one of 10 them is through offering a basket of our deposit schemes which delivers a strong return on all your personal savings and our loan schemes which provides the required financial assistance in your times of need.

2. Corporate: Corporate finance Dena bank provides financial assistance to the business entities engaged in various activities of manufacturing, trading and service. the financial assistance is provided for setting up new projects, acquiring assets and also for meeting day to day working capital requirement of the constituent these assistances are termed as long term finance & short term Finance respectively. Term Finance Term loan/finance covers funds required for acquiring means of production such as land, building and plant and machinery etc. these could be for setting up new projects or expanding the present activities. term finance is generally given for a longer period and is repayable in installments over the period with or without moratorium. the period and

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the installment are determined based on the repayment capacity of the project/ borrower. Working Capital Finance Working Capital Finance (WCF) is extended for carrying out normal trading/

manufacturing activities. the working capital finance is provided for a relatively shorter

period generally for a period of 1 year and renewed on yearly basis considering the performance of the borrower. the WCF is considered only after project nearing completion and after full tie up term loan requirement. the working capital limits of the borrower are assessed by adopting various method such as projected turnover method (Nayak committee recommendation), permissible bank finance method , cash budget method etc. depending upon the aggregate working capital limit required / enjoy from the banking system , nature of activity , productive cycle etc. working capital finance is in the from of pre-sale and post-sale limits. in pre sale finance the advance is granted for acquiring inventory for production / processing or trading purpose while in the form of purchase/discounting of bills etc. Pre Sales Finance 1. Cash credit hypothecation / pledge against stocks. 2. Packing credit hypothecation /pledge against stocks. 3. Clean packing credit limit. 4. Trust receipt. 5. Working capital loan (demand/term) the postsale finance is extended against the receivables. Dena bank encourages post-sale finance

Post Sales Finance 1. Bills discounting/purchase-inland/foreign.

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2. Cash credit

hypothecation against book debts.

3. Advances against export incentives. 4. Purchase of cheque / demand draft.

Non Fund Based Credit Assistance The business units also require credit assistance for procurement of goods, where the funds are not involved such facilities are available against the assured commitment / guarantee from the lending institution. Dena bank is extending such non fund based assistance to the eligible unit in the form of: 1. Issuance of Guarantee of various types like performance , financial, bid bond, tender deposit/ earnest money etc.

2. Issuance of letter of credit. 3. Deferred payment Guarantee. Export Credit Bank extends credit to exporters at competitive rates, at both pre-shipment and postshipment stages recently, bank has introduced gold card scheme which provides cheaper export credit to the eligible borrower. selected clients engaged in exports are also suitable rewarded in the form of export credit denominated in foreign currency viz. PCFC (Pre Shipment)/ REBA (Post Shipment Credit). Specific Schemes: The bank has devised specific schemes for the following sectors: 1. Educational Institution.. 2. Builders & developers. 3. Hospitals.
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4. Hotels & restaurants & 5. Entertainment industry.

3. NRI Desk
With over 1100 branches spread across the country, Dena bank is your ideal banking partner if you are a non- resident Indian. All transaction by NRI in Indian bank are governed by RBI Rules and Regulation.

4. Priority & SME

These are the sectors where dwa bank has taken special care to ensure instant sanctions and for all applicant. Priority Sector Schemes: 1. Dena rural internet kiosk scheme. 2. Dena shakti schemes. 3. Dena laghu udyami card scheme. 4. Dena rural artisan credit card scheme. 5. Dena swarozgar credit card scheme.

5. Dena bill pay:Auto pay :

Just gives us your bill details, specify your bank account and will pay

your bill for you every month from the account. you can specify an upper limit and bills above this limit will be paid only on your specific instruction. phone pay get a SMS alert when bill is due and issue payment instruction in accordance. internet: if you have access to the internet, you can view and pay your bills online at

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www.denabank.com you will receive new bill notification , due date reminders and payment confirmation via email.

6. Dena ATM services

Dena bank always stands in forefront in understanding it customers need. Dena bank debit cum ATM card offers you an easy and convenient way to do all your transactions and that too with in a fraction of second. presently we have more than 380 ATMs all across India. debit cum ATM card is your bank account in your pocket. gel your Dena bank debit cum ATM card today and avail round the clock uninterrupted service. below is the simple procedure to use this facility: 1. Contact your branch. 2. If you dont have saving or current account , first open your account. 3. Get the debit/ATM card application form the branch , fill it up and submit it to your branch. 4. Within 10 days , you will receive your debit cum ATM card along with pin (personal identification number) and debit cum ATM card booklet. 5. Activate your card immediately by withdrawing cash from Dena bank ATM. after that you can use your card on POS terminal (merchant establishments).

7. Other service:Dena bank your trusted family bank , now is proud to offer a range of sophisticated banking services by way of any branch banking, multi city cheque Dena ATMs , Dena card , online remittance, internet banking , mobile banking, Tele banking, online utility bill payable , value added service though ATM, kiosks, loans and many more. with over 1100 branches across the country, we are always ready to serve our customers, and to

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offer them the best of the technology enabled banking product and service.

Products and Services Offered

Personal Banking- It offers various products and services such saving account, loans, deposits, ATM facility, RTGS/NEFT facility, Internet banking, demat services, etc.

Priority and SME- It also caters services to Priority and SME segment such as providing various kinds of products to meet their various agricultural and business requirements.

Corporate Finance - According to various business needs of corporates in the corporate sector, its offers products and services as per their requirements.

It also provides banking services to NRI Clients such as saving accounts, various deposit schemes, remittance services, loans and overdraft facility, etc.

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DATA COLLECTION
1) Data Collection in respect of Balance Sheet and Profit and Loss
Data collection usually takes place early on in an improvement project, and is often formalized through a data collection plan which often contains the following activity. Pre collection activity agree on goals, target data, definitions, methods Collection data collections Present Findings usually involves some form of sorting analysis and/or presentation. Prior to any data collection, pre-collection activity is one of the most crucial steps in the process. It is often discovered too late that the value of their interview information is discounted as a consequence of poor sampling of both questions and informants and poor elicitation techniques. After pre-collection activity is fully completed, data collection in the field, whether by interviewing or other methods, can be carried out in a structured, systematic and scientific way. A formal data collection process is necessary as it ensures that data gathered are both defined and accurate and that subsequent decisions based on arguments embodied in the findings are valid. The process provides both a baseline from which to measure and in certain cases a target on what to improve.

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Other main types of collection include census, sample survey, and administrative byproduct and each with their respective advantages and disadvantages. A census refers to data collection about everyone or everything in a group or statistical population and has advantages such as accuracy and detail, and disadvantages such as cost and time. A sampling is a data collection method that includes only part of the total population and has advantages such as cost and time, and disadvantages such as accuracy and detail. Administrative by-product data are collected as a by-product of an organization's day-to-

day operations and has advantages such as accuracy, time and simplicity, and disadvantages such as no flexibility and lack of control.

2) Data Collection in respect of Cash Flow Statement

The Statement of Cash Flows describes the cash inflows and outflows for the firm based upon three categories of activities. Operating Activities: Generally include transactions in the normal operations of the firm. Investing Activities: Cash flows resulting from purchases and sales of property, plant and equipment, or securities. Financing Activities: Cash flows resulting from Transactions with lenders and owners. Funds received from lenders Payments to lenders (not interest) Contributions of capital from owners (sales of stock) Dividend payments. The table below describes the basic characteristics of different methodologies. Data Collection Methods Examples

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Documents Historical Literature review Meta-analysis Diaries Content Analysis Secondary Data (data mining) Observations Interpretive Ethnographic Participant observer Case study Survey Questionnaire Interview Standardized Scales/Instruments

These leisure

methods research

identify and

trends

in

practice.

Participants keep diaries and journals researcher conducts content analysis of studies, reports and diaries. How people behave and interact in public observer. To learn what people think To about identify and surveys controlled open spaces. become a Observe participant systematically,

leisure

motivation. between Use

relationships satisfaction. Obtain

motivation

interviews, under

and standardized scales. information conditions about leisure attitudes and experience with virtual reality. Subjects may be randomly assigned to various tests and experiences then assessed via observation or standardized scales. To identify trends and issues about Other Field Methods Nominal Group Technique Delphi leisure Various services, group, management question and and and pencil delivery systems. Focus Group systems. paper exercises are used by facilitators. Interviews, Multimethods Approach Combination of methods shown more journals quantitative and measures are combined to provide a accurate definition operationalization of the concept.

Experimental True designs Quasi designs

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Balance Sheet of last 5 Years

MAR'13MAR'12 MAR'11 MAR'10 MAR'09 SOURCES OF FUNDS Share Capital Total Reserve Deposits Borrowings Shareholder's Funds Other Liabilities & Provisions TOTAL LIABILITIES APPLICATION OF FUNDS Cash and balance with Reserve Bank of India Balances with banks and money at call and short notice Investments Advances Gross Block Less : Accumulated Depreciation Net Block 8644.49 5194.96 1176.92 356.24 4721.41 687.40 4355.03 759.49 4982.41 874.71 350.06 350.06 333.39 3322.54 286.82 2314.87 286.82 1883.67

5413.95 4127.27

97207.15 77166.80 64209.62 51344.28 43050.61 8413.66 3880.95 5764.01 4477.33 2055.61 1862.84 1691.66 3655.92 1281.22 1561.92 2601.69 2078.70 1443.13 2170.50 1796.27

113440.42 87387.92 70838.42 57586.58 48460.51

34343.10 23027.65 18768.91 15694.23 12473.08 65781.22 56692.54 44828.05 35462.44 28877.96 1694.41 584.46 1109.95 924.45 519.29 405.16 888.00 484.40 403.59 862.57 455.51 407.06 829.47 424.40 405.07

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MAR'13MAR'12 MAR'11 MAR'10 MAR'09

Capital Work in Progress Other Assets TOTAL ASSETS Contingent Liability Bills for collection

2.17 2382.58

1.48 1709.90

0.15 1428.91

0.22 908.11

0.09 847.20

113440.42 87,387.92 70,838.42 57,586.58 48,460.51 52218.49 40011.22 14833.40 13174.71 11506.80 4595.66 5474.78 3962.42 20481.74 3027.47

Profit and Loss A/c of last 5 years

MAR'13 MAR'12 MAR'11 MAR'10 MAR'09 I. INCOME Interest Earned Other Income Total Income II. EXPENDITURE Interest Expended Operating Expenses PBIDT Provisions and Contingencies Profit Before Tax Taxes Total 6516.29 1299.70 1738.87 706.44 1032.42 222.04 8744.47 4693.13 1154.75 1528.43 562.51 965.92 162.78 6573.16 3270.16 1073.42 1223.79 325.73 898.06 286.43 4955.74 2910.33 848.08 840.58 153.79 686.80 175.54 4087.74 2383.07 768.19 726.36 184.93 541.43 118.77 3454.96 8899.39 655.46 9554.85 6794.13 582.17 7376.30 5033.53 533.84 5567.37 4010.36 588.63 4598.99 3447.50 430.13 3877.62

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MAR'13MAR'12 MAR'11 MAR'10 MAR'09 III. Profit & Loss PAT Extraordinary Items Profit brought forward Adjusted Net Profit Total Profit & Loss IV. Appropriations 810.38 0.00 0.00 0.00 810.38 810.38 803.14 0.00 0.00 0.00 803.14 803.14 611.63 0.00 0.00 0.00 611.63 611.63 511.25 0.00 0.00 0.00 511.25 511.25 422.66 0.00 0.00 0.00 422.66 422.66

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CASH FLOW STATEMENT

MAR'13 MAR'12 Change %

Net Profit Before Taxes Adjustments for Expenses & Provisions Adjustments for Liabilities & Assets Cash Flow from operating activities Cash Flow from investing activities Cash Flow from financing activities Net increase/(decrease) in cash and cash equivalents Opening Cash & Cash Equivalents Cash & Cash Equivalent on Amalgamation / Take over / Merger Cash & Cash Equivalent of Subsidiaries under liquidations

810.38 1269.97 2405.33 3843.63 -81.72 508.31 4270.21 5551.20 0.00 0.00

803.14 974.11 -1103.17 302.66 -78.82 -81.45 142.39 5408.81 0.00 0.00 0.00 0.00 5551.20

0.90% 30.37% 318.04% 1169.95% -3.68% 724.06% 2898.98% 2.63% 0.00% 0.00% 0.00% 0.00% 76.92%

Translation adjustment on reserves / op cash balances from subsidiaries 0.00 Effect of Foreign Exchange Fluctuations Closing Cash & Cash Equivalent 0.00 9821.41

DATA ANALYSIS
Analysis of data is a process of inspecting, cleaning, transforming, and modeling data
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with the goal of discovering useful information, suggesting conclusions, and supporting decision making. Data analysis has multiple facets and approaches, encompassing diverse techniques under a variety of names, in different business, science, and social science domains. The process of evaluating data using analytical and logical reasoning to examine each component of the data provided. This form of analysis is just one of the many steps that must be completed when conducting a research experiment. Data from various sources is gathered, reviewed, and then analyzed to form some sort of finding or conclusion. There are a variety of specific data analysis method, some of which include data mining, text analytics, business intelligence, and data visualizations.

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Operational & Financial Ratios: Earnings Per Share (Rs) DPS(Rs) Book NAV/Share(Rs) Margin Ratios: Yield on Advances Yield on Investments Cost of Liabilities NIM Interest Spread Performance Ratios: ROA (%) ROE (%) ROCE (%) Efficiency Ratios: Cost Income Ratio Core Cost Income Ratio Operating Costs to Assets

23.15 4.70 140.25 13.53 6.34 6.17 2.17 7.36 0.81 17.62 11.66 42.77 45.11 1.15

22.94 3.00 122.59 11.98 6.86 5.79 2.46 6.19 1.02 20.72 16.50 43.04 43.60 1.32

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COMPARATIVE STATEMENT
A business concern does not exist in isolation. It co-exists with other competing concerns in the same industry. It has to therefore constantly compare its performance with such competing concerns to find out where it scores over its rivals and where it lags behind them. Such comparison is called Inter-firm comparison. It also needs to compare its own past performance with its current performance to ascertain its progress or decline over the years. This is known as inter-period comparison. Such statements prove that the accounts of one period are but an installment of the continuous history of a going concern. Comparative Financial Statements are prepared for purpose of inter-firm and inter-period comparisons. A common example of Comparative Financial Statements is the Final Accounts of Dena Bank given here in the Schedule VI format giving the figures for the current year as well as for the previous years.

Comparative statement of Dena Bank

MAR'13

MAR'12

%Change

SOURCES OF FUNDS Share Capital Share warrants & Outstanding Total Reserve Shareholder's Funds
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350.06 0.00 5413.95 5764.01

350.06 0.00 4127.27 4477.33

0.00% 0.00% 31.18% 28.74%

Deposits Borrowings Other Liabilities & Provisions TOTAL LIABILITIES APPLICATION OF FUNDS Cash and balance with Reserve Bank of India Balances with banks and money at call and short notice Investments Advances Gross Block Less : Accumulated Depreciation Less : Impairment of Assets Net Block Lease Adjustment Capital Work in Progress Other Assets TOTAL ASSETS Contingent Liability Bills for collection

97207.15 8413.66 2055.61 113440.42

77166.80 3880.95 1862.84 87387.92

25.97% 116.79% 10.35% 29.81%

8644.49 1176.92 34343.10 65781.22 1694.41 584.46 0.00 1109.95 0.00 2.17 2382.58 113440.42 52218.49 4595.66

5194.96 356.24 23027.65 56692.54 924.45 519.29 0.00 405.16 0.00 1.48 1709.90 87387.92 40011.22 5474.78

66.40% 230.37% 49.14% 16.03% 83.29% 12.55% 0.00% 173.96% 0.00% 46.76% 39.34% 29.81% 30.51% -16.06%

COMMENTS
1. I have a great pleasure in presenting the Annual Report along with the Audited Financial Statement of Accounts and the Cash Flow statement of the Bank for the year ended March 31, 2012. 2. Performance Highlights 2.1 Aggregate Business Mix (Deposits + Advances) of the Bank scaled a level of Rs. 1,34,326 Crore during the financial year ended 31st March, 2012. The total Business Mix of the Bank increased by Rs. 24,953.01 Crore to Rs. 1,34,326.00 Crore at the end of the year 2011-12 from Rs. 1,09,372.99 Crore as on 31st March, 2011, registering a growth of 22.81% .

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2.2 Total Deposit of the Bank increased by Rs. 12,957.18 Crore from Rs. 64,209.62 Crore as on 31st March, 2011 to Rs. 77,166.80 Crore as on 31st March, 2012, registering a growth of 20.18 %. 2.3 Advances of the Bank increased by Rs. 11,996.43 Crore from Rs. 45,163.37 Crore as on 31st March, 2011 to Rs. 57,159.20 Crore as on 31st March, 2012, registering a growth of 26.56%. 2.4 Micro, Small and Medium Enterprises (MSME) Credit posted a growth of Rs. 1,507.41 Crore from Rs. 6,783.72 Crore as on 31st March, 2011 to Rs. 8291.13 Crore as on 31st March, 2012, registering a growth of 22.22%. 2.5 Retail Credit posted a growth of Rs. 1,146.91 Crore from Rs.6,135.59 Crore as on 31st March, 2011 to Rs. 7,282.50 Crore as on 31st March, 2012, registering a growth of 18.69%. 2.6 Recovery efforts in NPA Accounts of the Bank yielded good results. Cash recovery during the year 2011-12 stood at Rs. 222.56 Crore and Upgradation to the tune of Rs.191.47 Crore. The recovery in written off accounts during the year was Rs. 81.93 Crore including recovery of interest in written off accounts of Rs. 12.17 Crore. 3. Income Analysis 3.1 The Operating Profit of the Bank increased to Rs. 1528.43 Crore for the year from Rs.1223.79 Crore in the previous year registering an increase of Rs. 304.64 Crore (24.89%). 3.2 The Net Profit increased to Rs. 803.14 Crore for the year from Rs. 611.63 Crore in the previous year recording an increase of Rs. 191.51 Crore (31.31%). 4. During the year 2011-12, the Bank opened 51 new Branches and Branch network of the Bank increased to 1342. All the branches of the Bank are covered under CBS. 5. The ATM Network of the Bank increased to 543, it includes 113 offsite ATMs.

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Bank's customers have access to 90,000 ATMs in the shared network, 4.70 Lacs plus Merchant Establishments (MEs) in India. World wide, our customers have access to more than 1 million ATMs and 26 million MEs. 6. Dividend The Boardof Directors are pleased to recommend dividend of Rs. 3.00 per share i.e., 30% on face value of Rs. 10 for 2011-12. The tax on dividend will be paid by the Bank. The total outflow on account of dividend will be Rs. 122.05 Crore (including dividend tax). 7. Net Worth and CRAR 7.1 Net Worth of the Bank improved to Rs. 4,256.14 crore as on 31.03.2012 from Rs. 3,366.43 crore as on 31.03.2011, registering a growth of Rs. 889.71 Crore (26.43%).

7.2 Capital to Risk (Weighted) Asset Ratio (CRAR) as of March, 2012 works out to 11.51% as compared to 13.41% as of March, 2011. 7.3 During the year, the Bank allotted 1.66 Crore Equity Shares of face value of Rs.10/at a price of Rs. 90.73 (including premium of Rs. 80.73) aggregating Rs. 151.24 Crore to Life Insurance Corporation of India on preferential basis. With the above allotment, Government of India holding in the Bank stands reduced to 55.24 % from 58.01%.

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FINDINGS AND SUGGESTIONS

1. I have Balance Sheet of Dena Bank as at 31st March, 2012, and also the Profit and Loss Account and the Cash Flow Statement annexed thereto for the year ended on that date, in which are incorporated the returns of 20 branches and 21 Regional Offices audited by us and 777 branches audited by branch auditors. The branches audited have been selected by the Bank in accordance with the guidelines issued by the Reserve Bank of India. Also incorporated in the Balance Sheet and the Profit & Loss Account are the returns from 449 branches which have not being subjected to audit. These unaudited branches account for 4.27% of advances, 15.84 % of deposits, 2.59 % of interest income and 13.76 % of interest expenses. These financial statements are the responsibility of the Bank's Management. Our responsibility is to express our opinion on these financial statements based on our audit. 2. I conducted the same in accordance with the auditing standards generally accepted in India. These standards require that we plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free of material misstatements. An
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audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. The Balance Sheet and the Profit and Loss Account have been drawn up in Forms "A" and "B" respectively of the Third Schedule to the Banking Regulation Act, 1949. 4. Subject to the limitations of the audit indicated in paragraph 1 above, and as required by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and subject also to the limitations of disclosure required therein, we report that: -

(i) I have obtained all the information and explanations which to the best of our knowledge and belief, were necessary for the purpose of our audit and have found them to be satisfactory. (ii) The transactions of the Bank, which have come to our notice, have been within the powers of the Bank. (iii) The returns received from the offices and branches of the Bank have generally been found adequate for the purpose of our audit. 5. In my opinion, as shown by books of Bank, and to the best of our information and according to the explanations given: (a) The Balance Sheet, read with the Significant Accounting Policies and the Notes thereon is a full and fair Balance Sheet containing the necessary particulars and it is properly drawn up so as to exhibit a true and fair view of state of affairs of the Bank as at 31st March 2012 in conformity with accounting principles generally accepted in

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India; (b) The Profit and Loss Account, read with the Significant Accounting Policies and the Notes thereon shows a true balance of profit, in conformity with accounting principles generally accepted in India, for the year ended covered by the account; and (c) The Cash Flow Statement gives the true and fair view of the cash flows for the year ended on that date.

CONCLUSION

The project gives the detailed knowledge of

the whole process on sanction a limit till

which Dena bank performs. Starting from the loan application from the borrower and compilation of Confidential Reports on him and the Guarantor, the process continues the disbursement of loan and after it the loan. The project was an attempt to understand and perform the work in the credit close monitoring till the adjustment of banks

transaction and the credit appraisal which had included in this projects is just an example of it. I had worked on many such appraisals , which are beyond the scope of this project. Hence the whole experience of working in such a nationalized bank was amazing. I found lots of things to learn and understand here. Hence to conclude I just state that it was a great job done in a Nationalized Bank with the experienced

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employees.

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BIBLOGRAPHY

Various Internal Circulations issued by bank from time to time. Banking related Magazines Various Sites such as:

www.denabankindia.com www.moneycontrol.com

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