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Table 1
Incrementa 1 0 -53 18 -5 0
l
Graph 1
120
100
80
60
40 Trend
Trend
20
Inc rem ental
0
-20 2004 2005 2006 2007 2008 2009
-40
-60
-80
Ye a rs
Vijaya College 1
Ratio Analysis
Analysis: -
The bank has not issued any substantial equity capital or it has not
taken any amount from the government in the year 2009. The total amount of
capital of Rs. 333.51 core was maintained in the years 2008 & 2009. The
comparatively higher equity capital of the bank was maintained in the years
2004 & 2005 i.e. the total amount of the capital of Rest. 556.31 core in each
year. Comparing to the six-year equity capital the lowest total amount of
capital of Rest. 259.24 Crore was maintained in the year 2006. It was clearly
Inference: -
Vijaya College 2
Ratio Analysis
Table: 2
Rs.in crores
Particulars 2004 2005 2006 2007 2008 2009
Incremental 1 -10 24 32 54 90
Graph 2
350
300
250
200
Trend
Trend
150
Incremental
100
50
0
-50 2004 2005 2006 2007 2008 2009
Years
Vijaya College 3
Ratio Analysis
Analysis: -
The above table and graph shows the increase of Reserve and surplus. The
bank maintaining more reserve and surplus in the year 2009 comparing to the
previous year. The bank has maintained comparatively higher reserve and
surplus in the year 2009 i.e. amount to 477.75 cores and the lowest reserve in
the year 2005, which was Rs. 147.7 crores. From then onwards the reserve
and surplus of the bank was increasing. It was clearly shown in the trend as
Inference: -
Vijaya College 4
Ratio Analysis
Table: 3
Graph 3
250
200
150
100 Trend
Trend
50 Incremental
0
2004 2005 2006 2007 2008 2009
-50
-100
Years
Vijaya College 5
Ratio Analysis
Analysis: -
Above table shows the details of Borrowing of the bank. This was
143.71 crores in the year 2004 and went up to 320.8 crores. This can be seen
from the trend analysis, which went up 223% in the year 2009. Comparing to
the six year borrowing made by the bank, the lowest borrowing made by this
Inference: -
Borrowing of the bank is increasing over the period of six years. The
Vijaya College 6
Ratio Analysis
Table: 4
Incremental 1 18 23 13 26 28
Graph 4
250
200
150
Series2
Trend
Series1
100
50
0
2004 2005 2006 2007 2008 2009
years
Vijaya College 7
Ratio Analysis
Analysis: -
It was increased to 9690.2 crores in the year 2005 and it further went up to
11592.8 crores in the year 2006. The bank has maintaining more deposit. It
was clearly shown in the trend as well as incremental trend analysis. It was
just 8215.8 crores in the year 2004 and it was increased to 17019.8 crores in
Inference: -
Vijaya College 8
Ratio Analysis
Table: 5
Table showing the detail of other liabilities and provisions Rs.in crores
Incremental 1 54 33 58 -47 60
Graph 5
300
250
200
150
Trend
Trend
100
Incremental
50
0
2004 2005 2006 2007 2008 2009
-50
-100
Years
Analysis: -
Vijaya College 9
Ratio Analysis
The table shows the details of other liabilities and provisions. The total
size of other liabilities and provisions was Rest 359.6 crores in the year 2004
and it was subsequently increased up to 555.2 crores in the year 2005 and
further it went up to Rest 927.5 crores in the year 2009. The other liabilities
and provisions of bank were fluctuating over the period of six years. It can be
Inference: -
The other liabilities and provisions of the bank were fluctuating over the
Table: 6
Table showing the detail of cash and balance with RBI Rs.in crores
Vijaya College 10
Ratio Analysis
Incremental 1 25 9 -41 19 6
Graph 6
150
100
Trend
Trend
50
Incremental
0
2004 2005 2006 2007 2008 2009
-50
Years
Analysis: -
From the above information the analysis can be made for cash and
Balance with RBI. It was fluctuating over the period of six years. In the year
Vijaya College 11
Ratio Analysis
2004 it was Rest 919.4 crores and it was subsequently increased up to Rest
1153.6 crores in the year 2005 and further it went up to 1236.6 crores in the
year 2006. The bank has maintained less cash and balance with RBI in the
year 2007 which 851.1 crores. It can be seen in the above trend as well as
Inference: -
Cash and balance with the RBI of Vijaya bank were fluctuating over the
Table: 7
Vijaya College 12
Ratio Analysis
Incremental 1 17 17 21 39 40
Graph 7
250
200
150
Trend
Trend
Incremental
100
50
0
2004 2005 2006 2007 2008 2009
Years
Analysis: -
towards the bank. This was Rest 3788.00 crores in the year 2004 and
Vijaya College 13
Ratio Analysis
increased to the 7360.7 crores in the year 2008. The investment of the bank is
continuously increasing over the period of six Years. This can be clearly seen
in the above graph. In the year 2009 it was Rest 8861.6 crores, which was
comparatively higher.
Inference: -
Table: 8
Table showing the detail of balance with bank and money at call,
short notice
Rs.in
crores
Particulars 2004 2005 2006 2007 2008 2009
Vijaya College 14
Ratio Analysis
Incremental 1 -9 11 31 7 -25
Graph 8
Graph showing the details of balance with bank and money at call, short notice
160
140
120
100
80
Trend
Trend
60
Incremental
40
20
0
-20 2004 2005 2006 2007 2008 2009
-40
Years
Analysis: -
From the above graph this can be clearly seen that the balance with
bank and money at call, short notice of Vijaya bank were fluctuating over the
period of six years. It was Rs. 448.3 crores in the year 2004 and it went down
to Rs. 406.8 crores in the year 2005 and it further went up to Rs. 629.0 crores
Vijaya College 15
Ratio Analysis
in the year 2008.This could be clearly shown in the trend and incremental
trend analysis.
Inference: -
The Vijaya bank balance with bank and money at call, short notice is
fluctuating over the period of six years. In the year 2008 it was Rs. 629.1 crore
and it decreased to 517.2 crores in the year 2009 comparing to the previous.
Table: 9
Incremental 1 26 39 26 16 56
Vijaya College 16
Ratio Analysis
Graph 9
300
250
200
Trend
Trend
150
Incremental
100
50
0
2004 2005 2006 2007 2008 2009
Years
Analysis.
advances is continuously increased over the period the period of six years .It
Vijaya College 17
Ratio Analysis
was clearly shown in the trend as well as incremental trend analysis .It was
Inference:
The bank advances were continuously increasing over the period of six
years. In the year 2009 it was 7891.3 crores which were comparatively high.
Table: 10
Trend 100 99 89 87 96 92
Vijaya College 18
Ratio Analysis
Incremental 1 -5 -10 2 9 -4
Graph 10
120
100
80
60
Trend
Trend
40 Incremental
20
0
2004 2005 2006 2007 2008 2009
-20
Years
Analysis: -
period of six years. In the year 2004 the fixed asset total amount was Rs172.9
year 2009. This can be seen in the above graph. In the year 2006 the fixed
asset was rs154.5 crores and further it went down to Rs150.0 crores in the
year 2007. This can be seen trend and as well as incremental trend analysis.
Vijaya College 19
Ratio Analysis
Inference: -
The fixed asset of bank is fluctuating over the period of six years. In the
year 2004 it was Rs172.9 crores and in the year 2009 it was Rs159.4 crores.
Table: 11
Graph 11
Vijaya College 20
Ratio Analysis
120
100
80
60
Trend
Trend
40
Incremental
20
0
2004 2005 2006 2007 2008 2009
-20
-40
Ye a rs
Analysis:-
The above table clearly shows the details of other assets over the
period of six years. In the year 2004 it was Rs1112.3 crores and it was
Rs1069.7 crores in the year 2007. This can be clearly shown in the trend as
well as incremental trend. In the year 2007 the other assets were Rs563.3
crores and its trend is 51% and incremental trend was –80.
Vijaya College 21
Ratio Analysis
Inference: -
The other assets of the bank were decreasing over the period of six
years.
RATIO ANALYSIS:
Table 12
Graph 12
Vijaya College 22
Ratio Analysis
4
Ratios
3
Ratios
2
0
2005 2006 2007 2008 2009
Years
Analysis: -
As the components of equity were constant in the year 2008 and 2009.
The standard debt to the equity has not been maintained. Debt equity ratios
were continuously decreasing over the period of five years. It was 4.3:1 in the
year 2006 and 2:1 in the year 2007 and in the last year it was 1.3:1 in the year
2009.
Vijaya College 23
Ratio Analysis
Inference: -
The size of debt of Vijaya bank was more and proportionate amount of
Table 13
Vijaya College 24
Ratio Analysis
=3.0
Graph 13
3.5
3
2.5
Ratios
2
Ratios
1.5
1
0.5
0
2005 2006 2007 2008 2009
Years
Analysis: -
Debt Net worth indicates the amount of debt and net worth of the bank.
The debt Net worth Ratio of the bank was fluctuating over the period of five
years. It was 1.6 in the year 2005 and 3.0 in the year 2006 and further it gone
down in the year 2008, which was 2.7. In the last year it was 1.8 that is 2009.
Vijaya College 25
Ratio Analysis
Inference: -
Debt Net worth ratio of the bank was fluctuating over the period of five
years.
Table 14
Vijaya College 26
Ratio Analysis
Graph 14
0.1
0.09
0.08
0.07
0.06
Ratios
0.05 Series1
0.04
0.03
0.02
0.01
0
2005 2006 2007 2008 2009
Ye ars
Analysis: -
This table shows the details of Expenses ratio. It was just 0.09 in the
year 2005 and even in 2006 it was 0.09. The lower ratio ensures the higher
profitability of the bank. Higher the ratio ensures the lower profitability of the
bank. In the year 2008 it was 0.07, which was comparatively low. In the year
Vijaya College 27
Ratio Analysis
2009 it was 0.08. The expenses ratios of the bank were fluctuating over the
period of 5 years.
Inference: -
The expenses ratio of the bank fluctuating over the period of five years.
Table 15
Vijaya College 28
Ratio Analysis
Graph 15
0.025
0.02
0.015
Ratios
Series1
0.01
0.005
0
2005 2006 2007 2008 2009
Years
Analysis: -
In the year 2005 the profit before tax to number of the employees was
0.002 and in the year 2007 it was 0.003. It was continuously increasing over
the period of 5 years. In the last year 2009 it was 0.02. This can be clearly
shown in the tables. The number of employees is decreasing over the period
of 5 years.
Vijaya College 29
Ratio Analysis
Inference: -
continuously increasing.
Table 16
Table showing the details of Profit before tax to interest paid ratio
Rs in crores
Graph 16
Vijaya College 30
Ratio Analysis
ratio
0.2
0.18
0.16
0.14
0.12
Ratios
0.1 Series1
0.08
0.06
0.04
0.02
0
2005 2006 2007 2008 2009
Years
Analysis: -
This ratio indicates profit before tax to the interest paid. Comparatively
higher ratio was in the year 2009, which was 0.19. In the year 2005 it was just
0.04 and in the year 2006 it was 0.07. The above table clearly shows the
Profit before tax to interest paid ratio were continuously increasing over the
Vijaya College 31
Ratio Analysis
Inference: -
The Profit before tax to interest paid ratio was comparatively higher in
Table 17
Graph 17
Vijaya College 32
Ratio Analysis
0.035
0.03
0.025
0.02
Ratios
Series1
0.015
0.01
0.005
0
2005 2006 2007 2008 2009
Years
Analysis: -
The ratio indicates the net profit margin of the bank, higher the ratio
higher will be the profit of the bank, lower the ratio lower will be the profit of
the bank. The net profit margin was comparatively higher in the year 2009 that
is 0.03. In the year 2005 the net profit margin was comparatively low which
Vijaya College 33
Ratio Analysis
was 0.009? The net profit margin directly contributes to the growth of the
bank.
Inference: -
The net profit margin of the bank was increasing over the period of five
years. In the year 2009 it was 0.03, which was comparatively high.
Table 18
Vijaya College 34
Ratio Analysis
=0.19
Graph 18
0.25
0.2
0.15
Ratios
Series1
0.1
0.05
0
2005 2006 2007 2008 2009
Years
Analysis.
The ratio indicates the interest expended by the bank. It was just 0.20
in the year 2005 and this was decreased to 0.19 in the year 2006. The highest
interest expended by bank comparing to the five years was in the year 2005
Vijaya College 35
Ratio Analysis
that is 0.20.After this it reduce to 0.17 in the 2007 and 0.18 in the year 2008,
0.14 in the year 2009. Lower ratios indicate more profit where as higher ratio
Inference: -
Interest expended of the Vijaya bank decreasing during the five years.
It was 0.20 in the year 2005 and it was decreased to 0.14 in the year 2009.
Table 19
Vijaya College 36
Ratio Analysis
Graph 19
0 .0 6
0 .0 5
0 .0 4
Ratios
0 .0 3 S e r ie s 1
0 .0 2
0 .0 1
0
2 0 0 52 0 0 62 0 0 72 0 0 82 0 0 9
Y e ars
Analysis: -
This ratio indicates other income of the bank. Higher the ratio higher
will be the profit. Where as lower the ratio lower will be the profit. This ratio is
fluctuating over the period of five years. It was constant in the year 2005,
2006, 2007, and 2008. In the year 2009 other income ratio was 0.05, which is
Vijaya College 37
Ratio Analysis
comparatively higher than the previous years. In the previous years it was
0.03.
Inference: -
The other income ratios of the bank were constant in the four years
that is 0.03 in the years 2005-2008. In the year 2009 it was 0.05, which was
comparatively higher.
Table 20
Vijaya College 38
Ratio Analysis
Graph 20
0.092
0.09
0.088
0.086
Ratios
0.084
Series1
0.082
0.08
0.078
0.076
0.074
2005 2006 2007 2008 2009
Years
Analysis: -
The above table shows details of spread ratio of five years of the bank.
The spread ratio of the bank is fluctuating over the period of five years.
It was just 0.08 in the year 2005. Then it increased to 0.09 in the year
2006 and it was same in the years 2007, 2009. This was clearly shown
in the above graph.
Inference.
Vijaya College 39
Ratio Analysis
The spread ratio of the bank was fluctuating. It was 0.08 in 2005 and
Vijaya College 40
Ratio Analysis
Table 21
Graph 21
0.35
0.3
0.25
0.2
Trend
Series1
0.15
0.1
0.05
0
2005 2006 2007 2008 2009
Years
Vijaya College 41
Ratio Analysis
Analysis –
This ratio indicates how many times the advance has been used to
increase interest income. The maximum usage of advance has been made
only in the year 2005 which was 0.30 and it was come down to 0.27 in the
year 2006. The interest income ratios fluctuating over the period of 5 years. In
Inference
The interest income ratio of Bank fluctuating over the period of 5 years.
In the year 2007 it was 0.25 and in the year 2008 it was 0.26, in the year 2009
it was 0.24.
Vijaya College 42
Ratio Analysis
CHAPTER – 5
2) The ratio of debt equity was decreasing over the period of 5 years.
The rapid change of debt equity ratio was in the year 2006
increasing it was just 164.8 Crores in the year 2004 and it was increased to
4) In the year 2009 the borrowings of the bank was 320.8 Crores which
amount of debt.
6) Investment of the bank in the year 2009 was 8861.6 Crores. It was
just 3788.0 Crores in 2004. Investment of the bank was increasing over the
period of 6 years.
7) Advances of bank were 2999.1 Crores in the year 2004 and it went up
to 3767.2 Crores in 2005, further it went up to 7891.3 Crores in the year 2009.
Vijaya College 43
Ratio Analysis
9) Spread ratio was just 0.08 in the year 2005 and it was increased to
10) Other income of the bank is increasing; it was 0.03 in the year
12) Net profit ratio of the bank was 0.009 in the year 2005 and has
gone up to 0.12 in the year 2009. Therefore the net profit ratio of the bank is
increasing
13) Expenses ratio of the bank was increased to 0.33 in 2009. It was
14) Deposit of the bank was continuously increasing in the year 2005.
It was 8215.8 crores which was increased to 17019.8 crores in the year 2009.
15) Operating expenses of the bank was just 278.3 crores in the year
Vijaya College 44
Ratio Analysis
CHAPTER – 6
equity funds either from the Government or from the equity issues. So that it
the debt. The Co. is addressed to make scientific tax planning techniques and
reduce borrowings.
Vijaya College 45
Ratio Analysis
11)The bank should increase the interest income. The interest income
15) The other liabilities and provision of the bank is comparatively higher
16) The bank has maintained more reserve and surplus in the year 2009
surplus
Vijaya College 46
Ratio Analysis
BIBLIOGRAPHY
Ltd.
Bangalore.
6) www.Goolge.com
7) www.vijayabank.com
8) www.moneycontrol.com
Vijaya College 47
Ratio Analysis
ANNEXURE
Vijaya College 48
Ratio Analysis
Vijaya College 49
Ratio Analysis
Vijaya College 50
Ratio Analysis
INTERVIEW SCHEDULE
Sir,
a case study of Vijaya Bank, towards its requirement. I need some information
regarding the topic. The information collected will be used for academic
purpose only and will be used for academic purpose only and will be kept
confidential
IDENTIFICATION
2) Qualification :
3) Designation :
4) Experience :
5) Department :
GROWTH
Yes No
Vijaya College 51
Ratio Analysis
Reasons.
a)______________________________________________________
_______
b)_____________________________________________________________
Yes No
Yes No
Vijaya College 52
Ratio Analysis
Yes No
9) Do you agree with the existing debt net worth ratio of bank
Yes No
11) What are the reasons for maintaining debt to equity ratio please
specify
1) _____________________________________________________________
2) _____________________________________________________________
Yes No
Vijaya College 53
Ratio Analysis
15) With increasing competition what new investment have you desired
1) 3)
2) 4)
1) 3)
2) 4)
Yes No
Vijaya College 54
Ratio Analysis
Difficult to be improved
1)
________________________________________________________
2)
________________________________________________________
Vijaya College 55