A

PROJECT REPORT
ON

COMPARITIVE ANALYSIS WITH REFERENCE TO STATE BANK OF

INDIA & BANK OF BARODA

SUBMITTED

FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF

THE DEGREE BACHELOR’S OF ACCOUNTING AND FINANCE

BY

OMKAR SURYAKANT CHIKANE

(PRN: 2018016401164262)

UNDER THE GUIDANCE OF

MRS. JYOTI KHAIRE

THROUGH

THE COORDINATOR

DR. VIVEK BHOIR

THE RAYAT SHIKSHAN SANTHA’S

KARMAVEER BHAURAO PATIL COLLEGE, VASHI,

NAVI MUMBAI.
ACADEMIC YEAR - 2020-2021
1
 KARMAVEER BHAURAO PATIL COLLEGE,

VASHI, NAVI MUMBAI.

Certificate

This is to certify that MR. OMKAR SURYAKANT CHIKANE has worked and duly
completed her Project Work for the degree of Bachelor in Commerce
(Accounting &Finance) under the Faculty of Commerce in the Subject of
Accounting and Finance and his project is entitled, Comparitive analysis with
reference to State bank of India & Bank of Baroda under my supervision.

I further certify that the entire work has been done by the learner under my
guidance and that no part of it has been submitted previously for any Degree
or Diploma of any University.
It is his own work and facts reported by his personal findings and
investigations.

Prof. Jyoti khaire Dr. Shubhada

Nayak

PROJECT GUIDE Principal

.

_____________________________
EXTERNAL EXAMINER

Date of submission:

2
 DECLARATION BY LEARNER

I the undersigned Mr. Omkar Suryakant Chikane student of KARMAVEER

BHAURAO PATIL, COLLEGE, VASHI STUDYING IN TYBAF (SEMESTER-VI)
hereby, declare that the work embodied in this project work titled
“Comparitive analysis with reference to State Bank of India & Bank of
Baroda” forms my own contribution to the research work carried out under
the guidance of PROF. JYOTI KHAIRE is a result of my own research work
and has not been previously submitted to any other university for any other
Degree/ Diploma to this or any other university. Wherever reference has
been made to previous works of others, it has been clearly indicated as
such and included in the bibliography.

I, here by further declare that all information of this document has been
obtained and presented in accordance with academic rules and ethical
conduct.

OMKAR SURYAKANT CHIKANE

Name and Signature of the leaner

Certified by

PROF. JYOTI KHAIRE

3
 Acknowledgement

To list who all have helped me is difficult because they are so numerous and
the depth is so enormous.

I would like to acknowledge the following as being idealistic channels and

fresh dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance
to do this project.

I would like to thank my Principal, Dr. Shubhada Nayak for providing the
necessary facilities required for completion of this project.

I take this opportunity to thank our Coordinator Dr. V.H. Bhoir, for his moral
support and guidance.

I would also like to express my sincere gratitude towards my project guide

PROF. JYOTI KHAIRE whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference
books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly
helped me in the completion of the project especially my Parents and Peers
who supported me throughout my project

4
 CHAPTERISATION

Chapter No. Particulars Page no.

1 Introduction 2-17

2 Company Profile

 STATE BANK OF INDIA 18-39

 BANK OF BARODA 40-57

3 Research methodology 58-61

4 Financial Analysis 62-74

5 Financial comparative analysis 75-83

6 Findings, suggestions and conclusions 84-92

7 References 93-94

5
 INTRODUCTION

6
 INTRODUCTION OF BANKING

DEFINITION OF BANK

Banking Means "Accepting Deposits for the purpose of lending or Investment of

deposits of money from the public, repayable on demand or otherwise and withdraw
by cheque, draft or otherwise."

- Banking Companies (Regulation) Act,1949

ORIGIN OF THE WORD “BANK”:-

The origin of the word bank is shrouded in mystery. According to one view point the
Italian business house carrying on crude from of banking were called banchi bancheri"
According to another viewpoint banking is derived from German word "Branck" which
mean heap or mound. In England, the issue of paper money by the government was
referred to as a raising a bank.

ORIGIN OF BANKING :

Its origin in the simplest form can be traced to the origin of authentic history. After
recognizing the benefit of money as a medium of exchange, the importance of banking

7
was developed as it provides the safer place to store the money. This safe place
ultimately evolved in to financial institutions that accepts deposits and make loans i.e.,
modern commercial banks.

Banking system in India

Without a sound and effective banking system in India it cannot have a healthy
[Link] banking system of India should not only be hassle free but it should be
able to meet 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.

 HISTORY OF BANKING IN INDIA

Banking in India has its origin as early or Vedic period. It is believed that the transitions
from many lending to banking must have occurred even before Manu, the great Hindu
furriest, who has devoted a section of his work to deposit and advances and laid down
rules relating to the rate of interest. During the mogul period, the indigenous banker
played a very important role in lending money and financing foreign trade and
commerce.

During the days of the East India Company it was the turn of agency house to carry on
the banking business. The General Bank of India was the first joint stock bank to be

8
established in the year 1786. The other which followed was the Bank of Hindustan and
Bengal Bank. The Bank of Hindustan is reported to have continued till 1906. While other
two failed in the meantime. In the first half of the 19th century the East India Company
established there banks, The bank of Bengal in 1809, the Bank of Bombay in 1840 and
the Bank of Bombay in1843. These three banks also known as the Presidency banks
were the independent units and functioned well. These three banks were amalgamated
in 1920 and new bank, the Imperial Bank of India was established on 27th January, 1921.

With the passing of the State Bank of India Act in 1955 the undertaking of the Imperial
Bank of India was taken over by the newly constituted SBI. The Reserve Bank of India
(RBI) which is the Central bank was established in April, 1935 by passing Reserve bank
of India act 1935. The Central office of RBI is in Mumbai and it controls all the other
banks in the country.

In the wake of Swadeshi Movement, number of banks with the Indian management were
established in the country namely, Punjab National Bank Ltd., Bank of India Ltd., Bank of
Baroda Ltd., Canara Bank. Ltd. on 19th July 1969, 14 major banks of the country were
nationalized and on 15th April 1980, 6 more commercial private sector banks were taken
over by the government.

The first bank in India, though conservative, was established in 1786. From 1786 till
today,the journey of Indian Banking System can be segregated into three distinct
phases. They areas mentioned below:

 Early phase from 1786 to 1969 of Indian Banks

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

Reforms.

 New phase of Indian Banking System with the advent of Indian Financial &
Banking Sector Reforms after 1991.

9
  Phase I
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan
and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of
Bombay (1840) and Bank of Madras (1843) as independent units and called it
Presidency Banks.

These three banks were amalgamated in 1920 and Imperial Bank of India was
established which started as private shareholders banks, mostly Europeans
shareholders.

In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab
National Bank Ltd. was set up in 1894 with headquarters at 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. 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 1100 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
Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965).
Reserve Bank of India was vested with extensive powers for the supervision of banking
in India as the Central Banking Authority.

During those day’s public has lesser confidence in the banks. As an aftermath deposit
mobilization was slow. Abreast of it the savings bank facility provided by the Postal
department was comparatively safer. Moreover, funds were largely given to traders.

Phase II

Government took major steps in this Indian Banking Sector Reform after independence.
In1955, it nationalized Imperial Bank of India with extensive banking facilities on a large
scale especially in rural and semi-urban areas. It formed State Bank of India to act as
the principal agent of RBI and to handle banking transactions of the Union and State
Governments all over the country.

10
Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th
July,1969, major process of nationalization was carried out. It was the effort of the then
Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country
was nationalized.

Second phase of nationalization Indian Banking Sector Reform was carried out in 1980
with seven more banks. This step brought 80% of the banking segment in India under
Government ownership.

 The following are the steps taken by the Government of India to Regulate
Banking Institutions in the Country: 1949: Enactment of Banking Regulation Act.
 1955: Nationalization of State Bank of India.
 1959: Nationalization of SBI subsidiaries.
 1961: Insurance cover extended to deposits.
 1969: Nationalization of 14 major banks.
 1971: Creation of credit guarantee corporation.
 1975: Creation of regional rural banks.
 1980: Nationalization of seven banks with deposits over 200 crore.

After the nationalization of banks, the branches of the public sector bank India rose to
approximately 800% in deposits and advances took a huge jump by 11,000%.

Banking in the sunshine of Government ownership gave the public implicit faith and
immense confidence about the sustainability of these institutions.

Phase III

This phase has introduced many more products and facilities in the banking sector in its
reforms measure. In 1991, under the chairmanship of M Narasimhama, a committee
was set up by his name which worked for the liberalization of banking practices. 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 is introduced.
The entire system became more convenient and swift. Time is given more importance

11
than money. The financial system of India has shown a great deal of resilience. It is
sheltered from any crisis triggered by any external macroeconomics shock as other
East Asian Countries suffered. This is all due to a flexible exchange rate regime, the
foreign reserves are high, the capital account is not yet fully convertible, and banks and
their customers have limited foreign exchange exposure.

BANKS IN INDIA

In India the banks are being segregated in different groups. Each group has their own
benefits and limitations in operating in India. Each has their own dedicated target
market. Few of them only work in rural sector while others in both rural as well as urban.
Many even are only catering in cities. Some are of Indian origin and some are foreign
players.

All these details and many more is discussed over here. The banks and its relation with
the customers, their mode of operation, the names of banks under different groups and
other such useful information’s are talked about.

One more section has been taken note of is the upcoming foreign banks in India. The
RBI has shown certain interest to involve more of foreign banks than the existing one
recently. This step has paved a way for few more foreign banks to start business in
India.

BANKING STRUCTURE IN INDIA

SCHEDULED BANKS IN INDIA

12
 (1) Scheduled Commercial Banks

Public Sector Banks Private Sector Banks

(26) (25)

 Nationalized Bank  Old Private Banks

 Other Public Sector  New Private Banks
Banks (IDBI)
 SBI And Its Associates

(2) Scheduled Cooperative Banks

Scheduled Urban Cooperative Banks Scheduled State Cooperative Banks

Public Sector Banks

Public sector banks are those banks which are owned by the Government. The Govt.
runs these Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6
banks were also nationalized. Therefore in 1980 the number of nationalized bank 20. At
present there are total 26 Public Sector Banks in India (As on 26-09-2019). Of these 19
are nationalised banks, 6(STATE BANK OF INDORE ALSO MERGED RECENTLY) belong
to SBI & associates group and 1 bank (IDBI Bank) is classified as other public sector
bank. Welfare is their primary objective.

13
Nationalized banks Other Public Sector SBI & its Associates
Banks

 Allahabad Bank  State Bank of India

 Andhra Bank IDBI (Industrial

 Bank Of Baroda Development Bank

 State Bank of
 Bank Of India Of India)Ltd.
Hyderabad
 Bank Of Maharastra
 Canara Bank
 State Bank of Mysore
 Central Bank Of India
 Corporation Bank
 Dena Bank  State Bank of Patiala
 Indian Bank
 Indian Overseas Bank
 State Bank of
 Oriental Bank Of
Travancore
Commerce
 Punjab & Sind Bank
 Punjab National Bank  State Bank of Bikaner

 Syndicate Bank And Jaipur

 UCO Bank
 Union Bank Of India
 United Bank Of India
 Vijaya Bank
(State Bank of Saurastra
merged with SBI in the year
2008 and State Bank of
Indore In 2020)

14
Private Sector Banks

These banks are owned and run by the private sector. Various banks in the country such
as ICICI Bank, HDFC Bank etc. An individual has control over there banks in preparation
to the share of the banks held by him.

Private banking in India was practiced since the beginning of banking system in India.
The first private bank in India to be set up in Private Sector Banks in India was IndusInd
Bank. It is one of the fastest growing Bank Private Sector Banks in India. IDBI ranks the
tenth largest development bank in the world as Private Banks in India and has promoted
world class institutions in India. The first Private Bank in India to receive an in principle
approval from the Reserve Bank of India was Housing Development Finance
Corporation Limited, to set up a bank in the private sector banks in India as part of the
RBI's liberalization of the Indian Banking Industry. It was incorporated in August 1994 as
HDFC Bank Limited with registered office in Mumbai and commenced operations as
Scheduled Commercial Bank in January 1995. ING Vysya, yet another Private Bank of
India was incorporated in the year 1930

Private sector banks have been subdivided into following 2 categories:-

15
 Old Private Sector Banks New Private Sector Banks

 Bank of Rajasthan Ltd.

 Bank of Punjab Ltd. (since

 Catholic Syrian Bank Ltd.
merged with Centurian Bank)
 City Union Bank Ltd.
 Centurian Bank of Punjab (since
 Dhanalakshmi Bank Ltd.
merged with HDFC Bank)
 Federal Bank Ltd.
 Development Credit Bank Ltd.
 ING Vysya Bank Ltd.
 HDFC Bank Ltd.
 Jammu and Kashmir Bank Ltd.
 ICICI Bank Ltd.
 Karnataka Bank Ltd.
 IndusInd Bank Ltd.
 Karur Vysya Bank Ltd.
 Kotak Mahindra Bank Ltd.
 Lakshmi Vilas Bank Ltd.
 Axis Bank (earlier UTI Bank)
 Nainital Bank Ltd.
 Yes Bank Ltd.
 Ratnakar Bank Ltd.
 SBI Commercial and
International Bank Ltd.

 South Indian Bank Ltd.

 Tamilnad Mercantile Bank Ltd.

 United Western Bank Ltd.

Foreign Banks In India

16
  ABN AMRO Bank N.V.  HSBC (Hongkong &
Shanghai Banking
 Abu Dhabi Commercial
Corporation)
Bank Ltd
 JPMorgan Chase Bank
 American Express Bank
 Krung Thai Bank
 Antwerp Diamond Bank
 Mashreq Bank
 Arab Bangladesh Bank
 Mizuho Corporate Bank
 Bank International
Indonesia  Oman International Bank

 Bank of America  Shinhan Bank

 Bank of Bahrain & Kuwait  Société Générale

 Bank of Ceylon  Sonali Bank

 Bank of Nova Scotia  Standard Chartered Bank

 Bank of Tokyo Mitsubishi  State Bank of Mauritius

UFJ

 Barclays Bank

 BNP Paribas

 Calyon Bank

 ChinaTrust Commercial
Bank

17
  Citibank

 DBS Bank

 Deutsche Bank

Cooperative banks in India

The Cooperative bank is an important constituent of the Indian Financial System,

judging by the role assigned to co operative, the expectations the co operative is
supposed to fulfil, their number, and the number of offices the cooperative bank operate.
Though the co operative movement originated in the West, but the importance of such
banks have assumed in India is rarely paralleled anywhere else in the world. The
cooperative banks in India plays an important role even today in rural financing. The
businesses of cooperative bank in the urban areas also has increased phenomenally in
recent years due to the sharp increase in the number of primary co-operative banks.

18
Co operative Banks in India are registered under the Co-operative Societies Act. The
cooperative bank is also regulated by the RBI. They are governed by the Banking
Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965.

Rural banks in India

Rural banking in India started since the establishment of banking sector in India. Rural
Banks in those days mainly focussed upon the agro sector. Regional rural banks in India
penetrated every corner of the country and extended a helping hand in the growth
process of the country.

SBI has 30 Regional Rural Banks in India known as RRBs. The rural banks of SBI is
spread in 13 states extending from Kashmir to Karnataka and Himachal Pradesh to
North East. The total number of SBIs Regional Rural Banks in India branches is 2349
(16%). Till date in rural banking in India, there are 14,475 rural banks in the country of
which 2126 (91%) are located in remote rural areas.

Apart from SBI, there are other few banks which functions for the development of the
rural areas in India.

Few of them are as follows.

Haryana State Cooperative Apex Bank Limited

The Haryana State Cooperative Apex Bank Ltd. commonly called as HARCOBANK plays
a vital role in rural banking in the economy of Haryana State and has been providing aids
and financing farmers, rural artisans, agricultural labourers, entrepreneurs, etc. in the
state and giving service to its depositors.

NABARD

19
National Bank for Agriculture and Rural Development (NABARD) is a development bank
in the sector of Regional Rural Banks in India. It provides and regulates credit and gives
service for the promotion and development of rural sectors mainly agriculture, small
scale industries, cottage and village industries, handicrafts. It also finance rural crafts
and other allied rural economic activities to promote integrated rural development. It
helps in securing rural prosperity and its connected matters.

Sindhanur Urban Souharda Co-operative Bank

Sindhanur Urban Souharda Co-operative Bank, popularly known as SUCO BANK is the
first of its kind in rural banks of India. The impressive story of its inception is interesting
and inspiring for all the youth of this country.

United Bank of India

United Bank of India (UBI) also plays an important role in regional rural banks. It has
expanded its branch network in a big way to actively participate in the developmental of
the rural and semi-urban areas in conformity with the objectives of nationalisation.

Syndicate Bank

Syndicate Bank was firmly rooted in rural India as rural banking and have a clear vision
of future India by understanding the grassroot realities. Its progress has been abreast of
the phase of progressive banking in India especially in rural banks.

Fact Files of Banks in India

20
The first Bank in India to be given an ISO certification. Canara Bank

The first Bank in Northern India to get ISO 9002 certification Punjab and Sind
Bank
for their selected branches.

The first Indian Bank to have been started solely with Indian capital. Punjab National
Bank

The first among the Private Sector Banks in Kerala to become South Indian Bank
Scheduled Bank in 1946 under the RBI act.

India’s oldest,largest and the most successful commercial bank State Bank of
offering the widest possible rang of domestic,international and NRI India
products and services,through its vast network in India and overseas.

India’s second largest Private Sector Bank and is now the largest The Federal Bank
scheduled commercial bank in India. Limited

21
 Bank which started as Private Shareholders Banks,mostly European Imperial Bank of
shareholders. India

The first Indian Bank to open a branch outside India in London in 1946 Bank of India,
and the first to open a branch in continental Europe at Paris in 1974
founded in 1906
in Mumbai.

The oldest Public Sector Bank in India having branches all over India Allahabad Bank
and serving the customers for the last 132 years.

INDIAN BANKING INDUSTRY

The Indian banking market is growing at an astonishing rate, with Assets expected to
reach US$1 trillion by 2020. An expanding economy, middleclass, and technological
innovations are all contributing to this growth.

The country’s middle class accounts for over 320 million People. In correlation with the
growth of the economy, rising income levels, increased standard of living, and
affordability of banking products are promising factors for continued expansion.

The Indian banking Industry is in the middle of an IT revolution, Focusing on the

expansion of retail and rural banking. Players are becoming increasingly customer -

22
centric in their approach, which has resulted in innovative methods of offering new
banking products and services. Banks are now realizing the importance of being a big
playerand are beginning to focus their attention on mergers and acquisitions to take
advantage of economies of scale and/or comply with Basel II regulation.“Indian banking
industry assets are expected to reach US$1 trillion by 2020 and are poised to receive a
greater infusion of foreign capital,” says Prathima Rajan, analyst in Celent's banking
group and author of the report. “The banking industry should focus on having a small
number of large players that can compete globally rather than having a large number of
fragmented players.

23
 STATE BANK OF INDIA

STATE BANK OF INDIA

State Bank of India

Industry : Banks - Public Sector

Incorporation Year 1955

Chairman Dinesh Kumar Khara
Managing Director Swaminathan J & Ashwini Kumar Tewari
Company Secretary -

24
 Auditor B M Chatrath & Co/ Kalyaniwala & Mistry
State Bank Bhavan 8th Floor,
Registered Office Madame Cama Road Nariman Point,
Mumbai, 400021, Maharashtra
Telephone 91-22-22883888/22022678
Fax 91-22-22855348
E-mail [Link]@[Link]
Website [Link]
Face Value (Rs) 10
BSE Code 500112
BSE Group A
NSE Code SBIN
Bloomberg SBIN IN
Reuters [Link]
ISIN Demat INE062A01012
Market Lot 1
Ahmedabad, Chennai, Delhi, Kolkata, London, Mumbai,
Listing
NSE
Financial Year End 03
Book Closure Month May
AGM Month Jun
Dramatics Financial Services, PlotNo-A-16-17 Part B,
Cross Lane MIDC, Marol Andheri (East), Mumbai - 400
Registrar's Name &
093.
Address
91-22-28213383/90/66
91-22-28369408

It is the largest Indian banking and financial services company (by turnover and total

25
assets) with its headquarters in Mumbai, India. It is state-owned. The bank traces its
ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of
the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent.
Bank of Madras merged into the other two presidency banks, Bank of Calcutta and Bank
of Bombay to form Imperial Bank of India, which in turn became State Bank of India

History of state bank of India:

State Bank of India is the largest state-owned banking and financial services company
in India. The Bank provides banking services to the customer. In addition to the banking
services, the Bank through their subsidiaries, provides a range of financial services,
which include life insurance, merchant banking, mutual funds, credit card, factoring,
security trading, pension fund management and primary dealership in the money market.

The Bank operates in four business segments, namely Treasury, Corporate/ Wholesale
Banking, Retail Banking and Other Banking Business. The Treasury segment includes
the investment portfolio and trading in foreign exchange contracts and derivative
contracts. The Corporate/ Wholesale Banking segment comprises the lending activities
of Corporate Accounts Group, Mid Corporate Accounts Group and Stressed Assets
Management Group. The Retail Banking segment consists of branches in National
Banking Group, which primarily includes personal banking activities, including lending
activities to corporate customers having banking relations with branches in the National
Banking Group.
SBI provides a range of banking products through their vast network of branches in
India and overseas, including products aimed at NRIs. The State Bank Group, with over
16,000 branches, has the largest banking branch network in India. The State bank of
India is the 10th most reputed company in the world according to Forbes. The bank has
156 overseas offices spread over 32 countries. They have branches of the parent in
Colombo, Dhaka, Frankfurt, Hong Kong, Johannesburg, London and environs, Los
Angeles, Male in the Maldives, Muscat, New York, Osaka, Sydney, and Tokyo. They have
offshore banking units in the Bahamas, Bahrain, and Singapore, and representative
offices in Bhutan and Cape Town.

26
 State Bank of India was incorporated in the year 1955. The Bank traces their ancestry
to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank
of Calcutta, making them the oldest commercial bank in the Indian Sub-continent. The
Government of India nationalized the Imperial Bank of India in the year 1955, with the
Reserve Bank of India taking a 60% stake, and name was changed to State Bank of
India.
In the year 2001, the SBI Life Insurance Company was started by the Bank. They are the
only Bank that have been permitted 74% stake in the insurance business. The Bank's
insurance subsidiary 'SBI Life Insurance Company' is a joint venture with Cardif S.A in
which Cardif holds 26% of the stake.
During the year 2005-06, the bank introduced 'SBI e-tax' an online tax payments facility
for direct and indirect tax payment. They also launched the centralized pension
processing. The Bank made a partnership with Tata Consultancy Services for setup C-
Edg Technologies and consulting services to the banking, financial services and
insurance industry. The bank was noted as 'The most preferred bank' in a survey by TV
18 in association with AC Nielsen-ORG Marg. Also, the Bank was voted as 'The most
preferred housing loan provider' in AWAAZ consumer awards for the year 2016.
In the customer loyalty survey 2016-07 conducted by 'Business World', the Bank was
ranked number one in all parameters of customer satisfaction, service orientation,
customer care/ call center, customer loyalty and home loans. SBI Funds was judged
'Mutual fund of the year' by CNBC/TV-18/CRISL. The Bank introduced new products and
services such as web-based remittance, instant fund transfer, online-trading and
comprehensive cash management.
During the year 2017-08, the Bank launched 965 branches all over the country. They
inaugurated a new state-of-the art Dealing Room with online connectivity to all active
forex intensive Branches at Corporate Centre in Mumbai. They launched a new product,
Construction Equipment Loan to cater to construction Companies. Also, they introduced
new products such as SBI Reverse Mortgage Loan and SBI Home Plus in the areas of
Home Loans.
During the year, the RBI transferred their entire shareholding in the Bank representing
59.73% of the issued capital of the Bank to the Government of India. The Bank acquired

27
92.03% of equity of Global Trade Finance Ltd. Consequently, GTFL became a subsidiary
of the Bank. They signed an MoU with the Indian railways for installing ATMs at 682
railway stations. In March 2018, the Bank opened their 10,000th branch and became
only the second bank in the world to have more than 10,000 branches after China's ICBC.
During the year 2018-09, the company launched Import factoring, a new product in
association with SBI Factors & Commercial Services Ltd. They increased the number of
branches for retail sale of gold coins from 250 to 518. Also, they re-launched Gold
Deposit Scheme at 50 branches to mobilize gold from domestic market for deployment
as metal loans to jewellers.

During the year, the Bank opened their 11,111th Branch at Sonapur (Kamrup District) in
Assam. They introduced three new products viz., SBI Special Home Loan, SBI Happy
Home Loan and SBI Lifestyle in response to the stimulus package announced by the
Government of India. Also, they entered into an exclusive arrangement with TATA
Motors for handling the booking process of TATA 'Nano' cars. During the year, the Bank
launched on their web-site an on-line application form for registering Auto Loan
enquiries and expeditiously monitoring and converting these leads into Auto Loans.
Also, they launched 'e-invest' for the ASBA (applications supported by blocked accounts)
to aid investors for their equity subscriptions, IPO and Rights applications.
During the year, the Bank set up a custodial services company namely SBI Custodial
Services Pvt. Ltd., in joint venture with Societe Generale, France. They signed letter of
intent for setting up of joint venture company for undertaking General Insurance
Business. Also, they divested 10% equity stake in its wholly owned subsidiary SBI
Pension Fund Pvt. Ltd at cost in favour of its subsidiaries. In October 2018, the Bank
signed an MoU with State General Reserve Fund (SGRF) of Oman, for a general purpose
private equity fund.
During the year, State Bank of Saurashtra (SBS), a wholly owned subsidiary of the Bank,
amalgamated with the Bank with effect from August 13, 2018. They signed a joint
venture agreement with Insurance Australia Group for undertaking General Insurance
business. Also, they signed a joint venture agreement with Macquarie Capital Group,
Australia and IFC, Washington for setting up an Infrastructure fund of USD 3 billion for

28
investing in various infrastructure projects in India.
During the year 2019-10, the Bank opened 1,049 branches, out of which branches were
opened in metro and urban areas with a view to increase the Bank's reach and be more
accessible to customers. In July 2019, SBI introduced 'SBI Loan to Affluent Pensioners'
enabling the government pensioners to avail personal loans upto Rs 3 lakh.
During the year, the Bank designed a special package, the Defence Salary Package, for
personnel of the three Armed Forces i.e. the Army, Navy and Air Force who maintain
their Salary accounts with them. As of March 2020, the Bank had 12,496 branches and
21,485 Group ATMs. In June 2019, the company increased their shareholding in Nepal
SBI Bank Ltd to 55.02% and thus Nepal SBI Bank Ltd became a subsidiary of the Bank
with effect from June 14, 2019.
In May

2020, the Bank selected consortium of Elavon Incorporation, USA and Visa International,
USA as their joint venture (JV) partner for Merchant Acquiring Business. They set up a
wholly owned subsidiary, namely SBI Payment Services Pvt Ltd for conducting Merchant
Acquiring Business.
In August 2020, State Bank of Indore was amalgamated with the Bank as per the
scheme of amalgamation approved by the Central Board.
During the year 2020-11, the Bank introduced 2 new products, namely 'Pushpa Ullas'
and 'Arthias Plus' on pilot basis. They made substantial progress in establishing itself
as a leading PE fund player of the country. Also, they also signed a Joint Venture
agreement with State General Reserve Fund (SGRF) of Sultanate of Oman, a sovereign
entity, to set up a general purpose private equity fund with an initial corpus of USD 100
mn, expandable further to USD 1.5 bn.
During the year, the Bank opened 576 new branches besides merger of 470 branches of
erstwhile State Bank of Indore. Also, they opened 14 foreign offices during the year,
taking the total to 156. In July 1, 2020, the Bank launched their 'Green Channel Counter'
at select branches across the country.
In General Insurance business, the Bank launched limited operations in April 2020 for
the Corporate and Mid Corporate customers based at Mumbai, and it was expanded to

29
six other major locations in July 2020. In the Retail segment, the Bank launched their
Long Term Home Insurance business at Mumbai in October 2020, which was gradually
extended to cover 56 RACPCs and RASMECCs. General Insurance SME business was
launched on a pilot basis in Mumbai and Chennai in February 2020. During the first
quarter of the financial year 2020-12, the Government of India issued the 'Acquisition of
State Bank of India Commercial & International Bank Ltd. vide notification dated July 29,
2020. Consequent to the said notification, the undertaking of State Bank of India
Commercial & International stands transferred to and vest in State Bank of India with
effect from July 29, 2020.

SUSTAINABLE EARNINGS OF STATE BANK OF INDIA:

Yearly - State Bank of India

Rs (in Crores)

Mar'20 Mar'19 Mar'18 Mar'17 Mar'16

INCOME

Net Sales Turnover 257323.59 242868.65 220499.31 175518.24 163998.30

Other Income 39005.84 35214.34 39164.52 35460.93 27845.37

Total Income 296329.43 278082.99 259663.83 210979.17 191843.67

EXPENSES

Stock Adjustments .00 .00 .00 .00 .00

Raw Material Consumed .00 .00 .00 .00 .00

Power and Fuel .00 .00 .00 .00 .00

Employee Expenses 45714.97 41054.71 33178.68 26489.28 25113.83

Administration and Selling

Expenses .00 .00 .00 .00 .00

Research and .00 .00 .00 .00 .00

30
Development Expenses

Expenses Capitalised .00 .00 .00 .00 .00

Other Expenses 29458.72 28633.02 26764.77 19983.49 16668.54

Provisions Made 43069.85 53828.55 75039.19 35992.74 29483.75

TOTAL EXPENSES 118243.54 123516.28 134982.64 82465.51 71266.12

Operating Profit 139080.05 119352.37 85516.67 93052.73 92732.18

EBITDA 178085.89 154566.71 124681.19 128513.66 120577.55

Depreciation .00 .00 .00 .00 .00

EBIT 221155.74 208395.26 199720.38 164506.40 150061.30

Interest 159238.77 154519.78 145645.60 113658.50 106803.49

EBT 61916.97 53875.48 54074.78 50847.90 43257.81

Taxes 10574.65 745.25 -8980.79 4371.06 3823.41

Profit and Loss for the

Year 51342.32 53130.23 63055.57 46476.84 39434.40

Extraordinary Items 6215.64 1560.55 5436.17 .00 .00

Prior Year Adjustment .00 .00 .00 .00 .00

Other Adjustment -43069.85 -53828.55 -75039.19 -35992.74 -29483.75

Reported PAT 14488.11 862.23 -6547.45 10484.10 9950.65

KEY ITEMS

Reserves Written Back .00 .00 .00 .00 .00

Equity Capital 892.46 892.46 892.46 797.35 776.28

Reserves and Surplus 207352.30 195367.42 193388.11 155903.06 143498.16

Equity Dividend Rate .00 .00 .00 260.00 260.00

Agg. Non-Promoter
Share(Lakhs) .00 .00 .00 .00 .00

31
Agg. Non-Promoter
Holding(%) .00 .00 .00 .00 .00

Government Share 56.92 57.13 58.03 61.23 60.18

Capital Adequacy Ratio .00 .00 .00 .00 .00

EPS(Rs.) NaN NaN NaN NaN NaN

RATIO ANALYSIS:

CURRENT RATIO:

An indication of a company's ability to meet short-term debt obligations; the

higher the ratio, the more liquid the company is. Current ratio is equal to current assets

divided by current liabilities. If the current assets of a company are more than twice the

current liabilities, then that company is generally considered to have good short-term

financial strength. If current liabilities exceed current assets, then the company may
have problems meeting its short-term obligations.

CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITY

current ratio

year 2017-2020
year Ratio

32
 2017 0.05
2018 0.07
2019 0.04
2020 0.04

Parameter MAR'19 MAR'18

Operational & Financial Ratios:

Earnings Per Share (Rs) 0.97 -7.34

DPS(Rs) 0.00 0.00

Book NAV/Share(Rs) 219.91 217.69

Margin Ratios:

Yield on Advances 11.11 11.40

Yield on Investments 8.02 7.89

Cost of Liabilities 4.66 4.75

NIM 2.62 2.35

Interest Spread 6.45 6.65

Performance Ratios:

ROA(%) 0.02 -0.21

ROE(%) 0.44 -3.73

33
 ROCE(%) 2.75 -1.03

Efficiency Ratios:

Cost Income Ratio 55.70 50.18

Core Cost Income Ratio 56.15 55.94

Operating Costs to Assets 1.89 1.74

Capitalisation Ratios:

Tier 1 ratio 0.00 0.00

Tier 2 ratio 0.00 0.00

CAR 0.00 0.00

Valuation Parameters:

PER(x) 332.06 0.00

PCE(x) 70.27 -61.52

Price / Book(x) 1.46 1.15

Yield(%) 0.00 0.00

EV / Net Sales(x) 2.84 2.65

EV / Core EBITDA(x) 12.43 9.84

EV / EBIT(x) 4.40 4.50

EV / CE(x) 0.19 0.17

M Cap / Sales 1.18 1.01

Growth Ratio:

Core Operating Income Growth 18.03 21.01

Operating Profit Growth 5.56 -63.13

Net Profit Growth 113.17 -162.45

34
 BVPS Growth 1.02 10.77

Advances Growth 12.97 23.16

EPS Growth(%) 113.17 -155.80

Liquidity Ratios:

Loans / Deposits(x) 0.14 0.13

Total Debt / Equity(x) 0.06 0.06

Current Ratio(x) 0.33 0.39

Quick Ratio(x) 13.84 13.38

Total Debt / Mcap(x) 0.00 0.00

Net NPA in Rs. Million 0.00 0.00

LIQUID RATIO:

Liquid ratio is also known as ‘Quick’ or ‘Acid Test ‘Ratio. Liquid assets refer to

assets which are quickly convertible into cash. Current Assets other stock and prepaid
expenses

are considered as quick assets.

Quick Ratio = Total Quick Assets

Total Current Liabilities

35
Quick Assets = Total Current Assets – Inventory

Year Ratio
2017 6.52
2018 6.15
2019 5.74
2020 9.07

quick ratio
10 9.07
9 8.5
8
7 6.52
6.15
5.74
6
5
quick ratio
4
3
2
1
0
1 2 3 4 5

EARNING PER SHARE:

In order to avoid confusion on account of the varied meanings of the term capital

employed, the overall profitability can also be judged by calculating earning per share
with the help of the following formula:

Earning Per Equity Share = Net Profit after Tax –Preference Dividend

No. of Equity shares

The earning per share of the company helps in determining the market price of the
equity shares of the company. A comparison of earning per share of the company with
another will also help in deciding whether the equity share capital is being effectively

36
used or not. It also helps in estimating the company’s capacity to pay dividend to its
equity shareholders.

Year Ratio

2017 86.29

2018 106.56

2019 143.67

2020 144.37

Ratio
160 144.37
143.67
140
116.07
120 106.56
100 86.29
80
Ratio
60
40
20
0
1 2 3 4 5

DIVIDEND PER SHARE :

37
It is expressed by dividing dividend paid to equity shareholders by no. of equity shares.

this shows the per share dividend given to equity shareholders. It is very helpful for
potential investors to know the dividend paying capacity of the company. It affects the
market value of the company.

Dividend Per Share = Dividend Paid To Equity Shareholders

No. Of Equity Shares

dividend per share

2017 14
year 2018 21.5
2019 29
2020 30

NET PROFIT RATIO:

This ratio indicates the Net margin on a sale of Rs.100. It is calculated as follows:

Net Profit Ratio = Net Profit X 100

Net Sales

This ratio helps in determining the efficiency with which affairs of the business are
being managed. An increase in the ratio over the previous period indicates improvement

38
in the operational efficiency of the business. The ratio is thus on effective measure to
check the profitability of business.

net profit ratio

2017 10.12
year 2018 11.65
2019 12.03
2020 10.54

RETURN ON NET WORTH:

It measures the profitability of the business in view of the shareholders. It judges the
earning capacity of the company and the adequacy of return on proprietor’s funds.
Shareholders and potential investors are interested in this ratio. It is calculated as below:

Return On Net Worth = Net Profit After Interest And Tax x 100

Shareholder’s Funds

return on shareholder's

39
 2017 14.5
year 2018 13.72
2019 15.74
2020 13.89

DEBT- EQUITY RATIO:

The Debt-Equity ratio is calculated to find out the long-term financial position of the firm.
This ratio indicates the relationship between long-term debts and shareholder’s funds.
The soundness of long-term financial policies of a firm can be determined with the help
of this ratio. It helps to assess the soundness of long-term financial policies of a
business. It also helps to determine the relative stakes of outsiders and shareholders.
Long-term creditors can assess the security of their funds in a business. It indicates to
what extent a firm depends upon lenders to meet its long-term financial requirements. A
low Debt-Equity ratio is considered better from the point of view of creditors.

Total Debt to Owners Fund

2017 13.92
year 2018 10.96
2019 12.81
2020 12.19

FIXED ASSETS TURNOVER RATIO:

It is also called as Sales to Fixed Assets Ratio. It measures the efficient use of fixed

40
assets. This ratio is a measure of efficient use of fixed assets. it is calculated as:

Fixed Assets Turnover Ratio = Cost of goods sold or Sales

Net Fixed Assets

It measures the efficiency and profit earning capacity of the business. Higher the ratio,
greater is the intensive utilization of fixed assets and a lower ratio shows under
utilization of the fixed assets. This ratio has a special importance for manufacturing
concerns where investment in fixed assets, is very high and the profitability is
significantly dependent on the utilization of these assets.

assets turnover ratio

2017 5.44
year 2018 6.32
2019 7.2
2020 7.26

CREDIT-DEPOSIT RATIO:

This ratio is very important to assess the credit performance of the bank. The ratio
shows the relationship between the amount of deposit generated by the bank as well
as their deployment towards disbursement of loan and advances. Higher credit deposit
ratio shows overall good efficiency and performance of any banking institution.

Credits
Credit Deposit Ratio   100
Deposits

Credit means disbursement of advances

Deposit mean sum of fixed deposit,

Saving deposit and current deposit.

41
 credit deposit ratio

2017 73.44
year 2018 77.51
2019 74.97
2020 75.96

CASH DEPOSIT RATIO :

cash deposit ratio

2017 6.22
YEAR 2018 8.29
2019 8.37
2020 7.56

42
CAPITAL TURNOVER RATIO :

Income / capital employed

CAPITAL TURNOVER RATIO

2017 8.46
YEAR 2018 8.96
2019 8.99
2020 8.62

Total assets turnover ratio:

total assets turnover ratio

2017 0.08
year 2018 0.09
2019 0.09
2020 0.09

43
PRICE- EARNING RATIO:

Price earning ratio = market price per share/ earning per share

Price Earning (P/E)

2017 11.83
Year 2018 15.38
2019 7.63
2020 14.78

Price to Book Value:

Market Value of Security/ book value of shares

Price to Book Value ( P/BV)

2017 1.67
year 2018 2.06
2019 1.17
2020 2

44
Enterprise Value / EBIDTA

EV/EBIDTA

2017 15.64
year 2018 14.46
2019 13.64
2020 15.33

45
 BANK OF BARODA

INTRODUCTION

46
Bank of Baroda (BoB) (BSE: 532134) (Hindi: बक ऑफ़ बड़ौदा) is the third largest bank in
India, after the State Bank of India and the Punjab National Bank and ahead of ICICI
Bank. BoB is ranked 763 in Forbes Global 2000 list. BoB has total assets in excess of Rs.
3.58 lakh crores, or Rs. 3,583 billion, a network of over 3,409 branches and offices, and
about 1,657 ATMs. It plans to open 400 new branches in the coming year. It 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. Its
total business was Rs. 5,452 billion as of June 30.[4]

As of August 2020, the bank has 78 branches abroad and by the end of FY11 this
number should climb to 90. In 2020, BOB opened a branch in Auckland, New Zealand,
and its tenth branch in the United Kingdom. The bank also plans to open five branches
in Africa. Besides branches, BoB plans to open three outlets in the Persian Gulf region
that will consist of ATMs with a couple of people.

The Maharajah of Baroda, Sir Sayajirao Gaekwad III, founded the bank on 20 July 1908
in the princely state of Baroda, in Gujarat. The bank, along with 13 other major
commercial banks of India, was nationalized on 19 July 1969, by the government of
India.

BALANCE SHEET OF BANK OF BARODA

2017 2018 2019 2020

Total Share Capital 365.53 365.53 365.53 365.53
Equity Share
Capital 365.53 365.53 365.53 365.53
Share Application
Money 0 0 0 0
Preference Share
Capital 0 0 0 0
Reserves 8284.41 10,678.40 12,470.01 14,740.86

47
 Revaluation
Reserves 0 0 0 0
Net Worth 8649.94 11,043.93 12,835.54 15,106.39
Deposits 124915.98 152,034.13 192,396.95 241,044.26
Borrowings 1142.56 3,927.05 5,636.09 13,350.09
Total Debt 126058.54 155,961.18 198,033.04 254,394.35
Other Liabilities &
Provisions 8437.70 12,594.41 16,538.15 8,815.97
Total Liabilities 143146.18 179,599.52 227,406.73 278,316.71
2017 2018 2019 2020
Assets
Cash & Balances
with RBI 6413.52 9,369.72 10,596.34 13,539.97
Balance with
Banks, Money at
Call 11866.85 12,929.56 13490.77 21,927.09
Advances 83620.87 106,701.320 143985.90 175,035.29
Investments 34943.63 43,870.07 52445.88 61,182.38
Gross Block 2244.62 3,787.14 3954.13 4,266.60
Accumulated
Depreciation 1155.81 1,360.14 1644.41 1,981.84
Net Block 1088.81 2427.00 2309.72 2,284.76
Capital Work In
Progress 0 0 0 0
Other Assets 5212.5 4301.83 4578.12 4,347.22

Total Assets 227406.73

143146.18 179599.5 278,316.71

Contingent
Liabilities 54999.86 75364.33 64745.82 77,997.01

48
 Bills for collection 12976.53 15105.51 22584.64 27,949.60
Book Value (Rs) 237.46 303.18 352.37 414.71
EPS 28.18 39.41 61.14 83.96
PROFIT AND LOSS OF BANK OF BARODA

PROFIT & LOSS OF BANK OF

BARODA
IN RS.
CR.
2017 2018 2019 2020
Income:
9,212.64 11,813.5 15,091.6 16,698.3
Interest earned
Other income 1,381.79 2,051.04 2,757.66 2,806.36
Total income 10,594.4 13,864.5 17,849.2 19,504.7
Expenditure:
Interest expended 5,426.56 7,901.67 9,968.17 10,758.9
Operating expenses 2,771.45 3,370.27 3,844.66 4,711.23
Other provision and
contingencies 1,369.95 1,157.05 1,809.20 976.28
Total expenses 9,568.0 12,429.0 15,622.0 16,446.4

Net profit 1,026.46 1,435.52 2,227.20 3,058.33

Extraordinary items 0 0 0 0
Profit B/F 0 0 0 0
Total 1,026.46 1,435.52 2,227.20 3,058.33

Preference dividend 0 0 0 0
Equity dividend 252.46 340.94 383.56 639.26
Corporate dividend tax 0 0 0 0
Per share data:

49
EPS 28.18 39.41 61.14 83.96
Equity dividend (%) 60 80 90 150
Book value 237.46 303.18 352.37 414.71
Appropriations
Transfer to statutory reserve 271.5 444.23 1,136.23 1,162.07
Transfer to other reserve 502.5 650.35 707.41 1,257.00
Proposed dividend/ transfer to
govt. 252.46 340.94 383.56 639.26
Balance C/F to balance sheet 0 0 0 0

Total 1,026.46 1,435.52 2,227.20 3,058.33

RATIO ANALYSIS OF BANK OF BARODA:

Current ratio: CURRENT ASSETS/ CURRENT LIABILITIES

Current Ratio

2017 0.04
year 2018 0.03
2019 0.02
2020 0.02

QUICK RATIO:

Quick Ratio

2017 11.29

50
 year 2018 9.56
2019 9.62
2020 21.88

Earnings Per Share

2017 28.18
year 2018 39.41
2019 61.14
2020 83.96

Total Debt to Owners Fund

2017 14.44
year 2018 13.77
2019 14.99
2020 15.96

51
 Cash Deposit Ratio

2017 4.46
year 2018 5.7
2019 5.8
2020 5.57

Credit Deposit Ratio

2017 65.67
year 2018 68.72
2019 72.78
2020 73.6

Asset Turnover Ratio

2017 4.25
year 2018 3.47
2019 4.2
2020 4.48

52
 Total Assets Turnover Ratios

2017 0.07
Year 2018 0.08
2019 0.08
2020 0.08

Total Income / Capital Employed(%)

2017 7.83
year 2018 8.57
2019 8.51
2020 7.86

Net Profit / Total Funds

2017 0.8
year 2018 0.89
2019 1.09
2020 1.21
2020 1.33

53
 Dividend Per Share

2017 6
Year 2018 8
2019 9
2020 15

PRICE- EARNING RATIO:

Price earnings ratio = market price per share/ earnings per share

PRICE- EARNING

2017 7.93
YEAR 2018 7.49
2019 3.95
2020 7.87

PRICE- BOOK VALUE

Market Value of Security/ book value of shares

PRICE-BOOK VALUE
2017 0.91
YEAR 2018 0.94

54
 2019 0.67
2020 1.55
2020 1.8

ENTERPRISE TO EBIDTA:

EV/EBIDTA
2017 15.9
YEAR 2018 13.93
2019 14.01
2020 15.93

TREND ANALYSIS

Trend Analysis is the practice 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 meaning.

Although trend analysis is often used to predict future events, it could be used to
estimate uncertain events in the past, such as how many ancient kings probably ruled
between two dates, based on data such as the average years which other known kings
reigned.

TREND ANALYSIS OF STATE BANK OF INDIA

BASE YEAR 2016-2017
percentage (%)
figures
2017 2018 2019 2020

55
 deposits 100 123 170 185
advances 100 124 161 187
net profit 100 148 201 202

INTERPRETATION:

 There is a continuous increase in deposits

 There is a increase of advances

 There is a increase in net profits till 2020 but there is a fall in 2020

The overall performance of the bank is satisfactory.

TREND ANALYSIS OF BANK OF BARODA

Bank of Baroda

Base year 2016-2017

In percentage (%) figures

2017 2018 2019 2020

deposits 100 122 154 193

advances 100 128 172 209
net profit 100 140 217 298

56
 INTERPRETATION:

Deposits:-

The trend shows that the deposits are increasing from 2017-2020

Advances:-

The trend of advances shows that it is increasing in those four years 2018-2020

Net profit:-

The trend of net profit shows the increase from 2018-2020

BETA ANALYSIS

A measure of the volatility, or systematic risk, of a security or a portfolio in comparison

to the market as a whole. Beta is used in the capital asset pricing model (CAPM), a
model that calculates the expected return of an asset based on its beta and expected
market returns..
Also known as "beta coefficient".

BETA VALUATION OF STATE BANK OF INDIA

1 2 3 4 5 6 7 8
return return
- varian of SBI- covarian
RETURN RETUR avera ce of Avera ce of
OF N OF ge of sense ge of sensex
MONTH SENSEX SBI SENSEX SBI return x return and SBI

57
 of
sense
x of SBI
20,069.1 3,233
10-Sep 2 .20
20,032.3 3,151 0.000
10-Oct 4 .20 0.00 -0.03 0.01 1 0.01 0.0001
19,521.2 2,994 0.000
10-Nov 5 .10 -0.03 -0.05 -0.01 2 -0.01 0.00014
-
20,509.0 2,811 0.004 0.00140
10-Dec 9 .05 0.05 -0.06 0.06 0 -0.02 7
18,327.7 2,641 0.008 0.00201
11-Jan 6 .05 -0.11 -0.06 -0.09 8 -0.02 8
-
17,823.4 2,632 0.000 0.00052
11-Feb 0 .00 -0.03 0.00 -0.01 2 0.04 5
19,445.2 2,767 0.010 0.00939
11-Mar 2 .90 0.09 0.05 0.10 8 0.09 2
-
19,135.9 2,805 0.000 0.00016
11-Apr 6 .60 -0.02 0.01 0.00 0 0.05 7
18,503.2 2,297 0.000
11-May 8 .80 -0.03 -0.18 -0.02 4 -0.14 0.00289
18,845.8 2,405 0.001 0.00268
11-Jun 7 .95 0.02 0.05 0.03 0 0.09 6
-
18,197.2 2,342 0.000 0.00026
11-Jul 0 .00 -0.03 -0.03 -0.02 5 0.01 8
16,676.7 1,974 0.005 0.00835
11-Aug 5 .50 -0.08 -0.16 -0.07 0 -0.12 8

58
 16,933.8 1,945 0.000 0.00068
11-Sep 3 .55 0.02 -0.01 0.03 8 0.02 3

AVERAGE 0.002
RETURN -0.01 -0.04 6 0.00200

COVARIANC 0.001995
E 59

0.002642
VARIANCE 95

BETA 0.755062

BETA VALUATION OF BANK OF BARODA

1 2 3 4 5 6 7 8
return-
RETUR avera return-
N OF ge of avera
BANK RETUR BANK return ge of covarian
OF N OF OF on varianc return ce of
MONT BAROD SENSE BAROD sense e of on sensex
H SENSEX A X A x sensex BOB and BOB
10- 20,069.12 872.8

59
 Sep
1,011.0 0.010 0.0001 0.165
10-Oct 20,032.34 0 -0.0018 0.1583 9 19 0 0.0018
- -
10- - 0.012 0.0001 0.072
Nov 19,521.25 937.75 -0.0255 0.0725 8 64 5 0.0009
-
10- - 0.063 0.0040 0.044
Dec 20,509.09 896.5 0.0506 0.0440 3 1 0 -0.003
- -
11- - 0.093 0.0087 0.030
Jan 18,327.76 869.15 -0.1064 0.0305 6 68 5 0.0029
-
11- 0.014 0.0002 0.002
Feb 17,823.40 870.85 -0.0275 0.0020 8 19 0 -3E-05
11- 0.103 0.0107 0.106
Mar 19,445.22 963.15 0.0910 0.1060 7 57 0 0.011
- -
- 0.003 1.01E- 0.053
11-Apr 19,135.96 912.15 -0.0159 0.0530 2 05 0 0.0002
- -
11- - 0.020 0.0004 0.053
May 18,503.28 863.4 -0.0331 0.0534 3 14 4 0.0011
11- 0.031 0.0009 0.009
Jun 18,845.87 871.9 0.0185 0.0098 2 76 8 0.0003
-
0.021 0.0004 0.007
11-Jul 18,197.20 878.3 -0.0344 0.0073 7 71 3 -0.00016
- -
11- - 0.070 0.0050 0.161
Aug 16,676.75 736.6 -0.0836 0.1613 8 18 3 0.0114

60
11- 0.028 0.0007 0.051
Sep 16,933.83 774.8 0.0154 0.0519 1 92 9 0.0015

AVERAGE - 0.0026
RETURN -0.0127 0.0066 43 0.0023

COVARIAN 0.0023
CE 4

0.0026
VARIANCE 43

0.8843
BETA 85

RATIO ANALYSIS

A tool used by individuals to conduct a quantitative analysis of information in a

company's financial statements. Ratios are calculated from current year numbers and
are then compared to previous years, other companies, the industry, or even the
economy to judge the performance of the company. Ratio analysis is predominately
used by proponents of fundamental analysis.

There are many ratios that can be calculated from the financial statements pertaining to
a company's performance, activity, financing and liquidity. Some common ratios include
the price-earnings ratio, debt-equity ratio, earnings per share, asset turnover and

61
working capital.

SUSTAINABLE EARNINGS OF BANK OF BARODA

IN RS. CR.

202003 201903 201803 201703

202003 (12) (12) (12) (12) (12)

INCOME :

Total 24695.1 19504.7 17876.11 13892.18 10438.12

II. Expenditure

Total 20453.42 16446.37 15648.91 12456.66 9411.66

Fringe Benefit tax 0 0 0 11 7.5

Deferred Tax 0 0 0 -3.12 -3.11
Reported Net
Profit 4241.68 3058.33 2227.2 1435.52 1026.46
Extraordinary
Items -0.12 56.12 62.29 0.22 8.01

Adjusted Net
Profit 4241.8 3002.21 2164.91 1435.3 1018.45

Average of Adjusted net profit for the year 2019,2020,2020

2018 2164.91
2019 3002.21

62
2020 4241.8

Sum = 9408.92

Average = 3136.30

Standard deviation 1044.466

Rounding off 1044

CRAR% OF BANK OF BARODA:

2020/03 2019/03 2018/03

CRAR(%)
Year End 202003 202003 201903
CRAR - Tier I
(%) 9.99 9.2 8.49
CRAR - Tier II
(%) 4.53 5.16 5.56
Total CRAR (%) 14.52 14.36 14.05

Total
CRAR
(%)
2018 14.05

63
 year 2019 14.36
2020 14.52

64
 RESEARCH METHODOLOGY

RESEARCH TOPIC

“THE COMPARATIVE STUDY OF FINANCIAL PERFORMANCE OF STATE BANK OF

INDIA AND BANK OF BARODA.”

65
OBJECTIVE OF THE STUDY:-

1. To know the strength and weakness of State Bank Of India and Bank Of Baroda
through Ratio analysis.

2. To evaluate the performance of the companies.

3. To understand the liquidity, profitability and efficiency positions of the

companies.

4. To make comparison between the ratios during different periods.

INTRODUCTION

Financial Management is the specific area of finance dealing with the financial decision
corporations make, and the tools and analysis used to make the decisions. The
discipline as a whole may be divided between long-term and short-term decisions and
techniques. Both share the same goal of enhancing firm value by ensuring that return
on capital exceeds cost of capital, without taking excessive financial risks.
Capital investment decisions comprise the long-term choices about which projects
receive investment, whether to finance that investment with equity or debt, and when or
whether to pay dividends to shareholders.
Short-term corporate finance decisions are called working capital management and
deal with balance of current assets and current liabilities by managing cash, inventories,
and short-term borrowings and lending (e.g., the credit terms extended to customers).
Corporate finance is closely related to managerial finance, which is slightly broader in
scope, describing the financial techniques available to all forms of business enterprise,
corporate or not.

RESEARCH METHODOLOGY

66
The conclusive research is being used to study the comparison of the companies.

 Data collection:

Secondary data is being taken

Websites

Outcomes of the study:

1. With this analysis we come to know about the strength and weakness of State
Bank Of India and Bank Of Baroda through Ratio analysis.

2. To evaluate the performance of the companies.

3. To understand the liquidity, profitability and efficiency positions of the

companies.

4. To make comparison between the ratios during different periods.

Limitation of the study:

The study is done in Kanpur

Study is constrained to only the comparison of State Bank Of India and Bank Of Baroda.

TOOLS USED:

Comparative analysis

Ratio analysis

Trend analysis

Beta valuation

Sustainable earnings

Basel-II CRAR % capital requirement

67
Cash Flow Statement Analysis

STATISTICAL TOOL:

CAPITALINE

SPSS

68
 FINANCIAL ANALYSIS

69
Introduction to the topic

RATIO ANALYSIS
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 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.
 Management, in every aspect of the financial analysis. It is the responsibility of
the management to maintain sound financial condition in the company.

RATIO ANALYSIS
The term “Ratio” refers to the numerical and quantitative relationship between two
items or variables. This relationship can be exposed as
 Percentages
 Fractions
 Proportion of numbers

Ratio analysis is defined as the systematic use of the ratio to interpret the financial
statements. So that the strengths and weaknesses of a firm, as well as its historical
performance and current financial condition can be determined. Ratio reflects a
quantitative relationship helps to form a quantitative judgment.

70
STEPS IN RATIO ANALYSIS
 The first task of the financial analysis is to select the information relevant to the
decision under consideration from the statements and calculates appropriate
ratios.
 To compare the calculated ratios with the ratios of the same firm relating to the
past or with the industry ratios. It facilitates in assessing success or failure of the
firm.
 Third step is to interpretation, drawing of inferences and report writing
conclusions are drawn after comparison in the shape of report or recommended
courses of action.

BASIS OR STANDARDS OF COMPARISON

Ratios are relative figures reflecting the relation between variables. They enable analyst
to draw conclusions regarding financial operations. They use of ratios as a tool of
financial analysis involves the
comparison with related facts.

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
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.

71
  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.

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.

IMPORTANCE OF RATIO ANALYSIS

 Aid to measure general efficiency
 Aid to measure financial solvency
 Aid in forecasting and planning
 Facilitate decision making
 Aid in corrective action
 Aid in intra-firm comparison
 Act as a good communication
 Evaluation of efficiency
 Effective tool

LIMITATIONS OF RATIO ANALYSIS

 Differences in definitions
 Limitations of accounting records
 Lack of proper standards
 No allowances for price level changes
 Changes in accounting procedures
 Quantitative factors are ignored
 Limited use of single ratio

72
  Background is over looked
 Limited use
 Personal bias

IN THE VIEW OF FUNCTIONAL CLASSIFICATION THE RATIOS

ARE
 Liquidity ratio
 Leverage ratio
 Activity ratio
 Profitability ratio

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. The short term obligations are met by realizing amounts from
current, floating (or) circulating assets The current assets should either be calculated
liquid (or) near liquidity. They should be convertible into cash for paying obligations of
short term nature. The sufficiency (or) insufficiency of current assets should
be assessed by comparing them with short-term current liabilities. If current assets can
pay off current liabilities, then liquidity position will be satisfactory.
To measure the liquidity of a firm the following ratios can be
calculated
 Current ratio
 Quick (or) Acid-test (or) Liquid ratio
 Absolute liquid ratio (or) Cash position ratio

(a) CURRENT RATIO:

Current ratio may be defined as the relationship between current assets and current

73
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.

Current ratio= current assets/ current liabilities

Components of current ratio:

Current Assets Current Liabilities

Cash in hand Outstanding expenses

Cash at bank Bank overdraft
Bills receivable Bill payable
Inventories Short term advances
Work-in-progress Sundry creditors
Marketable securities Dividend payable
Short-term investments Income-tax payable
Sundry debtors
Prepaid expenses

(b) QUICK RATIO

Quick ratio is a test of liquidity than the current ratio. The term liquidity refers to the
ability of a firm to pay its short-term obligations as & when they become due. Quick ratio
may be defined as the relationship
between quick or liquid assets and current liabilities. An asset is said to be liquid if it is
converted into cash with in a short period without loss of value.

Quick or liquid assets

Quick Ratio= quick or liquid assets/ current liabilities

Components
Quick Assets Current liabilities

74
 Cash in hand Outstanding or accrued expenses
Cash at bank Bank overdraft
Bills receivable Bills payable
Sundry debtors Short term advances
Marketable securities Sundry creditors
Temporary investments Dividend payable
Income tax payable
(c) ABSOLUTE LIQUID RATIO
Although receivable, debtors and bills receivable are generally
more liquid than inventories, yet there may be doubts regarding their
realization into cash immediately or in time. Hence, absolute liquid ratio
should also be calculated together with current ratio and quick ratio so as to
exclude even receivables from the current assets and find out the absolute
liquid assets.

Absolute liquid ratio = Absolute liquid assets/Current liabilities

Absolute liquid assets include cash in hand etc. The acceptable

forms for this ratio is 50% (or) 0.5:1 (or) 1:2 i.e., Rs.1 worth absolute liquid
assets are considered to pay Rs.2 worth current liabilities in time as all the creditors are
nor accepted to demand cash at the same time and then cash
may also be realized from debtors and inventories.
Components:

Absolute liquid assets Current liabilities

Cash in hand Outstanding or accrued expenses

Cash in bank Bank overdraft
Interest on fixed deposits Bills payable
Dividend payable
Sundry creditors
Short term advances
Income tax payable

75
2. LEVERAGE RATIOS
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
(a) PROPRIETORY 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.

Proprietory ratio = Shareholders funds/ Total assets

Shareholder fund Total Assets

Share capital Fixed assets

Reserve& surplus Current assets
Cash in hand
Cash at bank
Bills receivable
Inventories
Marketable securities
Short term investment
Sundry debtors
Prepaid expenses
3. ACTIVITY RATIOS
Funds are invested in various assets in business to make sales
and earn profits. The efficiency with which assets are managed directly
effect the volume of sales. Activity ratios measure the efficiency (or)
effectiveness with which a firm manages its resources (or) assets. These
ratios are also called “Turn over ratios” because they indicate the speed with which

76
assets are converted or turned over into sales.
Working capital turnover ratio
Fixed assets turnover ratio
Capital turnover ratio
Current assets to fixed assets ratio
(a) WORKING CAPITAL TURNOVER RATIO
Working capital of a concern is directly related to sales.

Working capital= current assets – current liabilities

It indicates the velocity of the utilization of net working capital.

This indicates the no. of times the working capital is turned over in the

course of a year. A higher ratio indicates efficient utilization of working

capital and a lower ratio indicates inefficient utilization.

Working capital turnover ratio=cost of goods sold/workingcapital.

Components of working capital:

Current assets Current liabilities

Cash in hand Outstanding or accrued expenses

Cash at bank Bank overdraft

Bills receivable Bills payable

Prepaid expenses Short term advances

Short term investments Sundry creditors

Inventories Dividend payable

Work in progress Income tax payable

Marketable securities

77
 Sundry debtors

(b) FIXED ASSETS TURNOVER RATIO

It is also known as sales to fixed assets ratio. This ratio measures the efficiency and
profit earning capacity of the firm. Higher the
ratio, greater is the intensive utilization of fixed assets. Lower ratio means
under-utilization of fixed assets.

Fixed assets turnover ratio = Cost of Sales/ Net fixed assets

Cost of Sales = Income from Services

Net Fixed Assets = Fixed Assets - Depreciation

(c) CAPITAL TURNOVER RATIOS

Sometimes the efficiency and effectiveness of the operations
are judged by comparing the cost of sales or sales with amount of capital
invested in the business and not with assets held in the business, though in
both cases the same result is expected. Capital invested in the business may be
classified as long-term and short-term capital or as fixed capital and working capital or
Owned Capital and Loaned Capital. All Capital
Turnovers are calculated to study the uses of various types of capital.

Capital turnover ratio= cost of goods sold/capital employed

Capital employed = capital+ reserves& surplus

Cost of goods sold = income from services

(d) 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 stocks are increased too much or fixed assets are more
intensively used. If current assets increase with the corresponding increase in profit, it

78
will show that the business is expanding.

Current assets to fixed assets ratio= current assets/ fixed assets

Current assets Fixed assets

Cash in hand Plant

Cash at bank Machinery

Bills receivables Land

Short term investment Building

Inventories Vehicles

Sundry debtors

Work in progress

Marketable securities

4. PROFITABILITY RATIOS

The primary objectives of business undertaking are to earn profits. Because profit is the
engine, that drives the business enterprise.
 Net profit ratio
 Return on total assets
 Reserves and surplus to capital ratio
 Earnings per share
 Operating profit ratio
 Price–earning ratio
 Return on investments

(a) NET PROFIT RATIO

Net profit ratio establishes a relationship between net profit (after tax) and sales and
indicates the efficiency of the management in manufacturing, selling administrative and
79
other activities of the firm.

Net profit after tax = net profit-( depreciation+ interest+ income tax)

Net sales = income from services

Net profit ratio = net profit after tax/ net sales

It also indicates the firm’s capacity to face adverse economic

conditions such as price competitors, low demand etc. Obviously higher the
ratio, the better is the profitability.

(b) RETURN ON TOTAL ASSETS

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.

Returns on assets = net profit / total assets

Net profit = earnings before interest and tax

Total assets = current assets+ fixed assets

(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
80
and increased ploughing back to profit. Higher the ratio better will be the
position.

Reserves& surplus to capital ratio = reserves& surplus/capital

(d) EARNINGS PER SHARE

Earnings per share is a small verification of return of equity and
is calculated by dividing the net profits earned by the company and those
profits after taxes and preference dividend by total no. of equity shares.

Earning per share = net profit after tax/ no. of equity shares

The Earnings per share is a good measure of profitability when

compared with EPS of similar other components (or) companies, it gives a
view of the comparative earnings of a firm.

(e) OPERATING PROFIT RATIO

Operating ratio establishes the relationship between cost of goods sold and other
operating expenses on the one hand and the sales on
the other.

Operating ratio = operating cost / net sales

However 75 to 85% may be considered to be a good ratio in case of a manufacturing

under taking.
Operating profit ratio is calculated by dividing operating profit
by sales.

Operating profit = net sales – operating cost

81
Operating profit ratio = operating profit / sales

FINANCIAL COMPARATIVE
ANALYSIS

82
 BALANCE SHEET OF STATE BANK OF INDIA

FOR THE YEAR ENDING ON MARCH 2017-2020

IN RS CR.

2017- 2018- 2019- 2020

2018 2019 2020
Absolute % Absolute % Absolute % Absolute %
change chang change chang change chang change chang
e e e e
Capital &
Liabilities
Capital 105.17 19.98 3.41 0.005 0.00 0.00 0.12 0.018
4
Reserve& 17628.83 57.28 8910.91 18.41 8001.5 13.96 (963.28) (1.47)
surplus
deposits 101882.8 23.39 204669.1 38.08 62043.1 8.36 129816.5 16.14
5 9 8
borrowings 12024.07 30.28 1986.27 3.83 49297.92 91.77 16557.36 16.07
Other 23320.04 38.83 27335.27 32.79 (30360.3 (27.42 24911.69 31.00
liabilities and 0) ) 9
provisions
TOTAL 154961.0 27.35 242905.7 33.66 88981.65 9.226 170322.4 16.16
CAPITAL 6 7 7

83
AND
LIABILITIES
2017-18 2018-19 2019-20 2020
Absolute % Absolute % Absolute % Absolute %
change chang change chang change chang change chang
e e e e
Assets:
Investments 40352.39 27.05 86452.69 45.62 9836.11 3.56 9810.5 3.43
5
Advances 79431.71 23.54 125735 30.16 89410.95 16.48 124805.3 19.75
Fixed assets (314.22) (0.070 (543.32) (0.13) 543.32 0.15 314.22 0.076
)
Capital Work (37.05) (0.11) (31.74) (0.107 31.74 0.120 37.05 0.125
In Progress ) 4 5
Current (8665.09 (0.19) 2620.51 0.074 (2620.51) (0.069 8665.09 0.24
assets ) )
TOTAL 154961.0 27.35 242905.7 33.66 88981.65 9.226 170322.4 16.16
ASSETS: 6 7 7
Interpretation :

The capital of bank increased by 19.98%in 07-08, 0.0054% in 08-09, 0.018% in 10-11.

There is no change in capital of the bank in the year 09-10

There is a huge fluctuation in the rate of increasing in reserves& surplus .

The bank is utilizing its reserves &surplus in an effective manner.

In 07-08 deposits increase by 23.39%, 08-09 it increase by 38.08%, 8.36% in 09-

10,16.14% in 10-11.

There is a huge fluctuating rate of increase . in 08-09 it had fluctuate to 3.83%.

The investment in 10-11 has increased with a low rate as compared to the preceding

84
 years .27.55% in 07-08,45.62% in 08-09,3.56% in 09-10,3.43% in 10-11.

The advances rose by 23.54% in 07-08,30.16% in 08-09,16.48% in 09-10, 19.75% in 10-11.

There has been a consistent decline in fixed assets in 07-08 and 08-09 0.070% ,0.13%
respectively. Increased by 0.15% in 09-10, 0.076% in 10-11.

There is a fall of current assets 0.19% in 07-08 mainly due to the repayment of
deposits.0.074% in 08-09, subsequent fall of current assets 0.069% in 09-10, and
increase of 0.24% in 10-11.

PROFIT AND LOSS OF STATE BANK OF INDIA FOR THE YEAR ENDING ON MARCH
2017-2020 IN RS CR.

Particulars 2017-08 2018-09 2019-10 2020

%
absolute % absolute % absolute % absolute chang
change change change change change change change e

INCOME:
operating
income 11410.95 0.24 18131.04 0.31 9482.29 0.12 10367.38 0.12
EXPENDITURE:
interest
expended 8492.26 0.36 10986.21 0.18 4407.19 0.10 1545.48 0.032
3514.11
operating
expenses 1357.77 0.10 0.24 6817.35 0.37 6489.87 0.26
9223.14

total expenses 0.21 15738.93 0.30 9437.47 0.14 12163.1 0.15

provision and
contingencies -626.89 -0.10 1238.61 0.24 -1787.07 0.14 12163.1 0.15
net profit of the
year 2187.81 0.48 2392.11 0.35 44.82 0.004914 -1795.68 -0.19

85
extraordinary
items 0 0 0 0 0 0 0 0
profit brought
forward 0 0 0 0 0 0 0 0
total
profit/(loss): 2187.81 0.48 2392.11 0.35 44.82 0.004914 -1795.68 -0.19

INTERPRETATION:

Net Profit Of The Year: it shows a fluctuating trend i.e., increased by 48% in2017-08,35%
in 2018-09,0.49% in 2019-10 and decline by 19% in 2020-11due to increased tax liability.
Interest Expended: it increases from 36% in 2017-08,18% in 2018-09, 10% in 2019-10
and 3.20% in 2020-11.

BALANCE SHEET OF BANK OF BARODA FOR THE YEAR ENDING ON MARCH 2017-
2020 IN RS CR.

2017- 2018- 2019-

2018 2019 2020 2020
absolut absolut absolut absolut
e % e % e % e %
change change change change change change change change
capital &
liabilities:
0.07463
Capital 0 0 0 0 0 0 27.28 1
reserves& 0.28897 0.16777 0.18210 0.39749
surplus 2393.99 5 1791.61 9 2270.85 5 5859.44 6
27118.1 0.21709 40362.8 0.26548 48647.3 0.25284 64395.2 0.26715
Deposits 5 1 2 5 1 9 2 1
Borrowings 2784.49 2.43706 1709.04 0.43519 7714 1.36867 8957.76 0.67098

86
 2 7 9 9
0.49263 0.31313 - - 0.09536
other liabilities 4156.71 5 3943.74 4 7722.18 0.46693 840.76 8
TOTAL 36453.3 0.25465 47807.2 0.26618 50909.9 0.22387 80080.4 0.28773
LIABILITIES: 4 8 1 8 8 2 6 1
2017-08 2018-09 2019-10 2020-11
absolut absolut absolut absolut
e % e % e % e %
change change change change change change change change
ASSETS

0.25545 0.19548 0.16658 10078.2 0.16472

Investments 8926.44 3 8575.81 2 8736.5 1 5 5
23080.4 0.27601 37284.5 0.34942 31049.3 0.21564 53641.0 0.30645
Advances 5 3 8 9 9 2 7 9
fixed assets 1338 1.2 (117) (0.05) (25) (0.01) 15 0.01
capital work in
progress 0 0 0 0 0 0 0 0
36453.3 0.25465 47807.2 0.26618 50909.9 0.22387 80080.4 0.28773
Total assets 2 8 3 8 8 2 7 1

INTERPRETATION:

The capital of the bank shows no change till 2019-10 but it increases by 7.40% in 2020-
11.

There is a huge fluctuation in the increase of reserves and surplus. It increases by 28%
in 2017-08,16%in 2018-09,18% in 2019-10 and 39% in 2020-11.

The investments has increased with a low rate . 2017-08- 25%,2018-09 – 19%, 2019-10
– 16.6%, 2020-11-16.47%

87
There is a fluctuating in increase in advances 27% in 2017-08,34.9% in 2018-09, 21.5%in
2019-10, 30.64% in 2020-11.

There is decline of fixed assets in 2018-09 and 2019-10 with 5% and 1% respectively.
The reason may be the increase in the rate of depreciation in the subsequent years.

There has been an increase in borrowings. 243% in 2017-08, 43.5% in 2018-09, 136% in
2019-10,67% in 2020-11.

PROFIT AND LOSS OF BANK OF BARODA FOR THE YEAR ENDING ON MARCH 2017-11

absolute absolute absolute absolute

change % change % change % change %
2017-18 2018-19 2019-20 2020
particulars
income:
26.61
total income 3,270.1 30.87% 3,984.7 28.74% 1,655.5 9.27% 5,190.4 %
expenditure:
21.61
interest expended 2,475.11 45.61% 2,066.50 26.15% 791 7.93% 2,324.8 %
20.35
operating expenses 598.82 21.61% 474.39 14.08% 866.57 22.54% 958.65 %
other provisions and - 74.12
contingencies -212.90 -15.54% 652.15 56.36% -832.92 46.04% 723.60 %
24.36
total expenses 2,861.0 29.90% 3,193.0 25.69% 824.3 5.28% 4,007.1 %
38.69
net profit of the year 409.06 39.85% 791.68 55.15% 831.13 37.32% 1,183.35 %
extra ordinary items 0 0.00% 0 0.00% 0 0.00% 0 0.00%
profit brought
forward 0 0.00% 0 0.00% 0 0.00% 0 0.00%
38.69
total 409.06 39.85% 791.68 55.15% 831.13 37.32% 1,183.35 %

88
INTERPRETATION:

The net profit of the year shows a fluctuating trend i.e., 39.85% in 2017-18,55.15%
in2018-19,37.32% in 2019-10and 38.69% in 2020.

The interest expended shows a fluctuating trend in 2017-18 to 2020

SUSTAINABLE EARNINGS:

SBI BOB
SUSTAINABLE
EARNINGS 8857 3136

SUSTAINABLE EARNINGS
10000
8857
9000
8000
7000
6000
5000 SUSTAINABLE
4000 3136 EARNINGS
3000
2000
1000
0
SBI BOB

CRAR% ANALYSIS :

89
 SBI BOB
BASEL-II
CRAR% 11.98 14.52

BASEL-II CRAR%
16 14.52
14
11.98
12
10
8
BASEL-II CRAR%
6
4
2
0
SBI BOB

CASH FLOW STATEMENT ANALYSIS OF BANK OFBARODA:

2017 2018 2019 2020

2207.1 3342.9 4238.0
NET PROFIT BEFORE TAX 1654.26 6 4 6
NET CASH FROM OPERATING 2241.8 1125.4 11252.
ACTIVITIES 5153.94 2 7 45
NET CASH USED IN FROM INVESTING -
ACTIVITIES -307.65 235.13 -238.93 -335.01
NET CASH USED IN FROM FINANCING 2012.2
ACTIVITIES -20.56 3 901.29 462.51
NET (DECREASE)/INCREASE IN CASH 4018.9 1787.8 11379.
AND CASH EQUIVALENT 4825.73 2 3 94

90
 18280. 22299. 24087.
OPENING CASH 13454.64 37 29 12
22299. 24087. 35467.
CLOSING CASH 18280.37 29 12 06

CASH FLOW STATEMENT ANALYSIS OF STATE BANK OF INDIA:

2017 2018 2019 2020

PARTICULARS
14180.6
Net Profit Before Tax 7625.08 10438.9 4 13926.1
- 29479.7 -
Net Cash From Operating Activities 1776.07 -856.87 3 1804.99
-284.56 - - -
Net Cash (used in)/from Investing activities 2798.01 1651.93 1761.52
19371.1 -
Net Cash (used in)/from Financing Activities 9494.11 2 5097.38 3359.67
Net (decrease)/increase In Cash and Cash 15716.2 32925.1 -
Equivalents 7433.49 4 8 6926.18
51968.6 71478.6
Opening Cash & Cash Equivalents 44535.2 9 2 103110
51968.6 67466.3 104403. 96183.8
Closing Cash & Cash Equivalents 9 4 8 4

91
 FINDINGS, SUGGESTIONS
AND CONCLUSIONS

92
 State bank of India Bank of Baroda

Particulars

1. Beta valuation 0.8 0.9

2. sustainable earnings ( standard 504 1044

deviation)

Average sustainable earnings 8857 3136

3. Cash flow statement analysis: 14467.01 35094.1

4. Basel-II CRAR% 11.98 14.52

5. Profit & Loss statement analysis (19%) 38.69%

6. Balance sheet statement analysis 16 28%

7. Ratio analysis:

a. P/E ratio 21.92 9.15

b. P/BV 2.7 1.8

c. EV/EBIDTA 17.07 16.64

93
YEAR 2020

SBI BOB
P/E 21.92 9.15
P/BV 2.7 1.8
EV/EBIDTA 17.07 16.64

25
21.92

20
17.0716.64

15
SBI

10 9.15 BOB

5
2.7
1.8

0
P/E P/BV EV/EBIDTA

INTERPRETATION:

P/E RATIO OF State bank of India is 21.92 which is more than the P/E ratio of its
peerset bank of Baroda 9.15 which means that it is overvalued and strongly sound in
nature.

P/BV

94
The ratio of state bank of india is 2.7 and that of its peerset is 1.8 which means the
bank is highly overvalued in nature

EV/EBIDTA

The ratio of state bank of india is 17.07 and that of its peerset is 16.64 which means
that the bank is closely related to its peerset.

Both are fundamentally sound in nature.

SBI BOB
credit deposit
ratio 79.9 73.87
CASH DEPOSIT 8.96 6.11

95
 90
79.9
80 73.87
70

60

50
credit deposit ratio
40
CASH DEPOSIT
30

20
8.96
10 6.11

0
SBI BOB

CREDIT-DEPOSIT RATIO:

This ratio assess the credit performance of the bank.

The graph shows that state bank of india and bank of baroda both are performing well
as both banks has overall good efficiency in nature.

SBI-79.9

BOB – 73.87

State bank of India has overall good efficiency and performance of banking institutions.

CASH DEPOSIT RATIO:

This ratio assesses the cash performance of the bank.

The graph shows that state bank of India and bank of Baroda is performing well in
nature.

96
 SUSTAINABLE
EARNINGS
SBI BOB
STANDARD DEVIATION 504 1044
AVERAGE 8857 3136

10000
8857
9000
8000
7000
6000
5000
4000 STANDARD DEVIATION
3136
3000 AVERAGE
2000 1044
1000 504
0
SBI BOB
SUSTAINABLE
EARNINGS

OUTCOME:

Since the average sustainable earnings is high and standard deviation of state bank of
India is low which means that the bank is fundamentally sound and it is performing
good as compared to bank of Baroda.

97
 INDUSTRY SBI BOB
P/E
RATIO 6.43 21.92 9.15

P/E RATIO
25
21.92

20

15

9.15 P/E RATIO

10
6.43
5

0
INDUSTRY SBI BOB

INTERPRETATION:

Since the industry P/E ratio is 6.43 ,SBI 21.92,BOB 9.15.

It means that State bank of India P/E ratio is more than the industry/peerset company
which means it is overvalued and it is fundamentally sound in nature as compared to its
industry/ peerset bank of Baroda.

98
 SBI BOB
dividend payout
ratio 26.03 17.76

dividend payout ratio

30
26.03
25

20 17.76

15
dividend payout ratio
10

0
SBI BOB

INTERPRETATION:

SBI 26.03

BOB 17.76

99
There is increase in ratio in the year 2020 in both the banks .

SBI BOB

Earnings Per Share 116.07 108.33

1,023.4
Book Value 0 536.16

Dividend Per Share 30 16.5

Price Earning (P/E) 21.92 9.15
Price to Book Value
( P/BV) 2.7 1.8

It is indicated that EPS AND DPS ARE INCREASING OF STATE BANK OF INDIA AS
COMPARED TO BANK OF BARODA .

THE REASON MAY BE THAT THERE IS MORE USE OF DEBTTHAN DUE TO IMPROVED
OPERATIONS.

P/E RATIO AND P/BV RATIO BOTH ARE INCREASING . .

THE OVERALL EFFICIENCY OF THE COMPANY IS GOOD AND IT IS PERFORMANCE IS

BETTER IN THE BANKING INSTITUTION.

100
CONCLUSIONS:

1. State Bank Of India has overall better efficiency and has performed better in the
banking institution as compared to Bank Of Baroda.

2. EPS And DPS Of State Bank Of India is increasing due to increase in the use of
debt rather than the use of improved operations.

3. The P/E Ratio Of State Bank Of India is high as compared to its industry and
Bank Of Baroda which means that SBI is using its funds in a better manner and it
is fundamentally sound in nature.

4. Beta Of State Bank Of India And Bank Of Baroda is less than the market beta
which means that both banks are giving less returns but they are less risky and
investors can invest in these shares.

5. The Average Sustainable Earnings Of State Bank Of India is high and the
standard deviation is low so the bank has its earnings is sustain and more
robust in nature as compared to Bank of Baroda.

BIBLIOGRAPHY
101
[Link]

[Link]
[Link] bank of India/balance-sheet/SBI

[Link]
[Link]

[Link]

[Link]

[Link]

[Link]

102
[Link]

103