A STUDY ON FINANCIAL

PERFORMANCE OF INDIAN BANK

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Guide : Mrs. SUSAN JAYASEELI MANUEL, MBA.,M.HRM.,M.Phil

● Banking sector’s financial performance shows the overall structure of the financial system of any economy and
it has an impact on the performance of the economy.
● Typically the growth of banks mainly depends on like deposits & loans.
● The current investigation manages the examination of "A STUDY ON FINANCIAL PERFORMANCE OF
INDIAN BANKS"
Introduction :
● Banking plays an important role in the growth and development of india as we are a developing nation it
needs a huge demand for financial & monetary needs for infrastructure & basic developments especially
connected with rural and urban areas.
● As a country like India needs a lot of financial institutions like banks and NBFC etc. and they have to be in a
healthy way to deliver good potential for the growth of the nation. So the study demonstrates the vital check
on financial performance of an Indian bank , one of the PSU in india.
● Financial performance of the banking sector is measured by the increase in the number of banks’ branches,
deposits, credit, etc.

.
Industry Profile :

● The Indian banking sector is broadly classified into scheduled and non-scheduled banks. The scheduled banks
are those included under the 2nd Schedule of the Reserve Bank of India Act, 1934.
● The scheduled banks are further classified into: nationalized banks; State Bank of India and its associates;
Regional Rural Banks (RRBs); foreign banks; and other Indian private sector banks. .
Company Profile :
● A premier bank owned by the Government of India, the Indian Bank was incorporated on 05 March 1907 as
Indian Bank Limited and commenced operations on 15 August 1907 as part of the Swadeshi movement.
● The Bank opened its first overseas branch in Colombo Sri Lanka during the year 1932 and also opened its
Singapore branch in 1941.
● Bank went in for Initial Public Offer in February, 2007.
● Merged with Allahabad Bank & Started operations with more branches in 2021.
Objectives :
● To analyze the working Capital, net profitability, Management efficiency, Earnings per share and Liquidity,NPA
of the Indian banks.
● To compare the financial performance of a Indian Banks using financial analysis.
● To evaluate the financial performance of an Indian Banks.
Need :
● To enhance knowledge about the Indian banking system
● To create awareness of issues and threats in the banking industry.
● To know the banking needs and their performance
● To find the Credit worthiness of Indian banks and their banking utilization.
Scope :
● To study the financial performance & periodical analysis of Indian banks.
● To analyze their periodical and their profitability.
● The study helps to evaluate the Indian banking industry, in the crisis of NPA to clear it.
Limitations :
● The study depends upon the secondary data collected i.e. various kinds of reports of the Indian banks.
● The period of study is limited to five years only. All the secondary data complications apply for the study.
● The result of the study is restricted to Indian Banks only.
● This report purely depends on the financial status of the Indian Bank, available at open source.
● As the study is based on secondary data some of the information is biased.
● Since it was government information some of the data was hidden.
Research Methodology & Design :
● Research methodology is the specific procedures or techniques used to identify, select, process, and analyze
information about a topic.
● In a research paper, the methodology section allows the reader to critically evaluate a study's overall validity
and reliability.The Research method was carried out on descriptive Research Methodology.

● Descriptive research refers to the methods that describe the characteristics of the variables under study. This
methodology focuses on answering questions relating to “what” rather than the “why” of the research subject.
● Descriptive research is called an observational research method as none of the variables in the study are
influenced during the process of the research.
Annual Reports :
● Balance Sheet
● Profit & Loss Account
● Cash Flow Statements
Key Ratios :
● Debt Coverage Ratios
● Credit Deposit Ratio
● Investment Deposit Ratio
● Cash Deposit Ratio
● Total Debt to Owners Fund
● Financial Charges Coverage Ratio
● Financial Charges Coverage Ratio Post Tax
● Leverage Ratios
● Current Ratio
● Quick Ratio
Financial Analysis :
● Financial analysis is the process of evaluating businesses, projects, budgets, and other finance-related
transactions to determine their performance and suitability.
● Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to
warrant a monetary investment.
Comparative Balance Sheet :

● A comparative balance sheet is a statement that shows the financial position of an organization over different
periods for which comparison is made or required.
● The financial position is compared with two or more periods to depict the trend, direction of change, analyze
and take suitable actions.
● The balance sheet of 2019 -2020 and 2020-2021 has been compared to find the profit for the particular year .
Balance Sheet Forecasting :

● A balance sheet forecast is a projection of assets, liabilities, and equity at a future point in time.
● It is used to approximate what a business anticipates on owning in the future and also what it expects to owe.
● With the help of a comparative balance sheet the forecast for the balance sheet has been found for the next
financial year by means of forecasting.
Suggestions :

● The Indian banks must take necessary measures to improve their current assets,reduce their advance and current
liabilities.
● The Indian banks must concentrate to improve their fixed assets value .
● The Indian banks must concentrate to improve their net profit value.
● The Indian banks must improve their value of reserse.
● In comparison of Indian banks for the year 2017-21 the performance of the bank in the year 2020-21 is quite
good .
 Conclusion :
❖ Banks play a key role in improving economic efficiency by channeling funds from resource surplus units to
those with better productive investment opportunities.
❖ In the Indian banks, the financial system is also dominated by the banking industry of India .
❖ From the brief explanation and illustrations of five years, financial statements of Indian banks have been used
to analyze the financial performance and their trend for the years under study (2017-2021).
❖ Some of the findings of the study include the following :
➢ From the annual report the trend analysis has been found for the financial year 2017-21.
➢ The comparative balance sheet helps to find out better profit for the bank in which year and why
they gained profit in the particular period.
➢ The forecast of the balance sheet has been generated with the help of a comparative balance sheet.