Central Bank of India

-------------------
Consolidated Balance Sheet in Rs. Cr.
-------------------
Mar-16 Mar-17 Mar-18 Mar-19 Mar-20

EQUITIES AND LIABILITIES

Equity Share Capital 1,689.71 1,902.17 2,618.16 4,047.20 5,709.76
Total Share Capital 1,689.71 1,902.17 2,618.16 4,047.20 5,709.76
Free Reserves 77.99 -2,655.55 -7,836.96 -13,462.01 -14,773.89
Specific reserves 12,912.51 15,076.42 20,299.02 25,523.70 27,638.02
Revaluation reserves 3,292.35 3,205.38 3,130.24 3,074.60 2,962.60
Total Reserves and Surplus 16,282.85 15,626.25 15,592.30 15,136.29 15,826.73
Total ShareHolders Funds 17,972.56 17,528.42 18,210.46 19,183.49 21,536.49
Equity Share Application Money 535 683 0 212.54 0
Minority Interest 35.07 34.62 39.81 43.46 45.32
Deposits 266,686.31 297,309.23 295,354.49 300,311.39 314,201.14
Demand deposits 11,944.46 13,196.78 14,678.18 16,409.31 15,407.50

Saving deposits 82,484.91 103,102.50 110,509.29 122,138.87 130,200.00

Term deposits 172,256.94 181,009.95 170,167.02 161,763.21 168,593.64

Borrowings 9,503.12 9,623.30 6,025.68 5,639.67 6,076.03

Borrowing from banks 267.08 3,203.92 290.72 375.05 260.63

Borrowing from financial institutions 1,554.94 696.17 410.86 295.52 177.30

Borrowings from central & state govt 0.00 0.00 0.00 0.00 0.00
Borrowings syndicated across banks &
0.00 0.00 0.00 0.00 0.00
institutions
Debentures and bonds 4,968.00 4,524.10 4,524.10 4,439.10 4,439.10

Foreign currency borrowings 0.00 0.00 0.00 0.00 0.00

Loans from promoters, directors & shareholders 0.00 0.00 0.00 0.00 0.00

Inter-corporate loans 0.00 0.00 0.00 0.00 0.00

Deferred credit 0.00 0.00 0.00 0.00 0.00

Interest accrued and due 0.00 0.00 0.00 0.00 0.00

Hire purchase loans 0.00 0.00 0.00 0.00 0.00

Fixed deposits 0.00 0.00 0.00 0.00 0.00

Commercial papers 0.00 0.00 0.00 0.00 0.00

Other borrowings 0.00 0.00 0.00 0.00 0.00

Sub-ordinated debt (bank) 1,888.10 1,188.10 800.00 530.00 530.00

Bank's borrowings from rbi 825.00 11.01 0.00 0.00 669.00

Other Liabilities and Provisions 11,889.08 9,516.34 7,718.86 6,494.10 15,478.45

Sundry creditors 0.00 0.00 0.00 0.00 0.00

Acceptances 662.45 750.24 691.86 645.43 620.36

Deposits & advances from customers and
0.00 0.00 0.00 0.00 0.00
employees
Interest accrued but not due 1,527.62 810.34 776.01 837.19 806.34

Share application money - refundable 0.00 0.00 0.00 0.00 0.00

Other current liabilities 9,699.01 7,955.76 6,250.99 5,011.48 14,051.75

Provisions 0.00 0.00 0.00 0.00 0.00

Total Capital and Liabilities 306,621.14 334,694.91 327,349.30 331,884.65 357,337.43

ASSETS
Cash and Balances with Reserve Bank of India 14,070.20 75,087.18 36,000.12 20,779.45 30,021.92

Balances with Banks Money at Call and Short

1,499.45 3,707.79 3,262.29 10,518.14 6,044.56
Notice
Investments 89,086.68 92,276.56 102,769.46 125,452.74 142,525.67
Investment in equity shares 1,595.25 1,860.42 1,719.27 1,309.12 788.46

Investment in preference shares 0.00 0.00 0.00 0.00 0.00

Investment in mutual funds 0.00 0.00 0.00 0.00 0.00

Investment in debt instruments 83,839.09 84,451.73 95,567.41 117,705.22 137,181.84

Investment in approved sec (for slr & oth stat req) 0.00 0.00 0.00 0.00 0.00

Investment in assisted companies 0.00 0.00 0.00 0.00 0.00

Investment in others 3,652.34 5,964.40 5,482.81 6,438.41 4,555.37

Less: provn for diminution in value of invest 0.00 0.00 0.02 0.02 0.00

Loans and advances (nbfcs,banks,fis & hsg fin

180,895.18 140,464.36 157,479.53 147,425.48 151,952.38
cos only)
Fixed Assets 4,369.03 4,299.93 4,352.85 4,319.81 4,345.71
Intangible assets 8.89 8.89 8.89 8.89 8.89

Land 0.00 0.00 0.00 0.00 0.00

Buildings 3,512.56 3,418.76 3,354.28 3,290.24 3,228.51

Plant, machinery, computers & electrical assets 0.00 0.00 0.00 0.00 0.00

Transport & commn equipment & infrastructure 0.00 0.00 0.00 0.00 0.00

Furniture, social amenities & other fixed assets 847.58 872.28 989.68 1,020.68 1,108.31

Other Assets 16,700.60 18,859.10 23,485.04 23,389.03 22,447.21

Total Assets 306,621.15 334,694.92 327,349.30 331,884.64 357,337.45
CONTINGENT LIABILITIES,
COMMITMENTS
Bills for Collection 23,947.97 9,168.94 26,786.99 16,247.39 14,276.74
Contingent Liabilities 64,693.05 83,367.83 107,101.74 86,673.04 56,187.03
 Central Bank of India
-------------------
Consolidated Profit & Loss account in Rs. Cr.
-------------------
Mar-16 Mar-17 Mar-18 Mar-19 Mar-20

INCOME
Interest / Discount on Advances / Bills 19,073.76 16,391.68 14,600.95 13,053.83 12,609.27
Income from Investments 6,477.55 7,376.80 7,142.71 8,460.20 9,924.94
Interest on Balance with RBI and Other Inter-
95.3 638.82 2,058.54 872.81 480.89
Bank funds
Interest from other sources 341.04 367.35 360.92 361.78 660.49
Total Interest Earned 25,987.66 24,774.65 24,163.12 22,748.62 23,675.59
Other Income 1,944.47 2,871.47 2,620.41 2,416.33 3,622.40

Brokerage and financial service fees 911.34 932.36 1,265.73 1,206.95 1,137.85

Income from treasury operations 751.78 1,710.72 717.59 355.63 1,445.32

Other income 281.35 228.39 637.09 853.75 1,039.23

Total Income 27,932.13 27,646.12 26,783.53 25,164.95 27,297.99

EXPENDITURE
Interest Expended 18,889.30 18,166.45 17,603.32 15,934.66 16,004.56

Payments to and Provisions for Employees 4,472.15 4,221.20 3,990.05 3,574.48 4,225.87

Depreciation 239.79 257.69 260.5 277.93 285.48

Operating Expenses (excludes Employee Cost
1,665.75 1,899.38 2,174.92 2,227.74 2,427.65
& Depreciation)
Total Operating Expenses 6,377.69 6,378.27 6,425.47 6,080.16 6,938.99
Provision Towards Income Tax 0 6.86 233.11 -2,528.74 211.86
Provision Towards Deferred Tax 0 -1,088.08 -3,013.40 0 0

Provisions for unspecified contingencies 3,770.81 6,623.90 10,630.29 11,306.59 5,269.88

Total Provisions and Contingencies 3,770.81 5,542.69 7,850.00 8,777.85 5,481.74

Total Expenditure 29,037.80 30,087.41 31,878.79 30,792.67 28,425.30
Net Profit / Loss for The Year -1,105.67 -2,441.29 -5,095.27 -5,627.72 -1,127.31

Prior Period and extraordinary expenses -300.49 -0.59 -0.3 0 0

Net Profit / Loss After EI & Prior Year

-1,406.17 -2,441.88 -5,095.57 -5,627.72 -1,127.31
Items
Minority Interest -4.79 -2.58 -5.99 -5.79 -3.64
Share Of Profit/Loss Of Associates 14.59 -14.9 -38.04 16.59 -124.77
Consolidated Profit/Loss After MI And
-1,396.37 -2,459.36 -5,139.60 -5,616.93 -1,255.72
Associates
Profit / Loss Brought Forward -738.98 -2,236.91 -5,088.52 -10,328.79 -16,010.11
Total Profit / Loss available for
-2,135.35 -4,696.27 -10,228.12 -15,945.71 -17,265.83
Appropriations
APPROPRIATIONS
Transfer To / From Statutory Reserve 1 0 0 0 0

Transfer To / From Special Reserve 4.98 3.83 5.71 5.36 4.09

Transfer To / From Investment Reserve 92.59 383.74 91.87 56.38 157.03

Transfer To / From Revenue And Other
1.2 4.11 2.43 1.59 1.33
Reserves
Tax On Dividend 1.78 0.57 0.66 1.07 0.41

Balance Carried Over To Balance Sheet -2,236.91 -5,088.52 -10,328.79 -16,010.11 -17,428.70
Total Appropriations -2,135.35 -4,696.27 -10,228.12 -15,945.71 -17,265.83

OTHER ADDITIONAL INFORMATION

EARNINGS PER SHARE

Basic EPS (Rs.) -8 13 -20 -20 -2

Diluted EPS (Rs.) -8 13 -20 -20 -2

CASH FLOW OF CENTRAL BANK OF INDIA (in Rs. Cr.) Mar-20
12 mths
NET PROFIT/LOSS BEFORE EXTRAORDINARY ITEMS AND TAX -1,034.43
Net CashFlow From Operating Activities 1,687.89
Net Cash Used In Investing Activities -314.78
Net Cash Used From Financing Activities 3,395.78
Foreign Exchange Gains / Losses 0
NET INC/DEC IN CASH AND CASH EQUIVALENTS 4,768.89
Cash And Cash Equivalents Begin of Year 31,297.59
Cash And Cash Equivalents End Of Year 36,066.48
 Mar-19 Mar-18 Mar-17 Mar-16
12 mths 12 mths 12 mths 12 mths
-8,131.13 -79.14 -3,523.09 -2,651.15
-14,509.98 -443.76 61,870.67 281.29
-250.94 -3.1 -188.62 -148.96
6,796.11 51.54 1,543.27 599.29
0 0 0 0
-7,964.81 -395.33 63,225.32 731.62
39,262.40 787.95 15,569.65 14,838.03
31,297.59 392.62 78,794.97 15,569.65
 Bank Performance

PROFITABILITY ANALYSIS
Mar-16 Mar-17

Rs in Crore Rs in Crore
1 Total Assets 306621.15 334694.92
2 Earning Assets
Balances with RBI 14070.20 75087.18
Balances with Banks in Deposit Accounts - -
Balances with Banks & money at Call & Short Notice 1499.45 3707.79
Balances with Banks Outside India - -
Investments + 89086.68 92276.56
Advances + 180895.18 140464.36
Total Earning Assets 269981.86 232740.92
3 Interest bearing Liabilities
Saving Deposits 82484.91 103102.50
Term & Other Deposits 172256.94 181009.95
Borrowings 9503.12 9623.30
Subordinated Debt 1888.10 1188.10
Total Interest bearing liabilities 266133.07 294923.85

Equity Capital 1689.71 1902.17

Reserves 16282.85 15626.25
Total Equity 17972.56 17528.42
5 Interest Income 19073.76 16391.68
6 Interest Expenditure 18889 18166
10 Non-interest operating income 21,314.65 21,010.16
11 Non-interest operating Expenditure
12 Provisions and Contingencies 3771 5543
Provisions and Contingencies include provision for tax 0 6.86
Profit After tax -2135 -4696

Profitability Ratios

Return on Assets= NI/ TA

0.09 0.08
Equity Multiplier TA/ TE
TE/ TA 5.86% 5.24%

ROE=ROA X EM 0.53% 0.43%

NI/ OR -0.10 -0.22

OR/ TA 0.00% 0.00%

TA/ TE 5.86% 5.24%

(II - IE)/ TA 0.06% -0.53%

(OI-OE)/ TA 0.09% 0.29%

Provisions/TA 0 0
ROA= net income/total assets 9.11% 8.26%

(II- IE)/E A 2.63% 2.84%

EA/ TA 88.05% 69.54%

(II - IE)/ TA 2.32% 1.97%

NIM 0.06 0.05

II/ EA 7.06% 7.04%

IE/ Intt Bearing Liab 0.0710 0.0616

Intt Bearing Liabilities/ EA 0.9857 1.2672
Spread -0.03% 0.88%

Efficiency ratio= Non intt exp/ (Net Interest

Income+Non intt income) 68% 66%

Risk Ratios

Liquidity Risk= Short term securities/ Deposits 0.26 0.08

Interest Rate Risk = Interest Sensitive Assets/ Interest Sensitiv

1.35 4.97
Credit Risk = Provisioning / Assets

0.00 0.00

Capital Risk = Capital / Assets 1% 1%

Leverage ratio= Total equity/Total assets 0.06 0.05

Total capital ratio= (Total equity + Long-term debt +

Reserve for loan losses)/Total assets 0.1427 0.1278
Provision for loan loss ratio= PLL/ TL (provision for loan
losses/total loans and leases)
Loan Ratio = Net loans/ Total assets
Loss Ratio = Net charge-offs on loans (gross charge-offs
minus recoveries)/ Total loans and leases

Reserve Ratio = Reserve for loan losses (reserve for loan

losses last year minus gross charge-offs plus PLL and
recoveries)/Total loans and leases
NA NA

Nonperforming ratio= Nonperforming assets (nonaccrual 7 10

loans and restructured loans)/Total loans and leases
Operating efficiency (cost control)= Wages and
salaries/Total expenses 70% 66%

Volatile liability dependency ratio= (Total volatile liabilities

- Temporary investments)/Net loans and leases

Other Financial Ratios

Tax rate = Total taxes paid/Net income before taxes

Company is in loss hence, there is no tax paid by c
Gap ratio = (Interest rate-sensitive assets – Interest rate-
sensitive liabilities)/ Total assets 0.2877 0.1258
Bank Performance Analysis CENTRAL BANK OF INDIA

Analysis and
Mar-18 Mar-19 Mar-20

Rs in Crore Rs in Crore Rs in Crore

327349.30 331884.64 357337.45

36000.12 20779.45 30021.92

- - -
3262.29 10518.14 6044.56

102769.46 125452.74 142525.67

157479.53 147425.48 151952.38
260248.99 272878.22 294478.05

110509.29 122138.87 130200.00

170167.02 161763.21 168593.64
6025.68 5639.67 6076.03
800.00 530.00 530.00
287501.99 290071.75 305399.67

2618.16 4047.20 5709.76

15592.30 15136.29 15826.73
18210.46 19183.49 21536.49
14600.95 13053.83 12609.27
17603 15935 16005
20,097.56 18,806.86 20,073.52

7850 8778 5482

233.11 -2528.74 211.86
-10228 -15946 -17266

0.08 0.08 0.08

5.56% 5.78% 6.03%

0.46% 0.44% 0.46%

-0.51 -0.85 -0.86

0.00% 0.00% 0.00%

5.56% 5.78% 6.03%

-0.92% -0.87% -0.95%

0.14% 0.06% 0.33%

0 0 0
8.18% 7.58% 7.64%

2.52% 2.50% 2.60%

79.50% 82.22% 82.41%

2.00% 2.05% 2.15%

0.05 0.05 0.05

5.61% 4.78% 4.28%

0.0612 0.0549 0.0524

 1.1047 1.0630 1.0371
-0.51% -0.71% -0.96%

66% 63% 59%

0.15 0.31 0.15

6.85 12.15 3.80

0.00 0.00 0.00

1% 1% 2%

0.06 0.06 0.06

0.1217 0.1204 0.1216

NA NA NA

11 8 7.63
 62% 59% 61%

s hence, there is no tax paid by comp.

0.2568 0.3178 0.3353

NTRAL BANK OF INDIA
SAUMYA DIXIT PGSF1939

Analysis and comments

ROA depicts the percentage of profits earned out of the total assets. In case of CBI it can be seen that the ROA is
CONSTANT over the last 5 year except for FY2016. The Decrease in ROA shows that Kotak bank is inefficient in
generating profits using its assets.
Equity Multiplier is a risk indicator that shows how much proportion of the company's assets are being financed by
stakeholder's equity. The Equity Multiplier trend of CBI shows the from FY16 to FY18 the assets were being financed
with more equity (declining EM) but in FY20 the increase in Equity Multiplier depicts that more of the assets were
financed by debt and not equity.

ROE indicates a company's efficiency in truning the capital into profits. ROE of CBI is on an average 1.12% in the last 5
years. There has been fluctuation in ROE and the percentage decline is MUCH so it can be said that Central bank of
India is generating inconsistent return for its equity shareholders.

NI/OR indicates net income generated out of the operating income. The higher the ratio the better it is as it shows
that company has low non-operating expenses. CBI'S NI/OR ratio has been in negative throughout the five years due
to negative PAT.
OR/TA measures bank's ability to generate operating revenue from its total assets. In case of Central bank of India it
can be infered that the bank is incapable of generating operating revenue.

Interest Income minus Interest Expense is termed as Spread. (II-IE)/TA measures how effectively bank is generating
spread using its total assets. Increasing (II-IE)/TA of CBI shows that they are inefficiencient to generate spread by
utilizing its total assets is increasing. They have negative income from FY17-FY20

Provisions/TA indicates the credit risk of the bank. The lower the ratio the better it is. The credit risk ratio of Central
Bank is zero considering the currenct banking situation, So, it can be assumed that there is low credit risk in central
bank.

Interest Income minus Interest Expense is termed as Spread. (II-IE)/EA measures how effectively bank is generating
spread using its earning assets. Consistent trend in (II-IE)/EA of Central shows that Central's efficiency to generate
spread by utilizing its earning assets is stable and there is less risk of under utilization of Earning assets.
Earning assets to Total asset ratio indicates what percentage of bank's total assets are generating wealth for it. The
higher the ratio the better it is. The Decreasing EA to TA ratio of Central Bank indicates decreasing efficiency of its
assets to generate wealth.

Net Interest Margin measure money genrated via lending activities in comparison to money paid via interest. Higher
the ratio the better it is. Kotak's NIM has declined from FY17-FY20 showing poor efficiency of lending activities .
Interest Earning to Earning Asset ratio measures the interest generated by the utilization of Earning Assets. Higher
ratio means more effective utilization. The II/EA ratio of Central Bank is declining depicting inefficient utlization of
Earning assets to generate Interest Income.

Interest Expenses to Interest Bearing Liabilities shows proportion of Interest expenses in the Interest bearing
liabilities. The higher ratio indicates that the bank have high interest expenses (high deposits). The decling IE/Interest
Liability ratio of Central bank indicates that the deposits of the bank are declining which is not a good sign as it will
impact the lending capacity of the bank.
Interest Bearing Liabilities/Earning Assets indicates bank's ability to pay its interest bearing liabilities using its Earning
assets. Higher the ratio better it is. In case ofCentral Bank it can be observesd that its ability of repay its interest
bearing liabilities using its Earning Assets is consistent except for decline in FY15-16 where a decline of 1% in each
year can be seen (considering current market situatuion this can be ignored).

Efficiency ratio indicated how efficient a bank is in genrating revenue compare to the non interest expenses. central
bank's efficiency in generating revenue as compared to non interest income is not great as it is near to the maximum
efficiency of 50% and the lower efficienc ratio means the bank is generating more income as compared to its non
interest expenses. cENTRAL BANK needs to lower down its non interest expenses or increase its revenues to improve
its efficiency. The decline in efficiecy ratio in FY20 is a good sign.

The liquidity coverage ratio is the requirement whereby banks must hold an amount of high-quality liquid assets

that's enough to fund cash outflows for 30 days. Liquidity

Interest rate risk: Interest rate risk refers to the current or prospective risk to the bank’s capital and earnings arising
from adverse movements in interest rates that affect the bank’s banking book positions. Changes in interest rates also
affect a bank’s earnings by altering interest rate-sensitive income and expenses, affecting its net interest income.
Central Bank of India is trying to maintain it's IRR , which is a good sign.
Credit risks are used by investors to find out company's risk level and whether they should invest in the shares of this
bank or not. An ideal credit risk ratio is less than 35% and here in all the years it is ZERO which is less than that and
hence, one can invest in CBI

This ratio measures bank's financial stability by measuring it's capital and risk. The minimum capital to asset ratio is
8% under BASEL Norm and anything above it indicates that the capital is more than the minimum requirement for
daily transactions to take place, in CBI it is less which indicates that the bank does not have minimum money required
to carry out it's operations.
This ratio indicates the debt a bank/company is having with them and an ideal leverage ratio is anything between 0.5
or less than that, here the ratio is less than 0.5 in all five years.

The capital ratio is the percentage of a bank's capital to its risk-weighted assets. Weights are defined by risk-
sensitivity ratios whose calculation is dictated under the relevant Accord. Basel II requires that the total capital
ratio must be no lower than 8% Cenral bank of India is maintaing its ratios near 10% from last 5 years, which means
bank has less risk weighted assets.

NPA ratio of the bank has improved over the years which implies that the bank was able to reduce their Bad Loans
over the years.
This ratio gives an indication of the extent to which “hot” money is being used to fund the riskiest assets of the
bank.Volatile Liabilities have increased during the period of 5 years,which implies that the Bank's vulnerability is also
increasing to risk of bad loans as well as hot money is also increasing with the bank. The bank should work towards
making the ratio lower which will imply better management of funds.