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
By,
Shashank Malik
PGFB1944,
Study Group 4
BOCA GR-2
 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

 Central Bank of India : Bank Performance Analysis

PROFITABILITY ANALYSIS
Mar-16 Mar-17 Mar-18 Mar-19

Rs in Crore Rs in Crore Rs in Crore Rs in Crore

1 Total Assets ₹ 306,621.15 ₹ 334,694.92 ₹ 327,349.30 ₹ 331,884.64

2 Earning Assets
Balances with RBI ₹ 14,070.20 ₹ 75,087.18 ₹ 36,000.12 ₹ 20,779.45
Balances with Banks in Deposit Accounts
Balances with Banks & money at Call & Short Notice ₹ 1,499.45 ₹ 3,707.79 ₹ 3,262.29 ₹ 10,518.14
Balances with Banks Outside India
Investments + ₹ 89,086.68 ₹ 92,276.56 ₹ 102,769.46 ₹ 125,452.74
Advances + ₹ 180,895.18 ₹ 140,464.36 ₹ 157,479.53 ₹ 147,425.48
Total Earning Assets ₹ 285,551.51 ₹ 311,535.89 ₹ 299,511.40 ₹ 304,175.81

3 Interest bearing Liabilities

Saving Deposits ₹ 82,484.91 ₹ 103,102.50 ₹ 110,509.29 ₹ 122,138.87
Term & Other Deposits ₹ 184,201.40 ₹ 194,206.73 ₹ 184,845.20 ₹ 178,172.52
Borrowings ₹ 7,615.02 ₹ 8,435.20 ₹ 5,225.68 ₹ 5,109.67
Subordinated Debt ₹ 1,888.10 ₹ 1,188.10 ₹ 800.00 ₹ 530.00
Total Interest bearing liabilities ₹ 276,189.43 ₹ 306,932.53 ₹ 301,380.17 ₹ 305,951.06

4 Shareholder's Fund
Equity Capital ₹ 1,689.71 ₹ 1,902.17 ₹ 2,618.16 ₹ 4,047.20
Reserves ₹ 16,282.85 ₹ 15,626.25 ₹ 15,592.30 ₹ 15,136.29
Total Equity ₹ 17,972.56 ₹ 17,528.42 ₹ 18,210.46 ₹ 19,183.49

5 Interest Income ₹ 25,987.66 ₹ 24,774.65 ₹ 24,163.12 ₹ 22,748.62

6 Interest Expenditure ₹ 18,889.30 ₹ 18,166.45 ₹ 17,603.32 ₹ 15,934.66
7 Non-interest operating income ₹ 1,944.47 ₹ 2,871.47 ₹ 2,620.41 ₹ 2,416.33
8 Non-interest operating Expenditure ₹ 6,377.69 ₹ 6,378.27 ₹ 6,425.47 ₹ 6,080.16
9 Provisions and Contingencies ₹ 3,770.81 ₹ 5,542.69 ₹ 7,850.00 ₹ 8,777.85
Provisions and Contingencies include provision for tax
Profit After tax ₹ -1,406.17 ₹ -2,441.88 ₹ -5,095.57 ₹ -5,627.72
NPA ₹ 13,242.00 ₹ 14,217.00 ₹ - ₹ 11,333.00

Profitability Ratios Mar-16 Mar-17 Mar-18 Mar-19

Return on Assets = NI/ TA -0.46% -0.73% -1.56% -1.70%

Equity Multiplier = TA/ TE 17.06 19.09 17.98 17.30

Proprietary ratio = TE/ TA 5.86% 5.24% 5.56% 5.78%

 ROE = ROA X EM -7.82% -13.93% -27.98% -29.34%

Net Profit Margin = NI/ OR -5.03% -8.83% -19.03% -22.36%

Asset Utilization = OR/ TA 9.11% 8.26% 8.18% 7.58%

Net Interest Margin = (II - IE)/ TA 2.32% 1.97% 2.00% 2.05%

Net Non Interest Margin = (OI-OE)/ TA -1.45% -1.05% -1.16% -1.10%

Provisions/ TA 0.012 0.017 0.024 0.026

Net Interest Margin = (II- IE)/ EA 2.49% 2.12% 2.19% 2.24%

Earnings base = EA/ TA 93.13% 93.08% 91.50% 91.65%

Net Interest Margin = (II - IE)/ TA 2.32% 1.97% 2.00% 2.05%

NIM = Average yield on earning assets - Average cost of funds *

2.49% 2.12% 2.19% 2.24%
Intt Bearing Liabilities/ EA

Average yield on earning assets = II/ EA 9.10% 7.95% 8.07% 7.48%

Average cost of funds = IE/ Intt Bearing Liab 6.84% 5.92% 5.84% 5.21%

Intt Bearing Liabilities/ EA 0.97 0.99 1.01 1.01

Spread = Average yield on earning assets - Average cost of funds 2.26% 2.03% 2.23% 2.27%

Efficiency ratio= Non int. exp/ (Net Interest Income+Non intt

23% 23% 24% 24%
income)
Risk Ratios Mar-16 Mar-17 Mar-18 Mar-19

Liquidity Risk= Short term securities/ Deposits 0.33 0.31 0.35 0.42

Interest Rate Risk = Interest Sensitive Assets/ Interest Sensitive

0.65 0.46 0.52 0.48
Liabilities

Credit Risk = Provisioning / Assets 1.23% 1.66% 2.40% 2.64%

Capital Risk = Capital / Assets 0.55% 0.57% 0.80% 1.22%

Leverage ratio= Total Assets/Total Equity 17.06 19.09 17.98 17.30

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

9.57% 9.41% 9.56% 9.96%
loan losses)/Total assets

Provision for loan loss ratio= PLL/ TL (provision for loan

2.08% 3.95% 4.98% 5.95%
losses/total loans and leases)

Loan Ratio = Net loans/ Total assets 57.77% 40.31% 45.71% 41.78%

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 0.40 0.58 1.30 1.56
and leases

Nonperforming ratio= Nonperforming assets (nonaccrual loans

139% 148% 0% 201%
and restructured loans)/Total loans and leases

Operating efficiency (cost control)= Wages and salaries/Total

0.23 0.23 0.24 0.25
expenses

Volatile liability dependency ratio= (Total volatile liabilities -

0.53 1.19 0.91 1.08
Temporary investments)/Net loans and leases

Other Financial Ratios Mar-16 Mar-17 Mar-18 Mar-19

Tax rate = Total taxes paid/Net income before taxes

Gap ratio = (Interest rate-sensitive assets – Interest rate-sensitive
liabilities)/ Total assets
-0.31 -0.50 -0.44 -0.48
ysis

Mar-20

Rs in Crore

₹ 357,337.45

₹ 30,021.92

₹ 6,044.56

₹ 142,525.67
₹ 151,952.38
₹ 330,544.53

₹ 130,200.00
₹ 184,001.14
₹ 5,546.03
₹ 530.00
₹ 320,277.17

₹ 5,709.76
₹ 15,826.73
₹ 21,536.49

₹ 23,675.59
₹ 16,004.56
₹ 3,622.40
₹ 6,938.99
₹ 5,481.74

₹ -1,127.31
₹ 11,534.00

Mar-20 Analysis and comments

Return on assets measures the banks profit for each unit of invested funds. It indicates the management of efficiency in using
its assets to generate earnings. As per the observation of past 5 years' data, it can be noticed that the ROA has reduced over
-0.32% the years, which means that the Bank is earning losses and is unable to generate profit from the capital it has been granted,
both debt and equity.

Equity Multiplier (EM) of the bank compares the funds in relation to the bank's capital, where the high value of this equity
multiplier shows the highest amount of financing through debt in relation to the shareholders’ equity. The high EM ratio may
16.59 lead to the increase of ROE but also the risk a bank bankrupt The EM of the Bank has decreased over the time which means
that there has been a decrease in the debt financing in the company.

The proprietary ratio (also known as net worth ratio or equity ratio) is used to evaluate the soundness of the capital structure
of a company. It is computed by dividing the stockholders’ equity by total assets. The Proprietary ratio has been 5-6% which
6.03% means that stockholders’ have contributed 5-6% for the total assets while the creditors have contributed nearly 94% for the
total assets.
 The Return on Equity measures the income the bank earns for each Rupee of capital invested in the bank.. The ROE of the
-5.23% bank has been negative for the past few years due to recurring losses.

Net Profit Margin shows the amount of after tax profit that the bank is able to generate for every Rupee of earned income.
-4.13% The profit margin is obtained by dividing net income by total income. For the last 5 years we can see a downward falling
trend, which is due to recurring losses in the Bank.

Assets Utilization ratio indicates the extent of efficiency in using assets to generate earnings. Assets Utilization ratio is
obtained by dividing total income with total assets. The greater the use of assets is the greater is the bank's ability to generate
7.64% earnings from their assets. For the last 5 years we can see that the Bank is inefficient in proper utilization of their assets for
generation of revenue.

Net interest margin (NIM) reveals the amount of money that a bank is earning in interest on loans compared to the amount it
is paying in interest on deposits. The average NIM for U.S. banks was 3.3% in 2018. As per the past years data, it can be
2.15% observed the NIM of the bank has improved which either means that the bank is charging more on interest on loans and/or
paying less on deposits.

Net Non interest margin is a financial measurement that helps asses the usefulness of revenue from non-interest items such as
-0.93% fees and service charges. For the past few years the Net Non Interest Margin is negative because the Non interest expenses
are more than non interest income.

0.015

Net interest margin (NIM) reveals the amount of money that a bank is earning in interest on loans compared to the amount it
is paying in interest on deposits. The average NIM for U.S. banks was 3.3% in 2018. As per the past years data, it can be
2.32% observed the NIM of the bank has improved which either means that the bank is charging more on interest on loans and/or
paying less on deposits.

Earning base is a ratio which is used to know what percentage of a company’s assets are actually generating income. The
92.50% Bank's Earning base is quite high which means a very efficient use of assets.

Net interest margin (NIM) reveals the amount of money that a bank is earning in interest on loans compared to the amount it
is paying in interest on deposits. The average NIM for U.S. banks was 3.3% in 2018. As per the past years data, it can be
2.15% observed the NIM of the bank has improved which either means that the bank is charging more on interest on loans and/or
paying less on deposits.

Net interest margin (NIM) reveals the amount of money that a bank is earning in interest on loans compared to the amount it
is paying in interest on deposits. The average NIM for U.S. banks was 3.3% in 2018. As per the past years data, it can be
2.32% observed the NIM of the bank has improved which either means that the bank is charging more on interest on loans and/or
paying less on deposits.

Yield on earning assets indicates how well assets are performing by looking at how much income they bring in. Since the
7.16% Yield on earnings ratio of the Bank has been decreasing over a period of time, it indicates that a Bank is using its assets
inefficiently and is unable to meet its short-term debt obligations and might be at risk of default.

The cost of funds is the interest rate paid by Banks for the funds that they use in their business. The cost of funds is one of the
most important input costs for a Bank since a lower cost will end up generating better returns when the funds are used for
5.00% short-term and long-term loans to borrowers. As we can see that the cost of funds have reduced over time it means that the
Bank can have better returns from borrowers.

0.97

Spread is the difference between the borrowing and lending interest rates of the bank. As per the past years' data we can
2.17% observe that the Interest rate spread are fluctuating, which means that there were a minor changes in the interest charged and
paid.

Banks strive for lower e fficiency ratios since a lower efficiency ratio indicates that the bank is earning more than it is
25% spending. A general rule of thumb is that 50% is the maximum optimal efficiency ratio. As per the past 5 years' data it can be
onserved that the bank's non interest expenses have been increasing but still are less the optimal edge (50%).
Mar-20 Analysis and comments
A good liquidity ratio is anything greater than 1. It indicates that the company is in good financial health and is less likely to
face financial hardships. The higher ratio, the higher is the safety margin that the business possesses to meet its current
0.45 liabilities. as per the past years data we can see that the liquidity risk of the Bank is less than 1 it means that the bank has less
liquidity than required to carry out its operations.

Interest rate risk is the probability of a decline in the value of an asset resulting from unexpected fluctuations in interest rates.
Interest rate risk is mostly associated with fixed-income assets (e.g., bonds) rather than with equity investments. As per the
0.47 last years' data we can see that the interest rate risk has reduced which might be due to decrease in interest sensitive assets
and/or increase in interest sensetive liabilities.

Credit risks are used by investors to find out Bank's risk level and whether they should invest in the shares of that bank or
1.53% not. An ideal credit risk ratio is less than 35% and as per the data of the past 5 year, it can be seen that the Credit risk ratio is
between 1-3%, therefore, one can invest in Central bank of India.

This ratio measures bank's financial stability by measuring it's capital and risk. The minimum Capital Risk ratio is 8% under
BASEL Norms and anything above or below it indicates excess or insufficient capital for daily transactions to take place. As
1.60% per the past years data, it can be observed that the Capital risk ratio is nearly 1% which means that the bank has insufficient
capital to carry out its operations.

This ratio indicates the debt a bank is having with them and an ideal leverage ratio is anything between 0.5 or less than that,
16.59 and as per the pastv years data it can be seen that the Bank has exceded the ideal ratio range which means that the bank has
too much of debt it its basket.

The capital ratio is the percentage of a bank's capital to its risk-weighted assets. Weights are defined by risk-sensitivity ratios
9.11% whose calculation is dictated under the relevant Accord. Basel II requires that the total capital ratio must be no lower than
8%. As per the past years' data we can see that the bank has Total capital ratio of more than 9%.

The provision for loss ratio is the percentage of the total loan and leases that is set aside from the profits for the provision of
3.61% loan losses which the Bank might have to face in the future

40.99% Loan ratio is the percentage of total loan for the total assets that the Banks hold.

This ratio gives the indication about the money which is kept aside to recover bad loans in the future. Central Bank of India's
0.90 Reserve ratio has increased in the past years, but decreased in the last year, which was due to Bank's positivity regarding the
decreased Bad Loans.

NPAs indicate how much of a bank's loans are in danger of not being repaid. If interest is not received for 3 months, a loan
turns into NPA. What it means: A very high gross NPA ratio means the bank's asset quality is in very poor shape. As per the
190% past years' data we can notice that the Non-performing ratio of the bank is very high which means that the bank is unable to
get its funds back.

The Operating Efficiency ratio has been stable for the past few years, which means that the Central bank of India has been
0.26 operating efficiently

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
1.11 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.

Mar-20 Analysis and comments

 The value of rate sensitive assets divided by rate sensitive liabilities. A positive (negative) gap ratio has the effect of making a
bank gain (lose) if interest rates fall (rise). Since the Gap ratio is negative for the past 5 years it meansthat the bank is making
losses as the interest rates were rising.
-0.47