A Study On Camel Approach With Reference To Repco Bank by Sridar. B Register No. 412518631095

A STUDY ON CAMEL APPROACH WITH REFERENCE TO
REPCO BANK
By
SRIDAR. B
Register No. 412518631095
Of
SRI SAI RAM ENGINEERING COLLEGE
A PROJECT REPORT
Submitted to the
FACULTY OF MANAGEMENT SCIENCES
In partial fulfilment of the requirements
For the award of the degree
Of
MASTER OF BUSINESS ADMINISTRATION
ANNA UNIVERSITY
CHENNAI – 600 025
JUNE 2020
REPCO BANK
CERTIFICATE
This is to certify that Mr. B. SRIDHAR, bonafide student of M/s Sai Ram
Engineering College, West Tambaram, Chennai 600 044 doing his Second year MBA
Degree has underwent Internship Training at The Repco Bank Ltd, Vyasarpadi,
Chennai - 600 039 for the period of 3 months from January 2020 to March 2020.
During the above period his conduct in the bank was good.
EPCO
Joint General Manager

CHE
UWAL
DECLARATION
I, SRIDAR.B, hereby declare that the project report, entitled “A STUDY ON CAMEL
APPROACH WITH REFERENCE TO REPCO BANK” submitted to the Anna

University Chennai in partial fulfilment of the requirement for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION is record of original and independent research
work done by me during July 2020 under the supervision of Mr. K. MURUGAN Assistant
Professor, Department of Management studies, and it has not formed the basis or other similar
title to any candidate of any university.
Place: Chennai
Date: (B. SRIDAR)

ABSTRACT
Banking industry is one of the crucial and important industries of Indian economy. There are many
banking companies working in India. Banking Industry is growing at a faster pace and thus the
competition too. Due to passage of time there has been a constant change in the performance of
banks, which leads to change in ranking and position of the banks every year. It may be very
difficult to compare the performance and ranks and this study will helps to find out which bank is
better among leading banks and where the investors and customers should invest money into. There
are many aspects to measure the performance of banks like WACC, Regression Analysis and
CAMEL Model is one important of them and thus it is being used in study to measure and compare
the financial performance of the bank. Camel analysis is used to evaluate a bank’s overall
performance and to monitor its compliance with laws and regulatory policies using CAMEL
approach. This study deals with the analysis of five components capital adequacy, asset quality,
management efficiency, earnings & profitability and liquidity position of REPCO bank for the
period of five financial years from 2014-15 to 2018-19. Apart from using Pearson’s correlation
coefficient, ratio analysis, horizontal analysis and vertical analysis are employed in the study. All
the five components of the banks reflect the ability to support present and future operations of the
bank.
i
ACKNOWLEDGEMENT
I am thankful to the management of Sri Sairam Institute of Management studies which has
imparted me sufficient knowledge and confidence to complete this project in the field training.
I wish to express my deep sense of gratitude and indebtedness to our Chairman

MJF. Ln. Leo Muthu and CEO - Mr. Sai Prakash Leo Muthu, Chairman Sri Sairam Groups
of Institutions, Chennai
I’m highly obliged to The Director of Sri Sairam Institute of Management Studies
Dr. K. Maran for providing me the opportunity to embark on this project report
I wish to express my sincere gratitude to my Internal Guide Mr. K. MURUGAN for his
commendable inspiring guidance, valuable advice, encouragement and motivation given to
succeed.
I’m very grateful to all the faculty members of the department of management studies for their
encouragement and kind-hearted advice.
I would like to thank the employees of Repco Bank for helping me directly in the completion
of my project.
Finally, I thank my family members and friends who helped me in all possible ways to make
this project a success.
B.SRIDAR
ii
TABLE OF CONTENTS
ABSTRACT i
ACKNOWLEDGEMENT ii
TABLE OF CONTENTS iii
LIST OF TABLES iv
LIST OF FIGURES vi
CHAPTER NO TITLE PAGE NO
INTRODUCTION
1.1 Introduction of the Study 1
1.2 Industry Profile 5
1.3 Company Profile 10
1.4 Review of Literature 11
I 1.5 Need for the Study 16

1.6 Objectives of the Study 17
1.7 Scope of the study 18
1.8 Research Methodology 19
1.9 Limitations of the Study 20
II DATA ANALYSIS AND INTERPRETATIONS 21
SUMMARY OF FINDINGS, SUGGESTION AND
CONCLUSION
III 3.1 Findings 52
3.2 Suggestions 55
3.3 Conclusion 56
BIBLIOGRAPHY
APPENDIX
iii
LIST OF TABLES
TABLE NO CONTENTS PAGE NO
2.1.1 CAPITAL ADEQUACY RATIO 21
2.1.2 DEBT EQUITY RATIO 23
2.1.3 ADVANCE TO ASSET RATIO 24
2.1.4 GROSS NPA RATIO 25
2.1.5 NET NPA RATIO 26
2.1.6 ADVANCE TO DEPOSIT RATIO 27
2.1.7 BUSINESS PER EMPLOYEE RATIO 28
2.1.8 PROFIT PER BRANCH RATIO 29
2.1.9 DIVIDEND PAYOUT RATIO 30
2.1.10 RETURN ON ASSET RATIO 31
2.1.11 WORKING FUND RATIO 32
2.1.12 NET PROFIT ASSET RATIO 33
2.1.13 INTEREST INCOME TO TOTAL INCOME RATIO 34
2.1.14 LIQUID ASSET TO TOTAL ASSET RATIO 35
2.1.15 LIQUID ASSET TO DEMAND DEPOSIT RATIO 37
2.1.16 LIQUID ASSET TO TOTAL DEPOSIT RATIO 38
2.2.1 CORRELATION OUTPUT 40
2.3.1 COMPARATIVE BALANCE SHEET OF REPCO BANK 42

FOR THE YEAR 2014-2015 (HORIZONTAL ANALYSIS)
iv
FOR THE YEAR 2014-2015 (VERTICAL ANALYSIS)
FOR THE YEAR 2018-2019 (VERTICAL ALALYSIS)
v
LIST OF FIGURES
FIGURE CONTENTS PAGE

NO
NO
2.1.1 CAPITAL ADEQUACY RATIO 21
2.1.2 DEBT EQUITY RATIO 23
2.1.3 ADVANCE TO ASSETS 24
2.1.4 GROSS NPA RATIO 25
2.1.5 NET NPA RATIO 26
2.1.6 ADVANCES TO DEPOSIT RATIO 27
2.1.7 BUSINESS PER EMPLOYEE RATIO 28
2.1.8 PROFIT PER BRANCH RATIO 29
2.1.9 DIVIDEND PAYOUT RATIO 30
2.1.10 RETURNS ON ASSET RATIO 31
2.1.11 WORKING FUND RATIO 32
2.1.12 NET PROFIT ASSET RATIO 33
2.1.13 INTEREST INCOMES TO TOTAL INCOME 34
2.1.14 LIQUID ASSET TO TOTAL ASSET RATIO 35
2.1.15 LIQUID ASSET TO DEMAND DEPOSIT RATIO 37
2.1.16 LIQUID ASSET TO TOTAL DEPOSIT RATIO 38
vi
1
CHAPTER I
1.1 INTRODUCTION
The economic development of a country depends more on real factors such as the industrial
growth & development, modernization of agriculture, expansion of internal trade and foreign
trade. The role and importance of banking sector and the monetary mechanism cannot be
under-estimated in the development of a nation. Hence the banks and financial institutions
play significant and crucial role by contributing in economic planning such as lying down of
specific goals and allocating particular amount of money that constitute the economic policy
of the government. A sound financial system is indispensable for the growth of a healthy and
vibrant economy. A sound banking industry comprises a paramount component of the
financial services sector. The banking sector plays a magnificent role in an economy for the
smooth as well as efficient functioning of the different activities of the society. Finance is
like blood to every form of activities. Finance is at the core of socio-economic growth
trajectory of a society. Generally, banks collect money from those who have spare money or
who are saving it out of their income and lend this money out to those who require it. This
mechanism of providing finance is highly valuable and a bare necessary in any community.
But the role of banks is not only confined to savings and its transmission to those who are in
a position to invest it in a profitable enterprise; but also an instrument of credit creation. The
role of bank has been transformed as prime mover of economic change, particularly in
developing countries. It is necessarily more complex in view of dynamic contribution
expected from time to time in the challenging task of optimum economic growth.
The Indian banking sector has been working in a more open and globalized environment for
two decades since liberalization. The liberalization process of Indian Economy has made the
entry of new private sector banks possible and allowed the foreign sector banks to increase
their branches in the banking sector. Besides, following India’s commitment to the WTO,
foreign banks have been permitted to open more branches with effect from 1998-99. With
the increased competition and the emphatic on profitability, the public sector banks are now
moving towards on economic-oriented model departing from the social approach followed
for decades. Thus, the restructuring of public sector banks and the emergence of new banks
in the private sector as well as the increased competition from foreign banks, have improved
the professionalism in the banking sector.
2
The increased presence of the private and foreign banks during the past decade has made the
market structure of the banking sector in terms of competitive pricing of services, narrow
spreads, and improving the quality of the services.
The public sector banks, which had dominated the banking sector for decades, are now
feeling the heat of the competition from private and foreign sector banks, this leads to
maintain the performance to face the competition.
Several public sector banks and financial institutions became weak financially and some
public sector banks incurred losses year after year. Low profitability of public sector banks
in India was caused due to two factors-
(1) Declining interest income
(2) Increasing cost of operation for banks.
CAMEL is the supervisory framework consisting of risk-monitoring factors used for

evaluating the performance of banks. Under this bank is required to enhance capital
adequacy, strengthen asset quality, improves management, increases earnings and to reduce
various financial risks. In order to cope with the complexity and a mix of risk exposure to
banking system properly, responsibly, beneficially and sustainably, it is of great importance
to evaluate the overall performance of banks by implementing a regulatory banking
supervision framework. The CAMEL rating is a supervisory rating system originally
developed in the United States, (approximately to 8,000 institutions) and also implemented
outside the U.S. by various banking supervisory regulators. The ratings are assigned based
on a ratio analysis of the financial statements made by the designated supervisory regulator.
The supervisory regulators in the United States are Federal Reserve, the office of the
comptroller of the currency, the National Credit Union Administration, the farm credit
administration, and the Federal Deposit Insurance Corporation. CAMEL rating has become a
concise and indispensable tool for examiners and regulators”. This rating ensures a bank’s
healthy conditions by reviewing different aspects of a bank based on variety of information
sources such as financial statement, funding sources, macroeconomic data, budget and cash
flow.The bank’s CAMEL rating is highly confidential and only exposed to the bank’s senior
management for the purpose of projecting the business strategies, and to appropriate
supervisory staff. The whole banking scenario has changed in the very recent past on the
recommendations of Narasimham Committee, 1998.
3
The important recommendation made by the committee is “Minimum capital to risk assets
ratio (CRAR) be increased from the existing 8 percent to 10 percent; an intermediate
minimum target of 9 percent can be achieved by 2000 and the ratio of 10 percent by 2002;
RBI to be empowered to raise this further for individual banks if the risk profile warrants
such an increase. Individual bank’s shortfalls in the CRAR are treated on the same line as
adopted for reserved requirements, vise uniformity across weak and strong banks. There
should be penal provisions for banks that do not maintain CRAR”.
BASEL II ACCORD
It is the bank capital framework sponsored by the world’s central banks

designed to promoted uniformity, make regulatory capital more risk sensitive,
and promote enhanced risk management among large, internationally active
banking organizations. Basel II accord is recommendation on banking laws and
regulations issued by the Board Committee on Banking Supervision. The
purpose of Basel II, which was initially published in June 2004, is to create an
international standard that banking regulators can use when creating regulations
about how much capital banks need to put aside to guard against the types of
financial and operational risks banks face.
It believes that such an international standard can help to protect the
international financial system from the types of problems that might arise
should a major bank or a series of banks collapse. In practice, Basel II attempts
to accomplish this by setting up rigorous risk and capital management
requirements designed to ensure that a bank holds capital reserves appropriate to
the risk the bank exposes itself to through its lending and investment practices.
Generally speaking, these rules mean that the greater risk to which the bank is
exposed, the greater the amount of capital the bank needs to hold to safeguard
its solvency and overall economic stability.
4
THREE PILLARS OF BASEL II:
Pillar I- Minimum capital requirements
The first pillar deals with maintenance of regulatory capital calculated for three major
components of risk that a bank faces: credit risk, operational risk, and market risk.
Pillar II- Supervisory review
It allows supervisors to evaluate a bank’s assessment of its own risks and determine whether
that assessment seems reasonable. Supervisions should provide an extra set of eyes to verify
that the bank understands its risk profile and is sufficiently capitalized against its risks.
Pillar III- Market disclosure
It is designed to allow the market to have a better picture of the overall risk position of the
bank and to allow the counterparties of the bank to price and deal appropriately. This is
aimed at improving the transparency in banks and improves reporting.
THE AIM OF IMPLEMENTING BASEL II IS:
 Ensuring that capital allocation is more risk sensitive.

 Enhance disclosure requirements which would allow market participants to assess the
capital adequacy of an institutions;
 Ensuring that credit risk, operational risk and market risk are quantified based on data
and formal techniques;
 Attempting to align economic and regulatory capital more closely to reduce the scope
for regulatory arbitrage.
5
1.2 INDUSTRY PROFILE
The Indian Banking Industry has its foundations in the 18th century, and has had a varied
evolutionary experience since then. The initial banks in India were primarily traders banks
engaged only in financing activities. Banking industry in the pre-independence era
developed with the presidency banks, which were transformed into the imperial bank of India
and subsequently into the state bank of India. The initial days of the industry saw a majority
private ownership and a highly volatile work environment. Major strides towards public
ownership and accountability were made with nationalization in 1969 and 1980 which
transformed the face of banking in India. The industry in recent times has recognized the
importance of private and foreign players in a competitive scenario and has move towards
greater liberalization.
According to reserve bank of India, India’s banking sector is sufficiently capitalized and
well-regulated. The financial and economic conditions in the country are far superior to any
other country in the world. Credit, market and liquidity risk studies suggest that Indian banks
are generally resilient and have withstood the global downturn well. The Indian banking
industry is expected to witness better growth prospects in 2015 as a sense of optimism stems
from the Government’s measures towards revitalizing the industrial growth in the country. In
addition, RBI’S new measures may go a long way in helping the restructuring of the domestic
banking industry.
The Indian banking system consists of 26 public sector banks, 25 private sector banks, 43
foreign banks, 56 regional rural banks, 1,589 urban cooperative banks and 93,550 rural
cooperative banks, in addition to cooperative credit institutions. Public-sector banks control
nearly 80 percent of the market, thereby leaving comparatively much smaller share for its
private peers. As of November 11, 2015, 192.1million accounts had been opened under
Pradhan Mantra Jan Dhan Yojna (PMJDY) and 165.1million RuPay debit cards were issued.
These new accounts have mustered deposits worth Rs.26,819 crores.
6
The Indian economy is on the brink of a major transformation, with several policy initiatives
set to be implemented shortly. Positive business sentiments, improved consumer confidence
and more controlled inflation are likely to prop-up the country’s the economic growth.
Enhanced spending on infrastructure, speedy implementation of projects and continuation of
reforms are expected to provide further impetus to growth.
All these factors suggest that India’s banking sector is also poised for robust growth as the
rapidly growing business would turn to banks for their credit needs. Also, the advancements
in technology have brought the mobile and internet banking services to the fore. The banking
sector is laying greater emphasis on providing improved services to their clients and also
upgrading their technology infrastructure, in order to enhance the customer’s overall
experience as well as give banks a competitive edge.
“ROAD AHEAD” FOR BANKING INDUSTRY
An IBA-FICCI-BCG report suggests that India’s gross domestic product (GDP) growth will
make the Indian banking industry the third largest in the world by 2025. According to the
report, the domestic banking industry is set for an exponential growth in coming years with
its assets size poised to touch USD 28,500 billion by the turn of the 2025. With the deposits
growing at a CAGR OF 21.2 percent (in terms of INR) in the period FY 06-13, there has been
evident growth in the overall industry. This growth can be attributed to banks shifting focus
to client servicing. Public as well as private sector banks are underlining the importance of
technology infrastructure, in order to improve customer experience and gain a competitive
edge. Utilizing the popularity of internet and mobile banking, banks are increasingly
adopting an integrated approach for asset-liability match, credit and derivatives risk
management.
7
FACTORS PROMOTING GROWTH OF BANKING AND FINANCIAL

SERVICES
The Banking Laws (Amendment) Bill that was passed by the parliament in 2012 allowed the
Reserve Bank of India (RBI) to make final guidelines on issuing new bank licenses.
Moreover, the role of the Indian Government in expanding the banking sector is noteworthy.
It is expected that the new guidelines issued by RBI will curb practices of impish borrowers
and streamline the loan system in the country, a shift in the style of operation, which could
also evolve by incorporating modern technology in the industry.
Another emerging trend witnessed by the banking sector is the use of social media platform
like Facebook to attract customers. In September 2013 ICICI bank launched a Facebook bill
payment and fund transfer service called ‘pockets’ for customer convenience.
According to a report by zinnov, a globalization and market expansion firm, IT adoption in
BSFI sector in India’s the information technology industry spend in BFSI vertical is expected
to reach USD 3.5 billion by financial year 2014. The study also highlighted ‘the growing
maturity of Indian BFSI organization in IT adoption, as technology is seen as a driver of
business value. Technology firms have great potential to explore in the BFSI sector. These
contribute to eight percent of India’s gross domestic product
GOVERNMENT MEASURES TO STRENGTHEN THE INDIAN

BANKING SECTOR:
 The government of India is looking to set up a special fund, as a part of national

investment and infrasture fund (NIIF), to deal with stressed assets of banks. The
special fund will potentially take over assets which are visible. But don’t have
additional fresh equity from promoters coming into complete the project.
 The Reserve Bank of India (RBI), the department of industrial policy & promotion
(DIPP) and the Finance Ministry are planning to raise the Foreign Direct investment
(FDI) limit in the private bank sector to 100 per cent from 74 per cent.
8
 Government of India aims to extend insurance, pension and credit facilities to those
excluded from these benefits under the Pradham manttri Jan Dhan yojna
 To provide relief to the state electricity distribution companies, government of India
has proposed to their lenders that 75 per cent of their loans be converted to state
government bonds in two phases by March 2017. This will help several banks,
especially public sector banks, to offload credit to state electricity distribution
companies from their loan book, thereby improving their asset quality.
 The central government has come out with draft proposals to encourage electronic
transactions, including income tax benefits for payments made through debit or credit
cards.
 The government has plans to set up a fund that will provide surety to banks against
loans given to students for higher education.
 The Reserve Bank of India (RBI) plans to soon come out with guidelines, such as
common risk-based know-your-customer (KYC) norms, to reinforce protection for
consumers, especially since a large number of Indians have now been financially
included post the government’s massive drive to open a bank account for each
household.
 The government of india announced a capital infustion of Rs.6,990 crores in nine state
run banks, including State Bank of India (SBI) and Punjab National Bank (PNB).
However, the new efficiency parameters would include return on assets and return on
equity. According to the finance ministry, “This year, The Government Of India has
adopted new criteria in which the banks, which are more efficient, would only be
rewarded with extra capital for their equity so that they can further strengthen their
position”
9
INVESTMENTS AND DEVELOPMENTS IN THE INDIAN BANKING

SECTOR:
 Global rating agency Moody’s has upgraded its outlook for the Indian banking system
to stable from negative based on its assessment of five drivers, including
improvement in the operating environment and stable asset risk and capital scenario.
 The RBI has allowed third-party white label automated teller machines (ATM) to
accept international cards, including international prepaid cards, and said white label
ATMs can now tie up with any commercial bank for cash supply.]
 RBI governor Mr. Raghuram Rajan and European Central Bank president Mr. Mario
Draghi have signed a Memorandum of understanding on cooperation in central
banking. “The memorandum of understanding provides a framework for regular
exchange of information, policy dialogue and technical cooperation between the two
institutions. Technical cooperation may take the form of joint seminars and
workshops in areas of mutual interest in the field of central banking”.
10
1.3 COMPANY PROFILE
REPCO BANK (Repatriates cooperative and finance and development bank) is a

cooperative bank established by the government of India in 1969 to improve financial needs
of repatriates from Srilanka and Burma. It has been controlled by the ministry of home
affairs and operated only in the south Indian states of Andhra Pradesh, Karnataka, Kerala and
Tamil Nadu. As of 2014, the shares of the bank are government of India has 73.33%,
repatriates has 21.28% and state governments Tamil Nadu has 2.91%, Andhra Pradesh has
1.73%, Kerala has 0.59% and Karnataka has 0.17%.
IMPLEMENTATION OF CORE BANKING SOLUTION

Repco technology initiatives are clearly focused on the customer. The drive for the CBS
came from the chief executive and I.T. initiatives are growing day-by day. The level of
attention spent by top management to leverage IT as a tool to achieve and sustain operational
excellence is increasing. I.T. function at the bank ensures that it lowers operation costs and
gives the organization a competitive edge in the market.
REPCO GENIUS
Repco Genius hand held device has been introduced by the bank during the year 2004 for
collection of deposit amount at the doorsteps of the customer’s addition to efficiency and
accuracy, collection through device has increased the productivity also. Instills the greater
confidence occurs on the banks transparency in the maintenance of accounts.
LOAN ORIGINATION SYSTEM (LOS)

Pioneer in introduction of loan organization system (LOS), enabling online application
processing, loan appraisal, credit rating, loan sanction, loan documentation and account
creation. The system operates on workflow driven application which automates the front end
loan processing cycle and integrates its financial accounting system also providing valuable
management information systems. This solution enables the bank to manage, monitor and
effectively control the entire life cycle of a loan contract.
PROMOTED INSTITUTIONS
 Repco home finance ltd
 Repco micro finance ltd
 Repco foundation
11
1.4 REVIEW OF LITERATURE
Mishra Aswini Kumar et al. (2012) The objective of this paper is to analyze the
performance of 12 public and private sector banks over a period of eleven years (2000-2011)
in the Indian banking sector. For this purpose, CAMEL approach has been used and it is
established that private sector banks are at the top of the list, with their performances in terms
of soundness being the best. Public sector banks like Union Bank and SBI have taken a
backseat and display low economic soundness in comparison.
Angela Roman and alina camellia sargu (2013) The comparatively analyzes the financial
soundness of the commercial banks that operate in Romania. In order to achieve this we have
used one of the most popular methods for the analysis of the financial soundness of banks,
namely the CAMELS framework. These obtained results highlight the strengths and the
vulnerabilities of the analyzed banks, underlining the need to strengthen the concerns of the
decision makers from banks to improve and increase their soundness.
Sushendra kumar misra and parvesh kumar aspal (2013) The economic importance of
banks to the developing countries may be viewed as promoting capital formation,
encouraging innovation, monetization, influence economic activity and facilitator of
monetary policy. Performance evaluation of the banking sector is an effective measure and
indicator to check the soundness of economic activities of an economy. In the present study
an attempt was made to evaluate the performance & financial soundness of State Bank Group
using CAMEL approach.
Rohit Bansal and Anoop Mohanty (2013) the banking sector is one of the fastest growing
sectors and a lot of funds are invested in banks. In this study discussed the CAMEL Model to
evaluate the performance of the selected banks. We have studied the performance of five
banks selected on the basis of market capitalization (i.e. SBI, HDFC Bank, ICICI Bank, Axis
Bank and Kotak Mahindra Bank.). Period under study is from 2007 to 2011. After calculating
ratios weightages have been given to each parameter of the CAMEL Model. From the
weighted results of each ratio, we have given marks on the basis of performance of each
bank.
12
Mathiraj (2014) To evaluate the performance of banking sector we have chosen the CAMEL
model which measures the performance of bank from each of the important parameter like
capital adequacy, asset quality, management efficiency, earning quality and liquidity. After
deciding the model we have chosen nationalized banks.
According to the importance of study each parameter is given equal weights.
Mikail Altan et al. (2014) this study attempts to investigate the performance and financial
soundness of state-owned and private-owned banks in community of Turkish banks for the
period 2005-12.we has chosen three State-Owned banks and twelve Private-Owned banks
from the Turkish banking sector, which represent more than seventy percent of the
banking system in terms of total assets. For our purpose evaluating data for eight years,
these data were analyzed by calculating 23 ratios related to CAMEL Model.
Siti Nurain Muhmada and Hafizd Aishah Hashima (2015) This study highlights the
evaluation of bank performance, including both domestic and foreign banks in Malaysia,
using the Capital adequacy, Asset quality, Management competency, Earning quality, and
Liquidity (CAMEL) framework for the period 2008 to 2012. Using regression analysis, the
results of the study showed that capital adequacy, asset quality, earning quality and liquidity
have a significant impact on performance of Malaysian banks. The outcome of this study is
important to policymakers in assessing bank performance that could determine the direction
of the future banking system in Malaysia.
Malihe rostami (2015) this study the effects of each category of CAMELS are studied on
performance. Q-Tobin's ratio is put as performance indicator. And also, data which is used in
this study is gathered from annual financial reports of an Iranian bank and at the end, the
model is extracted from analyses. With CAMELS studies, banks can focus on risk and some
important ratios and try to manage and control some possible crisis.
13
Jaspreet Kaur et al. (2015) There are many aspects to measure the performance of banks
like WACC, Regression Analysis and CAMEL Model is one important of them and thus it is
being used in study to measure and compare the financial performance of leading five public
sector banks, on the basis of total assets and consolidated basis, in India for 5 years from
2009-2014. The banks include Bank of Baroda, State Bank of India, Punjab National bank,
Bank of India, and Canara Bank. The data is collected from annual reports of these banks and
various ratios have been calculated measuring the aspects of CAMEL.
Nayan m. gandhia (2015) ‘CAMEL’ model measures the performance of banks by applying
important parameters like Capital Adequacy, Assets Quality, Management Efficiency,
Earning Quality and Liquidity. In this paper, an attempt has been made to explain the concept
of ‘CAMEL’ model for performance evaluation of banks in India.
Tesfatsion Sahlu Desta (2016) study analyzed the financial performance of the African
banks. Only seven banks were observed among the 30 African best banks as identified by the
Global Finance Magazine. These banks have complete and consolidated financial statements
for a period of the recent three fiscal years (2012 to 2014). It has applied the CAMEL
composite and component rating. The study found that the banks are rated as strong and
satisfactory when rated in terms of capital adequacy ratio and earnings ability.
Sanjeev Dhawan and Parvesh Kumar (2016) in his paper examines that Reserve Bank of
India recommended two supervisory rating models named as CAMELS (Capital
Adequacy, Assets Quality, Management, Earning, Liquidity, Systems and Controls) and
CACS (Capital Adequacy, Assets Quality, Compliance, Systems and Controls) for rating
of Indian commercial, private and foreign banks operating in India. The present study
describes the various financial ratios used in the above mentioned models to measure the
financial performance of banking sector.
14
Vinod Kumar (2017) the present study an attempt has been made to evaluate the
performance & financial soundness of selected Private Banks in India for the period 2007-
2017. CAMEL approach has been used to examine the financial strength of the selected
banks. Composite Rankings, Average, and Covariance has been applied here to reach
conclusion through the comparative and significant analysis of different parameters of
CAMEL. Axis bank is ranked first under the CAMEL analysis followed by ICICI bank.
Kotak Mahindra occupied the third position.
Maheshwara Reddy and Prasad (2017) regional rural banks would be a ‘model financial
infrastructure’ for rural development with patronage and encouragement given by planners in
the field Effective performance is the success of every business. In order to achieve the
Effective and efficient performance, the RRBs have been taken up amalgamation process in
the entire organization in the year 2005-06. In this paper an attempt is made to discuss the
financial performance of selected regional rural banks during post reorganization period. To
measure the financial soundness of selected sample banks, the CAMEL Model which is an
appropriate technique is adopted.
Vijayalakshmi et al. (2018) This study deals with the analysis of two components E-
earnings & profitability and L- liquidity position of HDFC bank for the period of five
financial years from 2012-13 to 2016-17. Earnings and profitability of banks reflects the
ability to support present and future operations of the bank. HDFC bank has maintained
stable and better earnings from different sources of its income. This study suggests that
HDFC bank can utilize the assets in proper way to increase the income from return on
assets. The performance of HDFC bank is sound in case of earnings and liquidity.
Shri.Ashish.m.Joshi and Sankaranarayanan (2018) study is to evaluate the relative

performance across banks in three sectors i.e. public, private and multi-state cooperative
banks. It is observed that based on 17 factors of camel model, only five factors shows
significant difference among the three categories of banks, further the financial performance
of the selected public private and cooperative sector banks, it is observed that four factors
profit per employee, debt-equity ratio, total assets-to-total deposits ratio, Net NPA’s-to-total
advances ratio are the major dependent factors impacting the financial performance of the
banks taking return on assets as an dependent variable.
15
Panboli and Kiran Birda (2019) this report examines the execution of certain private and
public sector banks. Five banks from private sector viz. ICICI, HDFC, Axis, YES, Kotak
Mahindra and five banks from public sector viz. SBI, PNB, BOB, UBI and Canara bank were
chosen for this analysis. The data were collected for a period from 2012-2013 to 2016-2017
(5 years). CAMEL analysis (Capital adequacy, Asset quality, Management efficiency,
Earning quality, and Liquidity) was applied towards assessing the performance.
Balakrishnan (2019) ICICI become the first Indian company and the first bank or financial
institution from non–Japan Asia to be listed on the NYSE. This study is analytical in nature.
The main purpose of this study is to study the financial performance of ICICI bank using
camel analysis. This study is analytical in nature. Secondary Data is collected from annual
reports, books, journals and periodicals. The collected data has been analysed using ratio
analysis. The study concludes that ICICI bank was in an growing trend and liquidity
parameter were on the top position
Kumarsomaling B. Balikai and Kiran kumar R. Bannigol (2019) banking sector is a

backbone of the Indian economy. The sector widely includes co-operative, commercial,
nationalized, private and internationalized banks. The present study has made an attempt to
analyses the financial soundness of 6 nationalized banks which are nationalized in the year
1980 viz., Andhra Bank, Corporation Bank, Oriental Bank of commerce (OBC), Punjab and
Sindh Bank, VIJAYA Bank, Punjab national Bank (New Bank of India merged with PNB in
1993) with the help of CAMEL rating approach for a period of 10 years starting from 2008 to
2018. After analyzing the collected data it is found that the performance of ANDHRA bank
is comparatively better in majority of parameters that are being selected.
Elayabharathi et.al (2019) A studies has been carried at the TNSC bank to study the
financial performance analysis of five years. Finance plays a vital role and life blood of the
company to accomplish its objectives. The main objective of the study was to analyses the
comparative financial analysis of the TNSC bank. The financial tools used are ratio analysis,
trend analysis and comparative balance sheets. The current assets of the bank are found to be
less than current liabilities with help of comparative balance sheets. it is found that the total
assets and liabilities are increasing year after year .the trend sales are found to be increasing.
16
1.5 NEED FOR THE STUDY
 In the recent years the financial system especially the banks have undergone
numerous changes in the form of reforms, regulation & norms. Many studies have
been done to analyze the performance of private banks on profitability and the
financial indicators. However this study will use financial ratios to analysis the banks
performance based on the camel model on private sector banks.
 The main purpose of the study is to diagnose the information contained in a financial
statement so as to judge the financial soundness and profitability of the banks. The
study aims at analyzing the overall financial performance of the bank over a period of
5 years (i.e.) 2015-2019 By using various tools to bring out the mystery behind the
financial statement.
17
1.6 OBJECTIVES OF THE STUDY
 To understand the financial soundness of the banks.

 To determine the capital adequacy, asset quality, management efficiency
 To analyze the earnings profitability and liquidity position of selected banks
 To position a bank in terms of the progress made by it in the direction of universal
 To find out the impact of financial strength of profitability and to suggest potential
areas of improvements.
18
1.7 SCOPE OF THE STUDY
The scope of the study is to understand the financial soundness and strength analysis using
camel approach practices followed at REPCO Bank. This study carries details of financial
performance of Repco bank followed by camel approach. This study used to come up with
certain strategic recommendations which might help improving the financial position of
Repco bank. This project includes the ratio analysis of camel approach of the bank and its
ability to perform its financial performance. The project also includes projections of ratio
analysis, coefficients of correlations and trend analysis for the next 5 financial years.
19
1.8 RESEARCH METHODOLOGY
CAMEL model is basically ratio based model for evaluating the performance of banks. The
present study adopts are stated as follows.
1.8.1 Sample Design: these study has been carried out by selecting bank namely REPCO
Bank. This is one of the cooperative banks in banking sectors
1.8.2 Data source:

The data required to complete the study has been collected from the published annual reports
of the selected bank.
1.8.3 Study Period:

Taking into the account the available of data, we have chosen the study period spanning from
2014-2015 to 2018-2019.
1.8.4 Tools and Techniques of Data analysis:
 Ratio Analysis
 Horizontal and Vertical Analysis
 Pearson’s correlation coefficient
20
1.9 LIMITATIONS OF THIS STUDY
The study suffers from certain limitations which are stated as follows:
 The study has been conducted over a very limited period of five years only.
 The study is based on secondary data.
 The study is limited to a single bank. Hence it will reflect only a partial view of the
overall financial performance in the banking sectors.
 The study is based on consolidated financial statement of the selected bank, which
may leave some grounds of error.
21
CHAPTER II
DATA ANALYSIS AND INTERPRETATION
2.1 RATIO ANALYSIS

A. CAPITAL ADEQUACY RATIO:
Capital Adequacy Ratio is also known as Capital to Risk Assets Ratio is the ratio of a bank's
capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a
reasonable amount of loss and complies with statutory Capital requirements. It is a measure
of a bank's capital.
CAR = TIER I CAPITAL + TIER II CAPITAL / RISK WEIGHTED ASSETS
2.1.1 Table showing Capital Adequacy Ratio

YEAR TIER I TIER II CAPITAL ADEQUACY
2015 6.06 4.03 10.09
2016 6.09 5.03 11.93
2017 7.55 5.06 13.21
2018 8.61 5.01 13.71
2019 8.09 4.26 12.35
2.1.1 Figure showing Capital Adequacy

16
14
12
Capital Adequacy
10
0
2015 2016 2017 2018 2019
ratio 10.09 11.93 13.21 13.71 12.35
Year
22
INTERPRETATION:
REPCO bank has shown fluctuations till 2018-2019. The ratio has increased from 10.09 in
2014-15 to 12.35 in 2018-19. When comparing the year 2015 to 2019 the capital adequacy
has increased. This means a banks have a high capital adequacy ratio is considered to be
above the minimum requirements needed. REPCO bank is to be able to withstand a financial
downturn or other unforeseen losses.
23
B. DEBT EQUITY RATIO:
The debt equity (D/E) ratio is a leverage ratio that shows how much a company's financing
comes from debt or equity. Banks tend to have higher D/E ratios because they borrow capital
in order to lend to customers. It is calculated by dividing the total liabilities and shareholder’s
equity during respective years.
DER = TOTAL LIABILITIES / SHAREHOLDERS EQUITY
2.1.2 Table showing Debt Equity Ratio

YEAR TOTAL LIABILITIES SHAREHOLDERS EQUITY RATIO
2015 55081.89 89794.93 0.61
2016 68803.86 111664.16 0.62
2017 82504.53 137319.47 0.60
2018 99070.81 163398.45 0.61
2019 115540.01 180498.41 0.64
2.1.2 Figure showing Debt equity

180
160
140
120
Debt Equity
100
80
60
40
20
0
2015 2016 2017 2018 2019
ratio 69.06 59.00 131.55 78.56 158.89
Year
INTERPRETATION:
REPCO bank shows the higher debt equity ratio in the above chart. The chart shows the
fluctuation over the year of 2015-2019. Generally, the banks tend to have higher D/E ratios.
Because they borrow capital in order to lend to customers. They also have substantial fixed
assets. i.e. Local branches. The REPCO bank has more debt equity ratio when compared to
the other previous years. These means they have high capabilities of lending more money to
the customers.
24
(C) ADVANCES TO ASSETS RATIO:
Advances to assets are the ratio of the total advances to total assets.
This ratio indicates a bank’s aggressiveness in lending which ultimately results in better
profitability. Higher ratio of advance /deposits (assets) is preferred to a lower one. Total
advances also include receivables.
ADVANCES TO ASSETS = TOTAL ADVANCE / TOTAL ASSET
2.1.3 Table showing Advance to Asset Ratio

YEAR TOTAL ADVANCE TOTAL ASSET RATIO
2015 55081.89 89794.93 0.61
2016 68803.86 111664.16 0.62
2017 82504.53 137319.47 0.60
2018 99070.81 163398.45 0.61
2019 115540.01 180498.41 0.64
2.1.3 Figure showing Advance to asset

0.65
0.64
Total Advance to Total asset
0.63
0.62
0.61
0.6
0.59
0.58
2015 2016 2017 2018 2019
ratio 0.61 0.62 0.6 0.61 0.64
Year
INTERPRETATION:
REPCO bank has maintains a steady ratio of 0.60 to 0.65 in 2014-15 – 2018-19. The highest
ratio was in the year 2019 as .64 this ratio indicates a bank’s aggressiveness in lending
which ultimately results in better profitability. In the year 2017 has declined and again it
increased from 2018 till 2019. Higher ratio of advance/deposits is preferred to a lower one.
25
2.1.2 ASSET QUALITY RATIO
(A) GROSS NON PERFORMING ASSETS RATIO
The net NPA (Non-performing asset) to loans (advances) ratio is used as a measure of the
overall quality of the bank’s loan book. An NPA are those assets for which interest is overdue
for more than 90 days (3 months).
GROSS NPA = GROSS NPA / TOTAL LOAN
2.1.4 Table showing Gross NPA Ratio

YEAR GROSS NPA TOTAL LOAN RATIO
2015 165195 81624.89 2.02
2016 153951 102283.99 1.51
2017 166643 128679.42 1.30
2018 315036 150752.57 2.09
2019 408620 166904.91 2.45
2.1.4 Figure showing gross NPA

3
Gross Non Performing Asset
2.5
1.5
0.5
0
2015 2016 2017 2018 2019
ratio 2.02 1.51 1.3 2.09 2.45
Year
INTERPRETATION:
REPCO bank has shown fluctuation till 2015-2019. The gross NPA has increased in the year
of 2019 as 2.45 when compared to the other previous years. The GNPA lower the ratio, it is
good for the bank, as it reflects that more loans are standard assets, which can be recovered
on time. But in REPCO bank it is higher the ratio this means there is increased more non-
performing assets so it is not good for the bank.
26
(B) NET NON PERFORMING ASSETS RATIO:
Net NPA to advance (loans) ratio is the ratio of Net NPA to advances. It is used as a measure
of the overall quality of the bank’s loan book. An NPA are those assets for which interest is
overdue for more than 90 days (3 months). Higher ratio reflects rising bad quality of loans.
NET NPA = NET NPA / TOTAL LOAN
2.1.5 Table showing Net Non-Performing Assets Ratio

YEAR NET NPA TOTAL LOAN RATIO
2015 109230 81624.89 1.34
2016 81267 102283.99 0.79
2017 96628 128679.42 0.75
2018 182455 150752.57 1.21
2019 226394 166904.91 1.36
2.1.5 Figure showing Net NPA

1.6
1.4
Net Non Performing Asset
1.2
0.8
0.6
0.4
0.2
0
2015 2016 2017 2018 2019
ratio 1.34 0.79 0.75 1.21 1.36
Year
INTERPRETATION:
REPCO bank has shown the fluctuation from 2015-2019. In the year 2017 Net NPA has
reduced at 0.75 these shows that bank as well maintained in that year. And again the net non-
performing asset has more increased in 2019 as 1.36. When compared to the other previous
years. This means when NPA occurs, it is not just an interest income loss to the bank, but a
principle loss as well. So it is not good for the banks.
27
2.1.3 MANAGEMENT RATIO
(A.) ADVANCE TO DEPOSIT RATIO:
The advances to deposits ratio measures loans (advances) as a percentage of deposits. A ratio
of 100% or less shows that the bank is funding all its loans from deposits rather than relying
on wholesale funding (funding from the capital markets or other banks).
ADVANCE TO DEPOSIT = TOTAL ADVANCE /TOTAL DEPOSIT
2.1.6 Table showing Advance to Deposit Ratio

YEAR TOTAL ADVANCE TOTAL DEPOSITS RATIO
2015 55081.89 79908.94 0.69
2016 68803.86 100221.57 0.69
2017 82504.53 122415.55 0.67
2018 99070.81 145277.60 0.68
2019 115540.01 154003.49 0.75
2.1.6 Figure showing Advance to Deposit

0.76
Total advance to total Deposit
0.74
0.72
0.7
0.68
0.66
0.64
0.62
2015 2016 2017 2018 2019
ratio 0.69 0.69 0.67 0.68 0.75
Year
INTERPRETATION:
From the above chart it is clearly understandable that the total advances to total deposits
ratios is higher than one for all the years. This ratio is a measure of banks financial health.
For example in the year 2019 the interest rate increases is 0.75 or 75%. These shows deposits
grow at a faster pace than loans because higher interest rates push investors to invest more
money. Conversely when rates are lower, deposits reduces.
28
(B) BUSINESS PER EMPLOYEE:
Business per employee ratio is related with the employee’s productivity.

It can be calculated by dividing the total business of the bank by number of employees.
Higher the ratio, better it is.
BUSINESS PER EMPLOYEE = TOTAL INCOME / NO OF EMPLOYEES
2.1.7 Table showing Business per Employee Ratio

YEAR TOTAL INCOME NO OF EMPLOYEES RATIO
2015 7280.69 1250.86 5.82
2016 9141.28 1241.98 7.36
2017 10492.25 1181.55 8.80
2018 12296.21 1339.69 9.17
2019 15597.92 1301.60 11.98
2.1.7 Figure showing Business per Employee

14
12
Business Per Employee
10
0
2015 2016 2017 2018 2019
ratio 5.82 7.36 8.88 9.17 11.98
Year
INTERPRETATION:
From the above chart it is clearly understandable that the business per employee ratios
increases randomly. In the year 2019 as the ratio as 11.98 when compared to the previous
years. This shows that the revenue per employee ratio increases. The higher ratio indicates
the greater productivity in banks. Banks with high revenue – per – employee ratios are often
profitable.
29
(C) PROFIT PER BRANCH:
This ratio is used to analyses the profitability at each branch level and the same time.
Net profit is the difference between income and expenditure, which indicates profitability of
each branch level and the same time, indicates its efficiency. It is calculated by dividing the
net profit and number of branches during respective years.
PROFIT PER BRANCH = NET PROFIT / NUMBER OF BRANCHES
2.1.8 Table showing Profit per Branch Ratio

YEAR NET PROFIT NO OF BRANCHES RATIO
2015 412.16 1961 0.21
2016 557.72 2069 0.26
2017 1012.18 2152 0.47
2018 906.54 2264 0.40
2019 1108.67 2551 0.43
2.1.8 Figure showing Profit per Branch

0.5
0.45
0.4
Profit Per Branch
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
2015 2016 2017 2018 2019
ratio 0.21 0.26 0.47 0.40 0.43
Year
INTERPRETATION:
REPCO bank shows the fluctuations in this ratio by increasing from 0.21 or 21% in 2014-15
to 0.47 or 47% in 2017-18 and again reduces when compared to the previous year. But
overall the year 2015 to 2019 profit per branch ratios increases. This indicates its efficiency.
Better ratio is indicator of good health and efficiency.
30
2.1.4 EARNING RATIO
(A) DIVIDEND PAY-OUT RATIO:
Dividend payout ratio shows the percentage of profit shared with the shareholders. The more
the ratio will increase the goodwill of the banks in the share market. It is calculated by
dividing the dividend and net profit earned during respective years.
DIVIDEND PAYOUT RATIO = DIVIDEND / NET PROFIT
2.1.9 Table showing Dividend Payout Ratio

YEAR DIVIDEND NET PROFIT PAYOUT RATIO
2015 10% 412.16 0.24
2016 10% 557.72 0.18
2017 15% 1012.18 0.15
2018 30% 906.54 0.33
2019 30% 1108.67 0.27
2.1.9 Figure showing Dividend Payout Ratio

0.35
0.3
0.25
Dividend Payout
0.2
0.15
0.1
0.05
0
2015 2016 2017 2018 2019
ratio 0.24 0.18 0.15 0.33 0.27
Year
INTERPRETATION:
REPCO bank has shown fluctuations till 2018-2019. The ratio has increased from 0.24% in
2014-2015 to 0.27% in 2018-2019. The dividend payout ratio shows fluctuate rapidly over
the years while comparing 2015 to 2019 the dividend has increased. This means the bank is
performing well and cash flows are improving. There is more room to pay shareholders
higher dividends.
31
(B) RETURN ON ASSET RATIO:
Net profit to total asset indicates the efficiency of the banks in utilizing their assets in
generating profits. A higher ratio indicates the better income generating capacity of the assets
and better efficiency of management in future. It is calculated by dividing the net profit for
every year and the total assets available in every year.
RETURN ON ASSET RATIO = NET PROFIT / TOTAL ASSET
2.1.10 Table showing Return on Asset Ratio

YEAR NET PROFIT TOTAL ASSET RETURN ON ASSET
2015 412.16 89794.93 0.46
2016 557.72 111664.16 0.50
2017 1012.18 137219.50 0.74
2018 906.54 163398.45 0.55
2019 1108.67 180498.41 0.61
2.1.10 Figure showing Return on Asset

0.8
0.7
0.6
Return on Asset
0.5
0.4
0.3
0.2
0.1
0
2015 2016 2017 2018 2019
ratio 0.46 0.5 0.74 0.55 0.61
Year
INTERPRETATION:
The return on asset ratio tells how profitable the bank can do with what it has. Wheather if
lower a return on asset means that bank is not able to utilize assets efficiently. Negative
ROA implies the bank’s assets are yielding negative return. When compare 2018 to 2019
ROA has increased 6% and thus shows a better capacity in generating income from banks
assets.
32
(C) WORKING FUND RATIOs:
This ratio determines the operating profits generated out of working fund employed. The
better utilization of the funds will result in higher operating profits. The higher the ratio, the
better it is. This ratio is calculated by dividing operating profit by average working fund.
WORKING FUND RATIO = OPERATING PROFIT / AVERAGE WORKING FUND
2.1.11 Table showing Working Fund Ratio

YEAR OPERATING PROFIT AVERAGE WORKING FUND RATIO
2015 4627.5 97685.935 0.05
2016 6027.12 120966.62 0.05
2017 7285.43 146911.18 0.05
2018 7545.04 178978.09 0.04
2019 10914.98 128945.3 0.08
2.1.11 Figure showing Working Fund
0.09
Operating Profit Average Working Fund
0.08
0.07
0.06
0.05
0.04
0.03
0.02
0.01
0
2015 2016 2017 2018 2019
ratio 0.05 0.05 0.05 0.04 0.08
Year
INTERPRETATION:
This ratio indicates how much a bank can earn from its operations net of operating expenses
for every rupee spent on working funds. Repco bank has utilized its employed working
funds better in 2018-2019 as against any other previous four years, thus the bank is
performing well in 2018-2019 compared to previous years.
33
(D) NET PROFIT ASSET RATIO:
Net profit to total asset indicates the efficiency of the banks in utilizing their assets in
generating profits. A higher ratio indicates the better income generating capacity of the
assets and better efficiency of management. It is arrived at by dividing the net profit by
average assets, which is the average of total assets in the current year and previous year.
Higher ratio indicates better earning potential in the future.
NPAR = NET PROFIT / TOTAL ASSET
2.1.12 Table showing Net Profit Asset Ratio

YEAR NET PROFIT TOTAL ASSET NPAR
2015 412.16 89794.93 0.0045
2016 557.72 111664.16 0.0049
2017 1012.18 137319.47 0.0073
2018 906.54 163398.45 0.0055
2019 1108.67 980498.41 0.0061
2.1.12 Figure showing Net Profit Asset

0.008
0.007
Net Profit to Total Asset
0.006
0.005
0.004
0.003
0.002
0.001
0
2015 2016 2017 2018 2019
ratio 0.004 0.004 0.007 0.005 0.006
Year
INTERPRETATION:
REPCO bank has shown fluctuations in this ratio by increasing from 0.004% in 2014-2015 to
0.007% in 2016-2017 and again reduced to 0.005% in 2017-2018. The ratio is higher in
2016-2017 indicating that the bank has used its assets efficiently to earn profit compared to
other years.
34
(E) INTEREST INCOME TO TOTAL INCOME RATIO
The interest income to total income indicates the ability of the bank in generating income
from its lending. In other words, this ratio measures the income from lending operations as a
percentage of the total income generated by the bank in a year. Interest income indicates
income on advances, interest on deposits with the RBI, and dividend income.
IITIR = INTEREST INCOME / TOTAL INCOME
2.1.13 Table showing Interest Income to Total Income Ratio

YEAR INTEREST INCOME TOTAL INCOME IITI
2015 6508.56 7280.69 0.89
2016 8121.38 9141.27 0.88
2017 9526.32 10492.25 0.90
2018 11370.8 12296.21 0.92
2019 14632.37 15597.93 0.93
2.1.13 Figure showing Interest Income to Total Income

0.94
nterest Income to Total Income
0.93
0.92
0.91
0.9
0.89
0.88
0.87
0.86
0.85
2015 2016 2017 2018 2019
ratio 0.89 0.88 0.9 0.92 0.93
Year
INTERPRETATION:
The ratio is to analyses generating income from interest. REPCO bank maintains a steady
ratio of 0.85% to 0.95% in 2014-15-2018-19. The highest ratio was in 2018-2019 as 0.93%.
When compared to other previous years. Thus it has a greater ability in generating income
from interest.
35
2.1.5 LIQUIDITY
An adequate liquidity position refers to a situation, where institution can obtain sufficient
funds, either by increasing liabilities or by converting its assets quickly at a reasonable cost.
Risk of liquidity is a major threat to the image of the bank. So the bank has to take proper
care of liquidity risk. The following ratios are used to measure the liquidity position of a
bank.
(A) LIQUID ASSET TO TOTAL ASSET RATIO
Liquid assets include cash in hand, balance with the RBI, balance with other banks (both in in
India and abroad), and money at call and short notice. Total asset include the revaluations of
all the assets. The proportion of liquid asset to total asset indicates the overall liquidit y
position of the bank.
LATAR = LIQUID ASSET / TOTAL ASSET
2.1.14 Table showing Liquid Asset to Total Asset Ratio

YEAR LIQUID ASSET TOTAL ASSET LATAR
2015 63185.41 89794.94 0.70
2016 79657.3 111995.91 0.71
2017 90608.86 137808.28 0.66
2018 116051.25 163889.61 0.71
2019 129143.7 181068.21 0.71
2.1.14 Figure showing Liquid Asset to Total Asset

0.72
0.71
Liquid Asset to Total Asset
0.70
0.69
0.68
0.67
0.66
0.65
0.64
0.63
2015 2016 2017 2018 2019
ratio 0.70 0.71 0.66 0.71 0.71
Year
36
INTERPRETATION:
REPCO bank maintains a stable proportion of liquid assets in over the years except the year
2016-2017. It relatively reduced 0.66% in the year of 2016-2017. There is no more
fluctuation in the ratio the bank has maintained a better liquidity position.
37
(B) LIQUID ASSET TO DEMAND DEPOSIT RATIO
This ratio measures the ability of a bank to meet the demand from deposits in a particular
year out of liquid assets. Demand deposits offer high liquidity to the depositor and hence
banks have to invest these assets in a highly liquid form.
LADDR = LIQUID ASSET / DEMAND DEPOSIT
2.1.15 Table showing Liquid Asset to Demand Deposit Ratio

YEAR LIQUID ASSET DEMAND DEPOSIT LADDR
2015 63185.41 20505.74 3.08
2016 79657.3 24163.93 3.30
2017 90608.86 30177.02 3.00
2018 116051.25 32031.12 3.62
2019 129143.7 34402.98 3.75
2.1.15 Figure showing Liquid Asset to Demand Deposit

4
Lquid Asset to Demand Deposit
3.5
2.5
1.5
0.5
0
2015 2016 2017 2018 2019
ratio 3.08 3.30 3.00 3.62 3.75
Year
INTERPRETATION:
REPCO bank has maintained an adequate liquid asset to meet from deposits. There is an
increasing trend in ratios from 2014-2015 as 3.08% in 2018-2019 as 3.75% except the one
year 2016-2017 as decline 3.00%. In that year the liquid as not maintained properly. In
recent year 2018-19 has maintained a liquid asset.
38
(C) LIQUID ASSET TO TOTAL DEPOSIT RATIO
This ratio measures the liquidity available to the deposits of a bank. Total deposits include
demand deposits, savings deposits, term deposits and deposits of other financial institutions.
Liquid assets include cash in hand, balance with the RBI, balance with other hands (both in
India and abroad), and money at call and short notice.
LATDR = LIQUID ASSET/ TOTAL DEPOSIT
2.1.16 Table showing Liquid Asset to Total Deposit

YEAR LIQUID ASSET TOTAL DEPOSITS LATDR
2015 63185.41 79908.94 0.79
2016 79657.3 100221.57 0.79
2017 90608.86 122415.55 0.74
2018 116051.25 145277.6 0.80
2019 129143.7 154003.49 0.84
2.1.16 Liquid Asset to Total Deposit

0.86
0.84
Liquid Asset to Total deposit
0.82
0.8
0.78
0.76
0.74
0.72
0.7
0.68
2015 2016 2017 2018 2019
ratio 0.79 0.79 0.74 0.80 0.84
Year
INTERPRETATION:
REPCO bank had a higher proportion in 2019. Before the recent year deposits has decreases
out of liquid assets. This chart shows the fluctuation over the year of 2015-2019 randomly.
When decreases that represent the potential to meet deposits out of liquid assets.
39
2.2 SPSS ANALYSIS
CORRELATION:
A correlation is a statistical tool that establishes a relationship or connection between two or

more things.
INPUT VARIABLE (BORROWINGS, DEPOSITS, INTEREST INCOME)
HYPOTHESIS 1
H11: There is no relationship between Borrowings and Interests Income.

H12: There is relationship between Borrowings and Interests Income.
HYPOTHESIS 2
H21: there is no relationship between Deposits and Borrowing.

H22: There is possible positive relationship between Deposits and Borrowing.
OUTPUT VARIABLE (OPERATING PROFIT AND NET INCOME)
HYPOTHESIS 3
H31: There is no relationship between Operating Profit and Net Income.

H32: There is relationship between Operating Profit and Net Income.
40
INPUT VARIABLES
Table 2.2.1 CORRELATION OUTPUT
INTEREST INTEREST
BORROWINGS DEPOSITS EXPENSE INCOME
**
Pearson Correlation 1 .850 .968 .947*
BORROWINGS
Sig. (2-tailed) .001 .007 .002
N 5 5 5 5
*
Pearson Correlation .850 1 .887 .953*
DEPOSITS
Sig. (2-tailed) .001 .045 .012
N 5 5 5 5
** * **
Pearson Correlation .968 .887 1 .977
INTEREST
Sig. (2-tailed) .007 .045 .004
EXPENSE
N 5 5 5 5
* * **
Pearson Correlation .947 .953 .977 1
INTEREST INCOME
Sig. (2-tailed) .002 .012 .004
N 5 5 5 5
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
OUTPUT VARIABLES
2.2.2 Correlations output

Net OPERATING NET INTEREST
INCOME PROFIT MARGIN
Net INCOME Pearson Correlation 1 .983** .824
Sig. (2-tailed) .003 .087
N 5 5 5
**
OPERATING PROFIT Pearson Correlation .983 1 .709
Sig. (2-tailed) .003 .180
N 5 5 5
NET INTEREST MARGIN Pearson Correlation .824 .709 1
Sig. (2-tailed) .087 .180
N 5 5 5
**. Correlation is significant at the 0.01 level (2-tailed).

41
INTERPRETATION:
HYPOTHESIS 1
In this analysis the current ratio is significant positive relationship with Borrowings and
interest income. The coefficient is 0.947* and p-value of (0.002). The result is shows that
two objective of borrowings and interest income have been positive. This means that when
borrowing increases the dividend for the banks get increases.
HYPOTHESIS 2
In this analysis the current ratio of banks show the positive relationship with Deposits and
Borrowings. The coefficient is 0.850 and p-value of (0.001). The result is shows that two
objective of deposits and borrowings have been positive. This means that when a deposit
increases there is more possibility of giving credits to the customers.
HYPOTHESIS 3
In this analysis the current ratio of banks show the positive relationship with Operating profit
and Net Income. The coefficient is 0.983** and p-value of (0.003). The result is shows that
two objective of operating profit and net income have been positive. It suggests that both
variables have relationship with each other for profit matrix. This means Net operating
measure profit after depreciation and net income measure revenue generation after sales.
42
2.3 HORIZONTAL ANALYSIS
TABLE 2.3.1 SHOWING THE HORIZONTAL ANALYZES FY 2014-2015
COMPARATIVE BALANCE SHEET OF REPCO BANK FOR THE YEAR 2014-2015
ABSOLUTE
PARTICULARS 2014 2015 %
CHANGE
Capital and Liabilities

Total share capital 799.36 799.36 0.00 0.00%
Equity share capital 0.00 799.36 799.36 0.00%
preference share capital 0.00 0.00 0.00 0.00%
Reserves and surplus 1862.72 2,126.96 264.24 14.19%
Deposits 64860.01 79,908.94 15048.93 23.20%
Borrowings 2465.86 1,715.95 -749.91 -30.41%
Other Liabilities and Provisions 4875.94 5,243.73 367.79 7.54%
Total Liabilities 74,863.89 89,794.94 14931.05 19.94%
Assets
Cash and Balance with RBI 3,794.27 5,702.72 1908.45 50.30%
Balance with Banks and Money at call 2,420.26 2400.8 -19.46 -0.80%
Investments 19,524.87 24,249.63 4724.76 24.20%
Advances 46,988.91 55,081.89 8092.98 17.22%
Fixed Assets 449.19 684.34 235.15 52.35%
Other Assets 1,468.88 1,675.55 206.67 14.07%
Total Assets 74,863.89 89,794.94 14931.05 19.94%
INTERPRETATION:
From the above balance sheet it is clearly understandable that the fixed asset is increased by
52.35%. The equity shows positive change which means there is increase in the value of
equity. The borrowing shows a negative change. This means receiving’s of dividend get
reduced. The cash and cash equivalents shows increase by 50.30% and the current asset are
increased by 19.94%. The equity and liability show an increase of 9.97%.
43
TABLE 2.3.2 SHOWING THE HORIZONTAL ANALYSIS FY 2015-2016
ABSOLUTE
CHANGE

Total share capital 799.36 1,249.36 450.00 56.30%
Equity share capital 799.36 549.36 -250.00 -31.28%
preference share capital 0.00 700.00 700.00 0.00%
Reserves and surplus 2,126.96 2,707.69 580.73 27.30%
Deposits 79,908.94 100,221.57 20312.63 25.42%
Borrowings 1,715.95 2,062.42 346.47 20.19%
Other Liabilities and Provisions 5,243.73 5,423.14 179.41 3.42%
Assets
Balance with Banks and Money at call 2,400.80 4,264.59 1863.79 77.63%
Investments 24,249.63 29,384.78 5135.15 21.18%
Advances 55,081.89 68,803.86 13721.97 24.91%
Fixed Assets 684.34 718.58 34.24 5.00%
Other Assets 1,675.55 1,903.22 227.67 13.59%
Total Assets 89,794.94 111,664.18 21869.24 24.35%
INTERPRETATION:
From the above balance sheet it is clearly understandable that the fixed asset is increased by
5.00%. The equity shows negative change which means there is decrease in the value of
equity. The borrowing shows a positive change. This means there is more dividends to be
received. The cash and cash equivalents shows increase by 15.54% and the current asset are
increased by 24.35%. The equity and liability show a decrease of 3.465%.
44
ABSOLUTE
CHANGE

Total share capital 1,249.36 1,699.36 450.00 36.02%
preference share capital 700.00 1,150.00 450.00 64.29%
Deposits 100,221.57 122,415.55 22193.98 22.14%
Borrowings 2,062.42 6,263.84 4201.42 203.71%
Other Liabilities and Provisions 5,423.14 3,429.56 -1993.58 -36.76%
Assets
Balance with Banks and Money at call 4,264.59 861.60 -3402.99 -79.80%
Investments 29,384.78 43,521.43 14136.65 48.11%
Advances 68,803.86 82,504.53 13700.67 19.91%
Fixed Assets 718.58 709.85 -8.73 -1.21%
Other Assets 1,903.22 2,479.15 575.93 30.26%
Total Assets 111,664.18 137,319.50 25655.32 22.98%
INTERPRETATION:
From the above balance sheet it is clearly understandable that the fixed asset is decreased by
1.21%. The equity shows nil. This means there is no change in the value of equity. The
borrowing shows a positive change. This means there is more dividends to be received. The
cash and cash equivalents shows increase by 9.92% and the current asset are increased by
22.98%. The equity and liability show an increase of 11.49%.
45
ABSOLUTE
CHANGE

Deposits 122,415.55 145,277.60 22862.05 18.68%
Borrowings 6,263.84 5,474.77 -789.07 -12.60%
Other Liabilities and Provisions 3,429.56 5,226.85 1797.29 52.41%
Assets
Cash and Balance with RBI 7,242.73 10404.03 3161.30 43.65%
Balance with Banks and Money at call 861.60 6,576.41 5714.81 663.28%
Investments 43,521.43 42,927.28 -594.15 -1.37%
Advances 82,504.53 99,070.81 16566.28 20.08%
Fixed Assets 709.85 738.87 29.02 4.09%
Other Assets 2,479.15 3,681.05 1201.90 48.48%
Total Assets 137,319.50 163,398.45 26078.95 18.99%
INTERPRETATION:
From the above balance Sheet. It is clearly understandable that the fixed asset is increased by
4.09%. The equity shows positive charge. This means there is change in the value of equity.
The borrowing shows a negative change. This means receiving of dividends to be reduced.
The cash and cash equivalents shows increase by 43.65% and the current asset are increased
by 18.99%. The equity and liability show an increase of 16.61%.
46
ABSOLUTE
CHANGE

Deposits 145,277.60 154,003.49 8725.89 6.01%
Borrowings 5,474.77 12,901.42 7426.65 135.65%
Other Liabilities and Provisions 5,226.85 4,980.06 -246.79 -4.72%
Assets
Cash and Balance with RBI 10,404.03 7,811.53 -2592.50 -24.92%
Balance with Banks and Money at call 6,576.41 5,792.16 -784.25 -11.93%
Investments 42,927.28 45,771.49 2844.21 6.63%
Advances 99,070.81 115,540.01 16469.20 16.62%
Fixed Assets 738.87 801.55 62.68 8.48%
Other Assets 3,681.05 4,781.66 1100.61 29.90%
Total Assets 163,398.45 180,498.40 17099.95 10.47%
INTERPRETATION:
From the above balance Sheet. It is clearly understandable that the fixed asset is increased by
8.48%. The equity shows positive charge. This means there is change in the value of equity.
The borrowing shows a positive change. This means there is more dividends to be received.
The cash and cash equivalents shows decrease by 24.92% and the current asset are increased
by 10.47%. The equity and liability show an increase of 8.2%.
47
2.4 VERTICAL ANALYSIS
TABLE 2.4.1 SHOWING THE VERTICAL ANALYSIS FY 2014-2015
change in change in
PARTICULARS 2014 2015
% 2014 % 2015

Total share capital 799.36 799.36 1.07% 0.89%
Equity share capital 0.00 799.36 0.00% 0.89%
preference share capital 0.00 0.00 0.00% 0.00%
Reserves and surplus 1862.72 2,126.96 2.49% 2.37%
Deposits 64860.01 79,908.94 86.64% 88.99%
Borrowings 2465.86 1,715.95 3.29% 1.91%
Other Liabilities and Provisions 4875.94 5,243.73 6.51% 5.84%
Total Liabilities 74,863.89 89,794.94 100.00% 100.00%
Assets
Cash and Balance with RBI 3,794.27 5,702.72 5.07% 6.35%
Balance with Banks and Money at call 2,420.26 2400.8 3.23% 2.67%
Investments 19,524.87 24,249.63 26.08% 27.01%
Advances 46,988.91 55,081.89 62.77% 61.34%
Fixed Assets 449.19 684.34 0.60% 0.76%
Other Assets 1,468.88 1,675.55 1.96% 1.87%
Total Assets 74,863.89 89,794.94 100.00% 100.00%
INTERPRETATION:
From the above balance sheet it is clearly understandable that the fixed asset in the year of
2015 is increased by 0.16% when compared to previous year. The equity shows a positive
change which means there is increased in the value of equity. The borrowing shows a
decrease of 1.38%. This means there is receiving of dividends to be reduced. The deposit has
increased. Which means there is more possibilities of loan through that more dividend can be
collected.
48
change in change in
% 2015 % 2016

Total share capital 799.36 1,249.36 0.89% 1.12%
preference share capital 0.00 700.00 0.00% 0.63%
Reserves and surplus 2,126.96 2,707.69 2.37% 2.42%
Deposits 79,908.94 100,221.57 88.99% 89.75%
Borrowings 1,715.95 2,062.42 1.91% 1.85%
Other Liabilities and Provisions 5,243.73 5,423.14 5.84% 4.86%
Assets
Balance with Banks and Money at call 2,400.80 4,264.59 2.67% 3.82%
Investments 24,249.63 29,384.78 27.01% 26.32%
Advances 55,081.89 68,803.86 61.34% 61.62%
Fixed Assets 684.34 718.58 0.76% 0.64%
Other Assets 1,675.55 1,903.22 1.87% 1.70%
Total Assets 89,794.94 111,664.18 100.00% 100.00%
INTERPRETATION
2016 is decreased by 0.12% when compared to previous year. The equity shows a negative
change which means there is decreased in the value of equity. The borrowing shows a
increased. Which means there is more possibilities of loan through that more dividend can be
collected.
49
change in change in
% 2016 % 2017

Total share capital 1,249.36 1,699.36 1.12% 1.24%
preference share capital 700.00 1,150.00 0.63% 0.84%
Deposits 100,221.57 122,415.55 89.75% 89.15%
Borrowings 2,062.42 6,263.84 1.85% 4.56%
Assets
Balance with Banks and Money at call 4,264.59 861.60 3.82% 0.63%
Investments 29,384.78 43,521.43 26.32% 31.69%
Advances 68,803.86 82,504.53 61.62% 60.08%
Fixed Assets 718.58 709.85 0.64% 0.52%
Other Assets 1,903.22 2,479.15 1.70% 1.81%
Total Assets 111,664.18 137,319.50 100.00% 100.00%
INTERPRETATION:
change which means there is decreased in the value of equity. The borrowing shows an
increase of 2.71%. This means there is more dividends to be reduced. The deposit has
decreased. Which means there is less possibilities of loan so that dividend can be reduced
50
change in change in
% 2017 % 2018

Deposits 122,415.55 145,277.60 89.15% 88.91%
Borrowings 6,263.84 5,474.77 4.56% 3.35%
Assets
Cash and Balance with RBI 7,242.73 10404.03 5.27% 6.37%
Balance with Banks and Money at call 861.60 6,576.41 0.63% 4.02%
Investments 43,521.43 42,927.28 31.69% 26.27%
Advances 82,504.53 99,070.81 60.08% 60.63%
Fixed Assets 709.85 738.87 0.52% 0.45%
Other Assets 2,479.15 3,681.05 1.81% 2.25%
Total Assets 137,319.50 163,398.45 100.00% 100.00%
INTERPRETATION:
change which means there is decreased in the value of equity. The borrowing shows a
decreased. Which means there is less possibilities of loan so that dividend can be reduced.
51
change in change in
% 2018 % 2019

Deposits 145,277.60 154,003.49 88.91% 85.32%
Borrowings 5,474.77 12,901.42 3.35% 7.15%
Assets
Balance with Banks and Money at call 6,576.41 5,792.16 4.02% 3.21%
Investments 42,927.28 45,771.49 26.27% 25.36%
Advances 99,070.81 115,540.01 60.63% 64.01%
Fixed Assets 738.87 801.55 0.45% 0.44%
Other Assets 3,681.05 4,781.66 2.25% 2.65%
Total Assets 163,398.45 180,498.40 100.00% 100.00%
INTERPRETATION:
change which means there is decreased in the value of equity. The borrowing shows an
increase of 3.8%. This means there is more dividends to be received. The deposit has
decreased. Which means there is less possibilities of loan so that dividend can be reduced
52
CHAPTER III
SUMMARY OF FINDINGS, SUGGESTIONS & CONCLUSION
3.1 FINDINGS
 REPCO bank has shown fluctuations till 2018-2019. The ratio has increased from
10.09 in 2014-15 to 12.35 in 2018-19. When comparing the year 2015 to 2019 the
capital adequacy has increased. This means a banks have a high capital adequacy ratio
is considered to be above the minimum requirements needed. REPCO bank is to be able
to withstand a financial downturn or other unforeseen losses.
 The debt equity ratio shows the fluctuation over the year of 2015-2019. Generally, the
banks tend to have higher D/E ratios. Because they borrow capital in order to lend to
customers. They also have substantial fixed assets. i.e. Local branches. The REPCO
bank has more debt equity ratio when compared to the other previous years. These
means they have high capabilities of lending more money to the customers.
 This advances to assets ratio indicates a bank’s aggressiveness in lending which

ultimately results in better profitability. In the year 2017 has declined and again it
increased from 2018 till 2019. Higher ratio of advance/deposits is preferred to a lower
one.
 The Gross NPA lower the ratio, it is good for the bank, as it reflects that more loans are
standard assets, which can be recovered on time. But in REPCO bank it is higher the
ratio this means there is increased more non- performing assets so it is not good for the
bank.
 The Net NPA in the year 2017 has reduced at 0.75 these shows that bank as well
maintained in that year. And again the net non-performing asset has more increased in
2019 as 1.36. This means when NPA occurs, it is not just an interest income loss to the
bank, but a principle loss as well. So it is not good for the banks.
53
 The total advances to total deposits ratios are higher than one for all the years. This
ratio is a measure of banks financial health. For example in the year 2019 the interest
rate increases is 0.75 or 75%. These shows deposits grow at a faster pace than loans
because higher interest rates push investors to invest more money. Conversely when
rates are lower, deposits reduces.
 The business per employee ratios increases randomly. In the year 2019 as the ratio as
11.98 when compared to the previous years. This shows that the revenue per employee
ratio increases. The higher ratio indicates the greater productivity in banks. Banks with
high revenue – per – employee ratios are often profitable.
 REPCO bank shows the fluctuations in the profit per branch ratio by increasing from
0.21 or 21% in 2014-15 to 0.47 or 47% in 2017-18 and again reduces when compared
to the previous year. But overall the year 2015 to 2019 profit per branch ratios
increases. This indicates its efficiency. Better ratio is indicator of good health and
efficiency
 The dividend pay-out ratio has increased from 0.24% in 2014-2015 to 0.27% in 2018-
2019. While comparing 2015 to 2019 the dividend has increased. This means the bank
is performing well and cash flows are improving. There is more room to pay
shareholders higher dividends.
 The return on asset ratio tells how profitable the bank can do with what it has. Whether
if lower a return on asset means that bank is not able to utilize assets efficiently.
Negative ROA implies the bank’s assets are yielding negative return. When compare
2018 to 2019 ROA has increased 6% and thus shows a better capacity in generating
income from banks assets.
 The working ratio indicates how much a bank can earn from its operations net of
operating expenses for every rupee spent on working funds. Repco bank has utilized its
employed working funds better in 2018-2019 as against any other previous four years,
thus the bank is performing well in 2018-2019 compared to previous years.
54
 REPCO bank has shown fluctuations in this ratio by increasing from 0.004% in 2014-
2015 to 0.007% in 2016-2017 and again reduced to 0.005% in 2017-2018. The ratio is
higher in 2016-2017 indicating that the bank has used its assets efficiently to earn profit
compared to other years.
 The ratio is to analyses generating income from interest. REPCO bank maintains a
steady ratio of 0.85% to 0.95% in 2014-15-2018-19. The highest ratio was in 2018-
2019 as 0.93%. When compared to other previous years. Thus it has a greater ability in
generating income from interest.
 REPCO bank maintains a stable proportion of liquid assets in over the years except the
year 2016-2017. It relatively reduced 0.66% in the year of 2016-2017. There is no
more fluctuation in the ratio the bank has maintained a better liquidity position.
 REPCO bank has maintained an adequate liquid asset to meet from deposits. There is
an increasing trend in ratios from 2014-2015 as 3.08% in 2018-2019 as 3.75% except
the one year 2016-2017 as decline 3.00%. In that year the liquid as not maintained
properly. In recent year 2018-19 has maintained a liquid asset.
 REPCO bank had a higher proportion in 2019. Before the recent year deposits has
decreases out of liquid assets. This chart shows the fluctuation over the year of 2015-
2019 randomly.
When decreases that represent the potential to meet deposits out of liquid assets.
55
3.2 SUGGESTIONS:
 REPCO bank can maintain the same capital adequacy and can utilize the capital in
proper way to increase the minimum requirements needed. Then only they can
withstand the financial downturn.
 REPCO bank has to reduce the gross non-performing assets and Net non-performing
assets.
 The NPA has increased in the repco bank that reduces the banks good will. So bank
has to reduce the net NPA
 The bank can increase the income from other sources excluding interest income.
 The bank must improve its liquidity position in all years.
 REPCO bank can utilize the assets in proper way to increase the income from return
on assets.
56
3.3 CONCLUSION:
CAMEL approach is significant to assess the performance, strength and give necessary
suggestions to improve the performance of the banks. In this study the performance of
REPCO bank was analyzed based on five major components of camel analysis. i.e. capital
adequacy, asset quality, management, earnings, and liquidity are analyzed. Thus it is
understood that the five components position of REPCO bank is sound in the study period i.e.
2014-2015 to 2018-2019. Further the bank can make some improvements to achieve the
better position in future years.
57
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60
APPENDIX
61
REPCO BANK BALANCE SHEET AS ON 31.03.2015
As on 31.03.2015 As on 31.03.2014
PARTICULARS (Rs.in cr) (Rs.in cr)
(Audited) (Audited)
Total share capital 799.36 799.36
Equity share capital 799.36 0.00
preference share capital 0.00 0.00
Reserves and surplus 2,126.96 1862.72
Deposits 79,908.94 64860.01
Borrowings 1,715.95 2465.86
Other Liabilities and Provisions 5,243.73 4875.94
Total Liabilities 89,794.94 74,863.89
Assets
Cash and Balance with RBI 5,702.72 3,794.27
Balance with Banks and Money at call 2400.8 2,420.26
Investments 24,249.63 19,524.87
Advances 55,081.89 46,988.91
Fixed Assets 684.34 449.19
Other Assets 1,675.55 1,468.88
Total Assets 89,794.94 74,863.89
Contigent Liabilities 24,507.59 17,499.93
Bills for collection 5,894.71 3,704.70
Book value (Rs) 31.08 27.66
Tier I 6.06 -
Tier II 4.03 -
62
As on 31.03.2016 As on 31.03.2015
(Audited) (Audited)
Total share capital 1,249.36 799.36
preference share capital 700.00 0.00
Reserves and surplus 2,707.69 2,126.96
Deposits 100,221.57 79,908.94
Borrowings 2,062.42 1,715.95
Other Liabilities and Provisions 5,423.14 5,243.73
Assets
Balance with Banks and Money at call 4,264.59 2,400.80
Investments 29,384.78 24,249.63
Advances 68,803.86 55,081.89
Other Assets 1,903.22 1,675.55
Total Assets 111,664.18 89,794.94
Tier I 6.9 6.06
Tier II 5.03 4.03
63

SDFSSS
As on 31.03.2017 As on 31.03.2016
(Audited) (Audited)
Total share capital 1,699.36 1,249.36
preference share capital 1,150.00 700.00
Deposits 122,415.55 100,221.57
Borrowings 6,263.84 2,062.42
Assets
Balance with Banks and Money at call 861.60 4,264.59
Investments 43,521.43 29,384.78
Advances 82,504.53 68,803.86
Other Assets 2,479.15 1,903.22
Total Assets 137,319.50 111,664.18
Bills for collection 8,321.86 6,031,97
Tier I 7.55 6.9
Tier II 5.66 5.03
64
As on 31.03.2018 As on 31.03.2017
(Audited) (Audited)
Deposits 145,277.60 122,415.55
Borrowings 5,474.77 6,263.84
Assets
Cash and Balance with RBI 10404.03 7,242.73
Balance with Banks and Money at call 6,576.41 861.60
Investments 42,927.28 43,521.43
Advances 99,070.81 82,504.53
Other Assets 3,681.05 2,479.15
Total Assets 163,398.45 1,3,319.50
Book value (Rs) 82 65.74
Tier I 8.61 7.55
Tier II 5.1 5.66
65
As on 31.03.2019 As on 31.03.2018
PARTICULAR (Rs.in cr) (Rs.in cr)
(Audited) (Audited)
Deposits 154,003.49 145,277.60
Borrowings 12,901.42 5,474.77
Assets
Balance with Banks and Money at call 5,792.16 6,576.41
Investments 45,771.49 42,927.28
Advances 115,540.01 99,070.81
Other Assets 4,781.66 3,681.05
Total Assets 180,498.40 163,398.45
Book value (Rs) 94.72 82
Tier I 8.09 8.61
Tier II 4.26 5.1

A Study On Camel Approach With Reference To Repco Bank by Sridar. B Register No. 412518631095

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A Study On Camel Approach With Reference To Repco Bank by Sridar. B Register No. 412518631095

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A STUDY ON CAMEL APPROACH WITH REFERENCE TO

Register No. 412518631095

SRI SAI RAM ENGINEERING COLLEGE

FACULTY OF MANAGEMENT SCIENCES

In partial fulfilment of the requirements

For the award of the degree

MASTER OF BUSINESS ADMINISTRATION

CHENNAI – 600 025

Joint General Manager

APPROACH WITH REFERENCE TO REPCO BANK” submitted to the Anna

Date: (B. SRIDAR)

I wish to express my deep sense of gratitude and indebtedness to our Chairman

CHAPTER NO TITLE PAGE NO

I 1.5 Need for the Study 16

TABLE NO CONTENTS PAGE NO

2.1.1 CAPITAL ADEQUACY RATIO 21

2.1.2 DEBT EQUITY RATIO 23

2.1.3 ADVANCE TO ASSET RATIO 24

2.1.4 GROSS NPA RATIO 25

2.1.5 NET NPA RATIO 26

2.1.6 ADVANCE TO DEPOSIT RATIO 27

2.1.7 BUSINESS PER EMPLOYEE RATIO 28

2.1.8 PROFIT PER BRANCH RATIO 29

2.1.9 DIVIDEND PAYOUT RATIO 30

2.1.10 RETURN ON ASSET RATIO 31

2.1.11 WORKING FUND RATIO 32

2.1.12 NET PROFIT ASSET RATIO 33

2.1.13 INTEREST INCOME TO TOTAL INCOME RATIO 34

2.1.14 LIQUID ASSET TO TOTAL ASSET RATIO 35

2.1.15 LIQUID ASSET TO DEMAND DEPOSIT RATIO 37

2.1.16 LIQUID ASSET TO TOTAL DEPOSIT RATIO 38

2.2.1 CORRELATION OUTPUT 40

2.3.1 COMPARATIVE BALANCE SHEET OF REPCO BANK 42

FIGURE CONTENTS PAGE

CAMEL is the supervisory framework consisting of risk-monitoring factors used for

It is the bank capital framework sponsored by the world’s central banks

THREE PILLARS OF BASEL II:

Pillar I- Minimum capital requirements

Pillar II- Supervisory review

Pillar III- Market disclosure

THE AIM OF IMPLEMENTING BASEL II IS:

 Ensuring that capital allocation is more risk sensitive.

1.2 INDUSTRY PROFILE

“ROAD AHEAD” FOR BANKING INDUSTRY

FACTORS PROMOTING GROWTH OF BANKING AND FINANCIAL

GOVERNMENT MEASURES TO STRENGTHEN THE INDIAN

 The government of India is looking to set up a special fund, as a part of national

INVESTMENTS AND DEVELOPMENTS IN THE INDIAN BANKING

1.3 COMPANY PROFILE

REPCO BANK (Repatriates cooperative and finance and development bank) is a

IMPLEMENTATION OF CORE BANKING SOLUTION

LOAN ORIGINATION SYSTEM (LOS)

1.4 REVIEW OF LITERATURE

Shri.Ashish.m.Joshi and Sankaranarayanan (2018) study is to evaluate the relative

Kumarsomaling B. Balikai and Kiran kumar R. Bannigol (2019) banking sector is a

1.5 NEED FOR THE STUDY

1.6 OBJECTIVES OF THE STUDY

 To understand the financial soundness of the banks.

1.7 SCOPE OF THE STUDY

1.8 RESEARCH METHODOLOGY

1.8.2 Data source:

1.8.3 Study Period: