A RESEARCH REPORTON

COMPARATIVE STUDY OF FINANCIAL PERFORMANCE

OF STATE BANK OF INDIA AND BANK OF BARODA

Submitted in partial fulfillment of the requirement of Two

year MASTER OF BUSINESS ADMINISTRATION (MBA)
Session : 2021-2023

Submitted to: Submitted By:

MR SUNIT KUMAR MISHRA REHAN AHMAD SIDDIQUI

SMS, VARANASI MBA 4th Semester

Roll No. 2101060700124

1
DECLARATION

I “REHAN AHMAD SIDDIQUI” declare that the survey project work entitled as “COMPARATIVE
STUDY OF FINANCIAL PERFORMANCE OF STATE BANK OF INDIA AND BANK OF BARODA” is
an authentic record of my own work carried out at “SCHOOL OF MANAGEMENT SCIENCES
VARANASI” as required for the project semester for the award of degree of MBA (MASTERs of
Business Administration), under the guidance of” MR SUNIT KUMAR MISHRA”.

Place:

Date: Signature:

2
ACKNOWLEDGEMENT

I am thankful to many people whose timely help and guidance has helped me to conduct this
research successfully.

I would also like to express my thankfulness to MR SUNIT

KUMAR MISHRA, Faculty of SMS, Varanasi for giving me an opportunity to pursue this project.

I also wish to thank my Director P.N. Jha respondents who were patient enough in giving
answer to the questionnaire.

Finally, I would like to extend my grateful thanks to all our friends and faculty members
of SMS, Varanasi whose assistance has a lot to me personally for the completion of this
research.

REHAN AHMAD SIDDIQUI

MBA 4th Semester

Roll No. 2101060700124

3
Table of contents

Chapter 1: Introduction 07 - 33

1.1 Overview of banking Industry 7

1.2 Company Profile 13
1.3 Research objective 31
1.4 Review of literature 31
1.5 Key Words 32

Chapter 2: Research Methodology 34 – 37

Sampling Design 35

Pilot Study 36

Research Methodology 37

Limitations of the Study 37

Chapter 3: Data Analysis and Interpretation 38 - 81

Chapter 4: Findings, Recommendations and Conclusion 82 - 85

4
 Chapter 5: Appendices 86 – 91

5
 Table of content

Chapter No. Particulars Page no.

Acknowledgement 3
Preface 4
1 Introduction of banking 6-18
2 Company Profile 19-61
State bank of India
Bank of Baroda
3 Research methodology 83-85
4 Financial Analysis 86-96
Ratio analysis
5 Financial comparative 97-104
analysis
6 Findings, suggestions and conclusions 105-112
7 References 113

6
INTRODUCTION OF BANKING

7
 INTRODUCTION OF BANKING

DEFINITION OF BANK

Banking is defined as "accepting deposits from the public for the purpose of lending out or investing
those funds, repayable on demand or in another manner, and withdrawing by cheque, draught or in
another manner."

- Banking Companies (Regulation) Act,1949

ORIGIN OF THE WORD “BANK”:-

According to the definition of banking, it is the practise of "accepting deposits from the public
for the purpose of lending out or investing those funds, repayable on demand or in another
manner, and withdrawing by cheque, draught or in another manner."

ORIGIN OF BANKING :
It can be traced back to the beginning of real history in its most basic form. Recognising the value of
money as a medium of commerce led to the development of banking, which offers a secure location to
store money. This secure location eventually developed into modern commercial banks, which are
financial entities that receive deposits and provide loans.

Banking system in India

India cannot have a strong economy if its financial system is not reliable and efficient.In addition to being hassle-free, India's banking
system ought to be ready to handle any new difficulties brought on by technology and other internal and external variables.
The Indian banking sector has a long history and a long list of notable accomplishments. The most striking aspect is how far it reaches. It
is now not just limited to urban or cosmopolitan Indians. In actuality, the Indian banking system has spread to the most isolated regions

8
of the nation. One of the key drivers of India's development is due to this.

9
  HISTORY OF BANKING IN INDIA

In India, banking dates back to the Vedic era. The shift from numerous lending to
banking is thought to have happened even before Manu, the illustrious Hindu author
who wrote a book on deposits and loans and established regulations on interest rates.
Local bankers were crucial to lending money and funding international trade and
commerce throughout the mogul era.

It was the agency house's turn to conduct banking operations during the time of the East
India Company. The General Bank of India was founded in 1786 and was the first joint
stock bank. The Bank of Hindustan and Bengal Bank were the other to come.
According to reports, The Bank of Hindustan operated till 1906. while the other two fell
short in the interim. The East India Company created its banks during the first part of
the 19th century, including the Bank of Bengal in 1809, the Bank of Bombay in 1840,
and the Bank of Bombay in 1843. These three banks, commonly referred to as the
Presidency banks, were autonomous entities that performed effectively. In 1920, these
three banks merged to form a new bank.

 Following the Swadeshi Movement, several banks in the nation were founded with Indian
management, including the Punjab National Bank Ltd., Bank of India Ltd., Bank of
Baroda Ltd., and Canara Bank Ltd. On July 19, 1969, 14 major banks in the nation were
nationalised, and six more commercial private sector banks were taken over by the
government on April 15, 1980.
Despite being traditional, India's first bank was established in 1786. Three distinct phases may
be identified in the evolution of the Indian financial sector from 1786 to the present. the
following areas: Indian Banks' early years, from 1786 to 1969

The nationalisation of Indian banks before the 1991 financial reforms in India.

With the introduction of Indian Financial & Banking Sector Reforms in 1991, the Indian Banking
System entered a new era.

10
  Phase I

In the year 1786, the General Bank of India was founded. Bengal Bank and Bank of
Hindustan were the following. Presidency Banks were created by the East India
Company in 1809 and were known as Bank of Bengal, Bank of Bombay, and Bank of
Madras.

In 1920, these three banks merged to become Imperial Bank of India, which had
previously been owned by private shareholders, primarily Europeans.

The first bank founded purely by Indians was Allahabad Bank, which was founded in
1865. Punjab National Bank Ltd., with its headquarters in Lahore, was founded in
1894. Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian
Bank, and Bank of Mysore were all founded between 1906 and 1913. Introducing
Reserve Bank of India

The first phase's growth was extremely sluggish, and from 1913 and 1948, banks occasionally failed.
There were roughly 1100 banks, most of which were small. The Banking Companies Act, 1949 was
created by the Indian government to simplify the operations and activities of commercial banks. It was
later amended in 1965 (Act No. 23 of 1965) to become the Banking Regulation Act, 1949. As the
Central Banking Authority, the Reserve Bank of India has broad authority to regulate banking in India.

The public's trust in banks is lower on certain days. Deposit mobilisation was subsequently uneven.
Ahead of it, the postal department's savings bank facility was considerably safer. Additionally, money
was heavily donated.

Phase II

 Following independence, the government made significant progress in

reforming the Indian banking sector. Imperial Bank of India was nationalised in
1955 and provided with substantial financial services, particularly in rural and
semi-urban areas. In order to conduct banking transactions for the Union and
State Governments across the entire nation, it established State Bank of India to
serve as the RBI's chief agent.
11
  Seven banks that were State Bank of India subsidiaries were nationalised in
1960, and a significant nationalisation process was completed on July 19, 1969.
Mrs. Indira Gandhi, who was India's prime minister at the time, made the effort.
The nation's 14 largest commercial banks were taken over.

 In 1980, a second round of nationalisation and banking sector reform in India

included seven additional banks.The following are the steps taken by the
Government of India to Regulate Banking Institutions in the Country: 1949:
Enactment of Banking Regulation Act.
 1955: Nationalization of State Bank of India.
 1959: Nationalization of SBI subsidiaries.

12
  1961: Insurance cover extended to deposits.
 1969: Nationalization of 14 major banks.
 1971: Creation of credit guarantee corporation.
 1975: Creation of regional rural banks.
 1980: Nationalization of seven banks with deposits over 200 crore.

Following the nationalisation of banks, deposits increased by around 800% and advances by about
11,000% at the branches of the public sector bank of India.

The people had unspoken trust and tremendous confidence in the viability of these organisations
because banking was conducted under the clear control of the government.

Phase III

As part of its reforms, this phase has expanded the number of products and services available in the
banking industry. A committee by the name of M Narasimhama was established in 1991 and worked
towards the liberalisation of banking practises under his presidency. Foreign banks and their ATMs are
overrun in the nation. To provide customers with a satisfactory service, efforts are being made. The
introduction of phone banking and online banking. The system as a whole grew quicker and more
convenient. Time is valued more highly than money. India's financial system has shown to be very
resilient. It is safe from any crises brought on by external macroeconomic shocks, unlike other East Asian
nations. This is all a result of a system with flexible exchange rates, the

BANKS IN INDIA

In India, banks are divided into various categories. Each group working in India has its own advantages and
restrictions. Each has a certain target audience. While some of them only work in the rural sector, others do so
in both rural and urban settings. Many even limit their catering to urban areas. Some of the players are from
India, while some are from abroad.

13
This article discusses all of these facts and many more. It is discussed how banks relate to their clients, how
they operate, which banks fall under which categories, and other pertinent facts.

14
The forthcoming foreign banks in India constitute another segment that has been noted. Recently, the
RBI has expressed a desire to work with more foreign banks than it already does. A few more
international banks can now operate in India thanks to this action.

BANKING STRUCTURE IN INDIA

SCHEDULED BANKS IN INDIA

(1) Scheduled Commercial Banks

Public Sector Banks Private Sector Foreign Banks Regional Rural

Banks In India Banks

(26) (25) (29) (95)

 Nationalized  Old Private

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

(2) Scheduled Cooperative Banks

15
 Scheduled Urban Cooperative Banks Scheduled State Cooperative Banks
Public Sector Banks
Banks in the public sector are those that the government owns. The government controls these banks.
In India, 6 additional banks were nationalised in 1980 after the nationalisation of 14 banks in 1969.
Consequently, there were 20 nationalised banks in 1980. There are currently 26 in total.

Indian Public Sector Banks (as of September 26, 2021). Of these 19, six (STATE BANK OF INDORE
ALSO MERGED RECENTLY) are nationalised banks, and one (IDBI Bank) is categorised as an
additional public sector bank. Their top priority is welfare.

Nationalized banks Other SBI & its Associates

Public
Sector
Banks
 Allahabad Bank  State Bank of India
 Andhra Bank
 Bank Of Baroda
 State Bank of Hyderabad
 Bank Of India IDBI

 Bank Of Maharastra (Industrial

 Canara Bank Development

 State Bank of Mysore
Bank Of
 Central Bank Of India
India)Ltd.
 Corporation Bank
 State Bank of Patiala
 Dena Bank
 Indian Bank
 Indian Overseas Bank  State Bank of Travancore
 Oriental Bank
Of Commerce
 Punjab & Sind Bank  State Bank of Bikaner And Jaipur

 Punjab National Bank

16
  Syndicate Bank
 UCO Bank
 Union Bank Of India
 United Bank Of India
 Vijaya Bank (State Bank of Saurastra merged with
SBI in the year 2020 and State Bank
of Indore In 2022)

Private Sector Banks

The private sector owns and operates these banks. numerous banks around the nation, including ICICI
Bank, HDFC Bank, etc. In order to prepare for the portion of the banks he holds, an individual has power
over their banks.

17
Private banking has been a part of Indian culture ever since the country's financial system was
established. IndusInd Bank was the first private bank to open in the Private Sector Banks in India. One of
India's Private Sector Banks with the quickest growth is this one. Private banks in India rate IDBI, which
has developed internationally renowned institutions in India, as the tenth largest development bank in the
world.

Housing Development Finance Corporation Limited was the first private bank in India to gain an in
principle approval from the Reserve Bank of India to open a bank as part of the RBI's liberalisation of the
Indian Banking Industry. It was established as HDFC Bank in August 1994.Private sector banks have
been subdivided into following 2 categories:-

Old Private Sector Banks New Private Sector Banks

 Bank of Rajasthan Ltd.

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

18
 Foreign Banks In India

 ABN AMRO Bank N.V.  HSBC (Hongkong &

 Abu Dhabi Shanghai Banking
Commercial Bank Ltd Corporation)
 American Express Bank  JPMorgan Chase Bank
 Antwerp Diamond Bank  Krung Thai Bank
 Arab Bangladesh Bank  Mashreq Bank
 Bank International  Mizuho Corporate Bank
Indonesia  Oman International Bank
 Bank of America  Shinhan Bank
 Bank of Bahrain & Kuwait  Société Générale
 Bank of Ceylon  Sonali Bank
 Bank of Nova Scotia  Standard Chartered Bank
 Bank of Tokyo  State Bank of Mauritius
Mitsubishi UFJ
 Barclays Bank
 BNP Paribas
 Calyon Bank
 ChinaTrust Commercial
Bank
 Citibank

19
  DBS Bank
 Deutsche Bank

Cooperative banks in India

According to the function given to cooperatives, the requirements they must meet, the quantity of
cooperatives, and the number of offices they operate, cooperative banks are a significant part of the Indian
financial system. Although the cooperative movement began in the West, the significance that these banks
have come to have in India

only occasionally matched elsewhere in the globe. Even today, India's cooperative banks are crucial to
rural lending. Due to the dramatic rise in primary cooperative banks, the business of cooperative banks in
metropolitan regions has also increased phenomenally in recent years.

India's registration of cooperative banks is governed by the Co-operative Societies Act. cooperative banks

Rural Indian banks

Since the beginning of the banking industry in India, rural banking has existed. Back then, rural banks mostly
served the agricultural sector. India's regional rural banks have spread throughout the entire nation, aiding in the
development of the nation.

In India, SBI operates 30 Regional Rural Banks, or RRBs. SBI's rural banks are dispersed across 13 states,
from North East to Himachal Pradesh and Kashmir to Karnataka. There are 2349 (16%) branches of SBI's
Regional Rural Banks across all of India. There are currently 14,475 rural banks in India, according to data
from the
Haryana State Cooperative Apex Bank Limited

The Haryana State Cooperative Apex Bank Ltd., also known as HARCOBANK, is a key player in rural
20
banking and the economic development of the state of Haryana. It has been assisting and financing farmers,
rural artisans, agricultural labourers, business owners, and other individuals in the state, as well as providing
services to its depositors.

NABARD

A regional rural bank is something like the National Bank for Agriculture and Rural Development (NABARD)
in India. It offers, regulates, and provides loans for the growth of rural sectors, primarily agriculture, small
businesses, cottage and village industries, and handicrafts. It also provides funding for rural crafts and other
associated rural economic activities to help integrated rural development. It aids in assuring rural prosperity and
other associated problems.

Bank for Cooperatives in Urban Souharda Sindhanur

SUCO BANK, also known as the Sindhanur Urban Souharda Co-operative Bank, is a pioneer among Indian
rural banks. The great story of our nation's founding inspires and piques the curiosity of all of its young people.

United Bank of India

United Bank of India (UBI) also operates a regional rural bank.

Fact Files of Banks in India

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

21
 The first Bank in Northern India to get ISO 9002 Punjab and Sind
certification for their selected branches. Bank

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

22
The first bank in Kerala's private sector to be designated as a scheduled
bank under the RBI Act in 1946. South Indian Bank

The oldest, biggest, and most successful commercial bank in India

provides the broadest range of domestic, foreign, and NRI goods and State Bank of India
services through its extensive network both within India and abroad.

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

Bank which started as Private Shareholders Banks,mostly European Imperial Bank of

shareholders. India

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

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

23
 The first Indian Commercial Bank which was wholly owned and managed by Central Bank of
Indians. India

INDIAN BANKING INDUSTRY

Assets in the Indian banking sector are expected to increase at an amazing rate and reach $1 trillion USD by
2022. This expansion is influenced by the middle class, an expanding economy, and technological
improvements.

The middle class in the country is estimated to number about 320 million individuals. Rising income levels,
an improved standard of living, and the availability of financial goods all support economic development
and are positive factors for future expansion.
The Indian banking industry is currently undergoing an IT revolution, with a focus on the expansion of retail
and rural banking. In order to introduce new financial goods and services, players are coming to embrace a
more customer-centric mentality. To take advantage of scale-related savings and/or to

24
 STATE BANK OF INDIA

25
 STATE BANK OF INDIA

State Bank of India

Industry :Banks - Public Sector
Incorporation Year 1955
Chairman Pratip Chaudhuri
Managing Director Hemant G Contractor
Company Secretary -
Auditor B M Chatrath & Co/ Kalyaniwala & Mistry
State Bank Bhavan 8th Floor,
Registered Office Madame Cama Road Nariman Point,
Mumbai, 400021, Maharashtra
Telephone 91-22-22883888/22022678
Fax 91-22-22855348
E-mail gm.snb@sbi.co.in
Website http://www.sbi.co.in
Face Value (Rs) 10
BSE Code 500112
BSE Group A
NSE Code SBIN
Bloomberg SBIN IN
Reuters SBI.BO
ISIN Demat INE062A01012
Market Lot 1
Ahmedabad,Chennai,Delhi,Kolkata,London,Mumbai,
Listing
NSE
Financial Year End 03
Book Closure Month May
AGM Month Jun

26
 Datamatics Financial Services, PlotNo-A-16-17 PartB, Cross
Lane MIDC, Marol Andheri (East), Mumbai - 400 093.
Registrar's Name & Address
91-22-28213383/90/66
91-22-28369408

With its headquarters in Mumbai, India, it is the largest Indian banking and financial services corporation (by
turnover and total assets). State ownership of it. The bank can be traced back to British India.

The Bank of Calcutta was established in 1806 and is the oldest commercial bank in the Indian Subcontinent,
having come through the Imperial Bank of India. The Bank of Madras joined with the Bank of Bombay and the
other two presidential banks to establish Imperial Bank of India, which later changed its name to State Bank of
India. The Reserve Bank of India purchased a 60% interest in the Imperial Bank of India, which the Indian
government nationalised in 1955 and renamed the State Bank of India. The government assumed control in
2020.
Through its extensive network of branches in India and abroad, SBI offers a variety of banking
products, including those geared towards non-resident Indians (NRIs). The State Bank Group has
India's largest banking branch network with approximately 16,000 locations. SBI has 57 Zonal
Offices and 14 Local Head Offices spread across the nation's major cities. It also has 130 or so
branches abroad.

SBI is a regional banking titan and one of the biggest financial organisations in the world, with a
$352 billion asset base and $285 billion in deposits. Its market share in deposits and loans among
Indian commercial banks is around 20%. T The 29th most reputable firm in the world is the State
Bank of India.

History of state bank of India:

27
State Bank of India is India's biggest bank and provider of financial services. The Bank provides banking
services to the client. In addition to providing banking services, the Bank also provides a range of financial
services through its subsidiaries, including life insurance, merchant banking, mutual funds, credit cards,
factoring, security trading, pension fund management, and main dealership in the money market.

Retail banking, corporate/wholesale banking, Treasury, and other financial activities are the four main segments
of the Bank. The Treasury segment includes the investment portfolio, derivatives trading, and foreign currency
transactions. The lending activities of the Corporate/ Wholesale Banking division are comprised of the
Corporate Accounts Group, Mid Corporate Accounts Group, and Stressed Assets Management Group. the
sector of retail banking
SBI provides a range of banking products, including those targeted towards NRIs,
through its wide network of branches in India and overseas. With over 16,000 sites,
the State Bank Group has India's largest banking branch network. The State Bank of
India is ranked as the tenth most well-known firm in the world by Forbes. The bank
has 156 overseas locations in 32 different countries. Branches of the parent firm are
located in Colombo, Dhaka, Frankfurt, Hong Kong, Johannesburg, London and its
surrounds, Los Angeles, Male in the Maldives, Muscat, New York, Osaka, Sydney,
and Tokyo. Along with offshore banking facilities in the Bahamas, Bahrain, and
Singapore, they also have representative offices in Bhutan and Cape Town.

In 1955, the State Bank of India was founded.

SBI offers a variety of banking products through its extensive network of branches
in India and abroad, including those geared towards NRIs. The State Bank Group
has India's largest banking branch network with approximately 16,000 locations.
According to Forbes, the State Bank of India is the tenth most well-known
company in the world. The bank operates 156 outposts in 32 distinct nations.
Colombo, Dhaka, Frankfurt, Hong Kong, Johannesburg, London and its
surroundings, Los Angeles, Male in the Maldives, Muscat, New York, Osaka,
Sydney, and Tokyo are among the cities where the main company has branches.
They have representative offices in Bhutan and Cape Town in addition to offshore
28
 banking facilities in the Bahamas, Bahrain, and Singapore.

The State Bank of India was established in 1955, centralising pension processing. The Bank joined together
with Tata Consultancy Services to launch C-Edg Technologies and offer consulting services to the banking,
financial services, and insurance industries. The bank was named "The Most Preferred Bank" in a study carried
out by TV 18 in association with AC Nielsen-ORG Marg.

The Bank also won "The Most Preferred Housing Loan Provider" honours at the 2006 AWAAZ customer
awards.

The Bank received top marks in Business World's 2006–2007 study on client loyalty.
The RBI gave the Government of India their entire stake in the Bank, or 59.73% of the Bank's issued
capital, during the year.

29
 Pvt. Ltd., a joint venture with the French company Societe Generale. They
signed an intent letter to form a joint venture company to do general insurance
business. In addition, they paid cost and sold a 10% equity investment in SBI
Pension Fund Pvt. Ltd, its sole subsidiary, to the company's subsidiaries. The
Bank and the State General Reserve Fund (SGRF) of Oman signed a
Memorandum of Understanding (MoU) for a general purpose private equity
fund in October 2020.

State Bank of Saurashtra (SBS), the Bank's wholly owned subsidiary, merged
with the Bank during the year with effect from August 13, 2020. With
Insurance Australia Group, they entered into a joint venture arrangement to do
general insurance operations. A joint venture agreement was also struck with
Macquarie Capital Group, Australia, and
A general purpose private equity fund will be established by the Sultanate of Oman's General Reserve
Fund (SGRF), with an initial corpus of USD 100 million and an additional USD 1.5 billion in
expandable capital.

The Bank merged 470 branches of the former State Bank of Indore during the year and added 576 new
branches. Additionally, they added 14 new overseas locations during the year, bringing the total to 156.
The Bank introduced their 'Green Channel Counter' at a few locations across the nation on July 1, 2022.
The Bank began limited operations in the general insurance sector in April 2022 for Corporate and Mid
Corporate customers situated in Mumbai, and in July 2022 it expanded to six more key cities. The Bank
launched in the retail sector

30
With effect from July 29, 2023, State Bank of India will receive a transfer of and ownership interest in the
State Bank of India Commercial & International venture.

- Signs two significant agreements with its officers' associations and employee unions. The contract states that
SBI employees will not be permitted to interfere with the bank's computerization initiatives.

SBI and AirTel introduce a mobility service for Rs 299

- Mr. Arun Singh is nominated by the central government to serve as a director on the bank's board beginning
on July 25, 2003, for a three-year term.

- A 0 million, 5-year syndicated loan agreement between State Bank of India and ANZ Investment Bank has
been finalised for Indian Petrochemicals Corporation (IPCL).

- Establishes a cheque clearing centre in Kolkata

- Signs agreement for co-branded tractor with Mahindra & Mahindra (M&M)

- Unveils online ticket reservation system 'e-Rail'

- Reserve Bank of India nominates Dr Rakesh Mohan,

Deputy Governor, RBI, on the Central Board of the bank

- Appoints Mr C. Narasimhan as the Chief General Manager of the SBI's Kerala Circle

-Unveils Credit Khazana, retail bank loan product, to target the bank's housing loan holders of
accounts

31
 - MRO-TEK Ltd has received a Rs 15 crore contract from State Bank of India to supply 2 Mbps
and 64 Kbps high-end leased line modems for SBI to connect over 800 branches across the nation.

-SBI and LIC work together to approve long-term investment proposals for LIC

the first batch of 54 garment plants at the 65-acre special apparel park, and purchase machinery.

-The bank and TVS Motor Company have a partnership to fund loans for two-wheelers.

-Appointed with Apollo Hospital Enterprise to provide financing for hospital care.

-The corporation introduced the ability to replenish mobile pre-paid cards at its ATMs.

-Attached to HDFC and ICICI Bank to share ATM networks

2003-Bank and ICICI Bank both have a memorandum of understanding.

2004
-Former President of the KCCI is proposed for the SBI Bangalore Local Board

-State Bank of India has stated that Dr. Rakesh Mohan has been replaced on the State Bank of India's Central
Board by Shri A V Sardesai, Executive Director, Reserve Bank of India.

-In Ernakulam, SBI opens an ATM counter

-State Bank of India (SBI) receives an in-principle licence from the Bahrain Monetary Agency (BMA).

-In Hyderabad, SBI installs India's first drive-through ATM.

32
-State Bank of India and HDFC Bank have partnered to share ATM networks, which will go into operation
on February 3 of this year.

33
2004

-SBI opens a new location in Manjeri

-Bank received special recognition for funding a women's self-help organisation.

- SBI introduces a floating ATM

-On February 11, 2004, State Bank of India appointed six new Deputy Managing Directors. The newly appointed DMDs are Mr. T.S. Bhattacharya, CGM, Product Development and Marketing, Mr. M. M. Lateef, Managing
Director, SBI Gilts, Mr. Yogesh Agarwal, CGM, Chandigarh, Mr. Krishnamurthy, CGM, Madras LHO, Mr. R. Ramanathan, CGM, Technology, and Mr. Vijay Anand, CGM, Corporate Account group. These high-level
appointments come after Mr. Chandan Bhattacharya was named the bank's new managing director in December.

GAIL contracts with SBI for an e-banking system.

-SBI and Visa collaborate on a travel card

-SBI signs arrangements to share ATMs with HDFC Bank and UTI Bank.

-Joins hands with VST Tillers to launch SBI-VST Shakti, a new

loan scheme for farm mechanisation programme

-Unveils Vishwa Yatra foreign travel card, a prepaid card which

offers the traveller a convenient and secure way to carry cash

-Ties up with Same Deutz-Fahr India for tractor financing

-In ally with Sikkim govt to beef up SMEs

-The government has chosen State Bank of India (SBI) for

channelising government credit to other countries which runs into
billions of
dollar

34
-SBI opens MICR cheque processing center

-Signs MoU with HMT Ltd. for financing their tractors

-State Bank of India deploys Flexcube as core banking solution

at Frankfurt

-Mr Ashok K. Kini appointed as new Managing Director of State Bank

of India with effect from April 1, 2004 to December 31, 2005

-SBI unveils Foreign Travel card in Orissa

-ICICI Bank, SBI, LIC in pact for Rs 20,000-cr projects

-Reliance Info in ATM pact with SBI

-State Bank of India, Bangalore Circle, has announced its tie-up with
New India Assurance Company Ltd (NIAC), for distribution of NIAC's
general insurance products in Karnataka

- SBI unveils new credit card in Ahmedabad

-State Bank of India joined the billion dollar club

-THE State Bank of India opened its 236th branch in the State
at Tripunithura on June 16

-SBI inaugurates first Internet shoppe in Kochi

-State Bank of India has opened a fully computerised branch at

Karunagappally in Kollam district

35
-L&T-John Deere Private Ltd has signed a memorandum of
understanding (MoU) with State Bank of India for tractor finance

-Buys 10% stake in Multi Commodity Exchange of India Ltd.

(MCDEX) for Rs 2.1 crore

-SBI join hands with Hero Honda to unveil co-branded credit card

-State Bank of India launched its first mobile ATM for increasing
the banking convenience of its customers

-State Bank of India has signed a Memorandum Of Understanding (MOU)

with the Societe Generale Asset Management of France (SGAM) for
inducting Societe Generale Asset Management as a stake holding

36
partner for SBI's mutual fund arm, SBI Fund Management Private
Ltd (SBIFMPL)

-State Bank of India, (SBI) with a view to expand the ambit of its
educational loan schemes, has unveiled a unique educational loan
scheme, christened Nursing Plus, for the nursing students of the
country

-SBI forges alliance with Hero Honda

-SBI offers new scheme`School Plus' for schools

-SBI Card has launched 'Instant Card' offering customers in need

of instant credit opportunity. With this, the customers will get an
opportunity to get ready to use credit card within a few hours of
filing in their application form

-SBI selects Finacle for international ops

-SBI enters ATM tie up with Andhra Bank

-SBI join hands with LIC for funding infrastructure projects

-Tata Motors on December 7, 2004, signs an MoU with State Bank of

India (SBI)

-SBI partners with Eicher Motors on December 27,

2004 2005
-Raj Travels joins hands with SBI for travel loans

-SBI opens branch at Vadakara

37
-SBI join hands with Apollo Health to offer loans

-SBI rolls out new loan scheme

-SBI opens first branch in Lakshadweep island of Kavaratti

-SBI enters into agreement for bilateral sharing of ATMs with PNB
on May 10, 2005

-SBI signs MOU with Corporation Bank for ATM sharing

-State Bank of India and 8 associate banks have entered into an

38
agreement with Bharat Petroleum Corporation Ltd (BPCL) for
enhancing card usage at fuel stations

-SBI launches new mortgage loan scheme for traders

-SBI launches SBI card in Madurai

-SBI inaugurates RBO in Thrissur

-SBI signed a memorandum of understanding with Small Industries

Development Bank of India for co-financing small and medium
enterprises in Andhra Pradesh, Tamil Nadu, Uttar Pradesh, Jammu
& Kashmir, Jharkhand, Delhi and Bihar

-State Bank of India and Crisil have signed a memorandum of

understanding under which latter will assign ratings to small-scale
industries that are borrowers of SBI

-NSIC join hands with SBI to offer credit to

SSI 2006
-SBI teams up with Nihilent to unveil feedback system

-Bhatt to become SBI's new MD

-State Bank of India (SBI) has informed that Shri. Yogesh Agarwal
has been appointed as Managing Director on the Board of the Bank
with effect from October 10, 2006 to the June 30, 2022

2019

-State Bank of India (SBI) has appointed Shri. S K Bhattacharya as

Managing Director on the Board of the Bank with effect from
39
October 08, 2019 to the October 31, 2022, as per the Notification
dated October 08, 2019, by the Government of India.

- The State Bank of India (SBI) has become the first foreign bank to
set up a branch in the Israel's diamond exchange. Besides
diamonds, they also see huge potential in telecommunications, hi-
tech, chemicals, textiles, agriculture and water management, food
processing, pharma and health care.

2020

-State Bank of India (SBI) has informed that the Government of India

40
in pursuance of clause (e) of Section 19 of the State Bank of India
Act, 1955 (23 of 1955) has nominated Shri. Arun Ramanathan,
Secretary, Ministry of Finance, Department of Financial Services,
New Delhi as a Director on the Central Board of State Bank of India
with effect from January 18, 2020, vice Shri. Vinod Rai.

-State Bank of India (SBI) has informed that the Central

Government, in consultation with the Reserve Bank of India and in
pursuance of clause (d) of Section 19 of the State Bank of India Act,
1955 (23 of 1955), has nominated Dr. (Mrs.) Vasantha Bharucha as a
part-time non-official Director on the Central Board of State Bank of
India for a period of three years with effect from February 25, 2020,
vice Shri Piyush Goel.

- State Bank of India (SBI) has informed that the Central

Government, in consultation with the Reserve Bank of India and in
pursuance of clause (d) of Section 19 of the State Bank of India Act,
1955 (23 of 1955), has nominated Dr. Rajiv Kumar as part-time non-
official director on the Central Board of Directors of State Bank of
India for
a period of three years with effect from September 08, 2020 or
until further orders, whichever is earlier.

- State Bank of India (SBI) has signed a Joint Venture Agreement with
Insurance Australia Group to form a Joint Venture Company which
will be engaged in General Insurance business in India.

- State Bank of India has rolled out a micro insurance scheme

'Grameen Shakti', for its Self Help Group (SHG) members. The product
was launched on Nov 26 at the Tamil Nadu Agricultural University.
The bank is hopeful to cover at least five lakh SHG members by
December 31.
41
-The company has issued rights in the ratio of 1:5 at a premium
of Rs.1580/- Per Share.

2021

- State Bank of India yesterday slashed its benchmark lending rate by

half a percentage point to 11.75 per cent. The Benchmark Prime Lending
Rate (BPLR) was revised down by 50 basis points with effect from June
29, SBI informed the Bombay Stock Exchange. This move would
benefit home, car and corporate loan customers

- State Bank of India on June 30 launched two new home loan products
called as SBI Easy Home Loan and SBI Advantage Home Loan, with
zero processing fees for both waived off till September 30. While SBI
Easy

42
Home is for loans amount up to Rs 30-lakh while the SBI Advantage
Home is for loans above Rs 30-lakh, a press release issued here said.

- State Bank of India, entered into an agreement with the

government of Gujarat to create a fund of Rs 5,000 crore for
investing in equity of infrastructure projects.

2022

- State Bank of India, with a debit card base of over 70 million,

comprising SBI Cash Plus, SBI Gold Debit Card and SBI Yuva Card,
has
added chip and PIN-based Platinum Debit Card to its bouquet on March 26.

- Mr Arun Kumar Agarwal has taken over charge as General Manager

at State Bank of India, Kerala Circle. Until now, he has been General
Manager at the Lucknow Circle of the bank. Mr Agarwal is Certified
Associate of Indian Institute of Bankers and joined State Bank of
India as a Probationary Officer in 1977. An expert in credit and
foreign exchange, he has held several assignments ranging from
Branch Manager to Regional Manager in the Patna and Delhi circles.
He also served in the bank's foreign department at Kolkata handling
investment of the FCNB portfolio, derivatives and correspondent
relations. He has headed the Pune Module of the bank and has also
served as the Deputy General Manager and Business Head for Network-1
of the Mumbai Circle.

- State Bank of India (SBI) has signed a pact with Unique

Identification Authority of India (UIDAI) to work as a registrar for
the UID registration of residents. It has become the first bank to
take up registration work for the UIDAI project. As a registrar,
SBI will capture through empanelled enrolment agencies, the
43
biometric characters such as finger prints, iris and so on and send
the information to UIDAI.

BALANCE SHEET FOR THE YEAR ENDING ON MARCH 2019-2023

44
 2019 2020 2021 2022 2023
CAPITAL AND LIABILITIES
Total share capital 526.30 631.47 634.88 634.88 635.00
Equity share capital 526.30 631.47 634.88 634.88 635.00
Share application money 0.00 0.00 0.00 0.00 0.00
Preference share capital 0.00 0.00 0.00 0.00 0.00
Reserves 30772.26 48401.09 57312.82 65314.32 64351.04
Revaluation reserves 0.00 0.00 0.00 0.00 0.00
Net worth 31298.56 49032.66 57947.70 65949.20 64986.04
Deposits 435521.09 537403.94 742073.13 804116.23 933932.81
Borrowings 39703.34 51727.41 53713.68 103011.60 119568.96
Total debt 475224.43 589131.35 795786.81 907127.83 1053501.77
Other liabilities and provisions 60042.26 83362.30 110697.57 80336.70 105248.39
Total liabilities 566565.25 721526.31 964432.08 1053413.73 1223736.20

2019 2020 2021 2022 2023

ASSETS
Cash and balances with RBI 29,076.43 51534.62 55546.17 61290.87 94395.50
Balance with banks, money at call
22892.27 15931.72 48857.63 34892.98 28478.65
Advances 337336.49 416768.20 542503.20 631914.15 756719.45
Investments 149148.88 189501.27 275953.96 285790.07 295600.57
 block
Gross Net block= gross block – depreciation
13189.28 Net block = fixed
11831.63 assets
10403.03 11831.63 13189.28
Accumulated depreciation 8757.33 7713.90 6828.65 7713.90 8757.33
PROFIT AND LOSS ACCOUNT OF STATE BANK OF INDIA
Fixed Assets 4431.95 4117.73 3574.41 4117.73 4431.95
FOR
Capital work in THE ENDING ON MARCH
progress 332.23 2019-2023
295.18 263.44 295.18 332.23
Other assets 43777.85
2019 35112.76
2020 37733.272021 35112.76
2022 43777.85
2023
Income:
Total assets 566565.25 721526.31 964432.08 1053413.74 1223736.20
Interest earned 39491.03 48950.31 63788.43 70993.92 81394.36
Contingent
Other incomeliabilities 585294.50
7446.76 429917.37
9398.43614603.47 429917.37
12691.35 585294.50
14968.15 14935.09
Bills for collection 205092.29 166449.04 152964.06 166449.04 205092.29
Total income 46937.79 58348.74 76479.78 85962.07 96329.45
Book value 1023.40 1038.76 912.73 1038.76 1023.40
Expenditure:
EPS expended
Interest 86.29 23436.82 106.5631929.08
143.67 144.3747322.48
42915.29 116.07
48867.96
Operating expenses 13251.78 14609.55 18123.66 24941.01 31430.88
Total expenses 42396.48 51619.62 67358.55 76796.02 88959.12
Other provision and contingencies 5707.88 5080.99 6319.60 4532.53 8660.28
Net profit 4541.31 6729.12 9121.23 9166.05 7370.37

44
Extraordinary items 0.00 0.00 0.00 0.00 0.00
Profit B/F 0.34 0.34 0.34 0.34 0.34
Total 4541.65 6729.46 9121.57 9166.39 7370.69
Preference dividend 0.00 0.00 0.00 0.00 0.00
Equity dividend 736.82 1357.66 1841.15 1904.65 1905.00
Corporate dividend tax 125.22 165.87 248.03 236.76 246.52
Per share data:
EPS 86.29 106.56 143.67 144.37 116.07
Equity dividend (%) 140.00 215.00 290.00 300.00 300.00
Book value 594.69 776.48 912.73 1038.76 1023.40
Appropriations
Transfer to statutory reserve 3682.15 5205.69 6725.15 6495.14 2488.96
Transfer to other reserve -2.88 -0.10 306.90 529.50 2729.87
Proposed dividend/ transfer to govt. 862.04 1523.53 2089.18 2141.41 2151.52
Balance C/F to balance sheet 0.34 0.34 0.34 0.34 0.34
Total 4514.65 6729.46 9121.57 9166.39 7370.69
SUSTAINABLE EARNINGS OF STATE BANK OF INDIA:

45
 202303 202203 202103 202003 201903
(12) (12) (12) (12) (12)
INCOME :

Total 97218.96 85962.07 76482.74 58437.42 44671.37

II. Expenditure

Total 88954.44 76796.02 67361.51 51708.3 40130.06

Fringe Benefit tax 0 0 142 105 88.5

Deferred Tax 976.82 -1407.75 -1055.1 -219.43 -19.83
Reported Net Profit 8264.52 9166.05 9121.23 6729.12 4541.31
Extraordinary Items -10.23 -5.83 -1.71 7 4.52
Adjusted Net Profit 8274.75 9171.88 9122.94 6722.12 4536.79

average of adjusted Net Profit 2021,2022 and

2023
8856.52333

rounding off
8857

Standard deviation : 504.33

Rounding off 504

CRAR%

202303 202203 202103

CRAR(%)
Year End 202303 202203 202103
46
 CRAR - Tier I (%) 7.77 9.45 9.38
CRAR - Tier II (%) 4.21 3.94 4.87
Total CRAR (%) 11.98 13.39 14.25

Total
CRAR

47
 (%)
2021 14.25
year 2022 13.39
2023 11.98

14.5 14.25
14
13.5 13.39

13
12.5
11.98
12 Total CRAR (%)

11.5
11
10.5

202 21009
2021 22002120
2022 20220311
2023
year

RATIO ANALYSIS:

CURRENT RATIO:

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

higher the ratio, the more liquid the company is. Current ratio is equal to current assets
divided by current liabilities. If the current assets of a company are more than twice the
current liabilities, then that company is generally considered to have good short-term
financial strength. If current liabilities exceed current assets, then the company may have
problems meeting its short-term obligations.

48
CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITY

49
 LIQUID RATIO:

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

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

Quick Ratio = Total Quick Assets

Total Current Liabilities

2019 2020 2021 2022 2023

50
Quick Assets = Total Current Assets – Inventory

Year Ratio
2019 6.52
2020 6.15
2021 5.74
2022 9.07
2023 8.50

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

201 19
2019 2022 0
2020 20231
2021 202 42
2022 20523
2023

EARNING PER SHARE:

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

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

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

No. of Equity shares

51
The earning per share of the company helps in determining the market price of the equity shares
of the company. A comparison of earning per share of the company with another will also help
in deciding whether the equity share capital is being effectively used or not. It also helps in
estimating the company’s capacity to pay dividend to its equity shareholders.

52
Year Ratio

2019 86.29

2020 106.56

2021 143.67

2022 144.37

2023 116.07

Ratio
160 143.67144.37
140
116.07
120 106.56
100 86.29
80
60 Ratio
40

20
0

202019
119 2020
20220 2021
20321 2022
24022 2023
20523

DIVIDEND PER SHARE :

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

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

53
the company.

Dividend Per Share = Dividend Paid To Equity Shareholders

54
No. Of Equity Shares

dividend
per
share

2019 14
year 2020 21.5
2021 29
2022 30
2023 30

29 30 30

21.5

35
14
30

25

20

15 dividend per share

20192 0 0 20 09
10 2 0 1 20202 0 0 2021
20 2 0 202 1
22022
2 2
010 22023
20 2 3
0

5 7 8 20 11
9
0 year

NET PROFIT RATIO:

55
This ratio indicates the Net margin on a sale of Rs.100. It is calculated as follows:

Net Profit Ratio = Net Profit X 100

Net Sales

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

56
operational efficiency of the business. The ratio is thus on effective measure to check
the profitability of business.

net
profit
ratio

2019 10.12
year 2020 11.65
2021 12.03
2022 10.54
2023 8.55

14
11.65 12.03
12
10.12 10.54
10
8.55
8

6 net profit ratio

4

0
20007192
22019 2002008202
2020 21009
2021 20222010
2022 20232023
2011
year

RETURN ON NET WORTH:

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

57
Return On Net Worth = Net Profit After Interest And Tax x 100

58
 Shareholder’s Funds

return on
shareholder's

2019 14.5
year 2020 13.72
2021 15.74
2022 13.89
18 2023 12.71
16
14
12
10
8
6
4 15.74
2 return on shareholder's
14.5 13.89
0
13.72

12.71

2 0 0 2020
2019 2 0 0 2 2021
0 0 2 0 2022
2 0 1 2023
2 0 1 20 2 0 20 2 1 20 2 2 2 0 2

7 8 9 10 1
9 3

year

DEBT- EQUITY RATIO:

59
The Debt-Equity ratio is calculated to find out the long-term financial position of the firm. This
ratio indicates the relationship between long-term debts and shareholder’s funds. The soundness
of long-term financial policies of a firm can be determined with the help of this ratio. It helps to
assess the soundness of long-term financial policies of a business. It also helps to determine the
relative stakes of outsiders and shareholders. Long-term creditors can assess the security of their
funds in a business. It indicates to what extent a firm depends upon lenders to meet its long-term
financial requirements. A low Debt-Equity ratio is considered better from the point of view of
creditors.

60
 Total
Debt to
Owners
Fund

2019 13.92
year 2020 10.96
2021 12.81
2022 12.19
2023 14.37

Total Debt to Owners Fund

16 14.37
13.92
14 12.81
12 12.19
10.96
10
8
6
4 Total Debt to Owners
2 Fund
0

2007
2019 2008 2009 2010 2011
2019 2020
2020 2021
2021 2022 2022 2023
2023
year

FIXED ASSETS TURNOVER RATIO:

It is also called as Sales to Fixed Assets Ratio. It measures the efficient use of fixed assets.
This ratio is a measure of efficient use of fixed assets. it is calculated as:

Fixed Assets Turnover Ratio = Cost of goods sold or Sales

Net Fixed Assets

61
It measures the efficiency and profit earning capacity of the business. Higher the ratio, greater
is the intensive utilization of fixed assets and a lower ratio shows under utilization of the fixed
assets. This ratio has a special importance for manufacturing concerns where investment in fixed
assets, is very high and the profitability is significantly dependent on the utilization of these
assets.

62
 assets
turnover
ratio

2019 5.44
year 2020 6.32
2021 7.2
2022 7.26
2023 7.24

7.2 7.26 7.24

6.32

5.44

8
7
6
5
4
3

2 0 0 2 0 08 2 009 2010 20 assets turnover ratio

2019 20 2 0
2 0 1 2020 2 1
2021 22 2022202 2023
3
2
7 11
1
9 2020
0

year

CREDIT-DEPOSIT RATIO:

This ratio is very important to assess the credit performance of the bank. The ratio shows the
relationship between the amount of deposit generated by the bank as well as their deployment
63
towards disbursement of loan and advances. Higher credit deposit ratio shows overall good
efficiency and performance of any banking institution.

Credits
Credit Deposit Ratio  100

Deposits

Credit means disbursement of advances

Deposit mean sum of fixed deposit,

64
Saving deposit and current deposit.

credit
deposit
ratio

2019 73.44
year 2020 77.51
2021 74.97
2022 75.96
2023 79.9

82
79.9
80

78 77.51

75.96
76 74.97
credit deposit ratio
74 73.44

72

70
2019 920220008202021
22001072020 220109202222022
010 20222023
0311
year

CASH DEPOSIT RATIO :

cash
deposit
ratio

2019 6.22

65
YEAR 2020 8.29
2021 8.37
2022 7.56
2023 8.96

66
 10
8.96
9 8.37
8.29
8 7.56
7 6.22
6
5
4
3 cash deposit ratio
2
1
0

20192020202120222023
2007 2008 2009 2010 2011
YEAR

CAPITAL TURNOVER RATIO :

Income / capital employed

CAPITAL
TURNOVER
RATIO

2019 8.46
YEAR 2020 8.96
2021 8.99
2022 8.62
2023 8.48

67
 9.1
9 8.96 8.99
8.9
8.8
8.7
8.6
8.62
8.5
8.4 8.48
8.46 CAPITAL TURNOVER
8.3
RATIO
8.2
8.1

20192020202120222023
2007 2008 2009 2010 2011
YEAR

Total assets turnover ratio:

total
assets
turnover
ratio

2019 0.08
year 2020 0.09
2021 0.09
2022 0.09
2023 0.08

68
 0.09 0.09 0.09

0.092
0.09
0.088
0.086
0.084
0.082 0.08 0.08
0.08
0.078
0.076 total assets turnover ratio
0.074

2019 2020 2021 2022 2023

2007 2008 2009 2010 2011
year

PRICE- EARNING RATIO:

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

Price
Earning
(P/E)

2019 11.83
Year 2020 15.38
2021 7.63
2022 14.78
2023 21.92

69
 25
21.92

20
15.38 14.78
15
11.83

10 Price Earning (P/E)

7.63

0
2019202020212022 2023
2007 2008 2009 2010 2023
Year

Price to Book Value:

Market Value of Security/ book value of shares

Price to
Book Value
( P/BV)

2019 1.67
year 2020 2.06
2021 1.17
2022 2
2023 2.7

70
 3
2.7

2.5
2.06 2
2
1.67
1.5
1.17 Price to Book Value (
1 P/BV)

0.5

2019202020212022 2023
2007 2008 2009 2010 2011
year

Enterprise Value / EBIDTA

EV/EBIDTA

2019 15.64
year 2020 14.46
2021 13.64
2022 15.33
2023 17.07

EV/EBIDTA
18 17.07
16 15.64 15.33
14.46
14 13.64
12
10
8
6
4 EV/EBIDTA
2
0
71
201920192020
2007 22000820 2021
220020192022022
22010 2023
20232011
year
BANK OF BARODA

72
INTRODUCTION

Bank of Baroda (BoB) (BSE: 532134) (Hindi: बक ऑफ़ बड़ौदा) is the third largest bank in India,

after the State Bank of India and the Punjab National Bank and ahead of ICICI Bank.[3] BoB is
ranked 763 in Forbes Global 2000 list. BoB has total assets in excess of Rs. 3.58 lakh crores, or
Rs. 3,583 billion, a network of over 3,409 branches and offices, and about 1,657 ATMs. It plans
to open 400 new branches in the coming year. It offers a wide range of banking products and
financial services to corporate and retail customers through a variety of delivery channels and
through its specialized subsidiaries and affiliates in the areas of investment banking, credit
cards and asset management. Its total business was Rs. 5,452 billion as of June 30.[4]

As of August 2022, the bank has 78 branches abroad and by the end of FY11 this number
should climb to 90. In 2022, BOB opened a branch in Auckland, New Zealand, and its tenth
branch in the United Kingdom. The bank also plans to open five branches in Africa. Besides
branches, BoB plans to open three outlets in the Persian Gulf region that will consist of ATMs
with a couple of people.

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

BALANCE SHEET OF BANK OF BARODA

2019 2020 2021 2022 2023

Total Share Capital 365.53 365.53 365.53 365.53 392.81

Equity Share Capital 365.53 365.53 365.53 365.53 392.81

Share Application Money 0 0 0 0 0

Preference Share Capital 0 0 0 0 0

Reserves 8284.41 10,678.40 12,470.01 14,740.86 20,600.30

Revaluation Reserves 0 0 0 0 0

73
 Net Worth 8649.94 11,043.93 12,835.54 15,106.39 20,993.11

Deposits 124915.98 152,034.13 192,396.95 241,044.26 305,439.48

Borrowings 1142.56 3,927.05 5,636.09 13,350.09 22,307.85

Total Debt 126058.54 155,961.18 198,033.04 254,394.35 327,747.33

Other Liabilities & Provisions 8437.70 12,594.41 16,538.15 8,815.97 9,656.73

Total Liabilities 143146.18 179,599.52 227,406.73 278,316.71 358,397.17

2019 2020 2021 2022 2023

Assets

Cash & Balances with RBI 6413.52 9,369.72 10,596.34 13,539.97 19,868.18
Balance with Banks, Money
at Call 11866.85 12,929.56 13490.77 21,927.09 30,065.89

Advances 83620.87 106,701.320 143985.90 175,035.29 228,676.36

Investments 34943.63 43,870.07 52445.88 61,182.38 71,260.63

74
 Gross Block 2244.62 3,787.14 3954.13 4,266.60 4,548.16

Accumulated Depreciation 1155.81 1,360.14 1644.41 1,981.84 2,248.44

Net Block 1088.81 2427.00 2309.72 2,284.76 2,299.72

Capital Work In Progress 0 0 0 0 0

Other Assets 5212.5 4301.83 4578.12 4,347.22 6,226.40

Total Assets 143146.18 179599.5 227406.73 278,316.71 358,397.180

Contingent Liabilities 54999.86 75364.33 64745.82 77,997.01 112,272.64

Bills for collection 12976.53 15105.51 22584.64 27,949.60 33,735.67

Book Value (Rs) 237.46 303.18 352.37 414.71 536.16

EPS 28.18 39.41 61.14 83.96 108.33

PROFIT AND LOSS OF BANK OF BARODA

PROFIT & LOSS OF BANK

OF BARODA
IN RS.
CR.
2019 2020 2021 2022 2023
Income:
9,212.64 11,813.5 15,091.6 16,698.3 21,885.9
Interest earned
Other income 1,381.79 2,051.04 2,757.66 2,806.36 2,809.19
Total income 10,594.4 13,864.5 17,849.2 19,504.7 24,695.1
Expenditure:
Interest expended 5,426.56 7,901.67 9,968.17 10,758.9 13,083.7
Operating expenses 2,771.45 3,370.27 3,844.66 4,711.23 5,669.88
Other provision and contingencies 1,369.95 1,157.05 1,809.20 976.28 1,699.88
Total expenses 9,568.0 12,429.0 15,622.0 16,446.4 20,453.4

Net profit 1,026.46 1,435.52 2,227.20 3,058.33 4,241.68

75
Extraordinary items 0 0 0 0 0
Profit B/F 0 0 0 0 0
Total 1,026.46 1,435.52 2,227.20 3,058.33 4,241.68

Preference dividend 0 0 0 0 0
Equity dividend 252.46 340.94 383.56 639.26 753.35
Corporate dividend tax 0 0 0 0 0
Per share data:
EPS 28.18 39.41 61.14 83.96 108.33
Equity dividend (%) 60 80 90 150 165

76
Book value 237.46 303.18 352.37 414.71 536.16
Appropriations
Transfer to statutory reserve 271.5 444.23 1,136.23 1,162.07 1,387.87
Transfer to other reserve 502.5 650.35 707.41 1,257.00 2,100.46
Proposed dividend/ transfer to govt. 252.46 340.94 383.56 639.26 753.35
Balance C/F to balance sheet 0 0 0 0 0

Total 1,026.46 1,435.52 2,227.20 3,058.33 4,241.68

RATIO ANALYSIS OF BANK OF BARODA:

Current ratio: CURRENT ASSETS/ CURRENT LIABILITIES

Current
Ratio

2019 0.04
year 2020 0.03
2021 0.02
2022 0.02
2023 0.02

Current Ratio
0.045 0.04
0.04
0.035
0.03 0.03
0.025
0.02 0.02 0.02 0.02
0.015
0.01 Current Ratio
0.005
0

202007192
2019 202020020082021
20220109
202222022
010 202023
220311
year
77
QUICK RATIO:
Quick
Ratio

2019 11.29
year 2020 9.56
2021 9.62
2022 21.88
2023 26.38

2007 2008 2009 2010 2011

year

Quick Ratio
30
26.38
25 21.88
20

15 11.29
9.56 9.62 Quick Ratio
10

5
0

20192020 2021 2022 2023

Earnings
78
 Per
Share

2019 28.18
year 2020 39.41
2021 61.14
2022 83.96
2023 108.33

79
 Earnings Per Share
120 108.33

100
83.96
80
61.14
60
39.41 Earnings Per Share
40 28.18
20

0
2007 2008 2009 2010 2011
2019202020212022 2023
year

Total Debt to
Owners Fund

2019 14.44
year 2020 13.77
2021 14.99
2022 15.96
2023 14.55

Total Debt to Owners Fund

16.5
15.96
16
15.5
14.99
15
14.5 14.44 14.55
14 2007 2008 2009 2010 2011
13.77 Total Debt to Owners
13.5
year Fund
13
12.5

80
20192020202120222023
 Cash Deposit
Ratio

2019 4.46
year 2020 5.7
2021 5.8
2022 5.57
2023 6.11

Cash Deposit Ratio

7
6.11
6 5.7 5.8 5.57

5 4.46
4

3
Cash Deposit Ratio
2 2007 2008 2009 2010 2011
1
year
0

2019202020212022 2023

Credit
Deposit Ratio

2019 65.67
year 2020 68.72
2021 72.78
2022 73.6
2023 73.87

81
82
 Credit Deposit Ratio
76
74 73.6 73.87
72.78
72
70
68 68.72
66
64 65.67
62 Credit Deposit Ratio
60

2007 2008 2009 2010 2011

20192020202120222023
year

Asset
Turnover
Ratio

2019 4.25
year 2020 3.47
2021 4.2
2022 4.48
2023 5.25

Asset Turnover Ratio

6 5.25

5 4.48
4.25 4.2
4 3.47

3 2007 2008 2009 2010 2011

year Asset Turnover Ratio
2
1
83
0
2019202020212022 2023
 Total Assets
Turnover Ratios

2019 0.07
Year 2020 0.08
2021 0.08
2022 0.08
2023 0.08
Total Assets Turnover Ratios
0.082
0.08
0.078
0.076
0.074
0.072
0.07 Total Assets Turnover
0.068 Ratios
0.066 0.08 0.08 0.08 0.08
0.064

2007 2008 2009 2010 2011

year
0.07

2019 2020 2021 2022 2023

Total Income /
Capital
Employed(%)

84
 2019 7.83
year 2020 8.57
2021 8.51
2022 7.86
2023 7.75

85
 Total Income / Capital Employed(%)
8.8
8.6 8.57 8.51
8.4
8.2

8 7.83 7.86
7.8 7.75 Total Income / Capital
7.6 Employed(%)
7.4
7.2

2007 2008 2009 2010 2011

2019202020212022 2023
year

Net Profit /
Total Funds

2019 0.8
year 2020 0.89
2021 1.09
2022 1.21
2023 1.33

Net Profit / Total Funds

1.4 1.33
1.2 1.21
1 1.09
0.8 0.89
0.8

0.6 2007 2008 2009 2010 2011

Net Profit / Total Funds
0.4 year
0.2

0
86 2019202020212022 2023
 Dividend Per
Share

2019 6
Year 2020 8
2021 9
2022 15
2023 16.5

Dividend Per Share

18 16.5
16 15
14
12

10 9
8
8 6
6 Dividend Per Share
4
2
0

2019202020212022 2023
2007 2008 2009 2010 2011
year

PRICE- EARNING RATIO:

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

PRICE-
EARNING

2019 7.93
YEAR 2020 7.49

87
 2021 3.95
2022 7.87
2023 9.15

88
 9.15

7.93 7.87
7.49

10
9
8
7
6 3.95
5
4
3
2 PRICE- EARNING
1
0

2019 2020 2021 2022 2023

2007 2008 2009 2010 2011
YEAR

PRICE- BOOK VALUE

Market Value of Security/ book value of shares

PRICE-
BOOK
VALUE
2019 0.91
YEAR 2020 0.94
2021 0.67
2022 1.55
2023 1.8

89
 2
1.8
1.8
1.61.55
1.4
1.2

1 0.91 0.94
0.8 0.67 PRICE-BOOK VALUE
0.6
0.4
0.2
0

2019202020212022 2023
2007 2008 2009 2010 2011
YEAR

ENTERPRISE TO EBIDTA:

EV/EBIDTA
2019 15.9
YEAR 2020 13.93
2021 14.01
2022 15.93
2023 16.64

17 16.64
16.5
16 15.93
15.9
15.5
15
14.5
14
13.5
13 13.93 14.01 EV/EBIDTA
12.5

90

200270192
2019 200028020
2020 22010920222010
2021 2022 2023 2011
2023
YEAR
TREND ANALYSIS

Trend Analysis is the practice of collecting information and attempting to spot a pattern, or
trend, in the information. In some fields of study, the term "trend analysis" has more formally-
defined meaning.

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

TREND ANALYSIS OF STATE BANK

OF INDIA

BASE YEAR 2006-2019

percentage (%)
figures
2019 2020 2021 2022 2023

deposits 100 123 170 185 214

advances 100 124 161 187 224
net
profit 100 148 201 202 162

250

200 2007 2008 2009 2010 2011

150
deposits
advances net profit

100

50
91
0

2019 2020 2021 2022 2023

INTERPRETATION:

 There is a continuous increase in deposits

 There is a increase of advances

 There is a increase in net profits till 2022 but there is a fall in

2023 The overall performance of the bank is satisfactory.

TREND ANALYSIS OF BANK OF BARODA

Bank of Baroda
Base year 2006-2019
In percentage(%) figures

2019 2020 2021 2022 2023

deposits 100 122 154 193 245

advances450100 128 172 209 273
400
net 350100 140 217 298 413
300
profit 250
200
deposits
advances

net profit
150

100
50
0

2007 2008 2009 2010 2011

2019 2020 2021 2022 2023

92
 INTERPRETATION:

Deposits:-

The trend shows that the deposits are increasing from 2019-2023
Advances:-
The trend of advances shows that it is increasing in those four years 2020-
2023 Net profit:-
The trend of net profit shows the increase from 2020-2023

BETA ANALYSIS

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

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

BETA VALUATION OF STATE BANK OF INDIA

1 2 3 4 5 6 7 8
return- return
averag of SBI-
e of Averag covarian
RETURN RETUR varianc ce of
return e of
OF N OF e of sensex
of return
MONTH SENSEX SBI SENSEX SBI sensex
93
 sensex of SBI and SBI
3,233.
10-Sep 20,069.12 20
3,151.
10-Oct 20,032.34 20 0.00 -0.03 0.01 0.0001 0.01 0.0001
2,994.
10-Nov 19,521.25 10 -0.03 -0.05 -0.01 0.0002 -0.01 0.00014
2,811. -
10-Dec 20,509.09 05 0.05 -0.06 0.06 0.0040 -0.02 0.001407
11-Jan 18,327.76 2,641. -0.11 -0.06 -0.09 0.0088 -0.02 0.002018

94
 05
2,632. -
11-Feb 17,823.40 00 -0.03 0.00 -0.01 0.0002 0.04 0.000525
2,767.
11-Mar 19,445.22 90 0.09 0.05 0.10 0.0108 0.09 0.009392
2,805. -
11-Apr 19,135.96 60 -0.02 0.01 0.00 0.0000 0.05 0.000167
2,297.
11-May 18,503.28 80 -0.03 -0.18 -0.02 0.0004 -0.14 0.00289
2,405.
11-Jun 18,845.87 95 0.02 0.05 0.03 0.0010 0.09 0.002686
2,342. -
11-Jul 18,197.20 00 -0.03 -0.03 -0.02 0.0005 0.01 0.000268
1,974.
11-Aug 16,676.75 50 -0.08 -0.16 -0.07 0.0050 -0.12 0.008358
1,945.
11-Sep 16,933.83 55 0.02 -0.01 0.03 0.0008 0.02 0.000683

AVERAGE
RETURN -0.01 -0.04 0.0026 0.00200

COVARIAN 0.001995
CE 59

0.002642
VARIANCE 95

BETA 0.755062

95
 BETA VALUATION OF BANK OF BARODA

1 2 3 4 5 6 7 8
return
- return
RETUR avera -
N OF avera covarian
ge of
BANK RETUR BANK ge of ce of
return
OF N
OF OF variance return sensex
on
MONT BAROD SENSE BAROD of on and
sense
H SENSEX A X A sensex BOB BOB
x
10-Sep 20,069.12 872.8
10-Oct 20,032.34 1,011.00 -0.0018 0.1583 0.010 0.00011 0.165 0.0018

96
 9 9 0
- -
0.012 0.00016 0.072
10-Nov 19,521.25 937.75 -0.0255 -0.0725 0.0009
8 4 5
-
0.063 0.044
10-Dec 20,509.09 896.5 0.0506 -0.0440 0.00401 -0.003
3 0
- -
0.093 0.00876 0.030
11-Jan 18,327.76 869.15 -0.1064 -0.0305 0.0029
6 8 5
-
0.014 0.00021 0.002
11-Feb 17,823.40 870.85 -0.0275 0.0020 -3E-05
8 9 0
0.103 0.01075 0.106
11-Mar 19,445.22 963.15 0.0910 0.1060 7 7 0 0.011
- -
0.003 1.01E- 0.053
11-Apr 19,135.96 912.15 -0.0159 -0.0530 0.0002
2 05 0
- -
11- 0.020 0.00041 0.053
18,503.28 863.4 -0.0331 -0.0534 0.0011
May 3 4 4
0.031 0.00097 0.009
11-Jun 18,845.87 871.9 0.0185 0.0098 2 6 8 0.0003
-
0.021 0.00047 0.007
11-Jul 18,197.20 878.3 -0.0344 0.0073 -0.00016
7 1 3
- -
0.070 0.00501 0.161
11-Aug 16,676.75 736.6 -0.0836 -0.1613 0.0114
8 8 3
0.028 0.00079 0.051
11-Sep 16,933.83 774.8 0.0154 0.0519 1 2 9 0.0015

97
 AVERAGE 0.00264
RETURN -0.0127 -0.0066 3 0.0023

COVARIAN
CE 0.00234

0.00264
VARIANCE 3

0.88438
BETA 5

98
RATIO ANALYSIS

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

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

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

SUSTAINABLE EARNINGS OF BANK OF BARODA

IN RS. CR.

202103
202303 (12) 202203 (12) (12) 202003 (12) 201903 (12)

INCOME :

Total 24695.1 19504.7 17876.11 13892.18 10438.12

II. Expenditure

Total 20453.42 16446.37 15648.91 12456.66 9411.66

Fringe Benefit tax 0 0 0 11 7.5

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

Adjusted Net Profit 4241.8 3002.21 2164.91 1435.3 1018.45

99
Average of Adjusted net profit for the year 2021,2022,2023

2021 2164.91
2022 3002.21
2023 4241.8

Sum = 9408.92

Average = 3136.30

100
Standard deviation 1044.466

Rounding off 1044

CRAR% OF BANK OF BARODA:

202303 202203 202103

CRAR(%)
Year End 202303 202203 202103
CRAR - Tier I (%) 9.99 9.2 8.49
CRAR - Tier II (%) 4.53 5.16 5.56
Total CRAR (%) 14.52 14.36 14.05

Total
CRAR
(%)
2021 14.05
year 2022 14.36
2023 14.52

101
 14.6
14.52
14.5
14.4
14.36

14.3
14.2
14.1
14.05 Total CRAR (%)

14
13.9
13.8

2009 2010 2011

2021 2022 2023
year

102
RESEARCH METHODOLOGY

103
 RESEARCH TOPIC

“THE COMPARATIVE STUDY OF FINANCIAL PERFORMANCE OF STATE BANK

OF INDIA AND BANK OF BARODA.”

OBJECTIVE OF THE STUDY:-

1. To know the strength and weakness of State Bank Of India and Bank Of Baroda
through Ratio analysis.
2. To evaluate the performance of the companies.
3. To understand the liquidity, profitability and efficiency positions of the companies.
4. To make comparison between the ratios during different periods.

INTRODUCTION

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

104
RESEARCH METHODOLOGY

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

 Data collection:
Secondary data is being
taken Websites

Outcomes of the study:

105
 1. With this analysis we come to know about the strength and weakness of State Bank
Of India and Bank Of Baroda through Ratio analysis.
2. To evaluate the performance of the companies.
3. To understand the liquidity, profitability and efficiency positions of the companies.
4. To make comparison between the ratios during different periods.

Limitation of the study:

The study is done in Kanpur

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

TOOLS USED:

Comparative analysis
Ratio analysis
Trend analysis
Beta valuation
Sustainable earnings

Basel-II CRAR % capital

requirement Cash Flow Statement
Analysis STATISTICAL TOOL:
CAPITALINE
SPSS

106
FINANCIAL ANALYSIS

107
Introduction to the topic

RATIO ANALYSIS
FINANCIAL ANALYSIS
Financial analysis is the process of identifying the financial strengths and weaknesses of the
firm and establishing relationship between the items of the balance sheet and profit & loss
account.
Financial ratio analysis is the calculation and comparison of ratios, which are derived from
the information in a company’s financial statements. The level and historical trends of these
ratios can be used to make inferences about a company’s financial condition, its operations

and attractiveness as an investment. The information in the statements is used by

company.

structure.
responsibility of the
management to maintain sound financial condition in the company.

RATIO ANALYSIS
The term “Ratio” refers to the numerical and quantitative relationship between two items

or variables. This relationship can be exposed as

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

decision under consideration from the statements and calculates appropriate ratios.
108
the industry ratios. It facilitates in assessing success or failure of the firm.

drawn after comparison in the shape of report or recommended courses of action.

BASIS OR STANDARDS OF COMPARISON

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

NATURE OF RATIO ANALYSIS

Ratio analysis is a technique of analysis and interpretation of financial statements. It is the
process of establishing and interpreting various ratios for helping in making certain decisions.
It is only a means of

109
understanding of financial strengths and weaknesses of a firm. There are a number of ratios
which can be calculated from the information given in the financial statements, but the analyst
has to select the appropriate data and calculate only a few appropriate ratios. The following
are the four steps
involved in the ratio
analysis. analysis.
ios
developed from projected financial statements or the ratios of some other firms or the
comparison with ratios of the
industry to which the firm belongs.
INTERPRETATION OF THE RATIOS
The interpretation of ratios is an important factor. The inherent limitations of ratio
analysis should be kept in mind while interpreting them.
The impact of factors such as price level changes, change in accounting policies,
window dressing etc., should also be kept in mind when attempting to interpret ratios.

IMPORTANCE OF RATIO ANALYSIS

-firm comparison
efficiency

LIMITATIONS OF RATIO ANALYSIS

110
 ored

IN THE VIEW OF FUNCTIONAL CLASSIFICATION THE RATIOS

ARE
1. Liquidity ratio
2. Leverage ratio
3. Activity ratio
4. Profitability ratio

111
1. LIQUIDITY RATIOS

Liquidity refers to the ability of a concern to meet its current obligations as & when there
becomes due. The short term obligations of a firm can be met only when there are sufficient
liquid assets. The short term obligations are met by realizing amounts from current, floating
(or) circulating assets The current assets should either be calculated liquid (or) near liquidity.
They should be convertible into cash for paying obligations of short term nature. The
sufficiency (or) insufficiency of current assets should
be assessed by comparing them with short-term current liabilities. If current assets can pay
off current liabilities, then liquidity position will be satisfactory.
To measure the liquidity of a firm the following ratios can

be calculated
-test (or) Liquid ratio

(a) CURRENT RATIO:

Current ratio may be defined as the relationship between current assets and current
liabilities. This ratio also known as Working capital ratio is a measure of general liquidity
and is most widely used to
make the analysis of a short-term financial position (or) liquidity of a firm.

Current ratio= current assets/ current liabilities

Components of current ratio:

Current Assets Current Liabilities

Cash in hand Outstanding expenses

Cash at bank Bank overdraft
Bills receivable Bill payable
Inventories Short term advances
Work-in-progress Sundry creditors
112
 Marketable securities Dividend payable
Short-term investments Income-tax payable
Sundry debtors
Prepaid expenses

(b) QUICK RATIO

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

113
Quick or liquid assets

Quick Ratio= quick or liquid assets/ current liabilities

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

Absolute liquid ratio = Absolute liquid assets/Current liabilities

Absolute liquid assets include cash in hand etc. The acceptable

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

Absolute liquid assets Current liabilities

Cash in hand Outstanding or accrued expenses

Cash in bank Bank overdraft
114
 Interest on fixed deposits Bills payable
Dividend payable
Sundry creditors
Short term advances
Income tax payable
2. LEVERAGE RATIOS
The leverage or solvency ratio refers to the ability of a concern
to meet its long term obligations. Accordingly, long term solvency ratios
indicate firm’s ability to meet the fixed interest and costs and
repayment schedules associated with its long term borrowings.
The following ratio serves the purpose of determining the
solvency of the concern.
· Proprietory ratio

115
(a) PROPRIETORY RATIO
A variant to the debt-equity ratio is the proprietary ratio which
is also known as equity ratio. This ratio establishes relationship between
share holders funds to total assets of the firm.

Proprietory ratio = Shareholders funds/ Total assets

Shareholder fund Total Assets

Share capital Fixed assets

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

are converted or turned over into sales.

Capital turnover ratio

(a) WORKING CAPITAL TURNOVER RATIO

Working capital of a concern is directly related to sales.

Working capital= current assets – current liabilities

116
It indicates the velocity of the utilization of net working capital.

This indicates the no. of times the working capital is turned over in the
course of a year. A higher ratio indicates efficient utilization of
working capital and a lower ratio indicates inefficient utilization.

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

Components of working capital:

Current assets Current liabilities

117
Cash in hand Outstanding or accrued expenses
Cash at bank Bank overdraft

Bills receivable Bills payable

Prepaid expenses Short term advances

Short term investments Sundry creditors

Inventories Dividend payable

Work in progress Income tax payable

Marketable securities

Sundry debtors

(b) FIXED ASSETS TURNOVER RATIO

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

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

Cost of Sales = Income from Services

Net Fixed Assets = Fixed Assets - Depreciation

(c) CAPITAL TURNOVER RATIOS

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

Capital turnover ratio= cost of goods sold/capital employed

118
 Capital employed = capital+ reserves& surplus

Cost of goods sold = income from services

(d) CURRENT ASSETS TO FIXED ASSETS RATIO

119
This ratio differs from industry to industry. The increase in the
ratio means that trading is slack or mechanization has been used. A decline in the ratio means
that debtors and stocks are increased too much or fixed assets are more intensively used. If
current assets increase with the corresponding increase in profit, it will show that the business
is expanding.

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

Current assets Fixed assets

Cash in hand Plant

Cash at bank Machinery

Bills receivables Land

Short term investment Building

Inventories Vehicles

Sundry debtors

Work in progress

Marketable securities

4. PROFITABILITY RATIOS

The primary objectives of business undertaking are to earn profits. Because profit is the

engine, that drives the business enterprise.

– earning ratio

(a) NET PROFIT RATIO

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

120
 Net profit after tax = net profit-( depreciation+ interest+ income tax)

121
 Net sales = income from services

Net profit ratio = net profit after tax/ net sales

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

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

(b) RETURN ON TOTAL ASSETS

Profitability can be measured in terms of relationship between

net profit and assets. This ratio is also known as profit-to-assets ratio. It
measures the profitability of investments. The overall profitability can be
known.

Returns on assets = net profit / total assets

Net profit = earnings before interest and tax

Total assets = current assets+ fixed assets

(c) RESERVES AND SURPLUS TO CAPITAL RATIO

It reveals the policy pursued by the company with regard to
growth shares. A very high ratio indicates a conservative dividend policy
and increased ploughing back to profit. Higher the ratio better will be the
position.

122
 Reserves& surplus to capital ratio = reserves& surplus/capital

(d) EARNINGS PER SHARE

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

123
 Earning per share = net profit after tax/ no. of equity shares

The Earnings per share is a good measure of profitability when

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

(e) OPERATING PROFIT RATIO

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

Operating ratio = operating cost / net sales

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

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

Operating profit = net sales – operating cost

Operating profit ratio = operating profit / sales

(f) PRICE - EARNING RATIO

Price earning ratio is the ratio between market price per equity
share and earnings per share. The ratio is calculated to make an estimate of appreciation in the
value of a share of a company and is widely used by
investors to decide whether (or) not to buy shares in a particular company.
Generally, higher the price-earning ratio, the better it is. If the
price earning ratio falls, the management should look into the causes
that have resulted into the fall of the ratio.

124
 Price earning ratio = market price per share/ earning per share

Market price per share = capital + reserves& surplus / no. of equity shares

Earning per share = earnings before interest and tax / no. of equity shares

(g) RETURN ON INVESTMENTS

Return on share holder’s investment, popularly known as Return on investments (or) return
on share holders or proprietor’s funds is

125
the relationship between net profit (after interest and tax) and
the proprietor’s funds.

Return on shareholder’s investment = net profit after interest and tax / shareholder’s fund

The ratio is generally calculated as percentages by

multiplying the above with 100.

126
FINANCIAL COMPARATIVE ANALYSIS

127
 BALANCE SHEET OF STATE BANK OF INDIA
FOR THE YEAR ENDING ON MARCH 2019-2023
IN RS CR.
2019- 2020- 2021-2022 2022-
2020 2021 2023
Absolute % Absolute % Absolute % Absolute %
change change change change change change change change
Capital &
Liabilities
Capital 105.17 19.98 3.41 0.0054 0.00 0.00 0.12 0.018
Reserve& 17628.83 57.28 8910.91 18.41 8001.5 13.96 (963.28) (1.47)
surplus
deposits 101882.85 23.39 204669.19 38.08 62043.1 8.36 129816.58 16.14
borrowings 12024.07 30.28 1986.27 3.83 49297.92 91.77 16557.36 16.07
Other 23320.04 38.83 27335.27 32.79 (30360.30) (27.42) 24911.69 31.009
liabilities and
provisions
TOTAL 154961.06 27.35 242905.77 33.66 88981.65 9.226 170322.47 16.16
CAPITAL
AND
LIABILITIES
2019-08 2020-09 2021-10 2022-11
Absolute % Absolute % Absolute % Absolute %
change change change change change change change change
Assets:
Investments 40352.39 27.055 86452.69 45.62 9836.11 3.56 9810.5 3.43
Advances 79431.71 23.54 125735 30.16 89410.95 16.48 124805.3 19.75
Fixed assets (314.22) (0.070) (543.32) (0.13) 543.32 0.15 314.22 0.076
Capital Work (37.05) (0.11) (31.74) (0.107) 31.74 0.1204 37.05 0.1255
In Progress
Current assets (8665.09) (0.19) 2620.51 0.074 (2620.51) (0.069) 8665.09 0.24
TOTAL 154961.06 27.35 242905.77 33.66 88981.65 9.226 170322.47 16.16
128
ASSETS:
Interpretation :

The capital of bank increased by 19.98%in 07-08, 0.0054% in 08-09, 0.018% in 10-11.
There is no change in capital of the bank in the year 09-10
There is a huge fluctuation in the rate of increasing in reserves& surplus
. The bank is utilizing its reserves &surplus in an effective manner.

129
 In 07-08 deposits increase by 23.39%, 08-09 it increase by 38.08%, 8.36% in 09-10,16.14% in
10-11.

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

The investment in 10-11 has increased with a low rate as compared to the preceding years
.27.55% in 07-08,45.62% in 08-09,3.56% in 09-10,3.43% in 10-11.

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

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

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

PROFIT AND LOSS OF STATE BANK OF INDIA FOR THE YEAR ENDING
ON MARCH 2019-2023 IN RS CR.

Particulars 2019-08 2020-09 2021-10 2022-11

absolute % absolute % absolute %
change change change change change % change absolute change change

INCOME:

operating income 11410.95 0.24 18131.04 0.31 9482.29 0.12 10367.38 0.12

EXPENDITURE:

interest expended 8492.26 0.36 10986.21 0.18 4407.19 0.10 1545.48 0.032
3514.11
operating
expenses 1357.77 0.10 0.24 6817.35 0.37 6489.87 0.26

9223.14

total expenses 0.21 15738.93 0.30 9437.47 0.14 12163.1 0.15

provision and

130
contingencies -626.89 -0.10 1238.61 0.24 -1787.07 0.14 12163.1 0.15
net profit of
the year 2187.81 0.48 2392.11 0.35 44.82 0.004914 -1795.68 -0.19

extraordinary
items 0 0 0 0 0 0 0 0

profit brought
forward 0 0 0 0 0 0 0 0

total profit/(loss): 2187.81 0.48 2392.11 0.35 44.82 0.004914 -1795.68 -0.19

INTERPRETATION:

Net Profit Of The Year: it shows a fluctuating trend i.e., increased by 48% in2019-08,35% in
2020-09,0.49% in 2021-10 and decline by 19% in 2022-11due to increased tax liability.
Interest Expended: it increases from 36% in 2019-08,18% in 2020-09, 10% in 2021-10 and
3.20% in 2022-11.

131
 BALANCE SHEET OF BANK OF BARODA FOR THE YEAR ENDING ON
MARCH 2019-2023 IN RS CR.

2019- 2020- 2021- 2022-

2020 2021 2022 2023
absolute % absolute % absolute % absolute %
change change change change change change change change
capital &
liabilities:
0.07463
Capital 0 0 0 0 0 0 27.28 1
reserves& 0.28897 0.16777 0.18210 0.39749
surplus 2393.99 5 1791.61 9 2270.85 5 5859.44 6
27118.1 0.21709 40362.8 0.26548 48647.3 0.25284 64395.2 0.26715
Deposits 5 1 2 5 1 9 2 1
2.43706 0.43519 1.36867 0.67098
Borrowings 2784.49 2 1709.04 7 7714 9 8957.76 9
0.49263 0.31313 - - 0.09536
other liabilities 4156.71 5 3943.74 4 7722.18 0.46693 840.76 8
TOTAL
LIABILITIE 36453.3 0.25465 47807.2 0.26618 50909.9 0.22387 80080.4 0.28773
S: 4 8 1 8 8 2 6 1
2019-08 2020-09 2021-10 2022-11
absolute % absolute % absolute % absolute %
change change change change change change change change
ASSETS

0.25545 0.19548 0.16658 10078.2 0.16472

Investments 8926.44 3 8575.81 2 8736.5 1 5 5
23080.4 0.27601 37284.5 0.34942 31049.3 0.21564 53641.0 0.30645
Advances 5 3 8 9 9 2 7 9
fixed assets 1338 1.2 (117) (0.05) (25) (0.01) 15 0.01

132
capital work in
progress 0 0 0 0 0 0 0 0
36453.3 0.25465 47807.2 0.26618 50909.9 0.22387 80080.4 0.28773
Total assets 2 8 3 8 8 2 7 1
INTERPRETATION:

The capital of the bank shows no change till 2021-10 but it increases by 7.40% in 2022-11.

There is a huge fluctuation in the increase of reserves and surplus. It increases by 28% in 2019-
08,16%in 2020-09,18% in 2021-10 and 39% in 2022-11.

The investments has increased with a low rate . 2019-08- 25%,2020-09 – 19%, 2021-10 – 16.6%,
2022-11-16.47%

133
There is a fluctuating in increase in advances 27% in 2019-08,34.9% in 2020-09, 21.5%in
2021- 10, 30.64% in 2022-11.

There is decline of fixed assets in 2020-09 and 2021-10 with 5% and 1% respectively. The
reason may be the increase in the rate of depreciation in the subsequent years.

There has been an increase in borrowings. 243% in 2019-08, 43.5% in 2020-09, 136% in 2021-
10,67% in 2022-11.

PROFIT AND LOSS OF BANK OF BARODA FOR THE YEAR ENDING ON

MARCH 2019-11

absolute absolute absolute

change % absolute change % change % change %

2019-08 2020-09 2021-10 2022-11

particulars

income:

total income 3,270.1 30.87% 3,984.7 28.74% 1,655.5 9.27% 5,190.4 26.61%

expenditure:

interest expended 2,475.11 45.61% 2,066.50 26.15% 791 7.93% 2,324.8 21.61%

operating expenses 598.82 21.61% 474.39 14.08% 866.57 22.54% 958.65 20.35%
other provisions and -
contingencies -212.90 -15.54% 652.15 56.36% -832.92 46.04% 723.60 74.12%

total expenses 2,861.0 29.90% 3,193.0 25.69% 824.3 5.28% 4,007.1 24.36%

net profit of the year 409.06 39.85% 791.68 55.15% 831.13 37.32% 1,183.35 38.69%

extra ordinary items 0 0.00% 0 0.00% 0 0.00% 0 0.00%

profit brought forward 0 0.00% 0 0.00% 0 0.00% 0 0.00%

total 409.06 39.85% 791.68 55.15% 831.13 37.32% 1,183.35 38.69%

INTERPRETATION:
134
The net profit of the year shows a fluctuating trend i.e., 39.85% in 2019-08,55.15% in2020-
09,37.32% in 2021-10and 38.69% in 2022-11.

The interest expended shows a fluctuating trend in 2019-08 to 2022-11

2019-08-45.61%,2020-2021-26.51% ,

135
BETA VALUATION :

state bank of
India bank of Baroda

beta 0.8 0.9

beta

0.9
0.88
0.86
0.84
0.82
0.8 beta
0.78
0.76
0.74

state bank ofbank of baroda

india

The graph shows the compare beta of SBI and BOB which is 0.8 and 0.9 which means that
both are comparatively good. There betas are<1 which means it is goodfor the investors to
invest in the bank as it is less risky in nature.

SUSTAINABLE EARNINGS:

SBI BOB
SUSTAINABLE
EARNINGS 8857 3136

136
 SUSTAINABLE EARNINGS
10000 8857
9000
8000
7000
6000
5000
4000
3000 SUSTAINABLE EARNINGS
3136
2000
1000
0

SBIBOB

CRAR% ANALYSIS :

SBI BOB
BASEL-II
CRAR% 11.98 14.52

BASEL-II CRAR%
16 14.52
14
11.98
12
10
8
BASEL-II CRAR%
6
4
2
0
137

SBI BOB
 CASH FLOW STATEMENT ANALYSIS OF BANK OFBARODA:

2019 2020 2021 2022 2023

2207.1 5650.3
NET PROFIT BEFORE TAX 1654.26 6 3342.94 4238.06 2
NET CASH FROM 2241.8 11252.4 11778.
OPERATING ACTIVITIES 5153.94 2 1125.47 5 81
NET CASH USED IN FROM INVESTING
ACTIVITIES -307.65 -235.13 -238.93 -335.01 -489.76
NET CASH USED IN FROM FINANCING 2012.2 3177.9
ACTIVITIES -20.56 3 901.29 462.51 6
NET (DECREASE)/INCREASE IN CASH 4018.9 11379.9 14467.
AND CASH EQUIVALENT 4825.73 2 1787.83 4 01
18280. 22299.2 24087.1 35467.
OPENING CASH 13454.64 37 9 2 06
22299. 24087.1 35467.0 49934.
CLOSING CASH 18280.37 29 2 6 07

CASH FLOW STATEMENT ANALYSIS OF STATE BANK OF INDIA:

2019 2020 2021 2022 2023

PARTICULARS

138
 Net Profit Before Tax 7625.08 10438.9 14180.64 13926.1 14954.23

Net Cash From Operating Activities -1776.07 -856.87 29479.73 -1804.99 34282.52

Net Cash (used in)/from Investing activities -284.56 -2798.01 -1651.93 -1761.52 -1245.53

Net Cash (used in)/from Financing Activities 9494.11 19371.12 5097.38 -3359.67 2057.11

Net (decrease)/increase In Cash and Cash Equivalents 7433.49 15716.24 32925.18 -6926.18 35094.1

Opening Cash & Cash Equivalents 44535.2 51968.69 71478.62 103110 87780.05

Closing Cash & Cash Equivalents 51968.69 67466.34 104403.8 96183.84 122874.2

139
FINDINGS, SUGGESTIONS AND CONCLUSIONS

140
 State bank of India Bank of Baroda
Particulars
1. Beta valuation 0.8 0.9
2. sustainable earnings ( standard 504 1044
deviation)
Average sustainable earnings 8857 3136

3. Cash flow statement analysis: 14467.01 35094.1

4. Basel-II CRAR% 11.98 14.52

5. Profit & Loss statement analysis (19%) 38.69%
6. Balance sheet statement analysis 16 28%
7. Ratio analysis:
a. P/E ratio 21.92 9.15
b. P/BV 2.7 1.8
c. EV/EBIDTA 17.07 16.64

YEAR 2023

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

141
 25
21.92

20
17.07 16.64

15
SBI
9.15 BOB
10

5
2.7
1.8

0
P/E P/BV EV/EBIDTA

INTERPRETATION:

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

P/BV

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

EV/EBIDTA

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

Both are fundamentally sound in nature.

142
 SBI BOB
credit deposit ratio 79.9 73.87
CASH DEPOSIT 8.96 6.11

90
79.9
80 73.87
70
60
50
credit deposit ratio
40CASH DEPOSIT
30
20

8.96
10 6.11

0
SBI BOB

CREDIT-DEPOSIT RATIO:

This ratio assess the credit performance of the bank.

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

SBI-79.9
BOB –
73.87
State bank of India has overall good efficiency and performance of banking institutions.

CASH DEPOSIT RATIO:

This ratio assesses the cash performance of the bank.

143
The graph shows that state bank of India and bank of Baroda is performing well in nature.

144
 SUSTAINABLE
EARNINGS
SBI BOB
STANDARD DEVIATION 504 1044
AVERAGE 8857 3136

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

SBIBOB
SUSTAINABLE EARNINGS

OUTCOME:

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

145
 INDUSTRY SBI BOB
P/E
RATIO 6.43 21.92 9.15

P/E RATIO
25
21.92

20

15

10 9.15 P/E RATIO

6.43
5

0
INDUSTRY SBI BOB

INTERPRETATION:

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

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

146
 SBI BOB
dividend payout ratio 26.03 17.76

dividend payout ratio

30
26.03
25

20 17.76

15
dividend payout ratio
10

0
SBI BOB

INTERPRETATION:

SBI 26.03

BOB 17.76

There is increase in ratio in the year 2023 in both the banks .

SBI BOB

Earnings Per Share 116.07 108.33

147
 Book Value 1,023.40 536.16

Dividend Per Share 30 16.5

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

148
It is indicated that EPS AND DPS ARE INCREASING OF STATE BANK OF INDIA
AS COMPARED TO BANK OF BARODA .

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

IMPROVED OPERATIONS.

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

THE OVERALL EFFICIENCY OF THE COMPANY IS GOOD AND IT IS

PERFORMANCE IS BETTER IN THE BANKING INSTITUTION.

CONCLUSIONS:

1. State Bank Of India has overall better efficiency and has performed better in the
banking institution as compared to Bank Of Baroda.
2. EPS And DPS Of State Bank Of India is increasing due to increase in the use of
debt rather than the use of improved operations.
3. The P/E Ratio Of State Bank Of India is high as compared to its industry and Bank Of
Baroda which means that SBI is using its funds in a better manner and it is
fundamentally sound in nature.
4. Beta Of State Bank Of India And Bank Of Baroda is less than the market beta which
means that both banks are giving less returns but they are less risky and investors can
invest in these shares.
5. The Average Sustainable Earnings Of State Bank Of India is high and the standard
deviation is low so the bank has its earnings is sustain and more robust in nature
as compared to Bank of Baroda.

149
 6. The Credit Deposit Of State Bank Of India And Bank Of Baroda is close but the ratio
is high which means that State Bank Of India has overall good efficiency and better
performance, i.e., the bank has high credit deposit ratio.

150
REFERENCES:

http://en.wikipedia.org/wiki/State_Bank_of_India

http://en.wikipedia.org/wiki/Bank_of_Baroda
http://www.moneycontrol.com/financials/state bank of India/balance-sheet/SBI

http://www.moneycontrol.com/financials/bankofbaroda/balance-sheet/BOB
http://www.moneycontrol.com/financials/bankofbaroda/profit&loss/BOB

http://www.moneycontrol.com/financials/bankofbaroda/profit&loss/SBI

www.google.com
www.capitaline.com
www.sbi.com
www.investopedia.com

151