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Indian Overseas Bank Ratio Analysis
Indian Overseas Bank Ratio Analysis
Denominator(in 000 s)
1,01,36,75,329
Value 12%
12,01,86,557
11,80,56,246
102%
38,07,67,660
47,52,04, 028
80%
CANARA BANK
Ratio Demand Deposit to Term Deposit Short term Investments to Total Assets Cash to Demand Deposit SLR Investment To Total Investment Formula Total Demand Deposit Total Term Deposit Short term Investments /Total Assets Cash Balance/Demand Deposit SLR Investment / Total Investment Numerator(in 000 s)
24,49,99,859
Value 11.61%
71,38,76,938
3,36,07,87,577
21%
30,70,81,152
24,49,99,859
125%
71,14,92,562
83,20,85,207
86%
Comparision:If we compare Liquidity ratios of these two banks we can presume that Canara Bank s asset portfolio is comparatively more liquid than that of India Overseas Bank because Canara s cash balance as well as SLR investment s percentage is higher than that of Indian Overseas.
Cost Of Fund
7,89,34,395
1,64,58,41,557
4.80%
1,22,51,025
13,32,65,675
9.19%
CANARA BANK
Ratio Operating Efficiency Formula Operating Expenses/Total Assets Interst Expended/ Total borrowing +deposit Non interest earned income / total income Numerator(in 000 s) 4,41,93,156 Denominator(in 000 s) 1,64,58,41,557 Value 2.69%
Cost Of Fund
15,24,07,357
3,08,23,42,990
4.94%
2,70,30,337
25,76,70,470
10.49%
Comparision: By looking towards these ratio we can assume that IOB is more efficient than Canara Bank as its operating expenses proportion is comparatively lesser than Canara of their respective total assets IOB raises fund at cheaper rate than Canara Bank Canara Bank have more avenues to earn income other than interest on loans than IOB
Profitability Ratio:-
Return on Assets Profit Margin Return on Equity Earning Per Share P E Ratio
CANARA BANK
Ratio Net Interest Margin Formula Interest EarnedInterest Expended/ Total Assets Net Profit/Total Assets Net Profit / total income Net Profit / Equity Fund Net Profit / No. of shares Net Profit / total income Numerator (in 000 s) 7,82,32,776 Denominator (in 000 s) 3,36,07,87,577 Value 2.33%
Return on Assets Profit Margin Return on Equity Earning Per Share P E Ratio
Comparison:
Although net interest margin of IOB is marginally higher than Canara Bank but Canara Bank gives by far higher returns to its equity shareholders. Earning per share also is about 5 times more of Canara Bank than IOB