PROJECT PROPOSAL ON

COMPARATIVE STUDY
OF

RATIO ANALYSIS
OF

SUBMITTED TO

ANNAMALAI UNIVERSITY
In partial fulfillment for the degree of MASTER IN BUSINESS ADMINISTERATION 2010-2012

UNDER GUIDANCE OF: KAPIL HINGORANI

SUBMITTED BY:PRIYANKA BHATTACHARYA MBA FINAL YEAR (FINANCIAL MANAGEMENT) Enrolment No.:- 4741000049

CONTENTS
It includes the following captions as follows:Title of the project. Statement of the problem. Objective of the study. Research methodology.

TITLE OF THE PROJECT

A COMPARATIVE STUDY OF RATIO ANALYSIS WITH REFERENCE TO

INDUSIND BANK AND UNION BANK OF INDIA

STATEMENT OF THE PROBLEM

It is expected that the Indian banking and finance system will be globally competitive. For this the market players will have to be financially strong and operationally efficient. The Vision is of an integrated banking and finance system catering to all financial intermediation requirements of customers. For this achievement a steady analysis of comparison is required to make between various banks. Ratio analysis acts as a great analytical tool in such context. The reasons supporting are as follows:

Being a widely used technique for analyzing the financial activities of firm, ratios are used in a casual way.

In the changing business scenario, it has also been observed that ratio is revised, but in reality it takes too much time.

Effort and accuracy also is required to maintain for efficient calculations.

Time availability is the major concern that is furthermore reinforced by nature and urgency of ratio.

On the account of professional proficiency, the ability to understand accounting data is worthwhile.

Organizations are often reluctant to divulge the ratios.

Presentation of ratio is crucial for success that must be before the concerned higher authority. Ratio analysis often mismatches the original diagnosis leading to biased decision making.

OBJECTIVES OF THE STUDY

Comparative analysis is a methodology that may be applied to problem solving in banking practices. Whenever problems are complex enough to warrant more than applying either a subjective or quantitative approach, comparative analysis can be utilized to provide a systematic in-depth examination. By applying this technique, banking institutions can analytically examine and compare all possible alternatives for the purpose of identifying the optimal course of action. The various objectives of the study in perspective to banking sector are:To Measure financial Soundness of the banking institutions.

To Measure Profitability of the banks.

To Judge operational Efficiency of activities carried out by bank.

To assess the Growth Potential opportunities.

To Analyze Future Line of Action in services to be provided by banks.

To Simplify Accounting Figures for better interpretations and calculations.

To understand, how to make inter-firm and intra-firm comparison in analysis of financial statement for detecting weakness and adoption corrective measure.

To present Data in Systematic Way for efficient auditing.

RESEARCH METHODOLOGY
Research includes any gathering of data, information and facts for the advancement of knowledge of a respective field or case. Research is the process of gathering information for the purpose of initiating, modifying or terminating a particular investment or group of investments. PURPOSES OF RESEARCH
1. 2. 3.

Exploratory: e.g., discovering, uncovering, exploring. Descriptive: e.g., summarising, gathering info, mapping. Explanatory: e.g., testing and understanding causal Predictive: e.g., predict what might happen in various

relations.
4.

scenarios. Research involves systematic investigation of phenomena which we seek to explore, describe, explain, and predict.

RESEARCH METHODOLOGY
Research methodology is a systematic way, which consists of series of action steps, necessary to effectively carry out research. It is a method of discovering facts, developing facts and verification of facts. CHARACTERSTICS:i. ii. iii. iv. It demands the clear statement of the problem. It requires a plan. It builds on exiting data. It collects new data also.

DATA COLLECTION
Data collection is nothing more than planning for and obtaining useful information on key quality characteristics. It is information that is translated into a form which is more convenient to use. Data is collected to establish factual basis for making decisions.

SOURCES OF DATA COLLECTION

A systematic extraction of data for a particular purpose from various sources includes questionnaire, interviews, observation, and existing records. There are two types of sources of data collection: Primary Research Secondary Research PRIMARY DATA:-

It is something which is collected by researcher for the specific purpose of answering.

METHOD OF COLLECTING PRIMARY DATA

DIRECT PERSONAL INTERVIEW

INDIRECT ORAL INVESTIGATION

MAIL QUESTIONNAIRE METHOD

INFORMATION FROM CORRESPONDENTS

PRIMARY DATA is data observed or collected directly from firsthand experience. It is an original data compiled and studied for a

specific purpose.

SECONDARY DATA:The secondary data is being obtained by the literature study and articles from the internet.

METHOD OF SECONDARY DATA

PUBLISHED SOURCES

UNPUBLISHED SOURCES

PERIODICALS

JOURNALS NEWSPAPERS

QUESTIONNAIRE

SECONDARY DATA the data collected in the past or by other parties is called secondary data.

RESEARCH PROCESS
CHOOSING THE RESEARCH PROBLEM

REVIEW OF RELATED LITERATURE

COLLECTION OF DATA

INTERPRETATION OF DATA

PREPARING THE RESEARCH REPORT