INSTITUTE OF MANAGEMENT AND INFORMATION TECHONOLOGY

INSTITUTE OF MANAGEMENT AND INFORMATION TECHONOLOGY

 To know the financial position of the OSCB Ltd.
 To know strength of bank to fulfill its current
obligation or not .
 Find out strength and weakness of the OSCB Ltd.
 To know the overall profitability of O.S.C.B. Ltd.
 Know the liquidity position of OSCB Ltd.
 Know the long term solvency of OSCB Ltd.

INSTITUTE OF MANAGEMENT AND INFORMATION TECHONOLOGY

 Time factor plays a vital role. The study was
conducted with in 8 weeks.
 Due to heavy burden of work getting information
from staff was not possible.
 The bank may or may not show true financial
result in annual report.
 The data provided by the organization was not up
to date.
Despite of certain limitations, efforts has
been taken to make the project report scientific
and reliable one as far as possible.
INSTITUTE OF MANAGEMENT AND INFORMATION TECHONOLOGY
The whole of my study is based on secondary data of
OSCB Ltd. I have not taken any primary data for my
study because it is not suitable for our study. I have
taken the following secondary data –
 Annual report of OSCB Ltd.
 Balance sheet of OSCB Ltd.
 Profit & Loss account of OSCB Ltd.
 Annual audit report of OSCB Ltd.
 Development action plan of OSCB Ltd.

INSTITUTE OF MANAGEMENT AND INFORMATION TECHONOLOGY

 Liquidity Ratio:
• Current ratio
• Absolute Liquid Ratio

 Leverage Ratio:
• Debt-equity Ratio.
• Solvency Ratio.
• Debt Assets Ratio.
• Fixed Asset to Current Asset Ratio
 Profitability Ratio:
• Return on capital employed.
• Return on equity capital
• Earning per share.

INSTITUTE OF MANAGEMENT AND INFORMATION TECHONOLOGY

In the convention of current ratio, the minimum of 2:1 is referred as good to a
rule of Thumb. So current ratio of OSCB in the year 2002-03, 03-04, 04-05 is
not satisfactory and 2005-06, 06-07, 07-08 is satisfactory. Which mean
current financial position is satisfactory.
INSTITUTE OF MANAGEMENT AND INFORMATION TECHONOLOGY
The standard norm of absolute liquate ratio is 0.5:1 .In case of OSCB in
the year 2002-03, 03-04, 04-05, 05-06,06-07 is not satisfactory and 2007-
08 is satisfactory. Which mean it fulfill it’s current obligation.
INSTITUTE OF MANAGEMENT AND INFORMATION TECHONOLOGY
In OSCB the outsider fund has increased from 2002-2006 which states that the claim of
outsider is greater than those of own but in the year 2006-2008 the owners fund
increased than outsider’s fund.
INSTITUTE OF MANAGEMENT AND INFORMATION TECHONOLOGY
It indicates the relationship between the total liability to total asset of the firm.
Generally the low solvency ratio is more satisfactory .
But in OSCB it is high over the years. So solvency ratio is not satisfactory.
INSTITUTE OF MANAGEMENT AND INFORMATION TECHONOLOGY
The debt asset ratio of OSCB is very higher over the year which
means the debt is very high than Total asset so it is not good to raise
additional lone.

INSTITUTE OF MANAGEMENT AND INFORMATION TECHONOLOGY

The fixed asset of OSCB is lower than current asset over the years,
which means there is no scope of idle of asset. It is also shows that the
working capital of the bank is very high. It is good. From2002-08 the
current asset is increasing over fixed asset.

INSTITUTE OF MANAGEMENT AND INFORMATION TECHONOLOGY

The return on capital employed of OSCB is increasing from 2002-06 .But in 2006-
07 it is decreased and now it is increasing which is a good sign for bank. Which
mean the overall profitability is increasing.
INSTITUTE OF MANAGEMENT AND INFORMATION TECHONOLOGY
The return on equity share of OSCB shows that it provides a high rate
of dividend to its equity share holders.

INSTITUTE OF MANAGEMENT AND INFORMATION TECHONOLOGY

The EPS of OSCB is gradually increases except in 2006-07,
which is satisfactory to shareholders.

INSTITUTE OF MANAGEMENT AND INFORMATION TECHONOLOGY

 The bank should focus more on advancing loans and
money from depositors.
 It should recover its money from defaulters in a limited
time.
 It should ready for the coming competitive as all banks are
going to be privatize.
 It should diversify its business and should give loans to
non-agricultural sector.
 It should invest in long term, so that it should increase the
liquidity position of the firm.
 Asset should be properly utilized to get a sound return.

INSTITUTE OF MANAGEMENT AND INFORMATION TECHONOLOGY

 Ratio analysis is an important financial tools to
measure financial position of a firm. It is with
the help of ratio analysis the financial
statement can be analyzed more clearly and
decisions made from such analysis.
 From above analysis it may conclude that the
financial position of the Bank is satisfactory .
And bank should take step to improve it’s
position.

INSTITUTE OF MANAGEMENT AND INFORMATION TECHONOLOGY

INSTITUTE OF MANAGEMENT AND INFORMATION TECHONOLOGY