FINANCIAL INSTITUTIONS AND MARKETS

XIM UNIVERSITY , BHUBANESWAR

PRESENTATION – 1
FINANTIAL ANALYSIS OF CANARA BANK

TO BY SATTWIK S. RATH
PROF. ASHOK K.MISHRA USCBC21120
 CANARA BANK

FINANCIAL ANALYSIS
OF
 CONTENTS

OBJECTIVES - 4
INDIAN ECONOMY - 5
BANKING INDUSTRY - 6
CANARA BANK - 7
FINANCIAL RATIOS - 8
GRAPHS AND ANALYSIS - 9,10,11
CONCLUSION - 12
 OBJECTIVES
 Financial Ratios are relationship between two accounting figures expressed mathematically.

 The objective of analysing financial ratios are –

 Evaluating the companies performance and compare it with other

business in the industry.

 Ascertaining financial position of the company.

 Interpreting key financial statements.

 Assess operating efficiency of the business.

 My objective is to find the Financial Ratios , Make their graph , Analyse them and to conclude with
the Financial status of the Bank
 INDIAN ECONOMY
 India is a mixed economy. This mixed economic system was introduced keeping in view a socialist pattern of
society.
 Since India is a welfare state , the economy of India is the corner stone for the growth of the nation with
equity and social justice
 After the introduction of new economic policy in 1991 the concept of liberalisation , privatisation and
globalisation (LPG) characterised the economy of India for international competitiveness
 It attracts huge amount of foreign investment inflow with technological transfer. It peruses export-led growth
and its benefits percolating to the grass root level for inclusive economic growth.
 Indian economy is a middle income market economy and presently it is the worlds fifth largest economy by
nominal GDP and third largest by purchasing power parity (PPP)

 The share of Indian economy is 7.5 % of world economy by PPP terms ,The service sector is the fastest
growing sector making contributing about 50% of India’s GDP

 Presently India's GDP is $3.469 trillion dollar and is expected to be $5 trillion dollar by 2025
 BANKING INDUSTRY IN INDIA
 The imperial bank of India was nationalised in 1955 in the State Bank of India (SBI) 14 private bank at the
first instance get nationalised in 1969 and in 1980 another 6 banks were added to it

 In 1952 National Bank of Agricultural and Rural Development (NABARD) was setup considering the needs
of agriculture and rural development in India acting as the refinancing banks for upgrading the role of banks
at different level in India

 The government of India formed the banking reform committee under the chairmanship of Narashimam in
1996 giving different recommendations for better performance of the banking system in India to maintain
satisfactory level of profitability and overall competitiveness of the bank

 At present there is a lot of expectation from banking industries having there best scenario with expected
efficiency and performance
 CANARA BANK
 Canara Bank is a central public sector undertaking bank. It was founded in 1st July 1906 as Canara
bank Hindu permanent fund at Mangalore by Ammembal Subba Rao

 In 1996 canara bank was the first bank to get ISO certification for ‘Total Branch Banking

 Its products and services includes Asset management , Commercial banking , Credit Cards , Investment
Banking , Mortgages , Pensions , Private Banking , Retail Banking etc

 It is a well performing bank with revenue Rs 84,525 crore, operating income Rs20,009 crore and net
income Rs 2,557 crore.
 FINANCIAL RATIOS
Years Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
Earning Per Share (Rs.) -53.61 20.63 -70.47 4.71 -26.50

Years Mar-16 Mar-17 Mar-18 Mar-19 Mar-20

Dividend/Share (Rs.) 0.00 1.00 0.00 0.00 0.00

Years Mar-16 Mar-17 Mar-18 Mar-19 Mar-20

Capital Adequacy Ratios (%) 11.08 12.86 13.22 11.90 13.65

Years Mar-16 Mar-17 Mar-18 Mar-19 Mar-20

ROCE (%) 1.32 1.56 1.59 1.56 1.32

Years Mar-16 Mar-17 Mar-18 Mar-19 Mar-20

CASA (%) 25.74 30.23 31.82 29.18 31.37

Years Mar-16 Mar-17 Mar-18 Mar-19 Mar-20

Net NPA To Advances (%) 6.00 6.00 7.00 5.00 4.00

Years Mar-16 Mar-17 Mar-18 Mar-19 Mar-20

Net Interest Margin (X) 1.76 1.69 1.97 2.08 1.81

Years Mar-16 Mar-17 Mar-18 Mar-19 Mar-20

Return on Assets (%) -0.50 0.19 -0.68 0.04 -0.30

Years Mar-16 Mar-17 Mar-18 Mar-19 Mar-20

Return on Equity/ Net worth (%) -10.75 3.96 -14.51 1.16 -6.78

Years Mar-16 Mar-17 Mar-18 Mar-19 Mar-20

Net Profit Margin (%) -6.38 2.71 -10.23 0.74 -4.56
 GRAPHS AND ANALYSIS

Earning Per Share (Rs) Dividend Per Share (Rs)

FIG - 1 40.00 FIG - 2
1.20
20.00
1.00
0.00
0.80
-20.00 0.60
-40.00 0.40
-60.00 0.20
0.00
-80.00

( Net profit / Equity shares ) ( Dividend / Equity shares )

Capital Adequacy Ratios (%)

ROCE (%)
FIG - 3 16.00 FIG - 3 1.80
14.00
1.60
12.00 1.40
10.00 1.20
8.00 1.00
0.80
6.00
0.60
4.00
0.40
2.00 0.20
0.00 0.00

[ Capital ( Tier 1 + Tier 2 ) / ( EBIT / Capital Employed )

Risk weighted assets ]
 CASA (%) Net NPA To Advances (%)
FIG - 5 35.00 FIG - 6 8.00

30.00 7.00
6.00
25.00
5.00
20.00
4.00
15.00
3.00
10.00 2.00
5.00 1.00
0.00 0.00

( Current Ac + Saving Ac / Total ( Net NPA / Advances )

deposits )

Net Profit Margin (%) Return on Assets (%)

FIG - 7 4.00 FIG - 8 0.40

2.00 0.20
0.00
0.00
-2.00
-4.00 -0.20
-6.00
-0.40
-8.00
-0.60
-10.00
-12.00 -0.80

( Net profit / Total interest ( Net Profit / Asset )

income )
 Return on Equity Net Interest Margin (X)
FIG - 9 / Networth (%) FIG - 10 2.50
100%
90% 2.00
80%
70% 1.50
60%
50%
1.00
40%
30%
20% 0.50
10%
0% 0.00

( Net Profit / Equity ) ( Interest earned – Interest

expenses / Average Advances )
 CONCLUSION
 Observing the above indicators and their growth trend over the years since March 16 to March 20
the performance of the carana bank is not attractive as it is expected

 The pandemic from March 20 definitely impacted the performance of the bank

 Comparing its overall performance between March 16 to March 17 the future prospects signals
bright after 2020 depending upon the Liquidity , Profitability and safety norms perused by the bank
THANK YOU