1. An appraisal on the overall financial
performance of Indian bank
ANTUVANE S
11397108

2. Introduction
• In any bank, the two important financial statements are the
Balance Sheet and Profit & Loss Account of the business.
• When these statements of the last few year of any
organization are studied and analyzed, significant
conclusions may be arrived.

3. Indian banking industry

4. Profile of Indian bank
• The bank was established on 15th of August, 1907
• Bank was nationalized in 19th July of the year 1969
• Lead bank for nine districts
• A leader in rural development
• Pioneer in introducing the latest technology
• Three subsidiary companies
• 1958 branches all over India

5. OBJECTIVE
• To analyze the profitability, solvency and liquidity of the bank.
• To analyze and compare the financial statements of Indian
bank for a period of four years from 2009-2012
• To study the various financial activities and analyze the
financial performance of Indian bank

6. LIMITATIONS
• The present study aims to evaluate the financial performance
of the bank only for the past four year’s performance with the
help of financial statement.
• To analyze the performance of the bank with restricted data
available to public

7. DATA ANALYSES

8. Current ratio
1.79 1.77
1.6
1.8
1.6 1.29
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2009 2010 2011 2012
•Current ratio is the relationship between the total current asset and current liabilities
•The ideal current ratio for a bank is 1.33: 1

9. Net profit ratio
18.57
18.25
19
18.5
17.21
18
17.5
17
15.82
16.5
16
15.5
15
14.5
14
2009 2010 2011 2012
•The net profit percentage is the ratio of after-tax profits to net sales.

10. Operating profit ratio
31.22 31.72
35 30.41
30 26.13
25
20
15
10
5
0
2009 2010 2011 2012
•The operating profit ratio is an indicator of banks earning power from its
current operations
•Indian bank shows a healthy sign based on the operating profit ratio

11. Net interest margin
3.9
3.9
3.75
3.8 3.71
3.7
3.54
3.6
3.5
3.4
3.3
2009 2010 2011 2012
Net interest margin (NIM) is a measure of the difference between
the interest income generated by banks and the amount of interest paid
out to their lenders

12. Capital adequacy ratio
13.98
14 13.56
13.47
13.5
12.71
13
12.5
12
2009 2010 2011 2012
•Capital adequacy ratio is the measure of a bank's financial strength
• It is also called CRAR-Capital to Risk-weighted Assets Ratio.

13. Cost to income ratio
48.56
50 38.64 38.71
36.92
40
30
20
10
0
2009 2010 2011 2012
•Cost-to-income ratio equals a bank's operating costs divided by its operating
income
•The cost-to-income ratio shows the efficiency of a firm in minimizing costs
while increasing profits

14. Return on asset
1.62 1.67
2 1.53
1.31
1.5
1
0.5
0
2009 2010 2011 2012
•Return on asset is an indicator of how profitable a bank is relative to its total
assets.
• ROA gives an idea as to how efficient bank is at using its assets to generate
earnings

15. Non performing asset NPA
0.89
0.9
0.88
0.86
0.84 0.81 0.8
0.82
0.8
0.76
0.78
0.76
0.74
0.72
0.7
0.68
2009 2010 2011 2012
NPA Recovery during 2011-12 stood at ` 466.26 crore as against ` 363.04
crore 2010-11.
NPA has a decreasing trend; Different mechanisms like Lok
Adalat, DRT, SARFAESI, Negotiated settlements and OTS policy have resulted
in reduction in NPA.

16. Findings from financial statement
•Reserves and surplus have shown an increase of 12.56percent in 2012.
•Borrowings of the bank have increased tremendously in the year 2012, with
an increase of 279percent form the year 2008.
•Investments have been increasing consistently in all these four years. It has
increased from 3.86percent in 2009 to 73.29percent in 2012.
•Advances increased at a higher rate than the deposits . Deposits increased to
97.89percent in 2012, whereas advances increase to 126percent in 2012.

17. Financial snapshot

18. Suggestion
•The bank may take efforts to increase its current assets
•Securities given against loans and the creditworthiness of the person have to
carefully monitor to avoid NPA.
•New schemes can be in the form of higher rate of interest and shorter maturity period
for FD’s
•Indian bank can also think for improving its day-to -day service to its clients.
• Proper independent working atmosphere should be developed
•Indian bank can simplify the procedure of advances for quick disbursement

19. Conclusion
•The bank has succeeded in maintaining a reasonable profitability position
•Current assets and liabilities (current liquidity) of the bank is satisfactory
•. Level of NPA is showing a decreasing trend which is good for the
growth of the bank.
•The financial position and overall performance of the bank is satisfactory

20. Thank you
Thank you