Final Report..

CHAPTER NO – 1
INTRODUCTION
The study “Financial analysis and performance” was conducted in

order to know the financial status of the company.
The scope of the study is to know the financial activities of the

bank, its contribution of the financial activities within the bank. The field of
financial analysis is compared of ratio analysis trend percentages,
comparative statement and common size statement analysis.
The study is made to analyze the financial performance with

reference to financial statements like profit and loss account and balance
sheet with the help of tables, graphs, ratios, providing suggestions for
improving the methods and procedure followed in the bank.
The main aim is to study the activities of finance department by

utilizing the theoretical knowledge relating to practical situations and to
highlight difference in practice. The procedure followed in A/c department
in particular with regard to the appellation of theory in practice are
situated. A critical review of the effectiveness of decision making process
and suitable recommendations are also made.
After analyzing the financial statements it’s found that the overall
financial position of the company is satisfactory and there is a suitable
growth and improvement in the performance as a whole. To achieve
more profits and maintain the standards, it’s recommended that the
company should be given more importance to inventory management.
In an bank there will be a normal of activities carried on live
marketing planning financiers etc., among all these finance plays a major
role, which made me to study on this.
Finance came to be studies as a part of economics before the turn

of the present category formation of large sized undertaking by
consolidating the smaller ones brought before the management the
problem of financing to these enterprises.
The study of potentiality of different securities as a source of

procuring funds from outside world and the role and functions of
institutional agencies continue to be emphasized during 1921.
The problem of financing ensured a new dimension in the II world

war. In 1940’s financial wizards continued to be concern with the
necessity for choosing sells a financial structure as would be able to with
stands stress and strains of the part was adjustments.
In 1960’s and 70’s period was marked by a very faithful and

exciting era for a non of interactive developments. The financial manages
started thinking on such important issues. As aggregate stock prices
business sales etc.
The dimensions of business financial which was earlier limited to

period but in recent years If broadened according to day to day
operations.
MEANING OF FINANCIALS ANALYSIS
One of the important step of accounting is the analysis (and

interpretation) of the financial statements which results in the presentation
of data the helps various categories of persons in forming opinion about
the profitability and financial position of the business concern.
In the words of Myres “Financial of statement analysis is largely a

study of relationship among the various financial factors in a business as
disclosed by a single set of statement and a study of the trend of the
factors as shown in a series of statements.
The most important objective of the analysis and interpretation of

financial statements is to understand the significance and meaning of
financial statement data to known the strength and weakness of a
business undertaking.
So that a forecast may be made of the prospects of that

undertaking.
FINANCIAL STATEMENTS
A financial statement is an organized collection of data according to
logical and consistent according producers. Its purpose is to convey an
understanding of some financial aspects of business firms. It way show a
position at a moment of time as in the case of balance sheet, or may
revel a series of activities over a given period of time as in the case of
and income statement.
Therefore the term financial statement generally refers to two basic

statements, such as income statement and balance sheet. Apart from
these two statement, such as income statement and balance sheet.
Apart from these two statements, a bank may also prepare a statement of
retained earning and statement of changes in Financial Position.
OBJECTIVES OR USES OF FINANCIAL ANALYSIS
Financial analysis is helpful in assessing financial position and

profitability of a concern. The following are the main objectives of analysis
of financial statements.
To judge the present and future earning capacity or profitability of the

concern.
To judge the operational efficiency as a whole and of its various part or

departments.
To judge the short term and long term solvency of the concern for the
benefit of the debenture holders and trade creaditors.
To have comparative study in regard to one department with another

departments.
To help in assessing developments in the future by making forecasting
and preparing budgets.
PROCESS OF FINANCIAL ANALYSIS
The analysis of financial statements is a process of evaluating the

relationship between components of financial statements to obtain a
better understanding of the firms position and performance. The
functional analysis is the process of selection, relation and evaluations.
The first task of the financial analysis is to select the information relevant
to the decision under consideration from the total information
contained in the financial statement.
The second step is to arrange the information in a highlights significant

relationship.
The final step is interpretation and drawing of inference and conclusions.
TYPES OF FINANCIAL ANALYSIS
On the basis of On the basis of

Material used Modus Operandi
Internal External Horizontal Vertical

Analysis Analysis Analysis Analysis
1. On the basis of material an used
a) External Analysis :
Those persons who are not connected with enterprises make

it. They do not have access to the enterprises. They do not have
access to the detailed record of the company and have to depend
mostly on published statements, investors, credit agencies,
Governmental agencies and research scholars make such type of
analysis.
b) Internal Analysis :
The internal analysis is made by those persons who have

access to the books of accounts. They are members of the
organization. Analysis of financial statements or other financial data
for managerial purpose is the internal type of analysis. The internal
analyst can give more reliable result than the external analyst
because every type of information is at his disposal.
2. On the basis of modus operandi :
a) Horizontal analysis :
In case of this type of analysis financial statements for

number of years are reviewed and analyzed. The current years
figures are compared with the standard or base year. The analysis
statement usually contains figures for two or more years and the
changes are shown regarding each item from the percentage.
Since the type of analysis is based on the data from year to year
rather than on one date, its also termed as Dynamic analysis.
b) Vertical analysis :
In case of this type of analysis a study is made of the

quantitative relationship of the various items in the financial
statement on a particular date. Such an analysis is useful in
comparing the performance of several banks in the same group,
or divisions or departments in the same company. Its also termed
as static analysis.
TECHNIQUES OF FINANCIAL ANALYSIS
The analysis and interpretation of financial statements is used to

determine the financial position and operations as well. A number of
techniques are used to study the relationship between different
statements. The following methods of analysis are used.
FINANCIAL ANALYSIS TECHNIQUES
Comparative Common
Funds Cash
Financial Size Ratio
Trend - % flow Flow
Statement Financial Analysis
Analysis analysis
Statement
Comparative
Comparative
Income
B/s
Statement
1. Comparative Financial Statements
The comparative financial statements are the statements of the

financial position at different periods of time. The elements of financial
position are shown in a comparative form so as to give an idea of
financial position at two or more periods.
Thus, in these statements, figures for two or more periods are
placed side by side to facilities easy comparison both the income
statements and B/S can be prepared in the form of comparative
financial statements.
a) Comparative income statements
The income statements discloses net profit or net loss or

account of operations. A comparative income statement will show
the absolute figure for two or more periods, the absolute change
from one period to another and if desired the change in terms of
percentages, since the figure for two or more periods are shown
side by side with the help of this we can quickly ascertain whether
sales have increased or decreased, whether cost of sales have
increased or decreased etc., therefore only a glance of data
incorporated in this statement will be helpful in making useful
conclusions.
b) Comparative balance sheet :
B/s of two or more different dates can be used for comparing

assets and liabilities and finding out any increase or decreased in
those items. Therefore in a single balance sheet the emphasis is
on present position, it’s on change in the comparative balance
sheet. This type of B/s is very helpful in studying the trends in a
business concern.
2. Common size financial statements :
Common size financial statements are those in which figures

reported are converted into percentages to some common base.
When this method is pursued the income statement exhibits each
expense item or group of expense items as a percentages of net
sales, and net sales are taken at 100 percent. Similarly each individual
asset and liabilities classification is shown as a percentage of total
assets and liabilities respectively statements prepared in this way are
referred to as common size statements.
3. Trend percentages :
Trend percentages are very much helpful in making a

comparative study of the financial statements for several years. The
way calculating trend % involves the calculation of % relationship that
each item bears to the same item in the base years. Each item of the
base year is taken as 100 and on that basis the %’s for each of the
years are calculated. These percentages can be taken as index
number of showing the relative changes in the financial data resulting
with the passage of time. This method is a very much useful, analytical
device for management since by substitution of percentages for large
amounts, brevity and readability are achieved.
4. Funds flow statements
Funds flow statement is a financial statements, which indicates

the various means by which the funds have been obtained during the
certain period and the ways to which these funds have used during the
period.
In short, it’s the statement, which shows the movement of funds

b/w two balance sheet dates.
According to Anthony “the funds flow statements described the
sources from which additional funds were derived and the uses to
which these funds were put.
The funds flow statements is called by different names, such as,

statements of sources and applications of funds, statement of changes
in working cap where got and statement and statements of resources
provided and applied.
5. Cash flow statements
Cash flow statements shows the movement of cash and their

causes during the period under consideration. It may be prepared
annually half yearly monthly weekly or for any other duration.
Cash flow statement is prepared to show the impact of financial

policies and procedures on the cash position of the firm and takes into
consideration all transactions that have a direct impact upon cash.
A cash flow statements concentrates on transactions that have

direct impact on cash. It deals with the inflow and out flow of cash
between two balance sheet dates. In other words, a statement of
changes in a financial position of a firm on cash basis is called a cash
flow statement.
CHAPTER – 2
RESEARCH DESIGN
“A Research design is the arrangement of conditions for collection and

analysis of data in a Manuel that aims to combine relevance to there search
purpose with economy in procedure”.
- Eleure setting and others
The followings re the various steps in the research design : -
1) The collection of information to understand the competitions in this line

of activity.
2) Inter action with managers to understand the means of financial

analysis.
3) Decision regarding the financial analysis.
4) Collection of company financial statement details
5) Analysis of major components of financial statements
6) Forwarding certain recommendations and conclusions to the company.
TITLE OF THE STUDY
“A STUDY ON FINANCIAL AND PERFORMANCE ANALYSIS OF AIRTEL”
OBJECTIVES OF THE STUDY

1) To study the pattern and procedure followed regarding financial
analysis and performance in Airtel
2) To analyze the performance of airtel during three years.
3) To study the existing financial position
4) To make a critical review of the effectiveness of decision making

process and make suitable recommendations.
5) To provide managers with reports to help them control over financial

activities.
SCOPE OF THE STUDY
The study is confined to the limits of airtel only. It also covers the various
financial statements such as balance sheet, profit / loss account income
statement for 3 years.
REFERENCE PERIOD
The period covered under this study is 3 financial years that is from
2005-2007
TOOLS FOR THE COLLECTION OF DATA
Data required for the study is collected through published statements of

annual account’s of Vijaya Bank such as profit and loss account and balance
sheet, this supplemented by the information gathered during the discussion with
the bank manager.
PLAN OF ANALYSIS
The analysis has been made with the help of financial statements of the
airtel company. From the financial statements the classification of assets and
liabilities are made. The analysis is made separately on different assets and
liabilities along with tables, graphs and interpretation for last 3 years i.e., from
2005-2007
OPERATIONAL DEFINITION OF CONCEPT
Financial information is required for financial analysis, planning and

decision.
1) Financial Statements :
Balance sheet and profit and loss account are the basic
instruments of an accounting system to communicate financial
information to users.
2) Assets :
Assets represent economic resources possessed by the firm.

Fixed assets are used in Business for more than accounting period of
one year, while current assets are converted into cash within an
accounting period.
3) Liabilities :
Liabilities are amount payable by the firm liabilities payable within
an accounting period are called liabilities and those payable after a year
or so are called long term liabilities.
4) Revenues :
Revenues are benefits which customers contribute to the firm in

exchange for goods or services provided by the bank.
5) Expenses :
The cost of the economic resources used in providing gods and

services to the customers is called expenses.
6) Profits :
Profit is the difference between revenue and expenses
7) Ratio Analysis :
Ratio analysis is a process of identifying the financial strengths

and weaknesses of the firm.
8) Working capital
The fund required for the actual running of any business or unit.
The purchase of new materials meeting the manufacturing selling and
administrative expenses etc is termed as working capital.
9) Net worth
Equity share capital preference share capital reserves and surplus

less the intangible assets (including losses)
10) Capital Employed
Capital employed is equal to total of fixed and current assets as

reduced by current liabilities.
LIMITATION OF THE STUDY
Every effort has been made to make study complete and has exhaustive
as possible. However the study in not free from certain limitations.
1) As the time available is limited and the subject is vast, the study is
confined only to the main financial statements.
2) The study is only confined to airtel and the performance of other

company is not analyzed with it.
3) The study is limited to analysis of the financial statement for 3 years

only.
4) Some information is not collected as it is confidential.

CHAPTER -3
INDUSTRY PROFILE
MEANING
A banking company has been defined under section 5(1) (c) of the
banking company regulation act of 1949, " any company which transacts the
business of the banking in India".
According to section 5(1) (b) of the same act defines the banking has
" accepting for the purpose of lending or investment of deposits money from
the public, repayable on demand or otherwise and withdrawal by cheques ,
drafts, orders or otherwise".
ROLE OF COMMERCIAL BANKS IN A MODREN ECONOMY
Bank plays significant role in the economic development of the country,

it can be seen from the following points.
1. Deposits mobilization : Banks play significant role in mobilizing

the savings of the people by initiating different deposit schemes by
extending a network of branches through out the country.
2. Granting of credit : Banks credit is essential for financing trade,

commerce, industry, agriculture, and other productive activities,
banks extend credit to all these fields in order to have economic
development of the country.
3. Creation of credit: Commercial banks can increase or decrease
the money supply ij the country and inject elasticity in to the credit
system thought their function of creation of money.
4. Channalise funds in to productive investment: Banks not only

lend funds but also ensure that funds are lend only for productive
purposes by monitoring properly.
5. Provision of finance to the government : Bank provide short-

term funds by purchasing trustee bills and long term funds by
subscribing government bonds provide finance to the government.
6. Protecting the funds of depositor : Banks providing safety to the

funds depositor by lending to different kinds of borrowers engaged
in different activities in different areas to be invested in productive
projects and they also ensure that advances are properly secured
and will comeback in time.
7. Provision of remittance facility : Banks provide remittance facility

through remittance mechanism of bank drafts, mail transfers, telegraphic
transfers, traveler's. cheques, circular note etc.. And help the businessmen to
secure funds when needed.
8. Provision of medium of exchange : Bank deposits withdrawal
by cheque or transferable by credit transfers serves as a means of
settlements of debts by this it reduces use of legal tender money.
9. Discharge of social responsibility : Banks have recognized their

social responsibility very well and now a days they serve in the
best interest of the society at large . it is their bounded duty to
grant credit to every section of the society.
10. Innovative services : Modern banks under take a number of innovative

services like, merchant banking, underwriting of securities, factoring,
leasing housing finance, setting up of mutual funds etc. For the economic
BOOKS OF ACCOUNTS TO BE MAINTAINED BY BANKING

COMPANIES
A banking company is required to maintain various ledger and register

as per the requirements of the banking regulation act 1949 all the books and
registers a bank has to maintain can be classified into the following categories
1. Principle ledger
2. Subsidiary ledger.
3. Other register and memorandum books

PRINCIPLE LEDGER
A banking company is required maintaining their following

principle books
a. Cashbook: - which provide the summary of collection and

payments of the bank.
b. General ledger: - general ledger provides details regarding

expensed assets not covered under subsidiary books and also
contain the control accounts of subsidiary books.
1. SUBSIDIARY LEDGER It
includes :
(a) Receiving cashiers counter Cash books;
(b) Paying cashiers counter cash books;
(c) Current accounts ledger;
(d) Saving bank accounts ledger;
(e) F-Deed deposit accounts ledger;
(f) Investment ledger;
(g) Cash credit ledger;

(h) Loan ledger;
(i) Bills discount and purchased ledger; G)

Receiving deposit account ledger; (k) Fixed deposit
account ledger;
(I) Customers acceptances, endorsement and guarantee ledger etc.,

2. OTHER REGISTERS AND MEMORANDUM BOOKS It
includes :
(a) Bills for collection register
(b) Share security register
(c) Jewelry register
(d) Demand draft register
(e) Safe custody register
(f) Standing order register
(g) Dishonored check register

(h) Letter of credit register
(i) Lockers register
FEATURES OF BANK ACCOUNTS
Following are some of the feature of bank accounting.
1. Banking companies have to maintain books of accounts

under double entry system
2. It has to maintain books of accounts as reserved under the

provision of banking regulation act.
3. The posting of transaction in the ledger will be based on

deposit credit slips.
4. Sell balancing system of ledger is followed in accounting by

banking companies.
LIQUIDITY V/S PROFITABILITY
A liquidity and safety principal aim at meeting demands of depositors

for cash tin full and in time and is considered just one principle. That is
principle of liquidity but profitability aims at paying of a handsome dividend to
the shareholders.
The objective of both the principles are complicating in their nature in

their words they are opposing considerations. The most liquid asset is not at
all profitable and the most profitable asset is least liquid.
For instance, the most perfect asset cash is not profitable, the most
profitable asset and advances are least liquid.
CHAPTER -3
INDUSTRY PROFILE
MEANING
A banking company has been defined under section 5(1) (c) of the
banking company regulation act of 1949, "any company which transacts the
business of the banking in India".
According to section 5(1) (b) of the same act defines the banking has
" accepting for the purpose of lending or investment of deposits money from
the public, repayable on demand or otherwise and withdrawal by cheques ,
drafts, orders or otherwise".
ROLE OF COMMERCIAL BANKS IN A MODREN ECONOMY
Bank plays significant role in the economic development of the country,

it can be seen from the following points.
7. Deposits mobilization : Banks play significant role in mobilizing

the savings of the people by initiating different deposit schemes by
extending a network of branches through out the country.
8. Granting of credit : Banks credit is essential for financing trade,

commerce, industry, agriculture, and other productive activities,
banks extend credit to all these fields in order to have economic
9. Creation of credit: Commercial banks can increase or decrease
the money supply ij the country and inject elasticity in to the credit
system thought their function of creation of money.
10. Channalise funds in to productive investment: Banks not only

lend funds but also ensure that funds are lend only for productive
purposes by monitoring properly.
11. Provision of finance to the government : Bank provide short-

term funds by purchasing trustee bills and long term funds by
subscribing government bonds provide finance to the government.
12. Protecting the funds of depositor : Banks providing safety to the

funds depositor by lending to different kinds of borrowers engaged
in different activities in different areas to be invested in productive
projects and they also ensure that advances are properly secured
and will comeback in time.
7. Provision of remittance facility : Banks provide remittance facility

through remittance mechanism of bank drafts, mail transfers, telegraphic
transfers, traveler's. cheques, circular note etc.. And help the businessmen to
secure funds when needed.
10. Provision of medium of exchange : Bank deposits withdrawal
by cheque or transferable by credit transfers serves as a means of
settlements of debts by this it reduces use of legal tender money.
11. Discharge of social responsibility : Banks have recognized their

social responsibility very well and now a days they serve in the
best interest of the society at large . it is their bounded duty to
grant credit to every section of the society.
10. Innovative services : Modern banks under take a number of innovative

services like, merchant banking, underwriting of securities, factoring,
leasing housing finance, setting up of mutual funds etc. For the economic
BOOKS OF ACCOUNTS TO BE MAINTAINED BY BANKING

COMPANIES
A banking company is required to maintain various ledger and register

as per the requirements of the banking regulation act 1949 all the books and
registers a bank has to maintain can be classified into the following categories
4. Principle ledger
5. Subsidiary ledger.
6. Other register and memorandum books

PRINCIPLE LEDGER
A banking company is required maintaining their following

principle books
a. Cashbook: - which provide the summary of collection and

payments of the bank.
b. General ledger: - general ledger provides details regarding

expensed assets not covered under subsidiary books and also
contain the control accounts of subsidiary books.
1. SUBSIDIARY LEDGER It
includes :
(h) Receiving cashiers counter Cash books;
(i) Paying cashiers counter cash books;
(j) Current accounts ledger;
(k) Saving bank accounts ledger;
(l) F-Deed deposit accounts ledger;
(m)Investment ledger;
(n) Cash credit ledger;

(h) Loan ledger;
(i) Bills discount and purchased ledger; G)

Receiving deposit account ledger; (k) Fixed deposit
account ledger;
(I) Customers acceptances, endorsement and guarantee ledger etc.,

2. OTHER REGISTERS AND MEMORANDUM BOOKS It
includes :
(h) Bills for collection register
(i) Share security register
(j) Jewelry register
(k) Demand draft register
(l) Safe custody register
(m)Standing order register
(n) Dishonored check register

(h) Letter of credit register
(i) Lockers register
FEATURES OF BANK ACCOUNTS
Following are some of the feature of bank accounting.
5. Banking companies have to maintain books of accounts

under double entry system
6. It has to maintain books of accounts as reserved under the

provision of banking regulation act.
7. The posting of transaction in the ledger will be based on

deposit credit slips.
8. Sell balancing system of ledger is followed in accounting by

banking companies.
LIQUIDITY V/S PROFITABILITY
A liquidity and safety principal aim at meeting demands of depositors

for cash tin full and in time and is considered just one principle. That is
principle of liquidity but profitability aims at paying of a handsome dividend to
the shareholders.
The objective of both the principles are complicating in their nature in

their words they are opposing considerations. The most liquid asset is not at
all profitable and the most profitable asset is least liquid.
For instance, the most perfect asset cash is not profitable, the most
profitable asset and advances are least liquid.
CHAPTER-4
COMPANY PROFILE
INTRODUCTION
Late Shri A.B.Shetty founded Vijaya Bank and other enterprising

formers founded Vijaya Bank on 23rd- October 1931 in Mangalore, Karnataka the
objective of the founders was essentially to promote Banking habit. Thrift and
entrepreneurship among the farming community of Dakshina Kannada district
in Karnataka State. The bank became a scheduled bank in 1958 Vijaya Bank
steadily grew into a large all India bank, with 9 smaller banks merging with it
during the 1963-68, the credit for this mergers well as growth goes to late Shri
M. Sunder Ram Shetty, who was then the chief executive of the bank has built a
network of 842 branches that span all 28 states and 4 union territories in the
country
Each Branch provides effective and efficient services and significantly

contributes to the growth of the individual and the nation.
SHARE CAPITAL
Government of India and institutional investors such as mutual funds UTI

holds the share capital of Vijaya Bank. Insurance company. Other finance
institution and private corporate Bodies, Indian public NRI's and other
commercials banks, government of India acts as promoter of the bank it assist
and guides the bank in times of financial difficulties
The distribution of shareholdings as in 31-03-2004 is given below.
Category No of shares Amount in %in

held RS total
Government of India 233517800 2335178000 53.87
Banks & Financial 9329242 93292120 2.15

Institutions
Mutual funds & UTI 26509887 265098870 6.11
Bodies Corporate 1368191 136861910 3.16
NRIs/OCBs/FILs 43469128 434691280 10.03
Resident holdings 107005552 1070055520 24.68
TOTAL 433517800 4335178000 100.00

LOANS AND ADVANCES
Vijaya Bank provides various types of loans and advances to all the class
of people. As its caption ' your partner in progress says the services provided by
the bank.
The different types of loans schemes provided are
1. Educational loans
2. Rent scheme
3. Liquidity finance to SSI
4. Jewel loan
5. Loans for investment resume
6. Loans for the purchase of equipment
7. Loans on motor vehicle
8. Housing loan
9. Advance to small road transport operators
10. Finance for trading activities
11. Agricultural finance

BRANCH NETWORK
In the year 1963-68 nine smaller banks merged with the Vijaya Bank,
during the year 2001-2002, bank rationalized its branch network by merging
16 branches with the nearby branches, converted its regional foreign exchange
cell at Bangalore into a specialized overseas branch, as a result the total
number of branches stood at 828 as at the end of 4 march -2002, as compared
to 842 a year ago, during the year the bank has offered 2 extension converters
closed on extension counter up graded on extension counter into a full pledged
branch.
On the international front the bank built a network relationship with

over200 banks in 80 countries across America Europe and middle cast.
COMPUTERIZATION
In banks has 87 computerized branches besides upgrading two partially

computerized branches to total computerization taking the number of totally
computerized and partially computerized branches to 328 and 10 respectively,
converting 76.73% of aggregate business of bank.
CREDIT CARDS
Vijaya Bank ewers visa and master card, credit cards for both individuals
and cooperators, these cards are accepted at over 100000 members estimated
across the country and Nepal,
Vijaya Bank credit cards came along with unique and attractive features
like
1) Vijaya cash
2) Vijaya security
3) Vijaya family cards
VIJAYA CASH
Instant cash withdrawal is available whenever needed, walk-in to any of

831 branches across the country draw upto RS 5000/ per month classic cards
and RS 10000/ for gold cards though the pass book supplied along with the
card.
VIJAYA SECURITY
Vijaya Bank credit card brings along a 24 hours personal accident

insurance coverage in the unfortunate event of the card holder death.
Classic card holders - up to Rs 1 lakh, Gold card holders - up to Rs 2 lakh

incase of road accident,
Rs 4 lakh in case of death in an air crash

VIJAYA FAMILY CARDS
Vijaya Bank add on credit cards are available for parent, spouse
children of card holder above the 18 years of age regardless of his/her income,
Billing under the add-on is changed to the main cared holder.
BOARD OF DIRECTORS
The management of abroad of bank is vested with the board of directors.

Board of directors of Vijaya Bank other than director of central government
elected under the terms of Vijaya Bank general regulation, 1998 & sec 9(3)(l )
of the banking companies act 1980 read with the banking regulation act 1949
nationalized banks scheme 1980.
The present strength of board of directors of the bank is 7, comprising

of executive and 6 non - executive directors having diversified professional
experience, the directors have been contributing their professional knowledge,
experience and expertise in respective area of their specialization for the
development of the bank.
SL Name Designation Nature of Term of
no directorship service(wef)
1 Sri M.S. Kapur Chairman & Executive 16.08.2002

managing
director
2 Sri P A Sethi Executive Executive 08.03.2003

director
3 Sri R Renganath Director Non- 23.03.2003

(govt. of executive
India)
4 Sri K R Anand Director Non- 31.07.2003

(RBI) executive
5 Sri M Kiran Director Non- 03.07.2000

executive
6 Sri Babuseth Director-non Non- 08.05.2001

tyrewala official executive
7 Smt. Sykhda Director- non Non- 08.05.2001

mishra official executive
8 Sri pawan kumar Director Non- 20.12.2001

sharma -non official executive
Table showing financial performance of the bank for the last 5 years
from 2000 to 2004.
Particulars 2000 2001 2002 2003 2004
Capital &Reserves 447.08 599.44 663.03 811.27 1335.54
Deposits &other 11592.88 126.52.24 14680.51 17019.81 21015.05
Advances 4958.67 5720.01 6196.66
Investment 5088.87 5870.15 7360.73 8861.61 10836.99
Total income 1314.34 1512.45 1727.33
Total expenditure 1261.50 1441.72 1586.43
Net profit / loss 52.84 70.73 130.90 196.56 411.31
No of branches 837.00 842.00 828.00 843.00 866.00

CHAPTER - 5
ASSETS
1. CURRENT ASSETS
TABLE NO – 1
TABLE SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF
THE CASH AND BANK BALANCE WITH RBI
Percentage to Increase /
Years Amount
the base year Decrease
2001 – 2002 10261830 100% -
2002 – 2003 10862662 106% 6%
2003 – 2004 8755742 85% - 15%
2004 – 2005 12821072 125% 25%
INTERPRETATION
From the above table we can observe that the percentage of cash and
bank balance with RBI in the base year 2001 – 2002 is 100 percent then it
has been increased to 106 percent in the year 2002 – 2003. In the year 2003
– 2004 it has been decreased to 85% Even we can observe that in the year
2004 – 2005 it has been increased to 125 percent.
So we can see that there is fluctuation when compared to the base

year 2001 – 2002.
CHART NO – 1
CHART SHOWING THE PERCENTAGE OF INCREASE / DECREASE OF
THE CASH AND BANK BALANCE WITH RBI
Increase / Decrease
25%
0.25
0.2
0.15
0.1 6%
0.05 0%
0
-0.05
-0.1 -15%
-0.15
2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
Increase / Decrease
TABLE NO – 2
THE BALANCE WITH BANKS MONEY AT CALL AND SHORT NOTICE
Years Amount
2001 – 2002 6290536 100% -
2002 – 2003 5172099 82.22% -17.79%
2003 – 2004 2429873 38.62% -61.37%
2004 – 2005 3324560 52.85% -47.14%
INTERPRETATION
From the above table we can observe that the percentage of balance
with banks money at call and short notice in the base year 2001 – 2002 is
100 percent then it has been decreased to 82.22 percent in the year 2002 –
2003. 38.62 percent in the year 2003 – 2004 and 52.85 percent in the year
2004 – 2005.
So, there is gradual decrease when compared to the base year 0f 2001
– 2002.
CHART NO – 2
THE BALANCE WITH BANKS MONEY AT CALL AND SHORT NOTICE
0%
0%
2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
-10%
-17.79%
-20%
-30%
-40%
-47.14%
-50%
-60% -61.37%
-70%
Increase / Decrease
TABLE NO – 3
THE ADVANCES
Years Amount
2001 – 2002 6196605 100% -
2002 – 2003 78842588 127% 27%
2003 – 2004 110453118 178% 78%
2004 – 2005 143357840 231% 131%
INTERPRETATION
From the above table we can observe that the percentage of advances
in the base year 2001 – 2002, then it has been increased to 127 percent in
the year 2002 – 2003, 178 percent in the year 2003 – 2004 and 231 percent
in the year 2004 – 2005
So, there is gradual increase when compared to the base year 0f 2001
– 2002.
CHART NO – 3
THE ADVANCES
131%
140%
120%
100%
78%
80%
60%
27%
40%
20% 0%
0%
2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
Increase / Decrease
2. FIXED ASSETS
TABLE NO – 4
THE ADVANCES.
Years Amount
2001 – 2002 1210269 100% -
2002 – 2003 1126381 93.06% -7%
2003 – 2004 1197881 98.97% -1.02%
2004 – 2005 1153921 95.34% -4.65%
INTERPRETATION
in the base year 2001 – 2002 is 100 percentage, then it has been decreased
to 98.97 percent in the year 2004 – 2004 and 95.34 percentage in the year
2004 – 2005
So, there is gradual increase when compared to the base year of 2001
– 2002.
CHART NO – 4
THE ADVANCES.
0 0%
2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
-0.01 -1.02%
-0.02
-0.03
-0.04
-4.65%
-0.05
-0.06
-0.07
-7%
-0.08
Increase / Decrease
TABLE NO – 5
THE OTHER FIXED ASSETS ((AT COST) (INCREASING FURNITURE AND
FIXTURES).
Years Amount
2001 – 2002 444970 100% -
2002 – 2003 467500 105.06% 5.06%
2003 – 2004 714830 153% 53%
2004 – 2005 1022529 230% 130%
INTERPRETATION
From the above table we can observe that the percentage in other
investment fixed assets including furniture and fixtures in the base year 2001
– 2002 is 100 percentage, then it has been increased to 105.06 percent in the
year 2002 – 2003 and 153 percentage in the year 2003 – 2004 and 230% in
the year 2004 – 2005
– 2002.
CHART NO – 5
THE OTHER FIXED ASSETS ((AT COST) (INCREASING FURNITURE AND
FIXTURES).
130%
140%
120%
100%
80%
53%
60%
40%
20% 5.06%
0%
0%
2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
Increase / Decrease
TABLE NO – 6
INVESTMENT
Years Amount
2001 – 2002 73607290 100% -
2002 – 2003 88616137 120% 20%
2003 – 2004 108369893 147% 47%
2004 – 2005 120687398 164% 64%
INTERPRETATION
From the above table we can observe that the percentage of
investment of Vijaya Bank in the base year 2001 – 2002 is 100 percentage,
then it has been increased to 120 percent in the year 2002 – 2003 and 147
percentage in the year 2003 – 2004 and 164% in the year 2004 – 2005
– 2002.
CHART NO – 6
INVESTMENT
64%
70%
60%
47%
50%
40%
30% 20%
20%
10% 0%
0%
2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
Increase / Decrease
TABLE NO – 7
THE BREAK UP
Years Amount
2001 – 2002 73607290 100% -
2002 – 2003 88616137 120% 20%
2003 – 2004 108369893 147% 47%
2004 – 2005 120687398 164% 64%
INTERPRETATION
From the above table we can observe that the percentage of break up
in the base year 2001 – 2002 is 100 percentage, then it has been increased
to 120 percent in the year 2002 – 2003 and 147 percentage in the year 2003
– 2004 and 164 percent in the year 2004 – 2005
– 2002.
CHART NO – 7
THE BREAK UP
64%
70%
60%
47%
50%
40%
30% 20%
20%
10% 0%
0%
2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
Increase / Decrease
TABLE NO – 8
THE BREAK UP
Years Amount
2001 – 2002 61966605 100% -
2002 – 2003 78913423 127% 27%
2003 – 2004 110453118 178% 78%
2004 – 2005 143357840 231% 131%
INTERPRETATION
in India in the base year 2001 – 2002 is 100 percent, then it has been
increased to 127 percent in the year 2002 – 2003 and 178 percent in the year
2003 – 2004 and 231 percent in the year 2004 – 2005
– 2002.
CHART NO – 8
THE BREAK UP
131%
140%
120%
100%
78%
80%
60%
27%
40%
20% 0%
0%
2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
Increase / Decrease
MISCELLANEOUS EXPENSES
TABLE NO – 9
THE OTHER ASSETS
Years Amount
2001 – 2002 7666499 100% -
2002 – 2003 5635482 74% -26%
2003 – 2004 8788845 114% 14%
2004 – 2005 10987650 143% 43%
INTERPRETATION
From the above table we can observe that the percentage of other
assets in the base year 2001 – 2002 is 100 percent, then it has been
decreased to 74 percent in the year 2002 – 2003. Even we can observe that
in the year 2003 – 04 and 2004 – 2005 it has been increased to 114 percent
and 143 percent respectively.
So, we can say that there is more fluctuations when compared to the
base year 2001 – 2002.
TABLE NO – 9
THE OTHER ASSETS
0.5
0.4 43%
0.3
0.2
14%
0.1
0%
0
2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
-0.1
-0.2
-26%
-0.3
Increase / Decrease
LIABILITIES
CURRENT LIABILITIES
TABLE NO – 10
THE OF LIABILITIES AS PROVISIONS
Years Amount
2001 – 2002 7131937 100% -
2002 – 2003 9274696 130% 30%
2003 – 2004 13837830 194% 94%
2004 – 2005 14875003 208% 108%
INTERPRETATION
From the above table we can observe that the percentage of liabilities
and provisions in the base year 2001 – 2002 is 100 percent, then it has been
increased to 130 percent in the year 2002 – 2003. 194 percent in the year
2003 – 2004 and 208 percent in the year 2004 - 2005.
So, there is gradual increase when compared to the base year 2001 –
2002.
CHART NO – 10
THE OF LIABILITIES AS PROVISIONS
120% 108%
94%
100%
80%
60%
30%
40%
20%
0%
0%
2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
Increase / Decrease
LONG RUN OR FIXED LIABILITIES
TABLE NO – 11
RESERVES AND SURPLUS
Years Total
2001 – 2002 3295077 100% -
2002 – 2003 4777523 145% 45%
2003 – 2004 9020174 274% 174%
2004 – 2005 11556676 350% 250%
INTERPRETATION
From the above table we can observe that the percentage of reserves
and surplus and provisions in the base year 2001 – 2002 is 100 percent, then
it has been increased to 145 percent in the year 2002 – 2003. 274 percent in
the year 2003 – 2004 and 350 percent in the year 2004 - 2005.
2002.
CHART NO – 11
RESERVES AND SURPLUS
250%
250%
200% 174%
150%
100%
45%
50%
0%
0%
2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
Increase / Decrease
DEPOSITS
TABLE NO – 12
DEPOSITS IN INDIA
Years Total
2001 – 2002 146805098 100% -
2002 – 2003 170198109 116% 16%
2003 – 2004 210150525 143% 43%
2004 – 2005 256179840 175% 75%
INTERPRETATION
From the above table we can observe that the percentage of reserves
and surplus and provisions in the base year 2001 – 2002 is 100 percent, then
it has been increased to 116 percent in the year 2002 – 2003. 143 percent in
the year 2003 – 2004 and 175 percent in the year 2004 - 2005.
2002.
CHART NO – 12
DEPOSITS IN INDIA
75%
80%
70%
60%
43%
50%
40%
30%
16%
20%
10% 0%
0%
2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
Increase / Decrease
TABLE NO – 13
DEPOSITS IN INDIA
Years Total
2001 – 2002 880709 100% -
2002 – 2003 3208178 364% 264%
2003 – 2004 3366475 382% 282%
2004 – 2005 256179840 727% 627%
INTERPRETATION
From the above table we can observe that the percent of borrowings in
the base year 2001 – 2002 is 100 percent, then it has been increased to 364
percent in the year 2002 – 2003. 382 percent in the year 2003 – 2004 and
727 percent in the year 2004 - 2005.
2002.
CHART NO – 13
DEPOSITS IN INDIA
700% 627%
600%
500%
400%
264% 282%
300%
200%
100% 0%
0%
2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
Increase / Decrease
CAPITAL FUND
TABLE NO – 14
CAPITAL FUND
Years Total
2001 – 2002 3335178 100% -
2002 – 2003 3335178 100% -
2003 – 2004 4335178 130% 30%
2004 – 2005 4335178 130% 30%
INTERPRETATION
From the above table we can observe that the percent of Capital fund
in the base year 2001 – 2002 is 100 percent, In the year 2002 – 2003 the
percent is remained same. In the year 2003 – 2004 and 2004 – 2005 it has
been increased to 130 percent for each years.
So, we can say that the percent of capital fund in the year 2001 – 2002
and 2002 – 2003 is same and again there is same percent in the year 2003 –
2004 and 2004 – 2005 that is 100 percent and 130 percent respectively.
CHART NO – 14
CAPITAL FUND
30% 30%
30%
25%
20%
15%
10%
5%
0% 0%
0%
2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
Increase / Decrease
PROFIT AND LOSS ACCOUNT
INCOME
TABLE NO – 15
INTEREST EARNED
Years Total
2001 – 2002 15385043 100% -
2002 – 2003 16708060 109% 9%
2003 – 2004 19400881 126% 26%
2004 – 2005 20943091 136% 36%
INTERPRETATION
From the above table we can observe that the percent of interest
earned in the base year 2001 – 2002 is 100 percent, then it has been
increased to 109 percent in the year 2002 – 2003, 126 percent in the year
2003 – 2004 and 136 percent in the year 2004 – 2005.
– 2002.
CHART NO – 15
INTEREST EARNED
40% 36%
35%
30% 26%
25%
20%
15%
9%
10%
5% 0%
0%
2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
Increase / Decrease
TABLE NO – 16
OTHER INCOME
Years Total
2001 – 2002 1888245 100% -
2002 – 2003 3460203 183% 83%
2003 – 2004 5256930 278% 178%
2004 – 2005 3536714 187% 87%
INTERPRETATION
From the above table we can observe that the percent of income in the
base year 2001 – 2002 is 100 percent, then it has been increased to 183
percent in the year 2002 – 2003, 278 percent in the year 2003 – 2004 and
187 percent in the year 2004 – 2005.
So, there is fluctuation in the increase when compared to the base year
of 2001 – 2002.
CHART NO – 16
OTHER INCOME
178%
180%
160%
140%
120%
83% 87%
100%
80%
60%
40%
20% 0%
0%
2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
Increase / Decrease
EXPENDITURE
TABLE NO – 17
THE INTEREST EXPENDED
Years Total
2001 – 2002 10531928 100% -
2002 – 2003 10274164 98% -2%
2003 – 2004 11023233 105% 5%
2004 – 2005 11097758 105% 5%
INTERPRETATION
From the above table we can observe that the percent of interest
expended in the base year 2001 – 2002 is 100 percent, then it has been
decreased to 98 percent in the year 2002 – 2003, In the year 2003 – 2004
and 2004 – 2005 it has been increased to 105 percent for each year.
So, we can see that there is a fluctuation when compared to the base
year of 2001 – 2002.
CHART NO – 17
THE INTEREST EXPENDED
0.06
5%
0.05 5%
0.04
0.03
0.02
0.01
0%
0
2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
-0.01
-0.02 -2%
-0.03
Increase / Decrease
TABLE NO – 18
OPERATING EXPENSES
Years Total
2001 – 2002 4216278 100% -
2002 – 2003 5570460 132% 32%
2003 – 2004 4978203 118% 18%
2004 – 2005 5491750 130% 30%
INTERPRETATION
From the above table we can observe that the percent of operating
expenses in the base year 2001 – 2002 is 100 percent, then it has been
So, there is gradual increased when compared to the base year of

2001 – 2002.
CHART NO – 18
OPERATING EXPENSES
32%
35%
30%
30%
25%
18%
20%
15%
10%
5% 0%
0%
2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
Increase / Decrease
TABLE NO – 19
Years Total
2001 – 2002 871492 100% -
2002 – 2003 3142680 361% 261%
2003 – 2004 5616710 644% 544%
2004 – 2005 4851486 557% 457%
INTERPRETATION
From the above table we can observe that the percent of profit and loss
account in the base year 2001 – 2002 is 100 percent, then it has been

2001 – 2002.
CHART NO – 19
600% 544%
457%
500%
400%
261%
300%
200%
100%
0%
0%
2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
Increase / Decrease
TABLE NO – 20
APPROPRIATIONS
Years Total
2001 – 2002 2180529 100% -
2002 – 2003 3142680 144% 44%
2003 – 2004 5616710 258% 158%
2004 – 2005 4851486 222% 122%
INTERPRETATION
From the above table we can observe that the percent of appropriation
in the base year 2001 – 2002 is 100 percent, then it has been increased to
144 percent in the year 2002 – 2003, 258 percent in the year 2003 – 2004
and 222 percent in the year 2004 – 2005.

2001 – 2002.
CHART NO – 20
APPROPRIATIONS
158%
160%
140% 122%
120%
100%
80%
60% 44%
40%
20% 0%
0%
2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
Increase / Decrease
TABLE NO – 21
WORKING CAPITAL
Years Total
2001 – 2002 71387034 100% -
2002 – 2003 89273488 125% 25%
2003 – 2004 107800903 151% 51%
2004 – 2005 144628489 203% 103%
INTERPRETATION
From the above table we can observe that the percent of working
capital in the base year 2001 – 2002 is 100 percent, then it has been

2001 – 2002.
CHART NO – 21
WORKING CAPITAL
120%
103%
100%
80%
51%
60%
40% 25%
20%
0%
0%
2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005
Increase / Decrease
CHAPTER – 6
SUMMARY OF FINDINGS, SUGGESTIONS, CONCLUSION
SUMMARY OF FINDINGS
1. From this table we can find that there is more fluctuations in the
percentage of the cash and bank balance with RBI. That is it has been
increased by 6% and 25% in the year 2002 – 2003 and 2004 – 2005
respectively and decrease by 15% in the year 2003 – 2004
2. From this table we can find that the percentage of balance with banks
money at call and short notice is to decrease in trand.
3. From this table we can find that the percentage advances as been
increased from 2001 – 2002 to 2004 – 2005
4. From this table we can find that the percentage of premises is in

decrease trand. This is because of decrease in investment on
premises.
5. From this table we can find that the percentage of other fixed assets is
having more fluctuations. That is there is a less increase in 2002 –
2003 and 2003 – 2004, but there is a more increase in 2004 – 2005.
6. From this table we can find that the percentage of investment is

increase in trend from 2001 – 2002 to 2004 – 2005. This indicates that
the bank has shown much interest investment on different sectors
7. from this table we can find that the percentage of break up is increase
in trend from 2001 – 2002 to 2004 – 2005.
8. From this table we can find that the percentage of advances in India is
increase in trend from 2001 – 2002 to 2004 – 2005. This shows that
the bank has made more advances in advances in different sectors.
9. From this table we can find that there is more variations in the
percentage of the other assets that is, it has been decreased by 26 %
in the year 2002 – 2003 and increase by 14% and 43% in the year
2003 – 2004 and 2004 – 2005.
10. From this table we can find that the percentage of liabilities and
provisions as been increased since from 34 years that is 2001 – 2002
to 2004 – 2005.
11. From this table we can find that the percentage of reserves and
surplus as been increased since from 2001 – 2002 to 2004 -2005.
12. From this table we can find that the percentage of deposits in India is
increase in trend since from 4 years.
13. From this table we can find that the percentage of borrowings is having
more fluctuations that is, there is a less increase in the year 2002 –
2003 and 2003 – 2004 but there is a more increase in 2004 – 2005.
14. From this table we can find that the percentage of capital as been
increase in the year 2003 – 2004 to 2004 – 2005 respectively at the
same percentage that is 30%
15. From this table we can find that the percentage of interest earned
income has been increase to year by year that is 2001 – 2002 to 2004
– 2005.
16. From this table we can find that the percentage of other income is
having more variation that is, these is a less increase in the year 2002
– 2003 and 2004 – 2005 but there is a more increase in year 2003 –
2004.
17. From this table we can find that the percentage of interest expenses is
having more fluctuation that is it has been reduced by 2% in the year
2002 – 2003 and increase by 5 % each in the year 2003 – 2004 and
2004 – 2005.
18. From this table we can find that the percentage of operating expenses
is having more variations that is there is more increase in 2002 – 2003
and 2004 – 2005 but there is a less increase in 2003 – 2004
19. From this table we can find that the percentage of P/l account has
been increase from 2001 – 2002 to 2004 – 2005.
20. From this table we can find that the percentage of appropriations is
having more fluctuations that is there is a less increase in the year
2002 – 2003 but there is more increase in the year 2003 – 2004 and
2004 – 2005.
SUGGESTIONS
1. The more fluctuation in the percent of cash and bank balance with RBI
shows that the security created by the bank is fluctuation. This
fluctuation is mainly due to less deposits acquired in the year 2003 –
2004. Any how it has been increased in the year 2004 - 2005 which is
a good sign to the bank, let the bank to maintained the
increase trend.
2. The increase in balance with banks money at call and short notice is
not a good sign to a bank because the more money to be called will
increase as a result the banks may find difficulty in getting the money
for routiation so , it has to take some important measure to curtain the
decrease in trend.
3. The increase in advances since from last 3 years is a good sign to the
bank so the bank should try to maintain the same increase in trend or
for there it should try to increase its advances.
4. The percentage of premises is not a good sign to bank because with

out having a good premises its difficult to attract the customers.
Therefore the bank has to take some corrective decision there
investment on increase in the premises.
5. Whatever the increase that the bank maintained on the investment of

fixed assets in the year 2004 – 2005 is a good sign to the bank
because these investment on fixed asset is also one of the factors
which are helpful in attracting the customers. Let the bank maintain the
same increase in trend.
6. The idea of increase investment is different sectors of Vijaya bank is a

good decisions as it results in the overall economic development of the
country so, let the bank maintain the same increase in trend.
7. The increase in breakup since from last 4 years is a good sign to the
bank so, the bank should maintain the same increase in trend.
8. The increase in advances in India since from last 4 years is a good

sign to the bank. It results in the economic development of the country.
So, let the bank maintain the same increase in trend.
9. The more fluctuations in the percent of other assets shows that there is
more variations in the fietiticious assets, such as good will and other
accumulated loss. The increase in this assets in the year 2004 – 2005
is a good sign to bank has it shows the states of the bank.
10. The idea of increase Liabilities of provisions is not a good sign to a

bank. So, the bank should try to reduces the liabilities and others
provisions by increase in the assets.
11. The increase in reserves and surplus is a good sign to the bank as it
indicates that the bank has kept more amount of profits as reserves
and surplus to assets the uncertain contingens which may accrued in a
future. The maintain of this reserves and surplus is very much
essentials especially for the bank. To meet the changes is money
market.
12. The increase in deposits is a good sign to the bank, because accepting
deposits from the public is one of the important functions of bank. This
increase in deposits shows that the bank has perform its functions by
accepting more deposits from the public through its attractive deposits
schemes. Let the bank maintain same.
13. the increase in borrowing is mainly due to increase in advances for

various sectors in the economy. The increase in borrowing is a good
sign to the bank as it can lend money to the public under various
sectors from which the bank can earn more interest from the advances
and it also results in economic development of the country. So, let the
bank maintain same.
14. The idea of increase in capital is good sign to Vijaya Bank. It results in
the economic development of the country. So let the bank maintain the
same increase in trend
15. The increase in income is mainly due to increase in the advances

given by the bank under various sectors of economy and also for the
increase in the interest earned by the bank. Since there is a mutual
benefit for both the bank and economy. Let the bank maintained the
same increase in trend in the income of the bank.
16. The increase in other income is mainly due to the increase in

investment in various sectors of economy and increase in the functions
perform by the that is earning bank charges, banks commission etc.
This increase in a good sign to the bank as it can meet the others
expenditure easily in time.
17. The increase in interest paid is mainly due to increase in deposits

accepted from the public both in the year 2003 – 2004 and 2004 –
2005. This increase in a good sign because the bank has performed its
functions in attracting the saving from the public in the from of deposits.
Moreover the increase in interest paid is just parallel to the increase in
the income. So, let the bank maintain same.
18. The increase in day to day operating expenses of the bank shows that
the bank has perform more function with more expenditure but the
bank should try to reduces these expenditure and also increase in
performing the functions with less expenditure.
19. The percentage in profit is good sign to a bank. Therefore the bank
has to maintain the same trend the future days also.
20. The increase in a appropriation is just parallel to the increase in profit
also which is a good sign to the bank. Because increase in
appropriation are very much essential for the banks. To maintained
some part of the profits as a reserve and surplus which are helpful to
meet the uncertain event in the future.
21. The increase in working capital shows that the bank has performed
well in completing its short term objectives. For each and every
organization/ Bank achievement of the objective is very much
important. Therefore the bank should maintain same.
ANNEXURE
BALANCE SHEET OF VIJAYA BANK AS ON 2002-05
LIABILITIES 31/03/2002 31/03/2003 31/03/2004 31/03/2005

CURRENT LIABILITIES
Other Liabilities
1. Bills Payable 3057481 3076315 5160954 3910184
2. Interest Accrued 412633 422412 784876 599687
3. Sib-Oriented Debts Bonds raised
as
a) 5 Years Bond 2004 at 14.20% 1200000 1200000 1200000 -
b) 7 Years Bond 2006 at 12.35% 600000 600000 600000 600000
c) 7.5 Years Bond 2010 at 7.5% 1500000 1500000 1500000 1500000
4. VRs Bonds @ 11% 104040 100900 10034 99880
5. Provision against Standard
145400 192400 339500 406816
Assets
6. Provision for recognition of loan 99000 31500 - -
7. Others including provisions 1580883 2083669 4152160 5258436
Total Current Liabilities 7131937 9274696 13837830 14875003
FIXED LIABILITIES
Long un Liabilities
Reserve and Surplus
1. Statutory Reserve
a) Balance as per last
448149 775600 1267250 2295914
balance sheet
b) Add during the year 327451 491650 1028664 962000
2. Capital Reserve
3. Share premium
a) Balance as per last
1400000
balance sheet
b) Add during the year 1400000
4. Revaluation reserves 674019 621756 573963 530231
5. Revenue and other reserves
a) Investment fluctuation
301863 577640 1304840 3224423
reserve
Add : addition during the year 275777 727200 1919583 5577
b) Deferred Tax Reserve 90739 80069 80066 -
c) Special reserve in term of
400000 650000
sec b(1)VIII
d) Balance in P/L Account 1177079 1503608 1045808 2407748
Total Current Liabilities 3295077 4777523 9020174 11556676
DEPOSITS
Deposits in India
1. Demand deposits
a. From banks 658188 499535 512383 922591
b. From others 18002478 19191403 19776196 28522922
2. Saving bank deposits 28946151 35111312 44473100 53960073
3. Term Deposits
a. From banks 786436 1387183 1367873 1563016
b. From others 98411845 114008676 144020973 171211238
TOTAL 146805098 170198109 210150525 256179840
BORROWINGS
1. Borrowings in India
a. RBI 326200 - - -
b. Other Banks 3080 799 36040 -
c. Other Institutions 310121 2520811 759863 1011312
2. Borrowings Outside India 241308 686568 2570572 5396950
TOTALS 880709 3208178 3366475 6408262
TOTAL FIXED LIABILITIES 150980884 178183810 222537174 274144778
CAPITAL FUND
CAPITAL
Authorized capital issued and 15000000 15000000 15000000 15000000
Subscribed and called up capital 3335178 3335178 4335178 4335178
Paid up capital held by the central Govt. 2335178 2335178 2335178 2335178
Held by the public an others 100000 1000000 2000000 2000000
Capital Fund total 3335178 3335178 4335178 4335178
ASSETS
Current Assets
Cash & Bank balance with RBI
1. Cash in Hand 938446 975160 1030245 1318566
2. Cash and balance with RBI
Current Account 9323384 9887502 7674599 11502456
Other Account - - 50898 50
Total 10261830 10862662 8755742 12821072
Balance with banks money at call &
short notice
1. In India
a) Balance with bank
1. In Current Account 1412484 699186 765686 1394301
2. Other Deposits 2206205 3150000 1250000 1000138
b) Money at call and short notice
1. With Banks 700000 750000 Nil Nil
2. Other institutions 1000000 250000 Nil Nil
a) Total 5318689 489186 2015686 2394439
2. OUT SIDE INDIA
a) Current Account 60053 97123 288643 810291
b) Deposits Accounts 911794 225790 125544 119830
b)Total 971847 322913 414187 930121
Total A+B 6290536 5172099 2429873 3324560
Advances
a) i. Bill purchased and discounted 3190155 3612913 4152241 5297185
ii. Cash, Credit Over drafts and Loans
33863418 40092572 49375741 56909150
repayable on demand
iii. Terms Loans 24913032 35137103 56925136 81151505
Total 61966605 78842588 110453118 143357840
b) i. Secured by tangible assets 44396239 65559069 79770419 107043093
ii. Covered by Bank/ Govt Guaranties 11619349 8497145 11817636 2747162
iii. Unsecured 5951017 4857209 18865063 33567585
Total 61966605 78842588 110453118 143357840
Total Current assets 78518971 94877349 121638733 159503472
FIXED ASSETS
Premises 1736462 1982030 1985241 2139341
Add: during the year 245568 3211 154100 35823
1982030 1985241 2139341 2175164
Less Depreciation 771761 858860 941460 1021243
TOTAL 1210269 1126381 1197881 1153921
OTHER FIXED ASSETS
AS PER THE LAST BALANCE SHEET 1487614 1634535 1820147 2280944
Add: During The year 167733 224370 472414 663008
1655347 1858905 2292561 2943952
Less During the year 20812 38758 11617 54273
1634535 1820147 2280944 2889676
Less Depreciation 1178583 1341088 723499 1029030
455952 479059 1557443 1060549
Add: Lease Terminal Adjusted 10982 11559 8669 6502
TOTAL 444970 467500 718330 1022529
INVESTMENT IN INDIA 74175768 89367532 108927012 123008708
Provision for depreciation and NPA net
568478 751395 567119 2321110
investment India
TOTAL 73607290 88616137 108369893 120687398
BREAK UP
Govt Securities 55670713 70123188 89615695 104536504
Other approved Securities 1542296 1417117 1264153 1056128
Shares 314792 320211 496543 400292
Debenture and Bonds 14948314 14470941 12806940 11753524
Subsidiaries and Joint Ventures 106314 106314 129510 212579
Others 1024861 2178366 4057052 2728271
TOTAL 73607290 88616137 108369893 120687398
ADVANCES IN INDIA
Priority sector 22230660 28303770 44486642 57225374
Public Sector 18421042 14590481 14016773 17494547
Banks 23022 345346 452771 116107
Others 21291881 35673826 51716932 68521812
Total 61966605 78913423 110453118 143357840
Total Fixed Assets 75262529 90210018 110282604 122863877
Other Assets
1. Inter Office Adjustment (Net Amount) 1182289 549956 3351133 3746339
2. Interest accrued 3226053 2903474 2617045 2551436
3. Tax Paid in advance 216148 1011639 1333068 1747404
4. Deferred Tax assets 77204 392615 4079046 700475
5. Stationery and stamps 8148 5937 7369 6099
6. Non Banking Assets 2709 2709 2717 2806
7. Others 2953948 769152 1069817 2233081
Total Miscellanies Expenses 7666499 5635482 8788845 10987640
Grand Total 161447999 190793684 240710182 293354959
WORKING CAPITAL OF VIJAYA BANK AS ON 2002-05
ASSETS
Current Assets
Cash & Bank balance with RBI
3. Cash in Hand 938446 975160 1030245 1318566
4. Cash and balance with RBI
Current Account 9323384 9887502 7674599 11502456
Other Account - - 50898 50
Total 10261830 10862662 8755742 12821072
Balance with banks money at call &
short notice
2. In India
c) Balance with bank
1. In Current Account 1412484 699186 765686 1394301
2. Other Deposits 2206205 3150000 1250000 1000138
d) Money at call and short notice
1. With Banks 700000 750000 Nil Nil
2. Other institutions 1000000 250000 Nil Nil
a) Total 5318689 489186 2015686 2394439
2. OUT SIDE INDIA
a) Current Account 60053 97123 288643 810291
b) Deposits Accounts 911794 225790 125544 119830
b)Total 971847 322913 414187 930121
Total A+B 6290536 5172099 2429873 3324560
Advances
a) i. Bill purchased and discounted 3190155 3612913 4152241 5297185
ii. Cash, Credit Over drafts and Loans
33863418 40092572 49375741 56909150
repayable on demand
iii. Terms Loans 24913032 35137103 56925136 81151505
Total 61966605 78842588 110453118 143357840
b) i. Secured by tangible assets 44396239 65559069 79770419 107043093
COMPARATIVE PROFIT & LOSS A/C AS ON
31 MARCH 2003 & 2004

ST
Particulars 2002 2003 2004 2005
(I) Income
Interest earned
(a) Interest/ Discount on advance / Bills 7142524 7558275 9731862 11469859
(b) Income on Investment 7651395 8630192 9299578 8956831
(c) Interest on balance sheet with RBI & 545366 430906 190305 224696
others inter-banks funds

(d) Others 45758 88687 179136 291705
(Total) 15385043 16708060 19400881 20943091
Other Income
(a) Commission exchange & Brokage 472294 455635 490408 541276
(b) Profit on sale of Investment 904296 2252604 3679836 1633581
Less: Loss on sale of investment 2631 1717 243378 144564
901665 2250887 3436458 1489017
(c) Net on revaluation of investment Nil Nil Nil Nil
(profit/Loss)
(d) Profit on sale of building & other 3246 2009 1557 1097
assets
Less: Loss on sale of building & other 1781 1460 2181 2114
assets
1465 549 -624 -1017
(e) Profit on exchange Transactions 369130 216653 253326 296340
Less: Loss on exchange Transactions 01 Nil 230 1214

369129 216653 253096 296340
(f) Miscellaneous Income 437004 536479 1077592 1212312
(Total) 1888242 3460203 5256930 3536714
Include lease rental income lease 3623 Nil 2889 2164
equalization A/c
Total Income 17273285 20168263 24657811 24479805
(II) Expenditure
Interest expended
(a) Interest on deposits 10013370 9901080 10525458 10716527
(b) Interest on RBI/inter Bank 21747 19218 9754 7706
borrowings
(c) Others 496811 353866 488021 373525
10531923 10274164 10023033 11097758
Operating expenses
(a) Payment to & provisions for 3059192 4290055 3315961 3188168
employees
(b) Rent taxes & lighting 388209 443075 419804 472253
(c) Printing & stationery 35523 42099 46691 61969
(d) Advertisement & Publicity 3576 13885 62835 64691
(c) depreciation on Bank property 189377 197344 251164 400487
(d) Director's fees Allowances & 1075 2184 2721 1019
expenses
(e) Auditor fees & expenses (inclusive 29493 33442 60137 66758
branch auditor's)
(f) Law charges 3743 7792 8298 4693
(g) Postage, Telegrams, Telephone etc 25562 15737 30582 58928
(h) Repairs & Maintenance 13583 10775 19565 15565
(i) Insurance 78689 96080 104238 212373
(j) Other expenditure 388256 417992 656237 942846
(Total) 4216278 5570460 4978203 5491750
Provisions & Contingencies 1216042 2358038 4543273 4087619
Total expenditure 15964248 18202662 20544709 20674127
(Ill) Profit & Loss
Net profit for the year 1309037 1965601 4113102 3805678
Add: Profit brought forward 919010 1177079 1503608 1045808
Investment Fluctuation Reserve 47518 Nil Nil Nil
(Total) 871492 3142680 5616710 4851486
(IV) Appropriations
Transfer to statutory reserve 327451 491650 1028664 952000
Transfer to investment fluctuation 275777 727200 1919583 5577
reserve
Transfer to special reserve in terms of Nil 0 400000 250000
section 36(i) (i) (viii)

Interim dividend Nil 0 489062 735262
Proposed dividend 400222 400222 733593 490185
Transfer to staff welfare fund Nil 20000 0 Nil
Balance carried forward to the balance 1177079 1503608 1045808 2327679
sheet
(Total) 2180529 3142680 5616710 4851486
BIBLIOGRAPHY
TEXT BOOKS AUTHORS EDITIONS PUBLISHERS

th
Financial Dr. S.N. 4 SultanChand and
Management Maheshwari Sons CO. Ltd.,

nd
Business Finance H.R. 2 Himalaya
Appanaiah Publishing House

st
Financial I.M. Pandey 1 Vikas Publishing
Accounting house PVT Ltd.,
WEB SITE:
www.vijaya.com

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CHAPTER NO – 1

The study “Financial analysis and performance” was conducted in

The scope of the study is to know the financial activities of the

The study is made to analyze the financial performance with

The main aim is to study the activities of finance department by

Finance came to be studies as a part of economics before the turn

The study of potentiality of different securities as a source of

The problem of financing ensured a new dimension in the II world

In 1960’s and 70’s period was marked by a very faithful and

The dimensions of business financial which was earlier limited to

One of the important step of accounting is the analysis (and

In the words of Myres “Financial of statement analysis is largely a

The most important objective of the analysis and interpretation of

So that a forecast may be made of the prospects of that

Therefore the term financial statement generally refers to two basic

OBJECTIVES OR USES OF FINANCIAL ANALYSIS

Financial analysis is helpful in assessing financial position and

To judge the present and future earning capacity or profitability of the

To judge the operational efficiency as a whole and of its various part or

To have comparative study in regard to one department with another

PROCESS OF FINANCIAL ANALYSIS

The analysis of financial statements is a process of evaluating the

The second step is to arrange the information in a highlights significant

The final step is interpretation and drawing of inference and conclusions.

TYPES OF FINANCIAL ANALYSIS

On the basis of On the basis of

Internal External Horizontal Vertical

Those persons who are not connected with enterprises make

The internal analysis is made by those persons who have

In case of this type of analysis financial statements for

In case of this type of analysis a study is made of the

TECHNIQUES OF FINANCIAL ANALYSIS

The analysis and interpretation of financial statements is used to

1. Comparative Financial Statements

The comparative financial statements are the statements of the

a) Comparative income statements

The income statements discloses net profit or net loss or

b) Comparative balance sheet :

B/s of two or more different dates can be used for comparing

Common size financial statements are those in which figures

Trend percentages are very much helpful in making a

4. Funds flow statements

Funds flow statement is a financial statements, which indicates

In short, it’s the statement, which shows the movement of funds

The funds flow statements is called by different names, such as,

5. Cash flow statements

Cash flow statements shows the movement of cash and their

Cash flow statement is prepared to show the impact of financial

A cash flow statements concentrates on transactions that have

“A Research design is the arrangement of conditions for collection and

- Eleure setting and others

The followings re the various steps in the research design : -

1) The collection of information to understand the competitions in this line

2) Inter action with managers to understand the means of financial

3) Decision regarding the financial analysis.

4) Collection of company financial statement details

5) Analysis of major components of financial statements

6) Forwarding certain recommendations and conclusions to the company.

TITLE OF THE STUDY

“A STUDY ON FINANCIAL AND PERFORMANCE ANALYSIS OF AIRTEL”