project report_group 1_section c

8/8/2019 Project Report_group 1_section c

1/20

Group 1, Section C Financial Analysis of Banking Industry

1

PROJECT REPORT

FINANCIAL ANALYSIS OFBANKING SECTOR

Banks under consideration:

State Bank of India

Bank of Baroda

Submitted to:

Dr. S.K. Rai

MDI Gurgaon

Made by:

Rohit Agarwal (10P124)

Jigish Patel (10P157)

Sagar Sitaram (10P167)

Shauvik Chakraborty (10P171)

Shruti Agrawal (10P172)

Vijaya Suryavanshi (10P179)


2/20


2

ACKNOWLEDGEMENT

We would like to express our gratitude to all those who made it possible for us to conduct this

analysis. We would specially like to thank Dr. S.K. Rai for providing us with an opportunity

to work on this topic thereby helping us gain valuable insights about the sector, as well as for

providing us guidance and support with respect to our project.

We are also grateful to our college for providing us with the infrastructure which served to be

a useful aid and would like to thank the library staff for rendering significant cooperation

towards the same.

We would also like to thank our friends who helped us with suggestions and encouragement

throughout our course of analysis.


3/20


3

INTRODUCTION

Banking Sector: An Overview

The banking sector is a very important sector of India. The economic reforms undertaken in

the last 15 years have brought about a considerable improvement in the health of banks and

financial institutions in India. The financial health of commercial banks has remarkably

improved with respect to capital adequacy, profitability, asset quality and risk management.

Deregulation has opened new doors for banks to increase revenues by entering into

investment banking, insurance, credit cards, depository services, mortgage, securitization, etc.

According to a stress test conducted by the reserve bank of India, The Indian banking system

is financially stable and resilient to the shocks that may arise due to higher non-performing

assets (NPAs) and the global economic crisis.

Impact of Budget 2010 on the Banking Sector

The economic crisis that recently hit the world did not have any major impact on the Indian

banking industry. However, to ensure the continuance of the sectors economic expansion,

and to meet the pre-requisites of the new financial system, the Finance Minister of India

proposed the requirement of international exposure to banks and improvement in the

accessibility of the banking services.

In his Union Budget 2010 speech the Finance Minister Mr. Pranab Mukherjee announced few

benefits and initiatives which are projected to trigger the expansion and thereby have a great

impact on the banking sector in FY 2010-11. He proposed banking licenses to Indian banks to

ensure the expansion of banking sector in size and turnover. He thus notified the

consideration of RBI in offering extra banking licenses to private banks and also to non

Banking Financial Companies, if the latter satisfies the RBI's requirements. Additionally,

extra funds have been invested in Public Sector Banks to uphold a contented level of Capital

to Risk Weighted Asset Ratio.

State Bank of India

State Bank of India (SBI) is the largest state owned banking and financial services company

in India by almost every parameter revenues, profits, market capitalization, assets etc. It is

actively involved since 1973 in non-profit activity called Community Services Banking. It is


4/20


4

the countrys oldest Bank and a premier in terms of balance sheet size, number of branches,

market capitalization and profits.

SBI provides a range of banking products through its vast network of branches in India and

overseas, including products aimed at NRIs. The State Bank Group, with over 16,000

branches, has the largest banking branch network in India. With an asset base in excess of

$225 billion and deposits in excess of $171 billion, it is a regional banking behemoth. It has a

market share among Indian commercial banks of about 20% in deposits and advances, and

SBI accounts for almost one-fifth of the nation's loans.

In the annual international ranking conducted by UK-based Brand Finance Plc, 20 Indian

banks have been included in the Brand Finance Global Banking 500. In fact, the State Bank

of India (SBI) has become the first Indian bank to be ranked among the Top 50 banks in the

world, capturing the 36th rank, as per the Brand Finance study. The brand value of SBI

increased from US$ 1.5 billion in 2009 to US$ 4.6 billion in 2010. Today, the Bank is the

largest provider of infrastructure debt and the largest arranger of external commercial

borrowings in the country. It is the only Indian bank to feature in the Fortune 500 list.

Bank of Baroda

Bank of Baroda is the third largest bank in India, after the State Bank of India and the Punjab

National Bankand ahead of ICICI Bank. BoB has total assets in excess of Rs. 2,274 billion, a

network of over 3,000 branches and offices, and about 1,100 ATMs. It plans to open 400 new

branches in the coming year. It offers a wide range of banking products and financial services

to corporate and retail customers through a variety of delivery channels and through its

specialised subsidiaries and affiliates in the areas of investment banking, credit cards and

asset management. Its total business was Rs. 4,402 billion as of June 30.

As of August 2010, the bank has 78 branches abroad and by the end of FY11 this number

should climb to 90. In 2010, BoB opened a branch in Auckland, New Zealand, and its tenth

branch in the United Kingdom. The bank also plans to open five branches in Africa. Besides

branches, BoB plans to open three outlets in the Persian Gulf region that will consist of

ATMs with a couple of people.
http://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/State_Bank_of_India


5/20


5

COMMON-SIZE STATEMENT

BANK OF BARODA

Balance Sheet:

Mar 10 Mar 09 Mar 08 Mar 07 Mar 06

SOURCES OF FUNDS :

Capital 0.13 0.16 0.2 0.25 0.31

Reserves Total 5.4 5.6 5.99 5.79 6.64

Equity Share Warrants 0 0 0 0 0

Equity Application Money 0 0 0 0 0

Minority Interest 0.02 0.02 0.02 0.02 0.02

Deposits 86.52 84.9 84.61 87.2 82.32

Borrowings 4.72 5.52 2.16 0.8 4.33

Other Liabilities & Provisions 3.22 3.81 7.02 5.94 6.38

TOTAL LIABILITIES 100 100 100 100 100

APPLICATION OF FUNDS :

Cash & Balances with RBI 4.95 4.71 5.24 4.47 2.97

Balances with Banks & money at Call 7.91 6.18 7.38 8.44 8.97

Investments 22.22 23.16 24.33 24.28 30.55

Advances 62.51 62.86 59.16 58.24 52.69

Fixed Assets 0.83 1.11 1.46 0.91 1.04

Other Assets 1.57 2 2.43 3.65 3.76

Miscellaneous Expenditure not written off 0 0 0 0 0

TOTAL ASSETS 100 100 100 100 100

Profit & Loss Account:


INCOME :

Interest Earned 100 100 100 100 100

Other Income 19.67 18.74 18.02 16.84 20.93

Total 119.67 118.74 118.02 116.84 120.93

II. Expenditure

Interest expended 63.96 65.4 66.28 59.72 54.27

Payments to/Provisions for Employees 14.08 15.49 16.04 18.2 21.45

Operating Expenses & Administrative Expenses 4.98 4.47 4.69 5.15 5.76Minority Interest(before tax) 0 0 0 0 0


6/20


6

Depreciation 1.41 1.54 1.98 2.18 1.61

Other Expenses, Provisions & Contingencies 9.55 8.95 9.62 12.4 21.26

Provision for Tax 7.17 7.49 6.63 7 4.21

Deferred Tax 0 0 -0.03 0 0

Total 101.15 103.33 105.21 104.65 108.56

III. Profit & Loss

Net Profit 18.52 15.4 12.81 12.19 12.37

Minority Interest(after tax) 0.08 0.07 0.08 0.08 0.08

Profit/Loss of Associate Company 0 0 0 0 0Net Profit after Minority Interest & P/L of Assoc.Co. 18.45 15.33 12.73 12.11 12.29

Extraordinary Items 0 0 0 0.09 0

Adjusted Net Profit 18.45 15.33 12.73 12.02 12.3

The above statement for the Balance Sheet shows that Bank of Baroda has been shifting its

liability base more towards the deposits while there is a minor reduction in the reserves

component. This is a positive indicator as it shows that people have been placing greater

reliance over the bank and hence the increase in the deposit component.

The Statement for the Income statement shows that component of Interest Expenditure is on a

rise whereas the operating expenses constitute a lower proportion of Interest Earned over the

years. This is in sync with the rising proportion of deposits since more deposits lead to higher

Interest payment.

STATE BANK OF INDIA

Balance Sheet:


SOURCES OF FUNDS :

Capital 0.06 0.07 0.09 0.09 0.11

Reserves Total 6.2 5.94 6.7 5.43 5.49

Equity Share Warrants 0 0 0 0 0

Equity Application Money 0 0 0 0 0

Deposits 76.3 76.9 74.42 76.84 76.91

Borrowings 9.77 8.71 7.16 7 6.2

Other Liabilities & Provisions 7.67 8.39 11.63 10.64 11.3

TOTAL LIABILITIES 100 100 100 100 100

APPLICATION OF FUNDS :

Cash & Balances with RBI 5.82 5.76 7.14 5.13 4.38

Balances with Banks & money at Call 3.31 5.06 2.21 4.04 4.64


7/20


7

Investments 27.12 28.59 26.24 26.31 32.89

Advances 59.96 56.22 57.71 59.52 52.98

Fixed Assets 0.42 0.4 0.47 0.5 0.56

Other Assets 3.38 3.97 6.23 4.5 4.56

Miscellaneous Expenditure not written off 0 0 0 0 0

TOTAL ASSETS 100 100 100 100 100

Profit & Loss Account:


INCOME :

Interest Earned 100 100 100 100 100

Other Income 35.11 24.08 27.39 24.69 22.57

Total 135.11 124.08 127.39 124.69 122.57

II. Expenditure

Interest expended 66.58 68.32 67.06 60.21 56.33

Payments to/Provisions for Employees 16.32 14.18 14.63 19.49 21.57

Operating Expenses & Administrative Expenses 4.86 4.43 4.88 5.3 5.15

Minority Interest(before tax) 0 0 0 0 0

Depreciation 1.32 1.01 1.45 1.75 2.27

Other Expenses, Provisions & Contingencies 27.36 16.65 19.8 18.06 19.43

Provision for Tax 7.97 8.29 7.17 7.63 4.21

Deferred Tax -1.31 -1.17 -0.68 -0.14 1.02

Total 123.1 111.7 114.32 112.29 109.98

III. Profit & Loss

Net Profit 12 12.19 12.89 12.18 11.35

Minority Interest(after tax) 0.28 0.24 0.35 0.47 0.26

Profit/Loss of Associate Company 0 0 0 0 0Net Profit after Minority Interest & P/L of Assoc.Co. 11.72 11.95 12.53 11.71 11.08

Extraordinary Items -0.01 0 0.01 0.01 0

Adjusted Net Profit 11.73 11.95 12.52 11.7 11.08

The above statement for the Balance Sheet shows that unlike Bank of Baroda, there is an

increase in the reserves component whereas there is not much increase in the proportion of

deposits with respect to total liabilities. However the borrowings portion shows a continuous

increase which means the bank has been taking more loans.

The statement for the Income Statement shows an increasing trend in the proportion of

interest expenditure however a reduction in FY 2009-2010 indicates efficiency on the part ofthe bank.


8/20


8

RATIO ANALYSIS

I. INVESTMENTS:

1)

SHORT TERM INVESTMENT

Short term investment basically means to invest in the stock for short duration that

may last up to 1 year at the most depending on the investor. We basically check the

following ratios in case of the bank to check its prospects in the short run.

Capital Adequacy Ratio: This is capital to risk weighted assets ratio which signifies the

risk exposure of the bank. Its minimum limit prescribed by RBI is 9% for scheduled

banks. The Capital Adequacy Ratio for SBI as on 31st March, 2010 is 13.39 and the

same for Bank of Baroda is 14.36.

Earnings per share: The portion of a company's profit allocated to each outstanding

share of common stock. Earnings per share serves as an indicator of a company's

profitability. The EPS for State Bank of India as on 31 st March, 2010 is Rs. 144.37

and the same for Bank of Baroda is Rs. 83.96.

8

10

12

14

16

2006 2007 2008 2009 2010CapitalAd

equacyRatio

Capital Adequacy ratio of SBI vs BoB

BoB

SBI

0

50

100

150

200

2006 2007 2008 2009 2010

EPS

EPS of SBI vs BoB

BoB

SBI


9/20


9

Price to Earnings Ratio: This ratio indicates the market value of shares with reference

to the earnings of the company. Investments in stock should be primarily based on

future earnings of the company. PE Ratio primarily indicates whether the stock is

undervalued or overvalued. Investment is preferable in an undervalued stock.

Price to Book Value Ratio: It is used to compare a stock's market value to its book

value. It is calculated by dividing the current closing price of the stock by the latest

quarter's book value per share. The Price to Book Value ratio of SBI as on 31st March,

2010 is 2.00 and the same for Bank of Baroda is 1.55.

Beta: value signifies the volatility of the stock as compared to the movement of the

Sensex. Value>1 signifies that the movement in stock is proportionately more than

the market movement. Value>1 signifies that the movement in stock is

proportionately less than the market movement. The value for SBI as on 1st

September, 2010 is 0.93 and the same for Bank of Baroda is 0.38.

0

5

10

15

20

2006 2007 2008 2009 2010

P/ERatio

P/E Ratio of SBI vs BoB

BoB

SBI

0

0.5

1

1.5

2

2.5

2006 2007 2008 2009 2010

P/BRatio

P/B Ratio of SBI vs BoB

BoB

SBI


10/20


10

Recommendation:

From short term investment perspective Bank of Baroda should be chosen over State

Bank of India for short term investment. Analysis of the above ratios suggests that

both BoB and SBI have almost similar capital adequacy ratios but the same for SBI

has decreased while for BoB it has increased in the past year. BoBs ratio is a little

higher than SBI which means that BoB has higher capital in proportion to their Risk

weighted assets compared to SBI. Also, Earnings and P/E suggest that BoB is a little

undervalued compared to SBI which is also indicated by P/B ratio. P/B for BoB isalso lesser than SBI which signifies that stock of BoB is undervalued than SBI.

Also ratio is very less for BoB compared to SBI which indicates that BoB is less

risky. Hence, BoB being undervalued and less risky is a preferred choice for short

term investment.

2) LONG TERM INVESTMENT

Long term investment basically means to invest in the market for a longer duration

that exceeds 1 year depending on the investor though it is recommended that the

optimum time for keeping the long term investment is 7-8 years. He should sell when

the market is bullish and purchase when it is bearish. We basically check the

following ratios in case of the bank to check its prospects in the short run.

Capital Adequacy Ratio:A safe CAR is required to ensure that the company can keep

on growing by advancing more loans. The CAR required by RBI is 9%. The Capital


11/20


11

Adequacy Ratio for SBI as on 31st March, 2010 is 13.39 and the same for Bank of

Baroda is 14.36.

CASA: This represents the ratio of current account and savings account to total deposits.

A higher ratio means that the bank has comparatively more current account and saving

deposits. Current deposits are practically free funds available to the bank whereas a mere

3-4% is given on saving deposits. Thus, higher such deposits mean higher net interest

income for the bank. Thus higher profits which will be reflected in the stock prices.

NPA: The net non-performing assets to loans (advances) ratio are used as a measure of the

overall quality of the banks loan book. Net NPAs are calculated by reducing cumulative

balance of provisions outstanding at a period end from gross NPAs. Higher ratio reflects

rising bad quality of loans. Thus in the long run bank has high chances of huge losses

which would affect its profitability.

8

9

10

11

12

13

14

15

2006 2007 2008 2009 2010CapitalAdequacyRatio

Capital Adequacy ratio of SBI vs BoB

BoB

SBI

32

34

36

38

40

42

2008 2009 2010

CASARatio

CASA Ratio of SBI vs BoB

BoB

SBI


12/20


12

Dividend Payout: DPR is defined as the ratio of DPS and EPS. It signifies the proportion

of earnings paid out as dividends and shows the growth plan of the company. TheDividend Payout ratio for SBI as on 31st March, 2010 is 23.36 and the same for Bank of

Baroda is 20.9.

Credit Deposit Ratio: The ratio is indicative of the percentage of funds lent by the bank

out of the total amount raised through deposits. Higher ratio reflects ability of the bank to

make optimal use of the available resources. Loans given by bank would also include its

investments in debentures, bonds and commercial papers of the companies. The Credit

Deposit ratio for SBI as on 31st March, 2010 is 75.96 and the same for Bank of Baroda is

73.43.

0

0.5

1

1.5

2

2006 2007 2008 2009 2010NonPerformingAssets(%)

Non Performing Asset of SBI vs BoB

BoB

SBI

0

5

10

15

20

25

30

2006 2007 2008 2009 2010

Dividendayo

utRatio

Dividend Payout Ratio of SBI vs BoB

BoB

SBI


13/20


13

Return on Assets: It shows the ratio of profit to the total assets of the company. HigherROA indicates better efficiency. Return on Assets for SBI as on 31st March, 2010 is 0.88

and the same for Bank of Baroda is 1.1.

Return on Net Worth: It shows the ratio of profit and net worth of the company. Higher

ROE indicates better returns to the shareholders. Return on Equity for SBI as on 31st

March, 2010 is 14.8 and the same for Bank of Baroda is 21.86.

0

20

40

60

80

100

2006 2007 2008 2009 2010

C-D(%)

C-D(%) of SBI vs BoB

BoB

SBI

0

0.2

0.4

0.60.8

1

1.2

2006 2007 2008 2009 2010

ReturnonAssets

Return of Assets of SBI vs BoB

BoB

SBI


14/20


14

Recommendation:

From the long term perspective SBI should be preferred over BoB as it has higher CASA

ratio which means SBI has to pay lower amount of interest on the deposits which results in

higher earnings. Also dividend payout ratio for SBI is higher which results in higher

dividend paid during the share holding period. Though NPA is higher in case of SBI but it

is significantly low. Credit Deposit ratio for SBI is also higher than BoB which indicates

that SBI is able to use its deposits money efficiently than BoB. Hence, SBI should be

preferred than BoB for a long term investment.

II.LENDING

1) SHORT TERM LENDING

We look at the following ratios for the purpose of short term lending.

Cash to Deposit Ratio: It is the ratio of cash available with the bank and the deposits

in the bank. The cash to deposit ratio of SBI as on 31st March, 2010 is 7.56 and the

same for Bank of Baroda is 5.57.

0

5

10

15

20

25

2006 2007 2008 2009 2010

RONW

RONW of SBI vs BoB

BoB

SBI


15/20


15

Deposits Growth Rate: It refers to the percentage growth in deposits of the bank. A

higher Growth Rate indicates that the bank is getting funds easily which means thatthe bank can expand easily.

Net Interest Margin: This ratio indicates the difference of interest income and interest

expenses to average assets. For banks, interest expenses are the major cost and

interest income is their main source of revenue. The difference between interest

income and expense is known as net interest income. It is this income, which basically

the bank earns from its core business of giving loans. Net interest margin is the net

interest income earned by the bank on its average earning assets. These assets

comprises of advances, investments, balance with the RBI and money at call. Higher

NIM ratio indicates better earnings, thus better earnings. The Net Interest Margin for

SBI as on 31st March, 2010 is 3.3 and the same for Bank of Baroda is 2.74.

0

2

4

6

8

10

2006 2007 2008 2009 2010

Cash/Deposit(%)

Cash/Deposit of SBI vs BoB

BoB

SBI

0

0.1

0.2

0.3

0.4

2006 2007 2008 2009 2010

Depo

sitGrowth

Rate

Deposit Growth Rate of SBI Vs BOB

BOB

SBI


16/20


16

Interest Expended / Interest Earned (%): This ratio indicates the amount of Interest

expenditure as a percentage of Interest Earned. A high ratio indicates that the

expenditure of the bank is higher and hence is not indicative of a healthy profit

position. The Interest Expended/ Interest Earned ratio for SBI as on 31st March, 2010

is 66.66 and the same for Bank of Baroda is 64.43.

Recommendation:

For short term lending perspective SBI is preferred over BoB as it has higher NIM

(Net Interest Margin). Also in case of SBI funds are easily available as it has higher

Cash to Deposit ratio than BoB. So SBI is having a lesser chance of lending being

defaulted. Hence, SBI should be preferred over BoB for short term lending

perspective.

0

1

2

3

4

5

2006 2007 2008 2009 2010

NIM

Net Interest Margin of SBI Vs BOB

BOB

SBI

0

20

40

60

80

2006 2007 2008 2009 2010

InterestExpanded/

InterestEarne

d

Interest Expanded/ Interest Earned of SBI vs BoB

BoB

SBI


17/20


17

2) LONG TERM LENDING

Capital Adequacy Ratio: A safe CAR is required to ensure that the company can keep

on growing by advancing more loans. The CAR required by RBI is 9%. The Capital

Adequacy Ratio for SBI as on 31st March, 2010 is 13.39 and the same for Bank of

Baroda is 14.36.

Return on Assets: It shows the ratio of profit to the total assets of the company.

Higher ROA indicates better efficiency.

Net NPA: The net non-performing assets to loans (advances) ratio are used as a

measure of the overall quality of the banks loan book. Net NPAs are calculated by

reducing cumulative balance of provisions outstanding at a period end from gross

NPAs. Higher ratio reflects rising bad quality of loans. Thus in the long run bank has

high chances of huge losses which would affect its profitability.

0

0.2

0.4

0.6

0.8

1

1.2

2006 2007 2008 2009 2010

ReturnonAssets

Return of Assets of SBI vs BoB

BoB

SBI

0

0.5

1

1.5

2

2006 2007 2008 2009 2010NonPerformingAssets(%)

Non Performing Asset of SBI vs BoB

BoB

SBI


18/20


18

EV/EBIDTA: EV/EBITDA ratio is the Enterprise Multiple: A ratio used to determine

the value of a company. The enterprise multiple looks at a firm as a potential acquirer

would, because it takes debt into account - an item which other multiples like the P/E

ratio do not include. A low ratio indicates that a company might be undervalued. The

enterprise multiple is used for several reasons:

It compares the value of a business, free of debt, to earnings before interest. The ratio

for SBI as on 31st March, 2010 is 2.34 and the same for Bank of Baroda is 1.69.

Return on Net Worth: It shows the ratio of profit and net worth of the company.

Higher ROE indicates better returns to the shareholders. Return on Equity for SBI as

on 31st March, 2010 is 14.8 and the same for Bank of Baroda is 21.86.

Recommendation:

From Long term lending perspective BoB will be preferred over SBI as the Return on

Equity (RONW) is higher in case BoB over SBI and also it is growing while in case

0

5

10

15

20

25

2006 2007 2008 2009 2010

EV/EBIDTA

EV/EBITDA of SBI vs BoB

BoB

SBI

0

5

10

15

20

25

2006 2007 2008 2009 2010

RONW

RONW of SBI vs BoB

BoB

SBI


19/20


19

of SBI it is falling. Also NPA is very less for BoB compared SBI which means higher

recovery in case of BoB and lesser risk. Also Return on Assets is higher for BoB than

SBI which suggests higher expansion and bank is positioned for a better earnings and

better return in the long run using optimum resources. Hence, BoB is preferred for

long term lending perspective than SBI.

III. STRATEGIC ANALYSIS

STATE BANK OF INDIA

Particulars 2006 2007 2008 2009 2010

Reserves (in

Rs. Crores)

27117.79 30772.26 48401.19 57312.82 65314.32

CAR 11.88 12.34 13.54 14.25 13.39

ROA 0.89 0.85 1.01 1.04 0.88

Net NPA 1.88 1.56 1.78 1.79 1.72

NIM 4.65 4.02 3.5 3.15 3.3

RONW 17.04 15.41 16.75 17.05 14.8

BANK OF BARODA

Particulars 2006 2007 2008 2009 2010

Reserves (in

Rs. Crores)

7,478.91 8284.41 10678.40 12514.19 14740.86

CAR 13.65 11.8 12.94 14.05 14.36

ROA 1.1 0.98 0.8 0.72 1.1

Net NPA 0.84 0.6 0.45 0.34 0.31

NIM 3.2 3.05 2.9 2.91 2.74

RONW 12.28 12.45 14.58 18.62 21.86


20/20


20

Recommendation:

State Bank of India:

There has been significant increase in the reserves amount and hence the bank should

go for expansion. SBI has already merged its own subsidiaries under its own name and

more such operations are in line in the future. It should target to finish this as soon as

possible in order to expand its network at the earliest possible.

NPA of SBI is higher than the industry average which is around 1%. It should hence try

to concentrate on minimizing the NPA component as much as possible.

There has been a decrease in both NIM and RONW of SBI and hence the bank shouldlook into the causes and thereafter the ways to mitigate the same since such continuous

reduction will reduce investor confidence.

Bank of Baroda:

The NPA component is quite low as compared to the industry average which indicates

that the bank is in good health. Hence the bank should maintain the level of this NPA.

Reserves have almost doubled in the last five years and so the bank should try to utilize

the reserves for expansion.

project report_group 1_section c

Documents