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CHAPTER I

INTRODUCTION

 General Introduction
 Statement of Problem
 Objectives of Study
 Period of Study
 Methodology
 Limitations of The Study
 Chapter scheme

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CHAPTER 1
INTRODUCTION

GENERAL INTRODUCTION
ORIGIN OF BANK
There are different opinions regarding the origin of the term ‘bank’.
According to some, the English term ‘bank’ is derived from the Italian word
‘Banco’, the Latin word ‘Bancus’ and the French word ‘Banque’, which means
a ‘bench’ used as a counter for banking activities. They are of the opinion that
the medieval European bankers [i.e., the money changers and money lenders]
transacted their banking activities, viz., money changing [i.e., exchanging one
currency for another] and money lending, by displaying coins of different
countries, and of different denominations, in big heaps on the benches in the
market places. As such, the word ‘Bank’ should be associated with the Italian
word ‘Banco’.
According to others, the term ‘bank’ is derived from the German word
‘Banck’ which means a joint stock fund or common fund [i.e., heaps of money]
raised from a large number of members of the public. They argue that the early
European bankers raised a common fund or heaps of money from the public for
the purpose of financing the needy. As banks deal in common fund or heaps of
money raised from the public, the term ‘bank’ should be traced to the German
word ‘Banck’.
Of these two views, the latter view seems to be more appropriate, as the
term ‘Bank’ is generally associated with an institution dealing in heaps of
money raised from the public.
1.1 DEFINITION OF BANK
It is very difficult to define the term ‘bank’ or ‘banker’ precisely. Even
the best authorities on banking have failed to provide a satisfactory definition of
this term. This is because a modern bank performs numerous activities, and it is
really difficult to incorporate all the activities of a modern bank in a simple and
satisfactory definition.

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1.1.1 DEFINITION GIVEN BY INDIAN BANKING REGULATION
ACT
Sec 5(1) (b) of the Indian Banking Regulation Act of 1949 defines the
term “Banking” as “accepting, for the purpose of lending or investment, of
deposits of money from the public, repayable on demand or otherwise and
withdrawable by cheque, draft, order or otherwise.”
1.1.2 CHARACTERISTICS OF BANK
According to the definition given by the Indian Banking Regulation Act
of 1949, the essential characteristics of bank are:
 Acceptance of deposits from the public on current, fixed and savings
bank account.
 Allowing of withdrawals of those deposits by cheques, drafts, orders or
otherwise.
 Utilization of deposits in hand for the purpose of lending or investment
in securities.
 Performance of other activities called subsidiary services, in addition to
the principal activities of receiving of deposits and lending of funds.
 Performance of banking business as the main business.
 Using the term ‘Bank’, ‘Banker’ or ‘Banking Company’ as part of the
firm.
The definition given by the Indian Banking Regulation Act of 1949
comprises all the essential features of the bank.

1.2 IMPORTANCE OF BANKS


Banking system occupies a very important place in a nation’s economy.
Banking institutions are indispensable in a modern society. They play a vital
role in the economic development of a country, and form the core of the money
market.
The economic development of a country mainly depends on
infrastructural facilities. Banks and other financial institutions constitute the
financial infrastructure of a country. The economic history of many countries
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reveals the economic development succeeds the growth of financial
infrastructure. History of Great Britain is the best example, where banking
development preceded industrial development.
Banks occupy very important place in the field of commerce and
industry of any country. They are so important that modern business is certainly
impossible without them and no country can achieve commercial and industrial
progress in the absence of a sound banking system. Banks are important
because they perform certain economic functions. The activities and functions
have becomes all pervading and omniscient. No government or individual can
discard or ignore the role of banks in their day to day activities. Economy of
countries developed or less developed, free or centrally planned cannot progress
without the aid of banks. They control financial stability of nations and can
augment to retard development. They permeate into political, social and all
other fields of human activity. The commercial banks put together the savings
of the community and arrange for their productive use. They satisfy the
financial needs of modern business.
The commercial banks accept deposits from the public, which are
repayable on demand or otherwise and lend money to those who stand in need
of money. In addition to the lending and borrowing of money, a modern bank
performs a host of other functions, all of which are of considerable utility to its
customer and the community generally.

INDIAN BANKING SECTOR


Banking in India has its origin as early as the Vedic period. It is believed
that the transmission from money lending to banking must have occurred even
before Manu, the great Hindu Jurist, who has devoted a section of his work to
deposits and advanced and laid down rules relating to rates of interest. During
the Mogul period, the indigenous bankers played a very important role in
lending money and financing foreign trade and commerce. During the days of
the East India Company, it was the turn of the agency houses to carry on the
banking business. The General Bank of India was the first joint stock Bank to

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be established in the year 1786. The others which followed were the Bank of
Hindustan and the Bengal Bank. The Bank of Hindustan is reported to have
continued till 1906 while the other two failed in the meantime. In the first half
of the 19th century the East India company established three banks; the Bank of
Bengal in 1809, the Bank of Bombay in 1840 and the Bank of Madras in 1843.
These three banks also known as presidency Banks were independent units are
functioned well. These three banks were amalgamated in 1920 and a new bank,
the Imperial bank of India was established on 27th January 1921. With the
passing of the State Bank of India Act in 1955 the undertaking of the Imperial
Bank of India was taken over by the newly constituted State Bank of India. The
Reserve Bank which is the central Bank was created in 1935 by passing Reserve
Bank of India Act 1934. In the wake of the Swadeshi Movement, a number of
banks with India management were established in the country namely, Punjab
National Bank Ltd., Bank of India Ltd., Indian Bank Ltd., The Bank of Baroda.,
The Central Bank of India Ltd. Only July 19, 1969, 14 major banks of the
country were nationalized and in 15th April 1980, six more commercial private
sector banks were also taken over by the government.
Banking institutions are the major sources of institutional finance in
India and they occupy a pivotal place in the organized sector of the Indian
money market. The organized sector consists of the commercial banks, co-
operative banks, Regional Rural Bank’s (RRB) and development banks. The
organized sector is under the regulation and control of the RBI and the
government. There is lot of difference between the organized and unorganized
sector of the money market in terms of their structure, working, function, terms
of credit, interest rate etc.
The institutions that perform banking activities are called banking
institutions. Banking institutions in India are classified as under:
1. Commercial Banks
a) Scheduled Banks
(i) Public sector banks
• State Bank group

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• Nationalized banks

(ii) Private sector banks


• Indian Banks
 Old Indian Private Sector Banks
 New Generation Banks
• Foreign Banks
b) Non –Scheduled Banks
2. Regional Rural Banks (RRB’s)
3. Co-operative Banks

a. Primary Credit Societies (PACs)


b. Central co-operative Banks (CCBs)
c. State Co-operative Banks (SCBs)

1.3 COMMERCIAL BANKS


Commercial banks are those banks, which accept deposits from the
public and lend them for short periods for trade and industry. The commercial
banks are classified into (a) Scheduled and (b) Non - scheduled banks. Banks,
which are included in the second schedule of the RBI Act, are known as
scheduled banks. To include a bank’s name in the second schedule of the RBI
Act, it must have a paid up capital and reserves fixed by the RBI from time to
time and it must satisfy the RBI that its business is not conducted in a manner
detrimental to the interest of the public. Scheduled banks are entitled to get
borrowing facilities from the RBI and they are also covered by the deposit
insurance scheme and the credit guarantee scheme.
The banks, which are not included in the second schedule of RBI Act,
are called non-scheduled banks. The classification of scheduled and non-
scheduled commercial banks lost significance in the wake of nationalization of
commercial banks in 1969 and later in 1980. Now non-scheduled banks are
disappearing from the banking scene.
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Scheduled commercial banks can be public sector banks and private
sector banks. Indian public sector banks consist of State Bank group and other
nationalized banks.

1.4 ROLE OF COMMERCIAL BANKS IN A DEVELOPING


ECONOMY
Commercial banks have a significant role to play in the development of a
country. Development in trade and industry is possible only if the banking
system in the country is developed. The importance of commercial banks in the
development of a country can be understood from the following points.
1.4.1 Capital formation: - Capital is an inevitable factor of modern production
and without which entrepreneurs are helpless in carrying out business activities.
Commercial bank mobilizes scattered, even small savings of the public through
a variety of deposit schemes. The money so mobilized is put to use for
productive purposes by extending short term and medium term loans to
industries. Thus they help in the capital formation of a country.
1.4.2 Generation of employment opportunities: - Commercial banks generate
employment opportunities by financing trade and commerce. Through financing
of industries, commercial banks encourage new entrepreneurs, who do not have
their own funds, to start business activities. New business activities generate
employment opportunities. Further, banks help young people to get employment
by providing loans for higher studies.
1.4.3 Development of rural areas: - Expansion of banking system throughout
the country, both in urban and rural areas, is very essential for the development
of a country. Commercial banks, by establishing their branches in rural areas,
cater to the financial needs of the rural people and they inculcate a healthy
saving habit among the rural masses. All these lead to development in backward
areas.
1.4.4 Influence economic activity: - Commercial banks in a country are
capable of determining the rate of interest in the money market through its
supply of funds. During times of economic recession they can pump in more

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money into the economy and during times of boom they can siphon the money
off from the economy. All these actions of commercial banks have a direct
bearing on the economic activities taking place in a country.
1.4.5 Facilitates Monetary Policy: - The policies taken by the Central Bank of
a country to strengthen the economy is called monetary policy. The central bank
can implement the monetary policy only through the commercial banks. Thus
the role of commercial bank is that of a facilitator in implementing monetary
policy by the Central Bank.
1.4.6 Improves the standard of living of the people: - Generation of
employment opportunities by commercial banks fetches higher income to the
people that ultimately add to their purchasing power. Again, banks advance
loans to consumers to buy consumer durable goods like houses, scooters,
refrigerators etc. In this way, they help in developing the standard of living of
the people in a developing country.

1.5 LIBERALISATION OF INDIAN BANKING SECTOR


The financial sector reforms, that started in the year 1991 – 1992, in this
country has facilitated the dawn of LPG era (Liberalization, Privatization and
Globalization) in the horizon of the Indian banking industry. In the emerging
scenario, the LPG strategy has brought sea changes in the banking sectors that
have started rocking the bottom liens of many public sector banks. The recent
revolution in the Information Technology (IT) has further complicated the
emerging scenario. Both IT and LPG have brought the under noted changes that
pose with opportunities as well as threats to the banking sector.
The following are the outcome of LPG.
• More competition
• Innovation of various financial products.
• High customer expectation for quality and value added service.
• Marketing of banking product/services
• Asset and liability mismatch
• Increase in business risks.
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• Capital restructuring
• E-Commerce and internet banking
• Whole sale and retail banking
• Tele-banking
• Home Banking
• Anywhere and any time banking
Public sector banks are those banks which are owned and controlled by
the government. In India, the nationalized banks and the Regional Rural Banks
come under this category. Reserve Bank of India constituted a working group
on restructuring of weak public sector banks on February 6th 1999 under the
chairmanship of Shri. M.S. Verma Hon. Advisor of the Reserve Bank of India.

1.6 FINANCIAL HEALTH OF A BANK


The customer views a bank’s capability through the security and solidity
provided by it. Thus the financial health of a bank mainly depends on the
following:
 Financial performance: - It is the multidimensional views of the
financial position reported by geography, business line, SBU’s etc;
providing an ability to assess changes in position, future potential to repay,
increase shareholder wealth, and contribution to capital growth.
 Financial position: - It is basically capital solvency and liquidity with
clear differentiation between regulatory and economic capital, and also the
capability of the bank to meet its commitments.

1.7 INTRODUCTION TO THE PROJECT


In a modern money using economy, finance means the provision of money at
the time of its necessity. Finance is the lifeblood of business. The ambitious
plans of a businessman would remain mere dreams unless adequate money is
available to transform them into reality. As finance is required at each stage of
an enterprise, we can say that money is to an enterprise what oil to an engine.

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The word finance comes indirectly from the Latin word ‘finis’. Finance is the
only common denominator for vast range of corporate objectives. The major
part of any business plan must be expressed in financial terms. This brings to
light the need for proper administration of finance. Proper administration of
finance means the study, analysis and evaluation of all financial problems to be
faced by the management and to take proper decisions with reference to the
present circumstance regarding the procurement and utilization of funds that
might be necessary to increase the efficiency of the remaining factors of
production.
Finance is defined as ‘issuance of, distribution of, and purchase of liability and
equity claims issued for the purpose of generating revenue producing assets’1.
Profit may be considered as an index of success. It serves three purpose i.e.,
measures effectiveness, soundness of businessman and offers the ultimate test
of business performance. The basis of financial planning and decision making is
the financial information. Financial information is needed to predict, compare
and evaluate a firm’s earning capacity. It is also required to aid in economic
decision making, investment and financing decision making. The financial
information of an enterprise is contained in the financial statements or
accounting records. Financial statements are the basis for decision making by
the management as well as by outsiders who are interested in the affairs of the
firm.
Financial statement is an organized collection of data according to logical and
consistent accounting procedures. Its purpose is to convey an understanding of
some financial aspects of a business firm. Financial statements provide a
summary of the accounts of a business enterprise in the form of balance sheet
exhibits the assets, liabilities and capital as on a certain date while the profit and
loss account reveals the results of operations during a certain period. Each entry
in these statements has a meaning. In order to interpret these statements one
must know the implication and significance of each entry.

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The information provided in the financial statements is of immense use in
making decision through analysis and interpretation of financial statements.
Financial analysis is the process of identifying the financial strengths and
weakness of a firm by properly establishing relationship between the items of
balance sheet and profit and loss account. Financial statement analysis is largely
a study of relationship among the various financial factors in a business as
disclosed by a single set of statements and a study of the trend of these factors
as shown in a series. The analysis and interpretation is essential to bring out the
mystery behind the figures in the financial statements. The purpose of financial
analysis is to diagnose the information contained in the financial statements so
as to judge the profitability and financial soundness of the firm. Canara Bank is
now hundred years old founded on 1 July 1906 with laudable intentions of
helping the common man Canara Bank now ranks as the largest among the
nationalized banks in terms of the global business. It is also one of the highest
profit earners among Indian banks. In the study an attempt is made to analyze
bank’s past performance and asses its present financial strength.

1.7 USE OF FINANCIAL STATEMENT


A firm communicates financial information to the users through financial
statement. The information contained in these statements is used by
management, investors and others to form judgment about the performance and
the financial position of the firm. Users of financial statements can get better
insight about financial strengths and weakness of the firm provided they
properly analyze the information contained in the statements. Management is
also interested in knowing financial strength of the firm to make their best use
and be able to spot out financial weakness of the firm and to take suitable
corrective actions. The future plans of the firm should be laid down in view of
the firm’s financial strengths and weaknesses. Financial analysis is the starting
point for making plans. Understanding the past is the pre-requisite for
anticipating the future. So it is relevant and useful to make the analysis of the

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financial performance of Canara Bank. The problem is stated as ‘An Analysis of
Financial Performance of Canara Bank’.

1.8 OBJECTIVES OF THE STUDY


1. The main objective is to analyze and interpret the financial performance and
effectiveness of the bank activities from 2007 to 2010.
2. To asses the operational efficiency of the bank.
3. To analyze the profitability of the bank.
4. To suggest suitable remedial measures for better performance of the bank.

1.9 SIGNIFICANCE OF THE STUDY


The social and economic significance of the study can be stated as under;
1. Financial analysis is an essential prerequisite for financial planning and
decision making.
2. The outsiders who want to make analysis do not have access to the
internal accounting records. They have to rely upon the published accounts
to a considerable extent. This study will enable them to understand the
trends of growth of the bank.
3. Financial analysis enables the management to exercise control over the
bank’s operations, to know the changes in the financial and operating
conditions and to check the adverse trends then and there.
4. The study enables to understand the competitive strength and growth rate
when compared with other banks.
5. Such a study helps the government to implement various measures on the
bank.

1.10 PERIOD OF STUDY


The study comprise five years commencing from 2007-2010

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1.11 METHODOLOGY
The crucial aspect while doing the project is fetching correct and relevant
information which gives proper and correct conclusion after interpretation
having determined the purpose and objective. This is an exploratory research
design, which involves information from the annual financial statements and
reports of Canara Bank. For the analysis one has to determine the best method
of collection of data. Thus the sources of data collection are classified into two
groups;
• Primary Source
These are those data which are originally collected for the first time for specific
purpose. They are original in character. Interviews with the top executives of
the bank form the source of primary data.
• Secondary source
These are data which are already collected, purchased, used by someone else for
their own purpose. Such data have been collected from the audited accounts of
the Canara Bank. The required data for this study are basically secondary in
nature.

1.12 TOOLS OF ANALYSIS


In this study profitability ratios cost and yield ratio and operational efficiency
ratio are being calculated to analyze the financial statements of four years.
Tables and charts are used to represent the analyzed data.

1.13 LIMITATIONS OF THE STUDY


1. The change in interest and price levels makes comparison for the
years difficult.
2. The study is made with the help of an analytical tools like ratios,
trend percentage etc. So the inherent limitations of these analytical tools are
other limitations of the study.
3. Due to shortage of time an in depth study regarding the topic is not
possible
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1.14 CHAPTER SCHEME
The study is presented in 5 chapters:
Chapter I
Introductory chapter contains general introduction, introduction to the project,
Statement of the problem, objectives of the study, significances of the study, period
of the study, methodology, limitations and chapter scheme.
Chapter II
The second chapter deals with the profile of the bank
Chapter III
The third chapter provides a brief review of literature related to financial
analysis of the bank. This chapter also contains a brief description regarding the
performance highlights of the bank and its various areas of operations. It
includes a diagrammatic representation of jurisdiction of the bank.
Chapter IV
The fourth chapter evaluates the over all performance and Profitability of the
bank. The important ratios calculated for the analysis of financial performance
of the bank are Profitability ratios, Cost and Yield ratios and Operational
Efficiency ratios.
Chapter V
This chapter presents a summary of findings and recommendation

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CHAPTER II
COMPANY PROFILE

• About Canara bank


• Management
• Performance highlights
• Working results

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CHAPTER II
COMPANY PROFILE

Canara Bank is today one of the largest banks in the country, the largest among
nationalized banks in terms of global business. The tiny seed that was planted
way back in 1906 in the coastal town of Mangalore by a crusader for social
causes, philanthropist and advocate, Sri. Ammembal Subba Rao Pai, has today
grown to attain the status of a banking behemoth, an institution that is looked at
with awe by its contemporaries.
Yes, Canara Bank has indeed come a long way. An institution that aimed to
ameliorate the sufferings of the common man, reeling under the clutches of
unscrupulous moneylenders and to promote thrift and savings among other
objectives still proudly relates itself to the noble cause of serving both the
cognoscenti and the hoi polloi and humbly holds on to its status of a ‘common
man’s bank’. It was David Rockefeller who said that ‘Banks are there to help
people who want to come up in the world’. In the hundred years of its existence
Canara Bank has let many lamps, brought sunshine into countless number of
households, and helped millions of our countrymen to rise and shine and to
better the quality of their lives. The characteristics that any good bank should
possess, viz. flexibility of approach, receptivity to change, optimism, courage to
take risk and a sense of responsibility is all to be found in this great Institution. It
has been nurtured to its present state by the invaluable contribution of thousands
of men and women, selfless individuals who shaped its destiny, acquiring for it
in the process a distinct brand image of trendsetter, a bank par excellence, setting
benchmarks in each and every sphere of its activity.
Canara Bank always lays great store by its human resources. Just as Rome was
not built in a day institutions too do not attain gargantuan proportions overnight.
Canara Bank is one of the few that has exhibited sturdiness and resilience taking
vicissitudes in its stride, emerging more powerful each time, bouncing back to
serve the community at large with all the resources at its command. This saga of

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success it owes to its workforce, its loyal band of men and women who have
stood by it through thick and thin and its clientele whose loyalty to the institution
unquestionable. The identification of the individual with the institution, a sine
qua non for progress, is complete in the institution which has never failed to
foster the growth of its human resources and has always charted out career path
for them. The bank has also focused extensively on training its human resources
so as to enable them to come to grips with the changing banking scenario. A
record number of 88,171 employees have been trained during 2005 and the
target of training 1, 00,000 employees has been achieved at the end of June
2006.
Another area where the bank has been placing emphasis in the last few years is
Information Technology (IT), the buzzword in banking circles today. The bank
has computerized all its branches, introduced slew of IT driven products and has
also rolled out its Core Banking Solution which will add a lot of muscle to its
operations in the coming days. Canara Bank has always prided itself on its
excellent standards of customer service. In a scenario of changing customer
expectations where the focus is more on speed and quality of service; the bank
has spared no effort to spruce up its service standards and has always
endeavored to render state of the art service to its clientele. The bank, right from
its fledgling years, has been aware of its duties and responsibilities as a
corporate citizen. Corporate Social Responsibility has been a mantra that the
bank has been assiduously cultivating and its efforts in this direction have been
amply rewarded with encomiums and accolades from all quarters. The bank was
the recipient of the Helpage India award for Corporate Social Responsibility for
2004-2005, an hour that it wrested in the teeth of competition from corporates
all over the country. Under the aegis of the Canara Bank Centenary Rural
Development Trust, the bank has been doing yeoman service in espousing the
cause of the poor and downtrodden and has devised a number of schemes for
their uplift, focusing not just on driving the wolf from the door but also on
engendering self employment, creating self-help groups, providing multifarious
avenues for women to come up in life and unshackling them from bondage have

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also been among the bank’s priorities. Corporate Governance is also being
accorded top priority and the bank has been endeavoring to maximize value for
all categories of stakeholders. The bank’s public issue in 2002 was
oversubscribed nearly two times even in lukewarm conditions and investors
have been handsomely rewarded with dividend and capital appreciation with the
bank’s stock trading at the bourses at several multiples of the offer price.
The bank has seen a steady and consistent growth in both its deposits and
advances. In the last five years the deposits and advances of the bank have been
grown at a compounded annual growth rate of 13.9 percent and 18.5 percent
respectively. The bank has also witnessed an improvement in its operating
efficiency with the business size per branch growing at a compounded annual
growth rate 14.4 percent over the last seven years.
The bank expanded into international markets with the opening of its London
branch as early as 1983. Currently, the bank’s international operations are
represented by its presence in London and Moscow and a wide network of
correspondent banking arrangements. The bank also has a wholly owned
foreign subsidiary Indo Hong Kong International Finance Ltd; head-quartered
in Hong Kong which accepts deposits and undertakes trade financing activities.
To further its foreign business initiative, the bank has recently entered into an
agreement with State Bank of India for setting up a joint venture bank in
Moscow under the name ‘Commercial Bank of India’. The bank already
operates in Moscow through a representative office. The bank is also providing
Tele-banking, Anywhere – Banking and remote Access Terminal facilities to its
customers.
The bank’s corporate vision in the medium term is to be a ‘World Class and
world Sized Bank’. The bank believes that its efforts in respect of IT initiatives,
focus on customer centric measures and thrust on profitability would enable it to
fulfill its vision. Corporate mission of the bank is to achieve ‘Profitability,
Efficiency, and Productivity’.

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II.1 Competitive Strength
 One of the largest banks in India, with total business (advances plus
deposits) exceeding Rs. 97,000 crore.
 Continuous track record of profitability since inception.
 Low NPA level of 3.89 per cent.
 Vast domestic branch network spread across the country.
 Wide – ranging portfolio of financial services provided through various
subsidiaries of the bank.
 Technology edge with hundred per cent of the bank’s business being
computerized.
 Technology backbone enables the bank to undertake product innovation
and adopt a customer centric approach.
 Strong presence in credit cards with an ISO 9000 certification for the
operations.

II.2 MANAGEMENT
The overall supervision and control of the Bank’s functions rests with the Board
Directors which consists of the Chairman and Managing Director and Executive
Director, both appointed by the Government of India, other directors
representing the Government, Reserve Bank of the India, Employees and
officers of the Bank. The day- to-day affairs of the Bank are managed by the
Chairman and Managing Director, the Executive Director, the Bank’s General
Managers who are assisted by a team of competent professionals.
The entire equity capital is presently held by the Government of India. The
Government of India, Ministry of Finance, Department of Economic Affairs
(Banking Division) by its letter dated August 29, 2002 has given its approval for
the present issue. After the issue, the shareholding of the Government of India
will be 73.17 per cent.The Government of India, Ministry of Finance,
Department of Economic Affairs (Banking Vision) has given its approval for
lock-in of 20 per cent of the post- issue capital for a period of three years from

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the date of allotment in the Issue and the remaining capital held it for a period of
one year from the date of allotment in this issue.

II.3 OBJECTIVE OF ISSUE


The present Issue of equity shares is being made to-
 Augment the long-term resources of the Bank.
 Augment the capital base of the Bank to meet its future capital adequacy
requirements.
 List the shares of the bank on Stock Exchange.
 Meets the expenses of the Issue.

II.4 REQUIREMENTS & UTILIZATION OF FUNDS


In years to come, the bank expects growth in its business activities and
operations. Accordingly, risk weighted assets of the bank also expected to
increase over the years. The key areas of focus for the bank in this regard are
retail advance, housing loans, loans to retail traders and self employed
businessman, SSI lending and agricultural advances. Increase in Tier I capital
through retained earnings alone may not be enough to enable the bank to
maintain sufficient capital adequacy ratio. In view of the likely expansion of
risk weighted assets, the bank proposes to augment its net worth in order to
sustain a healthy capital adequacy ratio.
The proceeds of this issue will be utilized for the regular business activities of
the bank, in line with the estimated growth in risk weighted assets and
accordingly to maintain an optimal Capital Adequacy Ratio. The issue expenses
will be met out of the proceeds. Moreover, listing will provide the Bank an
opportunity to establish its presence in the capital market and an opportunity to
raise funds in the future subject to fulfilling the statutory requirements.

II.5 CANARA BANK ATTEMPT TO SEED GROWTH


In its time-tested pursuit of serving to grow growing to serve, Canara bank
entered into corporate Agency arrangements with AVIVA life insurance
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company Pvt. Ltd.on February 25, 2003.Canara bank foray was consolidated
with a tie – up arrangements with United India insurance company ltd as a
corporate agent for distribution of general insurance products without any risk
participation, through a memorandum of understanding (MOU) signed on
February 17, 2005. Canara bank obtained the IRDA composite license to act as
a corporate agent both for AVIVA life insurance and United India. Such tie -
ups, which enabled both entities to meet the needs of their customers in a
greater and more substantial measure, are helpful for both large players. While
it would enable Canara bank to leverage its large and extensive country wide
branch network and customer base to cross sell a range of general insurance
products and thus open up a new revenue stream. United India insurance
company would gain by access to Canara bank’s huge network and customer
base. The commission earned is paid directly by United India to a branch
through which policies have been sourced thereby augmenting the non – interest
income of the branch directly.
Potential premium for the branch is composed on the basis of classification of
loans and advances, amount of loan sanctioned or outstanding , type of
insurance policies, date of expiry of policy, sum insured , and amount of
premium paid to the company, name of the existing insurance company
covering assets and date of renewal under corporate agency.There are other
types of policies available targeting specific areas or groups;
Engineering insurance: electrician all risk policies, contracts all risk policies,
machinery break down policy, electronic equipment insurance etc.
Welfare policies: Raj Rageswari Mahila Kalian Yojna, Bhagyashree child
welfare policy, Jana arogya policy.
Rural insurance: cattle, poultry, pump sets, grameena personal policy etc.

21
FINANCIAL PERFORMANCE AND WORKING
RESULTS OF CANARA BANK
II.6 FINANCIAL SOUNDNESS
II.6.1 Capital
The Bank’s paid-up capital stood at Rs. 410 crore with 1.08 lakh
shareholders. Capital to Risk Weighted Assets Ratio worked out to 13.05% vis-
à-vis the 9% benchmark.
II.6.2 Reserves and owned funds
Reserves increased to Rs. 9944 crore, additional accrual during the year
being Rs. 3222 crore. Owned funds stood at Rs. 8111 crore as compared to Rs.
7132 crore at the end of the previous year.
II.6.3 Profits and profitability
Gross profit for the year 2006-07 stood at Rs. 2912 crore, while net profit
was of the order of Rs.1421 crore.
Return on Average Assets (RoAA), worked out to 0.98%, despite a 25%
growth in total assets. Net interest Income was up 12.43% to Rs. 4027 crore.
II.7 BUSINESS
II.7.1 Deposits
Global deposits of the Bank moved up to Rs.142381from Rs.116803
crore a year ago, signifying a 22% growth, covering 25.53 million accounts.

II.7.2 Advances
Global advances (net) aggregated to Rs.98506 crore, up from Rs.79426 crore a
year ago, exhibiting a growth of 24%. 75% of the incremental credit during the
year was deployed in productive sectors like agriculture, SME, industries,
infrastructure and services sectors. While overall credit growth has been 24%,
growth in credit to productive sectors worked out to over 33%, out of which
growth in agriculture and industries worked out to 29% and 36% respectively.

22
160000

140000

120000
100000
Deposits
80000
Advances
60000
40000

20000

0
2003-04 2004-05 2005-06

2004-05 2005-06 2006-07

Graph II.7.2. Deposits and Advances

II.7.3 Productivity
Business per Employee moved up from Rs. 4.42 crore to Rs. 5.49 crore,
while Profit per Employee stood at Rs.3.24 lakh.

II.7.4 Priority sector operations


Advances to priority sectors moved up to Rs. 37844 crore, recording a
growth of 22.33%, accounting to 40.21% of net credit vis-à-vis the 40% norm.
Under priority sector advances, agricultural credit aggregated to Rs.15521 crore,
signifying a robust 29% y-o-y growth. Agriculture disbursements touched
Rs.9404 crore in 2005-2006 as against the level of Rs. 4103crore during 2002-
2003, registering more than doubling of agricultural credit in three years.
Similarly outstanding agricultural advances increased from a level of Rs.6545
crore as at March 2003 to Rs. 15521 Crore as at March 2006, signifying a 137%
growth. During the year, the Bank financed 326 lakh new farmers. Besides, the
number of Kisan Credit Cards (cumulative) reached a level of 21 lakh.The Bank
has so far 1.5 lakh Self Help Groups (SHGs) in which1.2 lakh were credit
linked.Advances to SME sector moved up to Rs. 14245 crore, recording a y-o-y
growth of 23% as against the target of 20% for the year.

23
14245
15521 SMEs
Other Priorities
Agriculture

12472

Graph II.7.4 Priority sector operations


Canara Bank has been playing a lead role in furtherance of the financial
inclusion movement in the country. In addition to various schemes for the
hitherto excluded segments, the Bank has extended its Total Financial Inclusion
campaign to 1639 villages across the country. Two of the Bank’s lead districts,
namely Palakkad in Kerala and Davangere in Karnataka, have already acquired
the distinction of 100% financially included.
CanSaral, a no-frills Scheme, aimed at enhancing the coverage under
total financial inclusion has garnered around 3.5 lakh accounts. The Bank has
launched a programme to achieve total financial inclusion in 23 lead districts
and initiated a campaign to create one million no-frill accounts during 2006-07.

II.7.5 Retail lending


Disbursals made under retail lending during FY06 amounted to Rs.7407
crore, taking the outstanding retail loans to Rs. 17485 crore, recording a y-o-y
growth of 20%. Retail advances (direct) to the housing segment clocked a
17.43% growth to reach Rs. 6575 crore. Advances to retail trade and other
personal segments stood at Rs. 3584 crore and Rs.7326 crore respectively. Bank
has been prudent in its retail exposure. Retail portfolio as a proportion of net
credit was also brought down to 17.84%, which is in tune with the policy focus
on rebalancing of credit portfolio. Direct housing loan formed 37.6% of retail

24
portfolio, out of which 81% were under the priority ambit, reflecting the Bank’s
continued concern for the common man.

36000
34000
32000
30000
28000
26000
24000
22000
20000 Other personal
18000 Retail trade
16000
14000 housiing
12000
10000
8000
6000
4000
2000
YEAR 2003- 2004- 2005-
04 05 06
2004-05 2005-06 2006-07

Graph No. II.7.5 Retail Lending


In the sphere of education loan, cumulative assistances by the Bank was
of the order of Rs. 1252 crore, covering 92579 students taking up higher studies.
With 31.37% growth in education loan, Canara Bank is placed first among
nationalized banks in funding higher education.

II.7.6 Treasury
Aggregate investments of the Bank, as at March 2007, were of the order
of Rs. 45226 crore,. Duration of the investment portfolio has been brought
down considerably as a conscious management decision in view of interest rate
volatility and rising trend in interest rate. The advantage of having higher
volumes under the ‘Available for Sale’ duly reflects that the stated value of the
portfolio is truly realizable.

II.7.7 International operations


During the year, the second overseas branch of the Bank was inaugurated
by Shri. P. Chidambaram, Hon’ble Finance Minister of India, at Hong Kong.
Foreign business turnover of the Bank, as at March 2007, aggregated to

25
Rs. 130083 crore, recording a robust y-o-y growth of 32%. Turn over under
exports, imports and remittances were of the order of Rs. 49307 crore, Rs.
31705 crore and Rs. 49071 crore respectively. Outstanding advances to the
export sector stood at Rs. 7896 crore as against Rs. 7136 crore at the end of the
previous year.

II.8 ASSET QUALITY AND RISK MANAGEMENT


II.8.1 Asset quality
Bank’s gross NPA level stood at Rs. 1493 crore, with gross NPA ratio
down from 2.25% to 1.5%. Net NPA level stood at Rs. 927 crore, with net NPA
ratio further coming down to 0.94% from 1.12% a year ago. The Bank could
effect a cash recovery of Rs. 1025 crore in NPA accounts during the previous
year.
4.5
3.89
4
3.5
3
2.5 2.25 Gross NPA ratio
1.88 Net NPA Ratio
2
1.51
1.5 1.12
0.94
1
0.5
0
Year 2003-04 2004-05 2005-06

2004-05 2005-06 2006-07

Graph No. II.8.1 Asset quality

II.8.2 Risk management


The Bank has initiated implementation of parallel nun of new capital
adequacy framework under Basel || during the year and is full geared for a
smooth switchover within the RBI prescribed time schedule. The Bank’s Board
has been driving the policy initiatives and putting appropriate strategies in place
for effectively managing the Credit, Market and Operational risks. Top
executive Risk Committees, headed by the Chairman & Managing Director, are
in place to effectively address all issues related to the management and
mitigation of various business/ control risks.

26
II.9 CORPORATE SOCIAL RESPONSIBILITIES
II.9.1 Rural development
Rural Development and Self- Employment Training Institutes
(RUDSETls) co-sponsored by the Bank have been engaged in proving training
to rural youths to pursue various self-employment activities. RUDSETls,
numbering 20 across India, have so far trained 1.87 lakh unemployed youth,
with a settlement rate of 67%. The Bank under Canara Bank Centenary Rural
Development Trust, has promoted 14 self-employment training institutes. These
institutes have so far trained 56520 rural youth, with an impressive settlement
rate of 72%. The trust is also extending support to Society for the Educational
and Economic Development (SEED), a voluntary organization working for the
welfare of socially marginalized children.
The Bank’s ‘Rural Clinic Services’, scheme, has assisted doctors in
opening 21 additional clinics during 2006-07, taking the total of such clinics ro
493 across India. Under ‘Jalayoga’, a scheme for facilitating availability of safe
drinking water in rural areas, the Bank has completed 35 projects so far.
Tapping the spirit of voluntarism among its employees, the Bank, under the
Rural Service Volunteer Scheme, has assisted 500 villages, benefiting over 2
lakh families since its inception in 1985. As a responsible corporate social
citizen, the Bank has donated hi-tech and solar powered ‘Mobile Sales Van’ to
assist women entrepreneurs, SHG and artisans in their entrepreneurial ventures.

II.10 ANCILLARY SERVICES


II.10.1 Bancassurance and cross-selling MF products
The Bank, under tie-up arrangement with M/s AVIVA Life Insurance
Company India Pvt. Ltd, collected premium amounting to Rs. 318 crore (sum
assured) during the year. It has also tied-up with M/s United India Insurance
Company Limited for undertaking Non-Life Insurance business. Under cross-
selling of Mutual Fund products of Canbank Mutual Fund and HDFC Mutual
Fund, the Bank mobilized a sum of Rs. 945 crore.Bank has since tied up with
global majors for creating Joint Ventures in Insurance and Asset Management.

27
II.10.2 Merchant banking operations
During 2006-07, the Bank handled 16 assignments as Lead Manager/Co-
Book Running Lead Manager/Co-Manager& Advisor, covering 5 Public Issues,
9 Private Placement Issues, one Rights Issue and one assignment of Delisting of
Equity. The Bank handled 22 ‘Bankers to the Issue’ assignments as Escrow
Bankers/ collecting Bankers with total float funds amounting to Rs. 4360 crore.
II.10.3 Corporate cash management services (CCMS)
Aggregate turnover under Corporate Cash Management Services scheme,
for the year ended March 2007, amounted to Rs. 2650 crore. The scheme
provides services, such as local and upcountry cheque collection, bulk cheques
collection and zero balance account facility. The CCMS network presently
covers 94 Operating Centres and 683 Pooling Branches.

II.11 BUSINESS SUPPORT SYSTEM


II.11.1 Branch network
As at March 2006, the Bank had 2578 branches, inclusive of its branch at
London, Hong Kong and Offshore Banking Unit at NOIDA, besides 251
Extension Counters. Numbers of branches in rural, urban semi-urban and metro
locations were 728, 656,591 and 600 respectively. Number of specialized
branches stood at 121.
II.11.2 Technology initiatives
Financial 2005-06 witnessed significant headway in the realm of Core
Banking Solution (CBS). The Bank also significantly enhanced tech-enabled
multi-delivery channels during the year to 1132 ATMs (458centres), 1550
‘Anywhere Banking’ branches and 1156 internet & Mobile Banking branches.
Number of branches providing RTGS and NEFT further increased to 1506. The
Bank entered into an agreement to share ATM network with SBI and ATMs
under National Financial Switch (NFS), providing access to ATM network of
23 other Banks. In all, customers of Canara Bank now have increased access to
over 14000 ATMs across the country. In a noteworthy intiative, as many as 125
ATMs spread across the country were commissioned on a single day in March
28
2006, with Shri. V. Leeladhar, Deputy governor, Reserve Bank India, gracing
the function at Banglore. During the year, the Bank has Added more than 5 lakh
Debit Card clientele base, taking the total number of debit cards to 22.68 lakh as
at March 2006.
II.11.3 Customer orientation
The Bank, during the year, introduced several new measures towards
further improvingn customer centricity and service quality to match the
competitive market conditions and customer expectations. In a noteworthy
intiative, the Bank has implemented ‘Six Sigma’ project for enhancing the
knowledge base of its frontline staff on products and services. Keeping track of
services quality at branches has been a hallmark of the Bank’s unprecedented
customer orientation. During the year, customer survey from a sample of 25
branches each in five metros, viz., Bangalore, Chennai, Delhi, Kolkata and
Hyderabad, covering 10000 customers was conducted by consultant of repute to
further improve the level of customer service. Further, as a member of Banking
Codes and Standards Board of India (BCSBI), set up by RBI, the Bank has
brought out a booklet on “Code of Commitment to Customers” to create
awareness among the customers as well as staff about the Uniform Fair Practice
Code used as benchmark standard by all banks in India
II.11.4 Human resources development / TQM
Knowledge enrichment for employees continued to be a top priority for
the Bank during FY07. Close on the heels of achieving the one lakh mark in
training/re-skilling during its centenary year. 2005-06 featured the tally moving
up further to 109661 covering diverse functional areas. During the year, the
Bank effected a major organizational restructuring exercise for greater business
focus and expeditious decision making, apart from moves to decentralize
operational activities.
The Bank also adopted a fast track promotion policy and implemented
cash incentive scheme for high performers. Canara Bank is also the only Bank
in the country to have formed ‘Club 2020’ a group, comprising young talent, to
spearhead strategic changes in the fast changing banking environment.

29
Focus on specialized expertise led to recruitment of 541 officers through
campus and direct recruitment in diverse areas like marketing, financial analysis
and risk management.Continued focus on quality drive enhanced the number of
ISO 9001 Certified Branches and Administrative Offices to 805 and 14
respectively as at March 2007.
II.12 PRODUCT PROLIFERATION
II.12.1 New products/services
In addition to a host of existing products and services, the Bank
introduced several deposit products during FY07, Can Tax Saver, a term deposit
scheme, was introduced under the Kamadhenu and fixed deposit mode with tax
benefit under Section 80C. CanChamp- an exclusive SB deposit product was
launched for aspiring children upto the age of 12 years for inculcating the habit
of savings. A term deposit scheme, namely, Canara Centenary Deposit was also
introduced during the year, offering attractive rate of interest for the depositors.
During the year, the Bank also launched a SB- Gold deposit scheme, targeting
the HNI clients.
In the sphere of new loan products, the Bank introduced ‘Kisan Tatkal’
for enabling farmers to meet emergent requirements and ‘Kisan Mitra’ scheme
for funding tenant farmers. Grameen Vikas Vahini, vehicle for inclusive growth
in rural areas was also introduced during the year. To promote SME sector, the
Bank launched SME Gold Card and a Term Loan Scheme for reimbursement of
capital expenditure.
II.13 SUBSIDIARIES, JOINT VENTURE AND SPONSORED
INSTITUTION
The Bank has nine subsidiaries/joint ventures/sponsored institutions
providing a wide ranges of services, and is, thus, poised to emerge as a major;
’Financial Conglomerate’.
Canbank Venture Capital Fund Limited (CVCFL) currently manages four
funds, with fourth fund made operational since December 2005. It has so
mobilized a corpus of Rs, 60 crore from seven banks and SIDBI. Till March
2006, CVCFL has assisted 84 ventures, involving financial assistance to the

30
tune of Rs. 74 crore. The Company recorded a profit after tax of Rs.20 lakh for
the year 2006-07 and distributed a dividend of 40%.
Can Fin Homes Limited a sponsored housing finance institution of Canara
Bank, sanctioned and disbursed a sum of Rs. 417 crore and Rs. 453 crore
respectively during 2006-07. The Company has recorded a profit after tax of Rs.
30 crore.
Can Bank Investment Management Services Limited (CIMS) acts as
investment manager for all the schemes floated by Canbank Mutual Fund.
CIMS, with combined net assets of Rs. 2185 crore, is currently managing 18
schemes. The Company posted a profit after tax of Rs. 2185 crore, is currently
managing 18 schemes. The Company posted a profit after tax of Rs. 4 crore in
2005-06, with a proposed dividend of 30%.
Can Bank Factors Limited, the factoring subsidiary of the Bank, posted a total
turnover of Rs.33396 crore as at March 2006 and a profit after tax of Rs. 14
crore. The Company proposed a dividend of 15% for the year.
Gilt Securities Trading Corporation Limited (GSTCL), a primary dealer
promoted by Canara Bank, posted a profit of Rs.10.60 crore despite rise in
yield rates and provision for depreciation on stock of securities held. Primary
dealer functions of GSTCL have been taken over by Canara Bank from
February 2006, with diversification of activities into the areas of equity broking
and trading.
Canbank Financial Services Limited (CANFINA)confined its activities to
legal matters arising out of past transactions in securities, besides concentrating
on collection of lease rentals and realization of investments. The Company
recorded a profit after tax of Rs. 24.23 crore.
Indo-Hong Kong International Finance Limited, a wholly owned overseas
subsidiary of the Bank, posted a net of US$ 3.52 million for the year ended
March 2007. IHIFL has since been converted into a full fledged branch of the
Bank during March 2007.

31
GOALS FOR 2007-08

Bank targets a global business level of Rs 2,90,000 crore for 2006-07, with a
growth rate of over 20%, comprising Rs. 1,70,000 crore under deposits and Rs.
1,20,000 crore under advances. Advances growth will be significantly driven by
agriculture, SME infrastructure and other productive segments, including
services sector.
Towards faster implementation of Core Banking Solution (CBS) , the Bank
targets to cover all the branches under CBS by March 2008.
The Bank has taken up a major brand building exercise and comprehensive
review of its business strategies covering products, processes, people and its
organization structure.
In pursuit of the Bank’s global aspirations, 21 prominent canters have been
identified by the Bank for expanding its global reach. With the preliminary
moves underway, the Bank’s Representative Office at Shanghai is being
converted into a full fledged branch.
After creation of JVs in insurance and Asset Management, the Bank is
exploring similar options in other financial services.
The Bank is geared up to comply with the revised guidelines issued under
priority sector lending.
Under HR, Assessment Development Centre concept will be implemented to
map training competence and upgrade manpower skill. Plans are underway to
introduce ‘internship’ programme to assist students pursuing professional
course.

32
Performance Highlights at a Glance
Rs.in crores
2003-04 2004-05 2005-06

Number of Branches 2468 2513 2532


Capital 410 410 410
Reserves 4842 5699 6722
Aggregate Business 134784 157329 196229
Deposits 86345 96908 116803
Advances (net) 48439 60421 79426
Advances to priority sectors 19581 24777 30937
Agriculture 6545 8782 12032
Small scale industries 4971 5779 7211
Advances to SC /ST 758 1043 1332
Export credit 5497 6183 7136
Foreign Business Turnover 67347 84517 98665
Deposit Accounts (in million) 22.48 23.06 24.17
Borrowal Accounts (in million) 2.88 3.22 3.52
Total Number of Staff 47613 47389 46893
Total Income 9080 9116 10089
Total Expenditure 6221 6531 7477
Operating Profit 2859 2585 2612
Net profit 1339 1110 1343

33
Chart II. 1
CANARA BANK CIRCLE OFFICES
JURISDICTION

Karnataka
Bangalore

Chandigarh HimachalPradesh,Punjab,
Chandigarh,Jammu&Kashmir

Chennai Tamil Nadu, Pondicheri,


Andaman & Nicobar Islands

MadhyaPradesh,Rajasthan,
Delhi Delhi
& Haryana
Andra Pradesh
Hyderabad

Orissa,Assam,Sikkim,Tripur
Kolkata a,
West Bangal and Megalaya
Uttar Pradesh and
Lucknow Uttaranchal

Tamil Nadu
Madurai

Karnataka,Goa
Mangalore

Maharashtra
Mumbai (C)

Patna Bhiar & Jharkhand

Kerala
Thiruvanadapuram

34
CHAPTER III
FINANCIAL ANALYSIS - A
GENERAL VIEW

• Financial Statements
• Types of Financial Analysis
• Techniques of Financial Analysis

35
CHAPTER III
FINANCIAL ANALYSIS – A GENERAL VIEW

III.1 Financial Analysis and Interpretation


Financial analysis is a process of evaluating the relationship between
component parts of a financial statement to obtain a better understanding of a
firm’s position and performance. It is the process of determining the financial
strength and weakness of the firm by establishing strategic relationship between
the items of Balance sheet, Profit and Loss Account and other operative data.
The purpose of financial analysis is to diagnose the information contained in
financial statements so as to judge the profitability and the financial soundness
of the firm. It involves the division of facts on the basis of some definite plans,
classifying them on the basis of certain understandable form. Financial
Statement Analysis is largely a study of relationship among the various
financial factors in the business as disclosed by a single set of statements, and
study of the trends of these factors as shown in a series of statements.
“Financial statement analysis is largely a study of relationship among the
various financial factors in a business as disclosed by a single set of statements,
and a study of the trend of these factors as shown in a series of statements.”
The term ‘financial statement analysis’ includes both ‘analysis’ and
‘interpretation’. While the term ‘analysis’ is used to mean the simplification of
financial data by methodical classification of the data given in the financial
statements, ‘interpretation’ means explaining the meaning and significance of
the data so simplified. However both ‘analysis and interpretation are interlinked
and complimentary to each other. Analysis is useless without interpretation and
interpretation without analysis is difficult or even impossible. Financial
statement analysis can be undertaken by management of the firm, or by parties
outside the firm via; owners, creditors, investors, bankers, government etc.

36
III.2 FINANCIAL STATEMENTS
A financial statement is a collection of data organized according to logical
consistent accounting procedures. Its purpose is to convey an understanding of
some financial aspects of a business firm. These statements are the outcome of
summarizing process of accounting and are therefore the sources of information
on the basis of which conclusions are drown about the profitability and the
financial position of a concern. The analysis and interpretation of financial
statement depend upon the nature and type of information available in these
statements.
Financial statements primarily comprise two basic statements;
1. Position statement or Balance Sheet
2. Income Statement or Profit and Loss Account
III.2.1 Balance sheet
Balance sheet is one of the important statements depicting the financial
strength of the concern. It represents all the assets owned by the concern and all
the liabilities and claims it owes to owners and outsiders. It shows on one hand
the properties that it utilizes and on the other hand the sources of these
properties. The Balance sheet is prepared on a particular date
III.2.2 Income statement or Profit and Loss Account
Income statement is prepared to determine the operational position of the
concern. It is a statement of revenues earned and the expense incurred for
earning that revenue. If there is excess of over expenditure it will show a profit
and if the expenditure is more than income then there will be loss. The income
statement is prepared for a particular period, generally a year.

III.3 TYPES OF FINANCIAL ANALYSIS


The main objective of financial analysis is to determine the financial health of a
business enterprise. The analysis may be of the following types;

37
III.3.1 External Analysis
This analysis is performed by outsiders such as trade creditors, investors,
suppliers of long term debt etc
.
III.3.2 Internal Analysis
This analysis is performed by the corporate finance and accounting
department and is more detailed than external analysis.

III.3.3 Horizontal Analysis


This analysis compares the financial statements via; Profit and Loss Accounts
and Balance Sheet of previous year along with the current year.

III.3.4 Vertical Analysis


This analysis converts each element of the information into a percentage or the
total amount of statements as to establish relationship with other components of
the same statement.

III.3.5 Trend Analysis


This analysis compares ratios of different components of the financial
statements related to different period to those of a base year.

III.3.6 Ratio Analysis


This analysis establishes the numerical or quantitative relationship between
two items / variables of financial statement so that the strengths and weaknesses
of a firm as well as its historical performance and current financial position can
be determined.

III.4 PROCEDURE OF FINANCIAL STATEMENT ANALYSIS


Broadly speaking, there are three steps involved in the analysis of financial
statements. These are;

38
1. Selection
2. Classification and
3. Interpretation

The first step involves selection of information relevant to the purpose of


analysis of financial statements. The second step involved in the methodological
of data and third step include drawing of inferences and conclusions. The
following procedure is adopted for the analysis and interpretation of financial
statements.
1. The analyst should acquaint himself with the principles and postulates of
accounting. He should know the plans and policies of management so that he
may be able to find out whether these plans are properly executed or not.
2. The extent of analysis should be determined so that the sphere of work may
be decided.
3. The financial data given in the statement should be re-arranged and re-
organized. It will involve grouping of similar data under same heads and
breaking down of individual components of statements according to nature. The
data is reduced to a standard form.
4. A relationship is established among financial statements with the help of
tools and techniques of analysis such as ratios, trends etc.
5. The information is interpreted in a simple and understandable way. The
significance and utility of financial data is explained or helping decision
making.
6. The conclusions drawn from interpretation are presented to the management
in the form of reports.

III.5 TECHNIQUES OF FINANCIAL ANALYSIS


The analysis and interpretation of financial statements is used to determine the
financial position and results of operations as well. A number of methods or
devices are used to study the relationship between different statements. The
important technique that is being used for the financial performance analysis of

39
the bank is the ratio analysis. Ratio analysis is a very powerful tool useful for
measuring performance of an organization. Ratio analysis is a process of
comparison of one figure against another, which make a ratio, and the appraisal
of the ratios make proper analysis about the strengths and weaknesses of the
bank’s operations. A ratio is a mathematical relationship between two or more
related items taken from the financial statements. Thus ratio analysis
concentrates on the inter-relationship among the figures appearing in the
financial statements. The main ratios being calculated for the analysis of
financial performance of Canara bank are the following:
• Profitability Ratios
• Cost and Yield Ratios
Operational Efficiency Ratios.
III.5.1 PROFITABILITY RATIOS
While profit represents an absolute figure, profitability, measured by a ratio,
represents the operational efficiency. As opposed to absolute profit volumes,
profitability is a more meaningful yardstick of operational efficiency as it is
size-neutral. Profitability ratios, in contrast to absolute profit levels, obviate
difference in balance sheet size and places operational entities on a common
footing. More often, it is such ratios, which are prudent measures of profitability
and efficiency. More so, being a listed company, performance of the Bank is
closely followed by the market and financial analysts, each quarter.The
important profitability ratios are;
III5.1.1 Return on Assets
For banks, is refers to net income divided by average total assets. It is an
analytical measure of asset – use efficiency and industry comparison. For
industrial companies, it net income divided by average total assets on a per
common share basis, used in industry analysis and as a measure of asset – use
efficiency. For insurance companies, it is net operating income divided by the
mean / average assets. This ratio is calculated by the following formula;
Return on assets = Profit earned
Total assets

40
III.5.1.2 Book Value
Book value of a stock is determined from a company’s records, by adding all
assets then deducting all debts and other liabilities, plus the liquidation price of
any preferred issues. The sum arrived at is divided by the number of common
shares outstanding and the result is book value per common share. Book value
of the assets of a company or a security may have little relationship to market
value.
This ratio is calculated by the following formula;

Book value = tangible net worth of bank


No of shares

III.5.1.3 Earning per Share


The term earning per share (EPS) represents the portion of a company’s
earnings, net of taxes and preferred stock dividends that is allocated to each
share of common stock. The figure can be calculated simply by dividing net
income earned in a given reporting period (usually quarterly or annually) by the
total number of shares outstanding during the term. Because the number of
shares outstanding can fluctuate, a weighted average is typically used. This ratio
is calculated by the following formula;

EPS = net profit after taxes


No of shares

III.5.1.4 Return on Networth


It’s also known as return on equity. Ratio of net profit to average networth
(share capital, plus reserves minus intangible assets) represents the return on
networth.

Net profit
Return on Networth =
Average Networth
41
III.5.2 COST AND YIELD RATIOS
Cost of funds is a function of demand, liquidity, inflation, and bank specific
factors, such as, the operational and opportunity cost. Deposits constitute nearly
90% of banks’ funds. Composition of deposits and movement in interest rates
thus affect bank’s cost of funds. Forces of disintermediation, government
borrowings, interest rate movements and buoyancy in capital market are some
of the factors that affect the cost of bank deposits after a progressive decline,
interest rate cycle has revived since last part of 2004-05, resulting in an uptrend
in interest rates and consequently, in cost of funds. Volatile call money market,
high cost of bulk deposits and active refinance market (housing and export
refinance) do find a reflection in the liquidity crunch in the economy.
In tune with the RBI guidelines, banks have been arriving at their Benchmark
Prime Lending Rates (BPLR), considering the actual cost of funds operating
expenses minimum margin to cover regulatory provisioning and profit margin.
In recent years, it is observed in India that commercial banks’ lending rates are
relatively flexible downward while there is considerable rigidity in the upward
movements. Since 1995, there had been continues decline in interest rates.
III.5.2.1 Yield on Investment
The rate of income generated from a stock in the form of dividends, or the
effective rate of interest paid on a bond, calculated by the coupon rate divided
by the bond’s market price. Furthermore, for any investment, yield is the annual
rate of return expressed as a percentage. This ratio is calculated by the following
formula
Yield on investment = income earned on investment
Average investment

III.5.2.2Yield on Advances
Interest income non advances divided by average advances indicates average
yield on advances. This ratio enables cost-benefit assessment from various
advances related products. Progressive banking entities make extensive use of

42
yield on even segment-wise advances (e.g. retail priority consumer loan etc ;) to
re align the composition of advances portfolio. This ratio is calculated by the
following formula;
Yield on advances = Interest Earned on advances
Average Advances

III.5.2.3 Cost of Deposits


Cost of deposits is the cost generated from liabilities such as debt outstanding,
capital costs and other short term liabilities. This ratio is calculated by the
following formula;
Cost of deposits = Actual interest paid to customers
Average deposits

III.5.3 OPERATIONAL EFFICIENCY RATIOS


These ratios are calculated to analyze the operational efficiency of the Bank.
The ratios being calculated are:-
III.5.3.1 Cost Income (Efficiency) Ratio
Non-interest expenditure divided by net total income (total income minus
interest expenses). It signifies movement in operating cost relative to income. Global
benchmark is 40 percent.

Cost-Income Ratio = Operating Expenditure


Net total Income

III.5.3.2 Burden Ratio


Burden Ratio is the ratio of non-interest income to non-interest
expenditure. As an efficiency criterion, non-interest income should be able to
cover the non-interest expenditure. This ratio is calculated by the following
formula;

Non-Interest Income
Burden Ratio =
Non-Interest Expenditure

43
CHAPTER IV

FINANCIAL ANALYSIS AND


INTERPRETATION OF FINANCIAL
STATEMENTS OF CANARA BANK

• Profitability Ratios
• Cost and Yield Ratios
• Operational Efficiency Ratios

44
CHAPTER IV
ANALYSIS AND INTERPRETATION OF FINANCIAL
STATEMENTS OF CANARA BANK

IV.1 RATIO ANALYSIS


Ratio analysis is one of the most powerful tools of financial analysis. It is
the process of establishing and interpreting quantitative relationship between
figures and group of figures. “A ratio is an expression of quantitative
relationship between two numbers”. The main ratios being calculated for the
analysis of financial performance of Canara Bank are the following;
• Profitability Ratios
• Cost and Yield Ratios
• Operational Efficiency Ratios
IV.1 PROFITABILITY RATIOS
While profit represents an absolute figure, profitability, measured by a
ratio, represents the operational efficiency. As opposed to absolute profit
volumes, profitability is a more meaningful yardstick of operational efficiency
as it is size-neutral. Profitability ratios, in contrast to absolute profit levels,
obviate difference in balance sheet size and places operational entities on a
common footing. More often, it is such ratios, which are prudent measures of
profitability and efficiency. More so, being a listed company, performance of
the Bank is closely followed by the market and financial analysts, each quarter.
The important profitability ratios
calculated for the analysis are;
IV.1.1 Return on assets
IV.1.2 Book value
IV.1.3 Earning per share
IV.1.4 Return on Networth

45
IV.1.1 Return on assets
This refers to net income divided by average total assets. It is an
analytical measure of asset use efficiency and industry comparison. The overall
effectiveness of management in generating profit with its available assets can be
measured through return on assets ratio. The international benchmark is deemed
as 1%.
Profit earned
Return on assets =
Total assets

Table IV.1.1 Return on assets


Year Net profit Total Assets Ratios (%)
2003 10188919 820549306 1.24
2004 13380056 995393925 1.34
2005 11095045 1103051133 1.01
2006 13432200 1328218587 1.01
2007 14208100 1659610427 0.856
Source: Financial Statement
Graph IV.1.1 Return on assets

1.6

1.4 1.34
1.24
1.2

1
An analysis of return on assets ratio of the bank for five years reveals
that for the first four years it has covered the global benchmark of 1%. But on
Ratio

the fifth year return on asset ratio has come down. So the bank must take
0.8
immediate measures to overcome the situation.
IV.1.2 Book value

0.6 46
Book value of a stock is determined from companies’ records, by
adding all assets then deducting all debts and other liabilities.

Tangible net worth of bank


Book value = No of shares

Table IV.1.2 Book value


Year Net Worth No. of Shares Ratios (%)
2003 4148283 410000 101.19
2004 52516430 410000 128.09
2005 61089572 410000 149.00
2006 71322358 410000 173.96
2007 103539861 410000 252.54
Source: Financial Statement

Graph IV.1. 2 Book value

300

250

200

It is clear from the table VI.1.2 that book value shows an increasing trend
RATIO

for all the years which are encouraging signs for the bank.
150
IV.1. 3 Earning per share
128.09

101.19
100
47
The term earning pr share represents the portion of a company’s
earnings, net of taxes and preferred stock dividends that is allocated to each
share of common stock.
EPS = net profit after taxes
No of shares
Table IV.1.3 EPS
Net profit No. of Shares Ratios(%)
Year

2003 10188919 410000 24.85


2004 13380056 410000 32.63
2005 11095045 410000 27.06
2006 13432200 410000 32.76
2007 14208100 410000 34.65
Source: Financial Statement

Graph IV.1.3 EPS

40

35 32.63

30
The table IV.1.3 EPS shows an increasing trend for all the four years
24.85
except for 2004-2005.it is clear from the table that net profit for 2004-2005 was
25
less than that of the previous years which resulted in a decline in EPS for that
RATIO

year. In all other years EPS was favourable.

20
IV.1. 4 Return on Networth
It’s also known as return on equity. Ratio of net profit to average
networth (share capital, plus reserves minus intangible assets).
15
48

10
Net profit
Return on Networth =
Average Networth

Table IV.1.4 Return on networth


Year Net Profit Ratio%
Avg. Networth

2003 10188919
2004 13380056 47002356 28.47
2005 11095045 56803001 19.53
2006 13432200 66205965 20.29
2007 14208100 87431109 16.25
Source: Financial Statement

Graph IV.1.4 Return on networth

30 28.47

25

19.53
20
The table IV.1.4 shows that Return on Networth on 2003-04 is 28.47.
But it came down on 2004-05 which again rose on 2005-06 and further
RATIO

decreased to 16.25 on 2006-07. It is also clear that increase in Net profit for all
15
the years is not in par with increase in Networth.

IV.2 COST AND YIELD RATIOS


10is a function of demand, liquidity, inflation, and bank
Cost of funds
specific factors, such as, the operational and opportunity cost. Deposits
constitute nearly 90% of banks’ funds. Composition of deposits and movement

5 49
in interest rates thus affect bank’s cost of funds. Forces of disintermediation,
government borrowings, interest rate movements and buoyancy in capital
market are some of the factors that affect the cost of bank deposits after a
progressive decline, interest rate cycle has revived since last part of 2004-05,
resulting in an uptrend in interest rates and consequently, in cost of funds.
In tune with the RBI guidelines, banks have been arriving at their
Benchmark Prime Lending Rates (BPLR), considering the actual cost of funds
operating expenses minimum margin to cover regulatory provisioning and profit
margin. In recent years, it is observed in India that commercial banks’ lending
rates are relatively flexible downward while there is considerable rigidity in the
upward movements.
IV.2.1 Yield on advances
IV.2.2 Yield on investments
IV.2.3 Cost of deposits

IV.2.1 YIELD ON ADVANCES

This ratio is concerned with the determination of interest earned on


advances.
Yield on advances = Interest Earned on advances
Average Advances

Table IV.2.1
Interest Average
Ratios (%)
Year income on Advances
advances
2003 35909721
2004 38177163 440551130 8.67
2005 42726356 540300158 7.91
2006 54884896 699235518 7.85 50
2007 75075878 889656934 8.44
Source: Financial Statement

Graph IV.2.1 Yield on advances

8.8
8.67

8.6

8.4

8.2
It is evident from the table IV.2.1 that yield on advances 2003-04 and 2006 – 07
RATIO

shows an increasing trend compared to 2004 – 2005 and 2005 – 2006. Therefore
the bank should focus on improving the high yield advances.

8
7.
IV.2. 2 YIELD ON INVESTMENT

7.8
This ratio is calculated in order to determine the interest earned from the
investment made by the bank.
Yield on investment = income earned on investment
7.6
51
Average investment
Table IV.2.2 Yield on investment
Int. income on invest+ Avg.
Ratios (%)
Dividend income Investment
Year

2003 27396874
2004 30400776 331256167 9.18
2005 31417523 369234365 8.51
2006 29160874 375140333 7.77
2007 33846185 410998607 8.24
Source: Financial Statement
Graph IV.2.2 Yield on investment

9.5

9.18

8.51
Yield on investment indicates the income (interest and dividend) earned
8.5
by the bank through its various investments. Table IV.2.2 shows that yield on
RATIO

investment featured a decreasing trend for the years 2004 – 05 and 2005 – 06
compared to 2003 – 04 and 2006 – 07. The management should take the effort
to invest the funds in high income generating assets.
8
IV.2. 3. COST OF DEPOSITS

It is the interest paid to the customers for the deposits they are having
with the bank

7.5
Cost of deposits = Actual interest paid to customers
Average deposits

52

7
Table IV.2.3 Cost of deposits
Interest Average
Year expenditure Deposits Ratios (%)
on Deposits
2003 42249439
2004 41219037 792196895 5.20
2005 42148516 915702375 4.60
2006 48246267 1067995752 4.52
2007 68880677 1295923419 5.32

Source: Financial Statement

Graph IV.2.3 Cost of deposits

5.4

5.2
5.2

4.8
RATIO

4.6
53
4.6
Table IV.2.3 shows that cost of deposits on 2003 – 04 was 5.2% which
declined on 2004 – 05 and 2005 – 2006 but it increased to 5.32% on the year
2006 – 07which is a serious problem for the bank. Interest on deposits is the
main expenditure for the bank and it should take all the steps to keep it in
control.

IV. 3 OPERATIONAL EFFICIENCY RATIOS


These ratios are calculated to analyze the operational efficiency of the Bank.
The ratios being calculated are:-

IV. 3 .1. Cost Income (Efficiency) Ratio

Non-interest expenditure divided by net total income (total income minus


interest expenses). It signifies movement in operating cost relative to income.
Global benchmark is 40 percent.

Cost-Income Ratio = Operating Expenditure


Net total Income

Table IV.3.1
Operating Net total
Year Ratio%
Efficiency Income
2003 17477057 37450814 46.67
2004 18965491 47552684 39.88
2005 21901678 50061308 43.75
2006 23471354 49590203 47.33
2007 25653054 55386269 46.32
Source: Financial Statement

54
Graph IV.3.1 Cost Income Ratio

48
46.67

46

44

It is evident from the table IV.3.1 that a bank is not able to reach global
Ratio

benchmark of 40% in all the years except on 2003 – 04 (39.88%). So the bank
42
should take all the necessary measures to reduce the operating expenses.

IV.3.2. Burden Ratio


Burden Ratio is the ratio of non-interest income to non-interest
39.88
40
expenditure. As an efficiency criterion, non-interest income able to cover the
non-interest expenditure.

38 Non-Interest Income
Burden Ratio =
Non-Interest Expenditure

36
2003 2004

55
Table IV.3.2
Non-interest Non-interest
Year Ratio%
Income Expenditure
2003 14779657 17477057 84.57
2004 20729132 18965491 109.30
2005 15438273 21089716 73.20
2006 13775149 23471354 58.69
2007 15118012 25653054 58.93
Source: Financial Statement

Graph IV.3.2

120
109.3

100

84.57
80
Ratio

60

40
56
It is clear from the table IV.3.2 that burden ratio was the highest on 2003
– 04 as on that year only non-interest income is able to cover non-interest
expenditure. In all the other four years non-interest income is not able to cover
non-interest expenditure. The bank should take all the steps to reduce the
burden ratio by reducing operating expenses and / or increasing the non-interest
income.

57
Balancesheet of Canara Bank for five years
(Rs. ’000)
PARTICULARS 2003 2004 2005 2006 2007
CAPITAL AND
LIABILTIES
Capital 4100000 4100000 4100000 4100000 4100000
Reserves and surplus 37388283 48416430 56989572 67222358 99439861
Deposits 116803231 1423814519
720948225 863445565 967959186
9
Borrowings 938223 7548970 1141642 258240 15743517
Other liabilities and 116512530
57174575 71882958 72861333 88605670
Provisions
Total 132821858 1659610427
820549306 995393923 1103051733
7
ASSETS
Cash & balance with 90951915
56075112 68909376 49843832 79139957
RBI
Balance with bank & 72787421
20896392 51360751 36843491 49095590
money at short notice
Investments 304582440 357929894 380538836 369741830 452255384
Advances 404715983 476386278 604214039 794256998 985056870
Fixed assets 6596163 6801955 6728143 6884717 28613535
Other assets 27683216 34005669 24883392 29099495 29945302
Total 132821858 1659610427
820549306 995393923 1103051733
7
Contingent liabilities 511761439 524402495 576070268 549007090 616111376
Bills for collection 33169315 37057986 39579579 44225832 62000207

58
Profit and loss accounts of Canara Bank for five years
(Rs. ’000)
PARTICULARS 2003 2004 2005 2006 2007
INCOME
Interest earned 66918885 70069207 75719688 87115123 113645562
Other income 14779657 20729132 15438273 13155691 14509497
TOTAL 81698542 90798339 91157961 100270814 128155059
EXPENDITURE
Interest expended 44247728 43245655 44214993 51300069 73377305
Operating expenses 17477057 18965491 21089716 23471354 25653054
Provisions and
9784838 15207137 14758207 12067154 14916600
contingencies
TOTAL 71509623 77418283 800062945 86838614 113946959
NET PROFIT FOR
10188919 133800536 11095045 13432200 14208100
THE YEAR
Appropriations
Transfers to
Statutory reserve 2550000 3350000 2800000 3400000 3600000
Capital reserve 2503 1003535 2027031 10300 22090
Investment fluctuation
2990000 5100000 2300000 -12081482
reserves
Revenue reserves 3032041 1613916 1406552 19017382 7228210
Interim dividend 0000000 1025000 1025000
Proposed dividend 1435000 1025000 1230000 276000 2870000
Dividend tax 179375 262605 306462 380000 487800
TOTAL 10188919 13380056 11095045 13432200 14208100
Earnings Per Share 20.56 32.63 27.06 32.76 34.65

59
CHAPTER V

SUMMARY OF FINDINGS AND


RECOMMENDATIONS

• Findings
• Suggestions

60
CHAPTER 5

SUMMARY OF FINDINGS AND RECOMMENDATIONS

V.1 STATEMENT OF THE PROBLEM


A form communicates financial information of the users though financial
statement. The information contained in three statements is used by
managements, investors and others to form judgments about the financial
position of the form and its operational efficiency. User of financial statements
can get better insight about financial strength and weaker of the firm provided
they are properly analyses the information contained in these statement. So it is
relevant and useful to make the analysis of financial performance of Canara
Bank. The problem is staked is “An Analysis of Financial Performance of
Canara Bank”

V.2 OBJECTIVES
The important objective of the study is:-
1. To analyze and interpret the financial performance of the Bank.
2. To asses the operational efficiency of the bank
3. To determine its cost of deposits and yield investment
4. To analyze the profitability of the bank
5. To suggest suitable remedial measures for better functioning of the bank

V.3 FINDINGS
The study covers an analysis of the financial performance of Canara Bank for a
period of five years from 2003 – 2004 to 2006- 2007. Ratios are worked out for
analysis from the published financial statements. The various findings and
conclusions of the study are stated in the relevant chapter itself. However it is
considered suitable to provide a summary of those findings and conclusions.

61
 The return on assets indicates the efficiency of assets’ use. The
international benchmark is deemed as 1%. However, for the first four
years return on assets has covered the global benchmark of 1%. But in
the fifth year it has come down, which is not a good sign for the bank.
 Return on networth shows a mixed trend. It ranges from 16.25% to
28.47%.
 Book value for all the years shows an increasing which is an encouraging
sign for the bank.
 Earning per share (EPS) indicate the ability of the bank to access the
capital market and the appetite of the bank’s scrip in the market. The
EPS of the bank shows an increasing trend for all the years except on
2004-05. such a decrease in EPS is due t the decrease in net profit in the
year.
 Yield on advances varies from 7.91% to 8.67%. The main reason for this
trend is due to the continuous variation in the interest rate.
 Yield on investment shows a mixed trend. It was low during the year
2006 ie; 7.77% and high during the year 2004 i.e.; 9.18%.
 Cost of deposits declines to 4.60% in 2005 from 5.20% in 2004. It again
declines to 4.52% in 2006 and in the year 2007 it rises to 5.32%.
 The global benchmark of cost – income ratio is 40%. However the bank
is not able to reach the global benchmark except on 2003 – 04.
 Burden ratio is highest in the year 2003 -04 and only on that year the
non- interest income is able to cover the non – interest expenditure.

62
V.4 RECOMMENDATION

From the above study it is clear that Canara bank has to make improvements in
certain areas. It has to take action to improve its performance. Following are the
recommendations to improve its performance.
 The international benchmark for return on assets is deemed as 1%
whereas it is not able to reach the international benchmark for the last
year 2007. Efforts must be taken to reach the international benchmark of
1%.
 So as to increase the net profit operating expenses must be in control.
 The bank should encourage the lending of high yield advances such as
retail, personal loans etc;
 The bank should focus on investing its funds in high income generating
assets.
 Cost of funds is a function of demand, liquidity, inflation and bank’s
specific factors such as operational and opportunity cost. Most of the
factors are out of control of the bank. But it should be careful about the
bank’s specific factors.
 The bank should take all the measures to minimize burden by reducing
operating expense and / or increasing the non – interest income.

63
CONCLUSION

The success of any organization depends on team work, quality of their


products, reasonable rate, and efficient services. Canara bank is a long –
standing profit making bank. It is one of the leading institutions in the banking
activity. The bank is managed by a group of professionals, and administrators. It
has developed an elaborate appraisal system where by they ensure that the funds
are utilized for productive purpose. In order to maintain the growth, the bank
should follow the norms laid down by the RBI and render quality and timing
service to the customers. The project entitled “An analysis of financial
performance of Canara bank” is an attempt to study the financial performance
of the bank for five years from 2003 to 2007. In the case of banks cost of funds
is a function of demand, liquidity, inflation and bank’s specific factors such as
operational and opportunity cost. Most of the factors are out of control of the
bank. But it should be careful about the bank’s specific factors. The bank should
also focus on improving the high yielding advances. In the coming years , the
bank expects growth in its business activities and operations.

64
BIBLIOGRAPHY

1. P.K Ghosh and G.S Gupta fundamentals of management accounting:


New Delhi. National Publishing House, 1979
2. C.R Kothari Research Methodology: Methods and techniques, New
Delhi: Wiley Eastern Ltd, 1990.
3. S.N Maheswari Management Accounting and financial control New
Delhi: Sultan Chand and Sons, 1987
4. S.N Maheswari Financial Management: New Delhi: Sultan Chand and
Sons, 2000
5. Gautam Banerjee “Financial analysis for decision making: vol 11
No.11
June 1988.
6. Om Pariahs “Ratio analysis for management in new perspective”
Vol.111 no.11 June 1989
7. I.M Pandey “Financial Management” Bombay: Vikas Publishing House
(p); 2000

Other Sources
Profitability... a practitioner’s handbook issued by Planning and
Development Wing of Canara bank.
Performance Highlights 2006 – 07 issued by Canara bank.

Websites
 www.canarabank.com
 www.google.com
 www.moneycontrol.com

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66