A Study on Comparative and Common Size Statement, Trend Analysis

A STUDY ON COMPARATIVE AND COMMON SIZE STATEMENT, TREND ANALYSIS IN IDBI BANK

AT MADURAI, TAMIL NADU

A SUMMER PROJECT REPORT

Submitted to the

SCHOOL OF MANAGEMENT

In partial fulfilment of the requirements

For the award of the Degree

Of

MASTER OF BUSINESS ADMINISTRATION

By

SHAHEEN SIKKANDAR 3510910722

Under The guidance of

MS. R. POONGUZHALI , MBA

[Asst. Prof. SRM School of management]

SRM SCHOOL OF MANAGEMENT

SRM UNIVERSITY

KATTANKULATHUR CAMPUS

2010-2011 CERTIFICATE1

BONAFIDE CERTIFICATE

This is to certify that this report entitled “A STUDY ON COMPARATIVE AND

COMMON SIZE STATEMENT , TREND ANALYSIS” IDBI BANK, is a bonafide

work done and submitted by SHAHEEN SIKKANDAR Registration # 3510910722, in

partial fulfilment of the requirement for summer training for MASTER OF BUSINESS

ADMINISTRATION, SRM UNIVERSITY, Kattankulathur during the academic year

2010-2011.

Submitted to the SRM UNIVERSITY for the examination held on _____________

Signature of the supervisor Signature

Of the HOD

2

DECLARATION

I, SHAHEEN SIKKANDAR , hereby declare that this Summer Training Report

entitled ““A STUDY ON COMPARATIVE AND COMMON SIZE STATEMENT ,

TREND ANALYSIS” IN IDBI BANK, at Madurai, Tamil Nadu” is to meet partial

fulfilment requirements of awarding a “Master of Business Administration” degree, and

resulted from original training undergone by me during the period of June-July 2010, under

supervision and guidance of

PROF. R. POONGUZHALI Professor, Department of Management Studies, SRM

University, Kattankulathur Campus; and it has not formed basis for award of any

Degree/Fellowship or other similar title to any candidate of any University.

PLACE: Kattankulathur Signature of the Student

DATE:

3

ACKNOWLEDGMENT

I express my deep sense of gratitude to Dr. JAYSHREE SURESH Dean, School of

Management, who gave her kind permission, encouragement and support to do this summer

training.

I would like to mention my whole hearted and sincere thanks to Prof. Dr. R.VELU who

helped me at times by sparing valuable time and offered inspiring guidance constantly, to

complete this project successfully at various stages of my summer training.

I sincerely thank Mr. S. PITCHIAH, Asst. General Manager of IDBI BANK, Madurai,

and Tamil Nadu for having permitted me to carry out this training at their esteemed

organization

I am very grateful and thankful to MR. B.R.SURENDRAN , Bank Officer , “A STUDY

ON COMPARATIVE AND COMMON SIZE STATEMENT , TREND ANALYSIS” IN

IDBI BANK , Madurai, Tamil Nadu, who had provided me great support and assistance with

immense detailed information about this company, in spite his very busy work schedule.

I express my thanks to all other faculty members of MBA department, for their kind co-

operation and suggestions.

No words can express my depth of gratitude to my beloved Parents and siblings for

generating an inspiration during my summer training.

I thank all my friends and well wishers for their encouragement in completing this

summer training assignment

Above all, I thank God for the innumerable and unaccountable blessings he has showered

upon me throughout this endeavor.

place: Kattankulathur

Date: Signature of the Student

4

A STUDY ON COMPARITIVE

AND COMMON SIZE

STATEMENT, TREND ANALYSIS

IN

IDBI BANK

5

TABLE OF CONTENTS

Serial No. Title Page No.

Chapter-1

1.1

1.2

1.3

1.4

1.5

1.6

1.7

INTRODUCTION:-

A BRIEF HISTORY BANKING IN INDIA

3 NATIONALIZATION OF BANKS

CHALLENGES AHEAD

OBJECTIVES OF THE STUDY

SCOPE OF STUDY

LIMITATIONS OF THE STUDY

2

2

3

4

6

6

6

Chapter-2

2.1

2.2

2.3

2.4

2.5

2.6

2.7

2.8

PROFILE OF COMPANY

INTRODUCTION

BIRTH OF THE BANK

IDBI BANK LIMITED

MANAGEMENT TEAM

TECHNOLOGY AND TECH INITIATIVES

STRATEGIC RETAIL INITIATIVES

PRODUCTS OF IDBI BANK

LIST OF COMPETITORS

8

9

9

9

10

10

11

12

Chapter- 3 LITRATURE & REVIEW 13

6

Chapter-4

4.1

4.2

4.3

4.4

4.5

RESEARCH METHODOLOGY

INTRODUCTION


3 RESEARCH DESIGN

METHOD OF DATA COLLECTION

TOOLS USED FOR ANALYSIS

22

22

22

23

23

Chapter-5

5.1

5.2

5.3

5.4

5.5

5.6

5.7

5.8

5.9

ANALYSIS OF DATA

INTRODUCTION

Comparative balance sheet for the year 2007-2008 and

2008-2009

Common size statement for the year 2007-2008 and 2008-

2009

Comparative balance sheet for the year 2008-2009 and

2009-2010

Common size statement for the year 2008-2009 and 2009-

2010

trend analysis for the year 2007-2008 to 2009-2010:

Trend Analysis Of Net Profit

Expected Future Profit For The Year 2011 To 2015.

Charts And Tables

29

31

33

34

36

38

39

41

7

Chapter-6

6.1

6.2

6.3

FINDINGS

SUGGESTIONS

CONCLUSION

47

48

48

APPENDIX – 1

BIBLIOGRAPHY

APPENDIX – 2

BALANCE SHEET

49

51

8

LIST OF TABLES


Chapter-5

5.1

5.2

5.3

5.4

5.5

5.6

5.7

5.8

5.9

ANALYSIS OF DATA

INTRODUCTION

Comparative balance sheet for the year 2007-2008 and 2008-2009

Common size statement for the year 2007-2008 and 2008-2009

Comparative balance sheet for the year 2008-2009 and 2009-2010

Common size statement for the year 2008-2009 and 2009-2010

trend analysis for the year 2007-2008 to 2009-2010:

Trend Analysis Of Net Profit


Tables Showing Bank Advances

29

31

33

34

36

38

39

41

42

9

5.10

5.11

5.12

5.13

Tables Showing Bank Balances And Cash Balances

Tables Showing Bank Deposits

Tables Showing Bank Borrowings

Tables Showing Investments

43

44

45

LIST OF CHARTS


Chapter-5

5.8

5.9

ANALYSIS OF DATA


Chart showing Bank Advances

Chart Showing Bank Balances And Cash Balances

39

41

42

10

5.10

5.11

5.12

5.13

Chart Showing Bank Deposits

Chart Showing Bank Borrowings

Chart Showing Investments

43

44

45

CHAPTER 111

INTRODUCTION

CHAPTER 1

1.1 INTRODUCTION

Bank may be defined as a financial institution which is engaged in the business of keeping

money for savings and checking accounts or for exchange or for issuing loans and credit etc.

A set of services intended for private customers and characterized by a higher quality than the

services offered to retail customers.

Based on the notion of tailor-made services, it aims to offer advice on investment, inheritance

plans and provide active support for general transactions and the resolution of asset-related

problems. The essential function of a bank is to provide services related to the storing of

deposits and the extending of credit.Basic function may include Credit collection, Issuer of

banking notes, Depositor of money and lending loans. Now a days banking is not in its

traditional way , with the advancement of technology its focusing on more comfort of

customer providing services such as:

online banking12

Investment banking

Electronic banking

Internet banking

Pc banking /mobile banking

E-banking

The importance of banking sector is immense in the progress and prosperity of any State or

country.

1.2 A Brief History Banking in India:

Bank Originated in the last decades of the 18th century. The oldest bank in

existence in India is the State Bank of India, a government-owned bank that traces its origins

back to June 1806 and that is the largest commercial bank in the country. Central banking is

the responsibility of the Reserve Bank of India, which in 1935 formally took over these

responsibilities from the then Imperial Bank of India, relegating it to commercial banking

functions. After India's independence in 1947, the Reserve Bank was nationalized and given

broader powers. In 1969 the government nationalized the 14 largest commercial banks; the

government nationalized the six next largest in 1980. Currently, India has 88 scheduled

commercial banks (SCBs) - 27 public sector banks (that is with the Government of India

holding a stake), 31 private banks (these do not have government stake; they may be publicly

listed and traded on stock exchanges) and 38 foreign banks. They have a combined network

of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating

agency, the public sector banks hold over 75 percent of total assets of the banking industry,

with the private and foreign banks holding 18.2% and 6.5% respectively.

1.3 Nationalization of Banks:

By the 1960s, the Indian banking industry has become an important tool to

facilitate the development of the Indian economy. At the same time, it has emerged as a large

13

employer, and a debate has ensued about the possibility to nationalise the banking industry.

Indira Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the

annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on

Bank Nationalisation." The paper was received with positive enthusiasm. Thereafter, her

move was swift and sudden, and the GOI issued an ordinance and nationalised the 14 largest

commercial banks with effect from the midnight of July 19, 1969. Jayaprakash Narayan, a

national leader of India, described the step as a "masterstroke of political sagacity." Within

two weeks of the issue of the ordinance, the Parliament passed the Banking Companies

(Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval on 9

August, 1969.

A second dose of nationalization of 6 more commercial banks followed in 1980. The stated

reason for the nationalization was to give the government more control of credit delivery.

With the second dose of nationalization, the GOI controlled around 91% of the banking

business of India. Later on, in the year 1993, the government merged New Bank of India with

IDBI Bank. It was the only merger between nationalized banks and resulted in the reduction

of the number of nationalised banks from 20 to 19. After this, until the 1990s, the

nationalised banks grew at a pace of around 4%, closer to the average growth rate of the

Indian economy. The nationalized banks were credited by some, including Home minister P.

Chidambaram, to have helped the Indian economy withstand the global financial crisis of

2007- 009

1.4 Challenges Ahead:

(i) Improving Profitability:

The most direct result of the above changes is increasing competition and narrowing of

spreads and its impact on the profitability of banks. The challenge for banks is how to

manage with thinning margins while at the same time working to improve productivity which

remains low in relation to global standards. This is particularly important because with

dilution in banks’equity, analysts and shareholders now closely track their performance.

14

Thus, with falling spreads, rising provision for NPAs and falling interest rates, greater

attention will need to be paid to reducing transaction costs. This will require tremendous

efforts in the area of technology and for banks to build capabilities to handle much bigger

volumes.

(ii) Reinforcing Technology:

Technology has thus become a strategic and integral part of banking, driving banks to acquire

and implement world class systems that enable them to provide products and services in large

volumes at a competitive cost with better risk management practices. The pressure to

undertake extensive computerisation is very real as banks that adopt the latest in technology

have an edge over others. Customers have become very demanding and banks have to deliver

customised products through multiple channels, allowing customers access to the bank round

the clock.

(iii) Risk Management:

The deregulated environment brings in its wake risks along with profitable opportunities, and

technology plays a crucial role in managing these risks. In addition to being exposed to credit

risk, market risk and operational risk, the business of banks would be susceptibleto country

risk, which will be heightened as controls on the movement of capital are eased. In this

context, banks are upgrading their credit assessment and risk management skills and

retraining staff, developing a cadre of specialists and introducing technology driven

management information systems.

(iv) Sharpening Skills:

The far-reaching changes in the banking and financial sector entail a fundamental shift in the

set of skills required in banking. To meet increased competition and manage risks, the

demand for specialised banking functions, using IT as a competitive tool is set to go

up.Special skills in retail banking, treasury, risk management, foreign exchange, development

15

banking, etc., will need to be carefully nurtured and built. Thus, the twin pillars of the

banking sector i.e. human resources and IT will have to be strengthened.

(v) Greater Customer Orientation:

In today’s competitive environment, banks will have to strive to attract and retain customers

by introducing innovative products, enhancing the quality of customer service and marketing

a variety of products through diverse channels targeted at specific customer groups.

(vi) Corporate Governance:

Besides using their strengths and strategic initiatives for creating shareholder value, banks

have to be conscious of their responsibilities towards corporate governance. Following

financial liberalisation, as the ownership of banks gets broadbased, the importance of

institutional and individual shareholders will increase.

In such a scenario, banks will need to put in place a code for corporate governance for

benefiting all stakeholders of a corporate entity.

(vii) International Standards:

I0ntroducing internationally followed best practices and observing universally acceptable

standards and codes is necessary for strengthening the domestic financial architecture. This

includes best practices in the area of corporate governance along with full transparency in

disclosures. In today’s globalised world, focusing on the observance of standards will help

smooth integration with world financial markets.

1.5 OBJECTIVES OF THE STUDY

To analyses of the financial position of the bank during the study.

To evaluate the bank performance during the study.

To evaluate the liquidity and profitability position of the bank.

16

1.6 SCOPE OF THE STUDY

The study is conducted mainly to review the financial position of the bank. The study is

endeared with the management of assets and liabilities. The study will enable the bank and it

helps in achieving the profits that have been planned.

1.7 LIMITATIONS OF THE STUDY

The study is mainly based on the published annual reports (i.e.) Secondary data.

The validity and reliability depends upon the information found in these

records.

The study is based on result of limited period (i.e.) 3 year 2007-2008 to 2009-

2010

The figures taken have only the approximate values. The study is done for the

limited period.

CHAPTER 2

IDBI BANK PROFILE

17

CHAPTER 2

IDBI BANK PROFILE

2.1. INTRODUCTION:

This chapter deals with the study of Bank profile. Growth and future development of

Bank and their product and services.

2.2 BIRTH OF THE BANK:

18

The birth of IDBI bank took place after RBI issued guidelines for entry of new private sector

banks in January 93. Subsequently, IDBI as promoters sought permission to establish a

commercial bank and retained KPMG a management consultant of international repute to

prepare the groundwork for establishing a commercial bank. The Reserve Bank of India

conveyed it's in principle approval to establish idbi bank on February 11th, 1994. Thereafter

the bank was incorporated at Gwalior under Companies Act on 15th of September 1994

(Registration No. 10-08624 of 1994) with its registered office at Indore.

Vision:

“Enabling people to advance with confidence and success”

Mission:

“To make our customer prosper, our staff excels and creates value for

shareholders”

2.3 IDBI Bank Limited:

These financial statements have been prepared in accordance with

approved accounting standards as applicable in India. Approved accounting standards

comprise of such International Financial Reporting Standards issued by the International

Accounting Standards Board as are notified under the Companies Ordinance, 1984,

provisions of and directives issued under the Companies Ordinance, 1984 and Banking

Companies Ordinance, 1962 ). In case the requirements of provisions and directives issued

under the Companies Ordinance, 1984 and Banking Companies Ordinance, 1962 and the

directives issued by SBP differ, the provisions of and directives issued under the Companies

Ordinance, 1984 and Banking Companies Ordinance, 1962 and the directives issued by SBP

shall prevail.

2.4 Management Team - The Core Strength of The Bank:

19

Since August 2000 idbi bank has witnessed a transformation in

the top management structure with top talent from foreign banks and private banks coming

together to create a world-class management team. It is totally a customer-focused

organization. Existing talented people within the bank were re-aligned to a functionally

driven product & sales organizational structure. Also, to align employee interests with

shareholder interest’s founder Stock Options (ESOPs) in October 2000 covering 75 % of the

existing employees of idbi bank were distributed.

2.5 TECHNOLOGY AND TECH INITIATIVES:

Keeping in line with its policy of leveraging technology to drive its business, Idbi bank

deployed Finacle, the e-age banking solution from Infosys to consolidate its position, meet

challenges and quickly seize new business opportunities. Entire Finacle rollout was

remarkable considering the fact that it was implemented across all branches in a record time

frame of 5 months. Finacle will provide the critical technology platform to propel the bank's

new thrust and direction.

Achievement of these significant milestones is consistent with idbi bank's continued focus to

create customer and shareholder value through deployment of superior technology.

Investments in technology is part of the plan to put in place building blocks for creating the

right organisational infrastructure which will help idbi bank in consistently delivering

superior products, convenient access channels and efficient service to our retail and corporate

customers.

2.6 STRATEGIC RETAIL INITIATIVES:

idbi bank in the previous calendar year initiated its formal foray into retail banking. idbi

bank's depository services product E-Sec is a major success story and the bank today is in the

top three league in India in this segment. A spate of retail products were introduced such as

home finance, loans against shares, educational loans, car loans, Sweep in account, SMS

mobile banking etc. on very competitive terms.

20

The bank has recently announced its strategic alliance with TATA AIG General Insurance

Company for selling General Insurance Products through select branches & ATMs of idbi

bank.

The bank announced a landmark strategic alliance to make available widely, both

organisation products through each other’s distribution channels. Now you can buy coveted

savings Products like the National Savings Certificates (NSC) and Kisan Vikas Patra (KVP)

on Internet. It recently had a tie up with Birla group in the name of Birla Sun Life Insurance.

The new products, which are going to be announced shortly, are Credit Cards, Debit Cards

etc. idbi bank is continuously looking for ways to leverage its technical strengths and bring to

the retail customer convenience products at reasonable cost. It has started converting its ATM

card into ATM cum Debit card.

2.7 PRODUCTS OF IDBI BANK:

Products and Services of the IDBI Bank:

Deposits

o Saving Account

o Current Account

o Pension Account

o Sabka Account

o Sample AOF

o Super Shakti Account for Woman

Loans

o Home Loans

21

o Loan against Property

o Education Loan

o Personal Loan

o Holiday Travel Loan

o Reverse Mortgage Loan

Payments

o Tax Payments

o Stamp Duty Payments

o Easy Fill

o Card to Card Money transfer

Investments

o Demat Account

o IPO

Insurance

o Family Care

o Wealth insurance

Cards

o Gold Debit Card

o International Debit cum ATM Card

o World Currency Card

24 hour banking

22

o Phone banking

o SMS banking

o Account Alerts

o Internet banking

Institutional banking

Other Products

o Lockers

o India Post

NRI Services

2.8 List of Competitors:

SBI

PNB

Bank of Baroda

Bank of India

Canara Bank

Union Bank

Indian Bank

ICICI Bank

Oriental Bank

Corporation Ban

The tenth largest development bank in the world has

promoted world-class institutions in India. A few of such institutions built by IDBI are The

National Stock Exchange (NSE), The National Securities Depository Services Ltd. (NSDL),

Stock Holding Corporation of India SHCIL) etc. IDBI is a strategic investor in a plethora of 23

institutions, which have revolutionized the Indian Financial Markets. IDBI promoted idbi

bank to mark the formal foray of the IDBI group into commercial banking. This initiative has

blossomed into a major success story. idbi bank, which began with an equity capital base of

Rs.1000 million (Rs.800 million contributed by IDBI and Rs.200 million by SIDBI),

commenced its first branch at Indore in November 1995. Thereafter in less than seven years

the bank has attained a front ranking position in the Indian Banking Industry.

24

CHAPTER 3

LITEATURE AND REVIEW

25

LITRATURE & REVIEW

3.1 DIRECTORS REPORT:

The Board of Directors of your Bank has the pleasure of presenting it Report on the business

and operations of your Bank for the financia year ended 31st March 2009. Strategic

initiatives implemented during the year, benefited your Ban immensely, reflecting improved

performance in various key busines areas. Your Bank attained new heights with total business

o Rs.2,15,829 crore at end-March 2009, comprising Rs. 1,12,401 crore o deposits and Rs.

1,03,428 crore of advances. Total assets reached Rs 1,72,402 crore, registering a growth of

31.9% during the financia year. Performance highlights of your Bank for the period under

revie are presented in Table 1.

3.2 Profit and Appropriations

During the financial year April 2008-March 2009, gross income of you Bank amounted to

Rs.13,021.6 crore, contributed by interest income of Rs.11,631.7 crore and other income of

Rs.1,389.9 crore. Tota expenditure of your Bank, during the year, excluding provisions and

contingencies, stood at Rs.11,643.7 crore, consisting Rs.1 0,305.8 crore of interest expenses

and Rs.1,337.9 crore of operational expenses. With the provision of Rs.373.3 crore towards

bad & doubtful debts and investments, Rs.19 crore towards incremental prudential provisions

for standard assets, and Rs.127.1 crore towards tax, total provisions during the period

amounted to Rs.51 9.4 crore. Your Banks working during the year resulted in a Profit Before

Tax (PBT)of Rs.985.6 crore. Considering a provision of Rs.127.1 crore towards taxation,

Profit After Tax (PAT) amounted to Rs.858.5 crore. Appropriation of PAT as approved by

the Board of Directors is given in

For each share with face value of Rs.10, Earning Per Share (EPS) during the year stood at

Rs.11.9 and Book Value Per Share stood at Rs.102.3 as at end-March 2009. The Proposed

Directors have the pleasure of recommending dividend at 25% on the fully paid-up equity

capital for the financial year 2008-09.

26

3.3 Capital Adequacy

Capital Adequacy Ratio (CAR) of your Bank is computed in

adherence to norms prescribed by RBI in order to become Basel-ll compliant. The Credit

Risk follows the Standardized Approach, Whereas Market Risk complies with Duration

Method of Standardized Approach and the Operational Risk conforms to Basic Indicator

Approach. Against the stipulated RBI norm of 9%, your Banks CAR as at end-March 2009

worked out to 11.57%. The Tier-I CAR also was at a comfortable level of 6.81%.

3.4 Business Strategy

Your Bank has adopted a stratargy of developing a larger client

base in the mid- corporate, SME and retail sectors, while nurturing the deep relationships that

already exist in the large corporate sector.

The strategy aims to develop a more retail base in both assets and liabilities leading to a

more diversified balance sheet as well as improvement and sustainability in the Net Interest

Income. The strategy also focuses on leveraging the Banks experience in

project/infrastructure financing to become a larger player in investment banking, yielding

higher fee-based income. Your Bank has also adopted aggressive strategics for gaining higher

market share in transaction banking activities for boosting non-fund based income. The

customer-centric business model adopted by your bank would increasingly play a supportive

role towards effective implementation of business strategies.

3.5 New Business Initiatives:

In line with gaining popularity of mobile phones and improvement in their security

features, the banking regulator allowed mobile based transaction. In order to reap the benefits

of the opportunities arising out of the mobile technology revolution your Bank has launched

Mobile Payment Solutions, which is a secure and convenient payment option by use of

mobile phones. The product includes payments for the purchase of goods and services from

27

mobile phone and fund transfers subject to prescribed limits. Your Bank launched IDBI

Sulabh Vyapar Loan that aims to provide hassle free finance to Small Business Enterprises

including Small Retail Traders. An individual or a firm (partnership or proprietorship)

engaged primarily in buying and selling mercantile goods is eligible for this mode of finance.

The scope of the product was further enlarged to cover wider customer segment, such as

travel, tourism, hotels, restaurant, health and education, etc. Your Bank also floated a loan

scheme in the SME domain for Professional and Self Employed engaged in the business

covered under service sector.

The Bank has obtained mandate for collecting sales tax in Maharashtra. With regard to tax

collection your Bank is one among the top banks in the country.

Your Bank has successfully implemented the Agriculture Debt Waiver and Debt Relief

Scheme (ADWDRS)-2008 announced by Central Government. During the financial year

2008-09, the Bank has opened a Currency Chest at Chennai taking the total number to four.

The fifth Currency Chest at Panchkula is expected to become operational by the end of first

quarter of current fiscal. The Bank has also obtained In-Principle approval from the RBI for

establishment of Currency Chests at Hyderabad Ahmedabad and Pune .

In order to improve our performance in strategic lines a Performance Acceleration

Programme (PAP) Project Lakshya was implemented focusing renewed thrust on boosting

current account and fee-based income. The project has made significant contribution and has

imparted lot of dynamism in the operating domain. The project was executed through boot

camps in different centers and periodic reviews through tele- conferencing. The Bank, during

the course of the year, has implemented a series of measures to ensure improved customer

satisfaction and cultivated the motto of Customer first. In this direction, the Bank has

organized Customer Grievance Redressal Wleek during November 17-22,2008 in all its

branches. The unresolved issues were addressed at Customer Care Centre (CCC) for

appropriate action. In order to further strengthen our relationship with customer, your Bank

organized Crahak Sahayata Abhiyan (CSA) at selected cities.

3.6 Organisational Structure:

Your Bank has effectively realigned its policy and procedure in order to derive optimum

benefits from its customer-focused vertical model implemented during the previous financial

28

year. Redeployment of work force was carried out on the basis of skill set mapping and

reorientation in the business model, reflecting priorities with regard to remunerative lines of

business. During the year, your Bank also implemented a new Fund Transfer Pricing (FTP),

based on the market linked bid and offer rates. The new FTP system enables rational and

transparent pricing decisions. It also forms a scientific basis for evaluating the performance of

products/ verticals.

During the period under review your Bank increased its branch network to 509 comprising

179 metropolitan branches, 175 urban branches, 100 semi urban branches and 55 rural

branches.

3.7 Board of Directors:

Banks Board of Directors is broad based and constitution thereof is governed by the

provisions of the Banking Regulation Act, 1949, the Companies Act, 1956, the Articles of

Association of the Bank and satisfies the requirements of corporate governance as envisaged

in the Listing Agreement with the Stock Exchanges. The Board functions through itself as

well as various Board Committees constituted to provide focussed governance in important

functional areas of the Bank. As on March 31, 2009, the Board comprised of 11 Directors

with 3 Executive Directors (including Chairman), 2 Non Executive Directors and 6

Independent Directors. Shri Yogesh Agarwal, Chairman & Managing Director as Executive

Chairman, Shri O. V. Bundellu and Shri Jitender Balakrishnan, Dy. Managing Directors as

Wholetime Directors, Shri Arun Ramanathan and Shri Ajay Shankar, Central Government

officials as Non Executive Directors, Shri Analjit Singh, Smt. Lila Firoz Poonawalla, Shri K.

Narasimha Murthy, Shri H. L. Zutshi, Shri A. Sakthivel and Shri Subhash Tuli as

Independent Directors constitute the Board. No Director on the Board of your Bank is in any

way related to any other Director on the Board of the Bank.

3.8 Apex Committees:

The Board has in total seven committees, namely, Executive Committee, Audit Committee,

Shareholders/ Investors Grievance Committee, Frauds Monitoring Committee, Risk

Management Committee, Customer Service Committee and Information Technology

Committee.

29

3.9 Corporate Governance:

Your Bank is committed to adopting the best practices in the area of corporate governance.

Your Bank believes that proper corporate governance is not just a requirement for regulatory

compliance, but also a facilitator for enhancement of shareholders value. The details of

corporate governance practices followed in your Bank are given in this Annual Report as a

separate section under Management Discussion and Analysis.Disclosure regarding

Remuneration of Employees under Section 217(2A) of the Companies Act, 1956 There were

no personnel in the services of the Bank for the whole year who were in receipt of

remuneration of over Rs.24 lakh per annum. Further, no personnel, who were in the service

of the Bank for part of the year, received remuneration in excess of Rs.2 lakh per month for

the period they were in the service of the Bank.

The provisions of Section 217(1 )(e) of the Act relating to conversion of energy and

technology absorption do not apply to your Bank.

3.10 Directors Responsibility Statement :

The Board of Directors hereby declares and confirms that:

(i) in the preparation of accounts, the applicable accounting standards had been followed

along with proper explanation relating to material departure.

(ii) the Directors had adapted such accounting policies and applied them consistently and

made judgments and estimates that are reasonable and prudent so as to give a true and fair

view of the state of affairs of your Bank at the end of the accounting year and of the profit or

loss of your Bank for that period.

(iii) the Directors had taken proper and sufficient care for the maintenance of adequate

accounting records, in accordance with the regulatory provisions, for safeguarding the assets

of your Bank and for preventing and detecting fraud and other irregularities.

(iv) the Directors had prepared the accounts on a going concern basis

30

3.11 A Study On Various Services Offered By IDBI Bank:

i. Free ATM Card;

ii. Free Debit Card

iii. Free remittance of funds upto an extant of Rs. 25000/- per month at any of our

branches having connectivity under CBS.

iv. One Cheque book of 50 leaves free of cost per quarter to be issued (inclusive of item

no. xii)

v. Free e-mails for statement of account on monthly basis

vi. Same day Credit for outstation cheques drawn on other branches of our Bank under

CBS Connectivity

vii. Free collection of one outstation cheque (issued in favour of customer) per quarter

upto Rs. 10000/-(however, out of pocket expenses shall be recovered)

viii. Immediate credit of outstation cheques upto 15,000/-

ix. 25% concession on Annual Custody Charges for Demat Services

x. 25% concession on service charges for providing EFT Services;

xi. Transaction i.e. T + 3 Days' Credit for outstation cheques drawn on other bank

branches at locations where we have at least one IDBI BANK branch under CBS

connectivity.

xii. If possible, Free Special Cheque Book (under relevant MICR Code) shall also be

issued to customers enabling them to make payment by cheque to outstation parties at

CBS centers.

31

CHAPTER 4


32


4.1. INTRODUCTION :

This chapter deals with the research methodology, research design, and method

of data collection and what are the tools used for this analysis.

4.2 RESEARCH METHODOLOGY

Research methodology in common language is the science of collecting, identifying

and presenting facts in such a way that it leads to unearthing some truths are angles of

reality..

4.3 RESEARCH DESIGN

Descriptive research is used in the study because it will ensure the minimization of

bias and maximization of reliability of data collected. The researcher had to use fact and

information already available through working statements of earlier years and analyze these

to make critical evaluation of the available material. Hence, by making the type of the

research conducted to be both descriptive and analytical in nature.

From the study, the types of data to be collected and the procedure to be used for this

purpose were decided.

33

4.7 METHOD OF DATA COLLECTION

4.7.1 TYPES OF DATA

There are two types of data

1. Primary data - The primary data are those which are collected afresh and for the first

time, and thus happens to be original in character.

2. Secondary data – The secondary data are those which have already been collected

by someone else and which have already been passed through the statistical process.

4.7.2 SOURCES OF DATA

The research is primarily based on secondary data, with addition information gathered

from the finance department. The main sources are the bank’s 3 years annual reports and

schedules.

Financial statements and

Published auditors reports

4.8 TOOLS USED FOR ANALYSIS

The present study has used the following accounting and statistical tools to analyze

the

o Comparative statement

o Common Size Statement

o Trend analysis

34

4.8.1 COMPARATIVE FINANCIAL STATEMENTS

When financial statements figures for two or more years are placed side-side to facilitate

comparison, these are called ‘comparative Financial Statements’. Such statements not only

show the absolute figures of various years but also provide for columns to indicate to increase

or decrease in these figures from one year to another. In addition, these statements may also

show the change from one year to another on percentage form. Such cooperative statements

are of great value in forming the opinion regarding the progress of the enterprise.

1. COMPARATIVE BALANCE SHEET

The Comparative Balance Sheet as on two or more different dates can be prepared to show

the increase or decrease in various assets, liabilities and capital. Such a comparative Balance

Sheet is very useful in studying the trends in a business enterprise.

Comparative balance sheet analysis is the study of the trend of the same items Group of items

and computed items in two or more balance sheet of the same business enterprise on different

dates. The change in periodic balance sheet items reflect the conduct of a business. The

changes can be observed by the comparison of the balance sheet in the beginning and at the

end of the period.

Two columns of the comparative balance sheet are for the data of original balance sheet . the

third column is used to show increase in figures, and a fourth column may be added for

giving percentages of increase or decrease.

2. PURPOSE OR UTILITY OR IMPORTANCE OF COMPARATIVE

STATEMENTS

1. To make the Data simpler and more understandable

2. To indicate the Trend

3. To indicate the strong points weak points of the concern

4. To help in forecasting

35

3. ADVANTAGES OF COMPARATIVE BALANCE SHEET

1. Helpful for comparison.

2. Helpful in knowing changing in the size of items.

3. Helpful in knowing trends.

4. Link between income statement and Balance sheet

4.8.2 COMMON SIZE STATEMENT

Common Size Statement is one of the tools used in connection with analysis and

interpretation of financial statements. This statement indicates relationship of various with

some common item (expressed as percentage of the common items)

In the balance sheet, the total of assets and liabilities is taken as the base and all

other figures are expressed as percentage of this total. The percentage so calculated can be

easily compared with the corresponding in other periods and meaningful conclusions can be

drawn.

When performing a ratio analysis of financial statements, it is often helpful to

adjust the figures to common-size numbers. To do this, change each line item on a statement

to a percentage of the total. For example, on a balance sheet, each figure is shown as a

percentage of total assets, and on an income statement, each item is expressed as a percentage

of sales.

This technique is quite useful when you are comparing your business to other

businesses or to averages from an entire industry, because differences in size are neutralized

by reducing all figures to common-size ratios. Industry statistics are frequently published in

common-size form.

36

When comparing your company with industry figures, make sure that the

financial data for each company reflect comparable price levels, and that it was developed

using comparable accounting methods, classification procedures, and valuation bases.

Such comparisons should be limited to companies engaged in similar business activities.

When the financial policies of two companies differ, these differences should be recognized

in the evaluation of comparative reports. For example, one company leases its properties

while the other purchases such items; one company finances its operations using long-term

borrowing while the other relies primarily on funds supplied by stockholders and by earnings.

Financial statements for two companies under these circumstances are not wholly

comparable.

FEATURES OF COMMON SIZE STATEMENT

1. A common size statement analysis indicates the relation of each component to the

whole.

2. In case of a Common Size Income statement analysis Net Sales is taken as 100% and

in case of Common Size Balance Sheet analysis total funds available/total capital

employed is considered as 100%.

3. It is used for vertical financial analysis and comparison of two business enterprises or

two years financial data.

4. Absolute figures from the financial statement are difficult to compare but when

converted and expressed as percentage of net sales in case of income statement and in

case of Balance Sheet as percentage of total net assets or total funds employed it

becomes more meaningful to relate.

5. A common size analysis is a type of ratio analysis where in case of income statement

sales is the denominator (base) and in case of Balance Sheet funds employed or total

net assets is the denominator (base) and all items are expressed as a relation to it.

Limitations of common size statement:

As with financial statements in general, the interpretation of common size statements is

subject to many of the limitations in the accounting data used to construct them. For example:

37

1. Different accounting policies may be used by different firms or within the same firm

at different points in time. Adjustments should be made for such differences.

2. Different firms may use different accounting calendars, so the accounting periods may

not be directly comparable.

4.8.3 TREND STATEMENT

The comparative and the common size statements suffer from a

major limitation, i.e. absence of a basic standard to indicate whether the proportion of an

item is normal or abnormal .trend analysis overcome this limitation . this method is also

important and useful technique of analyzing financial statement analysis. Trend analysis

calculates the percentage change for one account over a period of time of two years or

more.

Percentage change:

To calculate the percentage change between two periods:

Calculate the amount of the increase/ (decrease) for the period by subtracting the earlier

year from the later year. If the difference is negative, the change is a decrease and if the

difference is positive, it is an increase.

FEATURES OF TREND ANALYSIS

1) In case of a trend analysis all the given years are arranged in an ascending order.

2) The first year is termed as the “Base year” and all figures of the base year are taken as

100%.

3) Item in the subsequent years are compared with that of the base year.

4) If the percentages in the following years is above 100% it indicates an increase over

the base year and if the percentages are below 100% it indicates a decrease over the

base year.

5) A trend analysis gives a better picture of the overall performance of the business.

6) A trend analysis helps in analysing the financial performance over a period of time.

7) A trend analysis indicates in which direction a business is moving i.e. upward or

downwards.

38

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8) A trend analysis facilitates effective comparative study of the financial performance

over a period of time.

9) For trend analysis at least three years financial data is essential. Broader the base the

more reliable is the data and analysis.

CHAPTER 5

INTERPRETATION

39

INTERTPRETATION

ANALYSIS AND INTERPRETATION:

5.1 INTRODUCTION:

This chapter contains analysis and interpretation of the financial years 2008-2010. Comparative statement, common size statement, and trend analysis are the tools used for analysing the balance sheet.

Table 5.1:Comparative balance sheet for the year 2007-2008 and 2008-2009

Particulars 2008 2009 Increase or Increase or

Decrease (amt)

Decrease (%)

LIABILITIES Sourse of fund Equity Share capital 724.76 724.78 0.02 0.002759534Reserves 6075.13 6719.52 644.39 10.61Revaluation Reserve 2022.07 1979.56 -42.51 -2.10Net Worth 8821.96 9423.86 601.9 6.82 Deposits 72997.98 112401.01 39403.03 53.98Borrowings 38612.55 44417.04 5804.49 15.03Total Debts 111610.53 156818.05 45207.52 40.50 Other liabilities 10261.89 6160.41 -4101.48 -39.97 Total Liablities 130694.38 172402.32 41707.94 31.91

40

ASSETS Application of funds Cash & bank balance with RBI 6694.83 8590.82 1895.99 28.32Cash balance with other banks 2063.94 2628.5 564.56 27.35 Advances 82212.69 103428.34 21215.65 25.81Investment 32802.93 50047.6 17244.67 52.57 Gross Block 3894.76 3873.95 -20.81 -0.53(less) accumulated Depreciation 1173.59 1127.4 -46.19 -3.94Net Block 2721.17 2746.55 25.38 0.93 Capital Work in progress 44.8 77.56 32.76 73.13Fixed asset and other assets 4154.02 4882.96 728.94 17.55 total Assets 130694.38 172402.32 41707.94 31.91

Table 5.1 source: Field survey

41

Table 5.2:Common size statement for the year 2007-2008 and 2008-2009

Particulars 2008 % 2009 %

LIABILITIES Sourse of fund Equity Share capital 724.76 0.42 724.78 0.42Reserves 6075.13 3.90 6719.52 3.90Revaluation Reserve 2022.07 1.15 1979.56 1.15Net Worth 8821.96 5.47 9423.86 5.47 Deposits 72997.98 65.20 112401.01 65.20Borrowings 38612.55 25.76 44417.04 25.76Total Debts 111610.53 90.96 156818.05 90.96 Other liablities 10261.89 3.57 6160.41 3.57 Total Liablities 130694.38 100 172402.32 100

ASSETS Application of funds Cash & bank balance with RBI 6694.83 4.98 8590.82 4.98Cash balance with other banks 2063.94 1.52 2628.5 1.52 Advances 82212.69 59.99 103428.34 59.99Investment 32802.93 29.03 50047.6 29.03 Gross Block 3894.76 2.25 3873.95 2.25(less) accumulated Depreciation 1173.59 0.65 1127.4 0.65Net Block 2721.17 1.59 2746.55 1.59

42

Work in progress 44.8 0 -77.56 Fixed asset and other assets 4154.02 2.83 4882.96 2.83 total Assets 130694.38 100 172402.32 100


Interpretation :

o The comparative balance sheet of the company reveals that during 2009 there has

been on increase in final assets and liabilities of Rs. 41707.94 crores i.e. 31.91 %

o The investment of the bank has been increased by . 17244.67 crores that is about

52.57% bank deposits has been increased to 39403.03 crores.. which is about

53.98%.

43

Table 5.3:Comparative balance sheet for the year 2008-2009 and 2009-2010

Particulars 2009 2010 Increase or Increase or Decrease (amt) Decrease (%)

LIABILITIES Sourse of fund Equity Share capital 724.78 724.86 0.08 0.01Reserves 6719.52 9439.98 2720.46 40.49Revaluation Reserve 1979.56 0 -1979.56 -100.00Net Worth 9423.86 10164.84 740.98 7.86 Deposits 112401.01 167667.08 55266.07 49.17Borrowings 44417.04 47709.48 3292.44 7.41Total Debts 156818.05 215376.56 58558.51 37.34 Other liablities 6160.41 8030.62 1870.21 30.36 Total Liablities 172402.32 233572.01 61169.69 35.48

ASSETS Application of funds Cash & bank balance with RBI 8590.82 13903.47 5312.65 61.84Cash balance with other banks 2628.5 679.36 -1949.14 -74.15 Advances 103428.34 138201.85 34773.51 33.62Investment 50047.6 73345.46 23297.86 46.55

44

Gross Block 3873.95 2996.96 -876.99 -22.64(less) accumulated Depreciation 1127.4 0 -1127.4 -100.00Net Block 2746.55 2996.96 250.41 9.12 Capital work in progress 77.56 0 Fixed asset and other assets 4882.96 4444.91 -438.05 -8.97 total Assets 172402.33 233572.01 61169.68 35.48


Table 5.4Common size statement for the year 2008-2009 and 2009-2010

Particulars 2009 % 2010 %

LIABILITIES Sourse of fund Equity Share capital 724.78 0.42 724.86 0.31Reserves 6719.52 3.90 9439.98 4.04Revaluation Reserve 1979.56 1.15 0 0.00Net Worth 9423.86 5.47 10164.84 4.35 Deposits 112401.01 65.20 167667.08 71.78Borrowings 44417.04 25.76 47709.48 20.43Total Debts 156818.05 90.96 215376.56 92.21 Other liablities 6160.41 3.57 8030.62 3.44 Total Liablities 172402.32 100 233572.01 100.00

45

ASSETS Application of funds Cash & bank balance with RBI 8590.82 4.98 13903.47 5.95Cash balance with other banks 2628.5 1.52 679.36 0.29 Advances 103428.34 59.99 138201.85 59.17Investment 50047.6 29.03 73345.46 31.40 Gross Block 3873.95 2.25 2996.96 1.28(less) accumulated Depreciation 1127.4 0.65 0 0.00Net Block 2746.55 1.59 2996.96 1.28 Work in progress -77.56 0 Fixed asset and other assets 4882.96 2.83 4444.91 1.90 total Assets 172402.32 100 233572.01 100.00


Interpretation :

The cash and bank balances of the bank has been increased by 5312.65cr in the year

2009- 2010 which is about 61.84%

The deposits of the bank increases has been by 55266.07 cr which is around 50%

during the year 2009-2010 when compared to the previous year

Trend analysis :

46

The following table shows the trend analysis for the year 2007-2008 to 2009-2010:

(Amt in cores)

Particulars 2008 2009 2010 % % %

LIABILITIES

Sourse of fund Equity Share capital 724.76 724.78 315.3 100.00 100.00 43.50Reserves 6075.13 6719.52 15915.63 100.00 110.61 261.98Revaluation Reserve 2022.07 1979.56 1491.99 100.00 97.90 73.79Net Worth 8821.96 9423.86 17722.92 100.00 106.82 200.90 Deposits 72997.98 112401.01 249329.8 100.00 153.98 341.56Borrowings 38612.55 44417.04 19262.37 100.00 115.03 49.89Total Debts 111610.53 156818.05 268592.17 100.00 140.50 240.65 Other liablities 10261.89 6160.41 10317.69 100.00 60.03 100.54 Total Liablities 130694.38 172402.32 296632.78 100.00 131.91 226.97

ASSETS Application of funds Cash & bank balance with RBI 6694.83 8590.82 18327.58 100.00 128.32 273.76Cash balance with other banks 2063.94 2628.5 5145.99 100.00 127.35 249.33 Advances 82212.69 103428.34 186601.21 100.00 125.81 226.97Investment 32802.93 50047.6 77724.47 100.00 152.57 236.94 Gross Block 3894.76 3873.95 4215.21 100.00 99.47 108.23(less) accumulated Depreciation 1173.59 1127.4 1701.74 100.00 96.06 145.00Net Block 2721.17 2746.55 2513.47 100.00 100.93 92.37

47

44.8 77.56 Fixed asset and other assets 4154.02 4882.96 6320.07 100.00 117.55 152.14 Total Assets 130694.38 172402.32 296632.79 100.00 131.91 226.97


INTERPRETATION:

The above table shows the trend analysis of the following years 2007-2008 :2008-

2009 : 2009-2010.

The deposits of the bank has been consistently increasing over the years.

The borrowings of the bank has decreased in the year 2009-2010 when compared to

previous years.

The overall financial position of the bank is good.

TREND ANALYSIS OF NET PROFIT

48

(Amt in cores)

YEAR PROFIT( Y)

DEVIATION FROM

2005 (X) XY X²

2006 560.89 1 560.89 1

2007 630.31 2 1260.62 4

2008 729.46 3 2188.38 9

2009 858.54 4 3434.16 16

2010 1031.13 5 5155.65 25

TOATL 3810.33 15 12599.70 55


The equation of the straight line is

Y = a + bX

Since ∑Y = Na + b∑X

∑XY = a∑X + b∑X²

Substituting the values, we get

a = 411.45, b = 116.87

Thus the straight line trend is

Y = 411.45+116.87(x), Origin = 2006, X unit = 1 year

(Amt in cores)

49

YEAR TREND VALUE(crores)

[amt]

ACTUAL VALUE (crores)

[amt]

2006 578.32 560.89

2007 645.19 630.31

2008 762.06 729.46

2009 878.93 858.54

2010 995.8 1031.13

2011 1112.67

2012 1229.54 `

2013 1346.41

2014 1463.28

2015 1580.15


The above table shows the expected future profit for the year 2011 to 2015. By trend analysis.

50

Table 5.8 Showing comparison between actual profit and trend value


Inference:

The above graph shows the trend profit for the years 2006 to 2015.. Future expected profit.

From the above graph we can concluded that the actual profit value and the trend value is more or less equal which states that the bank is performing well.

51

Charts and tables showing Bank advances of IDBI bank for the year 2008

to 2010

Table 5.9

(Amt in cores)

Year Amount

2008 82212.69

2009 103428.32

2010 138201.85

Bank advances


Inference

The above chart shows the bank advances for the following year 2008, 2009 and 2010..

It clearly shows that the advance of the bank has been increased each year

52

Charts and tables showing Bank balances and cash balances of IDBI bank

for the year 2008 to 2010

Table 5.10

(Amt in cores)

Year Cash balance Bank balance

2008 6694.83 2063.94

2009 8590.82 2628.50

2010 13903.47 679.36

Bank balances and cash balances


Inference

The above chart shows the bank balance and cash balance for the following year 2008, 2009 and 2010..

It clearly shows that the banks cash balance is going on increasing while the bank balances with other banks is decreasing over period of time

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Charts and tables showing Bank deposits of IDBI bank for the year 2008

to 2010

Table 5.11

(Amt in cores)

Year Bank Deposits

2008 72997.98

2009 112401.01

2010 167667.08

Bank deposits


Inference:

The above chart shows the deposits of bank for various years. the deposit includes demand deposits , term deposits and saving deposits . Inside and outside the bank .

It is concluded that the saving deposits are more than the other term deposits and demand deposits.

54

Charts and tables showing Bank borrowings of IDBI bank for the year

2008 to 2010

Table 5.12

(Amt in cores)

Year Bank Borrowings

2008 38612.55

2009 44417.04

2010 47709.48

Bank borrowings


Inference

The above chart clearly indicates the borrowings of the bank.

The bank borrowings has been increased by 5804.46cr in the year 2008 – 2009 and it increased by 3292.44cr in the year 2009 - 2010 . Borrowings may be inside and outside INDIA.

55

Charts and tables showing Investments of IDBI bank for the year 2008 to

2010

Table 5.13

(Amt in cores)

Year Bank Borrowings

2008 32802.93

2009 50047.60

2010 73345.40


Inference

The above chart shows the investments for the following year 2007-2008 to 2009-2010.

It has been increased from year to year with a high growth rate.

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CHAPTER 6

FINDINGS AND SUGGESTIONS

57

FINDINGS AND SUGGESTIONS

6.1 Findings :

There has been 17.6% of increase in profit for the year 2009 from 2008 and

20.01% of increase in net profit for the year 2010 from 2009.

With the help of trend analysis , we predicted the future profit of the bank are

Rs.1112.67 Cr. For year 2011 and Rs.1229.54 Cr. For the year 2012., Rs.

1346.41cr for the year 2013. Rs. 1463.28 cr for the year 2014 and finally Rs

1580.15Cr for the year 1015

The Deposits of the bank have been increased by 53.97 % and 49.1% in the

respective years 2009 and 2010.

Cash balances are very high when compared to Bank balances in the bank .

The bank has a very good financial management as the actual net profit of the bank

is more or less equal to that trend value.

The bank borrowings has been increased by 5804.46cr in the year 2008 – 2009 and

it increased by 3292.44cr in the year 2009 - 2010

The investments and deposits also increased during the period of 2008-2009 and

2009-2010.

The overall bank performance is good for the last 3 financial years.

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6.2 Suggestions:

The bank can introduce some new technologies to satisfy the customer who visit bank

for depositing money or withdrawing money form their account.

Some more branches can be opened in order to make it feasible.

Some new deposit schemes and loan schemes can be introduced in order to increase

the deposits

Some value added services can be introduced in order to satisfy the customers.

Mobile banking and sms banking can be introduced to the maximum.

6.2. CONCLUSION:

By studying the comparative, common size and trend statements we reach the

conclusion that the overall bank performance is good for the last 3 financial years. The bank

net profit also increased gradually from year to year. It will be helpful for the future growth

and expansion of the bank. Both in terms of services and profit.

In present scenario IDBI Bank is the largest advance product issuer in India.

Within a very short period of time the achievement made by IDBI Bank is excellent, what a

normal bank cannot expect, but it is being done by IDBI Bank. It happens due to employee

and the customers. Apart from all the above, IDBI Bank believe in providing good customer

services to their customers which is a key factor for success in future.

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APPENDIX- I

BIBLIOGRAPHY

BOOKS:

1. I. M.Pandey, (2002), “Financial Management”, Published by Vikas Publishing House Pvt.Ltd. New Delhi.

2. Jelsy Joseph Kuppapally, “Accounting for Managers”, Published by Prentice-Hall of India Pvt.Ltd. New Delhi.

3. Dr. S.N.Maheswari, (2000), “Principles of Management Accounting”, published by Sultan Chand and Sons, New Delhi.

JOURNALS:

1. K.C.Chakrabarty, “Published annual report of idbi bank”, New Delhi.

Websites:

1. www.idbi.com

2. www.moneycontrol.com

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http://www.moneycontrol.com/

APPENDIX – 2

BALANCE SHEET OF IDBI BANK LTD

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Balance Sheet of IDBI BANK ------------------- in Rs. Cr. -------------------

Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths

Capital and Liabilities:

Total Share Capital 724.76 724.78 724.86

Equity Share Capital 724.76 724.78 724.86

Share Application Money 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00

Reserves 6,075.13 6,719.52 7,502.26

Revaluation Reserves 2,022.07 1,979.56 1,937.72

Net Worth 8,821.96 9,423.86 10,164.84

Deposits 72,997.98 112,401.01 167,667.08

Borrowings 38,612.55 44,417.04 47,709.48

Total Debt111,610.5

3156,818.05 215,376.56

Other Liabilities & Provisions 10,261.89 6,160.40 8,030.62

Total Liabilities130,694.3

8172,402.31 233,572.02

Assets

Cash & Balances with RBI 6,694.83 8,590.82 13,903.47

Balance with Banks, Money at Call 2,063.94 2,628.50 679.36

Advances 82,212.69 103,428.34 138,201.85

Investments 32,802.93 50,047.60 73,345.46

Gross Block 3,894.76 3,873.95 4,085.27

Accumulated Depreciation 1,173.59 1,127.40 1,250.35

Net Block 2,721.17 2,746.55 2,834.92

Capital Work In Progress 44.80 77.56 162.04

Other Assets 4,154.02 4,882.96 4,444.91

Total Assets 130,694.3 172,402.33 233,572.01

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8

Contingent Liabilities 89,811.14 96,523.34 101,597.45

Bills for collection 14,226.75 20,053.80 26,695.59

Book Value (Rs) 93.82 102.71 113.50

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A Study on Comparative and Common Size Statement, Trend Analysis

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