The performance of south indian bank ltd

1.1 This undertaking focuses on analysing the fiscal state of affairs of South Indian Bank Ltd, achieved by looking at the tendencies of events and cardinal public presentation indicates over a period of three fiscal old ages ( 2005-2006, 2006-2007, 2007-2008 )

1.2A The accent was placed on the audited fiscal statements.A The currency used throughout this Undertaking is – INR [ Indian Rupee ] unless stated otherwise. For comparing purpose the exchange rates to be used will be 48.10 and 68.25 for the dollar and lb severally as on 31/1/2009.A

To hold a fairer analysis of fiscal state of affairs of South Indian Bank Ltd, two other scheduled bank Federal Bank Ltd and Axis Bank Ltd was besides chosen for comparative intent.

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Back land of South Indian Bank Ltd

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2.1 South Indian Bank: one of the earliest bank in South India “ South Indian Bank ” came into being during the Swadeshi movement.A The constitution of the bank was the fulfilment of the dreams of group of enterprising work forces who joined together in Thrissur ( a major town, now known was the cultural capital of Kerala ) in the former province of Cochin to supply for the people a safe, efficient and service oriented depository of nest eggs of the community from clasps of greedy money loaners on the other manus by supplying demand based recognition at sensible rates of involvement.

2.2 Milestones: -A The first bank in the private sector in India to open currency thorax on behalf of Reserve Bank of India in 1992.ii ) .A A The first bank in private sector to get down Industrial finance subdivision in March 1993.A A three ) .A The 3rd largest branchA web among private sector bank in India with all its subdivisions under nucleus banking system.

South Indian Bank has a sum of 520 subdivisions, 17 extension counters and, 263 ATMS.A

2.3 Like all others commercial Bank in India, Research Bank of India ( RBI ) is moving as a major monitory organisation to supervise south Indian Banks operation.A

3 Reasons for pick of Topic A

3.1 My yesteryear and current surveies of ACCA, acquaints me with theoretical cognition on fiscal analysis and public presentation evaluations.A This increased any desire in this subject coupled with acute involvement in the fiscal sector as a future calling development.A

3.2A After 1990, India has been implementing policies to accomplish economic recovery and liberalisation of economic system, through policies such as denationalization, prudent financial and found pecuniary policies, taking at stabilising the finance sector.A The subject hence, was chosen to measure the consequence of these policies on the public presentation in the banking sector with accent on the South Indian Bank Ltd.A

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4 Aim and objectivesA

A 4.1 The purpose of the undertaking includeA : –

Making a critical analysis of South Indian Bank Ltd in cardinal countries like capital adequateness, plus quality, direction efficiency, profitableness and liquidness utilizing identified accounting tools.

Transporting a tendency analysis of the Bankss fiscal state of affairs over a minimal period of 3 old ages utilizing available sufficient and appropriate informations.

Making a comrade of South Indian Bank Ltd VIS-a-VIS selected rival bank in the same equal group, so as to find its fiscal strength.

Establishing countries that strengthen the bank ‘s fiscal place as a traveling concern and so proposing possible recommendation to beef up these place hereafters.

Establish the degree of stableness in the Banking industry in India and the extend to when same Bankss are financially sound, including South Indian Bank.

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A 5 Executive Summary: A

5.1. A traditional ratio/trend analysis and cardinal public presentation index of the CAMEL ‘s model was the major tool used in analysing the fiscal state of affairs of the South Indian Bank Ltd.A

5.2 The Bank flourishes in fiscal public presentation indexs like capital adequateness, plus quality, direction public presentation and efficiency in operation.A

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5.3 The chief ground for stockholders to put is to harvest well high returns from their investments.A ( John R. 1996 ) .A South Indian Bank offered high returns to its stockholders in the past old ages and hopes to offer higher returns in the forthcoming years.A

5.4 Modern banking installations like ATM, nomadic banking cyberspace banking are used by south Indian Bank and the close rival Banks.A This enables faster service proviso and decrease in operational cost like human resource expensesA

5.5 Analysis of Bankss client portfolio reveals that the nucleus competenceA or typical competency is in the debut of attractive programs suited to different degrees of people particularly for Non Resident Indian ( NRI ‘s ) .A

5.6 Government ‘s economic recovery programmes particularly denationalization and liberalisation have promoted healthy competition and strengthened the finance Sector.A With close monitoring of the Banking industry by Reserve Bank of India, immature turning Banks like South Indian Bank have a predictable hereafter and hence traveling concern status.A

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Section BA : A INFORMATION Gathering

Chapter II: A SECONDARY RESEARCH

1 LIBRARY RESEARCHA

1.1 Quite a batch of secondary research information has been used in this undertaking affecting garnering relevant information runing from fiscal statement to information runing from fiscal statements to newspaper articles and these have been really helpfulA

1.2 The libraries used included among the others Public Library Cochin, IIAF ( Indian Institute of Accounting and Finance ) and our office library.A Data was collected from Bank Journals, Reserve Bank of India studies, fiscal studies, magazine facets, Reserve Bank of India assessments.A

1.3 Photocopies were made, at a cost, of any relevant information that was found utile for the project.A Visiting libraries were indispensable in acquiring a wider range of the subject, theoretical information on the fiscal analysis and study composing associating to assorted textbooks.A

Electronic Research

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2.1 The usage of cyberspace and Search engines was helpful in acquiring a wider position about Bank public presentations and evaluations.A I managed to look at Several Financial analysis studies associating to Bank.A

2.2 Information assemblage was instead clip devouring but less expensive as I was utilizing the cyberspace fro my workplace.A Nevertheless some web sites require anterior subscription for entree.

Web sites visited included: www.reservebank.com, www.southindianbank.com, www.federal-bank.com, www.axisbank.com, www.economictimes.com. These are critical for concern and industrial fiscal analysis.

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Chapter III.A PRIMARY RESEARCH

1.1 Just like secondary informations, primary research was every bit indispensable as it enabled one to acquire an in-depth apprehension of South Indian Bank Ltd.A On showing an debut missive form any college, the bank ‘s director proved helpful in availing information, assured of the confidentiality of the informations in add-on to the utility of the information for my research purposes.A

1.2 My interactionA with the Bankss direction enabled me to acquire an penetration into the bank ‘s operations, strategic aims and way. This helped me to understand the Bank ‘s strengths and failings thereby doing any analysis and rating easier.A

1.3 In add-on to treatments with the bank ‘s direction I took off some clip to detect the motions in day-to-day minutess and besides acquire any relevant information and attitudes from A A a few customers.A

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Section C: A Analysis

A A A A A A CHAPTER IV: A TOOLS FOR FINANCIAL ANALYSIS

1 The camels model: A

1.1 This was developed by International pecuniary fund ( IMF ) to measure the sounders of fiscal systems through readying of fiscal system stableness appraisals ( monthly economic and fiscal Indication 2005 ) .A Reserve Bank of India follows their model for the rating of all Bankss performances.A This includes looking at capital adequateness, plus quality, direction public presentation, efficiency in operation and liquidity.A

2 Ratio/Trend analysisA

2.1A Well interpreted ratio is critical in analysing the fiscal state of affairs of organisations ( Monthly Economic and Financial Indicators 2005 ) .A This involves computation and reading of cardinal fiscal ratios.A Neil dA stan 1996 identifies profitableness, liquidness, solvency, stockholders and efficiency ratio as major facets of traditional ratio analysis.A

2.2 Harmonizing to Arishobulo De Juen ( 1985 ) , ratio analysis entirely can non demo much, but will ever necessitate to be looked at together with the tendency analysis [ flow of events over a period of clip ] ; hence, this research covers a flow of events over a period of three old ages up to 31st March 2008.A

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Chapter V: A CAPITAL ADEQUACYA

1. Capital adequateness is monitored by the Bank for International colony as approved by Reserve Bank of India regulatory.A These ratios compare the Banks eligible capital with its balance sheet assets, away balance sheet committednesss and market hazard places at leaden sums, to reflect other comparative risks.A

1.1 Capital adequateness is critical in a bank ‘s long-run endurance and has been sighted as one of the causes of bank failure.A

1.2 Taking into history the attack adopted by Basel commission ; the Reserve Bank of India ( RBI ) prescribed in old ages 1992, a unvarying methodological analysis for finding capital adequateness of Scheduled Commercial Banks ( other regional rural Bankss ) , on prudent norm of capital adequateness.

Graph 1: screening capital adequateness ratio of selected Bankss ( appendix 1 ) .

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1.3 The term capital adequateness is used to depict the adequateness of capital resource of a bank in relation to the hazard associated with its operation.A The ordinance norm set by Reserve Bank of India is 9 % .A

1.4 Over the three twelvemonth period South Indian Banks capital adequateness ratio is good above the 9 % level.A Even though it showed a dip during 2006-2007 when compared to 2005-2006, it shot up to 13.8 % during 2007-2008.A

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Chapter VI: ASSET QUALITYA

1 Customer progresss form a significant per centum of bank ‘s assets.A The quality of assets is critical to the Bankss long-run endurance. Dun and Bradstreet selected South Indian Bank as the best bank among the private sector with regard to plus quality during February 2009. KPMG one-year study besides selected South Indian bank as top bank in this regard.

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Graph 2: screening South Indian Bank ‘s clients progresss and sedimentations ( appendix 2 ) .

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1.1 The above graph shows a roar in client progresss in during the period 2007-08.A This was chiefly due to increase in the retail progress in conformity with the Bankss scheme of growing in retail portfolio, beginning, in portion by decrease in progresss due to refunds and securitization.A

1.2 The client sedimentations increased drastically during the old ages and this depict client ‘s trust of the bank by intrusting their financess with management.A

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1.3 Even though the entire assets on norm of South Indian Bank Ltd is non higher than the other Bankss, it is turning at a fast rate.A

Graph 3: screening alterations in entire assets ( appendix 3 )

ASSET VALUE ( MILLIONS )

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1.4 Entire assets had increased from 112 billion rupees during 2005-06 to 136 billion rupees in 2006-07 and to 170 billion rupees during the fiscal twelvemonth 2007-08.A The rise in the overall growing of assets can be seen as an index of a financially sound bank.

A 1.5A The bank has been successful non merely in bettering entire assets but besides in its use. During the twelvemonth 2007-08 it was able to administer upto 45 % of its A progresss to precedence sectors as against the mark 40 % set by the modesty Bank of India.

1.6 agribusiness sector deserves particular attending particularly in a state like India.A Advances to agricultural sector during the twelvemonth 2007-08 is about 13.85 % .A However, the bank can non trust wholly on the Agricultural sector due to external alterations while are beyond the human control.A Eg. The climatic alterations, harvest disease etc.A

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1.7 Along with agricultural sector little endeavors besides require attention.A During the fiscal twelvemonth 2007-08 South Indian Bank give 6.87 % its progresss to little endeavors and 14.78 % to other precedence sectors.A

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1.8 Another of import factor to find the plus quality is the per centum of A A Non Performing Asset ( NPA ) . In construct a recognition installation becomes non-performing “ when it ceases to bring forth income for bank. ” ( ICAI – counsel note ) .Detailed guidelines has been laid down for finding the position of different sorts of recognition installations – for illustration, a term loan is treated as now executing plus ( NPA ) it involvement and / or installment of rule remain delinquent for a period of more than 90 days.A

A A A 1.9A South Indian Bank has been able to maintain NPA every bit low as 1.78 % .A The bank ‘s NPA A continued to be lowest among the peers.A

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Chapter VIIA : A MANAGEMENT PERFORMANCE / EFFICIENCY

Though it is hard to mensurate the qualitative nature of sound direction, it is cardinal to a Bankss performance.A Efficiency ratios are used as good indexs for the analysis of direction public presentations.

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1.2 Management public presentation can besides be assessed by looking at cardinal ratios like the profitableness and liquidness ratios.A Therefore, for any direction to seen as effectual it is ought to register considerable sums of net income with minimum cost involved.A

Graph 4: demoing the cost to Revenue ratio of South Indian Bank over 3 old ages ( appendix 4 ) A

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1.3 From the graph above we can do out that the ratio of operating cost vs entire operating gross is diminishing each year.A From 92 % during 2005-06 it reached 89 % during the twelvemonth 2007-08.A This reveals that first-class direction efficiency lies with the bank.A

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Chapter VII: Liquid

1A Through the company ‘s primary aim is to do a return to its stockholders, it is unsafe to be done at the disbursal of being liquid ( Paul H 2004 ) .A Initially solvent fiscal establishments may be driven towards closing by hapless direction because of so short-run liquidness places. ( Hibers, Kruger and Moretto 2002 ) .

Graph 5 demoing cardinal liquidness ratios ( 2005-06 to 2007-08 ) .

( Appendix 5 )

Ratio

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1.1 In comparing with the Federal Bankss, South Indian Bank current ratio of 2.28 is non so good ( graph 5 ) , Bank ‘s current ratio has shown an betterment when compared with that of during the twelvemonth 2005-06.However the current ratio is non comprehensive usher to a bank ‘s liquidity.A Thus there is a demand for farther analysis of facets like exposure to sedimentations backdowns, imparting ratios, client advance/deposit ratio, hard currency and hard currency equivalents and the mismatch between adulthood distribution of assets / liabilities.A

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1.2 Customer progresss to sedimentations ratio is an of import liquidness index for Bankss ( banking word 2004 ) . Liquidity supports the recognition creative activity process.A The more the client sedimentations, the more money is available for loaning and this has been mean for the bank compared to its competitors.A

1.3 The addition in this ratio during 2007-08 ( graph 5 ) is because of the addition in the client progress and sedimentation during 2007-08, which increased by 29 % and 24 % respectively.A

1.4 Primarily, a bank should be able to bring forth positive hard currency flows from its operating activities ( Davis 2004 ) .A South Indian Bank managed to register positive hard currency flow during 2007-08 and 2006-07 respectively which has decreased by 29 % during 2007-08 this has resulted in lessening in operating profit.A

1.5 The adulthoods of assets and liabilities and the ability to put them at an acceptable cost bearing liabilities as they mature are of import factors in measuring a Bank ‘s liquidness and exposure to involvement / forex rates.A South Indian Bank maintains healthy place with this respect.A

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Chapter IX: A EARNINGS / PROFITABILITY

1 The primary aim of any Business organisation supplying a return to its portion holders and this can merely be achieved if the company is profitable [ BPP 2005 ] – unprofitable Bankss hazard insolvency, nevertheless abnormally high net incomes can reflect inordinate hazard taking [ Hibers Kinger, Moretto 2001 ]

1.1 It is hence necessary to see South Indian Bank ‘s profitableness in analysing its fiscal state of affairs by measuring some profitableness ratios.

Graph 6A : A demoing tendencies of selected profitableness ratios ( appendix 5 )

Entire income of the bank has grown from 8 billion during 2005-2006 to 14 billon during 2007-2008 ( appendix 4 ) .A Thin indicates an addition in net incomes, the net incomes per portion ratio ( EPS ) besides increased form 10.25 to 18.77, an addition of 83 % as such income is turning, and entire cost/expenses need to be reduced so as to accomplish thisA addition in EPS.

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1.3 The operating net income ratio increased during the twelvemonth 2006-07 by 11 % , but during the twelvemonth 2007-08 it has shown a lessening of 10 % as evidenced by graph 6. This shows an mean public presentation in footings of the Bankss operations.A As compared to its close rivals in the old ages 2007-08, the rivals, Federal Bank and Axis bank outperformed South Indian Bank.A

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1.4 Operating disbursal are important to an organisation profitableness ( BPP 2005 ) because whenA a bank has immense sums of income and high net income ratio with operating disbursals non decently managed the bank could do losingss and therefore no returns to the portion holders. A

1.5 For the South Indian Bank runing disbursal as a per centum of income has been diminishing ( graph 6 ) the per centum is merely 14 % , this is a good consequence and when compared with its rivals Federal bank Axis Bank which have 16 % and 24 % respectively.A This ratio shows the South Indian Bank maintains good control over its operating expenses.A

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1.6 The net net income ratio has been increasing ( graph 6 ) .A It has shown an addition of 83 % from the old ages 2005-06 to the old ages 2007-08.A The ratio compared to the other Bankss is mean and the EPSA of 18.77 during 2007-08 was rather good.A A well good return to the stockholders has been achieved, which is the intent of their investment.A

1.7 Any net income made by a company belong to the stockholders who took hazards and invested big amount of their money in the company [ Arthur B 2007-08 ] .A it is hence worthy of sing how good South Indian Bank has made good usage of the investor ‘s fund.A

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1.8 The ROCE ratio has increased from 28 % to 32 % during 2006-07 and reduced signifier 32 % to 24 % during the twelvemonth 2007-08 ( Appendix 5 ) .A The worsening public presentation during 2007-08 could be a consequence of diminishing gross net income ratio.A

1.9 EPS is comparatively important to invertors and analysts though easy manipulated [ Economist 2004 ] . South Indian Bank had an EPS of Rupees 18.77 during the old ages 2007-08 with Federal Bank ( Rs. 32.42 ) and Axis bank ( Rs. 32.15 ) A

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Graph 7 demoing tendency of accrued net income /loses in 3 old ages ( appendix 6 )

Time period IN YEARSA

ACCUMULATED PROFIT /LOSS ( BILLIONS )

A 1.10 Even though South Indian Bank was non able to crush is rivals like Federal Bank and Axis Bank, the bank has managed to better the tendency of accrued net incomes from the old ages 2005-06.A

1.11 While large private sector Banks like ICICI Bank and HDFC bank make immense amount of net incomes yearly, looking at smaller autochthonal Bankss, one can non devaluate the recent public presentation of South Indian Bank.A

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Chapter Ten: Hazard Analysis

1 In the present volatile and quickly altering fiscal scenario, it is really disputing for the Bankss to pull off, complex and variable hazard in a disciplined manner.A lt is imperative to hold good hazard direction patterns non merely to pull off hazard inherent in the banking procedure but besides to confront the hazard originating from fiscal marked as a whole.A

1.1T he bank aims to set in topographic point the best hazard direction surveies which proactively identifies and helps in commanding the assorted hazard faced by the bank.

The chief these built-in hazard in the concern are

Recognition hazard

Market hazard

Operational hazard

Of which the most hard and hence controversial portion have been the appraisal, measuring and quantification of operational hazard. ( South Indian Bank, Annual Report 2007-08 ) .

1.2 Credit hazard: A the bank is exposed to recognition hazard through its loaning and investing activities.A The recognition hazard direction models integrate both qualitative and quantitative procedure to back up growing in the plus book while guaranting an acceptable hazard degree in relation to the return.A As a consequence towards hazard extenuation, bank has strengthened the recognition countenance and recognition monitoring section by presenting more expert and experienced personnel.A Credit hazard inherent in the investing in Non SLR Bonds are beingassessed independently by office exchequer utilizing internal evaluation manners developed by Integrated Risk Management Department ( IRMD ) .A

1.3 Market hazard: A Market riskA consequence from alterations in market value of assets originating due to volatility of market hazard factor and their likely impact on income and economic value of the sum banking and trading books, due to asset-liability mismatches.A The market hazard model identifies the type of market hazard to be lowered, the hazard matrices and methodological analysiss to be used to capture such hazards and the criterions regulating the direction of market hazard including bound setting.A Market hazard measuring uses both statistical and A

non-statistical steps to supervise hazard with triggers in instances of breaches in the pre-accepted degrees of identified risk.A Risk bound of trading books are set harmonizing to a figure of standards, including marked analysis, concern scheme, direction experience and Bank ‘s hazard appetite.A

1.4 Operational hazard: a policy on direction of operational hazard has been approved by the Bank to guarantee that the operational hazard within the Bank is decently identified, monitoredA and reported in a structured manner.A Bank ‘s operational hazard direction commission abroad application of the above said policy directives.A Each productA / services introduced is capable to put on the line reappraisal and sign-off procedure where all relevant hazard are identified and assessed by departmentA independent of hazard taking unit suggesting the product.A The losingss due to proficient failures and breaks are mitigated through adequate backup installations, the being of catastrophe apparatus and regular testing rolled over by the Information Technology Division ( ITD ) .A

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Chapter Eleven: A CRITICAL SUCESS FACTOR ( CSF ) ANALYSISA

1 There are countries in a concern organisation or its environment where if non good handled, could do a concern go bust.A Critical success factors are critical countries of a concern where things must travel right for a concern to thrive in its ends, mission, vision and aims [ GAM 2005 ] .

1.1A Key CSFs that affect fiscal establishments particularly Bankss include ;

Fiscal system and cybernation [ IT ]

Resource mobilisation and use

Hazard analysis and direction

Profitableness and returns to stockholder

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1.2Management need non merely place but besides monitor the critical success cabal that relate to a concern because failure in such factors, direction may neglect accomplishing corporate aims and ends [ John R ] .A

1.3The bank has upgraded its IT operations and has succeeded in using the ATM to the full a long with its rival Bankss like Federal Bank and Axis Bank.A

1.4 In the of all time altering competition scenario, a resource mobilisation in signifier of both human and fiscal resources is critical.A The bank has invested in immature, dynamic and originative people who are given awareness orientation about the bank ‘s mission and vision statement and the bank ‘s policies.A

1.5 One of the bank ‘s policies is to maintain its full staff taking higher and higher in fiscal studies.A It is from these preparations that the bank is assured of quality consequences and therefore good performance.A

1.6 As seen from the old chapter, South Indian Bank has tried caput in taking proper hazard direction procedures.A It is due to some of these hazards that concern travel flop but the Bank has mitigated this by set uping hazard direction maps ; among the managers which help in supervising hazard like recognition hazard, market hazard, liquidness hazard, and runing hazard. If these hazard are decently managed, so the bank is assured of a predictable fiscal future.A

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A A A A A A A A A A A A A A A A A A A A A A A A A A SECTION D: A CONCLUSIONA

Chapter Twelve: CONCLUSIONS AND RECOMMENDATIONSA

1 India follows a traditional system of banking.A This is one ground why Indian Banks are to the lowest degree affected by the planetary economic crisis.A In the relevant past the banking industry in India has been stable.A Reserve Bank of India house base on implementing the fiscal establishments legislative act should be commended because the on and offsite reviews carried out by the cardinal Bank has non merely strengthened the bank ‘s public presentation but besides managed to foretell and place possible bank failures early plenty for solutions.A

1.1 The analysis made has managed to place the tools used in measuring the fiscal soundness of a bank and used the tools constituents like capital adequateness, plus quality, direction efficiency, profitableness and liquidness in analysing South Indian Bank ‘s fiscal stability.A

1.2 The bank expression at puting client financess in other investings as a better option that imparting out these financess to customers.A The job here being the clip span investing return to do a return could turn out longer than the clients could take to pay back the financess

A A 1.3 Management public presentation indexs assessed the Bankss direction as A A A A A A A good as compared to its selected rival Bankss.

A 1.4 More so, in seeking to measure whether bank is financially stable, there was demand to look at tendency and way of net income / net incomes over a few years.A By measuring the bank ‘s profitableness it was realized that South Indian Bank is traveling towards the profitable terminal. ( graph: 7 ) .

1.5A India ‘s nationalized Bankss, province Bank of India and its subordinates and other Public Sector Banks enjoy a really high assurance in the heads of the clients, doing these clients non to exchange or deprive their portfolios but to maintain concern with them.A

1.6A Many little emerging Banks including South Indian Bank Ltd have hence failed to perforate this large market but instead kept their operations at medium scales.A This reduces profitableness and threatens fiscal stability.A

1.7The operational disbursal has increased ; it is necessary to hold more control over operating disbursals assisting to cut costs thereby increasing net incomes and hence net incomes per portion [ EPS ] A

A 1.8 During the twelvemonth 2007-08 the bank ‘s hard currency flow from operating activities has A decreased by 28 % when compared to the old twelvemonth, which need to be looked into.A Thin Tells that South Indian Bank need more command over the operating cost.

1.9A A Progresss to clients are plus for Banks.A Therefore South Indian Bank should increase their progresss to clients at the same clip without giving the profitabilityA

1.10 The bank expects to acquire higher return in the hereafter by several factors which A A A A A A A A A A A A A A A A A A A A A A A A A include ;

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Improvements in client ‘s sedimentations and progresss through beef uping the recognition policy section.

Strengthening the human resource section through forces A A development and hazard analysis constitutions.

Increase in the figure at operational subdivisions which gives a wider client base.

Launch of new merchandises on the market.

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1.11 With, close monitoring of RBI and the strengthening of the fiscal position 2007-08, the banking industry is acquiring predictable each twenty-four hours than it was a few old ages ago.A This is attributed to the first-class and timely monitoring by the RBI.

1.12 Because Reserve Bank of India releases monthly, quarterly andA one-year studies measuring at greater deepness the public presentation of single Bankss and equal groups, it is now much easier to foretell public presentation and the traveling concern position of most Bankss including South Indian Bank Ltd.A

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APPENDIX A A

Appendix 1

Capital Adequacy ratio

Year ended

South Indian Bank

Federal Bank

Axis Bank

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Ratio

Ratio

Ratio

2005-06

13.02

12.50

10.75

2006-07

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13.44

11.57

2007-08

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22.47

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Appendix 2

South Indian Bank ‘s progresss to/from clients

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2006-07

2007-08

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Millions

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Progresss to clients

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83080

107540

Customer sedimentations

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122390

151560

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Appendix 3

Sum ; assets profile ( group )

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2005-06

2006-07

2007-08

Bank

Millions

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South Indian Bank

112500

136530

170900

Federal Bank

206430

250900

325065

Axis Bank

500000

750000

1095780

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Appendix 4

Cost to gross ratio analysis

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2005-06

2006-07

2007-08

Grosss

Millions

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Interest income

7613

9766

13092

Other income

723

1032

1246

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Entire

8336

10798

14338

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Cost

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Interest disbursal

4511

6091

9151

Operating disbursal

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2189

2481

Provisions & A ; eventualities

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1477

1190

Entire

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9757

12822

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Cost/Revenue*100 %

92 %

90 %

89 %

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Appendix 5

South Indian Bank Ration calculation/analysis over three twelvemonth ‘s.

A Profitability ratio.

Gross net income ratioA A 2005-06A 2006-07A 2007-08A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A % ageA A A A A A A A A A % ageA A A A A A A A A A A % age

Operating profit/ ( loss ) A 2734*100A A 19A A 21A A 19

A A A A A A RevenueA A A A A A A A A A 14338A A A A

Net net income ratioA

A A A A A A Net profit/ ( loss ) A A 1516*100A A 6A A 10A 11

A A A A A A A A A RevenueA A A 14338A

A A A A A A Operating expense/Revenue ratio

Operating expensesA A 2481*100A A 27A A 20A A 17

A A A A A A A A A A A A A A Revenue A A A A A A A A A A A A A A A A A 14338A

A A A A A A Return on capital employedA

Operating profitA A A 2734*100A 28A A 32A A 24

A A A A A A A A A A RevenueA A A 11610A

A A A A A A Liquidity Ratios:

A A A A A A Current assets A A A 17026A A A 1.85A A 2.96A 2.28

A A A A A A Current liabilitiesA A A 7452A

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Customer progresss to lodge ratioA

A A A A A A Customer advancesA A A 107540A 0.51A A 0.68A 0.7

A A A A A A Customer depositsA A A 151560A A

A A A A A A Interest coverA

A A A A A A Net income before involvement and taxA 11469A A 1.03A A 1.2A 1.25

A A A A A A Interest expenseA A A A 9151A

A A A A A A Gearing ( Capital )

A A A A A A Long term loansA A A 276*100A 5.25A A 4.49A 2.37

A A A A A A Capital employedA A A 11610A

A A A A A A Investor ratios

A A A A A A Earnings per portion ( EPS ) A

A A A A A Earning attributable to ord. ShareholdersA =

Leaden mean figure of ord. ShareholdersA

A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A 1516A A A 10.25A A A 14.79A A A A A A A A A A 18.77A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A 80.78A

Appendix 6A

Accumulated profit/losses ‘000A 000A 000

Bank

2005-06

2006-07

2007-08

South Indian Bank

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2.2

3

Federal Bank

2.3

2.2

3

Axis Bank

9.5

10.2

15.5

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BibliographyA

Institute of hired Accountants of India ( ICAI ) : Gudiance note on audit of Bankss

Federation of Indian Chamber of commercialism and Industry New Delhi

A A A A A A : -A A current province of Indian Economy may 2007

Reserve Bank of IndiaA : – A Fiscal Situation

Reserve Bank of Indian: -A Recent Economic Analysis

BPP ( 2005 ) Strategic fiscal direction, London BPP Publishing

BPP ( 2005 ) Performance Management, London BPP Publishing

The Economic times

Business criterion

Oxford Brookes University Research & A ; Analysis undertaking Guidelines

Neil D Stein ( 1996 ) Interpretation of Accounts ACCA Student Newsletter, June

BPP ( 2003 ) Success in your Research & A ; Analysis Project. London

South Indian Bank Ltd A Annual study A 2005-06,2006-07,2007-08

Federal Bank Ltd A A Annual reportA 2005-06,2006-07,2007-08

ICICI Bank Ltd A A Annual reportA 2007-08

State Bank of IndiaA A A Annual reportA A 2007-08A

hypertext transfer protocol: // www.south Indian bank.com

hypertext transfer protocol: //www.federal-bank.com

hypertext transfer protocol: //www.Axis bank.com

hypertext transfer protocol: // www.accaglobal.com

FTC ( 2007 ) Financial Reporting, Paper f7

FTC ( 2007 ) Financial Management, Paper F9A

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A A A A A A A A A A A A A A A A A A A A Oxford Brookes UniversityA

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A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A Skills and Learning StatementA

A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A BY: A A A K.VarshaA

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A A A A A A A A A A A A A A A A A A A A A A A A A A A March 2009

A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A

A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A Words1563A

A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A

A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A Table of ContentsA PageA

Chapter 1A 35

Fixing for MeetingsA 35

Effective Planning EnablesA 35

Meeting 1A 35

Meeting 2A 36

Meeting 3A 36

Meeting 4A 36A

Chapter 2A 37

QuestioningA 37

Open QuestionsA 37

Closed QuestionsA 37

Probing QuestionsA 38

Multiple QuestionsA 38

Leading QuestionsA 38

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Chapter 3A 39

ListeningA 39

Chapter 4A 41

Appraisal of the PresentationA 41A

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Chapter 5A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A 42A

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Self Assessment of InteractionA 42A

AppendixA 44

BibliographyA 47A

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Chapter 1A

Fixing for MeetingsA

Planning is critical, clip devouring but deserving pickings ( BPP 2005 ) . It is besides indispensable. It comprises:

Establishing what needs to be done and how to make it.

Identifying possible jobs

Achieving undertakings with maximal efficiency.

Facilitating reappraisal ( BPP 2005 )

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I planned meetings with Mr. CA. N.Krishnan, my wise man but given his busy agenda as the module for ACCA in VIBIMAT, Cochin, most of theA meetings were held at VIBIMAT.

Since it was my first experience to make a undertaking, I had to be careful, organized and prepared for the difficult undertaking.

Meeting 1

This was on 12th January 2009 at 4.30 autopsy. prior to this I:

Timetabled my research work

Looked at possible considerations for the Topic

Searched for background information

Prepared the necessary notes for my wise man

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Meeting 2A

This was held on 3rd February 2009 prior to this 1:

Made contact South Indian Bank merely o be certain of acquiring information.

Collected the relevant information

Identified the framework/tools for analysis

Called wise man to maintain him informed

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Meeting 3A

This was held on 26th February 2009, prior to this I:

Prepared my presentation

Practiced the presentation particularly on clip direction and effectual communicating

Borrowed a projector from my college for the presentation

Confirmed the meeting with my wise man

Finalized my study

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Meeting 4A

This was held on 1 st March 2009, prior to this I: A

Prepared my presentation

Practiced the presentation particularly on clip direction and effectual A A communicating

Borrowed a undertaking from my college for presentation

Finalized my study

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By and large my planning improved with every meeting that was held. I had anticipated to hold finished the undertaking by 1st hebdomad of March 2009A

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Chapter 2A

Questioning:

Role and value of the inquiries: A

Help work out jobs

Stimulate advancement and ego appraisal

Encourage treatments

Generate replies

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Questioning techniques used included: A

1 Open Questions

These discover deeper significance of an reply. Examples used included:

“ What countries and attacks are you traveling to cover? ” “ How are you traveling to roll up your informations? ” They provided me the chance to explicate myself and showed whether I was acquiring the issues right. However I was at times missing in the replies since I had non read some issues exhaustively in future, I will guarantee that I understand inside informations of my work.A

2. Closed Questions

These provided limited replies, illustrations include: “ Will you finalise your work by 26th February 2009? ” “ Did you acquire all the required information? “ Have you met your aims? ”

Most of the replies required were precise therefore cut downing on clip wastage. However in most instances extra accounts were needed so as to warrant the replies, ‘A

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3. Probing QuestionsA

These purpose to detect deeper significance of an reply. Examples used include: “ Why are you interested in this subject? “ A ” Why have you used more of secondary informations than primary? ”

They offered me the chance to show myself and back up my statements. However at times I did non expect certain so I was taken unaware.A

4. Multiple QuestionsA

They encourage one to speak at length without rolling off. Examples include. “ Do you believe your beginnings of informations are equal, have you tried other beginnings and when do you anticipate to acquire them? “ A They covered countries adequately though I was unable to reply the inquiries in logical order.A

5. Leading QuestionsA

These suggested replies, illustrations include: “ Wouldn’tA u think that specifying your ratios is necessary? ” Are you certain this information is good plenty? ”

They were constructive in that they gave the wise man ‘s sentiments. However I had a inclination to pick counsel from my wise man ‘s opinion.A

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Listening:

ImportanceA

Helps in reading

Physiques relationships

Encouraged Communication

Interactive, flexible and speedy ( BPP 2005 )

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Effective hearing is critical so as to acquire a benefit out of listening and interpretations.A

Listening TechniquesA

Concentration: This was at times interrupted by the milieus and frequently lost concentration particularly when I attended the meetings tired. In future will prefer a quiet topographic point and keep my focal point.

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Silence: I at times tended to maintain a long silence though I on occasion supplemented this by blessings like nodding. During my presentation traffic traveling in my vicinity affected my concentration. In future I will take better quiet topographic points.

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Attitudes and Interest: I kept an unfastened head and tried to demo involvement in the meetings. Although I had psychological tenseness during the first meeting this improved with each meeting that was held.

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Breaks: I preferred to inquire inquiries after the treatment so as non to disrupt my wise man. But alternatively he kept disrupting me whenever I was showing. This helped him authenticate my work as I was ne’er derailed.

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Feedback: During meetings and the presentation, Questions were asked as we progressed so as to allow my wise man know whether I was acquiring him right. I preferred to utilize mutters and nodding during the treatment and inquiries after the treatment.

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Chapter 4

Appraisal of the Presentation

Title: An analysis of the fiscal state of affairs of South Indian Bank Limited.A

A I did this on 1st March 2009 at Vidya Bharati Institute of Management & A ; Technology ( VIBIMAT ) Cochin, India. This was merely before my wise man went in for his lecture session.

Overall presentation

By and large the proficient content was O.K. but the presentation techniques were missing in some countries since I was on tenseness in the earlier proceedingss but improved as clip went on.

Strong Points

Related with the audience easy since it was merely my wise man.

Prepared sum-ups prior to the presentation.

Answered inquiries suitably as I was good in the proficient content and remained focused all through.

I had all the involvement and bravery required.

I appreciated the significance of presentations.

Weak points which need betterment

I realized that fiscal analysis is non merely about figures but the ability to construe them is cardinal excessively.

Time direction was hapless, as I tended to over luxuriant issues.

I responded to inquiries as we progressed that made me acquire tensed up and a small uncomfortable.

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Decision:

This was such a good experience for me as I realized the importance of doing presentations since I got to cognize my strong and weak areas.A

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Chapter 5: A

Self Assessment of Interaction: A

Communication was indispensable particularly in the wise man meetings and presentation. The communicating theoretical account used follows the one identified by BPP 2005. It comprises: -A

Sender: includes the wise man and me

Receiver: – includes both the wise man and me

Coded message: – Both verbal and non verbal

Medium: – This includes the meetings and presentation

Decoded message: – Is the wise man ‘s reading and my reading.

Feedback: – Was two-way from the wise man to me and frailty versa

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Communication improved with each meeting we held.

The feedback was O.K. , there was minimal deformation of the message and when there was demand, and elucidations were made. This success was achieved because a suited medium of communicating was used. Needs and outlooks were clarified, with no information overload. There was trust and belief between the wise man and me.A

However, I encountered some jobs in my meetings which include: -A

Breaks during meetings through phone calls.

Ambitious and unrealistic outlooks

Questions at times sidetracked me from my initial line of idea.

Our first meeting did non hold an docket, which led us to discourse issues in a non-logical sequence.

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Experience makes perfect, I believe through this undertaking I have learnt much and will rectify my errors in future traffics. Most of the jobs encountered were self-imposed and preventable.A

My interaction and communicating accomplishments have greatly improved because of the work done in this undertaking. This undertaking has gone a long manner in easing my organisation at my work topographic point assignments Anil Nambiar & A ; Associates, CA firm.A

Previously, I did non set much accent on issues like listening, oppugning and interacting I assumed this was in borne but I have now learnt it is a accomplishment which has to be perfected.A

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AppendixA

Outline of Presentation

A A A A A A A A A A A A A A A Delivered on 1st March 2009

IntroductionA

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Title of reportA A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A -A A A A A A A A A Analysis of the public presentation South

A A A A A A A A A A A A A A A A A A A A A Indian Bank Ltd.A

Reasons for pick of titleA – A Knowledge acquired from my ACCA

A A A A A A A A A A A A A A A A A A Studies

A A A A A A A A A A A A A A A A A A Keen involvement in the fiscal sectorA

Undertaking proposedA : A Analysis of South Indian Bank Ltd.A

Research carried out

A A A A A -A Review of available methods.

A A A A A -A Review of Financial Statements of Selected Banks.

A A A A A A -A Literature including Banking diaries, Business A A

A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A diaries, studies and text editions

A A A A A -A Internet stuffs on Banking and Financial

A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A AnalysisA

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Methods adoptedA -Review of published histories for South IndianA A A

A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A bank 2005-06 to-2007-2008 and the other selected

A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A Bankss.

A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A -Reading of diaries andA A A A

A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A -A A magazines, Economics Times, Business criterion,

A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A -A A Economist, Financial World, ACCA NewslettersA A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A Reference to Websites.

A A A A A A A A A A A A A A A A A A A A -A Request for interviews with direction

A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A of South Indian Bank Ltd.

Problems encounteredA -A Failure to acquire all the needed FinancialA A A A A A A A A A A A A A A A A A A A A A A A

A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A Statements of selected banks.A

Analysis/Findings: =A -A Framework/Tools used

A A A -A A Capital Adequacy findings, graph 1 screening

A A A A A -Shareholder involvements ( appendix 1 ) .

A A A A A -Asset quality ( appendix 2,3 ) Findingss ; graph 2

A A A A demoing client advance/deposits ratio graph3 screening alterations in entire assets.

-A A A A A Efficiency ( Appendix 4 ) findings, Graph 4 demoing A A A A A A A A A costs/revenue ration.

-A Liquidity ( Appendix 5 ) Findingss, Graph 5 Showing cardinal liquidness ratios.

-A Profitability ( Appendix 5 ) Findingss. Graph 6 Showing selected profitableness ratios, A & A ; A A Appendix 6 ( chart 7 ) Showing accrued profits/losses.

-A Hazard and Critical success factor analysisA

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Decision: –

-A Good function of the RBI and Financial establishments legislative act.

-A Capital adequateness is good and still bettering.

-A Management public presentation is good though operating costs are still high.

-A Profitability/Earnings is non yet so good.

-A Liquid: Good hard currency balances, coevals of mean hard currency flows.

-A No menace of market hazards

-A The bank has an mean public presentation compared to the other banks.A

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July 24, 2017