du pont analysis : South indian bank

7/25/2019 du pont analysis : South indian bank

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MANAGEMENT OF BANKS

DuPont Analysis (The South Indian Bank Ltd!"

MBA #N

Christ University Institute of Management

Under the guidance of

Prof Ramachandaran T S

Submitted by:

Students Name & Registration Numbers:

KASHISH ARORA 1!"11#

$rimester %

'ear of Study % !(1%1)

*ate of Submission % +ebruary !(1,


2/7

ROE

It sho-s the amount of net income returned as a .ercentage of the shareho/ders

e0uity It measures a com.any2s .ro3tabi/ity by re4ea/ing ho- much .ro3t a

com.any generates -ith the money that the shareho/ders ha4e in4ested

A/so RO5 can be ana/ysed by .roduct of ROA and 50uity 6u/ti./ier7568 9here

ROA gi4es the idea about asset use eciency $hat is ho- ecient/y the assets

of the ban;s are being ta;en into use to generate .ro3t And 56 te//s about the

3nancia/ /e4erage about the com.any Higher the 56 means more the com.anys

/e4erage

South Indian ,#

1"

!1,,,"

,

RO57=8 >1> 1,, !( !1,!1"

! 1,>>


3/7

#sset Uti$i%ation

IncomeManagement

Ratio 201 201! 201" 2012 2011 2010

Interest 5arned !",!!(1

(,###

!>"

#!##,

(! 1>)!

Other Income #>)(),"#

,#>

!#)(

)1>,,

> !("#,

Tota$ Income&'"(2

)"'"(

"!&*)(

22"'"0(

2*!2(

&1 21!!(1'

$ota/ Assets>11,

!#>"

>)#>)>

(#()(

(,!"!(

!! !#(##verage Tota$#ssets

&01(1!

2")0(

!0'2(

"*)(1!

2)1&&(1"

Ratio

(1(1)

(!)

(1(!

)"

(1(

)">

(1(#

,)!

((>(

)

$he asset uti/i@ation ratio a/so te//s the same trend about ban;s .erformance for

.ast 34e years It has been gro-ing from !(11 ti// !(1 at an a4erage gro-th

rate of 11!= but after !(1? it has a negati4e gro-th year after year $his is

because? as -e can see an increase in the tota/ income of the ban; from !(1

has increase by !1!,=? but the a4erage tota/ assets has increased by faster

rate of !,#= $hat is -hy there is a dec/ine in the ration after !(1

Cost Management

E+,ense Ratio 201 201! 201" 2012 2011

$ota/ 5.ense 1 #,#> #11, !"1 !1>)!1A4erage $ota/Assets )(11# !>(

#("!

,>1#

!>1))1

Ratio((>1,"1

,(("""#

#((>1!#

1((">(

!(()(

,

E-ciency Ratio Non Interest5.ense 1,1 1!>)# 111#> ",)1 ,>!7Inc/udingBro4isions8

$ota/ Income )"!> " #),>!! "( !,#!)1

Interest 5.ense >1>>> ,1,!> 1#, !,1,> 1,#>!

Ratio("11!

1>()1!"!

>(,">1#

(,"#

,()("!

#

.urden Non InterestIncome #>)() ,"#, #> !#)() 1>,,>


4/7

O.erating5.ense >"1 ""!"> ),)1) ,1)!> #,!A4erage $ota/Assets )(11# !>(

#("!

,>1#

!>1))1

Amount %#"#! %1## %#!!# %)(!! %!,"#

E+,ense Ratiosho-s the eciency of the com.any to minimise the cost It is a

ratio of tota/ e.ense to a4erage tota/ assets It te//s the tota/ e.enses of a

com.any as a .ercentage of the tota/ assets

$he Co-er the ratio? the better is the com.any 9e can see that there is a

gradua/ increase in the e.ense ratio $his is because assets and cost on those

assets ha4e increase gradua//y during the tenor

E-ciency Ratio measures the ban;s o4erheads as a .ercentage of its re4enue

So the ban; had done -e// in maintaining the eciency In fact from !(1(eciency has increased 1",=

/P# #na$ysis

201 201! 201" 2012 201

Dross NBA ,## #!,! #") !,)1, !(

Dross Ad4ances ),!",#>) ,#,!1>(!!

1!)#!!

)!()1

ross /P#s to ross

#dvances 3 1)1 11> 1, (>) 11Net NBA )( !"1,) !#> ),1 ,((

Net Ad4ances )1>!)(" ,111#1>>1(

!)!!(,>,

/et /P#s funded3 to /et#dvances 3 (>, ()" ()" (!" (!

Bro4ision he/d for NBAs !>), 11> 1,#!! 1),"1 1"#

Provision coverage Ratio (#(,>""11 ((#"") ()"(,,1"1

(,"))

Dross NBAs reco4ered during theyear !">1! ,!>,) , 1#,> ")1Dross NBAs at the beginning of

the year #!,! #") !,)1, !(# !1

Recovery Ratio (,,"((1! 1#1!")1,((#

,("#)#

#(#11

+resh accretions to NBAs #>>> ,!"#! ((, 1)11 1(,

Standard Assets ,>"!(#>) >!!1#,"

#!)!)1

1!(!1

S$i,,age Ratio ((11),) ((1)#>#((1,"#

#(((,!"

" (((1

NBA -ritten oE during the year 1(" !#,># !1> ,>

4rite O5 Ratio (!(",,"1! (,>1)("!1,(

(!",(>

>(1"(


5/7

ross /P#s Ratioare the sum tota/ of a// /oan assets that are c/assi3ed as NBAs

as .er R((

!

Ad4ances)>1,

,) ,!!>",1"1

#!)!"(

)#!(#""

)1"!!

>!

A4erage ad4ances,"1()#

, #(!!)!>#"

1#!""#

)1"1

"

Return on #dvances Ratio(11!"1>

## (11,(>1(1!1(

!1(1!((

"(1(,

(

Interest earned on in4estments 1()!> >##"1)#,"

>,!11(

"#"11

!

In4estments

1,)1)1,

!> 1#1)"

1!!

#)

>>>"

)#

">!)

)!

)1,

1A4erage in4estments 1##, 1#),! 1(>,1 >1,1" "(>,


6/7

> ,) ! >!

Return on Investments Ratio((,)"1

,,> (()1(1((,"(

>1((,))

>((>"

>!Return on 9unds

7Return on Ad4ances Return onIn4estments8

(1()1#

"

(1()!1

!>

(111"

"1

(11()

)!

((>)(

,

Interest.aid onde.osits !"((" !")" !>(!,> 1>1,,(# 1!(,#!)

*e.osits 1>1!#> #)#>1(>##!,!

(,((

!>)!1

("

Cost of 6e,osits((((>

# ((((#((((

#((((

!((((#

(,

Interest .aid on borro-ings 1!1(# >> 1",> 1))( "!

!>(

A4erage borro-ings !#"1,! !((),, >,) #>!)1(,

Cost of .orro:ings((#"))#

#> ((#,1)((1>>

,((#(!

>#((!,)

"!Cost of 9unds

7Gost of *e.osits Gost of"= from !(1 $his -as


7/7

maybe due to a shar. increase in borro-ings by the ban; 6ore than t-ice the

amount of borro-ings has been obser4ed after year !(1

CO/C7USIO/$he South Indian

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du pont analysis : South indian bank