THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

EXECUTIVE SUMMERY
It gives me great pleasure to present this project report on working

capital finance at Bank Of India, credit department, head office,

Patna. The project was carried out during two months.

The main objective of the project was to study various types of

working capital Finance provided by banks. To know details the

procedure of assessment of working capital finance extended by

banks.

Wheels of business cannot move without money. Availability of money

is being Limited and wants being unlimited. So procurement of fund is

one of the important functions in commercial & non-commercial

enterprises and utilizes it for maximization of business profits.

Business enterprises need funds to meet their different types of

requirements,

i. Long-term requirement

ii. Medium-term requirement

iii. Short-term requirement

Working capital requirement is the short-term requirement. Working

capital is the investment needed for carrying out day-to-day

operations of the business smoothly. Bank is one of the important

sources of working capital requirement. Bank gives various facilities to

the borrowers.

In this project I have considered various banking facilities for the

working capital finance to the industries. It covers almost important

aspect relating to assessment & follow up of working capital finance.

Submitted By: Priya Kumari 1

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

After discussing the procedure followed by bank, For assessing

working capital requirement case studies have been given with

necessary data in the prescribed forms demonstrate the calculable

done by bank to arrive at maximum permissible bank finance. An

inventory & receivables constitute the major portion of the total

working capital requirement.

Submitted By: Priya Kumari 2

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

CHAPTER-1
INTRODUCTION OF PROJECT
Every business needs investment to procure fixed assets, which

remain in use for a long period. Money invested in these assets is

called ‘Long term Funds’ or ‘Fixed Capital’. Business also needs funds

for short-term purposes to finance current operations. Investment in

short term assets like cash, inventories, debtors etc., is called ‘Short-

term Funds’ or ‘Working Capital’.

The ‘Working Capital’ can be categorized, as funds needed for

carrying out day-to-day operations of the business smoothly.

The management of the working capital is equally important as the

management of long-term financial investment. The goal of Working

capital management is to ensure that the firm is able to continue its

operations and that it has sufficient cash flow to satisfy both maturing

short-term debt and upcoming operational expenses.

Every running business needs working capital. Even a business which

is fully equipped with all types of fixed assets required, is bound to

collapse without

(i) Adequate supply of raw materials for processing;

(ii) Cash to pay for wages, power and other costs;

(iii) Creating a stock of finished goods to feed the market demand

regularly; and,

(iv) The ability to grant credit to its customers.

All these require working capital. Working capital is thus like the

lifeblood of a business. The business will not be able to carry on day-

Submitted By: Priya Kumari 3

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

to-day activities without the availability of adequate working capital.

OBJECTIVE OF THE STUDY

The study was done primarily with the following objective in

mind.

 To know the various types of financial statements analysis

provided by banks.

 To analyze in detail the procedure of assessment of working

capital finance extended by bank.

 To apply these procedure at a practical level with the help of

case studies.

Submitted By: Priya Kumari 4

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

RESEARCH METHODOLOGY
The methodology used in conducting the research work on Bank of

India with major emphasis on its working capital Management

involves the following steps:

Why I have selected Bank Of India only?

I have selected Bank Of India for my summer training because it is

the bank that is growing day by day. It has maximum market share

with comparison to its competitors. And it is the bank that gives

highest business.

Defining the problem and deciding research objectives:

Defining the objective is the most important part of any study process.

Proper defining of the problem is a must for proceeding further with

the research process. The type of study to be carried out, the

questions to be raised, the sampling procedure to be followed, and the

data to be collected, all depends on a correct understanding of the

problem. Also, by clearly focusing on the real problem, the research

job can be simplified and completed with the minimum cost, effort

and data.

Identified problem or the objectives of the research discussed in

the report are:

1. Developing the research plan:

In this a plan was developed about how to collect the require

information i.e. whom to contact for gathering the relevant data. Data

Submitted By: Priya Kumari 5

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

is the foundation of all research. It is the raw material with which a

researcher functions.

Therefore, it requires great care to select the sources of data. Data, or

facts, may be obtained from several sources. Data sources can either

be primary or secondary.

A. Secondary data:

The sources from which secondary data was collected:

 Press releases of the bank.

 Newsletters and In-house journals.

 Brochures and detailed descriptive leaflets

 Magazines like Business World, Outlook, Auto India, etc.

 Websites such as www.bankofindia.com, www.google.com.

These were the sources from which secondary data has been

gathered. Most of the information presented in this report was

extracted from the above data sources.

B. Primary data:

Collection of primary data was conducted by visiting the people

personally for the preparation of the report.

2. Research approach:

It means the way by which the information was collected. Visiting the

various places of Patna, getting the questionnaire filled by different

individuals.

Submitted By: Priya Kumari 6

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

Beside this, frequent visit to the showrooms of the bank was of great

help to conduct the analysis and research work.

3. Contact methods:

Instrument or Data collected Forms: It is the method by which data is

gathered. It could be done through various instruments like

questionnaires, observations, getting information from the staff

members of the agency, contacting to the motor mechanics was

sufficient enough to conduct the study.

4. Collection of Information:

The primary information was collected by face-to-face and direct

interviews with the peoples and the customers. They provide the

relevant information regarding the profile of the bank as compared to

the other bank in the Indian market. Most employees suggested

visiting bank’s web site, as it was not possible for them to spare time

from their busy schedules.

The secondary sources of information were various web sites of the

companies, newspapers & magazines such as the times of India, The

Hindustan Times, Business world, Auto India, etc.

5. Analyzing the information:

The data collected was carefully analyzed. The research and analysis

of the information has been done on the basis of various sales and

marketing strategies adopted by the bank during its tenure.

6. Reporting and conclusions and recommendations:

Submitted By: Priya Kumari 7

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

This is the most vital part of the work undertaken. After collection and

analysis of data, it was recorded in the form as prescribed. The major

part of the report is the findings. The finding also includes charts,

tables and diagrams etc. The report also mentioned the limitations of

the project undertaken. Then conclusion has been drawn out of the

findings and various recommendations have been given at the end of

the report. Certain tables on the basis of which the findings were

made have been included in the appendices section followed by the

bibliography.

Submitted By: Priya Kumari 8

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

SCOPE OF THE STUDY

Bank Of India is spreading its wings and widening its business

horizon to reach and serve customers at new centers in the year

ahead. The bank services are backed by a highly motivated and

technology driven team to achieve customers need, product expertise

and geographic reach.

The study is oriented towards the concept of different brands offered

by Bank Of India and its competitors to its customers. The bank has

endeavored to move fast in providing market solution, which maximize

customer needs and convenience, using multiple delivery channels in

composing the banking network, service centers, lower service cost

and increased efficiency.

BANK PROFILE
Submitted By: Priya Kumari 9
THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

Bank of India (BOI) is commercial bank with headquarters at Bandra

Kurla complex, Mumbai and it is one of the top 5 banks in India.

Founded in 1906, it has been government-owned since nationalisation

in 1969. Bank of India has 5100 branches as on 31 January 2017,

including 56 offices outside India, which includes five subsidiaries,

five representative offices, and one joint venture.[3] BoI is a founder

member of SWIFT (Society for Worldwide Inter Bank Financial

Telecommunications), which facilitates provision of cost-effective

financial processing and communication services

HISTORY

Bank of India was founded on 7th September, 1906 by a group of

eminent businessmen from Mumbai. The Bank was under private

ownership and control till July 1969 when it was nationalized along

with 13 other banks.

Beginning with one office in Mumbai, with a paid-up capital of Rs.50

lakh and 50 employees, the Bank has made a rapid growth over the

years and blossomed into a mighty institution with a strong national

presence and sizable international operations. In business volume, the

Bank occupies a premier position among the nationalised banks.

The Bank has over 5000 branches in India spread over all states/

union territories including specialized branches. These branches are

controlled through 54 Zonal Offices and 8 NBG Offices. There are 60

branches/ offices and 5 Subsidaries and 1 joint venture abroad.

Submitted By: Priya Kumari 10

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

The Bank came out with its maiden public issue in 1997 and follow on

Qualified Institutions Placement in February 2008.

While firmly adhering to a policy of prudence and caution, the Bank

has been in the forefront of introducing various innovative services

and systems. Business has been conducted with the successful blend

of traditional values and ethics and the most modern infrastructure.

The Bank has been the first among the nationalised banks to

establish a fully computerised branch and ATM facility at the

Mahalaxmi Branch at Mumbai way back in 1989. The Bank is also a

Founder Member of SWIFT in India. It pioneered the introduction of

the Health Code System in 1982, for evaluating/ rating its credit

portfolio.

Presently Bank has overseas presence in 22 foreign countries spread

over 5 continents – with 60 offices including 5 Subsidiaries, 5

Representative Offices and 1 Joint Venture, at key banking and

financial centres viz., Tokyo, Singapore, Hong Kong, London, Paris

and New York.

BUSINESS OBJECTIVES

Vision

Submitted By: Priya Kumari 11

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

To be the leading provider of financial services in India and a major

global bank.

Mission

 We will leverage our people, technology, speed and financial

capital to: be the banker of first choice for our customers by

delivering high quality, world-class service.

 Expand the frontiers of our business globally.

 Play a proactive role in the full realisation of India’s potential.

 maintain a healthy financial profile and diversify our earnings

across businesses and

geographies.

 Maintain high standards of governance and ethics.

 Contribute positively to the various countries and markets in

which we operate.

 Create value for our stakeholders.

Product and Services

Service and banking of Bank Of India categorized in to personal

banking, business banking and NRI banking services.

Personal banking- Deposit in form of saving, recurring, term deposit,

senior citizen deposit and children depository account are there for

individual customer can also avail of their housing, automobile, farm

equipment, business or personal loan scheme. Personal client can

Submitted By: Priya Kumari 12

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

also invest in mutual funds and participate in stock trading through

Bank of India.

COMPETITOR

The main competitor of is Bank Of India is SBI because this bank is

totally taken by government after this bank bank of india is the main

competitor of bank of india. There are different types of segment

operation semment, investment and services, demat and NRI services.

The competitor from the operation segment are State Bank of

India(SBI), Axis, Housing Development and Financial corporation(BOI)

etc.

State Bank of India is the largest bank in India. It is also, measured

by the number of branch offices and employees, the second largest

bank in the world.[citation needed] The bank traces its ancestry back

through the Imperial Bank of India to the founding in 1806 of the

Bank of Calcutta, making it the oldest commercial bank in the Indian

Submitted By: Priya Kumari 13

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

Subcontinent. The State Bank Group, with over 16000 branches , has

the largest branch network in India. It has a market share among

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

SBI accounts for almost one-fifth of the nation’s loans.There are some

other banks which gives challenging some how in the banking and

service sectorthey are:

 Allahabad Bank
 Andhra Bank
 Bank of Baroda
 Bank of India
 BANK OF INDIA
 Canara Bank
 Central Bank of India
 Corporation Bank
 Dena Bank
 IDBI Bank
 Indian Bank
 Indian Overseas Bank
 Oriental Bank of Commerce
 Punjab & Sind Bank
 Punjab National Bank
 Syndicate Bank
 UCO Bank
 Union Bank of India
 United Bank of India
 Vijaya Bank

Environment

Submitted By: Priya Kumari 14

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

An employer the bank extends a lot of authority along with justified

accountability to you. The working culture is very collaborative in

nature. It can be owed to the fact that the bank is highly segmented

with a lot of overlapping and mostly distinct roles and responsibility.

Bank Of India has established itself as a one stop solution (Universal

Bank) for all financial need of individuals and institutions alike. The

credit for the same can be attributed to its vast network, probably the

largest among private sector banks.This makes the life of an employee

a lot easier, especially for those who face the external customers. You

do not have to justify your organization, it is only the product that has

to be pitched. As far as employee benefits are concerned, BANK OF

INDIA offers a lot of financial benefits ranging from your family health

insurance to your kids school donations. The organization is sensitive

to the needs of its employees as this quality is one of the building

blocks (DNA) of the organizational culture.  The organization will be

giving you enough flexibility to innovate and come-up with new ideas.

It will also exhibit its in terms of well laid systems, processes and

infrastructure. It will extend a fast track growth for those with

extraordinary talent at the same time offer stability to those who are

able to deliver satisfactorily.Overall, I would say it’s a lifetime

experience to work with such a behemoth organization. It might not

be the best paymaster but it definitely will impress you with its

capability as the head master (Principal) of banking industry.there are

huge competition between the eployee to achieve theo goal.

TECHNOLOGY

Submitted By: Priya Kumari 15

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

BOI use many type of advance technological software like Pinnacle 7.0

and Pinnacle 7.016.Among from this software BANK OF INDIA uses

the e-banking, core banking, mobile banking electronic display sy

BANK OF INDIA was using Teradata for its data warehouse.  However,

due to its proprietary hardware, the cost of procurement, upgrades

and administration was soaring. The closed box architecture of

Teradata imposed restrictions on scalability. Secondly, querying and

loading could not happen simultaneously. Queries could only be run

during business hours because the loading of data had to take place

during off-business hours. This meant that the refresh rate of EDW

was delayed, so queries may not reflect the most current data. BANK

OF INDIA was also dependent on Teradata for support and other

activities: The bank was completely tied down to that solution.

These issues compelled BANK OF INDIA to look for more efficient and

flexible solutions. The solution would have to address not only current

issues, but accommodate future growth expectations and business

requirements. BANK OF INDIA evaluated numerous data warehousing

solutions in the pursuit of solving its issues, and developed a shortlist

of alternatives for its migration proof-of-concept: Sybase, SAS and

Netezza. The primary criteria for evaluation was the price-to-

performance ratio where Sybase IQ emerged the clear winner.  During

this rigorous testing, Sybase IQ delivered faster results on

independent hardware and operating systems with minimum

infrastructure. Commending the improvements achieved, Amit Sethi,

Joint General Manager, BANK OF INDIA says, "What impressed us

Submitted By: Priya Kumari 16

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

wasthat even with overall lower costs, we could achieve significantly

better query performanceafter implementing the Sybase enterprise

warehouse solution. "BOI Infotech today launched an enterprise

resource planning (ERP) solution for the small and medium

enterprises.

The ERP package - Orion Advantage - comes bundled with an HP dual

processor Xeon server, Oracle 9i database, Windows 2003 server and

costs about Rs 9.90 lakh and has a 15-user license.

An ERP package helps a manufacturer or any other business

implementing it to manage all the important parts in the bank such as

product planning, parts purchasing, maintaining inventory and

interacting with suppliers and customers.

PRODUCT OF BANK OF INDIA

ACCOUNT & DEPOSITS SERVICE

Submitted By: Priya Kumari 17

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

Banking should be effortless. With BANK OF INDIA, the efforts are

rewarding. No matter what a customer's need and occupational

status, we have a range of solutions that are second to none. Whether

you're employed in a bank and need a simple Savings account or run

your own business and require a robust banking partner, BANK OF

INDIA not only has the perfect solution for you, but also can

recommend products that can augment your planning for the future.

It includes these services: -

Saving accounts.

Current accounts.

Fix deposits.

Demate account.

Safe deposits lockers.

Savings Accounts

These accounts are primarily meant to inculcate a sense of saving for

the future, accumulating funds over a period of time. Whatever

person’s occupation, bank have confident that person will find the

perfect banking solution. There some saving accounts like: - 

Regular Saving Account:

 An easy-to-operate savings account that allows you to issue cheques,

draw Demand Drafts and withdraw cash. Check up on your balances

from the comfort of your home or office through Net Banking, Phone

Banking and Mobile Banking. If you need money urgently then you

can take money from the ATM machine. There are 1977 ATM centers

across the country.

Submitted By: Priya Kumari 18

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

Saving plus Account

Introducing the best banking option for you with BANK OF INDIA

Savings plus Account. Now you can get access to some of the finest

banking facilities with BANK OF INDIA's Savings plus Account. All you

have to do is maintain an Average Quarterly Balance of Rs. 10,000/-.

Saving Max Account

Welcome to a world of convenience. Presenting Savings Max account,

loaded with maximum benefits to make your banking experience a

pleasure. By maintaining an average quarterly balance of just Rs.

25,000/- you get a host of premium services from BANK OF INDIA

absolutely free.

Senior Citizen Account

BANK OF INDIA appreciates your needs and endeavors, which is why,

they present an account especially dedicated to customer, which like a

dutiful child will help you fulfill your needs in the best manner

possible.

No frills Account

In an effort to make banking simpler and more accessible for

customers, bank has introduced the 'No Frills' Savings Account,

which offers customer all the basic banking facilities. Customer can

even avail of services like Net Banking, Mobile banking free of cost. In

this customer can put Zero Initial Pay-in and a Zero Balance account

Institutional saving accounts

Submitted By: Priya Kumari 19

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

 A specially designed account that offers twin benefits of a savings as

well as a current account. Customer’s funds continue to earn you

interest while he enjoys hassle-free banking & a host of other features.

All this and more in a Zero Balance account.

Salary Accounts

In this account customer can get salary from where he/she doing

such job and organization or bank at where the customer of the bank

in doing job deposit their salary in to the salary account a person can

get salary.

There are various kinds of saving accounts in the BANK OF INDIA

like: -

Pay roll account.

Classic salary account.

Regular salary account.

Premium salary account.

Defense salary account.

No frills salary account.

Reimbursement salary account.

Kid’s advantage account

Start saving for your child today and secure his/her future a sentence

tells by the BANK OF INDIA. Open a Savings Account and transfer

money every month into customer’s Kids Advantage Account and

watch the savings grow as customer’s child grows. The accumulated

Submitted By: Priya Kumari 20

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

savings in the Kids Advantage Account can over the years help in

meeting customer child's needs.

Main features and benefits of this account are as follow:-

Current accounts

BANK OF INDIA Current Account gives the power of inter-city banking

with a single account and access to more than cities. From special

cheques that get treated at par with local ones in any city where

branch, faster collection of outstation cheques (payable at branch

locations), free account to account funds transfer between BANK OF

INDIA accounts to Free inter-city clearing of up to 100 lakhs per

month, bank’s  priority services have become the benchmark for

banking efficiency.

Now, with an BANK OF INDIA Current Account, experience the

freedom of multi-city banking. Person can have the power of multi-

location access to his account from any of our 761 branches in 327

cities. Not only that, he can do most of his banking transactions from

the comfort of his office or home without stepping out.

There are various kinds of current account in this bank like: - 

Plus current account

BANK OF INDIA plus Current Account gives the power of inter-city

banking with a single account and access to more than cities. Plus

Current Account requires maintaining an average quarterly balance of

Rs. 25000.

Trade current account

Submitted By: Priya Kumari 21

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

In today's changing business requirements, you need to transfer

funds across cities, and time is of the essence. BANK OF INDIA Trade

Current Account gives power of inter-city banking with a single

account.

 From special cheques that get treated at par with local ones in any

city where bank have a branch, to free account to account funds

transfer between BANK OF INDIA accounts, to free inter-city clearing

of up to 50 lakhs per month, bank’s priority services have become the

benchmark for banking efficiency. Trade Current Account requires

maintaining an average quarterly balance of Rs. 40,000.

Premium current account

Business needs a partner who can manage finances while concentrate

on growing business. Form this account customer can avail benefits of

inter-city banking account that requires an average quarterly balance

of only Rs. 25,000, offers Payable-At-Par cheque book facility & FREE

inter-city clearing transactions across our network up to Rs.25 Lacs

per month.

 A Current Account with the benefits of accessing account from a large

network of branches, and through direct access channels - the phone,

mobile, Internet and through the ATM.

Regular current account

A Current account is ideal for carrying out day-to-day business

transactions. With the BANK OF INDIA Regular Current Account,

customer can access account anytime, anywhere, pay using payable

Submitted By: Priya Kumari 22

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

at par cheques or deposit cheque at any BANK OF INDIA branch. It

also facilitates FREE NEFT transactions & FREE RTGS collections for

faster collections in account. Regular Current Account requires to

maintain an average quarterly balance of only Rs. 10,000.

With a vast network of branches in cities all over the country, and

access to a multitude of ATM's, customer can keep track of all

transactions anytime. 

Reimbursement Current Account

No more paperwork, no more receipts to keep track of - a hassle-free

account that allows deposit the reimbursements receive from

bank/organization on a monthly basis.

To open this account a person has to follow these processes:

Procure an Account Opening Document (AOD) from BANK OF INDIA.

(If person has just joined, first request to bank to open up a Salary

Account for particular person).

Mention Salary Account number and Debit Card number on the AOD

so that Debit card can be linked to both, Salary Account as well as

new Reimbursement Account.

Request bank to directly credit cash payments to the Reimbursement

Account.

 RFC – Domestic Account

Full name of this account is Resident foreign currency account.

Have you accumulated foreign currency from travelling abroad

frequently? Received gifts from relatives in foreign currency? Or

Submitted By: Priya Kumari 23

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

earned it by any other means as approved by the Reserve Bank of

India?

If so, open Resident Foreign Currency Domestic Account and manage

foreign currency efficiently. Person can choose to set up your account

either in US Dollar, Great Britain Pound or Euro.

To open this accounts a person as to follow this process: -

Choose the currency in which person wish to operate. Open account

with an initial amount as per the following-US Dollar = 250 Great

Britain Pound = 200 Euro = 250 and maintain an Average Quarterly

Balance of the same amount.

Fix deposits service

Long-term investments form the chunk of everybody's future plans.

An alternative to simply applying for loans, fixed deposits allow to

borrow from own funds for a limited period, thus fulfilling needs as

well as keeping savings secure.

People can invest his/her money into either in security market or gold

or mutual fund or into a fix deposits. People always go to that way

where he/she can get more benefits and minimum risks. So, for this

purpose he has a better chance to deposits money in to the fix

deposit.

If people believe in long-term investments and wish to earn higher

interests on his/her savings, now is the time to invest money in BANK

OF INDIA Fixed Deposit. Get up to 9.75% on BANK OF INDIA Fixed

Deposit with an additional 0.50% for Senior Citizens. What's more NO

Submitted By: Priya Kumari 24

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

PENALTY if withdraw part of the FD in times of need. Flexibility,

Security and High Returns all bundled into one offering. 

Regular fix deposit

As per the rules and regulation of the bank a person can deposit their

money in to a fix deposit in the bank and can get the benefits of these

facilities.

Five year tax saving fix deposit

In 2006, it was announced for the first time that Bank fixed deposits

booked by an Individual/HUF for 5 years & up to Rs. 1,00,000/- will

be allowed exemption under Sec 80C of the Income Tax Act,1961

subject to necessary declarations taken from the Customer.

Supper saver facility

Customer can enjoy a high rate of interest along with the liquidity of a

Savings Account by opting for a Super Saver Facility on his or her 

savings account. Avail of an overdraft facility of up to 75% of the value

of his or her Fixed Deposit. 

Sweep-in facility

Do you wish to avoid taking overdrafts, and still take advantage of

your Fixed Deposits? Then what you need is a Sweep-In Facility on

savings account. Link Fixed Deposit to Savings or Current Account

and use it to fall back on in case of emergencies. A deficit in Savings

or Current Account is taken care of by using up an exact value from

Fixed Deposit. Since deposits are broken down in units of Re 1/-,

customer will lose interest only for the actual amount that has been

withdrawn.

Submitted By: Priya Kumari 25

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

Demat account service

Nowadays share market is becoming is the main occupation of the

person. So to avoid faulty processes demat account is really most

important for the share market and for the safety of shares it is most

important. 

BANK OF INDIA Demat services offers a secure and convenient way to

keep track of securities and investments, over a period of time,

without the hassle of handling physical documents that get mutilated

or lost in transit.

BANK OF INDIA is Depository participant both with -National

Securities Depositories Limited (NSDL) and Central Depository

Services Limited (CDSL). 

Safe deposit locker

A Safe Deposit Locker with BANK OF INDIA is the solution to person’s

fear. Located at select branches in cities all over the country, bank’s

lockers ensure the safe keeping of valuables.

Eligibility

An individual (not minor), firms, limited bank, associations, clubs,

trusts, societies, etc may hire a locker.

Advantages of safe deposit locker in BANK OF INDIA

Wide Availability.

Lockers available in various sizes. i.e. Small, Medium, Large and Extra

Large with varying rents.

Lockers are rented out for a minimum period of one year. Rent is

payable in advance.

Submitted By: Priya Kumari 26

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

No deposits are required to avail a locker. Just open an account and

get the locker facility.

There is a nominal annual charge, which depends on the size of the

locker and the centre in which the branch is located.

Nomination for Safe Deposit Locker

The Lockers and their contents can be nominated to people near and

dear to you.

Nomination facility is available to individual hirer of Safe Deposit

Locker.

In the case of a sole hirer of a safe deposit locker, nomination can be

made in favor of only one individual.

Where the safe deposit locker is hired in the name of a minor, the

nomination shall be made by a person lawfully entitled to act on

behalf of the minor.

Terms & Conditions

For obtaining a Locker at BANK OF INDIA you must be an account

holder with Bank.

Lockers can be allotted individually as well as jointly.

The Locker holder is permitted to add or delete names from the list of

persons who can operate the Locker and can have access to it.

Loss of Key is to be immediately informed to the concerned Branch.

Submitted By: Priya Kumari 27

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

LOAN SERVICES
In today’s competitive world everything happens only with the help of

money or through the money every person need money. But some

time a person has not cash on hand at that time he needs lone either

from any friend or from any financial institute. Lone dose not mean

that only lower class person needs it but also upper class person it is

needed.

As per the requirement of the every person there are much type of

loans are there in the BANK OF INDIA. 

Personal loan

A person has so many dreams but some time due to scarcity of money

a dream can’t be satisfy. So, here one solution for that person this is

personal loan. From this he/she can fulfill their needs or requirement.

It can be anything either a dream of vacation or son/daughter’s

admission to college or any wedding, so personal loan can be helpful

in this entire requirement.

 As person ordered in the hotel for tea or coffee and it is immediately

came fast, same over here any person want to get a personal loan with

the nominal documents he can get the loan.

Home loan

BANK OF INDIA brings, BOI home loans to doorstep. With over 30

years of experience, a dedicated team of experts and a complete

Submitted By: Priya Kumari 28

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

package to meet all housing finance needs, BOI Home Loans, help

people realize dream.

Vehicles loan

Nowadays the life is being so fast, time value is becoming more

important so to reach at the destination of any business related

occasion or for a boy to reach college or any where at the fix time

there are so many requirement of vehicles. But every people have no

capacity to purchase vehicles with cash so for that here in the BANK

OF INDIA vehicles loan is available. There are many types of vehicles

loan.

Types of vehicles loan:

Two wheeler loans.

New car loan.

Used car loan.

Tractor loan (for agree culture business).

Commercial vehicle loan.

 So, as per the requirement of the person there are these types of

loans are available this are at the chip rate and hassel free from more

documentation and other procedure. And commercial businessman

can get the benefits of the commercial vehicles loans. Thus as per the

need of different people there are vehicle loans available. And also

terms and condition are different as per the requirement. 

Submitted By: Priya Kumari 29

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

Express loan plus

Bank offer Express Loans Plus at person Doorstep to help fulfill all

his/her needs. The procedure is simple, documentation is minimal

and approval is quick. It is helpful to person in repairing of house,

School admission or also in the family holiday. 

Gold loan

With BANK OF INDIA's Gold Loan, person can get an instant loan

against gold jewellery and ornaments. The procedure is simple,

documentation is minimal and approval is quick. A person can get

70% loan on the value of the gold jewellery and ornaments.There is

also availability of the overdraft on the gold jewellery. With this a

customer can get free additional services like free personalized cheque

book, free international debit card, and free net banking phone

banking services.  

Educational loan

Nowadays important of education becoming very high. ASs it

important becoming high it is becoming costly. So in the higher

education some time people can not effort a high price at a same time.

So, there is education loan is also available for the student.

 A person can get loan up to 10 lakhs to study in India and 20 lakhs if

he wants to study in abroad. Loan available up to tenure of 7 years

including moratorium period.

Loans disbursed directly to the educational institution. It is released

as per fee schedules of institutes. Exclusive Telegraphic Transfer

Submitted By: Priya Kumari 30

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

facility available for courses abroad. Loans available for short

duration/ job oriented courses also.

Loan against security

With BANK OF INDIA's Loan against Securities, person can get an

overdraft against securities like Equity Shares, Mutual Fund

Units(Equity, Debt, FMPs), Gold Exchange Traded

Fund(ETF),NABARD's Bhavishya Nirman Bonds, Policies issued by

LIC & Select Private Insurance Companies, NSC, KVP, UTI Bonds

(ARS & US64 Bonds) and Gold Deposit Certificates, while still

retaining ownership. And the best part is that he can continue to

enjoy all his shareholder benefits such as rights, dividends and

bonuses Loan available to NRIs against Shares, Mutual Funds (equity,

Debt, FMPs), US64 Bonds, Insurance Policies, NSC, and KVP. 

Loan against property

BANK OF INDIA brings Loan Against Property (LAP). Person can now

take a loan against residential or commercial property, to expand his

business, plan a dream wedding, and fund his child's education and

much more. He can depend on bank to meet all his business

requirements even to purchase a new shop or office for business. Loan

to purchase Commercial Property (LCP) is a specially designed product

to help person expand his business without reducing the capital from

his business.

Submitted By: Priya Kumari 31

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

These are loans services providing by BANK OF INDIA which are very

hassle free and really benefits for most of customer and most of

customer are satisfied by the loan services providing by the bank.

CARD SERVICES
In today’s competitive and fast time card services providing by the

banks are really very important to every person and every business

needs or to take meal in to the hotel or to purchase jewellery from the

jewellery shops cards are playing good role in the banking sectors.

      Bank ranges of Cards help to meet financial objectives. So

whether persons are looking to add to his buying power, conducting

cashless shopping, or budgeting his expenditure, he will find a card

that suits him.

Credit cards

  A person wants many things like, a trip to Bali, a diamond ring for

wife's dreams. Some dreams can't wait. If there's something person

has always wanted. If a person wanted fulfill his wants he can get

benefits from the BANK OF INDIA’s credit cards facilities.    Different

types of credit

Classic cards

Silver Credit Card.

Value plus Credit Card.

Health Plus Credit Card.

Premium Cards:

Submitted By: Priya Kumari 32

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

Gold Credit Card

Titanium Credit Card

Woman's Gold Card

Platinum Plus Credit Card

Visa Signature Credit Card

World MasterCard

Commercial Cards

Corporate Credit Card

Debit card

 BANK OF INDIA Debit Cards give person complete and instant access

to the money in his accounts without the risk or hassle of carrying

cash.

Types of debit card: -

Classic card

Easy shop international Debit card.

Premium card

Easy shop gold Debit card.

Specialized card

Easy Shop International Business Debit Card.

Easy Shop Woman's Advantage Debit Card.

Easy Shop NRO Debit Card.

Kisan Card.

Submitted By: Priya Kumari 33

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

Prepaid card

Besides offering convenience, Prepaid Cards have been tailored to

answer travel and gifting needs.

ForexPlus Cards 

Prepaid Travel Card.

Gift Plus Cards

Prepaid Gift Card.

Food Plus Cards

Prepaid Food Plus card.

Money Plus Card

The Corporate Payment card

PAYMENT SERVICE

Nowadays life of a person become very stressful and he/she becoming

busy with their own business, but they have to payment for something

so for that reason bank’s payment services become started.With BANK

OF INDIA's payment services, person can bid goodbye to queues and

paper work. Bank’s range of payment options make it easy for pay for

a variety of utilities and services.

Verified By Visa

Do you want to be worry free for your online purchases. Now you can

shop securely online with your existing Visa Debit/Credit card. 

Net Safe

Submitted By: Priya Kumari 34

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

Now shop online without revealing your BANK OF INDIA Credit Card

number. What more, you can now use your BANK OF INDIA Debit

Card also for online purchases. 

Merchant Services

Accept all Visa, MasterCard, credit and Debit cards at your outlets

through state of the art POS Machines or through your website and

experience hassle free payment acceptance. 

Prepaid Mobile Refill

If you are an BANK OF INDIA Account holder, you can now recharge

your Prepaid Mobile Phone with this service. 

Bill Pay

Pay your telephone, electricity and mobile phone bills at your

convenience. Through the Internet, ATMs, your mobile phone and

telephone - with Bill Pay, our comprehensive bill payments solution. 

Visa Bill Pay

Pay your utility bills from the comfort of your home! Pay using your

BANK OF INDIA Visa credit card and forget long queue and late

payments forever 

Pay Now

Use your BANK OF INDIA Credit Card to pay your utility bills online,

make subscriptions and donations; no registration required. Enjoy

credit free period and reward points as per your credit card features. 

Submitted By: Priya Kumari 35

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

Direct Pay

Shop or Pay bills online without cash or card. Debit your account

directly with our Direct Pay service! 

Visa Money Transfer

Transfer funds to any Visa Card (debit or credit) within India at your

own convenience through BANK OF INDIA's Net Banking facility. 

e-Monies National Electronic Funds Transfer

Transfer funds from your account to other Bank accounts across

India - FREE of cost. 

Online Payment of Excise & Service Tax

Make your Excise and Service Tax payments at your own convenience

through BANK OF INDIA's Net Banking facility.

Religious Offerings

Now donate to your favorite temple easily and securely using BANK

OF INDIA's Net Banking. 

Thus as retail banking service bank providing really good and

beneficial services to their customer and as family member they are

providing good services to every customer either they are came

business related or anything. So for this reason BANK OF INDIA

playing a good role in the customer’s life for their monitory

transaction. 

Submitted By: Priya Kumari 36

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

NRI BANKING

  With a view to attract the savings and other remittance into India

through banking channels from the person of Indian Nationality /

Origin who are residing abroad and bolster the balance of payment

position, the Government of India introduced in 1970 Non-

Resident(External) Account Rules which are governed by the

Exchange Control Regulations.

The funds held in Non-Resident (External) Accounts (NRE Accounts)

qualify for certain benefits like exemptions from taxes in India, free

repatriations facilities, etc. 

Deposit types 

NRI-Banking facilitates the NRI customer to open the following

account types.  

NRE (Non Resident External Accounts)

It can be in the form of Savings, Current or fixed deposits in Indian

rupees. The funds in this account are fully repatriable.

NRO (Non Resident Ordinary Accounts)

It can be in the form of Savings, Current or Fixed Deposits in Indian

Rupees. The funds in this account are not repatriable (only interest

accrued is repatriable). 

Submitted By: Priya Kumari 37

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

FCNR (Foreign Currency Non Resident Accounts)

It can be in the form of fixed Deposits only, in the five major

currencies, namely US Dollars, GBP, DM, Euro, and Japanese Yen.

The funds in this account are fully repatriable

WHOLESALE BANKING

      Wholesale banking is the provision of services by banks to the like

of large corporate clients, mid-sized companies, real estate developers

and investors, international trade finance businesses and institutional

customers, such as pension funds and government entities/agencies.

Also included is banking services offered to other financial

institutions. In essence, wholesale banking services usually involve

high value transactions. Wholesale banking compares with retail

banking, which is the provision of banking services to individuals.

Wholesale banking services

Corporate service

Corporate Banking reflects BANK OF INDIA's strengths in providing

our corporate clients in India, a wide array of commercial,

transactional and electronic banking products. We achieve this

through innovative product development and a well-integrated

approach to relationship management.

Large Corporate

Supply Chain Partners

Agricultural Lending

Submitted By: Priya Kumari 38

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

Small & medium term enterprises

 Bank Of India understands how much of hard work goes into

establishing a successful SME. Bank also understands that business

is anything but "small" and as demanding as ever. And as business

expands and enters new territories and markets, person need to keep

pace with the growing requests that come in, which may lead to

purchasing new, or updating existing plant and equipment, or

employing new staff to cope with the demand. That's why BANK OF

INDIA has assembled products, services, resources and expert advice

to help ensure that your business excels.

The following links will help identify individual needs.

Funded Services.

Non-Funded Services.

Specialized Services.

Value Added Services.

Internet Banking.

Financial institutions & trusts

Banks.

Financial Institutions.

Mutual Funds.

Stock Brokers.

Insurance Companies.

Commodity Businesses.

Trusts.

Submitted By: Priya Kumari 39

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

Government sector

      Bank Of India acts as an active medium between the government

and the customers by means of various services. These services

include:

Tax Collection wherein customers can directly pay their taxes like

Direct taxes, Indirect taxes and Sales Tax collections at their local

Bank Of India.

E-Ticketing - Helps the customer by providing him a direct access to

book a Railway Ticket online and get it home delivered.

Opening of L/C's is done by the bank on behalf of Government of

India, Mints and Presses, thus facilitating imports for the

Government.

Collection of levies and taxes on behalf of Municipal Corporations i.e.

Kalyan -Dombivli Municipal Corporation, is undertaken by the Bank.

Collection of stamp duty is done via franking mode in the state's of

Maharashtra & Gujarat.

The Stamp Duty Franking Facility is available at following branches in

Maharashtra Fort, Chembur, Lower Parel, Mira Road, Thane (Talao

Pali), Panvel, Ratnagiri, Pune(FC Road), Kolhapur, Nagpur, Pimpri.

The Stamp Duty Franking Facility is available at following branches in

Gujarat

Disbursement of Pension to retired Employees of Central Govt and

Defence is directly done by Bank Of India along with the disbursement

of pension to the members of EPFO (Employees Provident Fund

Organisation).

Submitted By: Priya Kumari 40

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

THEORATICAL BACKGRAOUND
Working Capital

The working capital is the life-blood and nerve centre of a business

firm. The importance of working capital in any industry needs no

special emphasis. No business can run effectively without a sufficient

quantity of working capital. It is crucial to retain right level of working

capital. Working capital management is one of the most important

functions of corporate management. A business enterprise with ample

working capital is always in a position to avail advantages of any

favorable opportunity either to buy raw materials or to implement a

special order or to wait for enhanced market status. Working capital

can be utilized for the payment of lease, employee's payroll, and pretty

much any other operating costs that are involved in the everyday life

of business. Even very successful business owners may need working

capital funds when the unexpected circumstances arise. The overall

success of the bank depends upon its working capital position. So, it

should be handled properly because it shows the efficiency and

financial strength of bank.

Working capital management is highly important in firms as it is

used to generate further returns for the stakeholders. When working

capital is managed improperly, allocating more than enough of it will

render management non-efficient and reduce the benefits of short

term investments. On the other hand, if working capital is too low, the

bank may miss a lot of profitable investment opportunities or suffer

short term liquidity crisis, leading to degradation of bank credit, as it

Submitted By: Priya Kumari 41

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

cannot respond effectively to temporary capital requirements. Efficient

management of working capital means management of various

components of working capital in such a way that an adequate

amount of working capital is maintained for smooth running of a firm

and for fulfillment of objectives of liquidity and profitability. But, it is

very difficult for the management too to estimate working capital

properly because, amount of working capital varies across firms over

the periods depending upon the nature of the business, nature of raw

material used, process technology used, nature of finished goods,

degree of competition in the market, scale of operation, credit policy

etc. Therefore, a significant amount of fund is required to invest

permanently in the form of different current assets.

Keeping in view the pragmatic importance of working capital

management in finance, an attempt is made in this study to look into

the working capital management of seven associates of State Bank of

India.

The specific purposes of the study are:

To examine the efficiency of working capital management practices of

state Bank of India’ associates.

To test how fast the banks have been able to improve their respective

level of efficiency in working capital management with respect to a

targeted level (average among the banks).

Capital required for a business can be classified under two main

categories via,

Submitted By: Priya Kumari 42

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

1) Fixed Capital

2) Working Capital

Every business needs funds for two purposes for its establishment

and to carry out its day- to-day operations. Long terms funds are

required to create production facilities through purchase of fixed

assets such as P&M, land, building, furniture, etc. Investments in

these assets represent that part of firm’s capital which is blocked on

permanent or fixed basis and is called fixed capital. Funds are also

needed for short-term purposes for the purchase of raw material,

payment of wages and other day – to- day expenses etc. These funds

are known as working capital. In simple words, working capital refers

to that part of the firm’s capital which is required for financing short-

term or current assets such as cash, marketable securities, debtors &

inventories. Funds, thus, invested in current assts keep revolving fast

and are being constantly converted in to cash and this cash flows out

again in exchange for other current assets. Hence, it is also known as

revolving or circulating capital or short term capital.

Submitted By: Priya Kumari 43

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

CONCEPT OF WORKING CAPITAL

There are two concepts of working capital:

1. Gross working capital

2. Net working capital

The gross working capital is the capital invested in the total current

assets of the enterprises current assets are those Assets which can

convert in to cash within a short period normally one accounting year.

CONSTITUENTS OF CURRENT ASSETS

1) Cash in hand and cash at bank

2) Bills receivables

3) Sundry debtors

4) Short term loans and advances.

5) Inventories of stock as:

 Raw material

 Work in process

 Stores and spares

 Finished goods

6. Temporary investment of surplus funds.

7. Prepaid expenses

8. Accrued incomes.

9. Marketable securities.

Submitted By: Priya Kumari 44

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

In a narrow sense, the term working capital refers to the net

working. Net working capital is the excess of current assets over

current liability, or, say:

NET WORKING CAPITAL = CURRENT ASSETS – CURRENT

LIABILITIES.

Net working capital can be positive or negative. When the current

assets exceeds the current liabilities are more than the current assets.

Current liabilities are those liabilities, which are intended to be paid

in the ordinary course of business within a short period of normally

one accounting year out of the current assts or the income business.

CONSTITUENTS OF CURRENT LIABILITIES

1. Accrued or outstanding expenses.

2. Short term loans, advances and deposits.

3. Dividends payable.

4. Bank overdraft.

5. Provision for taxation , if it does not amt. to app. Of profit.

6. Bills payable.

7. Sundry creditors.

The gross working capital concept is financial or going concern

concept whereas net working capital is an accounting concept of

working capital. Both the concepts have their own merits.

The gross concept is sometimes preferred to the concept of working

capital for the following reasons:

Submitted By: Priya Kumari 45

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

1. It enables the enterprise to provide correct amount of working

capital at correct time.

2. Every management is more interested in total current assets with

which it has to operate then the source from where it is made

available.

3. It take into consideration of the fact every increase in the funds of

the enterprise would increase its working capital.

4. This concept is also useful in determining the rate of return on

investments in working capital. The net working capital concept,

however, is also important for following reasons:

 It is qualitative concept, which indicates the firm’s ability to

meet to its operating expenses and short-term liabilities.

 IT indicates the margin of protection available to the short term

creditors.

 It is an indicator of the financial soundness of enterprises.

 It suggests the need of financing a part of working capital

requirement out of the permanent sources of funds.

CLASSIFICATION OF WORKING CAPITAL:-

Working capital may be classified in to ways:

On the basis of concept.

On the basis of time.

On the basis of concept working capital can be classified as gross

working capital and net working capital. On the basis of time, working

capital may be classified as:

Submitted By: Priya Kumari 46

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

 Permanent or fixed working capital.

 Temporary or variable working capital

PERMANENT OR FIXED WORKING CAPITAL:-

Permanent or fixed working capital is minimum amount which is

required to ensure effective utilization of fixed facilities and for

maintaining the circulation of current assets. Every firm has to

maintain a minimum level of raw material, work- in-process, finished

goods and cash balance. This minimum level of current assts is called

permanent or fixed working capital as this part of working is

permanently blocked in current assets.

As the business grow the requirements of working capital also

increases due to increase in current assets.

TEMPORARY OR VARIABLE WORKING CAPITAL:-

Temporary or variable working capital is the amount of working

capital which is required to meet the seasonal demands and some

special exigencies. Variable working capital can further be classified

as seasonal working capital and special working capital. The capital

required to meet the seasonal need of the enterprise is called seasonal

working capital.

Special working capital is that part of working capital which is

required to meet special exigencies such as launching of extensive

marketing for conducting research, etc.

Submitted By: Priya Kumari 47

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

Temporary working capital differs from permanent working capital in

the sense that is required for short periods and cannot be

permanently employed gainfully in the business.

IMPORTANCE OR ADVANTAGE OF ADEQUATE WORKING

CAPITAL:-

 SOLVENCY OF THE BUSINESS: Adequate working capital helps in

maintaining the solvency of the business by providing uninterrupted

of production.

 Goodwill: Sufficient amount of working capital enables a firm to

make prompt payments and makes and maintain the good will.

 Easy loans: Adequate working capital leads to high solvency and

credit standing can arrange loans from banks and other on easy and

favorable terms.

 Cash Discounts: Adequate working capital also enables a concern to

avail cash discounts on the purchases and hence reduces cost.

 Regular Supply of Raw Material: Sufficient working capital ensures

regular supply of raw material and continuous production.

 Regular Payment Of Salaries, Wages And Other Day TO Day

Commitments: It leads to the satisfaction of the employees and raises

the morale of its employees, increases their efficiency, reduces

wastage and costs and enhances production and profits.

 Exploitation Of Favorable Market Conditions: If a firm is having

adequate working capital then it can exploit the favorable market

Submitted By: Priya Kumari 48

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

conditions such as purchasing its requirements in bulk when the

prices are lower and holdings its inventories for higher prices.

 Ability To Face Crises: A concern can face the situation during the

depression.

 Quick And Regular Return On Investments: Sufficient working

capital enables a concern to pay quick and regular of dividends to its

investors and gains confidence of the investors and can raise more

funds in future.

 High Morale: Adequate working capital brings an environment of

securities, confidence, high morale which results in overall efficiency

in a business.

EXCESS OR INADEQUATE WORKING CAPITAL:-

Every business concern should have adequate amount of working

capital to run its business operations. It should have neither

redundant or excess working capital nor inadequate nor shortages of

working capital. Both excess as well as short working capital positions

are bad for any business. However, it is the inadequate working

capital which is more dangerous from the point of view of the firm.

DISADVANTAGES OF REDUNDANT OR EXCESSIVE WORKING

CAPITAL:-

1. Excessive working capital means ideal funds which earn no profit

for the firm and business cannot earn the required rate of return on

its investments.

2. Redundant working capital leads to unnecessary purchasing and

Submitted By: Priya Kumari 49

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

accumulation of inventories.

3. Excessive working capital implies excessive debtors and defective

credit policy which causes higher incidence of bad debts.

4. It may reduce the overall efficiency of the business.

5. If a firm is having excessive working capital then the relations with

banks and other financial institution may not be maintained.

6. Due to lower rate of return n investments, the values of shares may

also fall.

7. The redundant working capital gives rise to speculative

transactions

DISADVANTAGES OF INADEQUATE WORKING CAPITAL:-

Every business needs some amounts of working capital. The need for

working capital arises due to the time gap between production and

realization of cash from sales. There is an operating cycle involved in

sales and realization of cash. There are time gaps in purchase of raw

material and production; production and sales; and realization of

cash.

Thus working capital is needed for the following purposes:

 For the purpose of raw material, components and spares.

 To pay wages and salaries

 To incur day-to-day expenses and overload costs such as office

expenses.

 To meet the selling costs as packing, advertising, etc.

Submitted By: Priya Kumari 50

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

 To provide credit facilities to the customer.

 To maintain the inventories of the raw material, work-in-progress,

stores and spares and finished stock.

For studying the need of working capital in a business, one has to

study the business under varying circumstances such as a new

concern requires a lot of funds to meet its initial requirements such as

promotion and formation etc. These expenses are called preliminary

expenses and are capitalized. The amount needed for working capital

depends upon the size of the bank and ambitions of its promoters.

Greater the size of the business unit, generally larger will be the

requirements of the working capital.

The requirement of the working capital goes on increasing with the

growth and expensing of the business till it gains maturity. At

maturity the amount of working capital required is called normal

working capital.

FACTORS DETERMINING THE WORKING CAPITAL

REQUIREMENTS:-

1. NATURE OF BUSINESS: The requirements of working is very

limited in public utility undertakings such as electricity, water supply

and railways because they offer cash sale only and supply services not

products, and no funds are tied up in inventories and receivables. On

the other hand the trading and financial firms requires less

investment in fixed assets but have to invest large amt. of working

capital along with fixed investments.

Submitted By: Priya Kumari 51

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

2. SIZE OF THE BUSINESS: Greater the size of the business, greater

is the requirement of working capital.

3. PRODUCTION POLICY: If the policy is to keep production steady

by accumulating inventories it will require higher working capital.

4. LENTH OF PRDUCTION CYCLE: The longer the manufacturing

time the raw material and other supplies have to be carried for a

longer in the process with progressive increment of labor and service

costs before the final product is obtained. So working capital is

directly proportional to the length of the manufacturing process.

5. SEASONALS VARIATIONS: Generally, during the busy season, a

firm requires larger working capital than in slack season.

6. WORKING CAPITAL CYCLE: The speed with which the working

cycle completes one cycle determines the requirements of working

capital. Longer the cycle larger is the requirement of working capital.

7. RATE OF STOCK TURNOVER: There is an inverse co-relationship

between the question of working capital and the velocity or speed with

which the sales are affected. A firm having a high rate of stock

turnover will needs lower amt. of working capital as compared to a

firm having a low rate of turnover.

Submitted By: Priya Kumari 52

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

8. CREDIT POLICY: A concern that purchases its requirements on

credit and sales its product / services on cash requires lesser amt. of

working capital and vice-versa.

9. BUSINESS CYCLE: In period of boom, when the business is

prosperous, there is need for larger amt. of working capital due to rise

in sales, rise in prices, optimistic expansion of business, etc. On the

contrary in time of depression, the business contracts, sales decline,

difficulties are faced in collection from debtor and the firm may have a

large amt. of working capital.

10. RATE OF GROWTH OF BUSINESS: In faster growing concern, we

shall require large amt. of working capital.

11. EARNING CAPACITY AND DIVIDEND POLICY: Some firms have

more earning capacity than other due to quality of their products,

monopoly conditions, etc. Such firms may generate cash profits from

operations and contribute to their working capital. The dividend policy

also affects the requirement of working capital. A firm maintaining a

steady high rate of cash dividend irrespective of its profits needs

working capital than the firm that retains larger part of its profits and

does not pay so high rate of cash dividend.

Submitted By: Priya Kumari 53

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

12. PRICE LEVEL CHANGES: Changes in the price level also affect

the working capital requirements. Generally rise in prices leads to

increase in working capital.

Others factors: These are:

 Operating efficiency.

 Management ability.

 Irregularities of supply.

 Import policy.

 Asset structure.

 Importance of labor.

 Banking facilities, etc.

MANAGEMENT OF WORKING CAPITAL:-

Management of working capital is concerned with the problem that

arises in attempting to manage the current assets, current liabilities.

The basic goal of working capital management is to manage the

current assets and current liabilities of a firm in such a way that a

satisfactory level of working capital is maintained, i.e. it is neither

adequate nor excessive as both the situations are bad for any firm.

There should be no shortage of funds and also no working capital

should be ideal. WORKING CAPITALMANAGEMENT POLICES of a firm

has a great on its probability, liquidity and structural health of the

organization. So working capital management is three dimensional in

nature as

Submitted By: Priya Kumari 54

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

1. It concerned with the formulation of policies with regard to

profitability, liquidity and risk.

2. It is concerned with the decision about the composition and level of

current assets.

3. It is concerned with the decision about the composition and level of

current liabilities.

Submitted By: Priya Kumari 55

 THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

ANALYSIS OF FINDINGS
PROFIT LOSS ACCOUNT

  Mar ' 20 Mar ' 19 Mar ' 18 Mar ' 17 Mar ' 16
Income
Operating income 32,369.69 32,747.36 38,250.39 39,467.92 28,457.13
Expenses
Personnel expenses 2,816.93 1,925.79 1,971.70 2,078.90 1,616.75
Selling expenses 305.79 236.28 669.21 1,750.60 1,741.63
Administrative
expenses 4,909.00 7,440.42 7,475.63 6,447.32 4,946.69
Expenses capitalized - - - - -
Cost of sales 8,031.72 9,602.49 10,116.54 10,276.82 8,305.07
Operating profit 7,380.82 5,552.30 5,407.91 5,706.85 3,793.56
Other recurring
income 7.26 305.36 330.64 65.58 309.17
Adjusted PBDIT 7,388.08 5,857.66 5,738.55 5,772.43 4,102.73
Financial expenses 16,957.15 17,592.57 22,725.93 23,484.24 16,358.50
Depreciation  562.44 619.50 678.60 578.35 544.78
Other write offs - - - - -
Adjusted PBT -10,131.51 -12,354.42 -17,665.98 5,194.08 3,557.95
Tax charges  1,609.33 1,600.78 1,830.51 1,611.73 984.25
Adjusted PAT 5,110.21 3,890.47 3,740.62 4,092.12 2,995.00
Nonrecurring items 41.17 134.52 17.51 65.61 115.22
Reported net profit 5,149.21 4,024.98 3,757.55 4,157.73 3,110.22
Earnings before
appropriation 8,613.59 6,834.63 6,193.87 5,156.00 3,403.66
Equity dividend 1,612.58 1,337.95 1,224.58 1,227.70 901.17
Preference dividend - - - - -

Submitted By: Priya Kumari 56

 THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

  Mar ' 20 Mar ' 19 Mar ' 18 Mar ' 17 Mar ' 16
Dividend tax 202.28 164.04 151.21 149.67 153.10
Retained earnings 6,798.73 5,332.63 4,818.07 3,778.63 2,349.39

CASH FLOW
  Mar ' 20 Mar ' 19 Mar ' 18 Mar ' 17 Mar ' 16
Profit before tax 6,760.70 5,345.32 5,116.97 5,056.10 3,648.04
Net cash flow-operating
activity -6,908.92 1,869.21 -14,188.49 -11,631.15 23,061.95
Net cash used in investing
activity -2,108.82 6,150.73 3,857.88 -17,561.11 -18,362.67
Net cash used in fin.
Activity 4,283.20 1,382.62 1,625.36 29,964.82 15,414.58
Net inc/dec in cash and
equivalent -4,783.61 8,907.13 -8,074.57 683.55 20,081.10
Cash and equivalent begin
of year 38,873.69 29,966.56 38,041.13 37,357.58 17,040.22
Cash and equivalent end of
year 34,090.08 38,873.69 29,966.56 38,041.13 37,121.32

Submitted By: Priya Kumari 57

 THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

BALANCE SHEET
Balance Sheet of BOI ------------------- in Rs. Cr. -------------------
Mar ' 20 Mar ' 19 Mar ' 18 Mar ' 17 Mar ' 16

12 mths 12 mths 12 mths 12 mths 12 mths

Capital and Liabilities:
Total Share Capital 1,151.82 1,114.89 1,463.29 1,462.68 1,249.34
Equity Share Capital 1,151.82 1,114.89 1,113.29 1,112.68 899.34
Share Application Money 0.29 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 350.00 350.00 350.00
Reserves 53,938.82 50,503.48 48,419.73 45,357.53 23,413.92
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Net Worth 55,090.93 51,618.37 49,883.02 46,820.21 24,663.26
Deposits 225,602.11 202,016.60 218,347.82 244,431.05 230,510.19
Borrowings 109,554.28 94,263.57 67,323.69 65,648.43 51,256.03
Total Debt 335,156.39 296,280.17 285,671.51 310,079.48 281,766.22
Other Liabilities & Provisions 15,986.35 15,501.18 43,746.43 42,895.39 38,228.64
Total Liabilities 406,233.67 363,399.72 379,300.96 399,795.08 344,658.12
Mar ' 20 Mar ' 19 Mar ' 18 Mar ' 17 Mar ' 16

12 mths 12 mths 12 mths 12 mths 12 mths

Assets
Cash & Balances with RBI 20,906.97 27,514.29 17,536.33 29,377.53 18,706.88
Balance with Banks, Money at Call 13,183.11 11,359.40 12,430.23 8,663.60 18,414.45
Advances 216,365.90 181,205.60 218,310.85 225,616.08 195,865.60
Investments 134,685.96 120,892.80 103,058.31 111,454.34 91,257.84
Gross Block 9,107.47 7,114.12 7,443.71 7,036.00 6,298.56
Accumulated Depreciation 4,363.21 3,901.43 3,642.09 2,927.11 2,375.14
Net Block 4,744.26 3,212.69 3,801.62 4,108.89 3,923.42
Capital Work In Progress 0.00 0.00 0.00 0.00 189.66
Other Assets 16,347.47 19,214.93 24,163.62 20,574.63 16,300.26
Total Assets 406,233.67 363,399.71 379,300.96 399,795.07 344,658.11

Contingent Liabilities 883,774.77 694,948.84 803,991.92 371,737.36 177,054.18

Bills for collection 47,864.06 38,597.36 36,678.71 29,377.55 22,717.23
Ratio Analysis

Capital Adequacy Ratio:

A measure of a bank's capital. It is expressed as a percentage of a bank's risk
weighted credit exposures. 

Table: 1.1

Submitted By: Priya Kumari 58

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

Mar ' 20 Mar ' 19 Mar ' 18 Mar ' 17 Mar ' 16
11.12 11.56 10.09 11.93 13.21

Figures: 1.1

(Source: Calculated from the annual report of BOI.)

Capital adequacy ratio (CAR) is a ratio of a bank's capital to its risk. National
regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss
and are complying with their statutory Capital requirements. The formula for Capital
Adequacy Ratio is, (Tier 1 Capital + Tier 2 Capital)/Risk Weighted Assets. Capital
adequacy ratio is the ratio which determines the capacity of the bank in terms of
meeting the time liabilities and other risks such as credit risk, operational risk, etc. In
the simplest formulation, a bank's capital is the "cushion" for potential losses, which
protects the bank's depositors or other lenders. Here, in case of BOI we can see that its
CAR showed a sudden dip in the year 2008 but after that it has shown a steady rise for
the next 2 years which is a good sign for its depositors and investors.

Submitted By: Priya Kumari 59

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

Debt-Equity Ratio:
A measure of a bank's financial leverage calculated by dividing its
total liabilities by stockholders' equity. It indicates what proportion of
equity and debt the bank is using to finance its assets.
Table: 1.2

Mar ' 20 Mar ' 19 Mar ' 18 Mar ' 17 Mar ' 16
69.93 84.22 102.11 186.19 234.24

Figure: 1.2

(Source: Calculated from the annual report of BOI.)

The debt-to-equity ratio (D/E) is a financial ratio indicating the relative

proportion of shareholders' equity and debt used to finance a bank's assets. Here, in
case of BOI we can see that the Debt-Equity ratio has increased over the years. This is
because its equity capital showed no growth from the year 2016 to 2018 and it
decreased by around Rs250 crore in 2019 and remained the same for the year 2020.
But its debt capital has shown a steady increase over the past 5 years. From this we
can infer that since BOI is a public sector undertaking it depends much more on debt
capital rather than equity capital.

Submitted By: Priya Kumari 60

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

CURRENT RATIO:

Current Ratio may be defined as the relationship between current assets and
current liabilities.
Table: 1.3

Mar ' 20 Mar ' 19 Mar ' 18 Mar ' 17 Mar ' 16
65.17 79.27 98.16 182.22 238.24

Figure: 1.3

(Source: Calculated from the annual report of BOI.)

A relatively high current ratio is an indication that the firm is liquid and has
the ability to pay its current obligations in time as and when they become due. An
increase in the current ratio represent improvement in the liquidity position of the firm
while a decrease in the current ratio indicates that there has been deterioration in the
liquidity position of the firm.

Submitted By: Priya Kumari 61

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

QUICK RATIO:

Quick ratio also known as Acid test or Liquid Ratio is more rigorous test of
liquidity than the current ratio.
Table: 1.4

Mar ' 20 Mar ' 19 Mar ' 18 Mar ' 17 Mar ' 16
62.16 72.37 96.14 165.46 213.26

Figure: 1.4

(Source: Calculated from the annual report of BOI.)

Usually, a high test ratio is an indication that the firm is liquid and has the
ability to meet its current or liquid liabilities in time and on the other hand a low quick
ratio represent that the firm’s liquidity position is not good.

Submitted By: Priya Kumari 62

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

DEBT TURNOVER RATIO:

Debt turnover ratio indicates the velocity of debt collection of firm. In simple
words, it indicates the number of times average debtors are turnover during the year.

Table: 1.4

Mar ' 20 Mar ' 19 Mar ' 18 Mar ' 17 Mar ' 16
15.46 16.45 11.87 17.46 19.25

Figure: 1.4

(Source: Calculated from the annual report of BOI.)

Debtors Turnover indicates the number of times the debtors are turned over
during a year. Generally, the higher the value of debtors turnover the more efficient is
the management of debtors and more liquid are the debtors.

Submitted By: Priya Kumari 63

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

Advances to Assets:

A high ratio of Advances to Assets would mean that the chances of Non
Performing Assets formation are also high, which is not a good scenario for a bank.

Table: 2.1

Mar ' 20 Mar ' 19 Mar ' 18 Mar ' 17 Mar ' 16
0.60 0.63 0.61 0.62 0.60

Figure: 2.1

(Source: Calculated from the annual report of BOI.)

“Advances to Asset” is also a good indicator of a firm’s Capital Adequacy. A

high ratio of Advances to Assets would mean that the chances of Non Performing
Assets formation are also high, which is not a good scenario for a bank. This would
mean the credibility of its assets would go down. In case of BOI we can see that it is
able to maintain a pretty steady ratio of its Advances to Assets which means the
credibility of its assets is good.

Submitted By: Priya Kumari 64

 THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

SUMMARY OF RATIOS

Ratios

  Mar ' 20 Mar ' 19 Mar ' 18 Mar ' 17 Mar ' 16
Per share ratios
Adjusted EPS (Rs) 44.37 34.90 33.60 36.78 33.30
Adjusted cash EPS (Rs) 49.25 40.45 39.70 41.97 39.36
Reported EPS (Rs) 44.73 36.10 33.76 37.37 34.59
Reported cash EPS (Rs) 49.61 41.66 39.85 42.56 40.64
Dividend per share 14.00 12.00 11.00 11.00 10.00
Operating profit per share
(Rs) 64.08 49.80 48.58 51.29 42.19
Book value (excl rev res)
per share (Rs) 478.31 463.01 444.94 417.64 270.37
Book value (incl rev res)
per share (Rs.) 478.31 463.01 444.94 417.64 270.37
Net operating income per
share (Rs) 281.04 293.74 343.59 354.71 316.45
Free reserves per share
(Rs) 358.12 356.94 351.04 346.21 199.52

Profitability ratios
Operating margin (%) 22.80 16.95 14.13 14.45 13.33
Gross profit margin (%) 21.06 15.06 12.36 12.99 11.41
Net profit margin (%) 15.91 12.17 9.74 10.51 10.81

Submitted By: Priya Kumari 65

 THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

  Mar ' 20 Mar ' 19 Mar ' 18 Mar ' 17 Mar ' 16
Adjusted cash margin (%) 17.52 13.64 11.45 11.81 12.30
Adjusted return on net
worth (%) 9.27 7.53 7.55 8.80 12.31
Reported return on net
worth (%) 9.35 7.79 7.58 8.94 12.79
Return on long term funds
(%) 42.97 44.72 56.72 62.34 82.46
Leverage ratios
Long term debt / Equity - - 0.01 0.01 0.01
Total debt/equity 4.10 3.91 4.42 5.27 9.50
Owners fund as % of total
source 19.62 20.35 18.46 15.95 9.52
Fixed assets turnover ratio 3.55 4.60 5.14 5.61 4.52
Liquidity ratios
Current ratio 1.73 1.94 0.78 0.72 0.61
Current ratio (inc. st loans) 0.11 0.13 0.13 0.10 0.08
Quick ratio 15.86 14.70 5.94 6.42 6.04
Inventory turnover ratio - - - - -
Payout ratios
Dividend payout ratio (net
profit) 35.23 37.31 36.60 33.12 33.89
Dividend payout ratio
(cash profit) 31.76 32.33 31.00 29.08 28.84
Earning retention ratio 64.49 61.40 63.23 66.35 64.80
Cash earnings retention
ratio 68.01 66.70 68.87 70.51 70.22
Coverage ratios
Adjusted cash flow time
total debt 39.77 44.79 49.41 52.34 65.12

Submitted By: Priya Kumari 66

 THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

  Mar ' 20 Mar ' 19 Mar ' 18 Mar ' 17 Mar ' 16
Financial charges
coverage ratio 0.43 0.33 0.25 1.25 1.25
Fin. charges cov. ratio
(post tax) 1.34 1.26 1.20 1.20 1.22

Submitted By: Priya Kumari 67

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

Component ratios
Material cost component (% earnings) - - - - -
Selling cost Component 0.94 0.72 1.74 4.43 6.12
Exports as percent of total sales - - - - -
Import comp. in raw mat. Consumed - - - - -
Long term assets / total Assets 0.83 0.80 0.75 0.78 0.80
Bonus component in equity capital
(%) - - - - -

Book Value (Rs) 478.31 463.01 444.94 417.64 270.37

Submitted By: Priya Kumari 68

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

CONCLUSION
The balance-sheet along with the income statement is an

important tool for investors and many other parties who are interested

in it to gain insight into a bank and its operation. The balance sheet is

a snapshot at a single point of time of the bank’s accounts- covering

its assets, liabilities and shareholder’s equity. The purpose of the

balance sheet is to give users an idea of the bank’s financial position

along with displaying what the bank owns and owes. It is important

that all investors know how to use, analyze and read balance-sheet. P

& L account tells the net profit and net loss of a bank and its

appropriation. In the case of BOI, during fiscal 2020, the bank

continued to grow and diversify its assets base and revenue streams.

Bank maintained its leadership in all main areas such as retail credit,

wholesale business, international operation, insurance, mutual fund,

rural banking etc. Continuous increase in the number of branches,

ATM and electronic channels shows the growth take place in bank.

Trend analysis of profit & loss account and balance sheet shows the %

change in items of p & l a/c and balance sheet i.e. % change in 2017

from 2013 and %change in 2020 from 2019. It shows that all items

are increased mostly but increase in this year is less than as

compared to increase in previous year. In p& l a/c, all items like

interest income, non-interest income, interest expenses, operating

expenses, operating profit, profit before tax and after tax is increased

but in mostly cases it is less than from previous year but in some

Submitted By: Priya Kumari 69

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

items like interest income, interest expenses, provision % increase is

more. Some items like tax, depreciation, lease income is decreased.

Similarly in balance sheet all items like advances, cash, liabilities, and

deposits are increased except borrowing switch is decreased. %

increase in some item is more than previous year and in some items it

is less.

Ratio analysis of financial statement shows that bank’s current

ratio is better than the quick ratio and fixed/worth ratio. It means

bank has invested more in current assets than the fixed assets and

liquid assets. The cash flow statement shows that net increase in cash

generated from operating and financing activities is much more than

the previous year but cash generated from investing activities is

negative in both years. Therefore analysis of cash flow statement

shows that cash inflow is more than the cash outflow in BOI. Thus,

the ratio analysis and trend analysis and analysis of cash flow

statement show that BOI’s financial position is good. Bank’s

profitability is increasing but not at high rate. Bank’s liquidity position

is fair but not good because bank invests more in current assets than

the liquid assets. As we all know that BOI is on the first position

among the entire private sector bank of India in all areas but it should

pay attention on its profitability and liquidity. Bank’s position is

stable.

Submitted By: Priya Kumari 70

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

SUGGESTIONS
Some of the recommendation and suggestion are as follows:

• The attention is required on the areas of growth, profitability,

service level and building talent.

• To increase the profit of bank, bank should decrease their

operating expenses and increase their income.

• To increase its liquidity, bank should keep some more cash in its

hand instead of giving more and more advances.

• Introduce quality consciousness and standardization of the work

system and procedures.

• Make manager competitive and introduce spirit of market-

orientation and culture of working for customer satisfaction.

• There is need to build the knowledge and skill bases among the

employ eosin the context of technology.

• Performance measure should not only cover financial aspects i.e.

quantitatively aspects but also the qualitative aspects.

Submitted By: Priya Kumari 71

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

• It is high time to focus on work than the work-achieved.

• Bank should increase its retail portfolio.

• Bank should manage its all risk such as credit, market and

operational risk properly and should be managed by a person who

is highly skilled and qualified.

Submitted By: Priya Kumari 72

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

BIBLIOGRAPHY
 I.M. Pandey, Financial Management, 8th Edition

 www.mahindra.com

 www.treasury.govt.nz/publicsector/workingcapital/further.asp

 www.planware.org/workingcapital.htm

 www.wikipedia.org

Submitted By: Priya Kumari 73

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

QUESTIONNAIRE

Dear Sir/ Madam,

As part of my MBA curriculum, is conducting a market

research regarding the working capital management of BANK OF

INDIA for which I need your personal views regarding the net working

capital in shape of a questionnaire designed by me. The data being

collected are solely for academic purpose. I request you to kindly

extend your co-operation.

1) Name: 2) Profession:

3) Age group :( plz tick)

A)18-30 yrs. B)31-40 yrs. C)41-50 yrs. D)51-60 yrs.

1) How do you manage the working capital?

2) How much current Assets do you have?

3) How do you distribute the current assets ?

4) How much current liabilities do you have?

5) In which area do you distribute the current liabilities?

Submitted By: Priya Kumari 74

THE STUDY OF FINANCIAL STATEMENT ANALYSIS OF BANK OF INDIA

6) Can you give me the net working capital of last four years?

7) Why in the year 2016 the working capital is in the good level?

8) Why in the year 2017 it was increased so much?

9) Why in the year 2018 net working capital is decreased more

than half?

10) How in the year 2019 BOI is able to manage the net working

capital?

Submitted By: Priya Kumari 75