Dissertation Report

On

“A Study on Performance Evaluation of Public Sector

Banks during the second course of Economic Reforms”

Desertation Report submitted to Uttarakhand Technical University in

Partial fulfillment of the requirement for the award of

Master of Business Administration

By
Shubham Negi

150220500041

Under the supervision of

Dr. Vikas Gairola

Department of management studies
OIMT

Omkarananda Institute of ManagementTechnology

Rishikesh
(2015-17)
 Candidate’s Declaration

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Omkarananda Institute of Management Technology
Rishikesh

Statement by the candidate

I hereby state that the Summer Training Report entitled “A Study on various
mutual fund schemes of SBI” submitted by me in partial fulfillment of the
requirements for the award of MBA degree, is my original work and that it has not
previously formed the basis for the award of any other degree, Diploma, Fellowship
or other similar titles.

Date Candidate name

 Guide’s Certificate

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Department of Management studies
OIMT, Rishikesh

This is to certify that the Summer Training Report entitled “A Study on various
mutual fund schemes of SBI” submitted by (Candidate Name) is a bonafide record
of research work done by him under my guidance and supervision.

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Acknowledgement
 Executive summary
Bank constitute the core of the financial services industry. It plays a planned role
in the economic development of the country. Performance evaluation of banks
become more important with the introduction of second reform phase. The present
study examines on the factors affecting the growth and performance of banks with
reference to deposits the total expenditure spread net profit and total assets
during the second reforms phase. Sixteen public sector banks have taken up for
the study for the period 1998-99 to 2012-13 .the tools used to evaluate the
performance include simple growth rate exponential growth rate and average. The
study has reveals that among the public sector banks like mean of deposit total
expenditure spread net profit and total expenditure and total assets were highest
for the state bank of india, followed by Punjab national bank. The deposits total
expenditure and total assets in terms of dispersion was more consistent with the
state bank of india, Patiala Furthermore among the public sector banks the EGR
of deposits total expenditure spread with total profit and total assets were highest
for the IDBI.
 Table of content

Certificate
Acknowledgement
Executive summary

Chapter I

Introduction of Study
2.1 Literature Review
2.2 Background of the Study
2.3 Problem Statement and Importance of the Study
2.4 Objectives of the Study
2.5 Hypothesis

Chapter II

Research Methodology
3.1 Research Design
3.2 Source/s of Data
3.3 Data Collection Method
3.4 Sample Size
3.5 Sampling Method
3.6 Date Collection Instrument

Chapter III

Data analysis and interpretation

Chapter IV

Finding, Conclusion, Recommendation (if any), Limitation

Bibliography (APA Format Compulsory)

Appendix (include questionnaire/raw data collected from various website)

 (Give the suitable name to each chapter related to your topic)

Chapter I

Introduction
India’s financial service industry is dominated by the banking sector
that
contributes significantly to the revenues of this Industry. To be sure,
the industry
has generated tremendous employment opportunities for a large
section of the
populace in India. The back bone of any economy can be best
evaluated by the
strength and flexibility of its banking structure. In the Indian context,
banking is
verily the proxy and indeed the cornerstone of the overall economic
growth of the
country. Before liberalization, the Indian Banking structure was largely
controlled
and parameters like branch size and location were given paramount
importance.
Financial intermedian by way of mobilizing savings and lending to
enterprise for the growth and development of an economy is present in
some form
in every economy. With rise in economic activities, they began to
occupy a bigger
space in financing trade and commerce, thus playing a critical role in
the
development of the economy. The Indian Banking Industry has come a
long way
from being a sleepy business institution to a highly practice and
dynamic entity.
This transformation has been largely brought about by the large dose
of liberalization and economi forms that allowed banks to explore new
business opportunities rather than generating revenues from
conventional streams (i.e. borrowing and lending).
Banking sector in India changed drastically over the past decade due
to technological innovation, deregulation of financial services, external
financial liberalization and organizational changes in the corporate
sector. Our regulatory structure and self regulatory
mechanisms have ensured that the Indian financial system continuously improves; it has
also helped to build an environment that can withstand shocks. Corporate governance is
already on the top of CEO’s agenda and will be watched keenly if it is making banking
institutions safer, sounder and more capital efficient.
Sound financial health of a bank is the guarantee not only to its depositors but is equally
significant for the shareholders, employees and whole economy as well. As a sequel to
this maxim, efforts have been made from time to time, to measure the financial position
of each bank and manage it efficiently and effectively. In this paper, an effort has been
made to evaluate the financial performance of the public sector banks in India. This
evaluation has been done by using CAMEL Parameters, the latest model of financial
analysis. Through this model, it is highlighted that the position of the banks under study
is sound and satisfactory so far as their capital adequacy, asset quality, Management
capability and liquidity is concerned.
Banking sector is one of the fastest growing sectors in India. Today's banking sector
becoming more complex. Evaluating Indian banking sector is not an easy task. There are
so many factors, which need to be taken care while differentiating
good banks from bad ones... To evaluate the performance of banking sector, have chosen
the CAMEL model which measures the performance of banks from each of the important
parameter like Capital Adequacy, Assets Quality, Management Efficiency, Earning
Quality and Liquidity. After deciding the model, have chosen selective six public sector
banks for the study. The banks are Bank of Baroda, Bank of India, Canara Bank, Punjab
National Bank, Syndicate Bank, and Union Bank of India.

The Performance evaluation of the banking sector is important to ensure financial

stability of an economy. In the light of the world-wide banking crisis in recent years,
CAMEL approach is a useful tool to examine the safety and soundness of banks. The
present study attempts to show the relative financial position and performance and
evaluation of selected public and private banking sectors and result over a five year
period from 2010 to 2015. This study aimed at top ten public and private sector banks
based on performance evaluation of statistical information of net margin, total assets and
market position. In recent years, the private sector banks give a very tough competition in
terms of Capital Adequacy, Asset Quality, Management Efficiency, Earning Capacity
and Asset Quality, Hence CAMEL model has been chosen for the study. The entire study
is based on the secondary data, procured and extracted from financial statements of the
selected banks. The collected data is analyzed using various financial ratios and statistical
tools. The study found that on the basis of group averages sub parameters of capital
adequacy, Assets Quality and Liquidity Ratio of public sectors banks was
at the top position compared with private sector banks. In terms of, Management
Efficiency and Earning quality private sector bank was better than that the selected public
sector banks.

In the 1980s, CAMEL rating system was first introduced by U.S. supervisory authorities
as a system of rating for on-site examinations of banking institutions. Under this system,
each banking institution subject to on-site assessment was evaluated on the basis of five
(now six) critical dimensions relating to its operations and performance, which were
referred to as the component factors. These are Capital, Asset Quality, Management,
Earnings and Liquidity was used to reflect the financial performance, financial condition,
operating soundness and regulatory compliance of the banking institution. A sixth
component is relating to Sensitivity to market risk has been added to the CAMEL rating
to make the rating system more risk-focused.
Significance of the Study
The commercial banks in India have played a significant role to strengthen the economic
development by catering the financial needs to individuals and trade and industry in the
country. The banks have fastened the process of capital formation in the country be
effective borrowing and lending, drawing the community savings into the organized
sector and allotting among the different economic activities as per priorities laid down by
the planning commission. With the nationalization of the commercial banks in 1969,
restrictions on entry and expansion of private and foreign banks were gradually
increased. The RBI also began enforcing uniform interest rates, spreads and service
changes among nationalized banks. This caused competition either among banks in the
public sector or between the public, private and cooperative banks. In addition to this the
labour policies of the public sector where employees salaries and promotions are not
linked to their job performance has also led to a steady decline in the efficiency, quality
of customer services and work culture in the banks, further increasing NPAs, declining
profitability and efficiency lead to threatening the viability of commercial banks in India.
Thus in the light of this facts within the banking industry the Narasimhan Committee in
1991 was appointed to look into improving the productivity, profitability and efficiency
of the financial sector in general and about banking sector in particular. Against this
background a need is felt to study the financial performance of the commercial banks
operating in various sectors under study using ratio analysis and to draw necessary
inferences from the study.

Review of Literature

Sloan Swindle C (2005) found that the capital dequacy component of the CAMEL rating
system to assess whether regulators in the 1980s influenced inadequately capitalized
banks to improve their capital. Using a measure of regulatory pressure that is based on
publicly available information, they found that inadequately capitalized banks responded
to regulators demands for greater capital.
Prasuna (2004) examined the performance of Indian Banks. The performance of 65
banks was studied for the period 2003-04. They found that the competition was tough and
consumers benefited from it. Better services quality, innovative products, better bargains
are all greeting the Indian customers. The coming fiscal will prove to be a transition
phase for Indian banks, as they will have to align their strategic focus to increasing
interest rates. Josefsson (2002) examined that a sound banking system is a system in
which individual banks, accounting for most of the systems transactions, are solvent and
meet capital adequacy requirement. Solvency is reflected in the positive net worth of
banks, as measured by the difference between assets and liabilities, excluding capital and
reserves. Veni (2004) examined the capital adequacy requirement of banks and the
measures adopted by them to strengthen their capital ratios. The author highlighted that
the rating agencies give prominence to Capital Adequacy Ratios of banks while rating the
banks certified of deposits, fixed deposits and bonds. Thus, Capital Adequacy is
considered as the key.
Jain Vibha (2007) examined the status of NPAs in commercial banks. The study found
that the problem of gross and net NPA’s is more acute in Public Sector Banks. The new
Private sector banks and foreign banks have also registered an increase in the amount of
gross and net NPA’s during the period 1997-2003. It concluded that new private sector
banks and foreign banks failed to prevent the fresh generation of NPAs in the period
whereas, PSB’s and old private sector banks were able to reduce it. Rajaraman and
[Link] (2002) analysed the problem of Non-performing Loans of Public Sector
Bank in the Indian Context. The study found an evidence of significant bi-variate
relationship between an operating inefficiency indicator and the problem loans of public
sector banks. K. Kothai (2003) conducted a study on “Non performing Assets of
Scheduled commercial Banks in India: An Analysis”. The research observed a decreasing
trend in the NPA’s of SCB’s over the period of study. It revealed that the level of NPA’s
has declined mainly due to write off of bad debts and expansion of the total advances
over the period of study * Singla (2008) studied the financial performance of banks in
India in view of increasing globalization and increased competition in the banking
industry. He concluded that the financial position of banks is reasonable, debt equity ratio
is maintained at an adequate level and NPA’s also witnessed a decline during the study
period.
Roma Mitra, Shankar Ravi (2008), A stable and efficient banking sector is an essential
precondition to [Link] the economic level of a country. This paper tries to model and
evaluate the efficiency of 50 Indian banks. The Inefficiency can be analyzed and
quantified for every evaluated unit. The aim of this paper is to estimate and compare
efficiency of the banking sector in India. The analysis is supposed to verify or reject the
hypothesis whether the banking sector fulfils its intermediation function sufficiently to
compete with the global players. The results are insightful to the financial policy planner
as it identifies priority areas for different banks, which can improve the performance.
This paper evaluates the performance of Banking Sectors in India.
[Link] Kumar (2008), in his article on an evaluation of the financial performance of
Indian private sector banks wrote Private sector banks play an important role in
development of Indian economy. After liberalization the banking industry underwent
major changes. The economic reforms totally have changed the banking sector. RBI
permitted new banks to be started in the private sector as per the recommendation of
Narashiman committee. The Indian banking industry was dominated by public sector
banks. But now the situations have changed new generation banks with used of
technology and professional management has gained a reasonable position in the banking
industry.
Brijesh K. Saho, Anandeep Singh (2007), this paper attempts to examine, the
performance trends of the Indian commercial banks for the period: 1997-98 - 2004-05.
Our broad empirical findings are indicative in many ways. First, the increasing average
annual trends in technical efficiency for all ownership groups indicate an affirmative
gesture about the effect of the reform process on the performance of the Indian banking
sector. Second, the higher cost efficiency accrual of private banks over nationalized
banks indicate that nationalized banks, though old, do not reflect their learning
experience in their cost minimizing behavior due to X-inefficiency factors arising from
government ownership. This finding also highlights the possible stronger disciplining
role played by the capital market indicating a strong link between market for corporate
control and efficiency of private enterprise assumed by property right hypothesis. And,
finally, concerning the scale elasticity behavior, the technology and market-based results
differ significantly supporting the empirical distinction between returns to scale and
economies of scale, often used interchangeably in the literature.
Vradi, Vijay, Mauluri, Nagarjuna (2006), in his study on´ Measurement of efficiency
of bank in India concluded that in modern world performance of banking is more
important to stable the economy .in order to see the efficiency of Indian banks we have
see the fore indicators i.e. profitability, productivity, assets, quality and financial
management for all banks includes public sector, private sector banks in India for the
period 2000 and 1999 to 2002-2003. For measuring efficiency of banks we have adopted
development envelopment analysis and found that public sectors banks are more efficient
then other banks in India
Petya Koeva (July 2003), in his study on The Performance of Indian Banks. During
Financial Liberalization states that new empirical evidence on the impact of financial
liberalization on the performance of Indian commercial banks. The analysis focuses on
examining the behavior and determinants of bank intermediation costs and profitability
during the liberalization period. The empirical results suggest that ownership type has a
significant effect on some performance indicators and that the observed increase in
competition during financial liberalization has been associated with lower intermediation
costs and profitability of the Indian banks.
Devanadhen K. (2013) “performance evaluation of large size commercial banks in
India” found that the Andhra Bank secured the first place followed by Corporation Bank
and HDFC Bank. Axis Bank and ICICI Bank were ranked 6Th and 14TH respectively.
Central Bank of India stood last in the overall performance and SBI exhibited better
performance than ICICI Bank.
Dr. Mahua Biswas (2014). In his study titled “Performance evaluation of Andhra Bank
and Bank of Maharashtra with CAMEL model” found that Andhra Bank dominated
Management Efficiency and Earning Quality. However an Asset Quality and Liquidity
Bank of Maharashtra dominated over Andhra Bank. Both banks were on par with respect
to the cash Adequacy ratio.
J. Kumar and Dr. R. Thamil Selvan (2014). In their studies titled “Capital Adequacy
determinants and profitability of selected Indian commercial banks” found that ICICI
bank has the most favorable capital adequacy ratio compared to other various banks. The
Bank of India and Bank of Baroda are expanding their business much more. The advance
of assets in State Bank of India is better profitability, Satisfactory. Total assets of HDFC
bank higher spread indicates better earning capacity of the banks. The non-interest
income of Total income an Axis banks are higher in percentage ratio. It helps to
determine the liability of the bank to earn revenue from other than the core activities of
banks.
K.N.V Prasad G. Ravinder, Dr. D. Maheshwara Reddy (2011) In their studies titled “
A Camel Model analysis of public and private sector banks in India” found that on
average Karur vysya bank was at top most position followed by Andhra Bank, Bank of
Baroda and also it is observed that central Bank of India was at the bottom most position.
The largest public sector banks in India availed 36th position. Dr. K. Sriharsha Reddy
(2012) In her study titled “Relative performance of commercial banks in India using
CAMEL approach” found that public sector banks have significantly improved and
indicating positive impact of the reforms in liberalizing interest rates, rationalizing
directed credit and investment and
increasing completion.
Anita Makkar and Shveta Singh (2013) In their studies titled “Analysis of the
Financial Performance of Indian Commercial Bank : A Comparative Study” found
that on an average , there is no statistically significant different in the financial
performance of the public and private sector banks in India, but still , there is a
need for overall improvement in the public sector banks to make their position
strong in the competitive market.

Objectives of the Study

a. To examine the performance of public sector banks in India

during the period 1998-99 to 2012-13

b. To identify the factors affecting the performance of public

sector banks.

c. To find out the average of all the types of public sector banks
 d. To find out the maximum and minimum growth of public sector
banks.

e. To find out the performance of all types of banks based on their

percentage and calculation.

f. To make best and possible use of all types of resources

available relating to banking sectors and institutions.

PUBLIC SECTOR BANKS

Public sector in the banking industry emerged with the nationalization

of Imperial Bank of India (1921) and creating the State Bank of India (1955)
as a part of integrated scheme of rural credit proposed by the All India Rural
Credit Survey Committee (1951). The Bank is unique in several respects and
it enjoys a position of preeminence as the agent of RBI wherever RBI has no
Branches. It is the single largest bank in the country with large international
Presence, with a network of 48 overseas offices spread over 28 countries
Covering all the time zones. One of the objectives of establishing the SBI was
97 to provide extensive banking facilities in rural areas by opening as a first step
400 branches within a period of 5 years from July 1, 1955. In 1959, eight
Banking companies functioning in formerly princely states were acquired by
the SBI, which later came to be known as Associate Banks. Later, two of the
Subsidiary banks', viz., the State Bank of Bikaner and Jaipur were merged to
form the State Bank of Bikaner and Jaipur, thus form eight banks in the SBI
group then making banks in the state bank group.
The Public sector in the Indian banking got widened with two rounds of
Nationalization-first in July 1969 of 14 major private sector banks each with
deposits of Rs. 50 crore or more, and thereafter in April 1980, 6 more banks
with deposits of not less than Rs. 2 Crore each. It resulted in the creation of
public sector banking with a market share of 76.87 per cent in deposits and
72.92 per cent of assets in the banking industry at the end of March 2003.
With the merger of 'New Bank of India' with 'Punjab National Bank' in 1993,
the number of nationalized banks became 19 and the number of public sector
banks 27.. The public sector banks thus came to occupy a predominant
position in the Indian banking scene. It is however, important to note that
there has been a steady decline in the share of PSB's in the total assets of
SCB's during the latter - half of 1990s. While their share was 84.5 per cent at
the end of March 1996, it declined to 81.7 per cent in 1998 and further to 81
per cent in 1999.

Types of Public Sector Banks

 Allahabad Bank
 Bank of Baroda
 Bank of India
 Canara Ban
 Corporation Bank
 IDBI. Bank Ltd.
 Central bank
 Punjab National bank
 State Bank of india
ALLAHABAD BANK

Allahabad Bank is a nationalized bank with its headquarters in Kolkata, India. It is the
oldest joint stock bank in India. On 24 April 2014, the bank entered into its 150th year of
establishment. It was founded in Allahabad in 1865. As of 31 March 2012, Allahabad
Bank had over 2,500 branches across India.[1] The bank did a total business of INR
3.1 trillion during the FY 2012-13. The bank has a branch in Hong Kong and a
representative office in Shenzen. The bank's market capitalisation in May 2016 was
US$543 million and it ranked #1834 on the Forbes Global 2000
list.

History
In the early 20th century, with the start of Swadeshi movement, Allahabad Bank
witnessed a spurt in deposits. In 1920, P & O Banking Corporation acquired Allahabad
Bank with a bid p rice of ₹436 (US$6.70) per share. In 1923 the
bank moved its head office and the registered office to Calcutta for reasons of both
operational convenience and business opportunities. Then in 1927 Chartered Bank of
India, Australia and China (Chartered Bank) acquired P&O Bank. However, Chartered
Bank continued to operate Allahabad Bank as a separate entity. Allahabad Bank opened a
branch in Rangoon (Yangon). At some point Chartered Bank amalgamated Allahabad
Bank's branch in Rangoon with its own.[12] In 1963 the revolutionary government in
Burma nationalized the Chartered Bank's operations there, which became People's Bank.
On 19 July 1969, the Indian Government nationalized Allahabad Bank, together with 13
other banks.
In October 1989, Allahabad Bank acquired United Industrial Bank, a Calcutta-based bank
that had been established in 1940 and that brought with it 145 branches. Two years later,
Allahabad Bank established All Bank Finance Ltd, a wholly owned Merchant Banking
subsidiary. 21st century The government's ownership of Allahabad Bank shrank in
October 2002 after the bank engaged in an Initial Public Offering (IPO) of ₹100 million
(US$1.5 million) of shares, each with a face value ₹ 10.

BANK OF BARODA

Prior to independence from the British Rule, the ancient India was ruled by
princely states, scattered over the width and breadth of the large Indian nation.
The Maharajas of the inner States of colonial India contributed to the welfare of
their respective regions as well as the Indian nation as a whole. Their vision and
foresight in founding various financial, charitable, social and philanthropic
organizations during their time is still cherished by any one going into the history
of modern India and its achievements in every walk of life.
The Maharaja of Baroda, a princely state of British India, by name Sir Sayyajirao
Gaekwad III, had the same vision in establishing a bank for servicing the public at
large and the citizens of Baroda State, a Guajarati population in particular. On
20th July 1908, Bank of Baroda was established under the rules of Companies
Act 1897, in a small building at Baroda, by the Maharaja with a paid up capital of
Rs.10 lakhs. The guidelines set by the Maharaja for the bank was to serve the
people of the State of Baroda as well as the neighboring regions with money
lending, saving, transmission and encouraging the development of arts, science,
commerce and trade for the people. Even during the worst financial disaster
caused by the First World War, during the period 1913 to 1917, when as many as
87 banks closed their shutters, Bank of India survived the turbulence with its clear
vision, ethical standards and financial prudence to grow from strength to strength.
There were heroes to sustain the development of this bank to its present glory,
from ordinary people as customers and the heirs of the Royal family of Baroda.

BANK OF INDIA

Bank of India is commercial bank with headquarters at Bandra Kurla complex, Mumbai.
Founded in 1906, it has been government-owned since nationalisation in 1969. However,
some branches are individually owned, such as Kandia, Indonesia, etc. 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. 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 7 September 1906 by a group of eminent businessmen

from Mumbai, Maharashtra, India. The Bank was under private
ownership and control till July 1969 when it was nationalised along with 13 other banks.
Beginning with one office in Mumbai, with a paid-up capital of ₹5 million (US$77,000)
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 4,963 branches in India spread over all states/ union territories including
specialised branches. These branches are controlled through 54 Zonal Offices. There are
60 branches/ offices and 5 Subsidiaries and 1 joint venture abroad.
The current bank
The earlier holders of the Bank of India name had failed and were no longer in existence
by the time a diverse group of Hindus, Muslims, Parsees, and Jews helped establish the
present Bank of India in 1906 in Bombay. It was the first bank in India whose promoters
aimed to serve all the communities of India. At the time, banks in India were either
owned by Europeans and served mainly the interests of the European merchant houses, or
by different communities and served the banking needs of their own community.
CANARA BANK

In 1906 the late Sri. Ammembal Subba Rao Pai philanthropist, established
the Canara Bank Hindu Permanent Fund in Manglore India. The bank changed
its name to Canara Bank Limited in 1910 when it incorporated. In 1958, the
Reserve Bank of India ordered Canara Bank to acquire G. Raghumathmul Bank,
in Hyderabad. This bank had been established in 1870, and had converted to a
limited company in 1925. At the time of the acquisition the bank had five
branches.
The Government of India nationalized Canara Bank, along with 13 other major
commercial banks of India, on 19 July 1969. In 1983, Canara Bank opened its
first overseas office, a branch in London. In 1985, Canara Bank acquired
Lakshmi Commercial Bank in a rescue. Significant Milestones
1 July 1906 Canara Hindu Permanent Fund Ltd. formally registered
with a capital of 2000 shares of Rs.50/- each, with 4 employees.14
1910: Canara Hindu Permanent Fund renamed as Canara Bank Limited
1969:14 major banks in the country, including Canara Bank, nationalized on July
1976:1000th branch inaugurated
1983: Overseas branch at London inaugurated Cancard (the Bank’s credit card)
launched
1984: Merger with the Laksmi Commercial Bank Limited
1985: Commissioning of Indo Hong Kong International Finance Limited
1987: Canbank Mutual Fund & Canfin Homes launched
1989: Canbank Venture Capital Fund started
1989-90: Canbank Factors Limited, the factoring subsidiary launched
1992-93: Became the first Bank to articulate and adopt the directive principles of
“Good Banking”.
1995-96: Became the first Bank to be conferred with ISO 9002 certification for
one of its branches in Bangalore
Corporation Bank

corporation bank is a public-sector banking company headquartered in mangalore, india.

the bank has a pan-indian presence. presently, the bank has a network of 2,440 fully
automated cbs branches, 3,040 atms, and 4,724 branchless banking units across the
country. The bank has representative offices in dubai and hong kong. as of 31 march
2016, the total business of the bank was ₹345,493 crore (us$53 billion). total deposits
stood at ₹205,171 crore (us$32 billion) and total advances were ₹140,322 crore (us$22
billion). the bank's net worth rose to ₹11,344 crore (us$1.8 billion).

History
Corporation bank, the oldest banking institution in the erstwhile undivided south canara
district of the madras presidency and one of the oldest banks in india, was founded on 12
march 1906 in the temple town of udupi by a small group of philanthropists, as there was
no such bank at udupi, an important trading centre next to mangalore. the first branch of a
modern bank established in the district was the bank of madras, one of the three
presidency banks, which set up its office in mangalore in 1868, largely to cater to the
business needs of a few british firms dealing in export of plantation products. its agent
used to visit udupi once a fortnight or so, to do banking. money remittances had to be
made only through postal medium.
to overcome these drawbacks and also to provide banking facilities for udupi in particular
and the district in general, a cosmopolitan group of philanthropists, led by haji abdulla
saheb, established this institution. what inspired the founding fathers was the fervour of
swadeshism. For promoting the bank, the founder-president made an appeal saying, "the
primary object in forming the corporation is not only to cultivate habits of thrift amongst
all classes of people, without distinction of caste or creed, but also habits of co-operation
amongst all classes. this is 'swadeshism', pure and simple and every lover of the country
is expected to come forward and co-operate in achieving the end in view."

IDBI Bank

IDBI Bank is an Indian government-owned financial service company, formerly

known as Industrial Development Bank of India, headquartered in Mumbai, India. It was
established in 1964 by an Act of Parliament to provide credit and other financial facilities
for the development of the fledgling Indian industry. It is currently 10th largest
development bank in the world in terms of reach, with 3350 ATMs, 1853 branches,
including one overseas branch at Dubai, and 1382 centers.[2] It is one of 27 commercial
banks owned by the Government of India. The Bank has an aggregate balance sheet size
of INR 3.74 trillion as on 31 March 2016.[3]

HISTORY
Overview of development banking in India Development Banking emerged after the
Second World War and the Great Depression in 1930s. The demand for reconstruction
funds for the affected nations compelled in IDBI Bank setting up of national institutions
for reconstruction. At the time of Independence in 1947, India had a fairly developed
banking system. The adoption of bank dominated financial development strategy was
aimed at meeting the sectoral credit needs, particularly of agriculture and industry.
Towards this end, the Reserve Bank concentrated on regulating and developing
mechanisms for institution building. The commercial banking network was expanded to
cater to the requirements of general banking and for meeting the short-term working
capital requirements of industry and agriculture. Specialised development financial
institutions (DFIs) such as the IDBI, NABARD, NHB and SIDBI, etc., with majority
ownership of the Reserve Bank were set up to meet the long-term financing requirements
of industry and agriculture. Formation of Industrial Development Bank of India (IDBI)
The Industrial Development Bank of India (IDBI) was established in 1964 under an Act
of Parliament as a wholly owned subsidiary of the Reserve Bank of India. In 1976, the
ownership of IDBI was transferred to th Government of India and it was made the
principal financial institution for coordinating the activities of institutions engaged in
financing, promoting and developing industry in India
Central Bank of India-
Central Bank of India, a government-owned bank, is one of the oldest and largest
commercial banks in India. It is based in Mumbai which is the financial capital of India
and capital city of state of Maharashtra .The bank has 4730 branches, 5319 ATM's and 4
extension counters across 27 Indian states and three Union Territories. At present, Central
Bank of India has overseas office at Nairobi , Hong Kong and a joint venture with Bank
of India , Bank of Baroda , and the Zambian government . The Zambianm government
holds 40 per cent stake and each of the banks has 20 per cent. Recently it has also opened
a representative office at Nairobi in Kenya. Central bank of India is one of 19 Public
Sector banks in India to get recapitalisation [3] finance from the government over the
next 24 months.
Central Bank of India has approached the Reserve Bank of India (RBI) for permission to
open representative offices in five more locations - Singapore, Dubai, Doha and London .
As on 31 March 2015, the bank's reserves and surplus stood at ₹ 283030 million. Its total
business at the end of the last fiscal amounted to ₹ 45,05,390(approx) million. History
The Central Bank of India was established on 21 December 1911 by Sir Sorabji
Pochkhanawala with Sir Pherozeshah Mehta as Chairman, [5] and claims to have been
the first commercial Indian bank completely owned and managed by Indians. [citation
needed ] Early-20th century By 1918 it had established a branch in Hyderabad . A branch
in nearby Secunderabad followed in 1925. [citation needed ] In 1923, it acquired the Tata
Industrial Bank in the wake of the failure of the Alliance Bank of Simla . The Tata bank,
established in 1917, had opened a branch in Madras in 1920 that became the Central
Bank of India, Madras. [citation needed ] Central Bank of India was instrumental in the
creation of the first Indian exchange bank, the Central Exchange Bank of India, which
opened in London in 1936. However, Barclays Bank acquired Central Exchange Bank of
India in 1938. [6] Also before World War II, Central Bank of India established a branch
in Rangoon. The branch'soperations concentrated on business between Burma and India,
and especially money transmission via telegraphic transfer. Profits derived primarily
from foreign exchange and margins.

The bank also lent against land, produce, and other assets, mostly to Indian businesses.
[7] Post-World War II
In 1963, the revolutionary government in Burma nationalized Central Bank of India's
operations there, which became People's Bank No. 1.[8] In 1969, the Indian Government
nationalized the bank
on 19 July, together with 13 others. In the 1980s the managers of the London branches of
Central Bank of India, Punjab National Bank, and Union Bank of India were caught up in
a fraud in which they made dubious loans to the Bangladeshi jute trader Rajender Singh
Sethia. The regulatory authorities in England and India forced all three Indian banks to
close their London branches. Central Bank of India was one of the first banks in India to
issue credit cards in the year 1980 in collaboration with MasterCard . Central Bank of
India announces that the financial results for the year ended 2013-Total Business Rs.
402000 Cr. Net Profit-Rs. 1015 Cr. On 1 August 2013, Central Bank of India appoints
new CMD Rajiv Rishi , who was previously ED of Indian Bank and General Manager of
OBC and Raj Kumar Goyal as the new ED of the bank. On 1 November of the same year,
the bank open its second representative office in Hong Kong.

Punjab National Bank

Punjab National Bank is an Indian multinational banking and financial services company.
It is a state-owned corporation based in New Delhi, India. Founded in 1894, the bank has
over 6,968 branches and over 9,935 ATMs across 764 cities. It serves over 80 million
customers.[4] It has a banking subsidiary in the UK (PNB International Bank, with seven
branches in the UK), as well as branches in Hong Kong, Kowloon, Dubai and Kabul. It
has representative offices in Almaty (Kazakhstan), Dubai (United Arab Emirates),
Shanghai (China), Oslo (Norway) and Sydney (Australia). In Bhutan it owns 51% of
Druk PNB Bank, which has five branches. PNB owns 20% of Everest Bank Limited,
which has 50 branches in Nepal. Lastly, PNB owns 84% of JSC (SB) PNB Bank in
Kazakhstan, which has four branches.
Punjab National Bank was registered on 19 May 1894 under the Indian Companies Act,
with its office in Anarkali Bazaar, Lahore present day Pakistan. The founding board was
drawn from different parts of India professing different faiths and a varied back-ground
with, however, the common objective of providing country with a truly national bank
which would further the economic interest of the country.[1] PNB's founders included
several leaders of the Swadeshi movement Punjab National Bank 1 of 6 4/25/2017 10:25
PM such as Dyal Singh Majithia and Lala Harkishan Lal, Lala Lalchand, Shri Kali
Prosanna Roy, Shri E.C. Jessawala, Shri Prabhu Dayal, Bakshi Jaishi Ram, and Lala
Dholan Dass.[5][6] Lala Lajpat Rai was actively associated with the management of the
Bank in its early years. The board first met on 23 May 1894 The bank opened for
business on 12 April 1895 in Lahore. PNB has the distinction of being the first Indian
bank to have been started solely with Indian capital that has survived to the present. (The
first entirely Indian bank, Oudh Commercial Bank, was established in 1881 in Faizabad,
but failed in 1958.) PNB has had the privilege of maintaining accounts of national leaders
such as Mahatma Gandhi, Jawahar Lal Nehru, Lal Bahadur Shastri, Indira Gandhi, as
well as the account of the famous Jalianwala Bagh Committee

State Bank Of India

The roots of the State Bank of India rest in the first decade of 19th century, when the
bank of Calcutta, later renamed the Bank of Bengal was established on 2 June, 1806. The
Bank of Bengal and two other Presidency banks, namely, the Bank of Bombay
(incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July 1843).
All three Presidency banks were incorporated as Joint Stock Companies, and were the
result of the Royal Charters. These three banks received the exclusive right to issue paper
currency in 1861 with the Paper Currency Act, a right they retained until the formation of
the Reserve Bank of India. The Presidency banks amalgamated on 27 January 1921 and
the reorganized banking entity took as its name Imperial Bank of India. The Imperial
Bank of India continued to remain a joint stock company. Pursuant to the provisions of
the State Bank of India Act (1955), the Reserve Bank of India, which is India’s Central
Bank, acquired a controlling interest in the Imperial Bank of India. On 30 April 1955 the
Imperial Bank of India became the State Bank of India. The Government of India
recently acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of
interest because the RBI is the country's banking regulatory authority. SBI has acquired
local banks in rescues. For instance, in 1985, it acquired Bank of Cochin in Kerala, which
had 120 branches. SBI was the acquirer as its affiliate State Bank of Travancore already
had an extensive network in Kerala. The State bank of India is the 29 th most reputed
company in the world according to Forbes.1 Also SBI is the only bank to get featured in
coveted 'top 10 brands of India' list in an annual survey conducted by Brand Finance and
The Economic Times in [Link] Bank of India is the largest of the Big Four
Banks of India, along with ICICI Bank, Punjab National Bank and Canara Bank —
its main competitors.

Economic Reforms-

India was a latecomer to economic reforms, embarking on the process in earnest only in
1991, in the wake of an exceptionally severe balance of payments crisis. The need for a
policy shift had become evident much earlier, as many countries in east Asia achieved
high growth and poverty reduction through policies which emphasized greater export
orientation and encouragement of the private sector. India took some steps in this
direction in the 1980s, but it was not until 1991 that the government signaled a systemic
shift to a more open economy with greater reliance upon market forces, a larger role for
the private sector including foreign investment, and a restructuring of the role of
government. India’s economic performance in the post-reforms period has many positive
features.
The average growth rate in the ten year period from 1992-93 to 2001-02 was around 6.0
percent, as shown in Table 1, which puts India among the fastest growing developing
countries in the 1990s. This growth record is only slightly better than the annual average
of 5.7 percent in the 1980s, but it can be argued that the 1980s growth was unsustainable,
fuelled by a buildup of external debt which culminated in the crisis of 1991. In sharp
contrast, growth in the 1990s was accompanied by remarkable external stability despite
the east Asian crisis. Poverty also declined significantly in the post-reform period, and at
a faster rate than in the 1980s according to some studies (as Ravallion and Datt discuss in
this issue). However, the ten-year average growth performance hides the fact that while
the economy grew at an impressive 6.7 percent in the first five years after the reforms, it
slowed down to 5.4 percent in the next five years. India remained among the fastest
growing developing countries in the second sub-period because other developing
countries also slowed down after the east Asian crisis, but the annual growth of 5.4
percent was much below the target of 7.5 percent which the government had set for the
period. Inevitably, this has led to some questioning about the effectiveness of the reforms
Opinions on the causes of the growth deceleration vary.

World economic growth was slower in the second half of the 1990s and that would have
had some dampening effect, but India’s dependence on the world economy is not large
enough for this to account for the slowdown. Critics of liberalization have blamed the
slowdown on the effect of trade policy reforms on domestic industry (for example,
Nambiar et al, 1999; Chaudhuri, 2002).1 However, the opposite view is that the
slowdown is due not to the effects of reforms, but rather to the failure to implement the
reforms effectively. This in turn is often attributed to India’s gradualist approach to
reform, which has meant a frustratingly slow pace of implementation. However, even a
gradualist pace should be able to achieve significant policy changes over ten years. This
paper examines India’s experience with gradualist reforms from this perspective.
We review policy changes in five major areas covered by the reform program: fiscal
deficit reduction, industrial and trade policy, agricultural policy, infrastructure
development and social sector development. Based on this review, we consider the
cumulative outcome of ten years of gradualism to assess whether the reforms have
created an environment which can support 8 percent GDP growth, which is now the
government target. Savings, Investment and Fiscal Discipline

Fiscal policy was seen to have caused the balance of payments crisis in 1991 and a
reduction in the fiscal deficit was therefore an urgent priority at the start of the reforms.
The combined fiscal deficit of the central and state governments was successfully
reduced from Montek S. Ahluwalia is at present Deputy Chairman, Planning
Commission, Government of India. Prior to this, he was working as Director,
Independent Evaluation Office International Monetary
Fund, Washington, D.C. Prior to July 2001 he served in the Government of India as
Member Planning Commission and before that as Finance Secretary in the Ministry of
Finance. The article has been published in Journal of Economic Perspectives, Summer
2002., 9.4 percent of GDP in 1990-91 to 7 percent in both 1991-92 and 1992-93 and the
balance of payments crisis was over by 1993. However, the reforms also had a medium
term fiscal objective of improving public savings so that essential public investment
could be financed with a smaller fiscal deficit to avoid “crowding out” private
investment.

This part of the reform strategy was unfortunately never implemented.

As shown in Table 2, public savings deteriorated steadily from +1.7 percent of GDP in
1996- 97 to –1.7 percent in 2000-01. This was reflected in a comparable deterioration in
the fiscal deficit taking it to 9.6 percent of GDP in 2000-01. Not only is this among the
highest in the developing world, it is particularly worrisome because India’s public debt
to GDP ratio is also very high at around 80%. Since the total financial savings of
households amount to only 11 percent of GDP, the fiscal deficit effectively preempts
about 90 percent of household financial savings for the government. What is worse, the
rising fiscal deficit in the second half of the 1990s was not financing higher levels of
public investment, which was more or less constant in this period.
These trends cast serious doubts on India’s ability to achieve higher rates of growth in
future. The growth rate of 6 percent per year in the post-reforms period was achieved
with an average investment rate of around 23 percent of GDP. Accelerating to 8 percent
growth will require a commensurate increase in investment. Growth rates of this
magnitude in east Asia were associated with investment rates ranging from 36-38
percent. While it can be argued that there was overinvestment in East Asia, especially in
recent years, it is unlikely

Trade Policy

Trade policy reform has also made progress, though the pace has been slower than in
industrial liberalization. Before the reforms, trade policy was characterized by high tariffs
and pervasive import restrictions. Imports of manufactured consumer goods were
completely banned. For capital goods, raw materials and intermediates, certain lists of
goods were freely importable, but for most items where domestic substitutes were being
produced, imports were only possible with import licenses. The criteria for issue of
licenses were nontransparent, delays were endemic and corruption unavoidable. The
economic reforms sought to phase out import licensing and also to reduce import duties.
Import licensing was abolished relatively early for capital goods and intermediates which
became freely importable in 1993, simultaneously with the switch to a flexible exchange
rate regime. Import licensing had been traditionally defended on the grounds that it was
necessary to manage the balance of payments, but the shift to a flexible exchange rate
enabled the government to argue that any balance of payments impact would be
effectively dealt with through exchange rate flexibility. Removing quantitative
restrictions on imports of capital goods and intermediates was relatively easy, because the
number of domestic producers was small and Indian industry welcomed the move as
making it more competitive. It was much more difficult in the case of final consumer
goods because the number of domestic producers affected was very large (partly because
much of the consumer goods industry had been reserved for small scale production).
Quantitative restrictions on imports of manufactured consumer goods and agricultural
products were finally removed on April 1, 2001, almost exactly ten years after the
reforms began, and that in part because of a ruling by a World Trade Organization
dispute panel on a complaint brought by the United States. Progress in reducing tariff
protection, the second element in the trade strategy, has been even slower and not always
steady. As shown in Table 3, the weighted average import duty rate declined from the
very high level of 72.5 percent in 1991-92 to 24.6 percent in 1996-97.
However, the average tariff rate then increased by more than 10 percentage points in the
next four years.4 In February 2002, the government signaled a return to reducing tariff
protection. The peak duty rate was reduced to 30 percent, a number of duty rates at the
higher end of the existing structure were lowered, while many low end duties were raised
to5 percent. The net result is that the weighted average duty rate is 29 percent in 2002-03.

Although India’s tariff levels are significantly lower than in 1991, they remain among the
highest in the developing world because most other developing countries have also
reduced tariffs in this period. The weighted average import duty in China and southeast
Asia is currently about half the Indian level. The government has announced that average
tariffs will be reduced to around 15 percent by 2004, but even if this is implemented,
tariffs in India will be much higher than in China which has committed to reduce
weighted average duties to about 9 percent by 2005 as a condition for admission to the
World Trade Organization. Foreign Direct Investment Liberalizing foreign direct
investment was another important part of India’s reforms, driven by the belief that this
would increase the total volume of investment in the economy, improve
production technology, and increase access to world markets. The policy now allows 100
percent foreign ownership in a large number of industries and majority ownership in all
except banks, insurance companies, telecommunications and airlines. Procedures for
obtaining permission were greatly simplified by listing industries that are eligible for
automatic approval up to specified levels of foreign equity (100 percent, 74 percent
Potential foreign investors investing within these limits only need to register with
the Reserve Bank of India. For investments in other industries, or for a higher share of
equity than is automatically permitted in listed industries, applications are considered by
a Foreign Investment Promotion Board that has established a track record of speedy
decisions. In 1993, foreign institutional investors were allowed to purchase shares of
listed Indian companies in the stock market, opening a window for portfolio investment
in existing companies.
These reforms have created a very different competitive environment for India’s industry
than existed in 1991, which has led to significant changes. Indian companies have
upgraded their technology and expanded to more efficient scales of production. They
have also restructured through mergers and acquisitions and refocused their activities to
concentrate on areas of competence. New dynamic firms have displaced older and less
dynamic ones: of the top 100 companies ranked by market capitalization in 1991, about
half are no longer in this group. Foreign investment inflows increased from virtually
nothing in 1991 to about 0.5 percent of GDP. Although this figure remains much below
the levels of foreign direct investment in many emerging market countries (not to
mention 4 percent of GDP in China), the change from the pre-reform situation is
impressive. The presence of foreign-owned firms and their products in the domestic
market is evident and has added greatly to the pressure to improve quality.
These policy changes were expected to generate faster industrial growth and greater
penetration of world markets in industrial products, but performance in this respect has
been disappointing. As shown in Table 1, industrial growth increased sharply in the first
fiveyears
after the reforms, but then slowed to an annual rate of 4.5 percent in the next five years.
Export performance has improved, but modestly.

Industrial Policy

In the post-World War II period India was probably the first non-communist
developing country to have instituted a full-fledged industrial policy. The purpose of
the policy was to co-ordinate investment decisions both in the public and the private
sectors and to seize the ‘commanding heights’ of the economy by bringing certain
strategic industries and firms under public ownership. This classical state-directed
industrialisation model held sway for three decades, from 1950-1980. The model
began to erode in the 1980s. Following a serious external liquidity crisis in 1991 the
model was fundamentally changed.
Indian industrial policy in the period 1950 to 1980, as embodied in its five-year plans,
has long been the subject of intense criticism from the powerful neo-liberal critics of
the country’s development. In their view it was the change away from India’s
traditional industrial policy in 1991 towards liberalisation, de-regulation, and market
orientation that ushered in a new era of faster economic growth.
This paper takes a wide view of industrial policy, emphasising the government’s
continuing co-ordinating role in various spheres. It regards the institution of the
Planning Commission as a major benefit for the country particularly as its role in
formulating industrial policy in the narrow sense and in guiding India’s ongoing
industrial revolution in the broader sense is still widely accepted by the mainstream
political parties of the left and the right (for example, Bhartiya Janata Party, Indian
People’s Party). The paper suggests that industrial policy and planned economic
development did not come to an end with the deregulation of India’s traditional
investment regime in the 1980s and 1990s. Industrial policy has continued in a
different form during the period, facing an agenda of new issues and an updating of
older ones. The analysis of this paper suggests that today a central challenge for the
Planning Commission is to exploit India’s lead in ICT and its `institutional surplus’
(democracy, common law legal heritage) to raise the current 8 per cent trend rate of
growth to double-digit numbers while maintaining equitable distribution of the fruits
of economic progress. To do so, India requires a somewhat different industrial policy
than that pursued in the Nehru-Mahalanobis era, or that has been followed since then.
Introduction and Overview

In the post-World War II period India was probably the first non-communist developing
country to have instituted a full-fledged industrial policy. The
purpose of the policy was to co-ordinate investment decisions both in the public
and the private sectors and to seize the ‘commanding heights’ of the economy
by bringing certain strategic industries and firms under public ownership.
This policy programme was clearly greatly influenced both by close association
of the top Indian leaders with Fabian Socialism and UK labour party thinkers
like Harold Laski. It also drew inspiration from what was then regarded as
highly successful Soviet planning for industrial development. Indeed, emulating
the Soviet Union, industrial strategy in India was formulated and implemented
in the form of five-year plans. This classical Indian state-directed industrialisation model
held sway for three decades, from 1950-1980. The model began to erode in the 1980s.
Following a serious external liquidity crisis in 1991 the model appeared to be
fundamentally changed, if not abandoned altogether.

The Indian industrial policy, as embodied in the five year plans, has long been the subject
of intense criticism from the influential neo-liberal critics of the country’s development.
As Bradford DeLong, 2001, puts it: ‘The conventional narrative of India’s post-World
War II economic history begins with a disastrous wrong turn by India’s first prime
minister, Jawaharlal Nehru, toward Fabian socialism, central planning, and an
unbelievable quantity of bureaucratic red tape. This ‘license raj’ strangled the private
sector and led to rampant corruption and massive inefficiency. As a result, India
stagnated until bold neo-liberal economic reforms triggered by the currency crisis of
1991, and implemented by the government of Prime Minister Narasimha Rao and
Finance Minister Manmohan Singh, unleashed its current wave of rapid economic growth
growth at a pace that promises to double average productivity levels and living standards
in India every sixteen years.’ This echoes The Economist’s harsh assessment of the
overall Indian record for the first four decades of Indian independence, ‘The hopes of
1947 have been betrayed. India, despite all its advantages and a generous supply of aid
from the capitalist West (whose ‘wasteful’ societies it deplored), has achieved less than 2
virtually any comparable third-world country.
The cost in human terms has been staggering. Why has Indian development gone so
tragically wrong? The short answer is this: the state has done far too much and far too
little. It has crippled the economy, and burdened itself nearly to breaking point, by taking
on jobs it has no business doing.’ In the mainstream accounts of Indian economic
development the change away from India’s traditional industrial policy in 1991 towards
liberalisation, deregulation, market orientation has been hailed as ushering in a new era of
freedom from government controls and one which promises greater prosperity
for the Indian people.

This unshackling of the economy is credited with achieving the huge increase in India’s
trend rate of growth of GDP, from the socalled Hindu (Nehru-Mahalanobis) rate of 3 to
3.5 percent during 1950-80 to nearly 6 to 7 percent per annum over the last two decades.
To fulfil its promise, it is suggested that further liberalization is required both in India’s
domestic economy and in its external economic relations (for example, further
privatization, capital account liberalization, increasing foreign direct investment
(FDI)). India is regarded as a major beneficiary of globalisation by the international
financial institutions (IFIs) but is considered to need to go further along this road.
However, the present government led by [Link] Singh, and including reformers
with impeccable credentials in key economic positions (Chidambaram and Ahluwalia), is
thought to be hindered in this process by its Communist party coalition partners.
Research Methodology

Secondary Data
Secondary data: Data collected by someone else for some other purpose (but being
utilized by the investigator for another purpose).
Examples: Census data being used to analyze the impact of education on career choice
and earning.
(In movies) The hero reads a fictional account of the heroine’s “ideal man” (written for a
course in English composition) that seems to describe him accurately. He seeks
confirmation from his friends, concluding that he is her “ideal man”. (He never asks her
directly, but assumes the “facts” are correct).
Some Advantages of using Secondary data:
1. The data’s already there- no hassles of data collection
2. It is less expensive

The Sample
The sample consisted of sixteen public sector banks selected from the universe of
public sector banks in India. These banks included twelve vrom nationalized banks
group from SBI and its associate. Random Sampling technique was used for the
study was listed above.

Data Collection
The study is based on the secondary data. The data was collected through
Report on Trends and progress of Banking in India and statistical tables relating
to banking in India.
Tools Of Analysis
To evaluate the performance of banks, simple growth rate, exponential growth rate ,
mean, standard deviation ,and coefficient of variation were applied. To analyse the
performance, five parameters were selected. These are deposits, total expenditure,
spread, net profit, and total assets.
 DATA ANALYSIS AND INTERPRETATION

[Link] banks 1999- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- 2010- 2011- 2012- AVG
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
1 AB 13.74 13.97 12.73 12.34 23.61 29.50 18.98 22.77 20.27 18.65 24.81 24.36 21.00 11.99 22.33
2 BOB 15.00 5.23 14.48 7.38 9.95 11.46 15.16 33.37 21.71 26.55 25.40 26.60 26.00 23.13 21.78
3 BOI 7.46 8.24 15.54 7.94 10.16 11.01 19.17 27.63 25.13 26.46 21.11 30.08 6.47 19.99 19.69
4 CAB 14.40 23.05 8.40 12.59 19.76 12.23 20.53 21.90 8.21 21.30 25.55 25.28 11.25 8.81 19.43
5 CBI 17.04 15.74 13.53 8.54 9.27 8.66 9.43 24.51 33.27 18.99 23.49 10.64 9.38 15.22 18.14
6 COB 13.32 15.97 14.28 14.80 6.75 17.43 20.72 28.84 30.85 33.49 25.34 25.90 16.61 21.93 23.85
7 IKDBI 25.33 3.46 46.73 15.24 66.57 50.30 72.16 66.74 68.38 53.98 49.17 7.64 16.62 7.90 45.85
8 PNB 16.44 18.21 14.24 18.23 15.96 17.35 16.01 16.86 19.02 26.01 18.86 25.49 21.31 3.15 17.65
9 SBI 16.43 23.37 11.42 9.45 7.60 15.20 3.54 14.60 23.40 38.08 8.36 16.14 11.75 15.24 15.32
 Table1- Deposits of Public Sector Banks

INTERPRETATION-

The growth of deposits of public Sector banks for the period 1998—99 to 2012-13
taking the previous year as the base [Link] shown in the table the maximum growth rate
of deposits in Allahabad Bank is 29.50% and the minimum growth rate of public sector
banks is 11.99% . on the other hand if we take about Bank of Baroda the maximum
growth rate of public sector banks is 33.37% in the year 2006-07 and the minimum
growth rate of BoB is around 5.23% in the year 2000.01. In the same way The growth
rate of Bank of India i.e maximum is 30.08% in the year 2010-11 and the minimum
growth rate is around 6.47% in the year 2011-12. If we look forward to the last Bank i.e
the IDBI the highest growth rate which is expected is 72.16 in the year 2005-06 while
the minimum growth rate is expecting is 3.46% I n the year 2000-And the total average
of all the four banks i.e AB, BOB, BOI and fIDBI is 22.33,21.78,19.69 and 45.85.

Table2- Net Profit of Public Sector Banks

[Link] banks 1999- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- 2010- 2011- 2012- AVG
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
1 AB - - 100.98 106.94 179.16 16.92 30.34 6.23 29.94 - 56.95 17.97 31.18 - 35.65
48.64 42.43 21.15 36.51
2 BOB 19.30 - 38.76 41.55 25.13 -30.00 22.18 24.13 39.85 55.15 37.31 38.69 18.04 - 22.85
45.37 10.51
7 IKDBI - 45.75 102.01 67.25 18.49 -66.27 106.27 60.12 78.90 49.66 - 42.94 7.58 2.68 38.26
14.08 42.10
4 CAB 4.88 20.78 160.05 37.43 31.32 -17.08 21.06 5.77 9.59 32.42 45.79 33.24 - - 29.52
18.46 12.51
5 CBI 3.03 - 251.48 87.08 102.31 -42.18 -27.98 93.47 10.47 3.83 85.25 18.35 - 90.43 45.74
 69.17 57.44
6 COB 21.04 12.65 17.67 35.02 21.19 22 10.51 20.63 37.09 21.47 31.08 20.77 6.56 -4.73 19.22
7 IDBI 98.28 - -68.26 35.63 86.30 131.96 82.55 12.38 15.73 17.69 20.10 60.05 23.10 -7.36 36.65
68.26
8 PNB 9.68 13.60 21.30 49.75 31.64 27.19 2.07 6.99 33.03 50.86 26.35 13.52 10.16 -2.79 20.95

9 SBI 99.61 - 51.55 27.71 18.55 7.44 11.43 3.05 48.17 35.55 0.49 -9.83 41.66 20.48 23.86
21.80

INTERPRETATION
As we talk about the net profit of Public Sector Banks the maximum growth rate of
Allahabad bank is 106.94 in the yesr 2002-03 and the minimum growth rate of AB is
around 6.21 in the year 2006-07 and the average total of this bank is 35.65. Similarly if
we look at the Bank of Baroda the maximum growth rate or net profit is around 45.37%
and the minimum growth rate is -10.51 which is showing a negativity in the year 2012-
12. And the average total of this Bank is around 22.85. and the Bank Of India the
maximum growth rate is expected to ne 102.01 in the year 2001-02. And the mimimum
growth rate is expected to be 2.88% above and the average total of this bank is [Link]
the last bank of this is IDBI and the maximum growth rate is 131.26% and the
mimumum growth rate is -7.36% wfhich is negative and the average total is 36.65.

BANK 1999- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- 2010- 2011- 2012- AVG
S 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
AB 15.72 12.52 10.05 14.63 -1.42 8.29 17.17 28.98 35.96 16.78 11.07 27.18 39.88 18.96 21.3
BOB 7.98 12.83 3.91 0.06 -4.64 0.99 15.19 27.33 37.19 23.85 7.57 21.58 38.40 21.67 17.8
BOI 8.53 11.72 -1.98 4.54 -3.51 7.12 13.70 28.20 29.02 29.44 13.25 20.39 32.08 12.38 17.0
CAB 9.22 13.44 13.65 0.48 0.79 4.97 14.50 32.44 35.86 14.96 6.99 18.80 41.58 12.59 18.3
CBI 12.96 13.29 6.79 3.27 -4.33 0.37 4.96 15.30 38.09 34.18 16.38 18.34 41.58 12.59 17.8
COB 16.11 7.90 8.96 4.52 1.63 -2.96 22.14 33.06 38.84 36.76 16.99 23.53 27.61 14.81 20.8
IKDBI 38.62 36.63 -5.80 18.53 9.83 341.16 100.57 10.33 28.72 39.89 27.42 11.39 48.71 19.31 60.4
PNB 21.35 12.54 7.99 4.33 1.68 13.83 6.89 17.74 31.09 34.64 7.30 21.67 39.33 17.27 16.9
SBI 13.87 20.80 7.23 3.98 -1.83 0.13 12.46 9.79 26.31 31.49 15.50 6.27 24.23 17.14 13.3
 Table 3- Total expenditure of public sector banks

Interpretation-

The status of total expenditure growth rate of public sector banks for the period 1998-99
to 2012-13 taking the previous year as the base year. As shown in the table the maximum
growth rate of public sector banks of Allahabad Bank is 39.88 in the year 2011-12 and
the minimum growth rate of banks is 8.29% and the average total of this bank is 21.31. In
the same way the the growth rate of public sector banks i.e BOB is 38.40% and the
minimum growth rate of this bank is 0.06%. taking the BOI the maximum growth rate is
29.44% and the minimum growth rate is -1.98% and the average total is 17.07. and the
average was expected to be 17.87.
Therefore if we look at the IDBI the maximum growth rate is 341.16% and the minimum
growth rate is -5.80% and the sverage total average is 60.44. sAll the banks have similar
growth rates.

Table4- Spread of Public Sector Banks

BANKS 1999- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- 2010- 2011- 2012- AVG
[Link] 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
AB 14.96 20.67 7.29 24.55 19.34 25.63 15.65 10.99 1.71 21.22 22.78 51.76 28.34 -5.74 21.59
1
BOB 8.90 12.97 -2.91 11.91 22.26 15.85 6.56 19.25 3.32 30.97 15.93 48.20 17.21 9.68 18.34
2
BOI -8.24 27.82 11.24 10.68 8.11 1.61 17.66 30.71 22.92 30.02 4.67 35.70 6.44 8.55 17.32
3
CAB -7.86 31.01 -3.33 22.67 20.13 17.45 13.68 12.43 - 33.35 20.41 37.72 -1.71 2.47 8.85
4 12.14
CBI 16.94 18.17 5.92 23.61 11.85 11.91 0.21 3.96 - 0.24 14.22 109.22 -2.94 11.00 17.84
5 10.16
COB 21.20 26.84 7.55 26.70 21.68 17.17 8.62 6.63 10.34 17.16 - 20.77 7.025 8.86 14.146
6 30.79
IKDBI 42.21 11.44 41.34 40.41 64.19 - 102.23 73.19 2.82 96.00 70.16 91.87 4.99 18.22 51.31
 7 43.26
8 PNB -2.19 26.11 12.60 36.09 16.04 10.54 16.47 18.17 0.35 27.04 20.58 39.27 13.61 10.75 17.53

9 SBI 14.27 19.04 10.10 9.87 12.11 24.66 11.79 2.98 6.02 22.63 13.41 37.41 33.09 2.40 16.41

Interpretation-
Higher the speed, greater will be the profit margin for the banks. The growth of spread of
public sector banks for the period 1998-99 to 2012-13 taking the previous year as the
base year. As shown in the table the maximum growth rate of public sector banks of
Allahabad Bank in the year 2010-11 is 51.76% and the minimum growth rate is 1.71% in
the year 2007-08 and the average total of this bank is 21.59. on the other hand, the
maximum growth rate of ;public sector bank of Bank of Baroda is 48.20% in the year
2010-11 and the minimum growth rate of this bank is -2.91 which is showing negativity.
And the average total of this Bank is 18.34. In the case of Bank of India the maximum
growth rate of public sector banks is 35.70 in the year 2010-11, the minimum growth
rate of this bank is expected to be 4.67. and the average total is [Link] last bank or the
institution i.e the IDBI the maximum growth rate of this bank is 102.23 in the year 2005-
06 and the minimum growth rate is 2.82 in the year 2007-08. And the average is about
51.31. Among these banks the highest total average was achieved by IDBI Bank.

s.s.n BANKS 1999- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- 2010- 2011- 2012- AVG
oo 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
1 AB 13.14 11.90 12.28 13.27 23.72 30.08 22.48 22.37 22.57 17.73 24.36 24.31 20.92 11.72 19.34
2 BOB 12.20 8.05 11.98 7.77 11.37 11.23 19.78 26.24 25.46 26.62 22.39 28.77 24.81 22.31 18.49
3 BOI 3.97 6.25 17.19 9.77 10.74 11.92 18.21 26.15 26.26 26.09 21.93 27.71 9.50 17.70 16.67
4 CAB 13.06 22.12 8.69 13.63 21.31 10.81 20.41 24.95 8.78 21.67 20.53 26.95 11.33 10.20 16.74
5 CBI 17.39 13.95 11.33 8.54 10.93 8.29 8.87 24.54 33.27 19.12 23.71 14.83 9.55 16.68 15.78
6 COB 11.87 17.54 19.80 11.30 10.97 16.36 19.40 30.15 26.32 30.49 28.49 28.51 13.97 18.27 20.24
7 IKDBI 31.96 9.00 35.01 19.39 63.99 525.74 8.55 17.25 25.86 31.91 35.48 8.48 14.78 10.98 111.78
8 PNB 16.85 17.32 14.82 18.25 18.68 23.36 15.07 11.81 22.53 24.07 20.13 27.54 21.11 4.51 18.28
9 SBI 17.52 20.70 10.32 7.94 8.50 12.77 7.42 14.68 27.55 33.66 9.23 16.17 9.13 17.28 15.2

Table5- Totlal assets of Public Sector Banks

Interpretation-

The relevant data pertaining to the growth of total assets of public sector banks for the
period 1998-99 to 2012-13 taking the previous year as the base year as shown in the
above table.
As shown in the table the maximum growth rate of public sector banks of Allahabad
Bank in the year 2004-05 is 30.08% and the minimum growth rate is 11.72% in the year
2012-13 and the average total of this bank is 19.34 on the other hand, the maximum
growth rate of ;public sector bank of Bank of Baroda is 28.77% in the year 2010-11 and
the minimum growth rate of this bank is 7.77 which is showing positivity.. And the
average total of this Bank is 18.49. In the case of Bank of India the maximum growth rate
of public sector banks is 27.71 in the year 1999-2000, and the mimimum growth rate of
this bank is expected to be 3.97. and the average total is [Link] last bank or the
institution i.e the IDBI the maximum growth rate or the highest growth rate of this bank
is 525.74 in the year 2004-05 and the minimum growth rate is 8.48 in the year 2010-11.
And the average is about 111.78. Among these banks the total highest total average was
achieved by IDBI Bank which is 111.78.

Chapter-IV

Findings

There is lack of availability of resources for maintaining the accoiunts and available
sources are also less for maintaining the table.
No suitable software is available for maintaining the table and no such availability is
there to do so.

There is lack of time for maintaining the proper and wrll disciplined table because for
every work better and adjusted table need to be prepared.

No SPSS software is available tor maintain the proper and well design table.

It’s a vety time consuming process and without software this work is not easy to
complete on time and will take a long time.
Limitations

 The study is related to selected public sector banks and private sector
banks
 The secondary data which is used for the study is based on annual
report of the bank
 The quality of this research depends on quality and reliability of data
collected byresearch.
 There are varous methods for measuring out the performance but
without data its not possible.
 The study is basically based on the performance of public sector
banks.
 In the public sector banks the financial performance has been
analysed.

Suggestions

Thus we can suggest that performance evaluation of banks has become more
important with the introduction of second reform phase, The present study
examines all the factors affecting the growth and performance of banks with
reference to deposits, total expenditure, spread, net profit and total assets of
the second reform [Link] is a need to evaluate the performance in a
manner such that it should not creates any mishappening in the upcoming or
the future phase.
 Conclusion

The study has revealed that among the public sector banks, the mean of
deposits, total expenditure, spread, net profit and total assets were highest in
some of the [Link] by some of the banks. The deposits. total
expenditure and total assets. In terms od dispersion were more consistent
with the banks. Spread in terms of dispersion was more consistent with the
banks and net profit, in terms of discounts was more consistent with banks.
Furthermore, The EGR of deposits, total expenditure, spread, net profit and
total assets was highest with the IDBI.

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 Appendix

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