INTRODUCTION TO THE STUDY Financial statement is that statement which provides information on the firm’s position at a point in time and its operation over a period of time. Financial statement contains information about the wealth of the organization, which if well analyzed and interpreted can provide valuable insight into firm’s performance and its operations. Analysis of financial statement is of interests to lenders, investor’s, owners, outsiders, shareholders and others. Due to ongoing advancements in technology, new legislation, and other innovation, the field of finance is rapidly changing. Introduction to finance develops the three components of finance in an interactive framework that is consistent with the responsibilities of all- financial professionals, managers, intermediaries, and investors in today's economy. In the last decade, the academic study of finance has experienced an infusion of new concept and quantitative methodologies that pace it among the most sophisticated and growing areas of business and economics. New developments in the traditional areas of finance theory of rational investor portfolio choice, interpretation and determination of security prices, efficient corporate decision making has been approached from the perspective of a single integrating paradigm derived from economic theory. In our present day economy finance is defined as provision of money at a time when it is required. Every enterprise whether it is big, medium or small needs finance to carry out its operation and to achieve its target. Infact finance is so indispensable today that it is rightly said to be lifeblood of enterprise without adequate finance no enterprise can possibly accomplish it objectives 1
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INTRODUCTION TO THE STUDY
Financial statement is that statement which provides information on the firm’s
position at a point in time and its operation over a period of time.
Financial statement contains information about the wealth of the organization,
which if well analyzed and interpreted can provide valuable insight into firm’s
performance and its operations. Analysis of financial statement is of interests
to lenders, investor’s, owners, outsiders, shareholders and others.
Due to ongoing advancements in technology, new legislation, and other
innovation, the field of finance is rapidly changing. Introduction to finance
develops the three components of finance in an interactive framework that is
consistent with the responsibilities of all- financial professionals, managers,
intermediaries, and investors in today's economy. In the last decade, the
academic study of finance has experienced an infusion of new concept and
quantitative methodologies that pace it among the most sophisticated and
growing areas of business and economics.
New developments in the traditional areas of finance theory of rational
investor portfolio choice, interpretation and determination of security prices,
efficient corporate decision making has been approached from the perspective
of a single integrating paradigm derived from economic theory.
In our present day economy finance is defined as provision of money at a time
when it is required. Every enterprise whether it is big, medium or small needs
finance to carry out its operation and to achieve its target. Infact finance is so
indispensable today that it is rightly said to be lifeblood of enterprise without
adequate finance no enterprise can possibly accomplish it objectives
1
The importance of corporation finance has arisen because of the fact that
present day business activities are predominantly on a company or corporate
form of organization. The advent of corporate enterprises has resulted into:
• the increase in size and influence of the business enterprise
• wide distribution of corporate ownership
• separation of ownership and management
These factors have increased the importance of finance.
AIMS OF FINANCE
• Acquiring sufficient funds
• Proper utilization of funds
• Increasing profitability Maximizing firms value
• Estimating financial requirements
• Deciding capital structure
• Selecting a source of finance
• Selecting a pattern of investment
• Proper cash management
• Implementing financial control
• Proper use of surplus
2
BUSINESS FINANCE
Business finance is the activity, which is concerned with the acquisition and
conservation of capital funds in meeting the financial requirements and
overall objectives of the firm. Business finance deals primarily with raising,
administering and disbursing funds by private own business units operating in
non- financial fields of industry. To sum up in simple words we can say that
financial management as practiced by business firms can be called corporation
finance or business finance.
FINANCIAL STATEMENTS
Financial statements (or financial reports) are formal records of a business'
financial activities. It is a collection of data organized according to logical and
consistent accounting procedures. These statements provide an overview of a
business' profitability and financial condition in both short and long term.
A sound understanding of financial statements helps you:
• Identify unfavorable trends and tendencies in your business's operations
(for example, the unhealthy buildup of inventory or accounts receivable)
before the situation becomes critical.
• Monitor your cash flow requirements on a timely basis, and identify
financing needs early.
• Monitor important indicators of financial health (for example, liquidity
ratios, efficiency ratios, profitability ratios, and solvency ratios).
1) The total issued capital as at 31-03-2009 is Rs. 4,467,000,000 divided
into 2,467,000,000 equity shares of Rs.10 each held by central
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government and 2,000,000,000 equity Shares of Rs.10/- each held by
Public & Others. The bank’s authorized capital is Rs. 150,00,00,000.
The bank has issued approximately 9.5% of its authorized capital. It is
observed that there has been no change in the called-up capital. An
amount of Rs.6,000 towards allotment money has been collected in the
year 2008-2009 from the public. The share of central government in
paid-up capital stood at Rs 246700000 which is approximately 55.23%
of the paid-up capital. The balance of 44.77% is held by the public.
2) It is observed that during the year 2008-2009 the amount of reserves
and surplus has gone up by 13.2%. There has been no change in share
premium account. Transfers to statutory reserves and capital reserves
have increased during the year 2008-2009 by approximately 44% while
transfer to general reserve has dropped by 66%.
3) Deposits during the year 2008-2009 have grown by 18.6%%.Savings
bank deposits has grown by 13.71% and stood at Rs. 227,743,903
thousands. Deposits from banks and others has grown by 21.32% and
stood at Rs. 555,742,363 thousands.
4) The borrowings during the year 2008-2009 have gone down by
47.70%. Borrowings from outside India have gone down by a massive
36.59% during the year 2008-2009. On the other hand borrowings
from RBI has been cleared in 2006-2007. Borrowings from banks and
other institutions in India have gone down by 100% from Rs.
12,850,000,000. Borrowings from outside India are increased to Rs.
8,628,446,000 from 4,813,745,000. All the borrowings are non-
secured.
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5) Other liabilities, which include bills payable, and interest outstanding
has gone up 26.78% during the year 2008-2009. Outstanding interest
stood at Rs.3,241,705,000 during the year 2008-2009.
6) The total liabilities during 2008-2009 have increased by approximately
36.5%. It is important to note here that there was no change in share
capital, hence indicating that liabilities other than capital have gone up
during the year 2008-2009.
Assets
1) The cash and balance with RBI has deccreased by around 20.32%
during the year 2008-2009. The cash in hand, which has increased, by
Rs.3,94,608,000 stood at Rs.35,98,070,000 by 12.32%. Balance with
Banks in Current Accounts has decreased by 7.07% during the year
2008-2009.
2) The balances with banks and money at call and short notice is nil
during the year 2008-2009. The balances with banks in India in current
accounts and other deposits accounts have marginally decreased by Rs.
1294210 at 24.15%. There is no money at call and short notice in India
or outside India. The balances with banks outside India in current
accounts and other deposits accounts have increased to 171.98%. It is
important to note that there was Rs. 1,749,734,000 balance in current
accounts with banks outside India during the year 2007-2008, but stood
at around Rs.4,759,000,000 during 2008-2009.
3) Investments during the year 2008-2009 have marginally gone up by
26.71 % and stood at Rs. 296,510,497,000 . Provision for depreciation
on investments has increased in the year 2008-2009 by 33.62% and so
increase in gross investment. It is worth noting that around 72.12% of
the total investment is in government securities in the year 2008-2009
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while investment in shares is only 0.86%. Investment in debentures and
bonds in the year 2008-2009 has dropped 24.17% comparatively.
4) Advances during the year 2008-2009 have gone up by 18.26%. Term
loans comprise 55.56% of the total advances while cash credits,
overdrafts and loan repayable on demand comprise 41.32%. A majority
78% of advances is secured by tangible assets while unsecured
advances have gone up by 31.57% during the year 2008-2009.
There are no advances outside India while in India, advances in priority
and public sector account for 46.76%.
5) Investment in fixed assets during the year 2008-2009 has gone up by
3.57%. During 2008-2009, premises to the tune of Rs. 9,390,680,000
and other fixed assets including furniture fixtures of Rs.785,318,000
were added. The total accumulated depreciation as on 31-03-09 stood
at Rs.4,096,300,000.
6) Other assets have gone down by 15% during the year 2008-2009. Other
assets include outstanding interest and comprise around 32% of the
total. There has been a increase in outstanding interest in the year
2008-2009 as compared to 2007-2008. The inter-office adjustments is
nil for both the year.
7) The total assets during 2008-2009 have gone down approximately by
15%.
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Comparative Profit & Loss Accounts for the year ended31 st March 2008 and 31 st March 2009
(Rs in 000)Particulars 31-03-
2008
31-03-
2009
Increase/Decrease
% change
A. Income1. Interest earned 61,712,159 73,647,278 11,935,119 19.34%
2. Other income 9,647,573 11,419,243 1,771,670 18.36%
B. Expenditure1. Interest expended
44,988,795 52,060,613
7,071,818 15.72%
2.Operating 2,418,550 20.89%
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expenses 11,575,834 13,994,384
3. Provision and Contingencies
5,047,679 11,325,543
6,277,864 124.4%
C. Net Profit (A –
B)
7,685,981 9,747,424
2,061,443 26.82%
Total Income 85,066,521 71,359,732 (13,706,789) (16.1%)
Total
Expenditure
77,380,540 61,612,308
(15,768,232) (20.4%)
Analysis Based on Comparative Profit and Loss Account
A) Income
1) The total interest earned during the year 2008-2009 has gone up by
19.34%. Income on investments has increased by only 10.78% though
it may be observed that an investment during the year 2008-2009 has
gone up by 26.71%.
2) There is an increase of 18.36% in other income during the year 2008-
2009. Income from commission, exchange and brokerage has gone up
by 24.78%, while income from subsidiaries has decreased by a massive
74%.
B) Expenditure
1) There is an increase in interest expended during 2008-2009 it has gone
up by around 15.72%. During 2008-2009 the interest paid on deposits
has up by approximately 13.46% during the year 2008-2009
2) Operating expenses during 2008-2009 have gone up by around
20.89%. Payment to employees and directors fees is Rs. 10,290,000 of
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the operating expenses, advertisement and publicity expenses has gone
down by 7.67% during 2008-2009 while law charges have gone down
by 22.17%.
C) Net Profits
The net profits have shown an increase of approximately 26.82% during
2008-2009.
Statement of Cash Flow for the year ended 31st March 2008
(Rs. in ‘000)Particulars Rs. Year ended
31-03-07A. Cash flow from operating activities 7032660B. Cash flow from investing activities (683038)C. Cash flow from financing activities (14651653)D. Balances at the beginning of the
year
Cash and Balances with the RBI
Balances with Banks and Money at
Call
40679399
8740288
49419687
E. Balances at the end of the year
Cash and Balances with the RBI
Balances with Banks and Money at
Call
62888552
7532410 70420962
Total cash flow during the year
(A+B-C) or (D-E)
21001275
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Statement of Cash Flow for the year ended 31st March 2009
(Rs. in ‘000)Particulars Rs. Year ended
31-03-07A. Cash flow from operating activities (23853)B. Cash flow from investing activities (946030)C. Cash flow from financing activities (3083444)D. Balances at the beginning of the
year
Cash and Balances with the RBI
Balances with Banks and Money at
Call
62888552
7532410 70420962
E. Balances at the end of the year
Cash and Balances with the RBI
Balances with Banks and Money at
Call
51153786
15213849 66367635
Total cash flow during the year
(A+B-C) or (D-E)
(4053327)
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RATIO ANALYSIS
Ratio analysis is widely used of financial analysis. It is defined as the
systematic use of ratio interpreter statement so that strength and weakness of a
firm as well as the historical performance and correct condition, can be
determined.
Single most important technique of financial analysis in which quantities are
converted into ratios for meaningful comparisons, with past ratios and ratios
of other firms in the same or different industries.
Ratio analysis determines trends and exposes strengths or weaknesses of a
firm.
TYPES OF RATIO
1. Short term Solvency Ratio
2. Long term Solvency Ratio
3. Turn-over Ratio
4. Profitability Ratio
1. SHORT TERM SOLVENCY RATIO
These are the Ratio, which measures, the short-term solvency of
financial position of the firm. These Ratios are calculated to comment upon
the short term paying capacity of a concern or the firm’s ability to current
It may be defined as the relationship current liabilities. The Ratio is a
measure of the general liquidity of the Bank for a short period of time.
Current Assets (CA) Current Ratio = -----------------------------------------
Current Liabilities (CL)
CURRENT RATIO
YEAR 2007-08 2008-09
Total current asset567,625,623 654,385,269
Total current liabilities
734,083,818 859,088,254
Current Ratio 0.77 0.76
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0 .7 54
0 .7 56
0 .7 58
0 .76
0 .7 62
0 .7 64
0 .7 66
0 .7 68
0 .77
C u rre n t R a t io
2 0 0 7 -08
2 0 0 8 -09
Interpretation:
As conventional rules, a current ratio of 2:1 or more is considered
satisfactory. The higher the current ratio, the greater the margin of safety, the
larger the amount of current assets in relation to current liabilities, the more
the items ability to meet its current obligations.
b) QUICK RATIO
It can be defined as the relationship between quick or liquid assets and
current or liquid liabilities .An assets is said to be liquid if it can be converted
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and cash with in a short period without loss of value. Quick assets include all
current assets except stock and prepaid expenses.
Quick/Liquid Assets Quick Ratio = ------------------------------------------
Current Liabilities
YEAR 2007-08 2008-09
Total current asset567,625,623 654,385,269
Total current liabilities 734,083,818 859,088,254
Current Ratio 0.77 0.76
QUICK RATIO
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0 . 7 5 4
0 . 7 5 6
0 . 7 5 8
0 . 7 6
0 . 7 6 2
0 . 7 6 4
0 . 7 6 6
0 . 7 6 8
0 . 7 7
C u r r e n t R a t i o
2 0 0 7 - 0 8
2 0 0 8 - 0 9
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Interpretation:
By conversion a quick ratio of 1:1 is considered satisfactory. It is
considered that if quick assets equal to current liabilities, then the concern can
meet its obligations.
CAPITAL STRUCTURES AND LONG TERM SOLVENCY
RATIO
Debt
Debt –Equity Ratio = ------------------------
Equity
Total Liabilities Solvency ratio = -----------------------------------
Total Assets
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Comments:
Debt-Equity Ratio is decreased from 2007-08(4.01) March 2008-2009
(2.09) as the ratio has been decreased by 47.70%, from Rs. 1792 cr. to 932 cr.
It shows that the Bank financial position is becoming more sound as it is
crossing every financial year.
Year 2007-08 2008-09
Debt 17,919,987 9,370,367
Equity 4,467,000 4,467,000
Total Assets 976,480,079 829,393,236
Total Liabilities 829,393,236 976,480,079
YEAR 2007-08 2008-09Debt-Equity RATIO 4.01 2.09
Solvency Ratio 1.17 0.84
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There is fall in the ratio but all the time it always maintain the ratio
which is above standard (2:1) so, we can that solvency position is not bad at
all.
0
0 . 5
1
1 . 5
2
2 . 5
3
3 . 5
4
4 . 5
2 0 0 7 - 0 8 2 0 0 8 - 0 9
D e b t - E q u i t y R A T I O
S o l v e n c y R a t i o
1) RETURN ON EQUITY RATIO
Return on Equity Ratio indicates the profitability of owner’s investment.
Net Profit
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Return on Equity Ratio = --------------------- X 100Equity
Particulars 2007-08 2008-09
Net Profit7,685,981 9,747,424
Equity4,467,000 4,467,000
Ratio 58.12% 45.83%
Interpretation:
With compared to the figures of the year 2007-08, there has been fall of
profit to total equity during the year 2008-09. So, the overall position of the
bank is not favorable at all. Its position was good in the year 2007-08.
880.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
2007-08 2008-09
Ratio
Ratio
1. RETURN ON INVESTMENT RATIO
This ratio indicates profitability according to the total money invested
Net Profit Return on Investment Ratio = ---------------------------- X100 Investments
Rs. In thousand
Particulars 2007-08 2008-09
Net Profit 7,685,981 9,747,424
Investments 234,002,500 296,510,497
Ratio 3.284 3.287
Interpretation:
The above study shows on upward trend in the ratio in the year 2008-09 as
compared to 2007-08, which is same so it’s a good sign for the bank.
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3 . 2 8 %
3 . 2 8 %
3 . 2 8 %
3 . 2 9 %
3 . 2 9 %
3 . 2 9 %
2 0 0 7 - 0 8 2 0 0 8 - 0 9
R a t i o
R a t i o
RETURN ON CAPITAL EMPLOYED RATIO
90
EBIT Return on Capital Employed Ratio = -------------------------------X100 Capital Employed
Rs. In thousand
Year2007-08 2008-09
EBIT85,066,521 71,359,732
Capital Employed
786,294,309 917,607,751
Year
2007-08 2008-09
Return Capital
10.81% 7.77%
Interpretation:
The Return on Capital has been very low in the year 2008-09 as
compared to previous year that is 2007-08. The higher the Return on capital
means higher the soundness of the bank. In the year 2007-08, Return on
Capital is 10.81 in the next year 2008-09 (7.77%) decreased little.
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0 . 0 0 %
2 . 0 0 %
4 . 0 0 %
6 . 0 0 %
8 . 0 0 %
1 0 . 0 0 %
1 2 . 0 0 %
2 0 0 7 - 0 8 2 0 0 8 - 0 9
R e t u r n C a p i t a l
R e t u r n C a p i t a l
NET PROFIT TO TOTAL INCOME
The bank net profit as compared to the total income of the
bank is depicted with this ratio of net profit to total income.
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Net Profit Net Profit to Total Ratio = ----------------------------------- X100 Total Income
Rs. In thousand
Particular2007-08 2008-09
Net Profit7,685,981 9,747,424
Total Income85,066,521 71,359,732
Ratio9.03% 13.65%
Interpretation:
The Net Profit of the bank has increased from 9.03% in the year 2007-
08 to 13.65% in the year 2008-09. But there has been steady growth rate of
net profit from the year 2007-08. So, increase in the net profit is good at all
for the bank.
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0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
2007-08 2008-09
Ratio
Ratio
2. NET PROFIT TO TOTAL DEPOSIT RATIO
The ratio illustrates the profit, which is earned with respect to the
deposit made.
Net Profit
Net Profit to Total Deposit Ratio = -------------------------------------- X100
Total Deposits
Rs. In thousand
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Particulars
2007-08 2008-09
Net Profit
7,685,981 9,747,424
Total Deposit
716,163,831 849,717,887
Ratio
1.07% 1.14%
Interpretation:
The above ratio shows a increase in the net profit respective of a
steady growth of deposits.
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1 . 0 2 %
1 . 0 4 %
1 . 0 6 %
1 . 0 8 %
1 . 1 0 %
1 . 1 2 %
1 . 1 4 %
2 0 0 7 - 0 8 2 0 0 8 - 0 9
R a t i o
R a t i o
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FINDINGS & RECOMENDATIONS:
1. The authorized capital of the Bank is Rs.1500 crores divided into equity
shares of Rs 10 each.
2. The Bank has issued and subscribed capital of Rs.446.7 crores. The capital
was last raised during 2004-2005.
3. The share of central government of India is 55.23% of the paid-up capital.
The balance of 44.77% is held by the public. The bank has no amount due
towards allotment money.
4. The total foreign shareholding (NRI and FIIs) as at 31st March 2009 was
8.8%, which is within the stipulated level of 20% of the total paid-up
capital of the Bank.
5. During 2008-2009, reserves and surplus went up by 13.2% and it was
Rs. 47,743,491,000 as at 31st March 2009.
6. The net worth of the Bank was Rs.1521.38 crores as on 31st March 2009.
7. The total deposit stood at Rs. 84,971 crores at the end of 2009.
8. In 2008-2009, the deposits grew by 18.6%.
9. A majority 56% of the deposits have a maturity of over 1 year and below 3
years. Only 2% of the deposits have a maturity period of 5 years and
above.
10. The Bank’s share in the total deposits of Scheduled Commercial
Banks (SCBs) stood at 25.40% at the end of 2009 stood at 386.38 crores.
12) The Bank’s cost of deposit came down to 5.49% for the year
2008-2009 from 6.99% for the year 2007-2008.
13) Borrowings during the year 2008-2009 went down by 47.70%.
14) Borrowings from outside India went up by massive 79.25% during
2006-2007 and stood at Rs.882.84 crores as at 31st March 2007.
15)The entire borrowings of the Bank, both from within India as
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well as outside India are un-secured.
16)A major 47% of the borrowings have a maturity period of 91 to
180 days. Only 3% of the borrowings have maturity of over 1
year and below 3 years.
17) The total liabilities during 2008-2009 went up by 17.7%.There
was no change in share capital, hence indicating that liabilities
other than capital have gone up.
18) The cash in hand which was Rs.6288.86 crores at the end of 2008
went down to Rs.5115.38 crores as on 31st March 2009.
19) The Bank’s balance with RBI in Current Accounts decreased by
20.32% during 20082009
20) The balances with Banks outside India in Current Accounts and
other deposit accounts gone up by 412.79% during 2008-2009.
21) The Bank does not have money at call and short notice with
Banks or other institutions in India or outside India.
22) Investments increased by 26.61% during 2008-2009.
23) A majority 62% of the investments have maturity period of over
5 years. Around 11% of the investments are short term with
maturity below 1 year.
24) Around 71.70% of the Bank’s investments is in government
securities while only .89% of the total investment is in Equity
shares.
25) The average yield on investments during 2008-2009 stood at
9.33%.
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CONCLUSIONS:
The topic “AN ANALYSIS OF THE FINANCIAL STATEMENT OF
ALLAHABAD BANK” was undertaken to study in detail regarding
the banking function and financial statement analysis.
After having conducted by the analysis for the first objective i.e. the study and
analysis of ALLAHABAD BANK has the tremendous improvement
achievement done by ALLAHABAD BANK. After completing 100 years
ALLAHABAD BANK has achieved tremendous results in short period of
span. This shows in short period time it will number one in banking sector.
Nearly 95% of customers are satisfied. Taking overall into account we can say
that good services are offered to customer.
The one of the main objective is service, the service offered by
ALLAHABAD BANK to the customer in terms of ATM, Clearance, Locker
facility, e- Cheque facility, etc. these are facilities given by the bank in all
facility they doing well compared to the other bank.
As far as the main concerned is Market Potentiality for ALLAHABAD
BANK. It is observed form the analysis that the bank can expand its market
by few changes and improving advertisement. By reviving the interest rates,
reducing the margins etc. bank can considerably attract new customers.
Thus from this analysis it is seen that the overall performance of the
institution is profitable. And in this stiff era of competition by making some
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minutes changes the bank a successfully maintain and improve its market
position.
ANNEXURE
Tenor Existing Interest Rate p.a. (%)
Revised Interest Rate p.a. (%)
For below
Rs. 1 cr
For Rs. 1 cr to
less than Rs. 10 cr
For Rs.10 cr & above
For below Rs. 1 cr(w.e.f.
23.11.09)
For Rs. 1 cr to less than
Rs. 10 cr(w.e.f.
18.11.09)
For Rs.10 cr& above
(w.e.f. 18.11.09)
7 daysto
14 days
NA 1.50 1.50 NA 1.50 1.50
15 daysto
29 days
3.00 2.00 2.00 3.00 2.00 2.00
30 daysto
45 days
3.00 2.25 2.25 3.00 2.25 2.25
46 daysto
60 days
4.00 2.75 2.75 4.00 2.75 2.75
61 daysto
90 days
4.00 2.75 2.75 4.00 2.75 2.75
91 daysto
179 days
5.25 3.25 3.25 5.00 3.25 3.25
180 days to 269 days
6.00 4.25 4.25 5.50 4.25 4.25
270 days to 364 days
6.00 5.00 5.00 5.50 5.00 5.00
1 yearto
less than2 years
7.00 5.75 5.75 6.50 6.00 6.00
2 yearsto
less than 3 years
7.00 5.75 5.75 6.75 5.50 5.50
100
3 yearsto
less than 5 years
7.25 5.50 5.50 7.00 5.50 5.50
5 yrs andupto 10 yrs
7.50 5.50 5.50 7.25 5.50 5.50
The above rates will be applicable for fresh deposits and renewal of deposits and rates are subject to revision at any time.
As part of our Centenary year celebrations, Senior Citizens are offered an additional rate of 0.75% over and above the mentioned rates for deposits with maturity period above 91 days. These rates are applicable to deposits opened / renewed after March 12, 2008.
101
Non Resident (External) Rupee Savings Deposit Account (NRE-SB)
Interest Rate % p.a.(unchanged since 18.11.2005)
3.50
Non Resident (External) Rupee Term Deposit Account (NRE)With effect from 01.03.2010
Period Existing rate % p.a.w.e.f 1st February,
2010
Revised Rate % p.a.w.e.f 1st March,
2010
1 year to less than 2 years
2.60 2.59
2 years to less than 3 years
2.91 2.83
3 years only 3.53 3.44
PENAL RATE OF INTEREST FOR PREMATURE WITHDRAWAL OF DOMESTIC TERM DEPOSITS
Period of Deposit
1.Amount of DepositPenal Rate of Interest
Premature closure of term deposits for reinvestment in our bank
Any amount
No penal rate to be charged2.
15 days and upto 1 (one) year*
Any amount
No penal rate to be charged
3. All others All others 1 % penal interest to be charged
The above rates are applicable to fresh deposits and for renewal of deposits only.
These rates are subject to change without notice and the depositors will be advised
of the current rates on the date of deposit. The depositors may contact: