1

CHAPTER-I

EXECUTIVE SUMMARY
Syndicate Bank was established in 1925 in Udupi, the abode of Lord Krishna in

coastal Karnataka with a capital of Rs.8000/- by three visionaries - Sri Upendra

Ananth Pai, a businessman, Sri Vaman Kudva, an engineer and Dr.T M A Pai, a

physician - who shared a strong commitment to social welfare.

This project focuses on the study of organization system and analyses the

various Assets with reference to Syndicate Bank.

Topic of the study:

“Analytical study of various assets with reference to syndicate bank”

Need for the study:

The present study throws light on the various assets, analysis different assets

and presents the working of organization.

Methodology:

This is an analytical study based on the secondary data collected from the

published annual reports of the syndicate bank, internet, books, etc. In addition the

primary data required will de collected from the bank officials through interaction.

Data collection:

The data collected for this study is from the annual reports from 2002-03 to

2006-07. The data collected will be processed, edited and presented through the tables,

charts, etc.
 2

Data Analysis:

The collected data was analyzed and interpreted with the help of trend ratio,

growth ratio etc.

Outcome and benefit of the study:

The conclusion drawn is helpful to know about the various assets of the

syndicate bank and it will be helpful to know performance of the assets from the

analysis made.

Objective if the study:

a) To study about the organization,

b)
To analyses the various assets of the bank, and

c) To draw conclusion on various assets.

Limitation of the study

i) This study is based on the secondary data.

ii) Conclusions are based on data collected for this study.

 3

CHAPTER-II

INTRODUCTION

A bank is a business which provides financial services for profit. Traditional

banking services include receiving deposits of money, lending money and processing

transactions. Bank plays a premier role in the financial system of a country. The

banking activities include acceptance of deposits, repayment of the same on demand,

lending the surplus funds to earn profits by way of interest, commission, brokerage

etc.

Origin of Bank:

The word ‘bank’ or ‘banking’ is derived from the Italian word ‘banco’, the

Latin word ‘bancus’ and the French word ‘banque’ which means a bench used by the

money –changers and money-lenders in ancient and medieval times.

In Italy, Greece, England and other European countries, the basic function of

moneylender was the money lending and the money changing. In England, the origin

of banking can be traced to the goldsmiths, who used to perform the functions of

lending and changing money. The goldsmiths used to accept deposits of gold or

money from the rich people for safe custody and issue receipts for the same. In course

of time, because of lack of confidence in goldsmiths, independent banking institutions

were set up to finance commerce, trade and industry. By 1830, big bank formed as

joint stock companies under the regulation of government came into existence in

England and later in other countries.

Banks are playing a very important role in the development of trade,

commerce and industry. They have become indispensable to the economic

 4

development of the country. They create credit, mobilize the savings from the people

and provide funds for the business. They perform several functions, which are useful

and valuable to trade, and commerce and industry.

Meaning and Definition of Bank;

A bank is an institution, which deals in money and provides credit. It borrows

money from those who have surplus money and lends the same to those who are in

need of it. It is a dealer financial system.

The bank has been defined by various authors as follows:

According to H.P.Sheldon’s “ The function of receiving money from his

customer and repaying it by honoring their cheques as and when required is the

function above all other functions which distinguish a banking business from any

other kind of business”.

Section 5(1) (b) of the Banking Regulation Act, 1949 defines “banking” as the

accepting, for the purpose of lending or investment, of deposits of money from the

public, repayable on demand or otherwise and withdrawable by cheque, draft and

order or otherwise.

Section 5(1) (c) defines “banking company” as any company which transacts

the business of banking in India. However, the acceptance of deposits by companies

for the purpose of financing their own business is not regarded as “banking” within

the meaning of the Act.

The essential characteristics of the banking business as defined in section 5(b)

of the Banking Regulation Act are:

i. Acceptance of deposits from the public,

 5

ii. Using such deposits for the purpose of lending or investment,

iii. Deposits are repayable on demand or otherwise, and

iv. Deposits are withdrawals by means of any instrument whether a cheque or

otherwise.

Deposits:

Deposits are the main source of funds for commercial banks. The amount

mobilized as deposits is then lent in the form of advances. The growth of deposits

depends on savings. For economic growth to take place, it is essential that these

savings are mobilized and channelised for capital formation that, in turn, accelerates

economic growth. Banks are important financial intermediaries between savers and

borrowers. Banks mobilize savings by accepting deposits. Deposits may be

categorized into

Types of Deposit Accounts: While various deposit products offered by the bank are

assigned different names. The deposit products can be categorised broadly into the

following types.

"Demand deposits" means a deposit received by the Bank which is withdrawable on

demand.

1.
"Savings deposits" means a form of demand deposit which is subject to

restrictions as to the number of withdrawals as also the amounts of withdrawals

permitted by the Bank during any specified period.

2.
"Term deposit" means a deposit received by the Bank for a fixed period

withdrawable only after the expiry of the fixed period and include deposits
 6

such as Recurring / Double Benefit Deposits / Short Deposits / Fixed

Deposits /Monthly Income Certificate /Quarterly Income Certificate etc.

3.
"Notice Deposit" means term deposit for specific period but withdrawable on

giving atleast one complete banking day's notice.

Kinds of Banks:

Banks may be classified into the following major categories:

1. Commercial banks.

2. Central bank.

3. Exchange banks.

4. Indigenous bankers.

5. Regional rural banks. and

6. Co-operative banks.

1. Commercial Banks:

Commercial banks are the joint stock companies, which deal in money and credit.

A commercial bank may be defined as financial institution, which accepts deposits

from the public deposits withdraw able by cheques and uses such deposits of money

for lending purpose. Its function is to make use of such deposits for lending purpose.

Commercial banks render various utility services and agency services to their

customers and the general public.

2. Central Bank

In every country, there is one bank called a central bank, which is the highest

monetary and banking authority in the country. It controls, regulates and supervises

the activities of all other banks in the country. It also controls the volume of credit
 7

created by the commercial banks and manages the issue and circulation of currency

notes so as to safeguard the financial stability in the country.

The central bank of India is the ‘Reserve Bank of India’ established in 1935,

originally as a shareholders’ bank in the private sector but later on it was nationalized

in 1949.

3. Exchange Banks:

Exchange banks are a special type of banks, which finance mainly the foreign

trade of the country. As the financing of foreign trade involves the buying and selling

of foreign currencies, these banks are known as exchange banks. All the foreign

exchange banks working in India at present are unfortunately owned, managed and

controlled by foreigners and therefore they are known as Foreign Exchange Banks.

They enjoy complete monopoly in the field of foreign trade. There were 14 foreign

exchange banks with 129 branches at the end of 1992 running in important cities and

towns in India.

4. Indigenous Bankers:

In India, there are special types of bankers known as Indigenous bankers who

also carry on banking business in indigenous way. The term ‘indigenous’ means

‘local’ as distinguished from ‘foreign’. The indigenous bankers are generally

individuals or partnership firms who combine banking business with their trading and

commission business. The business of these bankers is generally family business.

They employ their own capital.

 8

5. Regional Rural Banks (RRBs):

The government of India promulgated on September 26, 1975 Regional Rural

Banks Ordinance, 1975, to set up regional rural banks. The ordinance was later on

replaced by an act of parliament, known as Regional Rural Banks. The primary

objective of the regional rural banks is to provide credit and other facilities

particularly to the weaker sections of the community, small farmers, marginal farmers,

landless labors, artisans and small enterprises etc.

6. Co-Operative Banks:

Co-operative banks are financial institutions organized under the provision of the

Co-operative Societies act of the state concerned. They are essentially co-operative

credit societies organized by the members. To meet there financial requirements on

short term or long term basis. The primary object of co-operative banks is to provide

cheap and adequate credit to their members. Such co-operative banks are based on the

principles of self- reliance and mutual co-operation.

Redressal of complaints and grievances

Depositors having any complaint / grievance with regard to services rendered by the

bank has a right to approach authority (ies) designated by the bank for handling

customer complaint / grievances. The details of the internal set up for redressal of

complaints / grievances will be displayed in the branch premises. The branch officials

shall provide all required information regarding procedure for lodging the complaint.

In case the depositor does not get response from the bank within 60 days from date of

complaint or he is not satisfied with the response received from the bank, he has a

right to approach Banking Ombudsman appointed by the Reserve Bank of India.

 9

Credit creation:

Banks are creators of credit. The creation of credit is an important function of a

bank and this function distinguishes banks from the non-banking institutions. Banks

create deposits in the process of their lending operations. The bank, after keeping

aside a certain portion of this deposit in the form of reserves, lends this amount. This

process continues and repeats in all the banks or in the banking system as a whole.

Lending of money:

Commercial banks mobilize savings from the surplus-spending sector and lend

these funds to the deficit-spending sector. They facilitate not only flow of funds but

flow of goods and services from producers to consumers through this function of

lending. Commercial banks facilitate the financial activities of not only the private

sector but also of the government. Funds are lent in the form of cash credit, overdraft,

and loan system.

Ancillary functions:

Besides the primary functions of mobilizing deposits and lending funds, banks

provide a range of ancillary services, including transfer of funds, collection, foreign

exchange, safe deposit locker, gift cheques, and merchant banking. Thus, banks

provide a wide variety of banking and ancillary services.

 10

CHAPTER-III

METHODOLOGY

The study analyses the various assets of Syndicate bank. The methodology

adopted in his study is analytical and data were collected from syndicate bank.

The data required for the purpose of this study is of two types:

i) Primary data

ii) Secondary data

Data collection

Primary data required was collected from the bank officials through interaction.

The secondary data was collected from the published annual reports of the Syndicate

bank of five years (i.e.2002-2003 to 2006-2007).

Data presentation

The data have been presented in the form of tables and graphs in order to enable

us to understand them in accordance with the objectives of study.

Data analysis and interpretation

The data have been analyzed with the help of trend ratios. 2002-03 is considered

to be the base year whose value is equal to zero. Then, the values for subsequent years

i.e.2003-04 to 2006-07 are calculated & compared with the base year values on year to

year basis.

The overall increase or decrease in the values of various assets during the study

period has been calculated for each item of individual assets by applying the following

formula.
 11

Fifth year value (2006-07)

Overall increase or decrease in value = ---------------------------------- ----------------- * 100
Base year value (2002-03)

Objectives of the study

The following objects have been set for the study.

i) To analyse the various assets of the bank.

ii) To study the trends of various assets held by the Syndicate bank.

iii) To compare the various assets held by the Syndicate bank and

iv) To draw conclusion on various assets.

Limitation of the study

i) This study is based on the secondary data.

ii) Conclusions are based on data collected for this study.

iii) The findings are drawn only based on the last five year data and

iv)The study is restricted to the quantitative analysis rather then the qualitative

analysis
 12

CHAPTER-IV

BRIEF HISTORY OF SYNDICATE BANK

Syndicate Bank was established in 1925 in Udupi, the abode of Lord Krishna in

coastal Karnataka with a capital of Rs.8000/- by three visionaries - Sri Upendra

Ananth Pai, a businessman, Sri Vaman Kudva, an engineer and Dr.T M A Pai, a

physician - who shared a strong commitment to social welfare. Their objective was

primarily to extend financial assistance to the local weavers who were crippled by a

crisis in the handloom industry through mobilising small savings from the community.

The bank collected as low as 2 annas daily at the doorsteps of the depositors through

its agents under its pigmy deposit Scheme started in 1928. This scheme is the bank's

brand equity today and the bank collects around Rs. 2 crore per day under the scheme.

The progress of Syndicate Bank has been synonymous with the phase of

progressive banking in India. Spanning over 80 years of pioneering expertise, the bank

has created for itself a solid customer base comprising customers of two or three

generations. Being firmly rooted in rural India and understanding the grassroot

realities, the bank’s perception had vision of future India. It has been propagating

innovations in banking and also has been receptive to new ideas, without however

getting uprooted from its distinctive socio-economic and cultural ethos. Its philosophy

of growth by mutual sustenance of both the bank and the people has paid rich

dividends. The bank has been operating as a catalyst of development across the

country with particular reference to the common man at the individual level and in

rural/semi urban centres at the area level.

 13

The bank is well equipped to meet the challenges of the 21st century in the

areas of information technology, knowledge and competition. A comprehensive IT

plan is being put in place and the skills and knowledge of the bank’s personnel are

being upgraded through a variety of training programmes to promote customer delight

in every sphere of its activity. The bank has launched an ambitious technology plan

called Centralised Banking Solution (CBS) whereby 500 of bank’s strategic branches

with their ATMs are being networked nationwide over a 4 year period.

Memorable Milestones in an 82-Year Journey

2000: First Specialised Capital Market Services branch opened at Mumbai

2001: First branch under CBS (Core Banking Solution) started operation at

Bangalore.

2002: Centralised Banking Solution under the brand name “Syndicate-e-banking”

launched at Delhi, Mumbai, Bangalore and Manipal.

2003: Toll Free Voice Mail System for redressal of grievances introduced.

2004: Bank ties up with United India Insurance Co. Ltd. for distribution of Non-Life

Insurance products

2004: Utility bill payment services through Internet banking introduced.

2005: Introduced On-line reservation of Railway Tickets through Indian Railway

Catering & Tourism Corporation Ltd. (IRCTC) for Internet banking customers of our

bank.

2006: Bank MOU with M/s.CMC Ltd., for making Syndicate Institute of Bank

Management (SIBM) a center of excellence of global standards and provide quality

management education.
 14

VISION
 15

Awards won by the Bank over the years:

Year Name of the Award

1972 INDIAN MERCHANTS' CHAMBER AWARD for outstanding
contributions towards welfare of community
1975 FICCI AWARD for outstanding achievements in agriculture
1975 LAGHU UDYOG SAHAKARI AWARD by the national alliance of
young entrepreneurs for bank's significant contributions to the
development of small scale industries and assistance to the young
entreprenueurs through self employment clinics

1975 CERTIFICATE OF MERIT for bank's house journal "GIANT"

1977 ASSOCHAM AWARD for promotion of rural and agricultural activities
of Syndicate Agriculture Foundation sponsored by the bank.
1978 NATIONAL TROPHY for outstanding export performance
1981 NATIONAL INVESTMENT AND FINANCE AWARD for Priority
Sector lending.
1990 CHAUDHARI CHARAN SINGH MEMORIAL NATIONAL AWARD
for rural development
2001 Banking Technology Award for innovative use of Banking Applications
on INFINET awarded by IDRBT, Hyderabad
2006 Institute for Development and Research in Banking Technology
(IDRBT), established by Reserve Bank of India has conferred Syndicate
Bank, “Special Award for Use of IT for Customer Service in Semi-
Urban and Rural Areas”. The award was given to Shri C P Swarnkar,
Chairman & Managing Director, Syndicate Bank by Dr Y.V. Reddy,
Honorable Governor, Reserve Bank of India on September 02, 2006 at
Hyderabad.
 16

Products & Services

1. Synd Instant - (RTGS System for instant transfer of funds)

Real Time Gross Settlement (RTGS) is a technology based initiative for

improvement of Payment & Settlement System linked to the funds management.

RTGS is a gross settlement in which both processing and final settlement of funds

transfer instructions take place continuously i.e. in real time and transfers are settled

individually against the present clearing system. RTGS settles payments on a

transaction basis instead of on net settlement basis adopted presently at clearing

houses. The funds transfer through RTGS is instant, final and irrevocable.

It is a remittance solution to both corporate customers and individual customers

for transfer of funds from their accounts with us to other customers of other bank

branches, which are RTGS, enabled.

2. Electronic Funds Transfer (EFT) System

The Electronic Funds Transfer (EFT) System was introduced by the Reserve

Bank of India in 1995 for quick movement of funds between different Banks for the

Bank Customers. The scheme is available for transfer of funds across the Banks at 14

centres at present where Reserve Bank of India manages the Clearing Houses namely

Ahmedabad, Bangalore, Bhubaneshwar ,Chandigarh ,Chennai, Guwahati, Hyderabad,

Jaipur, Kanpur, Kolkata, Mumbai ,Nagpur, New Delhi, and Thiruvananthapuram . The

15th centre to be started soon is at Patna.

 17

3. Syndicate Gift Cheques

a. Ideal Gift suitable for any occasion like birthday , naming ceremony, thread

ceremony, marriage, marriage -anniversary, Deepavali, Christmas etc.

b. Gift cheques are issued at par, i.e., without collecting any charges whatsoever.

c. Available in denominations of Rs 51,Rs 101 and Rs 501.

d. Issued at over 786 branches all over India and encashable at par at any

Branches / Extension Counters all over India, i.e., in about 2000 outlets of the

Bank.

4. NRI Services

Syndicate bank offer the following bank accounts to NRI’s:

a. Non-resident (External) Rupee Accounts (NRE A/cs.) - For Interest Rates

Click NRE A/c

b. Non-resident (Ordinary) Rupee Accounts (NRO A/cs.)

c. Foreign Currency Non-resident Accounts (FCNR(B) A/cs) -- For Interest

Rates Click FCNR (B)

d. Resident Foreign Currency Account (RFC A/cs.) -- For Interest Rates Click

RFC (SB)

e. Non Resident (External) Rupee Accounts (NRE A/Cs)

f. Accounts can be opened by submitting duly filled in account opening form,

(which is available on our website) 2 photographs and a copy of passport

along with the foreign remittance.

 18

g. Credits can be only out of foreign remittances/Travellers Cheques/Foreign

currencies or proceeds of NRE Term Deposits, FCNR(B) Deposits or

proceeds of certain other investments made out of NRE remittances.

h. Withdrawals are permitted for local payments, transfer to NRE/FCNR(B)

accounts and certain other investments permitted by RBI.

i. Joint Accounts are permitted provided all account holders are NRIs.

j. Power of Attorney holders can operate the accounts for local payments and

approved investments.

k. Bank issues special series of cheques to NRI Account holders for easy

identification.

l. Term Deposits can be made in the normal course for a minimum period of 1

year and a maximum of 5 years in line with FCNR(B) Deposits.

m. Loans against term deposits can be availed for personal/business purposes.

However, loan against term deposits cannot be availed for the purposes of

relending, agriculture/plantation or for investments in real estate business.

The interest on such loans shall be as per Bank's guidelines stipulated from

time to time.

n. Premature closure of NRE Deposits for investment in Resident Foreign

Currency (RFC) does not attract penal provisions relating to premature

withdrawal.
 19

ORGANIZATION CHART

Senior Manager

Deputy Branch Manager

Assistant Manager Assistant Manager Assistant Manager

(Handling, (Deposits, draft & remittance) (MIS, reconciliation,
clearing pension, data base administration)
disbursal & collection)

Clerk Clerk Clerk Clerk Clerk

(Front line (Front line (Clearing & (Advance (Opening of
tailor) tailor) Collection) documentation) SB A/C, printing
pass book)
 20

CHAPTER –V

THEORETICAL FRAMEWORK: VARIOUS ASSETS

Assets:

Anything on a company's books considered as having a positive monetary

value. Assets include holdings of obvious market value (cash, real estate), harder-to-

measure value (inventory, aging equipment), and other quantities (pre-paid expenses,

goodwill) considered an asset by accounting conventions but possibly having no

market value at all.

Panton said, “An asset is an economic quantum. It may be attached to or

represented by some physical object; 0r it may not. One of the common mistakes we

all tend to make is that of attributing too much significance to molecular concept of

property”. In true sense, assets underlie economic benefits, they are not inherently

tangible or physical. A tangible assets like a plant is not much different from an

intangible assets like patent rights so long as they are capable of rendering economic

benefits to the

Characteristics of assets

Assets have three essential characteristics:

i) They embody a future benefit that involves a capacity, singly or in combination with

other assets, in the case of profit oriented enterprises, to contribute directly or

indirectly to future net cash flows, and, in the case of not-profit organizations, to

provide services;

ii) The entity can control access to the benefit and

 21

iii) The transaction or event giving rise to the entity's right to, or control of, the benefit

has already occurred.

Classification of assets:

Assets may be classified in many ways. They are as fallows:

Current Assets, Liquid Assets,Investments, Fixed Assets, Wasting Assets, Intangible

Assets, Fictious Asssets, Advances and Other assets

i) Current assets:

Current assets are cash and other assets expected to be converted to cash, sold,

or consumed either in a year or in the operating cycle. These assets are continually

turned over in the course of a business during normal business activity. There are 5

major items included into current assets:

a)
Cash - is the most liquid asset, which includes currency, deposit accounts, and

negotiable instruments (e.g., money orders, checks, bank drafts).

b)
Short-term investments include securities bought and held for sale in the near

future to generate income on short-term price differences (trading securities).

c)
Receivables are usually reported as net of allowance for uncollectible

accounts.
d)
Inventory The inventory value reported on the balance sheet is usually the

historical cost or fair market value, whichever is lower. This is known as the

"lower of cost or market" rule.

e)
Prepaid expenses These are expenses paid in cash and recorded as assets

before they are used or consumed (a common example is insurance).

 22

ii) Liquid assets:

Liquid assets are those current assets which are either in the form of cash or

which can be converted into cash quickly without much loss. Examples of liquid

assets are cash in hand, cash at bank, bills receivables, sundry debtors, temporary

investments, etc.

iii) Investments:

Investments refer to amount invested by a concern in government bonds,

debentures and shares of companies for the purpose of earning interest dividends.

Investments may be short-term investments or long-term investments. Short-term

investments are grouped with current assets. Long-term investments are shown as a

separate item.

Generally, a bank invests the money on securities when the demand for

advances falls, and realizes the securities when the demand for advances rises. For this

reason, investments are considered as shock absorbers and buffer assets.

iv) Fixed assets:

Also referred to as PPE (property, plant, and equipment), or tangible assets,

these are purchased for continued and long-term use in earning profit in a business.

This group includes land, buildings, machinery, furniture, tools, and certain wasting

resources e.g., timberland and minerals. They are written off against profits over their

anticipated life by charging depreciation expenses (with exception of land).

Accumulated depreciation is shown in the face of the balance sheet or in the notes.
 23

v) Wasting assets:

Wasting assets are those fixed assets which are exhausted or lost through use.

Examples of wasting assets are mines and quarries. Mines become useless when they

are fully exploited (i.e. when the minerals they contain are fully taken out). Similarly,

quarries become valueless, when they are fully exploited.

vi) Intangible assets:

Intangible assets lack physical existance and usually are very hard to evaluate.

They include patents, copyrights, franchises, goodwill, trademarks, trade names, etc.

These assets are amortized to expense over 5 to 40 years with the exception of

goodwill.Some assets such as websites are treated differently in different countries

and may fall under either tangible or intangible assets.

vii) Fictitious assets:

Fictitious assets are mere debit balances, i.e., expenses and losses, carried

forward from one accounting year to another. These assets are fictitious or unreal, as

they are not represented by any tangible or concrete property. Examples are

advertising (i.e. heavy advertising expenses not written off, but carried forward to the

subsequent period), preliminary expenses (i.e., expenses to establish a joint stock

company), etc.

Viii) Advances:

An advance represents the amount lent by a bank to its customers. They

constitute the most important item on the assets side of the balance sheet of a bank.

According to Dr. Walter Leaf, “In the item of advances to customers, we have reached

the central portion of the activity of the bank”.

 24

viii) Other assets:

This section includes a high variety of assets, most commonly:

long-term prepaid expenses, long-term receivables, intangible assets (if they represent

just a very small fraction of total assets) and property held for sale.
25
 26

CHAPTER-VI

ANALYSIS AND INTERPRETATION OF DATA

This chapter analyses the different assets covered under study. The trends are

calculated and they are compared to on year-to-year basis. (i.e.2002-03 to 2006-07).

The individual assets are dealt with and year wise analyses of these schemes are also

made in this section.

The following category of assets are analyzed and interpreted

1. Cash and balances with RBI.

2. Balance with banks and money at call and short notice.

3. Investments.

4. Advances.

5. Fixed assets and

6. Other assets.
 27

1) The information relating to various assets held by the bank during the year 2002-03

is presented in table-1.

Table-1
Various assets during 2002-03

(Rs in 000’s)
S No Particulars Amount Percentage
1 Cash and balances with RBI 16,499,798 4.79
Balance with bank and money at call
2 and short notice 8,690,293 2.52
3 Investment 138,232,454 40.14
5 Advances 163,053,489 47.35
6 Fixed asset 3,431,814 1.00
7 Other assets 14,446,501 4.20
Total 344,354,349 100

Graph-1
Various assets during 2002-03

Cash and balances with

4% RBI
5% 3%
1%
It may be inferred from Table-1 that the advances arebank
Balance with theandhighest (47.35%).
money at call and short
notice
This is followed by investment (40.14%), cash and balances with RBI (4.79 %), other
Investment

assets (4.20%), balance with bank and money at call and short notice (2.52%) and
40% Advances
47%
fixed assets were the least (1.00%). Fixed asset

Other assets

2) The information relating to various assets held by the bank during the year 2003-04

is presented in table-2.

Table-2
Various assets during 2003-04
(Rs in 000’s)
 28

S No Particulars Amount Percentage

1 Cash and balances with RBI 45,071,947 9.54
Balance with bank and money at call
2 and short notice 20,703,083 4.38
3 Investment 179,165,973 37.94 Graph-
5 Advances 206,469,187 43.72 2
6 Fixed asset 3,636,874 0.77 Various
assets
7 Other assets 17,184,763 3.64
during
Total 472,231,827 100
2003-04

Table-2 reveals that the advances are the highest (43.72%), followed by

investment (37.94%), cash and balances with RBI (9.54%), balance with bank and

money at call and short notice (4.38%), other assets (3.64%) and fixed assets were the

least (0.77%).
 29

3) The information relating to various assets held by the bank during the year 2004-05

is presented in table-3.

Table-3
Various assets during 2004-05
(Rs in 000’s)
S No Particulars Amount Percentage
1 Cash and balances with RBI 26,900,035 5.16
Balance with bank and money at call
2 and short notice 3,795,731 0.73
3 Investment 203,707,352 39.09
5 Advances 267,292,028 51.29
6 Fixed asset 3,812,700 0.73
7 Other assets 15,586,420 2.99
Total 521,094,266 100

Graph-3
Various assets during 2004-05

It may be found from Table-3 advances are the highest (51.29%). This is

followed by investment (39.09%), cash and balances with RBI (9.54%), balance with

bank and money at call and short notice (4.38%), other assets (3.64%) and fixed asset

were the least (0.77%).

 30

4) The information relating to various assets held by the bank during the year 2005-06

is presented in table-4.

Table-4
Various assets during 2005-06
(Rs in 000’s)
S No Particulars Amount Percentage
1 Cash and balances with RBI 31,451,351 6.91
Balance with bank and money at call
2 and short notice 20,683,768 4.54
3 Investment 17,269,104 3.79
5 Advances 364,662,331 80.08
6 Fixed asset 4,192,852 0.92
7 Other assets 17,086,166 3.75
Total 455,345,572 100

Graph-4
Various assets during 2005-06

It may be found from Table-4 various assets advances are the highest (80.08%),

followed by cash and balances with RBI (6.91%), balance with bank and money at

call and short notice (4.54%), investment (3.79%), other assets (3.75%) and fixed

asset were the least (0.92%).

 31

5) The information relating to various assets held by the bank during the year 2006-07

is presented in table-5.

Table-5
Various assets during 2006-07
(Rs in 000’s)
S No Particulars Amount Percentage
1 Cash and balances with RBI 65,742,316 7.36
Balance with bank and money at
2 call and short notice 29,246,846 3.28
3 Investment 252,340,114 28.26
5 Advances 516,704,380 57.88
6 Fixed asset 7,715,489 0.86
7 Other assets 21,024,459 2.35
Total 892,773,604 100

Graph-5
Various assets during 2006-07

It may be inferred from Table-5, that the advances are the highest (57.88%) .

This is followed by investment (28.26%), cash and balances with RBI (7.36%),

balance with bank and money at call and short notice (3.28%), other assets (2.35%),

and fixed asset were the least (0.86%).

 32

6) Cash and balances with RBI: Any amount deposited by a bank with Reserve

Bank of India is termed as cash and balances with RBI. The information relating to

cash and balances with RBI is presented in Table 6.

Table-6
Cash and balances with RBI from 2002-03 to 2006-07
(Rs in 000’s)

Year Amount Change % Change

2002-03 16,499,798 Nil Nil
2003-04 45071947 28,572,149 173
2004-05 26,900,035 -18,171,912 -40
2005-06 31,451,351 4,551,316 17
2006-07 65,742,316 34,290,965 109

Graph-6
Cash and balances with RBI from 2002-03 to 2006-07

Table-6 reveals that the cash and balance with RBI was inclined to 173%

(2003-04) over the figures of 2002-03, but it dipped to -40% (2004-05) when

compared it with 2003-04, It was increased to 17% (2005-06) if compared with 2004-

05 and again increased to 109% (2006-07) when it was matched with the cash and

balance with RBI of 2005-06. The overall increase in cash and balance with RBI was

298%.
 33

6A. Cash in hand (Including foreign currency notes): Cash is the most

liquid asset, which includes currency, deposit accounts, and negotiable instruments

(e.g., money orders, checks, bank drafts). The information relating to cash in hand is

presented in Table 6A.

Table-6A
Cash in hand from 2002-03 to 2006-07
(Rs. in 000’s)
Year Amount Change % Change
2002-03 1,475,906 Nil Nil
2003-04 1,529,224 53,318 4
2004-05 1,721,855 192,631 13
2005-06 2,105,808 383,953 22
2006-07 3,415,670 1,309,862 62
Graph-6A
Cash in hand from 2002-03 to 2006-07

From Table-6A, it is clear that the cash in hand (Including foreign currency

notes) was inclined to 4% (2003-04) over the figures of 2002-03, again it was

increased to 13% (2004-05) when compared it with 2003-04. Similarly, it was

increased to 22% (2005-06) if matched it with 2004-05 and again increased to 62%

(2006-07) when it was compared it with the cash in hand (Including foreign currency

notes) of 2005-06. The overall increase in cash in hand (Including foreign currency

notes) was 131.43%

 34

6B. Balance with RBI: Any amount due by a bank with Reserve Bank of India is

termed as balance with RBI. The information relating to balance with RBI is presented

in Table 6B.

Table-6B
Balance with RBI from 2002-03 to 2006-07

(Rs in 000’s)
Year Amount Change % Change
2002-03 15,023,892 Nil Nil
2003-04 43,542,723 28,518,831 190
2004-05 25,178,180 -18,364,543 -42
2005-06 29,345,543 4,167,363 17
2006-07 6,232,646 -23,112,897 -79
Graph-6B
Balance with RBI from 2002-03 to 2006-07

It may be inferred from Table-6B, that the balance with RBI was inclined to

190% (2003-04) over the figures of 2002-03, but it dipped to -42% (2004-05) when

compared it with 2003-04. It was increased to 17% (2005-06) if compared it with

2004-05 and again it was declined to -79% (2006-07) when it was matched with the

balance with RBI of 2005-06. The overall increase in the balance with RBI was

141.05%
 35

7) Balance with bank and money at call and short notice: It represents very short

term loans given for periods ranging from one day to fourteen days. The information

relating to balance with bank and money at call and short notice is presented in Table7

Table-7
Balance with bank and money at call and short notice from 2002-03 to 2006-07

(Rs in 000’s)
Year Amount Change % Change
2002-03 8,690,293 Nil Nil
2003-04 20,703,083 12,012,790 138
2004-05 3,795,731 -16,907,352 -82
2005-06 20,683,768 16,888,037 445
2006-07 29,246,846 8,563,078 41

Graph-7
Balance with bank and money at call and short notice from 2002-03 to 2006-07

It may be inferred from Table-7, that the balances with bank and money at call

and short notice was inclined to 138% (2003-04) over the figures of 2002-03 but it

dipped to -82% (2004-05) when compared it with 2003-04. It was increased to 445 %

(2005-06) if compared with 2004-05. Similarly, it was increased to 41% (2006-07)

when it was matched with the balances with bank and money at call and short notice

of 2005-06. The overall balances with bank and money at call and short notice was

increase the 236.55%

 36

7A. Balance with bank and money at call and short notice in India: It represents

very short-term loans given for periods ranging from one day to fourteen days. This is

the balance in India. The information relating to balance with bank and money at call

and short notice in India from 2002-03 to 2006-07 is presented in Table 7A

Table-7A
Balance with bank and money at call and short notice in India
(Rs in 000’s)
`
Year Amount Change % Change
2002-03 8,423,668 Nil Nil
2003-04 9,265,115 841,447 10
2004-05 3,056,106 -6,209,009 -67
2005-06 9,760,309 6,704,203 219
2006-07 9,935,559 175,250 2

Graph-7A
Balance with bank and money at call and short notice in India

Table-7A reveals that the balance with bank and money at call and short notice

in India was inclined to 10% (2003-04) over the figures of 2002-03 but it dipped to

-67% (2004-05) when compared it with 2003-04. It was increased to 219 % (2005-06)

if compared with 2004-05. Similarly, it was increased to 2% (2006-07) when it was

matched with 2005-06. The overall increase in the balances with bank and money at

call and short notice in India was 236.55%.

 37

7B. Balance with bank and money at call and short notice outside India: It

represents very short-term loans given for periods ranging from one day to fourteen

days. This is the balance outside India. The information relating to balance with bank

and money at call and short notice outside India is presented in Table 7B.

Table-7B
Balance with bank and money at call and short notice outside India
(Rs in 000’s)
Year Amount Change % Change
2002-03 266,625 Nil Nil
2003-04 11,437,968 11,171,343 4,190
2004-05 739,625 -10,698,343 -94
2005-06 10,923,459 10,183,834 1,377
2006-07 19,311,287 8,387,828 77

Graph-7B
Balance with bank and money at call and short notice outside India

It may be found from Table-7B, that the balance with bank and money at call

and short notice outside India are 4190% (2003-04) over the figures of 2002-03 but it

dipped to -94% (2004-05) when compared it with 2003-04. It was increased to 1377%

(2005-06) if compared with 2004-05 and again increased to 77% (2006-07) when it

was matched with 2005-06. The overall increase in the balances with bank and money

at call and short notice outside India was 7142.86%.

 38

8) Investments: Investments refer to amount invested by a concern in government

bonds, debentures and shares of companies for the purpose of earning interest

dividends. The information relating to investments is presented in Table 8.

Table-8
Investments from 2002-03 to 2006-07
(Rs in 000’s)

Year Amount Change % Change

2002-03 138,232,454 Nil Nil
2003-04 179,165,973 40,933,519 30
2004-05 203,707,352 24,541,379 14
2005-06 172,691,084 -31,016,268 -15
2006-07 252,340,114 79,649,030 46

Graph-8
Investments from 2002-03 to 2006-07

From Table-8, it is clear that investments was inclined to 30% (2003-04) over

the figures of 2002-03 again it was increased to 14% (2004-05) when compared to

2003-04 but it was dipped to -15% (2005-06) if compared with 2004-05 and

increased to 46% (2006-07) when it was matched with the investments of 2005-06.

The overall increase in the investments was 82.55%.

 39

8A. Investments in India: Investments refer to amount invested by a concern in

government bonds, debentures and shares of companies for the purpose of earning

interest dividends, which is made in India. The information relating to investments in

India is presented in Table 8A.

Table-8A
Investments in India from 2002-03 to 2006-07
(Rs in 000’s)

Year Amount Change % Change

2002-03 136,521,831 Nil Nil
2003-04 177,162,814 40,640,983 30
2004-05 202,482,273 25,319,459 14
2005-06 170,639,184 -31,843,089 -16
2006-07 249,262,594 78,623,410 46

Graph-8A
Investments in India from 2002-03 to 2006-07

It is clear from Table-8A, that investments in India are 30% (2003-04) over

the figures of 2002-03 again it was increased to 14% (2004-05) when compared it

with 2003-04 but it was dipped to -16% (2005-06) if compared with 2004-05 and

increased to 46% (2006-07) when it was matched with the investments in India of

2005-06. The overall increase in the investments in India was 82.58%.

 40

8B. Investments outside India: Investments refer to amount invested by a concern in

government bonds, debentures and shares of companies for the purpose of earning

interest dividends, which is made outside India. The information relating to

investments outside India is presented in Table 8B.

Table-8B
Investments outside India from 2002-03 to 2006-07
(Rs in 000’s)

Year Amount Change % Change

2002-03 1,710,623 Nil Nil
2003-04 2,003,159 292,536 17
2004-05 1,225,059 -778,100 -39
2005-06 2,051,900 826,841 67
2006-07 3,077,520 1,025,620 50

Graph-8B
Investments outside India from 2002-03 to 2006-07

It may be inferred from Table-8B, that investments outside India was inclined

to 17% (2003-04) over the figures of 2002-03 but it dipped to -39% (2004-05) when

compared it with 2003-04. It was increased to 67% (2005-06) if compared with 2004-

05. Similarly, it was increased to 50% (2006-07) when it was matched with the

balances with the investments outside India of 2005-06. The overall increase in the

investments outside India was 79.91%.

 41

9) Advances: Advances represents the amount lent by a bank to its customers.

Advances take the form of loans, advances and cash credit. The information relating to

advances is presented in Table 9.

Table-9
Advances from 2002-03 to 2006-07
(Rs in 000’s)

Year Amount Change % Change

2002-03 163,053,489 Nil Nil
2003-04 206,469,187 43,415,698 27
2004-05 267,292,028 60,822,841 29
2005-06 364,662,331 97,370,303 36
2006-07 516,704,380 152,042,049 42

Graph-9
Advances from 2002-03 to 2006-07

Table-9 depicts that advances was inclined to 27% (2003-04) over the figures of 2002-

03 again it was increased to 29% (2004-05) when compared it with 2003-04.Similerly,

it was increased to 36% (2005-06) if compared with 2004-05 and again it increased to

42% (2006-07) when it was matched with the advances of 2005-06. The overall

increase in the advances was 216.89%.

 42

9A. Advances in India: Advances represents the amount lent by a bank to its

customers, which is made within India. The information relating to advances in India

is presented in Table 9A.

Table-9A
Advances in India from 2002-03 to 2006-07
(Rs in 000’s)
Year Amount Change % Change
2002-03 139,129,662 Nil Nil
2003-04 173,474,798 34,345,136 25
2004-05 233,734,506 60,259,708 35
2005-06 320,593,187 86,858,681 37
2006-07 460,711,253 140,118,066 44

Graph-9A
Advances in India from 2002-03 to 2006-07

Table-9A depicts that advances in India are 25% (2003-04) over the figures of

2002-03 again it was increased to 35% (2004-05) when compared it with 2003-

04.Similerly, it was increased to 37% (2005-06) if compared with 2004-05 and again

it increased to 44% (2006-07) when it was matched with the advances in India of

2005-06. The overall increase in the advances in India was 231.14%.

 43

9B. Advances outside India: Advances represents the amount lent by a bank to its

customers, which is made outside India. The information relating to advances in India

is presented in Table 9B.

Table-9B
Advances outside India from 2002-03 to 2006-07
(Rs in 000’s)

Year Amount Change % Change

2002-03 23,923,827 Nil Nil
2003-04 32,994,389 9,070,562 38
2004-05 33,557,522 563,133 2
2005-06 44,069,144 10,511,622 31
2006-07 55,993,127 11,923,983 27

Graph-9B
Advances outside India from 2002-03 to 2006-07

From Table-9B, it may be found that advance outside India are 38% (2003-04)

over the figures of 2002-03 again it was increased to 2% (2004-05) when compared it

with 2003-04.Similerly, it was increased to 31% (2005-06) if compared with 2004-05

and again it increased to 27% (2006-07) when it was matched with the advances

outside India of 2005-06. The overall increase in the advances outside India was

134.05%.
 44

10) Fixed Assets: Tangible assets, these are purchased for continued and long-term

use in earning profit in a business. The information relating to fixed assets is presented

in Table 10.

Table-10
Fixed Assets from 2002-03 to 2006-07
(Rs in 000’s)
Year Amount Change % Change
2002-03 3,431,814 Nil Nil
2003-04 3,636,874 205,060 6
2004-05 3,812,700 175,826 5
2005-06 4,192,852 380,152 10
2006-07 7,715,489 3,522,637 84

Graph-10
Fixed Assets from 2002-03 to 2006-07

It may be seen from Table-10 that fixed assets are 6% (2003-04) over the

figures of 2002-03 again it was increased to 5% (2004-05) when compared it with

2003-04.Similerly, it was increased to 10% (2005-06) if compared with 2004-05 and

again it increased to 84% (2006-07) when it was matched with the fixed asset of

2005-06. The overall increase in the fixed assets was 124.82%.

 45

10A. Premises: Premises are the properties like buildings, open dams, etc. The

information relating to premises is presented in Table 10A.

Table-10A
Premises from 2002-03 to 2006-07
(Rs in 000’s)

Year Amount Change % Change

2002-03 2,618,111 Nil Nil
2003-04 2,646,158 28,047 1
2004-05 2,625,346 -20,812 -1
2005-06 2,620,298 -5,048 0
2006-07 5,046,052 2,425,754 93

Graph-10A
Premises from 2002-03 to 2006-07

It may be inferred from Table-10A, shows that premises are 1% (2003-04) over

the figures of 2002-03 but it dipped to -1% (2004-05) when compared it with 2003-

04. It was unchanged in the year 2005-06 if compared with 2004-05 but it was

increased to -93% (2006-07) when it was matched with the premises of 2005-06. The

overall increase in the premises was 92.74%.

 46

10B. Capital work in progress: It is a construction work under progress

(Buildings construction started yet to be competed as on date of reporting). The

information relating to fixed assets is presented in Table 10B.

Table-10B
Capital work in progress from 2002-03 to 2006-07
(Rs in 000’s)

Year Amount Change % Change

2002-03 0 Nil Nil
2003-04 47,950 47,950 0
2004-05 62,970 15,020 31
2005-06 101,227 38,257 61
2006-07 262,517 161,290 159

Graph-10B
Capital work in progress from 2002-03 to 2006-07

It may be inferred from Table-10B, reveals that the capital work in progress are

nil in the year 2003-04 over the figures of 2002-03 but it was increased to 31% (2004-

05) when compared it with 2003-04.similerly, it was increased to 61% (2005-06) if

compared with 2004-05 and again increased to 159% (2006-07) when it was matched

with of 2005-06. The overall increase in the capital work in progress was 262,517%.
 47

10C. Other fixed assets: It includes furniture, fixtures, fittings, installations, etc. The

information relating to other fixed assets is presented in Table 10c.

Table-10C
Other fixed assets from 2002-03 to 2006-07
(Rs in 000’s)

Year Amount Change % Change

2002-03 813,703 Nil Nil
2003-04 942,766 129,063 16
2004-05 1,124,384 181,618 19
2005-06 1,471,327 346,943 31
2006-07 2,406,920 935,593 64

Graph-10C
Other fixed assets from 2002-03 to 2006-07

It may be revealed from Table-10C, that the other fixed assets inclined to

16% (2003-04) over the figures of 2002-03 again it was increased to 19% (2004-05)

when compared it with 2003-04.similerly, it was increased to 31% (2005-06) if

compared with 2004-05 and again it increased to 64% (2006-07) when it was matched

with the other fixed assets of 2005-06. The overall increase in the other fixed assets

was 195.80%.
 48

11) Other Assets: These include a high variety of assets, most commonly: long-term

prepaid expenses, long-term receivables, intangible assets (if they represent just a very

small fraction of total assets) and property held for sale. The information relating to

other assets is presented in Table 11.

Table-11
Other Assets from 2002-03 to 2006-07
(Rs in 000’s)
Year Amount Change % Change
2002-03 14,446,501 Nil Nil
2003-04 17,184,763 2,738,262 19
2004-05 15,586,420 -1,598,343 -9
2005-06 17,086,166 1,499,746 10
2006-07 21,024,459 3,938,293 23

Graph-11
Other Assets from 2002-03 to 2006-07

From Table-11 it may be inferred that other assets was inclined to 19%

(2003-04) over the figures of 2002-03 but it dipped to -9% (2004-05) when compared

it with 2003-04. It was increased to 10% (2005-06) if compared with 2004-05.

Similarly, it was increased to 23% (2006-07) when it was matched with the other

assets of 2005-06. The overall increase in the other assets was 45.53%.
 49

11A. Inter-office adjustments (net): It is money owed by bank branch to other

branches and the money to be received by the branch from other branches where the

net difference could be received or payable. The information relating to Inter-office

adjustment (net) is presented in Table 11A

Table- 6A
Inter-office adjustment (net) from 2002-03 to 2006-07
(Rs in 000’s)

Year Amount Change % Change

2002-03 0 Nil Nil
2003-04 2,673,490 2,673,490 0
2004-05 2,207,697 -465,793 -17
2005-06 1,005,010 -1,202,687 -54
2006-07 0 -1,005,010 -100

Graph- 11A
Inter-office adjustment (net) from 2002-03 to 2006-07

Table-11A reveals that the inter-office adjustments are unchanged (2003-04)

over the figures of 2002-03. It was -17% (2004-05) over the inter-office adjustment of

2003-04. Similarly, the inter-office adjustment was -54. % (2005-06) when matched

with the inter-office adjustment of 2004-05 and -100% (2006-07) when compared

with the figure of 2005-06.There is unchanged over the years.

 50

11B. Interest accrued: It is the interest accumulated on the loans or assets over a

period of time of the currency of loan. The information relating to interest accrued is

presented in Table 11B

Table-11B
Interest accrued from 2002-03 to 2006-07
(Rs in 000’s)

Year Amount Change % Change

2002-03 4,240,124 Nil Nil
2003-04 4,270,956 30,832 1
2004-05 4,318,910 47,954 1
2005-06 3,506,072 -812,838 -19
2006-07 6,582,237 3,076,165 88

Graph-11B
Interest accrued from 2002-03 to 2006-07

From Table-11B, it is clear that the interest accrued are 1% each in the year

2003-04 and 2004-05 but the interest accrued dipped to -19% (2005-06) when

compared it with 2004-05. And it was increased to 88% (2006-07) when matched with

the interest accrued of 2005-06. The overall increase in the interest accrued was

55.24%.
 51

11C. Tax paid in advance/ Tax deducted at source net of provisions: Advance tax

paid as per income tax rules and were applicable, the tax deducted to be remitted to

income tax department. The information relating to tax paid in advance/ tax deducted

at source net of provisions is presented in Table 11C

Table-11CTax paid in advance/ Tax deducted at source net of provisions from

2002-03 to 2006-07
(Rs in 000’s)

Year Amount Change % Change

2002-03 255,335 Nil Nil
2003-04 106,812 -148,523 -58
2004-05 1,836,362 1,729,550 1,619
2005-06 3,978,931 2,142,569 117
2006-07 6,079,133 2,100,202 53

Graph-11C
Tax paid in advance/ Tax deducted at source net of provisions

Table-11C reveals that the tax paid in advance are -58% (2003-04) over the

figures of 2002-03 but it was increased to 1619% (2004-05) when compared it with

2003-04.similerly, it was increased to 117% (2005-06) if compared with 2004-05 and

again it increased to 53% (2006-07) when it was matched with the tax paid in advance

of 2005-06. The overall increase in the tax paid in advance was 2280.85%.
 52

11D. Stationery and Stamps: These are the materials used by the bank for

documentation purpose to maintain the accounts and for postage purposes stamps are

maintained. The information relating to stationery and stamps is presented in Table

11D.

Table-11D
Stationery and Stamps from 2002-03 to 2006-07
(Rs in 000’s)

Year Amount Change % Change

2002-03 72,711 Nil Nil
2003-04 72,705 -6 0
2004-05 78,547 5,842 8
2005-06 77,581 -966 -1
2006-07 98,609 21,028 27
Graph-11D
Stationery and Stamps from 2002-03 to 2006-07

It may be found from Table -11D, that the stationery and stamps are nil

(2003-04) over the figures of 2002-03 but it was increased to 8% (2004-05) when

compared it with 2003-04. It was dipped to -1% (2005-06) if compared with 2004-05

and increased to 46% (2006-07) when it was matched with the stationery and stamps

of 2005-06. The overall increase in the stationery and stamps was 35.62%.
 53

11E. Non-Banking Assets acquired In Satisfaction of Claims: These are the

collateral securities recovered for non-payments of loans. The information relating to

non-banking assets acquired in satisfaction of claims is presented in Table 11E.

Table-11E
Non-Banking Assets acquired In Satisfaction of Claims from 2002-03 to 2006-07
(Rs in 000’s)

Year Amount Change % Change

2002-03 3,486 Nil Nil
2003-04 4,499 1,013 29
2004-05 4,507 8 0
2005-06 4,116 -391 -9
2006-07 1,385 -2,731 -66

Graph-11E
Non-Banking Assets acquired in Satisfaction of Claims from 2002-03 to 2006-07

It may be found from Table-11E, that the non-banking assets are 29% (2003-

04) over the figures of 2002-03. It was unchanged in the year 2004-05 when matched

with the non-banking assets of 2003-04. It had been -9% (2005-06) if compared with

non-banking assets of 2004-05. Similarly, the non-banking assets were -66% (2006-

07) when matched with the non-banking assets of 2005-06. The overall decreased in

the non-banking assets was -60.275%.

 54

11F. Deferred Assets: The assets, which are deferred (postponed) to be recognized as

assets in future. The information relating to deferred assets is presented in Table 11F.

Table-11F
Deferred Assets from 2002-03 to 2006-07
(Rs in 000’s)

Year Amount Change % Change

2002-03 0 Nil Nil
2003-04 0 0 0
2004-05 218,300 218,300 0
2005-06 267,100 48,800 22
2006-07 0 -267,100 -100

Graph-11F
Deferred Assets from 2002-03 to 2006-07

It may be found from Table-11F, that the deferred assets are nil in the year

2003-04 and 2004-05.But it was increased to 22% (2005-06) over the figures of 2004-

05. And again it dipped to -100% (2006-07) when matched with the deferred assets of

2005-06.
 55

11G. Other assets: These include a high variety of assets, most commonly: long-term

prepaid expenses, long-term receivables, intangible assets (if they represent just a very

small fraction of total assets) and property held for sale. The information relating to

other assets presented in Table 11G.

Table-11G
Other assets from 2002-03 to 2006-07
(Rs in 000’s)

Year Amount Change % Change

2002-03 9,874,845 Nil Nil
2003-04 10,056,301 181,456 2
2004-05 6,922,097 -3,134,204 -31
2005-06 8,247,355 1,325,258 19
2006-07 8,263,095 15,740 0

Graph-11G
Other assets from 2002-03 to 2006-07

It may be revealed from Table -6G, that the other assets are inclined to 2% (2003-04)

over the figures of 2002-03 but it dipped to -31% (2004-05) when compared it with

2003-04. It was increased to 19% (2005-06) if compared with 2004-05. But it was

unchanged in the year 2006-07. The overall decreased in the other assets was

-16.32%.
 56

CHAPTER -VI

FINDINGS, SUGGESTION AND CONCLUSION

Findings:

The major findings of the present study are:

1) The advances are the highest in the total assets of the bank from the 2002-03 to

2006-07.

2) The investments are followed by the advances from 2002-03 to 2004-05.

3) The overall increase in cash and balance with RBI was 298%.

4) The overall increase in cash in hand (Including foreign currency notes) was

131.43%

5) The overall increase in the balance with RBI was 141.05%

6) The overall balances with bank and money at call and short notice was increase

the 236.55%

7) The overall increase in the balances with bank and money at call and short

notice in India was 236.55%.

8) The overall increase in the balances with bank and money at call and short

notice outside India was 7142.86%.

9) The overall increase in the investments was 82.55%.

10) The overall increase in the investments outside India was 79.91%.

11) The overall increase in the advances was 216.89%.

12) The overall increase in the advances outside India was 134.05%.

13) The overall increase in the fixed assets was 124.82%.

14) The overall increase in the premises was 92.74%.

 57

15) The overall increase in the capital work in progress was 262,517%.

16) The overall increase in the interest accrued was 55.24%.

17) The overall increase in the tax paid in advance was 2280.85%.

18) The overall decreased in the non-banking assets was -60.275%.

 58

Suggestion:

The following suggestions are offered.

1. As far cash in hand concern, it is better to invest elsewhere rather maintaining huge

liquidity.

2. It is better to invest in India to maintain profitability.

3. Providing huge advance abroad may be riskier for the bank.

4. There should be revised interest rate policy under the purview of RBI.
 59

Conclusion:

The conclusion so drawn from the study will be useful to the organization to

give better service to the customers. The study had helped me to know about various

assets of the bank.

The bank is performing in a very good manner. The customers are very much

satisfied with the services provided by the bank. As the bank had been already

computerized its operations have become very quick and satisfactory.

The conclusion so drawn from the study will be useful to the organization to

give better service to the customers. The study was helpful to me also to know about

various assets.

Income of the bank over the years has been steadily increasing .It is a healthy

sign of the bank progress.

 60

BIBLIOGRAPHY

1. Annual Reports of the Bank.

2. Bank Journals

3. Financial accounting by Dr. S.N Maheshwari

4. Management accounting by M.Y Khan and Jain

5. websites:

www.syndicatebank.com