A Study on Comparative analysis of financial

performance of
Allahabad Bank with others banks
SUBMITTED BY:
SANA NAAZ
14MB000014
3rd semester
Department of Management Studies

BANKING
The Indian Banking Regulation Act 1949 has defined the term Banking under section 5 (1)

(b) as accepting for the purpose of lending or investment, of deposits of money from public,
repayable on demand or otherwise, and withdrawal by cheque, draft, order or otherwise.
Indian banking is the lifeline of the nation and its people. Banking has
helped in developing the vital sectors of the economy and usher in a new
dawn of progress on the Indian horizon .
A bank is a financial institution that provides banking and other financial
services to their customers.
One of the most important factors that are motivating the growth of the
Indian banking institutions is the liberalization
The banking system of India is featured by a large network of bank
branches, serving many kinds of financial services of the people
Banking is the backbone of a modern economy.
Health of banking industry is one of the most important pre-conditions for
sustained economic progress of any country.

ALLAHABAD BANK
The Oldest Joint Stock Bank of the Country, Allahabad Bank was founded on April 24, 1865

by a group of Europeans at Allahabad.

After 3 years later Allahabad banks Head Office and the registered office was shifted from
Allahabad to Calcutta and on July 19, 1969 the Indian Government nationalized Allahabad
Bank, together with 13 other banks.
Allahabad Bank, today, has surpassed the total business of over Rs.3, 00,000 crores.
The bank has its first foreign branch set up at Hong Kong and a
representative office at Shenzhen, China, in order to tap business
opportunities of South East Asia and the fastest growing China.
The business of the Bank has been classified into three segments: Treasury
Operations, Corporate / Wholesale Banking and Retail Banking.

FINANCIAL PERFORMANCE
Financial performance refers to the act of performing financial activity.
It is the process of measuring the results of a firm's policies and operations in monetary

terms. It is used to measure firm's overall financial health over a given period of time and
can also be used to compare similar firms across the same industry or to compare
industries or sectors in aggregation.
Financial statement analysis enables investors and creditors to evaluate
past performance and financial position and predict future
performance .
Total business of Allahabad Bank reached a level of`346,519 crore as on
31st March 2015 from `331,748 crore as on 31st March 2014; showing
a Y-o-Y growth of 4.45% .
Net profit of the Bank came down to `620.90 crore during FY15 as
against `1172.02 crore last year, showing a negative growth of 47.02%.
Total income of Allahabad Bank Dhanbad branch of year 2015 is
47,785,599.19

ORGANISATIONAL STRUCTURE
The Bank is headed by Chairman & Managing Director, duly supported by two Executive

Directors. The highest authority of the Bank is the Board of Directors, having 10 Directors
(including CMD & EDs).

FUNCTIONING AND PROCESS

BUSINESS ENVIRONMENT
Business environment is broadly classified into Internal environment and External environment.
Vision and Mission of Allahabad bank
Vision :

To put the Bank on a higher growth path by building a Strong Customer-base through Talent Management,
induction of State-of-the-art Technology and through Structural Re-organization.
Mission :

To ensure anywhere and any time banking for the customer with latest state-of-the-art technology and by
developing effective customer centric relationship and to emerge as a world-class service provider through
efficient utilization of Human Resources and product innovation.
Human Resource of the bank
The Bank has continued with its focus on overall development of its human assets through manpower
planning, knowledge enrichment, capacity building, promotion & career progression, staff welfare, etc., to
maintain a high level of Productivity

 There are 4 grades i.e..Junior Management Grade, Middle Management Grade, Senior Management Grade and

Top Executive Grade.

POLITICAL FACTORS : Government and RBI policies affect the banking sectors.
Various policies are framed by the RBI looking at the present situation of the country for better control over the
banks s
Government affects the performance of banking sector most by legislature and framing policy .government
through its budget affects the banking activities securitization act has given more power to banking sector against
defaulting borrowers .
The Indian economy stands mainly relieved of the vulnerabilities associated with an economic slowdown,
persistent inflation, elevated fiscal deficit, slackening domestic demand, external account imbalances and
volatility of the rupee in the last two years. As per the new estimate, though agriculture and allied activities fell
by 0.4% in Q3FY15, for the same quarter, industry sector registered a growth of 3.9% and services sector
witnessed double-digit growth of 13.5%.
SPECIAL CUSTOMERS OF ALLAHABAD BANK:
A. Pensioners and Other senior citizens
B. Customers in rural and semi urban area
C. Self Help Group (SHG)
D. Tribal Areas/ North east
E. Providing banking facilities to visually impaired

BACKGROUND OF THE PROJECT

Objective of the study:

To compare the financial performance of Allahabad bank with its competitors .
To study the financial performance of Allahabad bank at Dhanbad branch.
Genesis of the problem

I have compared the financial performance of Allahabad Bank with its competitors to
know the financial health of the organization and where it lies with respect to other

banks. To know about the strength and weakness and how it performs. The purpose of

this analysis is to know the past and current data so that the companys
performance and financial position can be evaluated .
Methodology and Data source
The study is based on secondary data that has been collected from various
sources.
Ratio Analysis - Allahabad Bank as a whole for 5 years i.e.. 2011-15.
Horizontal Analysis Allahabad bank Dhanbad branch for 2 years.

CASE ANALYSIS
Tools and Techniques

To compare the Financial Performance of Allahabad bank with other

banks various ratios are used:
Profit Margin
Asset turnover
Return on Equity
Return on Assets
Earning Per Share
Current ratio
Quick ratio
Credit deposit ratio
Capital adequacy ratio
Loans turnover

Profit Margin

Assets Turnover

20

0.12

15

0.1

10

0.08
Allahabad bank
Andhra bank

UCO bank
Central bank of
india
IDBI

0
2011

2012

2013

2014

Allahabad bank
Andhra bank

0.06

UCO bank
Central bank of
india

0.04

IDBI

2015
0.02

-5
0
-10

2011

2012

2013

2014

2015

Return on assets

Earning per share

250

50

40
200
30
Allahabad bank

150

Andhra bank

ALLAHABAD BANK
ANDHRA BANK

20

UCO bank
Central bank of
india

100

UCO BANK
CENTRAL BANK OF
INDIA

10

IDBI

IDBI
0

50

2011
-10

0
2011

2012

2013

2014

2015

-20

2012

2013 2014

2015

Current ratio

Quick ratio

0.05

40

0.04

35

0.04

30

0.03
ALLAHABAD BANK

25

ALLAHABAD BANK

ANDHRA BANK

0.03

UCO BANK
0.02

CENTRAL BANK OF
INDIA

0.02

IDBI

ANDHRA BANK
20

UCO BANK

15

CENTRAL BANK OF
INDIA
IDBI

10

0.01

0.01
0

0
2011 2012 2013 2014 2015

2011

2012

2013

2014

2015

Credit deposit ratio

100

Capital adequacy ratio

16

90
80

14

70
60

ALLAHABAD
BANK

50

ANDHRA BANK

12
10

ALLAHABAD BANK
ANDHRA BANK

UCO BANK

40
30
20
10

CENTRAL BANK
OF I

UCO BANK

IDBI

CENTRAL BANK OF
INDIA
IDBI BANK

0
2011 2012 2013 2014 2015

2
0
2011

2012

2013

2014

2015

Loans turnover
0.16

0.15

0.15

ALLAHABAD BANK

0.14

ANDHRA BANK
UCO BANK
0.14

CENTRAL BANK OF INDIA

IDBI BANK

0.13

0.13

0.12
2011

2012

2013

2014

2015

Profit and loss account

ACCOUNTS

2015

2014

CHANGE
AMOUNT

PERCENT

INCOME
Interest earned
Commission
Exchanges
Other income
Net transfer price
Total income

39916919.43
7196937.88
56027.00
615714.88
146583823.00
194369422.19

36354858.11
7210701.71
55232.00
962853.45
406507671.00
451091316.27

3562061.32
-13763.83
795
-347138.57
-259923848
-256721894.08

9.79
-0.19
1.43
-36.05
-63.9
-56.9

EXPENSES
Interest paid on deposits
Salaries ,allowances etc
Rent taxes and lighting
Printing and stationary
Advertising and publicity
Depreciation on banks property
Law charges
Postage telegram telephone
Repair and maintenance
Other expenditure
Total expenditure
Profit

107,131,844
8050187.66
1,101,092.73
186,349.34
36,999.00
279,255.19
312,654.00
164,413.00
206,955.00
1,603,943.10
119,073,693.33
75,295,728.86

324,231,239.14
-217099395.14
7800214.66
249973
1,113,990.18
-12897.45
123,728.19
62621.15
10,000
26999
235,028.12
44227.07
139,431.00
173223
194,013.00
-29600
141,202.63
65752.4
1,518,927.39
85015.71
335,507,774.31
-216434080.9
115,583,541.96
-40287813.1

66.9
3.20
-1.15
50.6
269.9
18.8
124.2
-15.2
46.5
5.59
-64.5
- 34.8

Balance sheet

ACCOUNTS
2015
2014
CHANGE

AMOUNT
PERCENT

Fixed deposits from others

712,404,579.61
4014014462.95
-3301609883.34
-82.2

Saving bank deposits

242,962,081.59
586,156,574.04
-343194492.45
-58.5
Demand deposit from banks
23,090,206.00
183,524.10
22906681.9
12481.5

Demand deposit from others

280,484,082.31
132,228,107.13
148255975.28
112.1

Bills payable
1074019.38
2171907.38
-1097888
50.5

Other liabilities
6147891.47
5113926.54
1033964.93
20.2

Inter branch account

1369262647.31
1319158233.18
50104414.13
3.79

Total liabilities
2635425507.77
6059026735.32
-3423601227.5
-56.5

Assets
Cash in hand
2334434.00
1014212.00
1320222
130.17

Balance with other Indian banks

384710.86
216025.75
168685.11
78.08

Pro note
177610728.07
164300071.07
13310657
8.1

Demand loan
2476079.79
1122254.79
1353825
120.6

Cash credit and overdraft

237725010.76
200236388.59
37488622.17
18.7

Inter branch account

2212983318.28
5688571979.92
-3475588661.64
61.0

Clearing account
150
40300.00
-40150
99.6

Funds in transit
00
2000000.00
- 2000000.00
100

Furniture and fixtures

1482196.81
1179903.00
302293.81
25.6

Stationary
147465.39
71261.39
76204
106.9

Stamps
2150
800
1350
168.7

Other assets
279263.81
273538.81
5725
2.09

Total assets
2,635,425,507.77
6,059,026,735.32
-3423601227.55
- 56.5

DATA INTERPRETATION OF PROFIT AND LOSS ACCOUNT AND BALANCE

SHEET

From the above horizontal analysis we find that Income of the bank decreases to

-56.9% in 2015 from 2014 and the expenditure decreases to -64.5% and the profit
reduced to -34.8% which shows that Allahabad bank of Dhanbad branch is at loss.
From the above horizontal analysis of Balance sheet we can conclude that fixed

deposits and saving deposits of banks is decreased in 2015 and loans is increased.
This analysis shows that assets and liabilities is decreased by 56.5% in 2015.

Findings of the study

During 8 weeks training in Allahabad Bank under the able guidance of Mr. J. P Sharma (Chief Manager of Allahabad Bank). I

have learned about different types of Banking products, banking services and Banking Need being provided by Allahabad
Bank.
Total business of Allahabad Bank reached a level of`346,519 crore as on 31st March 2015 from `331,748
crore as on 31st March 2014; showing a Y-o-Y growth of 4.45%
.
Total deposits of the Bank went up by 1.35% to `193424 Crore as on 31st March 2015 from `190843 Crore a year ago.
Gross credit of the Bank surged to `153,095 crore from `140,905 crore last year. On a Y-o-Y basis, it increased by 8.65%.
Net profit of the Bank came down to `620.90 crore during FY15 as against `1172.02 crore last year, showing a negative

growth of 47.02%.
Net Interest Margin (NIM) improved to 3.10% during the financial year ended 31st March 2015 as against 2.75% during

FY14.
Capital Adequacy Ratio stood at 10.52% as on31st March 2015 under Basel II norms and at 10.45% under Basel III norms

Profit margin declined

Asset turnover decreases
ROA increases
EPS increases from 2014
Findings of a Allahabad bank dhanbad is
Total income
47,785,599.19
Total expenditure 119,073,693.33
Total deposits
1,258,940,949

Limitations
It is easy to find and collect secondary data., however, you need to be aware of the limitations the data may

have and the problems that could arise if these limitations are ignored.
Secondary data can be general and vague and may not really help companies with decision making.
The information and data may not be accurate. The source of the data must always be checked.
The sample used to generate the secondary data may be small.
The company publishing the data may not be reputable.
Various information in the banks are confidential.