A project is a scientific and systematic study of real issues on a problem with the application of management concept and skills.

The study can deal with small or big issues in any division of an organization. It can be case study where a problem has been dealt with, through the process of management. The essential equipment of a project this that, it should contain scientific collection of data, analysis and interpretation of data leading to valid conclusion. . The topic of my project was STATE BANK OF INDIA. This project report tends to give a sharp picture of the BANK.

CHAPTER1: deals with research design of project containing research value of the project, major objectives for undertaking this study, methodology followed in preparation of the project and limitations while completing of work. CHAPTERS2: consist of introducer part, which has introduction about the profile of the organizations well as introduction to the topic. CHAPTER3: consist of the tabulation, graphical representation and statistical calculation of the data so collected analysis has been performed on them and interpretation has been made. CHAPTER4 .consist of major findings drawn from analysis and interpretation and also suggestions to the company for the areas for improvement. it also contain the conclusion that has been drawn from the study.

I undersigned here by declared that this project work entitled FINANCIAL STATEMENT ANALYSIS worked on STATE BANK OF INDIA is written and

my own work .the partial fulfillment for award BBA in year 2010-2011,this is original report work and report written there is based on the knowledge and material gained from the bank.

AKRATI ACHARYA BBA -6TH SEM

Letter head type this information.

This is to certify that AKRATI ACHARYA persuing BBA 6TH SEM OF SANT HIRDARAM GIRLS COLLEGE HAS worked under my guidance on the project title FINANCIAL STATEMENT ANALYSIS OF STATE BANK OF INDIA . I here by declare that all the information mentioned is this project is authentic and has not been copied from anywhere.

I would like to express my sincere thanks to all those instrumental in thisProject Work. First of all, I would to thank Prof. SHASHI RAI Director of SANT HIRDARAM GIRLS COLLEGE for giving me this opportunity to do this project and learn from it. I am thankful TO STATE BANK OF INDIA for giving me helpful information to complete this project. Finally I would like thank all lecturers, friends and my family for the kind of support and to all who directly or indirectly helped me in preparing this project report

As it is righty said that finance is the life blood of every business so every business need funds for smooth running of its activates and bank is one of the source through which the business get funds, before financing the bank appraisal the projects and if the project large in meet the requirement of the bank rules that only they will finance. Project financing is commonly used financing method in capital intensive industries for projects requires investments of funds ,such as the construction of the power, plants ,pipelines, transportation systems, mining facilities industrial facilities and heavy manufacturing plants. This project has been undertaken at state bank of India which is one of the largest bank in India having vast domestic network of over 9000 branches .State bank of India deals with all financial activities which involve all the type of deposit and advance including project financing mutual funds etc. Financial appraisal which mainly deals to the feasibility study consisting of ratio and capital budgeting calculations.

The research provides an opportunity to a student to demonstrate application of her knowledge, skill and competencies required during the technical session. Research also helps the student to devote her skill to analyze the problem to suggest alternative solutions, to evaluate them and to provide feasible recommendations on the provided data. As the researcher this project help me in understanding the knowledge of FINANCIAL STATEMENT ANALYSIS OF STSTE BANK OF INDIA and schemes, it will also help me in tackling the different problem that will be face during the researcher and at the same time it will face during the researcher and at the same time it will helpful to FINANCIAL STATEMENT ANALYSIS OF STATE BANK OF INDIA employees in knowing the preference of people in different schemes, there investment, their problems and reasons for unsatisfaction ,which will be the guidelines for them. The research is on the topic of FINANCIAL STATEMENT ANALYSIS OF STATE BANK OF INDIA . Although I have tried my level best to prepare this report an error free report every effort has been made to offer the most authenticate position with accuracy.

 2. 3. 4.

To study the Annual report or financial position of th e company. To understand the day-to-day works carry out by the organization. To check the profitability of bank. To analyze how the bank is managing its current assets & current liabilities

Preparing the project report is a research analysis, it involves the process of collecting data, analyzing data & reporting data for absolute results. For the preparation of project report on Financial Statement Analysis of SBI Bank. This project report is based on two types of data i.e. (1) Primary data (2) Secondary data . 1).Primary data:Primary data is the data, which has not been collected & used by somebody else before. In short, Primary data means the data specifically collected for the project. I have collected data from the managers by asking question because it is difficult for me to understand the study. 2) Secondary data:Secondary data is the data, which is collected from published source. I have collected data from various sources such as banks annual report of previous year, different document prepared by the bank and from various reference books. . 1. ANNUAL REPORET 2. BROUCHERS COMPANY 3. NEWSPAPER 4. JOURNALS 5. BOOKS.

y Bar graph y Pie graph. y Column graph. # Bar graph: one bar diagram represents only one figure and, as such, there will be as the number of figures. #Pie graphs: circles occupy a unique place amongst two-dimensional diagrams..The reason for their popularity lies in the facility and ease with which they can be drawn.

There is no activity that can be completed without any limitation. The main limitation faced during the preparation of this project report on Financial Statement Analysis of SBI is as FOLLOW: 1. 2. Time available for the completion of the project is very short, Hence much information could not be undertaken The information collected through secondary data. Some of the Information might not be sufficient.. 3. The report is based on the analysis of the last five years Data, which may not be sufficient in some cases.

1. THE origin of the SBI goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India sponsored by the government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921. Primarily Anglo-Indian creations, the three presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernize Indias economy. Their evolution was, however, shaped by ideas culled from similar developments in Europe and England, and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of the Indian economy to the economy of Europe and the global economic framework.

2.The establishment of the Bank of Bengal marked the advent of limited liability, joint-stock banking in India. So was the associated innovation in banking, viz. the decision to allow the Bank of Bengal to issue notes, which would be accepted for payment of public revenues within a restricted geographical area. This right of note issue was very valuable not only for the Bank of Bengal but also its two siblings, the Banks of Bombay and Madras. It meant an accretion to the capital of the banks, a capital on which the proprietors did not have to pay any interest. The concept of deposit banking was also an innovation because the practice of accepting money for safekeeping (and in some cases, even investment on behalf of the clients) by the indigenous bankers had not spread as a general habit in most parts of India. But, for a long time, and especially unto the time that the three presidency banks had a right of note issue, bank notes and government balances made up the bulk of the investible resources of the banks. The three banks were governed by royal charters, which were revised from time to time. Each charter provided for a share capital, four-fifth of which were privately subscribed and the rest owned by the provincial government. The members of the board of directors, which managed the affairs of each bank, were mostly proprietary directors representing the large European managing agency houses in India. The rest were government nominees, invariably civil servants, one of whom was elected as the president of the board.

3. The business of the banks was initially confined to discounting of bills of exchange or other negotiable private securities, keeping cash accounts and receiving deposits and issuing and circulating cash

notes. Loans were restricted to Rs.one lakh and the period of accommodation confined to three months only. The security for such loans was public securities, commonly called Companys Paper, bullion, treasure, plate, jewels, or goods not of a perishable nature and no interest could be charged beyond a rate of twelve per cent. Loans against goods like opium, indigo, salt woolens, cotton, cotton piece goods, mule twist and silk goods were also granted but such finance by way of cash credits gained momentum only from the third decade of the nineteenth century. All commodities, including tea, sugar and jute, which began to be financed later, were either pledged or hypothecated to the bank. Demand promissory notes were signed by the borrower in favor of the guarantor, which was in turn endorsed to the bank. Lending against shares of the banks or on the mortgage of houses, land or other real property was, however, forbidden. Indians were the principal borrowers against deposit of Companys paper, while the business of discounts on private as well as salary bills was almost the exclusive monopoly of individuals Europeans and their partnership firms. But the main function of the three banks, as far as the government was concerned, was to help the latter raise loans from time to time and also provide a degree of stability to the prices of government securities.

4. The State Bank of India was thus born with a new sense of social purpose aided by the 480 offices comprising branches, sub offices and three Local Head Offices inherited from the Imperial Bank. The concept of banking as mere repositories of the communitys savings and lenders to creditworthy parties was soon to give way to the concept of purposeful banking sub serving the growing and diversified financial needs of planned economic development. The State Bank of India was destined to act as the pacesetter in this respect and lead the Indian banking system into the exciting field of national develop

The State Bank of India, the countrys oldest Bank and a premier in terms of balance sheet size, number of branches, market capitalization and profits is today going through a momentous phase of Change and Transformation the two hundred year old Public sector behemoth is today stirring out of its Public Sector legacy and moving with an ability to give the Private and Foreign Banks a run for their money. The bank is entering into many new businesses with strategic tie ups Pension Funds, General Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale Merchant Acquisition, Advisory Services, structured products etc each one of these initiatives having a huge potential for growth. The Bank is forging ahead with cutting edge technology and innovative new banking models, to expand its Rural Banking base, looking at the vast untapped potential in the hinterland and proposes to cover 100,000 villages in the next two years. It is also focusing at the top end of the market, on whole sale banking capabilities to provide Indias growing mid / large Corporate with a complete array of products and services. It is consolidating its global treasury operations and entering into structured products and derivative instruments. Today, the Bank is the largest provider of infrastructure debt and the largest arranger of external commercial borrowings in the country. It is the only Indian bank to feature in the Fortune 500 list. The Bank is changing outdated front and back end processes to modern customer friendly processes to help improve the total customer experience. With about 8500 of its own 10000 branches and another 5100 branches of its Associate Banks already networked, today it offers the largest banking network to the Indian customer. The Bank is also in the process of providing complete payment solution to its clientele with its over 8500 ATMs, and other electronic channels such as Internet banking, debit cards, mobile banking, etc.

With four national level Apex Training Colleges and 54 learning Centers spread all over the country the Bank is continuously engaged in skill enhancement of its employees. Some of the training programs are attended by bankers from banks in other countries.

Financial Statements: Introduction Whether you watch analysts on CNBC or read articles in The Wall Street Journal, you'll hear experts insisting on the importance of "doing your homework" before investing in a company. In Other words, investors should dig deep into the company's financial statements and analyze everything from the auditor's report to the footnotes. But what does this advice really mean, and how does an investor follow it? A.Financial Statements: Cash Flow

In the previous section of this tutorial, we showed that cash flows through a business in four generic stages. First, cash is raised from investors and/or borrowed from lenders. Second, cash is used to buy assets and build inventory. Third, the assets and inventory enable company operations to generate cash, which pays for expenses and taxes before eventually arriving at the fourth stage. At this final stage, cash is returned to the lenders and investors. Accounting rules require companies to classify their natural cash flows into one of three buckets (as required by SFAS 95); together these buckets constitute the statement of cash flows. The diagram below shows how the natural cash flows fit into the classifications of the statement of cash flows. Inflows are displayed in green and outflows displayed in red:

b.Financial Statements Earnings: In this section, we try to answer the question, "what earnings number should be used to evaluate company performance?" We start by considering the relationship between the cash flow statement and the income statement. In the preceding section, we explained that companies must classify cash flows into one of three categories: operations, investing, or financing. The diagram below traces selected cash flows from operations and investing to their counterparts on the income statement (cash flow from financing (CFF) does not generally map to the income statement)

BALANCE SHEET OVER LAST 5 YEARS AS ON AS ON AS ON

Rs. In Lakhs AS ON AS ON

31.03.10 31.03.09 31.03.08 31.03.07 31.03.06 SOURCE OF FUNDS SHARE HOLDERS FUND: Share Capital Reserves & Surplus 3,404 57,652 61,056 LOAN FUNDS: Secured Loans Unsecured Loans 165,005 18,566 183,571 CURRENT LIABILITIES & PROVISIONS: Current Liabilities Provisions Deferred tax liabilities 8,098 2,046 3,429 682 2,168 247 4 2,180 1,439 10 1,994 615 13 37,125 7,985 45,109 13,511 3,939 17,450 5,119 4,209 9,329 4,737 1,827 6,564 2,425 14,362 16,787 6,180 3,118 9,298 1,500 1,313 2,813 750 1,052 1,802

10,144 TOTAL APPLICATION OF FUNDS FIXED ASSETS: Gross Block Less: Depreciation Net Block Deferred Tax asset INVESTMENTS CURRENT ASSETS, LOANS & ADVANCES Cash and Bank Balances Other Current Assets Loans And Advances 26,821 18,789 189,071 234,681 TOTAL 254,771 7,046 1,356 5,690 334 14,067 254,771

4,110 66,006

2,419 29,168

3,629 15,770

2,622 10,988

3,522 719 2,804 136 108

2,081 449 1,632

1,337 268 1,069

672 162 509

293

305

205

11,340 6,759 44,860 62,959 66,006

6,722 2,027 18,493 27,243 29,168

2,157 3,074 9,166 14,397 15,770

3,414 543 6,316 10,274 10,988

Share Capital

3,404

2,425

6,180

1,500

750

1:data presentation: ANALYSIS OF SHARE CAPITAL:

Share Capital
7,000 6,180 6,000 5,000 4,000 3,000 2,000 1,000 0 1 2 3 4 5 3,404 2,425 1,500 750

Interpretation:

1. The ratio reflects the relative contribution of creditors and owners of the business in its financing .A high ratio show a large share of financing by the creditors to the firms.

Secured Loans

165,005

37,125

13,511 5,119 4,737

analysis of secured loans:

Secured Loans
180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 1 2 3 4 5 13,511 5,119 4,737 37,125 Secured Loans 165,005

Unsecured Loans

18,566

7,985

3,939

4,209

1,827

ANALYSIS OF UNSECURED LOANS:

Unsecured Loans
20,000 15,000 10,000 5,000 0 1 2 3 4 5 7,985 3,939 4,209 1,827 18,566

INTERPRETATION: 1. It is an increasing trend, it shows that the firm ability to make the loan payment on time over the debt life of the project.

Reserves & Surplus

57,652

14,362 3,118 1,313 1,052

ANALYSIS OF RESERVE AND SURPLUS:

Reserves & Surplus

4:

60,000 40,000 20,000 0 1 2 14,362 3,118 1,313 4 1,052 5

Interpretation:: 1. Through the analysis it seems that the liquidity of the firms is good and it is up to the standard ratio.

Total Assets Turnover Ratios

0.08

0.09

0.09

0.09

0.08

ANALYSIS OF TOTAL ASSETS TURNOVER RATIO:

Total Assets Turnover Ratios

FORMULA OF TOTAL ASSETS TURNOVER RATIO: Sales/total assets.

Net Profit / Total Funds

0.86

1.04

1.08

0.91

0.65

ANALYSIS OF NET PROFIT/TOTAL FUND:

Net Profit / Total Funds

Formula of net profit:( net profit)*100/net sales.

Investment Deposit 38.22 34.81 36.38 36.33 33.45

Ratio

ANALYSIS OF INVESTMENT DEPOSIT RATIO:

Investment Deposit Ratio

Investment Deposit Ratio

Dividend Per Share

14

21.5

29

30

30

ANALYSIS OF DIVIDEND PER SHARE:

Dividend Per Share

Formula of dividend per share: dividend paid to equity shareholder/average number of issued equity shares.

Earnings Per Share 86.29 106.56 143.67 144.37 116.07 ANALYSIS OF EARNING PER SHARE:

Earnings Per Share

Earnings Per Share

Formula of earning per share: Market price per equity share/earnings per share.

Quick Ratio

6.52

6.15

5.74

9.07

8.5

ANALYSIS OF QUICK RATIO:

Quick Ratio
10 9 8 7 6 5 4 3 2 1 0

9.07 8.5 6.52 6.15 5.74

Quick Ratio

10

Formula of quick ratio:( current assets-inventory)/current liabilities

1. State bank of India is strictly following the guidelines of RBI on project financing. 2. The bank finances the project only through term loans. 3. If the interest is due further 3 more months then it will be treated as doubtful assets and interest rates become zero. 4. Interest rate is fixed depending upon the projects which is known as fixed bank advances rate. 5. All of state bank of India customers are satisfied with the services provided by the banks any of these customers satisfied with the low interest rate and longer repayment period of the advance payment. 6. Most customers are shifted from other banks advance product to STATE BANK OF INDIA because of no hidden charges, high interest rate, less payment period.

1. There is more than period for repayment of education loan. 2. Education loan should be providing to private college also which is not under AICTE or any other kind of university. 3. State bank of India should take steps to solve customers problem immediately. 4. Loan sanction date should be according to customer convenient. 5: The attention is required on the areas of growth, profitability, service Level and building talent. T TO increase the profit of bank, bank should decrease their operating expenses and increase their income. o To increase its liquidity, bank should keep some more cash in its hand instead of giving more and more advances. o Introduce quality consciousness and standardization of the work system and procedures. o There is need to build the knowledge and skill base among the employees in the context of technology.