Page 227 - DCOM208_BANKING_THEORY_AND_PRACTICE

Banking Theory and Practice

Notes
Net Profit/Total 8.24 4.19 6.05 3.42 7.77 -2.10 -12.02 14.13
Assets
Return on Total 8.24 -1.83 0.80 2.61 8.01 -2.50 -4.13 9.08
Assets
Net Operating -1.54 -2.12 -1.68 -1.72 -1.78 -1.07 -2.66 -2.14
Income/Total Assets
Net Income/Average 5.59 -2.76 -1.86 0.99 6.28 -0.42 -1.56 7.83
Equity
Return on Investment -5.75 -5.90 -4.52 -5.11 -5.35 -5.91 -7.73 -5.62
Source: Data compiled and calculated form Statistical Tables relating to the State Bank of India
RBI Mumbai, issues of relevant years
Table 5 reveals that in Net NPA to net advance the highest decline has been observed for
SBH -35.92% and lowest decline is shown in SBI -14.36%. Gross NPA to total advance the
highest decline has been observed for SBH -27.61% and the lowest decline is shown in SBI
-16.51%. Net NPA to total assets the highest decline has shown in -33.52% and the lowest
decline are shown in SBI -9.97%. Net NPA to net advance of SBI Group& public sector
banks the highest ratio is found in SBH -35.92% and the lowest ratio is shown in -14.36%.
However, when compared State Bank of India Associates the decline rate is lower for
public sector banks. Operating expenses to total income the highest decline has been
observed for SBI -0.85% and the lowest decline is shown in SBS 0.00%. Net profit to total
assets the highest ratio has been observed for SBS -12.02% and the lowest has shown in SBP
- 2.10%. Return on total assets the highest decline has been observed for SBT 9.08% and the
lowest decline is shown in SBH 0.80%. Net operating income to total assets the highest
decline has been observed for SBS - 2.66% and the lowest has shown in SBP -1.07%. Net
Income to average equity the highest decline has been observed for SBT 7.83% and the
lowest has shown in SBP - 0.42%. Return on investment highest decline has been observed
for - 7.73% and the lowest has shown in SBH - 4. 52%.
Banks differ in their Share of NPA to Net Advances
Table 6: Analysis of variances of Ratios of State Bank of India and its GroupBanks
differ in their Share of NPA to Net Advances
Ratios F-Value
Net NPAs/Net Advance NS
Gross NPAs/Total Advance NS
Net NPAs/Total Assets NS
Net NPAs/Net Advance of SBI Group & Public Sector Banks NS
Operating Expenses/Total Income *
Net Profit/Total Assets **
Return on Total Assets *
Net Operating Income/Total Assets NS
Net Income/Average Equity **
Return on Investment NS
NS-indicates Not Significant
*-indicates significance at 5 percent level
**-indicates significance at 1 percent level
Source: Computed from Secondary Data
Contd...

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