1. Financial Performance Of Vijaya BankA Study on Financial Performance of VijayaBank in KadurProject ReportSubmitted to Kuvempu University in partial fulfillment of therequirements for the Degree ofMaster of CommerceSubmitted ByRANJITH KUMAR B.JM.Com. Semester IVDepartment of Post Graduate Studies in CommerceP.G Centre Kuvempu university Kadur, Chikmagalur District, KarnatakaRegister Number: MC128619Under the Guidance ofVenkatesha B.MFaculty MemberDepartment of Post Graduate Studies in CommerceKuvempu University P G Centre Kadur, Chikmagalur District, Karnataka2013-2014Kuvempu University P.G Centre Kadur Page 1

2. Financial Performance Of Vijaya BankFrom:Ranjith Kumar B.JM.com, Semester-IV,Department of Post-Graduate Studies in Commerce,Kuvempu university P.G Centre Kadur, Chikmagalur District, KarnatakaDeclarationI hereby declare that,1. The work contained in this report is original and has been done by meunder the guidance of my supervisor, Venkatesha B.M. The work hasnot been submitted to any other university for any degree or diploma.2. I have followed the guidelines provided by the Department inpreparing the report.3. I have conformed to the norms and guidelines given in the EthicalCode of Conduct of the Department.4. Whenever I have used materials (date, theoretical analysis, figures,and text) from other sources, I have given due credit to them by citingthem in the text of the report and giving their details in the reference.Signature of the Student(RANJITH KUMAR B.J)Date:Kuvempu University P.G Centre Kadur Page 2 3. Financial Performance Of Vijaya BankKUVEMPU UNIVERSITYDepartment Of Post Graduate Studies In CommerceKuvempu University P.G Centre Kadur, Chikmagalur District, KarnatakaCertificateThis is to certify that Mr. Ranjith Kumar B.J is a bonafide student ofthis Department and This Project Report on A STUDY ONFINANCIAL PERFORMANCE OF VIJAYA BANK KADAR hasbeen prepared by his in partial fulfillment of the requirement for theDegree of Master of Commerce under my guidance.Signature of Guide(VENKATESHA B.M)Date:Kuvempu University P.G Centre Kadur Page 3 4. Financial Performance Of Vijaya BankKUVEMPU UNIVERSITYDepartment Of Post Graduate Studies In CommerceKuvempu University P.G Centre Kadur, Chikmagalur District, KarnatakaCertificateThis is to certify that Mr. Ranjith Kumar B.J is a bonafide studentof this Department and This Project Report on A STUDY ONFINANCIAL PERFORMANCE OF VIJAYA BANK KADAR has beenprepared by his in partial fulfillment of the requirement for the Degree ofMaster of Commerce under the guidance of Venkatesha B.MSignature of coordinator(Dr. SHOBHARANI H)Date:Kuvempu University P.G Centre Kadur Page 4 5. Financial Performance Of Vijaya BankACKNOWLEDGEMENTMotivation causing people to act in certain direction is very necessaryfor the success of any task. Behind every successful student there is ateacher. I feel happy and proud to mention those who motivated me andcontributed directly or indirectly in making this project successfully.I take this opportunity to express my sincere thanks to Dr. Shobharani HAssistant Professor, Department of P.G Studies & Research in Commerce,Kuvempu University P.G Centre Kadur.My sincere thanks to Mr. Venkatesha B.M., Faculty Member, Department ofP.G.Studies& Research in Commerce, Kuvempu University P.G Centre Kadur,my project guide for his valuable guidance, constant advice and encouragingwords at each step throughout the project study.I would like to offer my sincere thanks to Ishwar Shetty, BranchManager of Vijaya Bank, B.H Road Branch, Kadur, with timely co-operationmy endeavor would not have been success.I would like to offer my sincere thanks to Kusuma K.S, faculty memberDepartment of Commerce.I am pleased to place my profound etiquette to my beloved father JagadeeshB.R, mother Vedavathi H.E and to my Brotherfor their encouragementaffection and love throughout my career.I thank all my friends and othersincluding library service who directly or indirectly helped me in completion ofthis work.Date:Place:Kadur RANJITH KUMAR B.JKuvempu University P.G Centre Kadur Page 5 6. Financial Performance Of Vijaya BankVIJAYA BANKKadur BranchAnnapoorna Castle, N.H.206, Check Post, KadurChikmagalur Dist, KarnatakaPin 577548CertificateThis is to certify that Mr. RANJITH KUMAR B.J is a student ofDepartment Of Post Graduate Studies in Commerce Kuvempu UniversityP.G Centre Kadur, Chikmagalur (D), has carried out a project entitled ASTUDY OF FINANCIAL PERFORMANCE OF VIJAYA BANKKADAR has been prepared by him in partial fulfillment of therequirement for the Degree of Master of Commerce.We wish all the best for his future.Signature of the Manager(ISHWAR SHETTY)Date:Place: KadurKuvempu University P.G Centre Kadur Page 6 7. Financial Performance Of Vijaya BankCONTENTSSl. No Chapters Page no1 Introduction and Research Design2 Profile of Study Area3 Conceptual frame Work4 Data Analysis and Interpretation5 Finding, Suggestion and ConclusionAnnexure:BibliographyKuvempu University P.G Centre Kadur Page 7 8. Financial Performance Of Vijaya BankLIST OF TABLESl. No Table no List of the table Page no1 4.1 Current Ratio2 4.2 Cash Position ratio3 4.3 Solvency ratio4 4.4 Fixed Assets ratio5 4.5 Return On Total Resources6 4.6 Net Profit ratio7 4.7 Interest On Loan8 4.8 Payout Ratio9 4.9 Deposits Of The Bank10 4.10 Advance Of The BankLIST OF THE GRAPHSL.NO GraphnoList of the chart Page no1 4.1 Current Ratio2 4.2 Cash Position ratio3 4.3 Solvency ratio4 4.4 Fixed Assets ratio5 4.5 Return On Total Resources6 4.6 Net Profit ratio7 4.7 Interest On Loan8 4.8 Payout Ratio9 4.9 Deposits Of The Bank10 4.10 Advance Of The BankKuvempu University P.G Centre Kadur Page 8 9. Financial Performance Of Vijaya BankLIST OF FIGURESl. No Table Page No1 Organization structure2 Branch structureKuvempu University P.G Centre Kadur Page 9 10. Financial Performance Of Vijaya BankCHAPTER -1INTRODUCTION AND RESEARCH DESIGN1.1 INTRODUCTION1.2 LITERACY REVIEW1.3 STATEMENT OF PROBLEM1.4 OBJECTIVE OF STUDY1.5 SCOPE OF THE STUDY1.6 METHODOLOGY1.7 LIMITATION1.8 CHAPTER SCHEMEKuvempu University P.G Centre Kadur Page 10 11. Financial Performance Of Vijaya Bank1.1 IntroductionFinancial performance analysis is the process of identifying the financialstrengths and weaknesses of the firm by properly establishing the relationship betweenthe items of balance sheet and profit and loss account. It also helps in short-term andlong term forecasting and growth can be identified with the help of financialperformance analysis. The dictionary meaning of analysis is to resolve or separate athing in to its element or components parts for tracing their relation to the things aswhole and to each other. The analysis of financial statement is a process of evaluatingthe relationship between the component parts of financial statement to obtain a betterunderstanding of the firms position and performance. This analysis can be undertakenby management of the firm or by parties outside the namely, owners, creditors,Investors.Financial analysis can be defined as a study of relationship between manyfactors as disclosed by the statement and the study of these factors. The objective offinancial analysis is the pinpointing of strength and weakness of a business undertakingby regrouping and analyzing of figures obtained from financial statement and balancesheet by the tools and techniques of management accounting. Financial analysis is asthe final step of accounting that result in the presentation of final and the exact data thathelps the business managers, creditors and investors.Based on this reasoning, this project is an attempt to analyze the financialperformance of VIJAYA BANK. In the financial analysis a ratio is used as an index forevaluating the financial position and performance of the firm. The absolute accountingfigures reported in the financial statement do not provide a meaningful understandingof the performance and the financial position of a firm. But the accounting figuresconvey the meaning when it is related to some other relation information for exampleRs.5crores net profit may look impressive, but the firms performance can be said goodor bad only when net profit figures is related to the firms investment.Accounting ratios are relationships expressed in the mathematical termsbetween figures that are connected with each other in the some manner. Theinformation contained in the balance sheet, profit and loss account or the incomestatements are used by the management, creditors investors and others to formKuvempu University P.G Centre Kadur Page 11 12. Financial Performance Of Vijaya Bankjudgment about the operating performance and the financial strengths and weaknessesof the firm if we properly analysis the information reported in the statement.1.2 Literacy review:Avkiran, 1995.Simply stated much of the current bank performance literature describesthe objective of financial organizations as that of earning acceptable returns andminimizing the risks taken to earn this return.Chien and Danw (2004) showed in their study that most previous studies concerningcompany performance evaluation focus merely on operational efficiency andoperational effectiveness, which might directly influence the survival of a company. Byusing an innovative two-stage data envelopment analysis model in their study, theempirical result of this study is that a company with better efficiency does not alwaysmeans that it has better effectiveness.Elizabeth and Ellot (2004) indicated that all financial performance measure as interestmargin, return on assets, and capital adequacy are positively correlated with customerservice quality. Scores Mazher (2003) discussed the development and performance o fdomestic and foreign banks in Arab gulf countries, and showed that local and foreignbanks in these countries. Literature on community bank performance, especially relatedto efficiency and bank strategy continues to expand. The following discussionsummarizes some research in this area over the past decade.Wall (1985) examined small and medium sized banks from the early1970s untilderegulation occurred in the early 1980s. He found that profitable banks had lowerinterest and non interest expense than less profitable banks. In addition, the moreprofitable banks had lower cost of funds, greater use of transactions deposits, moremarketable securities and higher capital levels.Zimme rman (1996) examined community bank performance in California during theearly 1990s, a period of slow recovery for these institutions. Excessive reliance on realestate lending caused deterioration in asset quality which reduced overall profitability.Lack of geographic diversification further compounded community bank performance.Kuvempu University P.G Centre Kadur Page 12 13. Financial Performance Of Vijaya BankMyers and Spong (2003) examined community bank growth in the 10th FederalReserve District (Kansas City) with an emphasis on economic conditions in slowergrowing markets.These slower growing markets presented problems in loan quality as well as staffingincluding senior management and directors. Community banks in low growth marketsexperienced higher overhead costs relative to income than banks in higher growthmarkets.1.3 Statement of problem:The study of financial performance contains revenue, tax, expenses, etc, on oneside and the other side shows the liabilities and assets position in the year. Ratioanalysis is a very useful analytical technique to raise pertinent questions on a number ofmanagerial issues. It provides bases or clues to investigate such issues in detail. Whileassessing the financial health of a company, ratio analysis answers to questions relatingto the banks profitability, asset utilization, and liquidity and financial capabilities ofthe banks.1.4 Objective of study To evaluate the financial performance of vijaya bank with the help of ratioanalysis. To suggest measures, on the basis of the study results, to improve further thefinancial performance of the banks under study.1.5 Scope of the studyFor the purpose of study I have selected theVijaya bank branch located at B.H.Road in Kadur is related for study of financial performance and maintaining structureand how to reduce loss. This Project report aimed at give clear picture of financialperformance and ratio analysis of Vijaya Bank.1.6 MethodologyKuvempu University P.G Centre Kadur Page 13 14. Financial Performance Of Vijaya Bank`The Data is collected for the preparation of the Project Report includesprimary and secondary data.Primary data: The primary data is collected through on Interview with the manager ofthe Bank and the Bank staff to collect information about service rendered by the bankto study the various aspects of annual Report.Secondary data: The secondary data is collected through Newspaper, Magazines,Books and Banks website, etc.1.7 LIMITATION OF PROJECT REPORT: The study is limited to only three financial years. The study is limited to only VIJAYA BANK. Kadur BranchCHAPTER SCHEME:Chapter - 1 Introduction to the studyThis chapter gives us a general introduction to the study undertaken. It talksabout the problem for which the project has been taken; the introduction of the study;need, objective and the limitation of the study conducted.Chapter - 2 Profile of the Study AreaThis chapter views the present status of the organization that is VIJAYABANK. It also covers the functional departments, its organizations structure, itsobjectives and its future prospects.Chapter 3 Conceptual frameworksThis chapter views the meaning of Financial performance and DifferentTechnics to measure the financial performances.Chapter - 4 Data analysis and interpretationIn this chapter all calculations pertaining to the study are calculated andinterpreted. Calculations refer to the ratios calculated in the study. The trends of theKuvempu University P.G Centre Kadur Page 14 15. Financial Performance Of Vijaya Bankratios are also projected and interpreted. As it is said that one picture is worth 1000words, graphs have also been provided foe better understanding.Chapter - 5 Findings, Suggestions and ConclusionsThis is the final chapter of the study with the conclusions of the overall studyalong with the suggestions pertaining to the areas of improvement.Kuvempu University P.G Centre Kadur Page 15 16. Financial Performance Of Vijaya BankCHAPTER-2PROFILE OF THE STUDY AREA2.1 HISTORY OF VIJAYA BANK2.2 COMPANY PROFILE2.3 BRANCH PFOFILEKuvempu University P.G Centre Kadur Page 16 17. Financial Performance Of Vijaya Bank2.1 HistoryVijaya Bank was founded in 1931 by A B Shetty in Mangalore, Karnataka. Itbecame a scheduled bank in 1958. Nine banks merged with it between 1963 and 1968.The bank was nationalized in 1980. In 1996, Vijaya bank opened Vijaya bank HousingFinance Ltd (VHFL), a housing finance subsidiary. The bank made its maiden IPO in2000 and a second public issue in 2003. In FY04, it bought National Housing Banksstake in VHFL, making VHFL its wholly owned subsidiary.October 1931 in Mangalore, Karnataka the objective of the founders wasessentially to promote Banking habit. Thrift & entrepreneurship among the farmingcommunity of Dakshina Kannada district in Karnataka state. The bank become ascheduled bank in1958, Vijaya Bank steadily grew into a large all India bank with asmaller banks merging with it during the 1963-68. The credit for this merger as well asgrowth goes to late Shri M.Sunder Ram Shetty, who was then the chief Executive ofthe bank. The bank was nationalized on 15th April 1980 today, the bank has built anetwork of 842 branches that span all 28 states & 4 union territories in the country.It was founded by late Shri A.B.Shetty and other enterprising farmers with anintention to promote banking habits among farming community in the DakshinaKannada district in Karnataka State.Vijaya Bank became a scheduled bank in 1958. During the year 1963-68 isgrew into all India bank by merger of nine smaller banks into Vijaya Bank. It gotnationalized in year 1980.Currently, it has a network of 1277 branches, 49 extensioncounters and 551 ATMs pread across all 28 states and 4 union territories in the country.Decade Of EntrenchmentIn early corporate history of the bank, i.e. 1931 to 1960 were not eventful.Those were the difficult years for the banks. The external environment was notconducive for growth the national movement second world war, economic recessionpost independent charges in the boning regulatory framework posed tremendouspressure on the coping capabilities of the banks. It is not surprising that the countyKuvempu University P.G Centre Kadur Page 17 18. Financial Performance Of Vijaya Bankrecorded highest number of banks failures during this period. Vijaya bank ltd. Reactedcautiously to the market realities. If followed the path of precedence and conservation.It mainly concentrated on giving gold loans and pledge loans on agriculturalcommodities. During this period of insulation. The bank added 20 branches less thanone branch per year. A branch was however opened in Bombay thus expanding thebanks.Operations beyond Dakshina Kannada district the year 1958 was the benchmark year for the bank, in the year Vijaya Bank ltd was categorized as scheduledcommercial bank by the Reserve Bank of India.Decade Of Mergers (1960-69)In the early sixties, Reserve Bank of India took a policy decision to mergesmaller banks with comparatively large smaller banks with comparatively larger onesto reduce the number of banks to an administratively manageable level. Vijaya banksaw an opening. It comes out with a proposal of collaborative merger of smaller banksfor synergy strength and collective prosperity. Some banks found the proposalacceptable totally nine banks got merged with Vijay bank ltd. On various datesbetween 1963 and 1967. The credit for successful execution of the merger plan shouldgo to Sri. M. Sunder Ram Shetty. Who was then (1962 -69) then on executablechairman of the bank. Thanks to the manager, 42 branches were added to the benchnetwork and the bank emerged as a strong and confident entity.Decade Of Growth 1970- 801969 was an eventful year for the banking industry. The year sawnationalization of 14 major banks. The remaining smaller banks were brought undersocial control. In Vijay bank ltd. Also things started happening Shri. M. Sunder RamShetty took over as the whole time chairman and chief executive of the bank. The keystrategic areas were identified for growth capital and reserve deposit advances ranchexpansion and human one bank among the non-nationwide banks. The RBI had justliberalized the branch licensing policy as a provider to its action plan, Mangalore toBangalore. Thanks to the extra ordinary enthusiasm, dedication and capacity for hardwork shown by the employees the bank could out perform its peers in the industry andKuvempu University P.G Centre Kadur Page 18 19. Financial Performance Of Vijaya Bankrecord outstanding growth which has few parallels in the history of Indian bankingindustry.During the period from 1969 to 1976 the banks deposits set up from Rs. 13.21crore to 221.02 crore recording on average annual growth rate of 42% the bank added377 new branches. The shareholders return in the form of dividend doubled from 6%to 12% the bank expanded 60th functionally and geographically. The bank introduced anumber of innovative deposit and loan schemes focusing on various customersegments.The banks publicity and public relations was at its best. The bank identifiedinternational banking as a Sunrise. Sector as early as in 1970 the full- fledgedinternational banking division was opened in the year 1971. As a part of productdiversification strategy. The bank was also very active in social lending particularly inthe area of agricultural finance. The bank had on enlightened human resourcesmanagement policy. A great deal of emphasis was laid on training .the bank opened itsfirst training college in Bangalore in 1971, the bank has 1160 employees in 1969 andthe number went up to 9080 in 1979 urges young and inexperienced. They were ahighly inspired and motivated lot. The average age of the employees at one point oftime during the period was just 27% by the late seventies the bank had made substantialheadway as indicated below.NationaizationAnd New ChaleengesThe bank was nationalized on 15/04/1980 following nationalization banksobjectives and priorities changed. Change from entrepreneurial banking to compliancebanking called for radical changes in the organizational structural policies andprograms as well as in the mindset of its employees. In the early part of 1980s thebank was pro-occupied in effecting such structural changes for effectiveimplementation of various government schemes. A new rural development and prioritysector division was created during this period to further intensity. The banks efforts forlending to priority sector and weaker sections of the society the bank introduced quite anumber of innovative schemes such as vijaya Krishna cards vijaya vicharvihar etc tomeet the specific needs of forming community.. The bank also sponsored its firstregional rural bank viz. Vishveshwaraiah grameena bank for Mandya district. Thebank has highly centralized administrative set up before nationalization. AfterKuvempu University P.G Centre Kadur Page 19 20. Financial Performance Of Vijaya Banknationalization banking operations were gradually decentralized. The bank shifted itszonal offices the respective territories. To give greater theorist on computeralizationand diversification, new departments viz, computer policy and planning depreciationcredit card division and merchant banking divisions were set up at Head office.The Challenging MinetiesIn early 90s [N ineties] banks were faced with turbulent changes in thefinancial sector. Liberalizationof economy. Deregulation, computerization etc openedup new opportunities for banks for diversification and growth. Introduction ofprudential norms in income recognition provision and capital adequacy transparency infinancial reporting etcl have rendered banks more accountable for performance. Thebank faced these challenges posed by the deregulations in its stride. It opened asmoney as 1133 new branches of these 36 were specialized, specialized industrialfinance and 551cbranches were opened to give focused attention to meet the needs ofdifferent classes of customers. Generate emphasis was also given on modernization ofbanking operations. The bank which had to book losses in 1992-1993 and 1995-96 onaccount of stringent income recognition provisioning norms, turned the cornerimmediately In 1996-97 and has now started improving its performance on theprofitability front the bank also successfully mobilized equity amounting to Rs. 100Crore through in 2000. As a result the shareholding of the government of India hascome down from 100% to 72.16%.Looking AheadToday vijaya bank is a vibrant institution it has spread its branch network in allthe 288 states and 4 union territories of the country. It has on its rolls about 12000employees an overplaying majority of whom have already put in about 20 to 25 yearsof service in various capacities. They are quite an experienced, reliable and competentlot to provide efficient service and to take the bank to greater heights.Development Of The Modern BankingFor the history of modern banking in India a preface to the English agency isthe days of east India Company would be necessary. The bank of Hindustan was thefirst Joint stock bank to be established under European management. But soon if firsthalf of the 9th century. The east India Company established 3 banks.Kuvempu University P.G Centre Kadur Page 20 21. Financial Performance Of Vijaya BankBut of Bengali in 1809 with a capital lake under government after the 3 decadethere were another two banks were established namely the banks of Bombay in 1840,the bank of Madras in 1843. These banks know as the presidency banks. These 3banks were amalgamated in 27th January 1921 to form the empirical bank of India .The aid commercial bank was perhaps the first purely joint stock bank to be establishedin 1889. Later the Punjab national bank (1989) and the peoples banks (1901) wereestablished.The swadeshi movement of 1905 gave a great stimulus to the development ofIndian banks. The banks of India were started in 1906. The A Indian bank in 1907.Thebank of Baroda in 1908 and the central bank of India in 1911.However the bankingcrises of 1943 unit hard money of the bank.The state bank of India was established andthe following banks were maee4 subsidiaries of stat bank of India.In 1922 the bank king industry witnessed many bank failure. It is only inrecent years such bank failure have been prevented 2 stability restored/. In 1935 weestablished the reserve bank of India which is acting as the Central bank of our county.Amongst various banking instructions in the county in the organized sectors.The commercial banks are the oldest institutions having a wide network of branches.In fact one of the commercial bank in our county state bank of India (SBI) has got morethan 12,000 branches all over India which is highest by any banking institution in theworld there by trying all over the county. However commercial banks have the lionsshares in the total banking operation I the county.IN 1955 THE Imperial bank of India has been taken over by the newlyconstituted the state bank of India. Pursuant to the provisions of the state bank of Actof 1956 eight state owned banks were nationalized with effect from July 19, 1969 againa 23/04/1980 six more banks were also nationalized. Thus bringing to a total of 92% ofthe banking system I India under the public sector.Regional rural banks are the newbanking institution which have e been added to the Indian banking scheme sinceoctober1975 under the regional rural banks Act 1976.With a shift in the government policies towards state ownership banks with theshareholding s of public has b been converted drawn corporate bodies into nationalinstitution under 2 phase that is once in 1969 and then again in 1981. Today as manyKuvempu University P.G Centre Kadur Page 21 22. Financial Performance Of Vijaya Bankas 28 lakhs constitute the strong public sector commercial banks today contributesbusiness in the country.Banking Regualtion Act 1949Sec 5 (1) (b) of the act defines the term banking as accepting for thepurpose of lending or investment of deposits of money from the public, repayable ondemand or otherwise and withdraw able by cheque, draft, order or otherwise. TheIndian banking regulation Act of 1949 has the essential characteristics they are asfollows:1. Acceptance of deposits from the public on current, fixed and savings bank accounts.2. Allowing of withdrawals of their deposits by cheques, drafts, orders or otherwise.3. Utilization of deposits in hand for the purpose of lending or investment in securities.4. Performance of banking business as the main business.2.2 Company ProfileVijaya Bank came into existence in 15th April of the year 1980, as aconsequence of the Government of India taking over the undertaking of Vijaya BankLtd. The Bank is engaged in transacts all types of banking business including foreignexchange. The bank has a strong presence in the fast-growing southern states. Itsbusiness activities are diversified and encompass merchant banking, credit cards,ATMs, housing finance, fast collection services etc.The Bank had sponsored its first Regional Rural Bank in the year 1985 underthe name and style VisweswarayaGrameena Bank in March. This Regional Rura l Bankcaters the needs of the target group belonging to Mandya district of Karnataka State.VB introduced the novel scheme under the name of VijayaVicharVihar' in the year1989. During the year 1992, the bank had introduced automatic renewal facility up tofour times in respect of short-term deposits accepted for periods from forty-six days toone year for the convenience of the customers. VB had entered into the Memorandumof Understanding (MoU) with the Reserve Bank of India in the year of 1994 to fulfil ldefinite performance commitments. Also in the same year of 1994, the bank introducedthe new schemes viz. Vijaya Gift Bond Scheme and Vijaya Service Card for enlargingKuvempu University P.G Centre Kadur Page 22 23. Financial Performance Of Vijaya Bankits services to its business clientele.The Bank opened its third exclusive NRI branch atMapuca (Goa) and established special NRI Cells at the branches in Tiruvalla,Kottayam, Trivandrum and Kozhencherry (all in the Kerala State).During the year 1995, VB had opened 33 new branches and also the bankopened five Hi- tech Agricultural Finance branches at Bangalore, Coimbatore, Delhi,Hyderabad and Lucknow. In the identical year of 1995, the bank entered into anagreement with M/s. Oriental Exchange Co., WLL Manama, Bahrain providing for theBank's participation in the said exchange company's day-to-day management. VijayaBank launched a fully operational Custodial Services Division at Mumbai. In the year1996, VB had opened its first subsidiary, Vijaya bank Housing Finance Limited to addimpetus to housing finance. Vijaya Bank introduced three new loan schemes, namely,'VijayaNivruthi', 'VijayaKrishiVikas' and 'VijayaMangala' to cater to the credit needs ofpensioners, farmers and workingwomen respectively. The Bank had also entered intotie-up arrangements with ICICI, Banking Corporation Limited and Oman InternationalBank Ltd. VB had introduced innovative banking service called Any Branch Banking'in the same year of 1996. During the year 1997, Vijaya Bank had launched a specialagriculture credit plan targeted specifically at agriculture and other, rural advances. TheBank also launched the special loan recovery motivation scheme', which helped reducethe level of NPAs from 11.6 per cent to 9.6 per cent. The Bank had entered intodomestic correspondent Banking arrangements with various private sector banks andforeign banks during the year 1998.After a year, in 1999, Vijaya Bank had entered into Rs 200-crore take-outfinancing agreement with the Housing and Urban Development Corporation (HUDCO)for funding infrastructure projects. In the year 2000, VB had introduced a new schemenamed V-Star savings bank Account Scheme. Vijaya Bank taped the capital marketwith an initial public offering in the year 2000. The Bank had signed a pact with LIC inthe year of 2003 to offer Life insurance cover to all its existing as well as its newdeposit-holders. VB had unveiled a new electronic fund remittance facility called V-REMIT,under which the bank customers can electronically remit funds to the accountholders in any bank. The MoU was signed with M/s National Insurance CompanyLimited in the year 2003 for marketing banc assurance products. Bank has decided toamalgamate its own subsidiary VIJAYA BANK Housing Finance Ltd. (VHFL) withthe Vijaya Bank. Vijaya Bank had opened a Kiosk that is exclusively for reta il lendingKuvempu University P.G Centre Kadur Page 23 24. Financial Performance Of Vijaya Bankat its Ashoknagar Branch in Mangalore and signed the MoU with Punjab NationalBank and Principal Financial Group of USA for a joint venture participation in AssetManagement Company.In the year 2004, the bank made tie-up with NIC to offer free insurance policy.Punjab National Bank (PNB) and VB had entered into a four-way partnership withPrincipal Financial of the US and Berger Paints to set up an insurance brokingcompany. Vijaya bank Housing Finance Ltd became a wholly owned subsidiary of thebank in the identical year of 2004. The Bank signed a pact with Nabard to co- financeagriculture, agro processing, hi-tech agriculture and rural development projects. VijayaBank launched the bank's second city specific credit card - the 'Hyderabad Card'.During the year 2005, the bank made tie-up with TAFE. In the year 2006-07, the bankimplemented the Crore Banking Solution (CBS) in additional 152 branches. VBopened 43 new branches, upgraded 10 extension counters into full- fledged branches,converted 2 regional foreign exchanges into full- fledged overseas branches and alsoconverted one capital market services branch into a general banking branch in the yea r2006-07.The bank had helped 11061 Self Help Groups in the same year by the way ofloan disbursement. In June of the year 2007, VB had inked a memorandum ofunderstanding (MoU) with credit rating agency ICRA, under which ICRA will assignratings to small scale industries (SSIs) and small and medium enterprises (SMEs) thatare borrowers of the bank. As of April 2008, signed a memorandum of understandingwith Fitch Ratings India to provide bank loan ratings to its corporate clients at anormal fee. Vijaya Bank plans to focus on farm and retail lending to push up business.Activities of Banksa. Primary Functions.b.Subsidiary Functions.Primary Functions:Kuvempu University P.G Centre Kadur Page 24 25. Financial Performance Of Vijaya Banki. Acceptance of deposits: It is very important for banks as it forms the basis of allother activities of banks. It accepts various types of deposits. They are currentdeposit, saving deposit, fixed deposit and recurring deposits.ii. Lending of Funds: It is also the most important function of Commercial Banks asit fetches the major portions of the income of the banks.Banks lend money by the way of loans, overdrafts, cash credit and discounting ofbills.Subsidiary Functions:i. Agency Functions: The services rendered by banks as agent of their customersare called agency services. They are:ii. Banks collect cheque, bank draft, bills, interest, dividends etc on behalf of thecustomer.iii. Banks sells and purchases securities on behalf of the customers.iv. Banks arranges for remittance of funds from one place to another place.v. Banks acts as trustees, executors, representatives of their customers.vi. General Utility Services: Services rendered by banks to their customers as wellas the general public are called as general utility services.vii. Banks accept precious articles, documents etc for safe custody.viii. Banks helps exporters and importers in foreign trade.ix. Banks issue travellers cheque, letter of credit, circular notes etc.x. Banks acts as a reference and supply information about the financial standingof the customers to others.Functions and importances of banksThe importance of banks in the modern economy cannot be denied. Banks play asignificant role in the economic development. Banks perform a number of functions.They are:1. Banks mobilize the small scattered and ideal savings of the people, and make themavailable for productive purpose. In the sort, they aid the process of capitalformation.Kuvempu University P.G Centre Kadur Page 25 26. Financial Performance Of Vijaya Bank2. By accepting the savings of the people, banks provide safety and security to thesurplus money of the depositors.3. Banks provide a convenient and economical method of payment. The chequesystem introduced by banks is convenient form making payments. Again the use ofcheque economies the time and trouble involved in settlement of businessobligations.4. Banks provide a convenient and economical means of transfer of funds from oneplace to another. Banks drafts are commonly used for remittances of funds fromone place to another.5. Banks helps the movement of capital from regions where it is no very useful toregions where it can be more usefully employed, by moving funds, banks increasesthe utility of funds. Again by moving funds from one place to another, bankscontribute to the economic development of backward regions.6. Banks influence the rates of interest in the money markets. Through the supply ofmoney (i.e. bank money or bank deposits) banks expert a powerful influence onthe interest rates in the money market.7. Banks help trade and commerce industry and agriculture by meeting their financialrequirements. But for the financial assistance provided by the banks, the pace ofgrowth of trade and commerce industry and agriculture would have been veryslow.8. Banks direct the flow of funds into production channels. While lending money,they discriminate in favor of essential activities and against non essential activities.Thus they encourage the development of right types of activities which the societydesires.9. Banks always make it a point to help the industries, the prudent, the punctual andthe honest and discourage the dishonest, the spendthrift, the gambler the lair andthe knave (i.e. the rouge). Thus banks act as public conservators of commercialvirtues.10. Banks serves as the best financial intermediaries between the saver (i.e. thedepositors or lenders) and the investor (i.e. the borrowers or the entrepreneurs).Kuvempu University P.G Centre Kadur Page 26 27. Financial Performance Of Vijaya BankService ProfileThe bank has many financial services and different schemes. Important among themare as follows:1. Domestic products saving bank deposits for individuals & non-tradingorganizations / institutions.2. Current Account, For business operations trades, businessmen, corporate bodies.3. Fixed Deposits Secured way to high returns individuals and institutions.4. Kamadhenu Deposits Re-investment money multiplier plan.5. Auto Renewal Higher return in a shorter plan.6. Flexi Deposits A combination of savings & fixed deposits high return & instantliquidity.7. Ashraya Deposits Respecting Indian values for senior citizens.8. Recurring deposits scheme Inculcating saving, a rewarding & recurring habit.9. Floating Rate Deposits Scheme (Frds) Insures against interest rate fluctuations.10. Loan Products11. Housing Loan Scheme Purchase of a ready built house / flat construction of house,purchase of a site and construction of house thereon, for undertaking repairs,renovations, up gradation, and creation of additional amenities and for taking overof the HL liability from other recognized housing finance companies and banks.12. Home Improvement Loans Furnishing the house / flat along with banks homeloans / independently.13. Vijmobile Facilities purchase of new / used cards / jeeps of all make. The schemealso covers finance for purchase of brand new two wheelers.14. Vijcarry Provided credit worthy individuals, professional and salaried class forbuying consumer durables and household articles.15. Vijcash Offer assistance for meeting unforeseen contingencies.16. Finance is granted against approved shares, bonds and debentures held by theclients.17. Vijbudget Fulfills the financial needs of confirmed employees of reputed PSUs,joint stock companies, central / state / semi government employees and lecturers/ professors / assistant professors of colleges / universities and research institutes.Kuvempu University P.G Centre Kadur Page 27 28. Financial Performance Of Vijaya Bank18. Vijrent Provides loans to property owners whenever the property is leased / rentedout to PSUs central / state / semi government undertakings. Reputed corporatebanks. Financial institutions, Insurance companies and MNCs.19. Canmortgage Designed to meet the financial requirements against security ofequitable mortgagee of property (land & building) to professional, businessman,salaried persons and individuals.20. Vidyasagar Educational Loan Scheme Renders financial assistance for needy andmeritous students for pursuing all type of studies (professionals / general) in Indiaand Abroad.21. Loan scheme to traders / business enterprises With hassle free and minimumterms and conditions, the scheme cater to the needs of t raders and other businessenterprises for smooth flow of business activities.22. Mahila Exclusive loan scheme for women clientele.23. Agri Loan Scheme various loan schemes for agri-clinic, minor, irrigation, farmdevelopment / machinery, plantation crops fishers and for agro-exports.24. Ssi Loan Scheme A host of schemed available for technology up gradation fund intextile and jute industries, credit linked capital subsidy standby credit for capitalexpenditure and margin money scheme of KVIC.Other Priority Scheme- These include loan for retail traders, small business,professional / self employed, medical practitioners and loan for solar water heating /home lighting system.Credit Card Operations The first Indian card issuers to bay ISO 9002 certification, VIJCARD today as adistinct recognition in the domestic as well as international market. All investors of VIJCARD namely, VIJCARD visa, classic, visa-corporate,master card and visa international gold are issued through all VIJAYA BANKbranches & 24 VIJCARD service centers located at major cities across thecountry. Four Indian Banks are in affiliation with the bank for issue of VIJCARDVISACARD. Launched DEBIT CARD on November 4, 2003, a value added and tech basedproduct for its niche clients.Kuvempu University P.G Centre Kadur Page 28 29. Financial Performance Of Vijaya BankWho can open an account:Savings Bank Account can be opened by1. An individual in his own name2. More than one individual in their joint names payable to all of them jointly or anyone or more or survivor/s.3. Guardian on behalf of a minor furnishing a declaration as to the date of birth of theminor.4. A minor over the age of 12 years in his own name provided the minor produces thesatisfactory proof of his / her date of birth such as Date of birth certificate; issuedby corporation / hospital, school certificate etc. [However the maximum balance insuch account shall be restricted to Rs. 10,000/-].5. Secretaries / treasurers / managers or duly constituted / authorized officers of theclubs, association (registered or unregistered), school, religious or charitableinstitutions and such other body of like nature in their names, by giving clearoperational instructions and furnishing the constitution / rules & bylaws governingsuch institutions and other necessary information.Pass books / sheets1. Computerized account statements are also issued in lieu of pass book, if thecustomer so desires. Such statements will be sent in soft copy to the available e-mailID of the customer, if he/she so desires2. Any unreasonable delay in getting back the pass book / statement of accountperiodically should be brought to the notice of the Branch Head3. No entries should be made in the pass book / account statement by the deposit /account holder4. Any manual entry made in the passbook / statement of account, by the bank staff,should be insisted for authentication by the Officer / Branch Manager5. The pass book should be tendered in the branch while depositing and / orwithdrawing money or at least once a fortnight for getting the entries written upKuvempu University P.G Centre Kadur Page 29 30. Financial Performance Of Vijaya Bank6. The depositor should check up the entries in the pass book / account statement andreport immediately to the Branch Manager, if any discrepancies are observed/found7. If no representation is received within 3 days from the date of updating thepassbook, the Bank will presume that the entries are correct and will bind on thecustomer8. If the pass book is lost, duplicate pass book will be issued against written requestand with applicable charges.Transactions1. In the counter, credits to the account shall ordinarily be through a Pay- in-slipsupplied by the Bank unless otherwise permitted by the Bank and such credits willbe acknowledged by the authorized official of the Bank2. Depositor can remit to the accounts from other branches through the AlternateDelivery Channel like NEFT / RTGS / ECS / Net banking / Mobile Banking etc.,duly complying with the conditions stipulated therein3. Deposit to the account shall be in multiple of Re.1/- subject to minimum of Re.1/-per occasion4. Withdrawals shall be ordinarily made only by way of cheques supplied by theBank. However the Bank, at its discretion, may allow payments by way ofwithdrawal slips, ECS, electronic media, mandates, cheque images where chequetruncation is provided, etc.5. For withdrawals by using withdrawal slips, the account holder should be present inthe counter along with the latest pass book. Withdrawal slips are not meant forissuing to third parties and should be used on the same day of issue6. If a customer having cheque books, needs to do cash / non-cash transactionwithout using the cheque book, such requests may be considered by the Bank onmerit only in the parent / base branch7. Cheques / bills, pay orders, demand drafts, pension bills, dividend warrants, refundorders, etc., may be collected through account on behalf of the depositor onpayment of collection charges stipulated by the bank from time to time. Theproceeds of the instruments accepted for collection will be credited to the accounton realisation and even if credited before realisation, withdrawals are permittedonly after realisation of the instruments. The bank, therefore, has the right to debitKuvempu University P.G Centre Kadur Page 30 31. Financial Performance Of Vijaya Bankthe customer's account, in the event advance credit has been given in respect ofinstrument accepted for collection and such instrument is returned unpaid. Thebank will not be responsible for any loss that may occur by delay or otherwise intransmission or collection8. All the cheques, drafts and other valuable instruments sent by a customer by postmust be transmitted only by means of registered post, failing which the bank willbe absolved of all liability arising from any fraud in respect of such instrumentslost or stolen in transmission9. Should the bank receive notice form the drawer of the loss of the cheque or to stoppayment of a cheque, such notice will be registered, but the bank will not beresponsible should the cheque be paid on presentation by oversight of such noticeor otherwise. If such a Notice is given by telegram, it should at once be confirmedby a letter. Service charges as stipulated from time to time will be collected forrecording stop payment of cheques10. The Bank is not bound to give notice of dishonour of cheque, etc., untildishonoured instrument is received by the Bank11. While returning a cheque, the bank need not mention the name and address of thedrawer of the cheque even if a request is made by the payee. It may be disclosedonly under the following circumstances :o Disclosure is necessitated as per the Court's ordero Disclosure is to be made to an agency of the State duly empowered under theStatueo Drawer of the cheque has consented for such disclosure1. No account will be allowed to be overdrawn except by special arrangement withthe bank. Interest on the amount overdrawn will be calculated at the rate prescribedby the bank from time to time on the daily balance and the same will be charged tothe account on the last day of the quarter in which the account was overdrawn oreven earlier if the bank thinks it desirable2. When the depositor wishes to transfer his account from one branch of the bank toanother branch, upon his written request, and surrender of cheque leaves, thetransfer will be made free of charge, but the depositor will be required to payservice charges as stipulated form time to time for a new pass book which will besupplied to himKuvempu University P.G Centre Kadur Page 31 32. Financial Performance Of Vijaya Bank3. The account will be closed on a written request of the depositor(s) and the balanceto the credit, if any, will be paid to the depositor on surrendering the unusedcheque leaves and the pass book. The passbook will be returned to the depositorafter closing the account.Cheque book facility1. The account holders can opt for cheque book facility by maintaining the prescribedminimum balance. All such account holders are provided with 2 cheque books perannum free of charges2. Other account holders without cheque book facility can withdraw cash from theiraccounts using the Withdrawal SlipsRestrictions on withdrawals1. Maximum withdrawals other than through ATM are restricted. If such withdrawalexceeds the limit, service charge will be levied as decided by the Bank from timeto time. The present charges are as under:Minor Accounts1. Accounts, opened in the name of the minor by guardian, will automatically ceasefor operation by the guardian on the date of the minor attaining the majority. Theguardian shall attest the signature of the then minor, duly complying with theKYC norms, for further operations by the then minor therein.Interest payment / levy of charges1. Interest on Savings Bank Account is paid at the prescribed rate on daily products.Such interest is calculated for the periods February to July and August to Januaryand credited on the 1st day of succeeding month. Interest so calculated will berounded off nearest to a rupee. If interest comes to less than a rupee no interest willbe paid for that half year2. Cash deposited into the account, over and above the prescribed limit, shall attractservice charges as fixed by the Bank from time to timeKuvempu University P.G Centre Kadur Page 32 33. Financial Performance Of Vijaya Bank3. If the account is closed incidental charges will be recovered (except wherepremature closure of an account is due to the death of the account holder, transferto another branch, transfer for term deposits or for opening another joint account)Banks rights1. The Bank has a paramount lien on the deposit amount and reserves to itself theright to appropriate the deposit amount towards any financial obligation of thedepositor to the bank in any capacity2. The bank reserves the right to refuse payment of cheques / withdrawal slips, whichbears unauthenticated alterations and / or written with pencil.3. The Bank reserves its right to reverse / correct the mistakes located at any time4. If the cheques issued by the account holder are returned for want of sufficientfunds or the account has any other irregularity, the Bank reserves its right to warn,stop issuing further cheque books and close the account.MissionTo emerge as a Prime National Bank backed by modern technology, meetingcustomers aspirations with professional banking services and sound growthcontributing to national growth.2.3 Branch ProfileThe Kadur branch of Vijaya Bank is located at Annapoorna Castle, N.H.206,Check Post, Kadur. The branch code is 1467 .Vijaya Bank Kadur branch address,contact and other codes below.Bank: Vijaya Bank.State: Karnataka.District: Chikmagalur.Branch: KadurEstablish on: 28-10-2010Branch manager: ISHWAR SHETTYIFSC Code: VIJB0001467 (5th character is zero)Branch Code: 001467 (Last 6 Characters of the IFSC Code)City: KadurKuvempu University P.G Centre Kadur Page 33 34. Financial Performance Of Vijaya BankAddress: Annapoorna Castle, N.h.206, Check Post, KadurContact: 9180 25584066KADUR1467@VIJAYABANK.CO.INKuvempu University P.G Centre Kadur Page 34 35. Financial Performance Of Vijaya BankFigure. 1Organization structure[Source: Secondary data]Managing directorChief Genaral managerGeneral manager(operation)General manager (planingand development)General manager(commercial andistitution)General manager(treasury)General manager(technology)General manager(vigiliance and inspection)Kuvempu University P.G Centre Kadur Page 35 36. Financial Performance Of Vijaya BankFigure. 2Branch structureKuvempu University P.G Centre Kadur Page 36 37. Financial Performance Of Vijaya Bank[Source: Secondary data]Branch managerDeputy managerAssistence manager(Advance)Head cashierSingel windowOperaterComputer operaterProbationaryofficerAttendersKuvempu University P.G Centre Kadur Page 37 38. Financial Performance Of Vijaya BankCHAPTER-3CONCEPTUAL FRAMEWORKKuvempu University P.G Centre Kadur Page 38 39. Financial Performance Of Vijaya BankBankingThe word bank is derived from the Italian word Banco The Latin wordBancus and the French word banque which means a bench. In olden days the Europeanbankers transacted their banking activities viz, money changing and money lending bydisplaying coins of different countries and of different denomination on the benchesinstalled in the market place. As such the word Bank should be associated with thesewords. But, according to others the word bank is derived from the German word bankwhich means the common fund raised from a large number of the members of thepublic for the purpose of financing the needy and for giving the loans.Banking is one form or another was insistent and even in accent times. Thewritings (The minister of Chandragupta maurya) contained reference to bankinghowever banking as a kind of business i.e. modern banking is of recent origin. It comeinto existence only offer the industrial revaluation.After the Industrial revaluation withthe increase in the size ofindustrial and business units. Anoint stock from of businessorganigsation came in to existence only after the industrial regulation. The first JointStock company bank was established under the European management by the names ofbank of Hindustan of Calcutta and it was failed then there presidency bankers calledbank of bagal in 1806 Bank of madras in 1843 were established with the partic ipationof Government and since the right of note issue. The first purely Indian joint stock bankwas Oudh commercial Bank which came into existence in 1889.Then the PunjabNational Bank in 1894. The peoples bank in 1901 was established. The swadesh imovement of 1905 gave great stimulus to the starting of Indian Banking.Joint stock company form of business organization came into existence thisform of organization encouraged people with small means to become shareholders ofbig industrial to business enterprise still there were certain sections of the public whowere not prepared to invest their surplus moneys if they were assumed of therepayment of their money with a little interest there on so, naturally there were the needfor the formation of financial institutions that could collect the surplus funds of thepeople on terms acceptable to them and make them ( i.e. The funds) available to theneeds for productive purposes accordingly a long number of financial institutions calledKuvempu University P.G Centre Kadur Page 39 40. Financial Performance Of Vijaya BankJoint stock banks were set up after the industrial revolution. As such joint stock banksor modern banks are of recent development.Bank plays a very useful and dynamic role in the economic life of a modernsociety these render very valuable services to the community to the trade and industrythey help the wheels of tr5ade commerce and industry always revolving. Banks inmodern days acts as the Chief agent in mobilizing the dormant funds of community todiverts them into productive channels they contribute to the general welfare andprosperity of the nation. Banks today are the back bone of modern industry. They arean essential part of the community. So, naturally there was the need for the formationof financial institutions that could collect the surplus funds of the people on termsacceptable to them and make them (i.e. the funds) available to the needs for productivepurpose. Accordingly a long number of financial institutions called joint stock bankswere set up after the industrial revaluation even though banking as an independentbusiness oriented during the 14Th centrally in England. The seeds of banking businesswere shown as early as 2000 back,According to Geofferycrowther the present day banker has their ancestry viz,merchant money lender and gold smith. Banking in India flourished a ancient videtimes. It originated in our country as early as 500 B.C money was accepted on depositsand given in the form of advances. However banking in those days consisted mainly onmoney lending county.During the mogul period of Indigenous bankers played a very important role inlending money and financing of foreign trade and commerce for the purpose of lendingthe towns and principal towns. In small towns a sheath also known shah and chilion performed banking functions In principal towns Magarsheth as Town bankerswas doing money lending business besides money lending they were transferring fundsfrom place to place and doing collection business mainly through Hindus.They accepted deposits and employees them in their business the rate ofinterest charged by them was very high as the advance were unsecured and risks andwere repaid over a long period of time that is not cause now. The money lender Actpaused by different state has imposed large number of restrictions on their businesswith the growth of banking habits. The changes in the public opinion and fastexpansions of banking is rural and semi urban areas especially after nationalization ofKuvempu University P.G Centre Kadur Page 40 41. Financial Performance Of Vijaya Bankmajor Indian commercial banks the money lenders close bound to close theirimportance.Financial PerformanceThe word Performance means the performing of an activity, keeping, inview the achievement made by it. In other words,Performance means the role Played by an arrangement keeping in view theachievement made by it. In the context of the banks, it takes into account the way oftheir progress.The opinion of Robert Albans 1 about performance is The word performance is usedto mean the efforts extended to achieve the targets efficiently and effectively. Theachievement of targets involves the integrated use of human, financial and naturalresources.According to Erich L. Kohlar, The performance is a general term applied to a part orto all the conducts of activities of an organization over a period of time; often withreference to past or projected costs efficiency, management responsibility oraccountability or the like.On the basis of the above definitions, it can be said that the word Performance notonly refers to the presentation of something but it also exhibits the quality and resultsachieved by the management of an enterprise. It takes into account the accomplishmentof objectives and goals set for an enterprise. Keeping in view the comparison of thepresent success with the past. However in the context of the present study, it coversfinancial, cost, personnel and social aspects. Thus we can say that the overallconclusion of the activities of an enterprise is called Performance.Techniques OfFinancial Peroformance AnalysisA financial analyst analyzes the financial statements by selecting the appropriatetechniques according to the purpose of analysis. Financial statements may be analyzedby means of any of the following techniques.1. Comparative Statements2. Common-size StatementsKuvempu University P.G Centre Kadur Page 41 42. Financial Performance Of Vijaya Bank3. Trend Analysis4. Cash Flow Statements5. Fund Flow Statements6. Cost-Volume-Profit Analysis7. Ratio Analysis1. Comparative statements:Comparative statements are financial statements that cover a different timeframe, but are formatted in a manner that makes comparing line items from one periodto those of a different period an easy process. This quality means that the comparativestatement is a financial statement that lends itself well to the process of comparativeanalysis. Many companies make use of standardized formats in accounting functionsthat make the generation of this type of statement quick and easy. The benefits of acomparative statement are varied for a corporation. Because of the uniform format ofthe statement, it is a simple process to compare the gross sales of a given product or allproducts of the company with the gross sales generated in a previous month, quarter,or year. Comparing generated revenue from one period to a different period can addanother dimension to analyzing the effectiveness of the sales effort, as the processmakes it possible to identify trends such as a drop in revenue in spite of an increase inunits sold.Along with being an excellent way to broaden the understanding of the successof the sales effort, a comparative statement can also help address changes inproduction costs. By comparing line items that catalog the expense for raw materialsin one quarter with another quarter where the number of units produced is similar canmake it possible to spot trends in expense increases, and thus help isolate the origin ofthose increases. This type of data can prove helpful to allowing the company to findraw materials from another source before the increased price for materials cuts into theoverall profitability of the company.A comparative statement can be helpful for just about any organization that hasto deal with finances in some manner. Even non-profit organizations can use thismethod to ascertain trends in annual fund raising efforts. By making use of thecomparative statement for the most recent effort and comparing the figures with thoseKuvempu University P.G Centre Kadur Page 42 43. Financial Performance Of Vijaya Bankof the previous years event, it is possible to determine where expenses increased ordecreased, and provide some insight in how to plan the following years event.2. Common size:Common-size financial statements usually involve the balance sheet and theincome statement. These two financial statements become "common-size" when theirdollar amounts are expressed in percentages.For example, a common-size balance sheet will report all of the balance sheet amountsas a percentage of the "Total Assets" amount. If Cash was $80,000 and Total Assetswere $1,000,000 then Cash will appear as 8% and Total Assets will appear as 100%. Ifthe Current Assets were $350,000 they will appear as 35%. If Current Liabilities were$180,000 then on the common-size statement they will appear as 18%. By having allof the balance sheet amounts as a percentage of Total Assets, you can compare yourcompany's current asset percentage (and all other line items) to your industry'spercentage or to any other company's percentages. It doesn't matter if the othercompany is larger or smaller than your company, because all amounts are inpercentages of Total Assets. A common-size income statement will show all of theincome statement amounts as a percentage of net sales. If net sales are $10,000,000and the cost of goods sold is $7,800,000, the common-size income statement willreport net sales as 100% and the cost of goods sold as 78%. If SG&A expenses are$1,300,000 they will appear as 13%. Having the income statement in percentages ofnet sales allows you to compare your company's SG&A expenses and its gross profitto your industry percentages and to other companies regardless of size.3. Trend analysisA trend analysis is a method of analysis that allows traders to predict what will happenwith a stock in the future. Trend analysis is based on historical data about the stock'sperformance given the overall trends of the market and particular indicators within themarket.Trend analysis takes into account historical data points for a stock and, controlling forother factors like the general changes in the sector, market conditions, competition forsimilar stocks, it allows traders to forecast short, intermediate, and long termpossibilities for the stockKuvempu University P.G Centre Kadur Page 43 44. Financial Performance Of Vijaya Bank4. Cash flow statementsA summary of the actual or anticipated incomings and outgoings of cash in a firmover an accounting period (month, quarter, year).Itanswers the questions: Where the money came (will come) from? Where it went (will go)?Cash flow statements assess the amount, timing, and predictability of cash-inflows andcash-outflows, and are used as the basis for budgeting and business-planning.The accountingdata is presented usually in three main sections:1. Operating-activities (sales of goods or services),2. Investing-activities (sale or purchase of an asset, for example), and3. Financing-activities (borrowings, or sale of common stock, for example).Together, these sections show the overall (net) change in the firm's cash-flow for theperiod the statement is prepared.4. Lenders and potential investors closely examine the cash flow resulting from theoperating activities. This section represents after-tax net incomeplusdepreciation andamortization and, therefore, the ability of the firm to service its debt and paydividends.With balance sheet and income statement (profit and loss account), cash flow statementconstitutes the critical set of financial informationrequiredto manage a business. Alsocalled statement of cash flows5. Fund flow statementFunds Flow Statement is a statement prepared to analyze the reasons for changes inthe Financial Position of a Company between 2 Balance Sheets. It shows the inflowand outflow of funds i.e. Sources and Applications of funds for a particular period. Inother words, a Funds Flow Statement is prepared to explain the changes in theWorking Capital Position of a Company. There are 2 types of Inflows of Funds:-1. Long Term Funds raised by Issue of Shares, Debentures or Sale of FixedAssetsKuvempu University P.G Centre Kadur Page 44 45. Financial Performance Of Vijaya Bank2. Funds generated from OperationsIf the Long Term Fund requirements of a company are met just out of the LongTerm Sources of Funds, then the whole fund generated from operations will berepresented by increase in Working Capital. However, if the Funds generated fromOperations are not sufficient to bridge a gap of Long Term Fund Requirements, thenthere will be a decline in Working Capital.6. Ratio AnalysisA ratio is defined as the indicated quotient of two mathematical expressionsand as the relationship between two quantitative terms between figures which have acause and effect relationship or which are connected with each other in some manneror the other. A noticeable point is that a ratio reflecting a quantitative relationshiphelps to perform a qualitative judgment. Such is the nature of all financial ratios.Ratio analysis is a widely used technique in financial analysis. It is defined assystematic use of ratio to interpret the financial statements so that the strengths andweaknesses of the organization, its historical performance and current financialcondition, can be determined.Classification of RatiosThe use of ratio analysis is not confined to the financial manager only. Thereare different parties interested in the ratio analysis for knowing the financial positionof the firm for different purpose. In view of the various users of ratios, there are manytypes of ratios, which can be calculated for the given information in the financialstatements.Following is the classification of ratios:1. Liquidity Ratio2. Leverage Ratio3. Profitability Ratio4. Activity RatioKuvempu University P.G Centre Kadur Page 45 46. Financial Performance Of Vijaya BankLiquidity RatiosLiquidity refers to the ability of the concern to meet its current obligations asand when they, become due. These ratios are calculated to comment upon the shortterm paying capacity of the concern or the firms ability to meet its currentobligations. Much insight could be obtained into the present cash solvency of the firmand its ability to remain solvent in the event of emergent: i.e. the firm should ensurethat it does not suffer from any lack of liquidity and also that it is necessary to strike aproper balance between high liquidity and lack of liquidity.Leverage RatiosThe short-term creditors like the bankers and the suppliers of raw materials aremore concerned with the firms current debt paying ability. On the other hand, longterms creditors like debenture holders, financial institutions, etc, are more concernedwith the firms long-term financial position. To judge the long-term financial positionof the firm, financial leverage or capital structure ratio is used. The shareholders,debenture holders and other long-termed creditors like financial institutions are moreinterested in the long term financial position or long term solvency o f the firm.Leverage or solvency ratios are used for such an analysis. These ratios are also used toanalyze the capital structure of a company. That is only these are also called capital-structureratios. The term solvency generally refers to the firm ability to pay theinterest regularly and repay the principal amount of debt on due date.There are two aspects of long-term solvency of a firm. They are:1. Ability to repay the principal amount of loan on the due date.2. Regular payment of interest.Accordingly, there are two types of leverage ratios. The first type of leverageratio is based on the relationship between owned-capital and borrowed capital. Theseratios are calculated from the balance items. The second type of leverage ratio iscoverage ratios. These are computed from the profit and loss account.Profitability ratioProfit reflects the final result of the business operations. There is two types ofprofitability ratios namely margin ratio and ratio on returns rates. Profit margin ratiosshow the relation between sales and profits.Kuvempu University P.G Centre Kadur Page 46 47. Financial Performance Of Vijaya BankThe ultimate aim of any business enterprise is to earn maximum profit. Lordkeens remarked, Profit is the engine that drives the business enterprise, a firmshould earn profit to survive and grow for a long period of time. To the managementprofit is a measurement of efficiency and control. To the owners it is to measure theworth of their investment. To the creditors it is the margin of safety. The managementof the company should know how efficiently they carry out business operation. Inother words, the management of the company is very much interested in theprofitability of the company. Beside management, creditors and owners are alsointerested in the profitability of the co-creditors, as they want to get interest andrepayment of principal amount regularly. Owners want to get a reasonable return ontheir investment.The profitability ratio measures the ability of the firm to earn and on sales,total assets and invested capital. Profitability ratios are generally calculated either inrelation to sales or in relation to investment. The profitability ratios in relation to salesare gross profit ratio. Net profit ratio, operating ratio, expenses ratio, and etc. theprofitability ratios in relation to investment are return on assets, return on investment,return on equity capital.The important profit margin ratios are gross profit margin and net profit margin.the rate of return ratio reflects the relationship between rate and profit and investment.The important rate of return ratio is return on equity and return on investment, etc.Activity ratioFunds of the owners and creditors are invested in various assets to generatesales and profits. The better the management of assets, the larger the amount of sales.Activity ratios are employed to evaluate the efficiency with which the firms managersutilize their assets. These ratios are also called turnover ratio because they indicate thespeed with the assets are being converted or turn over into sales.Kuvempu University P.G Centre Kadur Page 47 48. Financial Performance Of Vijaya BankCHAPTER-4DATA ANALYSIS AND INTREPRETATIONKuvempu University P.G Centre Kadur Page 48 49. Financial Performance Of Vijaya Bank4.1 Data Analysis And InterpretationIn this chapter all calculations pertaining to the study are calculated andinterpreted. Calculations refer to the ratios calculated in the study. The trends of theratios are also projected and interpreted. As it is said that one picture is worth 1000words, graphs have also been provided for better understanding.Types of Ratios1. Short-term solvency ratio2. Long-term solvency ratio3. Profitability ratio1. SHORT-TERM SOLVENCY RATIOThe various ratios are:a) Current Ratiob) Cash Position Ratioa) Current RatioIt may be defined as the relationship between the current assets and currentliabilities. The ratio is a measure of general Liquidity of the firm for a short period oftime. A ratio of 2:1 is considered satisfactory as a rule of thumbCurrent Assets (CA)Current Ratio = ------------------------------Current Liabilities (CL)Kuvempu University P.G Centre Kadur Page 49 50. Financial Performance Of Vijaya BankTable.1 CURRENT RATIOYEAR CURRENTASSETS (Rupees inLacs)CURRENT LIABILITIES(Rupees in Lacs)RATIO2011-2012 7,914,81 6,361,54 1.242012-2013 9,905,41 9,336,85 1.062013-2014 13,863,24 13,125,72 1.05The Current ratio form the above calculation is worth 1.24 in 2011. In the year2012 it has decreased to 1.06. In 2013, it further decreases to 1.05. The bank needs tomaintain more current assets in order to meet its short-term obligations. We canconclude that the ratio is favorable as the current asset is slightly more than the currentliabilitie.GRAPH 4.1 CURRENT RATIO1.24CURRENT RATIO1.061.051.31.251.21.151.11.0510.952011-12 2012-13 2013-14YEARSCURRENT RATIOKuvempu University P.G Centre Kadur Page 50 51. Financial Performance Of Vijaya Bank(b) Cash Position RatioIt may be defined as the relationship between the available cash both at bankand in hand and current liabilities.A ratio of 1: 1 is considered to be a good ratio but a rate of 0.75: 1 is also good. Sucha ratio would imply that the firm has enough cash on hand to meet all the currentliabilitiesFormulaeCashCash Position Ratio = ------------------------Current LiabilitiesTABLE 4.2 CASH POSITION RATIOYEAR CASH IN THEBANKCURRENTLIABILITIESRATIO2011-2012 2,622,41 6,361,54 0.412012-2013 3,458,19 9,336,85 0.372013-2014 3,169,22 13,125,72 0.24The banks cash balances to current liabilities recorded are 0.41, 0.37 and 0.24in the year 2011-2012, 2012-13 and 2013-14 respectively. In the year 2011-12, thehighest ratio was recorded.Kuvempu University P.G Centre Kadur Page 51 52. Financial Performance Of Vijaya BankGRAPH 4.2 CASH POSITION RATIO0.410.450.40.350.30.250.20.150.10.050CASH POSITION2011-12 2012-13 2013-14YEARS2. Long Terms Solvency Ratios0.370.24CASH POSITIONLong-term solvency ratio conveys a firms ability to meet the interest cost andrepayment schedule of its Long-term obligations.These ratios are helpful to management in proper administration of capital. Italso helps the creditors to know the capacity of a business concern to pay debt in future.The various ratios are:a) Solvency Ratiob) Fixed asset to net worth Ratio(a) Solvency RatioIt can be defined as the relationship between total liabilities and total assets.Kuvempu University P.G Centre Kadur Page 52 53. Financial Performance Of Vijaya BankFormulaeTotal LiabilitiesSolvency Ratio = _______________ X 100Total AssetsGenerally lower the solvency ratio, more satisfactory or stable is the long-termsolvency position of a firm.TABLE 4.3 SALVENCY RATIOYEAR TOTALLIABILITIES (Rs.in Lacs)TOTAL ASSETS (Rs.in Lacs)RATIO INPERCENTAGE2011-2012 14,704,27 15,617,33 0.942012-2013 21,845,1 23,787,38 0.922013-2014 28,175,25 30,424,08 0.93The above ratios show 0.94% in the year 2011. It was 0.92% in 2012 and in theyear 2013 it increases to 0.93%. We have notice from the ratios calculated above thatthey have remain almost the same in the four consecutive years.Kuvempu University P.G Centre Kadur Page 53 54. Financial Performance Of Vijaya BankGRAPH 4 .3 SOLVENCY RATIO0.92SOLVENCY RATIO0.91 0.915 0.92 0.925 0.93 0.935 0.94 0.9452013-142012-132011-12YEARS(b) Fixed Asset to Net worth Ratio0.940.93SOLVENCY RATIOThis ratio establishes the relationship between fixed asset and shareholdersfund. This ratio indicates the extent to which shareholders funds are sunk in the fixedasset. Generally, the purchase of fixed assets should be financed by the shareholdersequity, which includes reserve, surpluses and retained earnings.FormulaeFixed Asset (After Dep)Fixed Assets Ratio = _______________________ X 100Net WorthKuvempu University P.G Centre Kadur Page 54 55. Financial Performance Of Vijaya BankTABLE 4.4 FIXED ASSETS RATIOYEAR FIXEDASSETS (Rs.in Lakhs)NET WORTH(Rs. in Lakhs)RATIO INPERCENTAGE2011-2012 289,74 913,09 31.172012-2013 371,10 1,942,28 19.122013-2014 52,86 2,248,83 23.5The fixed assets to net worth ratios are 31.17%, 19.12% and 23.5%. In the year2011, 2012, 2013 respectively. This ratio is in a good position as the net worth is morethan the fixed assets in all the three years. The shareholders funds are sufficient tofinance the fixed assets.GRAPH 4.4 FIXED ASSETS RATIO40.0%30.0%20.0%10.0%0.0%2011-1231.17%1. Profitability RatioFIXED ASSETS RATIO19.12%2012-1323.50%2013-2014YEARSFIXED ASSETS RATIOKuvempu University P.G Centre Kadur Page 55 56. Financial Performance Of Vijaya BankProfits are measures of overall efficiency of a business. Higher the profit themore efficient is the business.In other words they are the ratios, which reveal the total effect of businesstransaction and indicate how far the organization has been successful I its operation.These ratios are1. Return on Total Resource2. Net Profit Ratio1. Return on Total ResourceReturn on total resource or total assets ratio is the ratio of net profit to totalresources or total assets. The ratio indicates the return on fixed assets and currentassets. Return here means net profit after taxes and total resources mean all realizableassets including intangible assets, if they are realizable. This ratio measures theproductivity of the total resources of a concern.Formulae Net ProfitReturn on Total Resource = ______________ X 100Total AssetTABLE 4.5 RETURNS ON TOTAL RESOURCESYEAR NET PROFIT(Rs. in Lacs)TOTAL ASSETS (Rs.in Lacs)RATIO INPERCENTAGE2011-2012 210,12 15,617,33 1.352012-2013 297,04 23,787,38 1.252013-2014 387,60 30,424,08 1.27Kuvempu University P.G Centre Kadur Page 56 57. Financial Performance Of Vijaya BankThe return on assets in the year 2011 was 1.35%, in the year 2012 it decreasesto 1.25% and in the year 2013 it was 1.27%. As the bank purchased more assets duringthe year. There is a slight decrease in the returns.GRAPH 4.5 RETURNS ON TOTAL RESOURCE1.361.341.321.31.281.261.241.221.21.35RETURN ON TOTAL RESOURCE1.251.272011-12 2012-13 2013-142. Net Profit ratioYEARSTABLE 4.6 INCREASE IN NET PROFITRETURN ON TOTALRESOURCEYEAR NET PROFIT(Rs. in Lacs)2011-2012 210,12Kuvempu University P.G Centre Kadur Page 57 58. Financial Performance Of Vijaya Bank2012-2013 294,042013-2014 387,60In the above table it shows the figure of net profit. There has been acontinuous increase in the net profit of the four consecutive years. This shows that theprofitability of the bank is in a very sound position we can conclude that the bank havesufficient earnings to meet its expenses and to pay dividend to its shareholders.GRAPH 4.6 SHOWING NET PROFIT450400350300250200150100500NET PROFIT2011-12 2012-13 2013-14Interest on loan210.12294.04387.6YEARSThis establishes the relationship between interest received and Total Loan.FormulaeInterest ReceivedNET PROFITKuvempu University P.G Centre Kadur Page 58 59. Financial Performance Of Vijaya BankInterest on loan = ____________________ X 100Total LoanTABLE 4.7 INTERESTS ON LOANYEAR INTERESTRECEIVED(Rs. in Lacs)LOANS(Rs. in Lacs)RATIOS INPERCENTAGE2011-2012 1,259,46 4,636,66 27.162012-2013 1,702,99 6,813,72 24.992013-2014 2,022,97 11,754,86 17.21The interest on loan has been recorded as 27.16% in the year 2011. it hasdecreased to 24.99% in the year 2012. In the year 2013 it has decrease to 17.21%.GRAPH 4.7 INTEREST ON LOANKuvempu University P.G Centre Kadur Page 59 60. Financial Performance Of Vijaya Bank17.21%Interest Payout Ratio:INTEREST ON LOAN21.16%24.99%2011-122012-132013-14It establishes the relationship between interest paid and earnings before tax andinterest.FormulaeInterest PaidInterest payout ratio = ______________ X 100EBIT(EBIT= Profit for the year + Interest paid + Tax)TABLE 4.8 INTEREST PAYOUT RATIOYEAR INTEREST PAID(Rs. in Lacs)EBIT(Rs. in Lacs)RATIOS INPERCENTAGEKuvempu University P.G Centre Kadur Page 60 61. Financial Performance Of Vijaya Bank2003-2004 753,75 1,072,81 70.32004-2005 1,073,74 1,486,12 72.32005-2006 1,191,96 1,967,16 60.6The interest payout ratio in the year 2011 was 70.3%. In the year 2012 it hasincreases to 72.3% and in the year 2013 it was recorded as 60.6%.GRAPH 4.8 INTEREST PAY OUT RATIOPAY OUT RATIO70.372.360.62011-122012-132013-14Kuvempu University P.G Centre Kadur Page 61 62. Financial Performance Of Vijaya BankDepositsTABLE 4.9 DEPOSIT OF VIJAYA BANKYEAR DEPOSITS(Rs. in Lacs)2011-2012 11,658,112012-2013 17,653,812013-2014 22,376,07Deposit constitutes the main source of fund for commercial banks. Deposit forthe year 2013-2014 was also strong. Total deposits increased by 79% from Rs17, 653,81 lacks to Rs22, 376, 07 lacks. In the year 2012-2013 total deposit has increased by66% from Rs11, 653, 11 lacks to Rs17, 653, 81 lacks.GRAPH 4.9 DEPOSIT OF THE BANK1165811DEPOSITE17653812237607250000020000001500000100000050000002011-12 2012-13 2013-14YEARSDEPOSITEKuvempu University P.G Centre Kadur Page 62 63. Financial Performance Of Vijaya BankAdvances of The BankTABLE 4.10 ADVANCES OF THE BANKYEAR ADVANCES(Rs. in Lacs)2011-2012 4,6372012-2013 6,8142013-2014 11,755Advances represent the amount led by the bank to its customers. Theyconstitute the most important item on the asset side of the balance sheet of a bank.Advances may be in the form of loans, overdrafts, and cash credit. The followingfigures show the advances of the bank. In the year 2013-2014 Advances grew by 58%from Rs6, 814 Crores to Rs11, 755 Crores. The advances have been increased over theyears and this shows that the bank is in a sound position.GRAPH 4.10 ADVANCES LEVELKuvempu University P.G Centre Kadur Page 63 64. Financial Performance Of Vijaya Bank4,637ADVANCES6,81411,75514,00012,00010,0008,0006,0004,0002,00002011-2012 2012-2013 2013-2014YEARSADVANCESKuvempu University P.G Centre Kadur Page 64 65. Financial Performance Of Vijaya BankCHAPTER-5FINDINGS, SUGGESTIONS AND CONCLUSIONKuvempu University P.G Centre Kadur Page 65 66. Financial Performance Of Vijaya Bank5.1FINDINGS: Current Ratio is good in the year 2011-12 (1.24%) when compared to in year2012-13(1.06%) and 2013-14 (1.05%) Cash portion ratio is in Healthy level. In the year 2011-12 the highest currentratio recorded Solvency ratio is in the favorable position. In 3 financial years the solvencyratio all most is same and slight changes. The net fixed assets to net worth ratio are in good position, because the networth is more than the fixed assets. The net worth ratio decreases; it isfavorable symbol to the bank. The Return on Total Resource ratio is in slight decrease. In the years 2011 to2013 ratios 1.35%, 1.25% and 1.27%. It shows the bank purchased more assetsduring the years. Interest on loan has been decreases from 27.16% to 17.21% in the period 2011-12 to 2013-14; it is not a good progress. Interest payout ratio is decreases every year like 70.3% to 60.65%, it showsbetter progress of the bank. Net profit increased year by year, it shows the bank in a good financialstability. In the year 2011-12 net profit 210.12 lakhs, it increased to 387.61lakhs. Deposits from the customers accounts in the bank are increased year by year.In the year 2011-12 it is 11.658.07 lakhs. Advances of the bank. In the year 2013-2014 Advances grew by 58% fromRs6, 814 Crores to Rs11, 755Crores. The advances have been increased overthe years and this shows that the bank is in a sound position.Kuvempu University P.G Centre Kadur Page 66 67. Financial Performance Of Vijaya Bank5.2 SUGGESTIONS The Current Ratio of the bank is found to be favorable, but the bank has tomaintain more current assets in order to meet its short-term obligations. Cash portion is slight decreased, so bank has to take corrective actions over it. Solvency ratio of the bank over the years are slightly decreases, it is good forthe bank, but bank has to give more importance to reduce the total liabilities, Banks fixed assets are in the well position, so bank has to maintain the fixedassets as same. Return on resources i.e.return on fixed assets and current assets are slightlydecreased movement, so bank has to use the resources effectively than early If the bank has to attract more customers and deal with more transaction, thebank can provide advances and loans to the general public for the followingpurposes: Loan to small scale industries and cottage industries. Loan to self-employed person or young entrepreneurs. Increase short-term deposits and long-term deposits by providing higher rate ofinterest.Kuvempu University P.G Centre Kadur Page 67 68. Financial Performance Of Vijaya Bank6.3 CONCLUSIONThe study entitle A Study of Financial Performance of VIJAY BankLimited has been undertaken with the objective to analyze and interpret the banksfinancial performance. The analysis of the bank was undertaken with the help of ratios,which are important tools of financial analysis. In general, the bank has achievedprogress over the 3 financial years. The bank has a healthy financial performance. Thebank has been able to achieve heavy growth across multiple parameters, includingcustomers acquisition and revenues. It has been found that the current assets are morethan the current liabilities and we can conclude that that the bank will be able to meetall its immediate all its financial commitments, Therefore, the short-term solvencyposition of VIJAYA Bank Limited remains healthy.After having solved the ratios and analyzing the financial data, we can conclude thatthe bank has gradually excelled over the years. Thus, ratio analysis has been a veryuseful technique, which has highlighted the performance of VIJAYA Bank Limited inkey-areas and also has helped in the allocations of certain strategies to be followed byVIJAYA Bank Limited, which is indispensable to its future growth.Kuvempu University P.G Centre Kadur Page 68 69. Financial Performance Of Vijaya BankANNEXURE BibliographyKuvempu University P.G Centre Kadur Page 69 70. Financial Performance Of Vijaya BankBIBLIOGRAPHYBooks Gorden and Natarajan Banking Theory, Law and Practice, HimalayaPublishing house, 21st Revised Edition. B.s Raman Theory of Banking, United Publishers Opera Plaza, 2007 Jyotsna sethi - Nishwan bahtia Element of banking and insurance, Easterneconomic, 2010.Articles Pak. j Commer & soci analyzing Financial Performance of Commercial banksin India, Hill Publishing Pvt Ltd, Volume-4, 2010 K.Subramanyam, Dr.M. Venkateshwar, Financial Performance of scheduledcommercial Banks in India, Indian journal Of research-PARIPEX Volume-1, issue 12/Dec/2012, page 70-90Websiteswww.vijayabank.comwww.wikipedia.comwww.ask.comwwww.economictimes.comKuvempu University P.G Centre Kadur Page 70