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RatioAnalysis

BalanceSheet Ratio

Profit And

LossAccount

Ratio

Combined /

Composite

Ratios

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Balance Sheet Ratio

Current

Ratio

Quickratio

= Current Assets /

Current Liabilities

= Quick Asset /Quick liabilities

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Balance Sheet Ratio

CurrentRatio

2009/2010

0.4

2008/2009

0.4

IDEAL2:1

As the ideal ratio 2:1 but public sector companies have very low currentratio as they have very little need for current assetsBut liquidity position of the bank is not good. Lesser the current ratio, less

will be the firms ability to meet current obligations.

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Balance Sheet Ratio

Quickratio

2009/2010

9.07

2008/2009

5.74

IDEAL1:1

It is more rigorous and penetrating test of the liquidity position of a firm.1:1 is the satisfactory level to meet all current claims.Banks short term solvency is in better position.

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Profit And Loss Account Ratio

Operating

Ratio

Net Profit

Ratio

=Operating Cost / Net

Sales 100

= Net profit / Net Sales

100

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Profit And Loss Account Ratio

OperatingRatio

2009/2010

27.61

2008/2009

22.91

IDEAL%

Bank operating profit is increasing as compare to previous year. It shows that it would

ensure adequate return to owners in comparison to previous year.

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Profit And Loss Account Ratio

Net ProfitRatio

2009/2010

10.66

2008/2009

11.92

IDEAL%

As the net profit is goes down as compare to last year. It would not insureadequate return to owners as well as it enable the bank to with standadverse economic conditions.

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Combined / Composite Ratios

Earnings per

share

Dividend Per

Share

NPTA pref. Dividend /

no of equity share

Dividend Per Equity

Share / Earning Par

Share

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Combined / Composite Ratios

Earnings

Per Share

Ratio2009/2010

144.37

2008/2009

143.67

It measures the profit available to equity shareholders as par share basis.Bank had good return to the shareholder.

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Combined / Composite Ratios

Dividend

Per Share

Ratio 2009/2010

30.00

2008/2009

29.00

The dividend paid to the shareholders on a per share basis in dividend pershare .Thus dividend par share is the earning distributed to the ordinaryshareholders divided by number of ordinary share outstanding.Bank paid good dividend for both year as par share.

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Ratio Analysis

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Balance Sheet Ratio

CurrentRatio

2009/2010

0.14

2008/2009

0.13

IDEAL2:1

As the ideal ratio 2:1 but private sector companies have very high currentratio.But liquidity position of the bank is not bad. Lesser the current ratio, less

will be the firms ability to meet current obligations.

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Balance Sheet Ratio

Quickratio

2009/2010

14.70

2008/2009

5.94

IDEAL1:1

It is more rigorous and penetrating test of the liquidity position of a firm.1:1 is the satisfactory level to meet all current claims.Banks short term solvency is little in better position.

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Profit And Loss Account Ratio

OperatingRatio

2009/2010

27.61

2008/2009

26.22

IDEAL%

Bank operating profit is increasing as compare to previous year. It shows that it would

ensure adequate return to owners in comparison to previous year.

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Profit And Loss Account Ratio

Net ProfitRatio

2009/2010

20.59

2008/2009

16.00

IDEAL%

As the net profit is increasing as compare to last year. It would insureadequate return to owners as well as it able the bank to with stand adverseeconomic conditions.

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Combined / Composite Ratios

Earnings

Per Share

Ratio2009/2010

36.10

2008/2009

33.76

It measures the profit available to equity shareholders as par share basis.Bank can give satisfactory return to the shareholder.

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Combined / Composite Ratios

Dividend

Per Share

Ratio 2009/2010

12.00

2008/2009

11.00

The dividend paid to the shareholders on a per share basis in dividend pershare .Thus dividend par share is the earning distributed to the ordinaryshareholders divided by number of ordinary share outstanding.

Bank paid satisfactory dividend as par share but still not satisfactory.

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RATIO

STATE BANK OF INDIA ICICI BANK

2009 2010 2009 2010

Current Ratio 0.04 0.04 0.13 0.14

Quick ratio 5.74 9.07 5.94 14.70

Operating Ratio 22.91 27.61 26.22 27.61

Net Profit Ratio 11.92 10.66 16.00 20.59

Earnings Per

Share Ratio

143.67 144.37 33.76 36.10

Dividend Per

Share Ratio

29.00 30.00 11.00 12.00