project study on credit risk management

7/31/2019 Project Study on Credit Risk Management

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CREDIT RISK MANAGEMENT: A

STUDY WITH REFERENCE TO

SOUTH INDIAN BANK LTD

Report of the Project Study submitted in partial fulfilment of the

requirements for the MBA (Full time) Degree of the

Mahatma Gandhi University

Submitted by

YESMITHA A JAIN

Reg. No:

2009-11 Batch

ALBERTIAN INSTITUTE OF MANAGEMENT

(A UNIT OF ST. ALBERTS COLLEGE)

Banerji Road, Cochin-682018.

JUNE 2011


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TABLE OF CONTENTS

ACKNOWLEDGEDECLARATION

Sr. No. Ratio Pg.

No.

1

1.11.2

1.3

1.4

1.5

1.6

1.7

Introduction

Nature of StudyScope of Study

Objective of the study

Sources of data collection

Tools used for Data Collection

Period of Study

Limitations of the study

1

22

3

3

4

4

2

2.1

2.2

2.3

2.4

2.5

2.6

2.7

Industry Profile

Recent Development in Global Banking Industry

Historical Background of Banking in India

Indian Banking Industry

Current Scenario

Highlights of the Banks Performance

Challenges Facing Banking Industry in India

Major Players in Indian Banking Industry

5

6

6

7

3

3.1

Company Profile

Introduction

10

11


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3.2

3.3

3.4

3.5

3.6

3.7

3.8

3.10

3.11

3.123.13

Vision

Mission

Objective

Technology Promotion Drive of South Indian Bank

Milestones

Future Perfect

Awards and Recognition

The Structure of South Indian Bank

Main Objectives and Business of the banks

Various Departments of Bank

Logo and Corporate Colour

12

12

12

12

12

12

13

13

1515

4

4.1

4.2

4.3

4.4

4.5

4.6

4.7

Credit Risk Management

Theoretical Background

Aim of Credit Risk Management

Objective of Credit Risk Management

Measurement of Risk through credit rating/scoring

Committee for Credit Risk Management

Credit Risk Management Department

Methods of Credit Risk

19

5

5.1

5.2

5.3

5.4

5.5

5.4

Analysis and Interpretation

Analysis of Data

Capital Adequacy Ratio

Asset Quality

Earning per Non Performing Assets

Correlation

Analysis of Deposit Mix

20

22

23

24


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6

6.1

6.2

Findings and Suggestions

Findings

Suggestions

41

42

42

7 Conclusion


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LIST OF CHARTS

Sr. No. PARTICULARS Pg.

No.

2.1

3.1

5.1

5.2

5.3

5.4

5.5

5.6

5.7

5.8

5.9

5.10

5.11

5.12

5.13

Indian Top Five Players in Banking

Organization Chart

Capital Adequacy Ratio

Total Advances to total Assets

Total Investments to Assets

Net NPAs to Total Assets

Net NPAs to Total Advances


Correlation between Deposits and Advances

Correlation between Deposits and Net Profit

Correlation between Advances and Net Profit


Percentage of Demand Deposits to Total Deposit

Percentage of Savings Deposits to Total Deposits

Percentages of Term Deposits to Total Deposits

19

22

23

25

26

29

42

47

48

52

53

55

63

65


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LIST OF TABLES

Sr. No. PARTICULARS Pg. No.

5.15.2

5.3

5.4

5.5

5.6

5.7

5.8

5.9

5.10

5.11

5.12

5.13

Capital Adequacy RatioTotal Advances to total Assets

Total Investments to Assets

Net NPAs to Total Assets

Net NPAs to Total Advances


Correlation between Deposits and Advances

Correlation between Deposits and Net Profit

Correlation between Advances and Net Profit


Percentage of Demand Deposits to Total Deposit

Percentage of Savings Deposits to Total Deposits

Percentages of Term Deposits to Total Deposits

1313

14

15


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ACKNOWLEDGEMENT

First of all I express my sincere gratitude to God Almighty for giving me strength and power

to complete my project. I extend my sincere thanks to Prof. George Sleeba, Director,

Albertian Institute of Management, who gave me an opportunity to do an organization study.

I greatly acknowledge my indebtedness to my faculty guide Mrs. Shamsy Sukumaran, Faculty

Lecturer, Albertian Institute of Management, Kochi, for her constant support and timely

suggestions.

I would also thank my Parents and friends whose cooperation, assistance and involvement was

a constant source of inspiration for me.

Yesmitha A Jain


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DECLARATION

I hereby declare that, the Research Project Report entitled Credit Risk Management: A

study with reference to South Indian BankLtd is a record of bona-fide work done by me in

South Indian Bank Ltd from June to August 2011 under the supervision of Mr. John

Abraham, Manager, South Indian Bank Ltd, Ekm and Ms. Indu George, Faculty Lecturer,

Albertian Institute of Management and that no part of this report has formed the basis for

award of any degree, diploma, associateship, fellowship or any other similar title or

recognition in any other institution.

Kochi

10-11-2010 Yesmitha A Jain


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CHAPTER 1INTRODUCTION


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Introduction:

This project study has been undertaken under the Corporate Financial Management

Department and Integrated Risk Management Department to develop an insight in

to the risk management practices of the South Indian Bank Ltd with special

references to Credit Risk Management. The study focuses on the implementation

of tools like Maturity Gap Sensitivity

Scope of the Study

This study covers advance, loans, payables, receivables and income, and risk

management system of South Indian Bank ltd and also an overall aspect of capital

adequacy, Non Performing Asset and Asset quality.

Nature of the Study

A descriptive study is conducted to study the Credit Risk Management ofSouth Indian bank Limited, Ernakulam.


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Objective of the Study

Primary Objectives:

To study the credit risk management operations (assessment & procedures)in South Indian Bank Ltd.

To study different kinds of risks existing in South Indian Bank Ltd.

Secondary Objectives:

To study the effect on risk management in capital adequacy ratio of SouthIndian Bank.

To identify the effect of Basel II norms regarding risk management in banks. To study the impact of asset quality on credit risk management of the bank. To analyze actual credit exposure of the bank.

Sources of data

Data collection from secondary sources

Annual Reports Company Records Data published on websites Journals Websites Manual book of Bank Brochures RBI website


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Tools used for Data Collection

Capital Adequacy Ratio Asset Quality ENPA Correlation Bar diagram Pie-chart

Period of Study

The period of study was completed in the month of June and August, 2011.

Limitation of the Study

Availability of literature is limited. The data for the project is mainlycompiled from the Credit Risk Management Statements of bank.

A comprehensive outlook of Credit Risk Management could be projected. Lack of availability of confidential data

Unavailability of Financial Data restricted to know the financial status of thecompany

Time constraint


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INDUSTRY PROFILE


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BANK

A Bank is a financial institution that serves as a financial intermediary. Banker or

Bank is a financial institution that acts as a payment agent for customers, and

borrows and lends money. Banks act as payment agents by conducting checking or

current accounts for customers, paying cheques drawn by customers on the bank,

and collecting cheques deposited to customers' current accounts. Banks also enable

customer payments via other payment methods such as telegraphic transfer,

Electronic Fund Transfer at Point Of Sales, and automated teller machine (ATM).

BANKING INDUSTRY

The Banking Industry was once a simple and reliable business that took deposits

from investors at a lower interest rate and loaned it out to borrowers at a higher

rate. However deregulation and technology led to a revolution in the Banking

Industry that saw it transformed. Banks have become global industrial

powerhouses that have created ever more complex products that use risk and

securitization in models. Through technology development, banking services have

become available 24 hours a day, 365 days a week, through ATMs, at online

bankings, and in electronically enabled exchanges where everything from stocks to

currency futures contracts can be traded .


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The Banking Industry at its core provides access to credit. In the lenders case,

this includes access to their own savings and investments, and interest payments on

those amounts. In the case of borrowers, it includes access to loans for the

creditworthy, at a competitive interest rate.

Banking services include transactional services, such as verification of account

details, account balance details and the transfer of funds, as well as advisory

services that help individuals and institutions to properly plan and manage their

finances. Online banking channels have become key in the last 10 years. Mortgage

banking has been encompassing for the publicity or promotion of the various

mortgage loans to investors as well as individuals in the mortgage business. Online

banking services has developed the banking practices easier worldwide.

The collapse of the BankingIndustry in the Financial Crisis, however, means that

some of the more extreme risk-taking and complex securitization activities that

banks increasingly engaged in since 2000 will be limited and carefully watched, to

ensure that there is not another banking system meltdown in the future.


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RECENT DEVELOPMENTS IN THE GLOBAL BANKING

INDUSTRY

A total asset of global banking industry is about hundred trillion in US $. Bankingand Insurance industry was affected by financial crisis of 2008. The crisis began

with the collapse of Lehman Brothers in the US, which rapidly spread all over the

world resulting to great economic recession after post war era. The credit crunch

and liquidity situation further worsen the market resulting too volatile market

condition. Government and central banks all over the world took necessary steps to

save global economy and market condition.

Global banking and insuranceindustry is expected to recover rapidly from current

economic recession supported by the growth in emerging market economies. BRIC

nations offer great potential to insurance industry due to their huge population.

Critical to success in the banking and insurance is the knowledge of market trends,

product mix shifts, customer needs and effective market strategies. Our continuous

networking with customers and competitors creates complete visibility thus

helping our customers make confident business decisions.

The global financial crisis will bring about the most significant changes to the

American and European banks have seen in decades. There will be fundamental re-

regulation of the industry, ownership structures are shifting towards heavier state

involvement and investor scrutiny is rising strongly. Equity ratios will be

substantially higher. As a result, growth and profitability of the banking sector as a

whole are likely to decline.


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INDIAN BANKING INDUSTRY

The Indian banking sector has witnessed wide ranging changes under the influence

of the financial sector reforms initiated during the early 1990s. The approach to

such reforms in India has been one of gradual and non-disruptive progress through

a consultative process. The emphasis has been on deregulation and opening up the

banking sector to market forces. The Reserve Bank has been consistently working

towards the establishment of an enabling regulatory framework with prompt and

effective supervision as well as the development of technological and institutional

infrastructure. Persistent efforts have been made towards adoption of international

benchmarks as appropriate to Indian conditions. While certain changes in the legal

infrastructure are yet to be effected, the developments so far have brought the

Indian financial system closer to global standards.


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Historical Background of Banking in India

From the early Vedic period the giving and taking of credit in one form or the

other have existed in Indian Society. The bankers are the pillars of the Indian

society. Early days bankers were called as indigenous bankers. The development

of modern banking has started in India since the days of East India Company.

These banks mostly had no capital of their own and depended entirely on deposits

in India.

Indian banking comprises of players who include public sector banks, State bank

of India and its associates, private sector banks, scheduled banks, cooperative

banks, regional rural banks, foreign banks etc. The banking industry worldwide is

transformed concomitant with a paradigm shift in the Indian economy from

manufacturing sector to nascent service sector. Indian banking as a whole is

undergoing a change. Indian banks have always proved beyond doubt their

adaptability to mould themselves into agile and resilient organizations.

The first bank in India, General Bank of India was established in 1786. From 1786

till today, the journey of Indian banking system can be segregated into three

distinct phases.

They are as follows

Early phase from 1786 to 1969 of Indian Banks.

Nationalization of Indian banks and up to 1991 prior to Indian bankingsector reforms.

New phase of Indian banking system with the advent of Indian Financial &Banking sector Reforms after 1991.


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Journey of Indian Banking system can be segregated into 3 distinct phases:

PHASE I:

1786- The General Bank of India, Bank of Hindustan, Bengal Bank 1809- East India Company established Bank of Bengal 1840- Bank of Bombay 1843- Bank of Madras 1865- Allahabad Bank 1894- Punjab National Bank Ltd. 1906-1913- Bank of India, Central bank of India, Bank of Baroda, Canara

Bank, Indian Bank, Bank of Mysore

1920- Imperial Bank of India 1935- RBI Growth was slow & experienced periodic failures b/w 1913- 1948. Approximately 1,100 banks, mostly small The Banking Companies Act, 1949 Banking Regulation Act, 1949

PHASE II:

Nationalization of Indian banks & up to 1991 prior to Indian Banking sectorreforms.

1955- Nationalized Imperial Bank of India 1960- 7 subsidiaries of SBI nationalized 19th July, 1969- 14 banks nationalized 1980- 7 banks nationalized (80% of banking segmentGov. owned) Nationalization lead to increase in deposits & advances.


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PHASE III:

New phase of Indian Banking system with advent of Indian Financial &Banking Sector Reforms after 1991.

Introduced many products & facilities in banking sector. 1991- Narasimham Committee was setup New phase brought in many changes: Foreign banks ATM stations Customer service Phone banking Net banking


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CURRENT SCENARIO

Business Environment:

The Indian economy is on a growth path with the real GDP growth upwards

of 9%. Industrial and services sectors have accelerated growth while growth

in agricultural sector has continued to remain moderate. Inflation remained

an area of concern. There was however robust build up of foreign exchange

resources - close to $ 200 bn. Stock markets were buoyant while the Indian

Rupee continued to appreciate against US Dollar.

Banking Scenario:

The future of the banking sector appears quite promising though there are

quite a few challenges to contend with. The customer is more discerning andhas a much wider access to technology and knowledge. Hence the

imperative need to roll out innovative customized products which will be the

key differentiator amongst banks. Time and distance have shrunk and the

internet has greatly facilitated global reach and therefore, evolution of

delivery channels and interactive services have been a boon to banking. The

core banking solution platform is being increasingly adopted by the banks to

fully realize the opportunity thrown up by technology.

Unlike the previous year, credit growth of the system was not as profound but quite

robust nonetheless and resources though not really scarce, were a bit expensive.

RBI initiated various measures such as increase of reverse repo rate, higher CRR


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prescriptions etc. which were aimed at moderating credit growth. To certain sector

specific instructions have also been issued by RBI to rein in expansion of Bank

credit to such sectors. All this ushered in a period of increasing cost, declining

yields and consequently pressure on margins. Healthy rebalancing of the credit

portfolio was the answer to this syndrome.


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HIGHLIGHTS OF THE BANKS PERFORMANCE

The year gone by was an exceptional year for the Bank in terms of most

parameters. Net profit surged by 60% from Rs. 701 crores to Rs. 1123 crores andthe global business mix crossed the milestone mark of Rs. 200,000 crores to touch

Rs. 207,000 crores. While deposits grew by 27.6% to Rs. 119882 crores, the share

of low cost deposits hovered at 40% and your bank continues to be one of the few

banks with such a large share of low cost deposits. Credit expansion was a robust

30% touching an aggregate level of Rs.86791 crores. The growth has been quite

broad based encompassing various segments such as agriculture, industry, SME

and retail. Foreign branches accounted for a smart rise of 34% in advances.

Priority Sector not only constitutes the Bank's social commitment, but is

recognized today as a profitable business opportunity. With almost two third

branches in rural and semi urban areas, the bank has ably risen to the occasion.

While agriculture clocked a growth of 25% and constituted 18.5% of net bank

credit, priority sector grew by almost 23% and accounted for 45.5% of net bank

credit. The Bank could for the first time record net NPA below 1%. In fact on the

back of robust cash recoveries of Rs. 752 crores and upgradation of Rs. 132 core,

gross NPA slid by Rs. 379 crores to Rs. 2100 crores. Recoveries together with

prudent provisioning saw Net NPA falling sharply to Rs. 632 crores from Rs. 970

crores resulting in a healthy loan loss coverage ratio.3


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Challenges facing Banking Industry in India

The banking industry in India is undergoing a major transformation due to changes

in economic conditions and continuous deregulation. These multiple changeshappening one after other has a ripple effect on a bank (Refer fig. 2.1) trying to

graduate from completely regulated seller market to completed deregulated

customers market.

Deregulation:This continuous deregulation has made the Banking market extremely

competitive with greater autonomy, operational flexibility and decontrolled

interest rate and liberalized norms for foreign exchange. The deregulation of

the industry coupled with decontrol in interest rates has led to entry of a

number of players in the banking industry. At the same time reduced

corporate credit off take thanks to sluggish economy has resulted in large

number of competitors batting for the same pie.

New rules:As a result, the market place has been redefined with new rules of the game.

Banks are transforming to universal banking, adding new channels with

lucrative pricing and freebees to offer. Natural fall out of this has led to a

series of innovative product offerings catering to various customer segments,

specifically retail credit.


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Efficiency:This in turn has made it necessary to look for efficiencies in the business.

Banks need to access low cost funds and simultaneously improve the

efficiency. The banks are facing pricing pressure, squeeze on spread and

have to give thrust on retail assets.

Diffused Customer loyalty:This will definitely impact Customer preferences, as they are bound to react

to the value added offerings. Customers have become demanding and the

loyalties are diffused. There are multiple choices, the wallet share is reducedper bank with demand on flexibility and customization. Given the relatively

low switching costs; customer retention calls for customized service and

hassle free, flawless service delivery.

Misaligned mindset:These changes are creating challenges, as employees are made to adapt to

changing conditions. There is resistance to change from employees and the

Seller market mindset is yet to be changed coupled with Fear of uncertainty

and Control orientation. Acceptance of technology is slowly creeping in but

the utilization is not maximized.

Competency Gap:Placing the right skill at the right place will determine success. The

competency gap needs to be addressed simultaneously otherwise there will

be missed opportunities. The focus of people will be on doing work but not

providing solutions, on escalating problems rather than solving them and on

disposing customers instead of using the opportunity to cross sell.


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Strategic options with banks to cope with the challenges

Leading players in the industry have embarked on a series of strategic and tactical

initiatives to sustain leadership. The major initiatives include:

Investing in state of the art technology as the back bone to ensure reliableservice delivery

Leveraging the branch network and sales structure to mobilize low costcurrent and savings deposits

Making aggressive forays in the retail advances segment of home andpersonal loans

Implementing organization wide initiatives involving people, process andtechnology to reduce the fixed costs and cost per transaction

Focusing on fee based income to compensate for squeezed spread, (e.g.CMS, trade services)

Innovating Products to capture customer mind share to begin with and laterthe wallet share

Improving the asset quality as per Base II norms

In this era of increasing competition, banks will have to benchmark themselves

against the best in the world. For a resilient and strong banking and financial

system, the banks need to tackle issues like increase in profitability, efficiency, andproductivity while achieving economies of scale through consolidation and

exploring available cost-effective solutions.


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Major Players in the Indian Banking Industry:

Indian banking has grown much stronger than its Asian counterparts in recent

years, in terms of both performance indices and product range. The continuedderegulation of deposits and interest on loans have led to a greater understanding

of capital structure, increased competition and autonomy, as well as technological

upgradation.

56 of Indias domestic banks account for 95% of assets. In terms of net profit, the

State Bank of India is the main bank followed by ICICI bank, Punjab National

bank and Canara Bank(Figure 7.30) .

Fig: 2.1 Indian Top Five Player in Banking
http://www.checkonomics.com/http://www.checkonomics.com/http://www.checkonomics.com/http://www.checkonomics.com/


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COMPANY PROFILE


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SOUTH INDIAN BANK

One of the earliest banks in South India, "South Indian Bank" came into being

during the Swadeshi movement. The establishment of the bank was the fulfillment

of the dreams of a group of enterprising men who joined together at Thrissur, a

major town (now known as the Cultural Capital of Kerala), in the erstwhile State of

Cochin to provide for the people a safe, efficient and service oriented repository of

savings of the community on one hand and to free the business community from

the clutches of greedy money lenders on the other by providing need based credit

at reasonable rates of interest.

Translating the vision of the founding fathers as its corporate mission, the bank has

during its long sojourn been able to project itself as a vibrant, fast growing, service

oriented and trend setting financial intermediary.

Vision

To emerge as the most preferred bank in the country in terms of brand, values,

principles with core competence in fostering customer aspirations, to build high

quality assets leveraging on the strong and vibrant technology platform in pursuit

of excellence and customer delight and to become a major contributor to the stable

economic growth of the nation.

MissionTo provide a secure, agile, dynamic and conducive banking environment to

customers with commitment to values and unshaken confidence, deploying the best

technology, standards, processes and procedures where customer convenience is of

significant importance and to increase the stakeholders value.


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Objectives

To provide a secure, agile, dynamic and conducive banking environment tocustomers

To provide best technology To provide standards, processes and procedures where customer convenience

is of significant importance and to increase the stakeholders value

The Banks shares are listed on

The Cochin Stock Exchange Ltd (CSE) The Stock Exchange Mumbai (BSE)

The National Stock Exchange of India Ltd Mumbai (NSE)

Technology Promotion Drive of South Indian Bank

Our bank had embarked upon a massive technology up gradation drive by

introduction of a Centralized Core banking solution. For this a modern Data Center

has been set up at Kochi, connecting all branches with all the Departments at Head

Office, all Regional Offices, the Treasury Dept at Mumbai and the IBD at Kochi.

This robust network facilitates anywhere banking, Networked ATMs, Internet

Banking, Mobile Banking, Global debit cum ATM card operations, Online trading,

online shopping etc. The Sibertech project was launched with a target of

connecting the 200 odd branches in two phases by March 2004. Towards this

endeavor, the bank has concluded a technology partnership with M/s Infosys

Technologies Ltd for Finacle, the Core Banking Solution, M/s HCL Infosystems


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Ltd. for Network Integration and M/s WIPRO for Data Centre set up and

Maintenance. The Sibertech Project was formally launched on January 17,2001 by

Sri.N.R.Narayana Murthy, Chief Mentor, Infosys Technologies Ltd in a colorful

function at Kochi.

The state of the art Data Center of international standards at Kochi, is the only one

of its kind in the banking industry in Kerala. A number of dignitaries have visited

this Data Center, including Sri.Azim.H.Premji, Chairman & Managing Director,

Wipro Ltd.

Per se bank has achieved 100% Core Banking Solutions by 24th March,

2007.Further to strengthen the ATM reach and global acceptability Bank has

introduced Master Card Global Debit- cum- ATM card, which can be used at

ATMs and merchandise all over the world. We have launched internet banking

primarily focusing the individual as well as corporate clients. The Bank has also

introduced Mobile banking for customers as a value addition.

The aim of the Bank is to offer the latest technology driven value added services to

the customers without compromising our motto - Blending Tradition with

Technology.

Milestones

The FIRST among the private sector banks in Kerala to become a scheduled bankin 1946 under the RBI Act.

The FIRST bank in the private sector in India to open a Currency Chest on behalfof the RBI in April 1992.

The FIRST private sector bank to open a NRI branch in November 1992.


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The FIRST bank in the private sector to start an Industrial Finance Branch inMarch 1993.

The FIRST among the private sector banks in Kerala to open an "OverseasBranch" to cater exclusively to the export and import business in June 1993.

The FIRST bank in Kerala to develop an in-house, a fully integrated branchautomation software in addition to the in-house partial automation solution

operational since 1992.

The FIRST Kerala based bank to implement Core Banking System. The THIRD largest branch network among Private Sector banks, in India, with

all its branches under Core banking System.

Future Perfect

The South Indian Bank with a new logo and image, marches on. With branches all

over India and a clientele across the world, the bank is considered one of the most

pro active banks in India with a competent tech savvy team of professional at thecore of services.


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Awards and Recognition

South Indian Bank has bagged the Businessworld Indias Best Bank 2010Award

South Indian Bank has also bagged the best web site award from KeralaManagement Association.

receives the award for the Best Bank in the old generation banks category receives the award for the best bank in asset quality among all private sector

banks in India

South Indian Bank (SIB) bagged the best Asian Banking Web Site awardfrom the Charlton Media Group, Singapore under the banner Asian

Banking & Finance Retail Banking Awards-2008. Among the 100+

nominations for the Best Web Site category from various banks in Asia, SIB

emerged victorious to receive this award as the owner of the Best Web Site

South Indian Bank has won a special award for excellence in BankingTechnology from IDRBT (Institute for Development and Research in

Banking Technology)the technical arm of the Reserve Bank of India. This

award was presented to our Bank as a national level recognition to the

excellent contribution made in the area of Information Systems Security

Policies and Procedures. Competing against top level banks in India across

all categories such as Public Sector Banks, Private Sector Banks, Foreign

Banks and Co-operative Banks, the recognition from IDRBT is really a

feather in the cap.

In the ASSOCHAM-ECO PULSE study, the bank had been rated as aTop NPA Manager for having reduced Net NPA substantially within one

year


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The Structure of South Indian Bank

The structure of South Indian a bank is Head Office, Regional Office, Branch

Office, Extension Counters and ATM Counters.

Head Office:South Indian Banks functions are controlled and co-ordinated by the Head

office. The Head Office of South Indian Bank is in Trichur, Kerala. It

controls the activities of regional offices and branch offices. All most all the

departments are there in the Head Office. Every decision is taken here. Since

all the departments are there in the Head Office, every function is done here.

The main functions of Head office are given below. It controls all the

activities of bank: The managing Directors Secretariat is there in the head

office. So all most all the decisions pertaining to the smooth administration

of the bank is taken here. It checks all the accounts of different Regional

Offices and Branch Offices through its accounts departments. Strong and

sound DICT is there to make proper communication. It deals with all the

legal issues of the bank through the legal departments. It checks the NRI

account portfolio through its NRI division. It checks and reviews the

customer relationship management.

Regional Office:To make the administration and functions easier, Regional Offices are set upfor each region. It acts as a link between branches and head office. In each

region, certain number of branches and extension counters are there.

Administration is very difficult according to the increase of the branches.

Regional office makes the function of head office lesser through its co


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responsibility. The Regional Offices of South Indian Bank is given below:

Bangalore, Chennai, Coimbatore, Delhi, Ernakulum, Hyderabad, Kolkata,

Kottayam, Kozhikode, Mumbai, Pathanamthitta, Palakad, Trivandrum,

Trichur, and Madurai.

Branch Office:There are 580 branches for South Indian Bank. They come under specific

Regional office. To make personal contact with the customers, branches are

very useful. In branch offices, we cant see all the departments. But every

function of the bank such as accepting deposits, issuing loan and clearing isthere. Job rotation is there in branch offices.

Extension Counter:It is same as branch. It also has the similar functions of branches except

issuing of loans. As of now, there are only three extension counters are

there. It is the preceding stage to make a branch.

ATM Counters:The main purpose of the bank is to reduce the burden of the customer. So the

banks have opened ATM Counters at different places to avoid the wastage

of time and different formalities. South Indian Bank has set up 375 ATM

Counters all over India. South Indian Banks Global ATM-Cum-Debit Cards

are now acceptable in the Master Card International Network System as well

as in the domestic National Financial Switch (NFS) Network System owned

by IDRBT, the technical arm of RBI. Provide on-line access to Savings

Bank or Current accounts of South Indian Bank. Tied up with the world-

renowned service provider, MasterCard International; can be used in 8,


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30,000 ATMs & 7 million Point of Sale (POS) terminals worldwide. South

Indian Bank being a member of NFS network, South Indian Bank cards are

acceptable in other member banks ATMs. It can be used in 31000+ ATMs in

India. The Maestro Debit card is a PIN based card and operates similar to

ATM making it 100% secure, even in POS terminals. Global Cards are

issued free of cost to the customers of South Indian Bank. Nominal fee is

charged to the users at other Banks ATMs. Cash withdrawal limits through

ATMs is up to Rs.20, 000/- per day.


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ORGANIZATION CHART


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MAIN OBJECTIVES AND BUSINESS OF THE BANK

1. To establish and carry on the business of banking al registered office of thecompany and at such branches

2. Carrying on the business of accepting deposit of money on current accountand to carry on the business of banking

3. The borrowing, raising or taking up money, the lending or advancing ofmoney either upon or without security, the drawing, making, accepting,

discounting, buying, selling, collecting and dealing in the Bill of exchange,promissory notes, coupons and other instruments and securities, the buying,

selling and dealing in bullion and foreign exchange, dealing in other

instruments like share, bond, etc.

4. Contracting for public and private loans and negotiating the issuing it5. Acts as the agent of the Government or local authorities or any other than

the business of managing agent.

6. Carrying out all such things as are incidental or conductive to te promotionor advancement of the business of the company

7. To undertake and carry on all other forms of business as may be permissiblefor banking company

From the modest beginning of the bank in 1929, today the bank has reached to the

status of one of the most performing private sector banks in the country working

through network of 584 branches. Just like any other bank, reforms made its

impacts on South Indian Bank also.

There are a number of departments functioning in the working of the bank. Every

department is having its own functional areas, powers and responsibilities.


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The Various Departments Include:

Human Resource Development Department Training and Development Department Support Service Department Corporate Financial Management Department Integrated Risk Management Department Computer Department Secretarial Department Credit Control Department Inspectiogn Department & Vigilance Department Accounts Department Marketing Department Legal Department

Logo and Corporate colour

New logo and corporate colour of the bank was launched in 5 thMarch, 2007. The

new logo should pronounce the birth of next generation bank and the corporate

colour should match bank work to the stake holders and services to bank

customers.

S projects a Safe, Solid, Smart, Strong, Secular, Shinning, Schooled, Seasoned,

and Straight forward bank, Cardinal Red represents Energy, Creativity, Warmth,

and Love.


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The credit rating system is essentially one point indicator of an individual credit

exposure and is used to identify, measure, and monitor the credit risk of individual

proposal. At the whole bank level, credit rating system enables tracking the health

of banks entire credit portfolio.

Most banks in India have put in place the system of internal credit rating. While

most of the banks have developed their own models, a few banks have adopted

credit rating models designed by rating agencies. Credit rating models take into

account various types of risks viz. financial, industry and management, etc

associated with a borrowal unit. The exercise is generally done at the time of

sanction of new borrowal account and at the time of review/renewal of exercising

credit facilities.


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CREDIT RISK

MANAGEMENT


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THEORITICAL BACKGROUND

In course of banks lending involves a number of risks. In addition to the risks

related to creditworthiness of the counterparty, the banks are also exposed to

interest rate, forex and country risks.

Unlike market risks, where the measurement, monitoring, control etc. are to a great

extent centralized. Credit risks management is a decentralized function or activity.

This is to say that credit risk taking activity is spread across the length and breadth

of the network of branches, as lending is a decentralized function. Proper a

sufficient care has to be taken for appropriate management of credit risk.

Credit risk is an investor's risk of loss arising from a borrower who does not make

payments as promised. Such an event is called a default. Another term for credit

risk is default risk.

Credit risk or default risk involves inability or unwillingness of a customer or

counterparty to meet commitments in relation to lending, trading, hedging,

settlement and other financial transactions.

Definition:

Credit Riskmay be defined as, the risk of default on the part of the borrower.

The lender always faces the risk of the counter party not repaying the loan or not

making the due payment in time. This uncertainty of repayment by the borrower is

also known as default risk.
http://en.wikipedia.org/wiki/Default_(finance)http://en.wikipedia.org/wiki/Default_(finance)


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Aim of CRM:

The main aim of CRM is to maximize a bank's risk-adjusted rate of return by

maintaining credit risk exposure within acceptable parameters.

Objective of CRM:

The objective of credit risk management is to minimize the risk and maximize

banks risk adjusted rate of return by assuming and maintaining credit exposure

within the acceptable parameters.

The Credit Risk is generally made up of:-

1. Transaction risk or default risk, and

2. Portfolio risk.

The portfolio risk in turn comprises intrinsic and concentration risk.

The credit risk of abanks portfolio depends on:-

1. External factors: The external factors are the state of the economy, rates and

interest rates, trade restrictions, economic sanctions, wide swings in

commodity/equity prices, foreign exchange rates and interest rates, trade

restrictions, economic sanctions, Government policies, etc.

2. Internal factors: The internal factors are deficiencies in absence of prudential

credit concentration limits, loan policies/administration, inadequately defined

lending limits for Loan Officers/Credit Committees, deficiencies in appraisal of

borrowers financial position, excessive dependence on collaterals and inadequate

risk pricing, absence of loan review mechanism and post sanction surveillance, etc.


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Another variant of credit risk is counterparty risk. The counterparty risk arises

from non-performance of the trading partners. The non-performance may arise

from counterpartys refusal/inability to perform due to adverse price movements or

from external constraints that were not anticipated by the principal. The

counterparty risk is generally viewed as a transient financial risk associated with

trading rather than standard credit risk.

The management of credit risk should receive the top managements attention and

the process should encompass:

Measurement of risk through credit rating/scoring:

(a) Quantifying the risk through estimating expected loan losses i.e. the amount of

loan losses that bank would experience over a chosen time horizon (through

tracking portfolio behavior over 5 or more years) and unexpected loss (through

standard deviation of losses or the difference between expected loan losses and

some selected target credit loss quantile);

(b) Risk pricing on a scientific basis; and

(c) Controlling the risk through effective Loan Review Mechanism and portfolio

management.


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Committee for CRM:

The credit risk management process should be articulated in the banks Loan

Policy, duly approved by the Board. Each bank should constitute a high

level Credit Policy Committee, also called Credit Risk Management

Committee or Credit Control Committee etc. to deal with issues relating to

credit policy and procedures and to analyze, manage and control credit risk on a

bank wide basis.

The Committee should be headed by the Chairman/CEO/ED, and should comprise

heads of Credit Department, Treasury, Credit Risk Management Department

(CRMD) and the Chief Economist.

The Committee should, inter alia, formulate clear policies on standards for

presentation of credit proposals, financial covenants, rating standards and

benchmarks, delegation of credit approving powers, prudential limits on largecredit exposures, asset concentrations, standards for loan collateral, portfolio

management, loan review mechanism, risk concentrations, risk monitoring and

evaluation, pricing of loans, provisioning, regulatory/legal compliance, etc.


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Credit Risk Management Department (CRMD)

Concurrently, each bank should also set up Credit Risk Management

Department (CRMD), independent of the Credit Administration Department. The

CRMD should enforce and monitor compliance of the risk parameters and

prudential limits set by the CPC. The CRMD should also lay down risk assessment

systems, monitor quality of loan portfolio, identify problems and correct

deficiencies, develop MIS and undertake loan review/audit.

Large banks may consider separate set up for loan review/audit. The CRMD

should also be made accountable for protecting the quality of the entire loan

portfolio. The Department should undertake portfolio evaluations and conduct

comprehensive studies on the environment to test the resilience of the loan

portfolio.

The effective management of credit risk is essential to the long-term success of anybanking organization.


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Methods of Credit Risk:

Some of the commonly used methods to measure credit risk are:

1. Ratio of non performing advances to total advances;2. Ratio of loan losses to bad debt reserves;3. Ratio of loan losses to capital and reserves;4. Ratio of loan loss provisions to impaired credit;5. Ratio of bad debt provision to total income; etc.Managing credit risk has been a problem for the banks for centuries. As had been

observed by John Medlin, 1985 issue of US banker.

Balancing the risk equation is one of the most difficult aspects of banking. If you

lend too liberally, you get into trouble. If you dont lend liberally you get

criticized.

Over the tears, bankers have developed various methods for containing credit risk.

The credit policy of the banks generally prescribes the criteria on which the bank

extends credit and, inter alia, provides for standards.


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ANALYSIS &

INTERPRETATION


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Analysis of Data

1) CAPITAL ADEQUACY RATIO

Capital adequacy ratios (CAR) are a measure of the amount of a bank's core

capital expressed as a percentage of its risk-weighted asset.

Capital adequacy ratio is the ratio which determines the bank's capacity to meet the

time liabilities and other risks such as credit risk, operational risk, etc. In the most

simple formulation, a bank's capital is the "cushion" for potential losses, and

protects the bank's depositors and other lenders. Banking regulators in most

countries define and monitor CAR to protect depositors, thereby maintaining

confidence in the banking system.

CAR can be viewed from two aspects:

a) Total advancement to total assetsb) Total investment to total assets

Capital Adequacy Ratio is defined as,

CAR = CapitalRisk Weighted Assets


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Table No:5.1Capital Adequacy Ratio

YEAR 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

BASEL I 11.08 13.8 13.89 14.73 13.17

BASEL II 14.76 15.39 14.01

Interpretation: The CRAR has declined to 13.17 in 2010-11 which was 14.73 in

2009-10. Thus, it is showing slight inefficient management of credit risk as per

Basel norms.

Chart No:5.1 Capital Adequacy Ratio

0

2

4

6

8

10

12

14

16

18

2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

BASEL IBASEL II


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a)Total Advances to Total AssetsTable No:5.2 Total Advances to total assets

(Crore)

Year Advances Assets Ratio

2006-2007 7,919 13,653 0.58

2007-2008 10,454 17,090 0.61

2008-2009 11,848 20,379 0.58

2009-2010 15,823 25,534 0.62

2010-2011 20,489 32,820 0.62

Interpretation: The ratio is showing an increasing trend at 0.62 in 2010-11 which

implies proper balancing of advances & assets.

Chart No:5.2 Total Advances to total assets

0.58

0.61

0.58

0.62 0.62

0.55

0.56

0.57

0.58

0.59

0.6

0.61

0.62

0.63

2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

Ratio

Ratio


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b)Total Investment to AssetsTable No:5.3 Total Investments to Assets

(Crore)

Year Investment Assets Ratio

2006-2007 3430 13,653 0.25

2007-2008 4572 17,090 0.27

2008-2009 6075 20,379 0.3

2009-2010 7156 25,534 0.28

2010-2011 8924 32,820 0.27

Interpretation: The ratio is showed an increasing trend till from 2006-07 to 2008-

09 and from 2009-10 it decreased; it shows inefficiency in maintenance of

investments & assets

Chart No: 5.3: Total Investments to Assets

0.250.27

0.30.28 0.27

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

Ratio

Ratio


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2)ASSET QUALITY

Asset quality is related to the left-hand side of the bank balance sheet. Bank

managers are concerned with the quality of their loans since that provides

earnings for the bank. Loan quality and asset quality are two terms with

basically the same meaning. Government bonds and T-bills are considered as

good quality loans whereas junk bonds, corporate credits to low credit score

firms etc. are bad quality loans. A bad quality loan has a higher probability of

becoming a non-performing loan with no return.

This can be calculated using two ratios:

a)Net NPAs to total assets, andb)Net NPs to total advances.


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a)Net NPAs to Total AssetsThis ratio helps in identifying the quality of the asset of the bank. It can be

calculated by dividing Net NPA by Total assets. Lesser the ratio shows the

good quality of the asset.

Table No:5.4:Net NPAs to Total Assets

(Crore)

Year Net NPA Total Assets Percentage

2006-2007 77.81 13,653 0.56

2007-2008 33.97 17,090 0.19

2008-2009 134.31 20,379 0.66

2009-2010 61.57 25,534 0.24

2010-2011 60.02 32,820 0.18

Interpretation: The percentage of Net NPA to Total assets has decreased to 0.18%

during 2010-11. This indicates a sound asset quality.

Chart No:5.4:Net NPAs to Total Assets

0.56

0.19

0.66

0.24

0.18

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

Percentage

Percentage


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b)Net NPAs to Total AdvancesNet NPA shows the level of net NPA on net advances given by the bank. It

can be calculated by dividing net NPA by net advances. Higher the ratio

more will be the alarming situation for the bank and vice-versa.

Table No:5.5: Net NPAs to Total Advances

(Crore)

Year Net NPA Advances Percentage

2006-2007 77.81 7,919 0.98

2007-2008 33.97 10,454 0.32

2008-2009 134.31 11,848 1.13

2009-2010 61.57 15,823 0.39

2010-2011 60.02 20,489 0.29

Interpretation: The percentage is showing an decreasing trend from the period

2008-2009 to 2010-11, 0.29% due to good management.

Chart No: 5.5: Net NPAs to Total Advances

0.98

0.32

1.13

0.39

0.29

0

0.2

0.4

0.6

0.8

1

1.2

2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

Percentage

Percentage


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3)EARNING PER NON PERFORMING ASSETSAn NPA is defined as a loan asset, which has ceased to generate any income for

a bank whether in the form of interest or principal repayment.

Exposure to Credit Risk

The bank can quantify the credit risk on the basis of the level of NPAs. Thefollowing expression quantifies the credit risk of the bank.

Earning per Non Performing Asset ( ENPA) can be calculated using the following

formulae:

ENPA = (EBT/TA) / (NPAs/ TA)

ENPA- Earning per Non Performing Assets

NPANon Performning Assets

TA - Total Assets

EBTEarnings before tax


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Credit Risk ratio of South Indian Bank

Table No:5.6: Earning per Non Performing Assets

(Crore)

Year EBT TA NPA ENPA

2006-2007 160.33 13,653 77.81 2.2

2007-2008 246.95 17,090 33.97 7

2008-2009 303.23 20,379 134.31 2.14

2009-2010 381.32 25,534 61.57 7.2

2010-2011 467.05 32,820 60.02 7

Interpretation: The ENPA during 2010-11 has come down to 7 from 7.2

Chart No:5.6: Earning per Non Performing Assets

2.2

7

2.14

7.2 7

0

1

2

3

4

5

6

7

8

2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

ENPA

ENPA


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4)CORRELATIONCorrelation refers to any of a broad class of statistical relationships involving

dependence. The correlation coefficient is a measure of linear association

between two variables. Use the Correlation transformer to determine the

extent to which changes in the value of an attribute (such as length of

employment) are associated with changes in another attribute (such as

salary).

Following are some of the correlation analysis made:

a) Correlation between deposits and advances:It shows the relationship between deposits and advances in the bank over a

period of time.

b)Correlation between deposits and net profit:It shows the relationship between deposits and net profit in the bank over a

period of time.

c) Correlation between net profit and advances:It shows the relationship between net profit and advances in the bank over a

period of time.


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a)Correlation between Deposits and Advances

Table No: 5.7: Correlation between Deposits and Advances

(Crore)

Year Deposits Advances

2006-2007 12240 7,919

2007-2008 15156 10,454

2008-2009 18093 11,848

2009-2010 23011 15,823

2010-2011 29720 20,489

Interpretation: The deposits have increased over the years thus leading to an

increase in the advances.

Chart No: 5.7: Correlation between Deposits and Advances

12240

15156

18093

23011

29720

7,919

10,45411,848

15,823

20,489

0

5000

10000

15000

20000

25000

30000

35000

2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

Deposits

Advances


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b)Correlation between Deposits and Net ProfitTable No:5.8: Correlation between Deposits and Net Profit

(Crore)

Year Deposits Net Profit

2006-2007 12240 104.12

2007-2008 15156 151.62

2008-2009 18093 194.75

2009-2010 23011 233.76

2010-2011 29720 292.56

Interpretation: Increase in deposits has also lead to an increase in the Net profit

during 2010-11.

Chart No:5.8: Correlation between Deposits and Net Profit

12240

15156

18093

23011

29720

104.12 151.62 194.75 233.76 292.56

0

5000

10000

15000

20000

25000

30000

35000

2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

Deposits

Net Profit


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c)Correlation between Advances and Net ProfitTable No:5.9:Correlation between Advances and Net Profit

Interpretation: The Net profit has increased to 292.56 in 2010-11 while it was

only 104.12 in 2006-07.

Chart No:5.9: Correlation between Advances and Net Profit

7,919

10,454

11,848

15,823

20,489

104.12 151.62 194.75 233.76 292.56

0

2,500

5,000

7,500

10,000

12,500

15,000

17,500

20,000

22,500

2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

Advances

Net profit

Year Advances Net profit

2006-2007 7,919 104.12

2007-2008 10,454 151.62

2008-2009 11,848 194.75

2009-2010 15,823 233.76

2010-2011 20,489 292.56


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5)Analysis of Deposit Mix

Table No:5:10: Analysis of Deposit Mix

(Crore)

Year

Demand

deposits

Savings

deposit Term deposits

Total

deposits

2006-2007 619 2311 9310 12240

2007-2008 773 2876 11507 15156

2008-2009 846 3460 13787 18093

2009-2010 1052 4271 17688 23011

2010-2011 1201 5203 23316 29720

Chart No: 5:10: Analysis of Deposit Mix

0

5000

10000

15000

20000

25000

30000

35000

Demand deposits

Savings deposit

Term deposits

Total deposits


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c)Percentages of Term Deposits to Total DepositsTable No: 5.13: Percentages of Term Deposits to Total Deposits

(Crore)

Year

Term

deposit total deposit

% of total

deposit

2006-2007 9310 12240 76.06

2007-2008 11507 15156 75.92

2008-2009 13787 18093 76.2

2009-2010 17688 23011 76.872010-2011 23316 29720 78.45

Interpretation: The proportion is showing a consistent relation from 2006-07

from 76.06 to 2010-11 78.45.

Chart No:5.13: Percentages of Term Deposits to Total Deposits

76.06 75.9276.2

76.87

78.45

74.575

75.5

76

76.5

77

77.5

78

78.5

79

% of total deposit

% to total deposit


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FINDINGS &

SUGGESTIONS


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FINDINGS

The CRAR has declined to 13.17 in 2010-11 which was 14.73 in 2009-10.Thus, it is showing slight inefficient management of credit risk as per Basel

norms.

The ratio is showing an increasing trend at 0.62 in 2010-11 which impliesproper balancing of advances & assets.

The ratio is showed an increasing trend till from 2006-07 to 2008-09 andfrom 2009-10 it decreased; it shows inefficiency in maintenance of

investments & assets

The percentage of Net NPA to Total assets has decreased to 0.18% during2010-11. This indicates a sound asset quality.

The percentage is showing a decreasing trend from the period 2008-2009 to2010-11, 0.29% due to good management.

The ENPA during 2010-11 has come down to 7 from 7.2 The deposits have increased over the years thus leading to an increase in the

advances.

Increase in deposits has also lead to an increase in the Net profit during2010-11.

The Net profit has increased to 292.56 in 2010-11 while it was only 104.12in 2006-07.

The percentage of demand deposits to total deposits was 5.06% in 2006-07& is 4.04% in 2010-11, which is shows an decreasing trend in percentage

The percentageof savings deposits to total deposit was 18.88% in 2006-07& has increased to 19.12 in 2008-09.and later during 2009-10 to 2010-2011

it has decreased.


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The percentage of term deposits to total deposits is showing a consistentrelation from 2006-07 to 2010-11 from 76.06 to 78.45.

SUGGESTIONS

Bank should establish a system that helps identify problem loan ahead oftime when there may be more options available for remedial measures.

Banks should disclose to the public, information on the level of risk andpolicies for risk management.

Bank should take measures to improve its asset quality, so that the credit riskcan be minimized.

The bank must put maximum effort to attract the fixed deposits whichcontribute significantly towards the enhancement of banks profitability.

The bank should maintain a good proportion in their deposits and advances.


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CONCLUSION


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CONCLUSION

The South Indian Bank with a new logo and image marches on. With branches all

over India and a clientele across the world, the bank is considered one of the most

pro active banks in India with a competent tech savvy team of professional at the

core of services. In 2009-10 South Indian Bank could present an outstanding

performance which was beyond market expectations despite the challenging

economic scenario where the bank operates. South Indian Bank, the bank that

focuses on technology and service delivery, has always come up with innovative

banking products to meet the growing demands of the customers.

Largely concentrated in the semi-urban areas of the Southern states of India, SIB's

profitable, cost-efficient and technologically up-to-date network constitutes a

reasonably attractive stand alone franchise. The Bank's Deposit franchise includes

a niche NRI customer base that contributes a meaningful 17% of deposits and

gives it a distinguishing cost advantage over several of its peers. At the same time,

the Bank is trading at the cheapest valuations among peers.

Even though, the banking sector all over the world has been affected by the

recession due to the global meltdown in economy, especially the US banking

system, South Indian Bank proved its competence not only in terms of increased

profit but also in providing boundless customer service. Among so many players

and competitive products, South Indian Bank could maintain its premier and

prestigious position only with the support of the customers. This show how bank

functions and how the bank fulfills its mission and mission.


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AnnexureII BALANCE SHEET

BALANCE SHEET OF SOUTH INDIAN BANK LTD.

Mar 2011Rs. Cr

Mar 2010Rs. Cr

Mar 2009Rs. Cr

Mar 2008Rs. Cr

Mar 2007Rs. Cr

SOURCES OF FUNDS :

Capital 113.01 113.01 90.41 70.41

Reserves Total 1372.28 1191.00 1070.58 653.55

Equity Share Warrants 0.00 0.00 0.00 0.00

Equity Application Money 0.00 0.00 0.00 0.00

Deposits 23011.52 18092.33 15156.12 12239.21

Borrowings 330.96 412.01 27.58 32.51

Other Liabilities & Provisions 706.27 571.06 745.24 656.90

TOTAL LIABILITIES 25534.04 20379.41 17089.93 13652.58

APPLICATION OF FUNDS :

Cash & Balances with RBI 1390.94 997.74 973.65 699.67

Balances with Banks & moneyat Call

596.73 1038.13 729.00 1245.81

Investments 7155.61 6075.20 4572.23 3430.13

Advances 15822.92 11847.91 10453.75 7918.91

Fixed Assets 152.54 136.32 112.75 89.59

Other Assets 415.30 284.11 248.55 268.47Miscellaneous Expenditure notwritten off

0.00 0.00 0.00 0.00

TOTAL ASSETS 25534.04 20379.41 17089.93 13652.58

Contingent Liability 2729.74 2194.05 2105.35 1640.58

Bills for collection 257.46 222.29 181.85 168.15

project study on credit risk management

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