SUMMER TRAINING PROJECT REPORT

ON
FINANCIAL ANALYSIS OF INDUSIND BANK

Under the guidance of

MR. AJAY MISHRA
TREASURY, FOREX & DERIVATES SALES
INDUSIND BANK

Submitted in partial fulfillment for the award of

Degree of Master of Business Administration
From Dr. A.P.J. Abdul Kalam Technical University,
Lucknow

BY
SHUBHRA SHAHI
ROLL NO : 1712470147

INSTITUTE OF CO-OPERATIVE & CORPORATE

MANAGEMENT, RESEARCH AND TRAINING
21/467, RING ROAD, INDIRA NAGAR, LUCKNOW-226016

pg. 1
 DECLARATION

I, SHUBHRA SHAHI, a student of Master of Business Administration (MBA)

Programme at the Institute of Co- operative & Corporate Management Research and
Training, Lucknow hereby declare that all the information, facts and figures used in this
research project titled “FINANCIAL ANALYSIS OF INDUSIND BANK” have been
collected by me. I also declare that this project report has been prepared by me and the
same has never been submitted by the undersigned either in part or in full to any other
University or Institute or published earlier. I confirm that this project report is my own
original work and that I have not copied anything from other published or unpublished
work without their permission.

This information is true to the best of my knowledge and belief.

SHUBHRA SHAHI
1712470147

pg. 2
 ACKNOWLEDGEMENT

I would like to thank to all faculty members of Institute of co- operative & corporate

management, research and training.

I would also like to thanks to my parents and friends for their support. And lastly, I would

like to express my gratefulness to the lord almighty for With regard to my summer

project with “FINANCIAL ANALYSIS OF INDUSIND BANK” , I would like to thank

each and every one who offered help, guideline and support whenever I required.

First and foremost I would like to express my gratitude to MR. AJAY MISHRA and

other Staff of Indusind bank for their support and guidance in my project work.

I extend my sincere gratitude to the following persons of “ Treasury , Forex & derivatives

sales team” at Indusind bank where I have completed my research project work.

I am extremely grateful to my director sir MR RAJEEV YADAV, Principal sir

DR. JABIR ALI and college mentor, MRS.KIRTI VERMA for their valuable guidance

and timely suggestions.

I would like to thank to all faculty members of Institute of co- operative & corporate

management, research and training.

I would also like to thanks to my parents and friends for their support. And lastly, I would

like to express my gratefulness to the lord almighty for seeing me through it all.

pg. 3
 PREFACE
A professional course like business management demands in depth theoretical
knowledge and practical exposure to its realistic application. For the same purpose , the
course designs two months training. The course aims to groom the students
professionally and offer him / her a chance to work in corporate world, so as to have an
opportunity to gain experience on practical aspects and supplement his/ her theoretical
knowledge.
In any organization, the two important financial statements are the Balance Sheet and
Profit & Loss Account of the business. Balance Sheet is a statement of financial position
of an enterprise at a particular point of time. Profit & Loss account shows the net profit
or net loss of a company for a specified period of time. When these statements of the last
few year of any organization are studied and analyzed, significant conclusions may be
arrived regarding the changes in the financial position, the important policies follow
trends in profit and loss etc.

Analysis and interpretation of financial statement has now become an important

technique of credit appraisal. The investors, financial experts, management executives
and the bankers all analyze these statements. Through the basic technique of appraisal
remains the same in all the cases but the approach and theemphasis in the analysis vary.
A banker interprets the financial statement so as to evaluate the financial soundness and
stability, the liquidity position and the profitability or the earning capacity of
borrowing concern. Analysis of financial statements is necessary because it helps in
depicting the financial position on the basis of past and current records. Analysis of
financial statements helps in making the future decisions and strategies.

Therefore it is very necessary for every organization whether it is a financial

or manufacturing, to make financial statement and to analyze it…..

pg. 4
 Table of Contents

SERIAL CONTENT PAGE

NO. NUMBER

Declaration (a)

Acknowledgement (b)

Preface (c)

1. INDUSTRY PROFILE 7-19

2. COMPANY PROFILE 20-43

3. INTRODUCTION OF THE TOPIC

44-56

4. OBJECTIVES OF STUDY 57

RESEARCH METHODOLOGY
58
-
5. • RESEARCH DESIGN 63

• SAMPLE DESIGN

• DATA COLLECTION

6. DATA ANALYSIS AND

INTERPRETATIONS 64- 82

pg. 5
 83-
7. FINDINGS 84

85-
8. SUGGESTIONS AND 86
RECOMMENDATIONS

9. CONCLUSIONS 87-88

10. LIMITATIONS 89-90

11. BIBLIOGRAPHY

91-92

pg. 6
INDUSTRY
PROFILE

pg. 7
 INTRODUCTION TO BANKNG

Without a sound and effective banking system in India it cannot have a healthy economy.
The banking system of India should not only be hassle free but it should be able to meet
new challenges posed by the technology and any other external and internal factors. For
the past three decades India's banking system has several outstanding achievements to its
credit. The most striking is its extensive reach. It is no longer confined to only
metropolitan or cosmopolitans in India. In fact, Indian banking system has reached even
to the remote corners of the country.

This is one of the main reasons of India's growth process. The government's regular
policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14
major private banks of India. Not long ago, an account holder had to wait for hours at the
bank counters for getting a draft or for withdrawing his own money. Today, he has a
choice. Gone are days when the most efficient bank transferred money from one branch
to other in two days.

Now it is simple as instant messaging or dial a pizza. Money have become the order of
the day. The first bank in India, though conservative, was established in 1786. From 1786
till today, the journey of Indian Banking System can be segregated into three distinct
phases. They areas mentioned below :

Early phase from 1786 to 1969 of Indian Banks Nationalization of Indian Banks
and up to 1991 prior to Indian banking sector Reforms. New phase of Indian Banking
System with the advent of Indian Financial & Banking Sector Reforms after 1991.To
make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase
III.

pg. 8
Phase I

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan
and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank
of Bombay (1840) and Bank of Madras (1843) as independent units and called it
Presidency Banks.

These three banks were amalgamated in 1920 and Imperial Bank of India was
established which started as private shareholders banks, mostly Europeans shareholders.
In 1865 Allahabad Bank was established and first time exclusively by Indians,
Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between
1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank,
Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935.

During the first phase the growth was very slow and banks also experienced periodic
failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To
streamline the functioning and activities of commercial banks, the Government of India
came up with The Banking Companies Act, 1949 which was later changed to Banking
Regulation Act 1949as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of
India was vested with extensive powers for the supervision of banking in India as the
Central Banking Authority.

During those day’s public has lesser confidence in the banks. As an aftermath depositmili
zation was slow. Abreast of it the savings bank facility provided by the Postal department
was comparatively safer. Moreover, funds were largely given to traders.

Phase II
Government took major steps in this Indian Banking Sector Reform after independence.
In1955, it nationalized Imperial Bank of India with extensive banking facilities on a large

pg. 9
scale especially in rural and semi-urban areas. It formed State Bank of India to act as
the principal agent of RBI and to handle banking transactions of the Union and State
Governments all over the country.

Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th
July, 1969, major process of nationalization was carried out. It was the effort of the then
PrimeMinister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country w
asnationalized.Second phase of nationalization Indian Banking Sector Reform was
carried out in 1980 with seven more banks. This step brought 80% of the banking
segment in India under Government ownership.

After the nationalization of banks, the branches of the public sector bank India rose to
approximately 800% in deposits and advances took a huge jump by 11,000%.Banking in
the sunshine of Government ownership gave the public implicit faith and immense
confidence about the sustainability of these institutions.

Phase III

This phase has introduced many more products and facilities in the banking sector in its
reforms measure. In 1991, under the chairmanship of M. Narasimham, a committee was
set up by his name which worked for the liberalization of banking practices. The country
is flooded with foreign banks and their ATM stations. Efforts are being put to give a
satisfactory service to customers.

Phone banking and net banking is introduced. The entire system became more
convenient and swift. Time is given more importance than money. The financial system
of India has shown a great deal of resilience. It is sheltered from any
crisis triggered by any external macroeconomics shock as other East Asian Countries
suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high,
the capital account is not yet fully convertible, and banks and their customers have
limited foreign exchange.

pg. 10
 BANKS IN INDIA

In India the banks are being segregated in different groups. Each group has their own
benefit sand limitations in operating in India. Each has their own dedicated target market.
Few of them only work in rural sector while others in both rural as well as urban. Many
even are only catering in cities. Some are of Indian origin and some are foreign players
.All these details and many more is discussed over here.

The banks and its relation with the customers, their mode of operation, the names of
banks under different groups and other such useful information’s are talked about. One
more section has been taken note of is the upcoming foreign banks in India. The RBI has
shown certain interest to involve more of foreign banks than the existing one recently.
This step has paved a way for few more foreign banks to start business in India.

PUBLIC SECTOR BANKS

Among the Public Sector Banks in India, United Bank of India is one of the 14
major banks, which were nationalized on July 19, 1969. Its predecessor, in the Public
Sector Banks, the United Bank of India Ltd., was formed in 1950 with the amalgamation
of four banks viz. Camilla Banking Corporation Ltd. (1914), Bengal Central Bank Ltd.
(1918), Camilla Union Bank Ltd. (1922) and Hooghly Bank Ltd.(1932). Oriental Bank of
Commerce (OBC), Government of India Undertaking offers Domestic.

NRI and Commercial banking services. OBC is implementing a GRAMEEN PROJECT

in Dehradun District (UP) and Hanumangarh District (Rajasthan) disbursing small loans.
This Public Sector Bank India has implemented 14 point action plan for strengthening of
creditdelivery to women and has designated 5 branches as specialized branches for
Women entrepreneurs.

pg. 11
PRIVATE SECTOR BANK

The private-sector banks in India represent part of the Indian banking sector that is
made up of private and public sector banks. The "private-sector banks" are banks where
greater parts of share or equity are not held by the government but by private share
holders.
Banking in India has been dominated by public sector banks (since the 1969) when all
major banks were nationalised by the Indian government. However, since liberalisation in
government banking policy in the 1990s, old and new private sector banks have re-
emerged. They have grown faster & bigger over the two decades since liberalisation
using the latest technology, providing contemporary innovations and monetary tools and
techniques.
The private sector banks are split into two groups by financial regulators in India, old and
new. The old private sector banks existed prior to the nationalisation in 1968and kept
their independence because they were either too small or specialist to be included in
nationalisation. The new private sector banks are those that have gained their banking
license since the liberalisation in the 1990s.
The Nedungadi Bank was the first private sector bank in India which was founded in
1899 by Rao Bahadur T.M. (Thalakodi Madathil) Appu Nedungadi in Kozhikode,
Kerala.
The banks, which were not nationalized at the time of banks are closely held by certain
communities their operations are mostly restricted to the areas in and around their place
of origin. Their Board of directors mainly consist of locally prominent personalities from
trade and business circles.( Private sector banks) One of the positive points of
these banks is that, they lean heavily on service and technology and as such, they are
likely to attract more business in days to come with the restructuring of the industry
round the corner.
The banks, which came in operation after 1991, with the introduction of economic
reforms and financial sector reforms are called "new private-sector banks". Banking
regulation act was then amended in 1993, which permitted the entry of new private-sector
banks in the Indian banking s sector. However, there were certain criteria set for the
establishment of the new private-sector banks, some of those criteria being:# The bank
should have a minimum net worth of Rs. 200 crores.

➢ The promoters holding should be a minimum of 25% of the paid-up capital

pg. 12
 ➢ Reliance Capital, India Post, Larsen & Toubro, Shriram Transport Finance are
companies pending a banking license with the RBI under the new policy, while
IDFC & Bandhan were given a go ahead to start banking services for 2015.

➢ Within 3 years of the starting of the operations, the bank should offer shares to
public and their net worth must increase to 300 crores.

List of the new private-sector banks in India

Year
NAME
Established

1. DCB Bank 1930

2. ICICI Bank 1990
3. Axis Bank 1993
4. HDFC Bank 1994
5. IndusInd Bank 1994
6. Kotak Mahindra Bank 2001
7. Yes Bank 2004
8. IDFC Bank 2015
9. Bandhan Bank 2015

FOREIGN INVESTMENTS

The Government has been pursuing an open door policy and opened the flood gates for
the inflow of foreign capital in the form of FOI, investments by foreign institutional
investors and NRI's in the banking sector too. Foreign investments in private banks from
all sources (FOI, FII, NRI) , which was limited to 49 per cent of the capital but now
raised to 74 percent facilitating setting up of subsidiaries of foreign banks and attracting

pg. 13
investment in private sector banks. The new private sector banks are allowed to raise
capital contribution from foreign institutional investors up to 20 per cent and from NRIs
up to 40 percent of their share capital. Promoter‘s stake in Indian banks is currently
limited to 49 per cent.

While issuing licenses the RBI has instructed those promoters of private banks who held
a higher holding than the prescribed limit to divest their stake and bring it down to 49 per
cent. Indian promoters argue that such discrimination may make Indian private banks
vulnerable to take-over by foreign banks. It is hoped that the limit to Indian promoters
holding will be raised to 74 per cent as is done for FOI.

The guidelines issued by RBI in this regard are: (a.) At all times a minimum of 26 per
cent of the paid up capital of private banks has to be held by residents, (b.) Holdings of a
single entity or a group of related entities is cashed at 10 percent, (c) FIIs are at present
permitted to invest up to 10% each in a bank with a cap of 24 per cent for all FIIs put
together.

This can however be raised to 49 per cent with the approval of the board general body
concerned. The increase in foreign investments limit in private banks will have serious
repercussions to Indian interests. It will enable foreign partners to increase their stake and
acquire management control over Indian banks. Of course presently there is a cap on
voting rights of any person to 10 per cent in private sector, irrespective of his
shareholdings.

It means that even if an entity holds more than 10 per cent 115 stake in a bank, its voting
rights are capped to just 10 per cent in private sector. But there is a proposal to amend the
Banking Regulation Act to remove this cap. With direct foreign investment up to 74 per
cent, the so-called Indian private sector banks may opt collaboration or joint venture
which will become Joint sector institutions between Indian investor and foreign investors.

If the cap on voting right is removed, the foreign investors will surely obtain
management control over Indian banks. The Indian Banks with low capital adequacy

pg. 14
ratio will have the option to raise capital from overseas investors. Presently, Indian banks,
which can offer stake to foreign investors, are lnduslnd Bank, Bank of Punjab. Banks like
Vysya and Centurion Bank may further increase the stake of foreign investors.

Performance Evaluation of Private Sector Banks

The performance of 16 Old Private Banks (OPBs) and 8 New Private Banks (NPBs) is
evaluated during the reform period. The 8 new private banks as has already been stated,
came into existence after 1992-93 and the financial results of these banks are published
from 1995-96. Hence, their performance analysis rebates to the period 1995-96 to 2002-
03. Only 16 old private sector banks are considered for the analysis, leaving those banks,
which are merged with others, Bank of Mathura Ltd. (2001), Bareily The Nedungadi
Bank Ltd. (2003) and those banks whose total assets are less than Rs. 100 Crore. The
New Private Banks which are included for evaluation are Bank of Punjab Ltd., Centurion
Bank Ltd., Global Trust Bank Ltd., HOFC Bank Ltd., ICICI Bank Ltd., OBI Bank Ltd.,
Industrial Bank Ltd' and UTI Bank Ltd.(now AXIS Bank Ltd ).

The parameters elected for evaluation of efficiency of PBs are:

1) Business per Branch,
2) Operating expenses per Branch,
3) Profit per Branch,
4) Business per Employee,
5) Establishment expenses per Employee, and
6) Profit per Employee 116 B.

The parameter selected for profitability analysis are:

1) Return on Assets,
2) Return on Equity,
3) Net interest Margin as a percentage of working funds,
4) Non-Interest Income as a percentage of Total Income, and
5) Credit-Deposit Ratio.

pg. 15
SCHEDULED BANK
These banks have paid up capital of at least Rs. 5 lacks. These are like a joint stock
company. It is a co-operative organization. These banks find their mention in the second
schedule of the reserve bank.

NON SCHEDULED BANK

These banks are not mentioned in the second schedule of reserve bank paid up capital of
these banks is less then Rs.5 lacs. The no. such bank is gradually tolling in India.

COMMERCIAL BANKS
The commercial banks generally extend short-term loans to businessmen & traders. Since
their deposits are for a short-period only. They cannot lend money for a long period.
These banks reform various types or agency job for their customers. These banks are not
in a position to grant long-term loans to industries because their deposits are only for a
short period. The majority of joint stock banks in India are commercial banks which
finance trade & commerce only.

SAVING BANKS
The principle function of these banks is to collect small saving across the country and
put them into productive use. These banks have shown marked development in Germany
& Japan. These banks are established in HAMBURG City of Germany in 1765.
In India a department of post offices functions as a saving banks.

FOREIGN EXCHANGE BANKS

These are special types of banks which specialize in financing foreign trade. Their main
function is to make international payments through purchase & sale of exchange bills. As
it well known, the exporters of a country prefer to receive the payments for exports
in their owncurrency. Thus these banks convert home currency into foreigncurrency and
vice versa. It is on this account that these banks have to keep with themselves stock of
the currency of various countries. Along with that, they have to open branches in
foreign countries to carry on their business.

pg. 16
INDUSTIRAL BANKS
The industrial banks extends long term loans to industries. In fact, they also help
industrials firms to sell their debentures and shares. Sometimes, they even underwrite the
debentures & shares of big industrial concerns.

INDIGENIOUS BANKS

These banks found their origin in India. These banks made asignificant contribution to th
e development of agricultural andindustries before independence. Mahajans , rural
moneylenders have been the forerunner of these banks in India.

CENTRAL BANK

The central bank occupies a pivotal position in the monetary and banking structure of the
country. The central bank is the undisputed leader of the money market.
As such it supervises controls and regulates the activities of commercial banks affiliated
with it. The central bank is also the higher monetary institution in the country charged
with the duty & responsibility of carrying out the monetary policy formulated by the
government. India's central bank known as the reserve bank of India was set up in 1935.

AGRICULTURAL BANK

The commercial and the industrial banks are not in a position to meet the credit
requirements of agriculture. Hence, there arises the need for setting up special type of
banks of finance agriculture. The credit requirement of the farmers are two types. Firstly
the farmers require short term loans to buy seeds, fertilizers, ploughs and other inputs.
Secondly, the farmers require long-term loans to purchase land, to effect permanent
improvements on the land to buy equipment and to provide for irrigation works. There
are two types of agriculture banks.

1. Agriculture co-operative banks, and

2. Land mortgage banks.

The farmer provide short-term credit, while the letter extend long-term loans to the
farmers.

pg. 17
 INDIAN BANKING INDUSTRY

The Indian banking market is growing at an astonishing rate, with Assets expected to
reach US$1 trillion by 2010. An expanding economy, middle class, and technological
innovations are all contributing to this growth. The country’s middle class accounts for
over 320 million People. In correlation with the growth of the economy, rising income
levels, increased standard of living, and affordability of banking products are Promising
factors for continued expansion.

The Indian banking market is growing at an astonishing rate, with Assets expected to
reach US$1Trillion by 2010. An expanding economy , middle class, and technological
innovations are all contributing to this growth.

The Indian banking Industry is in the middle of an IT revolution, Focusing on the

expansion of retail and rural banking. Players are becoming increasingly customer -
centric in their approach, which has resulted in innovative methods of offering
new banking products and services. Banks are now realizing the importance of being a
big player and are beginning to focus their attention on mergers and acquisitions to take
advantage of economies of scale and/or comply with Basel II regulation.

“Indian banking industry assets are expected to reach US$1 trillion by 2010 and are
poised to receive a greater infusion of foreign capital,” says Prathima Rajan, analyst in
Celent's banking group and author of there port. “The banking industry should focus on
having a small number of large players that can compete globally rather than having a
large number of fragmented players."

pg. 18
 INDIAN BANKING SYSTEM

Reserve Bank of India

Schedule Banks
Non-Schedule Banks

Central co-op
State co-op Commercial Banks Commercial Banks
Banks and Primary
Banks Cr. Societies

Indian Foreign

Public Sector HDFC, ICICI

Private Sector Banks
Banks ETC

ICICI etc.

State Bank of India Other Nationalized Banks Regional Rural

and its Subsidiaries Banks

pg. 19
COMPANY
PROFILE

pg. 20
IndusInd Bank derives its name and inspiration from the Indus Valley civilisation - a
culture described by National Geographic as 'one of the greatest of the ancient world'
combining a spirit of innovation with some business and trade practices. Mr. Srichand P.
Hinduja, a leading Non-Resident Indian businessman ahead of the Hinduja Group,
conceived the vision of IndusInd Bank - the first of the new-generation private banks in
India - and through collect contributions from the NRI community towards
India's economic and social development, brought our Bank into being.

The Bank, formally inaugurated in April 1994 by Dr. Manmohan Singh, Honourable
Prime Minister of India who was then the country’s Finance Minister, started with a
capital base of Rs.1000 million (USD 32 million at the prevailing exchange rate), of
which Rs.600 million was raised through private placement from Indian Residents while
the balance Rs.400 million (USD 13 million) was contributed by Non-Resident Indians.

ABOUT NEW ERA

Indusind bank ltd is one of the new generation private sector banks in india. The bank’s
business lines include corporate banking, retail banking, treasury and foreign exchange,
investment banking , capital market, non residents Indians/ high net worth individual
banking, information technology . The bank business divisions include retail/ consumer
banking, consumer finance, global market group, corporate & commercial banking ,
transaction banking group and investment banking.

The bank provides multi- channel facilities, which include automated teller machines
(ATM), net banking , mobile banking, phone banking, multi-city banking and
international debit card. The bank has multi- lateral tie-ups with other banks providing
access to more than 18000 ATMs for their customers They enjoy clearing bank status for
both major stock exchanges – BSE and NSE and three major commodity exchanges in
the country – MCX, NCDEX, and NMCE. They also offer DP facilities for stock and
commodity segments.

While continuing its drive for efficiency and profitability, IndusInd Bank keen
participant in the Corporate Social Responsibility space. It is actively engaged in helping
mentally-challenged and underprivileged children and on other hand, helps in sensitizing
/upholding environment and ecologically appropriate behaviour. The Bank actively
supports “Green Practices” within the Bank and under its campaign “Hum aur Hariyali”,

pg. 21
 it has successfully launched a slew of green initiatives. It is also an active supporter of the
arts especially in the field of music and dance. CRISIL has assigned Highest P1+ rating
to IndusInd Bank’s Fixed Deposits and Certificates of Deposit. Recently, CRISIL has
reaffirmed it P1+ rating of IndusInd Bank’s Fixed Deposits and Certificates of Depo
programme. ICRA has also assigned the highest A1+ rating to IndusInd Bank’s
Certificates of Deposit.

BOARD OF DIRECTORS

Mr. R. Seshasayee
Managing Director, Ashok Leyland Ltd.
Mr. R.Sundararaman
Former Dy Managing Director of SBI
Mr. T. Anantha Narayanan
Chartered Accountant and Expert in Agriculture and Rural Economy
Dr. T. T. Ram Mohan
Professor, Finance & Accounting, IIM, Ahmedabad
Mrs. Pallavi Shroff
Practising Lawyer
Mr. Premchand Godha
M.D. of Ipca Laboratories Ltd., having practical experience of SSI & Agriculture
Mr. Ajay Hinduja
Businessman
Mr. Sushil Chandra Tripathi
I.A.S (Retired), Advocate
Mr. Ashok Kini
Former Managing Director of SBI
Mr. Romesh Sobti
Managing Director & CEO

Vision

IndusInd Bank (we) will be:

• A relevant business and banking partner to our clients
• Customer Responsive, striving at all times to collaborate with clients in providing
solutions for their banking needs.

pg. 22
• A forerunner in the market place in terms of profitability, productivity and efficiency
• Engaged with all our stakeholders and will deliver sustainable and compliant returns

MISSION
We will consistently add value to all our stakeholders and emerge as the ‘best-in-class’ in
the chosen parameters amongst the comity of banks, by doubling our profits, clients and

branches within the next three years.

IndusInd bank boasts of more than 1000 branches and over 1,800 ATMs spread across
the country. The Bank also has representative offices in London, Dubai and Abu Dhabi.

The Bank enjoys clearing bank status for both major stock exchanges - BSE and NSE -
and major commodity exchanges in the country, including MCX, NCDEX, and NMCE.
IndusInd Bank has been ranked 13th in the Brandz Top 50 Most Valuable Indian Brands
2015, as adjudged by WPP and Millward Brown.

ETHICS, INTEGRITY & COMPLIANCE

IndusInd Bank is committed to executing our business strategy such that it actively
promotes transparency, ethical standards, and integrity while engaging and meeting the
needs of our stakeholders, as outlined in our Codes of Conduct. To this end we have also
developed robust mechanisms to ensure compliance with existing regulations and legal,
statutory, and industry norms.

pg. 23
POLICIES AND GUIDELINES
The values of integrity, accountability, transparency and Excellence in service are
integral to the culture at IndusInd bank and an essential part of the way we conduct our
business. To ensure that our senior management, employees and vendors maintain the
highest professional standards , we have formulated and implemented a range of
policies and guildlines. An overview of the most relevant of these is
presented below:

ADMIN MANUAL
The manual enlists processes related to facilities and administration and guides Standard
Operating Procedures (SOP) for various administrative purposes.

EMPOLYEE CODE OF CONDUCT

This disciplinary code and set of procedures has been developed to ensure employees are
aware of the high standards expected of them in the workplace, and to aid the
management in implementing and maintaining discipline with fairness and consistency.

CUSTOMER RIGHTS POLICY

The Customer Rights Policy enshrines basic rights of the customers of the Bank,
regulated by the Reserve Bank of India. It spells out the rights of the customer and also
the responsibilities of the Bank. The Policy applies to all products and services offered by
the Bank.

SECURITY MANUAL
The objective of this manual is to aid in executive security management at all Bank
premises and contains relevant security policies, procedures and guidelines. It has been
prepared in alignment with Indian Banks’ Association (IBA) guidelines.

WHISTEL BLOWER POLICY

pg. 24
This policy is expected to encourage the Bank’s employees, customers, suppliers,
shareholders, etc. to bring to the Bank’s notice any issue involving compromise/violation
of ethical norms, legal or regulatory provisions, etc. without fear of reprisal, retaliation,
discrimination or harassment of any kind.

HR POLICY
The HR policy pertains to regular full-time employees and covers guidelines and policies
relevant to employee welfare and benefits, work environment and business ethics.

GRIEVANCE REDRESSAL POLICY

This policy aims to minimize instances of customer complaints and grievances through
proper service delivery & review mechanisms, and to ensure prompt redressal. The
review mechanism helps in identifying shortcomings in product features and service
delivery. This policy also covers issues relating to services provided by the outsourced
agency.

PRIVACY POLICY
The Privacy Policy outlines the Bank’s commitment towards keeping customers’ data
secure.

WORKPLACE HEALTH AND SAFTEY

The manual lays down safety measures, escalation mechanisms and ways to handle
emergency situations to ensure a safe work environment.

PROCUREMENT POLICY
This document provide guidelines for uniformity in the overall procurement process of
the Bank including guidelines on transparency, safety and the inclusion of human rights.

ENVIRONMENT POLICY PROCUREMENT

pg. 25
The Environment Policy brings cohesiveness to IndusInd Bank’s green banking strategy
and integrates sustainable action and decision making into the Bank’s core business
practices.

CODE OF CONDUCT FOR DIRECTIORS AND SENIOR

MANAGEMENTONMENT POLICY

This Code sets forth the guiding principles on which the Bank shall operate and conduct
its daily business with multiple stakeholders.

CSR POLICY
The CSR policy outlines the key CSR focus areas of the Bank and enumerates the roles
and responsibilities of the CSR department and the CSR committee.

OUTSOURCING POLICY
The Outsourcing Policy of the Bank acts as the guiding principle for the Top
Management of the Bank in dealing with matters relating to outsourcing. Particularly, it
addresses issues such as compliance with regulatory authorities and confidentiality and
security of data.

PRODUCTS
PRODUCT OFFERED BY INDUSIND BANK

Bank offers various products in terms of servicing its customer. The bank has tried to tab
the growth of the retail sector & has come with various products, Priority Banking
being one of them. Bank has pushed the retail banking through a wide spread distribution
network & through the growth of the bank’s Product& customer base. Bank has also tried
to enhance cost Efficiency by leveraging technology that is continuous upgrading &
customer base.

pg. 26
Saving Account
Induslnd Bank offers you a Regular Saving Account with host of convenient features
and banking channels to transact through. So, now you can bank at your convenience,
without the stress of waiting in queues.

It offers a wide assortment of products in the savings bank account category to cover
every segment of customers. Following are the types of saving account offered by
IndusInd Bank.

Going by the traditional banking scenario, IndusInd bank also offers a range of savings
bank accounts that all citizens of India can apply for. Every type of saving account
offered by the bank and opted by the customer earns an interest rate. The various types of
savings account schemes are:

• Indus Exclusive Savings Account

• Indus Select Saving Account
• Indus Maxima Savings Account
• Indus Privilege Savings Account
• Indus Privilege Active
• Indus Diva Savings Account
• Indus Senior Savings Account
• Indus 3 in 1
• Indus Young Silver
• Indus Classic Savings Account
• Indus Easy Savings Account
• Indus Small Account

Types of Savings Account

IndusInd Bank allows its customers to open a savings bank account through two modes –
online and offline. Here, we have classified the savings accounts offered by IndusInd
Bank into online and offline channels.

pg. 27
IndusInd Privilege Active Savings Account

IndusInd Bank understands its customers and their diverse banking needs. They are
always dedicated to offer their customers with products that provide them with
convenient banking experience. With Privilege Active Savings Account, IndusInd Bank
has introduced an all new way of banking which rewards you for being active on your
payments and balance transfers. Privilege Active Savings Account can only be opened
through online channel. Based on your monthly spend and other transactions, you can get
this savings account without any strings attached or without worrying about maintaining
balance. So, for being active you can be rewarded with a zero balance facility along with
several other unmatched privileges and benefits.

Features & Benefits of IndusInd Privilege Active Savings Account

Listed below are the several features and benefits of IndusInd Privilege Active Savings
Account:-

• Opt for a Privilege Active Savings Account and earn up to 6%* p.a. interest on
your savings account balance
• Choose Account Number of your choice
• Waiver of balance requirement basis monthly transactions
• You can make transactions from anywhere in India
• Specially crafted Platinum Plus Debit Card to deliver superior value through
exciting features, offers and convenience of cashless payments for shopping,
dining, entertainment and much more.
• Payable at Par (PAP) cheque book
• Free demand drafts (up to INR.25,000/- per day) at all IndusInd branches
• Free funds transfer through NEFT or RTGS – Online
• Free Monthly e-Statements

Earn 4% interest on daily balance up to Rs 10 lakhs, 5% interest on daily balance above

Rs 10 lakhs and up to Rs 1 crore. Earn 5.5% interest on daily balance above Rs 1 Crore

pg. 28
and up to Rs 10 Crore. You can even earn 6% interest on your daily balance above Rs 10
crore.

Eligibility Criteria

• Resident individuals with either single or joint mode of operation (joint savings
accounts)
• Initial funding required in this account is Rs. 20000 with Platinum Plus debit card

Documents Required

To apply for IndusInd Privilege Active Savings Account you should have:

• One passport size photograph

• Pan Card
• Aadhaar Card

Minimum Average Balance

Indus Privilege Active account is a transaction based account and hence the requirement
for minimum average balance is waived off in this account. However, customers need to
ensure that there is at least one transaction per month from the below list of eligible
transactions.

• 1 net banking or mobile banking + 1 point of sale (POS) transaction per month
with the minimum value of Rs. 2,500 or more
• Recurring deposit linked to Privilege Active Savings Account of Rs. 2,500 or
more per month
• Bill pay (online or offline)/ EMI / SIP from the linked Privilege Active Savings
Account of a minimum of Rs. 2,500 or more

In case the customer fails to transact any of the above, a non-maintenance charge of Rs.
350 shall be levied. However, in case the customer maintains the balance of Rs. 10,000 or
more the non-transaction charge would be waived off.

pg. 29
How to open IndusInd Privilege Active Savings Account online

Applying for a Savings Account at Paisabazaar.com involves two simple steps:

Step 1: In the first step, fill a Savings Account form on Paisabazaar with required
personal data like annual income range, name, email id, contact number and city. Once
submitted the Savings Account tool automatically will furnish personalized Savings
Account options.

Step 2: In the second step, the applicant can compare various Savings Account options
offered by the tool interface and apply for the IndusInd Bank Privilege Active Savings
Account and provide your basic and personal details and open your bank account in no
time.
You can also open IndusInd Privilege Active savings account by visiting the bank’s
website by simply clicking on apply now button. Just fill in your details and submit,
IndusInd Bank will get back to you for further KYC process. Alternatively, you can visit
the nearest branch and submit the savings account form.

IndusInd Bank Credit Cards

IndusInd offers credit cards to match the day to day requirements of its customers. The
tailor made credit cards are designed to meet the needs of all the individuals. Credit cards
are enriched with multiple perks and rewards to ensure all your shopping trips are
delightful. IndusInd credit cards are known for providing best-in-class travel and
shopping privilege. On some premium cards customers can also enjoy complimentary
access to airport lounges and golf courses. IndusInd Bank Platinum Aura Credit Card,
IndusInd Bank Chelsea FC Credit Card, IndusInd Bank Signature Credit Card and
IndusInd Bank Platinum Credit Card are some of the popular cards offered by IndusInd.

IndusInd Bank Debit cards

pg. 30
IndusInd debit cards come with the host of benefits and perks. The robust shopping
feature of the card helps to keep the transactions safe and secure. Every time you use
your debit card, you can earn reward points which can be redeemed later for the various
purchases. Cardholders will enjoy various deals and discounts on shopping over 4 lakh
outlets across India. IndusInd Debit Cards eliminates the need of carrying wads of cash
everywhere, by making it easy for you to pay for fuel, grocery, dining, movies, etc. with
your IndusInd Debit cards.

Types of IndusInd Debit Cards:-

(a) Visa Debit Card

➢ Signature debit card

➢ Signature select VISA debit card
➢ Signature exclusive VISA debit card
➢ Platinum premier debit card
➢ Platinum Plus Debit Card
➢ Platinum Select VISA Debit Card
➢ Platinum Exclusive VISA Debit Card
➢ Platinum VISA Debit Card
➢ International Gold VISA Debit Card
➢ International Classic VISA Debit Card
➢ Signature payWave Debit card @7.5K
➢ Signature payWave Debit card @10K

(b) MasterCard Debit Card

➢ World Debit Card

➢ Titanium Debit Card
➢ Titanium Plus Debit Card
➢ Titanium Plus Debit Card
➢ World Select Debit Card
➢ World Exclusive Debit Card
➢ Titanium Metro Card

(c) RuPay Cards

➢ RuPay Debit Card
➢ RuPay Aadhar Debit Card

pg. 31
LOANS

Types of Loans offered by IndusInd Bank

Be it your marriage or renovating your home, you can achieve all your goals with
IndusInd loans. Given below are the different loan types offered by IndusInd Bank-

• Personal Loan- IndusInd personal loan is offered at competitive interest rates. The
process of obtaining loan is simple and easy. The documentation process is also
hassle-free and effortless. No collateral or any other security is required to avail
the Personal Loan from IndusInd. Bank also gives the option to its customers to
choose the tenure of loan. IndusInd offers personal loan at an interest rate of
10.75% onwards.
• Car Loan-Now you don’t have to think much before getting your dream car with
IndusInd car loans. All salaried and self-employed individuals with minimum
salary of Rs. 2,50,000 per annum are eligible to apply for the IndusInd Car Loan.
IndusInd requires minimal documents and also assigns an agent to provide you
door- step services.
• Loan Against Property– Whether you need funds for your business expansion or
for medical emergency, with IndusInd loan against property you can meet all your
requirements. There are no hidden charges; and customers are well informed about
the charges, fees and rates at the time of application. Customers can avail loan
against residential property as well as commercial property and loan can also be
availed against rentals from commercial properties as well.
• Gold Loan– IndusInd Gold Loans will provide you financial support for any
funding requirements you have. Gold loan is availed by pledging your gold to the
bank for the amount of loan you need. Gold is sealed in the presence of the owner
of the gold to provide a sense of security. The status of the application is also
commuted as soon as possible to save the time of the customers and it also makes
the process fast and efficient.

pg. 32
 • Home Loan– IndusInd provides home loan at attractive interest rates to help you
buy your dream house. Loans are also granted for the renovation of the existing
house. All salaried and self-employed individuals are eligible for obtaining the
loan. The tenure of home loan is up to 30 years. IndusInd bank also provides
balance transfer facility for home loans.

IndusInd Bank Fixed deposit

Fixed deposit schemes are eligible to earn a rate of interest depending on the period for
which the deposits were maintained with the bank. The tenure specific rates are:

• Short-term Fixed Deposit Rates: The short-term fixed deposit rates are provided
for deposits of less than 1 year tenure and it ranges from 3.5% to 6.70% p.a.
• Medium and long-term fixed deposit rates: The interest rate on medium and
long term deposit ranges from 7.00% p.a. to 6.50% p.a.
• Fixed Deposit rates for senior citizens: For senior citizens, the fixed deposit rate
of interest increases by 0.50% than the regular FD rates provided to non-senior
applicants.

MUTUAL FUND

Investing in stock markets directly and making a profit is not everyone’s cup
of tea at least in part because after our day job we have little energy to make
an in-depth study into the ups and downs of the share market. Therefore such
task is best left to professional investors and fund managers, which is what
Mutual Funds provide.

A mutual fund is best defined as a pool of funds collected from multiple

investors who are interested in making their money grow. This pool of money
or corpus is managed by one or full-time fund manager who have one basic
aim to make the investment grow. Due to this professional support that you
get from a mutual fund, it is much easier than buying and selling individual

pg. 33
stocks and bonds by yourself. Additionally, you have the flexibility to
liquidate your mutual fund investments as and when you need to .

TYPES OF MUTUL FUND

Mutual funds are classified in various ways. Following are some of the key
types of a mutual fund based on different classification criteria.
Objectives Based Classification:-
Growth Fund: A growth fund offered by a mutual fund company attempts to
generate high returns for its investors. Therefore, these mutual funds invest in
stocks that have the potential of high growth but also have a high degree of
risk associated with them. Depending on how aggressive the growth targets
are, such a mutual fund would choose to invest in a mix of blue-chip (large
cap), middle cap and small cap investments. When choosing investments for a
fund focused on growth, the fund manager would tend to pick stocks that
would use their profits to grow further instead of making dividend payments
to their investors. Few of the growth funds in this category are HDFC Growth
Fund, Reliance Growth Fund, etc.

Income Funds: Such funds offered by a mutual fund company usually invest
in a variety of fixed-income securities and their key objective is to generate a
regular income. These funds are preferred by retired investors as the regular
dividends they provide act as regular income source with minimal risk.
However, these investments are subject to market forces hence, interest rates
can fluctuate leading to changes in the dividend payouts offered. Top
investment options for income mutual funds include company fixed deposits
and debentures. Few examples of income funds are DSP Black Rock
Opportunities Fund, Sundaram Flexible Fund – Flexible Income Plan.
Balanced Funds: These funds essentially represent a combination of income
and growth objectives. These funds are designed to provide investors with the
dual benefit of dividend income and potential growth. Balanced funds usually

pg. 34
 prefer to include stocks and bonds in their portfolio in order to generate
income, while also ensuring that the investment earnings supersedes, the
inflation observed in the market. The portfolio of a balanced fund commonly
features a combination of equity and fixed-income securities. The equity
investments provide growth, while fixed-income securities provide stability to
the fund during times market volatility. Balanced Funds are provided by
various fund houses. Few of the Balanced Funds are BNP Paribas Balanced
Fund, Baroda Pioneer Balance Fund.

Mutual Funds Distributed By IndusInd:

IndusInd bank has tied up with almost all the mutual funds in the country for distribution
Pan India. We are currently distributing schemes of the following Mutual Funds:

➢ ABN AMRO
➢ LOTUS INDIA
➢ AIG Global LIC
➢ BENCHMARK
➢ KOTAK
➢ BIRLA
➢ OPTIMIX
➢ BOB PRINCIPAL
➢ CHOLAMANDALAM PRUICICI
➢ CANBANK
➢ RELIANCE
➢ DSP
➢ STANDARD CHARTERED
➢ DEUTSCHE
➢ SAHARA
➢ FIDELITY
➢ SBI
➢ HSBC SUNDARAM
➢ HDFC TEMPLETON
➢ INGVYSYA TATA
➢ JM
➢ TAURUS
➢ JP MORGAN
➢ UTI

LIFE INSURANCE
Life insurance is crucial for your family's well-being. It provides
financial support in your absence, ensures your children get the best education, helps to

pg. 35
diversify your portfolio and enables to maintain lifestyle in spite of major changes.
IndusInd Bank along with Tata AIA Life Insurance offer a wide range of life insurance
policies.

Five reasons why need life insurance:

Here are five straightforward reasons why you must buy a life insurance policy for you
and your family.

➢ Safeguard Your Family's Future

One way to cope with the uncertainty of life is to plan well ahead, at least for your
loved ones's sake. Buying a life insurance policy helps to deal with the
unpredictability of life. Your children can continue to fulfil their personal and
professional dreams, and your family won't have to cut corners to make ends meet
.
➢ Save Tax Legally
A policyholder can claim tax benefit on premium paid for life cover. If you pay
premiums for spouse, parents and/or children's policy as well, then you can
reduce your tax burden even further. You can get an annual tax deduction of Rs.
25,000 under section 80D on premiums paid for self, spouse and/or kids.

➢ Live and Leave Debt-Free

A deceased person's pending personal debt or mortgage loan can put immense
pressure on surviving family members or heirs. In such unfortunate
circumstances, a life insurance cover can be used to clear debts passed on to the
family and free them from financial distress. The premiums you paid will buy
time for your dear ones to pay off unsettled loans.

➢ Prepare for Medical Needs

There are many helpful life insurance riders that allow you to pay for your
family's medical expenses or augment your policy cover. During a medical
emergency and in the absence of health insurance, these add-on options can
provide much needed financial support. Premium waiver riders are also available
and are useful in protecting the insured in case of any unfortunate accident.
Besides top-up plans to increase coverage or add another beneficiary, few other

popular riders include disability income, family income and long-term health
care.

pg. 36
 ➢ Inculcate the Habit of Saving
Investing in a life insurance policy is a good way not only to save for a rainy day,
but also to learn more about wealth management. It inculcates the habit to save
money by encouraging people to at least reserve cash for the policy premium
every month.

CURRENT ACCOUNT

Account opening By signing the AOF, customer hereby agrees to be governed by the
Terms & Conditions as mentioned below and amendments made from time to time and
communicated through various means available to the bank.

• Account opening form (AOF) - refers to the relationship opening form for Current
Account in IndusInd bank

• Customer – refers to any person/ entity holding an account with IndusInd bank

• Quarter – refers to the financial quarter i.e. months from April-May-June; July-Aug-
Sep; Oct-Nov-Dec; Jan-Feb-Mar

• Half Yearly – refers to financial half yearly and includes the months of Apr-Sep (first
half) and Oct-Mar (second half)

• Services - refers to services provided by the IndusInd bank to the customers of

IndusInd current account

• Website – refers to the IndusInd bank official bank website hosted in the internet –
www.indusind.com

• Government of India (GOI) – refers to the Government of India

• Reserve Bank of India (RBI) – refers to the overall regulatory body for banking in
India, named as, Reserve Bank of India

• HUF – refers to ‘Hindu Undivided family’

• KYC – refers to the bank policy document on ‘Know Your Customer’

• CA – refers to Current Account

• AMB - Average Monthly Balance Words denoting a particular gender include the other
gender as well.

pg. 37
These terms and conditions form the contract between the customer and the bank and are
subject to change from time to time as per the laws of the statutory/ regulatory bodies
under the jurisdiction of Republic of India. These below mentioned are applicable to all
products and services of current accounts only.

2. ACCOUNT OPENING

OPENING OF CURRENT ACCOUNT FOR INDIVIDUALS

Current Accounts are non-interest bearing accounts wherein transactions are allowed any
number of times depending upon the balance in the account or upto a particular agreed
amount.

OPENING OF CURRENT ACCOUNT FOR NON INDIVIDUALS

If a non individual is willing to open a current and if they are enjoying credit facility
with other banks, a No Objection Certificate (NOC) is required from the existing lending
banks. A letter shall be sent to the consortium leader, if under consortium, or the
concerned bank/s, if under multiple banking arrangement seeking a NOC.

In case no response is received from the existing bankers, account may be opened after a
minimum waiting period of a fortnight (from the date of delivery of the letter as per
POD). In case, IndusInd Bank has sanctioned regular credit facilities under a formal
lending arrangements, and current account is desired to be opened as a part of this
lending arrangement after taking necessary clearance from Credit Administration
Department (CAD). The following types of entities are allowed to open current accounts
with IndusInd Bank :-

• Individuals

• Professionals

• Self Employed Individuals

• Sole-Proprietorship firms

• Partnership Firms

pg. 38
• Private Limited & Public Limited Companies

• Clubs & Societies.

• Trusts & Administrators.

• Government & Semi-Government bodies

• Local Authorities

• Hindu Undivided Family

DOCUMENTATION REQUIRED

All Customers will need to completely fill the account opening form (AOF), provide all
supporting documents (as required under the bank’s KYC guidelines). Customers will
also need to read & accept the Terms & Conditions indicated in the AOF before it can be
processed further.
Current account customers will also need to deposit initial deposit amount by cheque
(drawn on the name of entity) as initial funding.
The mere acceptance of AOF/ initial deposit by the bank does not construe opening of
account by the bank. The bank reserves the right not to open an account if it finds any of
the documents not satisfactory, or there is a verification failure of any credentials
provided by the customer or any other reason which the bank might feel does not comply
with the KYC guidelines of the bank.
Customers should note that the welcome kits are only sent to customer’s corresponding
address that has been duly verified as part of KYC norms and registered with the bank.
Despatches are made either through authorized courier or through registered post. If
customer does not receive the welcome kit / deliverable within specified duration, the
same needs to be reported at the branch so that a re-despatch is initiated. The Bank may
block / close the account incase the deliverables / welcome kit is returned.
Customers should note that the password for debit /Chip debit / cards (if any) are not sent
along with the welcome kit and will reach customer through another mailer. On receipt of
debit card, customer should sign the same for easy identification of customer at POS

pg. 39
 outlets. Customer notes that any loss financially or otherwise with respect to the use /
possession of the card, cheque, etc is the sole responsibility of self and bank shall not be
held liable under any circumstances.

TYPES OF CURRENT ACCOUNT

Trade and Foreign Exchange Current Accounts

Forex Current Account

Specially designed for international businesses, the 'Indus EXIM' and 'Indus Dollar One'
trade accounts offer swift trade services and competitive Forex rates to importers &

exporters.

A trade current account with IndusInd Bank offers best-in-class transactions and cash
deposit limits while enabling transactions in 7 different currencies
The 'IndusInd Bank Dollar One Trade' current account is a complete value for money
proposition offering:
• Unique pricing of only $1 (Flat Rs. 60) for key trade transactions
• Other trade transactions such as SWIFT, Inward Remittances, FIRC & BRC Issuance, LC
advising, etc., at nominal charge.
• Average monthly balance requirement of INR 1 lakh
• Substantial free domestic transaction limits and services

Indus Edge
A comprehensive suite of 7 current account variants to cater the needs of local traders,
start-ups, and established corporates.
Indus Edge comprises of Indus Blue, Indus Silver, Indus Silver Plus, Indus Aspire, Indus
Gold, Indus Gold Plus, and Indus Prestige current account variants to serve entities at
different stages of business life cycle.
The 'Indus Gold Plus Current Account' is made for large traders, wholesalers,
manufacturers, and hospitality businesses. The account comes with

pg. 40
• High free cash deposit limits
• Free and unlimited NEFT/RTGS transactions
• Free doorstep banking services to fulfill your expanding transactional needs

The 'Indus Prestige' current account is a premium product offering best suited for
established businesses. It is designed to cater the needs of bulk traders, C&F agents, large
manufactures, and major retail & hospitality chains.
Indus Prestige current account offering comes with a host of premium services and
exclusive benefits. As a Prestige current account holder you will get the following
• Services of a dedicated Relationship Manager for a convenient banking experience
• Dynamic free cash deposit limits
• Customized Cash Management Services
• Unlimited NEFT/RTGS transfers
Indus Grain Merchant Flexi

'Indus Grain Merchant Flexi' current account is an ideal offering for traders and
dealers in agricultural commodities during all seasons. In addition to high transaction
limits, the Flexi current accounts goes a step further and provides completely flexible and
fungible cash deposit limits between home and non-home deposits.

Indus Textile Current Account

'Indus Textile' current account provides best-in-class cash deposit limits for non-home
textile locations. Understanding the exigencies of your business, we provide special
waivers on outward cheque returns.

Indus Infotech Current Account

The 'Indus Infotech' current account understands the extremely dynamic nature of the
industry and matches your needs at every step. It is a comprehensive package of banking
solutions that includes a Current Account, Trade & Forex services, Salary Accounts, and
Retail Forex solutions, all these at a very competitive pricing.
So go ahead, make IndusInd Bank your banking partner and set yourself free to take your

pg. 41
 business to new heights of success. Revolutionise your business with IndusInd Bank and
Open a current account online with us, today!
Customised Current Account
Your business ideas are unique and so are your banking needs. We at IndusInd Bank
understand this, and brings you the freedom & flexibility to design your own bouquet of
banking services. Now, go ahead and define the transactional limits as per the demands of
your business.

Benefits of a Made to Order Current Account:

• Set your limits of transactions as per your business requirements
• Ease of increasing or decreasing the transaction limits
• Flexibility of choosing your minimum balance across accounts
• Hassle-free banking with minimum transaction cost
Go ahead and drive your business with our tailor made solutions.
Eligibility Criteria: Minimum balance criteria of Rs. 1 lakhs

pg. 42
 INDUSIND BANK SWOT ANALYSIS

Strengths
1. Backing of the Hinduja group
2. Gives importance to customer experience
3. Offers a large variety of products and service pan India
4. Lounge facility for their customers
5. Choose your account number as per your convince
6. Bank notes withdraw as per your choice from ATM

Weaknesses
1. Lags behind many banks in capital structure
2. Few no. of branches across the country in comparison with leading banks
3. Few no. of branches across the world in comparison with other banks

Opportunities
1. Mobile Banking, Internet banking
2.Expansion into rural areas to bank the unbanked and under banked
3.Doing aggressive marketing in order to improve brand value
4. Building relationship with new clients faster.
Threats

1. New bank licenses to be issued by RBI

2. Competitors(HDFC,ICICI,KOTAK etc)
3. Foriegn banks that mainly cater to their target group
4. keep pace with the fast growing technology.
5. Demanding customers are ready to jump from one bank to another when they are not
satisfied with the services provided.

pg. 43
INTRODUCTION
TO THE TOPIC

pg. 44
 INTRODUCTION OF THE TOPIC

MEANING OF FINANCIAL STATEMENTS:-

Financial statements refer to such statements which contains financialinformation about

an enterprise. They report profitability and the financial position of the business at the
end of accounting period. The team financial statement includes at least two
statements which the accountant prepares at the end of an accounting period. The two
statements are: -

1.The Balance Sheet

2.Profit And Loss Account

They provide some extremely useful information to the extent that balance Sheet mirrors
the financial position on a particular date in terms of the structure of assets, liabilities and
owners equity, and so on and the Profit And Loss account shows the results of operations
during a certain period of time in terms of the revenues obtained and the cost incurred
during the year. Thus the financial statement provides a summarized view of
financial positions and operations of a firm.

MEANING OF FINANCIAL ANALYSIS

The first task of financial analysis is to select the information relevant to

thedecision under consideration to the total information contained in thefinancial
statement. The second step is to arrange the information in a way to highlight significant
relationship. The final step is interpretation and drawing of inference and conclusions.
Financial statement is the process of selection , relation and evaluation.

Features of Financial Analysis

- To present a complex data contained in the financial statement in simple and
understandable form.
- To classify the items contained in the financial statement inconvenient and rational
groups.
- To make comparison between various groups to draw variousconclusions.

Purpose of Analysis of financial statements

- To know the earning capacity or profitability.
- To know the solvency.

pg. 45
 - To know the financial strengths.
- To know the capability of payment of interest & dividends.
- To make comparative study with other firms.
- To know the trend of business.
- To know the efficiency of mgt.
- To provide useful information to mgt

Procedure of Financial Statement Analysis

The following procedure is adopted for the analysis and interpretation of financial
statements:-

The analyst should acquaint himself with principles and postulated of accounting. He
should know the plans and policies of the management so that he may be able to find out
whether these plans are properly executed or not.

The extent of analysis should be determined so that the sphere of

work may be decided. If the aim is find out. Earning capacity of theenterprise then
analysis of income statement will be undertaken. On the other hand, if financial position
is to be studied then balance sheet analysis will be necessary.

The financial data be given in statement should be recognized and rearranged .

It will involve the grouping similar data under sameheads. Breaking down of individual
components of statement according to nature. The data is reduced to a standard form.

A relationship is established among financial statements with the help of tools &
techniques of analysis such as ratios, trends, common size, fund flow etc.

The information is interpreted in a simple and understandable way. The significance

and utility of financial data is explained for help indecision making.

The conclusions drawn from interpretation are presented to themanagement in the form
of reports.

USERS OF FINANCIAL ANALYSIS:

• Management
• Trade creditors

pg. 46
 • Investors
• Government
• Others

Management:
Management of the firm would be interested in every aspect of the financial
analysis. It is their overall responsibility to see that the resources of the firm are
used most effectively and efficiently and that the firm’s condition is sound.

Trade Creditors:
The trade creditors are to be paid in a short term solvency of the
concern. The current ratio and acid test ratio will enable the creditors to assets the
short term solvency position of the concern.

Investors:
The Investors are interested their money in the firms shares, are not
concerned about the firms earnings. They restore more confidence in those firms
that show steady growth in earnings. As such, they concentrate on the analysis of
the firms present and future profitability. They are also interested in the firm’s
financial structure to the extent it influences the firms earning ability and risk.

Government:
The financial statements are used to asses tax liability of business
enterprise. These statements enable the government to find out whether the
business is following various regulations or not.

Others:

pg. 47
 Trade associations, stock exchange and public at may also analyze
the financial statements to judge the financial position of different concerns.

TYPES OF FINANCIAL ANALYSIS

A ) Classification on the basis of natural used

a ) External Analysis

Outsiders, who don’t have access to the detailed internalaccounting records of the
business firm, do this analysis. These outsiders parties are potential
investor, creditors, government agencies, credit agencies & general public.

b) Internal Analysis

The analysis conducted by person who has access to the internal accounting records of a
business firm is known as internal analysis.

B) On the basis of modus operand

a) Horizontal Analysis:

Horizontal analysis refers to the comparison of financial data of a company for several
years. The figures of this type of analysis are presented horizontally over a no. of
columns. This type of analysis is also called “Dynamic Analysis”.

B) Vertical Analysis:

This analysis refers to the study of relationship of the various items in the financial
statements, of one accounting period. It is also known as “Static analysis”.

FUNCTIONS OF FINANCE DEPARTMENT

The functions of finance department include the following areas:
1) Effective management of financial resources of the company.

2) Coordinates & Monitors the functions of accounts activities in the units/marketing

offers.

pg. 48
3) Establish and maintain systems of financial control, internal check
andrender advice on financial & accounting matters includingexamination of feasibility
report and detailed project reports.

4) Establish and maintain proper system of budgetary control, cost control and
management reporting.

5) Maintain financial accounts and compile annual periodical accounts

inaccordance with the companies Act, 1956, ensuring the audit of accounts as
per law/Govt. directions.

6) Looks after overall funds management and arranges funds required

for the capital schemes and working capital form govt., banks andfinancial institutions
etc.

7) Timely payment of all taxes, levies & duties under the Law, Maintenance of records
and filing returns statements connected with such taxes, levies and duties with the
appropriate authorities , as per law. All the power involving financial implications are to
exercised in prior consultation with head of concerned finance department.
In the event of any difference of opinion between the General Manger and the Head of
Finance Dept., the matter shall be referred to Managing Director who after consulting
Director (Finance) shall issue appropriate instruction after following the prescribed
procedures.

METHODS OF FINANCIAL ANALYSIS

pg. 49
A number of methods can be used for the purpose of analysis of
financialstatements. These are also termed as techniques or tools of financialanalysis. Out
of these, and enterprise can choose those techniques which are suitable to its
requirements. The principal techniques of financial analysis are:

1. Comparative Financial Statements.

2. Common – size Statements
3. Trend Analysis
4. Funds Flow statements
5. Cash Flow Statement

COMPARATIVE FINANCIAL STATEMENTS

When financial statements figures for two or more years are placed side-side to facilitate
comparison, these are called ‘comparative Financial Statements’.
Such statements not only show the absolute figures of various years but also provide for
columns to indicate to increase or decrease in these figures from one year to another. In
addition, these statements may also show the change from one year to another on
percentage form. Such cooperative statements are of great value in forming the opinion
regarding the progress of the enterprise.

PURPOSE OR UTILITY OR IMPORTANCE OF COMPARATIVE

STATEMENTS

1. To make the Data simpler and more understandable

2 .To indicate the Trend
3. To indicate the strong points weak points of the concern
4. To compare the firms performance with the average performance of the industry
5. To help in forecasting.

FORMS OF PRESENTING COMPARATIVE STATEMENT

pg. 50
1. To show only the absolute data of various items or in other words to show only rupee
amounts of various items
2. To show the increases and decreases in data in terms of money values
3. To show the increases and decreases in data in terms of percentages
4. Comparison expressed in ratios5.Use of cumulative figures and averages

COMPARATIVE BALANCE SHEET

The Comparative Balance Sheet as on two or more different dates can be prepared to
show the increase or decrease in various assets, liabilities and capital. Such a comparative
Balance Sheet is very useful in studying the trends in a business enterprise.

ADVANTAGES OF COMPARATIVE BALANCE SHEET

1. Helpful for comparison.
2. Helpful in knowing changing in the size of items.
3. Helpful in knowing trends.
4. Link between income statement and Balance sheet.

COMPARATIVE PROFIT & LOSS ACCOUNT

Profit and loss account shows the net profit or net loss of a particular year whereas
comparative profit and loss account for a number of years provides the following
information:-
1. Rate of increase or decrease in gross profit.
2. Rate of increase or decrease in operating profit.
3. Rate of increase or decrease in cost of goods sales.
4. Rate of increase or decrease in net profit.
5. Rate of increase or decrease in sales.

TREND ANALYSIS

pg. 51
Trend percentage are very useful is making comparative study of thefinancial statements
for a number of years. These indicate the direction of movement over a long time and
help an analyst of financial statements to form an opinion as to whether favorable or
unfavorable tendencies have developed. This helps in future forecasts of various items.

For calculating trend percentages any year may be taken as the ‘base year’. Each item of
base year is assumed to be equal to 100 and on that basis the percentage of item of each
year calculated.

RATIO ANALYSIS
MEANING :

Absolute figures expressed in financial statements by themselves are meaningfulness.

These figures often do not convey much meaning unless expressed in relation to
other figures. Thus, it c an be say that the relationship between two figures, expressed in
arithmetical terms is called a ratio.

“According to R.N. Anthony.”“A ration is simply one number expressed in terms

of another. It is found by dividing one number into the other.”

TYPES OF RATIOS

- Proportion or Pure Ratio or Simple ratio.

- Rate or so many Times.
- Percentage
- Fraction.

OBJECTS AND ADVANTAGES OR USES OF RATIO ANALYSIS

pg. 52
 - Helpful in analysis of financial statements.
- Simplification of accounting data.
- Helpful in comparative study.
- Helpful in locating the weak spots of the business.
- Helpful in forecasting Estimate about the trend of the business
- Fixation of ideal standards
- Effective control
- Study of financial soundness.

LIMITATION OF RATIO ANALYSIS

False accounting data gives false ratios

Comparisons not possible of different firms adopt different accounting policies.
Ratio analysis becomes less effective due to price level change
Ratios may be misleading in the absence of absolute data.
Limited use of a single Ratio.
Window-Dressing
Lack of proper standards.
Ratio alone are not adequate for proper conclusions
Effect of personal ability and bias of the analyst.

CLASSIFICATION OF RATIOS
In view of the financial management or according to the tests satisfied, various ratios
have been classifieds as below :-
I. Liquidity Ratios:
These are the ratios which measure the short-term solvency or financial position of a
firm. These ratios are calculated to comment upon the short-term paying capacity of a
concern or the firm’ stability to meet its current obligations.

II. Long –Term Solvency and Leverage Ratios:

pg. 53
 Long-term solvency ratios convey a firm’s ability to meet the interest cost and
repayment schedules of its long-term obligation e.g. Debit Equity Ratio and Interest
Coverage Ration. Leverage Ratios.

III. Activity Ratios:

Activity ratios are calculated to measure the efficiency with which the resource of a firm
have been employed. These ratios are also called turnover ratios because they indicate the
speed with which assets are being turned over into sales e.g. debtors turnover ratio.

IV. Profitablity Ratios:

These ratios measure the results of business operations or overall performance and
effective of the firm e.g. gross profit ratio, operating ratio or capital employed. Generally,
two types of profitability ratios are calculated.

(a)In relation to Sales, and

(b)In relation in Investment

pg. 54
 FUNCTIONAL CLASSIFICATION IN VIEW OF FINANCIAL
MANAGEMENT OR CLASSIFICATION ACCORDING TO
TESTS
Long term
Liquidity ratio solvency ratio Activity ratio Profitability
and leverage ratio
ratio

(A)1. Current ratio Financial operating 1.Inventory (A)In relation to

2. Liquid ratio composite Turnover ratio sales.
(Acid) Test or 2.Debtors turnover 1.Gross profit ratio
Quick Ratio. 1.Debt Equity ratio 3.Fixed Assets 2.Operating Profit
3. Absolute Liquid 2.Debt to total Turnover ratio ratio
or Cash Ratio capital ratio 4.Total Assets 3.Net profit ratio
4. Internal Measure 3.Interest coverages Turnover ratio 4.Expenses ratio
(B)1. Debtors 4.Cash flow/Debt 5.Working Capital (B)In relation to
turnover ratio 5.Capital Gearing Turnover ratio investments
2. Creditors 6.Payables Turnover 1. Return on
turnover ratio ratio Investments
3. Inventory 7.Capital Employed 2. Return on capital
turnover ratio Turnover 3. Return on Equity
capital.
4. Return on total
Resources
5. Earning per share
6. Price Earning
Ratio

pg. 55
Show the proportions of debt and equity in financing of the firm.
Theseratios measure the contribution of financing by owner as compared to financing by
outsiders. The leverage ratios can further be classified as:
(i) Financial Leverages,
(ii) Operating Leverage,
(iii) Composite Leverages

CASH-FLOW STATEMENT

A cash – flow statement is a statement showing inflows (receipts) andoutflows

(payments) of cash during a particular period. In other words, it is a summary of sources
and applications of each during a particular span of time.

Objectives of Cash Flow Statement :

•Useful for Short-Term Financial Planning.

•Useful in Preparing the Cash Budget.

•Comparison with the Cash Budget.

•Study of the Trend of Cash Receipts and Payments.

•It explains the Deviations of Cash from Earnings.

•Helpful in Ascertaining Cash Flow from various Separately.

•Helpful in Making Dividend Decisions.

pg. 56
 OBJECTIVE OF THE STUDY

Objectives are the ends that states specifically how goal be achieved. Every study must
have an objective for which all the efforts have been
done.Without objective no research can be conducted and no result can beobtained. On
the basis of objective all the research process is followed. Objectives are the main aspect
of every study. The objective of the study gives direction to go through the research
problem. It guides the researcher and keeps him on track. I have two objectives regarding
my research project. These are shown below :-

1. Primary objective

2. Secondary objective

1. Primary objective :-

1) To study the software used in INDUSIND Bank

2) To analyse the financial statements of the corporation to it’s true financial position by
the use of ratios

2. Secondary objective :-

1) To find out the shortcomings in INDUSIND Bank

2) To see whether INDUSIND BABK is going well or not in different areas

3) To inform the management about the financial condition of INDUSIND bank.

4) To inform the investor, enabling them to take the investment decision.

pg. 57
 RESEARCH
METHODOLOGY

pg. 58
RESEARCH METHODOLOGY

The procedure adopted for conducting the research requires a lot of attention
as it has direct bearing on accuracy, reliability and adequacy of results obtained. It is due
to this reason that research methodology, which we used at the time of conducting the
research, needs to be elaborated upon.
Research Methodology is a way to systematically study and solve the research problems.
If a researcher wants to claim his study as a good study, he must clearly state the
methodology adapted in conducting the research there search so that it way be judged by
the reader whether the methodology of work done is sound or not.

The Research Methodology here includes.

1. Meaning of Research.

2. Research Problem.

3. Research Design

4. Sampling Design.

5. Data Collection method.

6. Analysis and interpretation of Data.

Meaning Research:

Research is defined as “ a scientific and systematic search for pertinent

information on a specific topic”.

Research is an art of scientific investigation. Research is a systematized effort to gain

now knowledge. It is a careful investigation or inquiry especially through search for new
facts in any branch of knowledge. Research is an academic activity and this term
should be used in a technical sense. Research comprises defining andredefining
problems, formulating hypothesis or suggested solutions. Making deductions

pg. 59
and reaching conclusions to determine whether they if theformulating hypothesis. Resear
ch is thus, an original contribution to theexisting stock of knowledge making for its
advancement. The search for knowledge through objective and systematic method of
finding solutions to a problem is research.

Research Problem

The first step while conducting research is careful definition of Research Problem. “To
ERR IS THE HUMAN” is a proverb which indicates that no one is perfect in this world.
Every researcher has to face many problems which conducting any research that’s why
problem statement is defined to know which type of problems a researcher has to face
while conducting any study. It is said that,

“Problem well defined is problem half solved.”

Basically, a problem statement refers to some difficulty, which researcher experiences in

the context of either a theoretical or practical situation and wants to obtain the solution
for the same. The problem statement here is:

“To make a Financial Analysis of Financial statements of INDUSIND BANK

LUCKNOW

Research Design

A research designs is the arrangement of conditions for collection andanalysis data in a

manner that aims to combine relevance to the research purpose with economy in
procedure. Research Design is the conceptual structure with in which research in
conducted. It constitutes the blueprint for the collection measurement and analysis
of data. Research Design include sand outline of what the researcher will do form writing
the hypothesis and it operational implication to the final analysis of data. A research
design is a framework for the study and is used as guide in collection and analyzing the
data. It is a strategy specifying which approach will be used for gathering and analyzing
the data. It also include the time and cost budget since most studies are done under these

pg. 60
two cost budget since most studies are done under theses tow constraints. The design is
such studies must be rigid and not flexible and most focus attention on the following.

1.What is the study about?

2.Why is the study being made?

3.Where will the study be carried out?

4.What type of data is required?

5.Where can be required data be found?

6.What period of time will the study include?

7.What will be sample design?

8.What techniques of data collection will be used?

9.How will the data be analyzed?

10.In what style will the report be prepared?

TYPES OF RESEARCH DESIGN :

❖ EXPERIMENTAL RESEARCH DESIGN

❖ EXPLORATORY RESEARCH DESIGN
❖ DESCRIPTIVE& DIAGNOSTIC RESEARCH

Exploratory Research Design:

This research design is preferred when researcher has a vague idea about the problem the
researcher has to explore the subject.

Experimental Research Design –

The research design is used to provide a strong basis for the existence of casual
relationship between two or more variables.

pg. 61
Descriptive Research Design –

It seeks to determine the answers to who, what, where, when and how questions. It is
based on some previous understanding of the matter.

Diagnostic Research Design -

It determines the frequency with which something occurs or its association with
something else.

Research Design Used in this Project

Research Design chosen for this study is Descriptive Research Design. Descriptive
study is based on some previous understanding of the topic. Research has got a very
specific objective and clear cut data requirements.

Sampling Design

Sampling is necessary because it is almost impossible to examine the entire parent

population (i.e. the entire universe) various factors such as timeavailable cost, purpose of
study etc. make it necessary for the researchers to choose a sample. It should neither be
too small nor too big. It should be manageable. The sample size of past 5 years is taken
for present study due to time limitation.

DATA COLLECTIONS

The process of data collection begins after a research problem has been defined and
research design has been chalked out. There are two types of data –

METHODS OF PRIMARY DATA

➢ OBSERVATION METHOD
➢ INTERVIEW METHODS
➢ QUESTIONAIRE METHOD
➢ SCHEDULE METHOD

pg. 62
PRIMARY DATA -

It is first hand data, which is collected by researcher itself. Primary data is collected by
various approaches so as to get a precise, accurate, realistic and relevant data. The main
tool in gathering primary data was investigation and observation. It was achieved by a
direct approach and observation from the officials of the company.

SECONDARY DATA -

It is the data which is already collected by someone else. Researcher has to analyze the
data and interprets the results. It has always been important for the completion of any
report. It provides reliable, suitable, adequate and specific knowledge. I took data
comprise annual reports and post records. Bank has provided me annual reports from
2013-14 to 2017-18 by help of which, I prepared my report. The valuable cooperation
extended by staff members contributed a lot to fulfill the requirements in the collection of
data in order to complete the project . Various statistical tools are applied depending
on the research problem. In this study ratio analysis, comparative financial statements
analysis, common size statements and Trend Analysis has been used for analyzing and
interpreting the result.

pg. 63
DATA ANALYSIS
AND
INTERPRETATION

pg. 64
 COMPARATIVE PROFIT &LOSS ACCOUNT OF
INDUSIND BANK
FOR THE YEAR ENDED ON 31ST MARCH 2018

Mar 18 Mar 17 Mar 16 Mar 15 Mar 14

12 12 12 12
12
months months months months
months

INCOME

Interest /

Discount on 13,699.9 11,479.1

9,244.56 7,716.91 6,627.35
Advances / 1 1

Bills

Income from
3,074.38 2,466.89 1,780.63 1,680.42 1,477.03
Investments

Interest on

Balance with 321.48 330.83 408.50 277.30 148.50

RBI and Other

pg. 65
Inter-Bank

funds

Others 184.99 128.84 146.97 17.34 0.65

Total Interest 17,280.7 14,405.6 11,580.6

9,691.96 8,253.53
Earned 5 7 6

Other Income 4,750.10 4,171.49 3,296.95 2,403.87 1,890.53

22,030.8 18,577.1 14,877.6 12,095.8 10,144.0

Total Income
5 6 1 4 6

EXPENDITURE

Interest
9,783.30 8,343.07 7,064.09 6,271.69 5,362.82
Expended

Payments to

and Provisions 184.99 1,521.02 1,236.09 980.48 809.29

for Employees

Depreciation 211.64 190.70 156.52 126.85 98.15

pg. 66
Operating

Expenses

(excludes 5,194.81 3,071.36 2,279.49 1,618.60 1,277.84

Employee Cost

& Depreciation)

Total

Operating 5,591.44 4,783.08 3,672.10 2,725.93 2,185.28

Expenses

Provision

Towards 1,900.02 1,681.33 1,332.38 836.95 741.74

Income Tax

Provision

Towards -25.33 -189.54 -149.57 78.05 -21.93

Deferred Tax

Provision

Towards Other 0.00 0.00 0.00 0.45 0.50

Taxes

pg. 67
Other

Provisions and 1,175.43 1,091.34 672.16 389.05 467.63

Contingencies

Total

Provisions
3,050.12 2,583.13 1,854.97 1,304.50 1,187.94
and

Contingencies

Total 18,424.8 15,709.2 12,591.1 10,302.1

8,736.04
Expenditure 6 7 6 2

Net Profit /

Loss for The 3,605.99 2,867.89 2,286.45 1,793.72 1,408.02

Year

Net Profit /

Loss After EI
3,605.99 2,867.89 2,286.45 1,793.72 1,408.02
& Prior Year

Items

Profit / Loss 7,118.38 5,013.45 3,664.02 2,623.33 1,790.93

pg. 68
Brought

Forward

Total Profit /

Loss available
10,724.3
for 7,881.35 5,950.47 4,417.05 3,198.95
7
Appropriation

APPROPRIATIONS

Transfer To /

From Statutory 901.50 716.97 571.61 448.43 352.01

Reserve

Transfer To /

From Capital 7.62 45.54 13.21 12.27 8.18

Reserve

Transfer To /

From 0.00 0.00 0.00 37.16 0.07

Investment

pg. 69
Reserve

Dividend and

Dividend Tax
71.52 0.00 0.00 0.00 0.00
for The

Previous Year

Equity Share
432.24 0.46 292.62 212.01 184.08
Dividend

Tax On
0.00 0.00 59.57 43.15 31.28
Dividend

Balance

Carried Over
9,311.49 7,118.38 5,013.45 3,664.02 2,623.33
To Balance

Sheet

Total
10,724.3
Appropriation 7,881.35 5,950.47 4,417.05 3,198.95
7
s

OTHER INFORMATION

pg. 70
EARNINGS PER SHARE

Basic EPS
60.19 48.06 39.68 34.00 27.00
(Rs.)

Diluted EPS
59.57 47.56 39.26 33.00 26.00
(Rs.)

DIVIDEND

PERCENTAGE

Equity Dividend
75.00 60.00 45.00 40.00 35.00
Rate (%)

Income Statement is a financial statement that summarizes the various transaction of a

business during a specified period, showing the net profit or loss. Income statement
measures the company’s financial performance over a specific accounting period. It is
often referred as a Profit And Loss Statement.

pg. 71
 COMPARATIVE BALANCE SHEET
For the year ended on 31 march 2018

Balance Sheet of IndusInd Bank ------------------- in Rs. Cr. -------------------

Mar 18 Mar 17 Mar 16 Mar 15 Mar 14

12 12 12
12 months 12 months
months months months

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 600.22 598.15 594.99 529.45 525.64
Total Share Capital 600.22 598.15 594.99 529.45 525.64
Revaluation Reserve 362.20 374.59 380.77 391.01 397.27
22,864.6 19,658.1 16,706.4
Reserves and Surplus 9,710.02 8,109.03
5 8 5
23,226.8 20,032.7 17,087.2 10,101.0
Total Reserves and Surplus 8,506.30
5 7 2 3
Employees Stock Options 14.57 15.20 13.77 14.05 11.02
23,841.6 20,646.1 17,695.9 10,644.5
Total ShareHolders Funds 9,042.96
4 2 8 3
151,639. 126,572. 93,000.3 74,134.3
Deposits 60,502.29
17 22 5 6
38,289.0 22,453.6 22,155.8 20,618.0
Borrowings 14,761.96
8 9 6 6
Other Liabilities and Provisions 7,856.27 8,976.38 7,204.81 3,718.96 2,718.73
221,626. 178,648. 140,056. 109,115.
Total Capital and Liabilities 87,025.93
16 41 99 92
ASSETS
Cash and Balances with Reserve Bank 10,962.4
7,748.75 4,521.04 4,035.14 4,413.92
of India 1
Balances with Banks Money at Call 10,879.5
2,253.47 5,590.83 6,744.00 2,355.53
and Short Notice 1

pg. 72
 50,076.7 36,702.1 31,214.3 24,859.3
Investments 21,562.95
2 4 1 7
144,953. 113,080. 88,419.3 68,788.2
Advances 55,101.84
66 51 4 0
Fixed Assets 1,338.75 1,335.23 1,255.32 1,157.58 1,016.45
12,041.1
Other Assets 8,902.28 9,056.14 3,531.63 2,575.25
6
221,626. 178,648. 140,056. 109,115.
Total Assets 87,025.93
16 41 99 92
OTHER ADDITIONAL INFORMATION
Number of Branches 1,400.00 1,200.00 1,000.00 801.00 602.00
25,284.0 25,314.0 23,060.0 19,121.0
Number of Employees 15,590.00
0 0 0 0
Capital Adequacy Ratios (%) 15.00 15.00 16.00 12.00 14.00
KEY PERFORMANCE INDICATORS
Tier 1 (%) 15.00 15.00 15.00 11.00 13.00
Tier 2 (%) 0.00 1.00 1.00 1.00 1.00
ASSETS QUALITY
Gross NPA 1,704.91 1,054.87 776.82 562.92 620.79
Gross NPA (%) 1.00 1.00 1.00 1.00 1.00
Net NPA 745.67 438.90 321.75 210.48 184.05
Net NPA (%) 1.00 0.00 0.00 0.00 0.00
Net NPA To Advances (%) 1.00 0.00 0.00 0.00 0.00
CONTINGENT LIABILITIES,
COMMITMENTS
37,415.4 19,006.9 20,272.9 11,748.8
Bills for Collection 10,657.84
8 1 4 5
662,099. 406,387. 278,589. 203,953.
Contingent Liabilities 142,921.00
16 19 23 17

pg. 73
CASH FLOW STATEMENT

IndusInd Bank

Cash Flow ------------------- in Rs. Cr. -------------------

Mar
Mar '18 Mar '17 Mar '16 Mar '15
'14

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit Before Tax 5480.67 4359.69 3469.26 2709.17 2128.33

Net Cash From Operating - -

11569.30 -6787.93 -321.43
Activities 20700.44 4105.76

Net Cash (used in)/from

-219.55 -273.64 -257.51 -276.16 -173.70
Investing Activities

Net Cash (used in)/from

15505.11 -2768.25 6378.17 4607.29 4200.17
Financing Activities

Net (decrease)/increase
In Cash and Cash -5412.38 8516.38 -667.27 4009.70 -79.29
Equivalents

Opening Cash & Cash

18628.25 10111.87 10779.14 6769.44 6848.73
Equivalents

Closing Cash & Cash

13215.88 18628.25 10111.87 10779.14 6769.44
Equivalents

pg. 74
Cash flows in the statement are divided into the following three areas

• Operating activities - These constitute the revenue-generating activities of a

business. Examples of operating activities are cash received and disbursed for

product sales, royalties’ commissions, fines, lawsuits, supplier and lender

invoices, and payroll.

• Investing activities - These constitute payments made to acquire long-term

assets, as well as cash received from their sale. Examples of investing activities

are the purchase of fixed assets and the purchase or sale of securities issued by

other entities.

• Financing activities - These constitute activities that will alter the equity or

borrowings of a business. Examples are the sale of company shares, the

repurchase of shares, and dividend payments.

pg. 75
 RATIO ANALYSIS
VARIOUS CALCULATED RATIOS

Current Ratio
Current ratio may be defined as the relationship between current assets and current
liabilities. It is the most common ratio for measuring liquidity. It is calculated by
dividing current assets by current liabilities. Current assets are those, the amount of
which can be realized within a period of one year. Current liabilities are those
amounts which are payable within a period of one year. A current ratio of 2:1 is
considerable ideal.

Current Assets
Current Ratio =

Current liabilities

YEAR 2018 2017 2016 2015 2014

CURRENT 0.08 0.07 0.09 0.05 0.04

RATIO

pg. 76
 0.1

0.08
current ratio
0.06

0.04

0.02

0
2018 2017
2016 2015 2014

INTERPRETATION:-

Current ratio during the year 2014-15 is the 0.4 . In the next year 2015-16 it was
maximum 0.5 and in the year 2016- 17 it was 0.9. In the year the current ratio is 0.8 and
in the last year 2017-18 the current ratio decreased to 0.7.

The ideal value of current ratio 2:1, but during the period of study, the current
ratio is lesser than the standard. This shows the current ratio shows a down ward
which indicates the inefficiency of the company to meet its current obligations.

2) Liquid Ratio:-

The teem ‘Liquidity’ refers to the ability of a firm to pay its short – term
obligations as and when they become due. The term quick assets or liquid assets refers
current assets, which can be converted into cash immediately. It comprises all current
assets except stock and prepaid expenses. It is determined by dividing quick assets by
quick liabilities.

pg. 77
 Liquid Assets

Liquid Ratio =

Liquid Liabilities

YEARS 2018 2017 2016 2015 2014

QUICK
RATIO 20.38 14.45 14.16 20.53 22.84

25

20

15 QUICK RATIO
10

5
Series 3
0 Column1
2018 2017 QUICK RATIO
2016 2015 2014

INTERPRETATION:-
Liquid ratio during the year 20013-2014 it attains the maximum value of 22.84 in the
above year it was slightly reduced to 2014 – 2015 by 2.31. In the next year, 20015-16 it
further decreased to 14.16 .and in the next year 2016-17 increased to 14. in the last year
increased 2017-18 to 20.38 .

pg. 78
 During the period of study, the value of liquid ratio is higher than the ideal value
which indicates the efficiency of the company to meet is immediate requirements. The
overall trend of liquid ratio shows up and downward trend.

PROFITABILITY RATIO

A profitability ratio is a measure of profitability, which is a way to measure a

company's performance. Profitability is simply the capacity to make a profit, and a profit

is what is left over from income earned after you have deducted all costs and expenses

related to earning the income. The formulas you are about to learn can be used to judge a

company's performance and to compare its performance against other similarly-situated

companies.

✓ Return on Total Assets (ROTA)

✓ Return on Capital Employed(ROCE)

Return on Total Assets (ROTA): Return on Assets measures how effectively

the company produces income from its assets. You calculate it by dividing net

income (NI) for the current year by the value of all the company's assets (A) and

multiplying the quotient by 100:

Return on assets = Net income*100

Companies assets

pg. 79
 RATIOS

YEAR Mar18 Mar17 Mar16 Mar15 Mar14

ROTA 396.97 344.91 297.19 200.78 171.89

400
350
300
250
200 ROTA

150
100
50
0
2018 2017 2016 2015 2014

INTERPRETATION

• This shows permanently rise in total asset.

• Positive rise in ratio indicates a positive efficiency of the organization.

• High ROTA indicate that the company is investing wisely and is likely profitable.

• Low ROTA indicate that the company is not investing wisely.

pg. 80
 Return On Capital Employed (ROCE): A ratio that indicates the efficiency and
profitability of a company’s capital investment.

Return On capital employed = Earning before interest and tax*100

Capital Employed

Ratios

YEARS Mar18 Mar17 Mar16 Mar15 Mar14

ROCE 11.03 11.69 11.98 12.38 12.70

13

12.5

12

11.5
ROCA

11

10.5

10
2018 2017 2016 2015 2014

INTERPRETATION

pg. 81
• This ratio shows decrease in return over capital employed.

• Decrease in ratio indicate non favorable for business organization.

• Low ROCE state that a company is making poor use of its capital
resources.

• A high ROCE indicates that a larger of profits can be invested back into
the company for the benefit of shareholders.

pg. 82
FINDINGS

pg. 83
pg. 84
 FINDINGS

• To sum up some of the financial years, the company recorded a commendable

performance in volatile year. Since 2014 it has shown a continous increase in

sales.

• The current ratio has shown in a fluctuating trends as 0.08, 0.07, 0.09, 0.05, 0.04

during 2014 to 2018. It indicates a continuous increase in both current assets and

current liability. As in the above years, it decreased in 2017 eventually increased

in 2018.

• The Quick Ratio is also in a fluctuating trend throughout the period 2014- 2018

resulting as 20.38, 14.45, 14.16, 20.53, 22,.84 respectively. The company’s

present liquidity position is satisfactory.

• Comparing net sales to net Total assets, the Total Asset Turnover Ratio of the

company increased in 2015 from 2014 which means that the company is doing an

effective job of generating sales and increasing its return but it started to decrease

in nex6 years i.e. in 2016 which means the business is over invested in assets.

pg. 85
 SUGGESTIONS
AND
RECOMMENDATIONS

pg. 86
pg. 87
RECOMMENDATIONS

• MANAGEMENT DISCUSSION AND ANALYSIS gives investors a better

understanding of what the BANK Performance and usually points out some key
areas where it performed well.
• It should enhance its employee’s efficiency, more training needed to its
employees in order to increase its production capacity and minimize mistake
while performing the task more safety precaution need to implement to the
employees.

pg. 88
CONCLUSION

pg. 89
 Conclusion

Summer preparing is a best case for a student to find out about the organization
working, corporate culture under which he/she is working the capacities. The
project that I undertook in my INDUSIND BANK LTD. provided me a good experience
of financial avenues like profit & loss, balance sheet, cash flow statements and related
activities. It was a good experience for me as it helped me enhance my knowledge and at
the same time it was very beneficial for the company.

Compiling, analyzing, and understanding financial statements will provides bank one of
the most important tools for reducing the considerable risk involved in starting and
growing the business. The comparison of financial ratios to industry standards is,
perhaps, one of the best uses of financial information, as it allows the bank to compare
the performance of its business with its competitors.

In addition to providing information to bank critical for their own decision making, the
accuracy of financial statements will impact the business’ tax obligations and
opportunities to obtain equity and/or debt financing. Bank has got the opportunity to
compare its financial ratios with banking industry standards to increase their equity and
provide better interest and services to its customers.

It is found that the company has a sound and effective policy and its performance is
good. The company managed to post good profit. It is competing well at the domestic as
well as the international level only because of its efficient & effective management.

It is contributing well in the development of the country and as per the trend, it will
continue to perform and contribute to the whole nation. The well management of
financial ratio & its working capital management system is good due to effective and
optimum utilization of available finance and human resources of a company.

pg. 90
pg. 91
LIMITATION OF
THE STUDY

pg. 92
LIMITATION OF THE STUDY:-

• The accuracy of the financial information largely dependents on how accurately

financial statements are prepared. If their preparation is wrong, the information
obtained from their analysis will also be wrong which may mislead the user in
making decisions.

• Since financial statements are prepared by using historical financial data

therefore, the information derived from such statements may not be effective in
corporate planning, if the previous situation does not prevail.

• Then financial statement analysis provides only quantitative information about the
company’s financial affairs. However, it fails to provide qualitative information
such as management labour relation, customer’s satisfaction, the management’s
skills and so on which are also equally important for decision making.

• The skills used in the analysis without adequate knowledge of subject matter may
lead to negative direction. Similarly, biased attitude of the analyst may also lead
to wrong judgment and conclusion.

• Time limitation. Two month was not enough to analyse the exact financial performance
of the bank.

pg. 93
BIBLIOGRAPHY

pg. 94
BIBLIOGRAPHY

Books referred:

➢ Pandey, I.M., Finanacial Management, Vikas publishing House Private Limited,

Tenth Edition, 2011.
➢ Kothari C.R., Research Methodology, New Age International Publishers, Second
Revised Edition 2004.
➢ K h a n M . Y , J a i n P . K “ M a n a g e m e n t A c c o u n t i n g ” , Ratios and there
formulations”.
➢ G u p t a S . P . , “ Business Statistics “ From here I found the information
regarding correlation , trend and statistical tools”.
➢ Chandra Prasanna , “Fundamental of Financial Management “this book helped me
to analyse the balance sheet , how can we say that the firm is going well or not”.

Other reference:

❖ http://www.moneycontrol.com
❖ www.indusind.com
❖ www.paisabazar.com
❖ www.rbi.org
❖ www.google.com

pg. 95