Punjab National Bank
INTRODUCTION
A commercial Bank is a financial institution which runs purely for the benefit of the people. It is a business venture working for providing services to boost up the economy of a nation. Bank plays a vital role by playing the role of an intermediary between the saver group and the investing group of the economy. The saver group deposits their earnings and savings in commercial banks for the purpose of getting back their savings with interest as and when they require. The bank accepts deposits from the public for the purpose of lending or investment in the industry or trade and thereby boosting up the nation’s economy. Since the banker is carrying his business with other people’s money, he cannot be reckless in investing his funds. So the bank has to build up its resources in such a way that it will have adequate income to pay interest at the prescribed rates to different kind of depositors, meet establishment expenses, build reserves, pay dividend to the shareholders etc. Further the banker cannot be free in deciding the manner in which the funds are to be deployed. The legal requirements, directions issued by RBI and other social obligations consistent with the national objectives are very relevant to the operations of a bank. So in order to obtain the goals of the bank, their financial resource must be utilised affectively. Financial analysis is necessary to understand the financial performance. Financial statements are prepared to depict financial position of a concern. For the present study Punjab National Bank (PNB) has been selected. The reason for selecting PNB is that it is the leading Nationalised Bank in India after SBI. It became the first Nationalised Bank to book Rs. 1000 crore as net profit in single quarter of Oct-Dec 2008. The bank achieved 100% Core Banking Solution (CBS) even by the year 2008.
Objectives of the Study The study aims to:
Examine earning capacity,
Determine short term
A commercial Bank is a financial institution which runs purely for the benefit of the people. It is a business venture working for providing services to boost up the economy of a nation. Bank plays a vital role by playing the role of an intermediary between the saver group and the investing group of the economy. The saver group deposits their earnings and savings in commercial banks for the purpose of getting back their savings with interest as and when they require. The bank accepts deposits from the public for the purpose of lending or investment in the industry or trade and thereby boosting up the nation’s economy. Since the banker is carrying his business with other people’s money, he cannot be reckless in investing his funds. So the bank has to build up its resources in such a way that it will have adequate income to pay interest at the prescribed rates to different kind of depositors, meet establishment expenses, build reserves, pay dividend to the shareholders etc. Further the banker cannot be free in deciding the manner in which the funds are to be deployed. The legal requirements, directions issued by RBI and other social obligations consistent with the national objectives are very relevant to the operations of a bank. So in order to obtain the goals of the bank, their financial resource must be utilised affectively. Financial analysis is necessary to understand the financial performance. Financial statements are prepared to depict financial position of a concern. For the present study Punjab National Bank (PNB) has been selected. The reason for selecting PNB is that it is the leading Nationalised Bank in India after SBI. It became the first Nationalised Bank to book Rs. 1000 crore as net profit in single quarter of Oct-Dec 2008. The bank achieved 100% Core Banking Solution (CBS) even by the year 2008.
Objectives of the Study The study aims to:
Examine earning capacity,
Determine short term