Review Article
Volume 2 Issue 5
Prasad M and Bijin Philip*
April 26, 2023
DOI : 10.56831/PSEN-02-049
Abstract
Every country's financial system relies on the banking sector. It has an impact on the economy of the country by providing loans, infrastructure, and investment. The banking sector is critical to any country's growth and expansion. Hence this study focuses on the performance assessment of the new-generation South Indian Bank. The financial performance analysis of South Indian Bank involves an evaluation of the Bank's financial health, profitability, and efficiency. This analysis provides valuable insights into the Bank's overall performance and ability to generate sustainable returns for its stakeholders. The Bank's financial performance is evaluated using various financial ratios and indicators, such as Credit- deposit ratio, Investment-deposit Ratio, Cash- deposit ratio, Cost- income ratio, Deposit- cost ratio, Yield on advance ratio, Yield on investments ratio, fixed assets to net-worth Ratio, and other ratios. These ratios are calculated by analyzing the Bank's income statement and balance sheet. The analysis reveals that South Indian Bank has maintained a stable financial position recently, with steady net interest income and profitability growth. The Bank's asset quality has also improved over time, with a reduction in non-performing assets and an increase in the provision coverage ratio. The financial performance analysis of South Indian Bank suggests that the Bank has a stable financial position. Still, it needs to address specific areas of concern to sustain its growth and profitability in the future.
Keywords: Financial performance analysis; Non-Performing Asset; Ratios; Private Sector Bank
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