CHAPTER 4

FINANCIAL
STATEMENTS
FINANCIAL STATEMENTS
4.1 Revenue
4.1.1 Bandhan Bank : Revenue for bandhan bank in 2018 was Rs.
32,081,698,541. There was increase in revenue of 26.1% compared to previous
year 2017.

4.1.2. equitas small bank: Revenue for small equitas bank in 2018 was Rs.
1787.41 crores. There was increase in 25% in the revenue.

4.1.3. Mahindra & Mahindra finance: Revenue for Mahindra finance bank is
7206 crores. There was increase in revenue of 16% compared to previous year.

4.1.4. Bharat financial inclusion: Revenue for bharat financial inclusion in

4.1.5. Ujjivan financial services: Revenue for Ujjivan financial services in

4.2 Ratios:
4.2.1 : Bandhan Bank
Ratios 2018 2017

Profitability Ratios:

1. Net Profit Margin (%) 28.01 28.44

40.26 35.69
 2. Operating Profit Margin (%)

Liquidity Ratios:

1. Current Ratio 0.01 0.01

2. Quick Ratio 42.66 15.09

Interpretation:

1. Net Profit Margin: The net profit margin, also known as net margin, indicates how much net
income a company makes with total sales achieved. A higher net profit margin means that a
company is more efficient at converting sales into actual profit. Therefore, as there is a decrease
of 0.41% in the net profit margin of Bandhan Bank it is not favourable.

2. Current Ratio: The current ratio is a liquidity and efficiency ratio that measures a firm's
ability to pay off its short-term liabilities with its current assets. A higher current ratio is always
more favourable than a lower current ratio because it shows the company can more easily make
current debt payments. Therefore, the current situation is unfavourable for the company.

3. Quick Ratio: The quick ratio is an indicator of company’s short term liquidity. The quick
ratio measures a company’s ability to meet its short-term obligations with its most liquid assets.
Higher the quick ratio, better is company’s liquidity position. Therefore, Bandhan Bank
liquidity position is good.

4.2.2 Equitas Small Bank

1. Net Profit Margin (%) 40.04 38.07

2. Operating Profit Margin (%) 67.18 65.18

Liquidity Ratios:

1. Current Ratio 93.67 163.05

2. Quick Ratio 93.53 162.94

1. Net Profit Margin: The net profit margin, also known as net margin, indicates how much net
income a company makes with total sales achieved. A higher net profit margin means that a
company is more efficient at converting sales into actual profit. Therefore, as there is a increase
of 1.97 in the net profit margin of Equitas small bank, the current situation is favourable.

2. Current Ratio: The current ratio is a liquidity and efficiency ratio that measures a firm's
ability to pay off its short-term liabilities with its current assets. A higher current ratio is always
more favourable than a lower current ratio because it shows the company can more easily make
current debt payments. Therefore, the current situation is not favourable compared to previous
year.

3. Quick Ratio: The quick ratio is an indicator of company’s short-term liquidity. The quick
ratio measures a company’s ability to meet its short-term obligations with its most liquid assets.
Higher the quick ratio, better is company’s liquidity position. Therefore, company’s liquidity
position is not good as compared to previous year.

4.2.3

Ratios 2018 2017

1. Net Profit Margin (%) 8.09 7.34

2. Operating Profit Margin (%) 16.58 15.43

Liquidity Ratios:

1. Current Ratio 1.549 1.632

2. Quick Ratio 0.615 0.911

1. Net Profit Margin: The net profit margin, also known as net margin, indicates how much net
income a company makes with total sales achieved. A higher net profit margin means that a
company is more efficient at converting sales into actual profit. Therefore, as there is a decrease
of 0.76% in the net profit margin of the current situation is not favourable compared to previous
year.

2. Current Ratio: The current ratio is a liquidity and efficiency ratio that measures a firm's
ability to pay off its short-term liabilities with its current assets. A higher current ratio is always
more favourable than a lower current ratio because it shows the company can more easily make
current debt payments. Therefore, the current situation is favourable compared to previous
year.
3. Quick Ratio: The quick ratio is an indicator of company’s short-term liquidity. The quick
ratio measures a company’s ability to meet its short-term obligations with its most liquid assets.
Higher the quick ratio, better is company’s liquidity position. Therefore, company’s liquidity
position is good as compared to previous year.

4.2.4Bharat Financial Inclusion:

1. Net Profit Margin (%) 23.75 18.65

2. Operating Profit Margin (%) 51.82 42.06

Liquidity Ratios:

1. Current Ratio 1.70 1.68

2. Quick Ratio 2.08 2.24

1. Net Profit Margin: The net profit margin, also known as net margin, indicates how much net
income a company makes with total sales achieved. A higher net profit margin means that a
company is more efficient at converting sales into actual profit. Therefore, as there is a decrease
in the net profit margin of Bharat Financial Inclusion, the current situation is favourable
compared to previous year.

2. Current Ratio: The current ratio is a liquidity and efficiency ratio that measures a firm's
ability to pay off its short-term liabilities with its current assets. A higher current ratio is always
more favourable than a lower current ratio because it shows the company can more easily make
current debt payments. Therefore, the current situation is favourable compared to previous
year.

3. Quick Ratio: The quick ratio is an indicator of company’s short-term liquidity. The quick
ratio measures a company’s ability to meet its short-term obligations with its most liquid assets.
Higher the quick ratio, better is company’s liquidity position. Therefore, company’s liquidity
position is not good as compared to previous year.

4.2.3 Ujjivan Financial Services:

Ratios 2018 2017

1. Net Profit Margin (%) 20.10 25.89

2. Operating Profit Margin (%) 18.75 16.98

Liquidity Ratios:

1. Current Ratio 92.38 10.92

2. Quick Ratio 92.36 10.92

1. Net Profit Margin: The net profit margin, also known as net margin, indicates how much net
income a company makes with total sales achieved. A higher net profit margin means that a
company is more efficient at converting sales into actual profit. Therefore, as there is a decrease
of 5.79 in the net profit margin of Ujjivan Financial Services the current situation is not
favourable compared to previous year.

2. Current Ratio: The current ratio is a liquidity and efficiency ratio that measures a firm's
ability to pay off its short-term liabilities with its current assets. A higher current ratio is always
more favourable than a lower current ratio because it shows the company can more easily make
current debt payments. Therefore, the current situation is favourable compared to previous
year.

3. Quick Ratio: The quick ratio is an indicator of company’s short-term liquidity. The quick
ratio measures a company’s ability to meet its short-term obligations with its most liquid assets.
Higher the quick ratio, better is company’s liquidity position. Therefore, company’s liquidity
position is good as compared to previous year.