CHAPTERS SIZE-WISE PERFORMANCE OF OLD PRIVATE SECTOR BANKS

In the present chapter an attempt is made to study the size-wise performance of the old private sector banks group in ttie beginning of reform and the post reform period. The size of die old private sector banks is defined on ihe basis of average total assets of the old private sector banks group. The banks whose total assets are above than the average total assets of the old private sector banks group is called a large bank and the banks whose total assets are below than the average total assets of the old private sector banks group is called a small bank.

According to this definition, there were seven large banks and ten small banks in die old private sector banks group in the beginning of banking sector refoim i. e. 1990-91 (average of 1989-90 & 1990-91). Li the post reform year i.e. 2003-04 (average of 2002-03 and 2003-04). The only difference is that one bank is changed during tlie two time periods of the study. Tlie seven large banks in 1990-91 year were: Bank of Raiasthan Ltd., Federal Bank Ltd., Jammu & Kashmir Bank Ltd., Kamataka Bank Ltd., Sangli Bank Ltd., South Indian Bank Ltd. and United Western Bank Ltd. The remaining ten banks in the same yeani in the old private sector were: Bharat Overseas Bank Ltd., Cadiohc Syrian Bank Ltd., City Union Bank Ltd., Dhanalakshmi Bank Ltd., Karur Vysya Bank Ltd., Lakshmi Vilas Bank Ltd., Lord Krislma Bank Ltd., Nainital Bank Ltd., Ratuakar Bank Ltd. and Tamihiad Mercantile Bank Ltd. This size-wise classification of old private sector banks group in 1990-91 is also apphcable for the ratios of Net NPA and CAR where period is diiferent i.e. 1996-97 (average of 1995-96 and 1996- 97).

In the post reform year 2003-04, Sangh Bank Ltd. excluded firom tiie large old private sector banks group and included in the small old private sector banks

198 group while Kanir Vysya Bank Ltd. inclxided in the large old private sector banks group from flie small old private sector banks group. Otherwise all banks from small as well as large old private sector banks groups remained the same in bodi tlie periods i.e. 1990-91 and 2003-04.

8.1 Return on Assets

Table 8.1 exhibits size-wise Return on Assets ratio of the old private sector banks group. In 1990-91, the average Return on Assets ratio of the small size banks group is better than the large size banks group in the old private sector banks group. In 1990-91, ROA was flie hi^est for Dhanlakshmi Bank Ltd. and Lord Krishna Bank Ltd. while it was the zero for Karur Vysya Bank Ltd. and Tamilnad Mercantile Bank Ltd. in the small size old private sector banks group. In 1990-91, 6 out of 10 banks had above average ROA ratio in tfie small size old private sector banks group. These banks were: BhOB, CUB, KVB, LVB, RB and TMB. The remaining four banks had below average ROA in the same year. These banks were: CSB, DB, LKB and NB.

In 1990-91, 6 out of 7 banks had above average ROA in the large size pubtic sector banks group. Tliese banks were; BOR, FB, JKB, KB, SB and UWB. The remaining one bank i. e. SIB had below average ROA in this year. In 1990- 91, ROA ratio was the highest for Kamataka Bank Ltd. while it was the zero for South Indian Bank Ltd.in the large size old private sector banks group.

In 2003-04, the average Return on Assets ratio of the large size old private sector banks grovp was better than the small size old private sector banks groiq). In 2003-04, ROA ratio was the highest for Karur Vysya Bank Ltd. and it was die lowest for United Western Bank Ltd. in the large size pubUc sector bank group. In 2003-04, 3 out of 7 banks had above average ROA in the large size old private sector banks group. These banks were: JKB, KB and KVB. The remaining four

199 banks had below average ROA in the same year. These banks were: BOR, FB, SIB and UWB.

In 2003-04, 7 out of 10 banks had above average in the small size old private sector banks group. These banks were: BhOB, CSB, CUB, LKB, NB, KB and TMB. The remaining 3 banks i. e. DB, LVB and SB had below average ROA in this year. In 2003-04, ROA was the highest for City Union Bank Ltd. while it was the lowest for Sangli Bank Ltd. in the small size old private sector banks group.

Table 8.1 Size-wise performance of Old Private Sector Banks -Return on Assets SmaO Banks Large Banks No Name of tte Bank 1990-'91 No Name of die Bank 1990-'91 1 Bharat Overseas Bank Ltd. 0.004 1 Bank of Rajasthan Ltd. 0.002 2 Catholic Syrian Bank Ltd. 0.001 2Fedaa] Bank Ltd. 0.001 3 City Union Bank Ltd. 0.004 3 Jammu & Kashmir Bank Ltd. 0.001 4 Dhanalakshmi Bank Ltd. 0.000 4Kamataka Bank Ltd. 0.003 5 KanirVysya Bank Ltd. 0.007 S Sangli Bank Ltd. 0.001 6 Lakshmi Vilas Bank Ltd. 0.003 6Soudi Indian Bank Ltd 0.000 7 Lord Krishna Bank Ltd. 0.000 7 United Western Bank Ltd. O.OOl 8 Nainitat Bank Ltd. 0.002 9 Ratnakar Bank Ltd. 0.003 10 Tamilnad Mercantile Bank Ltd. 0.007 Average of Small Banks 0.003 Average of Large Banks 0.001 Name of the Bank 2003-'04 Name of the Bank 2003-«04 I Bharat Overseas Bank Ltd. 0.012 1 Bank of Rajasthan Ltd. 0.009 2 Catholic Syrian Bank Ltd. 0.012 2Federa] Bank Ltd. 0.008 3 City Union Bank Ltd. 0.015 3 Jammu & Kashmir Bank Ltd. 0.019 4 Dhanalakshmi Bank Ltd. 0.007 4Kamataka Bank Ltd. 0.012 S Lakshmi Vilas Bank Ltd. 0.010 5Karur Vysya Bank Ltd. 0.021 6 Lord Krishna Bank Ltd. 0.011 6South Indian Bank Ltd. 0.009 7 Nainital Bank Ltd. 0.012 7 United Western Bank Ltd. 0.004 8 Ratnakar Bank Ltd. 0.011 9 Sangli Bank Ltd. 0.006 10 Tamilnad Mercantile Bank Ltd. 0.014 Average of Small Banks 0.011 Average of Large Banks 0.012

200 8.2 Return on Equity

Table 8.2 presents size-wise Return on Equity (ROE) ratio of ttie old private sector banks group. In 1990-91, average Return on Equity ratio of the large size old private sector banks group v(^as better than small size old private sector banks group. Li 1990-91, ROE vk'as the hi^est for Karur Vysya Bank Lid. and it was the lowest for Lord Krishna Bank Ltd. in the small size old private sector banks group. In 1990-91, 5 out of 10 banks had above average ROE ratio in the small size old private sector banks group. These banks were: BhOB, CUB, KVB, LVB and TMB. The remaining five banks had below average ROE in the same year. These banks were: CSB, DB, LKB, NB and RB.

Table 8.2 Size-wise performance of Old Private Sector Banks -Return on Equity Small Banks Large Banks No. Name of die Bank 199a-'91 No.Name of the Bank 1990-*91 1 Bharat Overseas Bank Ltd. 0.203 1 Bank of Rajasthan Ltd. 0.223 2 Catholic Syrian Bank Ltd. 0.304 2Federal Bank Ltd. 0.204 3 City Union Bank Ltd. 0.245 3 Janunu& Kashmir Bank Ltd. 0.262 4 Dhanalakshmi Bank Ltd. 0.127 4Kaniataka Bank Ltd. 0.189 5 Lakshmi Vilas Bank Ltd. 0.179 5 Kanir Vysya Bank Ltd. 0.225 6 Lord Krishna Bank Ltd. 0.192 6 South Indian Bank Ltd. 0.218 7 Nainital Bank Ltd. 0.158 7United Western Bank Ltd. 0.100 S Ratnakar Bank Ltd. 0.191 9 Sangli Bank Ltd. 0.143 10 Tamilnad Mercantile Bank Ltd. 0.165 Average of Small Banks 0.190 Average of Large Banks 0.203 Name of the Bank 2003-'04 Name of the Bank 2003-*04 1 Bharat Overseas Bank Ltd. 0.263 1 Bank of Rajaslhan Ltd. 0.219 2 Catholic Syrian Bank Ltd. 0.130 2Federal Bank Ltd. 0.168 3 Ci^ Union Bank Ltd. 0.238 3 Jammu & Kashmir Bank Ltd. 0.047 4 Dhanalakshmi Bank Ltd. 0.060 4Kamataka Bank Ltd. 0.240 5 Kanir Vysya Bank Ltd. 0.383 5 Sangli Bank Ltd. 0.196 6 Lakshmi Vilas Bank Ltd. 0.264 6 Soudi Indian Bank Ltd. 0.057 7 Lord Krishna Bank Ltd. 0.014 7United Western Bank Ltd. 0.128 8 Nainital Bank Ltd. 0.135 9 Ratnakar Bank Ltd. 0.181 10 Tamilnad Mercantile Bank Ltd. 0.224 Average of Small Banks 0.189 Average of Large Banks 0.150

201 In 1990-91, 4 out of 7 banks had above average in the large size old private sector banks group. These banks were: BOR, FB, KB and SB. The remaining 3 banks i. e. JKB, SIB and UWB had below average ROE in tiiis year. In 1990-91, ROE was tiie higliest for Kaniataka Bank Ltd. while it was tfie lowest for Jammu and Kashmir Bank Ltd. in the large size old private sector banks group.

In 2003-04, average Return on Equity ratio of the small size banks group was better than the large size old private sector banks group. In 2003-04, ROE was the highest for Jammu and Kashmir Bank Ltd. and it was the lowest for United Western Bank Ltd. in the large size old private sector banks group. In 2003-04, 5 out of 7 banks liad above average ROE ratio in the large size old private sector banks group. These banks were: BOR, FB, JKB, KVB and SIB. The remaining two banks had below average ROE in the same year. These banks were: KB and UWB.

In 2003-04, 5 out of 10 banks had above average in the small size old private sector banks group. These banks were: BhOB, CSB, CUB, LKB and RB. The remaining five banks i. e. DB, LVB, NB, SB and TMB had below average ROE ratio in this year. In 2003-04, ROE ratio was the highest for Cathotic Syrian Bank Ltd. while it was the lowest for Dhanlakshmi Bank Ltd. in the small size old private sector banks group.

83 Net Interest Margin

Table 8.3 shows size-wise Net Interest Margin (NIM) ratio of the old private sector banks group. In 1990-91, average Net Interest Margin ratio of tiie small size old private sector banks group was better than the large size old private sector banks group. In 1990-91, NIM was the hi^est for Dhanlakshmi Bank Ltd. and it was the lowest for Bharat Overseas Bank Ltd. in the small size old private sector banks group. In 1990-91, 4 out of 10 banks liad above average NIM tlie in

202 small size old private sector banks group. These banks were: CSB, DB, KVB and LKB. The remaining 6 banks had below average NIM in tiie same year. These banks were: BhOB, CUB, LVB, NB, RB and TMB.

In 1990-91, 3 out of 7 banks had above average in ttie large size public old private sector banks group. These banks were: FB, KB and SIB. The remaining four banks i. e. BhOB, JKB, SB and UWB had below average NIM in this year. In 1990-91, NIM was the highest for South Indian Bank Ltd. while it was the lowest for Jammu and Kashmir Bank Ltd. in the large size old private sector banks group.

Table 8.3 Size-wise performance of Old Private Sector Banks -Net Interest Margiii SmaD Banks Large Banks No. Name of the Bank 1990-'91 No. Name of die Bank 1990-'91 1 Bharat Overseas Bank Ltd. 0.017 1 Bank of Rajasthan Ltd. 0.022 2 Catholic Syrian Bank Ltd. 0.032 2Federa] Bank Ltd. 0.030 3 City Union Bank Ltd. 0.026 3 Jammu & Kashmir Bank Ltd. 0.016 4 Dhanalakshmi Bank Ltd. 0.037 4Kaniataka Bank Lbl. 0.026 S KaruT Vysya Bank Ltd. 0.031 5 Sangli Bank Ltd. 0.022 6 Lakshmi Vilas Bank Ltd. 0.025 6Soudi Indian Bank Ltd. 0.033 7 Lord Krishna Bank Ltd. 0.036 7United Weston Bank Ltd. 0.024 8 Nainttal Bank Ltd. 0.027 9 Ratnakar Bank Ltd. 0.026 10 Tamilnad Iiiercantile Bank Ltd. 0.025 Average of Small Banks 0.028 Average of Large Banks 0.025 Name of die Bank 2003-'04 Name of die Bank 2003-'04 1 Bharat Oveiseas Bank Ltd. 0.027 1 Bank of Rajasthan Ltd. 0.025 2 Catholic Syrian Bank Ltd. 0.025 2Federal Bank Ltd. 0.027 3 City Union Bank Ltd. 0.027 3 Jammu & Kashmir Bank Ltd. 0.030 4 Dhanalakshmi Bank Ltd. 0.026 4Kamataka Bank Ltd. 0.018 S Lakshmi Vilas Bank Ltd. 0.021 5Kanir Vysya Bank Ltd. 0.035 6 Lord Krishna Bank Ltd. 0.013 6Soudi hidian Bank Ltd. 0.022 7 Nainitel Bank Ltd. 0.037 7Untted Western Bank Ltd. 0.018 8 Ratnakar Bank Ltd. 0.027 9 Sangli Bank Ltd. 0.024 10 Tamitnad Mercantile Bank Ltd. 0.039 Average of Small Banks 0.027 Average of Large Banks 0.025

203 In 2003-04, the average Net Interest Margin ratio of the small size old private banks group was better tiian the large size old private sector banks group. In 2003-04, NIM was the highest for Tamilnad Mercantile Bank Ltd. and it was the lowest for Lord Krishna Bank Ltd. in tlie small size public old private sector banks group. In 2003-04, 5 out of 10 banks had above average NIM in the small size old private sector banks group. These banks were: BhOB, CUB, NB, RB and TMB. The remaining five banks had below average NIM in the same year. These banks were: CSB, DB, LVB, LKB and SB.

In 2003-04, 4 out of 7 banks had above average in the large size old private sector banks group. These banks were: BOR, FB, JKB and KVB. The remaining three banks i. e. KB, SIB and UWB had below the average NIM in this year. In 2003-04, NIM was flie highest for Karur Vysya Bank Ltd. while it was tibe lowest for Kamataka Bank Ltd. and United Western Bank Ltd. in die large size old private sector banks group.

8.4 Interest Expense Ratio

Table 8.4 reveals size-wise Interest Expense Ratio (lER) of the old private sector banks group. In 1990-91, average Interest Expense Ratio of the small size old private sector banks group was better than tiie large size old private sector banks group. In 1990-91, lER was the lowest for Tamilnad Mercantile Bank Ltd. and it was the lii^est for Bharat Overseas Bank Ltd. in ttie small size old private sector banks group. In 1990-91, 5 out of 10 banks liad above average lER in the small size old private sector banks group. These banks were: BhOB, CSB, CUB, NB and RB. The remaining five banks had below average lER in the same year. These banks were: DB, KVB, LVB, LKB and TMB.

In 1990-91, 4 out of 7 banks had above average lER in the large size old private sector banks group. These banks were: JKB, KB, SB and UWB.The remaining three banks i. e. BOR, FB and SIB had below average lER in this year.

204 In 1990-91, lER was the highest for Janunu and Kashmir Bank Ltd. while it was the lowest for Soudi Indian Bank Ltd. in the large size old private sector banks group.

In 2003-04, the average Interest Expense Ratio of ttie small size banks group was sli^tly better than die large size old private sector banks group. In 2003-04, lER was the highest for Lord Krishna Bank Ltd. and it was the lowest for Nainital Bank Ltd. in the small size old private sector banks group.

Table 8.4 Size-wise performance of Old Private Sector Banks —Interest Expense Ratio Small Banks Large Banks No. Name of the Bank 1990-'91 No. Name of die Bank 1990-*91 1 Bharat Overseas Bank Ltd. 0.647 1 Bank of Rajasthan Ltd. 0.614 2 Catholic Syrian Bank Ltd. 0.600 2 Federal Bank Ltd. 0.595 3 City Union Bank Ltd. 0.591 3 Jammu & Kashmir Bank Ltd. 0.677 4 Dhanalakshmi Bank Ltd. 0.540 4Kaniataka Bank Ltd. 0.634 5 Kanir Vysya Bank Ltd. 0.555 5Sangli Bank Ltd. 0.632 6 Lakshmi Vilas Bank Ltd 0.548 6Soudi Indian Bank Ltd. 0.590 7 Lord Krishna Bank Ltd. 0.521 7United Western Bank Ltd. 0.645 8 Nainital Bank Ltd. 0.622 9 Ratnakar Bank Ltd. 0.643 10 Tamilnad Mercantile Bank Ltd. 0.500 Average of Small Banks 0.577 Average of Large Banks 0.627 Name of the Bank 2003-'04 Name of die Buik 2003-'04 I Bhaiat Overseas Bank Ltd. 0.517 1 Bank of Rajasthan Ltd. 0.472 2 Catholic Syrian Bank Ltd. 0.519 2Fedefal Bank Ltd. 0.543 3 City Union Bank Ltd. 0.55 3 Jammu & Kashmir Bank Ltd. 0.509 4 Dhanalakshmi Bank Ltd. 0.506 4Kamataka Bank Ltd. 0.595 5 Lakshmi Vilas Bank Ltd. 0.556 SKanir Vysya Bank Ltd. 0.508 6 Lord Krishna Bank Ltd. 0.572 6Soud] Indian Bank Ltd. 0.547 7 Nainital Bank Ltd. 0.489 7United Western Bank Ltd. 0.574 8 Itatnakar Bank Ltd. 0.545 9 Sangli Bank Ltd. 0.54 10 Tamiinad Mercantile Bank Ltd. 0.549 Averaee of SmaU Banks 0JS34 Average of Large Banks 0.53S

205 Li 2003-04, 4 out of 10 banks had below average lER in the small size old private sector banks group. These banks were: BhOB, CSB, DB and NB. The remaining six. banks had above average lER in the same year. These banks were: CUB, LVB, LKB, RB, SB and TMB.

In 2003-04, 4 out of 7 banks had above average lER in the large size old private sector banks group. These banks were: FB, KB, SIB and UWB. The remaining 3 banks i. e. BOR, JKB and KVB had below the average lER in ttiis year. In 2003-04, lER was the hi^est for Kamataka Bank Ltd. v^ile it was die lowest for Bank of Rajasdian Ltd. in the large size old private sector banks group.

8.5 Non-Interest Expense Ratio

Table 8.5 presents size-wise Non-Interest Expense Ratio of the old private sector banks group. In 1990-91, the average Non-Interest Expense Ratio (Non- lER) of the large size old private sector banks group was better tlian the small size old private sector banks groiq). In 1990-91, 3 out of 7 banks had above average Non-IER in the large size old private sector banks group. These banks were: BOR FB and SIB. The remaining four banks i. e. JKB, KB, SB and UWB had below average Non-IER in fliis year. In 1990-91, Non-IER was the highest for South Indian Bank Ltd. while it was the lowest for Jammu and Kashmir Bank Ltd. in the large size old private sector banks group.

In 1990-91, Non-IER was the lowest for Bharat Overseas Bank Ltd. and it was Hoe hi^est for Lord Krishna Bank Ltd. in the small size old private sector banks group. In 1990-91, 5 out of 10 banks had above average Non-IER in the small size old private sector banks group. These banks were: CSB, DB, LVB, LKB and TMB. The remaining five banks had below average Non-IER in the same year. These banks were: BhOB, CUB, KVB, NB and RB.

206 Table 8.5 Size-wise performance of Private Sector Banks -Non-Interest Eipense Ratio Small Banks LdtrgjtBanisa No. Name of the Bank 1990-*91 No.Name of (he Bank 1990.*9l 1 Bharat Overseas Bank Ltd 0.291 1 Bank of Rajasthan Ltd. 0.351 2 Catholic Syrian Bank Ltd. 0.386 2Federa] Bank Ltd. 0.386 3 City Union Bank Ltd. 0.353 3 Jammu & Kashmir Bank Ltd. 0.298 4 Dhanalakshmi Bank Ltd. 0.455 4Karaataka Bank Ltd. 0.332 5 KanirVysya Bank Ltd. 0.369 5 Sangli Bank Ltd. 0.347 6 Lakshmi Vilas Bank Ltd. 0.408 6South Indian Bank Ltd. 0.406 7 Lord Krishna Bank Ltd. 0.476 7 United Western Bank Ltd. 0.339 8 Nainital Bank Ltd. 0.346 9 Ratnakar Bank Ltd. 0.317 10 Tamilnad Mercantile Bank Ltd. 0.408 Average of Small Biuiks 0381 Avcnisc of Large Banks 0351 Name of the Bank 2003-*04 Name of (he Bank 2003-^04 1 Bhaiat Overseas Bank Ltd. 0.242 1 Bank of Rajasdian Ltd. 0.266 2 Catholic Syrian Bank Ltd. 0.253 2 Federal Bank Ltd. 0.178 3 City Union Bank Ltd. 0.134 3 Janunu & Kashmir Bank Ltd. 0.156 4 Dhanalakshmi Bank Ltd. 0.236 4Kamataka Bank Ltd. 0.135 5 Lakshmi Vilas Bank Ltd. 0.208 5 Kanir Vysya Bank Ltd. 0.190 6 Lord Krishna Bank Ltd. 0.209 6 South Indian Bank Ltd. 0.191 7 Nainital Bank Ltd. 0.303 7United Western Bank Ltd. 0.203 8 Ratnakar Bank Ltd. 0.243 9 Sangli Bank Ltd. 0.315 10 Tamilnad Mercantile Bank Ltd. 0.181 Averase of Small Banks 0.232 Avcraee of Large Banks 0.1S8

In 2003-04, the average Non-IER of the large size banks group was better than the small size old private sector banks group. In 2003-04, 4 out of 7 banks liad above average Non-IER in the large size old private sector banks group. These banks were: BOR, KVB, SIB and UWB. The remaining three banks i. e. FB, JKB and KB had below average Non-IER in this year. In 2003-04, Non- IER was the hi^est for Bank of Rajasthan Ltd. while it was the lowest for Kamataka Bank Ltd. in tlie large size old private sector banks group.

In 2003-04, Non-IER was the hi^est for Sangli Bank Ltd. and it was the lowest for City Union Bank Ltd. in the small size old private sector banks group.

207 in 2003-04, 6 out of 10 banks had above average Non-BER in the small size old private sector banks group. These banks were: BhOB, CSB, DB, NB, RB and SB. The remaining 4 banks had below average Non-IER in ttie same year. These banks were: CUB, LVB, LKB and TMB.

8.6 Non-Interest Margin

Table 8.6 presents size-wise Non-Interest Margin of the old private sector banks group. In 1990-91, die average Non-Interest Margin (Non-IM) of the large size old private sector banks group was better than the small size old private sector banks group. In 1990-91, 4 out of 7 banks had above average Non-IM in the large size old private sector banks group. These banks were: BOR, JKB, SB and UWB. The remaining three banks i. e. FB, KB and SIB had below average Non-IM ratio in this year. In 1990-91, Non-IM ratio was the highest for Jammu and Kashmir Bank Ltd. while it was the lowest for South Indian Bank in the large size old private sector banks group.

In 1990-91, Non-IM was tiie lowest for Dhanlakshmi Bank Ltd. and it was the hi^est for Bharat Overseas Bank Ltd. in fte small size old private sector banks group. In 1990-91, 7 out of 10 banks had above average Non-IM ratio in flie small size old private sector banks group. These banks were: BhOB, CUB, KVB, LVB, NB, RB and TMB. Thr remaining three banks had below average Non-IM ratio in the same year. These banks were: CSB, DB and LKB.

In 2003-04, the average Non-Interest Expense Ratio (Non-IM) ratio of die large size old private banks group was better than the small size sector banks group. In 2003-04, 3 out of 7 banks had above average Non-IM in the large size old private sector banks group. These banks were: FB, SIB and UWB, The remaining four banks i. e. BOR, JKB, KB and KVB had below average Non-IM ratio in flus year. In 2003-04, Non-IM was the lowest for Karur Vysya Bank Ltd.

208 while it was the highest for Federal Bank Ltd. in the large size old private sector banks group.

Table 8.6 Size-wise performance of Private Sector Banks -Non-Interest Margin Small Banks Large Bania No. Name of the Bank 1990-'91 No.Name of ttw Bank 199(l-'91 1 Bhaiat Overseas Bank Ltd. -0.012 I Bank of Rajasthan Ltd. -O.Ol 9 2 Catholic Syrian Bank Ltd. -0.030 2Federal Bank Ltd. -0.028 3 City Union Bank Ltd. -0.021 3 Janiniu& Kashmir Bank Ltd. -0.01 S 4 Dhanalakshmi Bank Ltd. -0.037 4Kaniataka Bank Ltd. -0.023 5 KanirVysya Bank Ltd. -0.023 5 Sangli Bank Ltd. -0.02 6 Lakshmi Vilas Bank Ltd. -0.021 6 Soudi Indian Bank Ltd. -0.033 7 Lord Krishna Bank Ltd. -0.036 7United Western Bank Ltd. -0.022 8 Nainital Bank Ltd. -0.024 9 Ratnakar Bank Ltd. -0.023 10 Tamilnad Mercantile Bank Ltd. -0.017 Average of Small Banks -0.024 Average of Large Banks -0.022 Name of the Bank 2003-04 Name of the Bank 2003-04 1 Bharat Overseas Bank Ltd. -0.007 1 Bank of Rajasthan Ltd. -0.002 2 Catholic Syrian Bank Ltd. 0.000 2 Federal Bank Ltd. 0.006 3 City Union Bank Ltd. 0.006 3 Janiniu& Kashmir Bank Ltd. 0.000 4 Dhanalakshmi Bank Ltd. 0.001 4Kaniataka Bank Ltd. 0.010 5 Lakshmi Vilas Bank Ltd. 0.002 5 Kanir Vysya Bank Ltd. -0.004 6 Lord Krishna Bank Ltd. 0.008 6 Soudi Indian Bank Ltd. 0.004 7 Nainital Bank Ltd. -0.018 7United Weston Bank Ltd. 0.002 8 Ratnakar Bank Ltd. -0.005 9 Sangli Bank Ltd. -0.011 10 Tamilnad Mercantile Bank Ltd. -0.008 Average of Small Banks -0.003 Average of Large Banks 0.002

In 2003-04, Non-IM ratio was ttie hi^est for Lord Krishna Bank Ltd. and it was the lowest for Nainital Bank Ltd. in tiie small size old private sector banks group. In 2003-04,4 out of 10 banks had below average Non-IM ratio in the small size old private sector banks group. These banks were: BhOB, NB, RB and TMB. The remaining six banks had above average Non-IM in the same year. These banks were: CSB, CUB, DB, LVB, LKB and SB.

209 8.7 Profit Margin

Table 8.7 shows size-wise Profit Margin ratio of tiie old private sector banks group. In 1990-91, the average Profit Margni (PM) ratio of the small size old private sector banks group was better than the large size old private sector banks group. In 1990-91, PM ratio was the highest for Tamibiad Mercantile Bank Ltd. and it was the lowest for Lord Krislina Bank Ltd. in the small size old private sector banks group. In 1990-91, 5 out of 10 banks had above average PM ratio in the small size old private sector banks group. These banks were: BhOB, CUB, KVB, LVB and TMB. The remaining five banks had below average PM ratio in the same year. These banks were: CSB, DB, LKB, NB and RB.

Table 8.7 Size-wise performance of Old Private Sector Banks -Profit Margin Ratio Small Banks Large Banks No. Name of the Bank 1990-'91 No.Name of Ae Bank 1990-»91 t Bharat Overseas Bank Ltd. 0.061 1 Bank of Rajasthan Ltd. 0.034 2 Catholic Syrian Bank Ltd. 0.013 2Federal Bank Ltd. 0.018 3 City Union Bank Ltd. 0.054 3 Jammu & Kashmir Bank Ltd. 0.024 4 Dhanalakshmi Bank Ltd. 0.004 4Kamataka Bank Ltd. 0.032 5 Kanir Vysya Bank Ltd. 0.074 SSangli Bank Ltd. 0.019 6 Lakshmi Vilas Bank Ltd. 0.042 6 South Indian Bank Ltd. 0.003 7 Lord Krishna Bank Ltd. 0.001 7Unitod Western Bank Ltd. 0.053 8 Nainital Bank Ltd. 0.031 9 Ratnakar Bank Ltd. 0.039 10 Tamilnad Mercantile Bank Ltd. 0.091 Average of Small Banks 0.041 Average of Large Banks 0.026 Name of the Bank 2003-'04 Name of tiie Bank 2003-'04 I Bharat Overseas Bank Ltd. 0.143 1 Bank of Rajasthan Ltd. 0.107 2 Catholic Syrian Bank Ltd. 0.107 2Federa] Bank Ltd. 0.085 3 City Union Bank Ltd. 0.147 3 Jammu & Kashmir Bank Ltd. 0.21 4 Dhanalakshmi Bank Ltd. 0.063 4Kamataka Bank Ltd. 0.112 S Lakshmi Vilas Bank Ltd. 0.103 SKarur Vysya Bank Ltd. 0.208 6 Lord Krishna Bank Ltd. 0.108 6Soudi Indian Bank Ltd. 0.089 7 Nainital Bank Ltd. 0.127 7United Western Bank Ltd. 0.048 8 Ratnakar Bank Ltd. 0.111 9 Sangli Bank Ltd. 0.071 10 Tamilnad Mercantile Bank Ltd. 0.127 Avemge of Small Banks 0.111 Avenge of Large Banks 0.123

210 In 1990-91, 3 out of 7 banks had above average in the large size old private sector banks group. These banks were: BOR, KB and UWB. The remaining four banks i. e. FB, JKB, SB and SIB had below average PM ratio in tliis year. In 1990-91, PM ratio was the liighest for United Western Bank Ltd. while it was the lowest for South Indian Bank Ltd. in the large size old private sector banks group.

In 2003-04, the average Profit Margin of the large size banks group was better than the smaU size old private sector banks groi^. In 2003-04, 2 out of 7 banks had above average in the large size old private sector banks groiqj. These banks were: JKB and KVB. The remaining five banks i. e. BOR, FB, KB, SEB and UWB had below average PM ratio in this year. In 2003-04, PM ratio was the higjiest for Janunu and Kashmir Bank Ltd. while it was the lowest for United Western Bank Ltd. in the large size old private sector banks group.

In 2003-04, PM ratio was the lowest for Dhanlakshmi Bank Ltd. and it was the hi^est for City Union Bank Ltd. in the small size old private sector banks group. In 2003-04, 5 out of 10 banks had above average PM ratio in the small size old private sector banks group. These banks were: BhOB, CXJB, NB, RB and TMB while five banks were below the average PM ratio in the same year. These banks were: CSB, DB, LVB, LKB and SB.

8.8 Equity MultipUer

Table 8.8 depicts size-wise Equity Multiplier (EM) ratio of the old private sector banks group. In 1990-91, the average Equity Multiplier ratio of flie small size old private sector banks group was better than the large size old private sector banks group. In 1990-91, EM ratio was the higliest for South Indian Bank Ltd. and it was the lowest for Jammu and Kashmir Bank Ltd. in the large size old private sector banks group. In 1990-91, 4 out of 7 banks had above average EM ratio in the large size old private sector banks group. These banks were: FB, SB,

211 SIB and UWB. The remaining three banks had below average EM ratio in the same year. These banks were: BOR, JKB and KB.

In 1990-91, 3 out of 10 banks had above average in the small size old private sector banks group. These banks were: CSB, DB and LVB. The remaining seven banks - BhOB, CUB, KVB, LKB, MB, RB and TMB had below average EM ratio in this year. In 1990-91, EM ratio was the highest for Dhanlakshmi Bank Ltd. and the lowest for Tamilnad Mercantile Bank Ltd. in flie small size old private sector banks group.

Table 8.8 Size-wise performance of Old Private Sector Banks -Eqai^ Mnltiplier Small Banks Large Banks No. Name of die Bank 1990-'91 No.Name of the Bank 1990-'91 1 Bhaiat Overseas Bank Ltd. 55.93 1 Bank of Rajasthan Ltd. 77.51 2 Catholic Syrian Bank Ltd. 93.32 2FederaJ Bank Ltd. 91.70 3 City Union Bank Ltd. 48.57 3 Jammu & Kashmir Bank Ltd. 31.05 4 Dhanalakshmi Bank Ltd. 131.27 4Kamataka Bank Ltd. 77.52 5 Karur Vysya Bank Ltd. 53.49 5 Sangli Bank Ltd. 119.63 6 Lakshmi Vilas Bank Ltd. 72.26 6 South Indian Bank Ltd. 148.47 7 Lord Krishna Bank Ltd. 55.35 7United Western Bank Ltd. 99.22 8 Nainital Bank Ltd. 51.50 9 Ratnakar Bank Ltd. 52.31 10 Tamilnad Mercantile Bank Ltd. 31.35 Average of Small Banks 64.53 Average of SmaD Banks 92J5 Name of the Bank 2003-'04 Name of die Bank 2003-*04 1 Bhaiat Overseas Bank Ltd. 16.82 1 Bank of Rajastfaan Ltd. 23.72 2 Catholic Syrian Bank Ltd. 24.45 2Fedaai Bank Ltd. 23.18 3 City Union Bank Ltd. 15.83 3 Jammu & Kashmir Bank Ltd. 13.40 4 Dhanalakshmi Bank Ltd. 17.88 4Kaniataka Bank Ltd. 15.48 5 Lakshmi Vilas Bank Ltd. 16.76 SKarur Vysya Bank Ltd. 10.45 6 Lord Krishna Bank Ltd. 17.39 6 South Indian Bank Ltd. 23.58 7 Nainital Bank Ltd. 13.00 7United Westom Bank Ltd. 22.49 8 Ratnakar Bank Ltd. 16.45 Old Private Sector Banks 9 Sangli Bank Ltd. 22.86 10 Tamilnad Mercantile Bank Ltd. 20.57 Average of Small Banks ISJSO Avenge of Small Banks 18J90

212 In 2003-04, the average Equity Multiplier ratio of the small size banks group was better dian the large size old private sector banks group. In 2003-04, EM ratio was Aie hi^est for Bank of Rajaslhan Ltd. and it was the lowest for KaruT Vysya Bank Ltd. in the large size old private sector banks group. In 2003- 04, 4 out of 7 banks had above average EM ratio in the large size old private sector banks group. These banks were: BOR, FB, SIB and UW. The remaining three banks had below average EM ratio in the same year. These banks were: JKB,KBandKVB.

In 2003-04, 4 out of 7 banks had above average in the small size old private sector banks group. These banks were: CSB, DB, SB and TMB. The remaining 6 banks i e. BhOB, CUB, LVB, LKB, NB and RB had below average EM ratio in fins year. In 2003-04, EM ratio was the highest for Catholic Syrian Bank Ltd. while it was the lowest for Nainital Bank Ltd. in the small size old private sector banks group.

8.9 Asset Utilisation

Table 8.9 presents size-wise Asset Utilisation (AU) ratio of the old private sector banks group. In 1990-91, the average Asset Utilisation of the large size old private sector banks group was better dian the small size old private sector banks group. In 1990-91, 4 out of 7 banks had above average AU ratio ia the large size old private sector banks group. Tliese banks were: FB, KB, SIB and UWB. The remaining tliree banks (viz. BOR, JKB and SB) had below average AU ratio in this year. In 1990-91, AU ratio was the highest for South Indian Bank Ltd. while it was the lowest for Janunu and Kashmir Bank Ltd. in the large size old pri^^e sector banks group.

In 1990-91, AU ratio was the hi^est for Lord Krishna Bank Ltd. and it was the lowest for City Union Bank Ltd. in the small size old private sector banks group. In 1990-91, 6 out of 10 banks liad above average AU ratio in the small size

213 old private sector banks group. These banks were: CSB, DB, KVB, LVB, LKB and RB. The remaining four banks had below average AU ratio in the same year. These banks were: BhOB, CUB, NB and TMB.

In 2003-04, tiie average Asset Utilisation of die small size old private sector banks group was better than die large size old private sector banks group. In 2003-04, AU ratio was the lowest for Bharat Overseas Bank Ltd. and it was the highest for Catholic Syrian Bank Ltd. in the small size old private sector banks group. In 2003-04, 7 out of 10 banks had above average AU ratio in the small size old private sector banks group. These banks were: CSB, DB, KVB, LVB, LKB and RB. The remaining du-ee banks had below average AU ratio in the same year. These banks were: BhOB, NB and SB.

Table 8.9 Size-wise performance of Old Private Sector Banks -Asset Utilisation Small Banks Large Banks No. Name of die Bank 1990-'91 No. Name of die Bank 1990-»9J 1 Bharat Overseas Bank Ltd. 0.076 1 Bank of Rajasthan Ltd. 0.081 2 Catholic Syrian Bank Ltd. 0.102 2Federal Bank Ltd. 0.099 3 City Union Bank Ltd. 0.008 3 Janunu & Kashmir Bank Ltd. 0.062 4 Dhanalakshmi Bank Ltd. 0.109 4Kamataka Bank Ltd. 0.094 5 KaruT Vysya Bank Ltd. 0.096 5 Sangli Bank Ltd 0.082 6 Lakshmi Vilas Bank Ltd 0.086 6Soudi Indian Bank Ltd 0.104 7 Lord Krishna Bank Ltd. 0.138 7 United Western Bank Ltd. 0.087 8 Nainital Bank Ltd. 0.084 9 Ratnakar Bank Ltd. 0.088 10 Taniilnad Mercantile Bank Ltd. 0.078 Average of Small Banks 0.086 Average of Large Bania 0.087 Name of the Bank 2003-'04 Name of die Bank 2003.*04 1 Bharat Oveiseas Bank Ltd. 0.084 1 Bank of Rajasthan Ltd. 0.087 2 Catholic Syrian Bank Ltd. 0.116 2Federal Bank Ltd 0.103 3 City Union Bank Ltd. 0.108 3 Jammu & Kashmir Bank Ltd 0.093 4 Dhanalakshmi Bank Ltd. 0.111 4Kaniataka Bank Ltd. 0.109 S Lakshmi Vilas Bank Ltd. 0.103 5 Kanir Vysya Bank Ltd. 0.103 6 Lord Krishna Bank Ltd. 0.102 6 South Indian Bank Ltd 0.103 7 Nainital Bank Ltd. 0.095 7 United Western Bank Ltd. 0.092 8 Ratnakar Bank Ltd. 0.103 9 Sangli Bank Ltd. 0.088 10 Tamilnad Mercantile Bank Ltd. 0.115 Averase of Small Banks 0.102 Average of Large Banks 0.099

214 Li 2003-04, 4 out of 7 banks had above average AU in the large size old private sector banks group. These banks were: FB, KB, KVB and SIB. The remaining three banks i. e. BOR, JKB and UWB had below average AU ratio in fliis year. In 2003-04, AU ratio was the liigjiest for Kaniataka Bank Ltd. while it was the lowest for Bank of Rajasthan Ltd. in the large size old private sector bank group.

8.10 Efficiency Ratio

Size-wise Efficiency Ratio (ER) of tiie old private sector banks group is shown ID Table 8.10. In 1990-91, the average EflEiciency Ratio of the small size old private sector banks group was better tliaii die large size old private sector banks group. In 1990-91, the ER ratio was the highest for Lord Krishna Bank Ltd. and it was the lowest for Tamilnad Mercantile Bank Ltd. in the small size pubh'c sector banks group. In 1990-91, 5 out of 10 banks had above average ER ratio in the small size old private sector banks group. These banks were: CSB, DB, LVB, LKB and NB. The remaining five banks had below average ER ratio in the same year. These banks were: BhOB, CUB, KVB, RB and TMB.

In 1990-91, 4 out of 7 banks had above average ER ratio in the large size old private sector banks group. These banks were: FB, SB, SIB, and UWB. The remaining tiiree banks i. e. BOR, JKB and KB had below average ER ratio in Ais year. In 1990-91, ER ratio was the liighest for Soufli Indian Bank Ltd. while it was the lowest for Bank of Rajastlian Ltd. and Kamataka Bank Ltd. in the large size old private sector banks group.

Li 2003-04, the average Efficiency Ratio of die large size banks group was better than the small size old private sector banks group. In 2003-04, 3 out of 7 banks had above average ER in the large size public sector banks group. These banks were: BOR, SIB and UWB. The remaining four banks (viz. FB, JKB, KB and KVB) had below average ER ratio in this year. Li 2003-04, ER ratio was the

215 lowest for Jammu and Kashmir Bank Ltd.while it was the hi^est for Bank of Rajasthan Ltd. in the large size old private sector bank groiq).

In 2003-04, ER ratio was the lowest for City Union Bank Ltd. and it was die highest for Sangli Bank Ltd. in die small size old private sector banks group. In 2003-04, 3 out of 10 banks had above average ER ratio in die small size old private sector banks group. These banks were: BhOB, RB and SB. The remaining 7 banks had below average ER ratio in the same year. These banks were: CSB, CUB, DB, LVB, LKB, NB and TMB.

Table 8.10 Size-wise performance of Old Private Sector Banks -Efficiency Ratio SmaD Banks Large Banks No. Name of the Bank 1990-'91 No. Name of the Bank 1990-^91 I Bhaiat Ovetseas Bank Ltd. 0.825 I Bank of Rajasthan Ltd. 0.91 2 Catholic Syrian Bank Ltd. 0.965 2Federal Bank Ltd. 0.954 3 City Union Bank Ltd. 0.866 3 Jammu & Kashmir Bank Ltd. 0.924 4 Dhanalakshmi Bank Ltd. 0.99 4Karnataka Bank Ltd. 0.91 5 KaruT Vysya Bank Ltd. 0.832 5Sangli Bank Ltd. 0.945 6 Lakshmi Vilas Bank Ltd. 0.906 6 South Indian Bank Ltd. 0.99 7 Lord Krishna Bank Ltd. 0.996 7United Western Bank Ltd. 0.958 8 Nainital Bank Ltd. 0.917 9 Ratnakar Bank Ltd. 0.889 10 Tamilnad Mercantile Bank Ltd. 0.817 Averaee of Small Banks 0.900 Average of Large Banks 0.941 Name of the Bank 2003-04 Name of the Bank 2003-04 1 Bharat Overseas Bank Ltd. 0.502 1 Bank of Rajasthan Ltd. 0.504 2 Catholic Syrian Bank Ltd. 0.484 2Fed»al Bank Ltd. 0.39 3 Ci^ Union Bank Ltd. 0.299 3 Jaimmi & Kashmir Bank Ltd. 0.318 4 Dhanalakshmi Bank Ltd. 0.48 4Kamataka Bank Ltd. 0.335 5 Lakshmi Vilas Bank Ltd. 0.47 5 Karur Vysya Bank Ltd. 0.387 6 Lord Krishna Bank Ltd. 0.49 6 South hidian Bank Ltd. 0.422 7 Nainital Bank Ltd. 0.593 7United Western Bank Ltd. 0.477 8 Ratnakar Bank Ltd. 0.535 9 Sangli Bank Ltd. 0.687 10 Tamilnad Mercantile Bank Ltd. 0.403 Avera^se of Small Banks 0.494 Average of Large Banks 0.405

216 8.11 Overhead Efficiency Ratio

In Table 7.11 size-wise Overhead Efficiency Ratio of the old private sector banks is exlubited. In 1990-91, average Oveihead Efficiency Ratio (OER) of the small size old private sector banks group was better than the large size old private sector banks group. In 1990-91, OER was the hi^est for Lord Krishna Bank Ltel. and it was the lowest for Ralnakar Bank Ltd. in the small size old private sector banks group. In 1990-91,6 out of 10 banks had above average OER in the small size old private sector banks group. These bsmks were: BhOB, CXJB, KVB, LVB, LKB and TMB. The remaining four banks had below average OER in the same year. These banks were: CSB, DB, NB and RB.

Table 8.11 Size-wise performance of Private Sector Banks -Overhead Efficicaacy Ratio Small Banks Large Banks No. Name of the Bank 1990-'91 No.Name of the Bank 1990-*91 I Bharat Overseas Bank Ltd. 0.421 I Bank of Rajasthan Ltd. 0.323 2 Catholic Syrian Bank Ltd. 0.217 2Federal Bank Ltd. 0.243 3 City Union Bank Ltd 0.325 3 Jammu & Kashmir Bank Ltd. 0.180 4 Dhanalakshmi Bank Ltd. 0.247 4 Kamataka Bank Ltd. 0.250 5 KanirVysya Bank Ltd. 0.331 S Sangli Bank Ltd. 0.287 6 Lakshnii Vilas Bank Ltd. 0.390 6Soudi Lidiaii Bank Ltd. 0.215 7 Lord Krishna Bank Ltd. 0.454 7United Western Bank Ltd. 0.230 S Nainital Bank Ltd. 0.163 9 Ratnakar Bank Ltd. 0.160 10 Tamilnad Mercantile Bank Ltd. 0.443 Averase of Small Banks 0315 Average of Large Banks 0.247 Name of the Bank 2003-'04 Name of the Bank 2003-'04 1 Bhaiat Overseas Bank Ltd. 0.629 1 Bank of Rajastfaan Ltd. 0.891 2 Catholic Syrian Bank Ltd. 1.013 2Federal Bank Ltd. 1.054 3 City Union Bank Ltd. 1.418 3 Janimu & Kashmir Bank Ltd. 1.064 4 Dhanalakshmi Bank Ltd. 1.064 4Kamataka Bank Ltd. 1.727 5 Lakshmi Vilas Bank Ltd. 1.127 5 Kanir Vysya Bank Ltd. 0.792 6 Lord Krishna Bank Ltd. 1.410 6South Indian Bank Ltd. 1.245 7 Nainital Bank Ltd. 0.378 7United Western Bank Ltd. 1.121 8 Ratnakar bank Ltd. 0.794 9 Sangli Bank Ltd. 0.585 10 Tamilnad Mercantile Bank Ltd. 0.616 Averase of Small Banks 0.903 Average of Large Banks 1.128

217 In 1990-91, 3 out of 7 banks had above average OER in the large size old private sector banks group. These banks were: BOR, KB and SB. The remaining 4 banks (viz. FB, JKB, SIB and UWB) had below average OER in fliis year. In 1990-91, OER was the higliest for Bank of Rajaslhan Ltd. while it was the lowest for Jammu & Kashmir Bank Ltd. in the large size old private sector banks groiq).

In 2003-04, the average Overiiead Efficiency Ratio of the large size old private sector banks group was better than the small size old private sector banks group. In 2003-04, 2 out of 7 banks had above average OER in the large size old private sector banks group. These banks were: KB and SIB. The remaining S banks (viz. BOR, FB, JKB, KVB and UWB) had below average OER in this year. In 2003-04, OER was the lowest for Kanir Vysya Bank Ltd. while it was the hi^est for Kamataka Bank Ltd. in the large size old private sector banks group.

In 2003-04, OER was the highest for City Union Bank Ltd. and it was the lowest for Nainital Bank Ltd. in the small size old private sector bank group. In 2003-04, 5 out of 10 banks had below average OER in the small size old private sector banks group. These banks were; BhOB, NB, RB, SB and TMB. The remaining five banks had above average OER in the same year. These banks were: CSB, CUB, DB, LVB and LKB.

8.12 Net Non Performing Assets Ratio

Table 8.12 shows size-wise Net Non Performing Assets ratio of the old private sector banks group. In 1996-97, the average Net Non Performing Assets (NNPAs) of the small size old private sector banks group was better than the large size old private sector banks group. In 1996-97, NNPAs was tfie lowest for Karur Vysya Bank Ltd. and it was the higjiest for Nainital Bank Ltd. in the small size old private sector banks group. In 1996-97, 5 out of 10 banks had above average NNPAs ratio in tfie small size old private sector banks group. These banks were:

218 CSB, CUB, LKB, NB and RB. The remaining 5 banks had below average N>flPAs ratio in the same year. These banks were: BhOB, DB, KVB, LVB and TMB.

In 1996-97, 3 out of 7 banks had above average NNPAs in the large size old private sector banks group. These banks were; BOR, SB and UWB. The remaining four banks i. e. FB, JKB, KB and SIB bad below average NNPAs in this year. In 1996-97, NNPAs was the lowest for Kamataka Bank Ltd. while it was tiie highest for Sangli Bank Ltd. in the small size old private sector banks group.

Table 8.12 Size-wise performance of Private Sector Banks -Net NPAs Ratio Small Banks Large Banks No. Name of die Banks 1996-'97 No.Name of die Banks 1996-'97 1 Bharat Overseas Bank Ltd. 2.73 IBank ofRajasthan Ltd. 6.61 2 Catholic Syrian Bank Ltd. 5.50 2Fedaal Bank Ltd. 5.55 3 City Union Bank Ltd. 4.89 3 Jammu & Kashmir Bank Ltd. S.S6 4 Dhanalakshmi Bank Ltd. 3.16 4Kamataka Bank Ltd. 2.74 5 KanirVysya Bank Ltd. L03 5SangU Bank Ltd. 10.77 6 Lakshmi Vilas Bank Ltd 3.42 6South Abidjan Bank Ltd. S.40 7 Lord Krishna Bank Ltd. 6.05 7United Western Bank Ltd. 8.99 8 Nainital Bank Ltd. 11.34 9 Ratnakar Bank Ltd. 7.12 10 Tamilnad Mercantile Bank Ltd. 3.39 Average of die Small Banks 4.86 Average of the SmaH Banks 6.52 Name of die Banks 2003-*04 Name of die Banks 2003.^04 1 Bhaiat Overseas Bank Ltd. 2.78 1 Bank of Rajasthan Ltd. 4.89 2 Catholic Syrian Bank Ltd. 6.27 2Fedraal Bank Ltd. 3.92 3 City Union Bank Ltd. 7.26 3 Jammu & Kashmir Bank Ltd. 1.54 4 Dhanalakshmi Bank Ltd. 8.37 4Kamataka Bank Ltd. 6.15 5 Lakshmi Vilas Bank Ltd. 6.24 SKarurVysya Bank Ltd. 3.22 6 Lord Krishna Bank Ltd. 6.19 6 South Indian Bank Ltd. 5.25 7 Nainital Bank Ltd. 0.00 7United Western Bank Ltd. 9.23 8 Ratnakar bank Ltd. 6.50 9 Sangli Bank Ltd. 6.70 10 Tamilnad Mercantile Bank Ltti. 6.81 Average of the Small Banks 5.71 Average of the Small Banks 4.89

219 In 2003-04, the average Net Non-Performing Assets ratio of Ifae large size old private banks group was better than the smaU size old private sector banks group. In 2003-04, NNPAs ratio was tlie highest for United Western Bank Ltd. while it was the lowest for Jammu & Kashmir Bank Ltd. in the large size old private sector banks group. In 2003-04, 4 out of 7 banks had above average NNPAs ratio in the large size old private sector banks group. These banks were: BOR, KB, SIB and UWB. The remaining fliree banks had below average NNPAs ratio in the same year. These banks were: FB, JKB and KVB.

In 2003-04, 8 out of 10 banks had above average NNPAs ratio in the small size old private sector banks group. These banks were: CSB, CUB, DB, LVB, LKB, RB, SB and TMB. The remaining two banks i. e. BhOB and NB had below average NNPAs ratio in this year. In 2003-04, NNPAs ratio was the lowest for Naimtal Bank Ltd. while it was the highest for Dhanlakshnii Bank Ltd. in the small size old private sector banks group.

8.13 Capital Adequacy Ratio

Table 8.13 presents size-wise Capital Adequacy Ratio of the old private sector banks group. In 1996-97, the average Capital Adequacy Ratio (CAR) of tiie large size old private sector banks group was better than ttie small size old private sector banks group. In 1996-97, 3 out of 7 banks liad below average CAR in the large size old private sector banks group. Tliese banks were: FB, SB and SIB. The remaining four banks i. e. BOR, JKB, KB and UWB had above average CAR in this year. In 1996-97, CAR was the lowest for Sangli Bank Ltd. while it was the hi^est for Jammu and Kashmir Bank Ltd. in the large size old private sector banks group. In 1996-97, CAR was the lowest for Cathohc Syrian Bank Ltd. and it was the highest for Tamifaiad Mercantile Bank Ltd. in the small size old private sector banks group. In 1996-97, 5 out of 10 banks had above average CAR in the large

220 small size old private sector banks group. These banks were: BhOB, KVB, LVB, RB and TMB. The remaining five banks had below average CAR in the same year. These banks were: CSB, CUB, DB, LKB and NB.

In 2003-04, tiie average Capital Adequacy Ratio of the small size old private sector banks group was better than die large size old private sector banks group. In 2003-04,4 out of 10 banks had above average CAR in the small size old private sector banks group. These banks were: BhOB, NB, RB and TMB, The remaining 6 banks (viz. CSB, CUB, DB, LVB, LKB and SB) had below average CAR in diis year. In 2003-04, CAR was the lowest for Caftohc Syrian Bank Ltd. while it was the highest for Tamilnad Mercantile Bank Ltd. in the small size old private sector banks group. Table 8.13 Size-wise performance of Old Private Sector Banks -Capital AdequaQr Ratio Small Banks Large banks No. Name of the Bank 1996-'97 NoJMameoftfaeBank 1996-*97 1 Bhaiat Overseas Bank Ltd 11.54 1 Bank of Rajasthan Ltd. 10.60 2 Catholic Syrian Bank Ltd. 2.38 2 Federal Bank Ltd. 8.78 3 City Union Bank Ltd. 9.36 3 Janunu& Kashmir Bank Ltd. 14.49 4 Dhanalaksluiii Bank Ltd. 9.34 4 Kaniataka Bank Ltd. 12.48 5 Karur Vysya Bank Ltd. 11.84 5 Sangli Bank Ltd. 7.12 6 Lakshmi Vilas Bank Ltd. 10.22 6 Soudi Indian Bank Ltd. 8.27 7 Lord Krishna Bank Ltd. 6.41 7 United Weston Bank Lid. 10.42 S Nainital Bank Ltd. 9.52 9 Ratnakar Bank Ltd. 10.48 10 Tamilnad Mercantile Bank Ltd. 14.26 Average of Small Banks 9.S3 Average of Large Banks 1030 Name of (be Banks 2003-'04 Name of tfae Banks 2003-'O4 1 Bharat Overseas Bank Ltd. 15.06 1 BankofRajasdianLtd. ]].23 2 Catholic Syrian Bank Ltd. 10.90 2 Federal Bank Ltd. 11.35 3 City Union Bank Ltd. 13.65 3 Janimu& Kashmir Bank Ltd. 16.68 4 Dhanalakshmi Bank Ltd. 12.00 4 Karaataka Bank Ltd. 13.23 5 Lakshmi Vilas Bank Ltd. 12.57 5 Karur Vysya Bank Ltd, 17.06 6 Lord Krishna Bank Ltd. 14.75 6 Soudi Indian Bank Ltd. 11.03 7 Nainital Bank Ltd. 19.73 7 United Western Bank Ltd. 10.15 8 Ratnakar Bank Ltd. 15.35 9 Sangli Bank Ltd. 14.31 10 Tamilnad Mercantile Bank Ltd. 19.80 Average of Small Banks 14.81 Average of Large Banks 12.96

221 In 2003-04, Capital Adequacy Ratio was the highest for Kamr Vyasya Bank Ltd. while it was ihe lowest for United Western Bank Ltd. in the large size old private sector banks group. In 2003-04, three out of seven banks had above average Capital Adequacy Ratio in the large size old private sector banks gfoap. These banks were: JKB, KB and KVB. The remaining four banks had below average Capital Adequacy Ratio in die same year. These banks were: BOR, FB, SIB and UWB.

8.14 Conclusion

In 1990-91, the small size banks groiq) performed better in 7 out of 11 indicators whereas the large size banks group performed better in remaining 4 indicators in the old private sector banks group.

hi 2003-04, the small size banks group performed better in 3 out of 11 indicators while tiie large size banks group performed better in 8 indicators in the old private sector banks group.

Thus, in 1990-91, the small size old private sector banks group has p>erformed better than the large size old private sector banks group in majority indicators. On the otfier hand in 2003-04, large size old private sector banks group has performed better tlian the small size banks in majority indicators.

The average Net NPAs ratio was better for the small size banks group in 1996-97 while it was better for the large size banks group in the old private sector banks group in 2003-04.

The average Capital Adequacy Ratio was better for the large size banks group in 1996-97 while it was better for the small size banks group in the old private sector banks group in 2003-04.

222