Corporate Exposure Learning on

THE DHANALAKSHMI BANK LIMITED

THRISSUR

A Study on
AN ANALYSIS OF DEPOSIT SCHEMES AND ADVANCES
SCHEMES IN THE BRANCHES OF
THE DHANALAKSHMI BANK LTD UNDER THRISSUR ZONE
Submitted By

M.B.SMITH
Reg.No. 1CR04MBA39

In partial fulfillment for the award of

MASTER OF BUSINESS ADMINISTRATON DEGREE

Under the guidance of
External guide

Internal guide

Mrs. Vijaya Ananthakrishnan

Mrs. Nisha Rajan

Submitted to
VISVESVARAYA TECHNOLOGICAL UNIVERSITY
BELGAUM

CMR Institute of Technology

#132 AECS Layout, IT Park Road,
Bangalore

ACKNOWLEDGEMENT

I thankfully acknowledge with deep sense of reverence, my gratitude towards

our Director Prof. K. Sankaran, our coordinator Mr. Srikant of CMR Institute of
Technology who has been a constant source of encouragement, who shaped my
career and influenced my professional developments.

I am grateful to Mrs. Vijaya Ananthakrishana (Principal, staff training college,

DLB Ltd) for providing me wonderful opportunity to carry out my project in this
esteemed organization.

I also thank my guide Mrs. Nisha Rajan for her constant support and
encouragement through out this work, which has made this project successful.

Finally, I have all through received all constant encouragement and guidance
from my family and friends to whom I pay my heartfelt gratitude on this
occasion.

Date:

(M B Smith)

Place: Bangalore

1CR04MBA39

CMR INSITUTE OF TECHNOLOGY

# 132, AECS Layout, IT Park Road, Bangalore- 560037
Department of Management

Certificate
Certified that the project work entitled An analysis of deposit schemes and advances
schemes in the branches of DLB Ltd. under Thrissur zone is a bonafide work carried
out by M B Smith (USN: 1CR04MBA39) in partial fulfillment for the award of degree of
Masters in Business Administration of the Visveswaraiah Technological University,
Belgaum during the year 2005. It is certified that all corrections / suggestions indicated
for internal assessment have been incorporated in the report deposited in the department
library. The project report has been approved as it satisfies the academic requirements in
respect of project work prescribed for the award of Masters of Business Administration
Degree.

Signature of the Guide

Signature of HOD

Name of Student

: M B Smith

University Seat Number

: ICRO4MBA39

Signature of Principal

External Viva
Name of Examiners

Signature with date

1.

2.

DECLARATION

I hereby declare that this project report An Analysis Of Deposit

Schemes And Advances Schemes In The Branches Of DLB Ltd. under
Thrissur zone, for the academic year 2004 2006, which has been
submitted in partial fulfillment of the requirements of Master of Business
Administration Degree from Visveswaraiah Technological University, is an
original work carried out by me under the guidance of Mrs. Nisha Rajan.
This project work has not been submitted previously to any other
University or Institution for awarding of any kind of Degree or Diploma.

Date:

M B Smith

Place: Bangalore

1CR04MBA39

CONTENTS
Certificates
Declaration by the Student
Index , List of Tables & List of Graphs
EXECUTIVE SUMMARY
Chapter 1
1.1
1.2

INTRODUCTION
Industry Profile
Company Profile

1
6

1.3
1.4

Product Profile
Operational Concepts

8
13

2.1
2.2

7 S MODEL & SWOT ANALYSIS

Application of 7 S Model
SWOT Analysis

16
21

3.1
3.2
3.3
3.4
3.5
3.6

DESIGN OF THE STUDY

Need of the study
Statement of the problem
Objectives of the Research
Methodology of the research
Scope of the Study
Limitations of the Study

23
23
24
24
25
26

Chapter 4

ANALYSIS AND INTERPRETATION

27

Chapter 5

RESEARCH FINDINGS

69

Chapter 6

SUGGESTIONS AND CONCLUSIONS

70

BIBLIOGRAPHY

72

Chapter 2

Chapter 3

1
2
4

ANNEXURES
Financial Statements
Questionnaire
Weekly Reports

LIST OF TABLES
Table
No.

Table Description

Page
No.

Pattern of current deposit

27

Pattern of savings bank deposit

29

Pattern of Dhanam Plus deposit

31

Pattern of Cumulative deposit Certificate

33

Pattern of Lakshmi Recurring deposit

35

Pattern of Surabhi deposit Scheme

37

Pattern of Insta Money Scheme deposit

39

Pattern of Sree Dhana Chakra deposit Scheme

41

Pattern of Dhanam platinum Jubilee home loan

43

10

Pattern of Dhanam Car Credit

45

11

Pattern of Dhanam Easy Loan

47

12

Pattern of Dhanam Vidhya Credit Scheme

49

13

Pattern of Dhanam Ready Money Loan

51

14

Pattern of Dhanam Medi Equipment Scheme

53

15

Pattern of Dhanam Lease Loan

55

16

Pattern of Dhanam Personal Loan

57

17

Pattern of Assets

59

18

Pattern of Liabilities

61

19

Comparison of the total income

63

20

Comparison of the total expense

65

21

Comparison of the total Profit & Loss

67

LIST OF GRAPHS
Graph
No.

Graph Description

Page
No.

Pattern of current deposit

28

Pattern of savings bank deposit

30

Pattern of Dhanam Plus deposit

32

Pattern of Cumulative deposit Certificate

34

Pattern of Lakshmi Recurring deposit

36

Pattern of Surabhi deposit Scheme

38

Pattern of Insta Money Scheme deposit

40

Pattern of Sree Dhana Chakra deposit Scheme

42

Pattern of Dhanam platinum Jubilee home loan

44

10

Pattern of Dhanam Car Credit

46

11

Pattern of Dhanam Easy Loan

48

12

Pattern of Dhanam Vidhya Credit Scheme

50

13

Pattern of Dhanam Ready Money Loan

52

14

Pattern of Dhanam Medi Equipment Scheme

54

15

Pattern of Dhanam Lease Loan

56

16

Pattern of Dhanam Personal Loan

58

17

Pattern of Assets

60

18

Pattern of Liabilities

62

19

Comparison of the total income

64

20

Comparison of the total expense

66

21

Comparison of the total Profit & Loss

68

1.1 INDUSTRY PROFILE

The Indian Banking Regulation Act of 1949 the term banking as accepting, for the
purpose of lending or investment, of deposits of money from the public, repayable on
demand or otherwise, and withdrawable by cheque, draft, order or otherwise. As per this
act, the term banking includes not only the above mentioned important activities, but
also several other activities, such as the collection of Cheques, drafts and bills, remittance
of funds, acceptance of safe custody of deposits, etc. which are, generally referred to as
subsidiary services.

Types of Banks

A rigid classification of banks is unrealistic. However, it is necessary to have some sort of

classification, because this is the age of specialization, and there is some specialization in
the field of banking also. Further, some sort of classification is quite necessary to
understand the nature and the functions of different types of banks that are operating in a
country.

Generally, banks are classified based on their functions. Based on their functions banks
are classified into six categories.

Commercial Banks

Industrial Banks or Investment Banks

Agricultural Banks

Exchange Banks

Savings Banks

Central Banks
Commercial Banks: Commercial banks are banks that accept deposits from the public
and lend them mainly commerce for short periods. They are also called deposit banks as
they accept deposits from the public and lend them for short periods. Commercial banks
are found all over the world. They dominate the banking system in every country.

Industrial Banks or Investment Banks: Industrial banks are banks that provide block
or fixed capital to industry. They are also called investment banks, as they invest their
funds in subscribing to the shares and debentures of industrial concerns with the object of
providing long-term finance to industries.

Agricultural Banks: Agricultural banks are banks that provide finance to agriculture.
Agricultural banks are found in many countries. In most of the countries, agricultural
banks are organized on co-operative basis. In India, also agricultural banks are organized
on co-operative basis.

Exchange Banks: Exchange banks are banks that finance mainly the foreign exchange
business of a country. They purchase or discount export and import bills and there by
finance the foreign trade of a country.

Savings Banks: Savings banks are special banks that specialize in the mobilization of the
small savings of the middle and low-income groups. In most of the countries, savings
bank business is done by commercial banks and post offices.

Central Banks: A central bank is the highest financial institution of a country. In other
words it is the leader of all other banking and financial institutions found in a country. It
has the monopoly of issuing currency notes. It acts as a banker of the government. It
serves as a bankers bank.

Importance of Banks

The importance of banks in the modern economy cannot be denied. Banks play a
significant role in the economic development of a country.

Banks mobilize the small, scattered and idle savings of the people, and make them
available for productive purposes.

Banks provide a convenient and economical means of payment. The cheque system
introduced by banks is of great help for making payments.

Banks provide a convenient and economical means of transfer of funds from one place to
another. Bank drafts or demand drafts are commonly used for remittance of funds from
one place to another

Banks help trade and commerce, industry and agriculture by meeting their financial
requirements

Banks monetize debts of others. They accept the debts of others, which are not generally,
accepted as money, and in turn, issue demand deposits or bank deposits, which are,
generally accepted as money.

History of Banking

Banking in India has its origin as early as the Vedic period. It is believed that the
transition from money lending to banking must have occurred even before Manu, the
great Hindu Jurist, who has devoted a section of his work to deposits and advances and
laid down rules relating to rates of interest. During the Mogul period, the indigenous
bankers played a very important role in lending money and financing foreign trade and
commerce. During the days of the East India Company, it was the turn of the agency
houses to carry on the banking business.

The General Bank of India was the first Joint Stock Bank to be established in the year
1786. The others, which followed, were the Bank of Hindustan and the Bengal Bank. The
Bank of Hindustan is reported to have continued until 1906 while the other two failed in
the meantime. In the first half of the 19th century the East India Company established
three banks; the Bank of Bengal in 1809, the Bank of Bombay in 1840 and the Bank of
Madras in 1843. These three banks also known as Presidency Banks were independent
units and functioned well. These three banks were amalgamated in 1920 and a new bank,
the Imperial Bank of India was established on 27th January 1921. With the passing of the
State Bank of India Act in 1955, the undertaking of the Imperial Bank of India was taken
over by the newly constituted State Bank of India. The Reserve Bank which is the Central

Bank was created in 1935 by passing Reserve Bank of India Act 1934. In the wake of the
Swadeshi Movement, a number of banks with Indian management were established in the
country namely, Punjab National Bank Ltd, Bank of India Ltd, Canara Bank Ltd, Indian
Bank Ltd, the Bank of Baroda Ltd, the Central Bank of India Ltd. On July 19, 1969, 14
major banks of the country were nationalised and in 15th April 1980 six more commercial
private sector banks were also taken over by the government.

Current Status of banking

Since the nationalization of banks in 1969, the public sector banks or the nationalized
banks have acquired a place of prominence and has since then seen tremendous progress.
The need to become highly customer focused has forced the slow-moving public sector
banks to adopt a fast track approach. The unleashing of products and services through the
net has galvanized players at all levels of the banking and financial institutions market
grid to look anew at their existing portfolio offering. Conservative banking practices
allowed Indian banks to be insulated partially from the Asian currency crisis.

Indian banks are now quoting al higher valuation when compared to banks in other Asian
countries (viz. Hong Kong, Singapore, Philippines etc.) that have major problems linked
to huge Non Performing Assets (NPA s) and payment defaults. Co-operative banks are
nimble footed in approach and armed with efficient branch networks focus primarily on
the high revenue niche retail segments.

The Indian banking has finally worked up to the competitive dynamics of the new
Indian market and is addressing the relevant issues to take on the multifarious challenges
of globalization. Banks that employ IT solutions are perceived to be futuristic and
proactive players capable of meeting the multifarious requirements of the large customers
base. Private banks have been fast on the uptake and are reorienting their strategies using
the internet as a medium The Internet has emerged as the new and challenging frontier of
marketing with the conventional physical world tenets being just as applicable like in any
other marketing medium.

The Indian banking has come from a long way from being a sleepy business institution to
a highly proactive and dynamic entity. This transformation has been largely brought

about by the large dose of liberalization and economic reforms that allowed banks to
explore new business opportunities rather than generating revenues from conventional
streams (i.e. borrowing and lending). The banking in India is highly fragmented with 30
banking units contributing to almost 50% of deposits and 60% of advances. Indian
nationalized banks (banks owned by the government) continue to be the major lenders in
the economy due to their sheer size and penetrative networks which assures them high
deposit mobilization. The Indian banking can be broadly categorized into nationalized,
private banks and specialized banking institutions.

The Reserve Bank of India acts as a centralized body monitoring any discrepancies and
shortcoming in the system. It is the foremost monitoring body in the Indian financial
sector.

The nationalized banks (i.e. government-owned banks) continue to dominate the Indian
banking arena. Industry estimates indicate that out of 274 commercial banks operating in
India, 223 banks are in the public sector and 51 are in the private sector. The private
sector bank grid also includes 24 foreign banks that have started their operations here.
Under the ambit of the nationalized banks come the specialized banking institutions.
These co-operatives, rural banks focus on areas of agriculture, rural development etc.,

1.2 COMPANY PROFILE

THE DHANALAKSHMI BANK LIMITED

VISION OF THE BANK

"A Customer-centric organisation, with a strong national network, leveraging its network
in Kerala, capable of delivering multiple financial products in a cost-effective manner,
using
state of the art technology, engaging a pool of skilled personnel, and ensuring reasonable
value addition to the shareholders and other stakeholders"

BANK PROFILE
The Dhanalakshmi Bank Limited (DLB) headquartered at Thrissur in Kerala, is a
professionally managed bank. Started seven decades back, at a time when banking was
less known to the people. In a high literate state of Kerala, the bank grew in strength over
the years. The Dhanalakshmi Bank has today 166 branches spread over Kerala,
Tamilnadu, Karnataka, Andhra Pradesh, Maharashtra, Gujarat, West Bengal, and New
Delhi. The bank has ambitious plans for growth in branches total business and profits.

Even though started by traditional businessmen, the bank has achieved substantial
sophistication in the various banking services provided. Of the 166 branches, All
branches are classified as NRI branches, All branches are computerized and in the process
of implementing Wide Area Network, ATM's, Any Branch Banking and Cash
Management Services, Any Branch Banking, Tele-banking Internet Banking etc.

The bank is managed by a group of professionals, administrators and businessmen. The

bank has already achieved Capital Adequacy Norms prescribed by the RBI by achieving
13.56% in March 2004.

HISTORY OF THE BANK

The history of Dhanalakshmi Bank Ltd starts from 9th November 1927. It was on this
date the bank was born. The bank was incorporated on 14th November 1927 with a
capital of Rs.11000/-. It had a deposit of Rs.60000/- and advances of Rs.70000/- and just
7 employees. The opening of the Ernakulam and Palghat branches in 1937 and 1944
respectively extended the banks services to the communities beyond Thrissur.

The silver jubilee of the bank was celebrated on 4th December 1952. The sixties of the
previous century paved the way for the consolidation of banking units. Three banks
namely Lakshmi Prasad Bank, Radhakrishna Bank and Parli Bank merged with
Dhanalakshmi bank. The banks spectacular growth during the mid 70 has enabled it to
be included in the second schedule of the Reserve Bank of India. There after the bank
opened branches beyond Kerala state. In the year, 1978 bank celebrated Golden Jubilee.
Also in 1988 bank celebrated Diamond Jubilee.

1.3 PRODUCT PROFILE

The Dhanalakshmi Bank offers a wide range of products and services to its customers.
This wide range of products includes deposit products, credit products, agricultural
products etc. Dhanalakshmi bank also offers some other services like safe deposit lockers,
insurance services etc.

DEPOSIT PRODUCTS OF DHANALAKSHMI BANK

1. Current Deposits: In current account, customers can deposit any amount of money and any number of
times. This is generally meant for persons who are in business line. This is also
known as demand deposits as they are repayable on demand.

2. Savings Bank Deposits: This is meant for middle and low-income groups. The object is to cultivate the habit
of savings in such people, so that it would be useful in future. This type of account is
evidenced by a passbook, which contains rules and regulations governing the account.

3. Term Deposits: a. Dhanam Plus: Dhanam plus is a unique deposit scheme that gives the benefits of both savings bank
and fixed deposits. This is a term deposit of 15 days with automatic renewal and
interest credited at every 15th from the date of opening. Minimum initial deposit is
Rs.5000/-Further remittances are permitted subject to a minimum of Rs.500/-. This
deposit scheme is for individuals either singly or jointly.

b. Dhanam Cumulative Deposit Certificate: This is a term deposit scheme, with quarterly compounding interest, specially for
individuals, firms, corporate bodies, clubs and associations. In this scheme the
depositor is given the benefit of reinvesting the interest in the account, which will
again earn interest at the same rate as deposit account. Initial deposit to be made is
Rs.100/- or as its multiples. The minimum period is 6 months and maximum period is
60 months.

c. Lakshmi Recurring Deposits: This is a term deposit scheme in which the depositor can decide the deposit
installment. The minimum deposit to be made is Rs.50/- or its multiples. The
minimum period of deposit should be 6 months and the maximum deposit period is 60
months. The deposited amount plus the interest will be paid to the depositor in lump
sum on maturity.

d. Surabhi Deposit Scheme: This is a flexible term deposit scheme with the objective of reducing the interest loss
to the client during the event of premature closure. The minimum amount required to
open this account is Rs.25000/-. The deposits are to be made in multiples of Rs.1000/. The minimum time period for the deposit is 15 days to a maximum of 3 years. The
depositor can withdraw the required amount when he is in urgent of fund. Thus loss of
interest is minimum.

e. InstaMoney Deposit Scheme: It is a highly versatile fixed deposit, which doubles the money power of the customer.
This is a fixed deposit with convenience of withdrawal upto 90% by cheque. The
minimum amount to be deposited is Rs.10000/-. The minimum period of the scheme
is 15 days after which the account is automatically renewed and interest compounded.
Maximum period of the scheme is 5 years.

f. Shri Dhana Chakra Deposit Scheme: This is a fixed deposit scheme with maximum facilities and a rate of return higher
than other deposits. Sri dhana chakra deposit scheme can be opened with an initial
deposit of Rs.5000/-. Minimum time period of the scheme is 15 days and the
maximum period is 5 years.

g. Dhanam Senior Citizen: Dhanam senior citizen scheme is a special scheme for the senior citizen. The senior
citizen can earn extra interest for their lifes earnings through this special deposit
scheme.

ADVANCES OFFERED BY DHANALAKSHMI BANK

1. Dhanam Platinum Jubilee Home Loan Advantage: Dhanam platinum jubilee home loan advantage is a new value added service from the
bank to its customers as a part of its platinum jubilee celebration. This is for the
construction or purchase of residential building, and, for the extension with additional
plinth area. Individuals, professionals, businessmen having an annual income not less
than Rs.90000/-, are eligible for this. The maximum loan amount is Rs.20 Lakhs. The
maximum credit period is 15 years.

2. Dhanam Car Credit: This is provided for the purpose of purchasing a brand new car/second hand car of not
more than three years old. Salaried persons, professionals, businessmen etc are
entitled to avail this loan. Maximum loan amount is 7 Lakhs and the credit period is 5
years.

3. Dhana Vidhya Credit Scheme: Dhana vidhya credit scheme is meant for students for the payment of tuition fees,
purchase of books and study materials, payment of hostel fees etc. The students who
are doing higher studies in India and abroad, in some specified discipline are eligible
for this loan.

4. Dhanam Easy Loan: This is a scheme for the National Savings Certificate Holders. The loan is given
against the NSC issued by the local post office. The minimum loan amount is
Rs.5000/-, and the maximum amount is Rs.100000/-. The repayment is to be made
only on maturity.

5. Dhanam Ready Money Loan: This is a loan granted against the mortgage of prime property. The minimum loan
amount is Rs.1 lakhs, and it will be granted to a maximum of Rs.20 lakhs. The
maximum credit period is 5 years. Any person with sufficient repayment capacity
who is ready to mortgage their property can avail this loan.

6. Dhanam Medi Equipment Scheme: -

Dhanam medi equipment scheme is for the medical practitioners, including ayurvedic
doctors, for their professional use. It is given to diagnostic centers or clinics promoted
by qualified doctors singly or jointly with entrepreneurs.

7. Dhanam Lease Loans: This loan is given to the person who has a steady rent on their property, backed with
proper rental agreement. Tenant should be a public sector under taking bank or a
government department.

8. Dhanam Personal Loan: This loan is given to any person for any personal use. The minimum loan amount is
Rs.10000/- and it can be to 2.50 lacs. The repayment period is 60 months.

9. Dhanam Two-Wheeler Loan: This loan is given to persons who are in the age group of 21 55 years. Permanent
employees of government, businessmen, professionals etc are eligible to avail this
loan. The minimum loan amount is Rs.20000/- to a maximum of Rs.60000/-.

10. Dhanam Medi Clinic Finance Scheme: Qualified doctors in any system of medicine can avail this loan. They are entitled to a
maximum of Rs.15 lakhs or 75% of the project cost which ever is lower.

AGRICULTURAL LOANS
a. Dhanam Kissan Vahana: -

Dhanam kissan vahana is given to farmers for the acquisition of two wheelers by
farmers. Farmers who own and cultivate a minimum of 1 acre of land are eligible for
this loan. Minimum loan amount is Rs.20000/- to a maximum of Rs.40000/-.

1.4 OPERATIONAL CONCEPTS

DEPOSITS
Deposits are the amount invested by the customers in the bank. Deposits constitute the
main source of funds for commercial banks. Commercial banks receive deposits from
public on various accounts.

Main types of deposits are :

Current deposit

Savings Bank Deposit

Fixed Deposit

Recurring Deposit

Current Deposit:-

Current deposits are the most important type of bank deposit. They are generally opened
by trading and industrial concerns, public authorities etc. it is also called demand deposits
or demand liabilities. No interest is offered on current deposit, but incidental charges are
claimed by banks from the customer for the work and expenses involved in the
maintenance of the current deposit.

Savings Bank Deposit:-

Savings Bank Deposit is introduced with an intention to promote the habit of saving
among the depositors. The majority of customers in Savings Bank account are middle and
low-income group. Savings Bank Deposit are opened by the customers with a view to
earning interest on their deposits and as there is an opportunity for the bank to utilize the
Savings Bank Deposit profitably

Fixed Deposit:-

Fixed Deposit is also an important type of bank deposit which is invested for a particular
period. In Fixed Deposit, fixed amount is deposited by the customer for a fixed period at a
fixed rate of interest. The deposits can be withdrawn only after the maturity period, so
that they are also called time deposit.

Recurring Deposit:-

Recurring Deposit are mainly aimed for people who have regular monthly income. It is an
innovative form of savings bank deposit. The depositor deposits a fixed sum of money
every month for an agreed period and at the maturity period; he gets back the amount
deposited together with the interest accrued thereon.

ADVANCES
Advances are the funds lent by the bank to its customers for different purposes. Lending
of funds constitutes the main business of commercial banks. The major portion of funds
of commercial banks is employed by way of advances, as advances form the chief source
of profits for banks.

Banks lend funds to public by way of

Loans

Overdraft

Cash Credit

Discounting of Bills

Loans:A loan is a financial arrangement under which an advance is granted by a bank to a

borrower on a separate account called the loan account. The borrower must repay the loan
amount after the agreed period so that It is also called term loan. A loan is granted either
against collateral securities or against the personal security of the borrower. The interest
is charged on the whole amount of the loan sanctioned, irrespective of the amount
actually withdrawn by the borrower.

Overdraft:-

An Overdraft is financial arrangement under which a current deposit holder is permitted

by the bank to overdraw his account. Overdraft is a temporary financial accommodation
to be made use of by the customer occasionally. An Overdraft is granted either against
collateral securities or against the personal security of the borrower. The interest is
charged only on the amount actually overdrawn by the customer.

Cash Credits:-

Cash credit is the amount lend by the bank under which a borrower is allowed an advance
under a separate account called cash credit account, the cash credit is allowed up to a
specified limit called cash credit limit. A cash credit account is like a current deposit, a
running account from which money can be withdrawn and into which money can be

deposited by the borrower frequently. The security for cash credit is agricultural goods
and industrial products.

Discounting of Bills:-

Discounting of Bills is an arrangement under which a bank takes a bill of exchange

maturing within a short period of 60 or 90 days from approved customers and pays him or
credits his current account immediately the present value of the bill.

2.1 MC KINSEYS 7S MODEL

In accordance with Mckinseys 7s model there are seven basic dimensions which
represents the core of managerial activities. These are Levers which executives use to
influence complex and large organization. Obviously, there was a concerted effort on the
part of the originator of the model to coin the managerial variables with words beginning
with the letter S so as to increase the communication power of the model.

The 7s framework for management analysis was developed by Mckinsey and co. 7s
model provides an effective way of analyzing an organization, in terms of dynamic
relationship among 7 key elements namely-Strategy, Structure, System, Style, Staff,
Skills, Shared Values.

1) STRATEGY:
Strategy is about setting corporate goals, defining steps needed to achieve these goals
followed by systematic action and allocation of resources to achieve corporate goals.

Strategy of Dhanalakshmi Bank Ltd is the development of employment through

sophisticated training and simulation programmes and achieves total customer
satisfaction through better service.

2) SYSTEMS:
Systems refers to the procedures such as information systems, manufacturing processes,
budgeting and control processes and competitive advantages present with in organization.

Dhanalakshmi Bank Ltd has good system to control all its activities. Management
provides a better training and development processes to increase the efficiency and
effectiveness of the employees.

3) STYLE:
Within the framework of 7s model, Style refers to the pattern of actions, the way
management behaves and collectively spends its time to achieve organizational goals.

Dhanalakshmi Bank Ltd follows and encourages the policy of participative management
style with their employees. Organization believes and works to develop the organization
by developing its people whom it considers as its invaluable asset.

4) SKILLS:
It includes the distinctive capabilities and the dominant attribute of the enterprise, which
distinguishes it from its competitors.

Qualified and efficient employees at Dhanalakshmi Bank Ltd ensure continuous focused
operations, delivering customer satisfaction.

5) STRUCTURE:
It refers to the organization structure and authority and responsibility relationship
between the various departments.

ORGANIZATIONAL STRUCTURE OF THE DHANALAKSHMI

BANK LTD

CHAIRMAN

GENERAL MANAGER 1

GENERAL MANAGER
2

SENIOR

SENIOR

SENIOR

SENIOR

MANAGER

MANAGER

MANAGER

MANAGER

ZONAL

ZONAL

ZONAL

MANAGER

MANAGER

MANAGER

BRANCH

BRANCH

BRANCH

MANAGER

MANAGER

MANAGER

STAFF

STAFF

STAFF

STAFF

6) STAFF:
It refers to the quality of the people in the enterprise and their socialization into the
organizational culture. Traditionally staff is treated in one of the two ways. Firstly there
will be appraisal systems, pay scales and formal training. Secondly the employee morale,
attitude, motivation and behaviour are considered.

Dhanalakshmi Bank Ltd considers its staff as an invaluable asset, so organization strives
to put right man in the right job, empowering and giving more autonomy to them through
appropriate man power planning and development of participate culture. By keeping

above policy with the staff, the organization is doing the optimum utilization of its
manpower.

7) SHARED VALUES:
Shared Values include the core values, which are the essential guiding principles and
doctrines and core purpose, which encompass the companys business goals, how it
strives to achieve them the values it will uphold. The strategy of Dhanalakshmi Bank Ltd
is stated as customer satisfaction through better service.

2.2 SWOT ANALYSIS

CONCEPT OF SWOT ANALYSIS:The SWOT Analysis is a conceptual framework for a a systematic analysis that facilitates
matching the external threats and opportunities with the internal weakness and strengths
of the organization. It has been common to suggest that the companies identify their
strengths and weakness, as well as the opportunities and threats in the external
environment. However, what is often overlooked is that combining these factors may
require distinct strategic choices. To systematize these choices the concept of SWOT
has been proposed; where

S STRENGTHS
W WEAKNESS
O -- OPPURTUNITIES
T THREATS

SWOT ANALYSIS OF DHANALAKSHMI BANK

STRENGHTS

Highly reputed and heritage bank in Kerala

Prevalence high customer loyalty

Offer on line banking and ATM facilities.

Provides customized services
WEAKNESS

Branches are few

Concentration on NRIs is limited

Elite class does not hold more investment in the bank

OPPURTUNITIES

1. Open new branches in other states.

2. Target more on NRIs
3. Target rural market

THREATS

Tough competition from other banks like SBI, Canara Bank, Federal
Bank etc

Threats from global banks like ICICI, City Bank etc
.

3.1 NEED FOR THE STUDY

The business world today is marked by competition. The entry of private sector banks
have given a strong competition for the public sector banks which were once enjoying the
taste of the market without putting in much efforts. Having this in mind the researcher
aims at studying the financial performance of the bank over a period of three years. The
present study has got immense significance to the Dhanalakshmi Bank Ltd. By studying
the financial performance, the company can identify its strengths and weaknesses on
major financial aspects.

3.2 STATEMENT OF THE PROBLEM

The study on the financial performance of The Dhanalakshmi Bank Ltd with special
reference to Analysis of Deposits and Advances of the different branches under Thrissur
zone has been undertaken to know about the financial performance of the Dhanalakshmi
Bank Ltd.

The research was conducted to assess the financial performance of the bank for the past
three years based on deposits and advances.

3.3 OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE

To study the financial performance of Dhanalakshmi Bank with special reference to

deposits and advances
SECONDARY OBJECTIVES:

To analyze and compare the deposits and advances of the various branches under
Thrissur zone for the past three years

To compare the income and expenditure of different branches under Thrissur zone
for the past three years and find out profit / loss.

To analyze the assets and liabilities of the bank for the past three years

To offer valid suggestions to the bank

3.4 METHODOLOGY OF THE RESEARCH

SOURCE OF DATA
Data is the basis for any research. Analyzing the data and getting the actual inference is
the main part of the research. In this study the data are collected from the annual reports,
financial statements records, documents and website of the bank.

NATURE OF DATA
The nature of data collected for the project is secondary. Previous records of the company
and balance sheet of the last three years have been used.

TOOLS OF DATA ANALYSIS

The tools employed for the purpose of study are percentage analysis, which is a powerful
tool of financial analysis. Tables and graphs are used for the purpose of analysis and
interpretation.

The research design used for this study is analytical in nature, since the study aims to
analyze the financial statements of the Dhanalakshmi Bank Ltd past data and records
have been made use in the project.

The researcher has undertaken the following

procedures:

The researcher approached the financial manager to acquire a clear layout of the
organizations financial performance

He also approached the manager credit of the bank and collected the necessary
information

Based on the information and past records researcher prepared the deposit and
advance statement of the bank and profitability statement

3.5 SCOPE OF THE STUDY

The present study is based upon the Thrissur zonal office of the Dhanalakshmi Bank Ltd.
The study aims to evaluate the financial performance of the bank with respect to advances
and deposits of the different branches under Thrissur zone. The project also attempts to
reveal the overall performance for the past three years by finding out the average for the
years.
The result of this analysis is to facilitate the existing shareholders, organization and
prospective investors in assessing the future financial performance and also helps policy
makers in financial planning.

3.6 LIMITATIONS OF THE STUDY

Financial projects are based on estimates, assumptions and secondary data. Hence there
are certain limitations, which make the application of the study limited and so care,
circumspection and judgment are needed. There fore the study had the following
limitations.

Financial analysis of the organization is based entirely on the previous years

balance sheet and profit and loss statements. This data available from the
organization is valid only with respect to the figures given.

The data taken from the previous records of the organization are no indication for
the future.

There is always the possibility of windows dressing of the financial statements.

The study does not consider the external economical and environmental factors,
which affects the performance of the company.

ANALYSIS AND INTERPRETATION

DEPOSITS
1. CURRENT DEPOSITS

Table 1
Pattern of Current Deposits

Year
ending

No of
Customers

% change
(Increase/
Decrease)

Deposits
(in Rs.)

% Change
(Increase/
Decrease)

2003

49,597

17.30

1,36,00,000

33.30

2004

24,838

49.90

2,25,00,000

65.40

2005

12,055

51.46

3,68,30,000

63.68

GRAPH - 1

Graph Showing the Pattern of Current Deposits

Deposits

Current Deposits
40000000
30000000
20000000
10000000
0

36830000
22500000
13600000

2003

2004

2005

Year

Inference:]The above table shows that, there is a decrease of 49.90 % in the number of customers in
the year 2004 when compared to that of 2003. In addition, the number of customers is
coming down in the next year also.

In case of the amount of deposits, the branches are showing an increasing trend over the
three years. In the year 2004 deposits are increased by 65.40%. It also shows an increase
of 63.68% in the year 2005.

The bank is not able to capture new customers and there is decline in the number of
existing customers whatever increase in current deposit is made by the existing
customers.

2. SAVINGS BANK DEPOSIT

Table 2
Pattern of Savings Bank Deposits

Year
ending

No of
Customers

% change
(Increase/
Decrease)

Deposits
(in Rs.)

% Change
(Increase/
Decrease)

2003

1,39,481

39.83

8,85,00,000

40.20

2004

1,57,590

12.98

10,60,00,000

19.75

2005

2,01,608

27.93

11,19,90,000

11.35

GRAPH -2
Graph Showing the Pattern of Savings Bank Deposits

Savings Bank Deposit

Deposits

150000000
100000000

88500000

106000000

111990000

2004

2005

50000000
0
2003

Year

Inference:The number of customers for the savings bank deposits is increased by 12.98% in the year
2004 when compared to that of 2003.In the year 2005 also the number of customers is
increased by 27.93%.

The amount of savings bank deposits is also increasing. In the year 2004 the amount of
deposit increased at a percentage of 19.75 when compared to the amount of 2003.
In 2005, it shows an increase of 11.35 only.

The deposits made in the savings bank is increasing and the number of customers is also
increasing. The percentage of increase in customers is more than the percentage of
increase in deposits.

3. TERM DEPOSITS

3.1 DHANAM PLUS

Table 3
Pattern of Dhanam Plus Deposits

Year
ending

No of
Customers

% change
(Increase/
Decrease)

Deposits
(in Rs.)

% Change
(Increase/
Decrease)

2003

220

25.70

95,49,500

28.60

2004

290

31.81

1,25,89,500

31.83

2005

360

24.13

1,55,44,300

23.47

GRAPH 3

Graph showing the pattern of Dhanam Plus Deposits

Deposits

Dhanam Plus Deposits

20000000
15000000
10000000
5000000
0

9549500

2003

12589500

15544300

2004

2005

Year

Inference:The table clearly depicts that there has been a substantial increase in the number of
customers from 220 in 2003 to 290 in 2004,that is an increase by 31.81%. Again in the
next year 2005 there is an increase in the number of customers by 24.13%.

The amount of deposits also shows an increase by 31.83% in 2004. in the next year it
increased by a percentage of 23.47.
The number of customers and the deposits are showing an increase at the same rate.

3.2 DHANAM CUMULATIVE DEPOSIT CERTIFICATE

Table 4
Pattern of Cumulative Deposit Certificate Deposits

No of
Customers

% change
(Increase/
Decrease)

2003

26,500

26.79

2,04,30,000

32.80

2004

36,500

36.98

2,76,40000

35.29

2005

58,700

61.70

3,90,85,000

41.40

Year
ending

Deposits
(in Rs.)

% Change
(Increase/
Decrease)

GRAPH-4

Graph Showing the Pattern of Cumulative Deposits Certificate

Cumulative Deposits Certificate

Deposits

60000000
40000000

39085000
20430000

27640000

20000000
0
2003

2004

2005

Year

Inference:The above table shows that there has been a substantial increase in the number customers
for the Dhanam cumulative deposit certificate. The number of customers has been
increased by 36.98% in 2004 compared to 2003. Again, it has been increased by 61.70%
in 2005.

In the case of deposit amount, it has been increased by 35.29% in 2004 when compared to
that of 2003. in 2005 it shows an increase of 41.40.

The percentage increase in the number of customers under Dhanam cumulative deposit
certificate is increasing mainly because of better marketing done by the marketing
department.

3.3 LAKSHMI RECURRING DEPOSITS

Table 5
Pattern of Lakshmi Recurring Deposits

Year
ending

No of
Customers

% change
(Increase/
Decrease)

Deposits
(in Rs.)

% Change
(Increase/
Decrease)

2003

254

10.91

10,47,500

12.48

2004

297

16.92

12,52,300

19.55

2005

242

18.51

13,95,700

11.45

GRAPH-5

Graph Showing the Pattern of Lakshmi Recurring Deposits

Lakshmi Recurring Deposits

Deposits

1500000

1047500

1252300

1395700

1000000
500000
0
2003

2004

2005

year

Inference:The table shows that there is an increase of 16.92%, in the number of customers, in the
year 2004 when compared to that of 2003. In 2005, The number of customers is
decreased by 18.51% over the previous year.

The amount of deposits is showing a substantial increase. In 2004, the amount of deposit
is increased by 19.55, when compared to that of previous year. In 2005 the deposit is
increased only by 11.45%.

The amount being deposited in Lakshmi Recurring Deposits Scheme was increasing
although the number of customers had decreased and the existing customers were
investing more.

3.4 SURABHI DEPOSIT SCHEME

Table 6
Pattern of Surabhi Deposits

Year
ending

No of
Customers

% change
(Increase/
Decrease)

Deposits
(in Rs.)

% Change
(Increase/
Decrease)

2003

178

18.6

1,84,500

24.20

2004

190

6.74

2,05,000

11.10

2005

204

7.36

2,21,000

7.80

GRAPH-6

Graph Showing the Pattern of Surabhi Deposits

Deposits

Surabhi Deposits
240000
220000
200000
180000
160000

221000
205000
184500

2003

2004

2005

Year

Inference:-

The data shows that the number of customers for Surabhi Scheme is increasing. In the
year, 2004 there is an increase of 6.74% in the number of customers. In the year 2005, it
shows an increase of 7.36%.

The amount of deposit is also increasing. The year 2004 shows an 11.10% increase when
compared to that of 2003. It is again increased by 7.80 in 2005.

The deposits made under this scheme were increasing at decreasing rate. But the number
of customers are increasing at a constant rate.

3.5 INSTA MONEY SCHEME

Table 7
Pattern of Insta Money Scheme Deposits

Year
ending

No of
Customers

% change
(Increase/
Decrease)

Deposits
(in Rs.)

% Change
(Increase/
Decrease)

2003

11

22.50

1,12,000

23.07

2004

27.50

1,08,500

3.12

2005

10

25.50

1,20,500

11.05

GRAPH-7

Graph Showing the Pattern of InstaMoney Scheme Deposits

Deposits

Insta Money Scheme Deposits

125000
120000
115000
110000
105000
100000

120500
112000

2003

108500

2004

2005

Year

Inference:-

The table above indicates that there is an 27.50% increase in the number of customers in
the year 2004 when compared to that of 2003. In the year 2005 the number of customers
is increased by 25.50%.

The amount of Insta money deposit scheme show 3.12% increase in the year 2004. In the
year 2005, it is increased by 11.05%.

This scheme is showing a fluctuating performance because the percentage in number of

customers and deposits is not showing any consistency.

3.6 SREE DHANA CHAKRA DEPOSIT SCHEME

Table 8
Pattern of Sree Dhana Chakra Deposit Scheme

Year
ending

No of
Customers

% change
(Increase/
Decrease)

2003

12

33.34

1,21,500

33.51

2004

15

25.10

1,59,000

30.86

2005

17

13.34

1,82,000

14.46

GRAPH-8

Deposits
(in Rs.)

% Change
(Increase/
Decrease)

Graph Showing the Pattern of Sree Dhana Chakra Deposits

Deposits

Sree Dhana Chakra Deposits

200000
150000
100000
50000
0
2003

2004

2005

Year

Inference:-

The number of customers for Sree Dhana chakra deposit scheme is increased by 25.10%
in 2004. In 2005, the number of customers shows an increase of 13.34%.

The amount of Sree Dhana chakra deposit shows a substantial increase of 30.86% in 2004
when compared to that of the previous years deposit. In 2005, the amount of deposit is
increased by 14.46% only.

This scheme is showing an increasing trend in number of customers and deposits but the
percentage increase in 2005 in is not satisfactory.

ADVANCES
1. DHANAM PLATINUM JUBILEE HOME LOAN ADVANTAGE
Table 9
Pattern of Dhanam Platinum Jubilee home Loan

Year
ending

No of
Customers

% change
(Increase/
Decrease)

2003

290

56.75

6,07,00,000

40.17

2004

395

30.79

7,15,00,000

17.79

2005

466

36.20

9,09,00,000

27.13

Advances
(in Rs.)

% Change
(Increase/
Decrease)

GRAPH -9

Graph Showing the Pattern of Dhanam Platinum Jubilee Home Loan

Dhanam Platinum Jubilee Home Loan

90900000

Advances

100000000
60700000

71500000

50000000
0
2003

2004

2005

Year

Inference:-

The number of customers for the home loan is increased by 30.79% in the year 2004,
where the percentage of increase was 56.75 in 2003. In 2005 it shows an increase of
36.20%.

The amount of advance is also increased by the three years. The loan amount is increased
by 17.79% in the year 2004 when compared to that of the previous year. In 2005 it is
increased by 27.13%.

The analysis shows that there is high demand for Dhanam Platinum Jubilee Home Loan
Advantage in the last three years. The percentage of number of customers and advances
are showing a steady increase.

2. DHANAM CAR CREDIT

Table 10
Pattern of Dhanam Car Credit

Year
ending

No of
Customers

% change
(Increase/
Decrease)

2003

65

29.34

39,40,000

28.15

2004

56

13.84

49,70,000

26.14

2005

48

14.28

61,00,000

22.73

GRAPH-10

Advances
(in Rs.)

% Change
(Increase/
Decrease)

Graph Showing the Pattern of Dhanam Car Credit

Advances

Dhanam Car Credit

8000000
6000000
4000000
2000000
0

3940000

4970000

2003

2004

6100000

2005

Year

Inference:From the above table we can infer that the number of customers for the Dhanam car credit
is decreasing year by year. In the year 2004, the number of customers is decreased by
13.84%. It is decreased by 14.28% in 2005.

Even though the number of customers is decreasing, the amount of deposit is showing an
increase. In the year 2004, it was increased by 26.14%. Again, in the year 2005 it shows
an increase of 22.73%.
Under this scheme, the number of customers to whom the lending is done is decreased.
However, the total amount advanced has increased.

3. DHANAM EASY LOAN

Table 11
Pattern of Dhanam Easy Loan

Year
ending

No of
Customers

% change
(Increase/
Decrease)

Advances
(in Rs.)

% Change
(Increase/
Decrease)

2003

240

31.42

36,50,000

22.15

2004

190

20.83

43,20,000

18.35

2005

150

21.05

54,00,000

25.00

GRAPH-11
Graph Showing the Pattern of Dhanam Easy Loan

Dhanam Easy Loan

5400000

Deposits

6000000
4000000

3650000

4320000

2000000
0
2003

2004

2005

Year

The table shows that there is a decrease in the number of customers for Dhanam easy
loan. In the three years the number of customers is decreasing.

The amount of advance is increasing in the three years. In the year, 2005 there is a 25%
increase in the loan amount when compared to the previous years.

In Dhanam Easy Loan the number of customers is being decreased but the percentage of
amount advanced is showing at an increasing rate.

4. DHANAM VIDHYA CREDIT SCHEME

Table 12
Pattern of Dhanam Vidhya Credit Scheme

Year
ending

No of
Customers

% change
(Increase/
Decrease)

Advances
(in Rs.)

2003

20

22.40

29,00,000

23.40

2004

24

20.00

36,00,000

24.13

2005

31

29.16

47,00,000

30.55

GRAPH-12

% Change
(Increase/
Decrease)

Graph Showing the Pattern of Dhanam Vidhya Credit Scheme

Dhanam Vidhya Credit Scheme

Advances

6000000
4000000

4700000
2900000

3600000

2000000
0
2003

2004

2005

Year

Inference:The above table shows that among the three years there is an increase in the number of
customers from 20 to 24 in the year 2004. In the year 2005 the number of customers is
increased by 29.16%.

On the other hand the amount of advance is also showing an increase. In the year 2004 it
is being increased by 24.13%, when compared to that of the previous year. Again in the
year 2005 it is increased by 30.55%.

In this scheme, the numbers of customers are small in size and it is increasing. The
advances made under this scheme is showing a satisfactory percentage of increase. This
scheme shows effective achievement of new customers.

5. DHANAM READY MONEY LOAN

Table 13

Pattern of Dhanam Ready Money Loan

Year
ending

No of
Customers

% change
(Increase/
Decrease)

Advances
(in Rs.)

% Change
(Increase/
Decrease)

2003

15

12.32

65,00,000

13.20

2004

17

13.33

74,00,000

13.84

2005

20

17.64

90,00,000

21.62

GRAPH-13
Graph Showing the Pattern of Dhanam Ready Money Loan

Dhanam Ready Money Loan

9000000

Advances

10000000
6500000

7400000

2003

2004

5000000
0
2005

Year

Inference:-

The above table shows that the number of customers for Dhanam ready money loan is
showing an increase. When compared to that of the year 2003 the number of customers is
increased by a percentage of 13.33 in 2004. Again in the next year it is showing an
increase of 17.64%.

Similarly, the amount of loan is increased by 13.84% in 2004 when compared to that of
2003. In 2005 it is showing an increase by 21.62%.

This scheme showing an increase in number of customers and advances at an increasing

rate

6. DHANAM MEDI EQUIPMENT SCHEME

Table 14

Pattern of Dhanam Medi Equipment Scheme

Year
ending

No of
Customers

% change
(Increase/
Decrease)

Advances
(in Rs.)

% Change
(Increase/
Decrease)

2003

18

12.10

14,00,000

19.75

2004

20

11.11

16,50,000

17.85

2005

25

25.00

20,00,000

21.21

GRAPH-14

Graph Showing the Pattern of Dhanam Medi Equipment Scheme

Dhanam Medi Equipment Scheme

Advances

3000000
2000000

1400000

1650000

2003

2004

2000000

1000000
0
2005

Year

Inference:The number of customers for the Dhanam Medi Equipment Scheme is showing an
increase. In the year 2003 the percentage of increase was 12.10%, which increased by
11.11% in 2004. Again in the year 2005 the percentage of increase in the number of
customers is 25%.

The amount of loan is increased by 17.85% in 2004 when compared to that of the
previous year. In the yea 2005 it shows an increase of 21.21%.
This scheme is showing an increase in advances and number of customers even though
the sizes of customers are small.

7. DHANAM LEASE LOANS

Table 15
Pattern of Dhanam Lease Loans

Year
ending

No of
Customers

% change
(Increase/
Decrease)

Advances
(in Rs.)

% Change
(Increase/
Decrease)

2003

15

16.40

40,00,000

14.36

2004

17

13.33

46,00,000

15

2005

20

17.64

54,00,000

17.39

GRAPH-15

Graph Showing the Pattern of Dhanam Lease Loans

Dhanam Lease Loans

Advances

6000000

4000000

4600000

5400000

4000000
2000000
0
2003

2004

2005

Year

Inference:-

The above table shows that the number of customers for Dhanam Lease loan is is
showing a 13.33% increase in the year 2004 when compared to that of 2003. in the year
2005 it is showing an increase of 17.64%.

The amount of loan is also showing an increase. In 2003 the percentage of increase was
14.36, in the year it became 15%. In the year 2005 it shows an increase of 17.39%.

The analysis shows that there is a minimum increase in number of customers and an
average increase in advances.

8. DHANAM PERSONAL LOAN

Table 16

Pattern of Dhanam Personal Loan

Year
ending

No of
Customers

% change
(Increase/
Decrease)

Advances
(in Rs.)

% Change
(Increase/
Decrease)

2003

11

16.71

31,00,000

14.13

2004

14

27.27

36,00,000

16.12

2005

16

14.28

41,00,000

13.88

GRAPH-16

Graph Showing the Pattern of Dhanam Personal Loan

Dhanam Personal Loan

Advances

6000000
4000000

3100000

3600000

4100000

2003

2004

2005

2000000
0
year

Inference:The above table shows that the number of customers for the Dhanam Personal Loan is
increasing substantially. In the year 2003, the number of customers shows an increase of
16.71%. Where as in 2004 it is being increased by 27.27%. In the year 2005, it shows an
increase of 14.28 only.

The amount of loan is showing an increase of 16.12% in the year 2004, when compared
to that of the previous year. In the year 2005, the amount of loan is increased by 13.88
only.

There is an average demand for Dhanam Personal Loan and there is minimal increase in
number of customers and amount of advances.

COMPARISON OF ASSETS AND LIABILITIES OF THE

DHANALAKSHMI BANK LTD DURING 2003-2005

Table 17
PATTERN OF ASSETS

Year

Fixed Asset
(in 1000)

% change
(increase
/Decrease)

Current Asset
(in 1000)

% change
(increase
/Decrease

2003

241626

10.26

1877491

16.72

2004

279705

15.75

2251612

19.92

2005

303655

8.56

2696788

19.77

GRAPH-17
Graph showing the Pattern of Assets

Pattern of Asset

Asset

3000000
2000000

1877491

2251612

2696788
Fixed Asset
Current Asset

1000000 241626 279705 303655

0
2003

2004

2005

Year

Inference:From the table it is clear that there was an in the fixed assets only by a percentage of
10.26 in 2003. In the year 2004, it shows an increase of 15.75%. Again, in the year 2005
the percentage of increase is only 8.56%.

A current asset, on the other hand, shows an increase of 19.92% in the year 2004. In the
year 2005, it shows an increase of 19.77.

The fixed assets and current asset of the bank is showing an increase due to the increase
in number of branches.

Table 18

PATTERN OF LIABILITIES

Year

Short Term
Liabilities

% change
(increase
/Decrease)

Long Term
Liabilities

% change
(increase
/Decrease

2003

898666

7.99

16141342

+11.21

2004

854750

4.88

19291225

+19.51

2005

963900

12.75

22680150

+17.56

GRAPH-18
Graph Showing the Pattern of Liabilities

pattern of Liabilities
L ia b ilitie s

30000000

22680150
19291225
20000000 16141342

Short Term

10000000

Long Term

898666 854750 963900

0
2003

2004

2005

Year

Inference:-

The table indicates a percentage decrease of 4.88% in the short term liabilities in 2004. In
the year 2005 it shows an increase of 12.75%.

Long term liabilities on the other hand show an increase of 19.51% in the year 2004. In
the year 2005 it shows an increase of 17.56%.

The liabilities of bank is increasing for meeting the demands of the customers

Table 19
Comparison of Total Income of branches of The Dhanalakshmi Bank
Ltd under Thrissur zone

Year

Income

Increase or
Decrease

%Change

2003

8050.24

1995

+15.60

2004

9540.10

1489.86

+18.50
+17.92

2005

11.250.24

1710.14

Average

9613.52

1731.66

17.92

GRAPH-19

Incom e

COMPARISON OF INCOME

12000
10000
8000
6000
4000
2000
0

11250.24
9540.1
8050.24

2003

2004

2005

Year

Inference:-

The table shows that there has been an increase of 15.60% in the income for the year
2003. In the year 2004 it is increased to 18.50%. In 2005 it is reduced to 17.92%. The
average of 17.92 is an indicator of overall performance of the bank.

The operations made by the bank are earning income at an increasing rate. This shows the
earning stability of the bank.

Table 20
Comparison of Total Expenses of branches under Thrissur
zone during 2003-2005

Year

Expenses

Increase or
Decrease

%Change

2003

7203.20

2100

+41.15

2004

8950.10

1746.90

+24.25

2005

10730.20

1780.10

19.88

Average

8061.16

1875.66

28.42

GRAPH-20

E xp en ses

COMPARISON OF EXPENSES

12000
10000
8000
6000
4000
2000
0

10730.2
8950.1
7203.2

2003

2004

2005

Year

Inference:From the table we can infer that there was a decrease in the percentage of increase in
expenses from 41.15% in 2003 to just 24.25%. In 2004 which increase by 19.88% only,
over the previous year. On the average, the total expenses increase by 28.42%.

Due to the increase in the area of operation, the expenses of the bank will also
subsequently increase.

Table 21
Comparison of Profit / Loss of branches under Thrissur
zone during 2003- 2005

Year

Profit / Loss

Increase or
Decrease

%Change

2003

952.10

105.86

+25.20

2004

1240.10

288

+30.24

2005

1590.40

350.30

+28.24

Average

1260.86

248.05

27.89

GRAPH-21

COMPARISON OF PROFIT / LOSS

P rofit/Loss

2000

1590.4

1500
1000

1240.1
952.1

500
0
2003

2004

2005

Year

Inference:The table indicates the profit / Loss for three years. In the year, 2003 there was an
increase of 30.24% in the profit. In the year 2005, it shows only an increase of 28.24% in
the profit. The average of 27.89% indicates the overall performance of the bank.

The steady increase in the profit of the bank is showing the better operational efficiency
of the bank.

RESEARCH FINDINGS

The analysis of current deposits shows a decrease in the number of customers and
even though the customers were reducing the current deposit amount was
increasing

Some of the deposits schemes are not being efficient enough to attain new
customers and also there is reduction in the number of existing customers.

The savings bank account shows a steady increase in the number of customers as
well as the amount of deposits

In Term Deposits Dhanam Plus, Dhanam Cumulative deposit certificate, Sree

Dhana Chakra Deposit Scheme and Surabhi deposit Scheme shows a positive
trend in the number of customers and their deposit amount

Lakshmi Recurring deposit shows that there was an increase in the number of
customers in 2004 but in 2005, it is found that there was a slight decrease in
number of customers. But the deposit amount is showing a substantial increase in
the last three years

The research shows that the advances were being successful due to the increase in
number of people demanding for various schemes of Dhanalakshmi Bank except
Dhanam Car Credit and Dhanam Easy Loan

The advance scheme products is proved to be very beneficial for the bank

The increase in income is showing the financial soundness of the bank

SUGGESTIONS
 There has been a decrease in the number of customers for the current deposits,
even though the amount of deposit is increasing and the bank must provide
individualized services to maintain the existing customers and they must do
aggressive marketing in order to attract new customers.

 To increase the sales of Dhanam Car Credit the bank can market the product
through major automobile dealers with some attractive offers to compete with the
major players in the field.

 Many of the advance schemes of the bank had to be withdrawn as they were not
profitable. The main reason for the failure was that these schemes though catering
to the needs of various sectors of people were not properly implemented. Hence,
proper consultation with the branch managers and other people concerned should
be done so that they can be successfully implemented.

 The bank must do market analysis in order to identify the reason for unstable
customers in Lakshmi Recurring Deposits and the bank can take necessary
measures to maintain existing customers and attract new customers

CONCLUSION

The main objective of this project is to determine the financial performance of

Dhanalakshmi Bank, with special reference to analysis of deposits and advances of the
different branches under Thrissur zone. For this purpose the projections of the
profitability of the organization was made and based on this profitability statement that a
conclusion has been made.

It has been concluded that the bank is performing well and it benefits the depositors.
More over the balance sheet, deposit and advances details show favorable projections.
There is a room for improvement in the form of increasing profits by undergoing changes
in certain deposit and advance schemes. Hence, by conducting the study the researcher
achieved the objectives set for him.

BIBLIOGRAPHY

BOOKS REFERRED
1.

Desai Vasanth, Indian Banking Nature and Problems, Himalaya Publishing

House.

2.

Maheshwari.S.N. Financial Management, Sultan Chand & Sons, 2001.

3.

Kothari.C.R, Research Methodology, Wishwa Prakashan, 2002.

4.

Varshney.P.N, Banking Law and Practice, Sultan Chand & Sons, 2002.

WEBSITES REFERRED

1.

www.dhanbank.com

2.

www.bankersindia.com