Mba Mba Batch No 170

ROLE OF INDIA POST PAYMENTS BANK TO DRIVE FINANCIAL
INCLUSION IN INDIA
Submitted in partial fulfillment of the requirements for the award of Degree in
MASTER OF BUSINESS ADMINISTRATION
by
KRISHNAGOPALAN S
Register No.41410175
DEPARTMENT OF BUSINESS ADMINISTRATION

SCHOOL OF MANAGEMENT STUDIES
SATHYABAMA
INSTITUTE OF SCIENCE AND TECHNOLOGY
(DEEMED TO BE UNIVERSITY)
Accredited with Grade “A” by NAAC I 12B Status by UGC I Approved by AICTE
JEPPIAAR NAGAR, RAJIV GANDHI SALAI, CHENNAI - 600 119
MAY 2023
SATHYABAMA
INSTITUTE OF SCIENCE AND TECHNOLOGY
(DEEMED TO BE UNIVERSITY)
Accredited with “A” grade by NAAC I 12B Status by UGC I Approved by AICTE
Jeppiaar Nagar, Rajiv Gandhi Salai, Chennai-600119
www.sathyabama.ac.in
SCHOOL OF MANAGEMENT STUDIES
BONAFIDE CERTIFICATE
This is to certify that this Project Report is the bonafide work of KRISHNAGOPALAN
S 41410175 who carried out the project entitled “ROLE OF INDIA POST
PAYMENTS BANK TO DRIVE FINANCIAL INCLUSION IN INDIA” under my
supervision from January 2023 to April 2023.
Dr. JAINAB ZAREENA

Internal Guide External Guide
Dr. BHUVANESWARI .G
Dean – School of Management Studies
Submitted for Viva voce Examination held on 06/05/2023
Internal Examiner External Examiner

DECLARATION
I KRISHNAGOPALAN S (41410175) hereby declare that the Project Report entitled

“ROLE OF INDIA POST PAYMENTS BANK TO DRIVE FINANCIAL INCLUSION
IN INDIA” done by me under the guidance of Dr. JAINAB ZAREENA is submitted
in partial fulfilment of the requirements for the award of Master of Business
Administration degree.
DATE: 06/05/2023
PLACE: Chennai KRISHNAGOPALAN S

ACKNOWLEDGEMENT
I am pleased to acknowledge my sincere thanks to Board of Management of

SATHYABAMA for their kind encouragement in doing this project and for completing it
successfully. I am grateful to them.
I convey my sincere thanks to Dr. G. Bhuvaneswari, MBA., Ph.D., Dean - School of

Management Studies and Dr. A. Palani, M.Com., MBA., Ph.D., Head - School of
Management Studies for providing me necessary support and details at the right time
during the progressive reviews.
I would like to express my sincere and deep sense of gratitude to my Project Guide
Dr. JAINAB ZAREENA for her valuable guidance, suggestions and constant
encouragement paved way for the successful completion of my project work.
I wish to express my thanks to all Teaching and Non-teaching staff members of the
School of Management Studies who were helpful in many ways for the completion of
the project.
KRISHNAGOPALAN S
TABLE OF CONTENTS
CHAPTER
TITLE PAGE NO.
NO.
ABSTRACT (i)
LIST OF TABLES (ii)
LIST OF CHARTS (iv)
LIST OF ABBREVIATIONS (v)
INTRODUCTION
1.1 Introduction 1
1.2 Objectives 1
1 1.3 Need for the study 1
1.4 Scope of study 1
1.5 Industry Profile 2
1.6 Company Profile 2
REVIEW OF LITERATURE
2
2.1 Review of Literature 4
RESEARCH METHODOLOGY
3.1 Methodology 10
3 3.2 Research Design 10
3.3 Sources of Data 10
3.4 Tool for Analysis 11
DATA ANALYSIS AND INTERPRETATION

4
4.1 Ratio analysis 16
4.2 Trend analysis 30
4.3 Common Size Balance Sheet 32
4.4 Comparative Balance Sheet 37
FINDINGS, SUGGESTIONS AND CONCLUSION
5.1. Findings of the Study 42
5 5.2 Suggestions & Recommendations 45
5.3 Limitations of study 45
5.4 Conclusion 47
REFERENCES 49
ANNEXURE I 52
ANNEXURE II 57
ABSTRACT
In Indian population Majority of rural areas. Payments Bank is new categories of

Bank in India on 2017.In September 2013, committee on comprehensive financial
services for small Business and Low Income Households, headed by Nachiket Mor,
was formed by RBI. On November 2015 RBI Released guidelines for Licensing of
Payments bank. India post payments bank as Main purpose is to drive financial
inclusion in rural areas. Digitalization the mode of Banking services with core
Banking activities like UPI, IMPS, NEFT, RTGS, AEPS. The parameters for India
Post Payments Banks financial inclusions are Business Correspondents, Third party
insurance services, Basic bank deposit, Door step services, Aadhaar mobile no
updates, child enrolment Aadhaar. The objective of the project to find out the
efficiency of the India Post Payments Bank using the Liquidity ratios, Profitability
Ratios to provide suitable suggest improve the financial performance of the India
Post Payments Bank.
i
LIST OF TABLES
TABLE NO. PARTICULARS PAGE NO.
4.1.1.1 CURRENT RATIO 16
4.1.1.2 QUICK RATIO 18
4.1.1.3 ABSOLUTE LIQUIDITY RATIO 20
4.1.2.1 GROSS PROFIT RATIO 22
4.1.2.2 NET PROFIT RATIO 23
4.1.2.3 OPERATING RATIO 24
4.1.2.4 RETURN ON INVESTMENT RATIO 25
4.1.2.5 RETURN ON ASSETS 27
4.1.2.6 FIXED ASSET TURN OVER RATIO 28
4.2.1 CURRENT ASSET TREND ANALYSIS 30
4.2.2 NET PROFIT/NET LOSS TREND ANALYSIS 31
COMMON SIZE BALANCE SHEET FOR THE
4.3.1 32
YEAR 2017-2018
4.3.2 33
YEAR 2018-2019
4.3.3 34
YEAR 2019-2020
4.3.4 35
YEAR 2020-2021
4.3.5 36
YEAR 2021-2022
COMPARATIVE BALANCE SHEET FOR THE
4.4.1 37
YEAR 2017-2018
4.4.2 38
YEAR 2018-2019
4.4.3 39
YEAR 2019-2020
4.4.4 40
YEAR 2020-2021
ii
LIST OF TABLES
TABLE NO. PARTICULARS PAGE NO.
4.4.5 41
YEAR 2021-2022
iii
LIST OF CHARTS
CHARTS NO. PARTICULARS PAGE NO.

4.1.1.1 CURRENT RATIO 17
4.1.1.2 QUICK RATIO 19
4.1.1.3 ABSOLUTE LIQUIDITY RATIO 21
4.1.2.1 GROSS PROFIT RATIO 22
4.1.2.2 NET PROFIT RATIO 23
4.1.2.3 OPERATING RATIO 24
4.1.2.4 RETURN ON INVESTMENT RATIO 26
4.1.2.5 RETURN ON ASSETS 27
4.1.2.6 FIXED ASSET TURN OVER RATIO 29
4.2.1 CURRENT ASSET TREND ANALYSIS 30
4.2.2 NET PROFIT/NET LOSS TREND ANALYSIS 31
iv
LIST OF ABBREVIATION ( IF REQUIRED)
S.NO ABRREVATION EXPANSION

1. RBI Reserve Bank of India
2. UPI Unified Payments Interface
3. IMPS Immediate Payments Services
4. NEFT National Electronic Fund Transfer
5. RTGS Real Time Gross Settlement
6. AEPS Aadhaar Enabled Payment System
v
CHAPTER-1
INTRODUCTION
1.1INTRODUCTION
India Post Payments Bank (IPPB) was established in 2018 as a public sector
company under the Department of Posts, Ministry of Communications with the
objective of providing affordable banking and financial services to the unbanked
population of India. The IPPB is aimed at bringing financial inclusion by leveraging
the extensive postal network of India, which has a presence in every nook and
corner of the country.
1.2 OBJECTIVES
⚫ To identify the function and role of India Post Payments Bank. To find the Trend
Analysis of India Post Payments Bank.
⚫ To identify the difference between POSB (Post Office Savings Bank), Post Life
Insurance (PLI) and India Post Payments Bank.
⚫ To study the role of Indian post payment banks in financial inclusion.
⚫ To Identify how the Head office (HO), Sub-office (SO), Branch office (BO) are
utilized. To identify the financial Position of India Post Payments Bank.
1.3 NEED OF STUDY
⚫ To Explore the Function of Digitalization in Post office Services.
⚫ To understand the role of Payments Bank.
⚫ To enhance basic knowledge regarding Instant fund Transfer.
⚫ To find the trend percentage relationship, in which each item of different years
bear to the same item in the base year.
1.4 SCOPE OF STUDY
⚫ It enhance knowledge regarding the UPI functions, Vitural Debit Cards.
⚫ It helps people to understand Aadhaar Enabled Payment System (AEPS).
1
⚫ To understand the banking services provided by postal postmen and Grameen
Dak Sewaks (GDS) at doorstep banking services.
⚫ To evaluate the management efficiency and earning quality of India post

payments bank.
1.5 INDUSTRY PROFILE
Payments banks are new model of banks, conceptualized by the Reserve Bank of
India (RBI), which cannot issue credit. These banks can accept a restricted deposit,
which is currently limited to ₹200,000 per customer and may be increased further.
These banks cannot issue loans and credit cards. Both current account and savings
accounts can be operated by such banks. Payments banks can issue ATM cards or
debit cards and provide online or mobile banking. The minimum capital requirement
is Rs.100 crore. For the first five years, the stake of the promoter should remain at
least 40%. Foreign share holding will be allowed in these banks as per the rules
for FDI in private banks in India. The voting rights will be regulated by the Banking
Regulation Act, 1949. The voting right of any shareholder is capped at 10%, which
can be raised to 26% by the Reserve Bank of India. Any acquisition of more than
5% will require approval of the RBI. The majority of the bank's board of directors
should consist of independent directors, appointed according to RBI guidelines. The
bank should be fully networked from the beginning. The bank can accept utility bills.
It cannot form subsidiaries to undertake non-banking activities. Initially, the deposits
will be capped at ₹100,000 per customer, but it may be raised by the RBI based on
the performance of the bank. Payment Banks are not permitted to lend to any person
including their directors. 25% of its branches must be in the unbanked rural area.
The bank must use the term "payments bank" in its name to differentiate it from
other types of bank. The banks will be licensed as payments banks under Section
22 of the Banking Regulation Act, 1949, and will be registered as public limited
company under the Companies Act, 2013.
1.6 COMPANY PROFILE
India Post Payments Bank, abbreviated as IPPB, is a division of India Post which is
under the ownership of the Department of Post, a department under Ministry of
Communications of the Government of India. Opened in 2018, as of January 2022,
2
the bank has more than 5 crore customers. IPPB aims to utilize all of India's 155,015
post offices as access points and 3 lakh postal postmen and Grameen Dak Sewaks
(GDS) to provide doorstep banking services. The fundamental mandate of IPPB is
to remove barriers for the unbanked & underbanked and reach the last mile
leveraging a network comprising of 1.55 lakh Post Offices and around 3 lakh postal
employees. IPPB’s reach and its operating model is built on the key pillars of India
Stack - enabling Paperless, Cashless & Presence-less banking in a simple & secure
manner at the customers' doorstep, through a CBS-integrated smartphone and
biometric device. Leveraging frugal innovation and with a high focus on ease of
banking for the masses, IPPB delivers simple & affordable banking solutions through
intuitive interfaces available in 13 languages. IPPB is committed to provide a fillip to
a less cash economy and contribute to the vision of Digital India. India will prosper
when every citizen will have equal opportunity to become financially secure and
empowered. Our motto stands true - Every customer is important; every transaction
is significant, and every deposit is valuable.
3
CHAPTER-2
REVIEW OF LITERATURE
2.1 REVIEW OF LITERATURE
HARSHADKUMARet.al (NOV-22) The Govt. of India aims to achieve financial

inclusion by bringing banking services to the homes of millions of Indians. By
providing a full range of facilities and attractive programs, banks can meet the
diverse needs of customers.
DIPANKAR MONDAL (DEC-22) This research is purely based on conceptual study

of the available data, secondary in nature, of India Post Payment Bank. This study
is mainly judging the available data with the financial inclusion indicators to
understand its impact of IPPB on financial inclusion. Hence it is important to say that
suitable statistical tools can be applied to analyze the inputs gathered from
structured questionnaire to find empirical conclusions.
HIRENKUMAR RAMESHBHAI AND RAJESH M (JUL-22) India Mail plays a vital

role in providing financial assistance to the network provided there and especially to
the rural areas. It has adopted various reform measures for innovation and
technological advancement in the country.
HARSHAD AND KANISHK (MAR-22) Payment banks focus on digital innovation

and a country like India is also geared towards a cashless and digital economy,
which is achievable and flexible in terms of the latest technological and economic
conditions.
N. SENTHILKUMAR AND L. BALASUBRAMANIAN (DEC-21) Awareness level of

employees is needed to be improved. The Namakkal Postal Division has doing well
to its postal customers. With its 86.17% post offices in rural area, it can successfully
provide all the bank services to the rural people.
N. PRAKASH AND SUGANYA (DEC-21) Millions of Indians do not have access to

banking facilities. They cannot make use of government benefits, loans and
insurance and even interest on savings. IPPB will reach the unbanked and the
under-banked sectors in all cross sections of society and geographies areas to
achieve financial inclusion successfully.
4
MANOJ MINJ et.al (OCT-21) Payments banks provide the benefit of both mobile/E-
wallets and banking services. Only 32% of respondents are highly aware about
payment banks,21% and 19% of respondents are having moderate and low level of
awareness respectively. 28% of respondents are completely unaware about
payment banks.
MANOJ MINJ et.al (AUG-21) The financial facility was brought to the door by the
IPPB and DARPAN. There is also a significant contribution from postal agencies at
a national level. India Post will hopefully be a better point of contact for all citizen-
centred services like Aadhar and will thus support sustainable development goals
such as lowering poverty, gender equality and reducing inequality.
P.JESINTHA et.al (JUN-21) In the modern era people forget the post office in their
busy schedule but the RBI innovative idea to launch the payment bank through post
office is a next step for the growth of our economy. IPPB faces a few challenges to
reach initially but it reached the pinnacle success by crossing 2.36 crore customers.
The article clearly shows the benefits and the growth of IPPB.
GAURAV AND MANOJ MINJ(MAR-21) India Post Payments Bank has the leverage
of largest postal network in the world. IPPB has increased the size of rural banking
infrastructure by seven times. As IPPB is not allowed to advance loans which is the
primary income source of banks, IPPB need to more focus on new ways of income
generation.
RATHEESH AND K. NAIR(JAN-21) Innovative products with fewer risk, speed and
efficient grievance redressal together with imparting professionalism in customer
services definitely can find good market for India post payments bank in Kerala given
the buoyant financial inclusion and cash less economic conditions of India.
THUSHARA T.K (DEC-20) There are millions of Indians don’t have access to
banking facilities. They cannot avail of government benefits, loans, insurance and
even interest on savings. M-Banking, IPPB, PMJDY will reach the unbanked and
the under banked across the all cross section of society and geographic.
AFSANA SULTANA (NOV-20) India post has been playing a very important role in
financial inclusion with its given network and reach especially in the rural areas. It
5
has adopted various reform measures for innovation and technological up gradation
in the country.
M. NEELAKANDAN(SEP-20) It is very clear that post office, in addition to be an

agent of financial inclusion of government, also contributes a lot for the economic
development of individual at micro level and national level at a macro perspective
and helps our country to achieve towards accomplishing the UN Sustainable
Development Goals and targets much before 2030.
S. SHANMUGAPRIYA AND S. SARAVANAN (MAR-20) The study identify that

investors were overall satisfied with the post office financial saving schemes like
post office saving deposit, Post office Recurring Deposit and Post office Monthly
Income Scheme.
V. VENKATACHALAM (FEB-19) Postal department has widened their area of

operation into banking services with the help of core banking and payment bank.
Indian people have a great faith and trust on postal nancial services. The India post
payment will concentrate the various nancial services provide the accountholders
and then awareness level of employees is need to be improved.
REENA. F AND T. JOSEPH (FEB-19) The big challenge is how well this payment
bank function effectively and efficiently in the long run. Future sustainability and
stability of the payments in the present and future market conditions is the one which
government has to concentrate on.
ANAHITA SINGH SONALIKA BHADOURIA (JAN-19) Payment banks can certainly

be seen as the future, despite facing difficulties in establishment and operations as
the government as well believes that it is possible that these payment banks will be
able to cover up their losses within two years, while introducing other services
slowly, which may also help support the unique model of these banks.
VAIBHAV AND R.C. GUPTA (DEC-18) It will open up a lot of chances for
Department of Post. Regardless, the test from prominent private players would
encourage IPPB to unendingly patch up its commitments. IPPB can never again
depend just on its profound established knowledge of expansive dissemination
arrange, anyway needs to update its advantages and abilities to remain forceful in
the business focus.
6
S.TAMILARASI AND D. BHUVANESWARI (OCT-18) The Payment bank is
innovative activity of Department of Post. Most extreme number of individuals have
Phone number through that they can utilize the saving money office. This new idea
will inspire the clients in future yet it likewise have a few bad marks. On the off
chance that Airtel industry center the bad marks then this idea might be a major test
to conventional managing an account industry.
SANDESH D'SOUZA (OCT-18) The process of ensuring access to appropriate

financial products and services needed by vulnerable groups such as weaker
sections and low-income groups at an affordable cost in a fair and transparent
manner by mainstream institutional players. However, the competition between
traditional and payment banks will lead to widening and improvement in quality of
banking services are reduced costs and which may finally leads results in financial
inclusion.
ASHISH BAGHLA (AUG-18) The move towards cashless economy is definitely a

good one but it will take much time to have I completely cashless economy. The
efforts are going well by the government as well as the private sector companies
having there e-wallets apps such as PayTM, PhonePe etc. The biggest challenge
in front of government is the lack of knowledge and awareness among people and
fear of loss of money by use of digital payment methods risk of hacking. The
government needs to tackle these challenges to have cashless economy and to give
a boost to digital payments to provide sustainable economic development to the
country in the long run.
PARVATHI JAYAPRAKASH AND R RADHAKRISHNA (MAY-18) The study can

benefit three groups- policy makers, institutions and researchers. The study
analyses the development project at its initiation phase. Most development project
research is done evaluating the efficiency or effectiveness of the project. This study
highlights the pros and cons of the project thereby assisting the policy makers to
take necessary actions before complete roll out of the project. The study view the
project from the supplier perspective of banking services.
M. BHARGAVI (MAR-18) The India Post Payments Bank established by the

Department of Posts has an enormous potential to be one of the most convenient &
accessible banking network in a developing country like India. With the age – old
7
traditional postal delivery system when combined with a digital platform such as
internet banking, mobile banking, prepaid instruments, debit cards, availability
ATMs, point of sale devices, the India Post Payments bank is set to be the face a
new transformation of post offices and be a major drive for financial inclusion
initiative by the Government of India.
V. RAMESH NAIK et.al (FEB-18) The payment banks plays a significance role in
implementing government’s direct benefit, transfer schemes, where subsidies on
health care, education and gas are paid directly to beneficiaries account. However,
the competition between traditional and payment banks will lead to widening and
improvement in quality of banking services are reduced costs and which may finally
lead results in financial inclusion.
BHANSALI SHREY et.al (FEB-18) These are the untapped customers who are not
a part of the banking system yet. Also, even if they are a part of the banking system,
these are not active due various reasons such as unavailability of a nearby branch,
inconvenience due to low literacy rates etc.
SRP. VIJAYA et.al (AUG-17) The Sivagangai Postal Division has doing well to its
postal customers. With its 86.17% post offices in rural area, it can successfully
provide all the bank services to the rural people.
K. MEENA KUMARI (MAY-17) As post man is to be interface between the bank and
the customer, he should be adequately trained to provide banking services.
Products should be tailored to the requirements of customers and high level of
awareness should be created about them. Once it succeeds in being an effective
channel for providing savings, payments and remittance facilities, its activities can
be extended to encompass extension of credit as well.
G. SABITHA SRINIVAS (JAN-17) Millions of Indians don’t have access to banking

facilities. They cannot avail of government benefits, loans and insurance, and even
interest on savings. M- Banking, PMJDY and IPPB will reach the unbanked and the
under-banked across all cross sections of society and geographies.
CHABI GUPTA (DEC-16) It is true that since payments banks won‘t be able to
disburse loans, their net interest income will be limited. So, it seems that without
traditional banking economics, the road for payment banking players is not lucrative.
8
It‘s a long due experiment that logically follows after a agriculturally dominated
traditional economy like India embraces digital payments widely. Indian post has
already applied to the RBI for a banking license; if the license is given it will be a
great achievement for Indian post which will enable post offices to perform full
banking activities. Indian post can give a new dimension to the process of financial
inclusion and can reach an extra mileage in the field of financial inclusion. Indian
post can start the journey where Indian banking system stops.
9
CHAPTER-3
RESEARCH METHODOLOGY
3.1 METHODOLOGY
Research methodology is the specific procedures or techniques used to identify,

select,process, and analyze information about a topic. In a research paper, the
methodology section allows the reader to critically evaluate a study’s overall
validity and reliability. The process used to collect information and data for the
purpose of making business decisions. The methodology may include publication
research, interviews, surveys andother research techniques, and could include
both present and historical information.
3.2 RESEARCH DESIGN
3.2.1 DESCRIPTIVE RESEARCH
Descriptive research includes surveys and fact-finding enquiries of different kinds.

The major purpose of descriptive research is description of the state of affairs as it
exists at present. In social science and business research, it is quite often, the term
Ex post facto research is used for descriptive research studies.
The main characteristic of this method is that the researcher has no control over the
variables; she/he can only report what has happened or what is happening. The
methods of research utilized in descriptive research and survey methods of all kinds,
including comparative and correlation methods.
3.2.2 ANALYTICAL RESEARCH
Analytical research is a specific type of research that involves critical thinking skills
and the evaluation of facts and information relative to the research being conducted.
A variety of people including students, doctors and psychologists use analytical
research during studies to find the most relevant information.
3.3 SOURCES OF DATA
3.3.1 SECONDARY DATA
Secondary data refers to the information or facts already collected such data are
collected with the objective of understanding the past status of any variable.
10
Common sources of secondary data for social science include censuses,
information collected by government departments, organizational records and data
that was originally collected for other research purposes. Primary data, by contrast,
are collected by the investigator conducting the research.
Data was collected from Annual Report and websites of the India post. Supporting
literature from relevant sources, journals, research reports, websites etc. also forms
the sources of secondary data.
3.4 TOOL FOR ANALYSIS

RATIO ANALYSIS
A financial ratio or accounting ratio is a relative magnitude of two selected numerical
values taken from an enterprise's financial statements.
Often used in accounting, there are many standard ratios used to try to evaluate the
overall financial condition of a corporation or other organization.
Financial ratios may be used by managers within a firm, by current and potential
shareholders (owners) of a firm, and by a firm's creditors. Financial analysts use
financial ratios to compare the strengths and weaknesses in various companies.
If shares in a company are traded in a financial market, the market price of the
shares is used in certain financial ratios.
LIQUIDITY RATIO
Liquidity ratios measure a company's ability to pay off its short-term debts as they
become due, using the company's current or quick assets.
Liquidity ratios include the
• Current Ratio
• Quick Ratio
• Absolute Liquidity Ratio
11
CURRENT RATIO
The current ratio is a liquidity ratio that measures a company’s ability to pay short-
term obligations or those due within one year.
It tells investors and analysts how a company can maximize the current assets on
its balance sheet to satisfy its current debt and other payables.
Current ratio= Current asset/Current liability
QUICK RATIO
In finance, the quick ratio, also known as the acid-test ratio is a type of liquidity ratio,
which measures the ability of a company to use its near cash or quick assets to
extinguish or retire its current liabilities immediately.
It is defined as the ratio between quickly available or liquid assets and current
liabilities. Quick assets are current assets that can presumably be quickly converted
to cash at close to their book values.
Quick ratio= Quick asset/Quick liability
ABSOLUTE LIQUIDITY RATIO

This ratio measures the total liquidity available to the company. This ratio only
considers marketable securities and cash available to the company.
This ratio only tests short-term liquidity in terms of cash, marketable securities, and
current investment.
Absolute liquidity ratio= Absolute liquidity asset/Quick liability
GROSS PROFIT RATIO

Gross Profit Margin Ratio, sometimes also referred to as gross margin, is a type of
profitability ratio. It helps to measure how much profit a company makes from the
sale of goods and services after deducting the direct costs.
12
In simple words, it is a simple metric to measure the company’s profitability. Also, it
helps to evaluate how efficiently the company is using its labour and raw materials
during the production process.
Gross profit ratio = (Gross profit/Net sales) *100
NET PROFIT RATIO

The net profitability ratio, also referred to as the net profit margin, is a way to
measure a business' financial performance or profitability with expenses, including
interests and taxes.
You can use the net profitability ratio to determine the financial value of a company,
as it outlines the relationship between the net profit after taxes and net sales in a
business. It helps businesses determine whether their current business practices
are generating revenue.
Net profit ratio= (Net profit/Net sales) *100
OPERATING RATIO
Operating cost ratio or operating expense ratio, the operating ratio compares
operating expenses to net sales.
It's a common metric companies use to determine how efficient their management
is at keeping operating costs low while also earning revenue or making sales.
Companies in industries that require a large percentage of revenue to sustain

operations usually use this calculation.
Operating ratio= (Operating expenses/Net sales) *100
RETURN ON INVESTMENT RATIO

Return on investment is a simple ratio that divides the net profit (or loss) from an
investment by its cost.
13
Because it is expressed as a percentage, you can compare the effectiveness or
profitability of different investment choices.
Return on Investment= (Profit before interest and tax/Capital employed) *100
RETURN ON ASSETS
Return on assets (ROA) is a ratio that tells you how much profit a company earns
from its resources and assets.
This information is valuable to a company's owners and management team and

investors because it is an indication of how well the company uses its resources and
assets to generate a profit.
Return on Assets = (Net profit after tax/ Total assets) *100
FIXED ASSET TURN OVER RATIO

Fixed asset turnover is the ratio of net sales divided by average fixed assets. This
ratio is one of the efficiency ratios that analysts use to determine the overall effective
utilization of the resources by a company.
It measures the productivity of the company’s fixed assets to generate revenue. In

other words, it indicates how efficiently the management has been able to put to use
its fixed investments to earn more and more revenue.
Fixed assets turnover ratio=Net sales/Fixed assets
TREND ANALYSIS
Evaluates an organization’s financial information over a period of time. Periods may
be measured in months, quarters, or years, depending on the circumstances. The
goal is to calculate and analyze the amount change and percent change from one
period to the next.
14
Trend analysis of financial statements helps information users to discern percentage
changes over time in the selected data.
It is a technique of studying the operational results and financial position over a

series of years. Using the previous years’ data of a business enterprise, trend
analysis can be done to observe the percentage changes over time in the selected
data.
The trend percentage is the percentage relationship, in which each item of different
years bear to the same item in the base year. Trend analysis is important because,
with its long run view, it may point to basic changes in the nature of the business.
By looking at a trend in a particular ratio, one may find whether the ratio is falling,
rising or remaining relatively constant. From this observation, a problem is detected
or the sign of good or poor management is detected.
Trend percentage = (Current year ÷ Base year) *100
15
CHAPTER-4
DATA ANALYSIS AND INTERPRETATION
4.1 RATIO ANALYSIS
4.1.1LIQUIDITY RATIO
4.1.1.1 CURRENT RATIO
Curren
Year Capital & Liabilities Assets t Ratio
Cash
and Balances
Balance with
s Banks
Other with & Money
liabilites Reserv at call & Loans &
Deposit and e Bank short Advance Other
s provisions of India notice s Assets
₹ ₹ ₹ ₹ ₹
23,70,0 11,58,49,14 2,47,75 1,47,92,5 ₹ 4,51,47,8 12.896
2017 79.00 5.00 7.00 3,208.00 - 40.00 79253
₹ ₹ ₹ ₹ ₹
1,20,42, 10,64,66,83 33,40,2 89,78,76, ₹ 71,19,54, 13.612
2018 943.00 0.00 92.00 208.00 - 408.00 13398
₹ ₹
94,75,9 ₹ 10,90,2 ₹ ₹
1,666.0 2,17,94,15,9 8,399.0 1,46,77,7 ₹ 1,23,17,0 0.8981
2019 0 87.00 0 4,224.00 - 5,297.00 45522
₹ ₹
8,55,03, ₹ 32,69,5 ₹ ₹
12,137. 2,16,22,38,6 6,650.0 4,54,62,9 ₹ 2,63,24,0 0.7006
2020 00 07.00 0 1,831.00 - 9,712.00 41553
₹ ₹
22,99,6 ₹ 85,41,2 ₹ ₹
8,51,06 3,00,44,36,7 8,200.0 6,29,45,4 ₹ 2,80,03,9 0.3826
2021 1.00 71.00 0 3,972.00 - 2,834.00 37394
₹ ₹
36,91,7 ₹ 2,67,28, ₹ ₹ ₹
2,18,00 3,36,32,40,0 07,000. 9,73,06,5 1,56,20,0 2,79,44,2 0.3776
2022 0.00 00.00 00 3,000.00 00.00 6,000.00 89499
TABLE: 4.1.1.1 CURRENT RATIO
16
Current Ratio
16
14
12
10
8
6
4
2
0
2017 2018 2019 2020 2021 2022
CHART: 4.1.1.1 CURRENT RATIO

INFERENCE
It shows that current ratio(12.89) is higher in (2017) and its suddenly decrease in
corresponding years. The current year (2022) found that the current ratio is (0.377)
which is less than one. It indicate that the company struggle to meet its short term
obligations.
17
4.1.1.2 QUICK RATIO
Y
ea Quick
r Capital & Liabilities Assets Ratio
Balances
Cash and with
Balances Banks &
with Money
Reserve at call &
Other liabilites Bank of short Other
Deposits and provisions India notice Assets
₹ ₹ ₹ ₹ ₹
20 23,70,079. 11,58,49,145.0 2,47,757.0 1,47,92,53 4,51,47,84 12.89
17 00 0 0 ,208.00 0.00 6793
₹ ₹ ₹ ₹ ₹
20 1,20,42,94 10,64,66,830.0 33,40,292. 89,78,76,2 71,19,54,4 13.61
18 3.00 0 00 08.00 08.00 2134
₹ ₹ ₹ ₹ ₹
20 94,75,91,6 2,17,94,15,987. 10,90,28,3 1,46,77,74 1,23,17,05 0.898
19 66.00 00 99.00 ,224.00 ,297.00 1455
₹ ₹ ₹ ₹ ₹
20 8,55,03,12, 2,16,22,38,607. 32,69,56,6 4,54,62,91 2,63,24,09 0.700
20 137.00 00 50.00 ,831.00 ,712.00 6416
₹ ₹ ₹ ₹ ₹
20 22,99,68,5 3,00,44,36,771. 85,41,28,2 6,29,45,43 2,80,03,92 0.382
21 1,061.00 00 00.00 ,972.00 ,834.00 6374
₹ ₹ ₹ ₹ ₹
20 36,91,72,1 3,36,32,40,000. 2,67,28,07 9,73,06,53 2,79,44,26 0.377
22 8,000.00 00 ,000.00 ,000.00 ,000.00 3017
TABLE: 4.1.1.2 QUICK RATIO
18
Quick Ratio
16
14
12
10
8
6
4
2
0
2017 2018 2019 2020 2021 2022
CHART: 4.1.1.2 QUICK RATIO

INFERENCE
It shows that Quick ratio(12.89) is higher in (2017) and its suddenly decrease in
corresponding years. The current year (2022) found that the Quick ratio is (0.377)
which is less than one. It indicate that the company struggle to meet its short term
obligations.It means it doesn't have enough quick assets to meet all its short-term
obligations. If it suffers an interruption, it may find it difficult to raise the cash to pay.
19
4.1.1.3 ABSOLUTE LIQUIDITY RATIO
Absolute
Ye Liquidity
ar Capital & Liabilities Assets Ratio
Cash and
Balances Balances
with with Banks
Reserve & Money
Other liabilites Bank of at call &
Deposits and provisions India short notice
₹ ₹ ₹
20 23,70,079.0 ₹ 2,47,757.0 1,47,92,53,
17 0 11,58,49,145.00 0 208.00 12.51489322
₹ ₹ ₹
20 1,20,42,943. ₹ 33,40,292. 89,78,76,2
18 00 10,64,66,830.00 00 08.00 7.604575363
₹ ₹ ₹ ₹
20 94,75,91,66 2,17,94,15,987.0 10,90,28,3 1,46,77,74,
19 6.00 0 99.00 224.00 0.504252883
₹ ₹ ₹ ₹
20 8,55,03,12,1 2,16,22,38,607.0 32,69,56,6 4,54,62,91,
20 37.00 0 50.00 831.00 0.454910189
₹ ₹ ₹ ₹
20 22,99,68,51, 3,00,44,36,771.0 85,41,28,2 6,29,45,43,
21 061.00 0 00.00 972.00 0.274935312
₹ ₹ ₹ ₹
20 36,91,72,18, 3,36,32,40,000.0 2,67,28,07, 9,73,06,53,
22 000.00 0 000.00 000.00 0.307927482
TABLE: 4.1.1.3 ABSOLUTE LIQUIDITY RATIO
20
Absolute Liquidity Ratio
14
12
10
0
2017 2018 2019 2020 2021 2022
CHART: 4.1.1.3 ABSOLUTE LIQUIDITY RATIO

INFERENCE
It shows that Absolute liquidity ratio(7.60) is higher in (2017) and its suddenly
decrease in corresponding years. The current year (2022) found that the Absolute
liquidity ratio is (0.307) It indicate that the company struggle to meet its short term
obligations.It means it doesn't have enough quick assets to meet all its short-term
21
4.1.2 PROFITABILITY RATIO
4.1.2.1 GROSS PROFIT RATIO
Year Interest Earned Interest Expended Gross Profit Gross Profit Ratio
2017 ₹ 5,01,41,265.00 ₹ 10,840.00 ₹ 5,01,30,425.00 1.00
2018 ₹ 39,52,65,857.00 ₹ 3,86,486.00 ₹ 39,48,79,371.00 1.00
2019 ₹ 46,42,09,331.00 ₹ 85,37,467.00 ₹ 45,56,71,864.00 0.98
2020 ₹ 45,75,67,936.00 ₹ 13,59,93,347.00 ₹ 32,15,74,589.00 0.70
2021 ₹ 80,44,29,672.00 ₹ 45,90,80,921.00 ₹ 34,53,48,751.00 0.43
2022 ₹ 1,28,45,59,000.00 ₹ 71,12,43,000.00 ₹ 57,33,16,000.00 0.45

TABLE: 4.1.2.1 GROSS PROFIT RATIO
Gross profit ratio

1.20
1.00
0.80
0.60
0.40
0.20
0.00
2017 2018 2019 2020 2021 2022
CHART: 4.1.2.1 GROSS PROFIT RATIO

INFERENCE
It shows that Gross profit ratio 2017 as 99.98% higher and in 2022 as 44.63% it as
gradually decreases. It shows that decrease in profit margins can indicate a highly
competitive market.
22
4.1.2.2 NET PROFIT RATIO
Year Interest Earned Net Profit/Net Loss Net Profit Ratio

2017 ₹ 5,01,41,265.00 ₹ 2,22,17,608.00 0.44
2018 ₹ 39,52,65,857.00 ₹ 97,53,705.00 0.02
2019 ₹ 46,42,09,331.00 ₹ -1,65,10,07,490.00 -3.56
2020 ₹ 45,75,67,936.00 ₹ -3,34,01,34,041.00 -7.30
2021 ₹ 80,44,29,672.00 ₹ -3,20,54,38,877.00 -3.98
2022 ₹ 1,28,45,59,000.00 ₹ -1,59,61,73,000.00 -1.24
TABLE: 4.1.2.2 NET PROFIT RATIO
Net profit ratio

1.00
0.00
-1.00 2017 2018 2019 2020 2021 2022
-2.00
-3.00
-4.00
-5.00
-6.00
-7.00
-8.00
CHART: 4.1.2.2 NET PROFIT RATIO

INFERENCE
It shows that net profit ratio 2017 as 99.98% higher and in 2022 as 44.63% it as
gradually decreases. It shows that decrease in net margins can indicate a highly
competitive market and less efficiency in operation management, want to control the
Expenses
23
4.1.2.3 OPERATING RATIO
Year Interest Earned Operating Expenses Operating Ratio
2017 ₹ 5,01,41,265.00 ₹ 41,68,64,397.00 8.31
2018 ₹ 39,52,65,857.00 ₹ 38,63,17,223.00 0.98
2019 ₹ 46,42,09,331.00 ₹ 2,70,40,51,809.00 5.83
2020 ₹ 45,75,67,936.00 ₹ 4,87,52,64,588.00 10.65
2021 ₹ 80,44,29,672.00 ₹ 4,94,02,31,466.00 6.14
2022 ₹ 1,28,45,59,000.00 ₹ 5,59,54,50,000.00 4.36
TABLE: 4.1.2.3 OPERATING RATIO
Operating ratio
12.00
10.00
8.00
6.00
4.00
2.00
0.00
2017 2018 2019 2020 2021 2022
CHART: 4.1.2.3 OPERATING RATIO
INFERENCE
The Operating ratio of year 2020 is 10.65 and it is gradually decreses in which in
the year 2022 is 4.36 .It shows the positively that operation expenses are controlled
and it is lesser. Expenses are less than its revenue.
24
4.1.2.4 RETURN ON INVESTMENT RATIO
I) Net Return
Y Profit Profit Issue Of Reserve Capital On
e After Before Share s& Borrowi Employe Investme
ar Tax Tax Capital Surplus ngs d nt
2
0 ₹ ₹ ₹ ₹ ₹
1 2,22,17, 3,29,65, 2,75,00,0
25,97,31 3,00,97,3
7 608.00 048.00 0,000.00 ,912.00 1,912.00 0.01
2 ₹
0 ₹ - ₹ - ₹ 3,99,99, ₹
1 97,53,70 86,28,77 1,25,00,0 78,207.0 5,24,99,7
8 5.00 1.00 0,000.00 0 8,207.00 0.00
2 ₹- ₹- ₹-
0 1,65,10, 2,22,97, ₹ 1,25,70, ₹
1 07,490.0 86,954.0 3,00,00,0 15,363.0 1,74,29,8
9 0 0 0,000.00 0 4,637.00 -1.28
2 ₹- ₹- ₹-
0 3,34,01, 4,46,36, ₹ 4,60,98, ₹-
2 34,041.0 34,398.0 3,35,00,0 82,204.0 1,25,98,8
0 0 0 0,000.00 0 2,204.00 -3.54
2 ₹- ₹- ₹- ₹
0 3,20,54, 3,26,79, ₹ 8,10,38, 16,99,6 ₹-
2 38,877.0 96,647.0 2,20,00,0 55,507.0 3,638.0 5,73,38,9
1 0 0 0,000.00 0 0 1,869.00 -0.57
2 ₹- ₹- ₹-
0 1,59,61, 1,69,46, ₹ 9,81,93, ₹-
2 73,000.0 52,000.0 2,00,00,0 77,000.0 7,81,93,7
2 0 0 0,000.00 0 7,000.00 -0.22
TABLE: 4.1.2.4 RETURN ON INVESTMENT RATIO
25
Return on investment
0.50
0.00
-0.50 2017 2018 2019 2020 2021 2022
-1.00
-1.50
-2.00
-2.50
-3.00
-3.50
-4.00
CHART: 4.1.2.4 RETURN ON INVESTMENT RATIO

INFERENCE
Return on investment is recovering for the year 2020 as(-1.28) to year 2022 as(-
0.22) even thought there is negative sign the but it shows the organization as
recover back to the profit and show the ROI as positive as soon as possible.
26
4.1.2.5 RETURN ON ASSETS
Year Net Profit After Tax Total Asset Return On Assets
2017 ₹ 2,22,17,608.00 ₹ 3,12,79,51,136.00 0.71
2018 ₹ -97,53,705.00 ₹ 8,11,84,87,980.00 -0.12
2019 ₹ -1,65,10,07,490.00 ₹ 8,86,99,92,290.00 -18.61
2020 ₹ -3,34,01,34,041.00 ₹ 16,45,26,68,540.00 -20.30
2021 ₹ -3,20,54,38,877.00 ₹ 30,61,73,95,963.00 -10.47
2022 ₹ -1,59,61,73,000.00 ₹ 45,01,10,81,000.00 -3.55
TABLE: 4.1.2.5 RETURN ON ASSETS
Return on Assets
5.00
0.00
2017 2018 2019 2020 2021 2022
-5.00
-10.00
-15.00
-20.00
-25.00
CHART: 4.1.2.5 RETURN ON ASSETS

INFERENCE
Return on Asset is recovering for the year 2020 as(-20.30) to year 2022 as(-3.55)
even thought there is negative sign the but it shows the organization as recover
back to the profit and show the ROA as positive as soon as possible show the proper
utilization of assets.
27
4.1.2.6 FIXED ASSET TURN OVER RATIO
Y Depreciation
Reserves & Fixed Net Fixed Fixed Asset Turn
ea On Fixed
Surplus Assets Asset Over Ratio (Net)
r Assets
₹ ₹ ₹
20 ₹
25,97,31,9 4,78,60,35 4,60,13,88 5.64
17 18,46,473.00
12.00 5.00 2.00
₹ ₹ ₹
20 ₹
3,99,99,78, 6,74,39,43 5,77,83,71 69.22
18 96,55,728.00
207.00 8.00 0.00
₹- ₹ ₹
20 ₹
1,25,70,15, 2,94,86,96 2,87,23,34 -0.44
19 7,63,61,271.00
363.00 ,101.00 ,830.00
₹- ₹ ₹ ₹
20
4,60,98,82, 2,00,45,16 95,35,58,355.0 1,05,09,58 -4.39
20
204.00 ,878.00 0 ,523.00
₹- ₹ ₹ ₹
20
8,10,38,55, 1,57,74,32 62,40,91,310.0 95,33,41,2 -8.50
21
507.00 ,606.00 0 96.00
₹- ₹ ₹ ₹ -
20
9,81,93,77, 78,87,12,0 80,61,29,000.0 1,74,17,00 -563.78
22
000.00 00.00 0 0.00
TABLE: 4.1.2.6 FIXED ASSET TURN OVER RATIO
28
Fixed asset turn over ratio (net)
200.00
100.00
0.00
2017 2018 2019 2020 2021 2022
-100.00
-200.00
-300.00
-400.00
-500.00
-600.00
CHART: 4.1.2.6 FIXED ASSET TURN OVER RATIO
INFERENCE
Fixed asset turn over ratio as decreased in 2022 as(-563.78) compared to 2021 as(-
8.50) it shows that the fixed as are not fully utilized to manage its internal problems
but it does’t tells about how to manage the fixed asset because its varies based
upon the industry.
29
4.2 TREND ANALYSIS
4.2.1 CURRENT ASSET
Year Current Asset Current Asset Trend Analysis
2017 ₹ 1,52,46,48,805.00 100

2018 ₹ 1,61,31,70,908.00 105.8060652
2019 ₹ 2,80,85,07,920.00 184.2068751
2020 ₹ 7,50,56,58,193.00 492.2876776
2021 ₹ 9,94,90,65,006.00 652.5479818
2022 ₹ 15,21,35,06,000.00 997.8367444
TABLE: 4.2.1 CURRENT ASSET TREND ANALYSIS
Current asset trend Analysis

1200
1000
800
600
400
200
0
2017 2018 2019 2020 2021 2022
CHART: 4.2.1 CURRENT ASSET TREND ANALYSIS
INFERENCE
The trend analysis shows that there is a continuous increase in the current asset
from year to year. Between 2017 and 2018, the current assets increased by 5.81%.
The following year, 2019, it increased by a significant percentage of 84.40%. The
growth rate further accelerated in 2020 and 2021, with a growth rate of 292.08%
and 32.39%, respectively. In 2022, the growth rate decreased compared to the
previous years but still had a growth rate of 53.22% compared to the previous year.
30
4.2.2 NET PROFIT/NET LOSS
Trend Analysis Of Net
Year Net Profit/Net Loss
Profit/ Net Loss
2017
2,22,17,608 100
2018
97,53,705 43.90079
2019
-1,65,10,07,490 -7431.08
2020
-3,34,01,34,041 -15033.7
2021
-3,20,54,38,877 -14427.5
2022
-1,59,61,73,000 -7184.27
TABLE: 4.2.2 NET PROFIT/NET LOSS TREND ANALYSIS
Trend Analysis of Net profit / Net Loss

2000
0
-2000 2017 2018 2019 2020 2021 2022
-4000
-6000
-8000
-10000
-12000
-14000
-16000
CHART: 4.2.2 NET PROFIT/NET LOSS TREND ANALYSIS
INFERENCE
The trend analysis of net profit/loss indicates that the company has been facing
financial challenges for the past few years. The percentage decline in net profit/loss
has been increasing, with a decline of 56% in 2018, a loss of 7431% in 2019, and a
loss of 15033% in 2020. Although the decline in net loss reduced to 14427% in 2021,
it is still quite significant.
31
4.3 COMMON SIZE BALANCE SHEET
COMMON SIZE BALANCE SHEET
PARTICULARS 2017 % 2018 %
CAPITAL & LIABILITIES
CAPITAL 2,75,00,00,000 88 4,00,00,00,000 49.27
Reserves & Surplus 25,97,31,912 8 3,99,99,78,207 49.27
Deposits 23,70,079 0 1,20,42,943 0.15
Borrowing 0 0
Other liabilites and
provisions 11,58,49,145 4 10,64,66,830 1.31
TOTAL 3,12,79,51,136 100 8,11,84,87,980 100.00
ASSETS
Cash and Balances with

Reserve Bank of India 2,47,757 0 33,40,292 0.04
Balances with Banks &

Money
at call & short notice 1,47,92,53,208 47 89,78,76,208 11.06
Investments 1,55,54,41,976 50 6,43,78,77,634 79.30
Loans & Advances 0 0
Fixed Assets 4,78,60,355 2 6,74,39,438 0.83
Other Assets 4,51,47,840 1 71,19,54,408 8.77
TOTAL 3,12,79,51,136 100 8,11,84,87,980 100.00
Contingent Liabilities 0 2500000
Bills for Collection 0 0

TABLE: 4.3.1 Common Size Balance Sheet for the year 2017-2018
32
CAPITAL 4,00,00,00,000 49 7,00,00,00,000 78.92
Reserves & Surplus 3,99,99,78,207 49 -1,25,70,15,363 -14.17
Deposits 1,20,42,943 0 94,75,91,666 10.68
Borrowing 0 0
provisions 10,64,66,830 1 2,17,94,15,987 24.57
TOTAL 8,11,84,87,980 100 8,86,99,92,290 100.00
ASSETS

Reserve Bank of India 33,40,292 0 10,90,28,399 1.23

Money
at call & short notice 89,78,76,208 11 1,46,77,74,224 16.55
Investments 6,43,78,77,634 79 3,11,27,88,269 35.09
Fixed Assets 6,74,39,438 1 2,94,86,96,101 33.24
Other Assets 71,19,54,408 9 1,23,17,05,297 13.89
TOTAL 8,11,84,87,980 100 8,86,99,92,290 100.00
Contingent Liabilities 2500000 25,00,000

33
CAPITAL 7,00,00,00,000 79 10,35,00,00,000 62.91
Reserves & Surplus -1,25,70,15,363 -14 -4,60,98,82,204 -28.02
Deposits 94,75,91,666 11 8,55,03,12,137 51.97
Borrowing 0 0
provisions 2,17,94,15,987 25 2,16,22,38,607 13.14
TOTAL 8,86,99,92,290 100 16,45,26,68,540 100.00
ASSETS

Reserve Bank of India 10,90,28,399 1 32,69,56,650 1.99

Money
at call & short notice 1,46,77,74,224 17 4,54,62,91,831 27.63
Investments 3,11,27,88,269 35 6,94,24,93,469 42.20
Fixed Assets 2,94,86,96,101 33 2,00,45,16,878 12.18
Other Assets 1,23,17,05,297 14 2,63,24,09,712 16.00
TOTAL 8,86,99,92,290 100 16,45,26,68,540 100.00
Contingent Liabilities 25,00,000 25,00,000

34
CAPITAL 10,35,00,00,000 63 12,55,00,00,000 40.99
Reserves & Surplus -4,60,98,82,204 -28 -8,10,38,55,507 -26.47
Deposits 8,55,03,12,137 52 22,99,68,51,061 75.11
Borrowing 0 16,99,63,638 0.56

provisions 2,16,22,38,607 13 3,00,44,36,771 9.81
TOTAL 16,45,26,68,540 100 30,61,73,95,963 100.00
ASSETS

Reserve Bank of India 32,69,56,650 2 85,41,28,200 2.79

Money
Investments 6,94,24,93,469 42 19,09,08,98,351 62.35
Fixed Assets 2,00,45,16,878 12 1,57,74,32,606 5.15
Other Assets 2,63,24,09,712 16 2,80,03,92,834 9.15
TOTAL 16,45,26,68,540 100 30,61,73,95,963 100.00

35
CAPITAL 12,55,00,00,000 41 14,55,00,00,000 32.32
Reserves & Surplus -8,10,38,55,507 -26 -9819377000 -21.81
Deposits 22,99,68,51,061 75 36,91,72,18,000 82.01
Borrowing 16,99,63,638 1 0
provisions 3,00,44,36,771 10 3,36,32,40,000 7.47
TOTAL 30,61,73,95,963 100 45,01,10,81,000 100
ASSETS

Reserve Bank of India 85,41,28,200 3 2,67,28,07,000 5.93

Money
Investments 19,09,08,98,351 62 29,00,88,63,000 64.44
Loans & Advances 0 1,56,20,000 0.03
Fixed Assets 1,57,74,32,606 5 78,87,12,000 1.75
Other Assets 2,80,03,92,834 9 2,79,44,26,000 6.20
TOTAL 30,61,73,95,963 100 45,01,10,81,000 100

36
4.4 COMPARATIVE BALANCE SHEET
COMPARATIVE BALANCE SHEET
INCREASE/
PARTICULARS 2017 2018 DECREASE %
CAPITAL &
LIABILITIES
CAPITAL 2,75,00,00,000 4,00,00,00,000 1,25,00,00,000 0.45
Reserves & Surplus 25,97,31,912 3,99,99,78,207 3,74,02,46,295 14.40
Deposits 23,70,079 1,20,42,943 96,72,864 4.08
Borrowing 0 0
provisions 11,58,49,145 10,64,66,830 -93,82,315 -0.08
TOTAL 3,12,79,51,136 8,11,84,87,980 4,99,05,36,844 1.60
ASSETS
Cash and Balances
with
Reserve Bank of
India 2,47,757 33,40,292 30,92,535 12.48
Balances with
Banks & Money
at call & short
notice 1,47,92,53,208 89,78,76,208 -58,13,77,000 -0.39
Investments 1,55,54,41,976 6,43,78,77,634 4,88,24,35,658 3.14
Fixed Assets 4,78,60,355 6,74,39,438 1,95,79,083 0.41
Other Assets 4,51,47,840 71,19,54,408 66,68,06,568 14.77
TOTAL 3,12,79,51,136 8,11,84,87,980 4,99,05,36,844 1.60
Contingent
Liabilities 0 2500000
TABLE: 4.4.1 Comparative Balance Sheet for the year 2017-2018
37
INCREASE/
CAPITAL &
LIABILITIES
CAPITAL 4,00,00,00,000 7,00,00,00,000 3,00,00,00,000 0.75
Reserves & Surplus 3,99,99,78,207 -1,25,70,15,363 -5,25,69,93,570 -1.31
Deposits 1,20,42,943 94,75,91,666 93,55,48,723 77.68
Borrowing 0 0
provisions 10,64,66,830 2,17,94,15,987 2,07,29,49,157 19.47
TOTAL 8,11,84,87,980 8,86,99,92,290 75,15,04,310 0.09
ASSETS
Cash and Balances
with
Reserve Bank of India 33,40,292 10,90,28,399 10,56,88,107 31.64
Balances with Banks

& Money
at call & short notice 89,78,76,208 1,46,77,74,224 56,98,98,016 0.63
Investments 6,43,78,77,634 3,11,27,88,269 -3,32,50,89,365 -0.52
Fixed Assets 6,74,39,438 2,94,86,96,101 2,88,12,56,663 42.72
Other Assets 71,19,54,408 1,23,17,05,297 51,97,50,889 0.73
TOTAL 8,11,84,87,980 8,86,99,92,290 75,15,04,310 0.09
Contingent Liabilities 2500000 25,00,000

38
INCREASE/
CAPITAL &
LIABILITIES
CAPITAL 7,00,00,00,000 10,35,00,00,000 3,35,00,00,000 0.48
Reserves & Surplus -1,25,70,15,363 -4,60,98,82,204 -3,35,28,66,841 2.67
Deposits 94,75,91,666 8,55,03,12,137 7,60,27,20,471 8.02
Borrowing 0 0
provisions 2,17,94,15,987 2,16,22,38,607 -1,71,77,380 -0.01
TOTAL 8,86,99,92,290 16,45,26,68,540 7,58,26,76,250 0.85
ASSETS
Cash and Balances
with
Reserve Bank of
India 10,90,28,399 32,69,56,650 21,79,28,251 2.00
Balances with
Banks & Money
at call & short
notice 1,46,77,74,224 4,54,62,91,831 3,07,85,17,607 2.10
Investments 3,11,27,88,269 6,94,24,93,469 3,82,97,05,200 1.23
Fixed Assets 2,94,86,96,101 2,00,45,16,878 -94,41,79,223 -0.32
Other Assets 1,23,17,05,297 2,63,24,09,712 1,40,07,04,415 1.14
TOTAL 8,86,99,92,290 16,45,26,68,540 7,58,26,76,250 0.85
Contingent
Liabilities 25,00,000 25,00,000
39
INCREASE/
CAPITAL &
LIABILITIES
CAPITAL 10,35,00,00,000 12,55,00,00,000 2,20,00,00,000 0.21
Reserves &
Surplus -4,60,98,82,204 -8,10,38,55,507 -3,49,39,73,303 0.76
Deposits 8,55,03,12,137 22,99,68,51,061 14,44,65,38,924 1.69
Borrowing 0 16,99,63,638
provisions 2,16,22,38,607 3,00,44,36,771 84,21,98,164 0.39
TOTAL 16,45,26,68,540 30,61,73,95,963 14,16,47,27,423 0.86
ASSETS
Cash and
Balances with
Reserve Bank of
India 32,69,56,650 85,41,28,200 52,71,71,550 1.61
Balances with
Banks & Money
at call & short
notice 4,54,62,91,831 6,29,45,43,972 1,74,82,52,141 0.38
Investments 6,94,24,93,469 19,09,08,98,351 12,14,84,04,882 1.75
Fixed Assets 2,00,45,16,878 1,57,74,32,606 -42,70,84,272 -0.21
Other Assets 2,63,24,09,712 2,80,03,92,834 16,79,83,122 0.06
0
TOTAL 16,45,26,68,540 30,61,73,95,963 14,16,47,27,423 0.86
Contingent
Liabilities 25,00,000 25,00,000
40
INCREASE/
CAPITAL &
LIABILITIES
CAPITAL 12,55,00,00,000 14,55,00,00,000 2,00,00,00,000 0.16
Reserves &
Surplus -8,10,38,55,507 -9819377000 -1,71,55,21,493 0.21
Deposits 22,99,68,51,061 36,91,72,18,000 13,92,03,66,939 0.61
Borrowing 16,99,63,638 0 -16,99,63,638 -1.00

provisions 3,00,44,36,771 3,36,32,40,000 35,88,03,229 0.12
TOTAL 30,61,73,95,963 45,01,10,81,000 14,39,36,85,037 0.47
ASSETS
Cash and
Balances with
Reserve Bank of
India 85,41,28,200 2,67,28,07,000 1,81,86,78,800 2.13
Balances with
Banks & Money
at call & short
notice 6,29,45,43,972 9,73,06,53,000 3,43,61,09,028 0.55
Investments 19,09,08,98,351 29,00,88,63,000 9,91,79,64,649 0.52
Loans & Advances 0 1,56,20,000
Fixed Assets 1,57,74,32,606 78,87,12,000 -78,87,20,606 -0.50

Other Assets 2,80,03,92,834 2,79,44,26,000 -59,66,834 0.00
TOTAL 30,61,73,95,963 45,01,10,81,000 14,39,36,85,037 0.47
Contingent
Liabilities 25,00,000 25,00,000
41
CHAPTER-5
FINDINGS, SUGGESTIONS AND CONCLUSION
5.1. FINDINGS
• In 2017 and 2018, the current ratio was higher than 12, which indicates that
the company had more than enough short-term assets to cover its short-term
liabilities. However, in 2019, the current ratio dropped to less than 1, which
means that the company's short-term liabilities exceeded its short-term
assets, and the situation did not improve in 2020 and 2021, where the current
ratio remained below 1. In 2022, there was a slight improvement in the current
ratio as compared to 2021, but it remained below 1. The increase in assets
from the previous year was mainly due to the addition of balances with banks
and money at call and short notice. Therefore, based on the current ratio, the
company needs to improve its short-term liquidity position by either
increasing its short-term assets or reducing its short-term liabilities.
• The Quick Ratio of the entity has decreased over the years, from 12.89 in
2017 to 0.38 in 2022, indicating a decrease in its ability to meet its short-term
financial obligations. The entity has seen a significant increase in its Capital
& Liabilities from ₹23,70,079.00 in 2017 to ₹36,91,72,18,000.00 in 2022,
indicating growth in its business. The Assets of the entity have also increased
from ₹1,47,92,53,208.00 in 2017 to ₹9,73,06,53,000.00 in 2022, indicating a
growth in its financial resources. However, the decrease in the Quick Ratio in
the later years indicates that the entity may be facing liquidity issues and may
need to take corrective measures to improve its financial position.
• In 2017, the absolute liquidity ratio was 12.51489322. In 2018, the absolute
liquidity ratio was 7.604575363. In 2019, the absolute liquidity ratio was
0.504252883. In 2020, the absolute liquidity ratio was 0.454910189. In 2021,
the absolute liquidity ratio was 0.274935312. In 2022, the absolute liquidity
ratio was 0.307927482. The absolute liquidity ratio is a measure of a bank's
ability to meet its obligations in the short term, particularly its ability to pay off
all of its current liabilities with its most liquid assets. A higher absolute liquidity
ratio indicates a better ability to meet short-term obligations. As seen in the
table, the bank's absolute liquidity ratio has decreased over the years,
indicating a potential decrease in its ability to meet short-term obligations.
42
• The gross profit ratio, which measures the company's gross profit as a
percentage of the interest earned, was 1.00 in 2017 and 2018, but it
decreased to 0.43 in 2021 before slightly increasing to 0.45 in 2022. The
company's financial performance in 2020 and 2021 was affected by the
increase in interest expenses, which led to a decline in gross profit and gross
profit ratio. However, in 2022, the company's financial performance improved
with an increase in gross profit and gross profit ratio compared to the previous
year. The company's interest earned and interest expended increased over
the years, indicating growth in its operations, but the increase in interest
expenses needs to be monitored to maintain a healthy gross profit ratio.
• The interest earned by the company has been increasing steadily over the
years, with a significant jump from 2017 to 2018 and a further increase in
2021 and 2022. The company has been facing losses for the past four years,
with the highest loss being in 2020. However, there has been a significant
improvement in 2022 with the company incurring a relatively smaller loss.
The net profit ratio has been negative for the past four years, indicating that
the company is incurring losses. However, there has been an improvement
in the net profit ratio in 2022 compared to the previous years. Overall, the
company has been facing losses for the past few years, but there are some
signs of improvement in 2022. The company needs to analyze its operations
and take necessary steps to minimize losses and increase profitability in the
future.
• The operating expenses of the company have also been increasing over the
years, with a significant jump in 2020. However, there has been a slight
decrease in 2022 compared to the previous year. The operating ratio of the
company has been fluctuating over the years, with the highest ratio in 2020
and the lowest ratio in 2018. The operating ratio is an indicator of how
efficiently a company is using its resources to generate revenue. A lower
operating ratio is better as it indicates that the company is operating more
efficiently. Overall, the company needs to analyze its operating expenses and
take necessary steps to reduce them, which can result in a lower operating
ratio and better profitability. While the interest earned by the company has
been increasing, the operating expenses have also been increasing, which
has resulted in lower profitability for the company.
43
• The company had a positive return on investment in 2017 and a negative
return in subsequent years, with the lowest being in 2020. In 2021, the
company had a slightly better return on investment compared to 2020.
Overall, the company has had a mixed financial performance over the years,
with losses in most years except for 2017. The company has been issuing
share capital every year and has reduced its borrowings significantly. The
company's return on investment has been negative in recent years, indicating
a need for improvement in its operational and financial performance.
• The return on assets (ROA) has been negative in all years since 2018, with
the lowest being in 2020. This indicates that the company has not been
generating sufficient profits from its assets. However, the ROA has improved
in 2021 and 2022, which may indicate that the company is taking steps to
improve its operational efficiency. Overall, the company has been facing
losses in recent years, but its total assets have been increasing, indicating
that it is investing in its business. The negative ROA indicates that the
company needs to focus on improving its profitability and operational
efficiency. However, the slight improvement in ROA in recent years may
indicate that the company is taking steps to address these issues.
• The Reserves & Surplus have been fluctuating over the years, with a
significant increase in 2018 but a steady decline since then, reaching a
negative value in 2022. The Fixed Assets have been increasing steadily,
except for a decrease in 2021. The Depreciation on Fixed Assets has been
increasing over the years, except for a decrease in 2022. The Net fixed asset
has been fluctuating over the years, with a significant decrease in 2020 but a
recovery in 2021. The Fixed asset turn over ratio (net) has been decreasing
significantly over the years, with a negative ratio in 2022 indicating that the
company is not generating sufficient revenue from its fixed assets.
• The company's current assets have been consistently increasing over the
years, with a significant jump in 2020 and 2021. This indicates that the
company has been able to effectively manage its short-term assets and has
likely seen an increase in sales or profitability. The current asset trend
analysis shows that the company's current assets have almost doubled from
2017 to 2022, indicating a strong growth trajectory. The increase in current
assets could also suggest that the company is expanding its operations or
44
investing in new ventures. Overall, the trend in the company's current assets
is positive and suggests strong financial performance.
• The net profit/net loss of the company has been fluctuating over the years. In
2017, the net profit was 2,22,17,608, which was the base year for trend
analysis. In 2018, the net profit decreased to 97,53,705, which is a decrease
of 56.1% compared to the previous year. In 2019, the company faced a huge
loss of 1,65,10,07,490, which is a significant decrease of 1792.77%
compared to the previous year. The trend continued in 2020 with a net loss
of 3,34,01,34,041, which is a decrease of 102.03% compared to the previous
year. In 2021, the company faced a net loss of 3,20,54,38,877, which is a
decrease of 95.91% compared to the previous year. However, in 2022, the
net loss decreased to 1,59,61,73,000, which is a decrease of 50.31%
compared to the previous year. Overall, the company's net profit/loss trend
has been negative, with huge losses incurred in recent years.
5.2 SUGGESTIONS & RECOMMENDATIONS
Based on the information provided, the company seems to be facing various

financial challenges, such as declining liquidity and profitability. The current ratio and
quick ratio have declined over the years, indicating a decrease in the company's
ability to meet its short-term financial obligations. The company has also been
incurring losses for the past few years, with a negative net profit ratio. The operating
expenses of the company have been increasing, and the operating ratio has been
fluctuating over the years, indicating that the company needs to analyze its
expenses and take necessary steps to reduce them. The company has also had a
negative return on investment in recent years, indicating a need for improvement in
its operational and financial performance. Overall, the company needs to take
corrective measures to improve its liquidity and profitability, which may include
reducing its expenses, increasing its revenues, and improving its operational
efficiency.
5.3. LIMITATIONS OF STUDY
• Lack of data: There may be a lack of data available on the impact of India
Post Payments Bank (IPPB) on financial inclusion in India, which could limit
the scope of the study.
45
• Short duration of operation: IPPB is a relatively new entity, having been
launched in 2018. As a result, there may be limited data available on its long-
term impact on financial inclusion in India.
• Sample size: The study may be limited by the sample size of the population
being studied. It may be difficult to generalize the findings of the study to the
entire population of India.
• External factors: The impact of IPPB on financial inclusion in India may be
influenced by external factors such as government policies, economic
conditions, and technological advancements. These factors may be difficult
to control or measure in the study.
• Limited scope: The study may only focus on the role of IPPB in driving
financial inclusion in India, without considering other factors that may
contribute to or hinder financial inclusion in the country.
• Bias: There may be potential biases in the study, such as researcher bias or
respondent bias, which may affect the accuracy and validity of the findings.
• Lack of control group: The study may not have a control group for
comparison, which could limit its ability to establish causal relationships
between IPPB's initiatives and improvements in financial inclusion.
• Cultural differences: India is a diverse country with different cultural
backgrounds, and perceptions of financial services may vary among different
communities. This could limit the generalizability of the findings.
• User adoption: While IPPB may offer financial services in remote areas, it
may still face challenges in encouraging user adoption. This may limit the
reach of the bank's initiatives to drive financial inclusion.
• Technology limitations: Technology limitations such as network connectivity
and device compatibility may impact the ability of users to access IPPB's
digital offerings, which could limit the impact of the bank's initiatives.
• Inadequate infrastructure: In some remote areas, there may be inadequate
infrastructure such as roads and electricity supply, which may impact the
delivery of financial services and limit the impact of IPPB's initiatives.
• External competition: IPPB operates in a highly competitive market, with
several other financial institutions vying for market share. This could limit the
46
impact of IPPB's initiatives on financial inclusion if it fails to compete
effectively.
5.4. CONCLUSION
• Improve short-term liquidity position: The company needs to improve its

short-term liquidity position by either increasing its short-term assets or
reducing its short-term liabilities. This can be done by implementing effective
cash management techniques and reducing unnecessary expenses.
• Monitor interest expenses: The increase in interest expenses needs to be
monitored to maintain a healthy gross profit ratio. The company can explore
options such as debt refinancing or seeking lower interest rates from lenders
to reduce interest expenses.
• Analyze operating expenses: The company needs to analyze its operating
expenses and take necessary steps to reduce them. This can include
identifying areas of inefficiency and implementing cost-cutting measures.
• Improve profitability: The company needs to analyze its operations and take
necessary steps to minimize losses and increase profitability. This can
include exploring new revenue streams or restructuring the business to focus
on more profitable areas.
• Increase efficiency: The company needs to focus on increasing efficiency in
its operations, as indicated by the fluctuating operating ratio. This can include
optimizing processes, reducing waste, and investing in technology to
streamline operations.
• Review investments: The company needs to review its investments and
ensure that they are generating a positive return on investment. Investments
that are not performing well should be divested to free up resources for more
profitable investments.
• Reduce reliance on share capital: While share capital can be a useful source
of funding, the company should reduce its reliance on this source of financing
and explore other options such as debt financing or retaining earnings to fund
its operations.
Overall, the company needs to adopt a more proactive approach to financial

management and take necessary steps to improve its financial position. This
47
includes implementing effective financial planning and analysis, regular
monitoring of financial performance, and timely action to address any issues that
arise.
48
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2. Financial Management (Second Edition), Author P Periasamy Published
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Customer’s Satisfaction towards Value Added Services of Indian Post
Payment Bank in Selected Region of Gujarat.
4. Dipankar Monda(Dec-22),Impact of Payment Bank in Financial
Inclusion: A Case Study of India Post Payment Bank.
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Indian Postal Service Sector In Financial Inclusion With Special
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Investor’S Attitude Towards India Post Payment Bank Savings Schemes
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A Study On Evolution Of Payments Banks In India.
10. Manoj Minj Prof. Ashok Kumar Mishra Dr Ravish Kumar Soni(Aug-21),
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K.R.Gowri Shankar (Jun-21),A Study on India Post Payment Bank –
Benefits & Key challenges.
12. Gaurav Sahu Manoj Minj (Mar-21),A Study On India Post Payments
Bank.
13. Dr. Ratheesh K. Nair (Jan-21),Ready to Payments Bank after
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Payments Bank among Postal Banking Customers in Kollam-Kerala.
49
14. Thushara T.K (Dec-20),Role of Payment Banks in Financial inclusion.
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17. S. Shanmugapriya, S. Saravanan (Mar-20),Rural Investor’s Behavior
and Satisfaction Level of Financial Saving Schemes towards Post
Office.
18. Dr. V. Venkatachalam (Feb-19),Awareness Of India Post Payment Bank
Services In Coimbatore District, Tamilnadu.
19. Reena. F, Ph.D., Dr. T. Joseph(Feb-19),A Study on India Post Payments
Bank as a Tool to Drive Financial Inclusion in India.
20. Anahita Singh Sonalika Bhadouria (Jan-19),Payment Banks on
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22. Dr.S.Tamilarasi Ms. D.Bhuvaneswari(Oct-18),Indian Post Payments
Bank, A New Initiative By The Government Of India – An Awareness
And Perspective Among People In Chennai.
23. Sandesh D'Souz (Oct-18),Payment Bank: A Revolutionary step of Indian
Post Payment Bank towards financial inclusion.
24. Ashish Baghla (Aug-18),A Study On The Future Of Digital Payments In
India.
25. Parvathi Jayaprakash, R Radhakrishna Pillai (May-18),India Posts
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Payment Banks In India – Financial Inclusion.
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Animesh, Iyer Geeth (Feb-18),Role of Payment Banks in India:
Opportunities and Challenges.
50
29. Mrs. SRP. Vijaya, Dr. A.Abbas Manthiri (Aug-17),A Study on Awareness
of India Post’s Banking Services in Sivagangai District, Tamil Nadu
30. Dr. (Mrs.) K. Meena Kumari (May-17),India Post Payments Bank –
Problems and Prospect.
31. Dr. G. Sabitha Srinivas (Jan-17),Financial Inclusion-Role of Payment
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32. Chabi Gupta (Dec-16),Payment Banks And Demonetization.
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35. Dipankar Malakar (Feb-13),Role of Indian Post in Financial Inclusion.
51
ANNEXURE-I
BALANCE SHEET
2017 2018 2019 2020 2021 2022
CAPITAL &
LIABILITIES
2,75,00, 4,00,00, 7,00,00, 10,35,00 12,55,00 14,55,00
CAPITAL 00,000 00,000 00,000 ,00,000 ,00,000 ,00,000
- - - -
Reserves & 25,97,3 3,99,99, 1,25,70, 4,60,98, 8,10,38, 9819377
Surplus 1,912 78,207 15,363 82,204 55,507 000
23,70,0 1,20,42, 94,75,9 8,55,03, 22,99,68 36,91,72
Deposits 79 943 1,666 12,137 ,51,061 ,18,000
16,99,63
Borrowing 0 0 0 0 ,638 0
Other liabilites 11,58,4 10,64,6 2,17,94, 2,16,22, 3,00,44, 3,36,32,
and provisions 9,145 6,830 15,987 38,607 36,771 40,000
3,12,79, 8,11,84, 8,86,99, 16,45,26 30,61,73 45,01,10

TOTAL 51,136 87,980 92,290 ,68,540 ,95,963 ,81,000
ASSETS
Cash and
Balances with
Reserve Bank 2,47,75 33,40,2 10,90,2 32,69,56 85,41,28 2,67,28,
of India 7 92 8,399 ,650 ,200 07,000
Balances with
Banks & Money
at call & short 1,47,92, 89,78,7 1,46,77, 4,54,62, 6,29,45, 9,73,06,
notice 53,208 6,208 74,224 91,831 43,972 53,000
1,55,54, 6,43,78, 3,11,27, 6,94,24, 19,09,08 29,00,88
Investments 41,976 77,634 88,269 93,469 ,98,351 ,63,000
Loans & 1,56,20,
Advances 0 0 0 0 0 000
4,78,60, 6,74,39, 2,94,86, 2,00,45, 1,57,74, 78,87,12
Fixed Assets 355 438 96,101 16,878 32,606 ,000
4,51,47, 71,19,5 1,23,17, 2,63,24, 2,80,03, 2,79,44,
Other Assets 840 4,408 05,297 09,712 92,834 26,000
3,12,79, 8,11,84, 8,86,99, 16,45,26 30,61,73 45,01,10

TOTAL 51,136 87,980 92,290 ,68,540 ,95,963 ,81,000
Contingent 250000 25,00,0 25,00,00 25,00,00 25,00,00

Liabilities 0 0 00 0 0 0
Bills for
Collection 0 0 0 0 0 0
52
PROFIT AND LOSS ACCOUNT
2017 2018 2019 2020 2021 2022
I. INCOME
5,01,4 39,52, 46,42,0 45,75,6 80,44,2 1,28,45,
Interest earned 1,265 65,857 9,331 7,936 9,672 59,000
39,96, 27,87, 1,85,92, 9,00,55, 1,32,68, 3,32,74,
Other Income 99,021 392 991 601 86,068 82,000
44,98, 39,80, 48,28,0 54,76,2 2,13,13, 4,61,20,
TOTAL 40,286 53,249 2,322 3,537 15,740 41,000
II. EXPENDITURE
3,86,4 85,37,4 13,59,9 45,90,8 71,12,4
Interest expended 10,840 86 67 3,347 0,921 3,000
41,68, 38,63, 2,70,40, 4,87,52, 4,94,02, 5,59,54,
Operating expenses 64,397 17,223 51,809 64,588 31,466 50,000
- - - -
Provisions and 1,07,4 11,24, 57,87,7 1,12,35, 6,25,57, 9,84,79,
Contingencies 7,441 934 9,464 00,357 770 000
42,76, 38,78, 2,13,38, 3,88,77, 5,33,67, 6,20,82,
TOTAL 22,678 28,643 09,812 57,578 54,617 14,000
Extraordinary Items
Prior Period 1,99,7
Expenditure 8,311
- - - -
2,22,1 97,53, 1,65,10, 3,34,01, 3,20,54, 1,59,61,
Net Profit/Net Loss 7,608 705 07,490 34,041 38,877 73,000
Balance in Profit & - - -
Loss Account 1,66,6 69,09,5 1,64,40, 5,00,89, 8,22,87,
(Carried Forward) 3,206 01 97,989 55,059 58,000
- - - -
Profit available for 2,22,1 69,09, 1,64,40, 4,98,42, 8,21,43, 9,82,49,
Appropriation 7,608 501 97,989 32,030 93,936 31,000
APPROPRIATIONS
Transfer to
Reserves (Net) :
55,54,
Statutory Reserve 402
Grant Account - 2,47,23, 1,43,64, 246600
Capital Reserve 029 130 0
Investment
Fluctuation Reserve
Other Reserve
Special Reserve
Balance carried - - - -
over to Balance 1,66,6 69,09, 1,64,40, 5,00,89, 8,22,87, 9,82,73,
Sheet 3,206 501 97,989 55,059 58,066 97,000
- - - -
2,22,1 69,09, 1,64,40, 4,98,42, 8,21,43, 9,82,49,
TOTAL 7,608 501 97,989 32,030 93,936 31,000
53
Particulars 2017 2018 2019 2020 2021 2022
8 A. Cash Flow from
Operations
- - -
- 1,65,1 3,34,0 - 1,59,6
2,22,1 97,53, 0,07,4 1,34,0 3,20,54 1,73,0
i) Net Profit After Tax 7,608 705 90 41 ,38,877 00
-
- 1,12,3 - -
Add: Provision for Tax 1,07,4 11,24, 57,87, 5,00,3 6,25,57 98479
(inculding deffered Tax) 7,441 934 79,464 57 ,770 000
32965 - -
048. - 2,22,9 4,46,3 - -
99674 86,28, 7,86,9 6,34,3 3,26,79 16946
Profit before Tax 73 771 54 98 ,96,647 52000
ii) Adjustments:
Depreciation on Fixed 18,46, 96,55, 7,63,6 95,35, 62,40,9 80612
Assets 473 728 1,271 58,355 1,310 9000
Incorporation Expenses 55,00, 2,20,0
Written Of 522 2,088
Prior Period Item Written 1,99,7
Of 0 8,311
- 3,60,5
Less: Amount withdrawn 1,24,8 9,86,0 1,27,3 28,85,3 11934
from Grants 5,696 80 2,800 4,426 8000
-
- 3,52,9
51,38, 5,16,3 6,24,8 94,08, 33,55,5 68678
Total Adjustments 701 6,126 09 25,555 6,884 1000
Operating profit before - -
changes in Operating 5,75,9 3,52,2 - -
Assets & 2,78,2 4,30,0 4,11,7 8,08,8 2,93,24 10078
Liabilities 6,348 7,356 63 43 ,39,763 71000
iii) Adjustments for net
change in Operating
Assets &
Liabilities
- - - -
1,55,5 4,88,2 3,32,5 3,82,9 12,14,8 -
Increase in Investments 4,41,9 4,35,6 0,89,3 7,05,2 4,04,88 99179
(Net) 76 58 64 00 2 65000
54
- - - -
Increase in Other Assets 5,06,4 68,78, 5,90,2 27,72, 10,54,2 10,44,
(Net) 8,362 94,921 8,575 04,057 5,353 46,000
-
Decrease/ (Increase) in 15620
Advances 000
7,60,2 14,44,6 13920
Increase in Deposits 23,70, 96,72, 93,55, 7,20,4 5,38,92 36700
(Net) 079 864 48,723 71 4 0
-
Increase in borrowings 16,99,6 16996
(Net) 3,638 4000
- 2,07,2 -
Increase in Other 10,72, 74,84, 9,49,1 1,71,7 84,21,9 35880
Liabilities (Net) 63,465 759 58 7,380 8,164 3000
Total adjustment for net - -
change in Operating 1,49,6 5,56,8 6,39,2 3,47,8
Assets & 4,56,7 1,42,4 6,15,8 6,33,8 3,20,48 42800
Liabilties 94 74 20 33 ,70,491 68000
- -
1,46,8 5,52,5 -
Cash Flow used from 6,30,4 1,35,1 63,32, 4,41,7 27,24,3 32721
Operations (i)+(ii)+(iii) 46 18 04,057 5,010 0,728 97000
- -
21,61, 39,36,
Tax Paid 761 226
- -
1,47,0 5,52,9 -
Net Cash Flow used from 7,92,2 0,71,3 63,32, 4,41,7 27,24,3 32721
Operations 07 44 04,057 5,010 0,728 97000
B. Cash Flow used in
Investing Activities
-
- - 2,95,7 - - -
4,97,0 4,92,1 6,17,9 93,79, 19,70,0 17408
Purchase of Fixed Assets 6,828 3,121 34 132 7,038 000
-
- - 2,95,7 - - -
Net Cash Flow used in 4,97,0 4,92,1 6,17,9 93,79, 19,70,0 17408
Investing Activites 6,828 3,121 34 132 7,038 000
C. Cash Flow generated
from Financing
Activites
55
2,75,0 1,25,0 3,00,0 3,35,0
0,00,0 0,00,0 0,00,0 0,00,0 2,20,00 20000
Issue of Share Capital 00 00 00 00 ,00,000 00000
3,75,0
25,00, 0,00,0
Receipt of Grants 00,000 00
3,00,0 5,00,0 3,00,0 3,35,0
Net Cash Generated 0,00,0 0,00,0 0,00,0 0,00,0 2,20,00 20000
from Financing Activities 00 00 00 00 ,00,000 00000
Net Changes in Cash & 1,47,9 - 3,29,6
Cash Equivalent 5,00,9 57,82, 67,55, 4,45,8 2,27,54 52547
(A)+(B)+(C’) 65 84,465 86,123 58 ,23,691 88000
Cash and Cash
Equivalent at the
beginning of the year
Cash and Balance with
RBI
Balance with Banks &
Money at Call & Short
Notice
1,47,9 1,57,6
5,00,9 90,12, 8,02,6 4,87,32 71486
65 16,500 23 ,48,481 72000
Cash and Cash
Equivalent at the end of
the year
Cash and Balance with
RBI
Balance with Banks &
Money at Call & Short
Notice
1,47,9 1,57,6 4,87,3 12403
5,00,9 90,12, 8,02,6 2,48,4 7,14,86 46000
65 16,500 23 81 ,72,172 0
1,47,9 - 3,29,6
5,00,9 57,82, 67,55, 4,45,8 2,27,54 52547
65 84,465 86,123 58 ,23,691 88000
56
ANNEXURE II
ROLE OF INDIA POST PAYMENTS BANK TO DRIVE FINANCIAL INCLUSION IN INDIA
Dr. JAINAB ZAREENA ¹ & KRISHNAGOPALAN S²

1
Assistant Professor, School of Management Studies, Sathyabama Institute of Science and
Technology, Chennai, Tamil Nadu, India
2
MBA Student, School of Management Studies, Sathyabama Institute of Science and Technology,
Chennai, Tamil Nadu, India
ABSTRACT
In Indian population Majority of rural areas. Payments Bank is new categories of Bank in India on 2017.In
September 2013, committee on comprehensive financial services for small Business and Low Income
Households, headed by Nachiket Mor,was formed by RBI. On November 2015 RBI Released guidelines for
Licensing of Payments bank. India post payments bank as Main purpose is to drive financial inclusion in rural
areas. Digitalization the mode of Banking services with core Banking activities like UPI, IMPS, NEFT, RTGS,
AEPS. The parameters for India Post Payments Banks financial inclusions are Business Correspondents, Third
partyinsurance services, Basic bank deposit, Door step services, Aadhaar mobile no updates, child enrolment
Aadhaar. The objective of the project to find out the efficiency of the India Post Payments Bank using the
Liquidity ratios, Profitability Ratios to provide suitable suggest improve the financial performance of the India
Post Payments Bank.
Key words: financial inclusion, Banking services, RBI, Digitalization, financial performance.
I . INTRODUCTION
India Post Payments Bank (IPPB) was established in 2018 as a public sector company under the Department
of Posts, Ministry of Communications with the objective of providing affordable banking and financial services
to the unbanked population of India. The IPPB is aimed at bringing financial inclusion by leveraging the
extensive postal network of India, which has a presence in every nook and corner of the country.
II . OBJECTIVES OF STUDY
• To identify the function and role of India Post Payments Bank.
• To find the TrendAnalysis of India Post Payments Bank.
• To identify the difference between POSB (Post Office Savings Bank), Post LifeInsurance (PLI)
and India Post Payments Bank.
• To study the role of Indian post payment banks in financial inclusion.
• To Identify how the Head office (HO), Sub-office (SO), Branch office (BO) areutilized.
• To identify the financial Position of India Post Payments Bank
III . REVIEW OF LITERATURE
• HARSHADKUMARet.al (NOV-22) The Govt. of India aims to achieve financial inclusion by bringing
banking services to the homes of millions of Indians. By providing a full range of facilities and attractive
programs, banks can meet the diverse needs of customers.
• DIPANKAR MONDAL (DEC-22) This research is purely based on conceptual studyof the available data,
secondary in nature, of India Post Payment Bank. This study is mainly judging the available data with the
financial inclusion indicators to understand its impact of IPPB on financial inclusion. Hence it is important
to say that suitable statistical tools can be applied to analyze the inputs gathered from structured
questionnaire to find empirical conclusions.
• HIRENKUMAR RAMESHBHAI AND RAJESH M (JUL-22) India Mail plays a vital role in providing
financial assistance to the network provided there and especially tothe rural areas. It has adopted various
reform measures for innovation and technological advancement in the country.
• HARSHAD AND KANISHK (MAR-22) Payment banks focus on digital innovation and a country like
India is also geared towards a cashless and digital economy, which is achievable and flexible in terms of
the latest technological and economic conditions.
• N. SENTHILKUMAR AND L. BALASUBRAMANIAN (DEC-21) Awareness level of employees is
needed to be improved. The Namakkal Postal Division has doing wellto its postal customers. With its
86.17% post offices in rural area, it can successfullyprovide all the bank services to the rural people.
57
IV . RESEARCH DESIGN
DESCRIPTIVE RESEARCH
Descriptive research includes surveys and fact-finding enquiries of different kinds. The major purpose of
descriptive research is description of the state of affairs as it exists at present. In social science and business
research, it is quite often, the term Ex post facto research is used for descriptive research studies. The main
characteristic of this method is that the researcher has no control over the variables; she/he can only report what
has happened or what is happening. The methods of research utilized in descriptive research and survey
methods of all kinds, including comparative and correlation methods.
ANALYTICAL RESEARCH
Analytical research is a specific type of research that involves critical thinking skills and the evaluation of facts
and information relative to the research being conducted. A variety of people including students, doctors and
psychologists use analytical research during studies to find the most relevant information.
V . SOURCES OF DATA
SECONDARY DATA
Secondary data refers to the information or facts already collected such data are collected with the objective of
understanding the past status of any variable. Common sources of secondary data for social science include
censuses, information collected by government departments, organizational records and datathat was originally
collected for other research purposes. Primary data, by contrast,are collected by the investigator conducting the
research. Data was collected from Annual Report and websites of the India post. Supporting literature from
relevant sources, journals, research reports, websites etc. also formsthe sources of secondary data.
VI . TOOLS FOR ANALYSIS

RATIO ANALYSIS
A financial ratio or accounting ratio is a relative magnitude of two selected numerical values taken from an
enterprise's financial statements. Often used in accounting, there are many standard ratios used to try to evaluate
the overall financial condition of a corporation or other organization. Financial ratios may be used by managers
within a firm, by current and potential shareholders (owners) of a firm, and by a firm's creditors. Financial
analysts use financial ratios to compare the strengths and weaknesses in various companies. If shares in a
company are traded in a financial market, the market price of the shares is used in certain financial ratios.
TREND ANALYSIS
Evaluates an organization’s financial information over a period of time. Periods maybe measured in months,
quarters, or years, depending on the circumstances. The goal is to calculate and analyze the amount change and
percent change from one period to the next Trend analysis of financial statements helps information users to
discern percentagechanges over time in the selected data. It is a technique of studying the operational results
and financial position over a series of years. Using the previous years’ data of a business enterprise, trend
analysis can be done to observe the percentage changes over time in the selected data. The trend percentage is
the percentage relationship, in which each item of differentyears bear to the same item in the base year. Trend
analysis is important because,with its long run view, it may point to basic changes in the nature of the business.
By looking at a trend in a particular ratio, one may find whether the ratio is falling, rising or remaining relatively
constant. From this observation, a problem is detectedor the sign of good or poor management is detected.
VII . DATA ANALYSIS AND INTERPRETATION
CURRENT RATIO
Yea Current
r Capital & Liabilities Assets Ratio
Balances Banks
Other with & Money
liabilites Reserve Bank of at call & Loans &
Deposits and provisions India short notice Advances Other Assets
₹
201 ₹ ₹ ₹ 1,47,92,53,208.0 ₹ 12.8967925
7 23,70,079.00 11,58,49,145.00 2,47,757.00 0 ₹ - 4,51,47,840.00 3
201 ₹ ₹ ₹ ₹ ₹ 13.6121339
8 1,20,42,943.00 10,64,66,830.00 33,40,292.00 89,78,76,208.00 ₹ - 71,19,54,408.00 8
₹ ₹ ₹
201 ₹ 2,17,94,15,987.0 ₹ 1,46,77,74,224.0 1,23,17,05,297.0 0.89814552
9 94,75,91,666.00 0 10,90,28,399.00 0 ₹ - 0 2
58
₹ ₹ ₹
202 ₹ 2,16,22,38,607.0 ₹ 4,54,62,91,831.0 2,63,24,09,712.0 0.70064155
0 8,55,03,12,137.00 0 32,69,56,650.00 0 ₹ - 0 3
₹ ₹ ₹ ₹
202 22,99,68,51,061.0 3,00,44,36,771.0 ₹ 6,29,45,43,972.0 2,80,03,92,834.0 0.38263739
1 0 0 85,41,28,200.00 0 ₹ - 0 4
₹ ₹ ₹ ₹ ₹
202 36,91,72,18,000.0 3,36,32,40,000.0 2,67,28,07,000.0 9,73,06,53,000.0 2,79,44,26,000.0 0.37768949
2 0 0 0 0 ₹ 1,56,20,000.00 0 9
TABLE: 7.1 CURRENT RATIO
Current Ratio
15
10
0
2017 2018 2019 2020 2021 2022
CHART: 7.1 CURRENT RATIO

INFERENCE
It shows that current ratio(12.89) is higher in (2017) and its suddenly decrease in corresponding years. The
current year (2022) found that the current ratio is (0.377) which is less than one. It indicate that the company
struggle to meet its short term obligations.
QUICK RATIO
Year Capital & Liabilities Assets Quick Ratio

Cash and Balances Balances with
with Banks & Money
Reserve Bank of at call & short
Deposits Other liabilites and provisions India notice Other Assets
2017 ₹ 23,70,079.00 ₹ 11,58,49,145.00 ₹ 2,47,757.00 ₹ 1,47,92,53,208.00 ₹ 4,51,47,840.00 12.896793
2018 ₹ 1,20,42,943.00 ₹ 10,64,66,830.00 ₹ 33,40,292.00 ₹ 89,78,76,208.00 ₹ 71,19,54,408.00 13.612134
2019 ₹ 94,75,91,666.00 ₹ 2,17,94,15,987.00 ₹ 10,90,28,399.00 ₹ 1,46,77,74,224.00 ₹ 1,23,17,05,297.00 0.8981455
2020 ₹ 8,55,03,12,137.00 ₹ 2,16,22,38,607.00 ₹ 32,69,56,650.00 ₹ 4,54,62,91,831.00 ₹ 2,63,24,09,712.00 0.7006416
2021 ₹ 22,99,68,51,061.00 ₹ 3,00,44,36,771.00 ₹ 85,41,28,200.00 ₹ 6,29,45,43,972.00 ₹ 2,80,03,92,834.00 0.3826374
2022 ₹ 36,91,72,18,000.00 ₹ 3,36,32,40,000.00 ₹ 2,67,28,07,000.00 ₹ 9,73,06,53,000.00 ₹ 2,79,44,26,000.00 0.3773017

TABLE: 7.2 QUICK RATIO
Quick Ratio
15
10
0
2017 2018 2019 2020 2021 2022
CHART: 7.2 QUICK RATIO

INFERENCE
It shows that Quick ratio(12.89) is higher in (2017) and its suddenly decrease in corresponding years. The
current year (2022) found that the Quick ratio is (0.377) which is less than one. It indicate that the company
struggle to meet its short term obligations.It means it doesn't have enough quick assets to meet all its short-
term obligations. If it suffers an interruption, it may find it difficult to raise the cash to pay.
59
ABSOLUTE LIQUIDITY RATIO
Year Capital & Liabilities Assets Absolute Liquidity Ratio

Cash and Balances Balances with
with Banks & Money
Reserve Bank of at call & short
Deposits Other liabilites and provisions India notice
2017 ₹ 23,70,079.00 ₹ 11,58,49,145.00 ₹ 2,47,757.00 ₹ 1,47,92,53,208.00 12.51489322
2018 ₹ 1,20,42,943.00 ₹ 10,64,66,830.00 ₹ 33,40,292.00 ₹ 89,78,76,208.00 7.604575363
2019 ₹ 94,75,91,666.00 ₹ 2,17,94,15,987.00 ₹ 10,90,28,399.00 ₹ 1,46,77,74,224.00 0.504252883
2020 ₹ 8,55,03,12,137.00 ₹ 2,16,22,38,607.00 ₹ 32,69,56,650.00 ₹ 4,54,62,91,831.00 0.454910189
2021 ₹ 22,99,68,51,061.00 ₹ 3,00,44,36,771.00 ₹ 85,41,28,200.00 ₹ 6,29,45,43,972.00 0.274935312
2022 ₹ 36,91,72,18,000.00 ₹ 3,36,32,40,000.00 ₹ 2,67,28,07,000.00 ₹ 9,73,06,53,000.00 0.307927482

TABLE: 7.3 ABSOLUTE LIQUIDITY RATIO
Absolute Liquidity Ratio

15
10
0
2017 2018 2019 2020 2021 2022
CHART: 7.3 ABSOLUTE LIQUIDITY RATIO

INFERENCE
It shows that Absolute liquidity ratio(7.60) is higher in (2017) and its suddenly decrease in corresponding years.
The current year (2022) found that the Absolute liquidity ratio is (0.307) It indicate that the company struggle
to meet its short term obligations.It means it doesn't have enough quick assets to meet all its short-term
PROFITABILITY RATIO
GROSS PROFIT RATIO
Year Interest Earned Interest Expended Gross Profit Gross Profit Ratio
2017 ₹ 5,01,41,265.00 ₹ 10,840.00 ₹ 5,01,30,425.00 1.00
2018 ₹ 39,52,65,857.00 ₹ 3,86,486.00 ₹ 39,48,79,371.00 1.00
2019 ₹ 46,42,09,331.00 ₹ 85,37,467.00 ₹ 45,56,71,864.00 0.98
2020 ₹ 45,75,67,936.00 ₹ 13,59,93,347.00 ₹ 32,15,74,589.00 0.70
2021 ₹ 80,44,29,672.00 ₹ 45,90,80,921.00 ₹ 34,53,48,751.00 0.43
2022 ₹ 1,28,45,59,000.00 ₹ 71,12,43,000.00 ₹ 57,33,16,000.00 0.45
TABLE: 7.4 GROSS PROFIT RATIO
Gross profit ratio

1.50
1.00
0.50
0.00
2017 2018 2019 2020 2021 2022
CHART: 7.4 GROSS PROFIT RATIO

INFERENCE
60
It shows that Gross profit ratio 2017 as 99.98% higher and in 2022 as 44.63% it as gradually decreases. It
shows that decrease in profit margins can indicate a highly competitive market.
NET PROFIT RATIO
Year Interest Earned Net Profit/Net Loss Net Profit Ratio

2017 ₹ 5,01,41,265.00 ₹ 2,22,17,608.00 0.44
2018 ₹ 39,52,65,857.00 ₹ 97,53,705.00 0.02
2019 ₹ 46,42,09,331.00 ₹ -1,65,10,07,490.00 -3.56
2020 ₹ 45,75,67,936.00 ₹ -3,34,01,34,041.00 -7.30
2021 ₹ 80,44,29,672.00 ₹ -3,20,54,38,877.00 -3.98
2022 ₹ 1,28,45,59,000.00 ₹ -1,59,61,73,000.00 -1.24
TABLE: 7.5 NET PROFIT RATIO
Net profit ratio

5.00
0.00
2017 2018 2019 2020 2021 2022
-5.00
-10.00
CHART: 7.5 NET PROFIT RATIO

INFERENCE
It shows that net profit ratio 2017 as 99.98% higher and in 2022 as 44.63% it as gradually decreases. It shows
that decrease in net margins can indicate a highly competitive market and less efficiency in operation
management, want to control the Expenses
OPERATING RATIO
Operating
Year Interest Earned Operating Expenses Ratio
2017 ₹ 5,01,41,265.00 ₹ 41,68,64,397.00 8.31
2018 ₹ 39,52,65,857.00 ₹ 38,63,17,223.00 0.98
2019 ₹ 46,42,09,331.00 ₹ 2,70,40,51,809.00 5.83
2020 ₹ 45,75,67,936.00 ₹ 4,87,52,64,588.00 10.65
2021 ₹ 80,44,29,672.00 ₹ 4,94,02,31,466.00 6.14
2022 ₹ 1,28,45,59,000.00 ₹ 5,59,54,50,000.00 4.36
TABLE: 7.6 OPERATING RATIO
Operating ratio
15.00
10.00
5.00
0.00
2017 2018 2019 2020 2021 2022
CHART: 7.6 OPERATING RATIO

INFERENCE
The Operating ratio of year 2020 is 10.65 and it is gradually decreses in which in the year 2022 is 4.36 .It
shows the positively that operation expenses are controlled and it is lesser. Expenses are less than its revenue.
RETURN ON INVESTMENT RATIO
Yea Net Profit After Profit Before Issue Of Share Reserves & Capital Return On
r Tax Tax Capital Surplus Borrowings Employed Investment
201 ₹ ₹ ₹ ₹ ₹
7 2,22,17,608.00 3,29,65,048.00 2,75,00,00,000.00 25,97,31,912.00 3,00,97,31,912.00 0.01
61
₹
201 ₹ - ₹ - ₹ 3,99,99,78,207.0 ₹
8 97,53,705.00 86,28,771.00 1,25,00,00,000.00 0 5,24,99,78,207.00 0.00
₹- ₹- ₹-
201 1,65,10,07,490.0 2,22,97,86,954.0 ₹ 1,25,70,15,363.0 ₹
9 0 0 3,00,00,00,000.00 0 1,74,29,84,637.00 -1.28
₹- ₹- ₹-
202 3,34,01,34,041.0 4,46,36,34,398.0 ₹ 4,60,98,82,204.0 ₹-
0 0 0 3,35,00,00,000.00 0 1,25,98,82,204.00 -3.54
₹- ₹- ₹- ₹
202 3,20,54,38,877.0 3,26,79,96,647.0 ₹ 8,10,38,55,507.0 16,99,63,638. ₹-
1 0 0 2,20,00,00,000.00 0 00 5,73,38,91,869.00 -0.57
₹- ₹- ₹-
202 1,59,61,73,000.0 1,69,46,52,000.0 ₹ 9,81,93,77,000.0 ₹-
2 0 0 2,00,00,00,000.00 0 7,81,93,77,000.00 -0.22
TABLE: 7.7 RETURN ON INVESTMENT RATIO
Return on investment
1.00
0.00
-1.00 2017 2018 2019 2020 2021 2022
-2.00
-3.00
-4.00
CHART: 7.7 RETURN ON INVESTMENT RATIO

INFERENCE
Return on investment is recovering for the year 2020 as(-1.28) to year 2022 as(-0.22) even thought there is
negative sign the but it shows the organization as recover back to the profit and show the ROI as positive as
soon as possible.
RETURN ON ASSETS
Year Net Profit After Tax Total Asset Return On Assets
2017 ₹ 2,22,17,608.00 ₹ 3,12,79,51,136.00 0.71
2018 ₹ -97,53,705.00 ₹ 8,11,84,87,980.00 -0.12
2019 ₹ -1,65,10,07,490.00 ₹ 8,86,99,92,290.00 -18.61
2020 ₹ -3,34,01,34,041.00 ₹ 16,45,26,68,540.00 -20.30
2021 ₹ -3,20,54,38,877.00 ₹ 30,61,73,95,963.00 -10.47
2022 ₹ -1,59,61,73,000.00 ₹ 45,01,10,81,000.00 -3.55
TABLE: 7.8 RETURN ON ASSETS
Return on Assets
10.00
0.00
-10.00 2017 2018 2019 2020 2021 2022
-20.00
-30.00
CHART: 7.8 RETURN ON ASSETS

INFERENCE
Return on Asset is recovering for the year 2020 as(-20.30) to year 2022 as(-3.55) even thought there is negative
sign the but it shows the organization as recover back to the profit and show the ROA as positive as soon as
possible show the proper utilization of assets.
FIXED ASSET TURN OVER RATIO
Year Reserves & Surplus Fixed Assets Depreciation On Fixed Assets Net Fixed Asset Fixed Asset Turn Over Ratio (Net)
62
2017 ₹ 25,97,31,912.00 ₹ 4,78,60,355.00 ₹ 18,46,473.00 ₹ 4,60,13,882.00 5.64
2018 ₹ 3,99,99,78,207.00 ₹ 6,74,39,438.00 ₹ 96,55,728.00 ₹ 5,77,83,710.00 69.22
2019 ₹ -1,25,70,15,363.00 ₹ 2,94,86,96,101.00 ₹ 7,63,61,271.00 ₹ 2,87,23,34,830.00 -0.44
2020 ₹ -4,60,98,82,204.00 ₹ 2,00,45,16,878.00 ₹ 95,35,58,355.00 ₹ 1,05,09,58,523.00 -4.39
2021 ₹ -8,10,38,55,507.00 ₹ 1,57,74,32,606.00 ₹ 62,40,91,310.00 ₹ 95,33,41,296.00 -8.50
2022 ₹ -9,81,93,77,000.00 ₹ 78,87,12,000.00 ₹ 80,61,29,000.00 ₹ -1,74,17,000.00 -563.78
TABLE: 7.9 FIXED ASSET TURN OVER RATIO
Fixed asset turn over ratio (net)

200.00
0.00
2017 2018 2019 2020 2021 2022
-200.00
-400.00
-600.00
CHART: 7.9 FIXED ASSET TURN OVER RATIO

INFERENCE
Fixed asset turn over ratio as decreased in 2022 as(-563.78) compared to 2021 as(-8.50) it shows that the fixed
as are not fully utilized to manage its internal problems but it does’t tells about how to manage the fixed asset
because its varies based upon the industry.
TREND ANALYSIS
CURRENT ASSET
Year Current Asset Current Asset Trend Analysis
2017 ₹ 1,52,46,48,805.00 100
2018 ₹ 1,61,31,70,908.00 105.8060652
2019 ₹ 2,80,85,07,920.00 184.2068751
2020 ₹ 7,50,56,58,193.00 492.2876776
2021 ₹ 9,94,90,65,006.00 652.5479818
2022 ₹ 15,21,35,06,000.00 997.8367444

TABLE: 7.10 CURRENT ASSET TREND ANALYSIS
Current asset trend Analysis

1500
1000
500
0
2017 2018 2019 2020 2021 2022
CHART: 7.10 CURRENT ASSET TREND ANALYSIS

INFERENCE
The trend analysis shows that there is a continuous increase in the current asset from year to year. Between
2017 and 2018, the current assets increased by 5.81%. The following year, 2019, it increased by a significant
percentage of 84.40%. The growth rate further accelerated in 2020 and 2021, with a growth rate of 292.08%
and 32.39%, respectively. In 2022, the growth rate decreased compared to the previous years but still had a
growth rate of 53.22% compared to the previous year.
63
NET PROFIT/NET LOSS
Trend Analysis Of Net
Year Net Profit/Net Loss
Profit/ Net Loss
2017 2,22,17,608 100
2018 97,53,705 43.90079
2019 -1,65,10,07,490 -7431.08
2020 -3,34,01,34,041 -15033.7
2021 -3,20,54,38,877 -14427.5
2022 -1,59,61,73,000 -7184.27
TABLE: 7.11 NET PROFIT/NET LOSS TREND ANALYSIS
Trend Analysis of Net profit / Net Loss

10000
0
2017 2018 2019 2020 2021 2022
-10000
-20000
CHART: 7.11 NET PROFIT/NET LOSS TREND ANALYSIS

INFERENCE
The trend analysis of net profit/loss indicates that the company has been facing financial challenges for the
past few years. The percentage decline in net profit/loss has been increasing, with a decline of 56% in 2018, a
loss of 7431% in 2019, and a loss of 15033% in 2020. Although the decline in net loss reduced to 14427% in
2021, it is still quite significant
VIII . FINDINGS, SUGGESTIONS AND CONCLUSION
FINDINGS
• In 2017 and 2018, the current ratio was higher than 12, which indicates that the company had more than
enough short-term assets to cover its short-term liabilities. However, in 2019, the current ratio dropped to
less than 1, which means that the company's short-term liabilities exceeded its short-term assets, and the
situation did not improve in 2020 and 2021, where the current ratio remained below 1. In 2022, there was
a slight improvement in the current ratio as compared to 2021, but it remained below 1. The increase in
assets from the previous year was mainly due to the addition of balances with banks and money at call and
short notice. Therefore, based on the current ratio, the company needs to improve its short-term liquidity
position by either increasing its short-term assets or reducing its short-term liabilities.
• The Quick Ratio of the entity has decreased over the years, from 12.89 in 2017 to 0.38 in 2022, indicating
a decrease in its ability to meet its short-term financial obligations. The entity has seen a significant
increase in its Capital & Liabilities from ₹23,70,079.00 in 2017 to ₹36,91,72,18,000.00 in 2022, indicating
growth in its business. The Assets of the entity have also increased from ₹1,47,92,53,208.00 in 2017 to
₹9,73,06,53,000.00 in 2022, indicating a growth in its financial resources. However, the decrease in the
Quick Ratio in the later years indicates that the entity may be facing liquidity issues and may need to take
corrective measures to improve its financial position.
• In 2017, the absolute liquidity ratio was 12.51489322. In 2018, the absolute liquidity ratio was
7.604575363. In 2019, the absolute liquidity ratio was 0.504252883. In 2020, the absolute liquidity ratio
was 0.454910189. In 2021, the absolute liquidity ratio was 0.274935312. In 2022, the absolute liquidity
ratio was 0.307927482. The absolute liquidity ratio is a measure of a bank's ability to meet its obligations
in the short term, particularly its ability to pay off all of its current liabilities with its most liquid assets. A
higher absolute liquidity ratio indicates a better ability to meet short-term obligations. As seen in the table,
the bank's absolute liquidity ratio has decreased over the years, indicating a potential decrease in its ability
to meet short-term obligations.
• The gross profit ratio, which measures the company's gross profit as a percentage of the interest earned,
was 1.00 in 2017 and 2018, but it decreased to 0.43 in 2021 before slightly increasing to 0.45 in 2022. The
company's financial performance in 2020 and 2021 was affected by the increase in interest expenses, which
64
led to a decline in gross profit and gross profit ratio. However, in 2022, the company's financial
performance improved with an increase in gross profit and gross profit ratio compared to the previous
year. The company's interest earned and interest expended increased over the years, indicating growth in
its operations, but the increase in interest expenses needs to be monitored to maintain a healthy gross profit
ratio.
• The interest earned by the company has been increasing steadily over the years, with a significant jump
from 2017 to 2018 and a further increase in 2021 and 2022. The company has been facing losses for the
past four years, with the highest loss being in 2020. However, there has been a significant improvement in
2022 with the company incurring a relatively smaller loss. The net profit ratio has been negative for the
past four years, indicating that the company is incurring losses. However, there has been an improvement
in the net profit ratio in 2022 compared to the previous years. Overall, the company has been facing losses
for the past few years, but there are some signs of improvement in 2022. The company needs to analyze
its operations and take necessary steps to minimize losses and increase profitability in the future.
• The operating expenses of the company have also been increasing over the years, with a significant jump
in 2020. However, there has been a slight decrease in 2022 compared to the previous year. The operating
ratio of the company has been fluctuating over the years, with the highest ratio in 2020 and the lowest ratio
in 2018. The operating ratio is an indicator of how efficiently a company is using its resources to generate
revenue. A lower operating ratio is better as it indicates that the company is operating more efficiently.
Overall, the company needs to analyze its operating expenses and take necessary steps to reduce them,
which can result in a lower operating ratio and better profitability. While the interest earned by the
company has been increasing, the operating expenses have also been increasing, which has resulted in
lower profitability for the company.
• The company had a positive return on investment in 2017 and a negative return in subsequent years, with
the lowest being in 2020. In 2021, the company had a slightly better return on investment compared to
2020. Overall, the company has had a mixed financial performance over the years, with losses in most
years except for 2017. The company has been issuing share capital every year and has reduced its
borrowings significantly. The company's return on investment has been negative in recent years, indicating
a need for improvement in its operational and financial performance.
• The return on assets (ROA) has been negative in all years since 2018, with the lowest being in 2020. This
indicates that the company has not been generating sufficient profits from its assets. However, the ROA
has improved in 2021 and 2022, which may indicate that the company is taking steps to improve its
operational efficiency. Overall, the company has been facing losses in recent years, but its total assets have
been increasing, indicating that it is investing in its business. The negative ROA indicates that the company
needs to focus on improving its profitability and operational efficiency. However, the slight improvement
in ROA in recent years may indicate that the company is taking steps to address these issues.
• The Reserves & Surplus have been fluctuating over the years, with a significant increase in 2018 but a
steady decline since then, reaching a negative value in 2022. The Fixed Assets have been increasing
steadily, except for a decrease in 2021. The Depreciation on Fixed Assets has been increasing over the
years, except for a decrease in 2022. The Net fixed asset has been fluctuating over the years, with a
significant decrease in 2020 but a recovery in 2021. The Fixed asset turn over ratio (net) has been
decreasing significantly over the years, with a negative ratio in 2022 indicating that the company is not
generating sufficient revenue from its fixed assets.
• The company's current assets have been consistently increasing over the years, with a significant jump in
2020 and 2021. This indicates that the company has been able to effectively manage its short-term assets
and has likely seen an increase in sales or profitability. The current asset trend analysis shows that the
company's current assets have almost doubled from 2017 to 2022, indicating a strong growth trajectory.
The increase in current assets could also suggest that the company is expanding its operations or investing
in new ventures. Overall, the trend in the company's current assets is positive and suggests strong financial
performance.
• The net profit/net loss of the company has been fluctuating over the years. In 2017, the net profit was
2,22,17,608, which was the base year for trend analysis. In 2018, the net profit decreased to 97,53,705,
which is a decrease of 56.1% compared to the previous year. In 2019, the company faced a huge loss of
1,65,10,07,490, which is a significant decrease of 1792.77% compared to the previous year. The trend
continued in 2020 with a net loss of 3,34,01,34,041, which is a decrease of 102.03% compared to the
previous year. In 2021, the company faced a net loss of 3,20,54,38,877, which is a decrease of 95.91%
compared to the previous year. However, in 2022, the net loss decreased to 1,59,61,73,000, which is a
decrease of 50.31% compared to the previous year. Overall, the company's net profit/loss trend has been
negative, with huge losses incurred in recent years.
65
IX . SUGGESTIONS & RECOMMENDATIONS
Based on the information provided, the company seems to be facing various financial challenges, such as
declining liquidity and profitability. The current ratio and quick ratio have declined over the years, indicating
a decrease in the company's ability to meet its short-term financial obligations. The company has also been
incurring losses for the past few years, with a negative net profit ratio. The operating expenses of the company
have been increasing, and the operating ratio has been fluctuating over the years, indicating that the company
needs to analyze its expenses and take necessary steps to reduce them. The company has also had a negative
return on investment in recent years, indicating a need for improvement in its operational and financial
performance. Overall, the company needs to take corrective measures to improve its liquidity and profitability,
which may include reducing its expenses, increasing its revenues, and improving its operational efficiency.
X . LIMITATIONS OF STUDY
• Lack of data: There may be a lack of data available on the impact of India Post Payments Bank (IPPB) on
financial inclusion in India, which could limit the scope of the study.
• Short duration of operation: IPPB is a relatively new entity, having been launched in 2018. As a result,
there may be limited data available on its long-term impact on financial inclusion in India.
• Sample size: The study may be limited by the sample size of the population being studied. It may be
difficult to generalize the findings of the study to the entire population of India.
• External factors: The impact of IPPB on financial inclusion in India may be influenced by external factors
such as government policies, economic conditions, and technological advancements. These factors may
be difficult to control or measure in the study.
• Limited scope: The study may only focus on the role of IPPB in driving financial inclusion in India,
without considering other factors that may contribute to or hinder financial inclusion in the country.
• Bias: There may be potential biases in the study, such as researcher bias or respondent bias, which may
affect the accuracy and validity of the findings.
• Lack of control group: The study may not have a control group for comparison, which could limit its
ability to establish causal relationships between IPPB's initiatives and improvements in financial inclusion.
• Cultural differences: India is a diverse country with different cultural backgrounds, and perceptions of
financial services may vary among different communities. This could limit the generalizability of the
findings.
• User adoption: While IPPB may offer financial services in remote areas, it may still face challenges in
encouraging user adoption. This may limit the reach of the bank's initiatives to drive financial inclusion.
• Technology limitations: Technology limitations such as network connectivity and device compatibility
may impact the ability of users to access IPPB's digital offerings, which could limit the impact of the bank's
initiatives.
• Inadequate infrastructure: In some remote areas, there may be inadequate infrastructure such as roads and
electricity supply, which may impact the delivery of financial services and limit the impact of IPPB's
initiatives.
• External competition: IPPB operates in a highly competitive market, with several other financial
institutions vying for market share. This could limit the impact of IPPB's initiatives on financial inclusion
if it fails to compete effectively.
XI . CONCLUSION
• Improve short-term liquidity position: The company needs to improve its short-term liquidity position by
either increasing its short-term assets or reducing its short-term liabilities. This can be done by
implementing effective cash management techniques and reducing unnecessary expenses.
• Monitor interest expenses: The increase in interest expenses needs to be monitored to maintain a healthy
gross profit ratio. The company can explore options such as debt refinancing or seeking lower interest
rates from lenders to reduce interest expenses.
• Analyze operating expenses: The company needs to analyze its operating expenses and take necessary
steps to reduce them. This can include identifying areas of inefficiency and implementing cost-cutting
measures.
• Improve profitability: The company needs to analyze its operations and take necessary steps to minimize
losses and increase profitability. This can include exploring new revenue streams or restructuring the
business to focus on more profitable areas.
• Increase efficiency: The company needs to focus on increasing efficiency in its operations, as indicated by
the fluctuating operating ratio. This can include optimizing processes, reducing waste, and investing in
technology to streamline operations.
66
• Review investments: The company needs to review its investments and ensure that they are generating a
positive return on investment. Investments that are not performing well should be divested to free up
resources for more profitable investments.
• Reduce reliance on share capital: While share capital can be a useful source of funding, the company
should reduce its reliance on this source of financing and explore other options such as debt financing or
retaining earnings to fund its operations.
Overall, the company needs to adopt a more proactive approach to financial management and take
necessary steps to improve its financial position. This includes implementing effective financial planning
and analysis, regular monitoring of financial performance, and timely action to address any issues that
arise.
REFERENCES
1. Financial Management (Ninth Edition), Author I M Pandey Published by vikas publishing house Pvt
ltd.
2. Financial Management (Second Edition), Author P Periasamy Published by Mc Graw Hill
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3. Harshadkumar V.Patel & Dr. Kanisk Sha(Nov-22),Emerging Trends on Customer’s Satisfaction
towards Value Added Services of Indian Post Payment Bank in Selected Region of Gujarat.
4. Dipankar Monda(Dec-22),Impact of Payment Bank in Financial Inclusion: A Case Study of India
Post Payment Bank.
5. Hirenkumar Rameshbhai Patel and Dr. Rajesh M. Patel(Jul-22),Role Of Indian Postal Service Sector
In Financial Inclusion With Special Consideration To India Post Payments Bank (IPPB).
6. Harshad V Patel and Dr. Kanishk Shah(Mar-22),Payment Bank: Indian Post Payment Bank towards
financial inclusion through Digitalization.
7. Dr. N. Senthilkumar & L. Balasubramanian (Dec-21),A Study On Investor’S Attitude Towards
India Post Payment Bank Savings Schemes In Namakkal District,Tamil Nadu.
8. Dr. N. Prakash1,Ms. Suganya Sampat(Dec-21),India Post Payment Bank (IPPB) – Recent Trend In
Banking Services.
9. Manoj Minj Prof. Ashok Kumar Mishra Dr Ravish Kumar Soni(Oct-21), A Study On Evolution Of
Payments Banks In India.
10. Manoj Minj Prof. Ashok Kumar Mishra Dr Ravish Kumar Soni(Aug-21), Impact Of India Post
Payments Bank On Post Office Saving Accounts.
11. Mrs.P.Jesintha Dr.P.Radhakrishnan M.Amirtha Bashini R.Umayal K.R.Gowri Shankar (Jun-21),A
Study on India Post Payment Bank –Benefits & Key challenges.
12. Gaurav Sahu Manoj Minj (Mar-21),A Study On India Post Payments Bank.
13. Dr. Ratheesh K. Nair (Jan-21),Ready to Payments Bank after Demonetisaton: An exploratory
Research on Adoption of India Post Payments Bank among Postal Banking Customers in Kollam-
Kerala.
14. Thushara T.K (Dec-20),Role of Payment Banks in Financial inclusion.
15. Afsana Sultana (Nov-20),Role Of Indian Postal Service Sector In Financial Inclusion With
Special Consideration To India Post Payments Bank (IPPB).
16. M. Neelakandan (Sep-20),Post to Payment Bank – Case study of India Post on Financial Inclusion.
17. S. Shanmugapriya, S. Saravanan (Mar-20),Rural Investor’s Behavior and Satisfaction Level of
Financial Saving Schemes towards Post Office.
18. Dr. V. Venkatachalam (Feb-19),Awareness Of India Post Payment Bank Services In Coimbatore
District, Tamilnadu.
19. Reena. F, Ph.D., Dr. T. Joseph(Feb-19),A Study on India Post Payments Bank as a Tool to Drive
Financial Inclusion in India.
20. Anahita Singh Sonalika Bhadouria (Jan-19),Payment Banks on Improving Financial Inclusion in
India.
21. Vaibhav Sharmaa R.C. Gupta (Dec-18),India Post Payments Banking System.
22. Dr.S.Tamilarasi Ms. D.Bhuvaneswari(Oct-18),Indian Post Payments Bank, A New Initiative By The
Government Of India – An Awareness And Perspective Among People In Chennai.
23. Sandesh D'Souz (Oct-18),Payment Bank: A Revolutionary step of Indian Post Payment Bank
towards financial inclusion.
24. Ashish Baghla (Aug-18),A Study On The Future Of Digital Payments In India.
25. Parvathi Jayaprakash, R Radhakrishna Pillai (May-18),India Posts Putting Its Best Leg Forward: A
Case On ICT4D.
26. M. Bhargavi (Mar-18),Initiative Of Payments Bank By India Post – Highlights And Challenges.
27. Dr.V. Ramesh Naik P.Firdous P.Harika(Feb-18),A Study On Role Of Payment Banks In India –
Financial Inclusion.
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28. Bhansali Shrey, Bhatt Tanmayee, Chhatwani Mohak, Deshpande Animesh, Iyer Geeth (Feb-18),Role
of Payment Banks in India: Opportunities and Challenges.
29. Mrs. SRP. Vijaya, Dr. A.Abbas Manthiri (Aug-17),A Study on Awareness of India Post’s Banking
Services in Sivagangai District, Tamil Nadu
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68

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ROLE OF INDIA POST PAYMENTS BANK TO DRIVE FINANCIAL

MASTER OF BUSINESS ADMINISTRATION

DEPARTMENT OF BUSINESS ADMINISTRATION

SCHOOL OF MANAGEMENT STUDIES

Dr. JAINAB ZAREENA

Dean – School of Management Studies

Submitted for Viva voce Examination held on 06/05/2023

Internal Examiner External Examiner

I KRISHNAGOPALAN S (41410175) hereby declare that the Project Report entitled

PLACE: Chennai KRISHNAGOPALAN S

I am pleased to acknowledge my sincere thanks to Board of Management of

I convey my sincere thanks to Dr. G. Bhuvaneswari, MBA., Ph.D., Dean - School of

LIST OF TABLES (ii)

LIST OF CHARTS (iv)

LIST OF ABBREVIATIONS (v)

1 1.3 Need for the study 1

1.4 Scope of study 1

1.5 Industry Profile 2

1.6 Company Profile 2

3 3.2 Research Design 10

3.3 Sources of Data 10

3.4 Tool for Analysis 11

DATA ANALYSIS AND INTERPRETATION

4.3 Common Size Balance Sheet 32

4.4 Comparative Balance Sheet 37

FINDINGS, SUGGESTIONS AND CONCLUSION

5.1. Findings of the Study 42

5 5.2 Suggestions & Recommendations 45

5.3 Limitations of study 45

In Indian population Majority of rural areas. Payments Bank is new categories of

CHARTS NO. PARTICULARS PAGE NO.

4.1.1.2 QUICK RATIO 19

4.1.1.3 ABSOLUTE LIQUIDITY RATIO 21

4.1.2.1 GROSS PROFIT RATIO 22

4.1.2.2 NET PROFIT RATIO 23

4.1.2.3 OPERATING RATIO 24

4.1.2.4 RETURN ON INVESTMENT RATIO 26

4.1.2.5 RETURN ON ASSETS 27

4.1.2.6 FIXED ASSET TURN OVER RATIO 29

4.2.1 CURRENT ASSET TREND ANALYSIS 30

4.2.2 NET PROFIT/NET LOSS TREND ANALYSIS 31

S.NO ABRREVATION EXPANSION

2. UPI Unified Payments Interface

3. IMPS Immediate Payments Services

4. NEFT National Electronic Fund Transfer

5. RTGS Real Time Gross Settlement

6. AEPS Aadhaar Enabled Payment System

⚫ To study the role of Indian post payment banks in financial inclusion.

1.3 NEED OF STUDY

⚫ To Explore the Function of Digitalization in Post office Services.

⚫ To understand the role of Payments Bank.

⚫ To enhance basic knowledge regarding Instant fund Transfer.

1.4 SCOPE OF STUDY

⚫ It enhance knowledge regarding the UPI functions, Vitural Debit Cards.

⚫ It helps people to understand Aadhaar Enabled Payment System (AEPS).

⚫ To evaluate the management efficiency and earning quality of India post

1.5 INDUSTRY PROFILE

1.6 COMPANY PROFILE

2.1 REVIEW OF LITERATURE

HARSHADKUMARet.al (NOV-22) The Govt. of India aims to achieve financial