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Always an exception to the rule

Discussion in 'Financial Advisors' started by tina, Oct 13, 2009.

  1. tina

    tina
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    [FONT=&quot]Growth in profits varies from banks to banks in any given financial year. A bank that had performed better in one year, may have witnessed significant decline in profits in another year. The new private banks like the LoanMax of the rod aycox fame were an exception to this rule. In the private banks category when analyzing the overall situation in the financial market, the other private banks have performed much below the industry benchmark.[/FONT]

    [FONT=&quot]The net profit was 0.74 for private banks segments and 0.45 new private banks in the early 2000. The published statistics brought an interesting fact into the limelight and it is now clear that the year 2002-03 has displayed a positive and a very high growth rate as a against a negative growth rate in the previous four to five years. Almost, all the banks were following the deceleration path in previous five years as far as the net profit to working funds percentage is concerned.[/FONT]

    [FONT=&quot]The year 2002-03 is marked by 40.80 percent growth in this parameter for the entire banking industry. A major chunk of the current growth is due to the better performance of the government controlled banks, in general, and the autonomous banks, in particular. Foreign banks have also displayed an outstanding performance in terms of growth of net profit to working funds. Hence, the present phase of banking reforms has brought the recession hit banking industry into a growing, vibrant and dynamic industry. It can be seen that much of the benefits of these reforms when translated into a ratio of net profit to working funds have been the government controlled banks and some of the private sector banks have lagged behind in this regard.[/FONT]

    [FONT=&quot]Consider the analysis of spread. One can view the efficiency of a financing firm by analyzing the extent of total income that gets translated into profits. It is displayed by the percentage of net profit to total income. It gives an indirect idea about the efficiency of operations that have a direct bearing upon income and the expenditure side of the organization.[/FONT]
     

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