Financial Performance Analysis of Southeast Bank Limited, Rupnagar Branch.

Abstract

The broad objective of study is to evaluate the financial performance analyzed of Southeast Bank Limited. The study is conducted using Ratio analysis. The financial performance of Southeast Bank Limited is analyzed by evaluating the liquidity ratio, asset utilization ratio, debt utilization ratio, profitability ratio of Southeast Bank Limited. The study has been conducted on the basis of secondary data. The data are collected for the period of four years from 2014 to 2018. Ratio analysis in form of trend and comparative analysis is conducted to analyze the financial performance of Southeast Bank Limited. The result of the study shows a fluctuating trend in both current ratio and networking capital of SEBL. Total asset turnover showed decreased trend from 2014 to 2018. Total loans and advances increased from 2014 to 2018. Profit before provision decreased from 2014 to 2015 but it increased from 2016 to 2018. Profit after tax decreased from 2014 to 2017 but increased in 2018. Earnings per share increased from 2014 to 2018 but decreased in 2018. Return on assets decreased from 2014 to 2017 but increased in 2018. Total capital to risk weighted assets ratio decreased from 2014 to 2015 and 2016 to 2017 but increased in 2018. Return on assets decreased from 2014 to 2017 but increased in 2018. Bank management should try to maintain an adequate amount of liquidity by carefully maintain its assets in relative to its current liabilities because excess liquidity by could affect its profitability. The Bank should try to maintain its performance in managing its assets and deposits, which in turn will assist the Bank to generate more income. The Bank should try to minimize its operating cost to generate more profit.