BANK BALANCE SHEET V/S COMPANY BALANCE SHEET

Presented by: Manish Vijay Pandhi Roll No:34

Bank balance sheet

LIABILITIES ASSETS

Deposits - Demand Deposits - Savings Deposits - Term Deposits

Borrowings Capital

Cash - Cash in hand - Balances with RBI

Balance with Bank, Money at call and Short Notice Investments - Government securities - Shares - Debentures and Bonds - Subsidiaries and Joint Ventures - Other investments Loans and Advances

Reserves and Surplus - Statutory Reserves - Share premium Reserves - Capital Reserves - Revenue Reserves - Investment fluctuation Reserves Other Liabilities - Bills payable - Interoffice adjustments - Interest accrued - Provisions

Fixed Assets Gross Block Less: Depreciation Net Block

Other Assets

Company balance sheet

LIABILITIES
Shareholders funds - Share Capital - Reserves and Surplus Capital Reserves Bond/ Debenture redemption Reserves Share premium Reserves Loan funds - Secured loans - Unsecured loans

ASSETS
Fixed Assets Gross Block Less: Depreciation Net Block Capital Work In Progress Investments Current Assets - Inventories - Debtors - Cash and Bank Balance - Loans and Advances Less: Current Liabilities - Creditors - Provisions Intangible Assets

GENERAL DIFFERENCES
BANK BALANCE SHEET COMPANY BALANCE SHEET
- It is prepared in the format specified - It is prepared in the format specified by the Banking Regulation Act, 1949. by the Companies Act, 1956.

- In a Bank balance sheet, Assets and Liabilities are arranged in order of liquidity. - Sources of fund are primarily short term in nature, payable on demand with short term maturities.

- In a Company balance sheet, Assets and Liabilities are arranged in order of their duration. - Sources of fund are generally long term in nature.

- Under assets, we will mostly notice loans and investments. Under liabilities, we will see deposits and borrowings.

- Under assets, we will notice inventory, accounts receivable. Under liabilities, we will see accounts payable.

Capital
BANK BALANCE SHEET
- Paid up capital is held by the Central Government and the Public. - As per RBI guidelines, the entry capital requirement for new private sector bank is Rs. 200 crores, with a commitment to increase to Rs. 300 crores within 3 years.

COMPANY BALANCE SHEET

- Paid up capital is held by the Shareholders of the Company. - The minimum paid up capital for Private Limited Company: Rs.1,00,000/Public Limited Company: Rs.5,00,000/This limit is not applicable to company having licence under section 25.

reserves
BANK BALANCE SHEET
- Every year, banks transfer 25% of their profit to the Statutory Reserve. - As per RBI guidelines, banks should build an Investment Fluctuation Reserve of a minimum of 5 percent of the investment portfolio.

COMPANY BALANCE SHEET

- Statutory reserves arent held by Companies (except Insurance Companies). - As per the Companies Act, a Company should also maintain an Investment Fluctuation Reserve, but there is no limit specified.

FIXED ASSETS
BANK BALANCE SHEET COMPANY BALANCE SHEET
- Fixed Assets are Low as compared to - Fixed Assets of a Company are High. that of any Company.

- Less Depreciation.

- High Depreciation.

Cash
BANK BALANCE SHEET
- To meet deposit withdrawals, dayto-day expenses and credit drawal demands.

COMPANY BALANCE SHEET

- It forms a part of current asset to meet the companys short term liabilities.

- It includes cash in hand, foreign - It includes cash in hand and bank currency notes, cash balances at balances (current accounts and overseas branches, balances with the deposit accounts). RBI.

Loans and advances

BANK BALANCE SHEET
- It is most important for banks and impacts their profitability to a large extent. - Maturities range from few days to 15-30 years. - It carries a high level of default risk.

COMPANY BALANCE SHEET

- It is subordinate for companies and includes advances recoverable in cash or kind and deposits. - It forms a part of Current Assets. - It doesnt carry a high level of default risk.

Balance sheet ratios

BANK BALANCE SHEET
- Operating leverage is low. - Financial leverage is very high.

COMPANY BALANCE SHEET

- Operating leverage is high. - Financial leverage is low.

Liabilities in a bank balance sheet

Deposits:
Primary source of borrowed funds for a bank predominantly raised from the public. Classification on the basis of purpose and maturity: No interest will be paid by the bank on these balances. 2. Savings Deposits - Savings account for the purpose of household savings. Payable on demand and interest is paid on these deposits. 3. Term Deposits - Deposits with maturity period ranging from 15 days to 10 years. Form of fixed deposits, recurring deposits, reinvestment deposits etc. Borrowings: Borrowings are categorised into:

1. Demand Deposits - Balances in Current accounts.

1. Borrowings in India and

2. Borrowings outside India. Borrowings from RBI, money market including call money market etc.

Liabilities in a Company balance sheet

Loan Funds : Long term debt taken by the company. Loans are classified as: 1. Secured loans - These loans are secured against a collateral given by the borrower.
2. Unsecured loans - These loans are not secured against any collateral.

Examples of Balance sheet

Particulars As at 31-03-2010 (Rs.) 5259146 137040792 2297619439 223998955 85746253 2749664585 156026240 156275098 670801795 1684907098 23518088 58136266 2749664585 1350987825 118101637

I. CAPITAL AND LIABILITIES

Capital Reserves & Surplus Deposits Borrowings Other Liabilities and Provisions TOTAL II. ASSETS Cash and balances with RBI Balances with banks and money at call and short notice Investments Advances Fixed assets Other assets TOTAL Contingent liabilities Bills for collection

Particulars
SOURCES OF FUNDS Shareholders' Funds Share Capital Reserves & Surplus Loan Funds Secured Loans Unsecured Loans Deferred Tax Liabilities Total Liabilities APPLICATION OF FUNDS Fixed Assets Gross Block Less: Depreciation Net Block Capital WIP Investments Current Assets, Loans & Advances Inventories Sundry Debtors Cash & Bank Balances Loans & Advances Less: Current Liabilities & Provisions Current Liabilities Provisions Net Current Assets Miscellaneous Expenditure Total Assets

As At 31.03.3011

82527780 483424552 565952332 184455345 583000 185038345 11546422 762537099

385394784 52482314 332912470 2318418 335230888 50000

81450252 524587816 122211147 40107100 768356315

299470670 41653181 341123851 427232464 23747 762537099

Thank you