BANK BRANCH AUDIT RATIO ANALYSIS

*Ratio/trend analysis and yearly comparisons of figures of bsheet, PL, TB:*

1. Net profit/loss comparison with last year. Why branch slipped to loss or profit suddenly this year. 

Possible Visible Reasons: 

a. CASA/Term Dep. increased/decreased OR Loans portfolios shifted from low roi or higher roi.

b. LIC branch in same building or in nearby maintains current acckunt with branch. Branch would hv previlege to have higher intt incomes as comapred to intt paid on casa.

c. Branch is a rural area casa based branch having pay outs more and less incomes due to no industry or retail lending in the area.

2. %age of intt paid on savings deposits with o/s balance of savings in bsheet Not to exceed 3 or 3.5% as case may be. If exceeded, chk is there any short or excess credit of intt applications.

3. %age of total Intt income to total advances in bsheet be at a reasonable range as per portfolio wise/productwise.

6. Compare deposits balances with last yr fig. Ask for Reason/rationale for Increase/decrease in total deposit o/s.

7. Compare each head of expenses and incomes. Ask for Reasons for increase/decrease in each expenses or new head of exp. incurred added this year. Take GL prints of related head to screen thoroughly.

8. You may find few heads of bsheet or PL having figures due to accounting error of selection of wrong heads. Feed MOC for the rectification of same. 

9. Pick a sample of 5 large transaction casa accounts (urban branch), 5-10 samples of jan dhan accunts which were opened during the year and later closed before the year end to scan the nature of transactions not reflecting any unusual activity of AML.

10. All GL prints taken, irac, certification figures must at last tally with bsheet and PL before start your workings on those figures. 

11.  If any variations/discrep. in above not found verified or satisfactory, report in "Other Matters" of LFAR as well as the concerned clause of bsheet n PL.