Bank Balance Sheet



In simple words Bank Balance Sheet is a statement that includes Assets, Liabilities and a Net worth of the Bank. It is a quantitative summary of Banks financial condition at a specific period that is April 01 to March 31 of the financial year. Bank Balance Sheet different from companies Balance Sheet. It is only prepared by the Banks. Its shows the snapshot of the financial health of the bank. In the Bank Balance sheet, Assets means possessions or things owned by the Bank. Liabilities means the amount owed by the banks, which represents a claim by outsiders. Net worth is nothing but a Bank’s equity or total shareholders’ funds. To know the Banks total business we should see the Balance sheet of the bank’s Assets (Loans given by the Banks) and Liabilities (Customers deposits and other financial instruments). While preparing a bank balance sheet banks to need to follow various guidelines given by Reserve Bank India and Government. Banks publish two statements, one is the Balance Sheet and another one is the Profit and Loss Statement. The Bank Balance sheet is prepared as per Form A of the 3rd schedule to the Banking Regulation Act 1949. Profit and Loss account is prepared in conformity as per Form B.
Bank financial statement contain 18 schedules. In that Bank Balance Sheet contains 12 schedules. In that schedule 1 to schedule 5 liability side and schedule 6 to 12 assets side.

Schedules forming part of Form A –

Balance Sheet Schedule -

Liability side of Banks Balance Sheet contains 5 schedules. They are

1 - Capital Schedule

2 - Reserves & Surplus Schedule

3 - Deposits Schedule

4 - Borrowings Schedule 

5 - Other Liabilities and Provisions Schedule 

Assets side of Banks Balance contains 7 schedules. They are

6 - Cash and balances with RBI Schedule 

7 - Balances with Other Banks and money at call and short notice.

8 - Investments

9 - Advances Schedule 

10 - Fixed Assets 

11 - Other Assets.

12 - Contingent Liabilities / Bills for Collection.

Schedules forming Part of Form B – Profit and Loss Account Schedule 

13 - Interest Earned. Schedule 

14 - Other Income.

15 - Interest Expended. Schedule 

16 - Operating Expenses.

Schedules forming Part of Annual Report Schedule -

17 - Significant Accounting Policies. Schedule 

18 - Notes forming part of accounts.


1) What are the 2 types of assets?

Assets are divided into two types.
a) Tangible Assets
b) Intangible Assets

2) What are the components of a bank balance sheet?

Balance Sheet components are
a) Assets
b) Liabilities
c) Net Worth or Equity

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