SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549

                            FORM 10-Q

         Quarterly Report Pursuant to Section 13 or 15(d)
              of the Securities Exchange Act of 1934

For the quarter ended October 31, 1996 Commission File No. 0-5653


                     BALA CYNWYD CORPORATION
_________________________________________________________________
      (Exact name of registrant as specified in its charter)


             New Jersey                         22-1436237
_____________________________________   _________________________
  (State or other jurisdiction of            (I.R.S. Employer
  incorporation or organization)             Identification No.)


  301 City Avenue
  Bala Cynwyd, Pennsylvania                     19004             
_____________________________________   _________________________
   (Address of principal executive           (Zip Code)
    offices)

Registrant's telephone number, 
including area code: (610) 667-8225
                     ________________

Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months,
and (2) has been subject to such filing requirements for the past
90 days.

                         Yes  X      No     
                             ____   ____

Indicate the number of shares outstanding of each of the
Registrant's classes on common stock, as of the latest
practicable date.

                 Common Stock:  1,021,314 shares


<PAGE>

Part 1.   Financial Information
          _____________________

Item 1.   Financial Statements

                     BALA CYNWYD CORPORATION

                          BALANCE SHEETS

<TABLE>
<CAPTION>

                                         October 31,     January 31,
                                           1996             1996
                                         ___________     ___________
                                         (Unaudited)         
<S>                               <C>               <C>

                              ASSETS

Cash                                         $435,051       $1,681
Receivables                                     4,921        4,920
Due from officer/shareholder 
  (Notes 2 and 6)                                          451,005
Prepaid and refundable income taxes             1,182        1,182
                                             ________      _______
                                                     
                                             $441,154     $458,788
                                             ========     ========

               LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:                                                      
  Due to affiliate (Note 3)                    $3,000       $3,000
  Accrued expenses                              5,914       19,742
  Due to officer/shareholder                    4,166
                                             ________     ________

                                               13,080       27,742
                                             ________     ________
                                                                  
Shareholders' equity:                                             
  Preferred stock, cumulative 
  convertible, $.05 par; authorized
  500,000 shares, issued 2,600 shares             130          130
  Common stock, $.05 par; authorized
  2,000,000 shares; issued 1,054,419
  shares                                       52,721       52,721
Additional paid-in capital                    462,327      462,327
Deficit                                       (67,538)     (59,566)
                                            _________     ________

                                              447,640      455,612

Less treasury stock at cost:                                      
  Preferred (2,600 shares)                     (5,000)      (5,000)
  Common (33,105 shares)                      (14,566)     (14,566)
                                            _________     ________
                                                     
                                              428,074      436,046
                                            _________     ________

                                             $441,154     $458,788
                                            =========     ========

</TABLE>

                See notes to financial statements.


<PAGE>
                     BALA CYNWYD CORPORATION

     STATEMENTS OF OPERATIONS AND RETAINED EARNINGS (DEFICIT)

            SIX MONTHS ENDED OCTOBER 31, 1996 AND 1995

                           (Unaudited)
<TABLE>
<CAPTION>
                                       Nine months                   Three months
                                    ended October 31,              ended October 31,
                                    _________________               _______________
                                    1996           1995              1996           1995
                                   _____          _____             _____          _____
<S>                       <C>            <C>               <C>             <C>

Revenue:
  Interest income 
    (Note 3)                     $15,223        $28,551           $ 4,789         $10,078
  Other (Note 2)                  20,638         31,990            20,638                
                                ________       ________         _________        ________
                                  35,861         60,541            25,427          10,078
  General and
    administrative
    expenses (Note 5)             43,834         30,806            27,350           7,627
                                ________       ________          ________        ________

Income (loss) before 
  income taxes                    (7,972)        29,734            (1,923)          2,450

Income taxes (Note 6)                  -              -                 -               -
                                ________       ________          ________        ________

Net income (loss)                 (7,972)        29,734            (1,922)          2,450

Retained earnings
  (deficit), beginning
  of period                      (59,566)       (75,880)          (65,616)        (48,596)
                                ________       ________          ________        ________

Retained earnings
  (deficit), end
  of period                     $(67,538)      $(46,146)         $(67,538)       $(46,146)
                                ========       ========          ========        ========

Income (loss) per
  common share                     $(.01)         $(.03)            $(.01)          $(.03)
                                ========       ========          ========        ========

Weighted average number
  of shares outstanding        1,021,314      1,021,314         1,021,314       1,021,314
                               =========      =========         =========       =========

</TABLE>

                See notes to financial statements.


<PAGE>
                     BALA CYNWYD CORPORATION

                     STATEMENTS OF CASH FLOWS

           NINE MONTHS ENDED OCTOBER 31, 1996 AND 1995
                           (Unaudited)


<TABLE>
<CAPTION>

                                                1996        1995
                                               _________  ________

<S>                                      <C>          <C>

Cash flows from operating activities:                             
  Net income (loss)                             $(7,972)   $29,734
  Adjustments to reconcile net income
  (loss) to net cash provided by 
  (used in) operating activities:
  (Increase) decrease in                                          
    receivables                                               (505)
  Increase (decrease) in                                          
    accrued expenses                            (13,828)    (4,103)
                                                 ______   ________
                                                                  
Net cash provided by (used in) 
  operating activities                          (21,800)    25,126
                                               ________   ________

Cash flows from investing
activities:                                                       
  Payments on notes receivable                              66,010
  Advances to/from officer/
    shareholder, net                            455,169   (110,269)
                                               ________   ________

Net cash provided by (used in) 
investing activities                            455,169    (44,259)
                                               ________   ________

Net increase (decrease) in cash 
and cash equivalents                            433,370    (19,132)

Cash and cash equivalents, 
beginning of period                               1,681     21,508
                                               ________   ________

Cash and cash equivalents, 
end of period                                  $435,051     $2,376
                                               ========   ========


</TABLE>
                See notes to financial statements.


<PAGE>
                     BALA CYNWYD CORPORATION
                  NOTES TO FINANCIAL STATEMENTS
           NINE MONTHS ENDED OCTOBER 31, 1996 AND 1995
                           (Unaudited)



1.   Business activity and summary of significant accounting
     policies:

     The Company presently conducts no business but is searching
     for appropriate investment and acquisition opportunities. 
     Its only income consists of interest from notes receivable.

     Cash Equivalents:

     For purposes of the statement of cash flows, the Company
     considers all highly liquid debt instruments purchased with
     maturities of three months or less to be cash equivalents.

     Earnings per share:

     Earnings per share are computed based on the weighted
     average number of common shares outstanding during each year
     (1,021,314 shares in 1996 and 1995).

     Presentation of financial statements:

     Except for the balance sheet as of January 31, 1996, the
     financial information furnished herein has not been audited
     by independent accountants; it reflects, however, all
     adjustments (consisting principally of normal, recurring
     accruals) which, in the opinion of management, are necessary
     for a fair presentation of financial position and results of
     operations and cash flows for the dates and periods noted.


2.   In 1991, the Company agreed to extend credit facilities of
     $500,000 to an unrelated third party.  The debtor has
     completed payments in accordance with the loan agreements of
     $31,990 in excess of an allowance of $88,000 previously
     provided by the Company for any potentially uncollectible
     reimbursements.  On August 16, 1996, the company received
     $20,638 in payment for legal fees and expenses incurred
     during the collection process.  No further payments are due
     from the debtor.


3.   Due from officer/shareholder:

     There are no formal repayment terms and the advance bears
     interest at the prime rate (8.25% at October 31, 1996). 
     Interest income relating to this advance was $10,434 and
     $25,744 for the nine months ended October 31, 1996 and 1995,
     respectively.


4.   Due to affiliate:

     There are no formal repayment terms and the advance bears
     interest at the prime rate.  Interest expense relating to
     this advance was $186 and $195 for the nine months ended
     October 31, 1996 and 1995, respectively.


5.   Management fees:

     The Company has agreed to compensate its president and
     principal shareholder for his services in maintaining the
     corporate books and records and in investigating possible
     merger and acquisition candidates for the Company, and to
     reimburse him for expenses incurred.  Management fees of
     $22,500 are included in general and administrative expenses
     for each of the nine months ended October 31, 1996 and 1995.


6.   Income taxes:

     The Company is classified as a personal holding company for
     each of the periods presented.  The Company is subject to a
     Federal tax equal to 28% of its undistributed earnings, in
     addition to any other income taxes payable.

     At October 31, 1996, the Company has accumulated, for
     federal and state income tax purposes, net operating loss
     carryforwards.  The utilization of these losses to reduce
     future income taxes will depend upon the generation of
     sufficient taxable income prior to the expiration of the net
     operating loss carryforwards.  These carryforwards,
     amounting to approximately $23,700, have expiration dates of
     2008 through 2010.


Item 2.   Management's Discussion and Analysis of
          Financial Condition and Results of Operations
          _____________________________________________


          The following discussion addresses the financial
condition and results of operations of the Company for the second
quarter and nine months ended October 31, 1996 compared with the
same periods in the prior year.  This discussion should be read
in conjunction with the Management's Discussion and Analysis
Section included in the Company's Annual Report on Form 10-K for
the fiscal year ended January 31, 1996, to which the reader is
directed for additional information.

          The Company has recorded a decrease in interest income
of $5,289 and $13,328 for the three and nine month periods ended
October 31, 1996, respectively, as compared to the same periods
in the prior year due to the repayment on May 13, 1996 of
$451,005 on the amount due from an officer/stockholder.  General
and administrative expenses increased by $19,723 and $13,028 for
the first three and nine months of this year, respectively, as
compared to the same periods in the prior year due primarily to
increased costs associated with the Company's efforts to locate
appropriate investment opportunities. The decrease in interest
income together with the increase in expenses resulted in net
losses of $1,922 and $7,972 for this year's third quarter and
nine months, respectively, compared with net income of $2,450 and
$29,734 for the same periods in the prior year.


                    PART 2.  OTHER INFORMATION
                   ___________________________

Item 6.        EXHIBITS AND REPORTS ON FORM 8-K
               ________________________________

               (a)  Exhibits:  None

               (b)  Reports on Form 8-K:  None


                            SIGNATURES
                            __________


          Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.


                                   BALA CYNWYD CORPORATION




Dated: December 12, 1996      By:/s/ Albert M. Zlotnick
                                      ___________________________
                                        Albert M. Zlotnick
                                        President
                                        Chairman of the Board
                                        Chief Financial Officer
                                        and Chief Executive
                                        Officer