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winter internship project of jagruti godambe

winter internship project of jagruti godambe

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    equity research in banking sector equity research in banking sector Document Transcript

    • PROJECT ON“ EQUITY RESEARCH IN BANKING SECTOR ” UNDER THE GUIDANCE OF Mr. subojeet sen gupta. SUBMITTED BY JAGRUTI GODAMBE TRAINEE AT BIRLA SUN LIFE INSURANCE 2012-2013
    • IN FULFILMENT OF ONE MONTH WINTER INTERNSHIP WITH BIRLA SUN LIFE INSURANCE.
    • CERTIFICATE This is to certify that the study presented by JAGRUTI GODAMBE to Birla Sun Life Insurance incompletion of the one month winter internship in finance under the title of Equity Research inBanking sector has been done under my guidance. Signature of the candidate --------------------------- Jagruti GodambeSignature of the GuideSubojeet sen gupta.
    • ACKNOWLEDGEMENTI take this opportunity to sincerely thanks andexpress my gratitude to my project guide Mr.Subojeet Sen Gupta for guiding me throughout myentire project.The experience and the knowledge acquiredduring the internship have been invaluable and itwill help me a great deal in my future educationand career. JAGRUTI GODAMBE
    • TABLE OF CONTENTSS.NO. CONTENT Page no. 1. Executive summery 6 2. Objective, scope, limitations of the 7 project. 3. Introduction 8 4. Fundamental analysis 10 5. Technical analysis 12 6. Analysis of banking 15 sector 7. Analysis of banks 21 8. Recommendations 34 9. Conclusion 35
    • This project is about equity research in banking sector. In this project the banking sector isanalyzed through financial and technical analysis. This are the two tools used for analyzing the banking sector. Then the four Indian banks are analyzed with the description and details.
    • OBJECTIVE, SCOPE, ASSUMPTION AND LIMITATIONS OF THE PROJECT1. Objective: The main objective of this project is to understand that proper analysis of a company minimizes the risk of losing money in stock market of any investor.2. Scope: The scope of the project is limited to understanding the basics of fundamental analysis and technical analysis and apply it to take a decision of investing in banking sector.3. Assumptions : This project is prepared on the assumption that most of the investment in stock market is done by the brokers and not by the common man.4. Limitations: The project has been limited to investment analysis of banking sector only.
    • INTRODUCTIONWhat is equity?In accounting and finance, equity is the residual claim orinterest of the most junior class of investor in assets afterall liabilities are paid.What is equity shares?Equity share is the type of share which is hold by equityshareholders. Equity shareholders are the owners of thecompany. They are the real risk bearers. They may getdividend or they may not get dividend. They enjoymaximum voting rights.What is equity investment?Equity investment generally refers to the holding andbuying of shares on the stock market by individuals andfirms in anticipation of gains from dividend as the valueof stock rises.How to invest in equity shares?Investors can buy the equity shares from the primary andsecondary market. Purchase of shares from securitymarket is primary purchase. And purchase of shares from(IPO) is purchase from secondary market.
    • Why should one invest in equity? If the person invests in equity then it provides maximumreturns to the investor as compared to other avenues ofinvestment.But while making an investment in equity, investor has tostudy them carefully. And this can be done throughanalyzing of equity.Equity shares can be analyzed through: 1. Fundamental analysis 2. Technical analysis
    • s
    • ConceptFundamental analysis is a method of evaluating asecurity by attempting to measure its intrinsic value byexamining related economic, financial and otherqualitative and quantitative factors.Fundamental analysts cover macroeconomic factors, likeoverall economy and industry conditions andmanagement of companies. So, economy-industry-company analysis is a part of fundamental analysis.Goal of Fundamental AnalysisThe end goal of fundamental analysis is to produce avalue that investors can compare with current marketprice in hope of figuring what sort of position to take inthat particular stock/company.So, if the security is underpriced, then go for ‘Buy’, and ifthe security is overpriced then, ‘Sell’.
    • Concept of technical analysis:Technical analysis is the process of analyzing a security’shistorical prices in an effort to determine probable futureprices. This is done by comparing current price actionwith comparable historical price action to predictreasonable outcome. It is a study of prices, with chartsbeing the primary tool.Technical Analysis, as a tool for equity research, is nowfast catching up with the imagination of investors inIndia. As a subject, Technical Analysis is the study of pricepatterns and volumes using historical data for scripts,currency or even a commodity.Darashaw has been a pioneer in disseminating qualityTechnical Research to Domestic & Foreign InstitutionalInvestors since 1997. The key features of our approachhave been
    • Primary use of Technical Research for taking long-term Investment Decisions rather than for short-term trading.Coverage of Markets that extend beyond localIndices & stocks and include Dow, NASDAQ andCrude Oil.An approach that has often proved itself to becompletely contrary to the General Market Outlookof the Investment Fraternity.
    • THE INDIAN BANKING SECTORThe Indian banking sector has seen unprecedentedgrowth along with remarkable improvement in its qualityof assets and efficiency since economic liberalizationbegan in the early 1990s.From providing plain vanilla banking services, banks havegradually transformed themselves into universal banks.ATMs, Internet banking, mobile banking and socialbanking have made "anytime anywhere banking" thenorm now.In 2011/12, non-cash payments comprised 91 per centof total transactions in terms of value and 48 per cent interms of volume. Within noncash payments, too, theshare of payments through cherubs has come down from85 per cent to nine per cent in value, and 83 per cent to52 per cent in volume between 2005/06 and 2011/12. NON-CASH PAYMENTS COMPRISED 91 PER CENT OF VALUE AND 48 PER CENT OF VOLUME OF TOTAL TRANSACTIONSBanks have taken other measures to improve theirfunctioning, too. As a result, there were 20 Indian banks
    • in the UK-based Brand Finances annual internationalranking of top 500 in 2010, as compared to only six in2007, according to a report in a leading financial daily.The growth is not restricted to the metropolitan or urbanareas. Financial inclusion has been at the forefront ofregulators and policy makers in India, a country whereapproximately half of the population still does not haveaccess to banking services. There have been occasionswhen banks have acted beyond their role of financeproviders.For example, a financial daily reported that AryavartGramin Bank, a regional rural bank sponsored by Bank ofIndia, tied up with Tata BP Solar to finance "Solar HomeLighting System" for village homes in Uttar Pradesh. Itextended finance of around Rs 10,000 with Rs 3,000 asmargin money to be contributed by the beneficiary.The equated monthly installment towards the repaymentof the loan amount was less than the amount thevillagers had to spend on kerosene requirements permonth. The banks initiative resulted in 20,000 houses
    • getting solar power. It also meant an annual saving ofabout 192 tanker loads of kerosene.
    • Recent development in banking sector Indias economic development and financial sector liberalization have led to a transformation of the Indian banking sector over the past two decadesAsset quality and profitability have improved significantlyand the system has become more commercially oriented. Indian banks were not much impacted by the financial crisis, helped by their relative isolation and some counter-cyclical measures implemented by the Reserve Bank of India in the mid-2000s, but asset quality deterioration led to some proactive loan restructuringOver the past year Indian banks have encountered more headwinds as high inflation led to tightening monetary policy, putting pressure on borrowers, especially in weaker sectors.Funding and liquidity are relatively strong features of the Indian banking system as the Loans/Deposits ratio is under 80% and the banks are required to hold large amounts of Indian government bonds. Their access to
    • offshore funding is constrained by Indias just investment grade sovereign rating. Capital is also adequate in aggregate but some banks, including large Public Sector banks, are in need of core capital .
    • “ ANALYSIS OF BANKS “
    • COMPANY PROFILE OF PUNJAB NATIONAL BANK.Description DetailsINDUSTRY Bank- publicHOUSE GovernmentBSE CODE 532461NSE CODE PNB | ISIN: INE160A01014INCORPORATION YEAR 1895E-MAIL hosd@pnb.co.inCHAIRMAN KR KAMATHEXECUTIVE DIRECTOR RAKESH SETHI
    • PROFILE OF UNION BANK OF INDIADESCRIPTION DETAILSINDUSTRY Bank- publicHOUSE GovernmentBSE CODE 532477INCORPORATION YEAR 1919CHAIRMAN D. SARKARWEBSITE www.unionbankofindia.co.in
    • KOTAK MAHINDRA BANKDESCRIPTION DETAILSINDUSTRY Bank- publicHOUSE GOVERNMENTBSE CODE 500247NSE kotakbankINCORPORATION YEAR 1985CHAIRMAN MR. Uday KotakCHAIRMAN OF BOARD OF Dr. ShankarDIRECTOR AcharyaWEBSITE www.kotak.com
    • Yes bankDESCRIPTION DETAILSINDUSTRY Bank- privateBSE CODE 532648INCORPORATION YEAR 2004CHAIRMAN Dr. Rana KapoorWEBSITE www.yesbank.in
    • Profit & Loss account of ------------------- in Rs. Cr. -------------------Punjab National Bank Mar 12 Mar 11 Mar 10 Mar 09 Mar 08 12 mths 12 mths 12 mths 12 mths 12 mthsIncomeInterest Earned 36,428.03 26,986.48 21,466.91 19,326.16 14,265.02Other Income 4,202.60 3,612.58 3,565.31 2,919.69 1,997.56Total Income 40,630.63 30,599.06 25,032.22 22,245.85 16,262.58ExpenditureInterest expended 23,013.59 15,179.14 12,944.02 12,295.30 8,730.86Employee Cost 4,723.48 4,461.10 3,121.14 2,924.38 2,461.54Selling and Admin Expenses 3,353.59 2,813.45 1,701.46 1,406.42 884.19Depreciation 292.26 255.85 222.83 191.06 170.23Miscellaneous Expenses 4,363.51 3,456.02 3,137.42 2,337.80 1,966.98Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00Operating Expenses 9,405.85 8,367.96 5,761.36 5,026.81 3,902.55Provisions & Contingencies 3,326.99 2,618.46 2,421.49 1,832.85 1,580.39Total Expenses 35,746.43 26,165.56 21,126.87 19,154.96 14,213.80 Mar 12 Mar 11 Mar 10 Mar 09 Mar 08 12 mths 12 mths 12 mths 12 mths 12 mthsNet Profit for the Year 4,884.20 4,433.50 3,905.36 3,090.88 2,048.76Extraordionary Items 7.88 0.00 0.00 0.00 0.00Profit brought forward 0.00 0.00 7.64 0.00 15.52Total 4,892.08 4,433.50 3,913.00 3,090.88 2,064.28Preference Dividend 0.00 0.00 0.00 0.00 0.00Equity Dividend 746.19 696.99 693.67 630.61 409.89Corporate Dividend Tax 121.05 113.07 116.43 107.17 69.66Per share data (annualised)Earning Per Share (Rs) 144.00 139.94 123.86 98.03 64.98Equity Dividend (%) 220.00 220.00 220.00 200.00 130.00Book Value (Rs) 777.39 632.48 514.77 416.74 341.98AppropriationsTransfer to Statutory Reserves 1,390.32 1,258.39 1,532.46 1,155.46 596.14Transfer to Other Reserves 2,634.53 2,365.05 1,570.44 1,190.00 988.59Proposed Dividend/Transfer to Govt 867.24 810.06 810.10 737.78 479.55Balance c/f to Balance Sheet 0.00 0.00 0.00 7.64 0.00Total 4,892.09 4,433.50 3,913.00 3,090.88 2,064.28
    • Balance Sheet of Punjab ------------------- in Rs. Cr. -------------------National Bank Mar 12 Mar 11 Mar 10 Mar 09 Mar 08 12 mths 12 mths 12 mths 12 mths 12 mthsCapital and Liabilities:Total Share Capital 339.18 316.81 315.30 315.30 315.30Equity Share Capital 339.18 316.81 315.30 315.30 315.30Share Application Money 0.00 0.00 0.00 0.00 0.00Preference Share Capital 0.00 0.00 0.00 0.00 0.00Reserves 26,028.37 19,720.99 15,915.63 12,824.59 10,467.35Revaluation Reserves 1,449.53 1,470.76 1,491.99 1,513.74 1,535.70Net Worth 27,817.08 21,508.56 17,722.92 14,653.63 12,318.35Deposits 379,588.48 312,898.73 249,329.80 209,760.50 166,457.23Borrowings 37,264.27 31,589.69 19,262.37 4,374.36 5,446.56Total Debt 416,852.75 344,488.42 268,592.17 214,134.86 171,903.79Other Liabilities & Provisions 13,524.18 12,328.27 10,317.69 18,130.13 14,798.23Total Liabilities 458,194.01 378,325.25 296,632.78 246,918.62 199,020.37 Mar 12 Mar 11 Mar 10 Mar 09 Mar 08 12 mths 12 mths 12 mths 12 mths 12 mthsAssetsCash & Balances with RBI 18,492.90 23,776.90 18,327.58 17,058.25 15,258.15Balance with Banks, Money at Call 10,335.14 5,914.32 5,145.99 4,354.89 3,572.57Advances 293,774.76 242,106.67 186,601.21 154,702.99 119,501.57Investments 122,629.47 95,162.35 77,724.47 63,385.18 53,991.71Gross Block 5,265.08 4,981.60 4,215.21 3,930.36 3,699.64Accumulated Depreciation 2,096.22 1,876.01 1,701.74 1,533.25 1,384.12Net Block 3,168.86 3,105.59 2,513.47 2,397.11 2,315.52Capital Work In Progress 0.00 0.00 0.00 0.00 0.00Other Assets 9,792.88 8,259.42 6,320.07 5,020.20 4,380.84Total Assets 458,194.01 378,325.25 296,632.79 246,918.62 199,020.36Contingent Liabilities 173,768.84 101,465.73 68,124.47 79,270.65 80,606.88Bills for collection 50,981.22 37,449.53 33,215.78 31,941.43 23,448.99Book Value (Rs) 777.39 632.48 514.77 416.74 341.98
    • Balance Sheet of Union Bank ------------------- in Rs. Cr. -------------------of India Mar 11 Mar 10 Mar 09 Mar 08 Mar 07 12 mths 12 mths 12 mths 12 mths 12 mthsCapital and Liabilities:Total Share Capital 635.33 505.12 505.12 505.12 505.12Equity Share Capital 524.33 505.12 505.12 505.12 505.12Share Application Money 0.00 0.00 0.00 0.00 0.00Preference Share Capital 111.00 0.00 0.00 0.00 0.00Reserves 10,555.35 8,302.69 6,549.26 5,118.19 4,228.16Revaluation Reserves 1,573.84 1,615.97 1,685.98 1,724.40 456.59Net Worth 12,764.52 10,423.78 8,740.36 7,347.71 5,189.87Deposits 202,461.29 170,039.74 138,702.83 103,858.65 85,180.22Borrowings 13,315.97 9,215.31 3,884.90 4,760.49 4,215.53Total Debt 215,777.26 179,255.05 142,587.73 108,619.14 89,395.75Other Liabilities & Provisions 7,442.67 5,483.01 9,647.43 8,106.43 8,092.26Total Liabilities 235,984.45 195,161.84 160,975.52 124,073.28 102,677.88 Mar 11 Mar 10 Mar 09 Mar 08 Mar 07 12 mths 12 mths 12 mths 12 mths 12 mthsAssetsCash & Balances with RBI 17,610.45 12,468.24 8,992.05 9,454.74 5,917.57Balance with Banks, Money at Call 2,487.99 3,308.45 6,992.88 643.10 2,508.87Advances 150,986.08 119,315.30 96,534.23 74,348.29 62,386.43Investments 58,399.14 54,403.53 42,996.96 33,822.63 27,981.77Gross Block 3,598.41 3,396.98 3,220.65 2,937.45 1,487.21Accumulated Depreciation 1,319.21 1,101.50 893.35 741.62 664.49Net Block 2,279.20 2,295.48 2,327.30 2,195.83 822.72Capital Work In Progress 13.58 9.96 7.86 4.57 2.28Other Assets 4,208.00 3,360.89 3,124.23 3,604.10 3,058.24Total Assets 235,984.44 195,161.85 160,975.51 124,073.26 102,677.88Contingent Liabilities 148,033.99 63,675.91 63,248.00 47,413.13 32,894.26Bills for collection 16,652.20 13,227.35 22,391.95 18,280.70 10,537.72Book Value (Rs) 211.31 174.37 139.66 111.33 93.71
    • Profit & Loss account of Union ------------------- in Rs. Cr. -------------------Bank of India Mar 11 Mar 10 Mar 09 Mar 08 Mar 07 12 mths 12 mths 12 mths 12 mths 12 mthsIncomeInterest Earned 16,452.62 13,302.68 11,889.38 9,447.30 7,382.18Other Income 2,038.78 1,974.74 1,482.55 1,232.67 841.80Total Income 18,491.40 15,277.42 13,371.93 10,679.97 8,223.98ExpenditureInterest expended 10,236.42 9,110.27 8,075.81 6,360.95 4,591.96Employee Cost 2,600.25 1,354.99 1,152.36 845.68 873.80Selling and Admin Expenses 1,814.19 1,225.57 1,082.54 946.34 620.16Depreciation 155.66 160.14 136.58 101.82 86.37Miscellaneous Expenses 1,602.94 1,351.53 1,198.08 1,038.15 1,206.30Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00Operating Expenses 5,137.69 3,206.76 2,760.59 2,178.20 1,805.92Provisions & Contingencies 1,035.35 885.47 808.97 753.79 980.71Total Expenses 16,409.46 13,202.50 11,645.37 9,292.94 7,378.59 Mar 11 Mar 10 Mar 09 Mar 08 Mar 07 12 mths 12 mths 12 mths 12 mths 12 mthsNet Profit for the Year 2,081.95 2,074.92 1,726.55 1,387.03 845.39Extraordionary Items 0.00 0.00 0.00 0.00 0.00Profit brought forward 1.63 0.83 0.65 0.48 0.55Total 2,083.58 2,075.75 1,727.20 1,387.51 845.94Preference Dividend 0.00 0.00 0.00 0.00 0.00Equity Dividend 419.47 277.81 252.56 202.05 176.79Corporate Dividend Tax 68.60 47.21 42.92 34.34 27.80Per share data (annualised)Earning Per Share (Rs) 39.71 41.08 34.18 27.46 16.74Equity Dividend (%) 80.00 55.00 50.00 40.00 35.00Book Value (Rs) 211.31 174.37 139.66 111.33 93.71AppropriationsTransfer to Statutory Reserves 973.36 1,177.09 1,171.89 860.86 428.87Transfer to Other Reserves 621.99 572.01 259.00 289.61 211.99Proposed Dividend/Transfer to Govt 488.07 325.02 295.48 236.39 204.59Balance c/f to Balance Sheet 0.16 1.63 0.83 0.65 0.48Total 2,083.58 2,075.75 1,727.20 1,387.51 845.93
    • Profit & Loss account of Kotak ------------------- in Rs. Cr. -------------------Mahindra Bank Mar 12 Mar 11 Mar 10 Mar 09 Mar 08 12 mths 12 mths 12 mths 12 mths 12 mthsIncomeInterest Earned 6,180.24 4,303.56 3,255.62 3,065.14 2,535.36Other Income 848.42 507.56 420.97 157.56 310.48Total Income 7,028.66 4,811.12 3,676.59 3,222.70 2,845.84ExpenditureInterest expended 3,667.75 2,058.49 1,397.48 1,546.60 1,309.56Employee Cost 902.36 783.83 583.48 583.63 519.23Selling and Admin Expenses 542.71 487.82 648.07 552.91 326.66Depreciation 116.76 98.27 90.00 69.56 50.86Miscellaneous Expenses 714.03 564.53 396.47 193.91 345.60Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00Operating Expenses 1,754.66 1,528.58 1,447.42 1,333.60 999.25Provisions & Contingencies 521.20 405.87 270.60 66.41 243.10Total Expenses 5,943.61 3,992.94 3,115.50 2,946.61 2,551.91 Mar 12 Mar 11 Mar 10 Mar 09 Mar 08 12 mths 12 mths 12 mths 12 mths 12 mthsNet Profit for the Year 1,085.05 818.18 561.11 276.10 293.93Extraordionary Items 0.00 0.00 2.01 0.00 0.00Profit brought forward 1,494.52 965.91 648.94 528.17 354.18Total 2,579.57 1,784.09 1,212.06 804.27 648.11Preference Dividend 0.00 0.00 0.00 0.00 0.00Equity Dividend 44.49 36.88 29.66 25.96 25.87Corporate Dividend Tax 7.22 4.37 0.00 1.86 4.40Per share data (annualised)Earning Per Share (Rs) 14.65 11.10 16.12 7.99 8.53Equity Dividend (%) 12.00 10.00 8.50 7.50 7.50Book Value (Rs) 107.75 92.74 130.40 112.98 104.26AppropriationsTransfer to Statutory Reserves 310.81 207.41 188.43 113.70 74.98Transfer to Other Reserves 54.26 40.91 28.06 13.80 14.70Proposed Dividend/Transfer to Govt 51.71 41.25 29.66 27.82 30.27Balance c/f to Balance Sheet 2,162.79 1,494.52 965.91 648.94 528.17Total 2,579.57 1,784.09 1,212.06 804.26 648.12
    • Balance Sheet of Kotak ------------------- in Rs. Cr. -------------------Mahindra Bank Mar 12 Mar 11 Mar 10 Mar 09 Mar 08 12 mths 12 mths 12 mths 12 mths 12 mthsCapital and Liabilities:Total Share Capital 370.34 368.44 348.14 345.67 344.67Equity Share Capital 370.34 368.44 348.14 345.67 344.67Share Application Money 0.00 0.00 0.00 0.00 0.00Preference Share Capital 0.00 0.00 0.00 0.00 0.00Reserves 7,610.41 6,464.95 4,191.78 3,559.86 3,249.04Revaluation Reserves 0.00 0.00 0.00 0.00 0.00Net Worth 7,980.75 6,833.39 4,539.92 3,905.53 3,593.71Deposits 38,536.52 29,260.97 23,886.47 15,644.93 16,423.65Borrowings 16,595.52 11,723.95 6,140.51 5,904.07 5,119.25Total Debt 55,132.04 40,984.92 30,026.98 21,549.00 21,542.90Other Liabilities & Provisions 2,553.67 3,032.36 2,869.42 3,257.34 3,175.75Total Liabilities 65,666.46 50,850.67 37,436.32 28,711.87 28,312.36 Mar 12 Mar 11 Mar 10 Mar 09 Mar 08 12 mths 12 mths 12 mths 12 mths 12 mthsAssetsCash & Balances with RBI 2,016.49 2,107.72 2,085.67 995.35 1,710.29Balance with Banks, Money at Call 618.06 363.26 214.59 145.32 439.18Advances 39,079.23 29,329.31 20,775.05 16,625.34 15,552.22Investments 21,566.81 17,121.44 12,512.66 9,110.18 9,141.99Gross Block 955.41 831.80 745.34 460.61 391.42Accumulated Depreciation 505.45 406.20 317.69 247.25 181.17Net Block 449.96 425.60 427.65 213.36 210.25Capital Work In Progress 0.00 0.00 0.00 0.00 0.00Other Assets 1,935.91 1,503.33 1,420.69 1,622.33 1,258.43Total Assets 65,666.46 50,850.66 37,436.31 28,711.88 28,312.36Contingent Liabilities 17,319.52 12,291.30 4,156.15 4,486.28 7,172.79Bills for collection 6,166.00 4,470.06 3,063.64 1,188.17 826.55Book Value (Rs) 107.75 92.74 130.40 112.98 104.26
    • Balance Sheet of Yes Bank ------------------- in Rs. Cr. ------------------- Mar 12 Mar 11 Mar 10 Mar 09 Mar 08 12 mths 12 mths 12 mths 12 mths 12 mthsCapital and Liabilities:Total Share Capital 352.99 347.15 339.67 296.98 295.79Equity Share Capital 352.99 347.15 339.67 296.98 295.79Share Application Money 0.00 0.00 0.00 0.00 0.00Preference Share Capital 0.00 0.00 0.00 0.00 0.00Reserves 4,323.65 3,446.93 2,749.88 1,327.24 1,023.13Revaluation Reserves 0.00 0.00 0.00 0.00 0.00Net Worth 4,676.64 3,794.08 3,089.55 1,624.22 1,318.92Deposits 49,151.71 45,938.93 26,798.57 16,169.42 13,273.16Borrowings 14,156.49 6,690.91 4,749.08 2,189.06 986.21Total Debt 63,308.20 52,629.84 31,547.65 18,358.48 14,259.37Other Liabilities & Provisions 5,677.28 2,583.07 1,745.32 2,918.10 1,404.13Total Liabilities 73,662.12 59,006.99 36,382.52 22,900.80 16,982.42 Mar 12 Mar 11 Mar 10 Mar 09 Mar 08 12 mths 12 mths 12 mths 12 mths 12 mthsAssetsCash & Balances with RBI 2,332.54 3,076.02 1,995.31 1,277.72 959.24Balance with Banks, Money at Call 1,253.00 419.96 677.94 644.99 668.33Advances 37,988.64 34,363.64 22,193.12 12,403.09 9,430.27Investments 27,757.35 18,828.84 10,209.94 7,117.02 5,093.71Gross Block 331.05 255.30 206.40 194.88 133.01Accumulated Depreciation 161.98 125.78 92.32 64.15 35.73Net Block 169.07 129.52 114.08 130.73 97.28Capital Work In Progress 8.04 2.91 1.38 0.39 3.89Other Assets 4,153.48 2,186.11 1,190.73 1,326.86 729.70Total Assets 73,662.12 59,007.00 36,382.50 22,900.80 16,982.42Contingent Liabilities 150,977.70 128,259.99 101,835.50 43,953.92 65,990.12Bills for collection 10,851.42 8,135.54 4,105.86 3,849.80 2,884.42Book Value (Rs) 132.49 109.29 90.96 54.69 44.59
    • Profit & Loss account of Yes ------------------- in Rs. Cr. -------------------Bank Mar 12 Mar 11 Mar 10 Mar 09 Mar 08 12 mths 12 mths 12 mths 12 mths 12 mthsIncomeInterest Earned 6,307.36 4,041.75 2,369.71 2,003.32 1,310.83Other Income 857.12 623.27 575.53 435.02 360.67Total Income 7,164.48 4,665.02 2,945.24 2,438.34 1,671.50ExpenditureInterest expended 4,691.72 2,794.82 1,581.76 1,492.14 974.11Employee Cost 475.15 362.34 256.89 218.02 202.41Selling and Admin Expenses 203.03 185.25 182.76 125.49 60.27Depreciation 40.82 34.84 30.26 30.10 19.23Miscellaneous Expenses 776.76 560.64 415.84 268.75 215.45Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00Operating Expenses 944.10 719.08 587.76 475.61 356.92Provisions & Contingencies 551.66 423.99 297.99 166.75 140.44Total Expenses 6,187.48 3,937.89 2,467.51 2,134.50 1,471.47 Mar 12 Mar 11 Mar 10 Mar 09 Mar 08 12 mths 12 mths 12 mths 12 mths 12 mthsNet Profit for the Year 977.00 727.14 477.74 303.84 200.02Extraordionary Items 0.04 -0.04 0.00 0.00 0.00Profit brought forward 1,115.06 672.95 405.78 245.08 105.30Total 2,092.10 1,400.05 883.52 548.92 305.32Preference Dividend 0.00 0.00 0.00 0.00 0.00Equity Dividend 141.20 86.79 50.95 0.00 0.00Corporate Dividend Tax 22.91 14.41 8.66 0.00 0.00Per share data (annualised)Earning Per Share (Rs) 27.68 20.95 14.06 10.23 6.76Equity Dividend (%) 40.00 25.00 15.00 0.00 0.00Book Value (Rs) 132.49 109.29 90.96 54.69 44.59AppropriationsTransfer to Statutory Reserves 269.61 183.79 150.95 143.15 60.24Transfer to Other Reserves -0.01 0.00 0.00 0.00 0.00Proposed Dividend/Transfer to Govt 164.11 101.20 59.61 0.00 0.00Balance c/f to Balance Sheet 1,658.39 1,115.06 672.95 405.78 245.08Total 2,092.10 1,400.05 883.51 548.93 305.32
    • Recommendations for Indian banking sector 1. The organizational structure of the banks should be effective and efficient 2. The customer service should be efficient 3. Islamic banking should be adopted in India. 4. Banks in India should avoid excessive reliance on technology. 5. Data of banks should be protected properly otherwise hackers can gain access to the sensitive data.
    • Conclusion It could be concluded that there has been nobanking crisis at the same time, efficiency ofbanking system as a whole, measured by decliningspread has improved. This is not say that theyhave no challenges. There are emergingchallenges, which appear in the forms ofconsolidation; recapitalization, prudentialregulation weak banks, and non-performing assets,legal framework etc needs urgent attention. Thepaper concludes that, from a regulatoryperspective, the recent developments in thefinancial sector have led to an appreciation of thelimitations of the present segmental approach tofinancial regulation and favors adopting aconsolidated supervisory approach to financialregulation and supervision, irrespective of itsstructural design.
    • Webliography1. www. Moneycontrol.com2. www.management paradise.com3. www.zignals.com4. www.money.rediff.com5. www.kotak.com6. www.yesbank.com7. www.caclubindia.com8. www.indianfoline.com9. www.pnbindia.com