Summer Internship Project in SBI- MBA Finance

1. A PROJECT REPORT ON
Interpreting Financial Performance and Investment opportunities in the Banking Sector
-Wih Special Reference to ICICI Bank & SBI
PREPARED BY
AHI BHUSAN MUKHERJEE
REGISTRATION NO.: 00917 OF 2017-2018
ROLL NO.: PG/24/MBA-IIS/026
MAJOR SPECIALISATION: FINANCE
SESSION: 2017-2019
UNDER THE GUIDANCE OF
MR. JITESH AGARWAL, DIRECTOR
FIVISION CAPITAL MARKET PVT. LTD.
SUBMITTED TO
EASTERN INSTITUTE FOR INTEGRATED LEARNING IN MANAGEMENT
Affiliated to
VIDYASAGAR UNIVERSITY

2. COMPANY PROFILE
 Finvision Capital Markets Private Limited is an Indian Non-Government Company
incorporated on 09 October 2013 with Registrar of Companies, Kolkata.
 .
 The total paid-up capital is INR 31.0 LAC. Finvision Capital Markets Private Limited has
no reported secured loans.
 Finvision Capital Markets Private Limited has 2 directors/key management personnel
 Service Provided:
Equity Trading
Commodity Market
Currency Trading
Mutual Fund
IPO
Strategy Trading

3. OBJECTIVE OF THE STUDY
 To explain the current ecnomic scenario of Indian
Economy.
 To study the Financial Performance of the Banking
Sector with special reference to ICICI Bank Ltd. &
State Bank of India.
 Study on interpreting Financial Performance and
Investment opportunities in those stocks.

4. METHODOLOGY
INDUSTRY: Banking
STOCKS ANALYSED: ICICI BANK STATE BANK OF INDIA
TYPE OF DATA: Secondary
SOFTWARES USED: Meta Stock Ace Equity
CHART TYPE: Line chart for all Tools and Indicators except Pivot Point
plotted in Candlestick chart
SCALE: Semi log scale for Trendline and Support & Resistance and
Arithmetic scale for other Tools and Indicators
PERIODICITY: Weekly charts for Tools and Daily charts for Indicators
TIME FRAME: 1st January 2012 to 23rd July 2018 for support and
Resistance and Trendline.
1st August, 2017 to 23rd July, 2018 for others Tools and
Indicator

5. TOOLS AND INDICATOR USED
For Both Stocks(ICICI Bank and SBI)
 Dow Theory
 Volume Principle
 Support Resistance
 Trend Line
 Moving Average
 Bollinger Bands
 Relative Strength Index(RSI)
 Moving Average Convergence Divergence(MACD)
 Average Directional Index(ADX)
 Stochastic Oscillator
 Pivot Point

6. ECONOMIC OVERVIEW
 India is the Fastest Growing Economy at 7.4% in 2018
 Q1, 2018 GDP Growth Rate has increased to 7.7% compared to 7% in previous Quarter
 GVA has decreased to 6.1% in current year compared to 6.6% in previous year.
 In the month of Jan & Feb, 2018 growth of IIP has increased to 7.5% & 6.9%
respectively due to mostly contribution of Manufacturing sector.
 CPI rate is 5%
 FDI in India has decreased by 3% to $44.85 Billion in 2017-18.
 Current FII net Investment is Rs 1775 Crores in July, 2018. FII net Investment backed
by expectations of an economic recovery, falling interest rates and improving earnings
outlook.
 1st August, 2018 LAF decided that Repo Rate increase by 25 basis points to 6.50%.
 Reverse Repo Rate is 6.25%
 The Government achieved the Fiscal Deficit target of 3.5% of GDP in 2017-18.

7. BANKING INDUSTRY OVERVIEW
 As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently
capitalised and well-regulated.
 Bank may be defined as a financial institution which is engaged in the business of
keeping money for savings and checking accounts or for exchange or for issuing
loans and credit etc.
 The Indian banking system consists of 27 public sector banks, 21 private sector
banks, 49 foreign banks, 56 regional rural banks, 1,562 urban cooperative banks
and 94,384 rural cooperative banks, in addition to cooperative credit institutions
 Bank credit grew at 12.64 per cent year-on-year to Rs 85.511 lakh crore (US$
1,326.78 billion) on May 11, 2018 from Rs 75.91 lakh crore (US$ 1,131.47) on May
12, 2017.

8. COMPANY ANALYSIS: ICICI BANK
DESCRIPTION MAR, 2018 MAR, 2017 MAR, 2016
Current Ratio(%) 0.08 007 0.07
Quick Ratio(%) 13.83 11.94 10.84
CASA(%) 44.49 44.57 42.62
Net Profit Growth(%) -39.45 5.36 -24.05
Advance Growth(%) 23.16 7.34 12.59
ROA(%) -0.21 0.41 0.45
ROE(%) -3.73 6.97 7.3
NIM(%) 2.35 2.47 2.59
ROCE(%) -1.03 4.71 5.42
EPS(Rs) -7.34 13.15 12.82
Asset Quality(%) 5.73 3.71 3.81
Fundamental Analysis

9. SBI: DOW THEORY

10. SBI: VOLUME PRINCIPLE

11. SBI: SUPPORT & RESISTANCE

12. SBI: TREND LINE

13. SBI: MOVING AVERAGE

14. SBI: BOLLINGER BAND

15. SBI: RELATIVE STRENGTH INDEX

16. SBI:
MOVING AVERAGE CONVERGENCE DIVERGENCE

17. SBI: AVERAGE DIRECTIONAL INDEX

18. SBI: STOCHASTIC OSCILLATOR

19. SBI: PIVOT POINT
Date Open High Low Close
23.07.2018 262 267.5 260.6 266.35
Pivot Point (P) 264.8167
Support 1 (S1) 262.1333
Support 2 (S2) 257.9167
Resistance 1 (R1) 269.0333
Resistance 2 (R2) 271.7167
Table: SBI share prices as on 23.07.2018
Table: SBI Pivot Table as on 24.07.2018

20. OBSERVATION FOR SBI
TOOLS AND
INDICATORS
OBSERVATION DECISION
DOW THEORY Since 3rd week of May, It was an Uptrend till now BUY
VOLUME Volume is spporting the price movement towards down SELL
SUPPORT &
RESISTANCE
Prices are Just touches the Resistance Line SELL/HOLD
TRENDLINE Prices are Just touches the Downtrend Line SELL/HOLD
MOVING AVERAGE Current Share Price crosses both the EMA Line. BUY
BOLLINGER BAND Share Price breaks every resistance level BUY
RSI Current value for the 14 Day RSI is above central Line and making positive
divergence
BUY
MACD The Signal Line and the MACD Line are at the same point ------------
ADX According to ADX, Strength of Downtrend is very week and +DI is trying to
go up.
BUY
STOCHASTIC Current value of Stochastic is above 80 Level but previously it has gives
Bullish signal
BUY
PIVOT POINT Trading is above the pivot point and it indicates bullish sentiment. BUY

21. RECOMMENDATION FOR SBI
 Majority of the evidence is inclined toward the BUYING decision.
 It is recommended for the new investors to buy the stock for long term profit
booking:
Target:
Stop Loss:
 Toward the BUYING decision for Intra-day Traders
Target: 269.03
Stop Loss: 264.82

22. THANK YOU