This document contains details of a student project analyzing the financial statements of the top 3 Indian banks - SBI, ICICI, and PNB. It includes the student's name, roll number, project title, subject area, and guide's name. The project involves calculating and comparing various ratios such as profitability, leverage, payout, and liquidity ratios across the three banks. The objectives are to assess the banks' profitability, do comparative analysis between banks, and evaluate operational efficiency. The introduction provides background on banks' role in the economy. The literature review discusses previous research on analyzing banks' financial performance.

1. NAME : ANKUSH GOEL
ROLL NO : 11001532006
PROJECT TITLE : ANALYSIS OF FINANCIAL STATEMENT OF TOP 3
INDIAN BANKS
SUBJECT AREA : FINANCE
NAME OF THE GUIDE : Dr. SATPAL
Signature of the Student- _______________________
Signature of the Guide- ________________________
FOR OFFICE USE ONLY
SYNOPSIS GUIDE
APPROVED APPROVED
NON APPROVED NON APPROVED
COMMENT/ SUGGESTION FOR REFORMATION OF PROJECTS
SIGNATURE:
DATE:

2. INTRODUCTION
The banking system is an integral part of an economy. It is one of the many institutions that
impinges on the economy and affect its performance. Economists have expressed a variety
of opinions on the effectiveness of the banking systems in promoting or facilitating
economic development. As an economic institution. the bank is expected to be more directly
and more positively related to the performance of the economy than most non-economic
institutions. Banks are considered to be the nerve centre of economies and finance of a
nation and the barometer of its economic perspective. They are not merely dealers in money
but are in fact dealers in development. Banks are important agencies for the generation of
Savings of the community. They are also the main agents of credit. They divert and employ
the funds to make possible fuller utilization of the resources of a nation
Under this I have done the comparative analysis of financial statement of top 3 Indian banks
that are SBI, ICICI and PNB.
In this I have done analysis of various ratios
 Profitability ratio
 Leverage ratio
 Payout ratio
 Liquidity ratio
Financial ratios are widely used for modeling purposes both by practitioners and
researchers. The firm involves many interested parties, like the owners, management,
personnel, customers, suppliers, competitors, regulatory agencies, and academics, each
having their views in applying financial statement analysis in their evaluations. Practitioners
use financial ratios, for instance, to forecast the future success of companies, while the
researchers' main interest has been to develop models exploiting these ratios. Many distinct
areas of research involving financial ratios can be discerned

3. LITERATURE REVIEW:-
1. DR. K. SRIHARSHA REDDY (March 2012)
In the present study an attempt is made to evaluate relative performance of banks in India using CAMEL
approach. It is found that public sector banks have significantly improved indicating positive impact of the
reforms in liberalizing interest rates, rationalizing directed credit and Investments and increasing
competition.
2. Jain (2006)
. The author classified the various ratios under three categories, viz. Costing Ratio, Returns / Yield Ratio
and Spread Ratios. Such ratios can be used to understand a bank’s financial condition, its operation and
attractiveness as an investment. He explained that such ratio analysis can be used to make an inter-
branch comparison for investigating the strengths and weaknesses of individual bank’s and to enable
them to take strategic decisions and initiate necessary corrective actions . Apart from profitability ratios,
the author mentioned the following categories of ratios for undertaking comparative performance of
banks, viz. Productivity Ratios, NPA Ratio, Efficiency Ratio, Ratios on Shares (Shareholders front).
3. Singla (2008)
The author examined how financial management plays a crucial role in the growth of banking. During
2005-06, bank credits witnessed a strong expansion and a steady growth in deposits was also observed.
The study is conducted by examining the profitability of the selected sixteen banks (BANKEX-based) for
the period of six years (2000-01 to 2006-07). For this purpose, the researcher computed various (Nine)
ratios, which throw light on the various dimensions of the business. The study revealed that the profitability
position was reasonable during the period of study when compared with previous years. Return on
investment (ROI) proved that the overall profitability and the position of the selected banks were sustained
at a moderate rate. Finally, the researcher predicted that with the increasing level of globalization of Indian
banking industry and the evolution of universal banks, competition in the banking industry would intensify
further.
4. DR.D.GURUSWAMY (January 2012)
On the basis of analysis of profitability ratio it is printout that the profit in relation to working fund shows
fluctuating trend during the study period in all the banks. The analysis reveals that associate banks has
outstanding performance in respect of earning profits in relation to working fund compared to SBI. Further,
there is no significant difference in profit after tax in relation to working fund ratio between the years and
banks as per the ANOVA.

4. 5. V K Gupta , Monika Aggarwal (2012)
Overall performance index revealed that new private sector banks occupied the top position in 1995-96
and 1999-2000 and thereafter they occupied the second slot and that foreign banks maintained their top
position in 1991-92, 2003-04 and 2007-08. The performance of SBI group, nationalized banks and old
private banks were below the mean value of 246.01 in all the selected years. Only new private banks and
foreign banks were above the mean ratio.
6. Kewaljeet (1999)
The author made an attempt to analyze the profitability performance of State Bank of Patiala keeping in
mind the changing economic reward. According to the author, percentage in growth in gross income after
the reform process started in1991-92 decreased from a growth of 201.92 per cent during 1985-86 to 1989-
90 to a growth of 74.80 per cent during 1990-91 to 1994-95 (the period of liberalization). As a result of
liberalization, there is continuous decline in the profits of commercial banks.
7. Brinda and Dubey (2007)
They studied the performance of PSBs vis-à-vis other bank groups, i.e., private sector banks and foreign
banks present in India. They tested the performance of different bank groups on different profitability and
efficiency parameters and through econometric model. In their paper, they tested the hypothesis that
government ownership per se makes public enterprises inefficient. For evaluating a bank’s performance,
they have used the two profitability measures, i.e., return on assets (ROA) and operating profit ratio
(OPR). The above observations support the econometric findings of their study that PSBs are not
inherently less efficient than private sector banks and foreign banks, given the regulatory environment
8. Prasantha (1997)
He has evaluated the performance of SBH by selecting certain parameters like deposit mobilisation,
analysis of advances, credit deposit ratios, interest spreads, employee productivity,customer services,
profit as a percentage of working funds etc. One major conclusiondrawn by the researcher is that the
profits of SBH showed an increasing trend,indicating a more than a proportionate increase in spread, than
in burden. It has beenbrought out that there is a gradual increase in the percentage of profit on the
workingfunds over the study period. According to the study, there is decline in operating
costs,responsiveness of the SBH during the study period which is a clear symptom of cost effectiveness/
productivity which has resulted in a profit

5. 9. Pathak (2003)
while comparing the financial performance of private sector banks since 1994-95, explained that the
private sector banks have delivered a new banking experience. Looking to the growing popularity of
services provided by them, their public sector counterparts have started emulating them. He studied the
performance of these banks in terms of financial parameters like deposits, advances, profits, return on
assets and productivity.In this paper, the author made an attempt to have an insight into the financial
operation of these institutions. A sample of 5 banks has been taken for financial analysis. Financial track
record of all these banks was evaluated, and their financial performance was compared. The working of all
the constituents was satisfactory but the HDFC Bank emerged as a top performer among them followed
closely by the ICICI Bank.
10. Arora and Kaur (2006)
They made an attempt to review the performance of banking sector in India during the post-reforms
period. Banking sector being an integral part of Indian financial system has undergone dramatic changes
reflecting the ongoing economic and financial sector reforms. The main objective of these reforms has
been to strengthen the banking system amongst international best practices and standards, which will
have lasting effect on the entire fabric of Indian financial system. These financial sector reforms have
stimulated greater competition convergence and consolidation in Indian banking sector. For the purpose of
analysis, banks have been broadly categorized into fourcategories, i.e., private sector, foreign banks,
nationalized banks, and SBI and itsassociates. They made a comparative appraisal of banks on the basis
of seven keyperformance measures such as returns on assets (ROA), capital asset, risk weightedratio,
NPA to net advances, business per employee, net profitability ratio, NPA leveland off-balance-sheet
operations of commercial banks for a time period of 9 years, i.e.,1996-2005.

6. OBJECTIVES
Analysis of financial statements is an attempt to assess the efficiency and performance of
an enterprise. For that there are some objectives which are described as under
 EARNING CAPACITY OR PROFITABILITY
 COMPARATIVE POSITION IN RELATION TO OTHER FIRMS
 EFFICIENCY OF MANAGEMENT
 FINANCIAL STRENGTH
 SOLVECNY OF THE FIRM
RESEARCH METHODOLOGY:-
1. RESEARCH DESIGN
Descriptive research design will be used in this research. It includes fact
finding inquiries of different kinds. The major purpose of descriptive research is
description of the state of the affairs, as it exists at present.
2. SOURCES OF DATA COLLECTION
This study involves the secondary data . sources of the secondary data are the concerned
websites , news paper.
3. SAMPLING DESIGN
Sampling may be defined as the selection of some part of an aggregate or totality on
the basis of which a judgment or inference about the aggregate or totality is made. In
simple words, it is the process of obtaining information about the population by
examining only a part of it.
a. Sampling Technique –convenience sampling.
b. Sample Size –three banks (PNB, ICICI and SBI).

7. LIMITATIONS
 Limitations of financial statements - Ratios are based only on the information
which has been recorded in the financial statements
 Lack of adequate standard- No fixed standard can be laid down for ideal ratios
 Limited use of single ratios- A single ratio, usually, does not convey much of a
sense. To make a better interpretation, a number of ratios have to be calculated which
is likely to confuse the analyst than help him in making any good decision
 Personal bias - Ratios are only means of financial analysis and not an end in itself.
Ratios have to interpret and different people may interpret the same ratio in different
way.
 Incomparable - Not only industries differ in their nature, but also the firms of the
similar business widely differ in their size and accounting procedures etc. It makes
comparison of ratios difficult and misleading
 Study confined only to 3 banks

8. CHAPTERISATION
 Introduction
 Review of literature
 Bank profile
 Research methodology
 Objective
 Analysis
 Conclusions
 Recommendations
 Limitations
 Bibliography
 Annexure

9. REFERENCES
Dr. k. sriharsha Reddy “Relative Performance of Commercial banks in India using CAMEL
Approach” ZENITH International Journal of Multidisciplinary Research Vol.2 Issue 3,
March 2012, ISSN 2231 5780.
Jain, V. (2006), “Ratio Analysis: An Effective Tool for Performance Analysis in
Banks”, PNB Monthly Review, November, pp.27-29.
Singla, H. (2008), “Financial Performance of Banks in India”, The ICFAI Journal of
Bank Management, Vol.7, No.1, February, pp.50-62.
Dr. D. Guruswamy, “ Analysis of Profitability Performance Of SBI and its Associates”, ZENITH
International Journal of Business Economics & Management Research Vol.2 Issue 1,
January 2012, ISSN 2249 8826.
V K Gupta , Monika Aggarwal (2012), “Performance Analysis of Banks in India - Pre and
Post World Trade Organization (General Agreement on Trade in Services)”, European
Journal of Business and Management ISSN 2222-1905 (Paper) ISSN 2222-2839.
Kewaljeet (1999), “Profitability Performance of Nationalised Banks: Some Issues
Brinda, J.; and Dubey, A. K. (2007), “Performance of Public Sector Banks: An
Econometric Analysis”, The Indian Banker, Vol.2, No.12, pp. 26-34.
Prasantha (1997), “Performance of Public Sector Commercial Banks: A Case Study of State
Bank of Hyderabad”, Indian journal of commerce, L 196,Part I March 1992.
Pathak, B. (2003), “A Comparison of the Financial Performance of Private Sector
Banks”, Finance India, Vol.17, No.4, pp.1345-1356.
Arora, S.; and Kaur, S. (2006), “Financial Performance of Indian Banking Sector in
Post-Reform Era”, The Indian Journal of Commerce, Vol.59, No.1, pp.96-105.