Equity research report (1)

-NIKITA BOBHATE
0Equity Research Project on banks
EQUITY RESEARCH REPORT
OF BANKS & NBFC’S
Nikita Bobhate | Internship Project | 21st
June 2017
Guided By
Mohd. Yusuf Khan

-NIKITA BOBHATE

-NIKITA BOBHATE
Preface
As in India, Banks, financial services, and Real Estate contributes 10% of total GDP.In That,
Banks contributes 4.8% in total. The Major banks which lead to highest contribution are
ICICI bank, State Bank of India, Punjab National Bank, Axis Bank and others.
The operations of all the banks in India is controlled by Reserve Bank of India, From the
Day RBI announced official central banking authority for the smoother supervision on the
working of banks of India, all the banks classified int two categories. They are Private sector
banks nd public sector banks.
The banking scenario in India has already gained momentum, with the domestic and
international banks gathering pace. All the banks in India are following the 'cost',
determined by revenue minus profit model.
This means that all the resources should be used efficiently to improve the productivity and
ensure a win-win situation. To survive in the long run, it is essential to focus on cost saving.
Previously, banks focused on the 'revenue' model which is equal to cost plus profit. Post the
banking reforms, banks shifted their approach to the 'profit' model, which meant that banks
aimed at higher profit maximization.
The banking sector in India is mostly dominated by the Public sector banks. The Public
sector banks in India alone account for about 75 percent of the total advances in the Indian
banking industry. Public sector banks have shown remarkable growth over the last five four
decades.
Private Banks are banks like HDFC Bank, ICICI Bank, UTI Bank and IDBI bank. The concept
of private banking was introduced about 15 years ago. These are the banks that do not have
any government stakes. Private Banks have gained quite a strong foothold in the Indian
banking industry over the last few years especially because of optimum use of technology.
The Private Banks are accountable for a share of 18.2 percent of the Indian banking
industry.IndusInd Bank was the first private bank in India. Currently, the bank is among
the fastest growing Bank Private Banks in the country. IDBI which is ranked as the tenth
largest global development bank is counted as one of the finest financial institutions in the
subcontinent.
This Report represents a complete Equity research reports on the Banking sector, which
includes all the bank represent Index BANK NIFTY. This report will deliver all the
macroeconomic analysis of the banks which are, Federal bank, ICICI Bank, Bank of Baroda,
State Bank of India, Punjab National Bank, Yes Bank, Canara Bank, Axis Bank, IDFC Bank,
Indus Ind Bank, HDFC Bank and Kotak Mahindra Bank.

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INDEX
SR.NO TOPIC PAGE.NO
1 Introduction
2. Fundamental analysis on Banks
3. Macroeconomic changes of Banks
4. NBFC’S Introductoion
5. Fundamental analysis & valuation 13
5.1 Profitability ratio 14-15
5.2 Liquidity Ratio 15-16
5.3 Solvency Ratio 16-17
5.4 CRR & SLR 17-18
5.5 Price to Earing ratio 19-20
5.6 Price to Book Ratio 20-21
5.7 Earning Per Share 21
5.8 Dividend Per share 22
5.9 DividendPayout Ratio 23
6 Technical Analysis 24
6.1 Introduction 24
6.2 Understanding theories behind technical
Anaalysis
25
6.3 Past one month closing price of banks & NBFC’S 26
6.4 Spot Price Trends 27
6.5 Understanding the concept of Support &
Resistance Price
28-41
6.6 Volume of trades 41-43
6.7 Using Moving average trends 44-50
7 Credit Rating of Banks & NBFC’S 51
7.1 Analyst Veiw 52
7.2 Target Price, Buy , sell Overveiw 53
8. Conclusion 55

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FUNDAMENTAL ANALYSIS
MACROECONOMIC CHANGES & MAIN ASSETS OF BANKS

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BANKING SECTOR OF INDIA
As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalized and
well-regulated. The financial and economic conditions in the country are far superior to any
other country in the world. Credit, market, and liquidity risk studies suggest that Indian
banks are generally resilient and have withstood the global downturn well.Indian banking
industry has recently witnessed the roll-out of innovative banking models like payments
and small finance banks. The central bank granted in-principle approval to 11 payments
banks and 10 small finance banks in FY 2015-16. RBI’s new measures may go a long way in
helping the restructuring of the domestic banking industry.
The Indian banking system consists of 26 public sector banks, 25 private sector banks, 43
foreign banks, 56 regional rural banks, 1,589 urban cooperative banks and 93,550 rural
cooperative banks, in addition to cooperative credit institutions. Public-sector banks
control nearly 80 percent of the market, thereby leaving comparatively much smaller shares
for its private peers. Banks are also encouraging their customers to manage their finances
using mobile phones.Standard & Poor’s estimates that credit growth in India’s banking
sector would improve to 11-13 per cent in FY17 from less than 10 percent in the second half
of CY14.
The announcement of demonetization gave a big jolt to the Indian economy. The one
moves effectively reset the economy. The banking sector was the beneficiary with access
to huge deposits The banking sector witnessed a balance sheet growth of 7.7 percent in
2015-16 compared to 9.7 percent a year earlier. A high and rising proportion of banks
stressed loans, particularly those of public sector banks (PSBs) and a consequent increase
in provisioning for non-performing assets (NPAs) continued to weigh on credit growth
reflecting their lower risk appetite and stressed financial position. However, profitability
recorded a substantial decline resulting in lower Return on assets (ROA) at 0.3% during
the year.
The ownership in the banking sector remained predominantly in the public sector
despite a gradual decline in their share.The Reserve Bank of India (RBI) has continued
to reduce interest rates. The repo rates stand at 6.25%. Although banks have reduced
base rates but not to the same extent. For the full transmission of rates, the RBI has asked
banks to follow the marginal cost of funds while setting the base rate.Per RBI data, Credit
to sensitive sectors viz. the capital market and real estate sector accounted for around
20 percent of the total loans and advances by Scheduled commercial banks. Even among
these two sectors, 92.5 per cent of the credit pertained to the real estate sector. During
2015-16, credit to both the sectors witnessed deceleration.

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 Supply- Liquidity is controlled by the Reserve Bank of India (RBI).
 Demand- India is a growing economy and demand for credit is high though it could be
cyclical in nature.
 Barriers to entry- Licensing requirement, investment in technology and branch
network, capital and regulatory requirements.
 Bargaining power of suppliers- High during periods of tight liquidity. Trade unions
in public sector banks can be anti-reforms and orchestrate strikes. Depositors may
invest elsewhere if interest rates fall.
 Bargaining power of customers- For good creditworthy borrowers bargaining power
is high due to the availability of a large number of banks.
 Competition- High- There are public sector banks, the private sector, and foreign
banks along with non-banking finance companies competing in similar business
segments. Additionally, the RBI has approved for small finance banks and payment
banks which will further increase competition in the industry.
FINANCIAL YEAR 2016
The domestic economy growth remained muted, the growth in the Indian banking
sector too remained under pressure in FY16 as well. Advances rose 11.3% in FY16, the
asset quality review initiated by the central bank resulted in an increased recognition of
bad loans. Thus higher provisioning and write-offs stifled banks advances growth. Poor
earnings growth by companies, the slow pace of investments, risk aversion of banks due
to rising bad loans, and availability of alternative funding sources for corporates pulled
down credit growth during the year. Similarly, the growth in deposits of scheduled
commercial banks (SCBs) at 11.3% in FY16 was much lower than the growth at 10.7% in
the previous financial year. The median base rate of major banks came in at 9.65% in
FY16. Even deposit rates have steadily fallen in the financial year 2016.
There remains a wide disparity in the credit performance of public and private sector
banks. While the credit growth of public sector banks has marginally increased by 2.0%
that of private sector banks has improved from 17% to 19.8% in FY16.
The net interest margin (NIM) witnessed a decline during the year due to loss of interest
from standard assets slipping into NPAs, the impact of implementation of the Ujwal
DISCOM Assurance Yojana (UDAY) leading to lower yields and adoption of the marginal
cost lending rate (MCLR) during a decreasing rate scenario. Lower costs of funds could
not offset the decline in NIM. Spread marginally increased in 2015-16.
In terms of profitability, the return on assets (ROA) declined substantially to 0.3%
whereas the return on equity (RoE) dipped from 10.4% to 3.6% in FY16. Among banks,
public sector banks reported a negative ROA from 0.46% to -0.2%. Private sector banks
saw their ROA decline from 1.68% to 1.50% during the year.
The Net NPA to Net Advances by public sector banks increased from 2.92% to 5.75% in
FY16. The rise in stressed assets continued after the asset quality review initiated by the
central bank.

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PROSPECT
The Indian economy is moving towards normalcy after demonetization. The central
bank will continue to monitor liquidity data and inflation numbers to decide on the next
course of action in their monetary policy.
The full transmission of reduction in interest rates from the central bank is expected to
be passed on by the banks to their customers in the upcoming financial year.
The move towards a less cash economy will incentivize increased digital mode of
transactions. The ability of the government to use the database of Aadhaar as unique
identifier coupled with Jan Dhan accounts created for the unbanked or people newly
under the fold of banks is a huge opportunity for banks to exploit in the near future.
The infusion of capital to public sector banks will remain a crucial aspect for these banks
since the banks are struggling with bad loans coupled with a deteriorating provision
coverage ratio will mean that the banks would require capital to disburse credit. Banks
must be well capitalized for them to be able to grow its credit.
MACROECONOMIC CHANGES OF BANKS
Federal Bank of India
Federal Bank reported consistent performance backed by NII growth and better
operational efficiency. Asset quality too showed improvement. They expect the bank to
continue the trend with more focus on digitalization and distribution. At CMP stock trades
at P/ABV multiple of 1.7x on FY 19E. They have valued the stock at P/ABV multiple of 2.3x
& arrived at fair value of Rs 122 per share and have ‘ACCUMULATE’ rating
The bank’s top-line performance was up as net interest income increased by 23% to Rs 842
crs compared to Rs 686 crs YoY & Rs 791 crs QoQ. Other income rose by 19% to Rs 282 crs
YoY. C/I ratio for the bank dropped to 51.16% vs. 56.78% YoY and decreased sequentially by
381 bps. NIM expanded from 3.31% in the corresponding quarter of previous year to 3.42%
and 10bps sequentially from 3.32%.
ICICI Bank
The Bank has spent ` 1.72 billion or approximately 1.6% of its average net profits of the last
three financial years ending March 31, 2013, March 31, 2014, and March 31, 2015, towards CSR
activities. Appropriate disclosures as prescribed under the Companies Act, 2013 have been
made in the annual report for the year ended March 31, 2016 (fiscal 2016).
The above expenditure has been undertaken on elementary education, primary healthcare
and skill development for sustainable livelihoods through the ICICI Foundation for
Inclusive Growth; and directly on rural development activities including financial inclusion

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and financial literacy, education & research and contribution for relief and welfare in
calamity-affected areas.
After all this, the bank has reported total Rs.680.62 billion of turnover and after-tax earning
of total Rs.97.26 billion.
Bank of Baroda
The earning of Bank of Baroda continues to be strong on the back of franchise which Bank
enjoys with its customers and stakeholders. Despite weak financials, Capital Adequacy Ratio
of the Bank as per Basel III continues to be healthy at 13.17% as of March 2016, with Tier 1
capital ratio at 10.79% and Common Equity Tier 1 at 10.29%. In that Consolidated group,
capital adequacy ratio stood at 13.63% at end March 2016. Your Bank is confident that it
would be able to meet credit growth requirements of its customers without needing any
capital infusion in 2016-17 from its majority promoter i.e. Government of India. We have
advised GOI about this and thus our shareholders do not carry the risk of equity dilution
on account of this. In the past year, the bank focuses on building the strong internal base
so that it can stand fiercely in the difficult situations.
State Bank of India
In the year 2015-16, aggregate SBI bank deposits rose by 9.76% to `17,30,722 crore from the
previous year level of `15,76,793 crore. The higher growth of the Bank’s deposits compared
to All Scheduled Commercial Banks’ (ASCB) growth, pushed up the market share by 57 bps
to 17.57% in March 2016. Furthermore, this growth was majorly driven by growth in personal
segment deposits, more specifically by growth in low-cost CASA deposits. The Bank
improved its CASA ratio to 43.84%, an improvement of 96 bps from 42.88% last year.
Meanwhile, the deposits in Savings Bank grew by 13.17% to `5,81,564 crore and current
account clocked a growth of 9.62% to reach `1,35,768 crore in FY16.
With an aim at improved customer service, better crowd management, reduction in wait
times and an overall reduction in the service time, your Bank has rolled out Customer
Experience Excellence Project (CEEP), which was accelerated during FY16. 2674 branches
were rolled out under CEEP during FY16 and the total number of branches under CEEP is
at 3006 as on March 2016. A brief of the initiatives introduced under CEEP to improve the
customer experience is as under:
 Provision of all alternate channel machines viz. ATM, CDM / Recycler, Automatic
Cheque Drop Box Machine (ACDM), SWAYAM Barcoded Passbook Printer and
Internet-enabled PC with printer for the online opening of accounts at specified
Branches which have adequate footfalls.
 Provision of integrated Queue Management System (QMS) and Customer Feedback
TAB at the branch for better crowd management through real-time monitoring and
Branch choreography to tackle peak level rush.
 Graham Mitra to facilitate the issue of tokens and migration of customers to
Alternate Channels.

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 Standardized Single Window Operator (SWO) and Service Desks for non-cash
transactions.
 Account opening Cell to streamline the account opening process.
 Standardized process for sales management and cross-sell.
Punjab National Bank
During FY''16, the Bank has crossed several landmarks i.e., Rs. 9.65 lakh crore Global
Business, Rs. 8.50 lakh crore Domestic Business, Rs. 5.50 lakh crore Global Deposits, Rs.
4.00 lakh crore Net Advances, Rs. 2.00 lakh crore CASA Deposits and Rs. 12,000 crore
Operating Profit.
The Bank's Global Business reached Rs.9.65 lakh crore as at end of March''16 reflecting a
growth of 9.5% on yearly basis. The Bank''s International Business stood at the level of
Rs.1,12,123 crore, recording a YoY growth of 11.2%. While the Global Deposits of the Bank
at Rs.5.53 lakh crore grew by 10.3%, Net Advances recorded growth of 8.4% to reach Rs.4.12
lakh crore as on 31st March 2016.
In terms of Bottom-line parameters, the Bank's Operating Profit increased from Rs. 11,955
crore as at 31st March''15 to Rs. 12,216 crore as at 31st March''16. In terms of key ratios,
Domestic Net Interest margin at 2.95% for the year ended March''16 remained one of the
highest amongst nationalized banks during the period under consideration. Further, the
CRAR of the Bank at 11.28% stood above the prescribed regulatory requirement.
The Bank implemented a new strategic approach named ''Indradhanush'' which charts the
seven key reform areas for the Bank so as to adapt, evolve and thrive in the face of increased
competition in the Indian banking space.
These seven areas are People Development, Increase CASA & Retail Business, Improve CD
Ratio through Credit Growth, NPA Management, Improve customer service, Digital PNB
and Increase Income & Control Expenditure. The Bank made a significant progress in these
areas.
Towards People Development, the Bank has launched new Mobile App based e-Learning
Platform named ''PNB Univ''. It is available on all major Mobile Platforms, besides web-
based access through Desktop or Laptop to provide a quick access to quality curriculum and
high-quality training 24x7 right on the palmtop.
YES Bank
In FY 2015-16, your Bank raised 315 Crores (Approx. USD 50 Million) through the issue of
Green Infrastructure Bonds to International Finance Corporation (IFC), Washington which
is the first investment by IFC in an Emerging Markets GREEN BOND issue in the World.
Yes Bank also signed the loan agreement with Overseas Private Investment Corporation,
the U.S. Government's Development Finance Institution for supporting small business
growth in India.
The loan facility with OPIC was increased from the original amount of USD 200 Million at
the time of signing the Memorandum of Understanding (MoU) to USD 245 Million now.
Yes Bank signed a Technical Assistance Agreement with Asian Development Bank, Manila,
the Philippines for a grant of USD 1 Million to finance capacity building activities related to

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the Rural Financial Inclusion and Farmer Access to Markets Project of YES BANK and to
which YES BANK will contribute USD 2 Million.
Yes Bank signed a MoU for a USD 50 Million loans from IFC, Washington, to be used
exclusively to lend to women-owned businesses. This project is part of the Women
Entrepreneurs Opportunity Facility (WEOF), the first-of-its-kind global facility
dedicated to expanding accesses for women development.
Canara Bank
Canara Bank’s Operating profit of the Bank increased to Rs.7147 crore compared to Rs.6950
crore last year.Due to a sharp increase in provisions & contingencies on account of bad
loans, the Bank reported a net loss of Rs.2813 crore in 2015-16 compared to net profit of
Rs.2703 crore last year. During the year, the Bank also raised Rs.1520 crore equity capital by
way of preferential allotment of 4 crore shares to LIC of India in April 2015. The government
of India infused Rs.947 crore equity capital in the Bank by way of preferential allotment of
2.78 crore equity shares in September 2015. Further, the Bank raised Rs.2400 crore BASEL
III compliant Tier II Bonds in December 2015 and January 2016 in two tranches. In total, the
Bank raised Rs.4867 crore capital in 2015-16.The Government of India''s shareholding in the
Bank stood at 66.30% as at March 2016.
The Bank's overseas operations as at 31st March 2016 covered 8 countries, which include
branches in London and Leicester (U.K), Hong Kong, Shanghai (China), Manama (Bahrain),
Dubai International Financial Centre (DIFC) (U.A.E), Johannesburg (South Africa) and New
York (U.S.A); a Representative Office at Sharjah (U.A.E) and a Joint Venture Bank, viz.,
Commercial Indo Bank LLC in Moscow (Russia) in association with State Bank of India.
Total business of the Bank from the overseas branches aggregated to Rs.50868 crore for the
financial year ending March 2016. Overseas business constituted 6.32% of the Bank’s total
business.
The Bank's international operations are well supported by a wide
a network of 385 Correspondent Banks, spread across 78 countries and the Bank's overseas
branches and offices. Rupee Drawing Arrangement has been made with 36 Exchange
Houses and 25 overseas banks for channelizing the remittances of Non-Resident Indians
(NRIs). The Bank has been managing two Exchange Houses viz., Al Razouki International
Exchange Company, Dubai, and Eastern Exchange Est., Qatar under Secondment and
Management Agreement respectively.
Axis Bank
The Bank continued to show a healthy growth in both business and earnings, with a net
profit of Rs,8,223.66 crores for the year ended 31st March 2016, registering a growth of 11.77%
over the net profit of Rs,7,357.82 crores last year. The operating profit of the Bank increased
by 20.31% to Rs,16,103.61 crores from Rs,13,385.44 crores last year. The Bank continued to
focus on the quality of growth and displayed strong growth in key balance sheet parameters
for the year ended 31st March 2016. The total assets increased by 13.75% to Rs,525,468 crores,
total advances increased by 20.52% to Rs,338,774 crores. The total deposits of the Bank
increased by 11.02% to Rs,357,968 crores against Rs,322,442 crores last year. Savings Bank

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deposits increased by 19.82% to Rs,1 05,793 crores, while Current Account deposits increased
by 13.45% to Rs,63,652 crores and together constituted 47% of total deposits as compared to
45% last year. During the financial year 2015-16, the Bank acquired the entire share capital
of Axis Securities Europe Ltd., its step-down subsidiary company, at a consideration of fl
9.02 crores from Axis Capital Ltd., a wholly owned subsidiary of the Bank. Accordingly, Axis
Securities Europe Ltd. became a wholly owned subsidiary company of the Bank, with
the effect from 19th August 2015.
The Bank continued to show a healthy growth in both business and earnings, with a net
profit of Rs,8,223.66 crores for the year ended 31st March 2016, registering a growth of 11.77%
over the net profit of Rs,7,357.82 crores last year. The operating profit of the Bank increased
by 20.31% to Rs,16,103.61 crores from Rs,13,385.44 crores last year. The Bank continued to
focus on the quality of growth and displayed strong growth in key balance sheet parameters
for the year ended 31st March 2016. The total assets increased by 13.75% to Rs,525,468 crores,
total advances increased by 20.52% to Rs,338,774 crores. The total deposits of the Bank
increased by 11.02% to Rs,357,968 crores against Rs,322,442 crores last year. Savings Bank
deposits increased by 19.82% to Rs,1 05,793 crores, while Current Account deposits increased
by 13.45% to Rs,63,652 crores and together constituted 47% of total deposits as compared to
45% last year.
IDFC Bank
IDFC Bank's overall business strategy is to replicate IDFC Limited's success as an NBFC,
through a differentiated and calibrated foray into the banking sector, with a diversified
focus on Commercial and Wholesale Banking, Bharat Banking and Personal and Business
Banking business and an added emphasis on infrastructure financing.
IDBI Bank goes for Commercial and Wholesale Banking which caters to large corporate,
mid-markets & SME clients (commercial banking), Government business, financial
institutions, treasury, cash management, transaction banking and investment banking.
IDFC Bank is the first universal bank in India to adopt a differentiated service strategy for
catering to people in rural and semi-urban locations, through intensive use of technology.
IDBI Bank performed well in FY16 with a Net Profit of RS, 467 crores. In its first six months
of operations, your Bank has successfully and steadily diversified its business mix and added
new revenue streams. It has expanded its reach to serve new customer segments both on
the retail as well as the wholesale side of the business and is thus well positioned to build a
sustainable banking franchise.
Total deposits and borrowings of your Bank stood at RS, 8,219 crores, and RS, 47,914 crores
respectively.The gross advances of your Bank were RS, 49,667 crores and after reducing
provisions of RS, 3,968 crores, your Bank reported net advances of RS, 45,699 crores.

-NIKITA BOBHATE
IndusInd Bank
IndusInd Bank's sustained performance in 2015-16 is reflected in the many accolades it
earned during the year. IDBI Bank moved up six ranks, to 13th place, to become the Top
Riser in BrandZ Top 50 Most Valuable Indian Brands of 2015, as adjudged by WPP and
Millward Brown. IndusInd Bank was bestowed with the Best Bank 2015'' award by Business
India.
During the year, IDBI Bank unveiled new technological initiatives, particularly in the areas
of digital capabilities. In this context, we formed a strategic partnership with PayU India,
apart from launching a host of digital services like ''QuickPay'' - an instant money transfer
The solution, ''Onthego'' social banking that lets you transfer money using social media
''Swiftpay'' - a one stop solution for easy bill payments and made the ''IndusMobile'' app
more consumer-intuitive.
The Bank also launched ''IndusInd For Sports'', its non-banking sports vertical. Under this
venture, we launched ''IndusInd Umang'', a first-of-its-kind platform exclusively designed
for differently-abled sportspersons.The Bank's healthy profitability is a clear indication that
we have run the extra distance to achieve our objectives and cement our place as a
consistent player in the banking industry.As in previous years, expansion continued to be
the focal point of our core business in FY16.
HDFC Bank
The Bank posted total income and a net profit of Rs, 70,973.2 crores and Rs, 12,296.2 crores
respectively for the year ended March 31, 2016, as against Rs, 57,466.3 crore, and Rs, 10,215.9
crores respectively for the year ended March 31, 2015. Appropriations from net profit have
been affected.
During the year under review, 2,16,91,200 equity shares were allotted to the employees of
your Bank in respect of the equity stock options exercised under the Employee Stock Option
Schemes. As on March 31, 2016, the issued, subscribed and paid-up capital of your Bank
stood at Rs, 5,056,373,034 comprising 2,52,81,86,517 equity shares of Rs, 2 each.
HDFC Bank has also contributed as a corporate citizen substantially through its Sustainable
Livelihood Initiative, which skills those at the Bottom of the Pyramid and enables them to
earn a livelihood by providing capital and in the process substituting usurious lending by
the unorganized financial sector. Through its CSR program, your Bank is helping create
sustainable communities. These initiatives helped the larger society bond better with the
Bank. They were also instrumental in establishing your Bank as India's Most Valuable Brand
for the 2nd consecutive year in a study conducted by Millward Brown, a leading global
research agency specializing in media and brand equity research and a part of
communications group WPP.

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Kotak Mahindra Bank
Kotak Mahindra Bank Launched its first E-Lobby at Andheri Metro Station, Mumbai. The
e-lobby offers a host of self-service capabilities such as ATM, Banking Kiosk, Tablets, Surface
Table, etc. which can be used by both customer and non-customers.
HDFC bank Enhanced its suite of products positioned at specific customer segments and
launched two new propositions, MY FAMILY - a savings bank proposition tailored
exclusively for the entire family. The proposition gives the benefit of pooling in balances
across family members & also gives them the benefit of a dedicated relationship manager
for the
family, and, ALPHA - a savings bank proposition linked to investments. The customer gets
the benefit of an NMC waived savings account when they choose an RD (or) MF SIP (or)
NPS along with a term insurance premium of Rs, 300 per month (which offers a cover of
Rs,20 lac) linked to their savings account. The proposition also offers Cash Back on Debit
Card spends & is targeted for the age group of 18-55.
NBFC’S.
NBFC’s are the most supporting source of finance in India today we can see the NBFC’S are
making huge changes in the functioning and delivering higher returns to develop the
economy. The motive of NBFC’S to increase the source of income by lending the small and
microfinance loans to the people of India and make their business flourish from small scale
to large scale. So that the incomes and savings of the people will get boosted by more
earning and they can think of better and better future for their children.
Today in India at present we have many listed NBFC’S which in operation from decades and
progressed in such way that their financial results have benefitted to many families today.
Their Profitability is earned from the reduction of bad loans and high amount of small
interest earned on the money lent. As People are more convenient for taking the small loans
from the microfinance bank in the favor of paying small interest the profit margin and no
of loans listed in such banks are higher today.
The listed NBFC’S of India are.
1. Mahindra and Mahindra microfin.co
2. Manapurum Loans services.
3. Edelweiss Capital
4. LIC holding finance.
5. JM Financial.
6. Tata finance
7. Bajaj holding & Investments.
8. Regular Electricity Corporation.

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FUNDAMENTAL ANALYSIS CALCULATION
In the fundamental analysis of the company, the valuation of the company will be
reflected by profitability and liquidity ratios.
VALUATION PROCESS
Valuation Process is the most important part of the Technical analysis for Equity Research.
This section implies the materialistic valuation of the company based on the present
situation of the company. In This section, we are going to calculate the intrinsic value of all
the banks considering the data available in the recent financial and e-data available.
The intrinsic value consist of many ratios such as,
1. Profitability ratio
2. Liquidity ratio
3. Solvency ratio
4. CRR & SLR
5. Price to earning ratio
6. Price to book ratio.
7. Earnings per share
8. Dividend per share.
9. Dividend Payout ratio
1.Profitability ratio: - Profitability ratio of any firm describes profitability of the firm
based on its past performance. This ratio describe by two most important concept know
as ROE (Return on Equity) & ROA (Return on Asset)
ROA=
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑡𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡
ROA gives the ratio of total net profit from
total asset with the company utilized. As the
bigger is the ratio more profitable the company
is.
ROE=
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
𝑆ℎ𝑎𝑟𝑒 ℎ𝑜𝑙𝑑𝑒𝑟𝑠 𝑓𝑢𝑛𝑑
ROE is the total profit share on the total
equity own by company owners. More the
ratio is more the profit the company is getting
on per unit of equity utilized

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ROA AND ROE RATIOS OF BANK(BANK NIFTY)& NBFC.
SR.NO BANK NAME NET INCOME
AVERAGE TOTAL
ASSET
SHAREHOLDER
FUND ROA
ROE or
ROAE
1 Federal Bank(in 000's) 8,668,600.00 1,049,890,550.00 85,077,400.00 0.8257% 10.1891%
2 ICICI bank(in 000's) 269,877,037.00 6,834,121,985.50 850,824,692.50 3.9490% 31.7195%
3
Bank of Baroda( in
000's) 53,955,373.00 6,931,825,124.50 400,171,664.50 0.7784% 13.4831%
4
state bank of India(in
000's) 99,509,785.00 21535714163.00 1363563312.50 0.4621% 7.2978%
5
Punjab national bank(in
000's) (39,743,960.00) 6,353,620,257.00 386,948,298.50 -0.6255% -10.2711%
6 yes bank(in 000's) 88,747,765.00 1,901,616,647.50 179,203,290.00 4.6670% 49.5235%
7 Canara Bank(in 000's) (28,128,200.00) 5,504,802,800.00 317,312,250.00 -0.5110% -8.8645%
8 Axis Bank(in 000's) 258,471,500.00 4,937,000,000.00 489,207,100.00 5.2354% 52.8348%
9 IDFC(in 000's) (11,621,400.00) 480,697,950.00 132,591,250.00 -2.4176% -8.7648%
10 Indusind Bank(in 000's) 59,504,700.00 1,242,004,550.00 137,843,650.00 4.7910% 43.1683%
11 HDFC(in 000's) 309,240,100.00 6,496,743,200.00 673,435,900.00 4.7599% 45.9198%
12
Kotak Mahindra (in
000's) 88,597,500.00 1,491,359,300.00 190,532,750.00 5.9407% 46.4999%
SR.NO NBFC name
NET
INCOME.(000'S)
Avg. Total
asset(000's)
share holder
fund(000's) ROA ROE
1 M & M FIN.CO 6,726,000.00 373,268,150.00 58,787,600.00 1.80% 11.44%
2
Manapuram
finance 3,039,850.00 116,215,300.00 26,820,900.00 2.62% 11.33%
3 Edelwiss fin.co 2,670,700.00 27,332,600.00 15,359,600.00 9.77% 17.39%
4
LIC Housing
fin.co 15,234,900.00 1,215,214,150.00 84,822,100.00 1.25% 17.96%
5 JM. Finance .co 951,800.00 21,103,050.00 16,491,000.00 4.51% 5.77%
6 TATA capital 194,600.00 22,610,850.00 43,854,100.00 0.86% 0.44%

-NIKITA BOBHATE
7 Bajaj Housing. 10,691,200.00 10,016,900.00 63,804,600.00 106.73% 16.76%
8 Rural finance.co 54,437,650.00 1,947,640,000.00 26,737,395.00 2.80% 203.60%
ROA: - Return on Asset is the total percentage of net income earned by the Banks after the
utilization Assets of the Banks which includes the cash reserve with the Bank and the Bank
asset such as fixed asset and other Assets. If the ROA is positive then it indicated that the
asset utilized in the financial year have shown positive growth and given some profit in the
profit and loss statement of the Bank.
ROE: - Return on equity is the total percentage of net income earned by the banks after
utilizing the shareholder's equity.m This is very important for the investors. If the ratio
indicates positive return then investors will earn a positive growth on the each penny they
have invested. Every investor always has a keen look on this ratio.
2.Liquidity Ratio
Liquidity ratio is the ratio of all the Liquid Asset to the current liability. This ratio indicates
the ability of the banks to pay back all the short term loans with the help of liquid assets
available with the bank. The liquid assets such as cash in hand, Marketable Securities and
cash receivables from vendors. It gives all the investors a flexibility to trust the companies
that if anything happens to Bank, then they are efficient enough to pay back the many
assured on the basis of liquid assets. The liquidity of the Bank is represented by Cash Reserve
ratio(CRR) or Statutory liquidity ratio(SLR) which is mandatory for all the banks to reserve
in liquid asset according to the rules of RBI in India. The CRR proportion asked by RBI to
reserve is up to 4% and the SLR up to 20.5%
Current Ratio represent the proportion of
current assets to the current liability
Current ratio =
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦
Quick Ratio represts the proportion of all the
quickly convertible assets like cash
reserve,marketable securities and recivables
to the current liability.
Quick Ratio=
𝐶𝑎𝑠ℎ 𝑟𝑒𝑠𝑒𝑟𝑣𝑒+𝑀𝑎𝑟𝑘𝑒𝑡𝑎𝑏𝑙𝑒 𝑠𝑒𝑐𝑢𝑟𝑖𝑡𝑦+𝑅𝑒𝑐𝑖𝑣𝑎𝑏𝑙𝑒
𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦
Cashh ratio or acid test Ratio=
𝐶𝑎𝑠ℎ 𝑅𝑒𝑠𝑒𝑟𝑣𝑒 + 𝑚𝑎𝑟𝑘𝑒𝑡𝑎𝑏𝑙𝑒 𝑠𝑒𝑐𝑢𝑟𝑖𝑡𝑦
𝑐𝑢𝑟𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦
Cash ratio or Asid test ratio represents as the most
liquid assets wghich are directly available in cash
with the proportion of current liability

-NIKITA BOBHATE
SR.NO BANK NAME
CURRENT
LIABILITY
CURRENT ASSET
CURRENT ASSET -
RECIVABLES
CASH+ MARKETABLE
SECURITY+RECIVABLES
CURRENT
RATIO
QUICK
RATIO
ACID
TEST
RATIO
1
Federal
Bank(in 000's)
813,482,800.00 857,274,400.00 276,373,000.00 635,099,500.00 105.3832%
33.9740%
78.07%
2
ICICI bank(in
000's)
6,375,952,100.00 7,014,516,900.00 2,172,196,100.00 5,399,451,500.00 110.0152%
34.0686%
84.68%
3
Bank of
Baroda( in
000's)
6,075,095,700.00 6,381,210,500.00 2,548,618,300.00 5,176,705,300.00 105.0388%
41.9519%
85.21%
4
state bank of
India(in 000's)
20,479,273,266.00 27,039,970,236.00
11,329,186,436.00
17,340,500,300.00 132.0358%
55.3203%
84.67%
5
Punjab
national
bank(in 000's)
6,624,673,600.00 6,945,502,400.00 2,750,570,900.00 5,078,248,000.00 104.8429%
41.5201%
76.66%
6
yes bank(in
000's)
1,814,805,300.00 2,018,439,200.00 695,812,400.00 1,518,121,200.00 111.2207%
38.3409%
83.65%
7
Canara
Bank(in 000's)
5,066,648,800.00 5,237,577,800.00 1,990,429,600.00 3,814,484,800.00 103.3736%
39.2849%
75.29%
8
Axis Bank(in
000's)
4,571,939,400.00 4,941,053,600.00 4,907,176,228.00 3,710,991,600.00 108.0735%
107.3325%
81.17%
9 IDFC(in 000's) 5,613,228,800.00 686,945,200.00 229,950,900.00 486,033,400.00 12.2380% 4.0966% 8.66%
10
Indusind
Bank(in 000's)
1,151,562,100.00 1,297,455,200.00 413,261,800.00 985,312,100.00 112.6691%
35.8871%
85.56%
11 HDFC(in 000's) 5,994,426,600.00 6,673,985,700.00 2,028,046,100.00 5,035,128,000.00 111.3365% 33.8322% 84.00%
12
Kotak
Mahindra (in
000's)
1,596,183,600.00 1,808,052,300.00 1,689,387,000.00 1,295,450,100.00 113.2735%
105.8391%
81.16%
SR.NO NBFC name
current
liability current asset
current asset -
recivables
cash + Mark.
Security
current
ratio
quick
ratio
cash
ratio
1 M & M FIN.CO 152,788,600.00 194,194,200.00 194,143,100.00 10,800,400.00 127.10% 127.07% 5.56%
2
Manapuram
finance 79,361,600.00 110,497,800.00 106,710,000.00 4,919,300.00 139.23% 134.46% 4.61%
3 Edelwiss fin.co 8,457,400.00 7,427,500.00 6,494,300.00 215,300.00 87.82% 76.79% 3.32%
4
LIC Housing
fin.co 282,107,200.00 123,478,700.00 122,624,800.00 39,318,200.00 43.77% 43.47% 32.06%
5 JM. Finance .co 81,400.00 499,300.00 498,800.00 129,800.00 613.39% 612.78% 26.02%
6 TATA capital 5,059,100.00 3,451,600.00 3,250,600.00 326,400.00 68.23% 64.25% 10.04%
7 Bajaj Housing. 1,387,900.00 15,227,700.00 15,000,200.00 14,442,100.00 1097.18% 1080.78% 96.28%
8
Rural
finance.co 375,915,000.00 459,900,300.00 451,947,700.00 25,238,100.00 122.34% 120.23% 5.58%

-NIKITA BOBHATE
2. Solvency Ratio :- solvency ratio indicates the capability of the company to pay off the
Loong term debts of the lenders with respect to its Assets and equity holding. This ratio
reflects the efficiency of the banks to pay off the debts. Any lender will always look after the
Banks assets and Equity holding for veracity of flexible and safe investment.
Solvency Ratio is indicated by 1.Debt to equity Ratio 2. Debt to asset Ratio.
SR.NO BANK NAME TOTAL DEBT TOTAL EQUITY TOTAL ASSET
DEBT TO
EQUITY
RATIO
DEBT TO
ASSET
RATIO
1 Federal Bank(in 000's)
833,388,100.00
80,912,200.00 914,300,300.00 1030% 91.1504%
2 ICICI bank(in 000's) 6,718,403,800.00 999,520,700.00 7,717,924,500.00 672% 87.0494%
3 Bank of Baroda( in 000's) 6,545,721,700.00 403,032,500.00 6,948,754,200.00 1624% 94.1999%
4 state bank of India(in 000's) 25,176,802,400.00 1,882,860,600.00 27,059,663,000.00 1337% 93.0418%
5
Punjab national bank(in
000's)
6,784,835,700.00 418,469,800.00 7,203,305,500.00 1621% 94.1906%
6 yes bank(in 000's) 220,540,600.00 1,930,058,600.00 2,150,599,200.00 11% 10.2548%
7 Canara Bank(in 000's) 5,213,575,800.00 316,032,000.00 5,529,607,800.00 1650% 94.2847%
8 Axis Bank(in 000's) 4,723,027,100.00 531,649,100.00 5,254,676,200.00 888% 89.8824%
9 IDFC(in 000's) 603,373,200.00 136,325,500.00 739,698,700.00 443% 81.5701%
10 Indusind Bank(in 000's) 1,223,610,100.00 176,959,800.00 1,400,569,900.00 691% 87.3652%
11 HDFC(in 000's) 6,361,678,100.00 726,777,600.00 7,088,455,700.00 875% 89.7470%
12 Kotak Mahindra (in 000's) 1,682,973,200.00 239,624,700.00 1,922,597,900.00 702% 87.5364%
Debt to Equity Ratio indicates the proportion of
total Debt to shareholder Equity.
Debt to equity =
𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑏𝑡 𝑜𝑓 𝑡ℎ𝑒 𝑐𝑜𝑚𝑝𝑎𝑛𝑦
𝑇𝑜𝑡𝑎𝑙 𝑠ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟 𝐸𝑞𝑢𝑖𝑡𝑦
Debt to Asset ratio indicates the Proportion of
Total Debt to Total Asset.
Debt to Asset =
𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑏𝑡 𝑜𝑓 𝑡ℎ𝑒 𝑐𝑜𝑚𝑝𝑎𝑛𝑛𝑦
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡 𝑜𝑓 𝑡ℎ𝑒 𝑐𝑜𝑚𝑝𝑎𝑛𝑦.

-NIKITA BOBHATE
SR.NO NBFC name TOTAL DEBT TOTAL EQUITY TOTAL ASSET
DEBT TO
EQUITY
DEBT TO
ASSET
1 M & M FIN.CO 334,913,700.00 60,881,100.00 194,143,100.00 550.1111% 172.51%
2
Manapuram
finance 91,740,700.00 27,368,100.00 106,710,000.00 335.2103% 85.97%
3 Edelwiss fin.co 9,760,600.00 16,018,700.00 6,494,300.00 60.9325% 150.29%
4
LIC Housing
fin.co 12,135,119,900.00 91,459,800.00 122,624,800.00 13268.2555% 9896.14%
5
JM. Finance
.co 6,169,200.00 16,550,200.00 498,800.00 37.2757% 1236.81%
6 TATA capital 130,700.00 22,359,700.00 3,250,600.00 0.5845% 4.02%
7 Bajaj Housing. 1,719,900.00 67,980,500.00 15,000,200.00 2.5300% 11.47%
8
Rural
finance.co 1,777,352,100.00 286,177,600.00 451,947,700.00 621.0661% 393.26%
3. CRR and SLR.
Cash Reserve Ratio and Statutory Liquidity Ratio is the main asset of the Banks. According
to the rule of Reserve Bank of India, Every Bank has to reserve the liquid cash as an
emergency fund. As the Banks having the main function based on the deposits and loans
taken by the customers, to secure the image of the bank from the Bad loans, Every Bank
have to preserve some money for the reputation of the Bank.
Cash Reserve ratio is the preserve of the most liquid cash with Bank. So that at any
condition when the bank requires an emergency cash at the situation of illiquidity then the
banks can have a certain proportion of the cash reserve. According to RBI, every Bank has
to preserve 4% of liquid cash.
Statutory Liquidity ratio, this ratio indicates that the Bank should hold the reserve of
assets which can easily liquefy easily.Every Bank has to preserve 20.5 % easily Liquid Asset.
CRR= 4% of liquid Cash. SLR = 20.5% of the easily liquid asset.

-NIKITA BOBHATE
SR.NO NBFC name CRR SLR
1 M & M FIN.CO 1,129,200.00 60,881,100.00
2 Manapuram finance 1,682,400.00 27,368,100.00
3 Edelwiss fin.co 8,140,000.00 16,018,700.00
4 LIC Housing fin.co 1,010,000.00 91,459,800.00
5 JM. Finance .co 6,169,200.00 16,550,200.00
6 TATA capital 130,700.00 22,359,700.00
7 Bajaj Housing. 1,719,900.00 67,980,500.00
8 Rural finance.co 1,777,352,100.00 286,177,600.00
4. Price to Earnings Ratio.
Price to Earnings ratio is the ratio of the price of a share to the earning of
the per share. This ratio indicates the proportion of the share price is X multiple of a
dividend of the share. This Ratio helps the investors that the company offering the price to
earnings ratio is growing firm or income firm. If the price to earnings ratio is high then it
indicates that the firm is at growing stage. And if the ratio is low then the dividend is high
in proportion and the company shares the proportion of the income to the shareholders.
SR.NO BANK NAME CRR(4% OF LIQUID ASSET)
SLR(20.5% OF EASILY LIQUID
ASSET)
1 Federal Bank(in 000's) 16,452,700.00
2 ICICI bank(in 000's) 317,024,100.00 440,106,600.00
3 Bank of Baroda( in 000's) 227,802,100.00 1,276,887,000.00
4 state bank of India(in 000's) 1,279,976,200.00 439,740,300.00
5 Punjab national bank(in 000's) 252,100,000.00 631,216,500.00
6 yes bank(in 000's) 69,520,700.00 125,973,700.00
7 Canara Bank(in 000's) 206,640,500.00 360,696,100.00
8 Axis Bank(in 000's) 223,611,500.00 109,642,900.00
9 IDFC(in 000's) 19,008,400.00 10,030,700.00
10 Indusind Bank(in 000's) 45,210,400.00 55,908,300.00
11 HDFC(in 000's) 3,005,831.00 886,053.00
12 Kotak Mahindra (in 000's) 69,034,300.00 39,762,800.00
Price to earnings Ratio =
𝑃𝑟𝑖𝑐𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑆ℎ𝑎𝑟𝑒
𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝑜𝑓 𝑡ℎ𝑒 𝑠ℎ𝑎𝑟𝑒

-NIKITA BOBHATE
SR.NO NBFC name
PRICE OF THE
SHARE
DIVIDEND %
DIVIDEND IN
Rs.
PRICE TO EARNING
RATIO
RATING
1 M & M FIN.CO 350.15 1.14 3.99 8771.93% 3
2
Manapuram
finance
92.8 1.94 1.8 5154.64% 6
3 Edelwiss fin.co 209.9 0.6 1.26 16666.67% 1
4 LIC Housing fin.co 775.2 0.71 5.5 14084.51% 2
5 JM. Finance .co 126.85 1.14 1.45 8771.93% 4
6 TATA capital 725.2 2.34 16.97 4273.50% 7
7 Bajaj Housing. 2,090.00 1.56 32.6 6410.26% 5
8 Rural finance.co 186.25 9.18 17.1 1089.32% 8
5. Price to Book Ratio: - Price to book Ratio indicated the undervalue and overvalue
margin of the share price. If the share price of the company is rated above the margin then
the investors will get aware and go for short sell. And if the shares are overpriced then they
have the better sense to buy the share at lower price and trade them on higher rate.
SR.NO BANK NAME (in Rs.)
PRICE OF THE
SHARE
DIVIDEND (IN %) DIVIDEND (IN Rs.)
PRICE TO
DIVIDEND
RATIO
RATING
1 Federal Bank 116.90 0.60 1.0060 116.2027833 9
2 ICICI bank 321.80 0.00 1.0000 321.8 3
3 Bank of Baroda 173.65 0.69 1.0069 172.4600258 10
4 state bank of India 288.50 0.90 1.0090 285.9266601 11
5 Punjab National Bank 152.05 0.00 1.0000 152.05 4
6 yes bank 1,486.30 0.00 1.0000 1486.3 1
7 Canara Bank 360.30 0.00 1.0000 360.3 2
8 Axis Bank 513.45 0.97 1.0097 508.5173814 12
9 IDFC 58.70 0.43 1.0043 58.44867072 7
10 Indusind Bank 1,527.20 0.29 1.0029 1522.783927 6
11 HDFC 1,666.90 0.57 1.0057 1657.452521 8
12 Kotak Mahindra 985.15 0.05 1.0005 984.6576712 5
Price to Book =
𝑃𝑟𝑖𝑐𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑠ℎ𝑎𝑟𝑒
𝐵𝑜𝑜𝑘 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑠ℎ𝑎𝑟𝑒

-NIKITA BOBHATE
SR.NO BANK NAME (in Rs.)
PRICE OF THE
SHARE
BOOK VALUE OF
THE SHARE(in rs)
PRICWE TO
BOOK
RATIO(IN %)
RATING
1 Federal Bank 116.9 46.78 249.89% 5
2 ICICI bank 321.8 174.33 184.59% 7
3 Bank of Baroda 173.65 186.4 93.16% 10
4 state bank of India 288.5 227.75 126.67% 9
5 Punjab National Bank 152.05 184.95 82.21% 11
6 yes bank 1,486.30 482.19 308.24% 4
7 Canara Bank 360.3 470.27 76.62% 12
8 Axis Bank 513.45 223.48 229.75% 6
9 IDFC 58.7 43.1 136.19% 8
10 Indusind Bank 1,527.20 289.26 527.97% 3
11 HDFC 1,666.90 289.72 575.35% 1
12 Kotak Mahindra 985.15 175.48 561.40% 2
SR.NO NBFC name
PRICE OF THE
SHARE
BOOK VALUE
OF THE SHARE
PRICE TO bOOK
RATIO
RATING
1 M & M FIN.CO 350.15 122.75 285.25% 4
2 Manappuram finance 92.8 32.76 283.27% 5
3 Edelweiss fin.co 209.9 51.45 407.97% 1
4 LIC Housing fin.co 775.2 221.07 350.66% 2
5 JM. Finance .co 126.85 42.54 298.19% 3
6 TATA capital 725.2 455.99 159.04% 6
7 Bajaj Housing. 2,090.00 1596.37 130.92% 7
8 Rural finance.co 186.25 146.37 127.25% 8

-NIKITA BOBHATE
6. Earnings per share
EPS is the ratio which reflects the total earning of the company to the total share
outstanding of the company. This is the ratio in which it indicates the total earning of the
company is contributed per share.
SR.NO BANK NAME (in Rs.) NET INCOME(in 000's)
TOTAL SHARE
OUTSTANDING(in
000's)
EPS RATING
1 Federal Bank 15,080,200.00 4,434,832.00 3.40 10
2 ICICI bank 269,332,800.00 10,596,610.00 25.42 7
3 Bank of Baroda 13,831,400.00 2,087,480.00 6.63 10
4 state bank of India 104,844,200.00 9,996,606.00 10.49 8
5 Punjab National Bank 13,248,000.00 169,616.00 78.11 2
6 yes bank 88,747,800.00 1,367,286.00 64.91 3
7 Canara Bank (28,128,200.00) 447,396.00 -62.87 12
8 Axis Bank 258,471,500.00 5,456,930.00 47.37 4
9 IDFC 16,605,600.00 4,543,198.00 3.66 9
10 Indusind Bank 5,904,700.00 3,095,130.00 1.91 11
11 HDFC 309,240,100.00 2,564,969.00 120.56 1
12 Kotak Mahindra 88,597,500.00 1,903,028.00 46.56 5
SR.NO NBFC name NET INCOME (in 000's)
TOTAL
OUTSANDING
SHARES
EPS RATING
1 M & M FIN.CO 6,726,000.00 1,612,425.00 4.17 6
2 Manapuram finance 33,372,400.00 2,361,285.00 14.13 4
3 Edelweiss fin.co 1,555,900.00 2,236,273.00 0.70 7
4 LIC Housing fin.co 16,607,900.00 1,776,140.00 9.35 5
5 JM. Finance .co 1,122,500.00 2,228,165.00 0.50 8
6 TATA capital 2,026,100.00 87,281.00 23.21 2
7 Bajaj Housing. 12,705,100.00 147,774.00 85.98 1
8 Rural finance.co 56,276,600.00 2,532,900.00 22.22 3
EPS =
𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑐𝑜𝑚𝑝𝑎𝑛𝑦
𝑡𝑜𝑡𝑎𝑙 𝑠ℎ𝑎𝑟𝑒 𝑜𝑢𝑡𝑠𝑡𝑎𝑛𝑑𝑖𝑛𝑔 𝑤𝑖𝑡ℎ 𝑡ℎ𝑒 𝑐𝑜𝑚𝑝𝑎𝑛𝑦

-NIKITA BOBHATE
7. Dividend Per share.
Dividend per share is the ratio which indicates the investor the earning for holding share
for certain period. Dividend per share is the most important ratio for the income preferred
Equity investors those who are in preference of only equity income.
BANK NAME (in Rs.)
DIVIDENT PAID (in
000's)
TOTAL SHARE
OUTSTANDING(in 000's)
DPS(div. per
share)
RATING
1 Federal Bank 1,203,300.00 4,434,832.00 0.27 7
2 ICICI bank 10,596,610.00 0.00
3 Bank of Baroda 3,327,900.00 2,087,480.00 1.59 4
4 state bank of India 21,085,600.00 9,996,606.00 2.11 3
5 Punjab National Bank 169,616.00 0.00
6 yes bank 1,367,286.00 0.00
7 Canara Bank 447,396.00 0.00
8 Axis Bank 11,914,200.00 5,456,930.00 2.18 2
9 IDFC 850,000.00 4,543,198.00 0.19 8
10 Indusind Bank 2,926,200.00 3,095,130.00 0.95 5
11 HDFC 24,017,800.00 2,564,969.00 9.36 1
12 Kotak Mahindra 918,400.00 1,903,028.00 0.48 6
SR.NO NBFC name DIV. PAID(in 000's)
TOTAL
OUTSANDING
SHARES
DPS(div. Per
share)
RATING
1 M & M FIN.CO 2,275,100.00 1,612,425.00 1.41 5
2 Manapuram finance 1,892,700.00 2,361,285.00 0.80 6
3 Edelweiss fin.co 1,019,300.00 2,236,273.00 0.46 7
4 LIC Housing fin.co 2,775,700.00 1,776,140.00 1.56 4
5 JM. Finance .co 1,144,400.00 2,228,165.00 0.51 8
6 TATA capital 936,600.00 87,281.00 10.73 2
7 Bajaj Housing. 36,177,000.00 147,774.00 244.81 1
8 Rural finance.co 16,885,500.00 2,532,900.00 6.67 3
Dividend per
share=
𝑑𝑖𝑣𝑖𝑑𝑒𝑛𝑑 𝑝𝑎𝑖𝑑 𝑡𝑜 𝐸𝑞𝑢𝑖𝑡𝑦 𝑠ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟
𝑁𝑜 𝑜𝑓 𝑠ℎ𝑎𝑟𝑒 𝑜𝑢𝑡𝑠𝑡𝑎𝑛𝑑𝑖𝑛𝑔

-NIKITA BOBHATE
8. Dividend payout ratio
Dividend payout ratio is the proportion Dividend per share to Earnings Per share.
SR.NO BANK NAME (in Rs.) Earning per share Dividend per share
Dividend
payout
ratio
RATING
1 Federal Bank 3.4 0.27 7.9% 4
2 ICICI bank 25.42 0 0.0%
3 Bank of Baroda 6.63 1.59 24.0% 2
4 state bank of India 10.49 2.11 20.1% 3
5 Punjab National Bank 78.11 0 0.0%
6 yes bank 64.91 0 0.0%
7 Canara Bank -62.87 0 0.0%
8 Axis Bank 47.37 2.18 4.6% 7
9 IDFC 3.66 0.19 5.2% 6
10 Indusind Bank 1.91 0.95 49.7% 1
11 HDFC 120.56 9.36 7.8% 5
12 Kotak Mahindra 46.56 0.48 1.0% 8
SR.NO NBFC name EPS DPS
Div. payout
ratio(DPS/EPS)
RATING
1 M & M FIN.CO 4.17 1.41 0.34 5
2 Manapuram finance 14.13 0.8 0.06 8
3 Edelweiss fin.co 0.7 0.46 0.66 3
4 LIC Housing fin.co 9.35 1.56 0.17 7
5 JM. Finance .co 0.5 0.51 1.02 2
6 TATA capital 23.21 10.73 0.46 4
7 Bajaj Housing. 85.98 244.81 2.85 1
8 Rural finance.co 22.22 6.67 0.30 6
Dividend payout ratio =
𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒
𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝑃𝑒𝑟 𝑠ℎ𝑎𝑟𝑒

-NIKITA BOBHATE
TECHNICAL ANALYSIS OF BANKS AND
NBFC’S

-NIKITA BOBHATE
INTRODUCTION
The goal of technical analysis is to predict the future price of stocks, commodities, futures
and other tradeable securities based on past prices and performance of those securities.
Technical analysts apply the law of supply and demand to understand how the stock market
and other securities exchanges work, identifying trends and profiting from them. The
following steps will help you understand technical analysis and how it is applied to choosing
stocks and other commodities.
1. Understand theories behind technical analysis.
Three of Dow's theories about investments form the underpinnings of technical analysis
and serve to guide the technical analyst's approach to financial markets. Those theories are
described below with an explanation of how technical analysts interpret them.
 Market fluctuations reflect all known information. Technical analysts believe that changes
in the price of a security and how well it trades in the market reflect all the available
information about that security as garnered from all pertinent sources. Price listings are
therefore thought of as fair value. Sudden changes in how a stock trades often precedes
major news about the company that issued the stock. Technical analysts don't concern
themselves with the price-to-earnings ratio, shareholder equity, return on equity or other
factors that fundamental analysts consider.
 Price movements can often be charted and predicted. Technical analysts acknowledge that
there are periods when prices move randomly, but there are also times when they move in
an identifiable trend. Once a trend is identified, it is possible to make money from it, either
by buying low and selling high during an upward trend (bull market) or by selling short
during a downward trend (bear market). By adjusting the length of time the market is being
analyzed, it is possible to spot both short- and long-term trends.
 History repeats itself. People don't change their motivations overnight; traders can be
expected to react the same way to current conditions as they did in the past when those
same conditions occurred. Because people react predictably, technical analysts can use their
knowledge of how other traders reacted in the past to profit each time conditions repeat
themselves. In this respect, technical analysis differs from "efficient market theory," which
ignores the effect that human actions and reactions have on the market.
2. Look for quick results.
Unlike fundamental analysis, which looks at balance sheets and other financial data over
relatively long periods of time, technical analysis focuses on periods no longer than a month
and sometimes as short as a few minutes. It is suited to people who seek to make money
from securities by repeatedly buying and selling them rather than those who invest for the
long term.

-NIKITA BOBHATE
PAST ONE MONTH CLOSING PRICE OF 12 BANKS AND 8 NBFC’S
name/date
Federal
Bank
ICICI
bank
Bank
of
Baroda
state
bank of
India
Punjab
National
Bank
yes bank
Canara
Bank
Axis
Bank
IDFC
Indusind
Bank
HDFC
Kotak
Mahindra
17-May-17 115.35 302.65 193.55 307.5 174.15 1483.4 373.15 501.5 63.35 1436.95 1559.65 959.85
18-May-17 114.8 309.75 191.75 307.65 165.05 1454.65 373.95 502.8 63.4 1425.45 1557.15 951.2
19-May-17 111.1 307.95 187.45 302.95 158.5 1401.15 368.3 492 61.6 1406.6 1557.1 942.85
22-May-17 112.35 307.05 188.75 308 155.2 1430.1 367.6 501.7 60.65 1389.25 1561.25 937.35
23-May-17 110.45 303.85 182.8 294.3 150.95 1405.8 361.7 502.3 59.75 1389.3 1576 941.25
24-May-17 107.85 306.05 182 288.85 149.75 1403.15 357.35 500.6 58.4 1393.95 1569.1 940.25
25-May-17 107.3 306.7 175.75 283.15 147.45 1425.05 353.1 499.3 56.85 1413.6 1566.75 936.1
26-May-17 110.85 317.7 181.5 290.1 150.7 1464.25 358.65 507.45 57.4 1461.6 1617.15 956.5
29-May-17 112.55 321.55 179.45 288.45 150.65 1493.6 360 511.45 58.35 1477.7 1626 965.05
30-May-17 108.75 314.9 173.65 284 145.1 1438.3 350.6 507.25 57.15 1490.7 1631.9 968.55
31-May-17 110.35 321.4 178.5 288.85 146.35 1438.35 355.7 514.4 57.95 1473.85 1629.05 961.95
1-Jun-17 111.45 326.45 178.05 288.3 150.5 1431.35 350.9 514.05 57.55 1480.7 1636.2 966.05
2-Jun-17 116.1 320.1 179 287.45 151.9 1444.6 352.7 509.3 57.85 1485.6 1628.6 962.65
5-Jun-17 114.3 318.15 178.9 287.05 153.05 1481.75 360.05 508.05 58.7 1514.55 1634.25 965.25
6-Jun-17 114.15 319.75 178.6 287.25 153.8 1523.55 362.65 513.65 59.15 1505.25 1635.55 967
7-Jun-17 112.5 318.95 174.45 287.3 149.5 1506.15 358.5 510.2 59.05 1511 1638.95 966.4
8-Jun-17 115 324.7 176.8 290.55 152.35 1493.75 362.7 514.2 59.05 1516.95 1640.8 968.65
9-Jun-17 116.3 320.2 174.85 288.6 151.3 1476.2 359.35 515.75 58.8 1524.1 1644.75 978.85
12-Jun-17 116.85 322.15 173.75 288.55 152.15 1488.8 360.45 513.65 58.7 1526.85 1666.8 985.1
13-Jun-17 114.1 315.75 168.05 284.95 148.4 1483.6 346 507.5 57.95 1505.8 1668.75 976.7
14-Jun-17 114.9 314.85 169.75 283.85 148.75 1493.85 348.7 506.45 57.9 1492.15 1676.7 974.2
15-Jun-17 116.3 319.05 172.8 284.2 152 1449 355.35 509.5 58 1500.1 1671.2 968.05
16-Jun-17 119 316.75 169.6 284 147.45 1446.15 351.95 507.6 57.9 1491 1664.35 962.6
NAME/DATE
M & M
FIN.CO
Manapuram
finance
Edelwiss
fin.co
LIC
Housing
fin.co
JM.
Finance
.co
TATA
capital
Bajaj
Housing.
Rural
finance.co
17-May-17 339.45 94.2 189.85 694.8 118.3 678.8 2237.8 217
18-May-17 333.1 92.7 178.9 690.35 116.95 689.5 2215.85 220.15
19-May-17 318.9 90.7 177.8 675.15 114.9 676.45 2200.4 218.7
22-May-17 315.5 89.65 176 683.5 116.75 674.4 2159.8 216.95
23-May-17 311.55 87.45 176.85 676.25 118.15 668.75 2095.65 212.9
24-May-17 305.1 85.2 173 670.5 113.55 654.4 2049.1 213.4
25-May-17 296.5 86.65 167.4 673.15 115.05 649.8 2034.25 210.75
26-May-17 302.75 88.75 174.65 687.25 117.8 644.6 2068.4 205.25
29-May-17 313 91.05 179.45 704.95 129.8 663.65 2066.55 204.35
30-May-17 325.4 86.95 176.55 703.4 124.95 659.55 2058.8 197.1
31-May-17 332.25 87.15 176.75 711.85 124.35 653.7 2066.1 205.7
1-Jun-17 358.9 89.2 173.15 734.1 122.9 659.9 2060.35 193.25
2-Jun-17 362.5 88.75 176.35 738.75 122.6 662.7 2075.75 189.4
5-Jun-17 388.45 88.9 178.55 732.2 126.15 667.4 2097 189.95
6-Jun-17 373.5 91.8 178.8 738.5 125.6 686.9 2095.4 188.4

-NIKITA BOBHATE
3.Read charts to spot price trends.
Technical analysts look at charts and graphs of security prices to spot the general direction
in which prices are headed, overlooking individual fluctuations. Trends are classified by
type and duration:
 Up trends, characterized by highs and lows that become progressively higher.
 Down trends are seen when successive highs and lows are progressively lower.
 Horizontal trends in which successive highs and lows fail to change much from previous
highs and lows.
 Trend lines are drawn to connect successive highs to each other and successive lows to each
other. This makes spotting trends easy. Such trend lines are often called channel lines.
 Trends are classified as major trends when they last longer than a year, as intermediate
trends when they last at least a month but less than a year, and as near-term trends when
they last less than a month. Intermediate trends are made up of near-term trends, and major
trends are made up of near-term and intermediate trends, which may not go in the same
direction as the larger trend they are part of. (An example of this would be a month-long
downward price correction in a year-long bull market. The bull market is a major trend,
while the price correction is an intermediate trend within it.)
 Technical analysts use four kinds of charts. They use line charts to plot closing stock prices
over a period of time, bar and candlestick charts to show the high and low prices for the
trading period (and gaps between trading periods if there are any), and point and figure
charts to show significant price movements over a period of time.
 Technical analysts have coined certain phrases for patterns that appear on the charts they
analyze. A pattern resembling a head and shoulders indicates that a trend is about to reverse
itself. A pattern resembling a cup and handle indicates that an upward trend will continue
after pausing for a short downward correction. A rounding bottom, or saucer bottom
pattern indicates a long-term bottoming out of a downward trend before an upswing. A
double top or double bottom pattern indicates two failed attempts to exceed a high or low
price, which will be followed by a reversal of the trend. (Similarly, a triple top or bottom
shows three failed attempts that precede a trend reversal.) Other patterns include triangles,
wedges, pennants and flags.
4. Understand the concepts of support and resistance. Support refers to the lowest
price a security reaches before more buyers come in and drive the price up. Resistance
refers to the highest price a security reaches before owners sell their shares and cause the
price to fall again. These levels are not fixed, but fluctuate. On a chart depicting channel
lines, the bottom line is the support line (floor price for the security), while the top line is
7-Jun-17 361.6 91.6 185.55 738.85 125.25 682.8 2095.5 189.8
8-Jun-17 364.5 92.3 196.9 739.2 127.4 682.45 2139.75 187.95
9-Jun-17 361.4 94.5 193.55 742.85 128.5 679.7 2112.9 187.8
12-Jun-17 357.1 94.95 202.6 760.1 127.8 677.2 2118.35 187.85
13-Jun-17 350.15 92.95 198 757.65 125.25 670.95 2128.3 191.55
14-Jun-17 345.3 93.5 202.35 781.2 126.15 706.8 2126.05 188.2
15-Jun-17 350.3 94.55 207.35 773.3 127.85 723.55 2124.15 184.95
16-Jun-17 349.9 92.65 211.05 776.6 126.9 729.25 2102.55 185.8

-NIKITA BOBHATE
the resistance line (ceiling price). Support and resistance levels are used to confirm the
existence of a trend and to identify when the trend reverses itself.
 Because people tend to think in round numbers (10, 20, 25, 50, 100, 500, 1,000, and so on),
support and resistance prices are often given in round numbers.
 It is possible for stock prices to rise above resistance levels or fall below support levels. In
such cases, the resistance level may become a support level for a new, higher resistance
level; or the support level may become a resistance level for a new, lower support level. For
this to happen, the price has to make a strong, sustained change. Such reversals may be
common in the short term.
 Generally, when securities are trading near a support level, technical analysts tend to
avoid buying because of concern for price volatility. They may, however, buy within a few
points of that level. Those who sell short use the support price as their trading point.
LINE CHART OF 12 BANKS AND 8 NBFC’S.
1.FEDERAL BANK
1. Today’s stock price- Rs.120.9
2. The support value – Rs. 109 , The resistance value (converted) –Rs. 107
3. The resistance value – Rs. 116 , The support value (converted) – Rs. 117
4. Pattern followed – The double Bottom Pattern
5. The double Bottom Pattern – Indicates two fail Attempts to achieve low Price.
106
108
110
112
114
116
118
120
15-May-17 20-May-17 25-May-17 30-May-17 4-Jun-17 9-Jun-17 14-Jun-17 19-Jun-17
federal bank
federal bank

-NIKITA BOBHATE
2.ICICI BANK
1. Today’s share price – Rs. 316.50
2. The support value – Rs. 304 , the Resistance value (converted) – Rs. 302
3. The Resistance value – Rs. 315 , The support value – Rs. 320
4. Pattern followed – triple top Pattern
5. Triple top pattern – Indicates three fail attempts to achieve highest price attempt.
300
305
310
315
320
325
330
ICICI BANK
ICICI BANK
165
170
175
180
185
190
195
Bank of Baroda
Bank of Baroda

-NIKITA BOBHATE
3.BANK OF BARODA
1. Today’s share Price –Rs. 168.
2. The support Price –Rs. 175. The Resistance Price (converted) –Rs. 174
3. The Resistance Price – Rs. 190. The support Price (converted) – Rs. 193.
4. Pattern Followed – Triples Bottom Pattern.
5. Triples bottom Pattern – Indicates three fail attempts to achieve the lowest share
price.
4.STATE BANK OF INDIA
1. Today’s share Price – Rs. 284.
2. The support Price – Rs. 284. The Resistance Price (converted) – Rs. 283.
4. Pattern followed - – The double Bottom Pattern
280
285
290
295
300
305
310
State Bank of India
State Bank of India

-NIKITA BOBHATE
5.PUNJAB NATIONAL BANK
3. The Resistance Price – Rs. 175. The support Price (converted) – Rs. 180
4. .Pattern followed – Horizontal.
5. Horizontal Pattern – Indicates that the share price is Tried to maintained at constant
Price.
0
50
100
150
200
Punjab National bank
Punjab National bank
1380
1400
1420
1440
1460
1480
1500
1520
1540
Yes bank
Yes bank

-NIKITA BOBHATE
6.YES BANK
2. The support Price – Rs. 1400. The Resistance Price (converted) –< Rs. 1400.
4. Pattern followed – Double Bottom Pattern.
6. CANARA BANK
4. Pattern followed- Alternate Triple bottom and Double upward.
5. Alternate triple Bottom and double upwards Pattern – Indicates 3 fail attempts to
make price lower and 2 fail attempts to maintain the price upwards.
340
345
350
355
360
365
370
375
380
canara bank
canara bank

-NIKITA BOBHATE
8. AXIS BANK
4. Pattern followed- continuous downward & upward Pattern
5. Continuous Downward & upwards Pattern – Indicates Continuous fail attempts to
settle on one Price.
490
495
500
505
510
515
520
Axis Bank
Axis Bank
56
57
58
59
60
61
62
63
64
IDFC
IDFC

-NIKITA BOBHATE
9. IDFC BANK
2. The support Price – Rs. 57. The Resistance Price (converted) – <Rs. 57.
3. The Resistance Price – Rs. 59. The support Price (converted) – > Rs. 59..
4. Pattern followed- Triple Bottom Pattern.
5. Triples bottom Pattern – Indicates three fail attempts to achieve the lowest share price
10.INDUSIND BANK
4. Pattern followed- Cup and Handle Pattern
5. Cup and Handle Pattern – Indicates the share price dropped contentiously and take
a pattern of growing at a certain pace and then maintaining the price at growing
horizontal scale.
1380
1400
1420
1440
1460
1480
1500
1520
1540
Indusind Bank
Indusind Bank

-NIKITA BOBHATE
11.HDFC BANK
4. Pattern followed- Growing Horizontal.
6. Growing Horizontal Pattern – Indicates that the share price is Tried to maintained at
Growing constant Price.
1540
1560
1580
1600
1620
1640
1660
1680
1700
HDFC bank
HDFC bank
930
940
950
960
970
980
990
Kotak mahindra bank
Kotak mahindra bank

-NIKITA BOBHATE
12.KOTAK MAHINDRA BANK
4. Pattern followed- Cup and Handle Pattern
5. Cup and Handle Pattern – Indicates the share price dropped contentiously and take
a pattern of growing at a certain pace and then maintaining the price at growing
horizontal scale.
 NBFC’S
1.MAHINDRA AND MAHINDRA FIN.CO
4. Pattern followed- Horizontal.
5. Horizontal Pattern – Indicates that the share price is Tried to maintained at constant
Price.
0
20000
40000
60000
80000
100000
120000
140000
160000
M & M FIN.CO

-NIKITA BOBHATE
2. MANAPPURUM FIN.CO
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
Manappurum Fin.co
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
Edelwiss fin.co

-NIKITA BOBHATE
3. EDELWISS FIN.CO
4. Pattern followed- Horizontal.
5. Horizontal Pattern – Indicates that the share price is tried to maintained at constant
Price.
4.LIC HOLDINGS. FIN.CO
4. Pattern followed- Continuous Upward Movement.
5. Continuous Upward Movement Pattern – Indicates that the company tries to
continuously develop in upwards direction
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
LIC HOLDING FIN.CO

-NIKITA BOBHATE
5.JM FIN.CO
2. The support Price – Rs. 114. The Resistance Price (converted) –< Rs. 114.
4. Pattern followed –Growing Double Bottom Pattern.
5. The Growing double Bottom Pattern – Indicates two fail Attempts to achieve low Price
with intention of increasing the price..
0
5000
10000
15000
20000
25000
30000
35000
JM fin.co
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
TATA investment & holding

-NIKITA BOBHATE
6.TATA INVESTMENT AND HOLDING
3. The Resistance Price – Rs. 730. The support Price (converted) –> Rs. 730.
7.BAJAJ HOLDINGS
3. The Resistance Price – Rs. 2140. The support Price (converted) –> Rs. 2140.
0
500
1000
1500
2000
2500
3000
3500
4000
Bajaj holdings

-NIKITA BOBHATE
8.RURAL ELECTRIFICATION CORPORATION
1. Today’s share price – Rs. 187.
2. The support value – Rs. 185 , the Resistance value (converted) – <Rs. 185
3. The Resistance value – Rs. 220 , The support value – >Rs. 220
4. Pattern followed – Double top Pattern
5. Double top pattern – Indicates three fail attempts to achieve highest price attempt.
5.Pay attention to the volume of trades.
How much buying and selling goes on indicates the validity of a trend or whether
it's reversing itself. If the trading volume increases substantially even as the price
rises substantially, the trend is probably valid. If the trading volume increases only
slightly (or even falls) as the price goes up, the trend is probably due to reverse itself.
To give the proper decision regarding the BUY or SELL decision for the company.
The volume of daily trades indicates that the decision to buy the trade is correct or
not or If the trades are not repeating with themselves it suggest that the perception
regarding the BUY or SELL can be insufficient to confirm.
In the following data we have will specify the volumes traded in the last 1 month and
then we will suggest the BUY or SELL DECISION according the Analyst view.
-10000
0
10000
20000
30000
40000
50000
60000
Rural electric corporation

-NIKITA BOBHATE
name/date Federal Bank ICICI bank Bank of Baroda
state bank of
India
Punjab National
Bank
17-May-17 2,125,314.00 14,232,284.00 3,099,829.00 109,109.00 76,746.00
18-May-17 1,984,773.00 7,022,688.00 5,011,443.00 8.00 82,394.00
19-May-17 1,979,058.00 8,550,870.00 2,619,303.00 27.00 61,559.00
22-May-17 2,296,745.00 15,633,752.00 1,497,965.00 6.00 84,779.00
23-May-17 1,980,189.00 10,922,759.00 3,714,712.00 339,663.00 63,143.00
24-May-17 4,927,167.00 17,489,007.00 2,737,879.00 16.00 70,546.00
25-May-17 2,133,886.00 11,220,281.00 2,270,524.00 32.00 45,352.00
26-May-17 1,472,159.00 5,601,172.00 2,259,126.00 239,823.00 37,624.00
29-May-17 917,873.00 7,011,943.00 3,035,769.00 11.00 46,802.00
30-May-17 3,211,956.00 94,158,407.00 2,735,985.00 40.00 62,225.00
31-May-17 5,956,012.00 9,676,792.00 1,961,154.00 133,995.00 39,672.00
1-Jun-17 3,128,453.00 6,115,188.00 3,189,875.00 6.00 37,217.00
2-Jun-17 2,054,670.00 4,931,519.00 1,683,520.00 51.00 27,356.00
5-Jun-17 928,740.00 6,285,074.00 1,544,876.00 3.00 32,123.00
6-Jun-17 1,736,526.00 6,389,543.00 1,618,093.00 120,004.00 37,817.00
7-Jun-17 6,111,555.00 11,773,561.00 1,387,438.00 9.00 29,855.00
8-Jun-17 5,723,555.00 4,033,351.00 2,097,657.00 12.00 23,742.00
9-Jun-17 2,417,469.00 5,906,701.00 4,228,128.00 2.00 33,295.00
12-Jun-17 2,675,972.00 4,819,699.00 843,317.00 112,707.00 36,325.00
13-Jun-17 4,254,381.00 10,418,556.00 3,329,994.00 143.00 43,060.00
14-Jun-17 6,354,920.00 6,973,465.00 2,833,990.00 32.00 55,170.00
15-Jun-17 9,624,602.00 16,608,502.00 4,134,959.00 139,676.00 29,679.00
name/date yes bank Canara Bank Axis Bank Indusind Bank HDFC Kotak Mahindra
17-May-17 158,467.00 33,752.00 95,624.00 28,009.00 13,648.00 50,104.00
18-May-17 146,621.00 35,478.00 72,985.00 57,064.00 15.00 29,591.00
19-May-17 72,112.00 32,524.00 62,027.00 17,789.00 18,458.00 48,056.00
22-May-17 88,929.00 52,057.00 69,512.00 32,510.00 18.00 19,614.00
23-May-17 109,845.00 30,930.00 61,592.00 42,417.00 24,974.00 31,187.00
24-May-17 92,627.00 35,875.00 106,201.00 55,693.00 17,873.00 70,779.00
25-May-17 69,840.00 19,967.00 72,779.00 29,638.00 28.00 58,131.00
26-May-17 70,988.00 16,470.00 62,036.00 28,608.00 34,901.00 28,786.00
29-May-17 77,601.00 19,524.00 81,509.00 34,711.00 60,075.00 20,484.00
30-May-17 116,350.00 34,568.00 127,912.00 28,636.00 1.00 54,651.00
31-May-17 66,654.00 21,886.00 50,261.00 24,057.00 31,085.00 24,843.00
1-Jun-17 106,712.00 30,514.00 69,112.00 21,036.00 10.00 22,351.00
2-Jun-17 103,362.00 23,019.00 57,915.00 20,034.00 48,257.00 29,729.00
5-Jun-17 52,110.00 23,618.00 42,061.00 23,341.00 18.00 31,554.00
6-Jun-17 56,847.00 15,138.00 63,216.00 29,397.00 26,377.00 24,136.00
7-Jun-17 72,829.00 11,631.00 91,962.00 23,554.00 18,717.00 37,128.00
8-Jun-17 64,286.00 13,256.00 49,349.00 39,794.00 21,114.00 37,921.00
9-Jun-17 70,958.00 24,431.00 43,179.00 16,128.00 1.00 20,564.00
12-Jun-17 57,919.00 14,795.00 51,764.00 36,703.00 17,867.00 32,301.00
13-Jun-17 117,843.00 24,882.00 66,054.00 31,402.00 8.00 39,317.00
14-Jun-17 104,067.00 18,288.00 58,545.00 24,145.00 14,700.00 41,153.00
15-Jun-17 90,575.00 12,473.00 56,697.00 46,542.00 4.00 42,407.00

-NIKITA BOBHATE
NBFC’S DATA
NAME/DATE
M & M
FIN.CO
Manapuram
finance
Edelwiss
fin.co
LIC Housing
fin.co
JM.
Finance
.co
TATA
capital
Bajaj
Housing.
Rural
finance.co
17-May-17
20476 14213 24843 36732 2432 857 2442 45029
18-May-17
36297 19831 16224 28903 5190 828 1792 3
19-May-17
26521 15971 13054 37902 5709 674 2377 1
22-May-17
40561 29702 35282 54303 8973 1108 1318 5
23-May-17
29997 16305 25952 34544 5478 1300 907 14
24-May-17
60911 12248 8590 28009 4937 1474 1182 5
25-May-17
16125 1 27042 45815 32986 1231 1219 1
26-May-17
37535 43313 36433 23415 6261 1399 837 50423
29-May-17
68059 14392 20901 35041 5143 701 664 1
30-May-17
146225 10221 44386 75625 7629 1564 1576 1
31-May-17
55540 18601 36469 89775 3622 1168 617 6
1-Jun-17
57116 9435 55259 36368 5326 604 1662 50932
2-Jun-17
49138 11994 27202 72808 4990 3320 448 1
5-Jun-17
24783 19583 43773 43289 5671 1242 944 2
6-Jun-17
74038 14917 61335 37624 15712 983 1980 6
7-Jun-17
31059 14219 19337 30985 7416 1426 929 1
8-Jun-17
45358 40068 76949 62888 21271 517 748 1
9-Jun-17
43194 22694 23413 80192 3018 643 705 1
12-Jun-17
37872 14365 33695 79967 3244 6296 2003 51876
13-Jun-17
48226 14395 50882 54439 9033 8465 646 3
14-Jun-17
44283 13708 35930 28913 7499 4258 1700 1
15-Jun-17 41816 35541 23688 65260 20986 1950 3337 1

-NIKITA BOBHATE
6. Use moving averages to filter out minor price fluctuations.
A moving average is a series of calculated averages measured over successive, equal periods
of time. Moving averages remove unrepresentative highs and lows, making it easier to see
overall trends. Plotting prices against moving averages, or short-term averages against long-
term averages, makes it easier to spot trend reversals. There are several averaging methods
used:
 The simple moving average (SMA) is found by adding together all the closing prices during
the time period and dividing that sum by the number of prices included.
 The linear weighted average takes each price and multiplies it by its position on the chart
before adding the prices together and dividing by the number of prices. Thus, over a five-
day period, the first price would be multiplied by 1, the second by 2, the third by 3, the fourth
by 4 and the fifth by 5.
 An exponential moving average (EMA) is similar to the linear moving average, except that
it weighs only the most recent prices used in computing the average, making it more
responsive to the latest information than a simple moving average.

 SIMPLE MOVING AVERAGE
Banks simple moving average.
name
/date
Feder
al
Bank
ICICI
bank
Bank
of
Barod
a
state
bank
of
India
Punja
b
Natio
nal
Bank
yes
bank
Canar
a
Bank
Axis
Bank
IDFC
Indu
sind
Bank
HDFC
Kotak
Mahi
ndra
17-
May-
17
115.3
5
302.6
5
193.5
5
307.5
174.1
5
1483
.4
373.1
5
501.5 63.35
1436
.95
1559.
65
959.8
5
18-
May-
17
114.8
309.7
5
191.7
5
307.6
5
165.0
5
1454
.65
373.9
5
502.8 63.4
1425
.45
1557.
15
951.2
19-
May-
17
111.1
307.9
5
187.4
5
302.9
5
158.5
1401
.15
368.3 492 61.6
1406
.6
1557.
1
942.8
5
22-
May-
17
112.3
5
307.0
5
188.7
5
308 155.2
1430
.1
367.6 501.7 60.65
1389
.25
1561.
25
937.3
5
23-
May-
17
110.4
5
303.8
5
182.8 294.3
150.9
5
1405
.8
361.7 502.3 59.75
1389
.3
1576
941.2
5
24-
May-
17
107.8
5
306.0
5
182
288.8
5
149.7
5
1403
.15
357.3
5
500.6 58.4
1393
.95
1569.
1
940.2
5

-NIKITA BOBHATE
25-
May-
17
107.3 306.7
175.7
5
283.1
5
147.4
5
1425
.05
353.1 499.3 56.85
1413
.6
1566.
75
936.1
26-
May-
17
110.8
5
317.7 181.5 290.1 150.7
1464
.25
358.6
5
507.4
5
57.4
1461
.6
1617.
15
956.5
29-
May-
17
112.5
5
321.5
5
179.4
5
288.4
5
150.6
5
1493
.6
360
511.4
5
58.35
1477
.7
1626
965.0
5
30-
May-
17
108.7
5
314.9
173.6
5
284 145.1
1438
.3
350.6
507.2
5
57.15
1490
.7
1631.
9
968.5
5
31-
May-
17
110.3
5
321.4 178.5
288.8
5
146.3
5
1438
.35
355.7 514.4 57.95
1473
.85
1629.
05
961.9
5
1-Jun-
17
111.4
5
326.4
5
178.0
5
288.3 150.5
1431
.35
350.9
514.0
5
57.55
1480
.7
1636.
2
966.0
5
2-Jun-
17
116.1 320.1 179
287.4
5
151.9
1444
.6
352.7 509.3 57.85
1485
.6
1628.
6
962.6
5
5-Jun-
17
114.3
318.1
5
178.9
287.0
5
153.0
5
1481
.75
360.0
5
508.0
5
58.7
1514
.55
1634.
25
965.2
5
6-Jun-
17
114.1
5
319.7
5
178.6
287.2
5
153.8
1523
.55
362.6
5
513.6
5
59.15
1505
.25
1635.
55
967
7-Jun-
17
112.5
318.9
5
174.4
5
287.3 149.5
1506
.15
358.5 510.2 59.05 1511
1638.
95
966.4
8-Jun-
17
115 324.7 176.8
290.5
5
152.3
5
1493
.75
362.7 514.2 59.05
1516
.95
1640.
8
968.6
5
9-Jun-
17
116.3 320.2
174.8
5
288.6 151.3
1476
.2
359.3
5
515.7
5
58.8
1524
.1
1644.
75
978.8
5
12-
Jun-
17
116.8
5
322.1
5
173.7
5
288.5
5
152.1
5
1488
.8
360.4
5
513.6
5
58.7
1526
.85
1666.
8
985.1
13-
Jun-
17
114.1
315.7
5
168.0
5
284.9
5
148.4
1483
.6
346 507.5 57.95
1505
.8
1668.
75
976.7
14-
Jun-
17
114.9
314.8
5
169.7
5
283.8
5
148.7
5
1493
.85
348.7
506.4
5
57.9
1492
.15
1676.
7
974.2
15-
Jun-
17
116.3
319.0
5
172.8 284.2 152 1449
355.3
5
509.5 58
1500
.1
1671.
2
968.0
5
16-
Jun-
17
119
316.7
5
169.6 284
147.4
5
1446
.15
351.9
5
507.6 57.9 1491
1664.
35
962.6
SMA
113.
1587
315.
4957
178.
6848
290.
6891
152.
3913
145
8.98
358.
6696
507.
4196
58.9
3261
147
0.13
1619
.913
960.
9739

-NIKITA BOBHATE
NBFC’S SIMPLE MOVING AVERAGE
NAME/DATE
M & M
FIN.CO
Manapuram
finance
Edelwiss
fin.co
LIC
Housing
fin.co
JM.
Finance .co
TATA
capital
Bajaj
Housing.
Rural
finance.co
17-May-17 339.45 94.2 189.85 694.8 118.3 678.8 2237.8 217
18-May-17 333.1 92.7 178.9 690.35 116.95 689.5 2215.85 220.15
19-May-17 318.9 90.7 177.8 675.15 114.9 676.45 2200.4 218.7
22-May-17 315.5 89.65 176 683.5 116.75 674.4 2159.8 216.95
23-May-17 311.55 87.45 176.85 676.25 118.15 668.75 2095.65 212.9
24-May-17 305.1 85.2 173 670.5 113.55 654.4 2049.1 213.4
25-May-17 296.5 86.65 167.4 673.15 115.05 649.8 2034.25 210.75
26-May-17 302.75 88.75 174.65 687.25 117.8 644.6 2068.4 205.25
29-May-17 313 91.05 179.45 704.95 129.8 663.65 2066.55 204.35
30-May-17 325.4 86.95 176.55 703.4 124.95 659.55 2058.8 197.1
31-May-17 332.25 87.15 176.75 711.85 124.35 653.7 2066.1 205.7
1-Jun-17 358.9 89.2 173.15 734.1 122.9 659.9 2060.35 193.25
2-Jun-17 362.5 88.75 176.35 738.75 122.6 662.7 2075.75 189.4
5-Jun-17 388.45 88.9 178.55 732.2 126.15 667.4 2097 189.95
6-Jun-17 373.5 91.8 178.8 738.5 125.6 686.9 2095.4 188.4
7-Jun-17 361.6 91.6 185.55 738.85 125.25 682.8 2095.5 189.8
8-Jun-17 364.5 92.3 196.9 739.2 127.4 682.45 2139.75 187.95
9-Jun-17 361.4 94.5 193.55 742.85 128.5 679.7 2112.9 187.8
12-Jun-17 357.1 94.95 202.6 760.1 127.8 677.2 2118.35 187.85
13-Jun-17 350.15 92.95 198 757.65 125.25 670.95 2128.3 191.55
14-Jun-17 345.3 93.5 202.35 781.2 126.15 706.8 2126.05 188.2
15-Jun-17 350.3 94.55 207.35 773.3 127.85 723.55 2124.15 184.95
16-Jun-17 349.9 92.65 211.05 776.6 126.9 729.25 2102.55 185.8
0
500
1000
1500
2000
1 2 3 4 5 6 7 8 9 10 11 12
simple moving average

-NIKITA BOBHATE
SMA 339.8739 90.7 184.8435 721.063 122.7348 675.7913 2109.946 199.4413
LINEAR MOVING AVERAGE
rating/
name
Feder
al
Bank
ICICI
bank
Bank
of
Barod
a
state
bank
of
India
Punj
ab
Nati
onal
Ban
k
yes
bank
Canar
a
Bank
Axis
Bank
IDFC
Indusi
nd
Bank
HDFC
Kota
k
Mahi
ndra
1 115.
35
302.
65
193.
55
307.
5
174
.15
1483
.4
373.
15
501.
5
63.3
5
1436
.95
1559
.65
959.
85
2 229.
6
619.
5
383.
5
615.
3
330
.1
2909
.3
747.
9
100
5.6
126.
8
2850
.9
3114
.3
190
2.4
3 333.
3
923.
85
562.
35
908.
85
475
.5
4203
.45
1104
.9
147
6
184.
8
4219
.8
4671
.3
282
8.6
4 449.
4
122
8.2 755
123
2
620
.8
5720
.4
1470
.4
200
6.8
242.
6 5557 6245
374
9.4
5 552.
25
151
9.25 914
147
1.5
754
.75 7029
1808
.5
251
1.5
298.
75
6946
.5 7880
470
6.3
6 647.
1
183
6.3 1092
173
3.1
898
.5
8418
.9
2144
.1
300
3.6
350.
4
8363
.7
9414
.6
564
1.5
0
500
1000
1500
2000
2500
1 2 3 4 5 6 7 8
SIMPLE MOVING AVERAGE OF NBFC'S

-NIKITA BOBHATE
7 751.
1
214
6.9
1230
.25
198
2.05
103
2.2
9975
.35
2471
.7
349
5.1
397.
95
9895
.2
1096
7.25
655
2.7
8 886.
8
254
1.6 1452
232
0.8
120
5.6
1171
4
2869
.2
405
9.6
459.
2
1169
2.8
1293
7.2
765
2
9 1012
.95
289
3.95
1615
.05
259
6.05
135
5.9
1344
2.4 3240
460
3.05
525.
15
1329
9.3
1463
4
868
5.5
10 1087
.5
314
9
1736
.5
284
0
145
1
1438
3 3506
507
2.5
571.
5
1490
7
1631
9
968
5.5
11 1213
.85
353
5.4
1963
.5
317
7.35
160
9.9
1582
1.85
3912
.7
565
8.4
637.
45
1621
2.35
1791
9.55
105
81
12 1337
.4
391
7.4
2136
.6
345
9.6
180
6
1717
6.2
4210
.8
616
8.6
690.
6
1776
8.4
1963
4.4
115
93
13 1509
.3
416
1.3 2327
373
6.85
197
4.7
1877
9.8
4585
.1
662
0.9
752.
05
1931
2.8
2117
1.8
125
14
14 1600
.2
445
4.1
2504
.6
401
8.7
214
2.7
2074
4.5
5040
.7
711
2.7
821.
8
2120
3.7
2287
9.5
135
14
15 1712
.25
479
6.25 2679
430
8.75
230
7
2285
3.25
5439
.75
770
4.75
887.
25
2257
8.75
2453
3.25
145
05
16
1800
510
3.2
2791
.2
459
6.8
239
2
2409
8.4 5736
816
3.2
944.
8
2417
6
2622
3.2
154
62
17
1955
551
9.9
3005
.6
493
9.35
259
0
2539
3.75
6165
.9
874
1.4
100
3.85
2578
8.15
2789
3.6
164
67
18 2093
.4
576
3.6
3147
.3
519
4.8
272
3.4
2657
1.6
6468
.3
928
3.5
105
8.4
2743
3.8
2960
5.5
176
19
19 2220
.15
612
0.85
3301
.25
548
2.45
289
0.9
2828
7.2
6848
.55
975
9.35
111
5.3
2901
0.15
3166
9.2
187
17
20
2282
631
5 3361
569
9
296
8
2967
2 6920
101
50
115
9
3011
6
3337
5
195
34
21 2412
.9
661
1.85
3564
.75
596
0.85
312
3.8
3137
0.85
7322
.7
106
35.5
121
5.9
3133
5.15
3521
0.7
204
58

-NIKITA BOBHATE
22 2558
.6
701
9.1
3801
.6
625
2.4
334
4
3187
8
7817
.7
112
09
127
6
3300
2.2
3676
6.4
212
97
23
2737
728
5.25
3900
.8
653
2
339
1.4
3326
1.45
8094
.85
116
74.8
133
1.7
3429
3
3828
0.05
221
40
LMA 1369
.452
381
5.84
2105
.148
345
0.7
180
7
1761
6.87
4273
.865
611
3.8
700.
635
1788
6.94
1969
1.5
115
98
NBFC’S LINEAR MOVING AVERAGE
RATE/N
O
M & M
FIN.CO
Manapura
m finance
Edelwiss
fin.co
LIC
Housing
fin.co
JM.
Finance
.co
TATA
capital
Bajaj
Housing
.
Rural
finance.co
1 339.45 94.2 189.85 694.8 118.3 678.8 2237.8 217
2 666.2 185.4 357.8 1380.7 116.95 1379 4431.7 440.3
3
956.7 272.1 533.4 2025.45 114.9
2029.
4 6601.2 656.1
4
1262 358.6 704 2734 116.75
2697.
6 8639.2 867.8
5
1557.7
5 437.25 884.25 3381.25 118.15
3343.
8 10478 1064.5
6
1830.6 511.2 1038 4023 113.55
3926.
4 12295 1280.4
7
2075.5 606.55 1171.8 4712.05 115.05
4548.
6 14240 1475.25
8
2422 710 1397.2 5498 117.8
5156.
8 16547 1642
9
2817 819.45 1615.05 6344.55 129.8
5972.
9 18599 1839.15
0
5000
10000
15000
20000
25000
1 2 3 4 5 6 7 8 9 10 11 12
LINEAR MOVING AVERAGE

-NIKITA BOBHATE
10
3254 869.5 1765.5 7034 124.95
6595.
5 20588 1971
11
3654.7
5 958.65 1944.25 7830.35 124.35
7190.
7 22727 2262.7
12
4306.8 1070.4 2077.8 8809.2 122.9
7918.
8 24724 2319
13
4712.5 1153.75 2292.55 9603.75 122.6
8615.
1 26985 2462.2
14
5438.3 1244.6 2499.7 10250.8 126.15
9343.
6 29358 2659.3
15 5602.5 1377 2682 11077.5 125.6 10304 31431 2826
16 5785.6 1465.6 2968.8 11821.6 125.25 10925 33528 3036.8
17 6196.5 1569.1 3347.3 12566.4 127.4 11602 36376 3195.15
18 6505.2 1701 3483.9 13371.3 128.5 12235 38032 3380.4
19 6784.9 1804.05 3849.4 14441.9 127.8 12867 40249 3569.15
20 7003 1859 3960 15153 125.25 13419 42566 3831
21 7251.3 1963.5 4249.35 16405.2 126.15 14843 44647 3952.2
22 7706.6 2080.1 4561.7 17012.6 127.85 15918 46731 4068.9
23 8047.7 2130.95 4854.15 17861.8 126.9 16773 48359 4273.4
LMA 4181.6 1097.48
2279.46
7
8871.00
9
122.73
5
8186.
1 25233
2316.94
3
0
5000
10000
15000
20000
25000
30000
1 2 3 4 5 6 7 8
Linear moving average of NBFC'S

-NIKITA BOBHATE
CREDIT RATING OF BANKS (BANK
NIFTY) & NBFC’S

-NIKITA BOBHATE
CREDIT RATING OF BANKS
On the basis of credit rating, we can rate the company as per its capability of paying back
the loans with interest. So it is very important for every company or organization to get
certified rating on its credit paying capability. All the Banks are rated as per their capabilities
of borrowing through several credit instruments by many well-knowing agencies such as
CRISIL, ICRA, CARE, and FITCH(India).
The following Data specifies the bank Nifty Banks and rated as per the credit rating
agencies. After total
ANALYST VIEW
1. FEDERAL BANK
NII increased to Rs. 842.39 Cr in Q4FY17 compared to Rs. 791.39 Cr in Q3FY17. The
value of NII has been increasing throughout the period. GNPA fell to Rs. 1727.05 Cr
this quarter, a fall of Rs. 224.5 Cr ( 11.5% ) compared to Q3FY17 .Compared to Q4FY16,
the GNPA grew by Rs. 59.28 Cr ( 3.55% ) in Q4FY17. The GNPA had been increasing
from Q1FY17 to Q3FY17. The GNPA decreased in Q4FY17. GNPA ratio was at 2.33 this
quarter, while it was 2.77 in Q3FY17.It was 2.84 in Q4FY16. The GNPA ratio had been
decreasing in the period Q2FY17 to Q4FY17. The GNPA ratio increased in Q1FY17.
The NNPA fell by Rs. 8.81 Cr ( 0.93%) as compared to Q4FY16. It fell to Rs. 941.2 Cr
this quarter from Rs. 1102.37 Cr in Q3FY17. The NNPA had been increasing from
Q1FY17 to Q3FY17. The NNPA decreased in Q4FY17. It fell by 30.0 bps to 1.28 in
Q4FY17.As of Q4FY16, the NNPA Ratio was 1.64. The NNPA ratio had been
decreasing in the period Q2FY17 to Q4FY17. The NNPA ratio increased in Q1FY17.
Q4FY17 saw a rise of Rs. 74.31 Cr ( 15.65% ) QoQ thus placing this quarter’s PPOP at
Rs. 549.21 Cr.The year on year rise of the PPOP was Rs. 154.69 Cr, a rise of nearly
39.21%. The Net Profit rose to Rs. 256.59 Cr in Q4FY17 a rise of 24.77% when
compared to the previous quarter. It was Rs. 10.26 Cr in Q4FY16.
Share price – 116 target
Upside report – 7.56 % (124.7696)
Trade Decision – BUY.
Source – HDFC securities.

-NIKITA BOBHATE
2.ICICI BANK
ICICIBC reported Q4 PAT of Rs 20.2 bn (below estimate, but up ~3x YoY on favorable
base). Slippages were high (Rs 112.9 bn) but include Rs 53.8 bn of slippages from ‘a
large cement account’; excluding this, slippages would have been ~Rs 59 bn (lower
than the Rs 70-80 bn runrate). Headline GNPA ratio (as a % of gross advances)
deteriorated ~83 bps QoQ to 8.4%. PCR dropped ~940 bps QoQ to ~38%. ICICIBC
utilized ~Rs 15.3 bn of contingent provisions and ~Rs 15.2 bn of floating provisions
during Q4, else PAT miss of 12% would have been higher. Advances grew 7% YoY
due to a decline in its overseas book. CASA ratio rose to 50.4% (28% YoY growth in
absolute amounts). Management expects lower slippages in FY18, though the pace
of resolutions may slow down as well.
We derive comfort from (a) expected resolution of lumpy assets in steel and infra
sectors, (b) potential gains from monetization of housing finance and other non-
core business and (c) NIM improvement from higher share of domestic retail
business (overseas assets running down). We maintain BUY with rolled-forward TP
of Rs350, implying28% upside from CMP. The stock trades at 1.3/1.1 FY18E/19E
P/ABV (adjusted for cost and value of subsidiaries).
Current share price -316
Target share price – 350
Trade recommendation – BUY
Source – AXIS Bank.
3.BANK OF BARODA
BOB reported PAT of Rs 2.5 bn, weighed down by one-time interest reversals on
SDR/S4A accounts (~Rs 3.6 bn) and higher provisions (up 16% QoQ). NIM too declined 23
bps QoQ to 2.1% given falling LDR (down ~580 bps YoY) and aforementioned interest
reversals. Absolute GNPAs were almost flat (down ~1% QoQ) led by write-offs (Rs 18 bn)
and recoveries/ upgrades (Rs 27 bn). GNPA ratio however optically moved up 5bps QoQ to
11.4% due to 9% YoY de-growth in advances. On the positive front, demonetization-led
growth in CASA (up 43% YoY) helped domestic CASA ratio improve to 40.5% (up 620 bps
QoQ). Focus segments (Home loans, Agri loans etc.) were up 9-15% YoY whereas
consolidation continued in large corporate and SME loans (down 8% YoY) and overseas
book (down 20% YoY). Management stated it will raise AT1 capital in CY17 to augment
capital position

-NIKITA BOBHATE
Management has set in motion several transformational projects including (1) safer lending
in corporate segment, (2) CMS and supply chain financing to build SME book, (3)
centralized underwriting, pre-approved loans, developer onboarding and building sales
infrastructure to boost retail assets and (4) new management on cards for capital market
verticals. These transformations will help improve risk-weighted profitability of the
business, which should translate into uptick in RoE in the medium term. Our TP standsat
Rs 180 (~1.3x FY18E P/ABV, 4% downside form CMP). We downgrade BOB to HOLD, given
the sharp run up in the stock (up 23% in one month)
Target share price – 190.6
Source – Motilal oswal
4.STATE BANK OF INDIA
SBIN’s 4Q operational performance was better than estimates, with strong loan growth
(+9% QoQ), NIM improvement (+6bps), healthy fee growth (+48%) and controlled opex
(4%). Overall net stressed assets (6.9%) further declined ~5% QoQ, with a sharp drop in the
watchlist (85bps) and continued improvement in PCR (66%, +300bps QoQ). SBINs
watchlist remains the lowest vs. ICICIBC at ~4% and AXSB at 2.5%. At a consolidated level
(SBIN + associate banks + BMB), G/NNPAs stood at 9.1/5.2%, with PCR of ~61.5% and
watchlist stood at 1.6% of loans. We continue to like SBIN for its superior PCR, healthy
CRAR (even after the merger, Tier I at 10%), and strong liability franchise and relatively
lower stressed assets. Disinvestments from non-core investments, unlocking value in
subsidiaries and additional provisions (std assets and counter cyclical) provide a cushion to
earnings. Massive clean-up in its associate banks provides additional comfort. The pace of
resolutions is a key monitor able. Maintain BUY with a SOTP of Rs. 348 (1.6x Mar-19E core
ABV of Rs 150 + Rs 24 for associate banks and Rs 83 subs value).
Source – AXIS Direct.

-NIKITA BOBHATE
5.PUNJAB NATIONAL BANK
Punjab National Bank (PNB) has negatively surprised on asset quality front in
4QFY17, with higher fresh slippages of Rs69bn compared to Rs56.6bn in 3QFY17.
Major chunk of these slippages came from the restructured corporate loan, which
led to 48% QoQ rise in provisioning expenses to Rs43.5bn. Post the slippages from
the standard restructured book, it currently stands at 2.8% of loan book vs. 4.5% in
3QFY17 and 4.9% in 4QFY16. However, PNB’s operating profit came in at Rs48.2bn
(+49.4% YoY & 52.9% QoQ to Rs48.2bn), which is much higher than our estimates
due to reversal of excess provisioning on pension related expenses (-Rs5.5bn in
4QFY17 vs. Rs21.1bn in 3QFY17 and Rs10.1bn in 4QFY16). The Bank has clarified that
there is no change in actuarial assumptions for pension provisioning, as the reversal
in the quarter is due to excess provisions made in first three quarters of FY17.
Current headwinds suggest further pressure on PNB’s profitability in the near-term
led by the expected haircut on large stressed corporate loans. Thus, we believe that
the Bank will continue to witness higher credit cost which will keep its earning
profile and return ratio subdued over next 4-6 quarters. Rolling over our estimates
to FY19E, we reiterate our HOLD recommendation on the stock with an upwardly
revised SOTP-based Target Price of Rs 167
Current share price -147.45
Trade recommendation – SELL
Source – Reliance Securities.
7. YES BANK
NII increased to Rs. 1639.7 Cr in Q4FY17 compared to Rs. 1507.5 Cr in Q3FY17. NII
rose by 32.08% ( Rs. 398.26 Cr ) when compared with the same period last year. The
value of NII has been increasing throughout the period. GNPA rose to Rs. 2018.56 Cr
this quarter, a rise of Rs. 1012.71 Cr ( 100.68% ) compared to Q3FY17 .Compared to
Q4FY16, the GNPA increased by Rs. 1269.58 Cr ( 169.51% ) in Q4FY17 . The value of
GNPA has been increasing throughout the period.It showed a spike in Q4FY17.
GNPA ratio was at 1.52 this quarter, while it was 0.85 in Q3FY17 .
It was 0.76 in Q4FY16. The value of GNPA ratio has been increasing throughout the
period. The NNPA increased by Rs. 787.8 Cr ( 276.94%) as compared to Q4FY16. It
rose to Rs. 1072.27 Cr this quarter from Rs. 342.45 Cr in Q3FY17. The value of NNPA
has been increasing throughout the period.It showed a spike in Q4FY17. It increased

-NIKITA BOBHATE
by 52.0 bps to 0.81 in Q4FY17 .As of Q4FY16, the NNPA Ratio was 0.29 . The NNPA
ratio had been neutral in the period Q1FY17 to Q3FY17. The NNPA ratio increased in
Q4FY17. It showed a spike in Q4FY17.
Current share price 1430
Trade recommendation – SELL
Source – HDFC SECURITIES.
8. CANARA BANK
Over the last 4 years Can Fin has reported phenomenal 41.6% CAGR in loan book.
Considering the lower interest rates and the government’s interest subvention scheme, we
believe that the company’s growth momentum would continue and it would record a CAGR
of 26% in loan book over FY2016-19E. Moreover, well capitalized balance sheet, with Capital
Adequacy Ratio (CAR) of 18.76% would support the growth trajectory. The management is
targeting a loan book of `35,000cr by March 2020.
Can Fin’s Loan book comprises of 88% Housing finance, 6% of LAP (50% is to salaried class),
builder loans constitute only 0.16% and the remaining consists of others such as staff, loan
for sites & top up. According to the recent quarter result, it was witnessed that Can Fin was
not much affected due to demonetization, as loans are largely offered to the first time home
buyers in the salaried class and for the projects nearing completion.
Can Fin has reduced its dependence on bank borrowing and increased borrowing from debt
market instruments such as CP & NCD (48% in 3QFY2017 v/s. 5% in FY2014), which resulted
into lower cost of fund (8.32% in 3QFY2017 from 9.70% in FY2013). Further, Can Fin is
focusing on the high yielding Non-housing / Non-Salaried loans in calibrated manner,
which should be margin accretive.
Current share price- 356.75
Target share price – 360 (1.12 % UP)
Source – Angel broking.
9. AXIS BANK
Lower non-WL slippages in Q4FY17, but outlook unchanged: Adjusted for a slippage and
recovery in a WL account (cement exposure, Rs16.6bn), the slippages trended lower in
Q4FY17. Nevertheless, we cannot ignore the balance WL (Rs94.4bn), which is expected to
entirely slip (the slipped & recovered cement exposure is part of WL) apart from non-WL
slippages. Aggregated, we continue to believe slippages could be placed at Rs135bn in FY18E.
Balance sheet revised, minor upside to earnings: The balance sheet estimates have been

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