The document provides an equity research report on State Bank of India (SBI). It includes a SWOT analysis of SBI highlighting its strengths as the largest bank in India, weaknesses in technology compared to private banks, opportunities from planned mergers and threats from increased competition. A beta analysis shows SBI's stock price moves in line with the market. Horizontal financial analysis over 4 years shows declining performance in 2010-2011 but a rebound in 2012 with increased profits and lower expenses.
Fundamental report of oriental bank of commerce by epic researchAditi Gupta
Oriental Bank of Commerce (OBC) is one of the oldest and most trusted public sector bank. It
operates through 4,917 branches across the country reaching every geographical location.
During the FY6, the Paid–up capital of the bank increased by Rs.21.55 crore.
A STUDY ON FUNDAMENTAL ANALYSIS OF BANKING SECTOR (WITH SPECIAL REFERENCE TO ...IAEME Publication
The study consist of fundamental analysis so it focuses on the overall state of the economy, and considers factors including interest rates, production, earnings, employment, GDP, housing, manufacturing and management. When analyzing a stock, futures contract, or currency using fundamental analysis there are two basic approaches one can use: bottom up analysis and top down analysis. So the researcher gives the problem as A study on fundamental analysis of banking sector with special reference to public sector banks. The main objective is to study the fundamental analysis of three banks which Punjab National Bank (PNB), Bank of Baroda (BOB) and State Bank of India (SBI).
The Bombay Stock Exchange is an Indian stock exchange located at Dalal Street, Mumbai. Established in 1875, the BSE is Asia’s first stock exchange. More than 5000 Companies are registered under this exchange.
Total M. Cap of the company is around 4K Cr. SBI Ltd, LIC Ltd & Small Cap World Fund Inc, Bajaj Holdings & Investment Ltd are the strategic investors. CMP as on 23/03/2018 is 738.
Fundamental report of oriental bank of commerce by epic researchAditi Gupta
Oriental Bank of Commerce (OBC) is one of the oldest and most trusted public sector bank. It
operates through 4,917 branches across the country reaching every geographical location.
During the FY6, the Paid–up capital of the bank increased by Rs.21.55 crore.
A STUDY ON FUNDAMENTAL ANALYSIS OF BANKING SECTOR (WITH SPECIAL REFERENCE TO ...IAEME Publication
The study consist of fundamental analysis so it focuses on the overall state of the economy, and considers factors including interest rates, production, earnings, employment, GDP, housing, manufacturing and management. When analyzing a stock, futures contract, or currency using fundamental analysis there are two basic approaches one can use: bottom up analysis and top down analysis. So the researcher gives the problem as A study on fundamental analysis of banking sector with special reference to public sector banks. The main objective is to study the fundamental analysis of three banks which Punjab National Bank (PNB), Bank of Baroda (BOB) and State Bank of India (SBI).
The Bombay Stock Exchange is an Indian stock exchange located at Dalal Street, Mumbai. Established in 1875, the BSE is Asia’s first stock exchange. More than 5000 Companies are registered under this exchange.
Total M. Cap of the company is around 4K Cr. SBI Ltd, LIC Ltd & Small Cap World Fund Inc, Bajaj Holdings & Investment Ltd are the strategic investors. CMP as on 23/03/2018 is 738.
Financial Performance Analysis of Selected Private Sector Banks in IndiaDr. Amarjeet Singh
The performance of the banking system has been
widely recognized as an important element for economic
growth and for enhancing the economic and financial system
buoyancy in facing financial crisis. In fact, such a vital role in
the economy has made banks to be considered as one of the
most strained kinds of businesses in the globe as they are
subject to close scrutiny since banks will otherwise be
counterproductive and severely damage the economy of a
country. Efficient and profitable banks maximize
shareholders’ value and encourage the shareholders to make
additional investments. As a result of which, more
employment opportunities will be created and more goods
and service will be produced and ultimately bring about
economic growth in which private and public sector banking
institutions play equal role. The present study analyses the
financial performance of selected private banks in India with
the help of correlation analysis by considering return on total
assets as the independent variable.
#ChoiceBroking - State Bank of India (SBI), founded in 1806, is the oldest and largest commercial bank in India engaged in providing a range of banking and financial services.
Performance Analysis of mode-wise investment of the Union Bank Limited, D.T R...Abir Abir
In this report, I have tried to show a performance analysis of investment modes of Union Bank Ltd, D.T Road Edgah Branch. For progress in the future, they can have a glance in this report and find good ways to achieve their goal in a competitive environment. It was difficult for me to find the drawbacks of any branch in 3 months but I have tried my best to give something for my observation. I have tried to give a bird’s eye view of Union Bank Limited throughout the report and gave some recommendation to improve their current conditions. I took face to face interview with corporate clients and general customers of Union Bank Limited to have a good idea of the bank. The bank has to take necessary steps to innovate and develop their banking system to be more comparative in the market because if they do not they will lack behind from the market. So, finally, I want to say that this is the best experience of my life to work in an organization with a good supervisor. I have learned a lot of things from this involvement with this bank. This practical experience will help me a lot in the future when I will be a fixed employee in an organization.
Punjab National Bank Ratio Analysis and company AnalysisPraveen Reddy
Company review session on Punjab National Bank for Ratio Analysis on the company.This will be helpful to analyse the financials of the company and gibes benefits as learning in ratio analysis
China bond inclusion in Citi bond indiciesNan BAI,CFA
Citi just announced the inclusion of Chinese bond in three of its indices: the Emerging Markets Government Bond Index (EMGBI), Asian Government Bond Index (AGBI), and the Asia Pacific Government Bond Index (APGBI).
A Study on the Financial Performance Evaluation of Punjab National Bankinventionjournals
Banks play an important role in the economic development of a country. They are the lifeblood of modern commerce and have control over a large part of money supply. A bank is a financial intermediary that accepts deposits and channels them into lending activities. It plays a vital role in the marketing of new type of deposits and advances schemes. The operational efficiency, service quality and managerial effectiveness are the main areas to observe the performance of a bank. The financial performance of a bank can be measured as the achievement of the bank in terms of profitability position, service quality, customer satisfaction and other relevant aspects. The profitability of a bank denotes the efficiency with which a bank deploys its total resources to optimize its net profits and thus serve as an index to the degree of asset utilization and managerial effectiveness. At present, the Indian banking system faces a number of difficult challenges. In such a scenario, the present study is an attempt to measure the financial performance of the second largest public sector bank of India i.e. Punjab National Bank. This study is entirely based on secondary data and different ratios have been applied to evaluate the financial performance of the bank along with regression analysis with the help of SPSS 20.0. The study concluded that the selected bank has performed well on the sources of growth rate and financial efficiency but profitability position has been found poor during the study period.
HDFC Bank Financial Analysis & Industry Comparison 2017Harsh Bohra
Content of this presentation includes Indian Banking Industry Structure, Bank classification in India, Growth of Public & Private Sector Banks in India, Bank Credit & Systemic Credit, Financial Analysis including CASA Ratio, Gross and Net NPA's, ATMs and Branches penetration comparison of HDFC Bank with State Bank of India, Bank of Baroda, ICICI Bank, AXIS Bank and Canara Bank, Deposits & Advances, Interest Incomes & Expanded, Business Model of HDFC Bank, Merger & Acquisition and Revenue Stream and Expansion Plans.
0601012 fundamental aanalysis on icici bankSupa Buoy
Hi Friends
This is supa bouy
I am a mentor, Friend for all Management Aspirants, Any query related to anything in Management, Do write me @ supabuoy@gmail.com.
I will try to assist the best way I can.
Cheers to lyf…!!!
Supa Bouy
Financial Performance Analysis of Selected Private Sector Banks in IndiaDr. Amarjeet Singh
The performance of the banking system has been
widely recognized as an important element for economic
growth and for enhancing the economic and financial system
buoyancy in facing financial crisis. In fact, such a vital role in
the economy has made banks to be considered as one of the
most strained kinds of businesses in the globe as they are
subject to close scrutiny since banks will otherwise be
counterproductive and severely damage the economy of a
country. Efficient and profitable banks maximize
shareholders’ value and encourage the shareholders to make
additional investments. As a result of which, more
employment opportunities will be created and more goods
and service will be produced and ultimately bring about
economic growth in which private and public sector banking
institutions play equal role. The present study analyses the
financial performance of selected private banks in India with
the help of correlation analysis by considering return on total
assets as the independent variable.
#ChoiceBroking - State Bank of India (SBI), founded in 1806, is the oldest and largest commercial bank in India engaged in providing a range of banking and financial services.
Performance Analysis of mode-wise investment of the Union Bank Limited, D.T R...Abir Abir
In this report, I have tried to show a performance analysis of investment modes of Union Bank Ltd, D.T Road Edgah Branch. For progress in the future, they can have a glance in this report and find good ways to achieve their goal in a competitive environment. It was difficult for me to find the drawbacks of any branch in 3 months but I have tried my best to give something for my observation. I have tried to give a bird’s eye view of Union Bank Limited throughout the report and gave some recommendation to improve their current conditions. I took face to face interview with corporate clients and general customers of Union Bank Limited to have a good idea of the bank. The bank has to take necessary steps to innovate and develop their banking system to be more comparative in the market because if they do not they will lack behind from the market. So, finally, I want to say that this is the best experience of my life to work in an organization with a good supervisor. I have learned a lot of things from this involvement with this bank. This practical experience will help me a lot in the future when I will be a fixed employee in an organization.
Punjab National Bank Ratio Analysis and company AnalysisPraveen Reddy
Company review session on Punjab National Bank for Ratio Analysis on the company.This will be helpful to analyse the financials of the company and gibes benefits as learning in ratio analysis
China bond inclusion in Citi bond indiciesNan BAI,CFA
Citi just announced the inclusion of Chinese bond in three of its indices: the Emerging Markets Government Bond Index (EMGBI), Asian Government Bond Index (AGBI), and the Asia Pacific Government Bond Index (APGBI).
A Study on the Financial Performance Evaluation of Punjab National Bankinventionjournals
Banks play an important role in the economic development of a country. They are the lifeblood of modern commerce and have control over a large part of money supply. A bank is a financial intermediary that accepts deposits and channels them into lending activities. It plays a vital role in the marketing of new type of deposits and advances schemes. The operational efficiency, service quality and managerial effectiveness are the main areas to observe the performance of a bank. The financial performance of a bank can be measured as the achievement of the bank in terms of profitability position, service quality, customer satisfaction and other relevant aspects. The profitability of a bank denotes the efficiency with which a bank deploys its total resources to optimize its net profits and thus serve as an index to the degree of asset utilization and managerial effectiveness. At present, the Indian banking system faces a number of difficult challenges. In such a scenario, the present study is an attempt to measure the financial performance of the second largest public sector bank of India i.e. Punjab National Bank. This study is entirely based on secondary data and different ratios have been applied to evaluate the financial performance of the bank along with regression analysis with the help of SPSS 20.0. The study concluded that the selected bank has performed well on the sources of growth rate and financial efficiency but profitability position has been found poor during the study period.
HDFC Bank Financial Analysis & Industry Comparison 2017Harsh Bohra
Content of this presentation includes Indian Banking Industry Structure, Bank classification in India, Growth of Public & Private Sector Banks in India, Bank Credit & Systemic Credit, Financial Analysis including CASA Ratio, Gross and Net NPA's, ATMs and Branches penetration comparison of HDFC Bank with State Bank of India, Bank of Baroda, ICICI Bank, AXIS Bank and Canara Bank, Deposits & Advances, Interest Incomes & Expanded, Business Model of HDFC Bank, Merger & Acquisition and Revenue Stream and Expansion Plans.
0601012 fundamental aanalysis on icici bankSupa Buoy
Hi Friends
This is supa bouy
I am a mentor, Friend for all Management Aspirants, Any query related to anything in Management, Do write me @ supabuoy@gmail.com.
I will try to assist the best way I can.
Cheers to lyf…!!!
Supa Bouy
Detailed economic, industrial and company analysis is conducted here to measure performance of banking industry with special reference to public sector banks by Fundamental Analysis.
Area, Production and Productivity of different crops in Hisar (2018-2019)
Area under different kharif crops according to irrigation source in Hisar (2018-2019)
Percentage distribution of principal crops : 2017-18 (p)
F consumption in tonn(18-19)
Pesticide consumption in tonn
umber of tractors(2018-19)
GROWTH OF INCOME AND EXPENDITURE ANALYSIS FOR DCCB IN THE DELTA REGIONIAEME Publication
The co-operative movement is a socio-economic movement, and a co-operative society is managed by its members with democratic principles. Co-operation can be understood, and the same may be explained as a society of the members, for the members and by the members. Thus, a co-operative society is formed, regulated and directed by an association of its members, applying the rules of democracy to serve both its members and the community as a whole. This paper has mainly focused on the Thanjavur District, which covers the majority of the delta region in Tamil Nadu. In this district, two DCCBs are selected, namely, Kumbakonam Central Co-operative Bank (KCCB) and Thanjavur Central Co-operative Bank (TCCB), for the study. This research paper is exclusively made from the growth trend of income and expenditure analysis of both KCCB and TCCB. Finally, some common observations are made from the analysis of the DCCBs.
Finance(research and understanding & applying analysis on ratios of Axis and ...ManjuYadav65
Here had to apply knowledge of statistics and analysis for understanding ratios of the Axis and Icici bank and understanding the trend and their growth and also the effect of banking industry and government influence on the happenings on banking sector especially private banks and their customer retention and the market affecting them.
The project presentation talks about public and private banks. It compares the two sectors by analyzing the financial details and the products and services provided by each of the two sectors. This is done by taking case study of two banks - State Bank of India in public sector and ICICI bank in private sector. Both of these banks are leading in their respective sectors.
1. Equity Research Report
Report on- State Bank of India(SBI)
Submitted by :-
Name PG roll no.
Aditya Gupta
Jyoti Khurana
Kritika Verma
Mohit Malik
Ravinder
Surbhi Aggarwal
2. THE BANKING SECTOR
The first bank in India, called The General Bank of India was established in the year 1786. The
East India Company established The Bank of Bengal/Calcutta (1809), Bank of Bombay (1840)
and Bank of Madras (1843).
The Banking industry plays a dynamic role in the economic development of a country. The
growth story of an economy depends on the robustness of its banking industry. Banks act as the
store as well as the power house of the country’s wealth. They accept deposits from individuals
and corporates and lends to the businesses. They use the deposits collected for productive
purposes which help in the capital formation in the country.
Today, the Indian Banking System is known the world over for its robustness. The Reserve Bank
of India is the central/apex Bank which regulates the functioning of all banks operating within
the country.
The banking system, largely, comprises of scheduled banks (banks that are listed under the
Second Schedule of the RBI Act, 1934). Unscheduled banks form a very small component
(function in the form of Local Area Bank).
BANKING STRUCTURE IN INDIA
4. STATE BANK OF INDIA (SBI)
State Bank of India (SBI) is the largest commercial bank in India in terms of assets, profits,
deposits, number of branches and employees. The slogans of SBI are “With you all the way” and
“Pure banking nothing else.” State Bank of India was founded on 1806 at Calcutta as Bank of
Calcutta. The bank has a network of 17000 branches including 4607 branches of its six associate
banks dominates the banking industry in India. The bank has almost 21000 ATMs and a total
workforce of 221000. Also the bank has more than 82 offices in overseas which are spread
across more than 32 countries. The bank became the banker to all class of people and it has
Indian’s cultural and ethical values.
SWOT ANALYSIS
Strengths
SBI is the largest bank in India in terms of market share, revenue and assets.
As per recent data the bank has more than 13,000 outlets and 25,000 ATM centres
The bank has its presence in 32 countries engaging currency trade all over the world
The bank has a merged with State Bank of Saurashtra, State bank of Indore and the bank is
planning to go further acquisition in the current FY2012.
SBI has the first mover advantage in commercial banking service
SBI has recently changed its vision and mission statements showing a sign of inclination towards
new age banking services
Weakness
Lack of proper technology driven services when compared to private banks
Employees show reluctance to solve issues quickly due to higher job security and customers’
waiting period is long when compared to private banks
The banks spends a huge amount on its rented buildings
SBI has the largest number of employees in banking sector, hence the bank spends a
considerable amount of its income in employee’s salary compensation
In spite of modernization, the bank still carries the perception of traditional bank to new age
customers
5. SBI fails to attract salary accounts of corporate and many government sector employees salary
accounts are also shifted to private bank for ease of operations unlike before
Opportunities
SBI’s merger with five more banks namely State Bank of Hyderebad, State bank of Patiala, State
bank of Bikaner and Jaipur, State of bank of Travancore and State bank of Mysore are in
approval stage
Mergers will result in expansion of market share to defend its number one position
SBI is planning to expand and invest in international operations due to good inflow of money
from Asian Market
Since the bank is yet to modernize few of its banking operations, there is a better scope of using
advanced technologies and software to improve customer relations
Young and talented pool of graduates and B schools are in rise to open new horizon to so called
“old government bank”
Threats
Net profit of the year has decline from 9166.05 in the year FY 2010 to 7,370.35 in the year
FY2011
This shows the reduce in market share to its close competitor ICICI
Other private banks like HDFC, AXIS bank etc
FDIs allowed in banking sector is increased to 49% , this is a major threat to SBI as people tend
to switch to foreign banks for better facilities and technologies in banking service
Other government banks like PNB, Andhra, Allahabad bank and Indian bank are showing
Customer prefer to switch to private banks and financial service providers for loans and
mortgages, as SBI involves stringent verification procedures and take long time for processing.
6. Beta Analysis
Beta of a stock is often defined as the sensitivity of a stock with respect to the market. In other
words the beta of a stock is 1.5 with respect to the market or index means each 1% raise or fall
in the index the stock will raise or fall by 1.5 %.
We took the past three month data for the stock prices of State Bank of India-SBIN and the NSE-
National stock exchange to calculate the beta for this stock. From the data we calculated the
everyday return on the stock as well as the market prices.
To calculate beta the following formula is to be applied:-
Beta(SBIN)= Covariance(SBIN;NSE) / Variance(NSE),where SBIN and NSE indicate the data
of the returns on SBIN and NSE.
From the data we calculated the following :-
1) Covariance(SBIN;NSE) = 3.56187E-05
2) Variance(NSE) = 3.15857E-05
3) Beta(SBIN) = 1.127 approx
The beta indicates that the stock price of SBIN is directly related to the market price of NSE with
a sensitivity level of 1.127
Moreover to calculate the expected rate of return we need to substitute values in the following
equation:-
E(R)= R(f)+Beta(R(m)-R(f))
R(F)=risk free rate of return= 5%
R(m)= market risk= 9.2906E-05
This gives E(R)= 0.0064891
7. Financial Analysis
Horizontal Analysis
We collected the past four year’s financial data for State Bank of India including the Balance
Sheet, the Cash flow and the Annual Result data and with the horizontal analysis found the
following major findings :-
Description 2009 2010 2011 2012
Growth in Sales Turnover 30.313% 11.296% 14.650% 30.871%
Growth in Total Expenses 26.877% 27.499% 35.136% -21.942%
Growth in Gross Profit 34.762% 7.273% 4.202% 48.544%
Growth in Net Profit 35.549% 0.491% -9.836% 41.657%
Growth in Earning per Share 34.825% 0.487% -9.850% 34.045%
Total Assets 33.666% 9.226% 16.169% 9.135%
Investments 45.621% 3.564% 3.433% 5.615%
Advances 30.169% 16.481% 19.750% 14.650%
Total Liabilities 33.666% 9.226% 16.169% 9.135%
Total Debt 35.078% 13.991% 16.136% 11.120%
Net Worth 18.182% 13.808% -1.460% 29.183%
From the above table we found out that for financial years 2010 and 2011 the company’s
performance had been dipping down leading to a -9% net profit in 2011. But in the financial year
2012 there was a significant rise in the sales and profits and a decrease in the total expenses. The
main cause of this rise was an increase in demand for loans and in the net interest margin for SBI
of 3.89%.
It is also expected that there will be a significant rise of about 16-18% in the demand for loans in
the financial year 2013 hence leading to an expected positive growth in the following year
leading to higher sales and revenue hence higher profits.
We can also analyze that the growth in total debt has also significantly gone down since 2009.