project on banking securities and investment plan

1. FUNDAMENTIAL &
TECHNICAL ANALYSIS OF
BANKING SECTOR
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2. INTRODUCTION
The efficient, dynamic and effective banking sector plays a
very important role in accelerating the rate of economic
growth in any economy. The Government of India
introduced economic and financial sector reforms in
1991 and banking sector reforms were part and parcel of
financial sector reforms. These were initiated in 1991 to
make Indian banking sector more efficient, strong and
dynamic.
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3. Purpose & Scope
• The main purpose of the banking sector analysis is to
examine a risk and return characteristics of public sector
banks and private sector banks securities. The main aim
is to know which bank sector is worthwhile to invest.
• The scope of this project is to forecast of the share price
in the future and estimating the intrinsic value of banks
security based on forecast of earnings or dividends. It
helps in guiding investor the appropriate portfolio for
investment and whether the shares should be
purchased, held or sold.
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4. Objectives of Project
• To perform Banking Sector Analysis by using
fundamental analysis (EIC framework).
• To evaluate 3 public sector banks and 3 private sector
banks.
• To do the Comparative study of private sector and public
sector Banks.
• To find and compare the customer satisfaction of public
and private sector banks.
• To study the financial services offered by IIFL.
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5. Methodology
Primary Source & Secondary Source :-
Primary sources is original data, problem or project
specified data which is collected to serve a particular
purpose. In these, the authenticity or relevance is really
high. Types of primary source data is: - Questionnaire,
Interview, Oberservations, focus group discussions.
– Electronic published reports: - Crisis, IIFL research
reports etc.
– Books :- Security Analysis and Portfolio Management
– S.Kelvin
– Newspaper:- Economic Times , Times of India.
– Government Reports:- Economic survey (2011-12).
– Banks Annual Report
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6. DATA ANALYSIS
Customer Preference:-
Market share of public sector bank is around 70-65% , in
which the major portion is of SBI group then Punjab
National Bank , Bank of Baroda , Bank of India . While
the market share of private sector banks is 16% , ICICI is
largest private sector bank followed by HDFC , AXIS
,KOTAK Bank . Many customer wants to have accounts
in both public and private banks . The reason for this can
be they have good offer in private banks and charges is
nominal in public banks. Private banks provides many
offers like Axis bank offer special women account,
women will be not changed for demand drafts, interest
rate is high , shopping benefits etc. attracts customers to
have two or more accounts.
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7. Major players in industry:-
• Public sector banks – SBI, PNB, Bank of Baroda,
Bank of India etc.
• Private sector banks- HDFC, ICICI Bank, AXIS
Bank, Yes Bank etc.
• Foreign Banks – Standard Chartered Bank, HSBC,
City Bank etc.
• Regional Rural Banks – Andhra Pradesh gramin
bank , Uttranchal Gramin Bank etc.
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8. DATA ANALYSIS
Customer Preference:-
Market share of public sector bank is around 70-65% , in
which the major portion is of SBI group then Punjab
National Bank , Bank of Baroda , Bank of India . While
the market share of private sector banks is 16% , ICICI is
largest private sector bank followed by HDFC , AXIS
,KOTAK Bank . Many customer wants to have accounts
in both public and private banks . The reason for this can
be they have good offer in private banks and charges is
nominal in public banks. Private banks provides many
offers like Axis bank offer special women account,
women will be not changed for demand drafts, interest
rate is high , shopping benefits etc. attracts customers to
have two or more accounts.
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17. CAMELS RATIO
• Capital adequacy
• Asset quality
• Management quality
• Earning ability
• Liquidity
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18. References
• 2013.Indian banking Industry-January 2013.Dinodia
Capital Advisors.
• IM Pandey: Financial Management 10th edition :
Vikas publications.
• Katuri Nageshwar Rao :Indian Banking : Icfai
publications
• Banking researchemerging Banks in India :ICFAI
research team
http://rbidocs.rbi.org.in/rdocs/Publications/PDFs/0TP
B021112FLS.pdf : RBI
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19. • Trishar Boruah (2013) Switching to Direct Plan.
[Online]. Available from:
http://www.valueresearchonline.com/story/h2_storyvi
ew.asp?str=22834 [Accessed 1st May 2013]
• S.Kelvin : Security Analysis and Portfolio
Management
• Research Reports. India infoline (online).Available
from http://www.indiainfoline.com/Research/
• Company Annual statement :money control(online)
Available from http://www.moneycontrol.com/
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