Fundamental analysis of banking industry

FUNDAMENTAL ANALYSIS OF
BANKING INDUSTRY
Special reference to public sector Banks

Darun v
darunvd@gmail.com

FUNDAMENTAL ANALYSIS OF BANKING INDUSTRY
(With Special reference to Public Sector Banks)

A PROJECT REPORT
SUBMITTED BY
DARUN V
Reg.No:12351034
Submitted to Pondicherry University in partial fulfillment of the requirements for the award of the
Post Graduate degree in Master of Commerce (Business Finance)
Under the guidance of
Dr.D. LAZAR
ASSOCIATE PROFESSOR

DEPARTMENT OF COMMERCE
SCHOOL OF MANAGEMENT
PONDICHERRY UNIVERSITY
NOVEMBER-2013

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INTRODUCTION
Fundamental Analysis involves examining the economic, financial and other qualitative
and quantitative factors related to a security in order to determine its intrinsic value. If a
company's stock is trading above the intrinsic value or fair value, then the stock is overvalued. If
a company's stock is trading below the intrinsic value, then the stock is undervalued. It attempts
to study everything that can affect the security's value, including macroeconomic factors (like the
overall economy and industry conditions) and individually specific factors (like the financial
condition and management of companies). Fundamental analysis, which is also known as
quantitative analysis, involves delving into a company’s financial statements (such as profit and
loss account and balance sheet) in order to study various financial indicators (such as revenues,
earnings, liabilities, expenses and assets.
STATEMENT OF THE PROBLEM
The study of fundamental analysis of banking industry in India Infoline ltd is to assess
the performance of banking industry and select the most performing banking companies through
the analysis of macro and micro variables that affects the performance of particular company.
OBJECTIVE OF THE STUDY
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To analyze economy by using some economic indicators like GDP, and inflation rate etc
to find out the best time for investment and selection of industry performing well in
economy.
To analyze industry for assessing the strength and find out best performing companies.
To carry out analysis of companies to select particular company performing well for
investment.
To provide investment decisions

SCOPE OF THE STUDY
1. The study gives overview of banking industry to investors while investing
2. This study consists of Economic, Industry and Company framework of analysis with the
following aspects
 Economic analysis consists of various variables such as GDP, BOP, Inflation, FII
etc.
 Industry analysis consists of Demand, potential market, growth and development
etc.
 Company analysis consists of financial statement analysis, Companies prospects,
growth, and Management board of company.

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PERIOD OF STUDY
The period of the study is 5 years i.e. (2009-2013). Company 5 years data has been taken
for the analysis
RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. The
research methodology using for find out the solution of the research problem is analytical
research methodology and some extend descriptive research methodology
DATA SOURCES
Secondary data has been collected from various sources to analyze the fundamentals.
Following are the Sources.
 RBI
 Annual reports
 CMIE Data base
 Bloomberg data base
 NSE
 World bank
 Money control
 Other websites
TOOLS FOR ANALYSIS
Unlike any other manufacturing or service company, a bank’s accounts are presented in a
different manner (as per banking regulations). The analysis of a bank account differs
significantly from any other company. The key operating and financial ratios, which one would
normally evaluate before investing in company, may not hold true for a bank.
The followings are the most popular tools for the fundamental analysis of Banks or to evaluate
performance of Banks.
 Net interest margin (NIM)
 Credit to deposit
 Operating profit margin
 Non-performing asset ratio(NPA)
 Cost to income ratio
 Earnings per share(EPS)
 Dividend per share (DPS)
 Dividend payout ratio
 Price earnings ratio

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NET INTEREST MARGIN (NIM)
For banks, interest expenses are their main costs (similar to manufacturing cost for
companies) and interest income is their main revenue source. The difference between interest
income and expense is known as net interest income. It is the income, which the bank earns from
its core business of lending. Net interest margin is the net interest income earned by the bank on
its average earning assets. These assets comprises of advances, investments, balance with the
RBI and money at call.
𝑵𝑰𝑴 =

𝑵𝑻𝑬𝑹𝑬𝑺𝑻𝑰𝑵𝑪𝑶𝑴𝑬 − 𝑰𝑵𝑻𝑬𝑹𝑬𝑺𝑻𝑬𝑿𝑷𝑬𝑵𝑺𝑬
𝑬𝑨𝑹𝑵𝑰𝑵𝑮 𝑨𝑺𝑺𝑬𝑻𝑺

CREDIT TO DEPOSIT RATIO (CD RATIO)
The ratio is indicative of the percentage of funds lent by the bank out of the total amount
Raised through deposits. Higher ratio reflects ability of the bank to make optimal use of the
available resources. The point to note here is that loans given by bank would also include its
investments in debentures, bonds and commercial papers of the companies (these are generally
included as a part of investments in the balance sheet).
𝑪𝑹𝑬𝑫𝑰𝑻 𝑻𝑶 𝑫𝑬𝑷𝑶𝑺𝑰𝑻 =

𝑪𝑹𝑬𝑫𝑰𝑻
𝑨𝑫𝑽𝑨𝑵𝑪𝑬𝑺

OPERATING PROFIT MARGINS (OPM)
Banks operating profit is calculated after deducting administrative expenses, which
mainly include salary cost and network expansion cost. Operating margins are profits earned by
the bank on its total interest income. For some private sector banks the ratio is negative on
account of their large IT and network expansion spending.
𝑶𝑷𝑴 =

𝑵𝑬𝑻 𝑰𝑵𝑻𝑬𝑹𝑬𝑺𝑻 𝑰𝑵𝑪𝑶𝑴𝑬 − 𝑶𝑷𝑬𝑹𝑨𝑻𝑰𝑵𝑮𝑬𝑿𝑷𝑬𝑵𝑺𝑬𝑺
∗ 𝟏𝟎𝟎
𝑻𝑶𝑻𝑨𝑳 𝑰𝑵𝑻𝑬𝑹𝑬𝑺𝑻 𝑰𝑵𝑪𝑶𝑴𝑬

NPA RATIO
The ‘net non-performing assets to loans (advances) ratio’ is used as a measure of the
overall quality of the bank’s loan book. Net NPAs are calculated by reducing cumulative balance
of provisions outstanding at a period end from gross NPAs. Higher ratio reflects rising bad
quality of loans.
𝑵𝑷𝑨 𝑹𝑨𝑻𝑰𝑶 =

𝑵𝑬𝑻 𝑵𝑶𝑵 𝑷𝑬𝑹𝑭𝑶𝑹𝑴𝑰𝑵𝑮 𝑨𝑺𝑺𝑬𝑻𝑺
𝑳𝑶𝑨𝑵𝑺 𝑮𝑰𝑽𝑬𝑵

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COST TO INCOME RATIO
Controlling overheads are critical for enhancing the bank’s return on equity. Branch
Rationalization and technology upgrade account for a major part of operating expenses for new
generation banks. Even though, these expenses result in higher cost to income ratio, in long term
they help the bank in improving its return on equity. The ratio is calculated as a proportion of
operating profit including non-interest income (fee based income)
𝑪𝑶𝑺𝑻 𝑻𝑶 𝑰𝑵𝑪𝑶𝑴𝑬 𝑹𝑨𝑻𝑰𝑶 =

𝑶𝑷𝑬𝑹𝑨𝑻𝑰𝑵𝑮 𝑬𝑿𝑷𝑬𝑵𝑺𝑬
𝑵𝑬𝑻 𝑰𝑵𝑻𝑬𝑹𝑬𝑺𝑻 𝑰𝑵𝑪𝑶𝑴𝑬 + 𝑵𝑶𝑵 𝑰𝑵𝑻𝑬𝑹𝑬𝑺𝑻 𝑰𝑵𝑪𝑶𝑴𝑬

EARNING PER SHARE (EPS)
The portion of a company's profit allocated to each outstanding share of common stock.
Earnings per share serve as an indicator of a company's profitability.
𝑬𝑷𝑺 =

𝑵𝑬𝑻 𝑰𝑵𝑪𝑶𝑴𝑬 − 𝑫𝑰𝑽𝑰𝑫𝑬𝑵𝑫 𝑶𝑵 𝑷𝑹𝑬𝑭𝑬𝑹𝑬𝑵𝑪𝑬𝑺𝑯𝑨𝑹𝑬𝑺
𝑵𝑼𝑴𝑩𝑬𝑹 𝑶𝑭 𝑺𝑯𝑨𝑹𝑬𝑺

DIVIDEND PER SHARE (DPS)
The sum of declared dividends for every ordinary share issued. Dividend per share (DPS)
is the total dividends paid out over an entire year (including interim dividends but not including
special dividends) divided by the number of outstanding ordinary shares issued.
𝑫𝑷𝑺 =

𝑺𝑼𝑴 𝑶𝑭𝑫𝑰𝑽𝑰𝑫𝑬𝑵𝑫
𝑵𝑼𝑴𝑩𝑬𝑹𝑶𝑭 𝑺𝑯𝑨𝑹𝑬𝑺

Having a growing dividend per share can be a sign that the company's growth can be sustained.
DIVIDEND PAY OUT RATIO
The percentage of earnings paid to shareholders in dividends.
𝑫𝑰𝑽𝑰𝑫𝑬𝑵𝑫 𝑷𝑨𝒀 𝑶𝑼𝑻 𝑹𝑨𝑻𝑰𝑶 =

𝑫𝑷𝑺
𝑬𝑷𝑺

A reduction in dividends paid is looked poorly upon by investors, and the stock price usually
depreciates as investors seek other dividend-paying stocks. A stable dividend payout ratio
indicates a solid dividend policy by the company's board of directors.
PRICE EARNING RATIO
A valuation ratio of a company's current share price compared to its per-share earnings. A high
P/E ratio suggests that investors are expecting higher earnings growth in the future compared to

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companies with a lower P/E ratio. The P/E ratio is sometimes referred to as the "multiple",
because it shows how much investors are willing to pay per units of earnings.
𝑷𝑹𝑰𝑪𝑬 𝑬𝑨𝑹𝑵𝑰𝑵𝑮 𝑹𝑨𝑻𝑰𝑶 =

𝑴𝑨𝑹𝑲𝑬𝑻 𝑽𝑨𝑳𝑼𝑬 𝑷𝑬𝑹 𝑺𝑯𝑨𝑹𝑬
𝑬𝑨𝑹𝑵𝑰𝑵𝑮 𝑷𝑬𝑹 𝑺𝑯𝑨𝑹𝑬

INTRINSIC VALUE
By intrinsic value we mean value of share which is supported by asset quality,
performance earning capacity, risk, future prospects, and happening in the economy. It is
believed that in the long run a share is likely to command a market price around its intrinsic
value. Therefore a knowledge about this can help in investment decision
Steps for calculating intrinsic value
1. Estimation of expected EPS of the company
2. Estimation of price earning multiplier(P/E)
P/E multiplier can be estimated by taking into consideration several factors like (a) past
performance of the company, (b) expectation about future, (c) goodwill of company etc. Here in
this analysis P/E multiplier is calculated on the basis of past performance of company, ie average
of past five years P/E ratio. And estimated EPS also calculated on the basis of past five year EPS
ie average of past five years EPS. Thus
𝑰𝑵𝑻𝑹𝑰𝑵𝑺𝑰𝑪 𝑽𝑨𝑳𝑼𝑬 = 𝑬𝑿𝑷𝑬𝑪𝑻𝑬𝑫 𝑬𝑷𝑺 ∗ 𝑷𝑹𝑰𝑪𝑬 𝑬𝑨𝑹𝑵𝑰𝑵𝑮 𝑴𝑼𝑳𝑻𝑰𝑷𝑳𝑰𝑬𝑹
Decision making with the help of intrinsic value
 Buy – if intrinsic value is greater than current market price
 Sell – if intrinsic value less than current market price
TECHNIQUES
The technique used in the analysis of the company is excel sheets, graphs and tables of
Financial statement etc.

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LIMITATIONS
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For study only following limited variables has studied such as GDP, CAD, Foreign
exchange reserve, foreign investment inflow, inflation, agricultural production, industrial
production index, lending rate, employment, &sectorial contribution to GDP.
Industrial analysis is limited to quantitative factors and excluded qualitative factors like
political factors, product line, innovations etc.
Fundamental analysis is a time consuming analysis, efficiency of the analysis is totally
depends up on the availability of time. The analysis here conducted with limited period of
time.
Qualitative factors had limited priority in company analysis.
Valuation techniques and tools for banks are different from other form of companies. So
the suggested fundamental ratios to analyze companies should not be suitable for banks.
Reliability of analysis is depends up on the reliability of the data sources
Future changes are largely unpredictable, so the past record is a poor guide to future
performance.
The analysis is based on my own interpretation and up to my best of knowledge but every
analyst have his or her own interpretation and suggestions
Error due to misinterpretation

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ANALYSIS
The examination and evaluation of the relevant information to select the best course of
action from among various alternatives. The methods used to analyze securities and make
investment decisions fall into two very broad categories: fundamental analysis and technical
analysis. Fundamental analysis involves analyzing the characteristics of a company in order to
estimate its value. Technical analysis takes a completely different approach; it doesn't care one
bit about the "value" of a company or a commodity. Technicians (sometimes called chartists) are
only interested in the price movement in the market
TECHNICAL ANALYSIS
Technical analysis is a method of evaluating securities by analyzing the statistics
generated by market activity, such as past prices and volume. Technical analysts do not attempt
to measure a security's intrinsic value, but instead use charts and other tools to identify patterns
that can suggest future activity.
FUNDAMENTAL ANALYSIS
Fundamental analysis is a stock valuation methodology that uses financial and
economic analysis to envisage the movement of stock prices. The fundamental data that is
analyzed could include a company’s financial reports and non-financial information such as
estimates of its growth, demand for products sold by the company, industry comparisons,
economy-wide changes, changes in government policies etc.
The outcome of fundamental analysis is a value (or a range of values) of the stock of the
Company called its ‘intrinsic value’ (often called ‘price target’ in fundamental analysts’
parlance).To a fundamental investor, the market price of a stock tends to revert towards its
intrinsic value. If the intrinsic value of a stock is above the current market price, the investor
would purchase the stock because he believes that the stock price would rise and move towards
its intrinsic value. If the intrinsic value of a stock is below the market price, the investor would
sell the stock because he believes that the stock price is going to fall and come closer to its
intrinsic value.
To find the intrinsic value of a company, the fundamental analyst initially takes a topdown view of the economic environment; the current and future overall health of the economy as
a whole. After the analysis of the macro-economy, the next step is to analyze the industry
environment which the firm is operating in. One should analyze all the factors that give the firm
a competitive advantage in its sector, such as, management experience, history of performance,
growth potential, low cost of production, brand name etc. In simple term fundamental analysis is
the analysis of Economy, Industry and Company.

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TWO APPROACHES OF FUNDAMENTAL ANALYSIS
1. Top-down approach
2. Bottom-up approach
1 .Top-down approach: In this approach, an analyst investigates both international and national
economic indicators, such as GDP growth rates, energy prices, inflation and interest rates. The
search for the best security then trickles down to the analysis of total sales, price levels and
foreign competition in a sector in order to identify the best business in the sector.
2. Bottom-up approach: In this approach, an analyst starts the search with specific businesses,
irrespective of their industry/region.
HOW DOES FUNDAMENTAL ANALYSIS WORKS
Fundamental analysis is carried out with the aim of predicting the future performance of a
company. It is based on the theory that the market price of a security tends to move towards its
'real value' or 'intrinsic value.' Thus, the intrinsic value of a security being higher than the
security’s market value represents a time to buy. If the value of the security is lower than its
market price, investors should sell it.
STEPS OF FUNDAMENTAL ANALYSIS
1. Macroeconomic analysis, which involves considering currencies, commodities and indices.
2. Industry sector analysis, which involves the analysis of companies that are a part of the sector.
3. Situational analysis of a company.
4. Financial analysis of the company.
5. Valuation
The valuation of any security is done through the discounted cash flow (DCF) model, which
takes into consideration:
1. Dividends received by investors
2. Earnings or cash flows of a company
3. Debt, which is calculated by using the debt to equity ratio and the current ratio (current
assets/current liabilities)

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WHY ONLY FUNDAMENTAL ANALYSIS
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Long-term Trends

Fundamental analysis is good for long-term investments based on long-term trends, very
long-term. The ability to identify and predict long-term economic, demographic, technological or
consumer trends can benefit patient investors who pick the right industry groups or companies.
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Value Spotting

Sound fundamental analysis will help identify companies that represent a good value. Some of
the most legendary investors think long-term and value. Graham and Dodd, Warren Buffett and
John Neff are seen as the champions of value investing. Fundamental analysis can help uncover
companies with valuable assets, a strong balance sheet, stable earnings, and staying power
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Business insights

One of the most obvious, but less tangible, rewards of fundamental analysis is the
development of a thorough understanding of the business. After such pains taking research and
analysis, an investor will be familiar with the key revenue and profit drivers behind a company.
Earnings and earnings expectations can be potent drivers of equity prices. Even some technicians
will agree to that.
A good understanding can help investors avoid companies that are prone to shortfalls and
identify those that continue to deliver. In addition to understanding the business, fundamental
analysis allows investors to develop an understanding of the key value drivers and companies
within an industry. A stock's price is heavily influenced by its industry group. By studying these
groups, investors can better position themselves to identify opportunities that are high-risk (tech),
low-risk (utilities), growth oriented (computer), value driven (oil), non-cyclical (consumer
staples), cyclical (transportation) or income-oriented (high yield).
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Knowing Who's Who

Stocks move as a group. By understanding a company's business, investors can better
position themselves to categorize stocks within their relevant industry group. Business can
change rapidly and with it the revenue mix of a company. This has happened with many of the
pure internet retailers, which were not really internet companies, but plain retailers. Knowing a
company's business and being able to place it in a group can make a huge difference in relative
valuations. The charts of the technical analyst may give all kinds of profit alerts, signals and
alarms, but there‟s little in the charts that tell us why a group of people make the choices that
create the price patterns

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USERS OF FUNDAMENTAL ANALYSIS
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Investors
Brokers
Financial institutions
Competitors

COMPONENTS OF FUNDAMENTAL ANALYSIS
A. ECONOMIC ANALYSIS
B. INDUSTRY ANALYSIS
C. COMPANY ANALYSIS
A-ECONOMIC ANALYSIS
The economic analysis aims at determining if the economic climate is conclusive and is
capable of encouraging the growth of business sector, especially the capital market. When the
economy expands, most industry groups and companies are expected to benefit and grow. When
the economy declines, most sectors and companies usually face survival problems. Hence, to
predict share prices, an investor has to spend time exploring the forces operating in overall
economy. Exploring the global economy is essential in an international investment setting. The
selection of country for investment has to focus itself to examination of a national economic
scenario. It is important to predict the direction of the national economy because economic
activity affects corporate profits, not necessarily through tax policies but also through foreign
policies and administrative procedures.
ECONOMIC ANALYSIS TOOLS
The most used tools for performing economic analysis are:
1. Gross Domestic product
GDP is one measure of economic activity. This is the total amount of goods and services
produced in a country in a year. It is calculated by adding the market values of all the final goods
and services produced in a year.
 It is a gross measurement because it includes the total amount of goods and services
produced, of which some merely replace goods that have depreciated or have worn out.


It is domestic production because it includes only goods and services produced within the
country.
2. Inflation
Inflation can be defined as a trend of rising prices caused by demand exceeding supply. Over
time, even a small annual increase in prices of say 1 % will tend to influence the purchasing
power of the nation. In others word, if prices rise steadily, after a number of years, consumers
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will be able to buy only fewer goods and services assuming income level does not change with
inflation.
3. Interest rate
Interest rate is the price of credit. It is the percentage fee received or paid by individual or
organization when they lend and borrow money. In general, increases in interest rate, whether
caused by inflation, government policy, rising risk premium, or other factors, will lead to
reduced borrowing and economic slowdown.
4. International influences
Rapid growth in overseas market can create surges in demand for exports, leading to growth
in export sensitive industries and overall GDP. In contrast, the erection of trade barriers, quotas,
currency restrictions can hinder the free flow of currency, goods, and services, and harm the
export sector of an economy.
5. Fiscal policy
The fiscal policy of the government involves the collection and spending of revenue. In
particular, fiscal policy refers to the efforts by the government to stimulate the economic directly,
through spending.

6. Monsoon
Agriculture forms a very important sector of the Indian economy. Rise in the agricultural
income will cause increase in the demand for industrial products and services and the
performance of agriculture is depends up on monsoon. So the progress and adequacy of monsoon
becomes a matter of great concern for an investor in the Indian contest.
7. Political stability
A stable political environment is necessary for steady and balanced growth. Stable long term
political policies are good for the performance of economy
8. Exchange rates
The performance and profitability of industries and companies that are major importers or
exporters are considerably affected by the exchange rates of rupee against major currencies. A
depreciation of rupee improve the competitive position of Indian products in the foreign market,
thereby stimulating exports. But it would also make imports more expensive. A company
depending heavily on imports may find devaluation of rupee affecting its profitability adversely.

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9. Monetary policy and Liquidity
10. International influences
11. Fiscal policy
12. Budget
13. Balance of payment
14. Domestic legislation
15. Unemployment
16. Infrastructural growth etc.
CONCLUSION OF ECONOMIC ANALYSIS
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An idea about appropriate time for investment
Selection of industries which might perform better

B-INDUSTRY ANALYSIS
An industry analysis helps inform business managers about the viability of their current
strategy and on where to focus a business among its competitors in an industry. The analysis
examines factors such as competition and the external business environment, substitute products,
management preferences, buyers and suppliers. Industry analysis involves reviewing the
economic, political and market factors that influence the way the industry develops. Major
factors can include the power wielded by suppliers and buyers, the condition of competitors. And
the likelihood of new market entrants
1. INDUSTRY LIFE CYCLE
The profitability of industry is depends up on the stage of lifecycle of industry. Each
development stage is unique and exhibits different characteristics.
Followings are the different stages of lifecycle of industry
a. Pioneering stage
It is the stage of startup of an industry. In this stage very few beginners set up the
companies. The risk at this stage is very high due to gestation period effect.
b. Rapid growth stage
At this stage of industry lifecycle demand for the product in the industry increases
at a fast pace and every day new participants enter in the industry
c. Maturity and saturation
At this stage demand almost stabilizes at a particular level. Product differentiation
takes place and companies start competing on the product features. This phase is also of
consolidation and companies consolidate their position by focusing on a particular
segment.
d. Decline/diversification
At this stage poor performers start winding up their business and this phase
witnesses the survival of only the fittest. Very strong companies survive during this stage.
A few companies take up the path of diversification to overcome this phase. If company
diversifies then they again enter into a new industry life cycle.
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2. INDUSTRY CHARACTERISTICS
a) Demand supply gap
Excess supply reduces the profitability of industry through a decline in unit price realization.
On the contrary insufficient supply tends to improve the profitability through higher unit price
realization. Therefore the gap between demand and supply in an industry is a fairly good
indicator of its short term or medium term prospects.
b) Competitive condition in the industry
The level of competition among various companies in an industry is determined by certain
competitive forces like barriers to entry, the threat of substitution, bargaining power of buyers,
bargaining power of suppliers, and rivalry among competitors.
c) Permanence
In this age of rapid technological change, the degree of permanence of an industry is an
important consideration in industry analysis .permanence is a phenomenon related to the product
and technology used by the industry. if an analyst feels that the need for a particular industry will
vanish in short period, or that rapid technological changes would render the products obsolete
within a short time, it would be foolish to invest in such an industry.
d) Labour conditions
If labours in a particular industry is rebellious and is inclined to resort to strikes frequently,
the prospects of that industry cannot become bright.
e) Attitude of government
Government may encourage the growth of certain industries and assist such industries
through favorable legislation
f) Supply of raw materials
Availability of raw material is an important factor determining profitability of industry. some
industries may not have problems to obtain row materials.
g) Cost structure
Cost structure is the proportion of fixed cost to variable cost. The higher the fixed cost
component, higher is the sales volume necessary to achieve breakeven point. Conversely lower
the fixed cost proportion to variable cost, lower would be the breakeven point.
h) Etc.
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CONCLUSION OF INDUSTRY ANALYSIS
The main aim is to identify such industries in which
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Chance of growth
Chance of high profitability
Low risk if investment is made

C-COMPANY ANALYSIS
Every industry has more than one company therefore this phase scans the companies of those
industries which have been selected in the Industry analysis. The purpose of this phase is to
identify the best company in the industry selected.
This is done with the help of the following factors
 Analysis of qualitative factors
 Financial performance analysis
1) Competitive position
The level of competition and companies positions are the important factors which determine
the profitability of particular company.
2) Management quality
Investors prefer to have highly skilled management in company
3. Technology
Technological up gradation of companies directly influence profitability of companies and it will
increase the market price of shares also.
3)
4)
5)
6)

Brand image
Raw materials
Labour conition
Capacity utilisation

Ratio analysis
A tool used by individuals to conduct a quantitative analysis of information in a company's
financial statements. Ratios are calculated from current year numbers and are then compared to
previous years, other companies, the industry, or even the economy to judge the performance of
the company. Ratio analysis is predominately used by proponents of fundamental analysis. There
are many ratios that can be calculated

16

From the financial statements pertaining to a company's performance, activity, financing and
liquidity. Some common ratios include the price-earnings ratio, debt-equity ratio, earnings per
share, asset turnover and working capital.
ROA
Return on assets, which, offering a different take on management's effectiveness reveals
how much profit a company earns for every dollar of its assets. Assets include things like cash in
the bank, accounts receivable, property, equipment, inventory and furniture. ROA is calculated
like this.
𝑹𝑶𝑨 =

𝑨𝑵𝑵𝑼𝑨𝑳 𝑵𝑬𝑻 𝑰𝑵𝑪𝑶𝑴𝑬
𝑻𝑶𝑻𝑨𝑳 𝑨𝑺𝑺𝑬𝑻

ROI
Return on Investment is one of several commonly used approaches for evaluating the
financial consequences of business investments, decisions, or actions. ROI analysis compares the
magnitude and timing of investment gains directly with the magnitude and timing of investment
costs. A high ROI means that investment gains compare favorably to investment costs.
𝑹𝑶𝑰 =

𝑮𝑨𝑵𝑰𝑵𝑺 − 𝑰𝑵𝑽𝑬𝑺𝑻𝑴𝑬𝑵𝑻𝑪𝑶𝑺𝑻
𝑰𝑵𝑽𝑬𝑺𝑻𝑴𝑬𝑵𝑻 𝑪𝑶𝑺𝑻

ROE
Of all the fundamental ratios that investors look at, one of the most important is return on
equity. It's a basic test of how effectively a company's management uses investors' money - ROE
shows whether management is growing the company's value at an acceptable rate. ROE is
calculated as
𝑹𝑶𝑬 =

𝑨𝑵𝑵𝑼𝑨𝑳 𝑵𝑬𝑻𝑰𝑵𝑪𝑶𝑴𝑬
𝑵𝑼𝑴𝑩𝑬𝑹 𝑶𝑭 𝑬𝑸𝑼𝑰𝑻𝒀 𝑺𝑯𝑨𝑹𝑬 𝑯𝑶𝑳𝑫𝑬𝑹𝑺

EPS
The portion of a company's profit allocated to each outstanding share of common stock.
Earnings per share serve as an indicator of a company's profitability.
𝑬𝑷𝑺 = −

𝑵𝑬𝑻 𝑰𝑵𝑪𝑶𝑴𝑬 − 𝑫𝑰𝑽𝑰𝑫𝑬𝑵𝑫 𝑶𝑵 𝑷𝑹𝑬𝑭𝑬𝑹𝑬𝑵𝑪𝑬𝑺𝑯𝑨𝑹𝑬
𝑵𝑼𝑴𝑩𝑬𝑹 𝑶𝑭 𝑺𝑯𝑨𝑹𝑬 𝑯𝑶𝑳𝑫𝑬𝑹𝑺

DPS
17

The the sum of declared dividends for every ordinary share issued. Dividend per share
(DPS) is the total dividends paid out over an entire year (including interim dividends but not
including special dividends) divided by the number of outstanding ordinary shares issued.
𝑫𝑷𝑺 =

𝑻𝑶𝑻𝑨𝑳 𝑫𝑰𝑽𝑰𝑫𝑬𝑵𝑫
𝑵𝑼𝑴𝑩𝑬𝑹𝑶𝑭 𝑺𝑯𝑨𝑹𝑬𝑺

DIVIDEND YEILD
Financial ratio that shows how much a company pays out in dividends each year relative
to its share price. In the absence of any capital gains, the dividend yield is the return on
investment for a stock. Dividend yield is calculated as follows:

𝑫𝑰𝑽𝑰𝑫𝑬𝑵𝑫 𝒀𝑰𝑬𝑳𝑫 =

𝑨𝑵𝑵𝑼𝑨𝑳 𝑫𝑰𝑽𝑰𝑫𝑬𝑵𝑫 𝑷𝑬𝑹𝑺𝑯𝑨𝑹𝑬
𝑷𝑹𝑰𝑪𝑬 𝑷𝑬𝑹 𝑺𝑯𝑨𝑹𝑬

CONCLUSION OF COMPANY ANALYSIS


Identification of companies in which investment can be made

END RESULT OF FUNDAMENTAL ANALYSIS



At what time investment is to be made
In which company investment is to be made

18

IIFL (INDIA INFOLINE LTD)
IIFL is a brokerage firm dealing in retail brokerage, institutional brokerage, consumer
lending, institutional lending, realty and wealth management. Was founded in 1995 by Mr.
Nirmal Jain (Chairman) as an independent business research and information provider. It
gradually evolved into a financial services solution provider. IIFL has a network of 3000
business locations spread over more than 500 cities and towns across India.
IIFL is listed on the Bombay Stock Exchange (BSE) and the National stock exchange of
India (NSE) for securities trading; with MCX, NCDEX and DGCX for commodities trading; and
with CDSL and NSDL as depository participants.[citation needed] IIFL is registered as a
Category I merchant banker and is a SEBI registered portfolio manager.
PRODUCTS AND SERVICES
Equities
India infoline provided the prospect of researched investing to its clients.reserch for retail
invester did not exist prior to India infoline. India infoline liveraged technology to bring the
convenience of trading to the investor’s location of preference through computerized access.
IIFL made it possible for clients to view transaction cost and ledger updates in real time
Commodities
IIFL was among the first offer the facility of commodities trading in India’s young
commodities market (MCX). Average monthly turnover on the commodity exchanges increased
from Rs 0.34 bn to 20.02 bn.
IIFL offers commodities trading to its customers vide its membership of the MCX and
the NCDEX. Our domain knowledge and data based on in depth research of complex paradigms
of commodity kinetics, offers our customers a unique insight into behavioral patterns of these
markets. Our customers are ideally positioned to make informed investment decisions with a
high probability of success.
Insurance
IIFL entered the insurance distribution business in 2000 as ICICI Prudential Life
Insurance Co. Ltd’s corporate agent. Later, it became an Insurance broker in October 2008 in
line with its strategy to have an ‘open architecture’ model. The Company now distributes
products of major insurance companies through its subsidiary India Infoline Insurance Brokers
Ltd. Customers can choose from a wide bouquet of products from several insurance companies
including Max New York Life Insurance, MetLife, Reliance Life Insurance, Bajaj Allianz Life,
Birla Sunlife, Life Insurance Corporation, Kotak Life Insurance and others.

20

Wealth Management Service
IIFL offers private wealth advisory services to high-net-worth individuals (HNI) and
corporate clients under the ‘IIFL Private Wealth’ brand. IIFL Private Wealth is managed by a
qualified team of MBAs from IIMs and premier institutes with relevant industry experience. The
team advises clients across asset classes like sovereign and quasi-sovereign debt, corporate and
collateralised debt, direct equity, ETFs and mutual funds, third party PMS, derivative strategies,
real estate and private equity. It has developed innovative products structured on the fixed
income side. It also has tied up with Interactive Brokers LLC to strengthen its execution platform
and provide investors with a global investment platform.
Investment Banking
IIFL’s investment banking division was launched in 2006. The business leverages upon
its strength of research and placement capabilities of the institutional and retail sales teams. Our
experienced investment banking team possesses the skill-set to manage all kinds of investment
banking transactions. Our close interaction with investors as well as corporates helps us
understand and offer tailor-made solutions to fulfill requirements. The Company possesses
strong placement capabilities across institutional, HNI and retail investors. This makes it possible
for the team to place large issues with marquee investors.
Credit and finance
IIFL offers a wide array of secured loan products. Currently, secured loans (mortgage
loans, margin funding, loans against shares) comprise 94% of the loan book. The Company has
discontinued its unsecured products. It has robust credit processes and collections mechanism
resulting in overall NPAs of less than 1%. The Company has deployed proprietary loanprocessing software to enable stringent credit checks while ensuring fast application processing.
Recently the company has also launched Loans against Gold.
BRIEF HISTORY OF IIFL
India Infoline Limited (IIL), incorporated in 18th October of the year 1995 as Probity
Research & Services Private Limited at Mumbai. The India Infoline is a one-stop shop for
information, advice as well as transaction execution of financial services. IIL along-with its
subsidiaries caters to entire gamut of financial services including equities and commodities
broking, portfolio management, distribution of mutual funds, life insurance products, home
loans, personal loans, etc. Broking services are offered under the 5paisa brand (offers broking
services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the
BSE). The company has proven research capabilities and was rated by the Forbes as the best of
web' and must read for investors'. A network of 758 business locations spread over 346 cities
across India, facilitates the smooth acquisition and servicing of a large customer base. India
Infoline's research is available not just over the Internet but also on international wire services
21

like Bloomberg (Code: IILL), Thomson First Call and Internet Securities where it is amongst the
most read Indian brokers.
The Company identified the potential of the Internet to cater to a mass retail segment and
transformed its business model from providing information services to institutional customers to
retail customers. Hence IIL launched its Internet portal, www.indiainfoline.com in May of the
year 1999 and started providing news and market information, independent research, interviews
with business leaders and other specialized features. IIL was converted into a Public Limited
Company in 28th April of the year 2000 and the name of the Company was changed to Probity
Research & Services Limited. The name of the company was changed to India Infoline.com
Limited in 23rd May of the year 2000. During 23rd March of the year 2001, again the name was
changed as India Infoline Limited. IIL acquired 100% shares of Agri Marketing Services Limited
during March of the year 2000. In the year 2000, IIL leveraged its position as a provider of
financial information and analysis by diversifying into transactional services, primarily for online
trading in shares and securities and online as well as offline distribution of personal financial
products, like mutual funds and RBI Bonds. These activities are carried on through the wholly
owned subsidiaries. The broking service was launched under the brand name of 5paisa through
our subsidiary, India Infoline Securities Private Limited and www.5paisa.com, the e-broking
portal, was launched for online trading in June of the year 2000. It combined competitive
brokerage rates and research, supported by Internet technology. Besides investment advice from
an experienced team of research analysts, also offer real time stock quotes, market news and
price charts with multiple tools for technical analysis.
In December of the year 2000, India Infoline Insurance Services Limited (subsidiary)
became a corporate agent for ICICI Prudential Life Insurance Company Limited. In the year
2004, the company launched commodities broking through its subsidiary India Infoline
Commodities Private Limited. Also received a license for Portfolio Management Services from
SEBI for broking subsidiary. During the year 2006, the company received the requisite prior
approval from The Securities and Exchange Board of India for its proposed merger of India
Infoline Securities Private Limited (IISPL), a wholly owned subsidiary with itself. It had earlier
received in-principle approval from National Stock Exchange and The Stock Exchange,
Mumbai. In January of the year 2007, the company entered into an alliance with Bank of Baroda
for providing Brokerage Platform, besides research and analysis services to the bank's customers.
India Infoline awarded the Best Broker in India' by Finance Asia. This was a result of Finance
Asia's annual look at the best financial services firms in each country around Asia for the period
from June 2007 to May 2008. During March of the year 2008, India Infoline's institutional
broking arm IIFL, partnered with Auerbach Grayson & Company, Inc., a New York-based
brokerage firm to offer US investors premium access to investing in India's capital markets.
Auerbach Grayson specializes in providing global trade execution and exclusive research to U.S.
institutional investors. As of July 2008, the company received the in-principle approval for the
insurance broking licence from IRDA
22

VISION
To become the most respected company in the financial services space in india
MISSION
To become a full fledged financial services company known for its quality of
advice,personalized services and cutting edge technology
CSR(CORPORATE SOCIAL RESPONSIBILITY)
 SCHOLARSHIPS
H Nemkumar and Nirmal Jain Scholarship (May 2012) India has a large number of gifted
and deserving students who are unable to avail of a high-quality learning experience from
reputed institutions in India or abroad due to financial or other constraints. Young India Fellows
reaches out to such students. The YIF scholarships have been made possible by generous
donations by a stellar set of individuals including Mr. Nirmal Jain and Mr. H Nemkumar on
behalf of IIFL Foundation.
 FINANCIAL LITERACY FOR SUPPORTING UNDER PRIVILAGED
IIFL has also tied up with KJ Somaiya Institute of Management Studies & Research
(SIMSR) to impart basic financial knowledge to underprivileged sections and physically
handicapped sections of the society. The programmes covers lessons on savings, budgeting,
banking, credit management, microfinance and self-help groups (SHGs). The IIFL Foundation
under the FLAME initiative has tied up with Somaiya Institute to impart financial literacy to
National Society for Equal Opportunities for the Handicapped India
 SPONSORING CAREER GUIDANCE IN JAWAHAR
IIFL Foundation joined hands with a social development organization working across the
Thane district of Maharashtra with tribal and rural communities. IIFL is actively helping in
providing career guidance to the students of High School and Junior colleges in Walvanda,
Jawahar.

23

KEY EXECUTIVES
CORPORATE MANAGEMENT TEAM
chairman and managing Director

Mr Nirmal Jain

Director

Mr A K Purwar

Executive Director

Mr R Venkataraman

Independent Director

Mr Nilesh Vikamsey

Non Executive Director

Mr Sat Pal Khattar

Institutional Equities

H.Nemkumar

Investment Banking

Nipun Goel

Consumer Finance

Pratima Ram

Wealth Management

Karan Bhagat

International Operations

Bharat Parajia

Offshore Asset Management

Deepesh Pandey

Insurance Distribution

Mukesh Kumar Singh

Corporate Communication

Jamshed Kawasjee Vakeel

Risk & Audit

Upendra Kumar Jaiswal

Corporate Operations

Narendra Deshmal Jain

Human Resources

Pallab Mukherji

Legal and Compliance

Mohan Radhakrishnan

Finance and Accounts

Dhruv Jain

Information Technology

Sankarson Banerjee

Realty

Balaji Ragha

24

HISTORY & MILESTONES
 1995-Commenced operations as an Equity Research firm
 1997-Launched research products of leading Indian companies, key sectors and the
economy
Client included leading FIIs, banks and companies
 1999-Launchedwww.indiainfoline.com
 2000-Launched online trading through www.5paisa.com Started distribution of life
insurance and mutual fund
 2003-Launched proprietary trading platform Trader Terminal for retail customers
 2004-Acquired commodities broking license Launched Portfolio Management Service
 2005-Maiden IPO and listed on NSE, BSE
 2006-Acquired membership of DGCX Commenced the lending business
 2007-Commenced institutional equities business under IIFL Formed Singapore
subsidiary, IIFL (Asia) Pten Ltd
 2008-Launched IIFL Wealth Transitioned to insurance broking model
 2009-Acquired registration for Housing Finance SEBI in-principle approval for Mutual
Fund Obtained Venture Capital licence.
 2010-Received in-principle approval for membership of the Singapore Stock Exchange
Received membership of the Colombo Stock Exchange

25

CORPORATE STRUCTURE
IIFL has a network of over 2,500 business locations spread over more than 500 cities and towns
across India facilitates the smooth acquisition and servicing of a large customer base. All our
offices are connected with the corporate office in Mumbai with cutting edge networking
technology. The group caters to a customer base of about a million customers, over a variety of
mediums viz. online, over the phone and at our branches

India
Infoline
Ltd

India
Infoline
Investme
nt
Services
Ltd
NBFC for
financing

IIFL Asia Pvt
Ltd

New
company
for
internationa
l operations

India
Infoline
Media
and
Research
Services
Ltd

India Infoline
Commodities
Ltd

India
Infoline
Marketing
Services ltd

Commodities
Broking

Insurance
Distribution

Equity
Research
portal
and
online
media

26

INDIAN BANKING SECTOR REVIEW

27

INDIAN BANKING SECTOR
Without a sound and effective banking system in India it cannot have a healthy economy.
The banking system of India should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factors. credit. It is no
longer confined to only metropolitans or cosmopolitans in India; in fact, Indian banking system
has reached even to the remote corners of the country. This is one of the main reasons of India's
growth process. The government's regular policy for Indian bank since 1969 has paid rich
dividends with the nationalization of 14 major private banks of India. Not long ago, an account
holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own
money. Today, he has a choice. Gone are days when the most efficient bank transferred money
from one branch to other in two days. Now it is simple as instant messaging or dial a pizza.
Money has become the order of the day.

POST-INDEPENDENCE
In 1948, the Reserve Bank of India, India's central banking authority, was nationalized,
and it became an institution owned by the Government of India. In 1949, the Banking Regulation
Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and
inspect the banks in India." The Banking Regulation Act also provided that no new bank or
branch of an existing bank may be opened without a license from the RBI, and no two banks
could have common directors.

LIBERALIZATION

The new policy shook the Banking sector in India completely. Bankers, till this time,
were used to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4) of functioning. In the
early 1990s the then Narsimha Rao government embarked on a policy of liberalization and gave
licenses to a small number of private banks, which came to be known as New Generation tech
savvy banks, which included banks such as Global Trust Bank (the first of such new generation
banks to be set up) which later amalgamated with Oriental Bank of Commerce, UTI Bank (now
re-named as Axis Bank), ICICI Bank and HDFC Bank.

CURRENT SITUATION
Currently, India has 88 scheduled commercial banks (SCBs) - 28 public sector banks
(that is with the Government of India holding a stake), 29 private banks (these do not have
government stake; they may be publicly listed and traded on stock exchanges) and 31 foreign
banks. They have a combined network of over 67,000 branches and 17,000 ATMs. According to
a report by ICRA Limited, a rating agency, the public sector banks hold over 78 percent of total
28

assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5%
respectively. Over the last four years, India‟s economy has been on a high growth trajectory,
creating unprecedented opportunities for its banking sector. Most banks have enjoyed high
growth and their valuations have appreciated significantly during this period. Looking ahead, the
mostpertinent issue is how well the banking sector is positioned to cater to continued growth. A
holistic assessment of the banking sector is possible only by looking at the roles and actions of
banks, their core capabilities and their ability to meet systemic objectives, which include
increasing shareholder value, fostering financial inclusion, contributing to GDP growth,
efficiently managing intermediation cost, and effectively allocating capital and maintaining
system stability.

BANKING STRUCTURE IN INDIA
The banking institutions in the organized sector, commercial banks are the oldest institutions,
some them having their genesis in the nineteenth century. Initially they were set up in large
numbers, mostly as corporate bodies with shareholding with private individuals. Today 27 banks
constitute a strong Public Sector in Indian Commercial Banking. Commercial Banks operating in
India fall under different sub categories on the basis of their ownership and control over
management;
PUBLIC SECTOR BANKS
Public Sector Banks emerged in India in three stages. First the conversion of the then existing
Imperial Bank of India into State Bank of India in 1955, followed by the taking over of the seven
associated banks as its subsidiary. Second the nationalization of 14 major commercial banks in
1969and last the nationalization of 6 more commercial Bank in 1980. Thus 27 banks constitute
the Public Sector Banks.

NEW PRIVATE SECTOR BANKS
After the nationalization of the major banks in the private sector in 1969 and 1980, no new bank
could be setup in India for about two decades, though there was no legal bar to that effect. The
Narasimham Committee on financial sector reforms recommended the establishment of new
banks of India. RBI thereafter issued guidelines for setting up of new private sector banks in
India in January 1993. These guidelines aim at ensuring that new banks are financially viable and
technologically up to date from the start. They have to work in a professional manner, so as to
improve the image of commercial banking system and to win the confidence of the public. Eight
private sector banks have been established including banks sector by financially institutions like
IDBI, ICICI, and UTI etc.

29

LOCAL AREA BANKS
Such Banks can be established as public limited companies in the private sector and can be
promoted by individuals, companies, trusts and societies. The minimum paid up capital of such
banks would be 5 crores with promoters contribution at least Rs. 2 crores. They are to be set up
in district towns and the area of their operations would be limited to a maximum of 3 districts. At
present, four local area banks are functional, one each in Punjab, Gujarat, Maharashtra and
Andhra Pradesh.
FOREIGN BANKS
Foreign commercial banks are the branches in India of the joint stock banks incorporated abroad.
There number was 38 as on 31.03.2009.

SCHEDULED COMMERCIAL BANKS IN INDIA
The commercial banking structure in India consists of:



Scheduled Commercial Banks in India
Unscheduled Banks in India

Scheduled Banks in India constitute those banks which have been included in the Second
Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only those banks in
this schedule which satisfy the criteria laid down vide section42 (6) a) of the Act.
"Scheduled banks in India" means the State Bank of India constituted under the State Bank
of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India
(Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under section
3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970),
or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act,
1980 (40 of 1980), or any other bank being a bank included in the Second Schedule to the
Reserve Bank of India Act, 1934 (2 of 1934), but does not include a co-operative bank". "Nonscheduled bank in India" means a banking company as defined in clause (c) of section 5 of the
Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank".

COOPERATIVE BANKS
Besides the commercial banks, there exists in India another set of banking institutions
called cooperative credit institutions. These have been made in existence in India since long.
They undertake the business of banking both in urban and rural areas on the principle of
cooperation. They have served a useful role in spreading the banking habit throughout the
country. Yet, there financial position is not sound and a majority of cooperative banks has yet to
30

achieve financial viability on a sustainable basis. The cooperative banks have been set up under
various Cooperative Societies Acts enacted by State Governments. Hence the State Governments
regulate these banks. In 1966, need was felt to regulate their activities to ensure their soundness
and to protect the interests of depositors According to the RBI in March 2009, number of all
Scheduled Commercial Banks (SCBs) was 171 of which, 86 were Regional Rural Banks and the
number of Non-Scheduled Commercial Banks including Local Area Banks stood at 5. Taking
into account all banks in India, there are overall 56,640 branches or offices, 893,356 employees
and 27,088 ATMs. Public sector banks made up a large chunk of the infrastructure, with 87.7 per
cent of all offices, 82 per cent of staff and 60.3 per cent of all automated teller machines (ATMs)

31

The independence-era Indian economy (from 1947 to 1991) was based on a mixed
economy combining features of capitalism and socialism, And failed to take advantage of the
post-war expansion of trade. In 1991, India adopted liberal and free-market principles and
liberalised its economy to international trade under the guidance of Former Finance minister
Manmohan Singh under the Prime Ministry of P.V. Narasimha Rao, prime minister from 1991 to
1996, who had eliminated Licence Raj, a pre- and post-British era mechanism of strict
government controls on setting up new industry. After more fundamental reforms since 1991 and
their renewal in the 2000s, India has progressed towards a free market economy.
The economy of India is the tenth-largest in the world by nominal GDPand the third-largest by
purchasing power parity (PPP). The country is one of the G-20 major economies and a member
of BRICS. On a per-capita-income basis, India ranked 141st by nominal GDP and 130th by GDP
(PPP) in 2012. The economy slowed to around 5.0% for the 2012–13 fiscal year compared with
6.2% in the previous fiscal, On August 28, 2013 the Indian rupee hit an all time low of 68.80
against the US dollar. In order to control the fall in rupee, the government introduced capital
controls on outward investment by both corporates and individuals. the growth rate has nearly
halved in just three years. GDP growth rose marginally to 4.8% during the quarter through
March 2013, from about 4.7% in the previous quarter. The government has forecast a growth rate
of 6.1%-6.7% for the year 2013–14, India suffered a very high fiscal deficit of US$ 88 billion
(4.8% of GDP) in the year 2012–13. The Indian Government aims to cut the fiscal deficit to US$
70 billion or 3.7% of GDP by 2013–14.
GROSS DOMESTIC PRODUCT (GDP)
Gross domestic product (GDP) is the market value of all officially
recognized final goods and services produced within a country in a given period of time.
India is the tenth-largest in the world by nominal GDP. India's GDP grew by 9.3% in 2010–11;
thus, the growth rate has nearly halved in just three years. GDP growth rose marginally to 4.8%
during the quarter through March 2013, from about 4.7% in the previous quarter. The
government has forecast a growth rate of 6.1%-6.7% for the year 2013–14, The GDP value of
India represents 2.97 percent of the world economy, GDP in India is reported by the The World
Bank Group. The gross domestic product (GDP) measures of national income and output for a
given country's economy.GDP of india at Factor cost is Rs 55054.37 Billion in the year 2012-13
It indicate future growth of GDP,which is shown by the following Diagram.

34

GDP AT FACTOR COST(CONSTANT PRICE)
(RUPEES IN BILLION)
60000
49370.06

50000
40000
30000

27778.13

29714.64

32530.73

35643.64

38966.36

41586.76

52435.82

55054.37

45160.71

20000
10000
0
2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

SOURCE:RBI

SECTOR WISE CONTRIBUTION TO GDP
2012-13 GDP of India increased at the rate of 4.99% from Rs
52435.82 Billion to Rs 55054.37 Billion.The chart above shows a possitive Trend of GDP in the
near future.
The most important and the fastest growing sector of Indian
economy are services. Trade, hotels, transport and communication; financing, insurance, real
estate and business services and community, social and personal services account for more than
60 percent of GDP. Agriculture, forestry and fishing constitute around 12 percent of the output,
but employs more than 50 percent of the labor force. Manufacturing accounts for 15 percent of
GDP, construction for another 8 percent and mining, quarrying, electricity, gas and water supply
for the remaining 5 percent.By analysing the following chart it would be clear that Finance and
trading sectors are the largest and growing contributors of Indian GDP.
SECTOR WISE CONTRIBUTION AS A PERCENTAGE TO GDP

30
25
20
15
10
5
0
2003-04

2004-05

2005-06

FINANCE

2006-07

2007-08

AGRICULTURE

2008-09

2009-10

MANUFACTURING

2010-11

2011-12

2012-13

TRADING

SOURCE:RBI

35

GDP RANKING
India is the 10th largest Economy in the world on the basis of nominal GDP according to
the record of World bank. And india represent 2.97 percentage of word economy GDP.US is the
largest contributor of world Economy GDP Which amounts to 15,684,800 Million US Dollar and
in case of India which is amounts to1, 841,717 Million US Dollar. Following Chart showing the
ranking of countries according to GDP contribution on 2012.

GROSS DOMESTIC PRODUCT-2012
(MILLIONS OF US DOLLAR)

United States

China

Japan

Germany

France

United Kingdom

Brazil

Russian Federation

Italy

India

Canada

Australia

Spain

Mexico

Korea, Rep.

18,000,000
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
-

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

USA

CHN

JPN

DEU

FRA

GBR

BRA

RUS

ITA

IND

CAN

AUS

ESP

MEX

KOR

SOURCE:WORLD BANK

Acoording to the Ministry of Finance Economic reforms introduced two decades ago
would make the country with the third largest GDP in the worldby 2025.India is now an
attractive
FDI
destination
welcoming
both
trade
and
technology
flows.
The Prime Minister's Economic Advisory Council (PMEAC) - the government's topmost thinktank - on Friday cut its growth forecast for India in 2013-14 to 5.3%, just above last year's
decade-low 5% expansion.recent expansion of the automobile sector and pick-up in exports
would have a positive impact on the manufacturing sector. "Taking these factors into account,
the forecast growth rate appears reasonable.the farm sector would post a 4.9% growth, which
would aid overall expansion. The Indian economy, Asia's third-largest, grew 4.4% in the June
quarter.
Monetary policy of Central Bank under the supervision of new Governer Raghuram
Rajan And fiscal policies of Government gives hope to the indian economy to become worlds 3 rd
largest economy.

36

TREND OF GDP
GDP of India shows a possitive Trend. Following is the chart shows the Trend line of
India’s GDP on the basis of past 25 years..
GDP(Constant price) GROWTH OVER 25 YEARS
WITH TREND LINE
70000
60000
50000
40000
30000

y = 10524e0.0645x
R² = 0.9919

20000
10000
0

SOURCE:RBI

CURRENT ACCOUNT DEFICIT (CAD)
The current account is one of the two primary components of the balance of payments,
the other being capital account.is one of two major measures of the nature of a country's foreign
trade.A current account surplus increases a country's net foreign assets by the corresponding
amount, and a current account deficit does the reverse.
India's growing oil import bill is seen as the main driver behind the large current account
deficit.Oil imports account for 34 per cent of the total import bill.India, which imported crude oil
worth USD 144.3 billion in 2012-13.
After 2003-04 India’s CCurrent Account Deficit start to fall and In 2012-13 Current Account
Deficit shows -88163 USD Million in the place of -78155 USD Million in
2011-12.Following is the chart showing india’s CAD over 10 years.

37

CURRENT ACCOUNT DEFICIT
(US $ million)
20000

0
2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

-20000

-40000

-60000

-80000

-100000
SOURCE:RBI

BY analyzing the chart given above it is clear that the Current
account deficit of india is falling over 10 years and it shows a falling trend. The policies and
measures have been taken by the Government and Country’s Central bank only the hope for
CAD in future.
The upto date policies taken by RBI and Central Govt gives hopes to india’s BOP.Indiacurb oil
importsto reduce the dollar demand and shore up the rupee on september 2013,And place
restrictions on gold imports.RBI sells Dollar directly to state oil companies is another measure
possitively influenced the Economy.
In the recent publication of Ministry of Commerce & Industry states a rise in export to 11.2%
and fall in import to 18.1% as gap shrinks to two-and-a-half-year low of $6.76 billion in
September 2013. Lower import of Gold and Crude oil helped pare the deficit to well below
August’s figure of $10.9 billion.gold imports have sharply compressed in the months of July,
August and September,come down to about 65 or 70 tonnes.

38

FOREIGN EXCHANGE RESERVE
Forex Reserves are Assets held by central banks and monetary authorities, usually in
different reserve currencies, mostly the United States dollar, and to a lesser extent the euro.the
term in popular usage commonly also adds gold reserves, special drawing rights (SDRs), and
International Monetary Fund (IMF) reserve positions.Foreign Exchange reserves are called
Reserve Assets in the Balance of Payments.
The chart given bellow showing a possitive trend of India’s Forex reserve. During 201112 Forex reserve was 12832 USD Million and it fall to -3826 USD Million in 2012-13. The chart
showing 10 years movement of india’s Forex reserve. Financial year 2007-08 shows lowest forex
reserve for the 10 years and compared to that the reserve comes to possitive.
India Foreign Exchange Reserves averaged 5008.66 INR Billion from 1990 until 2013,
reaching an all time high of 16275.30 INR Billion in September of 2013 and a record low of
23.86 INR Billion in June of 1991.Foreign Exchange Reserves in India decreased to 15309.80
INR Billion in October of 2013 from 16275.30 INR Billion in September of 2013.
The policies and measures of Central government and RBI grately influenced to the forex
reserve.
FOREIGN EXCHANGE RESSERVE
(US $ million)
40000
20080
20000

12832

0
-20000

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
-3826
-13441 -13050
-15052

-40000

-31421

-26159
-36606

-60000
-80000
-100000

-92164

SOURCE:RBI

39

FOREIGNINVESTMENT INFLOW
It is the sum of equity capital, reinvestment of earnings, other long-term capital, and
short-term capital as shown in the balance of payments.The chart shown bellow shows a
possitive movement of Foreign investment inflow over 10 years.

FOREIGN INVESTMENT INFLOW
60000

(US $ MILLION)

50000
40000

30000

FOREIGN INVESTMENT INFLOW

20000
10000

Linear (FOREIGN INVESTMENT
INFLOW)

0

SOURCE:RBI

INFLATION
The inflation rate in India was recorded at 6.46 percent in September of 2013. Inflation Rate in
India is reported by the Ministry of Commerce and Industry, India. India Inflation Rate averaged
7.72 Percent from 1969 until 2013, reaching an all time high of 34.68 Percent in September of
1974 and a record low of -11.31 Percent in May of 1976. In India, the wholesale price index
(WPI) is the main measure of inflation.

40

AGRICULTURAL PRODUCTION
India ranks second worldwide in farm output. Agriculture and allied sectors like forestry
and fisheries accounted for 16.6 % of the GDP in 2009, about 50 % of the total
workforce.Agriculture production in India plays a significant role in the overall socio-economic
Development of the country.India receives an average annual rainfall of 1,208 millimetres (47.6
in) and a total annual precipitation of 4000 billion cubic metres, with the total utilisable water
resources, including surface and groundwater, amounting to 1123 billion cubic metres.India is
the largest producer in the world of milk, jute and pulses, and also has the world's second largest
cattle population with 175 million animals in 2008.It is the second largest producer of rice,
wheat, sugarcane, cotton and groundnuts, as well as the second largest fruit and vegetable
producer, accounting for 10.9% and 8.6% of the world fruit and vegetable production
respectively.India is also the second largest producer and the largest consumer of silk in the
world, producing 77,000 million tons in 2005.Indian states Uttar Pradesh, Punjab, Haryana,
Madhya Pradesh, Andhra Pradesh, Bihar, West Bengal, Gujarat and Maharashtra are key
agricultural contributing states of India.
Following is the chart showing total agricultural production of india over 10 years
includes Foodgrains and Commercial Crops.Chart showing a possitive trend over total griculture
production.Production increased to 1805.7 Million tonnes in the Financial year 2012-13 from
1792.19 Million tonnes Production in 2011-12. A country mostly depends up on Agricultural
production like india has greatest influence in economic development of that particular country.

TOTAL AGRICCULTURAL PRODUCCTION
MILLION TONNES

2000

1792.19 1805.7

1800
1600
1400

1376.34 1393.89

1496.57

1604.58 1633.33 1553.26

1563

1630.53

1200
1000
800
600

400
200
0
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
SOURCE:RBI

41

INDUSTRIAL PRODUCTION
Index of industrial production released by Central Statistical Organisation is the main
source of industrial production statistics .Indian Index of Industrial production(IIP) focus on
sectors like mining, electricity and manufacturing.
India Industrial Production averaged 6.95 Percent from 1994 until 2013.Industrial
Production in India increased 0.60 percent in August of 2013 over the same month in the
previous year. Industrial Production in India is reported by the Ministry of Statistics and
Programme Implementation.
Following is the chart showing the Index of Industrial production over 5 years,upto 200910. It also showing a possitve growth of production. And it shows an average growth rate of
8.29% over the 5 years
INDEX OF INDUSTRIAL PRODUCTION
(WEIGHT1000)
320

304.1
300

275.4

280

268

260

247.1

240

221.5
220
200
2005-06

2006-07

2007-08

2008-09

2009-10

SOURCE:MINISTRY OF STASTICS AND PROGRAMMEIMPLEMENTATION

LENDING RATE
From 2000 until 2013, India Interest Rate averaged 6.6 Percent reaching an all time high
of 14.5 Percent in August of 2000 and a record low of 4.3 Percent in April of 2009. In India,
interest rate decisions are taken by the Reserve Bank of India's Central Board of Directors.
Fall in lending rate possitively influence the economic activities of that particular
country, because a fall in interest rate will cause decrease the cost of capital and increase the
volume of investment in that country.

42

Following is the chart showing Average lending rate of Bnks over past 5 years.By
analysing the graph it is clear that the interest rate is decreased to 9.975% in financial year 201213 from 10.375% in financial year 2011-12.

AVG LENDING RATE
16

14.125

13.375

14
12

10.375

9.975

2011-12

2012-13

8.875

10
8
6
4
2
0
2008-09

2009-10

2010-11

SOURCE:RBI

EMPLOYMENT
India's labour regulations among the most restrictive and complex in the world have
constrained the growth of the formal manufacturing sector where these laws have their widest
application. Better designed labour regulations can attract more labour- intensive investment and
create jobs for India's unemployed millions.
Following chart showing total employment in public sector and private sector over 10
years.which showing an increasing trend.
EMPLOYMENT
IN MILLION
30
29
28

27.2

27

27

26.45

26.46

2003-04

2004-05

26.96

27.24

2005-06

2006-07

27.55

28.18

28.71

29

26
25
2001-02

2002-03

2007-08

2008-09

2009-10

2010-11

SOURCE:RBI

SECTORAL CONTRIBUTION TO GDP
Following table showing the sectorial Contribution to GDP of India Over past 10 years,
the sectors include Finance, Trade, Agriculture, Manufacturing, and Construction etc.
43

Moving through the chart it is clear that Trading sector including Hotel, Transport and
communications is the greatest contributor to GDP in India among the sectors selected. But the
growth rate is not much high compared to the rate of growth of finance sector.
Finance sector contributed only 10.6% in financial year 2003-04, but it is increased to
31.5% in financial year 2012-13. While trading sector contributed 32.1% in financial year 200304 and which is 35.2% in financial year 2012-13.

SECTORAL CONTRIBUTION TO GDP
(FACTOR COST)
40
35
30
25
20
15
10
5

0
-5

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

Trade, Hotel, Transport and Communications

Community, Social & Personal Services

Agriculture

Mining & Quarrying

Manufacturing

Electricity, Gas & Water Supply

Construction

2012-13

Finance

SOURCE:RBI

Finance sector is best among the other sectors in Indian economy after trading sector even
though there is a slight decrease in GDP contribution on the year 2011-12 and 2012-13.

44

INDUSTRIAL DATA
Following is the table showing banking industrial data for past 10 years from 2004 to
2013. Which shows total income, total assets,total liabilities and total expenses are increasing at
an increasing rate.It indicate that banking industry in india is currently passing through the
expansion stage.

INDIAN BANKING INDUSTRY ASSETS,LIABILITIES,INCOME&EXPENSE
Rs. Million (Ann)

120000000

100000000

80000000
Total income(Ann)
Total expenses(Ann)

60000000

Total liabilities
Total assets

40000000

20000000

0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
SOURCE:CMIE

Total assets of banks increased to 96446190.6 in 2013 from 20693894.1 in 2012.total liabilities
of industry increased to 96446190.6 in 2013 from 20693894.1 in 2004.total income increased to
8759813.95In 2013 from 1958576.34 in 2004.total expenses increased to 7845122.1 from 2013
to 1723968.1 in 2012.Highest of total income, total expense, total liability, and total assets
showed in the year 2013.

47

BANK INDEX
The CNX Bank Index is an index comprised of the most liquid and large capitalized
Indian Banking stocks. Itcaptures the capital market performance of the Indian banks.The Index
has 12 stocks from the banking sector, which trade on the National Stock Exchange. Following
are given the performance of Bank Index for past 10 years.

CNX BANK INDEX
2003-2013
14000
12000
10000
8000
6000

4000
2000
0

SOURCE:NSE

Moving on the Chart given above it is clear that the Banking industry is growing for past
10 years. During the year 2008 to 2009 Index showed a sudden decline because of the financial
crisis existed those period and later on showed positive movements. Then after the period 2011
to 2012 also showed a declining trend then after also showed positive upward movements.
Graph above showed a V formation, i.e. the index will move upward in coming years
according to the V formation principles.

48

NON PERFORMING ASSET(NPA)
Non-Performing Assets are loans that are in jeopardy of default. Once the borrower has
failed to make interest or principal payments for 90 days the loan is considered to be a nonperforming asset. Non-performing assets are problematic for financial institutions since they
depend on interest payments for income.
Following is the graph showing NPA of Indian banking sector for past 10 years.

NPA
(PERCENTAGE TO TOTAL ASSET)

3

2.5
2
1.5
1
0.5
0
2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

Sheduled commercial banks

Public sector banks

new private sector banks

2008-09

2009-10

2010-11

2011-12

Old private sector banks

Foreign banks

SOURCE:RBI

NPA of banks decreasing over the years. Decreasing NPA shows performance efficiency of
banking sector in India. Following is table showing NPA Ratio of banking industry.

YEAR
NPA
RATIO

200203

200304

200405

200506

200607

200708

200809

200910

201011

201112

9.2

7.5

5.3

3.3

2.5

2.2

2.2

2.4

2.2

2.8

NPA Ratio of 2002-03 was 9.2% and which was decreased to 2.8% in financial year 2011-12.
49

INDUSTRY LIFE CYCLE
Like human beings an Industry also has a life cycle. According to the industry life cycle
theory the life of an industry classified to four stages namely pioneering stage, expansion stage,
stagnation stage, and Decline stage. The profitability of an industry is mostly depends up on the
stage of life cycle in which it stands. Here Deposits, Income earned, Number of offices and
employees, Advances are taken as the variables to find the life cycle of banking industry.
DEPOSITS
Deposits are cheapest sources of loanable funds for banks. Banks business is directly
related with the volume of deposits. Higher the deposit means banks can lend more to needy
people and widen business and earnings.
Following is the chart showing the volume of deposits of banking industry in India for
past 8 years. By looking to the chart it will be clear that the deposits to banks are increasing at an
increasing rate over the period of time. This is a positive signal to banking industry. Deposits of
banking industry will increase in expansion stage of industry life cycle.
DEPOSITS
(Amount in Rs million )

80000000
70000000
60000000
50000000
40000000
30000000
20000000
10000000
0

2005

2006

2007

2008

2009

2010

2011

2012

SOURCE:RBI

50

EARNINGS
Following is the chart showing income of banking industry over past 8 years. Interest
income and other incomes are shown separately. Both are showing increasing trend. During the
stage of expansion the income of banks will increase at an increasing rate.
So the following movements of income of banking industry indicate that industry
currently going through expansion stage.

INCOME OF BANKING INDUSTRY
7000000
6000000
5000000
4000000
3000000
2000000
1000000
0
2004

2005
Interest income

2006

2007

2008

Other income

2009

2010

2011

Linear (Interest income)

2012

2013

2014

Linear (Other income)

SOURCE:RBI

NUMBER OF OFFICES AND EMPLOYEES
Number of offices and employees are also increasing over the period of time. During the
stage of expansion competitors will come to industry and existing companies tends to start new
branches and expand business, this would increase recruitments and employment opportunities.
Following chart indicate the industry is currently passing through expansion stage because both
number of employees and number of offices are increased at an increasing rate over the period of
time.

51

NO OFFICES AND EMPLOYEES
1200000
1000000
800000
600000
400000
200000
0
2004

2005
No. of offices

2006

2007

2008

No. of employees

2009

2010

2011

Linear (No. of offices)

2012

2013

2014

Linear (No. of employees)

SOURCE:RBI

ADVANCES
Making loans and advances are the main business and one of the important sources of
income of banks. So the volume of advances is also influencing the performance of industry.
During the stage of expansion of industry life cycle the business and income will increase, in the
case banking industry advances will increase
ADVANCES
IN MILLION

60000000
50000000
40000000
30000000
20000000

10000000
0
2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

SOURCE:RBI

By analyzing the above variables related to the banking industry it is clear about that
banking industry is passing through Expansion stage.
The above charts states the life cycle of banking industry during financial year 2004 to 2013. By
analyzing above charts we can say that banks are now passing through Expansion stage.
52

Deposits, income, number of offices and employees and advances are increasing at an increasing
rate. And NPA of banking industry showed a decreasing trend. This all proves banking industry
is now in Expansion stage.
RBI REGULATIONS
Repo rate is the rate at which RBI lends to commercial banks, Reduction in Repo rate
helps the commercial banks to get money at a cheaper rate. Reverse Repo rate is the rate at
which RBI borrows money from the commercial banks, increase in Reverse repo rate will
encourage banks to invest with RBI. Cash Reserve Ratio is a certain percentage of bank deposits
which banks are required to keep with RBI in the form of reserves or balances .Higher the CRR
with the RBI lower will be the liquidity in banks.
Following is the chart showing Repo and reverse repo and cash reserve ratio for the past 19
months. Repo rate is decreased to 7.5% in 09/13 from 8% in 03/12. Reverse repo also decreased
from 7.5% in 03/12 to 6.5% in 09/13.Cash reserve ratio decrease from 4.75% in 03/12 to 4% in
09/13. Decrease in repo and reverse repo and CRR will increase the liquidity and business of
banks.

MONETARY POLICY RATES
9 8.5
8.5
8 7.5
7.5
7
6.5
6
5.5 4.75
5
4.5
4
3.5
3

8

8

8

8

7

7

7

7

4.75

4.75

Repo

4.5

7.75
7.75
6.75
6.75

7.5
6.5

4.25

4.25
4

Reverse

7.25

7.25

6.25

6.25

4

4

7.5
6.5

Cash Reserve Ratio

4

4

SOURCE:RBI

53

EFFECT OF NATIONALISATION
The nationalisation of banks in India took place in 1969 by Mrs. Indira Gandhi. Following is the
chart showing the effect of nationalization of banks in india over the period of 1969 to 2012.

EFFECT OF NATIONALISATION
120,000

101,261
100,000

74,563

80,000

64,000

60,570

60,000

40,000

20,000

14,000

15,000

8,262

13,000

0
1969

1991
No. of Bank Offices

2007

2012

Population per office

SOURCE:RBI

By analyzing the above table it would be clear that number of bank offices are increased over the
period and population per office is decreased. Number of bank offices are increased from 8262
from 1969 to 101261 in 2012. And population per office is decreased from 64000 in 1969 to
13000 in 2012.

54

EFFECT OF FINANCIAL SECTOR REFORMS
Following chart showing the effects of financial sector reforms in India over the period from
1990-91 to 2011-12.
120
103
100
82.9 83.21
80

70.2

60

50.6
47.4
36.8
30.8

40

22.9

1990-91

46.7

2007-08

38.1
35

2011-12

26
20.4

16

20
1.95 3 2.9
0
Gross
Gross
Domestic
Domestic
Saving Rate (% Investment
of GDP)
Rate (% of
GDP)

Bank Credit / Broad Money / Net Interest BSE Market
GDP (%)
GDP (%)
Income to Capitalisation
Total Assets
(% of GDP)
(%)

SOURCE:RBI

Gross domestic saving rate showed 22.9% in 1990-91 then increased to 36.8% in 2007-08 and
then decreased to 30.8% in 2011-12. Highest recorded in 2007-08 at 36.8%
Gross domestic investment increased to 38.1% in 2007-08 from 26% in 1990-91 and then
decreased to 35% in 2011-12. Highest is in the year 2007-08 at 38.1%.
Bank credit increased from 20.4% in 1990-91 to 47.4% in 2007-08, again increased to 50.6% in
2011-12. 50.6% in 2011-12 is the highest.
Broad money also showed increasing trend, it increased from 46.7% in 1990-91 to 82.9% in
2007-08 then a slight change to 83.21% in 2011-12.
Net interest income to total asset shows 3% in 2007-08, and decreased to 2.9% in 2007-08
BSE market capitalization highest in 2007-08 at 103% and decreased to 70.2% in 2011-12.

55

INDUSTRY RATIOS

TREND
YEAR

2005

2006

2007

2008

2009

2010

2011

2012

NIIOPERATIG
EXPENSE

165885

190540.1

229361.6

231985.2

356769.6

430672.2

692756.1

874346.7

INTEREST
INCOME

1558010

1856168

2316753

3084823

3884816

4151786

4913407

6550565

OPERATING
PROFIT
MARGIN(%)

10.65

10.27

9.9

7.52

9.18

10.37

14.1

13.35

OPERATING
EXPENSES

501333.4

592640.1

663192.6

772826.5

895814.5

1000279

1231403

1371033

NII+OTHER

1011566

1137035

1322965

1608722

2004788

2223627

2722660

3102782

COST TO
INCOME
RATIO(%)

12.87

42.49
49.56

52.12

50.13

48.04

44.68

44.98

45.23

44.19

LOANS

11508363

15184587

19812363

24769360

29999239

34967200

42974875

50745793

DEPOSIT

18375594

21671165

26969365

33200616

40632011

47469196

56158743

64536642

LOAN TO
DEPOSIT
RATIO(%)

NPA

NET
ADVANCES

80.64
62.62

70.06

73.46

74.60

73.83

73.66

76.52

78.63

1187.46

1021.94

1009.73

1126.17

1366.55

1693.96

1956

2844

22313.26

30336.23

39624.74

49538.73

59998.49

69941.46

85974.08

101491

1.65
NPA
RATIO(%)

5.32

3.37

2.55

2.27

2.28

2.42

2.28

2.8

56

Operating profit margin of banking industry decreased from 2011 to 2012 from 14.1% to
13.35%. It was 10.65% in 2005, it is the highest among the period also.it showing a decreasing
trend for 2013.
Cost to income ratio increased from 2011 to 2012 from 45.23% to 44.19% and it was 49.56% in
2005, highest recorded 52.12% in 2006. it showing a decreasing trend for 2013.
Loan to deposit ratio increased from 2011 to 2012 from 76.52% to 78.63%. It was 62.62% in
2005, and highest recorded 78.63% in 2012. It showing an increasing trend for 2013.
NPA ratio increased from 2011 to 2012 from 2.28% to 2.8%, it was 5.32% in 2005 and highest
recorded in the same year. It showing an decreasing trend for 2013.

57

STATE BANK OF INDIA (SBI)
State Bank of India (SBI) is a Multinational Government owned (62.31%) financial and
banking services company in India. with headquarters in Mumbai, Maharashtra, and Founded 1
July 1956. As of December 2012, it had assets of US$501 billion and 15,003 branches, including
157 foreign offices, making it the largest banking and financial services company in India by
assets. SBI had 14,816 branches of which 9,851 (66%) were in Rural and Semi-urban areas its
revenue was INR 200,560 Crores (US$ 36.9 billion), out of which domestic operations
contributed to 95.35% of revenue in financial year 2012-13. SBI has five associate banks State
Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of
Partial, State Bank of Travancore. Apart from five associate banks it has seven Non-Banking
Financial services. rom its five associate banks, SBI also has the following non-banking
subsidiaries SBI Capital Markets Ltd, SBI Funds Management Pvt Ltd, SBI Factors &
Commercial Services Pvt Ltd, SBI Cards & Payments Services Pvt. Ltd. (SBICPSL), SBI DFHI
Ltd, SBI Life Insurance Company Limited, SBI General Insurance.
COMPETITIVE POSITION
SBI is India’s oldest and largest public sector Bank. With the market capitalization of
Rs.106, 671.68Crore. Net interest income of Rs.cr 119,657.10 and net profit of Rs.cr 14,104.98.
Some of the major competitors for SBI in the banking sector are ICICI Bank, HDFC Bank, Axis
Bank, Bank of India, Punjab National Bank and Bank of Baroda Canara Bank. However in terms
of average market share, SBI is by far the largest player in the market.
BOARD OF DIRECTORS
Chairman
Managing Directors

Mrs Arundhati Bhattacharya
Shri Hemant G
Shri Diwakar Gupta
Shri A. Krishna Kumar
Shri S. Vishvanathan

Debit cards:Debit Card spends of State Bank Group crossed ` 15,000 crores for FY 2012-13
which constitutes over 20% of total Debit Card spends in the industry.
Prepaid Cards:Bank’s range of products include popular Rupee Prepaid Cards like Gift Card,
General Purpose Prepaid Card like eZ-Pay Card and Foreign Travel Card catering to various
payment needs of the customers.
Foreign Travel Card: Foreign travel card providing safety, security and convenience to
overseas travelers.which is now available in eight major currencies US Dollar (USD), Great
Britain Pound (GBP), Euro, Canadian Dollar(CAD), Australian Dollar (AUD), Japanese Yan
(JPY),Saudi Riyal (SAR) and Singapore Dollar (SGD).

59

eZ-Pay Cards:eZ-Pay Cards are aligned with most of the social schemes of State and Central
Governments
Gift Cards:Gift Cards remain the preferred option to customers to gift the ‘freedom of choice’ to
their loved ones
Green Remit Card (GRC):A cardholder can swipe the card at Green Channel Counter or in
Cash Deposit Machines and remit money to the beneficiary whose account number is mapped to
the card. Once the transaction is complete, both the remitter and beneficiary get confirmation
through SMS on their mobile phone.
Mobile banking
Internet banking
MARKET CAPITALIZATION
SBI is India’s Number one bank on the basis of market capitalization, Amounted to
Rs.113,864.29 Crore in 2013.
AREA COVERED
SBI provides a range of banking products through its network of branches in India and
overseas with headquarters in Mumbai, Maharashtra. It has 14 regional hubs and 57 Zonal
Offices that are located at important cities throughout India. And had 14,816 branches in India of
which 9,851 (66%) were in rural and Semi-urban areas In the financial year 2012-13. the bank
had 180 overseas offices spread over 34 countries.
LABOUR CONDITION
SBI is one of the largest employers in the country having 228,296 employees as on 31st
March 2013. Which shows there is no labour scarcity in SBI.
LABOUR CONDITION Rs In Crore

Total Income
Number of Employees
Earning per Employee

2009
76479.78
205896
0.371449

2010
85962.07
200299
0.429169

2011
96329.45
222933
0.4321

2012
120872.9
215481
0.560945

2013
135691.9
228296
0.594368

SOURCE:BLOOMBERG

The table above stated shows the productive quality and availability of labours over past
5 years. It is clear about there is no scarcity of labour and the employed Labours are highly
productive. The number of employees increased by 10.8% from 2009 to 2013, ie 22400

60

additional labours are recruited during the period of time. And Sales per employee increased
from .37 crore in 2009 to .59 crore in 2013, ie an increase of .22 Crore over the period.
RATIO ANALYSIS
NET INTEREST MARGIN

YEAR
NET INTEREST
EARNING ASSETS
NIM(%)

NET INTEREST MARGIN
2009
2010
2011
20873.14
23671.44
32526.40
922860.96 1013888.07 1175194.17
2.26
2.33
2.77

2012
43291.08
1276939.67
3.39

2013
44331.30
1511363.98
2.93

SOURCE:MONEY CONTROL

It is the net interest income earned by the bank on its earning assets.if the non-performing
assets are high, their NIM will go down. So higher the ratio indicate efficiency of firms
investment decision.Here table above shows NIM of SBI is increasing. It rose from 2.26% in
2009 to 3.39%in 2012, and after declined to 2.93% in 2013.
CREDIT TO DEPOSIT

YEAR
ADVANCES
DEPOSITS
CD RATIO

2009
542503.20
742073.13
73.11

CREDIT TO DEPOSIT
2010
2011
631914.15
756719.45
804116.23
933932.81
78.58
81.03

2012
867578.89
1043647.36
83.13

2013
1045616.55
1202739.57
86.94


Higher ratio reflects ability of the bank to make optimal use of the available resources.By
analyzing the above it is clear that Credit to deposit ratio is increasing over the years from
83.13% in 2012 to 86.94% in 2013, and it was 73.11% in 2009.
OPERATING PROFIT MARGIN
2009
2010
2011

YEAR
NII-OPERATING
EXPENSE
2749.48
TOTAL INTEREST
63788.43
OPERATING PROFIT
MARGIN (%)
4.31

2012

2013

-1269.57
70993.92

1095.52
81394.36

5727.99
106521.45

15046.88
119657.10

-1.79

1.35

5.38

12.57


61

Higher the ratio indicate operating efficiency and profitability of banks. Above table
showing a negative ratio of -1.79% in 2010 and afterwards an increasing trend. Ratio increased
to 12.5% in 2013 from 5.38% in 2012.
NON PERFORMING ASEET RATIO

YEAR
NPA
NET
LOANS
NPA
RATIO

2009
189167.00

2010
2011
2012
249214.10
318241.00
496487.00

2013
639874.30

7446465.71

8525942.92

9822982.02

11461589.12

13587430.36

2.54

2.92

3.24

4.33

4.71

SOURCE:BLOOMBERG

NPA Ratio is increasing over the past 5 years 2.54% in 2009 to 4.71% in 2013, and it was 4.33%
in 2012.
YEAR

2009

2010

2011

2012

2013

OPERATING EXPENSE 18123.66

24941.01

31430.88

37563.09

29284.42

TOTAL INCOME

33564.49

38639.59

47461.49

57642.53

60366.14

RATIO (%)

54.00

64.55

66.22

65.17

48.51


cost to income ratio increased from 2009 to 2012 from 54% to 65.17% and then decreased to
48.51% in 2013.
MARKET TEST RATIOS
EARNING PER SHARE(EPS)
Year
2009
2010
2011
Profit available to Equity Share
holders
9121.57 9166.39 7370.69
Number of Equity Shares
63.488
63.488
63.5
EPS
143.67
144.37
116.07

2012

2013

11713.34 14105.32
67.104
68.403
174.55
206.20


EPS increased from 2012 to 2013 from 174.55 to 206.20.it was 143.67 in 2009,then decreased to
116.07 in 2011 and increased to 174.55 in 2012.
62

DIVIDEND PER SHARE(DPS)
Year
Equity Dividend
Number of equity shares
DPS

2009
1841.15
63.488
28.99

2010
1904.65
63.488
30.00

2011
1905
63.5
30

2012
2348.66
67.104
35.00

2013
2838.72
68.403
41.49

DPS showing an increasing trend, increased from 2012 to 2013 from 35 to 41.49. it was 28.99 in
2009. DPS 41.49 is the highest for the period.

YEAR
DPS
EPS
DIVIDENT
RATIO(%)
EARNING
RATIO(%)

DIVIDENT PAY OUT RATIO
2009
2010
2011
29.00
30.00
30.00
143.67
144.38
116.07
PAY
OUT
20.18
20.77
25.84
RETENTION
79.81
79.22
74.15

2012
35.00
174.55

2013
41.50
206.20

20.05

20.12

79.94

79.87

There is no high variations in Dividend payout ratio, bank maintains 20% over the past 5 years.
25.84% is the highest ratio showed in 2011 highest Dividend payout ratio will reduce Earning
retention ratio it showed 74.15%, bank has almost same Earning retention ratio in 2012 and 2013
ie 79%. In 2013 the ratio is 20.12%.
PRICE EARNING RATIO

YEAR
MARKET
PRICE
SHARE(AVG)
EPS
PRICE EARNING RATIO

PRICE EARNING RATIO
2009
2010
2011
PER
1278.80 1954.42 2697.30
143.67
144.38
116.07
8.90
13.54
23.24

2012

2013

2118.58
174.56
12.14

2141.58
206.21
10.39

A high price earning ratio suggest investors expecting high earning growth in future and it shows
how much investors are willing to pay for EPS.Price earning ratio decreased from 2012 to 2013
from 12.14 to 10.39 and it was 8.90 in 2009. 2011 shows high ratio of 23.24 and it is decreased
to 12.14 in 2012.
63

INTRINSIC VALUE
Market value of stock tends towards its intrinsic value. Here the Intrinsic value of
security is higher than the current market price, it indicate that stock is undervalued. It is
advisable to buy the security.
INTRINSIC VALUE
AVG PRICE EARNING RATIO
EXPECTED EPS
INTRINSIC VALUE
CURRENT MARKET PRICE(31 OCT 13)
BUY/SELL

13.63952
156.9784
2141.11
1796.75
BUY

64

BANK OF BARODA(BOB)
BOD is a state owned and second largest Bank in india after state bank of india. Its total
global business was INR 8,021 billion as of 31 March 2013. Its headquarters situated in Baroda,
or Vadodara. Its business also spreads all over the world.
Bank of Baroda is India’s second largest public sector bank operating worldwide. Its
market capitalization is amounts to Rs19,881.69 crore. Its main competitors are SBI,ICICI Bank,
HDFC Bank, Axis Bank, Bank of India, Punjab National Bank and Bank of Baroda Canara Bank
etc.
BOARD OF DIRECTORS
Chairman and Managing Directo

Shri S.S. Mundra

Executive Directors

Shri P. Srinivas
Shri Ranjan Dhawan
Shri Bhuwanchandra B. Joshi

Directors

Shri Alok Nigam
Shri Sudarshan Sen
Shri Vinil Kumar Saxena
Shri V. B. Chavan
Shri Maulin Vaishnav
Shri Surendra Singh Bhandari
Shri Rajib Sekhar Sahoo

Credit cards, consumer banking, corporate banking, finance and insurance, investment
banking, mortgage loans, private banking, private equity, wealth management
Bank of baroda is india’s second largest public sector Bank after SBI with market
capitalization of Rs 19,881.69Crore in 2013.
65

AREA COVERED
BOB provides a range of banking products and services through its network of branches
in India and overseas. with headquarters inBaroda, or Vadodara.The Bank has 100 branches in
24 countries including 61 branches of the bank, 38 branches of its 8 subsidiaries and 2
representative offices in Thailand and Australia. Its total global business was INR 8,021 billion
as of 31 March 2013.Bank of Baroda has received permission or in-principle approval from host
country regulators to open new offices in Trinidad and Tobago and Ghana.
LABOUR CONDITION
Following is the table showing number of employees and earnings per employees over past 5
years.
YEAR
Total Income
Number of Employees
Earning per employee

2009
17849.24
36838
0.484533

2010
19504.7
38960
0.500634

2011
24695.11
40046
0.616669

2012
33096.05
42175
0.784731

2013
38827.27
43108
0.900698

SOURCE:BLOOMBERG

By analyzing the above table number of employees as well as earnings per employee is
increasing over the period.the increased volume of earning per employees showing the
productive capacity of employees. Number of employees are increased by 17%, ie 6270
additional labours are recruited during the period of 2009 to 2013.And productive capacity of
employees also increased from.48 Crore in 2009 to .90 Crore in 2013, ie .42 crore increased
during this period of time.
RATIO ANALYSIS
NET INTEREST MARGIN

YEAR
NET INTEREST
EARNING ASSETS
NIM(%)

NET INTEREST MARGIN
2009
2010
2011
5123.41
5939.48
8802.26
220518.89
271684.73
349871.06
2.32
2.19
2.52

2012
10317.01
434755.23
2.37

2013
11315.26
534978.39
2.12


Higher the ratio indicate efficiency of firms investment decision.Here table above shows
NIM rose from 2.19% in 2010 to 2.52% in 2011, and after declined to 2.12% in 2013 from
2.37% in 2012.

66

CREDIT TO DEPOSIT

YEAR
ADVANCES
DEPOSITS
CD RATIO

2009
143985.9
192396.95
74.83

CREDIT TO DEPOSIT
2010
2011
175035.29
228676.36
241044.26
305439.48
72.61
74.86

2012
287377.29
384871.11
74.66

2013
328185.76
473883.34
69.25


analyzing the above it is clear that Credit to deposit ratio is decreased from 74.66% in 2012 to
69.25% in 2013.
2009
2010
2011

YEAR
NII-OPERATING
EXPENSE
1278.75 1228.25
TOTAL INTEREST
15091.58 16698.34
OPERATING PROFIT
MARGIN (%)
8.47
7.36

2012

2013

3132.38
21885.92

3589.42
29673.72

5368.52
35196.65

14.31

12.10

15.25

showing ratio decreased in 2009 to 2010 from 8.47% to 7.36% and again decreased 2011 to 2012
from 14.31% to 12.10%. in 2013 it is increased to 15.25% from 12.10%.

YEAR
NPA
NET LOANS
NPA RATIO(%)

NON PERFORMING ASSET RATIO
2009
2010
2011
2012
2013
14356.9 21603.7 27847.3 45513.7 64499.8
1372958 1582339 1923001 2203673 2597921
1.05
1.37
1.45
2.07
2.48

SOURCE:BLOOMBERG

Non-performing asset ratio increasing over the years.it increased to 2.48% in 2013 from
2.07% in 2012 and it was 1.05% in 2009.

67


YEAR
OPERATING EXPENSE
TOTAL INCOME
RATIO (%)

2009
2010
2011
3844.66 4711.23
5669.88
7881.07 8745.84
11611.45
48.78
53.87
48.83

2012
6727.59
13739.34
48.97

2013
5946.74
14945.88
39.79

Cost to income ratio showing a decreasing trend, it is decreased from 48.78% in 2009 to
39.79% in 2013. There was an increase in 2009 to 2010 from 48.78% to 53.87%.
Year
2009
2010
2011
holders
2227.2
3058.33 4241.68
36.553
36.553
39.281
EPS
60.93
83.66
107.98

2012

2013

5006.96
41.238
121.41

4480.72
42.252
106.04

EPS decreased from 2012 to 2013 from 121.41 to 106.04, it was 60.93 in 2009. 2012 was
the highest EPS.

Year
Equity Dividend
DPS

2009
2010
2011
383.56
548.29
648.13
36.55
36.55
39.28
10.49
15.00
16.50

2012
701.05
41.24
17.00

2013
908.46
42.25
21.50

DPS showing an increasing trend, it increased from 2012 to 2013 from 17 to 21.50. 2013
is the highest over the period and it was 10.49 in 2009.

68

YEAR
2009
2010
2011
DPS
10.49
15.00
16.50
EPS
60.93
83.67
107.98
DIVIDENT PAY OUT RATIO(%) 17.22
17.93
15.28
EARNING
RETENTION
RATIO(%)
82.78
82.07
84.72

2012
17.00
121.42
14.00

2013
21.50
106.05
20.27

86.00

79.73

Dividend payout ratio increased for the past 5 years except 2012. It increased from 2012
to 2013 from 14% to 20.27%. 20.27% in 2013 is the highest dividend payout ratio and Earning
retention ratio decreased from 2012 to 2013 from 86% to 79.73%, it was 82.78% in 2009.
PRICE EARNING RATIO

YEAR
MARKET
PRICE
SHARE(AVG)
EPS
PRICE EARNING RATIO

PRICE EARNING RATIO
2009
2010
2011
PER
259.44
492.10
840.25
60.93
83.67
107.98
4.26
5.88
7.78

2012

2013

792.60
121.42
6.53

739.71
106.05
6.98

A high price earning ratio suggest investors expecting high earning growth in future and
it shows how much investors are willing to pay for EPS.Price earning ratio increased from 2012
to 2013 from 6.53 to 6.98, it was 4.26 in 2009 and a high price earnig ratio recorded in 2011 to
7.78.
INTRINSIC VALUE
INTRINSIC VALUE
EXPECTED EPS
INTRINSIC VALUE
BUY/SELL

6.284827
96.00915
603.401
642.9
SELL

Market value of stock tends towards its intrinsic value. Here the Intrinsic value of share is
lower than current market price which indicate the stock is overvalued. Advisable to sell the
security.
69

PANJAB NATIONAL BANK
Panjab national bank (PNB) is the 3rdlargest public sector bank in india on the basis of
market capitalization,founded in 1895. based in New Delhi, India. The bank has been ranked
248th biggest bank in the world by the Bankers' Almanac.
Main competitors are SBI,ICICI Bank, HDFC Bank, Axis Bank, Bank of India, Bank of
baroda etc.
BOARD OF DIRECTORS
Chairman & Managing Director

Shri. K.R.Kamath

Executive Director

Smt. Usha Ananthasubramanian
Shri Gauri Shankar

Directors

Shri. Anurag Jain
Shri. B P Kanungo
Shri. M A Antulay
Shri. B B Chaudhry
Shri. Devinder Kumar Singla
Dr. Sunil Gupta
Shri M. N. Gopinath
Shri. Dilip Kumar Saha
Shri. Tara Chand Jhalani

The important products and services of PNB are Credit cards, consumer banking,
corporate banking, finance and insurance, investment banking, mortgage loans, private banking,
private equity, wealth management etc.

70

Panjab National Bank is india’s 3rd largest bank on the basis of market capitalisatio.
Market capitalization is amounts to Rs17,078.07 Crore in 2013.
AREA COVERED
Panjab National Bank has more than 6000 branches including 5 overseas branches,in
Hong Kong, Dubai & Afghanistan and an Offshore Banking Unit (OBU) Branch in
SEEPZ,Mumbai.Punjab National Bank is serving more than 82 million esteemed customers.
LABOUR CONDITION
YEAR

2009

2010

2011

2012

2013

Total Income

22245.85

25032.22

30599.06

40630.63

46109.25

Number of Employees

58205

56928

57020

62127

63292

Earning per Employee

0.382198

0.439717

0.536637

0.653993

0.728516

SOURCE:BLOOMBERG

Number of labours are showing increasing during the period of 2009 to 2013, and the
productive capacity of employees also increasing. 5087 additional labours are recruited during
the period 2009 to 2013. The productive capacity of labours also increased from .38 crore in
2009 to .72 crore in 2013.
RATIO ANALYSIS
NET INTEREST MARGIN

YEAR
NET
INTEREST
EARNING
ASSETS
NIM

2009

NET INTEREST MARGIN
2010
2011

2012

2013

7030.86

8522.89

11807.34

13414.44

14856.51

239501.31
2.93

287799.25
2.96

366960.24
3.21

445232.27
3.01

465756.8
3.18


NIM rose from 2.93% in 2009 to 3.21% in 2011, and increased from 3.01% in 2012 to 3.18% in
2013.

71

CREDIT TO DEPOSIT

YEAR
ADVANCES
DEPOSITS
CD RATIO

2009
154702.99
209760.5
73.75

CREDIT TO DEPOSIT
2010
2011
186601.21
242106.67
249329.8
312898.73
74.84
77.37

2012
293774.76
379588.48
77.39

2013
308725.2
391560.1
78.84

analyzing the above it is clear that Credit to deposit ratio is increasing over the period of 5 years.
It increased from 77.39% in 2012 to 78.84% in 2013. And it was 73.75% in 2009.
2009
2010
2011
2012

YEAR
NII-OPERATING
EXPENSE
2004.05
TOTAL INTEREST
19326.16
OPERATING PROFIT
MARGIN
10.37

2013

2761.53
21466.91

3439.38
26986.48

4008.59
36428.03

6691.46
41893.33

12.86

12.74

11.00

15.97

showing a decrease in ratio from 2011 to 2012 from 12.74% to 11%, then it is increased in 2013
to 15.97%.

YEAR
NPA
NET LOANS
NPA RATIO

2009
2010
2011
2012
2013
10630 24580 23940 72730 84560
15702 19002 23392 29876 31897
57
18
45
08
22
0.68
1.29
1.02
2.43
2.65

Non performing asset ratio increased to 2.65% in 2013 from 2.43% in 2012 and which
was .68% in 2009.

72


YEAR
OPERATING EXPENSE
TOTAL INCOME
RATIO(%)

2009
2010
2011
7,030.86 8,522.89
11,807.34
9,950.55 12,088.20 15,419.92
70.66
70.51
76.57

2012
13,414.44
17,617.04
76.14

2013
14,856.51
19,072.43
77.90

Table above showing increased movement of Cost to income ratio from 70.66% in 2009
to 77.90% in 2013, it was 76.14% in 2012.
Year
2009
2010
2011
Profit available to Equity Share holders 3090.88
3913
4433.5
31.53
31.53
31.681
EPS
98.02
124.10
139.94

2012
4892.08
33.918
144.23

2013
4750.73
35.347
134.40

EPS decreased from 2012 to 2013 from 144.23 to 134.40, it was 98.02 in 2009. 144.23 in
2012 was the highest EPS.
Year
2009
2010
2011
2012
2013
Equity Dividend
630.61
693.67
696.99
746.19
954.38
31.53
31.53
31.681
33.918
35.347
DPS
20.00
22.00
22.00
21.99
27.00
DPS showing an increasing trend, it increased from 2012 to 2013 from 21.99 to 27, and it
was 20 in 2009. DPS of 27 in 2013 is the highest.
YEAR
2009
2010
2011
DPS
20.00
22.00
22.00
EPS
98.03
124.10
139.94
DIVIDEND PAY OUT RATIO(%) 20.40
17.73
15.72
EARNING
RETENTION
RATIO(%)
79.60
82.27
84.28

2012
22.00
144.23
15.25

2013
27.00
134.40
20.09

84.75

79.91
73

Dividend pay out ratio increased from 2012 to 2013 from 15.25% to 20.09% and Earning
retention ratio on the same period decreased from 84.75% to 79.91%. dividend pay out ratio was
20.40% in 2009 and 79.60% of Earning retention ratio showing on the same year.
PRICE EARNING RATIO

YEAR
MARKET
PRICE
SHARE(AVG)
EPS
PRICE EARNING RATIO

PRICE EARNING RATIO
2009
2010
PER
447.47
791.61
98.03
124.10
4.56
6.38

2011

2012

2013

1145.45
139.94
8.19

986.53
144.23
6.84

789.41
134.40
5.87

it shows how much investors are willing to pay for EPS. Price earning ratio decreased from 2012
to 2013 from 6.84 to 5.87 and it was 4.56 in 2009. 2011 shows a high price earning ratio of 8.19.
INTRINSIC VALUE
INTRINSIC VALUE
EXPECTED EPS
INTRINSIC VALUE
BUY/SELL

6.368362
128.1422
816.0559
544.4
BUY

Market value of stock tends towards its intrinsic value. Here Intrinsic value of security is
higher than current market price which indicate the security price is under valued. And advisable
to Buy the security.

74

CANARA BANK
Canara Bank is an Indian state owned bank headquartered in Bangalore, Karnataka. It
was established in 1906by Shri Ammembal Subba Rao Pai, a great visionary and
philanthropist,.The bank also has offices abroad.Today, Canara Bank occupies a premier position
in the comity of Indian banks with an unbroken record of profits since its inception.
baroda, Panjab national Bank etc.
BOARD OF DIRECTORS

Shri. R.K. DUBEY

Executive Directors

Shri. ASHOK KUMAR GUPTA
Shri V. S. KRISHNAKUMAR
Shri. PRADYUMAN SINGH RAWAT

Directors

Dr.RAJAT BHARGAVA
Smt. Meena Hemchandra
Shri. G.V. SAMBASIVA RAO
Shri. G.V. MANIMARAN
Shri. SUTANU SINHA
Shri.BRIJ MOHAN SHARMA
Shri.RAJINDER KUMAR GOEL
Shri.SANJAY JAIN

The important products and services offered by Canara Bank are Investment Banking,
Consumer Banking, Commercial Banking, Retail Banking, Private Banking, Asset Management,
Pensions, Mortgages, Credit Cards etc.

75

Canara bank is the fourth largest bank in india on the basis of market capitalization. The
market capitalization of Canara Bank amounts to Rs 9,418.18 crore in 2013.
AREA COVERED
Canara Bank has a network of more than 3564 branches including abroad. The bank has
offices abroad in London, Hong Kong, Moscow, Shanghai, Doha, and Dubai.
LABOUR CONDITION
years.
LABOUR CONDITION,RS IN CRORE
YEAR
TOTAL INCOME(rs in
crore)
NUMBER
OF
EMPLOYEES
EARNING
PER
EMPLOYEE

2009

2010

2011

2012

2013

16509.05

19546.15

21752.78

25890.99

33800.37

44090

43380

43397

43380

42693

0.37444

0.45058

0.501251

0.596842

0.791708

SOURCE:BLOOMBERG

Number of labours are decreased during the period of 2009 to 2013, and the productive
capacity of employees increased over the period.
RATIO ANALYSIS
NET INTEREST MARGIN
NET INTEREST MARGIN
YEAR

2009

2010

2011

2012

2013

NET INTEREST
EARNING
ASSETS

3537.8

4717.8

5680.53

7823.27

7689.31

174927.65

212656.08

258664.79

326875.2

362726.7

NIM

2.02

2.21

2.19

2.39

2.11


NIM rose from 2.02% in 2009 to 3.39% in 2012, then decreased from 2.39% in 2012 to 2.11% in
2013.
76

CREDIT TO DEPOSIT
CREDIT TO DEPOSIT
YEAR

2009

2010

2011

2012

2013

ADVANCES

107238.04

138219.40

169334.63

212467.17

232489.82

DEPOSITS
154072.42
CD RATIO
(%)
69.60

186892.51

234651.44

293972.65

327053.73

73.96

72.16

72.27

71.09

analyzing the above it is clear that Credit to deposit ratio is increased 69.60% in 2009 to 73.96%
in 2010,and again decreased 72.27% in 2012 to 71.09% in 2013.

YEAR
NII-OPERATING
EXPENSE

2009
2010
2011

2012

2013

-128.5

1721.5

752.56

2402.78

17119.05

18751.96

23064.01 30850.62

4.39

TOTAL INTEREST
14200.74
OPERATING PROFIT
MARGIN (%)
-0.90

776.74

4.14

10.41

5.58

showing ratio increased from 2009 to 2012 from -.90% to 10.41% and then decreased to 5.58%
in 2013.
NON PERFORMING ASSET RATIO
YEAR

2009

2010

2011

2012

2013

NPA

15395.1

16664.3

16664.3

40862

71300.9

NET LOANS

1383221 1664498

2102460

2326857

2424210

0.79

1.75

2.94

NPA RATIO

1.11

1.00

Non performing asset ratio increased to 2.94% in 2013 from 1.75% in 2012. Which was
1.11% in 2009.
77


YEAR
OPERATING EXPENSE
TOTAL INCOME
RATIO

2009
2010
2011
3666.30 3965.24
4903.79
5846.11 7144.90
8681.35
62.71
55.50
56.49

2012
5420.49
10650.25
50.90

2013
5967.81
10639.06
56.09

Cost to income ratio increased from 2012 to 2013 from 50.90% to 56.09%. it was 62.71%
in 2009.
Year
2009
2010
2011
holders
1565.01 2072.42 3021.43
41
41
41
EPS
38.17
50.54
73.69

2012

2013

4025.89
44.3
90.87

3282.71
44.3
74.10

EPS is decreased from 2012 to 2013 from 90.87 to 74.10, it was 38.17 in 2009 and 90.87
in 2012 was the highest.
YEAR
2009
2010
2011
EQUITY DIVIDEND
328
328
410
NUMBER
OF
EQUITY
SHARES
41
41
41
DPS
8
8
10

2012
487.3

2013
487.3

44.3
11

44.3
11

DPS is 11 in 2012 and 2013 there is no change. It was 8 in 2009 and 2010 and increased
to 10 in 2011

78

YEAR
2009
2010
2011
DPS
8
8
10
EPS
38.17
50.55
73.69
15.83
13.57
EARNING
RETENTION
RATIO(%)
79.04
84.17
86.43

2012
11
90.88
12.10

2013
11
74.10
14.84

87.90

85.16

Dividend pay out ratio increased from 2012 to 2013 from 12.10% to 14.84% and the
Earning retention ratio decreased from 87.90% to 85.16%. year 2009 shows highest Dividend
pay out ratio of 20.96 and lowest Earning retention ratio of 79.04%.
PRICE EARNING RATIO

YEAR
MARKET
PRICE
SHARE(AVG)
EPS
PRICE EARNING RATIO

PRICE EARNING RATIO
2009
2010
PER
187.48
328.79
38.17
50.55
4.91
6.50

2011

2012

2013

569.19
73.69
7.72

479.03
90.88
5.27

417.52
74.10
5.63

it shows how much investors are willing to pay for EPS. There is a slight increase in Price
earning ratio from 2012 to 2013 from 5.27 to 5.63, it was 4.91 in 2009 and a high ratio shows
7.72 in 2011.
INTRINSIC VALUE
INTRINSIC VALUE
EXPECTED EPS
INTRINSIC VALUE
BUY/SELL

6.009091
65.47818
393.4644
258.25
BUY

Market value of stock tends towards its intrinsic value. Here the Intrinsic value of
security is higher than current market price, so the security is under priced.it is advisable to Buy
the security.
79

BANK OF INDIA
Bank of India is a state-owned commercial bank with headquarters in Mumbai and
Maharashtra. BOI is India’s 5th largest public sector bank after SBI,BOB,PNB and Canara bank.
It was founded in 1906.
baroda, Canara Bank, Panjab national Bank etc.
BOARD OF DIRECTORS

Smt. V. R.

Executive Director

Shri B P Sharma
Shri Arun Shrivastava
Shri R. Koteeswaran

RBI Nominee Director

Shri P.R. Ravi Mohan

Govt Nominee Director

Shri Anup Wadhawan

Part time non official Director

Shri Bhatia
Shri Kuttappan K. Nair

Officer employee Director

Shri Harvinder Singh

Workmen employee Director

Shri Antonio Maximiano Pereira

Shareholder Director

Shri P. M. Sirajuddin
Shri Bhasin
Shri Khaitan

The important products and services offered by Bank of India are Commercial Banking,
Retail Banking, Private Banking, Asset Management, Mortgages, and Credit Cards etc.

80

Bank of India is the 5th largest bank in India on the basis of market capitalization. The
market capitalization of Bank of India amounts to Rs 8,800.44 crore in 2013.
AREA COVERED
Bank of India has 4322 branches as on 8 August,2013, including 54 branches outside India.
LABOUR CONDITION
years.
YEAR
TOTAL INCOME
NUMBER
EMPLOYEES
EARNING
EMPLOYEE

2009

2010

2011

2012

2013

19399.22

20494.63

24393.49

31801.84

35674.97

40155

39676

39785

44436

42146

0.483108

0.51655

0.613133

0.715677

0.846462

OF
PER

SOURCE:BLOOMBERG

Number of labours are showing increasing during the period of 2009 to 2013, and the
productive capacity of employees also increasing. 1991 additional labours are recruited during
the period 2009 to 2013. The productive capacity of labours also increased from .48 crore in
2009 to.84crore in 2013.
RATIO ANALYSIS
NET INTEREST MARGIN
YEAR

2009

2010

2011

2012

2013

NET INTEREST

9024.00

8313.44

7810.69

5755.95

5498.91

EARNING ASSETS

438816.79

370298.18

336278.59

266801.02

217277.80

NIM

2.06

2.25

2.32

2.16

2.53


Higher the ratio indicate efficiency of firms investment decision. Here table above shows
NIM rose from 2.06% in 2009 to 2.32% in 2011, then decreased to 2.16% in 2012 and again
increased to 2.53% in 2013.
81

CREDIT TO DEPOSIT
CREDIT TO DEPOSIT
YEAR

2009

2010

2011

2012

2013

ADVANCES

142909.37

168490.71

213096.18

248833.34

289367.50

DEPOSITS

189708.48

229761.94

298885.81

318216.03

381839.59

CD RATIO

75.33

73.33

71.30

78.20

75.78

Higher ratio reflects ability of the bank to make optimal use of the available resources.
By analyzing the above it is clear that Credit to deposit ratio increased to 78.20% in 2012 from
75.33% in 2009, then decreased to 75.78% in 2013.
YEAR
NII-OPERATING
EXPENSE

2009

2010

2011

2012

2013

1782.26

333.88

1688.15

1347.62

3692.45

17877.99

21751.72

28480.67

31908.93

1.87

7.76

4.73

11.57

TOTAL INTEREST
16347.36
OPERATING
PROFIT
MARGIN
10.90

showing a decreasing trend of ratio from 2009 to 2012 from 10.90% to 4.73%, then it increased
to 11.57% in 2013.
YEAR

2009

2010

2011

2012

2013

NPA
NET
LOANS

24800.00

48826.50

48296.80

59136.10

87781.90

1372957.54

1582338.88

1923001.08

2203673.19

2597921.37

RATIO

1.81

3.09

2.51

2.68

3.38

NPA ratio decreased from 3.09% in 2010 to 2.51 % in 2011, then increased from 2.68% in 2012
to 3.38% in 2013.
82

YEAR
OPERATING
EXPENSE

2009

2010

2011

2012

2013

3716.65

5422.07

6122.54

6965.82

5331.55

TOTAL INCOME

8550.77

8372.59

10452.46

11634.61

12790.04

RATIO

43.47

64.76

58.58

59.87

41.69

Cost to income ratio is decreased from 2012 to 2013 from 59.87% to 41.69%. it was 43.47% in
2009.
Year

2009

2010

2011

2012

2013

Profit available to equity share holders 3007.35

1741.07

2488.71

2677.52

2749.35


52.591

52.591

54.722

57.452

59.664

EPS

57.18

33.10

45.47

46.60

46.08

A slight decrease in EPS from 2012 to 2013 from 46.60 to 46.08, it was decreased from 57.18 in
2009. And highest EPS was 57.18 in 2009.

Year

2009

2010

2011

2012

2013

Equity Dividend

491.54

428.65

444.3

465.98

697.09


52.591

52.591

54.722

57.452

59.664

DPS

9.34

8.15

8.11

8.11

11.68

DPS increased from 2012 to 2013 from 8.11 to 11.68. and it was 9.34 in 2009 then decreased to
8.15 in 2010. DPS of 11.68 in 2013 is the highest over the period of 5 years.
83

YEAR
2009
2010
2011
DPS
9.35
8.15
8.12
EPS
57.18
33.11
45.48
24.62
17.85
EARNING
RETENTION
RATIO(%)
83.66
75.38
82.15

2012
8.11
46.60
17.40

2013
11.68
46.08
25.35

82.60

74.65

Dividend payout ratio increased from 2012 to 2013 from 17.40% to 25.35% and Earning
retention ratio decreased from 82.60% to 74.65%. year 2013 shows a highest Dividend pay out
ratio of 25.35% and a lowest Earning retention ratio of 74.65%.
PRICE EARNING RATIO

YEAR
MARKET
PRICE
SHARE(AVG)
EPS
PRICE EARNING RATIO

PRICE EARNING RATIO
2009
2010
PER
262.40
345.46
57.18
33.11
4.59
10.43

2011

2012

2013

432.20
45.48
9.50

360.68
46.60
7.74

315.10
46.08
6.84

it shows how much investors are willing to pay for EPS. Ratio decreased from 2012 to 2013
from 7.74 to 6.84, and it was 4.59 in 2009. A highest ratio shows 10.43 in 2010.
INTRINSIC VALUE
INTRINSIC VALUE
EXPECTED EPS
INTRINSIC VALUE
BUY/SELL

7.820805
45.69075
357.3385
209.9
BUY

Market value of stock tends towards its intrinsic value.Here Intrinsic value of security is higher
than current market price which indicate security is underpriced. So, it is advisable to Buy the
security
Following is the table showing summary of Ratio Analysis.
84

CONSOLIDATED RATIOS
YEAR

2010

2011

2012

2013

2.26

2.33

2.77

3.39

2.93

BO B

2.32

2.19

2.52

2.37

2.12

PNB

2.93

2.96

3.21

3.01

3.18

C ANARA

NIM(%)

2009

SBI

2.02

2.21

2.19

2.39

2.11

BO I

2.25

2.32

2.16

2.53

73.11

78.58

81.03

83.13

86.94

BO B

74.83

72.61

74.86

74.66

69.25

PNB

73.75

74.84

77.37

77.39

78.84

C ANARA

69.60

73.96

72.16

72.27

71.09

BO I

C REDIT TO DEPO SIT

2.06

SBI

73.33

71.30

78.20

75.78

4.31

-1.79

1.35

5.38

12.57

BO B

8.47

7.36

14.31

12.10

15.25

PNB

10.37

12.86

12.74

11.00

15.97

C ANARA

-0.90

4.39

4.14

10.41

5.58

BO I

O PERATING PRO FIT MARGIN (%)

75.33

SBI

1.87

7.76

4.73

11.57

2.54

2.92

3.24

4.33

4.71

BO B

1.05

1.37

1.45

2.07

2.48

PNB

0.68

1.29

1.02

2.43

2.65

C ANARA

NPA RATIO (%)

10.90

SBI

1.11

1.00

0.79

1.75

2.94

BO I

3.09

2.51

2.68

3.38

54.00

64.55

66.22

65.17

48.51

BO B

48.78

53.87

48.83

48.97

39.79

PNB

70.66

70.51

76.57

76.14

77.90

C ANARA

62.71

55.50

56.49

50.90

56.09

BO I

C O ST TO INC O ME (%)

1.81

SBI

43.47

64.76

58.58

59.87

41.69

SBI

116.07

174.55

206.20

83.66

107.98

121.41

106.04

PNB

98.02

124.10

139.94

144.23

134.40

38.17

50.54

73.69

90.87

74.10

BO I

57.18

33.10

45.47

46.60

46.08

SBI

28.99

30.00

30.00

35.00

41.49

BO B
DPS

144.37

60.93

C ANARA

EPS

143.67

BO B

10.49

15.00

16.50

17.00

21.50

PNB

22.00

21.99

27.00

8.00

10.00

11.00

11.00

9.34

8.15

8.11

8.11

11.68

SBI

20.18

20.77

25.84

20.05

20.12

BO B

17.22

17.93

15.28

14.00

20.27

PNB

20.40

17.73

15.72

15.25

20.09

C ANARA

20.96

15.83

13.57

12.10

14.84

BO I

16.34

24.62

17.85

17.40

25.35

SBI

8.90

13.54

23.24

12.14

10.39

BO B
PRIC E EARNING RATIO

22.00

8.00

BO I

DIVIDEND PAY O UT RATIO

20.00

C ANARA

4.26

5.88

7.78

6.53

6.98

PNB

4.56

6.38

8.19

6.84

5.87

C ANARA

4.91

6.50

7.72

5.27

5.63

BO I

4.59

10.43

9.50

7.74

6.84

TREND
3.46
2.35
3.07
2.18
2.26
80.56
73.24
76.44
71.82
74.79
4.36
11.50
12.59
4.72
7.37
3.55
1.68
1.61
1.52
2.69
59.69
48.05
74.36
56.34
53.67
156.97
96.00
128.14
65.47
45.69
33.10
16.10
22.60
9.60
9.08
21.39
16.94
17.84
15.46
20.31
13.64
6.29
6.37
6.01
7.82

85

FINDINGS, SUGGESTIONS AND
CONCLUSIONS

86

FINDINGS
ECONOMIC ANALYSIS













GDP of India increasing at an increasing rate over past 10 years and shows an increasing
trend for past 25 years. India contribute 2.97% of world GDP. India is 10 th largest
economy in the world on the basis nominal GDP
Trading sector and finance sectors are the largest contributors of Indian GDP.
Current account deficit of India widening over past 10 years.
Negative foreign exchange reserves of India decreased to a large extent over past 10
years.
Foreign investment inflow increasing for past 10 years and showing a positive trend.
Compared to 2012 inflation rate is low in 2013.
Agricultural production over the past 10 years increasing at a decreasing rate.
Industrial production index showed increasing trend for past 5 years from 2005-06 to
2009-10.
Average lending rate of banks decreased over 5 years from 2008-09 to 2012-13.
Employment opportunities in private and public sector has been increased from 2001-02
to 2010-11
Finance sector is the most competing contributor to Indian GDP, even trading sector
showing highest contribution.

INDUSTRY ANALYSIS












Total income, total expenses, total assets, total liabilities, and bank index of banking
industry increased over past 10 years from 2004 to 2013
Non-performing assets of banking industry decreased over the 10 years from 2002-03
to 2011-12. Which shows 9.2% in 2002-03 and 2.8% in 2011-12.
Increased growth of Deposits, earnings, number of offices and employees and
advances indicating industry now passing through expansion stage of industry life
cycle.
Repo, Reverse repo and Cash reserve ratio of banks decreased past 19 months.
Nationalization increases the number of bank offices and population per office since
1969.
Financial sector reforms results increase savings, investments, credit, and Interest
income and market capitalization of banking industry.
Operating profit margin decreased and trend also decreasing for 2013.
Cost to income ratio decreased and also showing decreasing trend
Loan to deposit ratio increased and also showing increasing trend for 2013
NPA ratio increased in 2012 and showing an decreasing trend for 2013

87

COMPANY ANALYSIS
SBI









SBI is the largest public sector bank in India on the basis of market capitalization and had
180 overseas offices spread over 34 countries. There is no scarcity of labour and
employed labours are highly productive compared to past years.
Credit to deposit ratio, Operating profit margin, NPA ratio, EPS ,DPS are increased and
Dividend payout ratio constant in 2012-13
NIM and Cost to income ratio decreased 2012-13
Price earnings ratio decreased.
NIM ratio, cost to income ratio, dividend payout ratio, and P/E ratio are showing an
increasing trend to 2013-14.
Credit to deposit ratio, operating profit margin, NPA ratio, EPS, and DPS are showing
decreasing trend for 2013-14.
Intrinsic value=2141.11
Current market price=1796.75
Current market price is lower than intrinsic value of security, security is underprized. It is
advised to buy the share.

BANK OF BARODA









Bank of Baroda is the Second largest public sector bank in India on the basis of market
capitalization and has 100 branches in 24 countries. Number of employees and earning
per employee is increased in 2012-13.
Operating profit margin, NPA ratio, DPS are increased in 2012-13
NIM, EPS, Dividend payout ratio, Cost to income ratio, Credit to deposit ratio are
decreased.
Price earnings ratio increased.
NIM, Credit to deposit ratio, and cost to income ratio are showing increasing trend for
2013-14.
Operating profit margin, NPA ratio, EPS, DPS, Dividend payout ratio and P/E ratio are
showing decreasing trend for 2013-14.
intrinsic value =603.401
Current market price is higher than intrinsic value of security, security is overprised. It is
advised to sell the share.

PANJAB NATIONAL BANK



Third largest public sector bank on the basis of market capitalization .It has 5 overseas
branches. Number of employees and productive capacity of employees are increased.
NIM, Credit to deposit ratio, Operating profit margin, NPA ratio, Cost to income ratio
,DPS are increased in 2012-13
88






EPS and Dividend payout ratio are decreased in 2012-13
Price earnings ratio showing decreasing trend for 2013-14.
NIM, credit to deposit ratio, operating profit margin, NPA ratio, cost to income ratio,
EPS, DPS, Dividend payout ratio and P/E ratio showing decreasing trend for 2013-14.

89

CANARA BANK









Number of employees are decreased and earning per employee increased.
NIM, Credit to deposit ratio, Operating profit margin, EPS, Dividend payout ratio,
decreased in 2012-13
NPA ratio, Cost to income ratio increased in 2012-13
No changes in dividend per share in 2012-13
Price earnings ratio increased in 2012-13
NIM, Credit to deposit ratio, cost to income ratio, Dividend payout ratio and P/E ratio are
showing increasing trend for 2013-14.
Operating profit margin, NPA ratio, EPS, and DPS are showing decreasing trend for
2013-14.
Current market price is lower than intrinsic value of security. security is underprized. It is

BANK OF INDIA








Numbers of employees are decreased and earning per employee is increased.
NIM, Operating profit margin, DPS,NPA ratio are increased in 2012-13
Credit to deposit ratio, Cost to income ratio, EPS, Dividend payout ratio are decreased in
2012-13
Price earnings ratio decreased in 2012-13
Cost to income ratio, P/E ratio are showing increasing trend for 2013-14.
NIM, Credit to deposit ratio, Operating profit margin, NPA ratio, EPS, DPS and
Dividend payout ratio are showing decreasing trend for 2013-14.

SUGGESTIONS
Based on the analysis and findings the following suggestions are made.





Long term investment in banking sector is good option for investors, important ratios are
increased in long term like operating profit margin, DPS, Price earnings ratio etc.
Non-monetary factors also should consider while investing
Current trend of market also should consider while making investment
EPS will relieve the market value of the company. If the market value is high the
perception what the investor relating to the company will be high and at the same time
EPS will contribute to the increase in market capitalization.

90














DPS will relieve the Dividend of the company if dividend is high the investors will be
ready to invest more and it result increase market capitalization
P/E ratio reflects the price the investors are willing to pay for every one rupee earnings.
Or a high P/E suggests that investors are expecting higher earnings growth in the future
compared to companies with a lower P/E ratio. Higher the P/E ratio will increase market
capitalization and security price, so it is better to invest on it.
The market value of stock tends to move towards its real value or “intrinsic value” if the
intrinsic value is above the market price investors can buy the shares and if the intrinsic
value is bellow they can sell the shares.
Lower the NPA ratio indicates operational efficiency of Banks, it directly influence
profitability of banks. It is advisable to invest banks with lower NPA ratio
NIM indicates how successful Banks investment decision. A negative ratio indicate firm
did not make an optimum decision i.e. Interest expenses greater than investment returns.
Operating margins are profits earned by the bank on its total interest income. Higher the
ratio will increase market capitalization
If the ratio is too high, it means that banks might not have enough liquidity to cover any
unforeseen fund requirements; if the ratio is too low, banks may not be earning as much
as they could be.
The lower Cost to income ratio will be good for banks, it will increase profitability and
return ratios.
Higher the Dividend payout ratio will increase demand for security and lower will
decrease demand. A stable dividend payout ratio indicates a solid dividend policy by the
company's board of directors.

CONCLUSION
Fundamental analysis argued that no investment decision should take without processing
and analyzing all relevant information. The analysis is based on Analysis of Economy, Industry
as well as Company.
Under this study of fundamental analysis of banking industry the Economic analysis
showing an increased growth of GDP of India over the past 25 years at an increased rate. Which
also showing an increasing trend for coming years. Increased growth of agricultural production,
industrial production index, employment opportunities, foreign investment inflow and lower
lending rate are giving hope to Indian economy. Foreign exchange reserves are coming to
positive. Financial sector is the one of the important contributor of Indian GDP after trading
sector.
Industrial analysis showing an increased growth of total income, expense, liabilities, bank
index, deposits, earnings, number of bank offices & employees, and advances. Which indicating
Banking industry in India is now passing through expansion stage. And the repo rate, reverse
repo rate, CRR is decreased over the years. NPA ratio of banking industry showing an
decreasing trend, loan to deposit ratio increased in the last year and showing an increasing trend,
91

and cost to income ratio also decreased in the last year and showing an decreasing trend.
Nationalization and financial sector reforms are the main reason for the growth of banking sector
in India.
For company analysis Five Banks are selected on the basis of Market capitalization.
Intrinsic value of all banks except Bank of Baroda are underprized and P/E ratio of all banks
except Bank of Baroda showing increasing trend. It indicates that investment in Bank of Baroda
is not viable and other four banks are good for investors, among these four banks SBI showing
Highest P/E ratio and intrinsic value and it would be profitable for investors to invest in SBI.

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BIBLIOGRAPHY
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Prasanna Chandra (2002) “investment analysis and portfolio management”, tata McGraw
Hill,New Delhi
V.K Bhalla “Investment Management”, S. Chand company, Ramnagar, New Delhi

WEBSITES
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http://www.rbi.com
http://www.wikipedia.org
http://www.moneycontrol.com
http://www.investopedia.com
http://www.in.finance.yahoo.com
http://www.nse.com
http://www.worldbank.com
http://www.indiainfoline.com
http://www.tradingeconomics.com

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Fundamental analysis of banking industry

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