1

RATIO ANALYSIS WITH RESPECT TO BANKING SECTOR

Summer Internship Report

By

CHHOTI KUMARI

Under Supervision of Mohd Arshad (Assistant Manager)

Sharekhan India PVT Limited

Noida sector- 18,UP,INDIA

2

To Whomsoever It May Concern

This is to certify that CHHOTI KUMARI Student of MBA 3rd semester at Mangalmay
institute of Management & Technology Greater Noida has done a project work entitled
“Ratio Analysis with Respect to Banking Sector” at our organization (SHAREKHAN
LIMITED) from 4 June 2018 to 6 August 2018.

Mohd. Arshad

(Assistant Manager, sharekhan ltd,sector 18 Noida Branch)

 3

ACKNOWLEDGEMENT

I wish to show my deep sense of gratitude to my corporate guide Mohd. Ashrad, Assistant
Mannager..ShareKhan Pvt. Limited for his support and guidance. Thanks and appreciation to
the helpful employees of Capital First especially for their support and for providing necessary
information during the project work.

Finally, yet importantly, I would like to express my heart full thanks to my beloved parents for
their blessings, my friends and classmates for their help and cooperation extended in this
endeavor of mine and wish me for the successful completion of this project.

-CHHOTI KU ARI
EXAMINATION ROLL NO- 1715270025
4

INTRODUCTION

ABOUT'IHETOPIC:

What is Equity?

Equity is the ownership interest of investors in a business firm. Investors can own Equity shares
in a firm in the form of common stock or preferred stock. Equity ownership in the firm means
that the original business owner no longer owns 100% of the firm but shares ownership with
others. On a company's balance sheet, Ratio is represented by the following accounts: common
stock, preferred stock, paid-in capital, and retained earnings. Ratio can be calculated by
subtracting total liabilities from total assets.

RAJIOANALYSIS:

Stock analysis is a term that refers to the evaluation of a particular trading instrument, an
investment sector or the market as a Whole. Stock analysts attempt to determine the future
activity of an instrument, sector or market. There are two basic types of stock analysis:
fundamental analysis and technical analysis. Fundamental analysis concentrates on data from
sources including financial records, economic reports, company assets and market share.
Technical analysis focuses on the study of past market action to predict future price movement.

Ratio Analysis on Banking Sector

The main aim of this project is to analyze current growth trend of scripts of banking in Ratio
market. Based on the study of Indian economy. Research studies have proved that investments
in some shares with a longer tenure of investment have yielded far superior returns than any
other investment. However, this does not mean all Ratio investments would guarantee similar
high returns. Equities are high-risk investments. One needs to study them carefully before
investing.
5

Since 1990 till date, Indian stock market has returned about 17% to investors on an average in
terms of increase in share prices or capital appreciation annually. Besides that on average
stocks have paid 1.5 °o dividend annually. Dividend is a percentage of the face value of a share
that a company returns to its shareholders from its annual profits. Compared to most other
forms of investments, investing in Ratios hares offers the highest rate of return, if invested over
a longer duration.

Each investment alternative has its own strengths and weaknesses. Some options seek to
achieve superior returns (like equity), but with corresponding higher risk. Other provide safety
(like PPF) but at the expense of liquidity and growth. Other options such as FDs offer safety and
liquidity, but at the cost of return. Mutual funds seek to combine the advantages of investing in
arch of these alternatives while dispensing with the shortcomings. Indian stock market is semi-
efficient by nature and, is considered as one of the most respected stock markets, where
information is quickly and widely disseminated, thereby allowing each security’s price to adjust
rapidly in an unbiased manner to new information so that, it reflects the nearest investment
value. And mainly after the introduction of electronic trading system, the information How has
become much faster. But sometimes, in developing countries like India, sentiments play major
role in price movements, or say, fluctuations, where investors find it difficult to predict the
future with certainty.

Banks are the major part of any economic system. They provide a strong base to Indian
economy as well. Even in the share markets, the performance of banks shares is of agreat
importance.

Thus, the performance of the share market, the rise and the fall of market is greatly affected by
the performance of the banking sector shares and this report revolves around all factors, their
understanding and a theoretical and technical analysis
6

ABOUT SHAREKHAN

Sharekhan is one of the leading retail brokerage of SSKl Group which was running
successfully since 1922 in the country. It is the retail broking arm of the Mumbai-based SSKI
Group, which has over eight decades of experience in the stock broking business. Sharekhan
offers its customers a wide range of Ratio related services including trade execution on BSE,
NSE, Derivatives, depository services, online trading, investment advice etc.

In 2007, CVC (Citi group venture capital part of banking major Citigroup, had a
significant majority stake in the brokerage firm) along with IDFC had invested around Rs 650
crore to pick 85% stake in Sharekhan. This translates into valuation upside of more than 125%
in ten months. CVC owns 75% in Sharekhan while IDFC holds 10% and the management and
employees hold the remaining 15%

This investment is made by CVC and IDFC together which acquired 37% Ratio had owned by
Sharekhan promoter Shripal Morakhia while 48% was acquired from other shareholders
including GE, Intel Capital and some funds advised by HSBC PE India.

The firm’s online trading and investment site www.3harekhan.comwas launched on Feb
8, 2000. The site gives access to superior content and transaction facility to retail customers
across the country. Known for its jargon-free, investor friendly language and high quality
research, the site has a registered base of over one lakh customers. The number of trading
members currently stands at over 5Lacs while online trading currently accounts for just over 2
per cent of the daily trading in stocks in India. Sharekhan alone accounts for 22 per cent of the
volumes traded online.

The content-rich and research oriented portal has stood out among its contemporaries
because of its steadfast dedication to offering customers best-of-breed technology and superior
market information. The objective has been to let customers make informed decisions and to
simplify the process of investing in stocks.
7

On April 17, 2002 Sharekhan launched Speed Trade, a net-based executable application
that emulates the broker terminals along with host of other information relevant to the Day
Traders. This was for the first time that a net-based trading station of this caliber was offered to
the traders. In the last six months Speed Trade has become a de facto standard for the Day
Trading community over the net.

Sharekhan’s ground network includes over 660 branches in 290 cities in India.

Sharekhan has always believed in investing in technology to build its business. The
company has used some of the best-known names in the IT industry, like Sun Microsystems,
Oracle, Microsoft, Cambridge Technologies, Nexgenix, Vignette, Verisign Financial Technologies
India Ltd, Spider Software Pvt Ltd. to build its trading engine and content. The Morakhiya family
holds a majority stake in the company. HSBC, Intel & Carlyle are the other investors.

With a legacy of more than 85 years in the stock markets, the SSKI group ventured into
institutional broking and corporate finance 18 years ago. Presently SSKI is one of the leading
players in institutional broking and corporate finance activities. SSKI holds a sizeable portion of
the market in each of these segments. SSKI’s institutional broking arm accounts for 700 of the
market for Foreign Institutional portfolio investment and 5% of all Domestic Institutional
portfolio investment in the country. It has 60 institutional clients spread over India, Far East, UK
and US. Foreign Institutional Investors generate about 6500 of the organization’s revenue, with
a daily turnover of over US$ 2 million.

The Corporate Finance section has a list of very prestigious clients and has many ‘firsts'
to its credit, in terms of the size of deal, sector tapped etc. The group has placed over US$ 1
billion in private Ratio deals. Some of the clients include BPL Cellular Holding, Gujarat Pipavav,
Essar, Hutchison, Planetasia, and Shopper’s Stop

PRODUCTS OFFERED BY SHAREKHAN

Ratio in online and offline trading.

Portfolio Management Services.

Online and Offline

Trade in Commodities.

Mutual Fund Advisory.

8

REASONS'IOCHOCEESHAREKEMNIMIED:

Experience

SSKI has more than eight decades of trust and credibility in the Indian stock market. In the Asia
Money broker's poll held recently, SSKI won the 'India‘s best broking house for 2004' award.
Ever since it launched Sharekhan as its retail broking division in February 2000, it has been
providing institutional-level research and broking services to individual investor’s.

Technology

With our online trading account you can buy and sell shares in an instant from any PC
with an internet connection. You will get access to our powerful online trading tools that will
help y0u take complete control over your investment in shares.

Accessibility

ShareKhan provides ADVICE, EDUCATION, TOOLS AND EXECUTION servies for investors.
These services are accessible through our centres across the country (Over 588 locations in 148
cities) over the intemet (through the website www.sharekhan.com) as well as over the Voice
Tool.

Knowledge

In a business where the right information at the right time can translate into direct
profits, you get access to a wide range of information on our content-rich portal, Sharekhan.
You will also get a useful set of knowledge-based tools that will empower you to take informed
decisions.

Convenience

You can call our Dial-N-Trade number to get investment advice and execute your
transactions. We have a dedicated call-centre to provide this service via a Toll Free Number
180022-7500 & 1800-22-7050 from anywhere in India.

Customer Service

Our customer service team will assist you for any help that you need relating to
transactions, billing, demate and other queries. Our customer service can be contracted via a
tollfree number, email or live chat on www.3harekhan.com.
9

Investment Advice

Sharekhan has dedicated research teams of more than 30 people for fundamental and
technical researchs. Our analysts constantly track the pulse of the market and provide timely
investment advice to you in the form of daily research emails, online chat, printed reports and
SMS on your mobile phone.

Benefits

Free Depository A/c

Secure Order by Voice Tool Dial-n-Trade.

Automated Portfolio to keep track of the value of your actual purchases.

24x7 Voice Tool access to your trading account.

'Personalized Price and Account Alerts delivered instantly to your Cell Phone &

E-mail address.

Special Personal Inbox for order and trade confirmations. °On-line Customer Service via Web
Chat.

Anytime Order in.

Features of ShareKhan

Online trading account for investing in Ratio and Derivatives via www.3harekhan.com

Live Terminal and Single terminal for NSE Cash, NSE F&O & BSE.

Integration of On-line trading, Saving Bank and Demat Account.

Instant cash transfer facility against purchase & sale of shares.

Competitive transaction charges.

Instant order and trade continuation by E-mail.

Streaming Quotes (Cash & Derivatives).

Personalized market watch.

Sing1e screen interface for Cash and derivatives and more. Provision to enter price trigger and
view the same online in market watch.
10

INDUSIRY PROFILE

INIRODUCIION

The banking section will navigate through all the aspects of the Banking System in India. It will
discuss upon the matters With the birth of the banking concept in the country to new players
adding their names in the industry in coming few years.

The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association (IBA) and top
20 banks like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well defined under three

Separate heads with one page dedicated to each bank.

However, in the introduction part of the entire banking cosmos, the past has been well
explained under three different heads namely:

 History of Banking in India

 Nationalizations of Banks in India
 Scheduled Commercial Banks in India

The first deals with the history part since the dawn of banking system in India. Government
took major step in the 1969 to put the banking sector into systems and it nationalized 14
private banks in the mentioned year. This has been elaborated in Nationalization of Banks in
India. The last but not the least explains about the scheduled and unscheduled banks in India.
Section 42 (6) (a) of RBI Act 1934 lays down the condition of scheduled commercial banks.

The followin: are the Scheduled Banks in India (Public Sector)

 State Bank Of India 0 Central Bank of India

 State Bank of Bikaner and Jaipur
 Corporation Bank
 State Bank of Hyderabad
 Dena Bank
 State Bank of Indore
 Indian Overseas Bank
 State Bank of Mysore
 Indian Bank
 State Bank of Saurashtra
 Oriental Bank of Commerce
11

 State Bank of Travancore

 Punjab National Bank
 Andhra Bank
 Punjab and Sind Bank
 Allahabad Bank
 Syndicate Bank
 Bank of Baroda
 Union Bank of India
 Bank of India
 United Bank of India
 Bank of Maharashtra
 UCO Bank
 Canara Bank
 Vijaya Bank
12

INDUSTRY PROFILE

INTRODUCTION
The banking section will negative through all the aspects of the Banking System in India. It will
discuss upon the matter with the birth of the banking concept in the country to new players
adding their names in the industry in coming few years.

The banker of all banks, Reserve bank of India, the Indian Bank Association and top 20 bank like
IDBI, HSBC, ICICI, ABN, AMRO, etc has been well defined under three separate heads with one
page dedicated to each bank.

However, in the introduction part of the entire banking cosmos, the past has been well
explained under three different heads namely:

 History of Banking in India

 Nationalization of Banks in India
 Scheduled Commercial Banks in India
The first deals with the history part since the dawn of banking systems in India. Government
took major step in the 1969 to put the banking sector into systems and it nationalized 14
private banks in the mentioned year. This has been elaborated in Nationalization of Banks in
India. The last but RBI Act 1934 lays down the condition of scheduled banks in India. Section
42(6) (a) of RBI ACT 1934 lays down the condition of scheduled commercial banks.

The following are the Scheduled Banks in India (Public Sector):

 State Bank of India  Central Bank of India

 State Bank of Bikaner  Corporation Bank
 State Bank of Jaipur  State Bank of saurastra

 State Bank of Hydrabad  Dena Bank

 State Bank of Indore  Indian Overseas Bank

13

 Oriented Bank of Commerce  Andra Bank

 Punjab National Bank  Punjab and sind Bank

 Allahabd Bank  Syndicate Bank

 Bank of Baroda  Union Bank of India

 Bank of India  United Bank of India

 Bank of Mahrastra  UCO Bank

 Canara Bank  Vijaya Bank

The following are the Scheduled Banks in India (Private Sector):

 ING Vysya Bank LTD  HDFC Bank Ltd

 Axis Bank Ltd  Centurion Bank Ltd
 ICICI Bank  Bank of Punjab LTD
 Indusind Bank LTD  IDBI Bank Ltd
 South Indian Bank  Jammu and Kashmir Bank Ltd

The following are the Scheduled Foreign Banks in India :

 American Express Bank Ltd.  Citi Bank N.C

 ANZ Gridlays Bank plc.  Deutsche Bank A.G
 Bank of America NT & SA  Hongkong and Shanghai Banking
Corporation
 Bank of Tokyo Ltd.  Standard Chartered Bank.
 Banquc Nationale de Paris  The Chase Manhattan Bank Ltd.
 Barclays Bank Plc.  Dresdner Bank AG.

Major Banks in India:

 ABN- AMRO Bank  Indian Overseas Bank

14

 Abu Dhabi Bank  Induslnd Bank

 American Express Bank  ING Vysya Bank

 Andhara Bank  J&K Bank

 Allhabad Bank  Jp Morgan Chase Bank

 Axis Bank  Karur Vysya Bank

 Bank of India  Orirntal Bank of Commerce

 Bank of Punjab  Punjab National Bank

 Bank of Rajsthan  Punjab & Sind Bank

 Bank of Ceylon  Scotia Bank

 BNP privas Bank  South Indian Bank

 Canara Bank  Standard Chartered Bank

 Catholic Syrion Bank  SBI

 CBI  State Bank of Bikaner & jaipur

 China Trust & Commercial Bank  State Bank of Indore

 State Bank of Mysore  Dena Bank

 City Union Bank  Taib Bank

 Dhanlakshmi Bank  Development Credit Bank

 Deutsche Bank  UCO Bank
 HSBC  Yes Bank

Organizational Structure of Bank in India

In India banks are classified in various categories according to differ rent criteria. The following
charts indicate the banking structure.
15

Broad Classification of Banks in India:

1) RBI
The RBI is the supreme monetary and banking authority in the country and has the
responsibility to control the banking system in the country. It keeps the reserves of all
scheduled bank and hence is known as the “Reserve Bank”

2) Public Sector Bank

 State Bank of India and its Associates (8)
 Nationalized Banks (19)
 Regional Rural Banks Sponsored by Public Sector Banks (196)

3) Private Sector Banks

 Old Generation Private Banks (22).
 Foreign New Generation Private Banks (8) 0 Banks in India (40)

4) Co-operative Sector Banks:

 State Co-operative Banks

16

 Central Co-operative Banks

 Primary Agricultural Credit Societies 0 Land Development Banks
 State Land Development Banks

5) Development Banks: Development Banks mostly provide long term finance

for setting up industries. They also provide short-term finance (for export and
import activities)

 Industrial Finance Co-operation of India (IFCI)

 Industrial Development of India (IDBI)
 Industrial Investment Bank of India (IIBI)
 Small Industries Development Bank of India (SIDBI)
 National Bank for Agriculture and Rural Development (NABARD)
 Export-Import Bank of India.
17

CHAPTER-3

RESEARCH MEIHODQDGY

Source of data collection

The data has been collected through primary and secondary sources

Primary data

 Discussion with branch manager

 Questioner responses

Secondary data

 Books related to financial management

 Web sites and online data was Vital for secondary data collection

Statistical tool and techniques:

The collected data needed for the analysis are:

 Comparative analysis of balance sheets

 The data has been analyzed through different graphs for the selected banks.
18

OBJECTIVES

The major objectives of the study

 To study and compare the performance of the banks in the banking sector.
 To help the investors for choosing to make their investments in banking sector.
 To calculate the risk-return stock of banking sector.
 To understand the concept of investing in Ratio shares.
 Comparative analysis of 4 selected banks.

SCOPE

The scopes of the project are limited to understanding the basics of fundamental analysis and
technical analysis and apply it to take a decision of investing in banking sector

LIMITATION

 The study is based on the data is given by the investors and the employee which may
not be 100% correct.
 Moreover, very few investors and agents have a detail knowledge of the study.
 The study is confined to only one sector.
 The project has been limited to investment analysis of banking sector only.
19

DATA COLLECTION

Fundamental Analysis:

Fundamental analysis refers to the study of the core underlying elements that influence the
economy of a particular entity. It is a method of study that attempts to predict price action and
market trends by analyzing economic indicators, government policy and societal factors within
a business cycle framework. The fundamental analysis of a company involves the following
parameters:

1. Macroeconomic Analysis

2. Industry Analysis

3. Company analysis

To study the financial performance of the following selected Banks:

1. STATE BANK OF INDIA

2. ICICI BANK LIMITED

3. PUNJAB NATIONAL BANK

4. CANARA BANK

5. BANK OF BARODA

6. BANK OF INDIA
20

Company Proiile

Company Information

Headquarters: Mumbai, India

Year of Incorporation: 1806

Base interest rate: 9.75%

No. of branches: Over 14,000

No. of ATMs: Over 10,000

State Bank of India (SBI) is the India’s oldest and largest bank by revenue, assets and market
capitalization. SBI has launched various cost-effective channels, such as SBI Tiny
Card(biometrically enabled card), Kiosk banking (internet enabled kiosk/computer with
biometric validation) and cell phone messaging channel. The bank also has more than
170branches in ~30 foreign countries, including multiple locations in the US, Canada, and
Nigeria. “The objective of the lending rate cut is to improve demand for assets which in our
view could have a positive cascading effect on related industries”

The State Bank Group includes a network of eight banking subsidiaries and several
nonbanking Subsidiaries The Eight Banking subsidiaries are as follows:

- State Bank of Bikaner and Jaipur (SBBJ)

- State Bank of Hyderabad (SBH)

- State Bank of India (SBI)

- State Bank of Indore (SBIR)

- State Bank of Mysore (SBM)

- State Bank of Patiala (SBP)

- State Bank of Saurashtra (SBS)

21

- State Bank of Travancore (SBT)

Banking segments of SBI

Treasury: Includes investment portfolio and trading in foreign exchange contracts and
derivative contracts.

CORPORATE/WHOLESALE: Comprises of lending activities of Corporate Accounts Group,

Mid Corporate Accounts Group and Stressed Assets Management Group.

Retail: Comprise of branches in National Banking Group, which includes personal

banking activities, including lending activities to corporate customers.

Other Service: NR1 Services ATM Services, Demat Services, E-Pay/E-Rail Broking
Services.

COMPANY PROFILE:

COMPANY INFORMATION:

Headquarters: Vadodra, India

Year of Incorporation: 1994

Base interest rate: 9.75%

No. of branches: Over 2,880

No. of ATMs: Over 10,0

22

BUSINESS OVERVIEW:

 ICICI Bank (Industrial Credit and Investment Corporation of India) was originally
promoted in 1994 by ICICI Ltd.,
 An Indian financial institution ICICI acquired Bank of Rajasthan through a share swap in
a non-cash deal that valued the bank of Rajasthan at aboutRs.3,000 crores on 2013.
This merger added over 450 branches of ICICI to the network
 The bank is currently in talks with Vodafone to bring a concept of e-money into play

“The strategy of focusing on profitability, growth and risk management for fiscal 2015 resulted
in better than the expected results.”

Punjab National Bank

Company Profile

Company Information

Headquarters: New Delhi, lndia

year of lncorporation 1985

Base interest rate 10.50%

No ofbranches 0ver 5,900

No of ATMs Over 6,000

23

Business 0verview:

 Punjab National Bank (PNB) is the largest nationalized Bank in the country in terms of
its branch network, total business, advances, operating profit and low cost CASA
deposits
 Apart form offering banking products, the bank has also taken up Wealth Management
Services such as credit card / debit card; bullion business;
 life/non-life insurance PNB Pre anaand PNB Pragatiare two corporate social
responsibility initiatives undertaken by the bank.

Canara Bank

Company Profile

Company information:

Headquarters: Bangalore, India

Year of Incorporation: 1906

Base interest rate: 10.50%

No of branches: Over 3,600

No of ATMs: Over 3,100

BUSlNESS OVERVIEW:

 Over the years, Canara Bank has been scaling up its market position to emerge as a
major Financial Conglomerate' With as many as nine subsidiaries/sponsored
institutions/joint ventures in India and abroad
 Besides commercial banking, the Bank has also carved a distinctive mark in various
corporate sacral responsibilities areas, namely, serving national priorities, promotin
24

rural development and enhancing rural self-employment through several training

institutes.
 It is the first bank to introduce Centralized Solution for Service Units(CSSU), developed
[ti-house adopting the latest technology in the IT Industry’

COMPANY PROFILE
COMPANY INFORMATION:

Headquarters: Baroda, India

Year of Incorporation: 1908
Base interest rate: 10.50%
No. of branches: Over 4,000
No. of ATMS: Over 1,800

BUSINESS OVERVIEW:

 Bank of Baroda is a 103 year old State owned Bank with a good mix of modern
&contemporary personality, offering banking products and services to large industrial,
SME, retail & agricultural customers across the country
 The Bank has developed an Integrated Global Treasury Solution in its major territories
such as the UK, UAE, Bahamas Bahrain, Honkong, Singapore, Belgium, USA and India to
reduce the cost of operations and improve funds management.
“The Indian banking industry has always been resilient in facing challenges”

BANKOF INDIA
COMPANY PROFILE
25

COMPANY INFORMATION:

Headquarters: Mumbai, India

Year of Incorporation: 1906

Base interest rate: 10.50%

No. of branches: Over 4,000

No. of ATMs: Over 3,000

BUSINESS OVERVIEW:

 Bank of India was founded on 7thSeptember, 1906 by a group of eminent

businessmen from Mumbai. The Bank was under private ownership and control till
July 1969, after which it was nationalized along with 13 other banks
 The Bank has a sizable presence abroad, with a network of 29 branches (including live
representative office) at key banking and financial centers such as London, New York,
Paris, Tokyo, Hong-Kong an Singapore. International business accounts for around
17.82% of the Bank's total business
 The bank is always looking forward to being more consumers centric and reaching out
especially in the rural belts of the country.
26

DATA ANALYSIS AND INTERPRETATION

NET PROFIT MARGIN RATIO

TABLE 1.1

Profit margin ratio 2014 2015 2016 2017

STATE BANK OF 12.03 10.54 8.55 9.73
INDIA
ICICI BANK LTD 9.74 12.17 15.91 16.14
PNB BANK 13.76 15.64 14.56 12.09
CANARA BANK 9.61 10.89 13.77 15.65
BANK OF BARODA 12.86 15.37 17.18 15.37
BANK OF INDIA 13.96 15.89 8.59 10.25

20

18

16

14

12
Series1
10
Series2
8 Series3
Series4
6

0
STATE INDIA ICICI PNB CANARA BANK OF BANK OF
BANK OF BANK LTD BANK BANK BARODA INDIA
27

INURPRETION:

The net profit margin is a good way of comparing companies in the same industry, since such
companies are generally subject to similar business conditions. However, the net profit margins
are also a good way to compare companies in different industries in order to gauge white:
industries are 1elatively m01e profitable. Also called net margin. A higher profit margin
indicates a more profitable company that has better control over its costs compared to its
competitor’s Profit margin. The profit margin-ratio, also known as the operating performance
ratio, measures the company’s ability to turn its sales into net income. To evaluate the profit
margin, it must be compared to competitors and industry statistics. It is calculated by dividing
net income by net sales

STATE BANKOF INDIA:

In chart shows decreasing trend till 2014 and from 2015 it shows increasing trend.
28

ICICI BANK:

Its shows increasing trend . In 2016-2017 it has slightly increase which indicate more profit
margin.

PUNJAB NATIONAL BANK: Every year its fluctuating but only in 2014 in increasing.

CANARA BANK: It shows increasing trend at increasing rate.

BANK OF BARODA: It has increasing till 2014 but in 2015 it has decreasing.

BANK OF INDIA: Every year it has fluctuated.

DIVIDEND PAYS OUT RATIO:

DIVIDEND PAYOUT RATIO NET PROFIT 2014 2015 2016 2017

STATE BANK OF INDIA 22.90 23.36 26.03 22.59
ICICI BANK 36.60 37.31 35.23 32.82
PUNJAB NATIONAL BANK CANNARA BANK 23.86 20.74 18.27 17.75
CANARA BANK 24.53 18.51 15.88 14.09
BANK OF BARODA 17.22 20.90 17.76 16.22
BANK OF IONDIA 12.23 1634 24.61 17.85

40

35

30

25

20 Series1
Series2
15
Series3
10 Series4

0
STATE BANK OF ICICI BANK PUNJAB CANARA BANK BANK OF BANK OF
INDIA NATIONAL BANK BARODA IONDIA
CANNARA BANK
29

INTERPRETION:

The part of the earnings not paid to investors is left for investment to provide for future w
growth. Investors seeking high current income and limited capital growth prefer companies
with high Dividend payout ratio. However investors seeking capital growth may prefer lower
payout ratio because capital gains are taxed at a lower rate. High growth firms in early life
generally have low or zero payout ratios. As they mature, they tend to return more of the
earnings back to investors.

STATEBANKOF INDIA: There is a slightly increase inyear 2015 and decrease in 2016

ICICI BANKLTD: There is a decrease from year 2014 to 2016.

PUNJAB NATIONALBANK: There is decreasing trend in the following year

CANARA BANK: There is decreasing trend at faster rate

BADKOF BARODA: There is decrease in the year from 2014

BANKOFINDIA: There is increasing trend before the year 2015 but decrease in year 2016.

EARNINGPERSHARE:

EARNING PER SHARE 2014 2015 2016 2017

STATE BANK OF INDIA 143.67 144.37 116.07 174.15
ICICI BANK LTD 33.76 36.10 44.73 56.09
PUNJAB NATIONAL BANK 98.03 123.86 139.94 144
CANARA BANK 38.17 50.55 73.69 90.88
BANK OF BARODA 61.14 83.96 108.33 121.79
BANK OF INDIA 57.26 33.15 45.54 46.66
30

200

180

160

140

120

100 Series1
Series2
80
Series3
60
Series4
40

20

0
STATE BANK ICICI BANK PUNJAB CANARA BANK OF BANK OF
OF INDIA LTD NATIONAL BANK BARODA INDIA
BANK

INTERPRETION:
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. Earnings per share are
generally considered to be the single most important variable in determining a share’s price. It
13 also a major component used to calculate the price-to-earnings valuation ratio

This chart shows that all selected banks are increasing; STATE BANK OF INDIA reduced 144 m
year 2014 to 116 in yr2015 then again by 58 in year 2016. ICICI BANK, PUNJAB NATIONAL BANK,
CANARA BANK, BANK OF BARODA Shows increasing trend but again bank of India reduced in
year 2015 then again increase gradually from year 2016.
31

DIVIDEND PER SHARE:

Dividend per Share 2014 2015 2016 2017

STATE BANK OF INDIA 29 30 30 35
ICICI BANK LTD 11 12 14 16.50
PUNJAB NATIONAL BANK 20 22 22 22
CANARA BANK 8 8 10 11
BANK OF BARODA 9 15 16.50 17
BANK OF INDIA 4 8 7 7

45,000.00

40,000.00

35,000.00

30,000.00

25,000.00
Series1
20,000.00 Series2

15,000.00 Series3
Series4
10,000.00

5,000.00

0.00
STATE BANK ICICI BANK PUNJAB CANARA BANK OF BANK OF
OF INDIA LTD NATIONAL BANK BARODA INDIA
BANK

INTERPRETION:
The sum of declared dividends for every ordinary share issued. Dividend per share (DPS) is the
total dividend paid out over an entire year (including interim dividend but not including special
dividends) divided by the number of out siding ordinary shares issued in this chart indicates a
positive trend as all are increasing expect Bank of India.
32

DIVIDEND PER SHARE

Current Ratio 2014 2015 2016 2017

STATE BANK OF INDIA 0.04 0.14 0.04 0.04
ICICI BANK LTD 0.13 0.02 0.11 0.03
PUNJAB NATIONAL BANK 0.02 0.02 0.03 0.02
CANARA BANK 0.02 0.02 0.01 0.02
BANK OF BARODA 0.02 0.02 0.02 0.13
BANK OF INDIA 0.02 0.03 0.02 0.05

45,000.00

40,000.00

35,000.00

30,000.00

25,000.00
Series1
20,000.00 Series2
15,000.00 Series3
Series4
10,000.00

5,000.00

0.00
STATE BANK ICICI BANK PUNJAB CANARA BANK OF BANK OF
OF INDIA LTD NATIONAL BANK BARODA INDIA
BANK

INTERPRETION:
A liquidity ratio measure a company’s ability to pay short-term obligations.

This diagram indicates that is frequent flections expect State Bank of India and Bank of India
and Bank of Baroda which has gradually increase in year 2017.
33

QUICK RATIO:

QUICK Ratio 2014 2015 2016 2017

STATE BANK OF INDIA 5.74 9.07 8.50 12.05
ICICI BANK LTD 5.94 14.70 15.86 16.71
PUNJAB NATIONAL BANK 9.75 20.47 22.24 23.81
CANARA BANK 9.17 11.29 26.98 30.86
BANK OF BARODA 9.62 21.88 26.38 28.00
BANK OF INDIA 11.63 12.30 22.15 19.06

45,000.00

40,000.00

35,000.00

30,000.00

25,000.00
Series1
20,000.00 Series2

15,000.00 Series3
Series4
10,000.00

5,000.00

0.00
STATE BANK ICICI BANK LTD PUNJAB CANARA BANK BANK OF BANK OF
OF INDIA NATIONAL BARODA INDIA
BANK

INTERPRETION:
An indicator of a company’s short-term liquidity. The quick ratio measure a company’s ability to
meet its short-term obligations with its most liquid assets The higher the quick ratio, the better
the position of the company.

In this graph indicates increasing or positive trend except Bank of India which shows the
downfall in the year 2017.
34

SHOW THE GROSS NON-PERFORMING ASSETS:-

GROSS NON- 2014 2015 2016 2017

PERFORMING ASSETS
STATE BANK OF INDIA 15,714.00 19,534.89 25,326.29 39,676.46
ICICI BANK LTD 9,649.31 9,480.65 10,034.26 9,475.33
PUNJAB NATIONAL BANK 2,506.90 3,214.41 4,379.39 8,719.62
CANARA BANK 2.167.97 2,590.31 3,137.36 4,031.75
BANK OF BARODA 1,842.92 2,400.69 3,152.50 4,464.75
BANK OF INDIA 2,470.88 4,882.65 4,811.55 5,893.97

45,000.00

40,000.00

35,000.00

30,000.00

25,000.00
Series1
20,000.00 Series2
15,000.00 Series3

10,000.00 Series4

5,000.00

0.00
STATE BANK ICICI BANK PUNJAB CANARA BANK OF BANK OF
OF INDIA LTD NATIONAL BANK BARODA INDIA
BANK

DATA INTERPRETION:-

A debt obligation where the borrower has not paid my previously agreed upon interest and
principle repayments to the designated lender for an extended period of time. The period of
time. The nonperforming asset is therefore not yielding any income to the lender in the form of
principle and interest payments. This graph shows a positive trend for every selected bank
except ICICI BANK LTD which shows fluctuations in every year.
35

FINDINGS
From the data analysis and interpretations of the ratios of six selected banks the following
findings have been given:

1. State bank of India: » In net profit margin ratio, it has decrease in year from 10.54 to 8.55
i.e. 1.99 times and again it has increased in 2017 1.18 times. In dividend payout ratio it has
gradually increase in year 2010 by 0.46 times, in tear 2016 by 2.67 times which has reduced
again in year 2017 by 3.47 times. Earnings per share have increase in year 2017 by 58.08 times
which has decrease in year 2016 by 28.30 times. Dividend per share and Non-performing assets
has also increase in every year. Current ratio has increase from 0.1 times in year 2017 and quick
ratio has also frequently increases.

2. ICICIBANKLTD: -net profit margin, it has gradually increases in every year. In 2015 dividend
payout ratio increases by 1 times but again it slowly it starts decreasing. Earnings per share,
dividend per share & quick ratio increases frequently in every year. Current ratio there is
frequent fluctuations. Non-performing assets fluctuates in every year.

3. PUNJAB NAHONAL BANK:- From year 2013 net profit margin has gradually increase but in
year 2017 it has reduced to 2.47 times. Dividend payout ratio has decreased in every year
frequently but Earning per share, Dividend per share, Quick ratio& Non-performing assets has
increase frequently in every year. Current ratio has increase in year 2016 by 0.01 times and
remains same in every 3 years.

4. CANARA BANK: -net profit margin ratio, Earnings per share has frequently increased in every
year but dividend payout ratio has decreased gradually in every year. Dividend per share
increases by 1 times in year 2017. In 2016 current ratio has decrease by 0.01 times and remains
same in all the 3' years. Quick ratio has increases slowly in every year.

5. BANKOF BARODA: -net profit margin ratio has slowly increases in year 2013 but in 2017 it
has decreases by 2 times in year 2017 dividend payout ratio has frequent fluctuates in every
year. Earnings per share Quick ratio, dividend per share& Non-performing assets has increases
slowly in every year. Current ratio increases in year 2017 by 0.01 times.

6. BANK OF INDIA:- Net profit margin ratio has gradually increase but in year 2016 it has
reduced to 7 times and again it has increase. Dividend payout ratio has slowly increased but in
2017 it decreases by 7 times. Earnings per share have decrease in year 2013 by 24 times and
again started increasing. Dividend per share has increased by 4 times in year 2015 and form
year 2016 it started decreasing. Current ratio has frequent fluctuations by 0.01 times and quick
ratio has increases every year slowly. Non -performing assets has increases in every year.
36

CONCLUSION

 The economic growth of the country is an apt indicator for the growth of the banking
sector. The Indian economy is projected to grow at a rate of 5-6 percent34 and the
country‘s banking industry is expected to reflect this growth.

 The onus for this lies in the capabilities of the Reserve Bank of India as an able central
regulatory authority. Whose policies have shielded Indian banks from excessive
leveraging and making high risk investments?

 During 2011-12, majority of public sector banks failed to meet the priority sector target.
Though at an aggregate level, foreign banks’ performance was better as compared to
domestic banks; bank-wise data revealed that some foreign banks also failed to meet
the priority sector lending target.

 Performance of banks during 2011-12 was conditioned by slowdown in the domestic

economy coupled with higher interest rate environment.

 There are emerging challenges, which appear in the forms of consolidation;

recapitalization, prudential regulation weak banks, and non-performing assets, legal
framework etc. needs urgent attention. The paper concludes that, from a regulatory
perspective, the recent developments in the financial sector have led to an appreciation
of the limitations of the present segmental approach to financial regulation and favors
adopting a consolidated supervisory approach to financial regulation and supervision,
irrespective of its structural design.

 The Indian banking sector has been relatively well shielded by the central bank and has
managed to sail through most of the crisis. But, currently in light of slowing domestic
GDP growth, persistent inflation, asset quality concerns and elevated interest rates, the
investment cycle has been wavering in the country.
37

The following articles from internet have been used for the study purpose:

(A)www.nseindia.com

(b) www.bseindia.com

(c) www.sharegyan.com

(d) www.moneycontrol.com

(e) www.statebankofindia.com

(f) www.icicibank.com

(g) www.punjabnationalbank.com

(h) www.canarabank.com

(i)www.bankof1ndia.com

(j) www.bankofbaroda.com

(k) Guidance from company mentor Mr. Aatish Gupta

(l) http://www.indiainfoline.com/Markets/News/Indian-Bankin -ector-Outlook-20 l 5-Dun-and-

Bradstreet/5571598340

(m) www.livemint.com
38

Questioner for used to collect data

Que : What is name of Bank ?

Ans :

Que : In which year bank was Incorporated?

Ans :

Que : Where is headquartered located?

Ans :

Que :Total number of Branch Across India?

Ans:

Que : Number of ATM associated in India ?

Ans:

Que: What was net profit margin in year :

2013

2014

2015

2016

2017