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    CBM Group Assignment

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    Anand
    The document outlines an assignment for analyzing an Indian bank. It instructs student groups to: 1) Choose an Indian bank to study. 2) Provide an overview of the Indian banking industry and chosen bank. 3) Calculate various financial ratios for the bank over the last 5 years to analyze performance. 4) Analyze the bank's liquidity, credit, and asset-liability management risks. 5) Assess the bank's compliance with Basel III standards. 6) Value the bank using stock market data and compare to peers. 7) Recommend a future strategy.

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    CBM Group Assignment

    Uploaded by

    Anand
    57 views1 page
    The document outlines an assignment for analyzing an Indian bank. It instructs student groups to: 1) Choose an Indian bank to study. 2) Provide an overview of the Indian banking industry and chosen bank. 3) Calculate various financial ratios for the bank over the last 5 years to analyze performance. 4) Analyze the bank's liquidity, credit, and asset-liability management risks. 5) Assess the bank's compliance with Basel III standards. 6) Value the bank using stock market data and compare to peers. 7) Recommend a future strategy.

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    Cbm Group Assignment

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    The document outlines an assignment for analyzing an Indian bank. It instructs student groups to: 1) Choose an Indian bank to study. 2) Provide an overview of the Indian banking industry and chosen bank. 3) Calculate various financial ratios for the bank over the last 5 years to analyze performance. 4) Analyze the bank's liquidity, credit, and asset-liability management risks. 5) Assess the bank's compliance with Basel III standards. 6) Value the bank using stock market data and compare to peers. 7) Recommend a future strategy.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    57 views1 page

    CBM Group Assignment

    Uploaded by

    Anand
    The document outlines an assignment for analyzing an Indian bank. It instructs student groups to: 1) Choose an Indian bank to study. 2) Provide an overview of the Indian banking industry and chosen bank. 3) Calculate various financial ratios for the bank over the last 5 years to analyze performance. 4) Analyze the bank's liquidity, credit, and asset-liability management risks. 5) Assess the bank's compliance with Basel III standards. 6) Value the bank using stock market data and compare to peers. 7) Recommend a future strategy.

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    of 1

    GROUP ASSIGNMENT

    1. Group Formation: Each group will choose one bank.

    2. Knowing the Banking Industry: An overview of the structure of Banking industry in India
    (preferably a SWOT Analysis). Top 5 players, recent trends, critical issues like level of NPA/
    Stressed assets, CDR, BASEL III guidelines adoption issues, governance and ownership issues etc

    3. Knowing your Bank: The group needs to write about the Bank in terms of year of formation,
    the current CEO, Board structure, number of branches, number of employees, size of the
    Balance Sheet, growth rate (deposits and Credit in last 5 years) a general understanding of the
    significant items in the Financial Statements, Corporate or wholesale versus Retail, exposure to
    various industry sectors, top 10 borrowers (industry wise, group wise), top 10 depositors etc,
    share holding pattern

    4. Analyzing your Bank Performance: Calculate the following ratios for the Banks for the last 5
    years:
    Ratios are: Proportion of CASA in total deposits over years, Proportion of Loans/ Investments to
    total Assets, Retail vs Corporate Exposure (last 5 years trend) CoF, YoA, Net Interest Margin,
    SPREAD, Return on Assets, Burden, Efficiency Ratio, Credit Risk (Net NPAs/ Total Assets), Capital
    Adequacy Ratio, proportion of revenue coming from Non-interest Income, Trends in Non-
    interest expense, Exposure to Sensitive Sectors.

    5. Analyzing the Risk


    (a) Liquidity Risk: Both Stock Approach and Cash Flow approach to be used. Also NSFR and LCR
    to be estimated
    (b) Credit Risk: A detailed study on trends in Provisioning and NPA (major sectors, borrowers
    and the trend, experiences with ARC, CDR etc)
    (c) ALM Risk: Interest Rate Sensitivity Statement and any major changes in the same

    6. BASEL III Compliance and Preparedness: CAR, Tier I capital etc

    7. Valuation of the Bank: Stock Market Valuation of the Bank, compared to peers, industry
    average, what is driving or pulling down the valuation etc. Long term view / Short term view.
    Major trends like IPO, Rights, Buy back etc in last 5 years

    8. Future Road Map: what according to you should be the strategy of the Bank on their focus
    areas of the right Asset Mix, Operations, Marketing and Growth.

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