A REPORT
ON
Performance of the Indian Banking Industry based on Key Performance Indicators (KPI)

By
INDRANIL NANDI
09BS0000903
OBJECTIVE
Primary objective:
 To identify the key performance indicators
 Compare year over year statistics
 Perform cross analysis between two banks of the same industry
 Interpret key results & financial highlights
 Understand investment opportunities

Secondary objectives:
 To understand the underlying mechanism of two largest banks
 RBI regulations on banking system
METHODOLOGY
Quantitative research on three important performance
indicators i.e
 Key Financial Ratios
 Capital Adequacy Ratios
 Non-Performing Assets

Of two banks viz.

 State Bank of India
 ICICI Bank
 ICICI Bank Financial Highlights

Weaknesse
Strength s
●
High Yield on investments
●
Higher operating profit and
efficiency
Higher interest
●

●
Higher asset utilization rate
Higher employee
rate pain on
productivity borrowed funds
●
Lower NPA’s
State Bank of India Financial Highlights

Weaknesse
Strength s
Lower Cost of Deposits
Higher burden
●
●
●
Higher Net Interest Margins
Higher Interest Spread
of lending
●

●
Higher Return on Equity
Higher Asset to liabilities ratio
Poor quality
●
●
●
Higher Earnings Per Share
Higher Capital Adequacy
advances
●

Ratios
Results
As a investor it is evident from the figures that the
internal environment and external environment of
either banks are different and each behave differently
to the changes in environmental forces. For a stable
and less risk involved investment, State Bank of India
leads the race. But in case of a expectation for higher
return on capital deployed, ICICI Bank shows better
returns and profitability.