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SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT OF FIVE MAJOR PLAYERS IN BANKING SECTOR

MAJOR PROJECT REPORT


Submitted by AZHAR K.P UNDER THE GUIDANCE OF Mr.BIJU M.K. Sr. Lecturer In partial fulfillment of the requirement for the Degree of MASTER OF BUSINESS ADMINISTRATION University of Calicut

DEPARTMENT OF MANAGEMENT SCIENCE

MES COLLEGE OF ENGINEERING


(Affiliated to University of Calicut) KUTTIPURAM, KERALA, INDIA 2010

Project Report 2010 Cochin Stock Exchange

DEPARTMENT OF MANAGEMENT SCIENCE MES COLLEGE OF ENGINEERING KUTTIPPURAM, KERALA PIN: 679573 (AFFILIATED TO UNIVERSITY OF CALICUT)

CERTIFICATE . . . . . . . . . ..

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DECLARATION
I hereby declare that this project report titled Security analysis and Portfolio Management of Five major players in Banking Sector is the original work done by me under the guidance of BIJU M.K, faculty, MES College of Engineering, Kuttipuram and submitted to the Calicut University in the partial fulfilment of the requirement of the Master of Business administration degree. I further declare that this report has not been submitted earlier either to this institution or any other institution for the fulfilment of the requirement for any course of studies. I also declare that no chapter of this manuscript in whole or in part is lifted and incorporated in this report from any earlier work done by others or me.

Date: Place: Kuttipuram K.P Azhar

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ACKNOWLEDGEMENT

Behind every successful effort, there lies a contribution from numerous sources irrespective of their magnitude. My project is no exception and I take this opportunity to express my sincere thanks to those helping hands wholeheartedly. First and foremost I thank God for his almighty support and mercy drop of blessings upon me to complete my project successfully. The satisfaction that accompanying the successful completion of the task would be incomplete without mentioning the people who made it possible with the constant guidance and encouragement all through the period of study. I am indebted to my Project Guide Mr. Biju M.K (Faculty Guide), and all other faculties and staff members of Department Of Management science for their valuable suggestions and sincere co-operation rendered to me during the academic period. I am profoundly thankful to Shri. Thomas George M.A GDIM (UK) PhD (External Guide), Cochin Stock Exchange who was generous with time and effort to explain the theoretical and practical aspects of Security Analysis and Portfolio Management. I wish to pay my gratitude to my parents without whose support and inspiration, this project would have remained a dream. Last but not least; I take this opportunity to thank all my friends and others who have helped me directly or indirectly for the successful completion of the project. AZHAR K.P

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TABLE OF CONTENTS

SERIAL NO List of Tables List of Charts 1

LIST OF CONTENTS

PAGE NO

Chapter I INTRODUCTION Introduction to Study Objective of the Study Statement of the Problem Significance of the Study Scope of the Study 2-3 3-4 4 4 5 6-21 22-27 28-31 32-43 44-103 104-110 111-112 113-123

2 3 4 5 6 7 8 9

Chapter II Industry Profile Chapter III Company Profile Chapter IV Literature Review Chapter V Research Methodology Chapter VI Analysis and Interpretation Chapter VII Findings, Suggestions and Conclusion Chapter VIII Bibliography Chapter IX Annexure

EXECUTIVE SUMMARY
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Project Report 2010 Cochin Stock Exchange

This study was carried out at Cochin Stock Exchange during the month of May 2010. The report is an outcome of a study undertaken in CSE on the topic Security Analysis and Portfolio Management of five major players in Banking Sector. Out of the ten companies, which were taken on the basis of market capitalization from the BSE list and ranked accordingly, five were selected to conduct a detail study. The banks selected for the study are State Bank of India, ICICI Bank, Punjab National Bank, AXIS Bank and HDFC Bank. Indian banking companies is analyzed by taking up fundamental analysis and technical analysis along with creating different mix of portfolio within the selected securities. Fundamental analysis involves finding the intrinsic value of the selected banking shares. It is also done to indentify the misprice share there by assisting the prospective investor in making the buy or sell decision. Technical analysis was conducted to find the movement of stock price over the period of time. Mathematical indicators used for Technical Analysis are Exponential Moving Average, ROC and MACD. It is rare to find investor investing their entire savings in a single security. Instead, they tend to invest in a group of securities called portfolio. Creation of portfolio helps to reduce risk without sacrificing returns. Portfolio was constructed on the basis of Equal Weight, PE Ratio and Market Capitalization. To find the optimal Portfolio Sharpe and Treynor Ratio were used to evaluate the Portfolio.

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All the data collected are secondary. The data were absorbed from websites, magazines and books. For conducting Fundamental Analysis five years data were taken. Technical analysis was conducted with eighteen months of data. Portfolio was constructed on the basis of five years of data. Fundamental Analysis revealed that all the banks have shown consistently good performance and the performance is improving every year. Therefore the performances of all these banks are likely to be much better in the years to come. After analysing the Mathematical indicators it was found that most of the companies are in bullish trend. After evaluating the three portfolios which were constructed with the different proportions of the five selected securities and measuring performance based on Sharpe and Treynor Ratios, it has been found that, the portfolio based on P/E Ratio ranks highest. From the overall study it is found that Banking Industry is booming in India and it is the best time to invest in banking industry. It is viable for investors to invest in the sector on a long term basis.

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CHAPTER I INTRODUCTION

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INTRODUCTION TO THE STUDY


The banking scenario has witnessed significant development in the recent years with the entry of private banks and their focus on retail banking and convergence of services. The ongoing reforms process, growing use of technology, increased competition and product innovation has all put the banking sector on a high growth trajectory. Advancement in communication and information technology has facilitated growth in internet banking, ATM network, and Electronic transfer of funds and quick dissemination of information. Structural reforms in the banking sector have improved the health of the banking sector. The forms recently introduced include the enactment of the Securitization Act to step up loan recoveries, establishment of asset reconstruction companies, initiatives on improving recoveries from Non-performing Assets(NP As)and change in the basis of income recognition has raised transparency and efficiency in the banking system. Spurt in treasury income and improvement in loan recoveries has helped Indian Banks to record better profitability. In the year 2002, return on assets in Indian banking was higher compared to many emerging economies and the Moody's Bank Financial strength Index (2002) placed India at 27.5, which is much better than 16.7 of Korea, 15.8 of Thailand and 12.5 of Japan. Similar to experience in other rapidly growing countries, India is making sizable gains in expanding into consumer credit with tightening of credit administration procedures. Major policy actions that led to sharp fall in the interest rates enabled banks to post significant rise in operational profits. For instance trading profits of the public sector banks shot up by Rs.3749 crores taking their net profits to an all time high of Rs.8301 crores in FY02.The enactment of Securitization Bill offered great opportunities to set up loan recoveries that could further enhance the scope of greater profitability. These developments have impacted the performance of bank stocks significantly and the bank stocks are emerging as a major segment in the equity market. The project titled Security Analysis and Portfolio Management of Five Major Players in Banking Sector is an attempt to analyze the Indian banking companies by
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taking up fundamental analysis and technical analysis along with creating different mix of portfolio within the selected securities. Fundamental analysis involves finding the intrinsic value of the selected banking shares. It is also done to indentify the misprice share there by assisting the prospective investor in making the buy or sell decision. It is rare to find investor investing their entire savings in a single security. Instead, they tend to invest in a group of securities called portfolio. Creation of portfolio helps to reduce risk without sacrificing returns. The risk and return characteristics of portfolio differ from those of individual securities combining to form a portfolio. The project also examines the performance of various portfolio based on (1) Equal Weight (2) P/E Ratio (3) Market Capitalization along with the performance evaluation by Sharpe and Treynor Ratio. Out of the ten companies, which were taken on the basis of market capitalization from the BSE list and ranked accordingly, five were selected to conduct a detail study. Thus the study is limited to five selected banking companies in India, they are; STATE BANK OF INDIA ICICI BANK HDFC BANK AXIS BANK
PUNJAB NATIONAL BANK

STATEMENT OF THE PROBLEM


A study on Security analysis, Portfolio construction and selection of securities from the Indian banking Industry is undertaken to construct, analyze, select and evaluate a portfolio consisting of five scrips from this sector to check whether the security analysis and portfolio construction and selection helps an investor to reduce risk and achieve efficiency in investment.

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OBJECTIVES OF THE STUDY

To construct analyse, select and evaluate a portfolio consisting of five major selected players in the Banking Industry. To compute the intrinsic value of selected securities from Banking industry using fundamental analysis and recommend for buy or sell option

To undertake the technical analysis of the securities and interpret them. To recognize the suitability of the share for investment in long term.

SIGNIFICANCE OF THE STUDY


This demands the investors to be rational and scientific in his investment activity. As such he needs to evaluate a lot of information about the past performance and the expected future performance of the company, industry as a whole before taking the investment decision. So the study will be helpful in finding the intrinsic value of the shares and make decisions in their investments in Banking Sector. Optimal portfolio can be selected using this study among the different portfolio basis in the Banking Sector. The study will be a guide to other scholars and researchers in doing similar study in other industries.

SCOPE OF THE STUDY


The scope of the study is limited to five selected banking companies in India. Investor
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will be able to take right decision in case of investment which is already made in the scrip of banking companies whether it is wise to hold on or to sell the shares.

The study helps the CSE in making assumptions regarding the performance of banking industry in the stock market The project will be helpful for other researchers and scholars in having a detailed study regarding the performance of banking industry. The study is done from April 18th to June 2nd 2010.

LIMITATIONS
The study was conducted only for a short period of 45 days. Data collected were from secondary sources. The effect of speculation, which has a direct bearing on security price is not considered. The fundamental analysis considered the quantitative effects of company factors only, even though the economy and industry factors significantly affect the share prices of the shares. The securities market, being a highly volatile one, the advice on investment options based on this study is subject to changes. Technical analysis was carried out using only the past eighteen months data. Only five securities are used in the portfolio construction

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CHAPTER II INDUSTRY PROFILE


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ABOUT THE INDUSTRY CAPITAL MARKET CAPITAL MARKET INTRODUCTION


The capital market is a market for financial assets, which have longer or indefinite maturity. Generally, it deals with long-term securities which have maturity period of above one year. The capital market may be further divided into three namely. 1. 2. 3. Industrial securities market Government securities market Long-term loan market The industrial market, which deals with shares and debentures, can further be divided into: 1. 2. Primary market Secondary Market

NEW ISSUE MARKET (PRIMARY MARKET)


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Stocks available for the first time are offers through new issue market. The issuer may be new company or an existing company. These issues may be of new type or the security used in the past. In the new issue market the issuer can be considered as a manufacturer. The issuing houses, investment bankers and brokers act as the channel of distribution for the new issue.

SECONDARY MARKET
Secondary Market refers to a market where securities are traded after being initially offered to the public in the primary market and / or listed on the stock Exchange. Majority of the trading is done in the secondary market. Secondary market comprises of equity markets and the debt markets.

STOCK EXCHANGE
Stock Exchange is an organized marketplace where securities are traded. These securities are by the government, semi-government Bodies, Public sector undertakings and companies for borrowing funds and raising resources. Securities are defined as monetary claims and include stock, shares, debentures, bonds etc. If these securities are marketable as in the case of Government stock, they are transferable by endorsement and are like movable property. Under the securities Contract Regulation Act of 1956, securities trading are regulated by the Central Government and such trading can take place only in Stock Exchange recognized by the Government under this Act. At present there are 23 recognized stock Exchanges in India. Of these major Stock Exchange, like Mumbai, Calcutta, Delhi, Chennai, Hyderabad, Bangalore etc. are permanently recognized while a few are temporarily recognized.

NATIONAL STOCK EXCHANGE (NSE)


With the liberalization of the Indian economy, it was found inevitable to lift the Indian stock market trading system on par with the international standards. On the basis of
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the recommendations of high powered Pherwani Committee, the National Stock Exchange was incorporated in 1992 by Industrial Development Bank of India, Industrial Credit and Investment Corporation of India, Industrial Finance Corporation of India, all Insurance Corporations, selected commercial banks and others. Trading at NSE can be classified under two broad categories: (a) Wholesale debt market and (b) Capital market. Wholesale debt market operations are similar to money market operations institutions and corporate bodies enter into high value transactions in financial instruments such as government securities, treasury bills, public sector unit bonds, commercial paper, certificate of deposit, etc. There are two kinds of players in NSE: (a) Trading members (b) Participants. Recognized members of NSE are called trading members who trade on behalf of themselves and their clients. Participants include trading members and large players like banks who take direct settlement responsibility. Trading at NSE takes place through a fully automated screen based trading mechanism, which adopts the principle of an order driven market. Trading members can stay at their offices and execute the trading, since they are linked through a communication network. The prices at which the buyer and seller are willing to transact will appear on the screen. When the prices match the transaction will be completed and a confirmation slip will be printed at the office of the trading member.

OVER THE COUNTER EXCHANGE OF INDIA (OTCEI)

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The traditional trading mechanism prevailed in the Indian stock markets gave way to many functional inefficiencies, such as, absence of liquidity, lack of transparency, unduly long settlement periods and binami transactions, which affected the small investors to a great extent. To provide improved services to investors, the country's first ring less, scrip less, electronic stock exchange OTCEI - was created in 1992 by country's premier financial institutions UTI, ICICI, and IDBI etc. Trading at OTCEI is done over the centers spread across the country. Securities traded on the OTCEI are classified into: i. Listed Securities The shares and debentures of the companies listed on the OTC can be bought or sold at any OTC counter all over the country and they should not be listed anywhere else ii. Permitted Securities Certain shares and debentures listed on other exchanges and units of mutual funds are allowed to be traded iii. Initiated debentures Any equity holding at least one lakh debentures of particular scrip can offer them for trading on the OTC.

BOMBAY STOCK EXCHANGE (BSE)


The Stock Exchange, Mumbai, popularly known as "BSE" was established in 1875 as "The Native Share and Stock Brokers Association". It is the oldest one in Asia, even older than the Tokyo Stock Exchange, which was established in 1878. It is a voluntary nonprofit making Association of Persons (AOP) and is currently engaged In the process of converting itself into demutualised and corporate entity. It has evolved over the years into its present status as the premier Stock Exchange in the country. It is the first Stock

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Exchange in the Country to have obtained permanent recognition in 1956 from the Govt. of India under the Securities Contracts (Regulation) Act, 1956. The Exchange, while providing an efficient and transparent market for trading in securities, debt and derivatives upholds the interests of the investors and ensures redresses of their grievances whether against the companies or its own member- brokers. It also strives to educate and enlighten the investors by conducting investor education programmers and making available to them necessary informative inputs. A Governing Board having 20 directors is the apex body, which decides the policies and regulates the affairs of the Exchange. The Governing Board consists of 9 elected directors, who are from the broking community (one third of them retire every year by rotation), three SEBI nominees, six public representatives and an Executive Director & Chief Executive officer and a Chief Operating Officer. The Executive Director as the Chief Executive Officer is responsible for the day-to-day administration of the Exchange and he is assisted by the Chief Operating Officer and other Heads of Departments.

BANKING IN INDIA
Banking in India originated in the last decades of the 18th century. The oldest bank in existence in India is the State Bank of India, a government-owned bank that traces its origins back to June 1806 and that is the largest commercial bank in the country. Central banking is the responsibility of the Reserve Bank of India, which in 1935 formally took over these responsibilities from the then Imperial Bank of India, relegating it to commercial banking functions. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers. In 1969 the government nationalized the 14 largest commercial banks; the government nationalized the six next largest in 1980. Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake), 31 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs.
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According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively. Currently (2007), banking in India is generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true.

CHART No.1

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STATE BANK OF INDIA (SBI)


SBI, started as Imperial Bank then named State Bank of India commenced its operations from the year 1955, is the largest commercial bank in India in terms of profits, assets, deposits, branches and employees. As of March 2008, the bank has had 21 subsidiaries and 10,000 branches. SBI offering the services of banking as well as nonbanking services to their customers. It provides a whole range of financial services which includes Life Insurance, Merchant Banking, Mutual Funds, Credit Cards, Factoring, Security Trading & Primary dealership in the Money market. The Bank is actively involved in non-profit activity called community services banking apart from its normal banking activity.

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The bank also concentrate in agriculture, for that it took initiative spotlight kharif and spotlight rabi campaigns for higher disbursement. It introduced Automated Teller Machine with Kishan Credit Cards in all circles to assist agriculture peoples, cumulatively the bank has credit linked 7.68 Lac. Self Help Groups and disbursed loans to the extent of Rs 3,468 Crs. so far. In the year 2001 the SBI Life was started. SBI is the only Bank to have been permitted a 74% stake in the insurance business. The Bank's insurance subsidiary "SBI Life Insurance Company" is a joint venture with Cardif S.A holds 26% stake. SBI Life enjoys the unique distinction of being the first private sector life insurance company in India to make profits for two consecutive years. During the year 2004-05 SBI was the only one bank in India to ranked among top 100 banks in the world and also among the top 20 banks in Asia in the annual survey by "The Banker" as well as in the same year bank received two prestigious awards for technology from the same The Banker magazine. In the year 2005-06 the bank introduced "SBI e-tax" an online tax payments facility for direct and indirect tax payment, the centralized pension processing center also launched during the year. SBI made a partnership with Tata Consultancy Services for setup C-Edg Technologies and consulting services to the banking, financial services and insurance industry. The bank noted as The most preferred bank in a survey by TV 18 in association with AC Nielsen-ORG Marg along with SBI voted as The most preferred housing loan provider in AWAAZ consumer awards for 2006. In the customer loyalty survey 2006-07 conducted by "Business World", SBI has been ranked number One in all parameters of customer satisfication, service orientation, customer care/ call center, customer loyalty and home loans. SBI Funds (SBIFMPL) was judged "Mutual fund of the year" by CNBC/TV-18/CRISL. SBI FMBL Equity schemes won 11 awards and ranging of the AMC in terms of Assets under management remained at 7th position during the year 2006-07. SBI cards is in 2nd position in the country under market share. During the year 2006-07 14.81 lac additional cards were issued by SBI and they crossed the landmark of 3 million cards totally. The strategic initiatives that SBI have launched business groups in 2007 namely rural and agri business; treasury and marketing; corporate strategy and new business; and
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fourth mid corporate group is on the anvil. They also introduced new products and services such as web-based remittance, instant fund transfer, online-trading, comprehensive cash management. SBI opened its 10,000th branch in March 2008; it becomes only the second bank in the world to have more than 10,000 branches after China's ICBC. SBI is pursuing aggressive IT policy, where the Automated Teller Machines are now also enabled to pay utility bills, college fees, book air-line tickets and accept donations, further bilateral sharing of ATMs was extended to thirteen banks covering 15,700 Automated Teller Machines and an Memorandum of Understanding has been signed with the Indian railways for installing ATMs at 682 railway stations. Infrastructure fund, private equity, venture capital and pension fund management are under in process to assist the customer in time. SBI is targeting to emerge as the best rated bank among public, private, foreign and state -owned banks by the end of the next fiscal. Employee Stock Option Scheme, where employees have the option to pick up shares as per their needs is avail in SBI. SBI plans to implement the mobile banking technology will soon with aim of customer will no be just "Branch customers" but will be "Bank customer

ICICI BANK LTD.


ICICI Bank, a private sector bank under the house of ICICI was incorporated in the year of 1994. It is a multi-specialist financial service provider with leadership position across the spectrum of financial services in India. ICICI Bank is the 2nd largest bank in India and Bank breaking into the top 100 financial institutions in the world, in terms of market capitalization. It got this position in short time, because the bank doing what customers want. ICICI running its business with six principal groups, such as Retail Banking, Wholesale Banking, International Banking, Rural, Micro Banking and AgriBusiness, Government Banking and Corporate Centre. The Bank offers a wide spectrum of domestic and international banking services to facilitate trade, investment banking ,Insurance, Venture Capital, asset management, cross border business & treasury and foreign exchange services besides providing a full range of deposit and ancillary services
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for both individuals and corporate through various delivery Channels and specialized subsidiaries. ICICI Bank has 14 subsidiaries, out of that 10 in domestic and rest of 4 in international level such as UK, Canada and Russia. To efficiently distribute its products and services, the bank has developed multiple access channels comprising lean brick and mortar branches, ATMs, call centers and Internet banking. The Bank has introduced the concept of mobile ATMs in the remote/rural areas. It has also extended its mobile banking services to all cellular service providers across India and NRI customers in USA, UK, Middle-East and Singapore. The merger and acquisition are the key kind to bank. The Bank of Madura (BOM) got merged with ICICI Bank during the period 2000-01 and in 2001 ICICI (Financial Institution) merged with ICICI Bank. The two subsidiaries of ICICI Ltd viz ICICI Personal Financial Services and ICICI Capital Services were also merged with the ICICI Bank on March 2002. During May,2003 the bank has acquired Transamerica Apple Distribution Finance Private Ltd and renamed it to ICICI Distribution Finance Private Limited which is primarily engaged in financing in the two-wheeler segment. Bank received many awards and recognitions during the year 2005-06. Some of them are Best Bank in India by Euro money, Best Integrated Consumer Bank Site in Asia by Global Finance, Best Cash Management-Country Awards in India by The Asset and Best Secondary Offering by Finance Asia. ICICI Bank noted as Bank of the year 2006 India by The Banker, it was a award to ICICI Bank at second time from last year. During the year 2006-07 also Bank acquired the number of awards. Samples are, Best Transaction Bank in India by Asset Triple AAA, Best Bank of the Year 2006 by Business India, National Award for Excellence in Energy Management by CII and Excellence in Multi Channel Distribution by Asian Banker. As on April 2007 Sangli Bank Ltd was merged with ICICI Bank Ltd. In the Wholesale Banking segment, the bank has achieved a significant milestone in the market making activity by expanding the product suite to include foreign exchange options. As on May 2007 the bank have market capitalization of Rs 77,834 crore. In 2007 June ICICI Bank has entered into an agreement with networking solutions provider GTL Ltd to lease
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out its call centre facility at Mayhap worth of around Rs 100 crore for a period of 25 years. In August of 2007 the bank has availed of a $200-million worth Line of Credit (LoC) from The Export-Import Bank of Korea (Korea Exim bank) for the purpose of the Hong Kong branch of ICICI Bank gets funds from Korea Exim bank, and the bank lends foreign currency loans to domestic companies investing in Korea and the bank had taken a similar LoC of $200 million from the Japan Bank for International Cooperation (JBIC) last year. In 2008 ICICI Bank, come a cropper in the global stage when it comes to their brand value, which is $2,603 million, it reveals by the study of London-based consultancy Brand Finance.

HDFC BANK LTD.


HDFC Bank, a private sector bank was incorporated in the year of 1994 by Housing Development Finance Corporation Limited (HDFC), India's premier housing finance company. HDFC was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. The Bank commenced its operations as a Scheduled Commercial Bank in January 1995 with the help of RBI's liberalization. HDFC Bank deals with three key business segments - Wholesale Banking Services, Retail Banking Services, Treasury. It has entered the banking consortia of over 50 corporate for providing working capital finance, trade services, corporate finance and merchant banking. It is also providing sophisticated product structures, sound advice and fine pricing mainly in areas of foreign exchange and derivatives, money markets and debt trading and equity research through its state-of-the-art dealing room. Notable event was happened in the history of bank as well as Indian banking sector in Feb. 2000, the Times Bank was amalgamated with HDFC bank. This was an important milestone, being the first merger of two private sector banks. HDFC Bank was the first Bank to launch an International Debit Card in association with VISA (Visa Electron). The Bank launched its Credit Card business in 2001. In the same year HDFC Bank has became the first private sector bank to be authorized by the Central Board of Direct Taxes (CBDT) as well as the RBI to accept direct taxes. The taxes accepted at specified branches of the bank. Also it has announced a strategic tie-up with a Bangalore-based business solutions
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software developer Tally Solutions Pvt (TSPL) for developing and offering products and services facilitating on-line accounting and banking services to SMEs (Small and Medium Enterprises). In 2001-02 the bank was listed on the New York Stock Exchange in the form of ADS and bank had alliance with LIC for provide online payment of insurance premium to the customers. Bank received plenty of awards to its credit, in the year 2003 bank received "Best Local Bank in India" by Finance Asia, "Best Domestic Bank in India Region" in The Asset Triple A Country Awards 2003. Apart from this, 'Best Bank in the Private Sector' for the year 2003 in the Outlook Express Awards, 'Best New Private Sector Bank 2003' by the Financial Express in the FE-Ernst & Young Best Bank's survey 2003. It was also figured in the 'Best Under a Billion, 200 Best Small Companies for 2003' by Forbes Global and for use of information technology the bank was awarded with 'Best IT user in Banking' at the IT User Awards 2003 conferred by Economictimes.com & Nasscom. In the year of 2004 to 2005, "Best Domestic Commercial Bank" & "Best Cash Management Bank"- India- Asia money Awards for Corporate Excellence of 2004-05, "Best Bank" - India - Finance Asia, "Company of the Year "- The Economic Times Awards for Corporate Excellence 2004-05, "Best Domestic Bank in India" - The Asset Triple A Country Awards 2005, "Most Customer Responsive Company- Banking and Financial Services" - The Economic Times Avaya Global Connect Customer Responsiveness Awards 2005. During the year of 200607 also bank received number of awards, The Asian Banker Achievement Award, Best Listed Bank of India in 2006 by Business World, Euro money Award as Best Bank in India, One of Asia Pacific's Best 50 Companies in 2006 by Forbes Magazine, Asia money Award for Best Local Cash Management in Large and Medium segments, other than above bank received " Best Bank in India " award continuously from the year 2003 to 2007 conferred by the magazine Business Today. The Financial Express rated 1st in India's Best Banks 2007 under New Private Sector Bank under along with Axis Bank. As on 2007 May, The Reserve Bank of India has allowed HDFC Bank to start a non banking finance company. The NBFC, to be set up by HDFC Bank as a wholly owned subsidiary and will undertake retail operations such as auto, personal loans etc.. As part and apart from the regular banking activity, HDFC Bank and The Institute for Technology and
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Management (ITM), Chennai gone under Memorandum of Understanding to promote cooperation advancement of academic and business exchanges between the two.

AXIS BANK LTD.


AXIS Bank is one of the fastest growing bank in private sector. It was incorporated in the year 1993 as "The Bank (UTI BANK LIMITED) ", which provided corporate and retail banking products and was among the few banks to be granted a license under the new guidelines issued in 1993 to carry on banking business in India. AXIS Bank formerly known as UTI Bank is being promoted by Unit Trust of India (UTI), Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC) and its four subsidiaries. The bank had two subsidiaries namely UBL Sales Limited and UBL Asset Management Company and were incorporated in the year 2005 and 2006 respectively. The bank has restructured its business into four strategic profit centers such as Corporate, Retail, Merchant & Treasury Banking and Further the bank also provide mobile banking services and mobile refill facilities for Airtel,Hutch, Orange and Idea cellular service providers. In fact the bank is among the few Indian banks to have completely centralized its database which enables possible for the bank to increasingly e-enable its transaction processing capabilities. In the year 2001,the bank along with Global Trust Bank (GTB) had a merger proposal to create the largest private sector bank in swap ratio of 9 shares of UTI Bank for 4 shares of GTB but due to media's issues both the banks withdraw he merger proposal. 2003 was the year to AXIS, the bank was authorized to handle Government transactions such as collection of Government taxes, to handle the expenditure related payments of Central Government Ministries and Departments and pension payments on behalf of Civil and Non-civil Ministries such as defense, posts, telecom and railways and AXIS is the first private sector bank to be authorized for collection of Commercial Taxes in twin cities of Hyderabad & Secunderabad. The bank has launched pre-paid Dollar denominated card which is useful for outbound travelers and has tied up with 14 major full-fledged
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moneychangers to market the cards and the 1st Indian bank to offer the International Travel Currency Card and. The bank raised $239.3 million through Global Depositary Receipts in 2005 and in the same year the bank has won the award 'Outstanding Achievement Award' for the year 2005 from Indian Banks Association for IT Infrastructure, delivery capabilities and innovative solutions. In the year of 2007 the bank again raised $218.67 million through Global Depository Receipts. The bank has rated 1st rank under new private sector banks in India's Best Banks for the year 2007 by The Financial Express magazine (The Express Group). In 2007, the bank has opened 153 new branches. This includes 43 extension counters that have been upgraded to branches and the setting up of 8 Service branches/CPCs. The Bank has opened four new overseas offices, with branches at Singapore, Dubai and Hong Kong and a representative office in Shanghai and has signed an agreement with the Luxembourg-based bank Banque Privee Edmond de Rothschild Europe provide wealth management solutions to overseas Indians. 450 ATMs are opened during the year of 2007. The total network of the bank as on April 2008, a customer base of 90 lakh, 655 branches in more than 407 cities and towns, 20 extension counters and 2778 ATMs across the

PUNJAB NATIONAL BANK


Punjab National Bank (PNB), established in the year 1895 at Lahore, undivided India, has the distinction of being the first Indian bank to have been started solely with Indian capital. The bank was nationalized in July 1969 along with 13 other banks. From its modest beginning, the bank has grown in size and stature to become a front-line banking institution in India at present. With its presence virtually in all the important centers of the country, Punjab National Bank offers a wide variety of banking services which include corporate and personal banking, industrial finance, agricultural finance, financing of trade and international banking. Among the clients of the Bank are Indian conglomerates,

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medium and small industrial units, exporters, non-resident Indians and multinational companies. A package was developed for corporate customers for fast remittance of funds from different up-country branches to the controlling office during the year 1996. The Bank has introduced a scheme for providing finance against mortgage of immovable property in the year 2000. It commenced its Gold Business in the form of Gold Import Scheme in September of the same year 2000. An International Co-branded Credit Card of Punjab National Bank and Hongkong & Shanghai Banking Corporation (HSBC) was launched in New Delhi in November of the year 2000. The scheme offers international quality gold for sale to the Bank's clientele consisting of exporters and others at competitive prices. PNB came out with its first Initial public offer (IPO) in March 2002 for 5,30,60,700 equity shares of Rs 10 each. During the year 2002, the bank started its branch in M.G. Road, Bangalore named as Mid-Corporate Branch (MCD) to provide its corporate clients with a credit limit of Rs 3.5 crore and above. PNB made joint venture with Infosys for the implementation of a Centralized Banking Solution for it. The Bank received the Best Bank Award' for excellence in banking technology. PNB tied up with Cisco Systems for networking 3,870 branches as part of its Rs 150 crore plan. PNB has taken over Kozhikode-based Nedungadi Bank Ltd (NBL) in February of the year 2003. The Bank has entered into an alliance with New India Assurance for selling its general insurance products in the same year 2003. In June of the year 2003, PNB made Memorandum of Understanding (MoU) with Principal Financial Services Inc. (USA) and Vijaya Bank for joint venture partnership in Life Insurance, Pensions and Asset Managements (MF) business. The Bank has formed a strategic alliance with Infrastructure Leasing and Financial Services Ltd (IL&FS) to set up a private equity fund for investing in domestic companies. Entered an agreement with Oriental Bank of Commerce, Indian Bank, UTI Bank and Global Trust Bank for sharing ATMs spread across the country. In the year 2004, PNB acquired the assets of Hindustan Transmission Product Limited (HTPL) under Sarfaesi. The Bank had signed a corporate agency agreement with Export Credit Guarantee Corporation of India Ltd (ECGC) for marketing ECGC's export credit insurance products
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through the network of the bank's branches. A MoU was signed for the deployment of various IT-related solutions between the bank and Intel. PNB and ICICI Bank had signed a MoU for ATM network sharing. PNB implements Loans and Advances Data Desk for Evaluations and Reports, (LADDER) system for rationalization of returns, asset classification and provisioning, credit monitoring and NPA management. The Bank has mandated the project worth of Rs 5-10 crore to Tata Consultancy Services (TCS) for implement human capital management and payroll solution in the year 2004. The Bank branch at Kabul, Afghanistan has commenced soft opening on July 26th of 2004. PNB has launched its corporate Internet banking facility during November of the year 2004. PNB has coveted as Best IT User in Banking & Financial Services Industry 2004 - by NASSCOM in partnership with Economic Times. The Bank had unveiled ATM at Edappal in the year of 2005. PNB had adjudged with Golden Peacock Award - for Excellence in Corporate Governance - 2005 by Institute of Directors. During 2005-06, the bank revamped its organizational structure. Seven new Zonal Offices were created. The Bank received 'Best IT Team of the Year Award' - at the IDRBT Banking Technology awards for the year 2005-06. During the year 2006, PNB had tied up with MasterCard International to launch a signature-based debit card and opened one new branch in Uttaranchal. Also during the same year of 2006, the bank has made tie up with Indian Airlines for online booking of air tickets and ties up with IDBI Capital. PNB had entered into MoU with India Infrastructure Finance Company (IIFC) in October of the year 2007 with an aim to extend its cooperation and support to IIFC in areas of creating a deal flow of infrastructure projects. RBI rejected Punjab National Bank's proposal to float a credit card joint venture with insurer American International Group Inc. (AIG) and Venture InfoTech Global Pvt. Ltd, a third-party processor for credit card companies. PNB aims to expand its base in the entire northern India region for providing banking facilities at the doorsteps of the peoples. The Bank is serving over 3.5 crores customers through 4540 Offices including 421 extension counters - largest amongst Nationalized Banks. PNB is moving with the vision, to be India's most profitable Universal
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Bank. Also wants to profitably serve the banking and the financial services needs of the nation everyday and everywhere.

CHAPTER III COMPANY PROFILE

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ABOUT THE COMPANY COCHIN STOCK EXCHANGE (CSE)


Cochin Stock Exchange limited is one of the premiers Stock Exchange in India. Established in 1978, the exchange has undergone tremendous transformation over the years. The exchange had a humble start with just 5 companies getting listed in 1978-79 and at time of its incorporation it had only 14 members. Today the exchange has 508 members and 240 listed companies. In 1989 the company went for computerization of its offices. In order to keep pace with the changing scenario in the capital market CSE took various initiatives including initiating trading in dematerialized shares. This has effected in the purpose of bad deliveries coming down. CSE introduced the facility of computerized trading called" Cochin Online Trading. (COLT) on March 17, 1997. CSE also became a member with an objective of consolidating the small, fragmented and less liquid markets into a national legal integrated liquid market. With the enforcement of efficient margin system and surveillance CSE has successfully prevented major defaults. Introduction of Fast Track System made CSE the stock exchange with shortest settlement cycle in the country. The Cochin Stock Exchange (CSE) has been playing a very vital role in the economic development of the country in general and Kerala in particular. Right from the beginning CSE has been striving hard so as to achieve the following goals: Providing investors with high level of liquidity where by the cost and time involved in the entry and exit from the market becomes the least. Bring in high tech solutions and make possible absolute transparency of all operations. Spread equity cult and to serve investors of the region. Professional stock broking and investment management function.

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Impart capital market knowledge to all intermediaries on a continuous basis.

ORGANISATIONAL STRUCTURE Chart No.2 ORGANIZATIONAL STRUCTURE

BOARD OF DIRECTORS

EXECUTIVE DIRECTOR

Legal

Systems

Members hip

Listing
Listing

Settlem mentent

Marketing and Public Relations

Finance

DEPARTMENTAL PROFILE
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LEGAL DEPARTMENT CSE has a full-fledged Legal Department, headed by Manager-Legal and is primarily engaged in advising the management in the merits and demerits of legal issues involving the exchange. A major function undertaken by the department is to ensure that the various rules, regulations and directives of SEBI with regard to trading in the Capital Market by brokers and sub-brokers, are brought to the notice to members and the investing public. Manager-Legal is the compliance officer as per the provisions of SEBI regulations and ensures strict compliance of SEBI directives and guidelines. Manager-Legal also functions as secretary to the board of directors. The three important areas being looked after by the legal department are: (a) Investor Grievance Service (b) Arbitration (c) Default SYSTEM DEPARTMENT It is the heart of the various operations of CSE. The department provides the necessary technical supports for screen based trading and the computerized functioning of all other departments. The various activities of the department include:

Developments of various software needed for the functioning of the exchange. Maintenance of Multex software, which provides online trading with NSE and BSE.

The major back office system soft wares used are NESS and BOSS for NSE and BSE trades calculations respectively. These soft wares are developed in-house by CSE. These soft wares are used to maintain the entire records of all the trades that occur each day.

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It also does all the required calculations for deductions and also creates all kinds of reports needed by the brokers and their clients. SETTLEMENT DEPARTMENT Settlement department is a key department of the CSE. It is dealing with cash and securities. It helps the broker in setting the matters related to their pay-in and payout, recovery of dues and settling the matters related to the bad deliveries. This department is headed by a Deputy Manager and assisted by two senior officers who look into the operations involved in the settlement activities in CSE. CSE is following T+2 settlement system (where T- dates of transaction).

SURVEIALLANCE DEPARTMENT The Exchange has set up Surveillance Department to keep close watch on price movements of scrip, detect market abuses like price rigging, monitor abnormal prices and volumes which are not consistent with normal trading pattern etc. The main objectives of the department are to provide a free and fair market, to arrest unsystematic risk from entering into the system and to manage risks. The surveillance function at the exchange has assumed greater importance in the last few years. SEBI has directed the stock exchanges to setup a separate surveillance department with staff exclusively assigned for this function. It also offers services like: Keeping a close watch on the price movement of scrips. Detect market manipulations like price rigging.

ADMINISTRATION DEPARTMENT A legal officer with two Deputy Managers for administration and compliance and management information system heads the department. Two senior officers looking after public relations and administration form part of administration. The major activities of this department include: Department of Management Science MES College of Engineering [34]

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Organizing council meeting, annual general meeting, extra meeting, council meetings etc. Looking after the admission and expulsion of members.

ordinary general

Taking care of all related functions needed for the smooth functioning of the exchange including regular payments of rent, bills, taxes, public relations etc. Giving necessary guidelines and support to students and other who visit the exchange for various activities.

LISTING Listing means admission of the securities of a company to trading privileges on a Stock Exchange. The principal objectives of listing are to provide ready marketability and impart liquidity and free negotiability to stocks and shares; ensure proper supervision and control of dealings therein; and protect the interests of shareholders and of the general investing public. FINANCE DEPARTMENT This department takes care of the various financial transactions of CSE thus acting as the life line of the organization. The department is headed by a Finance officer and assisted by a Deputy Manager and several senior and junior officers. The major activities of the department include:

Annual Report Generation Fund Management Interaction with bankers Keeping general accounts of the CSE and Taxation Maintaining of payrolls and cash register Budgeting and Expense research Maintenance of internal control system Interaction with external and internal audits

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CHAPTER IV LITERATURE REVIEW


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LITERATURE RIVIEW As per the study of P Janaki Rao and S Durga Rao Investment decisions, in all sectors, have been gaining paramount importance, warranting the investors to be continuously cautious of risk and return involved in the same. The faculty investment analysis calls for planned and meaningful appraisal of both internal and external factors affecting the returns. Ever since Indian economy opened its doors to MNCs, the Indian banking sector has been witnessing bizarre changes in terms of new products and services and stiff competition as well. The sort of IPOs that have been taking place in banking sector are amazing. In the light of these recent developments, a careful analysis of the profitability of Indian banking sector is inevitable. The present study attempts to analyze the profitability of the three major banks in India: SBI, ICICI, and HDFC. The variables taken for the study are Operating Profit Margin (OPM), Net Profit Margin (NPM), Return on Equity (RoE), Earnings per Share (EPS), Price Earnings Ratio (PER), Dividends per
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Share (DPS), and Dividends Payout Ratio (DPR). The study brings out the comparative efficiency of SBI, ICICI, and HDFC. As per the study of Prof VR Ganesh in his article Analysis Of Banking Industries he explains, the banking industry is and always has been one of the most important aspects of all industries. The reason being, every other industry needs banks to take part in any investments or financial movements as a way to better their position in their industries. We will look at how and why the banking industry has been able to hold this position for so long through the Competitive Landscape, Porters Five Forces Analysis, Major Segments of the Industry, the Industry Life cycle, and The PESTEL Factors. These tools will help provide data and a thorough analysis of the performance in the banking industry. Within the banking industry there are a lot of competitors which offer the same services but for some reason some are doing better than others. A Strategic Group Analysis has been done to show the comparison between top competitors. As per the study of Sree Ram G Banking Sector in India is one of the growing sectors with great dynamics. There are various factors which affect the share prices of Banking Companies. This report is all about how various factors (Internal and External) affect the Banking Sector Share Prices. In this report a detailed analysis of the factors affecting the share prices is carried on and a model is developed to study the effect of various factors on the share prices. Here, various internal factors (Banks Profitability, Income, Expenses, and News about the Bank.) and external factors (Government policies, CRR, Repo Rate, Reverse Repo Rate, Rules and Regulations.) are considered which affect the prices of the shares of Bank. Datas are collected for all the quantifiable factors and for the rest factors a theoretical explanation is given in detail. Using SPSS a model is developed which shows the regression and correlation co-efficient between the share prices and various factors affecting the same. According to Daniel Giamodiurs and Laonnis D Vrontos in their article studies the impact of modeling time-varying covariances/correlations of hedge fund returns in terms of hedge fund portfolio construction and risk measurement. We use a variety of static and dynamic covariance/correlation prediction models and compare the optimized
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portfolios out-of-sample performance. We find that dynamic covariance/correlation models construct portfolios with lower risk and higher out-of-sample risk-adjusted realized return. The tail-risk of the constructed portfolios is also lower. Using a mean-conditionalvalue-at-risk framework we show that dynamic covariance/correlation models are also successful in constructing portfolios with minimum tail-risk. According to Kwan, Clarence C.Y.A simple ranking model for optimal portfolio construction under institutional procedures for short selling is introduced. The study justifies this approach and offers economic insights, including those concerning short selling's hedging impact in a portfolio context. The ranking model can be used to analyze various treatments of the short-sale proceeds and margin deposits. It is also found to be superior to other portfolio models in that it does not rely on assumptions that exaggerate short-sale benefits for maintaining analytical tractability.

THEORETICAL PERSPECTIVE SECURITY ANALYSIS


Securities analysis refers to the analysis of trading securities from the point of view of their prices, returns and risks. All investments are risky and the expected return is related to their risk. Their analysis will help in understanding the behavior of security prices and the market in decision-making for investment. If it is an analysis of only one scrip, it is called microanalysis of a company. If it is an analysis of market of securities, it is referred to as a macro picture of the behavior of the market. It is mainly out in two approaches namely: Fundamental analysis and Technical analysis. Under fundamental analysis the share value depends on the intrinsic worth of the
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share. It is basically an economy industry-company analysis. It considers the external as well as the internal factors that determine a companys efficient functioning. In technical analysis the price moves in a predictable manner and in waves and trends. The present prices are the result of past trends and can accordingly be predicted. Thus securities analysis forms the first step towards devising an efficient portfolio of securities

FUNDAMENTAL ANALYSIS
Fundamental Analysis is really a logical and a systematic approach to estimating the future dividends and share price. It is based on the economic premise that shares price is determined by a number of fundamental factors relating to the economy, industry and company. Hence, the economy fundamentals, industry fundamentals and company fundamentals have to be considered while analyzing a security for investment purpose Each of the shares is assumed to have an economic worth based on its present and future earning capacity. This is called its intrinsic value or fundamental value. The purpose of fundamental analysis is to evaluate the present and future earning capacity of the share based on the economy, industry and company fundamentals and there by assess the intrinsic value of the share with the prevailing market price to arrive at an investment decision. If the market price of the share is lower than the intrinsic value, as the investor is decide to buy the share as it is under priced. The price of such share is expected to move up in future to match with its intrinsic value. On the contrary, when the market price of the share is higher than its intrinsic value, it is perceived to be over priced the market price of such share is expected to come down in the future and hence the investor would decide to sell such a share. Fundamental Analysis thus provides an analytical frame work for investment decision making. This analytical frame work is known as E-I-C framework (Economy-Industry-Company Analysis).

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The fundamental Analysis insists that no one should purchase or sell a share on the basis of tips or rumors. The fundamental approach calls up on the investor to make his buy or sell decision on the basis of a detailed analysis of the information about the company, industry to which the company belongs, and economy. This results in informed investing. For this the fundamental Analysis makes use of EIC framework of analysis. Fundamental Analysis involves three steps: 1. Economy Analysis 2. Industry Analysis 3. Company Analysis ECONOMY ANALYSIS The performance of the company depends on the performance of the economy. If the economy is booming, incomes rise and demand for goods will increase, the industries and companies in general tend to be prosperous. On the other hand, if the economy is in recession, the performance of companies will be generally bad. Investors are considered with those variables in the economy, which affect the performance of the company in which they tend to invest. A study of these economic variables would give an idea about future corporate earnings and payment of dividend and interest to investors.

Macro Economic Analysis The macro economy is the overall economic environment in which all firms operate. The key variables commonly used to describe the state of the macro economy are: Growth rate of gross domestic product Industrial growth rate and interest rates Agriculture and monsoons Savings and Investments
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Government Budget and deficit Price level and inflation Balance of Payments, Forex reserves and exchange rate Infrastructural Facilities and arrangements INDUSTRY ANALYSIS An investor ultimately invests his money in the securities of one or more specific companies. Each company can be characterized as belonging to an industry. The performance of the companies would therefore, be influenced by the fortunes of the industry to which it belongs. At any stage of economy, there are some industries, which are fast growing and others are stagnating or declining. If an industry is growing the companies within the industries may also be prosperous. The performance of the companies will depend, among other things, upon the state of industry to which they belong. Industry analysis refers to the evaluation of the relative strength and weakness of particular industries.

COMPANY ANALYSIS It is the final stage of fundamental analysis. The economy analysis helps the investor a broad outline of the prospects of the growth in the economy. The industry analysis helps the investor to select the industry in which investment would be rewarding. Now he has to decide the company in which he should invest his money. Company Analysis provides the answer to this question. It deals with the estimation of return and risk of individual shares. This calls for information. Many pieces of information influence investment decisions. Information regarding companies can be broadly classified into two broad categories: Internal & External. Internal information consists of data and events made public by companies concerning their operations. The internal information sources include annual reports to shareholders, public and private statements of officers of the company, the companys
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financial statements etc. External sources of information are those generated independently outside the company. These prepared by investment services and the financial press. TECHNICAL ANALYSIS Technical analysis is the name given to forecasting technique that utilize historical share price data. Prices of securities in the stock market fluctuate daily on account of continuous buying and selling. Stock prices move in trend and cycles and are never stable. The rationale behind technical analysis is that share price behavior repeats itself over time and analysts attempt to derive methods to predict this repetition. He looks at current price data to see if any of the established patterns are applicable and, if so, extrapolations can be made to predict the future price movements. The data used is primarily past share prices. Other statistics such as volume of trading and stock market indices are also utilized to some extent. TOOLS FOR TECHNICAL ANALYSIS Charting is the key in technical analysis and security prices are what is charted. The charts form patterns which are studied to reveal the underlying trends. Often share price movements are erratic and gauging the underlying trend becomes difficult. So as to smoothen out the apparent erratic movements of share price and highlight the underlying trend, mathematical tools are used. EXPONENTIAL MOVING AVERAGE (EMA) Moving averages are mathematical indicators of the underlying trend of the price movement. An exponential moving average, also called Exponential Weighted Moving Averages(EWMA), applies weighing factors which decrease exponentially. The weighing for each older data point decreases exponentially, giving much importance to recent observations while still not discarding older observations entirely. EMA= (Current Closing Price Previous EMA) x Factor + Previous EMA Where Factor = 2/ (n+1)
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The EMA for the first day is taken as the closing price of that itself. The EMA from the second day onwards is calculated using the above formula. A 5 day average would indicate the short term trend. A 50 day average would indicate medium term trend and a 200 day average would represent the trend line. When the prices of the share intersects and moves above or below this trend line, it may be taken as the sign of trend reversal. RATE OF CHANGE INDICATOR (ROC) ROC is a popular oscillator which measure the rate of change of the current price as compared to the price a certain number of days or weeks back.The formula used is ROC = Current Price Price n period ago

MOVING AVERAGES CONVERGANCE AND DIVERGENCE (MACD) MACD is an oscillator that measures the convergence and divergence between two exponential moving averages. It is called so as it continuously converges and diverges away from the horizontal reference line. The reference line represents the points, where the two EMAs have identical values. A short term EMA and long term EMA are calculated with help of the closing price data.12 day and 48 day EMAs constitute a popular combination. The difference between the short term EMA and long term EMA represents the MACD. The MACD values for different days are derived by deducting the long term EMA for each day from the corresponding short-term EMA for the day. These MACD values are plotted on an XY graph with MACD values on the Y axis and tome periods on X axis. The MACD line would oscillate across the zero line.

PORTFOLIO CONSTRUCTION Portfolio construction is the process of blending securities in a manner that they give maximum return at a minimum of risk.

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Now that the securities for inclusion in the Portfolio, we proceed with the portfolio construction, by deciding on how much amount should the investor allocate to each security. In the present study three different ways of allocation are chosen, based on: 1. Equal amount to the five scrips. 2. Amount in proportion to their projected Price Earnings Ratio. 3. Amount in proportion to their projected EPS. PORTFOLIO ANALYSIS From a given set of securities, any number of portfolios can be constructed by an investor, by choosing different set of securities and also varying the proportion of investment in each security. A rational investor attempts to find out most efficient one from those portfolios. The efficiency of each portfolio can be evaluated only in terms of the expected return and risk of the portfolio as such. Thus, determining the expected return and risk of different portfolios is a primary step in portfolio management designated Portfolio Analysis. PORTFOLIO RETURN All investment are characterized by the expectation of a return. In fact, investment is made with the primary objective of deriving a return. The return may be in the form of yield plus capital appreciation. Different types of investment promise different rates of return. The return from an investment depends upon the nature of the investment, the maturity period etc. Portfolio returns refers to the total return that may be received if the entire securities are put together. It need not be the integration of the returns of individual securities. If the portfolio is well diversified, the returns from the portfolio will be higher than those from individual securities. Portfolio return can be calculated using the following formula:

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Portfolio return, Rp = ap +p Rm Rm = market return PORTFOLIO RISK Risk is the potential for variability in returns. An investment whose returns are fairly stable is considered to be a low-risk investment where as an investment whose returns fluctuate significantly is considered to be a high risk investment. Risk can be mainly classified into systematic and unsystematic. Systematic risk is expressed as beta() and unsystematic risk is expressed as (a). Portfolio risk refers to the risk faced due to the ivestment in the entire portfolio. The more the diversification of the investment in various securities, the lower will be the risk. Portfolio risk can be calculated using the following formula: Portfolio Risk p= p m +

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CHAPTER V
RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
This is basically an Analytical research depends on the publicly available data.
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The method used in the study is the fundamental and technical analysis of some specific companies in banking industry. The companies are selected based on market capitalization. The fundamental analysis includes Economic analysis, Industry analysis and Company analysis.

SOURCES OF DATA
Data for the study is collected from the secondary sources. Data is collected from the websites like www.bseindia.com, www.indiabulls.com, www.capitaline.com. Company websites, books, newspapers and periodicals is also be referred to during the study.

POPULATION AND SAMPLE


According to the Indian Banking Industry estimates there are a total of 274 commercial banks operating in India out of which 223 banks are in the public sector and 51 banks are in the private sector. This total 274 banks have been taken as the population for the study. On the basis of high market capitalization, the top five were selected to perform the detailed study. Financial data which is relevant to 5 years is taken as the sample size for fundamental analysis and eighteen months for technical analysis.

PERIOD OF STUDY
The period of study is conducted for a period of 45 days from April 18th to June 2nd 2010.

BASIS FOR SELECTION OF COMPANIES


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Out of the ten companies which were taken on the basis of high market capitalization, the top five were selected to perform the detailed study. The ten banking companies and their market capitalizations in the order of their ranking are given in the table below.

Table No.1 Banks and Market Capitalization Rate SL.NO 1 2 3 4 5 6 7 8 9 10 BANKING COMPANIES STATE BANK OF INDIA ICICI BANK HDFC BANK AXIS BANK PUNJAB NATIONAL BANK BANK OF INDIA KOTAK MAHINDRA BANK BANK OF BARODA CANARA BANK UNION BANK MARKET CAPITALISATION as on 31st March 2010 1,31.991.55 97,210.81 84,458.26 67,386.42 51,954.08 49,632.96 48,376.23 42,039.21 33,369.75 27,329.29

TOOLS OF ANALYSIS
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Fundamental Analysis: Ratios Used Earnings per share = Profit after tax No of Equity Shares Amount declared as dividend No. Of equity shares Dividend Per Share Earnings per share = = = = Profit after tax Net worth Share capital + Reserves and Surplus Market price of share Earning per share Average of the price earning range

Dividend per share Payout Ratio Return on equity Net worth Price earnings ratio Price Earning Average =

THE INTRINSIC VALUE CALCULATION Dividend Pay Out Ratio [DPOR] Average DPOR for 5 years = = Dividend Per Share Earnings Per Share Sum of DPOR for 5 years 5 = = 1-Average DPOR Sum of ROE for 5 years 5

Average Retention ratio Average return on Equity Growth in equity [g]

= Average Retention Ratio Average Return on Equity = Sum of PE ratios for 5 years 5

Normalized Average Price Earnings ratio Long Term Growth Rate In


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Dividends and Earnings Retention Ratio

= Normalized PE Ratio X Average

Projected earnings per share = Earnings per share for current year X (1+growth in equity[g]) Intrinsic value = Projected Earnings per Share Normalized Average Price Earnings Ratio Projected Dividend per share = Dividend for the current year X (1+ growth in equity[g])

TECHNICAL TOOLS: 1. Mathematical Indicators: a. Exponential Moving Average (MA): EMA = [(current closing price previous EMA)*factor] + previous EMA 2. Oscillators: a. Rate of Change Indicator (ROC): ROC = (current price / price n periods ago.) * 100 b. Moving Average Convergence and Divergence PORTFOLIO ANALYSIS AND CONSTRUCTION SHARPE RATIO Sharpe Ratio = Rp -Rf / p Where, Rp = Realized return on the portfolio Rf = Risk free rate of return .p = Standard deviation of portfolio return
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4.

TREYNOR RATIO

Treynor Ratio = Rp Rf / p Where, Rp = Realized return on the portfolio Rf = Risk free rate of return .p = Portfolio Beta TOOLS FOR PRESENTATION Pie Diagram Bar Diagram Line Graph (Microsoft Excel 2007 and Analyzer XL was used for making charts)

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CHAPTER VI ANALYSIS AND INTERPRETATION

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The analysis is done using Fundamental analysis and technical analysis and Portfolio Construction and evaluation is conducted to find the optimal portfolio. Five companies were selected for the study on the basis of Market Capitalization. Five years of data are used to do the fundamental Analysis and Eighteen months of data are selected to do the Technical Analysis. Portfolio is constructed on the basis of Equal Weight, Market Capitalization and PE Ratio. Treynor and Sharpe Ratio is used to evaluate the Portfolio.

ANALYSIS AND INTERPRETATION OF SBI


Table No.2 SHARE HOLDING PATTERN OF SBI
SHARE HOLDING PATTERN SHARES [%]

Foreign Institutions Govt. Holding Non Promoter Corp. Hold. Promoters Public and Others Total
(Source: Secondary Data)

94243276.00 93464733.00 122428.00 28339401.00 377207200.00 41503184.00 63,48,80,222.00 Chart No.3

14.84426 14.72163 0.019284 4.46374 59.41392 6.537168 100.00

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SHARE HOLDING PATTERN OF SBI 7% 0% 15% 15% 59% 0% 4% Foreign Institutions Govt Holding Non Promoter Corp. Hold. Promoters Public & Others
(Source: Secondary Data)

STATE BANK OF INDIA - RATIO ANALYSIS


Table No.3 BOOK VALUE ITEMS Mkt.: High Low EPS DPS
(Source: Secondary Data)

2004 05 961.95 552.50 80.01 12.5

2005 06 1378.70 684.15 81.77 14.0

2006 - 07 2475.25 845.00 83.91 14.0

2007 - 08 2540.00 991.10 103.94 21.5

2008 09 1376.40 894.00 133.16 21.5

CHART No. 4

Department of Management Science MES College of Engineering

[55]

Project Report 2010 Cochin Stock Exchange

(Source: Secondary Data)

Table No.4 PAY-OUT POLICY ITEMS 2004 05 2005 06 2006 - 07 2007 - 08 2008 09

Reported EPS

80.01

81.77

83.91

103.94

133.16

DPS

12.50

14.0

14.0

21.50

21.5

PAY-OUT RATIO (Source: Secondary Data)

0.1562305

0.171212

0.166845

0.206850

0.161460

CHART No.5

Department of Management Science MES College of Engineering

[56]

Project Report 2010 Cochin Stock Exchange

(Source: Secondary Data)

Table No. 5 RETURN ON EQUITY ITEMS Equity Share Capital Reserves and Surplus
NET WORTH

2004 - 05 526.3 23545.84 24072.14 4304.52 17.881750

2005 - 06 526.3 27117.79 27644.09 4406.67 15.940731

2006 - 07 526.3 30772.26 31298.56 4541.31 14.509645

2007 - 08 631.47 48401.19 49032.66 6729.12 13.723751

2008 09 634.88 48401.19 49036.07 8505.24 17.344865

PAT ROE (%)


(Source: Secondary Data)

Department of Management Science MES College of Engineering

[57]

Project Report 2010 Cochin Stock Exchange

CHART No.6

(Source: Secondary Data)

Table No.6 NORMALIZED PRICE EARNING RATIO ITEMS Reported EPS Mkt.: High Mkt.: Low Mkt.: High/EPS Mkt.: Low/EPS Average P/E
(Source: Secondary Data)

2004 05 80.01 961.95 552.50 12.022872 6.905387 9.464130

2005 - 06 81.77 1378.70 684.15 16.860707 8.366760 12.613734

2006 - 07 83.91 2475.25 845 29.498868 10.070313 19.784591

2007 - 08 103.94 2540.00 991.10 24.437175 9.535309 16.986242

2008 09 133.16 1376.40 894.00 10.336437 6.713728 8.525083

CHART No.7
Department of Management Science MES College of Engineering [58]

Project Report 2010 Cochin Stock Exchange

(Source: Secondary Data)

INTRINSIC VALUE CALCULATION: Dividend Pay-Out Ratio = Dividend declared -----------------------EPS Dividend Pay-out Ratio for 5 Years -----------------------------------------------5

Avg. Dividend Pay-out Ratio

0.156231+0.171212+0.166845+0.206850+0.16146 = ------------------------------------------------------------5 = Average Retention Ratio = = =


Department of Management Science MES College of Engineering

0.172520 1 - Average Dividend Pay-out Ratio 1 0.172520 0.82748


[59]

Project Report 2010 Cochin Stock Exchange

Average Return on Equity

Sum of ROE for 5 Years ------------------------------5

17.88175+15.940731+14.509645+13.723751+17.344865

----------------------------------------------------------5

=
Long term Growth Rate in Equity (g)

15.8801484 Average Retention Ratio x Avg. ROE 0.82748 x .15880 .1314050 Sum of PE Ratios for 5 Years ------------------------------------5

= = =

Normalized Avg. PE Ratio

9.464130+12.613734+19.784591+16.986242+8.525083 ----------------------------------------------------------------------5 = 13.474756 EPS for Current year x (1+g) 133.16 x (1+.1314050) 150.657890

Projected EPS for

= = =

Intrinsic Value

= Projected EPS x Normalized Avg. PE Ratio = = 150.657890x 13.474756 2030.07830

Projected DPS

= Dividend for Current Year x (1+g) = = 21.5 x (1+.1314050) 24.3252075

INTERPRETATION
Department of Management Science MES College of Engineering [60]

Project Report 2010 Cochin Stock Exchange

The stock is said to be over priced as the intrinsic value of the security (2030.07830) is lesser than current market price2269.45 (31st March2010). This means that the investor should sell the share as the price of the security may go up in future. The short term and long term solvency of the company is unsatisfactory. The projected earnings per share (EPS) and the dividend per share (DPS) of the security is estimated to be 150.65 and 24.32 respectively.

SBI TECHNICAL ANALYSIS


CHART No: 8

(Source: Secondary Data)

Department of Management Science MES College of Engineering

[61]

Project Report 2010 Cochin Stock Exchange

INFERENCE The 200 day EMA is rising, shows a long term bullish trend for the stock. The increasing 50 day EMA shows medium term bullish trend as well. Only the 5 day EMA shows a small downturn, which is not very significant for the long term investors. From the chart it is clear that both medium term and long term trend of this scrip is bullish.

CHART No: 9

(Source: Secondary Data) Department of Management Science MES College of Engineering [62]

Project Report 2010 Cochin Stock Exchange

INFERENCE It is very clear from the chart the ROC line is above the zero line, which is the overbought zone. Ideally, one should sell a share that is overbought. Hence it is highly advisable to sell this share at this level. CHART No: 10

(Source: Secondary Data)

INFERENCE MACD line is above the zero line and do not show any trend of turning down which means it is bullish and indicates a buying opportunity.

ANALYSIS AND INTERPRETATION OF ICICI BANK


Table No: 7 SHARE HOLDING PATTERN OF ICICI BANK
SHARE HOLDING PATTERN SHARES [%]

Foreign Institutions Govt. Holding Non Promoter Corp. Hold. Promoters

72,77,84,145.00 24,64,56,670.00 0.00 5,26,12,667.00 0.00

65.37469 22.13847 0.00 4.72604 0.00

Department of Management Science MES College of Engineering

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Project Report 2010 Cochin Stock Exchange

Public and Others Total


(Source: Secondary Data)

8,63,97,160.00 1,11,32,50,642.00 CHART No: 11 SHARE HOLDING PATTERN OF ICICI

7.7608 100.00

0%

5%

0% 8% Foreign Institutions Govt Holding Non Promoter Corp. Hold. 65% Promoters Public & Others

22%

(Source: Secondary Data)

ICICI BANK- RATIO ANALYSIS Table No.8 BOOK VALUE ITEMS Mkt.: High Low EPS DPS 2004 - 05 615.90 330.05 25.99 8.5 2005 06 925.00 440.00 27.35 8.5 2006 07 1348.00 791.15 32.88 10.0
[64]

2007 - 08 1465.00 282.15 36.02 11.0

2008 09 537.95 252.75 36.11 11.0

Department of Management Science MES College of Engineering

Project Report 2010 Cochin Stock Exchange (Source: Secondary Data)

CHART No.12

(Source: Secondary Data)

Table No: 9 PAY-OUT POLICY ITEMS Reported EPS DPS


PAY-OUT RATIO (Source: Secondary Data)

2004 - 05 25.99 8.5 0.327049

2005 06 27.35 8.5 0.310786

2006 07 32.88 10.0 0.304136

2007 - 08 36.02 11.0 0.305386

2008 -09 36.11 11.0 0.304625

Department of Management Science MES College of Engineering

[65]

Project Report 2010 Cochin Stock Exchange

CHART No.13

(Source: Secondary Data)

Table No. 10 RETURN ON EQUITY ITEMS Equity Share Capital Reserves and Surplus NET WORTH PAT ROE (%)
(Source: Secondary Data) Department of Management Science MES College of Engineering [66]

2004 - 05 736.76 11813.2 12549.96 2005.20

2005 06 889.83 21316.16 22205.99 2540.07

2006 - 07 899.34 23413.92 24313.26 3110.22

2007 - 08 1112.68 45357.53 46470.21 4157.73

2008 09 1113.29 48922.00 50035.29 4019.16 8.032651

15.9777401 11.4386703 12.7922787 8.9470867

Project Report 2010 Cochin Stock Exchange

CHART No.14

(Source: Secondary Data)

Table No.11 NORMALIZED PRICE EARNING RATIO ITEMS Reported EPS Mkt.: High Low Mkt.: High/EPS Mkt.: Low/EPS 2004 - 05 25.99 615.90 330.05 23.697576 12.699115 2005 - 06 27.35 925.00 440.00 33.820841 16.087751 2006 - 07 32.88 1348.00 791.15 40.997567 24.061740 2007 - 08 36.02 1465.00 282.15 40.671849 7.833148 2008 09 36.11 537.95 252.75 14.897535 6.999446

Department of Management Science MES College of Engineering

[67]

Project Report 2010 Cochin Stock Exchange

Average P/E
(Source: Secondary Data)

18.198346

24.954296

32.529654

24.252499

10.948491

CHART NO.15

(Source: Secondary Data)

INTRINSIC VALUE CALCULATION: Dividend Pay-Out Ratio Avg. Dividend Pay-out Ratio = Dividend declared = -----------------------EPS Dividend Pay-out Ratio for 5 Years = ---------------------------------------------5 0.327049+0.310786+0.304136+.305386+0.304625 ------------------------------------------------------------5 =
Department of Management Science MES College of Engineering

0.310396
[68]

Project Report 2010 Cochin Stock Exchange

Average Retention Ratio

= = =

1 - Average Dividend Pay-out Ratio 1 0.310396 0.689604 Sum of ROE for 5 Years ------------------------------5

Average Return on Equity

15.97774+11.43867+12.792279+8.947087+8.032651

------------------------------------------------------5 =
= = 11.437685%

Long term Growth Rate in Equity (g) = Average Retention Ratio x Avg. ROE 0.68904 x 0.114377 0.078875 Sum of PE Ratios for 5 Years ------------------------------------5

Normalized Avg. PE Ratio

18.198346+24.954296+32.529654+24.252499+10.948491 = ---------------------------------------------------------------------5 = 22.176657

Projected EPS for

= = =

EPS for Current year x (1+g) 36.11 x (1+0.078875) 38.958176 Projected. EPS x Normalized Avg. PE Ratio 38.958176 x 22.176657 863.962112

Intrinsic Value

= = =

Projected DPS

Dividend for Current Year x (1+g)


[69]

Department of Management Science MES College of Engineering

Project Report 2010 Cochin Stock Exchange

= = INTERPRETATION

11.00 x (1+0.078875) 11.867625

The stock is said to be over priced as the intrinsic value of the security (863.96) is less than current market price875.70 (31st March 2010). This means that the investor should sell the share as the price of the security may come down in future. The short term and long term solvency of the company is unsatisfactory. The projected earning per share (EPS) and the dividend per share (DPS) of the security is estimated to be 38.95 and 11.86 respectively

ICICI BANK TECHNICAL ANALYSIS

CHART No: 16

Department of Management Science MES College of Engineering

[70]

Project Report 2010 Cochin Stock Exchange

(Source: Secondary Data)

INFERENCE The 200 day EMA indicates a trend reversal. The medium term EMA shows an upward trend and is good for investors to hold the shares. The short term EMA also is on the rise, which further assures the investor to stay invested in this share.

CHART No: 17

Department of Management Science MES College of Engineering

[71]

Project Report 2010 Cochin Stock Exchange

(Source: Secondary Data)

INFERENCE The ROC line is moving from above the zero line, which is the oversold region. Those who want to invest in this share can now get ready to buy this share, since it is advisable to buy when the share is oversold. CHART No: 18

(Source: Secondary Data)

INFERENCE The MACD line above the zero line indicates a bullish trend. It is showing a decline in the trend reversal. An investor can hold this share for a lesser period.

Department of Management Science MES College of Engineering

[72]

Project Report 2010 Cochin Stock Exchange

ANALYSIS AND INTERPRETATION OF HDFC BANK


SHARE HOLDING PATTERN OF HDFC BANK Table No.12
SHARE HOLDING PATTERN SHARES [%]

Foreign Institutions Govt. Holding Non Promoter Corp. Hold. Promoters Public and Others Total
(Source: Secondary Data)

20,30,58,960.00 4,50,40,249.00 6,102.00 4,60,22,249.00 8,24,43,000.00 4,85,73,868.00 42,51,44,428.00 CHART No: 19

47.76234772 10.59410545 0.001435277 10.82508578 19.39176303 11.42526276 100.00

Department of Management Science MES College of Engineering

[73]

Project Report 2010 Cochin Stock Exchange (Source: Secondary Data)

HDFC BANK- RATIO ANALYSIS Table No.13 BOOK VALUE ITEMS Mkt.: High Low EPS DPS
(Source: Secondary Data)

2004 - 05 748.55 461.15 20.84 4.5

2005 06 1150.00 620.00 27.04 5.5

2006 - 07 1799.00 890.00 34.55 7.0

2007 08 1825.00 800.00 43.42 8.5

2008 09 1124.00 774.00 50.67 8.5

CHART No: 20

(Source: Secondary Data)

Department of Management Science MES College of Engineering

[74]

Project Report 2010 Cochin Stock Exchange

Table No.14 PAY-OUT POLICY ITEMS Reported EPS DPS


PAY-OUT RATIO
(Source: Secondary Data)

2004 - 05 20.84 4.5 0.215931

2005 06 27.04 5.5 0.203402

2006 07 34.55 7.0 0.202605

2007 08 43.42 8.5 0.195762

2008 09 50.67 8.5 0.167752

CHART No.21

(Source: Secondary Data)

Department of Management Science MES College of Engineering

[75]

Project Report 2010 Cochin Stock Exchange

Table No.15 RETURN ON EQUITY ITEMS Equity Share Reserves and Surplus NET WORTH PAT ROE (%)
(Source: Secondary Data)

2004 - 05 309.88 4209.67 4519.85 665.56 14.726245

2005 - 06 313.14 4986.39 5299.53 870.78 16.431268

2006 07 319.39 6113.76 6433.15 1141.45 17.743252

2007 08 354.43 11142.80 11497.23 1590.18 13.830984

2008 09 425.14 11142.8 11567.94 2152.09 18.603917

CHART No: 22

(Source: Secondary Data)

Department of Management Science MES College of Engineering

[76]

Project Report 2010 Cochin Stock Exchange

Table No.16 NORMALIZED PRICE EARNING RATIO ITEMS Reported EPS Mkt.: High Mkt.: Low Mkt.: High/EPS Mkt.: Low/EPS Average P/E
(Source: Secondary Data)

2004 - 05 20.84 748.55 461.15 35.918906 22.128119 29.023513

2005 06 27.04 1150 620 42.529586 22.928994 32.729290

2006 07 34.55 1799 890 52.069465 25.759768 38.914617

2007 08 43.42 1825.00 800.00 42.031322 18.424689 30.228006

2008 09 50.67 1124.00 774.00 22.182751 15.275311 18.729031

CHART No: 23

(Source: Secondary Data)

Department of Management Science MES College of Engineering

[77]

Project Report 2010 Cochin Stock Exchange

INTRINSIC VALUE CALCULATION: Dividend Pay-Out Ratio = Dividend declared -----------------------EPS

Avg. Dividend Pay-out Ratio =

Dividend Pay-out Ratio for 5 Years -------------------------------------------5 0.215931+0.203402+0.202605+0.195762+0.167752 --------------------------------------------------------------5 = 0.197090 1 - Average Dividend Pay-out Ratio 1 0.197090 0.80291 Sum of ROE for 5 Years ------------------------------5

Average Retention Ratio

= = =

Average Return on Equity

14.726245+16.431268+17.743252+13.830984+18.603917

= ----------------------------------------------------------5

=
= = Normalized Avg. PE Ratio =

16.267133

Long term Growth Rate in Equity (g)= Average Retention Ratio x Avg. ROE 0.80291 x 0.162671 0.130610 Sum of PE Ratios for 5 Years ------------------------------------5
[78]

Department of Management Science MES College of Engineering

Project Report 2010 Cochin Stock Exchange

29.023513+32.729290+38.914617+30.228006+18.729031 ----------------------------------------------------------------------5 = 29.924891 EPS for Current year x (1+g) 50. 67 x (1+0.130610) 57.288009

Projected EPS for

= = =

Intrinsic Value

Projected. EPS x Normalized Avg.PRatio = = 57.288009 x 29.924891 1714.337425

Projected DPS

Dividend for Current Year x (1+g) = = 85 x (1+0.130610) 9.610185

INTERPRETATION The stock is said to be under priced as the intrinsic value of the security (1714.34) is higher than current market price 1700.40 (31st March 2010). This means that the investor should buy the share as the price of the security may come up in future. The short term and long term solvency of the company is unsatisfactory. The projected earnings per share (EPS) and the dividend per share (DPS) of the security is estimated to be 57.2 and 9.6 respectively

Department of Management Science MES College of Engineering

[79]

Project Report 2010 Cochin Stock Exchange

HDFC BANK TECHNICAL ANALYSIS


CHART No: 24

(Source: Secondary Data)

INFERENCE The 200 day, 50 day, 5 day EMA lines are showing increasing trend. This is an indicator of the current upward trend continuing for a longer period either on the short term, medium term and long term. The investor can stay invested in this share.

Department of Management Science MES College of Engineering

[80]

Project Report 2010 Cochin Stock Exchange

CHART No: 25

(Source: Secondary Data)

INFERENCE The ROC line is in the overbought region at present and indicates a selling opportunity. But as it is clear from the graph this is slowly changing and is taking a downward turn. CHART No: 26

Department of Management Science MES College of Engineering

[81]

Project Report 2010 Cochin Stock Exchange

(Source: Secondary Data)

INFERENCE The MACD line above the zero line is a clear indicator or the bullish trend which is visible in this share for some time now. It may go even higher. It may go even higher. The investor can stay invested in this share for now.

ANALYSIS AND INTERPRETATION OF AXIS BANK


Table No.17 SHARE HOLDING PATTERN OF AXIS BANK
SHARE HOLDING PATTERN SHARES [%]

Foreign Institutions Govt. Holding Non Promoter Corp. Hold. Promoters Public and Others Total
(Source: Secondary Data)

12,52,00,444.00 3,78,47,989.00 0.00 2,40,12,514.00 15,22,27,205.00 1,96,87,777.00 35,89,75,929.00 CHART No: 27

34.877114 10.54332225 0.00 6.689171073 42.4059645 5.484428177 100.00

Department of Management Science MES College of Engineering

[82]

Project Report 2010 Cochin Stock Exchange

(Source: Secondary Data)

AXIS BANK - RATIO ANALYSIS Table No.18 BOOK VALUE ITEMS 2004 05 2005 06 2006 07 2007 - 08 2008 - 09

Mkt.: High Low

315.00 169.10

512.90 221.50

1025.00 399.00

1291.00 362.80

575.50 278.50

EPS DPS

11.81 2.8

16.87 3.5

22.62 4.5

28.91 6.0

45.87 6.0

(Source: Secondary Data)

Department of Management Science MES College of Engineering

[83]

Project Report 2010 Cochin Stock Exchange

CHART No: 28

(Source: Secondary Data)

Table No.19 PAY-OUT POLICY ITEMS Reported EPS DPS


PAY-OUT RATIO
(Source: Secondary Data)

2004 05 11.81 2.8 0.237087

2005 - 06 16.87 3.5 0.207469

2006 - 07 22.62 4.5 0.198939

2007 - 08 28.91 6.0 0.207541

2008 - 09 45.87 6.0 0.130804

CHART No: 29

Department of Management Science MES College of Engineering

[84]

Project Report 2010 Cochin Stock Exchange

(Source: Secondary Data)

Table No.20 RETURN ON EQUITY ITEMS Equity Share Capital Reserves and Surplus NET WORTH PAT ROE (%)
(Source: Secondary Data) Department of Management Science MES College of Engineering [85]

2004 - 05 273.80 2134.39 2408.19 334.58 13.893422

2005 06 278.69 2593.49 2872.18 485.08 16.888914

2006 - 07 281.63 3111.60 3393.23 659.03 19.421907

2007 - 08 357.71 3410.79 8768.50 1071.03 12.214518

2008 09 358.98 8410.79 8769.21 1645.21 18.761211

Project Report 2010 Cochin Stock Exchange

CHART No: 30

(Source: Secondary Data)

NORMALIZED PRICE EARNING RATIO OF AXIS BANK Table No.21 NORMALIZED PRICE EARNING RATIO: ITEMS Reported EPS Mkt.: High Mkt.: Low Mkt.: High/EPS Mkt.: Low/EPS 2004 - 05 11.81 315.00 169.10 26.672312 14.318374 2005 - 06 16.87 512.90 221.50 30.403082 13.129816 2006 - 07 22.62 1025.00 399.00 45.313882 17.639257 2007 - 08 28.91 1291.00 362.80 44.655828 12.549291 2008 09 45.87 575.50 278.50 12.546327 6.071506

Department of Management Science MES College of Engineering

[86]

Project Report 2010 Cochin Stock Exchange

Average P/E
(Source: Secondary Data)

20.495343

21.766449

31.476570

28.602560

9.308917

CHART No: 31

(Source: Secondary Data)

INTRINSIC VALUE CALCULATION: Dividend Pay-Out Ratio = Dividend declared -----------------------EPS Dividend Pay-out Ratio for 5 Years -------------------------------------------5

Avg. Dividend Pay-out Ratio

0.237087+0.207469+0.198939+0.207541+0.130804 ---------------------------------------------------------------5
[87]

Department of Management Science MES College of Engineering

Project Report 2010 Cochin Stock Exchange

= Average Retention Ratio = = =

0.196368 1 - Average Dividend Pay-out Ratio 1 0.196368 0.803632 Sum of ROE for 5 Years ------------------------------5

Average Return on Equity

=13.893422+16.888914+19.421908+12.214518+18.761211 --------------------------------------------------5

=
Long term Growth Rate in Equity (g) = = Normalized Avg. PE Ratio =

16.235995

= Average Retention Ratio x Avg. ROE 0.803632 x 0.16235995 0.130478 Sum of PE Ratios for 5 Years ------------------------------------5

20.495343+21.766449+31.476570+28.602560+9.308917 -------------------------------------------------------5 = Projected EPS for = = = Intrinsic Value 22.329978 EPS for Current year x (1+g) 28.91 x (1+0.130478) 32.68212

= Projected. EPS x Normalized Avg. PE Ratio


[88]

Department of Management Science MES College of Engineering

Project Report 2010 Cochin Stock Exchange

= = Projected DPS =

32.68212 x 22.329978 729.791021

Dividend for Current Year x (1+g) = = 6 x (1+0.130478) 6.782868

INTERPRETATION The stock is said to be over priced as the intrinsic value of the security (729.79) is less than current market price 988.70 (31st March 2010). This means that the investor should sell the share as the price of the security may come down in future. The short term and long term solvency of the company is unsatisfactory. The projected earnings per share (EPS) and the dividend per share (DPS) of the security is estimated to be 32.68 and 6.78 respectively.

AXIS BANK TECHNICAL ANALYSIS


CHART No: 32

Department of Management Science MES College of Engineering

[89]

Project Report 2010 Cochin Stock Exchange

(Source: Secondary Data)

INFERENCE The long, medium and short term EMA are in a bullish trend. All are showing a upward trend. Investor with a long term investment perspective can still buy this share at the current rate.

CHART No: 33

Department of Management Science MES College of Engineering

[90]

Project Report 2010 Cochin Stock Exchange

(Source: Secondary Data)

INFERENCE The ROC line is above the zero line at present and if it crosses the zero line from above to below it is a selling opportunity otherwise it is a buying opportunity. CHART No: 34

(Source: Secondary Data)

INFERENCE The MACD line above the zero line and it is a bullish trend. But it may go down as the MACD is just above the zero line. The investor may hold the share for a short term period.

Department of Management Science MES College of Engineering

[91]

Project Report 2010 Cochin Stock Exchange

ANALYSIS AND INTERPRETATION OF PNB


Table No.22 SHARE HOLDING PATTERN OF PNB
SHARE HOLDING PATTERN SHARES [%]

Foreign Institutions Govt. Holding Non Promoter Corp. Hold. Promoters Public and Others Total
(Source: Secondary Data)

5,77,84,916.00 5,77,73,633.00 0.00 34,10,941.00 18,22,41,300.00 1,40,91,710.00 31,53,02,500.00 CHART No: 35

18.32681821 18.32323975 0.00 1.081799542 57.79887568 4.469266815 100.00

Department of Management Science MES College of Engineering

[92]

Project Report 2010 Cochin Stock Exchange (Source: Secondary Data)

PNB - RATIO ANALYSIS Table No.23 BOOK VALUE ITEMS Mkt.: High Low EPS DPS
(Source: Secondary Data)

2004 - 05 521.00 337.55 43.98 6.0

2005 06 584.90 300.00 44.81 9.0

2006 07 700.00 400.00 47.26 10.0

2007 - 08 721.00 332.35 62.77 13.0

2008 09 544.00 286.20

94.11 13.0

CHART No: 36

(Source: Secondary Data)

Department of Management Science MES College of Engineering

[93]

Project Report 2010 Cochin Stock Exchange

Table No.24 PAY-OUT POLICY ITEMS Reported EPS DPS


PAY-OUT RATIO
(Source: Secondary Data)

2004 - 05 43.98 6.0 0.136426

2005 06 44.81 9.0 0.200848

2006 07 47.26 10.0 0.211595

2007 - 08 62.77 13.0 0.207105

2008 09 94.11 13.0 0.138136

CHART No: 37

(Source: Secondary Data)

Department of Management Science MES College of Engineering

[94]

Project Report 2010 Cochin Stock Exchange

Table No. 25 RETURN ON EQUITY: ITEMS Equity Share Capital Reserves and Surplus NET WORTH PAT ROE (%)
(Source: Secondary Data)

2004 - 05 315.30 7533.51 7848.81 1410.12 17.966036

2005 06 315.30 8758.68 9073.98 1439.31 15.861948

2006 07 315.30 9796.31 10111.61 1540.08 15.230809

2007 - 08 315.30 10467.35 10782.65 2048.76 19.000524

2008 09 315.30 10467.35 10782.65 2967.08 27.517169

CHART No: 38

(Source: Secondary Data)

Department of Management Science MES College of Engineering

[95]

Project Report 2010 Cochin Stock Exchange

NORMALIZED PRICE EARNING RATIO PNB Table No.26 NORMALIZED PRICE EARNING RATIO: ITEMS Reported EPS Mkt.: High Mkt.: Low Mkt.: High/EPS Mkt.: Low/EPS Average P/E
(Source: Secondary Data)

2004 - 05 43.98 521.00 337.55 11.846294 7.675080 9.760687

2005 06 44.81 584.90 300.00 13.052890 6.694934 9.873912

2006 07 47.26 700.00 400.00 14.811680 8.463817 11.637749

2007 - 08 62.77 721.00 332.35 11.486379 5.294727 8.390553

2008 09 94.11 544.00 286.20 5.780470 3.041122 4.410796

CHART No: 39

Department of Management Science MES College of Engineering

[96]

Project Report 2010 Cochin Stock Exchange

(Source: Secondary Data)

INTRINSIC VALUE CALCULATION: Dividend declared -----------------------EPS Dividend Pay-out Ratio for 5 Years -------------------------------------------5

Dividend Pay-Out Ratio

Avg. Dividend Pay-out Ratio

0.136426+0.200848+0.211595+0.207105+0.138136 --------------------------------------------------------------5 = 0.178822 1 - Average Dividend Pay-out Ratio 1 0.178822 0.821178


[97]

Average Retention Ratio

= = =

Department of Management Science MES College of Engineering

Project Report 2010 Cochin Stock Exchange

Average Return on Equity

Sum of ROE for 5 Years ------------------------------5

17.966036+15.861948+15.230809+19.000524+27.517169

-----------------------------------------------------5

=
= = Normalized Avg. PE Ratio =

19.115297

Long term Growth Rate in Equity (g) = Average Retention Ratio x Avg. ROE 0.821178 x 0.191153 0.156971 Sum of PE Ratios for 5 Years ------------------------------------5

9.760687+9.873912+11.637749+8.390553+4.410796 ----------------------------------------------------------------5 = 8.814739 EPS for Current year x (1+g) 62.77 x (1+0.156971) 72.623070

Projected EPS for

= = =

Intrinsic Value

= Projected. EPS x Normalized Avg. PE Ratio = = 72.623070 x 8.814739 640.153407

Projected DPS

= Dividend for Current Year x (1+g) = = 13 x ((1+0.156971) 15.040623

INTERPRETATION
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The stock is said to be over priced as the intrinsic value of the security (640.15) is less than current market price 906.85 (31st March 2010). This means that the investor should sell the share as the price of the security may come down in future. The short term and long term solvency of the company is unsatisfactory. The projected earnings per share (EPS) and the dividend per share (DPS) of the security is estimated to be 72.62 and 15.04 respectively.

PNB TECHNICAL ANALYSIS


CHART No: 40

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(Source: Secondary Data)

INFERENCE The 200 day EMA is rising, shows a long term bullish trend for the stock. The increasing 50 day EMA shows medium term bullish trend as well. Only the 5 day EMA shows a small downturn, which is not very significant for the long term investors. From the chart it is clear that both medium term and long term trend of this scrip is bullish.

CHART No: 41

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(Source: Secondary Data)

INFERENCE The ROC line is above the zero line, which is the overbought zone. Ideally, one should sell a share that is overbought. Hence it is highly advisable to sell this share at this level CHART No: 42

(Source: Secondary Data)

INFERENCE Since the MACD line is showing is above the zero line it i still the bullish trend and it does not show any signs of downward turn now and hence is a buying opportunity.

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COMPARISON OF MARKET VALUE WITH INTRINSIC VALUE Table No: 27


ITEMS MARKET VALUE INTRINSIC VALUE
(Source: Secondary Data)

SBI 2269.4 5 2030.0 7

ICICI 875.7 863.96

HDFC 1700.4 1714.3 3

AXIS 988.7 729.79

PNB 906.85 640.15

CHART No: 43

INTERPRETATION For all of these Banks except HDFC the market price is higher than the intrinsic value, the scrip is considered to be over priced and it is not suitable for the investment purposes. So investor cannot hold his investment in these stock or sell additional shares to the market. Out of these SBI AXIS and PNB Bank have a significant difference in the
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market value and the intrinsic value. So the investment in these two stocks are said to be less attractive.

PORTFOLIO MANAGEMENT
CALCULATION OF ALPHA AND BETA STATE BANK OF INDIA Return = Closing Opening * 100 Opening 2004-05 642.60 656.95 2005-06 584.80 968.05 2006-07 913.65 992.90 2007-08 1105.25 1598.85 2008-09 1776.35 1066.55

Opening Closing

(Source: Secondary Data)

SBI Return (Y) 2.23 65.53 8.67 44.65 -39.95 Calculation Years 1 2 3 4 5 Total Y 2.23 65.53 8.67 44.65 -39.95 81.13 X (Index Return) 11.86 63.18 11.98 37.35 -36.42 92.95 X2 140.65 4648.51 143.52 1395.02 1326.41 7654.11 XY 26.44 4467.83 103.86 1667.67 1454.97 7720.77

(Source: Secondary Data)

B = nXY (X) (Y nX2 - (X)2


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= (5 * 7720.77) (92.95 * 81. 13) (5 * 7654.11) 8639.70


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= 1.04

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= y BX

= 81.13 1.04 * 92.95 5 5

= -3.11

The Expected Return from SBI, when the Index moves up by 18% can be calculated as: Ri = +(Rm) = -3.11 + 1.04(18) = 15.61 ICIC1 BANK Return = Closing Opening * 100 Opening 2004-05 315.20 393.00 2005-06 360.20 589.25 2006-07 590.25 853.10 2007-08 865.90 770.10 2008-09 879.90 332.60

Opening Closing

(Source: Secondary Data)

ICICI Return (Y) 24.68 63.58 44.53 -11.06 -62.17 Calculation Years 1 2 3 4 5 Total Y 24.68 63.58 44.53 -11.06 -62.17 59.56 X (Index Return) 11.86 63.18 16.98 37.35 -36.42 92.95 X2 140.65 4648.51 143.52 1395.02 1326.41 7654.11 XY 292.70 4334.88 533.46 -413.09 2264.23 7012.18

(Source: Secondary Data)

nXY (X) (Y) nX - (X)


2 2

= (5 * 7012.18) (92.95 * 59.56) (5 * 7654.11) 8639.70

= 0.996

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= y X

= 59.56 0.97 * 92.95 5 5

= 6.6

The Expected Return from SBI, when the Index moves up by 18% can be calculated as: Ri = +(Rm) = 6.6 + 0.97(18) = 11.32

PUNJAB NATIONAL BANK Return = Closing Opening * 100 Opening 2004-05 375.10 393.30 2005-06 346.20 471.20 2006-07 433.05 471.65 2007-08 503.40 508.15 2008-09 550.90 410.90

Opening Closing

(Source: Secondary Data)

PNB Return (Y) 4.85 36.10 8.91 0.94 -25.41 Calculation Years 1 2 3 4 5 Total Y 4.85 36.10 8.91 0.94 -25.41 25.39 X (Index Return) 11.86 63.18 11.98 37.35 -36.42 92.95 X2 140.65 4648.51 143.52 1395.02 1326.41 7654.11 XY 57.52 2461.29 106.74 35.10 925.43 3586.08

(Source: Secondary Data)

n XY (X) (Y) nX2 - (X)2

= (5 * 3586.08) (92.95 * 25.39) (5 * 7654.11) 8639.70 = -4.59

= 0.52

= y X = 25.39 0.52 * 92.95


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The Expected Return from SBI, when the Index moves up by 18% can be calculated as: Ri= +(Rm) = -4.59 + 0.52(18) = 4.77 AXIS BANK Return = Closing Opening * 100 Opening 2004-05 155.15 242.05 2005-06 230.10 356.35 2006-07 347.05 490.15 2007-08 467.85 781.15 2008-09 924.30 414.50

Opening Closing

AXIS Return (Y) 56.01 54.86 41.23 66.96 -555.15 Calculation Years 1 2 3 4 5 Total Y 56.01 54.86 41.23 66.96 -555.15 163.91 X (Index Return) 11.86 63.18 11.98 37.35 -36.42 92.95 X2 140.65 4648.51 143.52 1395.02 1326.41 7654.11 XY 664.27 3740.35 493.93 2500.95 2008.56 9408.03

(Source: Secondary Data)

= nXY (X) (Y) nX2 - (X)2

= (5 * 9408.06) (92.95 * 163.91) (5 * 7654.11) 8639.70 = 12.89

= 1.07

= y X = 163.9 1.07 * 92.95 5 5


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The Expected Return from SBI, when the Index moves up by 18% can be calculated as: R i= +(Rm) = 12.89 + 1.07(18) = 32.15 HDFC BANK Return = Closing Opening * 100 Opening 2004-05 375.90 544.25 2005-06 537.20 773.50 2006-07 826.60 949.40 2007-08 1026.15 1379.95 2008-09 1514.85 967.85

Opening Closing

(Source: Secondary Data)

HDFC Return (Y) 44.78 43.98 14.85 28.63 -36.10 Calculation Years 1 2 3 4 5 Total Y 44.78 43.98 14.85 28.63 -36.10 96.14 X (Index Return) 11.86 63.18 11.98 37.35 -36.42 92.95 X2 140.65 4648.51 143.52 1395.02 1326.41 7654.11 XY 531.09 2998.55 177.90 1069.33 1314.76 6091.63

(Source: Secondary Data)

= nXY (X) (Y) nX2 - (X)2

= (5 * 6091.63) (92.95 * 96.14) (5 * 7654.11) 8639.70 = 5.84

= 0.72

= y X = 96.14 0.72 * 92.95 5 5

The Expected Return from SBI, when the Index moves up by 18% can be calculated as:
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Ri = +(Rm) = 5.84 + 0.72(18) = 18.80 CALCULATION OF INDEX RETURNS (X)

2004-05 Opening Closing 2074.68 2320.86

2005-06 2406.95 4048.24

2006-07 4112.59 4605.89

2007-08 4379.37 6015.47

2008-09 5769.05 3667.79

(Source: Secondary Data)

INDEX Return (X) 11.86 63.18 11.98 37.35 -36.42

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PORTFOLIO CONSTRUCTION
BASED ON EQUAL WEIGHT BASED ON PE RATIO BASED ON MARKET CAPITALIZTION ALFHA, BETA AND RETURN BANKS SBI ICICI HDFC AXIS PNB
(Source: Secondary Data)

ALFA -3.1 -6.6 5.84 12.89 -4.89

BETA 1.04 0.996 0.72 1.07 0.52

RETURN 15.61 11.32 18.80 32.15 4.77

MARKETVARIENCE CALCULATIONS Market Variance = NX (X) N = 5*7654.11 8639.70 25 = 1185.2

WORKING NOTE X (INDEX RELATION) 11.86 63.18 11.98 37.35 -36.42 TOTAL = 92.95
(Source: Secondary Data)

X 140.65 4648.51 143.52 1395.02 1326.41 TOTAL = 7654.11

PORTFOLIO BASED ON EQUAL WEIGHT


Table No: 28
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Scrips SBI ICICI HDFC PNB AXIS TOTAL


(Source: Secondary Data)

Weight age 0.20 0.20 0.20 0.20 0.20 1.00

Percentage 20 20 20 20 20 100

PORTFOLIO ALPHA & PORTFOLIO BETA COMPANY (Alpha) (Beta) Weight SBI -3.11 1.04 0.20 ICICI -6.6 0.966 0.20 HDFC 5.84 0.72 0.20 PNB -4.59 0.52 0.20 AXIS 12.89 1.07 0.20 TOTAL 4.43 4.32 1.00
(Source: Secondary Data)

*W -0.622 -1.32 1.168 -0.918 2.578 0.886

*W 0.208 0.199 0.144 0.104 0.214 0.869

PORTFOLIO RETURN Rp = p+pRm 0.886+(0.869*18.59) = 17.04 PORTFOLIO RISK p = p* m p = 0.755*1185.2 = 29.91 (Note: Residual Variance has been ignored)

PORTFOLIO BASED ON P/E RATIO


Table No: 29 Weight age 0.14
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Scrips SBI

P/E Ratio 13.47

Percentage 14

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ICICI HDFC PNB AXIS TOTAL


(Source: Secondary Data)

22.17 29.92 22.32 8.81 96.69

0.23 0.30 0.23 0.10 1

23 30 23 10 100

PORTFOLIO ALPHA AND BETA Security Alpha Beta SBI -3.11 1.04 ICICI -6.6 0.966 HDFC 5.84 0.72 PNB -4.59 0.52 AXIS 12.89 1.07 TOTAL 4.43 4.32
(Source: Secondary Data)

Weight 0.14 0.23 0.30 0.23 0.10 1

*weight -0.435 -1.518 1.752 -0.459 2.964 2.304

*weight 0.145 0.229 0.216 0.052 0.246 0.888

PORTFOLIO RETURN Rp = p+pRm 2.30+(0.888*18.59) = 18.807 PORTFOLIO RISK p = p* m p = 0.8570*1185.2 = 30.57 (Note: Residual Variance has been ignored)

PORTFOLIO BASED ON MARKET CAPITALIZATION


Scrips SBI ICICI
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Table No: 30 Market Capitalization Weight age 1,31.991.55 97.210.81


0.30 0.22
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Percentage 30 22

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HDFC PNB AXIS TOTAL


(Source: Secondary Data)

84,458.26 51,954.08 67,386.42


433001.12

0.20 0.12 0.16 1

20 12 16 100

Security SBI ICICI HDFC PNB AXIS TOTAL

Alpha -3.11 -6.6 5.84 -4.59 12.89 4.43

Beta 1.04 0.966 0.72 0.52 1.07 4.32

Weight *weight *weight 0.30 -0.933 0.312 0.22 0.20 0.12 0.16 1
-1.452 1.168 -0.550 2.062 0.212 0.144 0.062 0.171

0.295

0.901

(Source: Secondary Data)

PORTFOLIO RETURN Rp = p+pRm 0.295+(0.901*18.59) = 17.04 PORTFOLIO RISK p = p* m p = 0.8118*1185.2 = 31.01 (Note: Residual Variance has been ignored) PORTFOLIO EVALUATION It is the last step in the process of portfolio management. Through portfolio evaluation investors tries to find out how well the portfolio has performed. Portfolio evaluation comprises of performance measurement and performance evaluation. Sharpe ratio(S.R) and Treynor ratio(TR) are the two statistical tools used in the performance measurement.
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SHARPE RATIO SR = Rp-Rf p TREYNOR RATIO TR = Rp-Rf Bp RISK FREE (Rf) FACTORS Rf value is taken as Rf = 6.76

SR CALCULATION Based on Equal Weight Rp=17.04 p=29.91


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p=0.869 S.R = 17.04-6.764 = 0.343 29.91 Based on PE Ratio Rp=18.80 p =30.57 p=0.888 SR = 18.80-6.764 = 0.393 30.57

Based on Market Capitalization Rp=17.04 p =31.04 p=0.926 SR = 17.04-6.764 = 0.331 31.04

T R CALCULATION Based on Equal Weight

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TR = 17.04-6.764 = 11.82 0.869 Based on PE Ratio TR = 18.80-6.764 = 13.55 0.888 Based on Market Capitalization TR = 17.04-6.764 = 11.405 0.901 Comparison of SR & TR SR 0.343 0.393 0.331 RANK II I III TR 11.82 13.55 11.405 RANK II I III

Bases on Equal Weight Based on P/E Ratio Based on Market Capitalization


(Source: Secondary Data)

INFERENCE From the portfolio evaluation using Treynor and Sharpe Ratio it is found that Portfolio based on PE Ratio is ranked best among the other types of portfolios.

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CHAPTER VII FINDINGS, SUGGESTIONS & CONCLUSION

FINDINGS 1. FUNDAMENTAL ANALYSIS


STATE BANK OF INDIA.

The stock is said to be over priced as the intrinsic value of the security is less than market price.

This means that the investor should sell the share as the price of the security may come down in future.

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In the year 2009, the Net-profit margin, the Return on Equity (ROE) and Earnings per Share (EPS) has slightly increased, and Average P/E ratio has decreased slightly.

The projected Earnings per Share (EPS) and Dividend per Share (DPS) of the security is estimated to be Rs. 150.68 and Rs. 24.325 respectively.

ICICI BANK.

The stock is said to be over priced as the intrinsic value of the security is less than market price.

This means that the investor should sell the share as the price of the security may come down in future.

In the year 2009, the Net-profit margin, Return on Equity (ROE) and Average P/E ratio has slightly decreased.

Earnings per Share (EPS) have increased slightly. The projected Earnings per Share (EPS) and the dividend per share (DPS) of the security is estimated to be 38.96and 118.67 respectively

HDFC BANK The stock is said to be under priced, as the intrinsic value of the security is higher than market price.

This means that the investor should buy the share as the price of the security may come up in future.

In the year 2009, the Net-profit margin has slightly increased, Earnings per Share (EPS) and the Return on Equity (ROE) has increased slightly.

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Average P/E ratio have decreased. . The projected Earnings per Share (EPS) and the dividend per share (DPS) of the security is estimated to be 57.29 and 96.1 respectively.

AXIS BANK

The stock is said to be over priced as the intrinsic value of the security is less than market price.

This means that the investor should sell the share as the price of the security may come less in future.

In the year 2009, the Net-profit margin has slightly increased, Earnings per Share (EPS) and the Return on Equity (ROE) has increased.

Average P/E ratio have decreased.. The projected Earnings per Share (EPS) and Dividend per Share (DPS) of the security is estimated to be Rs. 32.68 and Rs. 67.82 respectively.

PUNJAB NATIONAL BANK

The stock is said to be over priced as the intrinsic value of the security is less than market price.

This means that the investor should sell the share as the price of the security may come down in future.

In the year 2009, the Net-profit margin has slightly increased, Earnings per Share (EPS) and the Return on Equity (ROE) has increased.

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Average P/E ratio has decreased. The projected Earnings per Share (EPS) and Dividend per Share (DPS) of the security is estimated to be Rs. 72.62 and Rs.150.41 respectively

2. TECHNICAL ANALYSES
The short term EMA 5 days gives a slightly bearish trend for all scrips except SBI and PNB The medium and long term EMA is bullish for all scrips. ROC graphs give sell advice on SBI, PNB, ICICI and HDFC bank scrips and buy for ICICI.

MACD graphs for all scrips indicate a bullish trend. The long term and medium term predictions are bullish for all the selected banking scrips. This means investor can hold the shares or new investor can buy the shares.

3. PORTFOLIO CONSTRUCTION ANALYSIS AND SELECTION


After evaluating the three portfolios which were constructed with the different proportions of the five selected securities and measuring performance based on Sharpe and Treynor Ratios, it has been found that, the portfolio based on P/E Ratio ranks highest. This has a Sharpe ratio of 0.393 and Treynor ratio of 13.55. This confirms investors trust in the PE Ratio in buying a companys scrip.
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SUGGESTIONS
STATE BANK OF INDIA The present trend suggest the investors to sell the shares for long term investment, as the intrinsic value of share is lesser than the market value. ICICI BANK

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As the market price of the share is overvalued when compared to the intrinsic value, it is advisable for the investors to sell the shares for long term investment. Because the market price of the shares may decrease in future. HDFC BANK There has been a significant difference between the market value and the intrinsic value. Hence the present trend recommends the investors to buy the share for long term investment. AXIS BANK Since the market price is higher than the intrinsic value, such a share is considered to be over priced and it is suitable for the investment purpose. If necessary more shares can be sold. PUNJAB NATIONAL BANK The stock price is said to be over priced as the intrinsic value of the security is lesser than the market price. Here the investor cannot hold the existing shares.

CONCLUSION
The focus of the study was construction of Portfolio and its evaluation to find the optimal portfolio and Security analysis on the selected five securities in the banking sector. Out of the ten companies, which were taken them on the basis of market capitalization from the BSE (Bombay Stock Exchange) list, five companies were selected to perform the
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detailed study. Data were selected from the secondary sources. The analysis was done with five years data. Both relevant fundamental and technical analysis were used for the analysis. The fundamental analysis had shown the real position of the Indian economy, which is in a booming stage and the stock market indicating the best buying and selling opportunities. Selected banks have been analyzed for their performance in the last five years. This analysis revealed that all the banks have shown consistently good performance and the performance is improving every year. Therefore the performances of all these banks are likely to be much better in the years to come. This is the best time to invest money in shares, especially in banking sector. Now the market is moving up from the financial crisis. So the investors recommended to buy the shares. The intrinsic values of shares are higher than the current market price of shares. It indicates the coming movement of shares. Based on three portfolios (PE ratio Market Capitalization and Equal Weight), we invest on the basis of PE Ratio was more profitable.

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CHAPTER VIII BIBLIOGRAPHY

BIBLIOGRAPHY

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DONALD E. FISCHER AND RONALD J. JORDAN, Security Analysis and portfolio Management New Delhi: Prentice-Hall of India Private Ltd. 1998. KWAN, CLARENCE, Optimal Portfolio, bx.businessweek.com/...clarencekwan/12078054773844019468-9d5eff11ed4199d58fbb3e424021f9d P JANAKI RAO & S DURGA RAO, Investment decisions, Work911/article.htm PRASANNA CHANDRA. Investment Analysis and Portfolio management, New Delhi: Tata Mc Graw Hill Publishing Company Limited, 2002 Prof. VR GANESH, Analysis of Banking Industries, www. Woopdia.com/business_article/095345432.htm SREE RAM G, Banking sector in Inida, www.jomfp.in/article.asp?issn=0973029X;year=2008 DANIEL GIAMODIURS AND LAONNIS S VRONTOS, Impact of modeling time varying covariance/correlation, www.aueb.gr/pages_en/cv/en/1240.pdf S. KEVINN, Portfolio Management, New Delhi: Prentice-Hall of India Private Ltd. 2003.

www.bse-inda.com www.capitaline.com www.indiabuilts.com www.equitymaster.com www.economywatch.com www.cochinstockexchange.com


www.money.rediff.com

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CHAPTER XI ANNEXURE

Punjab National Bank Industry :Banks - Public Sector BALANCE SHEET

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Punjab National Bank Industry :Banks - Public Sector PROFIT AND LOSS ACCOUNT
Year Year INCOME : Interest Earned + SOURCES OF FUNDS : Other Income + Total Capital + II. Expenditure Reserves Total + + Interest expended Mar 09(12) Mar 09 19,326.16 3,224.42 22,550.58 315.30 Mar 08(12) Mar 08 14,265.02 2,026.46 16,291.48 315.30 Mar 07(12) Mar 07 11,236.14 1,932.71 13,168.85 315.30 10,120.16 6,022.91 Mar 06(12) Mar 06 9,584.15 1,901.00 11,485.15 315.30 9,061.06 4,917.39 2,114.98 119,684.92 455.22 186.64 6,664.87 1,777.05 9,623.64 412.83 172.73 145,349.79 10,036.84 1,439.31 23,394.55 1.89 1,437.42 1,397.14 0.00 41,055.31 0.00 74,627.37 359.83 680.28 1,030.23 215.71 3,845.19 183.49 90.00 0.00 44.81 145,349.79 287.79 53,035.43 5,704.17 Mar 05(12) Mar 05 8,459.85 2,186.36 10,646.21 315.30 7,846.00 4,453.11 2,121.23 103,166.89 384.44 183.28 2,718.29 1,457.07 12,222.24 494.64 142.32 126,268.72 9,236.09 1,410.12 9,460.20 0.46 1,409.66 1,628.83 0.00 50,672.83 0.00 60,412.75 352.53 859.93 965.23 197.66 3,128.88 0.00 60.00 0.00 43.98 126,268.72 248.93 43,001.29 4,046.07

14,338.33 12,295.30 12,003.04 8,730.86

Payments to/Provisions for Employees 2,924.38 2,461.54 2,352.45 Deposits + 209,760.50 166,457.23 139,859.67 Operating Expenses & Administrative Expenses + 663.76 563.61 485.00 Depreciation Borrowings ++ Other Expenses, Provisions & Contingencies+ Other Liabilities & Provisions + Provision for Tax + Deferred Tax + TOTAL LIABILITIES Total III. Profit & Loss APPLICATION OF FUNDS : Reported Net Profit Cash & Balances with RBI+ Extraordinary Items + Adjusted Net Profit Balances with Banks & money at Call+ Prior Year Adjustments + Investments + forward Profit brought IV. Appropriations Advances + Transfer to Statutory Reserve + Transfer to Other Fixed Assets + Reserves + Trans. to Government /Proposed Dividend + Other Assets + forward to Balance Sheet Balance carried Equity Dividend % Miscellaneous Expenditure not written off Earnings Per Share-Unit Curr TOTAL ASSETS Book Value-Unit Curr Contingent Liability+ Bills for collection 3,090.88 2,048.76 17,058.25 15,258.15 1.18 0.70 3,089.70 4,354.89 0.00 63,385.18 154,702.99 2,048.06 3,572.57 0.00 1,540.08 12,372.03 -254.38 1,794.46 3,273.49 -13.27 45,189.84 183.49 96,596.52 385.02 850.03 1,009.82 459.73 4,087.43 15.52 100.00 0.00 47.26 4,374.36 191.06 170.23 5,446.56 194.80 1,948.86 1,945.94 10,285.14 739.21 1,712.66 1,072.78 18,151.15 1,701.32 14,826.64 1,264.75

-41.46 -31.50 -120.50 246,939.64 199,048.77 162,529.13 19,447.02 14,232.27 11,619.81

0.00 53,991.71 15.52 772.72 119,501.57 512.19 1,072.54 2,315.52 479.55 4,409.25 0.00 130.00 0.00 62.77

1,572.74 2,397.11 737.78 5,041.22 7.64 0.00 200.00 94.63

246,939.64 416.74199,048.77 341.98 162,529.13 321.65 103,650.26 7,561.84 96,951.50 7,104.56 66,758.42 7,942.25

Axis Bank Ltd Industry :Banks - Private Sector BALANCE SHEET


Department of Management Science MES College of Engineering [126]

Project Report 2010 Cochin Stock Exchange


Year SOURCES OF FUNDS : Capital + Reserves Total + Deposits + Borrowings + Other Liabilities & Provisions + TOTAL LIABILITIES APPLICATION OF FUNDS : Cash & Balances with RBI+ Balances with Banks & money at Call+ Investments + Advances + Fixed Assets + Other Assets + Miscellaneous Expenditure not written off TOTAL ASSETS Contingent Liability+ Bills for collection 9,419.21 5,597.69 46,330.35 81,556.77 1,072.89 3,781.95 0.00 147,758.86 209,260.30 13,957.31 7,305.66 5,198.58 33,705.10 59,661.15 922.85 2,832.33 0.00 109,625.67 258,895.60 8,323.39 4,661.03 2,257.28 26,897.16 36,876.48 673.19 1,944.57 0.00 73,309.71 184,164.75 6,274.63 2,429.40 1,212.44 21,527.35 22,314.23 567.71 1,733.50 0.00 49,784.63 98,565.38 4,332.20 3,448.74 1,054.20 15,048.02 15,602.92 518.44 2,127.44 0.00 37,799.76 53,185.74 3,616.98 359.01 9,854.58 117,374.11 10,185.48 9,985.68 147,758.86 357.71 8,410.79 87,626.22 5,624.04 7,606.91 109,625.67 281.63 3,111.60 58,785.60 5,195.60 5,935.28 73,309.71 278.69 2,593.49 40,113.53 2,680.93 4,117.99 49,784.63 273.80 2,134.39 31,712.00 1,781.41 1,898.16 37,799.76 Mar 09 Mar 08 Mar 07 Mar 06 Mar 05

Axis Bank Ltd Industry :Banks - Private Sector


Department of Management Science MES College of Engineering [127]

Project Report 2010 Cochin Stock Exchange

PROFIT AND LOSS ACCOUNT


Year INCOME : Interest Earned + Other Income + Total II. Expenditure Interest expended + Payments to/Provisions for Employees Operating Expenses & Administrative Expenses + Depreciation + Other Expenses, Provisions & Contingencies+ Provision for Tax + Deferred Tax + Total III. Profit & Loss Reported Net Profit Extraordinary Items + Adjusted Net Profit Prior Year Adjustments + Profit brought forward IV. Appropriations Transfer to Statutory Reserve + Transfer to Other Reserves + Trans. to Government /Proposed Dividend + Balance carried forward to Balance Sheet Equity Dividend % Earnings Per Share-Unit Curr Book Value-Unit Curr 453.84 146.78 420.52 2,348.09 100.00 48.85 284.49 267.76 26.84 251.63 1,553.87 60.00 28.91 245.13 164.76 15.64 148.79 1,029.07 45.00 22.62 120.49 121.27 -282.37 112.55 731.04 35.00 16.87 103.06 83.64 147.88 87.75 197.41 28.00 11.81 87.95 1,815.36 -4.97 1,820.33 0.00 1,553.87 1,071.03 -8.49 1,079.52 0.00 1,029.07 659.03 -1.70 660.73 -31.81 731.04 485.08 -1.01 486.09 0.00 197.41 334.58 -1.54 336.12 0.00 182.10 7,149.28 997.66 991.58 188.67 1,700.79 1,095.52 -137.09 11,986.41 4,419.96 670.25 755.40 158.11 1,166.10 725.59 -159.39 7,736.02 2,993.32 381.35 487.53 111.86 504.38 412.60 -81.36 4,809.68 1,810.56 240.20 338.11 92.19 408.17 296.11 -55.73 3,129.61 1,192.98 176.86 247.49 81.58 154.79 153.72 15.40 2,022.82 10,835.49 2,977.69 13,813.18 7,005.32 1,810.78 8,816.10 4,461.66 1,013.02 5,474.68 2,888.79 731.73 3,620.52 1,924.16 433.24 2,357.40 Mar 09(12) Mar 08(12) Mar 07(12) Mar 06(12) Mar 05(12)

HDFC Bank Ltd Industry :Banks - Private Sector BALANCE SHEET


Department of Management Science MES College of Engineering [128]

Project Report 2010 Cochin Stock Exchange


Year SOURCES OF FUNDS : Capital + Reserves Total + Deposits + Borrowings + Other Liabilities & Provisions + TOTAL LIABILITIES APPLICATION OF FUNDS : Cash & Balances with RBI+ Balances with Banks & money at Call+ Investments + Advances + Fixed Assets + Other Assets + Miscellaneous Expenditure not written off TOTAL ASSETS Contingent Liability+ Bills for collection 13,527.21 3,979.41 58,817.55 98,883.05 1,706.73 6,444.72 0.00 183,358.67 405,981.69 8,552.24 12,553.18 2,225.16 49,393.53 63,426.90 1,175.09 4,477.15 0.00 133,251.01 593,008.08 6,920.71 5,075.25 3,971.40 30,564.80 46,944.78 966.67 3,796.39 0.00 91,319.29 328,148.24 4,606.83 3,306.61 3,612.39 28,393.96 35,061.26 855.08 2,357.57 0.00 73,586.87 214,782.34 2,828.89 2,650.13 1,823.87 19,349.81 25,566.30 708.32 1,407.55 0.00 51,505.98 140,777.15 2,549.68 425.38 14,220.95 142,811.58 2,685.84 22,814.00 182,957.75 354.43 11,142.81 100,768.59 4,594.92 16,390.26 133,251.01 319.39 6,113.76 68,297.94 2,815.39 13,772.81 91,319.29 313.14 4,986.39 55,796.82 2,858.48 9,632.04 73,586.87 309.88 4,209.97 36,354.25 4,790.01 5,841.87 51,505.98 Mar 09 Mar 08 Mar 07 Mar 06 Mar 05

HDFC Bank Ltd Industry :Banks - Private Sector PROFIT AND LOSS ACCOUNT
Department of Management Science MES College of Engineering [129]

Project Report 2010 Cochin Stock Exchange

Year INCOME : Interest Earned + Other Income + Total II. Expenditure Interest expended + Payments to/Provisions for Employees Operating Expenses & Administrative Expenses + Depreciation + Other Expenses, Provisions & Contingencies+ Provision for Tax + Deferred Tax + Total III. Profit & Loss Reported Net Profit Extraordinary Items + Adjusted Net Profit Prior Year Adjustments + Profit brought forward IV. Appropriations Transfer to Statutory Reserve + Transfer to Other Reserves + Trans. to Government /Proposed Dividend + Balance carried forward to Balance Sheet Equity Dividend % Earnings Per Share-Unit Curr Book Value-Unit Curr

Mar 09(12) 16,332.26 3,470.71 19,802.97 8,911.10 2,238.20 1,580.23 359.91 3,414.28 1,054.31 0.00 17,558.03 2,244.94 2.85 2,242.09 0.00 2,574.63 561.23 304.51 498.26 3,455.57 100.00 51.08 344.31

Mar 08(12) 10,115.00 2,283.15 12,398.15 4,887.11 1,301.35 1,135.40 271.71 2,521.93 866.25 -192.58 10,791.17 1,590.20 0.43 1,589.77 0.00 1,932.03 397.55 197.52 352.53 2,574.63 85.00 43.42 324.39

Mar 07(12) 6,647.93 1,594.59 8,242.52 3,179.45 776.86 856.26 219.60 1,571.60 581.88 -96.58 7,089.07 1,141.45 -0.68 1,142.13 0.00 1,455.02 285.36 117.16 261.92 1,932.03 70.00 34.55 201.42

Mar 06(12) 4,475.34 1,213.64 5,688.98 1,929.50 486.82 750.19 178.59 1,090.37 359.56 12.17 4,807.20 870.78 0.19 870.59 0.00 602.34 217.70 -395.99 196.39 1,455.02 55.00 27.04 169.24

Mar 05(12) 3,093.49 731.08 3,824.57 1,315.56 276.67 431.92 144.07 677.41 333.89 -20.51 3,159.01 665.56 0.14 665.42 0.00 405.32 166.39 142.44 159.71 602.34 45.00 20.84 145.86

ICICI Bank Ltd Industry :Banks - Private Sector BALANCE SHEET


Year Mar 09 Mar 08 Mar 07 Mar 06 Mar 05

Department of Management Science MES College of Engineering

[130]

Project Report 2010 Cochin Stock Exchange


SOURCES OF FUNDS : Capital + Reserves Total + Deposits + Borrowings + Other Liabilities & Provisions + TOTAL LIABILITIES APPLICATION OF FUNDS : Cash & Balances with RBI+ Balances with Banks & money at Call+ Investments + Advances + Fixed Assets + Other Assets + Miscellaneous Expenditure not written off TOTAL ASSETS Contingent Liability+ Bills for collection 17,536.33 12,430.23 103,058.31 218,310.85 3,801.62 24,712.26 0.00 379,849.60 834,683.00 6,000.44 29,377.53 8,663.60 111,454.34 225,616.08 4,108.90 21,196.67 0.00 400,417.12 1,211,082.33 4,278.28 18,706.88 18,414.44 91,257.84 195,865.60 3,923.42 17,144.26 0.00 345,312.44 562,959.91 4,046.56 8,934.37 8,105.85 71,547.39 146,163.11 3,980.71 13,327.24 0.00 252,058.67 395,033.67 4,338.46 6,344.90 6,585.08 50,487.35 91,405.15 4,038.04 9,574.82 0.00 168,435.34 268,153.74 2,392.09 1,463.29 48,419.73 218,347.82 67,323.69 44,295.07 379,849.60 1,462.68 45,357.53 244,431.05 65,648.43 43,517.43 400,417.12 1,249.34 23,413.92 230,510.19 51,256.03 38,882.96 345,312.44 1,239.83 21,316.16 165,083.17 38,521.91 25,897.60 252,058.67 1,086.76 11,813.20 99,818.77 33,544.50 22,172.11 168,435.34

ICICI Bank Ltd Industry :Banks - Private Sector PROFIT AND LOSS ACCOUNT
Department of Management Science MES College of Engineering [131]

Project Report 2010 Cochin Stock Exchange


Year INCOME : Interest Earned + Other Income + Total II. Expenditure Interest expended + Payments to/Provisions for Employees Operating Expenses & Administrative Expenses + Depreciation + Other Expenses, Provisions & Contingencies+ Provision for Tax + Deferred Tax + Total III. Profit & Loss Reported Net Profit Extraordinary Items + Adjusted Net Profit Prior Year Adjustments + Profit brought forward IV. Appropriations Transfer to Statutory Reserve + Transfer to Other Reserves + Trans. to Government /Proposed Dividend + Balance carried forward to Balance Sheet Equity Dividend % Earnings Per Share-Unit Curr Book Value-Unit Curr 940.00 1,068.43 1,376.37 2,809.65 110.00 32.40 444.92 1,040.00 302.31 1,377.37 2,436.32 110.00 36.03 417.64 780.00 571.12 1,054.27 998.27 100.00 32.88 270.35 636.00 933.02 865.83 293.44 85.00 27.35 249.55 502.00 645.01 723.06 188.22 85.00 25.99 170.34 3,758.13 11.37 3,746.76 0.00 2,436.32 4,157.73 45.23 4,112.50 0.00 998.27 3,110.22 85.37 3,024.85 0.00 293.44 2,540.07 5.60 2,534.47 0.00 188.22 2,005.20 -1.65 2,006.85 0.00 53.09 22,725.94 1,971.70 1,952.99 678.60 6,825.61 1,793.31 -471.67 35,476.48 23,484.24 2,078.90 1,922.20 578.35 6,550.40 1,569.53 -713.36 35,470.26 16,358.50 1,616.75 1,510.44 544.78 5,283.03 944.32 -446.43 25,811.39 9,597.45 1,082.29 1,126.66 623.79 3,844.55 661.87 -134.68 16,801.93 6,570.89 737.41 850.41 590.36 1,676.29 176.49 342.51 10,944.36 31,092.55 8,176.26 39,268.81 30,788.34 8,878.85 39,667.19 21,995.59 6,962.95 28,958.54 14,306.13 5,062.22 19,368.35 9,409.89 3,539.67 12,949.56 Mar 09(12) Mar 08(12) Mar 07(12) Mar 06(12) Mar 05(12)

State Bank of India Industry :Banks - Public Sector BALANCE SHEET


Year SOURCES OF FUNDS : Capital + 634.88 631.47 526.30 526.30 526.30 Mar 09 Mar 08 Mar 07 Mar 06 Mar 05

Department of Management Science MES College of Engineering

[132]

Project Report 2010 Cochin Stock Exchange


Reserves Total + Deposits + Borrowings + Other Liabilities & Provisions + TOTAL LIABILITIES APPLICATION OF FUNDS : Cash & Balances with RBI+ Balances with Banks & money at Call+ Investments + Advances + Fixed Assets + Other Assets + Miscellaneous Expenditure not written off TOTAL ASSETS Contingent Liability+ Bills for collection 55,546.17 48,857.63 275,953.96 542,503.20 3,837.85 38,344.14 0.00 965,042.95 723,699.75 43,870.57 51,534.61 15,931.72 189,501.27 416,768.20 3,373.48 45,015.80 0.00 722,125.08 810,796.48 18,946.80 29,076.43 22,892.26 149,148.88 337,336.49 2,818.87 25,533.20 0.00 566,806.13 526,954.66 23,367.51 21,652.70 22,907.30 162,534.24 261,800.94 2,752.93 22,512.51 0.00 494,160.62 228,881.38 20,592.95 16,810.33 22,511.77 197,097.91 202,374.45 2,697.69 18,579.79 0.00 460,071.94 159,397.30 16,777.31 57,312.82 742,073.13 53,713.68 111,308.44 965,042.95 48,401.19 537,403.94 51,727.41 83,961.07 722,125.08 30,772.26 435,521.09 39,703.33 60,283.15 566,806.13 27,117.79 380,046.06 30,641.24 55,829.23 494,160.62 23,545.84 367,047.52 19,184.31 49,767.97 460,071.94

State Bank of India Industry :Banks - Public Sector PROROFIT AND LOSS ACCOUNT
Year INCOME : Interest Earned + 63,788.43 48,950.31 37,242.33 35,979.57 32,428.00 Mar 09(12) Mar 08(12) Mar 07(12) Mar 06(12) Mar 05(12)

Department of Management Science MES College of Engineering

[133]

Project Report 2010 Cochin Stock Exchange


Other Income + Total II. Expenditure Interest expended + Payments to/Provisions for Employees Operating Expenses & Administrative Expenses + Depreciation + Other Expenses, Provisions & Contingencies+ Provision for Tax + Deferred Tax + Total III. Profit & Loss Reported Net Profit Extraordinary Items + Adjusted Net Profit Prior Year Adjustments + Profit brought forward IV. Appropriations Transfer to Statutory Reserve + Transfer to Other Reserves + Trans. to Government /Proposed Dividend + Balance carried forward to Balance Sheet Equity Dividend % Earnings Per Share-Unit Curr Book Value-Unit Curr 5,291.79 1,740.26 2,089.18 0.34 290.00 139.76 912.73 4,839.07 366.52 1,523.53 0.34 215.00 103.94 776.48 3,358.11 321.16 862.04 0.34 140.00 83.91 594.69 2,933.77 632.74 840.16 0.34 140.00 81.77 525.25 2,482.10 1,070.80 751.62 0.34 125.00 80.01 457.38 9,121.23 -1.71 9,122.94 0.00 0.34 6,729.12 7.00 6,722.12 0.00 0.34 4,541.31 4.52 4,536.79 0.00 0.34 4,406.67 1.37 4,405.30 0.00 0.34 4,304.52 -0.52 4,305.04 0.00 0.34 42,915.29 9,747.31 2,927.84 763.14 5,949.51 5,971.52 -1,055.10 67,219.51 31,929.08 7,785.87 2,382.81 679.98 5,221.49 3,823.50 -219.43 51,603.30 22,184.13 7,932.59 1,942.13 602.39 4,385.54 3,014.61 -19.83 40,041.56 20,390.45 8,123.05 1,808.99 763.68 5,516.29 1,682.71 357.89 38,643.06 18,483.37 6,907.35 1,506.06 752.21 5,379.62 2,447.22 -230.62 35,245.21 12,694.31 76,482.74 9,487.11 58,437.42 7,429.04 44,671.37 7,528.16 43,507.73 7,121.73 39,549.73

Department of Management Science MES College of Engineering

[134]