INTRODUCTION

India is a developing country. Nowadays many people are interested to invest in financial markets especially on equities to get high returns, and to save tax in honest way. Equities are playing a major role in contribution of capital to the business from the beginning. Since the introduction of shares concept, large numbers of investors are showing interest to invest in stock market. In an industry plagued with skepticism and a stock market increasingly difficult to predict and contend with, if one looks hard enough there may still be a genuine aid for the Day Trader and Short Term Investor. The price of a security represents a consensus. It is the price at which one person agrees to buy and another agrees to sell. The price at which an investor is willing to buy or sell depends primarily on his expectations. If he expects the security's price to rise, he will buy it; if the investor expects the price to fall, he will sell it. These simple statements are the cause of a major challenge in forecasting security prices, because they refer to human expectations. As we all know firsthand, humans expectations are neither easily quantifiable nor predictable. If prices are based on investor expectations, then knowing what a security should sell for (i.e., fundamental analysis) becomes less important than knowing what other investors expect it to sell for. That's not to say that knowing what a security should sell for isn't important--it is. But there is usually a fairly strong consensus of a stock's future earnings that the average investor cannot disprove.

EQUITY ANALYSIS
In financial markets, stock is the capital raised by a corporation through the issuance and distribution of shares. A person or organization which holds shares of stocks is called a shareholder. The aggregate value of a corporation's issued shares is its market capitalization. When one buys a share of a company he becomes a shareholder in that company. Shares are also known as Equities. Equities have the potential to increase in value over time. It also provides the portfolio with the growth necessary to reach the long-term investment goals. Research studies have proved that the equities have outperformed than most other forms of investments in the long term. Equities are considered the most challenging and the rewarding, when compared to other investment options. Research studies have proved that investments in some shares with a longer tenure of investment have yielded far superior returns than any other investment. Fundamental analysis and technical analysis can co-exist in peace and complement each other. Since all the investors in the stock market want to make the maximum profits possible, they just cannot afford to ignore either fundamental or technical analysis. SHARE PRICE A share price is the price of a single share of a number of saleable stocks of a company, derivative or other financial asset. REASONS FOR THE PRICE MOVEMENT OF SHARES A specific may have a temporarily high price when for whatever reason, there has been a high demand for it. This demand may have nothing to do with the company it self but may rather relate to, for example an institute investor trying to diversify out risk. There are various reasons for the price movement of the shares :• The market expects the earnings to rise rapidly in the future. For example a

gold mining company which has just begun to mine may not have made money yet but next quarter it will most likely find the gold and make a lot of money. The same applies to pharmaceutical companies often a large amount of their revenue comes

from the best few patented products, so when a promising new product is approved, investors may buy up the stock. • The company was previously making a lot of money, but in the last year or

quarter it had a special one time expense (called a “charge”) which lowered the earnings significantly. Stock holders understanding (possibly incorrectly) that this was a one time issue, will still buy stock at the same price as before, and only sell at the least that same price. • Hype for the stock has caused people to buy the stock for a higher price than

they normally would. This is called bubble. One of the most important uses of the P/E metric is to decide whether a stock is undergoing a bubble or anti-bubble by the comparing its P/E to similar companies. Historically, bubbles have been followed by crashes. As such prudent investors try to stay out of them • The P/E ratio (price-to-earnings ratio) of a stock (also called its "earnings

multiple", or simply "multiple", "P/E", or "PE") is a measure of the price paid for a share relative to the income or profit earned by the firm per share. A higher P/E ratio means that investors are paying more for each unit of income. It is a valuation ratio included in other financial ratios. The reciprocal of the P/E ratio is known as the earnings yield. • The price per share (numerator) is the market price of a single share of the

stock. The earnings per share (denominator) is the net income of the company for the most recent 12 month period, divided by number of shares outstanding. The EPS used can also be the "diluted EPS" or the "comprehensive EPS". • For example, if stock A is trading at $24 and the Earnings Per Share for the

most recent 12 month period is $3, then the P/E ratio is 24/3=8. Stock A said to have a P/E of 8 (or a multiple of 8). Put another way, the purchaser is paying $8 for every one dollar of earnings. • By relating price and earnings per share for a company, one can analyze the

market's valuation of a company's shares relative to the wealth the company is actually creating.

Investor‟s wealth is precious. This factor can make comparing P/E ratios over time difficult. Capital can be acquired in two ways by issuing shares or by taking debt from financial institutions or borrowing money from financial institutions. • A large amount of money has been inserted into the stock market. The role of equity analysis is to provide information to the market. it is a less attractive investment. This is valuable because it fills information gaps so that each individual investor does not need to analyze every stock thereby making the markets more efficient. . countries. with each share of stock representing a tiny piece of ownership. Hence needs to analyze the prevailing economic conditions of the country and also the shares of the respective companies. the more dividends you earn when the company makes a profit. The more shares you own. The owners of the company have to pay regular interest and principal amount at the end. supply and demand dictate that the price of the stocks must go up. and time periods may be misleading. In the financial world. and comparisons between industries. ownership is called “Equity”. the more of the company you own. NEED OF THE STUDY To start any business capital plays major role. An efficient market relies on information: a lack of information creates inefficiencies that result in stocks being misrepresented (over or under valued). • The company has some sort of business advantage which seems to ensure that it will continue make money for a long time with very little risk. Thus investors are willing to buy the stock even at a higher price for the piece of mind that they all not loose their money. Stock is ownership in a company. The more shares you own. If one stock has a P/E twice that of another stock. Since there are only limited amount of stocks to buy.• One reason to calculate P/Es is for investors to compare the value of stocks. Companies are rarely equal. however. out of proportion of the growth of the companies across the same time period. all things being equal.

HDFC Bank and Axis Bank for investment purpose by monitoring the growth rate and performance on the basis of historical data. 6. . Further. The main objectives of the Project study are: 1.e. To know about the equity performance of the banks selected viz. The stocks are chosen in an unbiased manner and each stock is chosen independent of the other stocks chosen. 4.OBJECTIVES OF THE STUDY The objective of this project is to deeply analyze the companies selected like ICICI Bank. 3. Religare securities. METHODOLOGY Research design or research methodology is the procedure of collecting. To study about the price movements of the securities selected. To help the investor for decision making in equity investment. SCOPE OF THE STUDY The scope of the study is identified after and during the study is conducted.. To identify the correlation between price movement of the equity corresponding with dividend declaration. HDFC Bank and Axis Bank. ICICI Bank. The sample of the stocks for the purpose of collecting secondary data has been selected on the basis of Random Sampling. To know about the profile of the company selected i. analyzing and interpreting the data to diagnose the problem and react to the opportunity in such a way where the costs can be minimized and the desired level of accuracy can be achieved to arrive at a particular conclusion. 5. the study is based on information of last five years. The project is based on tools like fundamental analysis and ratio analysis. The methodology used in the study for the completion of the project and the fulfillment of the project objectives. 2. To show the beta and volatility calculation for measuring the risk and variability of different companies share.

DATA SOURCES: The proposed study is carried with the help of both primary and secondary sources of data. ICICI Bank. SECONDARY DATA: All the secondary data used for the study would be extracted from the annual reports. 5. The study is restricted to 3 banks based on Fundamental analysis.e. manuals.e. HDFC Bank and Axis Bank. 4. 2. websites and other published materials of the company. The scope of the study is limited for a period of five years. for a period of 45 days. LIMITATIONS OF STUDY 1. The analysis is made by taking into consideration three banks i. This study has been conducted purely to understand Equity analysis for investors. 6. PRIMARY DATA: Relevant primary data would be collected with the help of the interview method.The sample size for the number of stocks is taken as 3 for fundamental analysis of stocks as fundamental analysis is very exhaustive and requires detailed study. There was a constraint with regard to time allocation for the research study i. 7. . Suggestions and conclusions are based on the study conducted. Detailed study of the topic was not possible due to limited size of the project. 3.

watchful attention. Technical analysis mainly seeks to predict the short term price travels. chart paper & your cautious mind. calculations are based on considered FACTS & not on HOPE. In Equity Analysis anticipated growth. prices & volume data. who let their heart rule. turnover. its performances. A general investor can apply the principles by using the simplest of tools: pocket calculator. but does discuss a method which enables the investor to arrive at buying & selling decision. The subject of Equity analysis. Be ruthless & calculating.EQUITY ANALYSIS Professional investor will make more money & less loss than. i. The focus of technical analysis is mainly on the internal market data. Greed must be avoided patience may be a virtue. In Fundamental analysis a company s goodwill. The financial analysts always need yardsticks to evaluate the efficiency & performances of any business unit at the time of investment. covering many aspect from the calculating various FINANCIAL RATIOS. ruler. It should be pointed out that. this equity analysis does not discuss how to buy & sell shares. pencil. the attempt to determine future share price movement & its reliability by references to historical data is a vast one. . namely fundamental analysis & Technical analysis. Decision should be based on actual movement of share price measured both in money & percentage term & nothing else. profitability & financial health was checked & analysis with the help of ratio analysis for the purpose of long term successful investment. Fundamental analysis is useful in long term investment decision. liquidity.e. leverage.e. i. Equity analysis is basically a combination of two independent analyses. Technical analysis refers to the study of market generated data like prices & volume to determine the future direction of prices movements. Their head eliminate all emotions for decision making. plotting of CHARTS to extremely sophisticated indicators. but impatience can frequently be profitable. you are out to make money. It appeals mainly to short term traders.

10. it also works in abnormal share-market conditions. Capital market has a typical market psychology along with other issues like. Although the equity analysis is art as well as sciences so. because the scenario of equity analysis is revolving around the term money 4. 2. An individual perceptions about the investment return & associated risk may differ from individual to individual. it also has some exceptions. You are buying stock & not companies. 3. Capital market trend is always a friend. so don t be curious or panic to do postmortem of companies performances. 9. the crowd Vc the individual. perceptions. whether it is short run or long run. so the investment object has vital importance associated to return along with risk. Equity analysis is purely based on the INVESTMENT PHILOSOPHY. History repeats: investors & speculators react the same way to the same types of events homogeneously.It is the oldest approach to equity investment dating back to the late 19th century. 6. . Works only in normal share-market conditions with great reliability. 8. Portfolio management. risk management was up to the investor s knowledge. but with low reliability. 5. Cash management gets the magnitude role. Assumptions for the Equity Analysis 1. tradition s & trust. 7.

To make capital profits by selling shares at higher prices. When values increase then prices follow and returns on an investment will increase.SECURITY ANALYSIS Investment success is pretty much a matter of careful selection and timing of stock purchases coupled with perfect matching to an individual‟s risk tolerance. These two factors are affected by a host of factors. However. timing and matching actions an investor must conduct deep security analysis. fundamental analysis and technical analysis The value of common stock is determined in large measure by the performance of the firm that issued the stock. To earn dividend income. If the company is healthy and can demonstrate strength and growth. and merges them with broader economic analysis and greater industry analysis to formulate the valuation of a stock. the value of the stock will increase. just to keep the savvy investor on their toes. An investor has to carefully understand and analyze all these factors. 1. In order to carry out selection.e. . the mix is complicated by the risk factors involved. 2. Fundamental analysis examines all the dimensions of risk exposure and the probabilities of return. Investors purchase equity shares with two basic objectives. There are basically two approaches to study security prices and valuation i.

environmental and other relevant factors and statistics that will affect the basic supply and demand of whatever underlies the financial instrument. This approach attempts to study the economic scenario. industry position and the company expectations and is also known as “economic-industry-company approach (EIC approach)”. Company analysis . Fundamental analysis typically focuses on key statistics in company‟s financial statements to determine if the stock price is correctly valued. It is also known as “top-down approach”. The basic philosophy underlying the fundamental analysis is that if an investor invests Re. The fundamental analysis is to appraise the intrinsic value of a security. about the industry. political. It insists that no one should purchase or sell a share on the basis of tips and rumors. Thus the EIC approach involves three steps: 1.1 in buying a share of a company.FUNDAMENTAL ANALYSIS Fundamental analysis is a method of forecasting the future price movements of a financial instrument based on economic. The fundamental approach calls upon the investors to make his buy or sell decision on the basis of a detailed analysis of the information about the company. how much expected returns from this investment he has. Industry analysis 3. It is the study of economic. Economic analysis 2. and the economy. The term simply refers to the analysis of the economic well-being of a financial entity as opposed to only its price movements. industry and company conditions in an effort to determine the value of a company‟s stock. Fundamental analysis is the cornerstone of investing.

stock prices are low. and when the level of economic activity is high. if the inflation rate also increases. Stock market is a channel through which the savings are made available to the corporate bodies. gross private domestic investment and government expenditure on goods and services and net exports of goods and services.1. Savings are distributed over various assets like equity shares. If the economy grows rapidly. The commonly analyzed macro economic factors are as follows: Gross Domestic Product (GDP): GDP indicates the rate of growth of the economy. Also. The effects of inflation on capital markets are numerous. Interest rates: The interest rate affects the cost of financing to the firms. it results in extra costs to businesses. It represents the aggregate value of the goods and services produced in the economy. The higher growth rate is more favorable to the stock market. An increase in the expected rate of inflation is expected to cause a nominal rise in interest rates. Savings and investment: It is obvious that growth requires investment which in turn requires substantial amount of domestic savings. The analysis of macro economic environment is essential to understand the behavior of the stock prices. stock prices are high reflecting the prosperous outlook for sales and profits of the firms. When the level of economic activity is low. As inflation increases. More money is available at a lower interest rate for the brokers who are doing business with . deposits. the industry can also be expected to show rapid growth and vice versa. A decrease in interest rate implies lower cost of finance for firms and more profitability. thereby squeezing their profit margins and leading to real declines in profitability. The growth rate of economy points out the prospects for the industrial sector and the return investors can expect from investment in shares. The savings and investment patterns of the public affect the stock to a great extent. It consists of personal consumption expenditure. then the real growth would be very little. real estate and bullion. Inflation: Along with the growth of GDP. ECONOMIC ANALYSIS The level of economic activity has an impact on investment in many ways. mutual funds. it increases uncertainty of future business and investment decisions.

The life cycle of the industry is separated into four well defined stages. A wide network of communication system is a must for the growth of the economy. The producers try to develop brand name. There would be severe competition and only fittest companies survive this stage. Concessions and incentives given to a certain industry encourage investment in that particular industry. Availability of cheap funds encourages speculation and rise in the price of shares. and share prices in these industries may not decline as much as in other industries. Regular supply of power without any power cut would boost the production. Infrastructure facilities: Infrastructure facilities are essential for the growth of industrial and agricultural sector. The demand for the product attracts many producers to produce the particular product.borrowed money. Irrespective of specific economic situations. This identification of economic and industry specific factors influencing share prices will help investors to identify the shares that fit individual expectations Industry Life Cycle: The industry life cycle theory is generally attributed to Julius Grodensky. In this situation. some industries might be expected to perform better. differentiate the product and create a product image. 2. Tax structure: Every year in March. like "manufacturing"). The type of tax exemption has impact on the profitability of the industries. Banking and financial sectors also should be sound enough to provide adequate support to the industry. Good infrastructure facilities affect the stock market favorably.  Pioneering stage: The prospective demand for the product is promising in this stage and the technology of the product is low. Tax relief‟s given to savings encourage savings. INDUSTRY ANALYSIS An industry is a group of firms that have similar technological structure of production and produce similar products and Industry analysis is a type of business research that focuses on the status of an industry or an industrial sector (a broad industry classification. it is difficult to select companies for investment because the survival . the business community eagerly awaits the Government‟s announcement regarding the tax policy.

 Decline stage: demand for the particular product and the earnings of the companies in the industry decline.rate is unknown. To keep going. Symptoms of obsolescence may appear in the technology. If too many firms are present in the organized sector. Nature of competition: Nature of competition is an essential factor that determines the demand for the particular product. It is better to avoid investing in the shares of the low growth industry even in the boom period. The companies that have withstood the competition grow strongly in market share and financial performance. The investors have to closely monitor the events that take place in the maturity stage of the industry. The companies' ability to withstand the local as well as the multinational competition counts much.  Maturity and stabilization stage: the growth rate tends to moderate and the rate of growth would be more or less equal to the industrial growth rate or the gross domestic product growth rate. The past variability in return and growth in reaction to macro economic factors provide an insight into the future. The technology of the production would have improved resulting in low cost of production and good quality products. . The competition would lead to a decline in the price of the product. Growth of the industry: The historical performance of the industry in terms of growth and profitability should be analyzed. The investor before investing in the scrip of a company should analyze the market share of the particular company's product and should compare it with the top five companies. the competition would be severe. The companies have stable growth rate in this stage and they declare dividend to the shareholders. Investment in the shares of these types of companies leads to erosion of capital. its profitability and the price of the concerned company scrips. It is advisable to invest in the shares of these companies. technological innovations in the production process and products should be introduced.  Rapid growth stage: This stage starts with the appearance of surviving firms from the pioneering stage.

The risk and return associated with the purchase of the stock is analyzed to take better investment decisions. The companies in the market should be compared with like product groups otherwise. Every investor should carry out a SWOT analysis for the chosen industry. competition becomes the threat to a particular company. Growth of sales: The rapid growth in sales would keep the shareholder in a better position than one with stagnant growth rate. presence of numerous players in the market. Take for instance. Investors generally prefer size and growth in sales because the larger size companies may be able to withstand the business cycle rather than the company of smaller size. i. Competitive edge of the company: Major industries in India are composed of hundreds of individual companies.SWOT analysis: SWOT analysis represents the strength. The progress in R & D in that industry is an opportunity and entry of multinationals in the industry is a threat. weakness. only few companies control the major market share. the company would be able to meet the competition successfully. Market share: The market share of the annual sales helps to determine a company‟s relative competitive position within the industry. The fall in the market share indicates the declining trend of company. even if the sales are stable. it will have more stable earnings. opportunity and threat for an industry. .e. The present and future values are affected by a number of factors. 3. In this way the factors are to be arranged and analyzed. The competitiveness of the company can be studied with the help of the following. increase in demand for the industry‟s product becomes its strength. Hence the stability of sales should be compared with its market share and the competitor‟s market share. COMPANY ANALYSIS In the company analysis the investor assimilates the several bits of information related to the company and evaluates the present and future values of the stock. the results will be misleading. Though the number of companies is large. If the market share is high. Stability of sales: If a firm has stable sales revenue.

price to book value. Financial analysis: The best source of financial information about a company is its own financial statements. This is a primary source of information for evaluating the investment prospects in the particular company‟s stock. Ratio analysis: Ratio is a relationship between two figures expressed mathematically. Financial ratios provide numerical relationship between two relevant financial data. Historical financial statement helps to predict the future and the current information aids to analyze the present status of the company. earnings do not always increase with increase in sales. price earnings multiplier. It is like a financial snapshot. It is prepared at the year end. From the balance sheet. The statement gives the historical and current information about the company‟s operations. The balance sheet is one of the financial statements that companies prepare every year for their shareholders. Ratios for investment purposes can be classified into profitability ratios. turnover ratios. Profitability ratios are the most popular ratios since investors prefer to measure the present profit performance and use this information to forecast the future strength of the company. The relationship can be either expressed as a percent or as a quotient. It is better for the investor to avoid a company with excessive debt component in its capital structure. Ratios summarize the data for easy understanding. The two main statements used in the analysis are Balance sheet and Profit and Loss Account. liquidity position of the company can also be assessed with the information on current assets and current liabilities. the investor should not only depend on the sales. but should analyze the earnings of the company. the company's financial situation at a moment in time. Financial statement analysis is the study of a company‟s financial statement from various viewpoints. The company‟s sales mi ght have increased but its earnings per share may decline due to rise in costs. Financial ratios are calculated from the balance sheet and profit and loss account. and leverage ratios. The most often used profitability ratios are return on assets. listing the company's current assets and liabilities. It helps to study the capital structure of the company. Hence. Further. .Earnings of the company: Sales alone do not increase the earnings but the costs and expenses of the company also influence the earnings. comparison and interpretations.

The company may achieve leadership by using its assets more efficiently.price to cash flow. The inert-firm comparison of this ratio determines whether the investments in the firm are attractive or not as the investors would like to invest only where the return is higher.e.. b) Return on Investment (ROI) ROI is the return on capital invested in business. and profit margins. An example is an increasing. return on equity. land and material is made to generate Rs. With a successful product differentiation strategy. Companies can have one of two strategies: cost leadership. machines. a) Return on Assets (ROA) ROA is computed as the product of the net profit margin and the total asset turnover ratios. ROA will rise because of a rising profit margin. turnover ratio as the company expands into new markets. but how ROA rises will depend on the company's strategy. then the ROI is 25%. ROA = (Net Profit/Total income) x (Total income/Total Assets) This ratio indicates the firm's strategic success. i. and price to sales. ROA should rise with a successful cost leadership strategy because the company‟s increasing operating efficiency. . ROA should be rising or keeping pace with the company's competitors if the company is successfully pursuing either of these strategies. The computation of return on investment is as follows: Return on Investment (ROI) = (Net profit/Equity investments) x 100 As this ratio reveals how well the resources of a firm are being used. increasing its market share. 25 lakhs of net profit. better are the results. present value of cash flows. or product differentiation. dividend yield. The return on shareholder‟s investment should be compared with the return of other similar firms in the same industry. total asset. higher the ratio. if an investment Rs 1 crore in men.

The higher the number. EPS calculated for a number of years indicates whether or not earning power of the company has increased.c) Return on Equity Return on equity measures how much an equity shareholder's investment is actually earning. the better is the performance of the company and suggests the usefulness of the projects the company has invested in. it gives a view of the comparative earnings or earnings power of a firm. The dividend per share gives the amount of cash flow from the company to the owners and is calculated as follows: Dividend per share = Total dividend payment / Number of shares outstanding . d) Earnings per Share (EPS) This ratio determines what the company is earning for every share. The computation of EPS is as follows: Earnings per share = Net profit/Number of shares outstanding The EPS is a good measure of profitability and when compared with EPS of similar other companies. The return on equity tells the investor how much the invested rupee is earning from the company. The computation of return on equity is as follows: Return on equity = (Net profit to owners/value of the specific owner's contribution to the business) x 100 The ratio is more meaningful to the equity shareholders who are invested to know profits earned by the company and those profits which can be made available to pay dividend to them. earnings are the most important tool. EPS is calculated by dividing the earnings (net profit) by the total number of equity shares. For many investors. e) Dividend per Share (DPS) The extent of payment of dividend to the shareholders is measured in the form of dividend per share.

The payout ratio is computed as follows: Payout Ratio = (Dividend per share / Earnings per share) * 100 The percentage of payout ratio can also be used to compute the percentage of retained earnings. The market price is to be taken as the cum-dividend price. apart from the price differentials (capital gains) in the market. The return to the shareholders. Hence. In all. while the dividend per share is the present return from the investment. On the other hand. out of the company's profit is measured through the payout ratio. it could also be negatively interpreted as lack of investment opportunities. On the other hand a . in the form of dividend. The price at which the share has been bought from the market is the actual cost of the investment to the shareholder. Dividend yield relates the actual cost to the cash flows received from the company. when dividends are not declared. The market price is a measure of future discounted values.The payment of dividend can have several interpretations to the shareholder. The distribution of dividend could be thought of as the distribution of excess profits/abnormal profits by the company. The market place provides opportunities for the investor to buy the company's share at any point of time. g) Dividend Yield Dividend yield is computed by relating the dividend per share to the market price of the share. The computation of dividend yield is as follows Dividend yield = (Dividend per share / Market price per share) * 100 High dividend yield ratios are usually interpreted as undervalued companies in the market. f) Dividend Payout Ratio From the profits of each company a cash flow called dividend is distributed among its shareholders. dividend payout gives the extent of inflows to the shareholders from the company. This is the continuous stream of cash flow to the owners of shares. the entire profit is ploughed back into the business for its future investments. Hence. The profits available for distribution are either paid as dividends or retained internally for business growth opportunities. a high dividend yield implies that the share has been under priced in the market.

A very high P/E ratio on the other hand implies that the company's shares are overvalued and the investor can benefit by selling the shares at this high market price. Many investors prefer to buy the company's shares at a low P/E ratio since the general interpretation is that the market is undervaluing the share and there will be a correction in the market price sooner or later. h) Price/Earnings Ratio (P/E) The P/E multiplier or the price earnings ratio relates the current market price of the share to the earnings per share. This is computed as follows: Price/earnings ratio = Current market price / Earnings per share This ratio is calculated to make an estimate of appreciation in the value of a share of a company and is widely used by investors to decide whether or not to buy shares in a particular company. A company that does not pay out dividends will not have a dividend yield and the real measure of the market price will be in terms of earnings per share and not through the dividend payments. i) Debt-to-Equity Ratio Debt-Equity ratio is used to measure the claims of outsiders and the owners against the firm‟s assets. J) Return on long term fund A unit investment trust's estimated return over the life of the portfolio. but is weighted to account for each security's . The purpose is to get an idea of the cushion available to outsiders on the liquidation of the firm. Debt-to-equity ratio = Outsiders Funds / Shareholders Funds The debt-equity ratio is calculated to measure the extent to which debt financing has been used in a business. calculated according to formulas proposed by the Securities and Exchange Commission (SEC). It indicates the proportionate claims of owners and the outsiders against the firm‟s assets. The return is calculated as the annual percentage return based on the yields of all the underlying securities in the portfolio.low dividend yield need not be interpreted as overvaluation of shares.

It compares a firm's current assets to its current liabilities. but does not account for delays in income distributions from the fund. The return is presented net of estimated fees and the maximum offering price. Return on long term funds = (Net profit to owners/long term funds contributed to the business) x 100 k) Current ratio The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts over the next 12 months. It is expressed as follows: Current Ratio = Current assets / Current liabilities .market value and maturity.

However. thus deterring would-be thieves. . a moneylender in one Greek port would write a credit note for the client who could “cash” the note in another city. saving the client the danger of carting coinage with him on his journey. it was during the Moghul period that indigenous bankers started playing a vital role in lending money and financing of the foreign trade and commerce.INDIAN BANKING INDUSTRY ANALYSIS BANK: A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities. a great Hindu jurist. well built and were sacred. Through out Mauryan period and later on desi bankers played some role in the economy of the country. Origin of banking in India The first bank was probably the religious temples of the ancient world wherein gold was stored in the form of easy-to-carry compressed plates. had devoted a section of his work explaining the deposits and advances and he even laid down certain rules on rates of interest. currency exchange. Charging interest on loans and paying interest on deposits became more highly developed and competitive. Ancient Rome perfected the administrative aspect of banking and saw greater regulation of financial institutions and financial practices. whereby in return for a payment from a client. deposits. There is evidence too of credit. Greek temples as well as private and civic entities conducted financial transactions such as loans. Manu. The origin of banking in India can be traced back to almost the Vedic period. either directly by loaning or indirectly through capital markets. and validation of coinage. Their owners justly felt that temples were the safest places to store their gold as they were constantly attended. Ancient Greece holds further evidence of banking. Banking during british period before independence. The transformation from pure money lending to proper banking appears to have taken place before the times of Manu. There are extent records of loans from the 18th century BC in Babylon that were made by temple priests to merchants. A bank connects customers that have capital deficits to customers with capital surpluses.

from licensing to integration with Global Economics. After independence in 1947 and proclamation in 1950 the country set about drawing its road map for the future public ownership of banks was seen inevitable and SBI was created in 1955 to spearhead the expansion of banking into rural India and speed up the process of magnetization. complaints increased and bank management was unable to item the rot.The banking scenario in India has been changing at fast pace from being just the borrowers and lenders traditionally. while bank management stagnated. Slowly the unions grew in strength. All most all the sector operating in the economy was affected and banking sector is no exception to this. They mistakenly believed the technology would lead to retrenchment and eventually the marginalization of unions. Norms or income Recognition. the changes have been swift. The rules of the game under which banks operated changed in 1993. Economy. technology was becoming a global phenomenon lacking a vision of the future and the banks erred badly in opposing the technology up gradation of banks. In the meantime. Political compulsion‟s brought about nationalization of bank in 1969 and lobbying by bank employees and their unions added to the list of nationalized banks a few years later. The problem faced by the banking industry soon surfaced in their balance sheets. the focus has shifted to more differentiated and customized product/service provider from regulation to liberalization in the year 1991. from planned economy to market. But the prevailing accounting practices unable banks to dodge the issue. Let us see how banking has evolved in the past 57 years of independence. Thus the whole of the banking system in the country has undergone a radical change. Assets classification and loan loss provisioning were put in place and capital adequacy ratio become mandatory. The cumulative impact of all these . The casualty was to the customer service declined.

HDFC Bank. Bharath overseas Bank. Corporation Bank. The amendment of banking regulation act in 1993 saw the entry of new private sector banks and foreign banks. Dhanalaxmi Bank. Lord Krishna Bank.Sangli Bank. Tamil Nadu Merchantile Bank Ltd. United Western Bank. Centurion Bank of Punjab. Lakshmivilas Bank. Federal Bank. Indian overseas Bank. Jammu and Kashmir Bank. Ganesh Bank of Kurundwad. Dena Bank. Union Bank of India. Kotek Mahindra Bank. Karnataka Bank Limited. Allahabad Bank.. SBI Commercial and International Bank.and Vijaya Bank. Private Banks IndusInd Bank. Punjab National Bank. ICICI Bank. Banking in India Central Bank 1 Reserve Bank of India State Bank of India.Oriental Bank of Commerce. Bank of Baroda. 2 3 . Ratnakar Bank. Development Credit Bank. Syndicate Bank. South Indian Bank. Indian Bank. Catholic Syrian Bank. Bank of Rajastan. Bank of Maharastra. United Bank of India. ING Vysya Bank. UTI Bank.Canara Bank. Bank of India. Andhra Bank. YES Bank. UCO Bank. Nationalised Banks Central Bank of India. Nainitak Bank. Punjab and Sind Bank. Karur Vysya Bank. It is increasingly becoming clear that the state ownership in bank is no longer sustainable.changes has been on the concept of state ownership in banks. IDBI. City Union Bank.

Present scenario of banking in India Currently (2010), 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. With the growth in the Indian economy expected to be strong for quite some timeespecially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. One may also expect M&As, takeovers, and asset sales. In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them. In recent years critics have charged that the non-government owned banks are too aggressive in their loan recovery efforts in connection with housing, vehicle and personal loans. There are press reports that the banks' loan recovery efforts have driven defaulting borrowers to suicide. Adoption of banking technology The IT revolution had a great impact in the Indian banking system. The use of computers had led to introduction of online banking in India. The use of the modern innovation and computerisation of the banking sector of India has increased many fold after the economic liberalisation of 1991 as the country's banking sector has been exposed to the world's market. The Indian banks were finding it difficult to compete

with the international banks in terms of the customer service without the use of the information technology and computers. Apart from the above mentioned innovations the banks have been selling the third party products like Mutual Funds, insurances to its clients.Total numbers of ATMs installed in India by various banks as on end March 2005 is 17,642.[12] The New Private Sector Banks in India is having the largest numbers of ATMs which is fol off site ATM is highest for the SBI and its subsidiaries and then it is followed by New Private Banks, Nationalised banks and Foreign banks. While on site is highest for the Nationalised banks of India. TYPES OF BANKS The focus of banking is varied, the needs diverse and methods different. Thus, we need distinctive kinds of banks to cater to the above-mentioned complexities. Deposittaking institutions take the form of commercial banks, which accept deposits and make commercial, real estate, and other loans. There are also mutual savings banks, which accept deposits and make mortgage and other types of loans. Another type is credit unions, which are cooperative organizations that issue share certificates and make member (consumer) and other loans. The banking industry can be divided into following sectors, based on the clientele served and products and services offered: 1. Retail Banks 2. Commercial banks 3. Cooperative banks 4. Investment Banks 5. Specialized banks 6. Central banks

Retail Banks: Retail banks provide basic banking services to individual consumers. Examples include savings banks, savings and loan associations, and recurring and fixed deposits. Products and services include safe deposit boxes, checking and savings accounting, certificates of deposit (CDs), mortgages, personal, consumer and car loans. Commercial Banks: Banking means accepting deposits of money from the public for the purpose of lending or investment. Commercial Banks provide financial services to businesses, including credit and debit cards, bank accounts, deposits and loans, and secured and unsecured loans. Due to deregulation, commercial banks are also competing more with investment banks in money market operations, bond underwriting, and financial advisory work. Commercial banks in modern capitalist societies act as financial intermediaries, raising funds from depositors and lending the same funds to borrowers. The depositors‟ claims against the bank, their deposits, are liquid, meaning banks are expected to redeem deposits on demand, instantly. Banks‟ claims against their borrowers are much less liquid, giving borro wers a much longer span of time to repay money owed banks. Because a bank cannot immediately reclaim money lent to borrowers, it may face bankruptcy if all its depositors show up on a given day to withdraw all their money. There are two types of commercial banks, public sector and private sector banks. Public Sector Banks: Public sectors banks are those in which the government has a major stake and they usually need to emphasize on social objectives than on profitability. Private sector banks: Private sector banks are owned, managed and controlled by private promoters and they are free to operate as per market forces.

They guarantee stable monetary and financial policy from country to country and play an important role in the economy of the country.Investment Banks: An investment bank is a financial institution that assists individuals. export-import banks catering to specific needs of these unique activities. An investment bank may also assist companies involved in mergers and acquisitions. trading of derivatives. Investment banks aid companies in acquiring funds and they provide advice for a wide range of transactions. managing foreign exchange and gold reserves. making decisions regarding official interest rates. and provide ancillary services such as market making. Specialized Banks: Specialized banks are foreign exchange banks. development banks. foreign exchange. Typical functions include implementing monetary policy. commodities. It is an important source of rural credit i. heavy turnkey projects and foreign trade. acting as banker to the government and other banks. and these banks trace their history from the Bank of England. industrial banks.. corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities. and equity securities. and regulating and supervising the banking industry. Central Banks: Central banks are bankers‟ banks.e. These banks provide financial aid to industries. . fixed income instruments. Cooperative Banks: Cooperative Banks are governed by the provisions of State Cooperative Societies Act and meant essentially for providing cheap credit to their members. These banks also offer financial consulting services to companies and give advice on mergers and acquisitions and management of public assets. agricultural financing in India.

640+ branches (as on February 11.com Products Revenue Total assets Website ICICI Bank (BSE: ICICI) (formerly Industrial Credit and Investment Corporation of India) is India's largest private sector bank by market capitalisation and second largest overall in terms of assets.V.19 billion (US$ 648. The Bank also has a network of 1.61 billion (at March 31. 3. life and non-life insurance. Executive Director Loans. NYSE: IBN Banking.. 2009. Sandeep Bakhshi. ▲ USD 15. Mumbai.28 billion (US$ 77 billion) at December 31. Chanda Kochhar. Kannan. 2009 and profit after tax Rs.8 million) for the nine months ended December 31. (These data are dynamic. Kamath. ICICI Bank Towers. Investment vehicles.06 billion ▲ USD 120. Savings. Trotal assets of Rs. Capital Markets and allied industries 1955 (as Industrial Credit and Investment Corporation of India) Headquarters ICICI Bank Ltd.) www. Executive Director Sonjoy Chatterjee.) .S.721 ATMs in India and presence in 18 countries. Executive Director & CFO. K. as well as some 24 million customers (at the end of July 2007). Bandra Kurla. Credit Cards. Ramkumar. Insurance. N. Deputy Managing Director. 2010) and about 4. Managing Director & CEO.icicibank. 30. 2009. Insurance etc.562.Chairman. venture capital and asset management. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and specialised subsidiaries and affiliates in the areas of investment banking. India Key people K.ICICI BANK Type Industry Founded Private BSE & NSE:ICICI.

V. Ramachandran 7. Tushaar Shah 8. Ramkumar. Mr. world-class service. Kamath. Create value for our stakeholders. . Swati Piramal 4. Khusrokhan 5. Executive Director 12. Arvind Kumar 6.       Expand the frontiers of our business globally. Mr.S. Play a proactive role in the full realisation of India‟s potential. Mr. Mr. Mr. Executive Director VISION To be the leading provider of financial services in India and a major global bank. Mr. Mr. Executive Director & CFO 11. Maintain a healthy financial profile and diversify our earnings across businesses and geographies. Maintain high standards of governance and ethics. speed and financial capital to: be the banker of first choice for our customers by delivering high quality. S. Managing Director & CEO 10. technology. Rajiv Sabharwal. M. Homi R. V. Contribute positively to the various countries and markets in which we operate. Chairman 2. Kannan. Chanda Kochhar. Mr. K. MISSION  We will leverage our people. Mr. K. Sridar 9. Dr. N.BOARD MEMBERS 1. Sridar Iyengar 3. Ms. Dr.

HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. HDFC Bank began operations in 1995 with a simple mission: to be a “World Class Indian Bank. SNAPSHOT Company Background Industry Business Group Incorporation Date Public Issue Date Face Value Company/Business Registration No Key Officials CEO Aditya Puri Finance . HDFC Group 31/12/1994 31/12/1995 10. Today.Banks . The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited'. as part of the RBI's liberalization of the Indian Banking Industry in 1994. India.HDFC BANK The Housing Development Finance Corporation Limited (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.” We realized that only a single minded focus on product quality and service excellence would help us get there. we are proud to say that we are well on our way towards that goal. with its registered office in Mumbai.0000 INE040A01018 .Private Sector.

has been a professional banker for over 25 years. Executive Director. our Founder and Chairman-Emeritus. World Bank and Government nominee on the Boards of many companies in the financial sector. Mr. Mr. A retired IAS officer.M. Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry. Government of India.FOUNDERS If ever there was a man with a mission it was Hasmukhbhai Parekh. . and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia. Vasudev has been a Director of the Bank since October 2006. Deepak Parekh is the Chairman of HDFC. the country‟s leading housing finance company. C. 994. The Bank's Board of Directors is composed of eminent individuals with a wealth of experience in public policy. administration. Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. Vasudev has been appointed as the Chairman of the Bank with effect from 6th July 2010. the bank believes that its people are a significant competitive strength. Senior executives representing HDFC are also on the Board. Mr. Aditya Puri. MANAGEMENT Mr. who left this earthly abode on November 18. A pioneer in mortgage finance. he has enabled scores of Indian middle class people owning their houses or apartments through affordable loans. The Managing Director. industry and commercial banking. including Finance Secretary. Vasudev has had an illustrious career in the civil services and has held several key positions in India and overseas.

People. World Class Indian Bank 2. Customer Focus. 2. technology. risk management and audit & compliance VISION STATEMENT OF HDFC BANK The HDFC Bank is committed to maintain the highest level of ethical standards. Benchmarking against international standards. Operational excellence. To build sound customer franchises across distinct businesses 4. 3. .MISSION 1. Best practices in terms of product offerings. 3. service levels. HDFC Bank‟s business philosophy is based on four core values such as:1. professional integrity and regulatory compliance. Product leadership. 4.

80%. Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies. The Oriental Insurance Company Ltd.. The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence. The Bank as on 30th September. 414. empowered employees and smart use of technology Core Values • • • • • Customer Centricity Ethics Transparency Teamwork Ownership . i. VISION 2015: To be the preferred financial solutions provider excelling in customer delivery through insight. 2012). The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. and United India Insurance Company Ltd. The New India Assurance Company Ltd. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI . 2012) providing 24 hrs a day banking convenience to its customers. The Bank has a very wide network of more than 1600 branches (including 169 Service Branches/CPCs as on 30th June. after the Government of India allowed new private banks to be established.e.53 crores with the public holding (other than promoters and GDRs) at 53. National Insurance Company Ltd. 2012 is capitalized to the extent of Rs. The Bank has a network of over 10000 ATMs (as on 30th June. This is one of the largest ATM networks in the country.I)..AXIS BANK Axis Bank was the first of the new private banks to have begun operations in 1994.

BOARD OF DIRECTORS 1. 6. 10. Kaundinya. Director Rabindranath Bhattacharyya. Rama Bijapurkar. Prithviraj. 11. 2. Director Prasad Menon. Mathur. 4. 5. 9. Director . Dasgupta. Samir K Barua. N. 8. Director K.K. Adarsh Kishore. Director Prof. Director V. R. Director S. B. 7. MD & CEO 3. Chairman Shikha Sharma. Director Som Mittal. Director A.

50 14.COMPANY ANALYSIS Table No.00 10.00 Mar' 09 11.00 8.5 ICICI Bank HDFC Bank Axis Bank 11 14 16.00 16.00 12.00 Mar' 10 12.com FORMULA: Dividend per share = DIVIDEND PER SHARE Graph No.00 16.00 10.50 4.5 .1 1.00 Axis Bank Source: www. 1 DIVIDEND PER SHARE 18 16 14 14 12 12 12 12 RATIO 10 8 6 6 4 2 0 Mar'12 Mar'11 Mar'10 YEARS Mar'09 Mar'08 4.00 12.50 6.3 11 10 10 8. DIVIDEND PER SHARE YEARS BANKS ICICI Bank HDFC Bank Mar' 12 16.5 16 16.00 Mar' 08 11.moneycontrol.30 Mar' 11 14.

. 2012.5 in the year 2011. the dividend per share reached to 16.INTERPRETATION The above analysis explains the dividend per share of Private sector banks for the period of 2008-2012. HDFC Bank paid 8.5 as dividend per share in the year 2008.. Axis Bank paid the increasing dividend year by year. it reached to 4.e. The dividend per share of ICICI Bank is in fluctuating trend. It increased to 16. After many fluctuations. It‟s dividend per share is 11 in the year 2008. The dividend per share gives the amount of cash flow from the company to the owners.3 in the current year i. In the year 2008. it paid 6 as dividend per share and in the year 2012.

RETURN ON LONG TERM FUND YEARS Mar'12 BANKS ICICI Bank HDFC Bank Axis Bank 52.35 88.72 .97 59.29 59.75 76.06 52.72 56.17 Mar'11 Mar'10 Mar'09 Mar'08 Source: www.34 71.34 71.17 62.72 83. 2 RETURN ON LONG TERM FUND 120 100 80 RATIO 60 40 20 0 Mar'12 Mar'11 Mar'10 YEAR Mar'09 Mar'08 97.97 72. 2 2.34 ICICI Bank HDFC Bank Axis Bank 56.31 97.com Return on Long Term Fund = Graph No.09 42.moneycontrol.34 62.08 66.Table No.09 76.31 62.06 88.08 44.29 44.34 56.72 83.35 62.75 42.91 66.34 56.91 72.

34 as returns on long term funds in the year 2008. Axis Bank also received fluctuating returns year by year. In the year 2008. the return on long term fund reached to 88.09 in the year 2012. 2012.17 and in the year 2012. The return on long term funds is the amount of cash flow from the long term investments. After many fluctuations.34 in the year 2008. It decreased to 52. it got the returns of 71.INTERPRETATION The above analysis explains the return on long term funds of Private sector banks for the period of 2008-2012. HDFC Bank had 62. It‟s return is 62. The returns of ICICI Bank are in decreasing trend till the year 2011.e..06 in the current year i.75. . it reached to 76.

21 Mar'11 Mar'10 Mar'09 Mar'08 Source: www.83 15.83 12.94 Axis Bank 18.Table No.59 9.79 7.79 13.59 17.70 15. 3 3.21 ICICI Bank HDFC Bank .94 13.77 15.83 12.83 7.com Return on Net worth = Graph No. 3 RETURN ON NETWORTH 20 18 16 14 RATIO 12 10 8 6 4 2 0 Mar'12 Mar'11 Mar'10 YEAR Mar'09 Mar'08 10.7 9.70 17.67 7.26 18.35 7.26 17. Return on Net Worth (%) YEARS Mar'12 BANKS ICICI Bank HDFC Bank Axis Bank 10.32 17.47 17.47 15.moneycontrol.58 15.77 8.7 17.58 8.67 13.32 13.35 15.

It increased to 10. Axis Bank also received fluctuating returns year by year. the return on long term fund reached to 18.7 in the year 2012.26 in the current year i. It‟s return is 8. it got the returns of 12.INTERPRETATION The above analysis explains the return on net worth of Private sector banks for the period of 2008-2012.94 in the year 2008.21 and in the year 2012. In the year 2008. it reached to 17.e. After many fluctuations. .59. The returns of ICICI Bank are in fluctuating trend during the study period. HDFC Bank had 13.83 as returns on networth in the year 2008.. 2012.

01 127.31 545.99 545.44 284.13 Mar'11 Mar'10 Mar'09 Mar'08 Source: www. 4 4.64 324.01 500 400 RATIO 300 551.44 284.19 395.38 HDFC Bank 444.77 463.94 344.38 245.01 470.99 444.99 478. Return on assets excluding revaluations YEARS Mar'12 BANKS ICICI Bank HDFC Bank Axis Bank 524.99 344.50 417.moneycontrol.52 100 0 Mar'12 Mar'11 Mar'10 YEAR Mar'09 Mar'08 .31 470.com Return on Assets excluding revaluation = Graph No.5 245. 4 RETURN ON ASSETS 600 524.64 324.94 200 127.53 478.01 395.77 463.52 551.13 Axis Bank ICICI Bank 417.Table No.53 462.19 462.

.01 in the year 2012.e.52 in the current year i. Axis Bank also received increasing returns year by year.64 in the year 2008. the return on long term fund reached to 551.INTERPRETATION The above analysis explains the return on assets excluding revaluation of Private sector banks for the period of 2008-2012. it got the returns of 245. In the year 2008.78 as returns on assets in the year 2008. . it reached to 127. It increased to 524. Return on assets financial ratio reveals how asset intensive a business is. 2012.99. HDFC Bank had 324.13 and in the year 2012. It‟s return is 417. The returns of ICICI Bank are in increasing trend during the study period. After many fluctuations.

1 0.02 0 Mar'12 Mar'11 Mar'10 YEAR Mar'09 Mar'08 0.09 0.13 0.10 0.09 0.1 0.09 0. 5 TOTAL ASSETS TURNOVER RATIO 0.09 0.11 0.1 0.11 0.04 0.11 0.11 0.11 0.11 0.11 0.1 RATIO 0.10 0.08 0. Total Assets Turnover Ratios YEARS Mar'12 BANKS ICICI Bank HDFC Bank Axis Bank 0.09 0.Table No.com Total assets turnover ratio = Graph No.08 0.moneycontrol.09 0.10 0.10 0.06 0.13 0.09 0.1 0.12 0.1 ICICI Bank HDFC Bank Axis Bank .09 0. 5 5.08 0.10 Mar'11 Mar'10 Mar'09 Mar'08 Source: www.14 0.11 0.

It measures a company's efficiency in using its assets. It increased to 0.1 and in the year 2012. Axis Bank also had increasing ratios year by year.e. The assets turnover ratios of ICICI Bank are in fluctuating trend during the study period.11 in the year 2008. it reached to 0.09 in the year 2012. . the assets turnover ratio reached to 0. the assets turnover ratio is 0. 2012. In the year 2008. After many fluctuations..INTERPRETATION The above analysis explains the assets turnover ratio of Private sector banks for the period of 2008-2012. It‟s ratio is 0. The asset turnover ratio calculates the total sales for each dollar of asset a company owns.1. HDFC Bank had 0.11 in the current year i.11 as assets turnover ratio in the year 2008.

6 TOTAL DEBT TO OWNERS FUND 14 12 10 8 6 4.42 9.24 9.49 5.91 4.76 HDFC Bank Axis Bank ICICI Bank 5.moneycontrol.27 .78 11.96 3.81 4.81 7.23 4 2 0 Mar'12 Mar'11 Mar'10 YEAR Mar'09 Mar'08 4. 6 6.49 9.24 RATIO 9.22 9.42 9.76 9.23 8.10 8.99 8.27 8.96 8.Table No.1 3.99 Mar'11 Mar'10 Mar'09 Mar'08 Source: www.91 7.22 8.75 9.com Total debt to owners fund = Graph No.78 8.75 11. Total Debt to Owners Fund YEARS Mar'12 BANKS ICICI Bank HDFC Bank Axis Bank 4.65 8.65 4.

Axis Bank also had increasing ratios year by year.24 in the current year i. After many fluctuations. 2012. It increased to 4.65. HDFC Bank had 8. the assets turnover ratio reached to 9.27 in the year 2008.INTERPRETATION The above analysis explains the total debt to owner‟s fund of Private sector banks for the period of 2008-2012. It‟s ratio is 5.23 in the year 2012. . The total debt to owner‟s fund of ICICI Bank is in fluctuating trend during the study period.99 and in the year 2012.e.76 as total debt to owner‟s fund in the year 2008. the total debt to owner‟s fund is 9.. In the year 2008. it reached to 8.

04 0.moneycontrol.03 0.03 0.03 0.13 0.03 .03 0.14 0.04 0.02 0.08 0.11 CURRENT RATIO 0.03 Mar'11 Mar'10 Mar'09 Mar'08 Source: www.04 0.02 0 Mar'12 Mar'11 Mar'10 YEAR Mar'09 Mar'08 0.06 Axis Bank 0. 7 7.08 0.13 0.13 0.03 0.14 0.16 0.14 0.06 0.04 0.11 ICICI Bank HDFC Bank 0.06 0. 7 0.03 0.Table No.03 0.08 0.com Current Ratio = Current Current Assets iabilities Graph No.13 0.11 0.04 0.03 0.12 RATIO 0. Current Ratio YEARS Mar'12 BANKS ICICI Bank HDFC Bank Axis Bank 0.1 0.11 0.02 0.

INTERPRETATION The above analysis explains the current ratio of Private sector banks for the period of 2008-2012.. HDFC Bank had 0. It increased to 0. it reached to 0. .13 in the year 2012.03 except in the year 2010 0. Axis Bank‟s current ratio for all the years is 0. After many fluctuations.e.02.08 in the current year i.04 as current ratio in the year 2008. Current ratio explains the liquidity position of the company. The current ratio of ICICI Bank is in fluctuating trend during the study period. It‟s ratio is 0. 2012.11 in the year 2008.

23 36.31 21.15 35.16 33. 8 40 35 30 25 RATIO 20 15 10 5 0 Mar'12 22.16 23.60 22.82 DIVIDEND PAYOUT RATIO 37.12 22.69 18.78 37.49 22.com Dividend payout ratio = Graph No.72 19.16 23.6 33.15 32.31 35.12 ICICI Bank 22.49 Mar'11 Mar'10 Mar'09 Mar'08 Source: www.16 22.78 22.82 22.16 HDFC Bank Axis Bank Mar'11 Mar'10 YEAR Mar'09 Mar'08 .56 36.69 18. 8 8.16 23.Table No. Dividend Payout Ratio Net Profit YEARS Mar'12 BANKS ICICI Bank HDFC Bank Axis Bank 32.23 22.72 23.moneycontrol.56 21.72 19.72 22.

82 in the year 2012. in the form of dividend. out of the company's profit is measured through the payout ratio.69 in the current year i. This is the continuous stream of cash flow to the owners of shares.15. It decreased to 32. 2012. apart from the price differentials (capital gains) in the market. The dividend payout ratio of ICICI Bank is in fluctuating trend during the study period.12 in the year 2008. ..INTERPRETATION The above analysis explains the dividend payout ratio of Private sector banks for the period of 2008-2012. it reached to 22. The return to the shareholders.e.16 as dividend payout ratio in the year 2008. Axis Bank‟s dividend payout ratio is 23. HDFC Bank had 22.49 in the year 2008 and it decreased to 18. After many fluctuations. It‟s ratio is 33.

40 82.87 37.02 102.09 22.73 40 22.06 56.67 44.37 29.77 50.com Earnings per share = et profit o of shares outstanding Graph No.4262.54 80 RATIO 64.67 100 84.77 50.37 44.94 Mar' 11 Mar' 10 Mar' 09 Mar' 08 Source: www. 9 9.87 29.76 52.06 33. Earnings per Share YEARS Mar' 12 BANKS ICICI Bank HDFC Bank Axis Bank 56.57 44.1 33.4 82.76 52.54 36. 9 EARNINGS PER SHARE 120 102.42 62.02 20 36.94 HDFC Bank ICICI Bank 60 Axis Bank 0 Mar'12 Mar'11 Mar'10 YEAR Mar'09 Mar'08 .09 44.moneycontrol.10 64.Table No.57 37.73 84.

HDFC Bank had 44.67.e. 2012. .94 in the year 2008 and it increased to 102. Axis Bank‟s earnings per share is in increasing trend during the study period. it reached to 22..09 in the year 2012. It increased to 56.37 in the year 2008. It‟s earning per share is 37. The earning per share of ICICI Bank is in fluctuating trend during the study period.02 in the current year i. The earnings per share is 29.INTERPRETATION The above analysis explains the Earning per share of banks for the period of 2008-2012. This ratio determines what the company is earning for every share. After many fluctuations.87 as earning per share in the year 2008.

00 1.111 -1.10 1.00 1.375.036.05 0.270.90 -3.102.252.224.80 1.00 1.94 2.395.25 1.38 -0.989 2.479 -0.063.42 -0.055.91 1.10 1.00 2.030.00 1.30 1.239.74 -1.00 1.7 5496.74 2.00 2.255.90 0.00 2.27 0.26 -2.395 0.226 1.118.232.74 -0.74 -1.420.97 4.264.20 -1.18 -0.038.074 -0.448.046 0.400.118.352 -0.04 -0.19 -1.104.7 5567.9 5689.80 1.80 1.00 1.00 2.00 1.86 -3.70 1.223.7 5575.75 1.325.387.268 -0.64 0.250.59 -1.226.195.63 -0.55 -0.821 0.00 1.261 -1.90 1.90 1.00 2.19 0.169 -0.77 0.18 0.50 1.00 1.113.50 1.258.54 -1.78 1.82 -0.06 2.114.00 1.673 -0.45 2.36 0.70 1.288.20 1.224.00 2.241.338.00 2.411.426.00 1.23 0.58 0.65 0.00 2.95 1.00 1.90 2.449.4 5541.278.375.90 -0.25 3.624 -1.22 2.55 2.144 -0.303 0.255.648 -0.00 1.383 -0.125 -0.00 1.40 0.312 0.85 -2.50 -0.386.070.872 -0.79 -0.273.95 0.018.00 1.22 0.10 1.12 -0.324.423.00 1.52 -0.78 1.44 -0.93 0.177 -0.294 0.28 -0.119.781 -0.14 4.339 -2.37 3.72 -1.096.045.223.6 5477.00 1.10 1.95 1.00 1.214.70 1.80 1.295.6 5886.078.7 5456. 10 MOVEMENT OF PRICE AND RETURNS OF BANKING STOCKS FOR THE PERIOD 1ST APRIL 2011 TO 30TH JUNE 2011 DATE 1/4/11 4/4/11 5/4/11 6/4/11 7/4/11 8/4/11 11/4/11 13/04/11 15/04/11 18/04/11 19/04/11 20/04/11 21/04/11 25/04/11 26/04/11 27/04/11 28/04/11 29/04/11 2/5/11 3/5/11 4/5/11 5/5/11 6/5/11 9/5/11 10/5/11 11/5/11 12/5/11 13/05/11 16/05/11 17/05/11 18/05/11 19/05/11 20/05/11 23/05/11 24/05/11 25/05/11 26/05/11 27/05/11 30/05/11 31/05/11 ICICI BANK PRICE RETURNS HFDC BANK PRICE RETURNS AXIS BANK PRICE RETURNS NIFTY INDEX RETURNS 1.76 -1.50 1.55 2.384.072.02 1.031 -1.225.16 -1.093.975 1.084.60 1.251.325.00 1.446.49 -0.73 -1.60 -1.353.82 1.31 0.39 -1.20 -1.2 5537.00 1.391.7 5493.00 1.8 5492.00 2.28 -3.00 2.398.00 2.9 5859.00 1.20 1.203.79 -0.00 2.008.50 2.762 1.245.254.297.53 -1.25 1.57 -0.2 5448.67 -0.84 -0.56 -0.8 5492 0.044.00 1.85 2.91 1.95 1.80 1.378.57 -0.90 1.60 -3.124.25 0.437.44 1.354.212.121.21 -0.00 1.116.15 -0.10 1.4 5748 5898.05 1.20 2.00 2.85 -1.114.9 5908 5888.899 -0.260.058.1 5448.00 1.2 5851.50 1.10 -1.61 -1.260.8 5805.7 5531.00 2.TABLE NO.02 2.00 2.229.82 2.61 -0.50 1.00 1.7 5385.401 -0.00 2.00 1.105.28 5835 5842 5923.00 1.00 2.52 -1.86 1.46 -1.88 -1.340.61 -2.00 2.57 -1.40 1.73 0.71 0.108.4 5782.00 2.10 -0.00 1.080.302.033.23 -0.80 0.00 2.25 -0.10 2.13 -0.8 5824.329 -0.11 -2.00 2.00 1.2 5450.085.86 1.00 1.430.823 -0.50 1.00 1.97 -1.4 5716 5786.75 1.90 1.00 1.279.306.194.00 1.44 -0.340.5 5766.31 -0.28 -0.371.79 0.76 -1.63 0.558 -1.27 5.021.250.059.057.210.00 1.239.27 -1.422.81 2.304.00 2.270.25 -3.001 0.215.1 5882.90 1.70 1.244.47 0.80 2.103.00 1.093.430.1 5389.360.81 -0.6 5876.24 1.41 -1.55 2.8 5413.50 1.00 2.55 2.75 1.382.230.60 1.12 1.95 1.16 -1.9 5884.6 5547.00 2.1 5372.64 1.15 2.00 2.00 -1.00 2.081.363.2 5555.00 2.354.88 0.22 -1.032 .225.00 1.00 2.80 -0.376.127.88 -0.100.00 1.410.

1 5343.71 1.7 5504.63 0.040.11.390.90 1.745 -1.647 -1.40 1.70 - 2.235.302.95 -0.00 1.355.227.00 1.00 2.75 2.050.40 2.00 1.95 1.39 2.244.132 -0.051.15 1.4 5441.05 0.030.62 0.039.00 2.9 5565.16 2.70 1.80 1.272.242.00 1/4/2011 6/4/2011 11/4/2011 18/04/2011 21/04/2011 27/04/2011 2/5/2011 5/5/2011 10/5/2011 13/05/2011 18/05/2011 23/05/2011 26/05/2011 31/05/2011 3/6/2011 8/6/2011 13/06/2011 16/06/2011 21/06/2011 24/06/2011 29/06/2011 DATE ICICI BANK HDFC BANK AXIS BANK NIFTY INTERPRETATION: It is clear from the above table that average return of ICICI Bank is -0.00 2.02 2.020.38 -0.356.56 0.83 1.90 1.00 1.288 0.00 -3.89 1.02.32 -0.219.82 1.225.231.9 5485.45 1.00 RETURNS 4.23 2.08 0.350.12 5561.41 -0.5 5614.00 2.1 -0.9 5566.98 -0.57 -0.29 1.20 1.42 0.016.378.00 2.08 -0.25 1.435.05 1.21 -0.67 1.054.29 1.01 -0.67 -0.083.48 0.88 1.103 0. RETURN 1.00 - 2.088 0.00 1.00 1. .312.00 2.23 -0.429.035.383.230.6 5494.46 0.332.8 5304.050.230.1/6/11 2/6/11 3/6/11 6/6/11 7/6/11 8/6/11 9/6/11 10/6/11 13/06/11 14/06/11 15/06/11 16/06/11 17/06/11 20/06/11 21/06/11 22/06/11 23/06/11 24/06/11 27/06/11 28/06/11 29/06/11 30/06/11 AVG.36 -1.49 1.873 0.7 5269.1 5529.96 -2.499.342.091.978 0.050.00 1.95 0.365.00 1.07 -1.00 1.247.361 -0.00 1.04 -0.30 1.32 -0.00 1.282.10 1.79 -0.00 -4. average return of Axis Bank is -0.06 0.49 0.024.00 2.80 -1.06 0.90 1.92 0.10 -0.20 1.35 1.161 -1.45 0.267.50 2.11 1.00 1.5 - 1.21 0.295.00 1.3 5523.12 1.30 2.28 3.36 -1.15 2.00 - 0.12.255.00 2.354.58 0.95 0.05 2.364.5 5372.45 2.00 1.00 1.41 1.055.211 -0.026.5 5419.474 -0.00 1.089.00 1.00 1.15 2.90 1.00 2.28 -2.58 1.86 2.368.058 MOVEMENTS OF RETURNS OF STOCKS 8.2 5548.43 0.318 0. Return of HDFC Bank is 0.345.041.359.311.6 5518.00 -2.70 1.080.00 6.00 0.35 1.259.452 -0.7 5412.00 1.95 2.48 -1.862 -0.84 -0.56 -0.229.701 0.70 1.349.030.2 5535.061.257 -0.1 5469.319.42 -2.3 5509.95 1.70 1.045.10 1.87 -0.380.00 1.353.251.2 5280.99 -0.242.63 -1.90 1.10 2.20 2.00 2.24 -0.03 -1.253.35 -2.63 1.00 2.

10 1.205.245.72 -1.40 1.99 1.20 -0.69 -2.5 5588.25 1.322 -1.25 -0.402 1.50 1.213 1.345.339.00 1.9 493.947 -4.9 5642.312.55 -0.4 444 -0.09 1.295 -1.92 0.89 1.92 -2.10 2.90 0.490.1 5556.9 478.02 -1.50 970 940.95 1.82 -3.00 1.21 1.27 1.80 1.614 -0.321 1.5 489.322.70 3.00 -2.862 0.281.378 -0.4 5734.6 5659.12 -1.27 -1.80 1.70 0.091.5 5493.110.15 -6.510 -1.75 5705.265.06 1.30 1.00 2.15 1.45 1.7 4925.7 485.8 5030.50 -1.80 -2.00 2.049.326.025.8 5679.1 5554.35 499.23 1.067.40 0.95 -0.187 -0.70 0.885 -0.025 -1.4 456.85 1.756 -1.70 -1.94 1.90 1.244 0.674 5.39 -3.075.171.81 9.190.00 3.4 5479 5527.7 4839.00 2.3 4843.76 -1.63 -1.330.00 2.011.00 505.73 -0.296 -1.008.306.267 0.229.00 -1.33 1.226.510.91 -0.10 1.193 -3.61 1.57 0.38 -4.9 832.00 2.315 -2.22 1.1 465 463 450 494.82 -0.9 5622.87 -1.11 4.04 1.00 1.535.259.90 1.285.075.19 0.19 1.95 -2.95 -1.269.90 0.00 1.55 505.019 0.012.9 5542.50 1.TABLE NO.00 1.11 -0.303.00 1.64 -0.111.335.75 1.055.00 1.621 -1.84 1.720 -0.58 1.459 -0.540.21 -2.29 -3.334.09 -2.18 2.00 -0.25 -0.75 -1.95 1.4 5125.254.80 1.17 1.3 5078 4859.486 0.247.56 1.052.35 1.00 1.5 516.95 1.1 478.092.9 4947.4 504.5 959.77 1.00 4.13 -3.207.101.6 5128 5194.237.00 1.43 -2.660 0.189 1.546.559.40 1.71 0.2 4934.060.78 -0.35 -0.30 1.52 0.20 -3.91 1.21 -2.050.00 2.61 1.534 .294.041.550 0.05 457.323.61 1.09 -2. 11 MOVEMENT OF PRICE AND RETURNS OF BANKING STOCKS FOR THE PERIOD 1ST JULY 2011 TO 30TH SEPTEMBER 2011 ICICI BANK DATE 1/7/11 4/7/11 5/7/11 6/7/11 7/7/11 8/7/11 11/7/11 12/7/11 13/07/11 14/07/11 15/07/11 18/07/11 19/07/11 20/07/11 21/07/11 22/07/11 25/07/11 26/07/11 27/07/11 28/07/11 29/07/11 1/8/11 2/8/11 3/8/11 4/8/11 5/8/11 8/8/11 9/8/11 10/8/11 11/8/11 12/8/11 16/08/11 17/08/11 18/08/11 19/08/11 22/08/11 23/08/11 24/08/11 25/08/11 26/08/11 PRICE RETU RN HDFC BANK PRICE RETU RN AXIS BANK PRICE RETU RN NIFTY INDEX RETURN 1.039.349.042.6 5577 5633.20 0.4 458 459.35 499.00 -4.13 -1.13 0.60 -2.279.347 -0.95 517.14 1.058.399 -1.00 3.44 0.610 -0.266.18 1.97 1.25 -1.306 -0.95 958.970 -1.05 915 963.44 -0.08 -0.844 -2.066.29 1.75 -3.00 -2.96 -3.04 2.300.656 0.20 1.30 -1.242.45 487.80 -79.319 1.11 1.40 -3.267.05 1.77 -0.12 -0.048.8 478.00 2.682 0.7 5633.18 1.25 -1.057.1 506.566.042.00 1.95 -0.58 -2.15 -2.60 1.01 1.00 1.8 5569.012.09 1.95 0.3 -0.522.7 484.4 5204.25 -0.00 -0.35 1.11 1.66 5.9 5196.3 455 460.93 -7.25 0.67 2.00 1.7 5648.08 0.50 -0.90 1.4 5083.31 -3.18 1.85 -1.1 933 915 845 835 857 845 849.96 1.098.34 -1.8 5688.4 4914.03 -1.60 -0.23 -2.1 5569 5603 5581.6 5492.16 1.045.3 962.8 500 501.00 -0.00 1.00 -2.05 468.58 0.079.94 1.65 -1.798 -1.45 1.078.314.2 5402 5412.55 1.535.31 0.45 511.51 0.065.00 1.00 1.19 1.

141.88 2.2 5161.073 -0.20 - -0.2 4973.18 -0.20 1.062.15 889.3 872.339 -0.096.93 0.2 - 0.60 -0.61 -0.5 890.510 2.2 - -0.9 468.8 4998.101.4 5123.205 -1.5 856.9 485 492.95 3.8 4878.15 -2.7 862.58 2.18 3.9 486.100.104.55 465.44 0.99 -3.6 476 489.100 0.93 4.170 -0.109.00 1.4 5080.91 -0.80 1.03 3.29 4.11 3.49 0.960 1.60 1.47 -1.30 1.33.019.13 -0.00 1.9 880.00 1.162 0.31.79 2.124.927 -3.51 3.131.6 4905. Average return of Axis Bank is -0.88 -1.58 -2.480 -0.5 877 875 894 901.25 481.00 1.30 1.00 1.55 -2.63 -0.3 844 874.00 0.073.49 -4.47 -0.083.86 -0.201 MOVEMENTS OF RETURNS OF STOCKS 20 0 RETURNS -20 -40 -60 -80 -100 DATE ICICI BANK HDFC BANK AXIS BANK NIFTY 4/7/2011 7/7/2011 12/7/2011 15/07/11 20/07/11 25/07/11 28/07/11 2/8/2011 5/8/2011 10/8/2011 16/08/11 19/08/11 24/08/11 29/08/11 5/9/2011 8/9/2011 13/09/11 16/09/11 21/09/11 26/09/11 29/09/11 INTERPRETATION: It is clear from the above table that average return of ICICI Bank is -0.98 -3.074.87 1.75 880.9 925.141.75 487.33 444.00 1.30 2.86 -0.9 4993.3 4981.5 862.4 457.00 1.2 4990.683 3.68 4.055.575 0.12 1.76 3.624 1.85 875 891 877.40 1.6 5153.77 -3.96 -1.10 1.93 -0.1 5062.61 1.02 4.70 1.8 5054.5 4873.090.147.52 -0.8 468.060.00 1.42.111 1.10 1. RETURN 835 870 891. .64 -4.3 5109.7 4977.50 1.09 3.83 -1.55 456 458 462.80 -1.76 2.26 1.430 -3.25 886.81 -1.89 0.205 -1.17 0.68 0.046 -1.476 2.8 4965.07 -0.4 5068.18 -3.738 1.143.00 1.055.42 1.9 467 471 467.256 1.77 -2.05 1.55 1.091.00 1.544 2.064.85 - 0.131.00 1.49 -1.29/08/11 30/08/11 2/9/11 5/9/11 6/9/11 7/9/11 8/9/11 9/9/11 12/9/11 13/09/11 14/09/11 15/09/11 16/09/11 19/09/11 20/09/11 21/09/11 22/09/11 23/09/11 26/09/11 27/09/11 28/09/11 29/09/11 30/09/11 AVG. Return of HDFC Bank is -1.19 2.06 -2.73 -1.1 848.14 -0.4 485.31 4806.746 -2.23 2.64 1.75 3.5 461.7 483.89 -1.5 4924.17 -0.2 5005.95 484 469.2 5139.97 -2.4 5042.96 0.83 -3.078 -0.

95 488 490.25 1.00 1.7 452 460.498 -1.00 -0.405 -0.00 -0.01 -1.387 -1.38 -1.6 4731.9 4779.76 0.56 -1.161.6 5325.2 456 447 441.2 993 961 985.90 1.070 0.016 4.2 4766.3 5309.00 1.89 -0.2 5059.75 1.45 -2.824 1.05 739.1 824.00 1.3 4864.394 0.9 5215 5341.7 470 463.1 4899.454 1.50 1.65 -1.15 452.9 740.600 -0.59 -0.68 3.4 972 977.5 5080.93 -0.23 0.150.5 724 754 765.93 -1.85 -0.803 1.8 5217.139.20 -3.50 460.7 481 486.30 -0.65 469.9 5358.116 -1.475 1.22 -3.65 2.158.100.9 819 787 790.10 1.4 5131.78 0.6 5216.15 1.00 1.505 0.57 0.46 -1.44 -2.59 2.434 0.66 -0.95 455.00 1.15 -1.614 0.066 2.105.00 1.172 0.83 1.95 726 725.136.93 1.18 -1.00 1.97 -1.3 4883.41 2.500 2.60 0.5 5086.00 984.00 1.95 0.90 1.7 461.22 3.86 1.55 1.17 -0.633 -2.00 1.330 -2.620 -0.26 0. 12 MOVEMENT OF PRICE AND RETURNS OF BANKING STOCKS FOR THE PERIOD 1ST OCTOBER 2011 TO 31TH DECEMBER 2011 DATE 3/10/11 4/10/11 5/10/11 7/10/11 10/10/11 11/10/11 12/10/11 13/10/11 14/10/11 17/10/11 18/10/11 19/10/11 20/10/11 21/10/11 24/10/11 25/10/11 26/10/11 28/10/11 31/10/11 1/11/11 2/11/11 3/11/11 4/11/11 8/11/11 9/11/11 11/11/11 14/11/11 15/11/11 16/11/11 17/11/11 18/11/11 21/11/11 22/11/11 23/11/11 24/11/11 25/11/11 28/11/11 29/11/11 30/11/11 1/12/11 2/12/11 ICICI BANK PRICE RETURN HDFC BANK PRICE PRICE AXIS BANK RETURN PRICE NIFTY INDEX RETURN 860 834 801 817.42 0.320 -1.80 1.651 -1.95 452.505 0.35 880 884.26 -3.80 1.99 -3.25 2.57 1.5 4707.8 5241.17 2.72 0.120 0.19 -0.990 -2.95 475 469 476.82 -3.7 5159.05 492.95 981.15 1.25 -3.545 -0.93 -0.9 852 840 875.00 1.14 -2.51 -0.15 455.88 -4.00 1.004.70 -3.9 4940.33 6.030.00 1.84 -0.72 -2.43 -1.05 -0.94 -0.32 0.149.10 0.58 -1.172.173 2.1 978.81 -3.8 4794.75 436 444 429.00 1.622 0.124.48 1.41 4.TABLE NO.003.8 879 885 911.1 960 951.42 0.100.92 -3.116.103.056.92 0.55 -0.9 -1.5 886.89 -1.5 770 762.02 -3.6 5114.2 5049.75 856.17 -2.96 2.01 0.5 937 940 954.75 428.64 1.66 0.95 3.00 978.318 -1.111.008.55 -0.00 1.4 5156.5 448.85 -1.62 -0.02 -0.2 4873.127.3 4769.9 482.295 -0.26 -0.604 .9 5278.075.00 -2.27 2.65 4874.9 5011.5 877 895 888 888 885.21 0.7 4886.28 0.25 1.78 0.7 880 889.060.5 4791.044 -0.45 1.6 473.53 5.14 1.4 4823.8 5057.927 0.62 0.159 0.44 -2.044.86 3.53 4.3 -3.4 5292.7 483 485 475.00 1.41 -1.95 885.05 0.668 1.36 1.91 0.09 -0.00 1.3 730 750.01 2.955 -2.17 -2.97 -0.83 -3.65 935 917.51 -0.52 0.432 1.85 472 486 483 485.2 458.91 1.1 5027.40 4.22 2.32 1.07 0.00 -2.00 1.135.29 -1.6 884.75 487.150.15 -1.9 5019.7 5137.82 -1.8 427.24 1.87 1.9 470.1 478.723 -0.517 -1.26 1.25 837.6 5106.2 4970.119.40 -0.2 5130.073.

00 -0.28 -0.34.270 -0.063 MOVEMENTS OF RETURNS OF STOCKS 8 6 4 RETURN 2 0 12/10/2011 17/10/2011 20/10/2011 31/10/2011 15/11/2011 18/11/2011 23/11/2011 28/11/2011 7/12/2011 3/10/2011 7/10/2011 3/11/2011 9/11/2011 1/12/2011 12/12/2011 15/12/2011 20/12/2011 23/12/2011 -2 -4 -6 -8 DATE ICICI BANK HDFC BANK AXIS BANK INTERPRETATION: It is clear from the above table that average return of ICICI Bank is -0.49 2.09 5.08.17 -3.29 2.42 -0.8 4752. 28/12/2011 25/10/2011 .29 0.32.55 -0.010 2.8 - 1.502 -1.47 4.005.60 -1.4 4870.7 4712.5 444.9 690 728.36 -0.251 -3.35 - 2.014 0.25 -3. RETURN 786 784 758.78 -5.9 4763.85 -0.45 816 - 2.5 4623.005.41 -4.2 4718.79 0.1 5037.2 4780.48 -1.6 4788.2 672 662 675.19 -5.724 -0.57 -2.86 -3.25 -4.15 0.531 1.18 2.5 5050.02 -0.315 -0.32 5036.3 442.7 691.65 433.453 -0.2 4681.25 885 880 872.2 439 440.8 4636.02 0.15 -0.035.89 -1.08 -1.74 -5.00 981.164 -1.69 2.5 435.00 1.722 0.19 -5.946 1.88 1.578 -0. Return of HDFC Bank is -0.741 -3.91 0.28 1.28 0.2 842.1 720.30 0.31 -1.56 -0.585 0.00 1.35 5.5 731 744 700 700 698 699.17 0.08 -0.97 -1.7 845.2 4635.50 -1.64 -4.2 4660 - 1.93 1.308 0.9 4733.34 463.1 412.4 690.46 -0.1 428 439 429 434.94 -1.7 470 467 447 448.936 0.49 2.4 721 727.274 0.10 2.05 406 426 431.63 1.97 -4.35 1.8 4906.07 -0.2 4756.00 962 959 948 955 897.5 4636. Average return of Axis Bank is -0.95 857.25 -3.70 -0.4 841 824.88 -4.033.842 -2.08 1.57 -1.5/12/11 7/12/11 8/12/11 9/12/11 12/12/11 13/12/11 14/12/11 15/12/11 16/12/11 19/12/11 20/12/11 21/12/11 22/12/11 23/12/11 26/12/11 27/12/11 28/12/11 29/12/11 30/12/11 AVG.

15 1.94 2.02 0.126.93 526.5 15/02/12 952.34 3.06 810 805.8 4775 4749 4724.7 13/01/12 787.069.39 -0.56 486 24/01/12 860 2.1 2.7 1.074.422 1.65 14/02/12 927 -0.1 851 869 898 931 948.05 -0.4 4.666 -0.8 5460.58 2.68 2.46 0.11 2.074.00 1.12 3.80 -0.00 1.02 485.7 0.973 1.134 -0.19 3.8 17/01/12 800 2.43 0.020 -0.79 0.2 4755.1 5380.30 1.5 5413 5343.3 5198.8 5490.120.062 -0.2 5448.5 0.39 -3.15 5.25 21/02/12 977 -0.70 1.79 0.00 997 1.00 1.00 1.959 0.03 2.076 1.8 -2.01 470 16/01/12 782 -0.8 5151.80 1.1 844.567 .96 2. 13 MOVEMENT OF PRICE AND RETURNS OF BANKING STOCKS FOR THE PERIOD 1ST JANUARY 2012 TO 31TH MARCH 2012 ICICI BANK DATE PRICE RETU RN HDFC BANK PRICE RETURN AXIS BANK PRICE RETURN NIFTY INDEX RETURN 2/1/12 690.98 -0.33 530 23/02/12 952 -3.2 4841 4862 4844 4904.93 0.4 -0.6 5513.11 2.40 441 7/1/12 748.53 3.25 27/01/12 888 -0.72 -0.210.114.114.53 0.58 3.248.767 2.5 6/2/12 925 2.81 -1.82 1.998 -0.2 4675.00 1.00 1.61 494.68 -0.39 531.483 0.28 0.1 5276.9 4863.543 -0.913 -0.16 0.7 10/2/12 933 1.53 472.8 1.9 19/01/12 780.2 27/02/12 932.38 -0.15 428.15 1.30 463.1 5399.277 -0.6 5125.51 0.038.60 4.30 2.369 1.8 13/02/12 929 -0.8 5382.9 0.4 4/1/12 733.82 -0.11 0.1 0.50 1.63 -1.57 0.23 461.5 0.1 1.076.47 0.8 5343.98 3.25 3.118.00 1.43 503.84 522.79 526 22/02/12 990 1.56 1.27 505.120 -0.2 -1.2 5561.623 -1.2 24/02/12 941.5 5216.70 490.71 -1.199 -0.64 -2.9 30/01/12 877 -1.29 490 23/01/12 843 3.TABLE NO.71 520.512 1.38 2.48 -0.26 510.24 1.09 486 20/01/12 814 4.221 0.78 -0.63 460 11/1/12 778.9 10/1/12 750.91 -0.494 0.8 850.9 18/01/12 779.185.75 -1.5 4977.024 1.249 1.9 0.269.00 -0.15 431.328 -0.8 5574.6 4747.97 4.59 514 8/2/12 927.67 1.035.26 1.423 0.77 0.094.712 1.742 1.01 -0.92 -1.97 1.64 -0.169 0.2 5272.23 -1.1 -1.523 0.13 527.5 2/2/12 899 -0.860 -2.84 527.99 0.7 9/2/12 916.8 4995 5044.9 5/1/12 745 1.65 460.61 -0.97 483.217.5 1/2/12 908 5.74 -0.58 444 6/1/12 742 -0.1 3.76 -0.267 -1.81 5.9 -1.00 1.785 1.62 1.30 1.33 451.9 3/1/12 705 2.1 5379.387 0.00 -0.1 5479.70 1.096 -0.43 518.00 1.04 531 17/02/12 984.32 510 7/2/12 939.00 1.80 1.00 1.68 1.347 0.286.142.9 5025.69 4640.8 3.50 1.8 849 862.99 499 3/2/12 904 0.36 -5.93 0.56 497.6 4771.90 1.205.9 5609.014 1.8 0.5 16/02/12 981 3.25 25/01/12 891.82 -0.22 522.24 482.88 453 9/1/12 746 -0.85 934 943 964 945 962.456 0.8 5163.118.017.74 466.124.95 31/01/12 859.18 2.00 1.53 -0.5 12/1/12 779.4 5064.80 1.03 441.78 -4.434 -0.

86 0.24 -3.05 522 7.227.504 -0.65 534 -0.96 -0.536 1. RETURN 896 915 902.174.00 1. Average return of Axis Bank is 0.12 533.41 2.356 -0.03 0.06 0.00 1.1 5490.189.17 -0.98 -0.25 2.99 510 -0.4 5243 5231.13 0.6 5462.098.86 496 -0.45 2.29.05 896.8 870 851 876.00 1.08 -2.84 503 3.526 2.00 1.75 851 864 - -3.76 -1.12 509.50 - -4.00 1.78 -2.1 5420.53 -2.7 5274.3 946.250.34 513.15 1.23 528.05 906.5 5380.85 3.26 -0.275.38 518.82 3.53 512 0.783 -1.165.191 1.326 -1.130.8 -2.380 -0.86 0.95 944 935.38 -0.57 5310.00 1.265.30 5.799 -1.672 2.72 508 1.77 4.35 518 -0.511 -1.38.00 1.6 5266 5207.1 0.28/02/12 29/02/12 1/3/12 2/3/12 3/3/12 5/3/12 6/3/12 7/3/12 9/3/12 12/3/12 13/03/12 14/03/12 15/03/12 16/03/12 19/03/12 20/03/12 21/03/12 22/03/12 23/03/12 26/03/12 27/03/12 28/03/12 29/03/12 30/03/12 AVG.17 -1.78 0.171.1 5342.41 0.064 -0.9 -3.39 -1.1 936.2 5361.76 513.00 1.190.28 -1.58 2.240.25 1.90 1.80 2.36 -1.80 1.129.52 -0.29 1.190 MOVEMENTS OF RETURNS OF STOCKS 10 8 6 4 2 0 -2 -4 -6 -8 RETURNS INTERPRETATION: It is clear from the above table that average return of ICICI Bank is 0.01 -2.175.38 - -1.99 2.90 1.8 903.188.58 0.148.179 0. Return of HDFC Bank is 0.90 519.00 1.30 -2.99 509.79 0.75 1.00 1.17 -0.85 515 -1.175 -0.37 517 -1.95 1.29 0.200.00 1.1 5294.1 5391. 2/1/2012 5/1/2012 9/1/2012 12/1/2012 17/01/2012 20/01/2012 25/01/2012 31/01/2012 3/2/2012 8/2/2012 13/02/2012 16/02/2012 22/02/2012 27/02/2012 1/3/2012 5/3/2012 9/3/2012 14/03/2012 19/03/2012 22/03/2012 27/03/2012 30/03/2012 PRICE ICICI BANK HDFC BANK AXIS BANK .68 5.140.595 -0.2 5267.75 902.4 5257.69 520 -2.82 -3.5 -2.6 - -2.92 523 1.18 -0.119 1.00 1.235.7 5146 5206.13 -0.7 887 874.846 -0.155 -1.234.57.9 -1.164.50 1.02 -3.96 510.185.154.51 -1.79 0.68 -2.5 5425 5366 5369.00 1.1 5255.132.503 0.967 0.5 5360.25 4.4 5337.5 -1.5 -0.50 1.18 506.27 514 1.79 -3.215 -1.087 0.00 1.5 891 903.95 1.05 -1.639 1.8 955 936 927 909.87 528 -1.02 0.433 -1.

. 4. ICICI Bank got lowest return on networth when compared to other banks i. Return on networth is the highest in case of Axis Bank with the average of 16. the average is 8. it is clear that HDFC Bank is getting highest total assets turnover ratio with the average of 0.98. the average is 465.. When compared to return on long term funds of public and private banks. In comparison of the dividend paid per share among (3) private sector banks.e.124 for all the five years. average for all the five years is 11. Return on assets is high in case of ICICI Bank i. ICICI Bank get low total assets turnover ratio when compared to other banks with the average of 0.. In comparison of total debt to owners fund among banks. 5.386for five years. it is found that Axis bank has highest total debt to owners fund i. . it is found that Axis Bank is highest dividend per share i. When compared to total assets turnover ratio of banks.094.26 for five years. the average is 0.768.e.e.05.18. ICICI Bank pays least dividend per share i. average for all the five years is 9.e..e. HDFC Bank pays least dividend per share i. ICICI Bank get low return on long term funds when compared to other banks with the average of 51. with the average of 10..58. 2.41 for five years.FINDINGS From the data analysis and interpretations of Indian economy. 6. HDFC Bank has lowest current ratio when compared to other banks i.e. 7.. HDFC Bank has lowest return on assets with the average of 362.41 for all the five years. Banking industry and company analysis of banks selected. Current ratio is the highest in case of ICICI Bank with the average of 0.6. it is clear that Axis Bank is getting highest return on long term fund with the average of 79.. the following findings have been given: 1. with the average of 4. 3.87.11.e.

61. ICICI Bank has lowest earnings per share when compared to other banks i. Dividend payout ratio on net profit is high in case of ICICI Bank i. 9.428 for five years. the average is 35. Earnings per share are the highest in case of Axis Bank with the average of 65. ... Axis Bank has lowest return on assets with the average of 21.016.8.55 for all the five years.e. the average is 41.e.

Return on long term funds and networth are fluctuating year by year. The total debt to owners fund is decreasing. Its liquidity position is not satisfactory but when compared to other banks it is better. Its return on net worth is low when compared to other banks. The return on total assets on turnover is increasing every year after 2010. The liquidity position is not satisfactory. It has got good return on long term fund. The bank is getting increasing earnings per share year by year. They are very careful while using their resources in order to safeguard their future. It is maintaining stable earnings per share. Return on networth and return on long term funds are in fluctuating trend during the study period.CONCLUSIONS Add conclusions of industry and economy from net ICICI Bank is paying increasing dividends per share year by year. The liquidity performance is not satisfactory and its earnings per share is increasing. The earnings per share are increased more than that of other banks during the study period. . Axis bank is paying low dividend per share when compared to other banks. It pays stable dividend on net profit. HDFC bank‟s dividend paid per share is in increasing trend. It gets good return on assets and the value of turnover on assets is also good. It is getting maximum return on assets.

 Business: An investor must look into what kind of business the company is doing. foreign investments are few of the opportunities which the industry has to explore for developing the economy. The two giants ICICI Bank and HDFC Bank have outperformed in the industry. Few Suggestions for “Right Stock Selection” There are three factors which an investor must consider for selecting the right stocks. increase in consumer demand. capital needs of the company for expansion etc. I have found that being a developing economy there is lot of scope for growth and this still has to cross many levels so there are huge opportunities to invest in and this is being proved as more and more foreign companies are setting up there ventures in India. Holding the shares for long time could be a wrong step and at this point of time those who invested earlier can book their profits. technology development. A continuous effort at cost cutting and improving productivity will help the companies in making reasonable profits despite the impact of higher commodity prices and weaker rupee. The analysis gives an optimistic view about the industry and its growth which recommends the investors to keep a good watch on the major players to benefit in terms of returns on their investments. globalization. . Increase in income level. it has been revealed that it has a lot of potential to grow.SUGGESTIONS By analyzing the current trend of Indian Economy and these companies. By analyzing the three companies with the help of fundamental analysis. price-earning ratio. its past track record.  Balance Sheet: The investor must focus on its key financial ratios such as earnings per share. debt-equity ratio. visibility of the business. dividends per share etc and he must also check whether the company is generating cash flows.

Knowledge and Discipline are very crucial for investment. Planning. An investor needs to choose valuation parameters which suit its business. . Set the purpose for investment. Investment rules       Invest for long term in equity markets Align your thought process with the business cycle of the company. Disciplined investment during market volatility helps attains profits. Long term goals should be the objective of equity investment. Bargaining: This is the most important factor which shows the true worth of the company.

com/financials/hdfcbank/ratios/HDF01 6. Financial Management by Shashi K Gupta and R. Vikas Publications. www. Websites 1.investopedia. Security analysis and portfolio management by V.moneycontrol. Kalyani Publications.nseindia.gov.com 2.com 3. 4.in 4. www. 2.BIBLIOGRAPHY Text Books 1. Financial Markets and Services by Gordon and Natarajan.A.moneycontrol. Avadhani 3. http://www. www.moneycontrol.sebi. http://www. http://www.com/financials/icicibank/ratios/ICI02 5.com/financials/axisbank/ratios/AB16 . Himalaya Publications. Security Analysis and Portfolio Management by Punithavathy Pandian. K Sharma.

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