A STUDY ON FINANCIAL ASPECTS OF SHARE PRICE BEHAVIOUR IN COMMERCIAL BANKS

ABSTRACT The project entitle as “A Study on Financial Aspects of Share Price Behavior in Commercial Banks”. In the current scenario, investing in stock markets is a major challenge faced by investors. The performance of the share market, the rise and the fall of the market is greatly affected by the performance of banking sector shares and this project revolves around all those factors, their understanding and a theoretical and technical analysis of the same. In this study Financial and Technical analysis is used to analyze the scrip, which is used to find the price movement trend, identify the inherent strengths and weaknesses of the scrips and find out the overbought and oversold region in the scrips. The Research Design adopted in conducting the research study is Descriptive and Analytical Research and the nature of the data used is Secondary Data. The study covers the period duration from April 2010 to March 2011. Data analysis tools are Moving Averages, Relative Strength Index and Rate of Change. Graphs and charts were used accordingly to support the analysis. The major objective of the study is  To identify the inherent technical strengths and weaknesses of the selected scrip.  To find out the overbought and oversold positions in the selected scrip.  To interpret the signals of market price to predict the direction of future price of selected scrip in the market.

The goal of the project is to identify, understand and analyze the impact of various factors that affect the Indian Equity Market (BANKING SECTOR). A STUDY ON PERSONALITY CHARACTERISTICS OF MUTUAL FUND INVESTORS ABSTRACT There are a lot of investment avenues available today in the financial market for an investor with an investable surplus. He can invest in Bank Deposits, Corporate Debentures, and Bonds where there is low risk but low return. He may invest in Stock of companies where the risk is high and the returns are also proportionately high. The recent trends in the Stock Market have shown that an average retail investor always lost with periodic bearish tends. People began opting for portfolio managers with expertise in stock markets who would invest on their behalf. Thus there were wealth management services provided by many institutions. However they proved too costly for a small investor. These investors have found a good shelter with the mutual funds.

Mutual fund industry has seen a lot of changes in past few years with multinational companies coming into the country, bringing in their professional expertise in managing funds worldwide. In the past few months there has been a consolidation phase going on in the mutual fund industry in India. Now investors have a wide range of Schemes to choose from depending on their individual profiles.

This study gives an overview of the personality characteristics of mutual fund investors and also their profile, investment behavior such as avenues invested, frequency of the investment, satisfaction, risk appetite, source of influence and factors considered.

A STUDY ON BASEL II NORMS IN INDIAN BANKS

ABSTRACT

Globalisation and financial innovation have over the last two decades or more multiplied and diversified the risks carried by the banking system. In response, the regulation of banking in the developed industrial countries has increasingly focused on ensuring financial stability, at the expense of regulation geared to realising growth and equity objectives. The appropriateness of this move is being debated even in the developed countries, which in any case are at a completely different level of development of their economies and of the extent of financial deepening and intermediation as compared to the developing world. Despite this and the fact that in principle the adoption of the core principles for effective banking supervision issued by the Basel Committee on Banking Supervision is voluntary, India like many other emerging market countries adopted the Basel I guidelines and has now decided to implement Basel II. Basel II is the second of the Basel Accords, which are recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision. The purpose of Basel II is to create an international standard that banking regulators can use when creating regulations about how much capital banks need to put aside to guard against the types of financial and operational risks banks face. Advocates of Basel II believe that such an international standard can help protect the international financial system from the types of problems that might arise should a major bank or a series of banks collapse. In theory, Basel II attempted to accomplish this by setting up risk and capital management requirements designed to ensure that a bank holds capital reserves appropriate to the risk the bank exposes itself to through its lending and investment practices. Generally speaking, these rules mean that the greater risk to which the bank is exposed, the greater the amount of capital the bank needs to hold to safeguard its solvency and overall economic stability.

This study will analyse the structure of Basel II norms, Capital to Risk Weighted Assets Ratio (CRAR), Capital Structure, Types of Risks involved in Banking and various norms in CRAR.

A STUDY ON MUTUAL BENEFITS OF ALTERNATE CHANNELS OF BANKING

ABSTRACT

India banking industry is age old with the establishment of the general bank of India in the year 1786. Further after independence the need of the central bank was felt which helped in the establishment of reserve bank of India. The banks that were formed by the east India company was amalgamated to imperial bank of India and further nationalized to form the biggest bank of India “state bank of India” in the year 1955.State bank of India is one of the traditional bank which is also the biggest in terms of both business and customers. With the LPG policy of the government adopted in the year 1990, the economy was wide open for the world not only to just invest but also to transact on India.This transaction was difficult in case of the Indian banks as the technological advancement in the Indian banking unit was given less importance. These FDI units brought in the international banks with their latest technology which was a great bang on the Indian banking industry. The change in the Indian banking scenario was felt important with the report of the narashiman committee and also introduction of the ICICI bank with its latest technology gave a new enthusiasm for the Indian banking industry to move beyond their traditional structure. This fever of technology has affected the giant bank of India “state bank of India”. The first step taken towards this new goal was the introduction of Core Banking Solution. All branches that was spread across the length and breadth of the country was transformed with this CBS which reflected the parivarthan of banking industry.

The technology in banking industry ,especially of state bank of India has grown since then along with their business , customer and contribution towards social responsibility. Now the State bank of India has more than 12,000 branches across the country and 32 foreign offices equipped with latest technology to serve all category of customers. Being rightly sub titled as “Banker to every Indian”. The adoption of technology by the staff of SBI was made with the help of the parivarthan program conducted to every single staff of the organization. There are many alternate channels that was being introduced by the organization was 1. 2. 3. Automated teller machine Internet banking services Mobile banking services/ SMS banking services.

This alternate channel of banking has been widely put forth by the organization which would help the customers to do their banking in better ways. These alternate channels of banking must reach the customers in the wide spread so that the expected result on the part of the management is achieved. The alternate channels of banking are not put forth by the staff that would encourage the customers to use these alternate banking channels. To bring out the necessity of the alternate channels and the importance of its use to the banking staff this study on the benefits of alternate channels of banking would be of greater use.