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A PROJECT STUDY REPORT ON FUNDEMENTAL ANALYSIS OF

BANING SECTOR

IN
MOTHILAL OSWAL SECURITIES LTD
Submitted In
partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION
OF
MAHATHMA GANDHI UNIVERSITY
Submitted by
SARANYA K S
(Reg No: 52180)
Under the Guidance of
Mrs. ANN JOSE
(Assistant professor)

DEPARTMENT OF MANAGEMENT STUDIES
MANGALAM COLLEGE OF ENGINEERING
ETTUMANOOR, KOTTAYAM
2013-2015

CHAPTER 1
INTRODUCTION

INTRODUCTION
Analysis is the examination and evaluation of the relevant information to select the best
course of action from among various alternatives. The methods used to analyze securities
and make investment decisions fall into two very broad categories: fundamental analysis
and technical analysis. Fundamental analysis involves analyzing the characteristics of a
company in order to estimate its value. Technical analysis takes a completely different
approach; it doesn't care one bit about the "value" of a company or a commodity.
Technicians (sometimes called chartists) are only interested in the price movement in the
market.
Technical analysis is a method of evaluating securities by analyzing the statistics
generated by market activity, such as past prices and volume. Technical analysts do not
attempt to measure a security's intrinsic value, but instead use charts and other tools to
identify patterns that can suggest future activity.
Many analysts and investors focus on a single number--net income (or earnings)--to
evaluate performance. When investors attempt to forecast the market value of a firm,
they frequently rely on earnings. Many institutional investors, analysts and regulators
believe earnings are not as relevant as they once were. Due to nonrecurring events,
disparities in measuring risk and management's ability to disguise fundamental earnings
problems, other measures beyond net income can assist in predicting future firm
earnings.

STATEMENT OF THE PROBLEM
Fundemental analysis of banking sector with respect mothilal oswal securities ltd

SIGNIFICANCE OF THE STUDY
Fundamental Analysis involves examining the economic, financial and other qualitative
and quantitative factors related to a security in order to determine its intrinsic value. It
attempts to study everything that can affect the security's value, including
macroeconomic factors (like the overall economy and industry conditions) and
individually specific factors (like the financial condition and management of companies).
Fundamental analysis, which is also known as quantitative analysis, involves delving
into a company‘s financial statements (such as profit and loss account and balance sheet)

in order to study various financial indicators (such as revenues, earnings, liabilities,
expenses and assets). Such analysis is usually carried out by analysts, brokers and savvy
investors.

OBJECTIVES OF THE STUDY
Primary Objective
 To do Fundamental Analysis of five major companies in Banking Sector.
Secondary Objective
 To compute the intrinsic values.
 To determine the market price of the share is overpriced or under priced on the basis
of intrinsic values.
 To analyze economy by using some economic indicators like GDP, inflation rate etc
for the selected period of 5 years.
 To analyze the industry for the selected period of 5 years.

SCOPE OF THE STUDY

The scope of the study is limited to only five companies in the Banking sector viz. State Bank
of India, ICICI, Bank of Baroda, Axis Bank and YES Bank.

RESEARCH METHODOLOGY
A research design is the arrangement of conditions for collection and analyse data in a
manner that aims to combine relevance to the research purpose with economy in the
procedure. It provides the source and type of information, approach used for gathering
and analyzing data, time and cost relevant for the research study.
METHOD OF DATA COLLECTION
The data collected are mainly secondary data; collected from secondary sources such as
the internet, websites of selected companies, company balance sheets, annual reports,
press release, etc

PERIOD OF STUDY
The study was conducted for a period of 2 month from 1 May 2015 to 30 June 2015

CHAPTER SCHEME
 1st Chapter Contains Introduction, Statement of Problem, Significant of The Study,
Objective of The Study, Scope of The Study, Hypothesis, and Methodology, Period of
The Study, Chapter Scheme, Assumption and Limitation of The Study.
 II nd Chapter deals With Review of Literature, Industrial Profile (World Scenario,
Indian Scenario and State Scenario), Company Profile, Theoretical Background,
Recent Studies in the Topic, Review of Research Methodology
 III rd Chapter Contains Research Methodology, Research Design, Study Approach
,Technique of Data Collection , Sampling Techniques ,Statistical Tools of Data
Analysis
 IVth Chapter Includes Data Analysis and Interpretation ,Objective Wise Data
Analysis ,Hypothesis Testing
 Vth Chapter Contains Summery , Observations , Suggestions ,Recommendations,
Scope For Further Study ,Conclusion , Bibliography

LIMITATIONS OF THE STUDY
 The intrinsic value of the company is determined by the profit, which the
company earns over a period of time and it is directly related to both internal and
external factors, which are out of one‘s control.
 Two months study is not enough for fundamental analysis.

CHAPTER 2
REVIEW OF LITERATURE

INDUSTRY PROFILE .

This multi-trillion dollar services industry comprises companies varying a great deal in size and their offerings as well. venerable institutions have been brought to their knees by dysfunctional credit markets and the punishing stock market. preventing a simple categorization of this industry. which primarily deal with management of money and create conditions for investors and corporations to flourish in the market. The industry comprises complex networks of organizations. insurance companies.S. The financial services industry has witnessed its greatest challenges since the Great Depression. The growth of other sectors is closely dependent on this industry as it is a prime source of liquidity and thereby ensures the overall prosperity and economic stability. as well as Japan. which encompasses a broad range of organizations that manage money. stock brokerages.S. including credit unions. have pumped liquidity into the system and taken on direct capital investments in these financial behemoths.FINANCIAL SERVICES The term "financial services" became more prevalent in the United States partly as a result of the Gramm-Leach-Bliley Act of the late 1990s. banks. and European governments. . accountancy companies. credit card companies. due to the burstingof the housing bubble and the resulting credit crunch. which enabled different types of companies operating in the U. in an effort to stabilize credit markets and prevent a global economic meltdown. consumer finance companies. investment funds and some government sponsored enterprises. Financial services are the economic services provided by the finance industry. financial services industry at that time to merge. Within a period of weeks. The U. The industry grouping is widely branched out to include companies providing varied services.

there are three major types of financial institutions:  Depositary Institutions : Deposit-taking institutions that accept and manage deposits and make loans. building societies. underwriters. Through the process of financial intermediation. and  Investment Institutions: Investment Banks. financial intermediaries channel funds from people who have extra money or surplus savings (savers) to those who do not have enough money to carry out a desired activity (borrowers). As such. The classic example of a financial intermediary is a bank that consolidates deposits and uses the funds to transform them into loans. FINANCIAL INTERMEDIARY A financial intermediary is a financial institution that connects surplus and deficit agents. Probably the greatest important financial service provided by financial institutions is acting as financial intermediaries. credit unions. certain assets or liabilities are transformed into different assets or liabilities.FINANCIAL INSTITUTIONS In financial economics. including banks. and mortgage loan companies  Contractual Institutions : Insurance companies and pension funds. brokerage firms. . Most financial institutions are regulated by the government. trust companies. Broadly speaking. a financial institution is an institution that provides financial services for its clients or members.

and commodities include precious metals or agricultural goods. savers (lenders) give funds to an intermediary institution (such as a bank). This may be in the form of loans or mortgages. commodities. firms. which is known as financial disintermediation FINANCIAL MARKETS A financial market is a market in which people and entities can trade financial securities. and other fungible items of value at low transaction costs and at prices that reflect supply and demand. including households. and government agencies.A financial intermediary is typically an institution that facilitates the channeling of funds between lenders and borrowers indirectly. That is. Financial market is basically segmented into two parts:a) Money market b) Capital market . and that institution gives those funds to spenders (borrowers). An economy which relies primarily on interactions between buyers and sellers to allocate resources is known as a market economy in contras t either to a command economy or to a non-market economy such as a gift economy. Alternatively. thus making it easier for them to find each other. in one "place". Securities include stocks and bonds. There are both general markets (where many commodities are traded) and specialized markets (where only one commodity is traded). Markets work by placing many interested buyers and sellers. they may lend the money directly via the financial markets.

CAPITAL MARKET The Capital market is a market for financial investments that are direct or indirect claims to capital.MONEY MARKET The Money market refers to the market where borrowers and lenders exchange short-term funds to solve their liquidity needs. Primary Market :Primary market is the new issue market of shares. maturities under one year and high marketability. whether or not evidenced by the creation of a negotiable financial instrument. This market encompasses the trading and issuance of short term non equity debt instruments including treasury bills. government and individuals. a. etc. Types of issues in Primary market . It is wider than the Securities Market and embraces all forms of lending and borrowing. commercial papers. Money market is a market for debt securities that pay off in the short term usually less than one year. The Capital Market comprises the complex of institutions and mechanisms through which intermediate term funds and long-term funds are pooled and made available to business. The Capital Market also encompasses the process by which securities already outstanding are transferred. bankers acceptance. preference shares and debentures of non-government public limited companies and issue of public sector bonds. for example the market for 90-days treasury bills. Money market instruments are generally financial claims that have low default risk. certificates of deposits.

At present the association is functioning as corporatized body integrated under the stipulations of the Companies Act. BSE became the first exchange in India to be certified by the administration. that is." Incorporated in the 1875. mixture of a rights and public offer. or offer for sale (offer of securities by existing shareholders to the public for subscription). BSE stands for Bombay Stock Exchange and was initially known as "The Native Share & Stock Brokers Association.Over the year. Secondary Market:This refers to old or already issued securities.• Initial public offer (IPO) (in case of an unlisted company). • Follow-on public offer (FPO). the exchange company has played an essential part in the expansion of Indian investment market. 1956. 1956. • Preferential issue/ bonus issue/ QIB placement • Composite issue. It is composed of industrial security market or stock exchange market and gilt-edged market. b. Bombay Stock Exchange (BSE) of India The oldest stock market in Asia. It attained a permanent authorization from the Indian government in 1956 under Securities Contracts (Regulation) Act. • Rights offer such that securities are offered to existing shareholders. . MAJOR STOCK EXCHANGES IN INDIA 1.

IISL have a consulting and licensing agreement with Standard & Poor's (S&P). NIFTY:The Nifty is relatively a new comer in the Indian market. who are world leaders in index services. 1956 and in June 1994 it started its business functioning in the Wholesale Debt Market (WDM). well-established and financially sound companies. SENSEX is considered to be the pulse of the Indian stock markets. IISL is a specialized company focused upon the index as a core product. which is a joint venture between NSE and CRISIL. SENSEX is widely used to describe the mood in the Indian Stock markets. the exchange was certified under Securities Contracts (Regulation) Act. . S&P CNX Nifty is a 50 stock index accounting for 23 sectors of the economy. In 1993. 2 National Stock Exchange (NSE) of India Integrated in November 1992.SENSEX:The sensitive index has long been known as the barometer of the daily temperature of Indian bourses. The Equities division of NSE began its operations in 1994 while in 2000 the corporation incorporated its Derivatives division. In 1978-79 stock market contained only private sector companies and they were mostly geared to commodity production. SENSEX is a "Market Capitalization-Weighted" index of 30 stocks representing a sample of large. (IISL). the National Stock Exchange of India (NSE) was initially a tariff forfeiting association. S&P CNX Nifty is owned and managed by India Index Services and Products Ltd.

India‘s first listed exchange. trade reporting. is a state-of-the-art. and clearing and settlement of commodity futures transactions. MCX is India‘s leading commodity futures exchange with a market share of about 86 per cent in terms of the value of commodity futures contracts traded in 9M FY2013-14. thereby providing a platform for risk management. agri-based and agricultural commodities. spanning over 1900 cities and towns across India. real-time risk management. energy. market surveillance and market data dissemination . immediate trade execution. with over 2100 members. The Exchange has an extensive national reach. and formulating quality parameters and trade regulations. MCX‘s ability to use and apply technology efficiently is a key factor in the development of its business. in conformity with the regulatory framework.000 trading terminals (including CTCL). operations through more than 400. commodity futures exchange that facilitates online trading. The Exchange focuses on providing commodity value chain participants with neutral. The exchange‘s technology framework is designed to provide high availability for all critical components. ferrous and non-ferrous metals. along with its with rapid customization and deployment capabilities enables it to operate efficiently with fast order routing. MCX offers trading in varied commodity futures contracts across segments including bullion.3. secure and transparent trade mechanisms.Multi Commodity Exchange of India Limited (MCX) The Multi Commodity Exchange of India Limited (MCX). which guarantees continuous availability of trading facilities. The robust technology infrastructure of the exchange.

Maharashtra. which is undergoing rapid expansion. transparent and resilient system. is based in Mumbai. as well as the first screen-based nationwide stock exchange in India. non-banking financial companies. the Industrial Finance Corporation of India. and is a recognized stock exchange under the SCR INDIAN FINANCIAL SECTOR The far-reaching changes in the Indian economy since liberalization have had a deep impact on the Indian financial services sector. It is India's first exchange for small companies. insurance companies. and other institutions.the Industrial Credit and Investment Corporation of India. also known as the Over-the-Counter Exchange of India. OTC Exchange of India (OTCEI) The OTC Exchange of India (OTCEI). 1956 as a stock exchange.4. India has a diversified financial sector. The sector comprises commercial banks. The OTC Exchange of India was founded in 1990 under the Companies Act 1956 and was recognized by the Securities Contracts Regulation Act. OTCEI was set up to accesshigh-technology enterprising promoters in raising finance for new product development in a cost-effective manner and to provide a transparent and efficient trading system to investors. This has ensured that the new emerging face of the Indian financial sector will culminate in a strong. co- . Financial sector reforms that were initiated by the government since the early ‗90s have been to meet the challenges of a complex financial architecture. the Industrial Development Bank of India. OTCEI is promoted by the Unit Trust of India.

the financial services sector has been an important contributor. The Indian stock market scene really picked up after the opening up of the economy in the early nineties. accounting for about 57 per cent of the gross domestic product (GDP). in one way or another. Challenges remain. The advent of technology has also aided the growth of the industry. . as per a report by Boston Consulting Group (BCG) and Google India. pension funds. The ‗badla‘ system was stopped to control unnecessary volatility while the derivatives segment started as late as 2000. INDIAN CAPITAL MARKET VS GLOBAL CAPITAL MARKET The Indian stock exchanges hold a place of prominence not only in Asia but also at the global stage. The financial sector in India is predominantly a banking sector with commercial banks accounting for more than 60 per cent of the total assets held by the financial system. The Government of India has introduced reforms to liberalize. The Bombay Stock Exchange (BSE) is one of the oldest exchanges across the world. regulate and enhance this industry. purchase or renewal stages. India is undoubtedly one of the world's most vibrant capital markets.operatives. but the future of the sector looks good. At present. India's services sector has always served the country‘s economy well. In this regard. The whole of nineties were used to experiment and fine tune an efficient and effective system. About 75 per cent of the insurance policies sold by 2020 would. mutual funds and other smaller financial entities. while the National Stock Exchange (NSE) is among the best in terms of sophistication and advancement of technology. be influenced by digital channels during the pre-purchase.

The slowdown in the US economy and interest rate tightening made the equation more complex. The study pertains to comparative analysis of the Indian Stock Market with respect to various international counterparts. Also. and soaring oil prices. National Stock Exchange.The corporate governance rules were gradually put in place which initiated the process of bringing the listed companies at a uniform level.000 companies listed on the stock exchanges of the country. Exchanges regularly solicit companies outside their home territory and encourage them to list on theirexchange and global competition has put pressure on corporations to seek capital outside their home country. However after 2000 riding on a robust growth and a maturing economy and relaxed regulations. Exchanges are now crossing national boundaries to extend their service areas and this has led to cross-border integration. The Bombay Stock Exchange. This not only increased the appeal of the exchange for investors but also attracts more volume. outside investors.institutional and others got more scope to operate. This opening up of the system led to increased integration with heightened cross-border flow of capital. with India emerging as an investment ‗hot spot‘ resulting in our stock exchanges being impacted by global cues like never before. On the global scale. the economic environment started taking paradigm shift with the ‗dot com bubble burst‘. 9/11. exchanges have begun to offer cross-border trading to facilitate overseas investment options for investors. is the oldest in Asia. established in 1875. The Indian stock market is the world third largest stock market on the basis of investor base and has a collective pool of about 20 million investors. a more recent establishment which came into . There are over 9.

CORPORATE ACTIONS Any event that brings material change to a company and affects its stakeholders can be termed as corporate actions. ii. is the largest and most advanced stock market in India is also the third biggest stock exchange in Asia in terms of transactions. Splits (sub-division) / Reverse splits (consolidation) A pro-rata distribution of shares (split) or a pro-rata consolidation (reverse split) of shares held by existing shareholders is a corporate action. There will be no change in company‘s market capitalisation.existence in 1992. Scrip issues (Capitalisation or Bonus Issue) A scrip issue (also called a capitalisation or a bonus issue) is the issue of new shares to existing shareholders at no charge. Shares and share prices are adjusted according to terms. i. pro rata to existing holdings. Special Dividends are generally treated as capital repayments iv. Capital Repayments These are categorized as a return of capital to shareholders. Some of the important corporate actions are given below. Rights Issues / Entitlement Offers These are an entitlement or right to buy additional shares directly from the company in proportion to their existing holdings . iii. It is among the 5 biggest stock exchanges in the world in terms of transactions volume.

is insolvent or is liquidated. vii. then the existing constituent is deleted on the effective date of the acquisition. or where evidence of a change in circumstances makes it ineligible for index inclusion. All dividends are applied on the ex dividend date.v. A series of net of tax Total Return Indices are also calculated based on the maximum withholding tax rates applicable to dividends received by institutional investors who are not resident in the same country as the remitting company and who do not benefit from double taxation treaties. viii. then the resulting companies may be eligible to continue asconstituents in the same FTSE Indices as their predecessor company (refer to Index Series ground rules for specific conditions). Dividends Declared dividends are used to calculate the FTSE Standard Total Return Indices. files for bankruptcy protection. vi. becomes bankrupt. stock. or by a non-quoted company in its own or another country. Spin-offs If a constituent company is split and forms two or more companies by issuing new equity toexisting shareholders. Deletions A stock will be deleted as a constituent if it is delisted from its stock exchange. Takeovers & Mergers If an existing constituent is acquired for cash. .

As at December 31st. .COMPANY PROFILE Motilal Oswal Securities (MOSL) was founded in 1987 as a small sub-broking unit. had a network spread over 555 cities and towns comprising 1. It was incorporated in year 1995. institutional equities. It offers wealth management services under the name Purple. Motilal Oswal Commodities Broker (MOCBL) and Motilal Oswal Venture Capital Advisors (MOVC). Company have a diversified client base that includes retail customers (including High Net worth Individuals). Ramdeo Agrawal as a sub broking firm. We are headquartered in Mumbai and as of December 31st.156 registered customers Motilal Oswal Financial Services (MOFSL) was founded in 1987 by Mr. Motilal Oswal offers a wide range of financial services such as wealth management. Commodity Broking. Broking & Distribution . we had 7. Private Equity . commodity broking. Portfolio Management Services . 2012.38. 2011.563 Business Locations operated by our Business Partners and us. foreign institutional investors. Focus on customer-first-attitude. In just three years Motilal Oswal became members of on The Bombay Stock Exchange (BSE). broking and distribution. respect for professionalism. with just two people running the show. private equity and investment banking services. Today we are a well diversified financial services firm offering a range of financial products and services such as Wealth Management . research-based value investing and implementation of cutting-edge technology has enabled us to blossom into an almost 1600 member team. Motilal Oswal Investment Advisors (MOIA). Motilal Oswal and Mr. MOFSL has subsidiaries enveloping the different functions in the names of Motilal Oswal Securities (MOSL). Institutional Equities. ethical and transparent business practices. portfolio management services. mutual funds . financial institutions and corporate clients. Investment Banking Services and Principal Strategies.

 India PR & Corporate Communication Awards 2012 (03/22/2012) Motilal Oswal Financial Services was awarded the Best Use of Public Relations in the Financial Services Sector Award at the India PR & Corporate Communication Awards 2012 held in New Delhi on March 22. .  CNBC TV18 Financial Advisor Awards .2012 (03/13/2012) Motilal Oswal Securities Ltd. 2012.Motilal Oswal Financial Services is a known brand among retail and institutional investors in India. 2012.  Awards for Retail Excellence 2012 (02/14/2012) Motilal Oswal Financial Services won the RETAILER OF THE YEAR (Banking & Financial Services) award at the Awards for Retail Excellence 2012 organised by Asia Retail Congress on Feb 14. AWARDS  Motilal Oswal Securities bagged the Best Performing Equity Broker (National) Award at CNBC TV18 Financial Advisor Awards 2013 held in Mumbai. (13/09/2013)  Motilal Oswal Securities Ltd. 2012. with a presence in over 1533 business locations across over 487 cities. was adjudged as the 'Best Performing National Financial Advisor Equity Broker' at the CNBC TV18 Financial Advisor Awards – 2012. was awarded amongst the top 20 innovators in BFSI space for ―Leveraging on Technology in enhancing customer experience‖ (8/11/2012)  Best Equity Broker Award at Bloomberg UTV (04/09/2012) Motilal Oswal Securities bagged the Best Equity Broker Award at Bloomberg UTV Financial Leadership Award 2012 held in Mumbai on April 7.

was adjudged as the 'Best Performing Equity Broker (National)' at the CNBC TV18 Financial Advisor Awards – 2010 . Motilal Oswal Financial Services bagged awards in two categories: Award for Excellence in HR through Technology & Award for Managing Health at Work. This puts MOSL amongst the Top 3 Award winning Brokers at the ET NOW Starmine Analyst Awards 2010-2011  CRISIL Mutual Fund Award 2011 (05/13/2011) Motilal Oswal Mutual Fund‘s MOSt Shares M50 bagged the ‗Most Innovative Fund of the Year‘ Award at CNBC TV18-CRISIL Mutual Fund Award 2011 held in Mumbai  CNBC TV18 Financial Advisor Awards 2010 (12/09/2010) Motilal Oswal Securities Ltd. BSE IPF-D&B Equity Broking Awards 2011 (10/11/2011) Motilal Oswal Securities was awarded ‗Best Equity Broking House‘ at ‗BSE IPF-D&B Equity Broking Awards 2011‘ on October 10. held in Mumbai  At the 2nd ASIA‘s BEST EMPLOYER BRAND AWARDS (07/23/2011) At the second ASIA‘s BEST EMPLOYER BRAND AWARDS held in Singapore on 22nd July.  Best Capital Markets & Related NBFC Award (09/13/2011) Motilal Oswal Financial Services Ltd. 2011. 2011. 2011. presented by MCX.  ET Now Starmine Analyst Awards 2010-2011 (05/13/2011) Motilal Oswal Securities won 4 awards at the ET Now Starmine Analyst Awards 2010-2011. was honoured with Best Capital Markets & Related NBFC Award at the CNBC TV18 India Best Banks and Financial Institutions Awards.

2010 in the Services Category on September 24. Motilal Oswal Securities wins QIMPRO best project award (10/04/2010) Motilal Oswal Securities Limited bagged the QualTech Prize for Improvement .  Asia-Pacific Cross Border Deal of the Year in 2010 (09/24/2010) Motilal Oswal Investment Banking wins the ―Asia-Pacific Cross Border Deal of the Year‖ at the ASIA-PACIFIC M&A ATLAS AWARDS in 2010  ET NOW Starmine Award 2009 (07/27/2010) Motilal Oswal Securities bagged the No.CNBC TV 18 IT User Award . 2010. spread over 26.2008 (11/28/2008) MOSL awarded the prestigous Nasscom .CNBC TV 18 IT User Award – 2008  Awarded 'The Best Franchisor in Financial Services' (11/26/2008) MOSL awarded 'The Best Franchisor in Financial Services' by Franchisee World Magazine 2008 for the second consecutive year  MOSL appears in Limca Book of Records 03/16/2008 MOSL creates one of India's largest Equity Dealing & Advisory rooms.000 sq ft in Malad. Mumbai .1 – Best recommendations Mid & Small Caps' and won awards in 3 out of 4 categories at the Starmine India Broker Rankings 2009 from Thomson Reuters  MOSL awarded the prestigous Nasscom .1 Broker Award in the ET Now – StarMine Analyst Awards 2009  'Rated No.1 – Best recommendations Mid & Small Caps' and won awards in 3 out of 4 categories (02/01/2009) MOSL was 'Rated No.

2007 (11/26/2007) MOSL awarded 'The Best Franchisor in Financial Services' by Franchisee World Magazine 2007  'Outstanding Commoditiy Broking House .Exclusive. an innovative franchising model.2007' Award (09/01/2007) Motilal Oswal Commodities Broker Pvt Ltd (MOCBPL) bagged Globoil India's prestigious 'Outstanding Commoditiy Broking House . This new franchising model emphasizes on customer profiling. Board of directors 1 Motilal Oswal Chairman 2 Motilal Oswal Managing Director 3 Navin Agarwal Director 4 Motilal Oswal Chief Financial Officer . customer education and superior customer experience. featured as a case study in Harvard Business School  Avaya Global ranked MOSL as the second best company (01/30/2007) Avaya Global ranked MOSL as the second best company in the Financial Sector for customer responsiveness OUTLOOK Motilal Oswal has launched Motilal Oswal .2007' Award  MOFSL featured as a case study in Harvard Business School (03/14/2007) Motilal Oswal Financial Services Ltd. Motilal Oswal was percieved as the most Research driven stock trading player (12/09/2007) Motilal Oswal was percieved as the most Research driven stock trading player Starcom Mediavest Survey  Best Franchisor Award .

18 times in turbulent market conditions. Motilal Oswal Commodities Broker Pvt Ltd.77%. . 2008 was Rs.Shareholding Pattern at on 30th June. which is engaged in commodities broking. which is engaged in lease rental. The issue gave a return of 21% on the date of listing. the total shareholding of the Promoter and Promoter Group stood at 69. which is engaged in stock broking.825 per share (face value Rs. wealth management and distribution of financial products. Wealth Management. the group networth was Rs. Institutional Equities. Motilal Oswal Investment Advisors Pvt Ltd. which is engaged in investment banking. Motilal Oswal Private Equity Advisors Pvt Ltd. The issue which was priced at Rs. 2007. As of June 30th. FINANCIALS In 2006. and Antop Trader Pvt Ltd.48% of its equity with two leading private equity investors based out of the US – New Vernon Private Equity Limited and Bessemer Venture Partners. The company got listed on BSE and NSE on September 9.19 bnCredit rating agency Crisil has assigned the highest rating of P1+ to the Company‘s short-term debt program. which is engaged in stock broking.5 per share) got a overwhelming response and was subscribed 27. 2011.07% and non-institutions at 18. the Company placed 9. Private Equity and Asset Management.7 bn and market capitalization as of March 31. Investment Banking. Motilal Oswal Capital Markets Pvt Ltd. such as Broking and Distribution. The Company‘s subsidiaries include Motilal Oswal Securities Ltd (MOSL).16%. As of end of financial year 2008. The shareholding of institutions stood at 12. which is engage in private equity management and advisory.5 Motilal Oswal Chief Executive Officer 6 Raamdeo Agrawal Joint Managing Director 7 Balkumar Agarwal Independent Director 8 Ramesh Agarwal Independent Director 9 Madhav Bhatkuly Independent Director OVERVIEW Motilal Oswal Financial Services Limited (MOFSL) is a diversified financial services company offering a range of financial products and services. 2011.

our clients can transfer the shares sold by them online without delivery instruction slips. The dedicated IT systems ensure service up time and speed. Using the 'easiest' facility provided by NDSL. Through the present derivative trading an investor can take a short-term view on the market for up to a three months‟ perspective by .  Internet Trading: Mothilal oswaloffers Internet trading through this site.SERVICES OFFERED:  Online trading: Mothilal Oswal has a large network of branches with online terminals of NSE andBSE in the Capital market and Derivative segments. offer depository services with minimum Annual Maintenance Charges and transaction charges. digitally signed contract notes can be sent to clients through Email. Account holders can view their holding position through the Internet. We also offer the ―easiest” facility provided by NDSL (electronic access to securities information and execution of secured transaction) through which clients are given delivery instructions via internet.  Depository services: Mothilal oswal is a member of the National Securities Depository Limited (NSDL). The clients are assured of prompt order execution through dedicated phones and expert dealers at our offices. Additionally. You can trade through the internet from the comforts of your office or home.  Derivative trading: Mothilal offers trading in the futures and options segment of the National Stock Exchange (NSE). anywhere in the world. making Internet broking through mothilal hassle-free.

Mergers and Acquisitions are also taken care of by us.  Currency Trading: Currency derivatives can be described as contracts between the sellers and buyers. bonus. Any individual or corporate . Bonds etc: We also offer Mutual Funds and Bonds. Other technicalities pertaining to shares like dividends.  Portfolio Management Services: Mothilal oswal is a SEBI-approved portfolio manager offering discretionary and nondiscretionary schemes to its clients. crude oil. if the trade goes in the opposite direction the maximum loss will be limited to the premium paid. Hedge Equities‟ portfolio management team keeps track of the markets on a daily basis and is exposed to a lot of information and analytic tools which an investor would not normally have access to. rights.whose values are to be derived from the underlying assets. In the case of options.  Commodity Trading: You can trade in commodity futures like gold. You can select from a wide range of Mutual Funds and Bonds available in the markets today. the currency amounts. These are basically risk management tools in force and money markets used for hedging risks and act as 29 insurance against unforeseen and unpredictable currency and interest rate movements. and take advantage of the extended trading hours (10 am to 11 pm) in commodities trading. Maximize your returns by opting for our PMS scheme. silver.paying a small margin on the futures segment and a small premium in the options segment.  Mutual Funds. rubber etc. buy-back.

OPERATION DEPARTMENTOperation department is considered as a vital department.expecting to receive or pay certain amounts in foreign currencies at future date can use these products to opt for a fixed rate .at which the currencies can be exchanged now itself. TECHNOLOGY DEPARTMENT . PMS. offer standardized products and provide transparent trading platform. adaptability and in action within the firm by the efficient and effective grouping of job into meaningful work units to coordinate numerous jobs for the expeditors accomplishment of the organizational objectives. eliminate counterparty credit risk. research and depository. There are mainly five departments in Mothilal I. Currency Futures will bring in more transparency and efficiency in price discovery. Competitors DEPARTMENT PROFILE Departmentalization creates flexibility. II. An upfront premium is payable for buying a derivative. Operation department is headed by the chief operations officer and its business is stock broking commodity futures. provide access to all types of market participants.

insurance. payroll. HUMAN RESOURCE DEPARTMENT Human resource department is headed by the chief of the human resources and their functions are training and development of employee. Fundamental analysis is the analysis of critical factors that affect the value of a stock. DISTRIBUTION DEPARTMENT Distribution department is headed by the chief distribution officer and its main business areas are sales of mutual funds. bonds. Such evaluation or analysis is called fundamental analysis. provident fund. IPO's and fixed deposits etc. risk and investment and NBFC operations. the technological assistance will be given by the technological department. FINANCE DEPARTMENT Finance department is headed by chief financial officer and under this department they have various departments like finance and accounts. complaints. industries and the economy as a whole before taking the investment decision. THEORATICAL BACKGROND OF THE STUDY An investor who would like to be rational and scientific in his investment activity has to evaluate a lot of information about the past performance and the expected future performance of companies. ESI etc. V. company secretariats and corporate communication etc. The purpose of fundamental analysis is to evaluate the present and future earning capacity of a share based on the economy. administration. IV. This is called its intrinsic value or fundamental value. industry and company fundamentals and thereby assess the intrinsic value of the share. If market price < intrinsic value – buy If market price > intrinsic value – sell . They are legal. III. There are certain small departments. Each share is assumed to have an economic worth based on its present and future earning capacity. The intrinsic value of an equity share depends on a multitude of factors.Technology department is headed by the chief technology officer. recruitment.

ECONOMIC ANALYSIS Economic analysis is a study of the general economic factors that go into an evaluation of a security‘s value.1. The commonly analysed macroeconomic factors are as follows:  Gross Domestic Product (GDP)  Savings and investment  Inflation  Interest rates  Budget and fiscal deficit  Tax structure  Balance of payment  Foreign direct investment  Investment by Foreign Institutional Investors (FIIs)  International economic conditions  Monsoon and agriculture  Infrastructural facilities 3. moves to industry and narrows down to the company. and Company) analysis.2. Fundamental analysis is a combination of economy. industry and company analysis to obtain a stock‘s current fair value and predict its future. Industry.1 Table showing Macroeconomic factors analysed in economy analysis . The stock market is an integral part of the economy. An analysis of the macroeconomic environment is essential to understand the behaviour of stock prices. This kind of fundamental analysis is also known as ―top-down approach‖ because the analysis starts from an analysis of the economy. This is also called EIC (Economy.Fundamental analyst believes that market price a reflection of its intrinsic value.

Savings & investment High Low 3. Porter model. i. 3. Infrastructural facilities Good Not good INDUSTRY ANALYSIS An investor ultimately invests his money in the securities of one or more specific companies. Tax structure Low High 6.  INDUSTRY LIFE CYCLE ANALYSIS Many industrial economists believe that the development of almost all every industry may be analyzed in terms of lifecycle with four well defined stages. Foreign exchange position High Low 9. Study of the structure and characteristics of an industry. For this reason an analyst has to undertake an industry analysis so as to study the fundamental factors affecting the performance of different industries. Balance of payment Positive Negative 8. Agriculture & monsoon High Low 11. 2. Concerned with the basis of industry analysis. Deficit financing/ fiscal deficit Low High 10. Each company can be characterized as belonging to an industry. Industry life cycle analysis. Interest rate Low High 5. this section is divided into three parts. Industrial growth rate High Low 7. Inflation Low High 4.Favourable Unfavourable Impact Impact High growth rate Slow growth rate 1. 1. Profit potential of industries. GDP/Growth rate 2. Pioneering stage .

iii. iv. Maturity and stabilization stage During this stage. the technology and or the product is relatively new and rapid growth in demand for the output of industry. and changes in consumer preferences. ii. Pricing policies of the firm. i. ii. its growth rate is comparable to that of the economy as a whole. a) Structure of the industry and nature of competition. iii. b) Nature and prospects of demand . encroachment of new products. Rapid growth stage Firms which survive the intense competition of the pioneering stage. Entry barriers.  STUDY OF THE STRUCTURE AND CHARECTERISTS OF AN INDUSTRY Industry analysis should focus on the following. As a result there is a great opportunity for profit. if any iv. the industry eventually enters the decline stage relative to the economy as a whole.During this stage. The number of firms in the industry and the market share of the top few firms in the industry. Licencing policy of the government. Decline stage With the satiation of demand. witness significant expansion in their sales and profits. when the industry is more or less fully developed. Large number of companies attempt to capture their share of the market.

2. Key determinants of demand iii. Bargaining power of sellers 3. Threat to new entrants ii. i. Degree of cyclicality in demand c) Cost. Rivalry among the existing firms iii. d) Productivity of labour Technology and research i. Important technological changes on the horizon and their implications iii. Efficiency and profitability i.i. Degree of technological stability ii. Major customers and their requirements ii. Information regarding companies can be broadly classified into two broad groups: internal and external. Proportions of the key cost elements. raw materials.3 COMPANY ANALYSIS It is the final stage of fundamental analysis. Pressure from substitute products iv. It deals with the estimation of return and risk of individual shares. . Research and development outlays as a percentage of industry sales  PROFIT POTENTIAL OF INDUSTRIES Michael porter has argued that the profit potential of an industry depends on the combined strength of the following five basic competitive forces. This calls for information. Bargaining power of buyers v. labour. namely. utilities and fuel ii.

the analyst tries to forecast the future earnings of the company because there is strong evidence those earnings have a direct and powerful effect upon share prices.Internal information consists of data and events made public by companies concerning their operations In company analysis. . however. The level. depend upon a number of factors concerning the operations of the company. trend and stability of earnings of a company.

CHPTER 3 RESEARCH METHEDOLOGY .

These ratios are then used to assess the financial health of a company.  DESCRIPTIVE RESEARCH Descriptive research is those studies concerned with describing the characteristics of the state of affairs as it‘s exist at present. RESEARCH DESIGN Research Design is the conceptual structure within which the research isconducted. The main purposes descriptive research study is to specify the objectives with sufficient precision to ensure that data collected are relevant. It can be understood as a science of studying how research is done scientifically therefore the research methodology not only talks about the research methods but also considers the logic behind the method used in the context of the research study. and to compare directly to the ratios for different . The research design is prepared keeping in view the objectives of the study the resources available.RESEARCH METHODOLOGY Research methodology is a way to solve the research problem systematically. STUDY APPROACH A significant contribution of the fundamental models is that they provide for the calculation of a number of financial ratios. A researc h is the arrangement of conditions for the collection and analysis of data in a manner that aims ANALYTICAL AND DESCRIPTIVE RESEARCH DESIGN  ANALYTICAL DESIGN The researcher has to use facts or information already availability and analyse these to make a critical evaluation of the materials. The data collected are examined collected the information.

Two Approaches of fundamental analysis While carrying out fundamental analysis. inflation and interest rates. websites of selected companies. Fundamental analysis is carried out with the aim of predicting the future performance of a company. 2. such as GDP growth rates. Bottom-up approach: In this approach. an analyst starts the search with specific businesses.' Thus. investors should sell it. price levels and foreign competition in a sector in order to identify the best business in the sector. TOOLS USED FOR ANALYSIS PAY OUT RATIO Payout ratio is calculated to find the extent to which earnings per share have been retained in the business. the intrinsic value of a security being higher than the security‘s market value represents a time to buy. collected from secondary sources such as the internet. company balance sheets. press release. There is a long established tradition of attempting to use these fundamental ratios as predictors of a company‘s future share price. Top-down approach: In this approach. It is an important ratio because ploughing back of profits enables a company to grow and pay more dividends in future. The search for the best security then trickles down to the analysis of total sales. which found that stocks with a high book-to-market value yielded higher long-term returns. irrespective of their industry/region. annual reports.companies. It is based on the theory that the market price of a security tends to move towards its 'real value' or 'intrinsic value. energy prices. TECHNIQUE OF DATA COLLECTION The data collected are mainly secondary data. investors can use either of the following approaches: 1. If the value of the security is lower than its market price. an analyst investigates both international and national economic indicators. etc. .

which is the relationship between profits of a company and its equity capital. which can be made available to pay dividend to them.Payout ratio = Dividend per share / Earnings per share. This ratio is help to find the long term growth rate of the share. Return on equity = Profit after tax / Net wort PRICE EARNING RATIO Price earning ratio is the ratio between market price per equity share and earn-ings per share. RETURN ON EQUITY Return on equity capital. The 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 share in a particular company. Price earning ratio = Market price / EPS LONG TERM GROWTH RATE Long-term growth rate is the relationship between average retention ratio and average return on equity. Long term growth rate = Average retention ratio * Average ROE SAMBLING TECHNIQUES . This ratio is more meaningful to the equity shareholders who are interested to know profits earned by the company and those profits.

This is a restricted and non. where the sample consisting of five banks has been selected on basis of the financial position of the company. The one selected depends on the requirements of the project and its objectives. The sampling technique selected for conducting this study is judgment sampling.probabilistic method of sampling. .A variety of sampling techniques is available. The various methods of sampling have been classified basing on the representation – probability or non probability and on element selection-restricted.

CHAPTER 5 DATA ANALYSIS AND INTERPRETATION .

they have been joined since 1990s by new private commercial banks and a number of foreign banks. The first banks were Bank of Hindustan (1770-1829) and The General Bank of India. and the oldest still in existence. established 1786 and since defunct. Later during the Maurya dynasty (321 to 185 BC). an instrument called adesha was in use. which. During the Buddhist period. the other two being the Bank of Bombay and the Bank of Madras. History In ancient India there is evidence of loans from the Vedic period (beginning 1750 BC). upon India's independence. Banking in India was generally fairly mature in terms of supply. . is the State Bank of India. product range and reach-even though reach in rural India and to the poor still remains a challenge. This was one of the three presidency banks. all three of which were established under charters from the British East India Company. there was considerable use of these instruments. as well as the PSUs and the state banks. until the Reserve Bank of India was established in 1935. became the State Bank of India in 1955. The largest bank.INDUSTRY ANALYSIS Banking in India in the modern sense originated in the last decades of the 18th century. The Indian banking sector is made up of four types of banks. They are run under a structure know as 'profit-making public sector undertaking' (PSU) and are allowed to compete and operate as commercial banks. which corresponds to the definition of a bill of exchange as we understand it today. which originated in the Bank of Calcutta in June 1806. Merchants in large towns gave letters of credit to one another. The three banks merged in 1921 to form the Imperial Bank of India. which was an order on a banker desiring him to pay the money of the note to a third person. as did their successors. For many years the presidency banks acted as quasi-central banks. In 1969 the Indian government nationalised all the major banks that it did not already own and these have remained under government ownership. which almost immediately became the Bank of Bengal. The government has developed initiatives to address this through the State bank of India expanding its branch network and through the National Bank for Agriculture and Rural Development with things like microfinance.

then partnership. Calcutta was the most active trading port in India. when it failed. The exchange banks. and which survived until 1913. Around five decades had elapsed since the Indian Mutiny. who by mutual consent created Union Bank to replace these two banks. Indian joint stock banks were generally undercapitalized and lacked the experience and maturity to compete with the presidency . first as a private joint stock association. particularly in Calcutta. All these banks operated in different segments of the economy. followed. which has survived to the present and is now one of the largest banks in India. established in Lahore in 1895. established in 1865 and still functioning today. and closed the one at Mirzapore that it had opened in the previous year. industrial and other infrastructure had improved. The presidency banks dominated banking in India but there were also some exchange banks and a number of Indian joint stock banks. That honour belongs to the Bank of Upper India. with some of its assets and liabilities being transferred to the Alliance Bank of Simla. The Allahabad Bank. branches in Madras and Pondicherry. which was established in 1863. in the 1860s. and so became a banking centre. The next was the Punjab National Bank. Foreign banks too started to appear. mainly due to the trade of the British Empire. The first entirely Indian joint stock bank was the Oudh Commercial Bank. Around the turn of the 20th Century. The Comptoir d'Escompte de Paris opened a branch in Calcutta in 1860. and another in Bombay in 1862. most of which served particular ethnic and religious communities. Also in 1840 the Bank revealed that it had been the subject of a fraud by the bank's accountant.Colonial era During the period of British rule merchants established the Union Bank of Calcutta in 1829. and the social. Its proprietors were the owners of the earlier Commercial Bank and the Calcutta Bank. concentrated on financing foreign trade. established in 1881 in Faizabad. then a French possession. the Indian economy was passing through a relative period of stability. it was not the first though. Union Bank was incorporated in 1845 but failed in 1848. is the oldest Joint Stock bank in India. It failed in 1958. In 1840 it established an agency at Singapore. mostly owned by Europeans. having been insolvent for some time and having used new money from depositors to pay its dividends. HSBC established itself in Bengal in 1869. Indians had established small banks.

During the First World War (1914–1918) through the end of the Second World War (1939–1945). Four nationalised banks started in this district and also a leading private sector bank. "In respect of banking it seems we are behind the times. The years of the First World War were turbulent. and it took its toll with banks simply collapsing despite the Indian economy gaining indirect boost due to war-related economic activities. Corporation Bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking".and exchange banks. At least 94 banks in India failed between 1913 and 1918 as indicated in the following table: . Canara Bank and Central Bank of India. The fervour of Swadeshi movement lead to establishing of many private banks in Dakshina Kannada and Udupi district which were unified earlier and known by the name South Canara ( South Kanara ) district." The period between 1906 and 1911. We are like some old fashioned sailing ship. divided by solid wooden bulkheads into separate and cumbersome compartments. This segmentation let Lord Curzon to observe. The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community. saw the establishment of banks inspired by the Swadeshi movement. and two years thereafter until the independence of India were challenging for Indian banking. Bank of Baroda. Indian Bank. A number of banks established then have survived to the present such as Bank of India.

was established in April 1935.  The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI. Nationalization in the 1960s . 2005b). India's independence marked the end of a regime of the Laissez-faire for the Indian banking. the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate. India's central banking authority. control. Lakhs) 1913 12 274 35 1914 42 710 109 1915 11 56 5 1916 13 231 4 1917 9 76 25 1918 7 209 1 Years Post-Independence The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal. but was nationalised on 1 January 1949 under the terms of the Reserve Bank of India (Transfer to Public Ownership) Act. and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy. This resulted into greater involvement of the state in different segments of the economy including banking and finance.  In 1949. Lakhs) (Rs. 1948 (RBI. The major steps to regulate banking included:  The Reserve Bank of India. and inspect the banks in India". paralysing banking activities for months.Table showing Number of banks failed between 1913 and 1918 Number of banks Authorised capital Paid-up Capital that failed (Rs. and no two banks could have common directors. The Government of India initiated measures to play an active role in the economic life of the nation.

These banks contained 85 percent of bank deposits in the country. banks in India except the State Bank of India or SBI. Later on. It was the only merger between nationalised banks and resulted in the reduction of the number of nationalised banks from 20 to 19. a national leader of India. continued to be owned and operated by private persons. it had emerged as a large employer. At the same time. expressed the intention of the Government of India in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization. Jayaprakash Narayan. the government merged New Bank of India with Punjab National Bank. By the 1960s. her move was swift and sudden. Indira Gandhi. and a debate had ensued about the nationalization of the banking industry. the Government of India controlled around 91% of the banking business of India. closer to the average growth rate of the Indian economy. With the second dose of nationalisation. 1969')) and nationalised the 14 largest commercial banks with effect from the midnight of 19 July 1969. After this." Within two weeks of the issue of the ordinance. and it received the presidential approval on 9 August 1969. the Indian banking industry had become an important tool to facilitate the development of the Indian economy. the nationalised banks grew at a pace of around 4%. in the year 1993. the then Prime Minister of India. control and regulations of the Reserve Bank of India. Thereafter. Liberalization in the 1990s . The stated reason for the nationalisation was to give the government more control of credit delivery. A second dose of nationalisation of 6 more commercial banks followed in 1980. the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill.Despite the provisions." The meeting received the paper with enthusiasm. described the step as a "masterstroke of political sagacity. The Government of India issued an ordinance ('Banking Companies (Acquisition and Transfer of Undertakings) Ordinance. until the 1990s.

The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks. product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. private banks and foreign banks. These came to be known as New Generation tech-savvy banks. People not just demanded more from their banks but also received more. Current period By 2013. Go home at 4) of functioning. Indian banks are considered to have clean. revitalised the banking sector in India. mortgages and investment services are expected to be strong. with minimal pressure from the government. strong and transparent balance sheets relative to other banks in comparable economies in its region.In the early 1990s. and asset sales.at present it has gone up to 74% with some restrictions. 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. government banks. All this led to the retail boom in India. the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. along with the rapid growth in the economy of India. In terms of quality of assets and capital adequacy. banking in India was generally fairly mature in terms of supply. and included Global Trust Bank (the first of such new generation banks to be set up). This move. licensing a small number of private banks. takeovers. where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%. till this time. UTI Bank (since renamed Axis Bank). In March 2006. which has seen rapid growth with strong contribution from all the three sectors of banks. One may also expect M&As. Bankers. The Reserve Bank of India is an autonomous body. were used to the 4–6–4 method (Borrow at 4%. the then government embarked on a policy of liberalization. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced . namely. Lend at 6%. which later amalgamated with Oriental Bank of Commerce. The next stage for the Indian banking has been set up with the proposed relaxation in the norms for Foreign Direct Investment. The new policy shook the Banking sector in India completely. ICICI Bank and HDFC Bank.

Delhi. This provided for the use of standardized cheque forms and encoders. Mumbai. Adoption of banking technology The IT revolution has had a great impact on the Indian banking system. Indian banks were finding it difficult to compete with the international banks in terms of customer service. Patna and Thiruvananthapuram. C Rangarajan.norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them. These have included:  In 1984 was formed the Committee on Mechanisation in the Banking Industry (1984) whose chairman was Dr. Guwahati. Jaipur. the RBI set up the Committee on Computerisation in Banks (1988) headed by Dr. It also suggested modalities for implementing online banking. Reserve Bank of India. It emphasized that settlement operation must be computerized in the clearing houses of RBI in Bhubaneshwar. It further stated that there should be National Clearing of intercity cheques at Kolkata. There are press reports that the banks' loan recovery efforts have driven defaulting borrowers to suicide. C Rangarajan. vehicle and personal loans. The use of computers has led to the introduction of online banking in India. Chennai and MICR should be made Operational. In recent years critics have charged that the non-government owned banks are too aggressive in their loan recovery efforts in connexion with housing. The committee submitted its reports in 1989 and computerisation began from 1993 with the settlement between IBA and bank employees' associations. The major recommendations of this committee were introducing MICR technology in all the banks in the metropolises in India.  In 1988. It also focused on computerisation of branches and increasing connectivity among branches through computers. without the use of information technology. The use of computers in the banking sector in 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. Deputy Governor. . The RBI set up a number of committees to define and co-ordinate banking technology.

which is followed by off-site ATMs belonging to SBI and its subsidiaries and then by Nationalised banks and Foreign banks. In 1994. Total numbers of ATMs installed in India by various banks as on end June 2012 is 99.  In 1995. Cheque Clearing and Securities Settlement in the Banking Industry (1994) was set up under Chairman W S Saraf. It emphasized Electronic Funds Transfer (EFT) system. the Committee for proposing Legislation on Electronic Funds Transfer and other Electronic Payments (1995) again emphasized EFT system.218. The New Private Sector Banks in India are having the largest numbers of ATMs. the Committee on Technology Issues relating to Payment systems. with the BANKNET communications network as its carrier. While on site is highest for the Nationalised banks of India. SWOT Analysis STRENGTHS  Valuable contributor to GDP  Regulatory environment  Government Support WEAKNESSES  Increasing NPA  Low penetration  Lack of product differentiation OPPORTUNITIES  Modern Technology  Untapped Rural Market . It also said that MICR clearing should be set up in all branches of all those banks with more than 100 branches.

 Globalization THREATS  Unorganized money lending market  Customer dissatisfaction  Rise of monopolistic structures .

Revenue ₹210736 crore (US$33 billion) (2013)[2][3] Profit ₹17916 crore (US$2. investment banking. State Bank of India 2 June 1956. Maharashtra.8 billion) (2013)[2][3] Total assets ₹2374839 crore (US$380 billion) (2013)[2][3] . India Area served Worldwide Key people Arundhati Bhattacharya (Chairperson) Products consumer banking. asset management.COMPANY ANALYSIS STATE BANK OF INDIA Type Public Traded as NSE: SBIN BSE: 500112 LSE: SBID BSE SENSEX Constituent CNX Nifty Constituent Industry Banking.Securities. Imperial Bank of India 1 July 1955.[1] nationalization Headquarters Mumbai. private banking. finance and insurance. mortgage loans. savings. wealth management. corporate banking. Financial Services Founded 27 January 1921. Credit cards. private equity.

Total equity

₹203417.50 crore (US$32 billion)
(2015)[2][3]

Owner

Government of India

Number of

222,033 (2014)

employees

Slogan

The Banker to Every Indian

Website

www.sbi.co.in

State Bank of India (SBI) is a multinational banking and financial services company
based in India. It is a government-owned corporation with its headquarters in Mumbai,
Maharashtra. As of December 2013, it had assets of US$388 billion and 16,000
branches, including 190 foreign offices, making it the largest banking and financial
services company in India by assets.
State Bank of India is one of the Big Four banks of India, along with ICICI Bank, Punjab
National Bank and Bank of Baroda.
The bank traces its ancestry to British India, through the Imperial Bank of India, to the
founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the
Indian Subcontinent. Bank of Madras merged into the other two presidency banks—
Bank of Calcutta and Bank of Bombay—to form the Imperial Bank of India, which in
turn became the State Bank of India. Government of India nationalised the Imperial Bank
of India in 1955, with Reserve Bank of India taking a 60% stake, and renamed it the
State Bank of India. In 2008, the government took over the stake held by the Reserve
Bank of India.
SBI is a regional banking behemoth and has 20% market share in deposits and loans
among Indian commercial banks.
History
The roots of the State Bank of India lie in the first decade of 19th century, when the
Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806.

The Bank of Bengal was one of three Presidency banks, the other two being the Bank of
Bombay (incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1
July 1843). All three Presidency banks were incorporated as joint stock companies and
were the result of the royal charters. These three banks received the exclusive right to
issue paper currency till 1861 when with the Paper Currency Act, the right was taken
over by the Government of India. The Presidency banks amalgamated on 27 January
1921, and the reorganised banking entity took as its name Imperial Bank of India. The
Imperial Bank of India remained a joint stock company but without Government
participation.
Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of
India, which is India's central bank, acquired a controlling interest in the Imperial Bank
of India. On 1 July 1955, the Imperial Bank of India became the State Bank of India. The
government of India recently acquired the Reserve Bank of India's stake in SBI so as to
remove any conflict of interest because the RBI is the country's banking regulatory
authority.
In 1959, the government passed the State Bank of India (Subsidiary Banks) Act, which
made eight state banks associates of SBI. A process of consolidation began on 13
September 2008, when the State Bank of Saurashtra merged with SBI.
SBI has acquired local banks in rescues. The first was the Bank of Behar (est. 1911),
which SBI acquired in 1969, together with its 28 branches. The next year SBI acquired
National Bank of Lahore (est. 1942), which had 24 branches. Five years later, in 1975,
SBI acquired Krishnaram Baldeo Bank, which had been established in 1916 in Gwalior
State, under the patronage of Maharaja Madho Rao Scindia. The bank had been the
Dukan Pichadi, a small moneylender, owned by the Maharaja. The new banks first
manager was Jall N. Broacha, a Parsi. In 1985, SBI acquired the Bank of Cochin in
Kerala, which had 120 branches. SBI was the acquirer as its affiliate, the State Bank of
Travancore, already had an extensive network in Kerala.
The State Bank of India and all its associate banks are identified by the same blue
keyhole logo. The State Bank of India wordmark usually has one standard typeface, but
also utilises other typefaces.

On October 7, 2013, Arundhati Bhattacharya became the first woman to be appointed
Chairperson of the bank.
Operations
SBI provides a range of banking products through its network of branches in India and
overseas, including products aimed at non-resident Indians (NRIs). SBI has has 14
regional hubs and 57 Zonal Offices that are located at important cities throughout India.
Domestic presence
SBI had 14,816 branches in India, as on 31 March 2013, of which 9,851 (66%) were in
Rural and Semi-urban areas. In the financial year 2012-13, its revenue was INR 200,560
Crores (US$ 36.9 billion), out of which domestic operations contributed to 95.35% of
revenue. Similarly, domestic operations contributed to 88.37% of total profits for the
same financial year
International presence
As of 28 June 2013, the bank had 180 overseas offices spread over 34 countries. It has
branches of the parent in Moscow, Colombo, Dhaka, Frankfurt, Hong Kong, Tehran,
Johannesburg, London, Los Angeles, Male in the Maldives, Muscat, Dubai, New York,
Osaka, Sydney, and Tokyo. It has offshore banking units in the Bahamas, Bahrain, and
Singapore, and representative offices in Bhutan and Cape Town. It also has an ADB in
Boston, USA.
The Canadian subsidiary, State Bank of India (Canada) also dates to 1982. It has seven
branches, four in the Toronto area and three in the Vancouver area.
SBI operates several foreign subsidiaries or affiliates. In 1990, it established an offshore
bank: State Bank of India (Mauritius). SBI (Mauritius) has 15 branches in major
cities/towns of the country including Rodrigues.
In 1982, the bank established a subsidiary, State Bank of India (California), which now
has ten branches – nine branches in the state of California and one in Washington, D.C.
The 10th branch was opened in Fremont, California on 28 March 2011. The other eight
branches in California are located in Los Angeles, Artesia, San Jose, Canoga Park,
Fresno, San Diego, Tustin and Bakersfield.

reducing the number of associate state banks from seven to . The first step towards unification occurred on 13 August 2008 when State Bank of Saurashtra merged with SBI. Associate banks SBI has five associate banks. it owns 76% of PT Bank Indo Monex. with Canara Bank owning the rest. which is a blue circle. In Moscow. which has branches throughout the country. SBI owns 55% of Nepal SBI Bank. It now has five branches in Nigeria. In Kenya. The State Bank of India already has a branch in Shanghai and plans to open one in Tianjin. followed by the regional headquarters' name: • State Bank of Bikaner & Jaipur • State Bank of Hyderabad • State Bank of Mysore • State Bank of Patiala • State Bank of Travancore Earlier SBI had seven associate banks. State Bank of India owns 76% of Giro Commercial Bank. This bank began in 1981 as the Indo-Nigerian Merchant Bank and received permission in 2002 to commence retail banking. SBI owns 60% of Commercial Bank of India. In Indonesia.In Nigeria. There has been a proposal to merge all the associate banks into SBI to create a "mega bank" and streamline the group's operations. In Nepal. and all use the "State Bank of" name. which it acquired for US$8 million in October 2005. all use the State Bank of India logo. SBI operates as INMB Bank. In tune with the first Five Year Plan. the government integrated these banks into State Bank of India system to expand its rural outreach. all of which had belonged to princely states until the government nationalised them between October 1959 and May 1960. which prioritised the development of rural India.

In 2004. (SBICPSL) • SBI DFHI Ltd • SBI Life Insurance Company Limited • SBI General Insurance In March 2001. Ltd. Non-banking subsidiaries Apart from its five associate banks.190 million as of March 2009. and the SBI Indore branches started functioning as SBI branches on 26 August 2010. Other SBI service points SBI has 27. SBI (with 74% of the total capital).) The acquisition of State Bank of Indore added 470 branches to SBI's existing network of branches. SBI DFHI (Discount and Finance House of India) was founded with its headquarters in Mumbai.752 ATMs. joined with BNP Paribas (with 26% of the remaining capital). SBI's total assets will inch very close to the 10 trillion mark (10 billion long scale). The process of merging of State Bank of Indore was completed by April 2010. The total assets of SBI and the State Bank of Indore stood at 9. . This was the Bank's 27. Also.77%. Then on 19 June 2009 the SBI board approved the absorption of State Bank of Indore. SBI also has the following non-banking subsidiaries: • SBI Capital Markets Ltd • SBI Funds Management Pvt Ltd • SBI Factors & Commercial Services Pvt Ltd • SBI Cards & Payments Services Pvt. SBI holds 98. (Individuals who held the shares prior to its takeover by the government hold the balance of 1.3% in State Bank of Indore. SBI has become the first bank to install an ATM at Drass in the Jammu & Kashmir Kargil region.000+ ATMs and SBI group (including associate banks) has 32.032nd ATM on 27 July 2012. following the acquisition.981. to form a joint venture life insurance company named SBI Life Insurance company Ltd.six.

70% GDRs 02. NOTHING ELSE".71% Others 07. Life Insurance Corporation of India is the largest non-promoter shareholder in the company with 10.7% of its shares.59% . "A BANK OF THE COMMON MAN".79% Individual shareholders 05.ALL THE WAY". Government of India held around 62% equity shares in SBI.being the center of the bank's business. Table showing Shareholding pattern of State Bank of India Shareholders Shareholding Promoters: Government of India 62. "THE NATION BANKS ON US" Listings and shareholding As on 30 June 2013.000 individual shareholders hold approx. • Slogans: "PURE BANKING. 5. "WITH YOU .Logo and slogan • The logo of the State Bank of India is a blue circle with a small cut in the bottom that depicts perfection and the small man the common man .31% Insurance Companies 11. "THE BANKER TO EVERY INDIAN". Over 800.90% Foreign Institutional Investors 09.9% shareholding.

for expansion of the branch network and to mitigate staff shortage.45 Lacs.296 employees as on 31st March 2013.682 Assistants in FY 2012-13.833 female employees(21%) and 2. The percentage of Officers. out of which there were 46. SBI had 43. particularly at rural and semi-urban branches. In the same year.of India insurance compnies foreign institutional investors individual shareholders GDRs Others Chart showing Shareholding pattern of SBI The equity shares of SBI are listed on the Bombay Stock Exchange. Hiring drive: The bank hired 20. each employee contributed to revenues of INR 944 Lacs and net profit of INR 6.402 disabled employees(1%). where it is a constituent of the BSE SENSEX index. On the same date. Assistants and Sub-staff was 35%. from over 30 lakh applicants.550 Schedule Caste(19%) and 16. where it is a constituent of the S&P CNX Nifty. 48% and 17% respectively on the same date. Employees SBI is one of the largest employers in the country having 228.764 Schedule Tribe employees(7%). Its Global Depository Receipts (GDRs) are listed on the London Stock Exchange. Staff productivity: As per its Annual Report for FY 2012-13. . and the National Stock Exchange of India.Shareholding promoters :Govt. it recruited 847 probationary officers from around 17 lakh candidates which applied for officers‘ position.

Best Customer Initiative Award & Best Risk Management Award (Runner Up) by IBA Banking Technology Awards 2010 • SKOCH Award 2010 for Virtual corporation Category for its e-payment solution • SBI was the only bank featured in the "top 10 brands of India" list in an annual survey conducted by Brand Finance and The Economic Times in 2010. ―Best use of technology for Financial Inclusion‖. • The Bank of the year 2009. and ―Customer Management & Business Intelligence‖ in the large bank category.Recent awards and recognitions • SBI was ranked 298th in the Fortune Global 500 rankings of the world's biggest corporations for the year 2012. • SBI won "Best Public Sector Bank" award in the D&B India's study on 'India's Top Banks 2013'. India (won the second year in a row) by The Banker Magazine • Best Bank – Large and Most Socially Responsible Bank by the Business Bank Awards 2009 • Best Bank 2009 by Business India • The Most Trusted Brand 2009 by The Economic Times. • SBI was named the 29th most reputed company in the world according to Forbes 2009 rankings • Most Preferred Bank & Most preferred Home loan provider by CNBC • Visionaries of Financial Inclusion By FINO . • SBI won National Award for its performance in the implementation of Prime Minister‘s Employment Generation Programme (PMEGP) scheme for the year 2012. • State Bank of India won three IDRBT Banking Technology Excellence Awards 2013 for ―Electronic Payment Systems‖. • Best Online Banking Award.

SBI is by far the largest player in the market. Bank of Baroda. Major competitors Some of the major competitors for SBI in the banking sector are Axis Bank. Punjab National Bank.• Technology Bank of the Year by IBA Banking Technology Awards • SBI was 11th most trusted brand in India as per the Brand Trust Report 2010. . ICICI Bank. However in terms of average market share. HDFC Bank. Canara Bank and Bank of India.

In 2010. a pan India network of 900 branches and a human capital base of 12750 by 2015. . a balance sheet size of 150.Ashok Kapur was killed in a terrorist attack in 2008 in Mumbai. to further accelerate its business growth in the retail banking space. deposits of 125.in Yes Bank is a private bank in India. India Key people Rana Kapoor (Managing Director & CEO)[1] Products Banking and financial services[2] SMEs[3] Revenue ₹99.yesbank.YES BANK Type Public company Traded as BSE: 532648 NSE: YESBANK Industry Banking & financial services Founded 2004 Founder Rana Kapoor and Late Ashok Kapur Headquarters Mumbai.8 billion (US$1.6 billion (US$9.000 crore. with the objective to achieve by 2015. Mr.0 of the bank.000 crore. named Version 2.000 crore.16%. the bank announced the roll-out of a strategic blueprint.7 billion (US$190 million) (2014)[4] Total assets ₹603. It was founded by Ashok Kapur and Rana Kapoor.6 billion) (2014)[4] Website www. with the duo holding a collective financial stake of 27.6 billion) (2013)[4] Net income ₹11. advances of 100.

Branch Banking Business Banking Yes Bank is a major competitor in the business banking sector of the Indian economy. and Trade services. . Liabilities and Investment Management. Treasury Services. since corporate firms don't generally regard earning interest as a major component of their need for banking services. and Liquidity Management Solutions to its customers. and Internet Banking facilities. Indian financial Institutions IFI services are aimed at various relationship and product managers. financial advice to customers. Commercial Banking Yes Bank also competes in the South Asian commercial banking market. Trade Finance. Joint Venture Advisory Services. generally corporate or individual investors. Commercial banking is essentially the equivalent of retail banking for commercial entities.Corporate and Institutional Banking Yes Bank deals in corporate investment services. Guarantees. Payment. composed of over 500 branches across the country with 1122+ ATMs. Investment Banking Yes Bank's Investment Banking division consists of domestic and cross-border Mergers and Acquisitions. for a fee. Retail Banking Retail Banking is the general branch of banking. Liabilities and Investment. but is however generally more expensive and accounts yield less interest. targeted at private individuals. Working Capital Finance. Private Equity Placement as well as Merchant Banking Services across select industry verticals. This involves providing.and medium-sized clients. Business banking is centred primarily on Cash Handling. Direct Banking. Customers are currently being handled by a branch network. Cash Management & Transactional Services. especially amongst smaller. and centre around a variety of products including Debt.

Corporate Finance.66 .The Financial Markets (FM) business model provides Risk Management solutions related to foreign currency and interest rate exposures of clients.97 Institutions 15. Table showing Shareholding pattern of Yes Bank Shareholders Shareholding Promoters 26.62 FIIs 46. Awards YES BANK awarded with ‗The Strongest Bank Balance Sheet in India‘ by the Asian Banker Magazine.13 Individual 8.62 Government 0 Others 2. This sector of banking can often be quite dangerous and borders on legal ambiguity. Financial Marketing.YES BANK's Corporate Finance practice offers a combination of advisory services and customised products to optimise risk based on "Knowledge Arbitrage".

INSURANCE COMPANIES INDIVIDUALS BANKS.FINANCIAL INSTITUTUIONS AND UTI BODIES CORPORATE Chart showing shareholding pattern of Yes Bank .II DEUTSCHE BANK TRUST CO.Shareholding pattern MUTUAL FUND AND UTI .

Based on 2013 information.2 billion (2015)[3] income Profit US$ 1. Maharashtra. Kamath (Chairman) Ms. corporate banking. Financial services Founded 1994 Headquarters Mumbai. It offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries in the areas of .investment banking.ICICI BANK Type Traded as Public company  BSE: 532174  NSE: ICICIBANK  NYSE: IBN  BSE SENSEX Constituent  CNX Nifty Constituent Industry Banking.finance and insurance.4 billion (2015)[5] Total equity US$ 12. private banking. wealth management Revenue US$ 9.icicibank. V.Chanda Kochhar (MD & CEO) Products Credit cards.9 billion (2015)[6] Number of 67.com ICICI Bank is an Indian multinational bank and financial services company headquartered in Mumbai.8 billion (2015)[2] Operating US$ 3. India[1] Area served Worldwide Key people Mr. Consumer banking.857 (2015)[7] employees Website www. mortgage loans. K. it is the second largest bank in India by assets and third largest by market capitalisation.8 billion (2015)[4] Total assets US$ 103.

ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. Malaysia and Indonesia. ICICI Bank is one of the Big Four banks of India. ICICI Bank acquired the Bank of Madura Limited in an all-stock deal in 2001 and sold additional stakes to institutional investors during 2001-02. Operation Red Spider showing high-ranking officials and some employees of ICICI Bank involved in money laundering. through a public offering of shares in India in 1998. Bangladesh. The parent company was later merged with the bank. South Africa.investment banking. venture capital and asset management. and Canada. as a wholly owned subsidiary in 1955. and has a presence in 19 countries. ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group. The bank was initially known as the Industrial Credit and Investment Corporation of India Bank. both directly and through a number of subsidiaries and affiliates like ICICI Bank. ICICI Bank launched internet banking operations in 1998. After a government inquiry. followed by an equity offering in the form of American Depositary Receipts on the NYSE in 2000. India's public-sector banks and public-sector insurance companies to provide project financing to Indian industry. Corporate history ICICI Bank was established by the Industrial Credit and Investment Corporation of India. The parent company was formed in 1955 as a joint-venture of the World Bank. and representative offices in United Arab Emirates. life and non-life insurance. The Bank has a network of 3. an Indian financial institution. Punjab National Bank and Bank of Baroda. The company's UK subsidiary has established branches in Belgium and Germany. along with State Bank of India. before it changed its name to the abbreviated ICICI Bank. ICICI's shareholding in ICICI Bank was reduced to 46 percent. In March 2013. In the 1990s. The bank has subsidiaries in the United Kingdom. branches in United States. Thailand. ICICI Bank suspended 18 employees and faced penalties from the Reserve Bank of India in relation to the activity. Qatar and Dubai International Finance Centre. .514 branches and 11. In 1999. Singapore. China. Sri Lanka. Hong Kong. offering a wide variety of products and services. Bahrain. Russia.063 ATM's in India.

In 2000. ICICI Ltd along with UTI set up CRISIL as India's first professional credit rating agency. the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly owned retail finance subsidiaries. ICICI Bank became the first Indian bank to list on the New York Stock Exchange with its five million American depository shares issue generating a demand book 13 times the offer size.) in 1992 on behalf of the Government of India with the objective of establishing a nationwide trading facility for equities. The Reserve Bank of India issued a clarification on the financial strength of ICICI Bank to dispel the rumours. Corporate governance • Group Anti Money Laundering Policy: The ICICI Group AML Policy establishes the standards of AML compliance and is applicable to all activities. by the High Court of Gujarat at Ahmedabad in March 2002 and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Creation of market infrastructure in India ICICI Bank has contributed to set up different institutions which include the following: National Stock Exchange The National Stock Exchange was promoted by India‘s leading financial institutions (including ICICI Ltd. by ensuring equal access to investors all over the country through an appropriate communication network. with ICICI Bank. following the 2008 financial crisis. In 2008. debt instruments and hybrids. CRISIL offers a comprehensive range of integrated products and service . customers rushed to ICICI ATMs and branches in some locations due to rumours of adverse financial position of ICICI Bank. ICICI Personal Financial Services Limited and ICICI Capital Services Limited. Credit Rating Information Services of India Limited In 1987. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002. • Code of Conduct: ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees. In October 2001.

infrastructure. NSE. NEDFI is the premier financial and development institution for the North East region. FINO enables financial institutions to conceptualise. training and research. ICICI Bank together with other institutions. Entrepreneurship Development Institute of India Entrepreneurship Development Institute of India (EDII). by the erstwhile apex financial institutions like IDBI. Using cutting edge technologies like smart cards. industry analysis and detailed reports. ICICI. Indian Farmers Fertiliser Cooperative Limited (IFFCO) and Punjab National Bank. agri-horticulture plantation. by ICICI Bank Ltd. animal husbandry. was set up in 1983. aquaculture. develop and operationalise projects to support sector initiatives in microfinance and livelihoods. Goldman Sachs. set up in 2003. North Eastern Development Finance Corporation North Eastern Development Finance Corporation (NEDFI) was promoted by national level financial institutions like ICICI Ltd in 1995 at Guwahati. . CRISIL. medicinal plants. Financial Innovation Network and Operations Pvt Ltd. biometrics and a basket of support services. Canara Bank. as a company that would provide technology solutions and services to reach the underserved and underbanked population of the country. poultry and dairy in the North Eastern states of India. set up Asset Reconstruction Company India Limited (ARCIL) in 2003. National Commodities and Derivatives Exchange Limited NCDEX is a professionally managed online multi-commodity exchange. sericulture. Asset Reconstruction Company India Limited Following the enactment of the Securitisation Act in 2002. capital market information. LIC.offerings which include credit ratings. IFCI and SBI with the support of the Government of Gujarat as a national resource organisation committed to entrepreneurship development. Assam for the development of industries. an autonomous body and notfor-profit society. ICICI Bank has facilitated setting up of "FINO Cross Link to Case Link Study" in 2006. NABARD. education.

state financial corporations. CIBIL provides a repository of information (which contains the credit history of commercial and consumer borrowers) to its members in the form of credit information reports. through ICICI Prudential Life Insurance Company. financial institutions. Uttar Pradesh and West Bengal. It provides recommendations on resolutions placed before shareholders of over 300 companies. • Read to Lead Phase II: In Phase II of the Read to Lead programme. ARCIL was established to acquire Non Performing Assets (NPAs) from financial institutions and banks with a view to enhance the management of these assets and help in the maximisation of recovery. The members of CIBIL include banks. Haryana. This would relieve institutions and banks from the burden of pursuing NPAs. Bihar. Gujarat. housing finance companies and credit card companies. Corporate Social Responsibility programmes for Elementary Education • Read to Lead Phase I: Read to Lead is an initiative of ICICI Bank to facilitate access to elementary education for underprivileged children in the age group of 3–14 years including girls and tribal children from the remote rural areas. Tamil Nadu. Read to Lead has reached out to 100. research and commentary. Orissa. Credit Information Bureau of India Limited ICICI Bank has also helped in setting up Credit Information Bureau of India Limited (CIBIL). Tripura. IiAS is a voting advisory firm aka proxy advisory firm.200 children in the rural areas of .to create a facilitative environment for the resolution of distressed debt in India. Rajasthan. ICICI Bank has supported the establishment of 63 libraries that will reach out to approximately 7. Jharkhand. Maharashtra.000 children across 14 states of Andhra Pradesh. has invested in IiAS. Institutional Investor Advisory Services India Limited (IiAS) ICICI Bank. Delhi. strengthen schools and enable children to enter and complete formal elementary education. dedicated to providing participants in the Indian market with data. and allow them to focus on core banking activities. Karnataka. non-banking financial companies. India‘s first national credit bureau in 2000. The Read to Lead initiative supports partner NGOs to design and implement programmes that mobilise parent and community involvement in education.

 Better returns: Customers can earn recurring deposit interest rates on their iWish account while enjoying the freedom of not having to deposit every month. iWish is a fun and flexible way to encourage savings among youth for fulfilling aspirations. Reward points are offered automatically to customers for activating Internet banking. Products MySavings Rewards ICICI Bank has rolled-out the programme ‗MySavings Rewards‘ from 1 September 2012. Unlike a traditional recurring deposit.the flexible recurring deposit iWish is a flexible recurring deposit product launched by ICICI Bank for its savings account customers. There will be no penalties if a customer misses his monthly contribution to the recurring deposit. where reward points are offered to individual domestic customers for a variety of transactions done through the savings bank account. shopping online/ paying utility bills with Internet banking and auto-debit from savings account towards equated monthly installments for home/ auto/ personal loan/ recurring deposit. They can also share their wishes on Facebook and let their friends and family be a part of their dreams by contributing to their account from any bank account. Customers can create several goals and track their progress on an easy-to-use online interface. The key features of iWish are:  Flexibility: Flexible recurring deposit allows a customer to deposit any amount at any point of time. iWish allows customers to save varying amounts of money at any time of their choice. Customers also have an option of depositing money by giving a standing instruction. .Jagdalpur block of Bastar district in Chhattisgarh. Customers can redeem their reward points by • Logging into his ICICI Bank internet banking account • Calling up customer care • Walking into the nearest ICICI Bank branch iWish. The programme includes building libraries.000 or more. Customers are required to maintain a monthly average balance of 15. The minimum duration is six months and a customer can open this account starting with 500. sourcing books and conducting various interactive activities to make the library a dynamic centre for learning.

Omni and Versa. The models identified for the purpose are. Sharing: Customers can choose to share their wishes on Facebook and let their friends and family be part of their dreams. Objective ICICI Bank‘s Green initiative is to make healthy environment in the organisation i. Auto loans offer 50% waiver on processing fee on car models which uses alternate mode of energy. This reduces the carbon footprint of the customers by ensuring they do not have to resort to physical statements or travel to their branches. to create intrapersonal skills amongs the customer and understanding between employees of the organisation.our nation and our society.. ICICI Bank has developed this product in collaboration with Social Money. Vehicle Finance As an initiative towards more environment friendly way of life. processes and customers to cost effective automated channels to build awareness and consciousness of our environment. Tata Indica CNG and Mahindra Logan CNG versions. Contributions can be made from any bank account using a VISA debit card. Hyundai's Santro Eco. (b) to encourage the participation of internal and external capital in the private concerns. Go Green Initiative The Go Green Initiative is an organisation wide initiative that moves beyond moving people. expansion and modernisation of private concerns. . Broad objectives of the ICICI are: (a) to assist in the creation. (c) to encourage private ownership of industrial investment.e. Civic Hybrid of Honda. IVR Banking. Maruti's LPG version of Maruti 800. i-Mobile banking. Green products and services Instabanking It is the platform that brings together all alternate channels under one umbrella and gives customers the option of banking through Internet banking. Reva electric cars.  Contributions: iWish gives an opportunity to the family and friends of a customer to contribute and help him attain his aspirations faster.

Carbon Footprint Calculator Inputs include region. electricity consumed per month and LPG cylinder/piped natural gas used per month. A diversified financial institution with headquarters in Mumbai • 1997: ITC Classic Finance. . It calculates the net carbon footprint to create awareness and sensitize people about the environment. At the time of being acquired. • ICICI International Limited Acquisitions • 1996: SCICI Ltd. Incorporated in 1986. and leasing operations.It also shows the world's and India's average carbon footprint. ITC Classic had eight offices. • ICICI Securites Inc. Subsidiaries Domestic • ICICI Prudential Life Insurance Company Limited • ICICI Lombard General Insurance Company Limited • ICICI Prudential Asset Management Company Limited • ICICI Prudential Trust Limited • ICICI Securities Limited • ICICI Securities Primary Dealership Limited • ICICI Venture Funds Management Company Limited • ICICI Home Finance Company Limited • ICICI Investment Management Company Limited • ICICI Trusteeship Services Limited • ICICI Prudential Pension Funds Management Company Limited International • ICICI Bank UK PLC • ICICI Bank Canada • ICICI Bank Eurasia Limited Liability Company • ICICI Securities Holdings Inc. user input of the distance traveled in a particular medium of transport daily. ITC Classic was a non-bank financial firm that engaged in hire purchase. 26 outlets. and 700 brokers.

Its headquarter were in Sangli in Maharashtra. Anagram had built up a network of some 50 branches in Gujarat. It also had some 250. Awards 2004 • Best Bank in India Award presented by Euromoney Magazine 2007 • ICICI Bank has been conferred the Euromoney Award 2007 for the Best Bank in the Asia-Pacific Regio • ICICI Bank wins the Excellence in Remittance Business award by The Asian Banker 2009 • ICICI Bank bags the "Best bank in SME financing (Private Sector)" at the Dun & Bradstreet Banking awards 2011 • ICICI Bank is the only Indian brand to figure in the BrandZ Top 100 Most Valuable Global Brands Report. second year in a row • ICICI Bank ranked 5th in the list of "57 Indian Companies". • 2010: The Bank of Rajasthan (BOR) was acquired by the ICICI Bank in 2010 for 3. and Delhi. and others in Gujarat. a Russian bank • 2007: Sangli Bank. Andhra Pradesh. and Maharashtra that were primarily engaged in retail financing of cars and trucks. It had 158 in Maharashtra and 31 in Karnataka. Rajasthan. and 288 th in World Rankings in Forbes Global 2000 list. Sangli Bank was a private sector unlisted bank. Tamil Nadu. founded in 1916.000 depositors.000 crores. Its branches were relatively evenly split between metropolitan areas and rural or semi-urban areas. and it had 198 branches.• 1998: Anagram Finance. • 2001: Bank of Madurai • 2002: The Darjeeling and Shimla branches of Grindlays Bank • 2005: Investitsionno-Kreditny Bank (IKB). RBI was critical of BOR's promoters not reducing their holdings in the company. Goa. BOR has since been merged with ICICI Bank. • ICICI Bank has won the "Banking Technology Awards 2010" at The Indian Banks Association in the following categories . and 30% owned by the Bahte family.

• ICICI Bank received the "Dataquest Technology Innovation Awards 2012" for Data centre migration by Dataquest. ICICI Bank was ranked 70th in the Brandirectory league tables of the worlds most valuable brands by. at the Financial Insights Innovation Awards held in conjunction with Asian Financial Services Congress • For the second year in a row. first set up at Hiranandani Estate. in The BW REAL 500 by Business World • ICICI Bank was one of the winners in the Global Awards for Enterprise & IT Architecture Excellence. • ICICI Bank was conferred the Best Performance Award for Self Help Group (SHG) Bank Linkage Programme in NABARD's State Level Awards announced by their .• ICICI Bank was recognised for its Special Citation of the Fully Electronic Branch Service Channel. ICICI Bank was ranked second in the "India's 50 Biggest Financial Companies". The BrandFinance® Banking 500 • ICICI Bank was ranked 1st in the Banking and Finance category and 9th in the "2010 Best Companies To Work For" by Business Today • ICICI Bank UK. by IFR Asia • ICICI Bank awarded the Best Bank (India) by Global Finance • ICICI Bank won the "Century International Quality Era Award" at Geneva • ICICI Bank was awarded the "Best Foreign Exchange Bank (India)" by Finance Asia Country Awards. • ICICI Bank awarded "House Of The Year (India)". Hong Kong • ICICI Bank is the first and the only Indian brand to be ranked as the 45th most valuable global brand by BrandZ Top 100 Global Brands Report 2012 • Airtel. ICICI Bank bagged the award in the ‗Business Intelligence and Analytics' category. HiSAVE product range has been awarded the Consumer Moneyfacts Awards 2011 for the 'Best Online Savings Provider' • For the second consecutive year. ICICI among 'top 100 global brands' • ICICI Bank won the "Best Bond House (India) 2011". Thane. by Asia Risk magazine. • The Brand Trust Report ranks ICICI among the top 4 most trusted financial institutions. for eighth time in a row since 2004 • ICICI Bank awarded the most Tech-friendly Bank award by Business World • ICICI Bank received the Best Trade Finance Bank in India by The Asset Triple A Award.

India Award by The Banker. Managing Director & CEO was ranked 5th in the International list of 50 Most Powerful Women In Business by Fortune. Chanda Kochhar. ICICI Bank ranked second in "India's 50 Biggest Financial Companies" in The BW Real 500 by Businessworld. • For the third consecutive year. • ICICI Bank tops the list of most fans in India and globally ranks fifth amongst financial institutions on Facebook in the social media engagement study conducted by Ketchum Sampark. The 50 global leaders is Fortune's annual ranking of leaders who are "the best in business". Most Trusted Brands 2012. • ICICI Bank tops the list of "Private sector and Foreign Banks" by Brand Equity. • Ms. Chanda Kochhar ranked 18th in the Fortune's list of '2012 Businesspersons of the Year'. • ICICI Bank won the Best Bank . • Ms. • ICICI Bank in the Private Sector Bank category won the Best Technology Bank Of The Year. • Mr. • ICICI Bank awarded the Best SME Bank for Treasury and Working Capital (India) by The Asset Triple A. Chanda Kochhar tops the list of "50 Most Powerful Women in Business" by Fortune India. It ranks 15th in the "Top Service 50 Brands". The Bank received the first prize for the year 2010-11 in the Private Sector Bank category and 2nd runner up for the year 2011-12 in the Commercial Bank category. .K. Ms. • ICICI Bank received the Best Trade Finance House and Best Cash Management House by The Corporate Treasurer Alliance Country Awards.Kamath was awarded the "Hall Of Fame" by Outlook Money for his long standing contribution in the financial services sector. Best Customer Relationship Initiative and Best Use Of Mobility Technology in Banking by IBA Technology Awards . The Bank also received the first runner up for Best Online Bank. • For the second consecutive year.Maharashtra Regional Office. ICICI Bank won the NPCI's NFS Operational Excellence Awards in the MNC and Private Sector Banks Category for its ATM network. • For the second year in a row. Best Financial Inclusion Initiative and Best Use Of Technology In Training and e-Learning by Indian Bank's Association (IBA) Technology Awards.V.

Polaris Financial Technology Banking Awards.03 Bodies corporate 2. USA. MD & CEO. Foreign Banks. • ICICI Bank won an award under the Social Media category at the InformationWeek EDGE Award Table showing Shareholding pattern of ICICI Bank Shareholders Shareholding Mutual fund and UTI – II 7. 16. • Ms. instituted by The Medici Institute in collaboration with the Medici Group.52 . 38.16 Insurance Co. was also featured in the Power List 2013 of 25 most powerful women in Inda by India Today.• ICICI Bank awarded the Best Private Sector Bank in Global Business Development. in the 5th KPMG Infrastructure Today Awards by ASAPP Media Information Group • ICICI Bank Limited has been conferred the Best Remittance Business award at The Asian Banker's International Excellence in Retail Financial Services 2013 Awards ceremony. • ICICI Bank was honored with the Medici Innovation Hall of Fame Award. MD & CEO.5 FII. • ICICI Bank and its IT partner Fundtech won The Asian Banker Technology Implementation Award for the Convergence Banking project from Asian Banker. • Ms. Foreign Co. for the third year in a row.NRI. Chanda Kochhar. was ranked as the most powerful business woman in India in Forbes' list of 'The World's 100 Most Powerful Women 2013'. Rural Reach and SME financing categories by Dun & Bradstreet .76 Deutsche Bank Trust Co. Chanda Kochhar. 29.71 Individuals 5. 2013 • ICICI Bank awarded the Most Admired Infrastructure Debt Financer and PPP Project of the Year: Yamuna Expressway Project.I 0. Financial Institutions and UTI .12 Banks.

FINANCIAL INSTITUTUIONS AND UTI BODIES CORPORATE Chart showing Shareholding pattern of ICICI Bank . INSURANCE COMPANIES INDIVIDUALS BANKS.Shareholding MUTUAL FUND AND UTI II DEUTSCHE BANK TRUST CO.

private banking. corporate banking. wealth management Owner Government of India Website www. Its total global business was 8. In addition to its headquarters in its home state of Gujarat. Financial services Founded 20 July 1908 Founder Maharaja Sayajirao Gaekwad[1] Headquarters Vadodara (Baroda). credit cards. consumer banking.bankofbaroda.BANK OF BARODA Type Public Traded as BSE: 532134 Industry Banking. mortgage loans. .021 billion as of 31 March 2013.investment banking. making it the second largest Bank in India after State Bank of India. and asset management. investment banking. Gujarat.finance and insurance. It offers a range of banking products and financial services to corporate and retail customers through its branches and through its specialised subsidiaries and affiliates in the areas of retail banking. private equity.com Bank of Baroda (BoB) is an Indian state-owned banking and financial services company headquartered in Baroda. it has a corporate headquarters in the Bandra Kurla Complex in Mumbai.India Area served Worldwide Key people (Chairman & MD)Shri Ranjan Dhawan Products Credit cards. or Vadodara.

and over 2000 ATMs. along with State Bank of India. by the Government of India and has been designated as a profit-making public sector undertaking (PSU).583 billion (long scale). Maharaja Sayajirao Gaekwad III. Two years later. in Gujarat. The next year it opened a second branch in Kenya. London was the center of the British Commonwealth and the most important international banking center. Bank of Baroda is one of the Big Four banks of India. Ralph Whitenack. with other stalwarts of industry such as Sampatrao Gaekwad. Vithaldas Thakersey. a network of 4283 branches (out of which 4172 branches are in India) and offices. History 1908–1959 In 1908. set up the Bank of Baroda (BoB). This merger helped it increase its branch network in Maharashtra. The next year it opened a branch in Mauritius. it is ranked 715 on Forbes Global 2000 list. ICICI Bank and Punjab National Bank. BoB also opened a branch in Fiji. until after World War II. one of the knights of the Maratha Kingdom. was nationalised on 19 July 1969. BoB established its first branch in Ahmedabad. BoB has total assets in excess of 3. Bank of Baroda In 1963. BoB merged in New Citizen Bank of India. along with 13 other major commercial banks of India. It is unclear when BoB had opened the branch. H. . That same year BoB lost its branch in Narayanjanj (East Pakistan) due to the Indo-Pakistani War of 1965. 1959 saw BoB complete its first domestic acquisition when it took over Hind Bank. H. Gujarat. The bank.Based on 2012 data. 1960s In 1961. and in 1956 it opened a branch in Dar-es-Salaam. Sir Sayajirao Gaekwad III on 20 July 1908 in the Princely State of Baroda. Then in 1953 it crossed the Indian Ocean to serve the communities of Indians in Kenya and Indians in Uganda by establishing a branch each in Mombasa and Kampala. 3. Tulsidas Kilachand and NM Chokshi. Then in 1957 BoB took a giant step abroad by establishing a branch in London. BoB opened a branch in Guyana. The bank grew domestically. In 1967 it suffered a second loss of branches when the Tanzanian government nationalised BoB‘s three branches there (Dar es Salaam. The next year BoB acquired two banks: Umbergaon People‘s Bank in southern Gujarat and Tamil Nadu Central Bank in Tamil Nadu state. BoB acquired Surat Banking Corporation in Surat.58 trillion (short scale). The bank was founded by the Maharaja of Baroda. in Nairobi. In 1965.

the Bahamas. and Moshi). Union Bank of India and Indian Bank established IUB International Finance. in 1988. Australia. including BoB. but closed its representative office in Sydney. in Hong Kong. The Brussels branch was aimed at Indian firms from Mumbai (Bombay) engaged in diamond cutting and jewellery having business in Antwerp. in 1975. BoB opened an OBU in Mauritius. BoB opened a branch in Nassau. Two years later. 1928) and Nainital Bank (est. 1980s In 1980. Back in India. Nainital Bank has expanded to Uttarakhand state. a licensed deposit taker. with the government owning the rest. International expansion continued in 1976 with the opening of a branch in Oman and another in Brussels. BoB would buy out its partners.Mwanga. which had a network of 34 branches in Delhi. P&S‘s branch had been established before 1970 and Union Bank‘s after 1980. in 1954). Then in 1979. 40%) established Indo-Zambia Bank in Lusaka. BoB acquired the majority shareholding and management control of Bareilly Corporation Bank (est. In 1969 the Indian government nationalised 14 top banks. Two years later. That same year BoB also opened an Offshore Banking Unit (OBU) in Bahrain. 1972s In 1972. BoB (20%). BoB incorporated its operations in Uganda as a 51% subsidiary. 1990s In 1990. Bank of India (20%). Central Bank of India (20%) and ZIMCO (Zambian government. A second consortium or joint-ventrue bank followed in 1985. The Reserve Bank of India ordered the takeover of the two following the banks' involvement in the Sethia fraud in 1987 and subsequent losses. Each of the three banks took an equal share. The next year BoB took over the London branches of Union Bank of India and Punjab & Sind Bank (P&S). BoB opened a branch in New York and another in the Seychelles. . BoB acquired Traders Bank. BoB opened a branch each in Dubai and Abu Dhabi. Since then. a major center for diamond cutting. BoB. and transferred their operations to the Tanzanian governmentowned National Banking Corporation. Eventually (in 1998). both in Uttar Pradesh. BoB opened a branch in Bahrain and a representative office in Sydney. BoB acquired Bank of India‘s operations in Uganda. Back in India.

• 2005: BoB built a Global Data Centre (DC) in Mumbai for running its centralised banking solution (CBS) and other applications in more than 1. BoB closed its OBU in Bahrain. with seven branches. owning 66% of the bank's equity. a restricted license bank. 1934). The now wholly owned subsidiary became Bank of Baroda (Hong Kong). • 2002: BoB acquired Benares State Bank (BSB) at the Reserve Bank of India‘s request. and Guangdong. BoB merged in Bareilly Corporation Bank in another rescue. it also had taken over Lucknow Bank in 1968. BoB incorporate wholly owned subsidiary BOB Capital Markets Ltd. At the time. BoB also acquired Punjab Cooperative Bank in a rescue. In 1999. for broking business. BSB was established in 1946 but traced its origins back to 1871 and its function as the treasury office of the Benares state. • 2006: BoB established an Offshrore Banking Unit (OBU) in Singapore. BoB added a branch in Mauritius and closed its Harrow Branch in London. 2000s • 2000: BoB established Bank of Baroda (Botswana). • 2002: Bank of Baroda (Uganda) was listed on the Uganda Securities Exchange (USE).900 branches across India and 20 other counties where the bank operates. • 2003: BoB opened an OBU in Mumbai. In 1997. The next year BoB bought out its partners in IUB International Finance in Hong Kong. China. BoB Bank entered the capital market in December with an Initial Public Offering (IPO).Then in 1992 BoB incorporated its operations in Kenya into a local subsidiary with a small tranche of shares quoted on the Nairobi Stock Exchange. . BoB opened a branch in Durban. Apparently this was a response to regulatory changes following Hong Kong‘s reversion to the People‘s Republic of China. BoB also opened a representative office each in Kuala Lumpur. In 1996. Bank of Baroda Guyana. including four in Delhi. Bareilly had 64 branches. The Government of India is still the largest shareholder. BSB had acquired Bareilly Bank (est. Malaysia. The next year. BoB also opened a representative office in Thailand. In Guyana. BoB incorporated its branch as a subsidiary. and returned to Tanzania by establishing a subsidiary in Dar-es-Salaam. In 1964. • 2004: BoB acquired the failed Gujarat Local Area Bank. The acquisition of BSB brought BoB 105 new branches.

especially that of Gujaratis. loan syndication. which has a large population of Indians. Indian Overseas Bank and Andhra Bank. finally opened in Kuala Lumpur. BoB opened an Electronic Banking Service Unit (EBSU) was opened at Hamriya Free Zone. Subsidiaries BOB Capital Markets (BOBCAPS) is a SEBI-registered investment banking company based in Mumbai. It also opened four new branches in existing operations in Uganda. The Malaysian consortium bank. and IOB the remaining 35% of the share capital. BoB opened a joint venture life insurance company with Andhra Bank and Legal and General (UK) called IndiaFirst Life Insurance Company. Andhra Bank owns 25%. and intends to grow to 15 branches within the next three years. China (02/08/2008) and in Kenton. the Bank of Baroda followed the Indian diaspora. Harrow United Kingdom. . Kenya (2).• 2007: In its centenary year. Sharjah (UAE). and its global customer base 29 million people. BoB also opened a branch in New Zealand. corporate restructuring. IIBM seeks to open five branches within its first year of operations in Malaysia. India International Bank Malaysia (IIBM). Its financial services portfolio includes Initial Public Offerings. International presence In its international expansion. mergers and acquisition. That same year. The Bank of Baroda has a joint venture in Zambia with 16 branches. BOB owns 40%. It is a wholly owned subsidiary of Bank of Baroda. BoB received ‗In Principle‘ approval for the upgrading of its representative office in Australia to a branch. private placement of debts. business valuation. The Bank has 100 branches/offices in 24 countries including 61 branches/offices of the bank. 38 branches of its 8 subsidiaries and 2 representative offices in Thailand and Australia. project appraisal. BoB‘s total business crossed 2. its branches crossed 2000. • 2008: BoB opened a branch in Guangzhou. Malaysia awarded a commercial banking licence to a locally incorporated bank to be jointly owned by Bank of Baroda. 2010s In 2010. and brokerage. Maharashtra. institutional equity research.09 trillion (short scale). In 2011. and Guyana. BoB closed its representative office in Malaysia in anticipation of the opening of its consortium bank there.

695 crores • Profits 5.Among the Bank of Baroda‘s overseas branches are ones in the world‘s major financial centres (e. Bahrain. and is establishing offices in Canada. Kuwait. after which. It is seeking approval for operations in Bahrain. Tanzania.006 crores • Assets 3. The bank plans to upgrade its representative office in Australia to a branch and set up a joint venture commercial bank in Malaysia. New Zealand. Sri Lanka.58. where it seeks to establish joint ventures or subsidiaries. Bank of Baroda financials 2012 • Sales 24. and New Zealand.397 crore . The bank is engaged in retail banking via the branches of subsidiaries in Botswana. Saudi Arabia. Affiliates IndiaFirst Life Insurance Company is a joint venture between Bank of Baroda (44%) and fellow Indian state-owned bank Andhra Bank (30%). 2009 and has its headquarters in Mumbai. Dubai. The bank has received Reserve Bank of India approval to open offices in the Maldives.. achieving a turnover in excess of 2 billion in its first four and half month. It was incorporated in November. London. successful graduates will join Bank of Baroda as management trainees. South Africa. and Uganda.g. and Qatar. The tagline of Bank of Baroda is "India's International Bank". Guyana. The duration of the course is just one year. Hong Kong. Mozambique. It has a large presence in Mauritius with about nine branches spread out in the country. Kenya. which offers a Postgraduate Diploma in Banking & Finance (PGDBF) from Manipal University. The Bank of Baroda has received permission or in-principle approval from host country regulators to open new offices in Trinidad and Tobago and Ghana. It also has plans to extend its existing operations in the United Kingdom. the United Arab Emirates. The company started strongly. and Russia. Baroda Manipal postgraduate diploma in banking and finance Bank of Baroda and Manipal University have established the Baroda Manipal School of Banking. Brussels and Singapore). and Botswana. New York. and UK‘s financial and investment company Legal & General (26%). as well as a number in other countries.

31 Individuals 4.FINANCIAL INSTITUTUIONS AND UTI BODIES CORPORATE Chart showing shareholding pattern of Bank of Baroda .88 Shareholding MUTUAL FUND AND UTI II DEUTSCHE BANK TRUST CO. INSURANCE COMPANIES INDIVIDUALS BANKS.5 FII 13.Table showing Shareholding pattern of Bank of Baroda Shareholders Shareholding Promoters 54.54 Govt. 0 Others 6.77 Institutions 20.

private banking.420 (on 31-March-2014)[4] employees Website www.4 trillion (US$54 billion) (2012)[2][3] Number of 42. It offers the entire spectrum of financial services to customer segments covering Large and Mid-Corporates.4 billion) (2012)[2][3] Operating ₹94 billion (US$1. after the Government of India allowed new private banks to be established.investment banking.com Axis Bank Limited (BSE: 532215. Axis Bank began its operations in 1994. private equity. Axis Bank has its headquarters in Mumbai.axisbank. Maharashtra. The Bank was promoted jointly by the Administrator of . MSME. corporate banking. Financial services Founded 1990 (as UTI Bank) Headquarters Mumbai. LSE: AXBC) is the third largest private sector bank in India. consumer banking. wealth management Revenue ₹340 billion (US$5. Maharashtra. mortgage loans.finance and insurance.5 billion) (2012)[2][3] income Net income ₹52 billion (US$830 million) (2012)[2][3] Total assets ₹3. Agriculture and Retail Businesses.AXIS BANK Industry Banking. India[1] Key people (Chairman) Shikha Sharma (MD & CEO) Products Credit cards.

As on the year ended 31st March 2013. Sikkim at a height of 4023.200 ft) above sea level. The Bank has a network of 11796 ATMs (as on 30th September 2013)[23] Axis Bank operates one of the world‘s highest ATM sites at Thegu... Dubai (at the DIFC) and Colombo and representative offices at Shanghai.08%.5% share through Orient Global. The Unit Trust of India holds a special position in the Indian capital markets and has promoted many leading financial institutions in the country.217 crores and a net profit of 5. Network The Bank's Registered Office is situated in Ahmedabad and its Central Office is located at Mumbai. New Zealand born Richard Chandler owns about 9. The first branch was inaugurated in April 1994 in Ahmedabad by Dr. National Insurance Company Ltd.4 metres (13. Manmohan Singh. . Axis Bank (erstwhile UTI Bank) opened its registered office in Ahmedabad and corporate office in Mumbai in December 1993.the Unit Trust of India (UTI-I). which focus on corporate lending. trade finance. as on 31st March 2013. The New India Assurance Company. investment banking and liability businesses. Dubai and Abu Dhabi.95 crores with the public holding (other than promoters and GDRs) at 54. The Bank. The Oriental Insurance Corporation and United India Insurance Company. the Bank has a presence in UK with its wholly owned subsidiary Axis Bank UK Limited. The Bank has an extensive network of 2225 branches and extension counters (as on 30th September 2013). Hong Kong. is capitalised to the extent of Rest. After this. The government of India and Reserve Bank of India have ordered an inquiry.com released video footage from Operation Red Spider purporting to show a few employees of several Indian banks including Axis bank apparently willing to help customers to avoid paying taxes. 467. General Insurance Corporation Ltd. International Business The Bank has seven international offices with branches at Singapore. On 14th March 2013 an online magazine named Cobrapost. Axis Bank had an operating revenue of 16. In addition to the above. Life Insurance Corporation of India (LIC). then the Honorable Finance Minister. . syndication.179 crores. and has the largest ATM network among private banks in India.

‗Axis Bank. Axis Bank partners with Visa to launch industry first ‗eKYC‘ facility .0 offers a high level of personalization. Internet banking. and nonresident Indian (NRI) services. Euro.branded Forex prepaid card for students.ISIC Forex Card‘ for Students would be the first photo Travel Currency Card available in USD. Axis Bank is the 1st Bank in India to launch ISIC co. along with liability products. a leading Singapore mobile solutions company. capital market related services and cash management services. depository. corporate advisory services. Axis Mobile 2. equity and mutual funds. and other banking business. 1st organization in India to introduce biometric based eKYC offering convenience. card services. financial advisory services. speed & ease to Aadhaar-registered individuals to open bank accounts International branches • Singapore . project appraisals. trading operations. derivative trading and foreign exchange operations on the account.0 for its retail resident Indian customers The first of its kind in India.Business focus Axis Bank operates in four segments: corporate/wholesale banking. management of public issues. Treasury operations The Bank‘s treasury operation services include investments in sovereign and corporate debt. the bank offers services such as lending to individuals/small businesses subject to the orientation. Retail banking In the retail banking category. India's third largest private sector bank launched Mobile Banking App 2. GBP and AUD currencies. automated teller machines (ATM ) services. The new application uses Tagit's mobility solution platform that enables Banking on-the-go. product and granularity criterion. The App has been launched in partnership with Tagit. Corporate/wholesale banking The Bank offers to corporate and other organisations services including corporate relationship not included under retail banking. and for customers and central funding. Industry First Initiative Axis Bank. placements and syndication.

The bank is a SEBIregistered Category I Merchant Banker and has been active in advising Indian companies in raising equity through IPOs. Mergers and Acquisitions and Private Equity Advisory.london NRI services Products and services for NRIs that facilitate investments in India. The Bank also organised the ‗Business Gaurav SME Awards‘ in association with Dun & Bradstreet to recognise and award achievements in the SME space.• Hong Kong • Dubai • Shanghai • Abu Dhabi • Moscow • colombo • UK. During the financial year ended 31 March 2012. QIPs. Investment banking Bank‘s Investment Banking business comprises activities related to Equity Capital Markets. and Rights Issues etc. taking the total number to 32 SME Centres. Axis Bank undertook 9 transactions including 5 IPOs and 2 Open Offers. The Business Gaurav SME Awards In 2011–12. Business banking The Bank accepts income and other direct taxes through its 214 authorised branches at 137 locations and central excise and service taxes (including e-Payments) through 56 authorised branches at 14 locations. . Agriculture 401 branches of the Bank have dedicated officers for providing agricultural loans to farmers. Under the Small Business Group a subgroup for financing micro enterprises is also set up. Medium Enterprises and Supply Chain Finance. Axis Bank set up 6 SME centres and SME cells each across the country. Lending to small and medium enterprises Axis Bank SME business is segmented in three groups: Small Enterprises. Axis bank is the 1st Indian Bank having TCDC cards in 11 currencies.

Bali Gold Shield for Excellence in Financial Reporting in the Private Banks category – 2011–12 ICAI (Institute of Chartered Accountants of India) AXIS Bank Corporate Office The Axis Bank Corporate Office in Mumbai received the ‗Platinum‘ rating by the US Green Building Council for its environment friendly facilities and reduction of carbon emission. the Bank had opened over 4.7 million beneficiaries. Axis Bank was granted a banking license in Britain.4 million No Frills accounts in over 7607 villages through a network of 15 Business Correspondents and nearly 6000 customer service points. Awards and recognitions In year 2012–13 Bank of the Year Money Today FPCIL Awards 2012–13 Best Bank CNBC-TV18 India‘s Best Bank and Financial Institution Awards 2012 Best Bank Runner Up – Outlook Money Awards 2012 Consistent Performer India‘s Best Banks – 2012 Survey by Business Today & KPMG Fastest Growing Large Bank Dun & Bradstreet – Polaris Financial Technology Banking Awards 2012 Fastest Growing Large Bank Businessworld Best Banks Survey 2012 Best Domestic Bond House The Asset Triple A Country Awards 2012 – Our Bank has been honored with this award for the third year in a row India Bond House of the year IFR ASIA – Country Awards 2012 Deal Maker of the Year in Rupee Bonds Businessworld Magna Awards – India's Best Deal Makers 2012 The Best Emerging Bullion Dealing Bank 9th India International Gold Convention2011-12 Best Acquiring Institution in South Asia Visa LEADER Award at Visa‘s 2012 APCEMEA Security Summit. Board of directors 1. Chairman Sanjiv Misra . DIFC (Dubai) and Colombo (Sri Lanka) and three representative offices (Shanghai. International banking Axis Bank has a foreign network of four branches (Singapore. after receiving approval in April 2013 from Britain's financial regulator to provide a full range of banking services including deposit-taking and making loans and investments.Financial inclusion Till March 2012. Axis Bank has a strong presence in Electronic Benefit Transfer (EBT) and has covered 6800 villages across 19 districts and 9 states till date with over 3. It opened its first UK bank in London on 12 July 2013. Dubai and Abu Dhabi) with presence in 6 countries. Hong Kong.

38 Individuals 5. MD and CEO Shikha Sharma Corporate social responsibility Axis Bank has set up a Trust – the Axis Bank Foundation. INSURANCE COMPANIES INDIVIDUALS BANKS. which contributes up to 1 percent of its net profit annually to various social initiatives undertaken by the foundation. During the year 2011–12.FINANCIAL INSTITUTUIONS AND UTI Chart showingShareholding pattern of Axis . 0 Others 10.49 Shareholding MUTUAL FUND AND UTI .II DEUTSCHE BANK TRUST CO. Education foundation The Axis Bank Foundation was founded in 2006 and supports supplementary education.4 FII 32. The recycling initiative under the Green Banking banner has helped the bank productively use around 21572 kilograms of dry waste during the year.2. the foundation has partnered with 36 NGOs for educating over a lakh underprivileged and special kids in 13 states. Table showing Shareholding pattern of Axis Bank Shareholders Shareholding Promoters 37.94 Govt.79 Institutions 13.

and a strong focus on developing national infrastructure such as the Golden Quadrilateral project by former Prime Minister Atal Bihari Vajpayee. a pre. as per the report. In 1991. The improvement in India‘s economic fundamentals has accelerated in the year 2015 with the combined impact of strong government reforms. Following these major economic reforms. The south western state of Maharashtra contributes the highest towards India's GDP among all states. This model contributed to widespread inefficiencies and corruption. resulting in an inward-looking. with relatively large increases in per-capita incomes.V.5 per cent in 2015. prime minister from 1991 to 1996.and post-British era mechanism of strict government controls on setting up new industry. who had eliminated Licence Raj. interventionist policies and import-substituting economy that failed to take advantage of the post-war expansion of trade. The independence-era Indian economy (from 1947 to 1991) was based on a mixed economy combining features of capitalism and socialism. the country's economic growth progressed at a rapid pace.ECONOMY ANALYSIS India is set to emerge as the world‘s fastest-growing major economy by 2015 ahead of China. as per the recent report by The World Bank. India‘s Gross Domestic Product (GDP) is expected to grow at 7. and the failings of this system were due largely to its poor implementation. India adopted liberal and free-market principles and liberalised its economy to international trade under the guidance of Former Finance minister Manmohan Singh under the Prime Ministry of P. RBI's inflation focus supported by benign global commodity prices. Narasimha Rao. Mumbai (Maharashtra) is known as the trade and commerce capital of India. .

50 USD Billion in 1970. If banks are short of funds they can borrow rupees from the Reserve Bank of India (RBI) at the repo rate. reaching an all time high of 2066. If the central bank of India wants to put more money into circulation.90 USD Billion in 2014 and a record low of 63. This reverse repo rate is always lower than the repo rate.90 billion US dollars in 2014. GDP in India is reported by the World Bank Group. INDIA INTREST RATE The Indian interest rate this often refers to the repo rate. then the RBI will lower the repo rate. The GDP value of India represents 3. also called the key short term lending rate. Increases or decreases in the repo and reverse repo rate have an effect on the interest rate on banking products such as loans. GDP in India averaged 552.33 percent of the world economy.24 USD Billion from 1970 until 2014. The reverse repo rate is the interest rate that banks receive if they deposit money with the central bank. the interest rate with a 1 day maturity. mortgages and savings.INDIA GDP The Gross Domestic Product (GDP) in India was worth 2066. .

long-term graph The current Indian interest rate RBI (base rate) is 7.Graph Indian interest rate RBI .250 % INDIA INFLATION RATE .

it reduces the repo rate. If the RBI wants to make it more expensive for the banks to borrow money. it increases the repo rate. Textiles (7. Provisional annual inflation rate based on all India general CPI (Combined) for November 2013 on point to point basis (November 2013 over November 2012) is 11.53% respectively. as per the Indian Ministry of Statistics and Programme Implementation. In India.17% (final) for the previous month of October 2013.46% as of September 2014. India used WPI as the measure for inflation but new CPI(combined) is declared as the new standard for measuring inflation ( April 2014) [[1]] CPI numbers are typically measured monthly.The annualised inflation rate in India is 6. making them unsuitable for policy use. This represents a modest reduction from the previous annual figure of 9. Many developing countries use changes in the Consumer Price Index (CPI) as their central measure of inflation. this basket is composed of three groups: Primary Articles (20. and with a significant lag. The most important components of the Manufactured Products Group are Chemicals and Chemical products (12%).6% for June 2011. Instead. Fuel and Power (14. for all commodities. Basic Metals.2%) BANK RATES Repo (Repurchase) Rate Repo rate is the rate at which banks borrow funds from the RBI to meet the gap between the demand they are facing for money (loans) and how much they have on hand to lend.3% of the total weight. Reverse Repo Rate This is the exact opposite of repo rate.74% and 10. it means the RBI will borrow money from the bank and offer them a lucrative rate of interest.[2] The WPI measures the price of a representative basket of wholesale goods. if it wants to make it cheaper for banks to borrow money. Machinery and Machine Tools (8.8%). Food Articles from the Primary Articles Group account for 14. As a result.3%) and Transport. The RBI uses this tool when it feels there is too much money floating in the banking system If the reverse repo rate is increased. similarly.20% respectively.9%) and Manufactured Products (65%). Alloys and Metal Products (10. Equipment and Parts (5.1% of total weight). banks would prefer to keep their money .24% as compared to 10.9%). Inflation rates in India are usually quoted as changes in the Wholesale Price Index. The rate at which RBI borrows money from the banks (or banks lend money to the RBI) is termed the reverse repo rate. Inflation rates (final) for rural and urban areas for October 2013 are 10. The corresponding provisional inflation rates for rural and urban areas for November 2013 are 11. India uses changes in the Wholesale Price Index (WPI) to measure its rate of inflation.19% and 10.

while repo signifies the rate at which liquidity is injected. MSF rate is the rate at which banks borrow funds overnight from the Reserve Bank of India (RBI) against approved government securities. It ensures that a portion of bank deposits is totally risk-free and secondly it enables that RBI control liquidity in the system. If the bank rate moves up. and vice-versa. If the RBI hikes the bank rate (this is currently 6 per cent). banks would have lesser funds to lend to their customers. Bank Rate This is the rate at which RBI lends money to other banks (or financial institutions . MarginalStandingFacility 8. It. What SLR does is again restrict the bank‘s leverage in pumping more money into the economy. and thereby. long-term interest rates also tend to move up. hikes its own lending rates to ensure it continues to make a profit. Banks make a profit by borrowing at a lower rate and lending the same funds at a higher rate of interest. This helps stem the flow of excess money into the economy Reverse repo rate signifies the rate at which the central bank absorbs liquidity from the banks. CRR Also called the cash reserve ratio. refers to a portion of deposits (as cash) which banks have to keep/maintain with the RBI. the interest that a bank pays for borrowing money (banks borrow money either from each other or from the RBI) increases. Si nce banks need funds on a daily basis.25 % % . they lend to and borrow from other banks according to their daily or short-term requirements on a regular basis. 1.25 (RRR) (MSF) - % % % 6. The bank rate signals the central bank‘s long-term outlook on interest rates.25 % -4 (SLR) (RR) - 21. Call Rate Call rate is the interest rate paid by the banks for lending and borrowing for daily fund requirement. CashReserveRatio (CRR) 3. StatutoryLiquidityRatio 4. BankRate - 2. banks are required to invest a portion of their deposits in government securities as a part of their statutory liquidity ratio (SLR) requirements.25 8. inflation by tying their hands in lending money SLR Besides the CRR. This serves two purposes. RepoRate 5. in turn. ReverseRepoRate 6.5 7.with the RBI (which is absolutely risk free) instead of lending it out (this option comes with a certain amount of risk) Consequently.

(ADPR) = 1 .02424+0.9778 .02056 5 = 0.02214 = 0.02012+0.5 4.02571+0.02006+0.02006 0.2 145.15 3 EPS 144.02013 0.5 3 3.0.0221 Average Retention Ratio = 1 .46 206.88 PAYOUT 0.STATE BANK OF INDIA WORKING NOTE FOR THE COMPUTATION OF INTRINSIC VALUE Table showing Payout ratio (DPS / EPS) of SBI YEAR 2010 2011 2012 2013 2014 DPS 3.37 116.67 174.02056 Average Dividend Payout Raito (ADPR) = 0.02424 0.02571 0.

37+13.9 2960.14264 0.09208 profit Average ROE = 0.09208 5 = 62658 = 0.88 HPER 16.142640.12531 5 Price Earning Ratio= (Market price/ EPS) Table showing High Price Earning Ratio of SBI YEAR 2010 2011 2012 2013 2014 MARKET 2318.13945 0.45+14.1134+0.13899+0.13945+0.45 14.17 networth 65949.37 13.3 14105 10891.7 118282.1826 .13899 0.2 98883.35 11707.2 64980 83951.06 25.67 174.1 2349.Table showing Return on equity (NP/ Networth) of SBI Year 2010 2011 2012 2013 2014 net 9166.05 7370.7 2360 2124.11342 0.9 EPS 144.57 PRICE Average High PE Ratio = 16.46 206.06+25.3 ROE 0.47 11.57 5 = 16.37 116.46+11.2 145.

1826 + 14.2974 2 = 15.19 11.1826 Average Low PE Ratio =14.98+9.80 5 = 14.58 12.2 145.5 EPS 144.58+12.19+11.67 174.37 116.24 GROWTH RATE (ARR × AROE) Growth Rate = ARR × AROE = 0.12531 = 0.05 1976.2974 NORMALISED PRICE EARNING RATIO Average High PE Ratio =16.9778 × 0.1 1867.80 PRICE Average Low PE Ratio = 13.1 2090.Table showing Low Price Earning Ratio YEAR 2010 2011 2012 2013 2014 MARKET 2012 2705.98 9.94 23.12252 PROJECTED EPS Projected EPS = Current year EPS × (1+growth rate) .94+23.2974 Normalised Price Earning Ratio = 16.46 206.88 LPER 13.

12252 Projected EPS 163.9 Intrinsic Value > Market value .7532 INTRINSIC VALUE (PROJECTED EPS X NORMALIZED AVERAGE PE RATIO) Projected EPS = 163.44 = 2495.24 Intrinsic Value = 163.0221 Average Retention Ratio 0.24 Average Dividend Payout Ratio (DPOR) 0.977 Long Term Growth Rate 0.5987 Intrinsic value Market value 2495.12531 Normalized Average PE Ratio 15.7532 × 15.753 Intrinsic Value 2495.59 2124.7532 Normalized PE Ratio =15.88 × (0.5987 Table showing INTRINSIC VALUE of SBI Average Return On Equity (ROE) 0.12252+1) = 163.= 145.

01428 ARR = 0. that is.0165 0.0119+0.27 44. YES BANK WORKING NOTE FOR THE COMPUTATION OF INTRINSIC VALUE Table showing payout ratio (DPS / EPS) of Yes Bank YEAR 2010 2011 2012 2013 2014 DPS 0.4 0. so it is preferable to buy the stocks as the current market value would have a tendency to increase to its intrinsic value.06 20.15 0.8 EPS 14.95 27.0119 0.Interpretation: SBI has a higher intrinsic value than its market value.98572 .0145 0.0107+0.25 0.6 0.86 PAYOUT 0.01428 Average Retention Ratio = 1-(ADPR) = 1-0.165+0.0178 Average Dividend Payout Raito (ADPR) ADPR = 0+0.0178 5 = 0.0107 0.68 36. it is undervalued.0145+0.

2240 0.2272 Average ROE = 0.67 7121.6 3794.59 5 =15.68 1617.28+13.76+14.1546 0.224+0.76 14.19+16.2012 PRICE EARNING RATIO (MARKET PRICE/ EPS) Table showing HIGH PRICE EARNING RATIO OF YES BANK YEAR 2010 2011 2012 2013 2014 MARKET 298 341.8 4676.27 44.19 16.78 NEWORTH 3089.86 HPER 21.Table showing RETURN ON EQUITY (NP/NETWORTH) OF YES BANK YEAR 2010 2011 2012 2013 2014 NETPROFIT 477.1 380.28 13.14 977.1916+0.2272 5 = 0.64 5807.1714 .74 ROE 0.1546+0.59 PRICE Average High PE Ratio = 21.74 727.2089 0.03 10.9 509 474.06 20.95 27.1916 0.9 EPS 14.2089+0.03+10.06 1300.68 36.

86 LPER 17.27 44.756 .4 345.006 PRICE Average Low PE Ratio = 17.434 12.2012 = 0.482 11.75 404 EPS 14.9675 NORMALISED PRICE EARNING RATIO Average High PE Ratio = 15.425+14.006 5 = 12.95 27.482+11.5 416.68 36.4344+12.Table showing LOW PRICE EARNING RATIO OF YES BANK YEAR 2010 2011 2012 2013 2014 MARKET 245 302.19832) = 53.9675 Normalised Price Earning Ratio = 15.1714 Average Low PE Ratio = 12.06 20.86 × (1+0.1714+ 12.490 9.425 14.49+9.069 GROWTH RATE (ARR × AROE) Growth Rate = ARR × AROE = 0.19832 PROJECTED EPS Projected EPS = Current year EPS × (1+growth rate) = 44.9675 2 = 14.98572× 0.

98572 Long Term Growth Rate 0.293 Intrinsic value Market value 756.756× 14.29 474. it is undervalued. that is.19832 Projected EPS 53.756 Normalized PE Ratio =14.293 Table showing INTRINSIC VALUE of Yes Bank Average Return On Equity (ROE) 0. .069 = 756.INTRINSIC VALUE (PROJECTED EPS X NORMALIZED AVERAGE PE RATIO) Projected EPS = 53.9 Intrinsic Value > Market value Interpretation: YES Bank has a higher intrinsic value than its market value. so it is preferable to buy the stocks of Yes bank as the current market value would have a tendency to rise to its intrinsic value.2012 Normalized Average PE Ratio 14.756 Intrinsic Value 756.069 Average Dividend Payout 0.069 Intrinsic Value = 53.01428 Ratio (DPOR) Average Retention Ratio 0.

4 1.26 8325.0313+0.93 60405.134 Average ROE = 0.17 84.107 0.0277+0.0277 0.125+0.98 5151.970 Table showing RETURN ON EQUITY (NP/NETWORTH) OF ICICI YEAR 2010 2011 2012 2013 2014 NETPROFIT 4024.1 44.38 6465.09 72.2 1.0297 = 0.3 EPS 36.48 NETWORTH 51618.094+0.95 PAYOUT 0.125 0.0332+0.0271 Average Dividend Payout Raito(ADPR) = 0.0294+0.0294 0.078 0.65 2 2.0297 Average Retention Ratio = 1-(ADPR) = 1-0.4 55090.134 5 = 0.ICICI BANK WORKING NOTE FOR THE COMPUTATION OF INTRINSIC VALUE Table showing PAYOUT RATIO (DPS / EPS) of ICICI YEAR 2010 2011 2012 2013 2014 DPS 1.078+0.73 56.10746 .094 0.25 66705.32 ROE 0.9 73213.0313 0.47 9810.0271 5 = 0.107+0.0332 0.

PRICE EARNING RATIO (MARKET PRICE/ EPS) Table showing HIGH PRICE EARNING RATIO OF ICICI YEAR 2010 2011 2012 2013 2014 MARKET 1009.00+23.294 .4 EPS 36.75 13.1 44.97 14.73 56.00 23.52 5 = 20.09 72.8 1188.46+16.25 981.7 1139 918.38 16.95 HPER 27.46 16.97+14.97 25.15 PRICE Average Low PE Ratio = 25.17 84.60+14.75+13.38+16.55 1072 827.5 EPS 36.47 15.361 Table showing LOW PRICE EARNING RATIO OF ICICI YEAR 2010 2011 2012 2013 2014 MARKET 902.95 LPER 25.17 84.60 14.73 56.15 5 = 18.52 PRICE Average High PE Ratio = 27.1 44.47+15.09 72.8 1318.97+25.7 1202.

3275 GROWTH RATE (ARR × AROE) Growth Rate = ARR × AROE = 0.10746 Normalized Average PE Ratio 19.8048 INTRINSIC VALUE (PROJECTED EPS X NORMALIZED AVERAGE PE RATIO) Projected EPS Normalized PE Ratio Intrinsic Value = 93.9278 = 93.3275 Average Dividend Payout Ratio (DPOR) 0.361 Average Low PE Ratio = 18.970 Long Term Growth Rate 0.10746 = 0.0297 Average Retention Ratio 0.8048 × 19.NORMALISED PRICE EARNING RATIO Average High PE Ratio = 20.8048 Intrinsic Value 1813.970 × 0.012 .95 × 0.104236 PROJECTED EPS Projected EPS = Current year EPS × (1+growth rate) = 84.012 Table showing INTRINSIC VALUE of ICICI Average Return On Equity (ROE) 0.361 + 18.3275 = 1813.294 Normalised Price Earning Ratio = 20.104236 Projected EPS 93.8048 = 19.294 2 = 19.3275 = 93.

it is undervalued.7 2.65 1.0202+0.0140+0.5 1.01752 Average Retention Ratio = 1-(ADPR) = 1-0.79 106.96 108.0179+0.0140 0.37 105.Intrinsic value Market value 1813.0203 5 = 0. that is.1752 = 0.33 121.0202 0. BANK OF BARODA WORKING NOTE FOR THE COMPUTATION OF INTRINSIC VALUE Table showing PAYOUT RATIO (DPS / EPS) of BOB year 2010 2011 2012 2013 2014 DPS 1.5 Intrinsic Value > Market value Interpretation: ICICI Bank has a higher intrinsic value than its market value.012 1318. so it is preferable to buy the stocks of ICICI as the current market value would have a tendency to rise to its intrinsic value.15 2.15 EPS 83.8248 .0152+0.0179 0.75 PAYOUT 0.0203 Average Dividend Payout Raito (ADPR) = 0.0152 0.

7 ROE 0.361+9.4 35985.Table showing RETURN ON EQUITY (NP/NETWORTH) OF BOB YEAR 2010 2011 2012 2013 2014 NETPROFIT 3058.65 810.33 4241.775+7.2025+0.08 NETWORTH 15106.1262 Average ROE = 0.79 106.1822 0.72 4541.05 722 837.2016 0.651+6.775 7.4 21043.85 EPS 83.1822+0.651 6.9 31969.5 27476.922 5 = 7.29+6.17051 PRICE EARNING RATIO (MARKET PRICE/ EPS) Table showing HIGH PRICE EARNING RATIO OF BOB YEAR 2010 2011 2012 2013 2014 MARKET 702 1006.361 9.68 5006.96 108.96 4480.2025 0.29 6.922 PRICE Average High PE Ratio = 8.1402 0.803 .1402+1262 5 = 0.2016+0.75 HPER 8.37 105.33 121.

769 6.613 .55 613.803 Average Low PE Ratio = 6.14055 PROJECTED EPS Projected EPS = Current year EPS × (1+growth rate) = 105.96 108.8248×0.859 NORMALISED PRICE EARNING RATIO Average High PE Ratio = 7.355+6.85 905.859 Normalised Price Earning Ratio = 7.Table showing LOW PRICE EARNING RATIO OF BOB YEAR 2010 2011 2012 2013 2014 MARKET 615.355 6.331 GROWTH RATE (ARR × AROE) Growth Rate = ARR × AROE = 0.6 EPS 83.14055) =120.769+6.335 8.803+ 6.33 121.335+8.65 714.17041 = 0.75 ×(1+0.79 106.757 5 = 6.75 LPER 7.757 PRICE Average Low PE Ratio = 7.37 105.859 2 = 7.1 740.081 5.0801+5.

14055 Projected EPS 120.331 Intrinsic Value = 120.01752 Average Retention Ratio 0.213 Intrinsic value 884.85 Intrinsic Value > Market value Interpretation: Bank of Baroda has a higher intrinsic value than its market value.213 Market value 837. .8248 Long Term Growth Rate 0. and so it is preferable to buy the stocks as the current market value would have a tendency to rise to its intrinsic value.613 Normalized PE Ratio = 7.613 × 7. it is undervalued.613 Intrinsic Value 884.INTRINSIC VALUE (PROJECTED EPS X NORMALIZED AVERAGE PE RATIO) Projected EPS = 120. that is.213 Table showing INTRINSIC VALUE of BOB Average Return On Equity (ROE) 0.17051 Normalized Average PE Ratio 7.331 = 884.331 Average Dividend Payout Ratio (DPOR) 0.

16268 Average ROE = 0.53 3388.1567 0.5 ROE 0.2 5179.15644 0.8335 Table showing RETURN ON EQUITY (NP/NETWORTH) AXIS BANK YEAR 2010 2011 2012 2013 2014 NETPROFIT 2514.68 132.16268 5 = 0.6 18998.54 102.17835+0.0170+0.01665 Average Retention Ratio = 1-(ADPR) = 1-0.8 2 EPS 62.1859+0.AXIS BANK WORKING NOTE FOR THE COMPUTATION OF INTRINSIC VALUE Table showing PAYOUT RATIO (DPS / EPS) of Axis Bank year 2010 2011 2012 2013 2014 DPS 1.0163 0.4 1.1665 = 0.0193 0.06 82.0156 0.67 NETWORTH 16044.156+0.0170 0.0193+0.8 22808.9 38220.5 4242.67 110.1859 0.0151 5 = 0.2 1.5 33107.0163+0.1567+0.33 PAYOUT 0.16803 .0151 Average Dividend Payout Raito (ADPR) = 0.43 6217.6 1.17835 0.15644+0.

67 110.5 1520 1555 EPS 62.2 1270.74+17.824+10.946 13.PRICE EARNING RATIO (MARKET PRICE/ EPS) Table showing HIGH PRICE EARNING RATIO OF AXIS BANK YEAR 2010 2011 2012 2013 2014 MARKET 1287 1460.750 PRICE Average High PE Ratio = 20.06 82.227 PRICE Average Low PE Ratio = 718.73 11.06 82.68 132.39+10.179+15.946+13.750 5 = 15.6938 11.824 10.172 Table showing LOW PRICE EARNING RATIO OF AXIS BANK YEAR 2010 2011 2012 2013 2014 MARKET 1128.482 10.4 EPS 62.33 HPER 20.482+10.45 1226.227 5 = 13.68 132.54 102.39 10.020 .33 LPER 18.3 1076.738 17.54 102.179 15.6938+11.15 1198 1353.73+77.67 110.

096 Intrinsic Value = 152.84 Normalized PE Ratio = 14.33 × (1+0.84 × 14.020 2 = 14.432 .172+ 13.172 Average Low PE Ratio = 13.096 Growth Rate (ARR × AROE) Growth Rate = ARR × AROE = 0.NORMALISED PRICE EARNING RATIO Average High PE Ratio = 15.8335 × 0.15505) = 152.18603 = 0.15505 PROJECTED EPS Projected EPS = Current year EPS × (1+growth rate) = 132.020 Normalised Price Earning Ratio = 15.096 = 2154.84 INTRINSIC VALUE (PROJECTED EPS X NORMALIZED AVERAGE PE RATIO) Projected EPS = 152.

.016652 Average Retention Ratio 0.8335 Long Term Growth Rate 0.16803 Normalized Average PE Ratio 14.Table showing INTRINSIC VALUE of Axis Bank Average Return On Equity (ROE) 0.84 Intrinsic Value 2154. so it is preferable to buy the stocks of Axis Bank as the current market value would have a tendency to rise to its intrinsic value.15505 Projected EPS 152.432 Intrinsic value 2154. it is undervalued.432 Market value) 1555 Intrinsic Value > Market value Interpretation: Axis Bank has a higher intrinsic value than its market value.096 Average Dividend Payout Ratio (DPOR) 0. that is.

9 59.432 1555 38.5 37.012 1318.DATA INTERPRETATION Table showing Percentage change between market price and intrinsic value NAME INTRINSIC MARKET VALUE % CHANGE VALUE SBI 2495.29 474.59 2124.213 BARODA Chart showing market value and intrinsic value .25 ICICI 1813.53 BANK OF 884.85 5.44 YES 756.50 AXIS 2154.54 837.9 17.

. inflation rate.  SBI shows increase in profits.. interest rate. overall industry profit after tax is increasing over the years which means banking industry is having much profit but on the other side banking industry Net Profit growth has decreased very much so investor should invest carefully.5%  Bank of Baroda is underpriced by 5.53% and Axis Bank by 38.also effects market share. dividends and earnings.44%.54%  The intrinsic value of Yes Bank shows less worth than other banks.  In the company analysis.  In the industry analysis.FINDINGS  In the Economic Analysis. for all banks taken for the study.  GDP.25%  Yes Bank is underpriced by 37. the economy is booming after 2010 and current position shows that this is the good time to invest after the recession because GDP growth rate is increasing and overall economy is growing.  SBI is underpriced by 17.. bank rate etc. .  ICICI bank is underpriced by 59. EPS and dividend were increasing from 2010 onwards except bank of baroda  If investor wants to invest in the company for long term then he can have a good profit because company growing rapidly in terms of profit and net sales and its EPS & DPS are increasing over the years.

 Out of five companies.  The shares of all Banks will be good for buying in the present situation. . as the company‘s intrinsic values are comparatively more than the actual market values. SBI and AXIS show more intrinsic value.e.  Portfolio investment will decrease risk in investing in one industry. i. all the banks taken for the study are worth to invest as their shares‘ prices have a tendency to increase in the future.  Investing in share market using borrowed funds should be avoided as far as possible..SUGGESTIONS :  It is suggested to buy and hold the undervalued stocks.  The increasing EPS indicate good earnings. all five companies are worth to invest as per the intrinsic value because it‘s more than their market value  Stock market is fluctuating from time to time. Also the increase in profit will give hope for the shareholders in order to hold the share.  It is always better to hold good stocks than to engage in rapid-fire trading for quick returns. therefore it is advised to check the market conditions each time before investing in shares.

According to the industry analysis investor can invest in the banks but he/she should be careful for the investment.CONCLUSION Fundamental analysis is based on the analysis of the economic. industry and company fundamentals and there by assess the intrinsic value of the share with the prevailing market price to arrive at an investment decision. The purpose of fundamental analysis is to evaluate the present and future earning capacity of the share based on the economy. Invest current money or other resources for future benefits. The above report says that our economic is growing after the recession and it is the good time for the one who want to invest. . industry as well as the company and in this research we can see that the economic indicators have an effect on the bank growth and assets.

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