MVP’KRT Arts BH Commerce and AM

Science College, Nashik

Department Of Commerce

A Synopsis On
“A Study of Financial Performance of State Bank of India"

Submitted To
Savitribai Phule Pune University
In Partial Fulfilment of the Degree of Master
Of Commerce

Submitted By
Nikumbh Manoj Ravindra
M.Com-II Semester-IV
Roll No:- 25

Under The Guidance Of

Prof. S.S.Deshmukh

For Academic Year

2021-22

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Sr. No Contents Page No

1 Introduction 3
i. State bank of India
ii. Financial Performance
iii. Financial Performance Analysis
2 Statement of Problem 5

3 Significance of the Study 5

4 Objectives of the Study 5

5 Hypothesis of the Study 5

6 Review of Literature 6

7 Limitations of the Study 7

8 Scope of the Study 7

9 Research Methodology 8
i. Primary Data
ii. Secondary Data
10 Conclusion 8

11 List of References 9

Title of Content

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1) Introduction
The banking sector is the existence blood of any modern-day economy. It is one of the
important financial basements of the economic region, which plays a crucial function
within the functioning of a financial system. It could be very important for economic
development of a country that it’s financing necessities of alternate; industry and
agriculture are met with better diploma of commitment and obligation. The Indian banking
sector is extensively categorized into scheduled banks and non-scheduled banks. The
scheduled banks are the ones protected beneath the 2d Schedule of the Reserve Bank of
India Act, 1934. The scheduled banks are further classified into: nationalized banks; State
Bank of India and its buddies; Regional Rural Banks - foreign banks and different Indian
personal area banks. The term business banks refers to each scheduled and non-scheduled
commercial banks regulated under the Banking Regulation Act, 1949.Thus, integrally
linked in banking enterprise in regularly increasing. The performance of economic
machine is energy of economic system. A sound banking system efficaciously mobilized
saving in productive quarter and solvent machine guarantees the talents to meet the
depositor duty. The banking region is playing critical function in socioeconomic
development of the us of a after independence. It is dominant in India because it money
owed for greater than half of the assets of economic area.

State Bank of India

State bank of India is an Indian multinational public sector bank and financial
services statutory body headquartered in Mumbai, Maharashtra. SBI is the 43rd largest
bank in the world and ranked 221st in the Fortune Global 500 list of the world's biggest
corporations of 2020, being the only Indian bank on the list. It is a public sector bank and
the largest bank in India with a 23% market share by assets and a 25% share of the total
loan and deposits market. It is also the fifth largest employer in India with nearly 250,000
employees.

The bank descends from the Bank of Calcutta, founded in 1806 via the Imperial Bank of
India, making it the oldest commercial bank in the Indian Subcontinent. The Bank of
Madras merged into the other two presidency banks in British India, the Bank of
Calcutta and the Bank of Bombay, to form the Imperial Bank of India, which in turn
became the State Bank of India in 1955.Overall the bank has been formed from the merger

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and acquisition of nearly twenty banks over the course of its 200 year
history. The Government of India took control of the Imperial Bank of India in 1955,
with Reserve Bank of India (India's central bank) taking a 60% stake, renaming it State
Bank of India

Financial Performance
Financial performance is a complete evaluation of a company’s overall standing in
categories such as assets, liabilities, equity, expenses, revenue, and overall profitability. It
is measured through various business-related formulas that allow users to calculate exact
details regarding a company’s potential effectiveness.
For internal users, financial performance is examined to determine their respective
companies’ well-being and standing, among other benchmarks. For external users,
financial performance is analyzed to dictate potential investment opportunities and to
determine if a company is worth their while.
Before calculations can be made on certain financial indicators that establish overall
performance, a financial statement analysis must occur.

Financial Statement Analysis

Financial statement analysis is a process conducted on organizations by internal and
external parties to gain a better understanding of how a company is performing. The
process consists of analyzing four critical financial statements in a business.

The four statements that are extensively studied are a company’s balance sheet, income
statement, cash flow statement, and annual report.

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2) Statement of the Research Problem
The Reserve Bank of India regulates the banking service industry. Analysis of a bank’s
financial statements requires a distinct approach that recognizes a bank’s somewhat
unique risks. This study is guided by the following research questions;

1. What does the trend performance of SBI bank looks like in the six years?
2. What was the efficiency of Solvency and Liquidity position of banks?

3) Significance of the Study

1. Study the financial strengths and weaknesses as well as merits of the bank.
2. Financial analysis of the current condition of the bank.
3. Analyze the assets of the bank.
4. Analyze the liabilities of the bank.
5. Analyze the ratio on the bank.

4) Objectives of the Study

1. To study the financial condition of the bank.
2. To study the ratio analysis of bank.
3. To analysis the current position of bank.
4. To study the financial performance of the bank for the last 5 years.
5. To study the ratio of banks.

5) Hypothesis of the Study

A hypothesis is a statement that introduces a research question and proposes an expected
result. It is an integral part of the scientific method that forms the basis of scientific
experiments. Therefore, you need to be careful and thorough when building your
hypothesis. A minor flaw in the construction of your hypothesis could have an adverse
effect on your experiment.

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 1. There has been some change in the financial performance of the bank.
2. There has been some increase or decrease in bank assets.
3. There has been some change in the ratio of banks.
4. The financial position of the bank has strengthened.
5. The financial position of the bank has weakened.

6) Review of Literature
1. Chaudhary Kajal, Sharma Monica (2011), in their study “Performance of
Indian Public Sector Bank and Private Sector Banks”, have dealt with private
and public sector banks. The economic reforms in early 90s but their outcome are
visible only now. Major changes took place in the functioning of banks is India
only after liberalization, globalization and privatization. This study is an attempt
by the authors to analyses how efficiently public and private sector banks have
been managing their NPAs.

2. Singh and Tandon (2012), in their paper entitled, “A Study of Financial

Performance: A Comparative Analysis of SBI and ICICI Bank”, judged the
financial performance of SBI and ICICI bank, public and private sector
respectively. For the study, researchers have taken the variables like credit deposit
and net profit margin etc. The period if study taken is from the year 2007-08 to
2011-12. It was found that SBI is performing well and financially sound than
ICICI bank but in context of deposits and expenditure ICICI bank has better
management efficiency than SBI.

3. Nagarkar Jivan Jayanti (2015), in his study “Analysis of Financial

Performance of Bank in India”, has attempted to analyses the performance of 5
major public, private and foreign sector banks. This paper is an attempt to find out,
how banks have performed on financial parameters during the last 5 years
compared to high growth year Rs.financial performance of banks is compared in 2
time periods: (1) High growth years of 2004-08, (2) Low growth years of 2009-13.

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 4. Chintala & Kumar, (2016) studied public and private bank’s financial
performance. SBI, BoB, PNB, CBI, IDBI, HDFC, ICICI, Kotak, and IndusInd
bank's total income, interest income, and service income were analyzed for the
five years i.e. from 2011 to 2016. They came to the conclusion that private sector
banks were the most profitable and experienced the fastest growth.

5. Al-Kaseasbah, (2018) compared SBI and ICICI bank's financial results

between 2012 and 2016. Financial ratio analyses and hypothesis testing were
conducted, and it was concluded that the SBI registered a fluctuating trend while
the ICICI bank struggled to handle an increasing trend.

7) Limitation of the Study

1. The Study covers period of 5 years only.
2. The data has been arranged as per their own requirements.
3. This study covers State bank of India only.
4. The information used for this study is a secondary source it is doubtful whether the
information will be accurate.
5. No comparison is made b/w the others.

8) Scope of the Study

The role of a company's financial report is to provide information on the company's
performance, the company's financial position and changes in the financial position that
are useful for making financial decisions.
The purpose of financial decision making is to evaluate the company's past, present, and
future performance and financial position.

9) Research Methodology
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 1. Primary data

When a Researcher is getting his own information, it is called Primary

information. When a researcher himself obtains information about a field of
research and information about a problem, it is called elementary information.
Preliminary information has been used for this study. in this, information about the
performance of the bank has been collected from the customers of State Bank Of
India and from the managers of the bank through questionnaires.

2. Secondary data

Secondary information is information that does not actually collect information for
Research itself such information is called secondary information. Secondary
information is collected by someone and made available to other people for use.
that information is called Secondary information.
Secondary information is preferred for this study. The bank's performance reports
have been obtained through the internet using Secondary information.

10) Conclusion

The banking sector is very important for the economic development of the country. State
Bank is one of the leading public sector banks in India. State Bank's position in the market
is good. Financial analysis is used to track the status of a bank and to control the day to
day operations of the bank. This study has been conducted to focus on the performance of
the bank.
From the above study or from the financial performance of the bank, it can be seen that
the bank performance has increased in 2020-21.

11) List of References

1. Chaudhary Kajal, Sharma Monica (2011), “Performance of Indian Public Sector

Bank and Private Sector Banks”, Journal of Innovation Management and
Technology.

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 2. Singh and Tandon (2012), “A Study of Financial Performance: A Comparative
Analysis of SBI and ICICI Bank”, Journal of Marketing, Financial Services &
Management Research.

3. Nagarkar, Jivan Jayanti (2015), “Analysis of Financial Performance of Bank in

India”, Annual Journal of Symbiosis Centre for Management Studies.

4. Chintala, B., & Kumar, G (2016). A Comparative Study on Financial

Performance of Selected Public & Private Sector Banks in India. Journal of
Commerce & Trade, 11, 89
5. Al-Kaseasbah, M. M. G. (2018). Financial Performance of Indian Banking
Sector: A Case Study of SBI and ICICI Bank. 2(2), 12.

Website
1. https://en.wikipedia.org/wiki/State_Bank_of_India
2. https://www.investopedia.com/terms/f/financial-statements.asp
3. https://www.investopedia.com/terms/f/financial-statement-analysis.asp

Manoj Ravindra Nikumbh Prof. Sopan. S. Deshmukh

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