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Overview of Banking

Industry

Overview
Scheduled
Banks
Cooperative

Commerci
al
Public

SBI &
Associat
es

Private

Nationaliz
ed

Region
al
Rural

Foreig
n

Others

Small
financed
bank

Payment
bank

Major Players
Nationalized Banks
1
5
1
6
1
7
1
8
of 1
9

Allahabad Bank

Corporation Bank

Andhra Bank

Dena Bank

Bank of Baroda

10 Indian Bank

Bank of India

Bank of Maharashtra

11 Indian Overseas Bank


Oriental
Bank
12 Commerce

Canara Bank

13 Punjab & Sind Bank

7
1

Central Bank of India


Catholic Syrian Bank

City Union Bank

Dhanalaksmi Bank

Federal Bank

and Bank
Kashmir 1
14 Jammu
Punjab National
6
Bank
0
1
7
Karnataka Bank
1
1
8
Karur Vysya Bank
2
1
9
Nainital Bank
3

ING Vysya Bank

1
2

Axis Bank
DCB Bank

HDFC Bank

Syndicate Bank
UCO Bank
Union Bank of India
United Bank of India
Vijaya Bank

Old Private Sector Banks

Lakshmi Vilas Bank


Ratnakar Bank
South Indian Bank
Tamilnadu
Mercantile
Bank

New Private Sector Banks


4
5

ICICI Bank
Indusind Bank

6 Kotak Mahindra Bank


7 Yes Bank

Sector wise share and


growth

Groupwise share in Total


Business

Industry performance

Deposits rose at 16%


CAGR with foreign
banks registering the
highest year on year
growth of 22%. With
growth of CASA
deposits there are
increased competition
among banks.

Advances grew at a CAGR


of 17.5% to
Rs.67,352billion in 201314 from Rs 30,009 billion in
2008-09. But if we look at it
on a year-to-year basis it is
actually slowing down due
to reduction of credit taken
Total Investment growthby different
Operating
expenditure,
sectors.
slowed to 10% in 2013-14 nationalized banks are the most
from 17% in 2012-13. Only cost efficient. The SCBs staff
foreign banks show
cost increased by 15% year on
decent growth in this year in 2013-14.
case.
NPA ratio increased by 30 bps in 2013-14 due to the
weak macroeconomic scenario.These factors affect the
balance sheet and deteriorate the value of assets. This
effect was sharper in case of public sector banks.

Industry performance

Net Profitability Margin (NPM) declined by 15 bps year


on year to 1.76% in 2013-14 from 1.91% the previous year
while operating expenses increased by 2 bps. Decline in
interest earned by banks as well as high operating expenses
are the main reasons for this decline.
High NPAs and NPMs have given rise to low interest
income growth. In this case, nationalized banks took a
bigger hit.
Aided by high interest rates and growth in
advances, total interest income of SCBs grew
at a CAGR of 17.1% but by 11.2% year on year
during the periods 2007-8 to 2013-14.

Competitor Analysis: LVB


Key Performance Indicators
2015
Key Performance Ratios
Net Profit Margin (%)
Operating Profit Margin (%)
Return on Assets (%)
Return on Equity / Networth
(%)
Net Interest Margin (X)
Cost to Income (%)
Interest Income/Total Assets
(%)
Non-Interest Income/Total
Assets (%)
Operating Profit/Total Assets
(%)
Operating Expenses/Total
Assets (%)
Interest Expenses/Total
Assets (%)

LVB

KVB

2014
CUB

LVB

KVB

CUB

5.97
-6.85
0.53

8.6
-2.16
0.87

14.63
-0.33
1.41

3
-7.98
0.28

8.39
-2.63
0.83

13.63
1.8
1.38

8.95

10.93

14.65

6.1

12.91

17.14

0.02
27.15

0.03
26.62

0.03
26.66

0.02
29.26

0.02
24.97

0.03
25.06

8.96

10.15

9.68

9.6

9.92

10.18

1.14

1.09

1.44

1.05

1.09

1.2

-0.61

-0.21

-0.03

-0.76

-0.26

0.18

1.75

2.07

1.86

1.91

1.96

1.91

6.83

7.39

6.78

7.25

7.43

7.14

Competitor Analysis: LVB


Key Performance Indicators
2015
Key Performance Ratios

LVB

2014

KVB

LVB

CUB

CUB

KVB

Per Employee Ratios


Interest Income/ Employee (Rs. Lakhs)

64.02

74.97

61.83

60.27

69.70

60.40

Net Profit/ Employee (Rs Lakhs)

3.82

6.45

9.05

1.81

5.85

8.23

Business/ Employee (Rs.Lakhs)

1,107.73

1,122.68

963.13

955.71

1,059.26

904.24

553.63

857.85

568.18

549.57

894.40

599.04

Net Profit/ Branches (Rs.Lakhs)

33.07

73.81

83.16

16.53

75.10

81.66

Business/ Branches (Rs.Lakhs)

9,579.06

12,845.66

8,850.62

8,715.26

13,592.63

8,967.94

Per Branch Ratios


Interest Income/ Branch (Rs.Lakhs)

Competitor Analysis: PNB


Key Performance Indicators
2015
Key Performance Ratios

PNB

BOI

2014
BOB

PNB

BOI

BOB

Net Profit Margin (%)

6.61

3.93

7.91

7.73

7.19

11.66

Operating Profit Margin (%)

-6.1

-5.81

-2.33

-2.85

-4.12

0.2

0.5

0.27

0.47

0.6

0.47

0.68

Return on Equity / Networth (%)

8.12

5.43

8.53

9.69

9.12

12.61

Net Interest Margin (X)

0.03

0.02

0.02

0.03

0.02

0.02

37.13

29.09

29.96

36.36

29.36

27.38

Interest Income/Total Assets (%)

7.67

7.01

7.85

6.61

5.9

Non-Interest Income/Total Assets (%)

0.97

0.68

0.61

0.83

0.74

0.67

-0.46

-0.4

-0.14

-0.22

-0.27

0.01

Operating Expenses/Total Assets (%)

1.73

1.3

1.07

1.69

1.16

1.08

Interest Expenses/Total Assets (%)

4.93

5.18

4.16

4.91

4.72

4.09

Return on Assets (%)

Cost to Income (%)

Operating Profit/Total Assets (%)

Competitor Analysis: PNB


Key Performance Indicators
2015
Key Performance Ratios

2014

BOI

PNB

BOB

PNB

BOI

BOB

Per Employee Ratios


Interest Income/ Employee (Rs. Lakhs)

67.82

95.87

87.01

65.95

204.55

84.65

Net Profit/ Employee (Rs Lakhs)

4.48

3.77

6.88

5.10

14.73

9.87

Business/ Employee (Rs.Lakhs)

1,291.42

2,061.66

2,117.59

1,221.63

4,574.04

2,099.74

706.03

887.77

811.55

697.04

815.27

789.21

Net Profit/ Branches (Rs.Lakhs)

46.67

34.93

64.19

53.90

58.69

92.04

Business/ Branches (Rs.Lakhs)

13,443.80

19,091.01

19,751.13

12,911.88

18,230.27

19,576.41

Per Branch Ratios


Interest Income/ Branch (Rs.Lakhs)