A

PROJECT REPORT
ON
“FINANCIAL ANALYSIS OF
STATE BANK OF INDIA”
BY:ABHISHEKGUPTA
MBA 4TH SEMESTER
ROLL NO. : 1900160700002
COLLEGE NAME : RBMI
 COMPANY PROFILE

• SBI is an Individual multinational , public sector banking and

financial Services company.
• SBI Is the 43rd largest Bank in the world and ranked 221st position
in fortune global 500 list Of the world’s biggest corporation of 2020
• On july 1955, the Imperial bank of India Become the state bank of
India
• It is also the fifth largest employer in India with 2,50,000
employees .
 OBJECTIVE OF THE STUDY
I have two objectives regarding my research project. These are shown below
1. Primary objective
2. Secondary objective
1. Primary objective :-

• To study the software used in SBI.

• To analyse the financial statements of the corporation to assess it’s

true financial position by the use of ratios.

2. Secondary objective :-

• To find out the shortcomings in SBI.

• To see whether SBI is going well or not in different areas.

IMPORTANCE OF THE STUDY

• By “FINANCIAL PERFORMANCE ANALYSIS OF SBI” we would be

able to get a fair picture of the financial position of SBI. 

• By showing the financial performance to various lenders and creditors it is

possible to get credit in easy terms if good financial condition is maintained
in the company with assets outweighing the liabilities.

• Protecting the property of the business.

• Compliances with legal requirement.

TOOLS FOR ANALYZING
Liquidity Ratio
• Current Ratio = current assets/current liabilities
• Quick Ratio = (Cash +Marketable
securities+Receivables )/current liabilities
Solvency Ratio
• Debt Ratio = Total liabilities/Tangible net worth
Profitability Ratio
• Return on Asset = Net income/total assets
• Return on equity = Net income /shareholders Equity
 FINDINGS
• percentage change in company’s share capital is the 0% which means
that the company has not issued any share for the current year.
• The Loans and Advances have increased from Rs.2161874.39 to
Rs.2452204.62, which is 13.43% of increase. This shows that the
business has been improved
• Reserves&Surplus has increased from Rs.193388.11 Cr to
Rs.195367.42, but the Percentage Change shows that this increase in
1.02%, this shows that the company hasn’t earned much profit hence
less amount is added into reserve&surplus
• There has been a significant rise in secure loan and insecure loan
with change in percentage of 11.28% and 7.57% respectively. Which
shows that the company has very good relations with lendor.
RECOMMENDATION AND
SUGGESTIONS
Some of the recommendation and suggestion are as follows:
• The attention is required on the areas of growth, profitability ,service level
and building talent.
• To increase the profit of bank, bank should decrease their operating
expenses and increase their income.
• To increase its liquidity, bank should keep some more cash in its hand
Instead of giving more and more advances.
• Introduce quality consciousness and standardization of the work
system and procedures.
• Make manager competitive and introduce spirit of market-orientation
and culture of working for customer satisfaction.
• There is need to build the knowledge and skill among the employees in the
context of technology.
 CONCLUSION
The balance-sheet along with the income statement is an important tools for investors
and many other parties who are interested in it to gain insight into a company and its
operation. The balance sheet is a snapshot at a single point of time of the company's
accounts- covering its assets, liabilities and shareholder’s equity. The purpose of the
balance-sheet is to give users an idea of the company's financial position along with
displaying what the company owns and owes. It is important that all investors know
how to use, analyze and read balance- sheet. P & L account tells the net profit and net
loss of a company and its appropriation.
In the case of State Bank of India, during fiscal 2019, the bank continued to grow and
diversify its assets base and revenue streams. Bank maintained its leadership in all
main areas such as retail credit, wholesale business, international operation, insurance,
mutual fund, rural banking etc. Continuous increase in the number of branches, ATM
and electronic channels shows the growth take place in bank.Bank witnessed various
challenges during the year but remained on a growth path by transforming itself. This
was made possible by the entire bank being guided by a common vision, shared values,
and following high standards of integrity and governance
LIMITATIONS OF THE STUDY
• Difficulty in data collection.
• Limited knowledge about the bank in the initial stages.
• Branch manager was reluctant for giving financial data of the bank.
• The analysis and interpretation are based on secondary data contained in the
published annual reports of SBI for the study period.
• Due to the limited time available at the disposable , the study has been confined for
a period of 5 years (2016-2021).
• Ratio itself will not completely show the company’s good or bad financial position.
• Inter firm comparison was not possible due to the non availability of competitors
data.
• The study of financial performance can be only a means to know about the financial
condition of the company and cannot show a through picture of the activities of the
company