Fundamental Analysis of Banking Sector

Fundamental Analysis of Selected Banks in India
Submitted in partial fulfillment of the requirements

for Master of Management Studies
(MMS)
(2012-14)
SUBMITTED BY
Name: Siddhesh Digambar Bandekar

MMS
Roll No. M-12-04
Batch: 2012 - 2014
IES Management College and Research Centre,
Bandra, Mumbai
IES Management College and Research Centre

Bandra, Mumbai
MAY JUNE 200_
Students Declaration
I hereby declare that this report, submitted in partial fulfillment of the requirement for
the award for the Master of Management Studies (MMS), to IES Management
College and Research Centre is my original work and not used anywhere for award
of any degree or diploma or fellowship or for similar titles or prizes.
I further certify that without any objection or condition subject to the permission of the
company where I did my summer project, I grant the rights to IES Management
College and Research Centre to publish any part of the project if they deem fit in
journals/Magazines and newspapers etc without my permission.
Place
: Mumbai
Date
: (INPUT THE CORRECT DATE)
---------------------------------
Signature
Name
: Siddhesh Bandekar
Class
: (MMS I Sem II)
Roll No. : M-12-04
Certificate from the company
This is to certify that the dissertation submitted in partial fulfillment for the award of
Master of Management Studies (MMS ) of IES Management College and Research
Centre is a result of the bonafide research work carried out by Mr. / Ms. (PUT YOUR
NAME) under my supervision and guidance. No part of this report has been
submitted for award of any other degree, diploma, fellowship or other similar titles or
prizes. The work has also not been published in any journals/Magazines.
Date:
Industry guide
Signature of the Industry Guide: ______________
Name of Industry Guide: Mr. Santosh Kumar
Place:
Company
: Accord Fintech
Designation
: _______________________
(Please note that this certificate is to be given by the company in their letter head
and to be included in the project report)
Certificate from the Faculty Guide
This is to certify that the dissertation submitted in partial fulfillment for the award of
Master of Management Studies (MMS) of IES Management College and Research
Centre is a result of the bonafide research work carried out by Mr. / Ms. (PUT YOUR
NAME) under my supervision and guidance. No part of this report has been
submitted for award of any other degree, diploma, fellowship or other similar titles or
prizes. The work has also not been published in any journals/Magazines.
Date:
Faculty guide
Signature of the Faculty Guide: ______________
Name of Faculty Guide: ____________________
Place:
IES Management College and Research Centre
Acknowledgement
This project was not possible without the guidance and support of few respected people, So I
would like to give my sincere thanks to all of them.
I would like to express my deepest gratitude to Mr. Santosh Kumar - Senior Research
Analyst, Mr. Savio Fernandes - HR Manager, of Accord Fintech Pvt. Ltd. Sanpada ,Navi
Mumbai for having given me the opportunity to do my project work in the organization.
I extend my sincere thanks to Dr. Dinesh Harsolekar Director, Dr. Suchismita Sengupta &
Faculty Members of Indian Education Society Management College and Research Centre
(IES MCRC) Bandra, Mumbai, for having spared their valuable time and inputs with me and
for all the guidance given in executing the project as per requirements.
Last but not least, I would like to record my deepest sense of gratitude to my colleagues,
friends and family members for their support and constant encouragement.
Chapter 1
Executive Summary
1.1 Fundamental Analysis

A method of company valuation which involves examining the company's financials and
operations, especially sales, earnings, growth potential, assets, debt, management, products,
and competition. Fundamental analysis takes into consideration only those variables that are
directly related to the company itself, rather than the overall state of the market or technical
analysis data.
Fundamental analysis serves to answer questions, such as:
Is the companys/industry revenue growing?
Is it actually making a profit?
Is it in a strong-enough position to beat out its competitors in the future?
Is it able to repay its debts?
Of course, these are very involved questions, and there are literally hundreds of others you
might have about a company. It all really boils down to one question: Is the companys stock
a good investment? Think of fundamental analysis as a toolbox to help you answer this
question.
Therefore to know the answer of above questions, we have to take the help of the
Fundamental analysis, this is the reason that I have chosen study of Fundamental Analysis of
Telecom sector is done, which provides me to learn about how to do the analysis of P&L,
Balance Sheet, Ratio Analysis etc.
Introduction to Company
Accord Fintech
About Company
Accord Fintech is an ISO 9001:2008 certified company, set up by a team of professionals
with competencies in Financial content, software development and database design using a
variety of platforms, technologies and financial domain knowledge. Company has more than
250 professionals having cumulative experience of more than 800 man years engaged in
conceptualizing, designing and implementing end-to-end business solutions. A dedicated
team of financial and database analysts maintain information related to Company data,
Mutual Fund and Insurance.
Vision
To allow you to focus on your business while they take care of the technology to run it.
Core strength
A comprehensive understanding of the financial domain and development of products /
applications / web solutions which cater to its technological needs.
Future plan
Accord Fintech is in process of setting up a strong product portfolio that will be known for
reliability and become major strength of ACCORD for the years to come. Company is
determined to achieve this within a stipulated timeframe.
To cope with this and to attain self-reliance in all areas, there has been a significant step-up in
the emphasis on product development. Major additions have been made in the infrastructure
for development, content, testing, validation, virtual work and other product development
processes, with the latest - and in many cases - the first of their kind in this industry.
Equally significant, the process of product development is constantly being fine-tuned to
meet market requirements with reduced time of order execution. Formal processes to capture
customer voice, with programmed interactions between product development and marketing
is in place.
Products
ACCORD offers a wide range of products and solutions designed specially for enterprises
and small businesses across a variety of industries. There are four product lines Web
Products, Application Product, Content and Other Services -- to help you drive your company
from action to innovation.
Web Products
A web based common platform for distributors for all types of asset classes
for Manage transactions, Portfolio analysis, Advice investors, Model
portfolio, Commission workout, Mobilization etc.
A customized web based Portfolio Management application with multi
instrument, multi portfolio investment tracker.
A solution to enable employees to have ready access to the organization's
based documented of facts, sources of information, and solutions.
Web interface based workflow module for client registration/account
opening, which streamlines the client registration process online. It covers
the entire KYC process for Equity and Mutual Fund.
Web based Lead Management tool which automates the entire lead
processing function, from lead capture, analysis and assignment, through
to contact management and detailed status reports.
Web based content management tool which allow non-technical
contributors to create and edit content without having to code any HTML
or XHTML or any other mark-up language or programming language.
Online Internet and Intranet newsletters compilation tool having templates
custom designed specifically for your business.
An unified framework for security and authentication, alleviating much of
the burden on users and administrators.
Application Products
A comprehensive and analytical Mutual fund desktop based database
application. The application is designed in such a manner that with
minimal clicks you can achieve the desired output
A desktop based, navigation is user friendly application which gives an
analytical statistics for Company, Sector, News, Economy & Market
information.
ACE-TP is a desktop database application for comparing company
financial information of Indian business entities for transfer Pricing.
Introduction to Banking Industry

In the current decade, Banking sector has emerged as a resurgent sector in the Indian
economy. As per the McKinsey report India Banking 2010, the banking sector index has
grown at a compounded annual rate of over 51 per cent since the year 2001, as compared to a
27 per cent growth in the market index during the same period. It is projected that the sector
has the potential to account for over 7.7 per cent of GDP with over Rs.7,500 billion in market
cap, and to provide over 1.5 million jobs.
Today, banks have diversified their activities and are getting into new products and services
that include opportunities in credit cards, consumer finance, wealth management, life and
general insurance, investment banking, mutual funds, pension fund regulation, stock broking
services, custodian services, private equity, etc. Further, most of the leading Indian banks are
going global, setting up offices in foreign countries, by themselves or through their
subsidiaries.
Banking Sector in India
The Indian economys liberalization in the early 1990s has sparked a boom in the countrys
banking sector in the past two decades. The revenue of Indian banks grew four-fold from
US$ 11.8 billion to US$ 46.9 billion, whereas the profit after tax rose nearly nine-fold from
US$ 1.4 billion to US$ 12 billion over 2001-105. This growth was driven primarily by two
factors. First, the influx of Foreign Direct Investment (FDI) of up to 74 per cent with certain
restrictions4. Second, the conservative policies of the Reserve Bank of India (RBI), which
have shielded Indian banks from recession and global economic turmoil.
The high CAGR exhibited by Indias Banking Industry demonstrates the industrys resilience
to recession and economic instability. This resilience primarily stems from two factors. First,
the highly regulated Indian banking sector restricts exposure to high risk assets and excessive
leveraging. Second, Indian economys overall growth rate has been much higher than other
economies worldwide.
However, the recent crisis in the eurozone is likely to affect the Indian economy and in
particular the countrys banking sector. Further, the recent implementation of the Basel III
guidelines may also force European banks to deleverage significantly.
Banking in India is moderately consolidated, with the top 10 players accounting for
approximately 60 per cent of the total industry. The Indian banking sector is dominated by
public sector banks. The State Bank of India (SBI), Punjab National Bank (PNB) and Bank of
Baroda (BoB) had the first, second and third largest credit portfolios, respectively. To address
10
this problem of high NPAs, the Government introduced numerous measures through the
Union Budget and other policy initiatives to strengthen the sector and raise capital.
The performance of the Indian economy is one of the strongest drivers for the banking
industrys growth and vice versa and the average GDP growth of 8.1 per cent expected over
201116 will facilitate the expansion of the banking sector27. The government policies
bringing in monetary stability will also benefit and shield the industry from global economic
or political turmoil.
A World Bank Survey conducted in 2011 revealed that only 35 per cent of all adults in India
had a bank account with a formal banking institution. This represents a massive opening that
financial institutions in the country can leverage upon for future growth. The Indian
government has advised banks to open at least one branch in villages with a population of
more than 2,000, and also cover the peripheral villages.
Current Status of Indian Banking Sector

The Indian economy is projected to grow at a rate of 5-6 per cent and the countrys banking
industry is expected to reflect this growth. The onus for this lies in the capabilities of the
Reserve Bank of India as an able central regulatory authority, whose policies have shielded
Indian banks from excessive leveraging and making high risk investments. The recent moves
by RBI with regard to Marginal Standing Facility (MSF) and Liquidity Adjustment Facility
(LAF) in order to control the value of rupee have has affected the banking sector badly. The
competitive scenario in India is strong, with the landscape primarily dominated by
government banks. Market entry at the country level is expected to be tough for new players
due to the moderately consolidated nature of the industry and extremely high competition.
The key challenges for the industry are to reduce NPAs, increase financial inclusion and raise
capital for the Basel III compliance. The overall impact of suggested changes in the 201213
Union Budget is expected to be positive. These changes are mostly focused on financial
inclusion through expansion into rural areas, and bringing stability by boosting credit growth.
This may enable banks to meet the increasing demand for credit in the economy and comply
with the Basel III norms. According to the top consulting firms, the growth of Indian banks,
especially in the public sector, can be optimized through increasing productivity and efficient
human resource management. Banks need to hire employees with both core and specialist
skills, while simultaneously working to control attrition. Further, banks need to optimize the
time and cost of performing non consumer activities with the help of special tools and
revamping existing knowledge processes. Sustained government support and a careful reevaluation of existing business strategies can help the Indian banks achieve strong growth.
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Chapter 2
Objective Of the study
2.1 Title of the Project
Fundamental Analysis of Banking Sector
Fundamental Analysis involves examining the company's financials and operations,
especially sales, earnings, growth potential, assets, debt, management, products, and
competition, under which I have taken three top players in both public sector and private
sector. I have taken public sector banks like State Bank of India (SBI), Bank of Baroda
(BOB) and Bank of Maharashtra (BOM) and private sector banks like HDFC Bank, ICICI
Bank and Axis Bank to analyze the P&L, B/S, Ratio Analysis, Company v/s Industry & Price
comparison with Sensex.
2.2 Objective Of the study

There are so many objectives of this study some of the main objectives are given below: To study Banking Industry
Analysis of important ratios to acquire a deep knowledge of Banking sector.
To get an overview of co-relation between Bankex & Sensex.
To understand co-relation between banking industry and economy.
To calculate overall performance of Banking sector.
To make future projection regarding the performance of selected banks.
To understand all the market moving factors for Banking Sector.
It helps in long term picks of shares for investor.
To help in making estimation of earning & growth prospects of company.
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2.3 Methodology
For the fundamental analysis of banking sector I am using CAMEL model. Using CAMEL
model I am calculating different ratios which are important to analyse the performance of
banks. Using the ratios of camel model I will compare the performance of the banks and then
decide which bank is better than other banks in which aspect.
CAMEL Rating System:

The CAMEL rating is a supervisory rating system originally developed in the U.S. to
classify a condition. The ratings are assigned based on a ratio analysis of the financial
statements. Components of CAMEL model include:
Capital adequacy
Assets
Management Capability
Earnings
Liquidity (also called asset liability management)
Ratings are given from 1 (best) to 5 (worse) in each of the above categories.
This rating system is designed to take into account and reflect all significant financial
and operational factors examiners assess in their evaluation of a credit unions performance.
Credit unions are rated using a combination of financial ratios and examiner judgment.
Since the composite CAMEL rating is an indicator of the viability of a credit union, it
is important that examiners rate credit unions based on their performance in absolute terms
rather than against peer averages or predetermined benchmarks. The examiner must use
professional judgment and consider both qualitative and quantitative factors when analyzing
a credit unions performance. Since numbers are often lagging indicators of a credit unions
condition, the examiner must also conduct a qualitative analysis of current and projected
operations when assigning CAMEL ratings.
Although the CAMEL composite rating should normally bear a close relationship to
the component ratings, the examiner should derive the composite rating solely by computing
an arithmetic average of the component ratings.
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Importance of CAMEL RATING SYSTEM in BANKS
In 1979, the bank regulatory agencies created the Uniform Financial Institutions
Rating System (UFIRS). Under the original UFIRS a bank was assigned ratings based on
performance in five areas: the adequacy of Capital, quality of Assets, the capability of
Management, the quality and level of Earnings and the adequacy of Liquidity. Bank
supervisors assigned a 1 through 5 rating for each of these components and a composite
rating for the bank. This 1 through 5 composite rating was known primarily by the acronym
CAMEL.
A bank that received a CAMEL of 1 was considered sound in every respect and
generally had component ratings of 1 or 2 while a bank with a CAMEL of 5 exhibited unsafe
and unsound practices or conditions, critically deficient performance and was of the greatest
supervisory concern. While the CAMEL rating normally bore close relation to the five
component ratings, it was not the result of averaging those five grades. Rather, supervisors
consider each institutions specific situation when weighing component ratings and, more
generally, review all relevant factors when assigning ratings.
CAMEL ratings reflect the excellent banking conditions and performance over the
last several years. There is a need for bank employees to have sufficient knowledge of the
rating system, in order to guide the banking growth rate in the positive direction. Lack of
knowledge among employees regarding banking performance indicators affects banks
negatively as these are the basis for any banking action.
In this project 6 banks 3 from Public sector and 3 from private sector viz. State Bank
of India, Bank of Baroda, Bank of Maharashtra, HDFC Bank, ICICI Bank and Axis Bank
has been considered for fundamental analysis. Income statement (Profit and Loss) and
Balance Sheet for last 5 year (2009-2013) has been taken for study. Values for Capital
Adequacy Ratio, Non-performing Loan ratio, Interest Expense To Total Debt ratio, Net
Interest Margin ratio, Loan-to-Deposit ratio, Return on Asset and Return on Equity has been
calculated with the help of MS-Excel. Also average, geometric mean and CAGR
(Compounded Annual Growth Rate) for each ratio for 5 years has been calculated. Each of
the ratios of all the 5 banks taken into consideration has been compared and comparison table
has been prepared. With the help of comparison table ranking has been given to each of the
bank. Analysis and recommendations has been given accordingly.
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2.4 Scope of study

Fundamental analysis attempts to find the actual value of a stock i.e. its ability to generate
future cash flows -- to make investment decisions. Fundamental analysis thus focuses on a
company's financial results. It helps the company a lot for knowing their proper & actual
position of the company.
Specifically, fundamental analysis emphasizes forecasts of company's earnings and revenue
growth rates, valuation ratios like price to earnings, and financial ratios like profit margins.
Fundamental analysis also looks to conditions in the industry sector(s) in which the company
operates and the broader economic outlook.
Fundamental analysis stands in stark contrast to technical analysis, which ignores company
fundamentals and looks only at the movement of stock prices and market activity. Both
fundamental analysis and technical analysis have their doctrinaire adherents who consider the
opposing approach useless. Most market pros, however, recognize that both fundamental
analysis and technical analysis have their role in forecasting stock prices.
Therefore fundamental analysis is very useful for every company to know that where they
exactly stand and then they decide where to go. So we can say that fundamental analysis
plays very important role in the success of every company.
Limitations of Study
The study is restricted only to the financial statements and analysis of financial
statements and unlike technical analysis it does not consider market fluctuation on
daily basis.
The complete project is based on secondary data available through internet, books and
journals.
Fundamental analysis of only 6 banks has been done in this study. One cant predict
credibility of any organization by just comparing it with its few peers. Detailed
comparison with all its peers has to be done.
Economic factors like inflation, recession, etc. are not taken into consideration.
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Ratios used in the Project

1) Capital Adequacy Ratio (CAR):
Capital Adequacy Ratio (CAR), also known as Capital to Risk (Weighted) Assets
Ratio (CRAR), is a ratio of a bank's capital to its risk. National regulators track a bank's CAR
to ensure that it can absorb a reasonable amount of loss and complies with statutory Capital
requirements.
Capital adequacy ratio is the ratio which determines the bank's capacity to meet the time
liabilities and other risks such as credit risk, operational risk etc. Banking regulators in most
countries define and monitor CAR to protect depositors, thereby maintaining confidence in
the banking system.
CAR is similar to leverage; in the most basic formulation, it is comparable to
the inverse of debt-to-equity leverage formulations. Unlike traditional leverage, however,
CAR recognizes that assets can have different levels of risk.
1. Tier I Capital: Actual contributed equity plus retained earnings.
2. Tier II Capital: Preferred shares plus 50% of subordinated debt.
Formula
Capital adequacy ratios (CARs) are a measure of the amount of a bank's core
capital expressed as a percentage of its risk-weighted asset.
Capital adequacy ratio is defined as:
CAR = (Tier 1 capital + Tier 2 capital) / Risk weighted assets

Where;
TIER 1 CAPITAL = (paid up capital + statutory reserves + disclosed free reserves) - (equity
investments in subsidiary + intangible assets + current & b/f losses)
TIER 2 CAPITAL = A) Undisclosed Reserves + B) General Loss reserves + C) hybrid debt
capital instruments and subordinated debts
where Risk can either be weighted assets or the respective national regulator's minimum
total capital requirement.
Two types of capital are measured: tier one capital, which can absorb losses without
a bank being required to cease trading, and tier two capital, which can absorb losses in the
event of a winding-up and so provides a lesser degree of protection to depositors.
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2) Non-Performing Loan (NPL):

It is sum of borrowed money upon which the debtor has not made his or her scheduled
payments for at least 90 days. A nonperforming loan is either in default or close to being in
default. If the debtor starts making payments again on a nonperforming loan, it becomes a
reperforming loan, even if the debtor has not caught up on all the missed payments.
By bank regulatory definition non-performing loans consist of:
other real estate owned which is taken by foreclosure or a deed in lieu of foreclosure,
loans that are 90 days or more past due and still accruing interest, and
Loans which have been placed on nonaccrual (i.e., loans for which interest is no
longer accrued and posted to the income statement).
In India, non-performing loans are usually the loans given to the agricultural sector where the
farmers can't pay back the loan or the interest amount due to lack of rain due to which they
don't have any crops to sell, due to floods etc.
How It Works/Example:
Let's assume Bank XYZ lent $1,000,000 to Company ABC, which much repay the loan in
monthly installments of $25,000. Company ABC makes payments on the loan for two years
and then encounters cash problems and stops making the payments.
Three months go by without a payment from Company ABC. At this point, Bank XYZ has a
nonperforming loan. The longer Company ABC goes without making a payment, the less
likely it is that Bank XYZ will ever get its money back.
Why It Matters:
Nonperforming loans are the bane of the lending world's existence. They represent debts that
are probably not going to be repaid, thus posing cash problems to their lenders.
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3) Interest Expense To Total Debt (IETTD):

The Interest Expense to Total Debt ratio measures the estimated interest rate the company is
paying on its total debt. This ratio assumes both Short Term Debt and Long Term Debt are
summed together, as the Interest Expense figure is usually shown on the income statement as
a summation of short and long-term interest expense.
Importance of Interest Expense to Total Debt:
The Interest Expense to Total Debt ratio should not change very much from quarter to
quarter, but you may see the ratio change from year to year. If this ratio rises quickly over a
given time period, this may indicate the company is paying a higher than normal interest rate
on this debt, and may point to credit problems within the company.
A decreasing Interest Expense to Total Debt ratio may indicate the company has either taken
on more debt at a lower interest rate, or they have been able to renegotiate the terms of their
debt. Acquisitions may also have a positive or negative affect on the overall interest rate, if
the company takes over the acquired company's debt.
IETTD = Interest Expense / (Short term Debt + Long term debt)
4) Net Interest Margin (NIM):

Net interest margin (NIM) is a measure of the difference between the interest income
generated by banks or other financial institutions and the amount of interest paid out to their
lenders (for example, deposits), relative to the amount of their (interest-earning) assets. It is
similar to the gross margin of non-financial companies.
NIM = (Interest Received Interest Paid) / Total debt

Example:
a) NIM is calculated as a percentage of interest bearing assets. For example, a bank's
average loan to customers was $100.00 in a year while it earned interest income of
$6.00 and paid interest of $3.00. The NIM then is computed as ($6.00 $3.00) /
$100.00 = 3%. Net interest income equals the interest earned minus the interest paid
out to customers.
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In particular, for a bank or a financial institution if the non-performing assets are high,
their NIM will go down as the interest earning assets are that much reduced by nonperforming assets.
5) Loan to Deposit ratio (LTD):

Advances to Deposits ratio or Loan-deposit ratio, also known as the LTD ratio, are a ratio
between the banks total loans and total deposits.
If the ratio is lower than 1, the bank relied on its own deposits to make loans to its customers,
without any outside borrowing. If, on the other hand, the ratio is greater than 1, the bank
borrowed money which it reloaned at higher rates, rather than relying entirely on its own
deposits. Banks may not be earning an optimal return if the ratio is too low. If the ratio is too
high, the banks might not have enough liquidity to cover any unforeseen funding
requirements or economic crises. It is a commonly used statistic for assessing a bank's
liquidity.
LTD = Advances / Deposits
6) Return on Assets (ROA):

The return on assets (ROA) is an indicator of how profitable a company is relative to its
total assets. ROA gives an idea as to how efficient management is at using its assets to
generate earnings. Calculated by dividing a company's annual earnings by its total assets,
ROA is displayed as a percentage. Sometimes this is referred to as "return on investment".
Return on assets is an indicator of how profitable a company is before leverage, and is
compared with companies in the same industry. Since the figure for total assets of the
company depends on the carrying value of the assets, some caution is required for companies
whose carrying value may not correspond to the actual market value. Return on assets is a
common figure used for comparing performance of financial institutions, because the
majority of their assets will have a carrying value that is close to their actual market value.
Return on assets is not useful for comparisons between industries because of factors of scale
and peculiar capital requirements.
This number tells you what the company can do with what it has. It's a useful number for
comparing competing companies in the same industry. The number will vary widely across
different industries. Return on assets gives an indication of the capital intensity of the
19
company, which will depend on the industry; companies that require large initial investments
will generally have lower return on assets.
ROA = Net Income / Total Assets

The assets of the company are comprised of both debt and equity. Both of these types of
financing are used to fund the operations of the company. The ROA figure gives investors an
idea of how effectively the company is converting the money it has to invest into net income.
The higher the ROA number, the better, because the company is earning more money on less
investment.
7) Return on Equity (ROE):

Return on Equity (ROE) means the amount of net income returned as a percentage of
shareholders equity. Return on equity measures a corporation's profitability by revealing how
much profit a company generates with the money shareholders have invested.
Return on Equity = Net Income/Shareholder's Equity
ROE is also known as "return on net worth" (RONW).
The ROE is useful for comparing the profitability of a company to that of other firms in the
same industry.
Return on equity (ROE) measures the rate of return on the shareholders' equity. It measures
a firm's efficiency at generating profits from every unit of shareholders' equity. ROE shows
how well a company uses investment funds to generate earnings growth. ROEs between 15%
and 20% are generally considered good.
Example:
Let's assume Company XYZ generated $4 million in net income last year. If Company XYZ's
shareholders' equity equalled $20 million last year, then using the ROE formula, we can
calculate Company XYZ's ROE as:
ROE = $4,000,000/$20,000,000 = 20%

This means that Company XYZ generated $0.20 of profit for every $1 of shareholders' equity
last year, giving the stock an ROE of 20%.
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Why It Matters:
ROE is more than a measure of profit; it's a measure of efficiency. A rising ROE suggests
that a company is increasing its ability to generate profit without needing as much capital. It
also indicates how well a company's management is deploying the shareholders' capital. In
other words, the higher the ROE the better it is. Falling ROE is usually a problem.
However, it is important to note that if the value of the shareholders' equity goes down, ROE
goes up. Thus, write-downs and share buybacks can artificially boost ROE. Likewise, a high
level of debt can artificially boost ROE; after all, the more debt a company has, the less
shareholders' equity it has (as a percentage of total assets), and the higher its ROE is.
21
Other parameters:
1)
Geometric Mean:
In mathematics, the geometric mean is a type of mean or average, which indicates the
central tendency or typical value of a set of numbers by using the product of their values (as
opposed to the arithmetic mean which uses their sum). The geometric mean is defined as
the nth root (where n is the count of numbers) of the product of the numbers.
For instance, the geometric mean of two numbers, say 2 and 8, is just the square root of their
product; that is 22 8 = 4. As another example, the geometric mean of the three numbers 4,
1, and 1/32 is the cube root of their product (1/8), which is 1/2; that is 34 1 1/32 = .
2) Compounded Annual Growth Rate (CAGR):

Compounded Annual Growth rate (CAGR) is a business and investing specific term
for the smoothed annualized gain of an investment over a given time period. CAGR is not an
accounting term, but remains widely used, particularly in growth industries or to compare the
growth rates of two investments because CAGR dampens the effect of volatility of periodic
returns that can render arithmetic means irrelevant. CAGR is often used to describe the
growth over a period of time of some element of the business, for example revenue, units
delivered, registered users, etc.
Where;
: Start value,
: Finish value,
: Number of years
OR
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Example:
Suppose the revenues of a company for four years, V (t) in above formula, have been:
Year
2004
2005
2006
2007
Revenues
100
115
150
200
= 2007 - 2004 = 3
Then the CAGR of revenues over the three-year period from the end of 2004 to the end of
2007 is:
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Banks and Calculation of Ratios:
1) State Bank of India:

State Bank of India (SBI) is a government-owned corporation with its headquarters in Mumbai,
Maharashtra. As of December 2012, it had assets of US$501 billion and 15,003 branches, including
180 foreign offices, making it the largest banking and financial services company in India by assets.
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 14 regional hubs and 57 Zonal
Offices that are located at important cities throughout the country. As of 28 June 2013, the bank had
180 overseas offices spread over 34 countries.
SBI is a regional banking has 20% market share in deposits and loans among Indian commercial
banks.
SBI has five associate banks viz. State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State
Bank of Mysore, State Bank of Patiala and State Bank of Travancore. All this associate banks are
listed individually in BSE and NSE.
SBI was ranked 285th in the Fortune Global 500 rankings of the world's biggest corporations for the
year 2012. The State Bank of India was named the 29th most reputed company in the world
according to Forbes 2009 ranking and 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.
AVERA
CAR
NPL
IETTD
NIM
LTD
ROA
ROE
2013
2012
2011
2010
7.23%
1.23%
5.83%
3.34%
85.57%
0.86%
14.65%
7.22%
0.78%
5.68%
3.68%
82.26%
0.87%
15.05%
6.51%
0.81%
4.87%
3.26%
80.16%
0.68%
13.42%
7.38%
0.29%
5.38%
2.70%
77.88%
0.83%
14.46%
2009 GE
7.29%
0.90%
5.82%
2.70%
74.15%
0.86%
15.44%
7.12%
0.80%
5.52%
3.14%
80.00%
0.82%
14.60%
G
mean
7.12%
0.72%
5.50%
3.11%
79.91%
0.82%
14.59%
CAGR
-0.18%
8.09%
0.07%
5.49%
3.65%
0.06%
-1.30%
24
2) Bank of Baroda:
Bank of Baroda (BoB) is an Indian state-owned banking and financial services company
headquartered in Vadodara. 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, investment banking, credit cards and asset
management. Its total global business was 8,021 billion as of 31 mar 2013, making it the
second largest Bank in India after State Bank of India. In addition to its headquarters in its
home state of Gujarat it has a corporate headquarter in the Bandra-Kurla
Complex in Mumbai.
Based on 2012 data it is ranked 715 on Forbes Global 2000 list. BoB has total assets in
excess of 3.58 trillion (short scale), 3,583 billion (long scale), a network of 4283 branches
(out of which 4172 branches are in India) and offices, and over 2000 ATMs.
The bank was founded on 20 July 1908. The bank was nationalised on 19 July 1969, by
the Government of India and has been designated as a profit-making public sector
undertaking (PSU).
Globally, the Bank has 100 branches/offices in 24 countries including 61 branches/offices of
the bank, 38 branches of its 8 subsidiaries.
The tagline of Bank of Baroda is "India's International Bank".
AVERA
CAR
NPL
IETTD
NIM
LTD
ROA
ROE
2013
2012
2011
2010
8.14%
1.06%
4.81%
2.35%
69.13%
0.85%
14.27%
8.19%
0.62%
4.74%
2.59%
74.39%
1.14%
18.29%
7.84%
0.63%
4.00%
2.74%
74.48%
1.21%
20.30%
7.27%
0.43%
4.25%
2.39%
72.25%
1.11%
20.04%
2009 GE
7.37%
0.92%
5.03%
2.66%
74.41%
1.00%
17.55%
7.76%
0.73%
4.56%
2.55%
72.93%
1.06%
18.09%
G
Mean
7.75%
0.70%
4.55%
2.54%
72.90%
1.05%
17.95%
CAGR
2.53%
3.70%
-1.10%
-3.07%
-1.82%
-4.09%
-5.04%
25
3) Bank of Maharashtra:
Bank of Maharashtra is established on 16 September 1935 with headquarter at Pune,
Maharashtra. It is founded with an authorized capital of 1 million. It commenced business
on 8 February 1936.
Today, Bank of Maharashtra has over 15 million customers across the length and breadth of
the country served through 1711 branches in 28 states and 2 union territories.
The bank's initial financial assistance to small units has given birth to many of today's
industrial houses. After nationalization in 1969, the bank expanded rapidly. The Bank has the
largest network of branches by any Public sector bank in the state of Maharashtra.
Bank offers Depository services and Demat facilities at 131 branches. Bank has a tie up with
LIC of India and United India Insurance Company for sale of Insurance policies. Bank has
achieved 100% CBS enabling anytime anywhere banking to its customers.
The Bank attained autonomous status in 1998. As a result, the bank has limited interference
of Government bureaucracy in its decision making process and internal affairs.
Averag G
CAR
NPL
IETTD
NIM
LTD
ROA
ROE
2013
2012
2011
2010
6.76%
1.30%
6.14%
2.83%
80.01%
0.66%
11.97%
6.70%
1.35%
5.85%
3.13%
73.26%
0.50%
9.21%
6.56%
0.75%
5.14%
2.82%
70.14%
0.44%
8.40%
5.37%
0.57%
5.20%
1.96%
63.69%
0.62%
15.33%
2009 e
5.56%
0.80%
5.79%
2.40%
65.63%
0.64%
14.91%
6.19%
0.95%
5.62%
2.63%
70.55%
0.57%
11.97%
Mean
6.16%
0.90%
5.61%
2.59%
70.31%
0.56%
11.62%
CAGR
0.05
0.13
0.01
0.04
0.05
0.01
-0.05
26
4) HDFC Bank:
HDFC Bank Limited is an Indian financial services company based in Mumbai,
Maharashtra that was incorporated in August 1994. HDFC Bank is the fifth largest bank in
India by assets and the largest bank by market capitalization as of 1 November 2012. The
bank was promoted by the Housing Development Finance Corporation, a premier housing
finance company of India. HDFC Bank is headquartered in Mumbai and as of June 30, 2013,
the Banks distribution network was at 3,119 branches and 11,088 ATMs in 1,891 cities /
towns and all branches of the bank are linked on an online real-time basis. As of December
2012 the bank had balance sheet size of Rs. 3837 billion. For the fiscal year 2011-12, the
bank has reported net profit of 5,167.07 crore (US$870 million), up 31.6% from the
previous fiscal.
It was among the first companies to receive an 'in principle' approval from the Reserve Bank
of India (RBI) to set up a bank in the private sector. The Bank started operations as a
scheduled commercial bank in January 1995 under the RBI's liberalization policies.
The Bank provides a wide range of commercial and transactional banking services, including
working capital finance, trade services, transactional services, cash management, etc. The
bank is also a leading provider of the above services to its corporate customers, mutual funds,
stock exchange members and banks. HDFC Bank was the first bank in India to launch an
International Debit Card in association with VISA and issues the Master Card Maestro debit
card as well. The Bank launched its credit card business in late 2001. By March 2009, the
bank had a total card base (debit and credit cards) of over 13 million.
Averag G
CAR
NPL
IETTD
NIM
LTD
ROA
ROE
2013
2012
2011
2010
11.28%
1.44%
5.87%
4.82%
83.50%
1.69%
18.83%
11.19%
1.20%
5.54%
4.58%
80.65%
1.55%
17.46%
12.08%
1.37%
4.23%
4.76%
77.22%
1.45%
15.70%
13.28%
1.96%
4.32%
4.67%
75.41%
1.37%
14.03%
2009 e
11.13%
2.04%
6.12%
5.10%
69.42%
1.23%
14.92%
11.79%
1.60%
5.22%
4.79%
77.24%
1.46%
16.19%
Mean
11.77%
1.57%
5.15%
4.78%
77.09%
1.45%
16.10%
CAGR
0.00
-0.08
-0.01
-0.01
0.05
0.08
0.06
27
5) ICICI Bank:
ICICI Bank Limited is a multinational financial services company headquartered
in Mumbai, India. It is the second largest bank in India by assets and third largest by market
capitalization. The Bank has a network of 3,350 branches and 10,486 ATM's in India, and has
a presence in 19 countries, including India.
ICICI Bank is India's largest private sector bank with total assets of Rs. 5,367.95 billion (US$
99 billion) at March 31, 2013 and profit after tax Rs. 83.25 billion (US$ 1,533 million) for
the year ended March 31, 2013.
ICICI Bank offers a wide range of banking products and financial services to corporate and
retail customers through a variety of delivery channels and through its specialized
subsidiaries in the areas of investment banking, life and non-life insurance, venture capital
and asset management.
ICICI Bank was established by the Industrial Credit and Investment Corporation of India, an
Indian financial institution, as a wholly owned subsidiary in 1994. The parent company was
formed in 1955 as a joint-venture of the World Bank, India's public-sector banks and publicsector insurance companies to provide project financing to Indian industry. The parent
company was later merged with the bank.
ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National
Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on
the New York Stock Exchange (NYSE).
Averag G
2013
2012
2011
2010
CAR
NPL
IETTD
NIM
13.82%
1.14%
5.80%
3.40%
104.83
13.83%
0.78%
5.64%
2.93%
103.61
14.20%
0.79%
5.02%
2.79%
14.70%
0.40%
5.80%
2.64%
12.62%
0.75%
7.56%
2.79%
101.63
2009 e
13.83%
0.77%
5.97%
2.91%
100.47
Mean
13.81%
0.73%
5.91%
2.90%
100.39
CAGR
0.02
0.11
-0.06
0.05
LTD
ROA
ROE
%
1.50%
14.73%
%
1.31%
12.95%
98.81%
1.18%
11.42%
93.46%
0.99%
9.44%
%
0.70%
7.17%
%
1.14%
11.14%
%
1.10%
10.81%
0.01
0.21
0.20
28
6) Axis Bank:
Axis Bank is the third largest private sector bank in India. Axis Bank offers the entire
spectrum of financial services to customer segments covering Large and Mid-Corporates,
MSME, Agriculture and Retail Businesses.
The Bank's Registered Office is situated in Ahmedabad and its Central Office is located at
Mumbai. The Bank has a large footprint of 1947 domestic branches and 11,245 ATMs
spread across the country as on 31st March 2013. The Bank also has overseas offices in
Singapore, Hong Kong, Shanghai, Colombo, Dubai and Abu Dhabi.
Axis Bank is one of the first new generation private sector banks to have begun operations in
1994, after the Government of India allowed new private banks to be established.
As on the year ended 31st March 2012, Axis Bank had an operating revenue of 13,437
crores and a net profit of 4,242 crores.
Banks Investment Banking business comprises activities related to Equity Capital Markets,
Mergers and Acquisitions and Private Equity Advisory. The bank is a SEBI-registered
Category I Merchant Banker and has been active in advising Indian companies in raising
equity through IPOs, QIPs, and Rights Issues etc. During the financial year ended 31 March
2012, Axis Bank undertook 9 transactions including 5 IPOs and 2 Open Offers.
Averag G
CAR
NPL
IETTD
NIM
LTD
ROA
ROE
2013
2012
2011
2010
12.59%
1.40%
5.91%
3.27%
78.12%
1.54%
15.78%
10.08%
0.92%
5.50%
3.16%
77.17%
1.48%
18.60%
10.20%
0.96%
3.99%
3.05%
75.28%
1.38%
17.70%
11.63%
0.87%
4.19%
3.16%
73.86%
1.37%
15.50%
2009 e
9.31%
0.92%
5.61%
2.89%
69.49%
1.23%
17.78%
10.76%
1.01%
5.04%
3.10%
74.78%
1.40%
17.07%
Mean
10.70%
1.00%
4.97%
3.10%
74.72%
1.39%
17.03%
CAGR
0.08
0.11
0.01
0.03
0.03
0.06
-0.03
29
COMPARABLES:
Banks
SBI
BOB
BOM
HDFC
ICICI
Axis Bank
Banks
G.Mean
Rank
NPL
CAGR
G.Mean
Rank
7.12
-0.18%
0.72
8.09%
7.75
2.53%
0.7
3.70%
6.16
5.01%
0.9
12.89%
11.77
0.35%
1.57
-8.33%
13.81
2.30%
0.73
11.09%
10.7
7.84%
10.97%
G.Mean
SBI
BOB
BOM
HDFC
ICICI
Axis Bank
Banks
SBI
BOB
BOM
HDFC
ICICI
Axis Bank
CAR
CAGR
IETTD
CAGR
Rank
G.Mean
NIM
CAGR
Rank
5.5
0.07%
3.11
5.49%
4.55
-1.10%
2.54
-3.07%
5.61
1.48%
2.59
4.24%
5.15
-1.05%
4.78
-1.40%
5.91
-6.42%
2.9
5.12%
4.97
1.34%
3.1
1.31%
G.Mean
LTD
CAGR
Rank
ROA
CAGR
G.Mean
Rank
79.91
3.65%
0.82
0.06%
72.9
-1.82%
1.05
-4.09%
70.31
3.20%
0.56
0.62%
77.09
1.07%
1.45
3.78%
100.39
1.07%
1.1
21.01%
74.72
1.10%
1.39
5.78%
30
G.Mean
SBI
BOB
BOM
HDFC
ICICI
Axis Bank
ROE
CAGR
Rank
14.59
-1.30%
17.95
-5.04%
11.62
-5.35%
16.1
5.99%
10.81
19.72%
17.03
-2.93%
Overall Ranking of the Banks
BANKS
RANK
CAR
NPL
SBI
BOB
BOM
IETTD
ROA ROE
Mean
Rank
NIM
LTD
3.57
4.43
5.00
HDFC
2.43
ICICI
2.57
Axis Bank
3.00
RANK
4
5
6
1
2
3
31
Comparison of performance of public sector banks with Bank Nifty

(Last) 5 years
Comparison of performance of Private sector banks with Bank Nifty

(Last) 5 years
32
33
ANALYSIS
1)
Capital Adequacy ratio (CAR):
Capital Adequacy Ratio (CAR), is a ratio of a bank's capital to its risk. Capital adequacy
ratio is the ratio which determines the bank's capacity to meet the time liabilities and other
risks such as credit risk, operational risk etc. Higher the ratio the better it is for the bank. Here
we can see CAR of ICICI bank is highest and CAR of Bank of Maharashtra is lowest. CAR
of private sector banks is better than CAR of Public sector banks.
34
2) Non-performing Loan (NPL):

Non-performing Loan are those assets of banks which are no longer performing for banks.
These are the debtors who turned bad. Lesser the NPL will be better for banks. Bank of
Baroda has lowest percentage of NPL, so BoB is ranked 1 in these criteria. HDFC bank has
highest percentage of NPL but on the other hand their CAGR of NPL is decreasing while it is
increasing for all other banks. As per NPL criteria BoB is the best bank and HDFC bank is
the worst.
35
3) Interest Expense to Total Liability (IETTL):

BoB and ICICI bank are on 1st and 5th rank respectively. Lessor the ratio better it is for the
bank. Bank of Baroda CAGR is -1.10% which means bank is paying lesser and lesser interest
from past 5 years. Also there was drastic decrease of around 1% from 2009 to 2011 and then
ratio again increased by around 0.8% from 2011 to 2013. ICICI Bank has negative CAGR of
IETTD. This means bank is paying lesser interest year on year.
36
4) Net Interest margin (NIM):

HDFC Bank and BoB are on 1st and 5th rank respectively. The higher the ratio better is for the
banks. Also BoB has negative NIM CAGR, so as per NIM criteria BoB is not good bank.
This means there is fewer margins between interest paid by borrower and interest paid to
debtors. HDFC Bank has highest NIM but CAGR of NIM for HDFC bank is decreasing. SBI,
BoM and ICICI has good NIM CAGR.
37
5) Loan to Deposit Ratio (LTD):

LTD shows percentage of deposits use by banks for allotting loans. ICICI bank has 100%
LTD means bank has utilized its entire deposit amount for allotting loans. This shows banks
efficiency in allotting loans also it may be concluded as bank is lenient in approving loans.
CAGR of LTD for SBI and BOM is above 3%, this is good indicator for these banks. Low
LTD means banks conservative in approving loans.
38
6) Return on Assets (ROA):

HDFC bank and BoM are on 1st and 5th rank respectively. Higher the ratio the better it is for
the bank. This ratio shows how efficiently bank utilizes its assets. HDFC Bank has highest
ROA. CAGR of ROA for ICICI bank is more than 20% for last five years. So as per ROA
criteria HDFC Bank and ICICI Bank are two good options.
39
7) Return on Equity (ROE):

ROE shows how well a company uses equity funds to generate earnings growth. ROEs
between 15% and 20% are generally considered good. Here ROE of BoB, HDFC Bank and
Axis Bankis above 15%. So as per ROE we can consider these banks are good for
investment. But ROE CAGR of all the banks except HDFC and ICICI is negative. Even
though ROE of ICICI bank is 10.81% but it is increasing at the rate of 19.72% in last 5 years.
40
Conclusion
The performance of selected 6 banks was evaluated and compared by CAMEL model.
The data comprised from April 1, 2009 to March 31, 2013. After taking mean ranking HDFC
Bank stood at 1st place, ICICI Bank at 2nd, Axis Bank of India at 3rd, State Bank of India at 4th
and Bank of Baroda stood 5 th and Bank of Maharashtra at last i.e. 6 th position in analysis.
This shows private sector banks are performing more efficiently than public sector banks.
41
ANNEXURES
SECONDARY DATA/TABLES:
1) State Bank of IndiaProfit & Loss A/c:
Mar '13
12 mths
Income
Interest Earned
Other Income
Total Income
Expenditure
Interest expended
Employee Cost
Selling and Admin Expenses
Depreciation
Miscellaneous Expenses
Preoperative Exp Capitalised
Operating Expenses
Provisions & Contingencies
Total Expenses
Mar '11
12 mths
Mar '10
12 mths
Mar '09
12 mths
1,67,978.14 1,47,197.39 1,13,636.44 1,00,080.73 91,667.02

32,581.69 31,205.10 34,342.60 30,748.11 22,055.34
2,00,559.83 1,78,402.49 1,47,979.04 1,30,828.84 1,13,722.36
1,06,817.91 89,319.55 68,086.40 66,637.51 62,626.47
24,401.09 22,084.03 19,979.58 16,331.06 12,997.19
0 19,756.75 16,046.14 10,675.76
7,311.30
1,577.49
1,371.61
1,380.55
1,321.56
924.46
49,440.35 29,884.38 31,288.22 23,842.40 18,684.03
0
0
0
0
0
52,819.80 60,883.26 57,369.79 48,637.25 30,182.18
22,599.13 12,213.51 11,324.70
3,533.53
9,734.80
1,82,236.84 1,62,416.32 1,36,780.89 1,18,808.29 1,02,543.45
Mar '13
Mar '12
Mar '11
Mar '10
Mar '09
12 mths
Net Profit for the Year

Minority Interest
Share Of P/ L Of Associates
Net P/ L After Minority Interest & Share Of Associates
Extraordionary Items
Profit brought forward
Total
Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per share data (annualised)
Earning Per Share (Rs)
Equity Dividend (%)
Book Value (Rs)
Appropriations
Transfer to Statutory Reserves
Transfer to Other Reserves
Proposed Dividend/ Transfer to Govt
Balance c/ f to Balance Sheet
Total
Mar '12
12 mths
12 mths
12 mths
12 mths
12 mths
18,322.99
638.44
-231.68
17,916.23
0
892.74
19,215.73
0
3,319.46
0
15,986.16
630.21
0
15,355.95
0
522.92
16,509.08
0
2,348.66
388.46
11,198.16
494.99
0
10,703.17
0
58.58
11,256.74
0
1,905.00
353.55
12,020.54
279.81
0
11,740.73
0
216
12,236.54
0
1,904.65
321.51
11,178.90
217.78
0
10,961.12
0
87.74
11,266.64
0
1,841.15
309.66
267.87
0
1,827.89
238.23
0
1,583.05
176.35
0
1,314.51
189.33
0
1,309.46
176.08
0
1,140.22
14,066.97
0
3,319.46
1,422.54
18,808.97
12,236.16
0
2,737.12
892.74
15,866.02
7,962.06
0
2,258.55
522.92
10,743.53
9,665.09
0
2,226.16
58.58
11,949.83
8,676.22
0
2,150.81
216
11,043.03
42
Balance Sheet: State Bank of India

Mar '13
12 mths
Capital and Liabilities:
Total Share Capital
Equity Share Capital
Share Application Money
Preference Share Capital
Init. Contribution Settler
Preference Share Application Money
Employee Stock Opiton
Reserves
Revaluation Reserves
Net Worth
Deposits
Borrowings
Total Debt
Minority Interest
Policy Holders Funds
Group Share in Joint Venture
Other Liabilities & Provisions
Total Liabilities
Assets
Cash & Balances with RBI
Balance with Banks, Money at Call
Advances
Investments
Gross Block
Accumulated Depreciation
Net Block
Capital Work In Progress
Other Assets
Minority Interest
Total Assets
Contingent Liabilities
Bills for collection
Book Value (Rs)
Mar '12
12 mths
671.04
671.04
0
0
0
0
0
1,05,558.97
0
1,06,230.01
Mar '11
12 mths
Mar '10
12 mths
Mar '09
12 mths
634.88
634.88
0
0
0
0
0
82,500.70
0
83,135.58
11,16,464.56
1,22,074.57
12,38,539.13
2,631.27
0
0
1,25,837.97
14,50,143.95
634.88
634.88
0
0
0
0
0
71,755.51
0
72,390.39
10,11,988.33
64,591.64
10,76,579.97
2,228.27
0
0
1,53,627.10
13,04,825.73
Mar '10
12 mths
Mar '09
12 mths
684.03
684.03
0
0
0
0
0
1,24,348.99
0
1,25,033.02
16,27,402.61
2,03,723.20
18,31,125.81
4,253.86
0
0
1,72,745.65
21,33,158.34
1,57,991.36
15,72,680.76
3,725.67
0
0
1,46,994.36
18,29,630.80
635
635
0
0
0
0
0
82,836.25
0
83,471.25
12,55,562.48
1,42,470.77
13,98,033.25
2,977.17
0
0
1,63,294.96
16,47,776.63
Mar '13
12 mths
Mar '12
12 mths
Mar '11
12 mths
14,14,689.40
89,574.03
79,199.21 1,19,349.83
82,195.58
74,161.07
55,653.70
48,391.62
35,977.62
39,653.42
51,100.63
13,92,608.03 11,63,670.21 10,06,401.55 8,69,501.64 7,50,362.38
5,19,393.19 4,60,949.14 4,19,066.45 4,02,754.13 3,72,231.45
9,369.93
19,619.76
17,543.26
15,886.95
14,063.96
0
12,593.09
11,402.13
10,359.09
9,127.29
9,369.93
7,026.67
6,141.13
5,527.86
4,936.67
0
381.3
345.7
486.03
286.81
66,559.46
69,803.58
60,615.96
50,025.30
51,746.73
0
0
0
0
0
0
0
0
0
0
21,33,158.34 18,29,421.73 16,47,898.24 14,50,143.96 13,04,825.74
9,06,599.60 7,76,754.01 6,87,540.57 5,56,675.30 7,34,943.70
2,30,090.67 2,40,811.53 2,34,065.24 1,97,108.13 1,75,677.61
1,827.89
1,583.05
1,314.51
1,309.46
1,140.22
43
2) Bank of Baroda:
Profit and Loss A/c
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
12 mths 12 mths 12 mths 12 mths 12 mths
Income
Interest Earned
Other Income
Total Income
Expenditure
Interest expended
Employee Cost
Depreciation
Operating Expenses
Total Expenses
36,442.06 30,488.49 22,513.31 17,234.82 15,547.56

4,510.62 4,099.89 3,284.66 2,966.47 2,845.67
40,952.68 34,588.38 25,797.97 20,201.29 18,393.23
24,486.41
3,615.95
0
321.7
7,778.14
0
6,306.36
5,409.43
36,202.20
19,724.34
3,117.27
2,676.24
295.48
3,558.77
0
7,051.53
2,596.23
29,372.10
13,349.60
3,018.46
1,981.65
259.7
2,769.36
0
5,931.82
2,097.35
21,378.77
11,023.34
2,426.34
1,709.56
242.75
1,649.50
0
4,916.34
1,111.81
17,051.49
10,167.35
2,408.86
969.64
239.44
2,276.68
0
4,036.69
1,857.93
16,061.97
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
12 mths 12 mths 12 mths 12 mths 12 mths
Minority Interest
Share Of P/ L Of Associates
Net P/ L After Minority Interest & Share Of Associates
Total
Preference Dividend
Equity Dividend
Equity Dividend (%)
Book Value (Rs)
Appropriations
Proposed Dividend/ Transfer to Govt
Balance c/ f to Balance Sheet
Total
4,750.48 5,216.29 4,419.20 3,149.79 2,331.27

24.79
20.84
20.21
13.14
10.84
-78.54
-53.12
-34.72
-42.65
-63.66
4,804.23 5,248.57 4,433.71 3,179.30 2,384.08
0
0
0
0
0
178.73
138.66
82.2
70.57
61.79
4,929.21 5,354.95 4,501.40 3,220.36 2,393.06
0
0
0
0
0
1,059.63
812.29
753.35
648.14
383.56
0
0
0
0
0
112.77
0
790.06
126.88
0
693.62
112.87
0
556.06
86.47
0
431.4
64
0
364.58
2,082.65 1,788.89 1,434.14 1,174.30 1,144.84

1,559.49 2,607.33 2,189.76 1,345.23
846.9
1,059.63
812.29
753.35
648.14
383.56
281.19
178.73
138.66
82.2
70.57
4,982.96 5,387.24 4,515.91 3,249.87 2,445.87
44
Balance Sheet: Bank of Baroda

Mar '13
12 mths
Total Share Capital
Reserves
Net Worth
Deposits
Borrowings
Total Debt
Minority Interest
Total Liabilities
Mar '12
12 mths
Mar '11
12 mths
Mar '10
12 mths
Mar '09
12 mths
422.52
412.38
392.81
365.53
365.53
422.52
412.38
392.81
365.53
365.53
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
32,859.25 28,103.92 21,379.55 15,349.06 12,914.99
0
0
0
0
0
33,281.77 28,516.30 21,772.36 15,714.59 13,280.52
4,82,638.89 3,92,615.95 3,11,603.25 2,45,951.15 1,96,608.44
26,552.94 23,598.06 22,378.33 13,404.27
5,644.85
5,09,191.83 4,16,214.01 3,33,981.58 2,59,355.42 2,02,253.29
110.05
91.18
72.91
59.42
46.43
0
0
0
0
0
0
0
0
0
0
16,804.67 12,590.52 10,386.92
9,049.71 16,730.97
5,59,388.32 4,57,412.01 3,66,213.77 2,84,179.14 2,32,311.21
Mar '13
12 mths
Mar '12
12 mths
Mar '11
12 mths
Mar '10
12 mths
Mar '09
12 mths
Assets
Advances
Investments
Gross Block
Net Block
Other Assets
Minority Interest
Total Assets
14,151.18 22,268.34 20,394.42 14,076.07 10,901.21

73,550.88 43,542.00 31,029.31 22,493.41 14,301.41
3,33,625.20 2,92,077.14 2,32,085.11 1,77,711.90 1,46,293.98
1,25,617.05 86,697.00 74,018.46 63,163.27 53,626.58
2,550.43
5,096.79
4,716.57
4,412.31
4,268.90
0
2,668.60
2,333.37
2,042.92
1,709.27
2,550.43
2,428.19
2,383.20
2,369.39
2,559.63
0
0
0
0
0
9,893.59 10,399.33
6,303.27
4,458.54
4,628.39
0
0
0
0
0
0
0
0
0
0
5,59,388.33 4,57,412.00 3,66,213.77 2,84,272.58 2,32,311.20
Book Value (Rs)
1,86,213.63 1,34,988.89 1,12,544.64

45,184.69 41,028.30 34,004.12
790.06
693.62
556.06
78,341.53
28,071.78
431.4
64,958.31
22,800.15
364.58
45
3) Bank of Maharashtra:
Profit and Loss A/c
Income
Interest Earned
Other Income
Total Income
Expenditure
Interest expended
Employee Cost
Depreciation
Operating Expenses
Total Expenses

Minority Interest
Share Of P/L Of Associates
Net P/L After Minority Interest & Share Of
Associates
Total
Preference Dividend
Equity Dividend
Equity Dividend (%)
Book Value (Rs)
Appropriations
Proposed Dividend/Transfer to Govt
Balance c/f to Balance Sheet
Total
Mar '13
12 mths
Mar '12
12 mths
Mar '11
12 mths
Mar '10
12 mths
Mar '09
12 mths
9,613.44
922.35
10,535.79
7,213.99
647.57
7,861.56
5,563.09
536.11
6,099.20
4,735.58
591.89
5,327.47
4,291.56
502.21
4,793.77
6,579.59
1,188.91
0
73.93
1,924.28
0
1,797.88
1,389.24
9,766.71
4,696.46
1,114.27
271.54
65.67
1,276.81
0
1,643.86
1,084.43
7,424.75
3,594.30
1,158.20
247.6
67.86
696.45
0
1,645.40
524.71
5,764.41
3,438.96
656.32
217.77
75.1
499.65
0
1,073.80
375.04
4,887.80
3,034.65
580.59
185.57
75.77
540.48
0
964.02
418.39
4,417.06
Mar '13
12 mths
Mar '12
12 mths
Mar '11
12 mths
Mar '10
12 mths
Mar '09
12 mths
769.09
0
0
436.81
0
0
334.8
0
0
439.67
0
0
376.71
0
0
769.09
436.81
334.8
439.67
376.71
0
454.98
1,224.07
49.98
152.14
34.35
0
370.28
807.09
55.86
129.71
30.1
0
286.2
621
0
125.93
20.92
0
129.09
568.76
0
86.1
14.63
0
263.77
640.48
0
64.58
10.98
10.87
0
88.25
6.46
0
64.09
6.95
0
61.3
10.21
0
56.04
8.75
0
48.17
378.54
445.35
236.47
163.7
1,224.06
136.45
0
215.67
454.98
807.1
98.53
5.34
146.85
370.28
621
150.74
31.09
100.73
286.2
568.76
435.84
-0.01
75.56
129.09
640.48
46
Balance Sheet : Bank of Maharashtra

Total Share Capital
Reserves
Net Worth
Deposits
Borrowings
Total Debt
Minority Interest
Total Liabilities
Assets
Advances
Investments
Gross Block
Net Block
Other Assets
Minority Interest
Total Assets
Mar '13
12 mths
Mar '12
12 mths
Mar '11
12 mths
Mar '10
12 mths
Mar '09
12 mths
1,249.48
661.48
0
588
0
0
0
5,176.37
0
6,425.85
94,330.21
12,877.49
1,07,207.70
0
0
0
3,347.17
1,16,980.72
1,177.59
589.59
0
588
0
0
0
3,189.38
375.03
4,742.00
76,521.96
3,824.75
80,346.71
0
0
0
2,947.11
88,035.82
1,069.71
481.71
0
588
0
0
0
2,471.03
443.55
3,984.29
66,838.90
3,076.56
69,915.46
0
0
0
2,555.09
76,454.84
430.52
430.52
0
0
0
0
0
1,982.27
454.57
2,867.36
63,294.96
2,796.95
66,091.91
0
0
0
2,104.69
71,063.96
430.52
430.52
0
0
0
0
0
1,643.39
452.19
2,526.10
52,249.88
190.01
52,439.89
0
0
0
4,072.55
59,038.54
Mar '13
Mar '12
Mar '11
Mar '10
Mar '09
12 mths
12 mths
12 mths
12 mths
12 mths
5,265.29
907.55
75,470.78
31,458.01
1,429.49
0
1,429.49
0
2,449.59
0
0
1,16,980.71
4,535.48
1,208.78
56,059.76
22,929.62
1,322.98
722.31
600.67
0
2,701.51
0
0
88,035.82
3,846.00
203.35
46,880.77
22,481.06
1,342.23
653.06
689.17
0
1,950.04
0
0
76,050.39
5,315.39
1,379.16
40,314.70
21,300.70
1,280.00
589.23
690.77
0
1,785.11
0
0
70,785.83
3,881.42
223.92
34,290.77
18,358.99
1,200.69
514.59
686.1
0
1,293.06
0
0
58,734.26
47
4) HDFC Bank:
Profit and Loss A/c:
Mar '13
12 mths
Income
Interest Earned
Other Income
Total Income
Expenditure
Interest expended
Employee Cost
Depreciation
Operating Expenses
Total Expenses

Minority Interest
Associates
Total
Preference Dividend
Equity Dividend
Equity Dividend (%)
Book Value (Rs)
Appropriations
Total
Mar '12
12 mths
Mar '11
12 mths
Mar '10
12 mths
Mar '09
12 mths
35,861.02 27,605.56 20,043.33 16,232.92 16,314.02

7,132.96
5,646.07 4,686.02
4,037.08 3,616.95
42,993.98 33,251.63 24,729.35 20,270.00 19,930.97
19,695.45 15,106.12
4,201.79
3,573.09
9,425.15
7,797.60
8,903.37
2,977.14
2,389.31
2,301.38
0
2,709.56 2,558.48
1,482.65 1,265.97
663.26
554.16
509.11
404.04
369.62
11,533.21 6,035.30 5,241.77
5,163.49 4,838.51
0
0
0
0
0
11,551.90 9,595.75 8,231.14
5,905.52 5,801.72
4,846.36
3,276.36 3,055.36
3,533.97 2,973.76
36,093.71 27,978.23 20,711.65 17,237.09 17,678.85
Mar '13
12 mths
Mar '12
12 mths
Mar '11
12 mths
Mar '10
12 mths
Mar '09
12 mths
6,900.28
33.52
-2.88
5,273.40
30.02
-3.64
4,017.69
32.24
-7.04
3,032.91
32.54
-3.27
2,252.13
6.35
-3.21
6,869.64
5,247.02
3,992.49
3,003.65
2,248.99
-4.47
-2.12
8,621.39
6,326.95
15,517.20 11,598.23
-2.65
4,625.23
8,640.27
-0.93
3,493.49
6,525.47
-0.59
2,608.68
4,860.22
1,309.66
222.74
1,009.52
163.89
768
124.68
549.6
91.36
425.51
72.35
29
0
154
22.47
0
128.74
86.36
0
549.97
66.26
0
472.23
52.94
0
345.29
1,805.58
1,260.33
672.64
516.72
1,532.40
1,173.41
11,475.94 8,621.39
15,486.56 11,571.85
1,002.82
392.63
892.68
6,326.95
8,615.08
935.15
294.86
640.96
4,625.23
6,496.20
641.25
224.48
497.86
3,493.49
4,857.08
48
Balance Sheet: HDFC Bank

Mar '13
Mar '12
Mar '11
Mar '10
Mar '09
12 mths
12 mths
12 mths
12 mths
12 mths
Total Share Capital
475.88
469.34
465.23
457.74
425.38
475.88
469.34
465.23
457.74
425.38
400.92
0.3
2.91
5.49
36,166.84
29,741.11
25,120.83
21,158.15
14,262.74
36,642.72
30,210.75
25,586.06
21,618.80
15,094.53
Preference Share Application

Money
Reserves
Net Worth
Deposits
Borrowings
Total Debt
Minority Interest
2,96,091.77 2,46,539.58 2,08,287.21 1,67,297.78 1,42,644.80

39,496.61
26,334.15
14,650.44
13,171.80
2,775.84
3,35,588.38 2,72,873.73 2,22,937.65 1,80,469.58 1,45,420.64

221.34
183.66
121.66
75.89
43.35
35,270.54
37,786.88
29,317.57
20,783.21
22,844.24
Total Liabilities
4,07,722.98 3,41,055.02 2,77,962.94 2,22,947.48 1,83,402.76

Mar '13
Mar '12
Mar '11
Mar '10
Mar '09
12 mths
12 mths
12 mths
12 mths
12 mths
14,630.88
14,991.63
25,100.89
15,483.31
13,527.22
12,900.28
6,183.53
4,737.39
14,594.88
4,009.94
Advances
2,47,245.12 1,98,837.53 1,60,831.42 1,26,162.73
99,027.37
Investments
1,10,960.41
96,795.11
70,276.67
58,508.28
58,715.15
Gross Block
6,555.63
6,024.90
5,328.86
4,777.65
4,019.68
3,782.32
3,646.99
3,127.91
2,628.59
2,287.40
Net Block
2,773.31
2,377.91
2,200.95
2,149.06
1,732.28
19,212.98
20,403.96
13,626.33
5,205.07
5,528.89
Minority Interest
Assets

Other Assets
Total Assets
4,07,722.98 3,39,589.67 2,76,773.65 2,22,103.33 1,82,540.85
6,98,064.34 8,44,393.94 5,59,718.86 4,66,309.73 3,96,639.98

Book Value (Rs)
48,163.51
39,610.71
28,869.10
20,940.13
17,939.62
154
128.74
549.97
472.23
345.29
49
5) ICICI Bank:
Profit & Loss A/c

Total Share Capital
Reserves
Net Worth
Deposits
Borrowings
Total Debt
Minority Interest
Total Liabilities
Mar '13
12 mths
Mar '12
12 mths
Mar '11
12 mths
Mar '10
12 mths
Mar '09
12 mths
1,153.64
1,153.64
0
0
0
1,152.77
1,152.77
0
0
0
1,151.82
1,151.82
0
0
0
1,114.89
1,114.89
0
0
0
1,463.29
1,113.29
0
350
0
4.48
67,604.29
0
68,762.41
3,14,770.54
1,72,888.22
4,87,658.76
1,705.76
0
0
1,16,694.79
6,74,821.72
2.39
60,121.34
0
61,276.50
2,81,950.47
1,61,296.62
4,43,247.09
1,427.72
0
0
98,240.10
6,04,191.41
0.29
54,150.38
0
55,302.49
2,59,106.00
1,25,838.86
3,84,944.86
1,358.22
0
0
92,162.28
5,33,767.85
Mar '13
Mar '12
Mar '11
Mar '10
Mar '09
12 mths
12 mths
12 mths
12 mths
12 mths
0
0
50,181.61 45,664.24
0
0
51,296.50 47,127.53
2,41,572.30 2,61,855.75
1,15,698.32 88,391.86
3,57,270.62 3,50,247.61
1,270.40
910.51
0
0
0
0
79,509.77 84,405.32
4,89,347.29 4,82,690.97
Assets
Advances
Investments
Gross Block
Net Block
Other Assets
Minority Interest
Total Assets
19,306.20 20,728.18 21,234.01 27,850.28 17,875.45

30,064.66 20,428.11 18,151.26 19,293.84 17,185.94
3,29,974.13 2,92,125.42 2,56,019.31 2,25,778.13 2,66,130.47
2,55,666.68 2,39,864.09 2,09,652.78 1,86,319.78 1,48,107.00
5,473.46 10,961.24 10,485.39
8,267.38
8,566.33
0
5,529.26
4,995.84
4,405.09
4,068.87
5,473.46
5,431.98
5,489.55
3,862.29
4,497.46
0
149.41
141.86
1,190.72
0
34,336.59 25,464.22 23,079.10 25,052.25 28,894.65
0
0
0
0
0
0
0
0
0
0
6,74,821.72 6,04,191.41 5,33,767.87 4,89,347.29 4,82,690.97
Book Value (Rs)
8,51,647.41 9,80,616.54 9,83,189.64 7,88,327.54 8,37,033.12

74,764.48 64,542.78 47,927.63 38,898.45 36,745.13
596.04
531.56
480.15
460.12
420.19
50
Balance Sheet: ICICI Bank

Mar '13
12 mths
Income
Interest Earned
Other Income
Total Income
Expenditure
Interest expended
Employee Cost
Depreciation
Operating Expenses
Total Expenses

Minority Interest
Associates
Total
Preference Dividend
Equity Dividend
Equity Dividend (%)
Book Value (Rs)
Appropriations
Total
Mar '12
12 mths
Mar '11
12 mths
Mar '10
12 mths
Mar '09
12 mths
44,884.59 37,994.86 30,081.40 30,153.71 36,250.71

29,319.81 29,041.10 31,966.18 29,053.72 28,345.55
74,204.40 67,035.96 62,047.58 59,207.43 64,596.26
28,285.41 25,013.25 19,342.57 20,729.19 26,487.25
5,629.09 5,101.27 4,392.60 3,678.43 3,904.30
0
625.48
29,534.54
0
30,207.06
5,582.05
64,074.52
3,828.77
671.44
24,483.60
0
30,630.96
3,454.12
59,098.33
4,786.65
739.68
26,467.90
0
33,357.99
3,028.84
55,729.40
7,347.40
762.87
21,846.12
0
32,207.77
1,427.05
54,364.01
9,002.27
806.68
21,016.33
0
32,097.35
2,632.23
61,216.83
Mar '13
12 mths
Mar '12
12 mths
Mar '11
12 mths
Mar '10
12 mths
Mar '09
12 mths
10,129.88 7,937.63 6,318.19 4,843.41 3,379.42

526.27
294.7
224.93
173.12 -197.53
0
0
0
0
0
9,603.61 7,642.94 6,093.27 4,670.29 3,576.95
-0.25
-0.43
-2.17
-0.09
-0.58
6,804.87 4,007.76 1,688.64
537.17
549.68
16,934.50 11,944.96 8,004.66 5,380.49 3,928.52
0
0
0
0
0
2,307.23 1,902.04 1,612.58 1,337.86 1,224.58
394.04
325.72
264.17
228.47
208.37
87.81
0
596.04
68.86
0
531.56
54.86
0
480.15
2,921.88
455.62
2,701.27
10,329.46
16,408.23
2,358.07
187.79
2,227.76
6,876.65
11,650.27
1,827.29
67.94
1,876.75
4,007.76
7,779.74
43.44
0
460.12
30.36
0
420.19
1,900.22 2,045.42
52.18
110.51
1,566.33 1,432.95
1,688.64
537.17
5,207.37 4,126.05
51
6) Axis Bank:
Profit and Loss A/c
Mar '13
Mar '12
Mar '11
Mar '10
Mar '09
12 mths
12 mths
12 mths
12 mths
12 mths
Total Share Capital
467.95
413.2
410.55
405.17
359.01

467.95
413.2
410.55
405.17
359.01

Reserves
Revaluation Res erves
Net Worth
Deposits
Borrowings
Total Debt
Minority Interest
0.17
1.21
32,690.42
22,268.51
18,484.06
15,583.76
9,835.49
33,158.37
22,681.71
18,894.61
15,989.10
10,195.71
2,52,149.12 2,19,987.68 1,89,166.43 1,41,278.66 1,17,357.66

44,105.10
34,071.67
26,267.88
17,169.55
10,185.48
2,96,254.22 2,54,059.35 2,15,434.31 1,58,448.21 1,27,543.14

12.53
11,132.61
8,675.44
8,237.73
6,149.35
9,958.33
Total Liabilities
3,40,557.73 2,85,416.50 2,42,566.65 1,80,586.66 1,47,697.18

Mar '13
Mar '12
Mar '11
Mar '10
Mar '09
12 mths
12 mths
12 mths
12 mths
12 mths
14,792.11
10,702.92
13,886.16
9,473.88
9,419.21
5,707.81
3,231.31
7,522.49
5,734.54
5,600.19
Advances
1,96,990.14 1,69,759.54 1,42,407.83 1,04,343.12
81,556.77
Investments
1,13,378.06
92,921.44
71,787.55
55,876.55
46,271.75
Gross Block
2,387.33
3,612.76
3,455.94
2,127.60
1,754.18
Assets
Net Block
Other Assets
Minority Interest
1,408.44
1,185.99
948.99
729.31
2,387.33
2,204.32
2,269.95
1,178.61
1,024.87
79.82
22.96
57.38
57.51
7,302.28
6,517.16
4,669.70
3,922.59
3,766.86
Total Assets
3,40,557.73 2,85,416.51 2,42,566.64 1,80,586.67 1,47,697.16
5,25,321.87 4,49,977.02 4,29,071.06 3,01,742.05 1,93,311.59

Book Value (Rs)
50,696.47
64,895.87
57,400.80
35,756.32
15,948.73
708.58
548.92
460.23
394.62
283.97
52
Balance Sheet: Axis Bank

Mar '13
Mar '12
Mar '11
Mar '10
Mar '09
12 mths
12 mths
12 mths
12 mths
12 mths
Income
Interest Earned
Other Income
Total Income
27,201.98 21,994.90 15,154.86 11,639.05 10,829.11

6,832.80
5,487.19
4,671.45
3,964.21
2,915.93
34,034.78 27,482.09 19,826.31 15,603.26 13,745.04
Expenditure
Interest expended
Employee Cost
Depreciation
Operating Expenses
Total Expenses

Minority Interest
Associates
Total
Preference Dividend
17,513.39 13,969.18
8,588.61
6,632.63
7,148.92
2,675.37
2,254.02
1,745.80
1,359.79
1,067.76
2,503.60
2,426.88
2,455.85
1,581.13
358.77
348.15
293.69
237.87
190.22
8,253.47
4,188.63
3,426.66
2,438.98
1,944.08
7,140.53
6,960.32
5,815.60
5,119.43
3,606.01
4,147.08
2,334.08
2,077.43
1,373.06
1,177.18
28,801.00 23,263.58 16,481.64 13,125.12 11,932.11

Mar '13
Mar '12
Mar '11
Mar '10
Mar '09
12 mths
12 mths
12 mths
12 mths
12 mths
5,233.79
4,218.51
3,344.67
2,478.14
1,812.93
0.25
-1.22
-1.27
4.77
5,234.76
4,219.78
3,339.91
2,478.14
1,812.93
7,312.78
4,864.45
3,371.63
2,328.95
1,537.20
12,546.57
9,082.96
6,716.30
4,807.09
3,350.13
987.48
770.26
670.48
567.47
420.52
111.84
102.09
81.47
61.16
50.5
708.58
548.92
460.23
394.62
283.97
1,500.49
1,112.46
836.95
867.43
600.62
14.17
1.06
339.66
0.56
0.04
987.48
770.26
670.48
567.47
420.52
10,045.40
7,200.45
4,864.45
3,371.63
2,328.95
Total
12,547.54
9,084.23
6,711.54
4,807.09
3,350.13
Equity Dividend
Equity Dividend (%)
Book Value (Rs)
Appropriations
53
References:
http://www.investopedia.com/
http://www.bseindia.com/
www.moneycontrol.com
www.wikipedia.org
BIBLIOGRAPHY:
Understanding Financial Ratios in Business By Raghu Palat
54

Fundamental Analysis of Banking Sector

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Fundamental Analysis of Banking Sector

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Fundamental Analysis of Selected Banks in India

Submitted in partial fulfillment of the requirements

Name: Siddhesh Digambar Bandekar

IES Management College and Research Centre

: (INPUT THE CORRECT DATE)

: (MMS I Sem II)

Roll No. : M-12-04

Certificate from the company

Certificate from the Faculty Guide

1.1 Fundamental Analysis

Is the companys/industry revenue growing?

Is it actually making a profit?

Is it in a strong-enough position to beat out its competitors in the future?

Is it able to repay its debts?

Introduction to Banking Industry

Current Status of Indian Banking Sector

2.2 Objective Of the study

CAMEL Rating System:

Liquidity (also called asset liability management)

Importance of CAMEL RATING SYSTEM in BANKS

2.4 Scope of study

Ratios used in the Project

CAR = (Tier 1 capital + Tier 2 capital) / Risk weighted assets

2) Non-Performing Loan (NPL):

3) Interest Expense To Total Debt (IETTD):

IETTD = Interest Expense / (Short term Debt + Long term debt)

4) Net Interest Margin (NIM):

NIM = (Interest Received Interest Paid) / Total debt

5) Loan to Deposit ratio (LTD):

LTD = Advances / Deposits

6) Return on Assets (ROA):

ROA = Net Income / Total Assets

7) Return on Equity (ROE):

ROE = $4,000,000/$20,000,000 = 20%

2) Compounded Annual Growth Rate (CAGR):

Banks and Calculation of Ratios:

1) State Bank of India:

Overall Ranking of the Banks

Comparison of performance of public sector banks with Bank Nifty

Comparison of performance of Private sector banks with Bank Nifty

Capital Adequacy ratio (CAR):

2) Non-performing Loan (NPL):

3) Interest Expense to Total Liability (IETTL):

4) Net Interest margin (NIM):

5) Loan to Deposit Ratio (LTD):

6) Return on Assets (ROA):

7) Return on Equity (ROE):

1,67,978.14 1,47,197.39 1,13,636.44 1,00,080.73 91,667.02

Net Profit for the Year

Balance Sheet: State Bank of India

36,442.06 30,488.49 22,513.31 17,234.82 15,547.56

4,750.48 5,216.29 4,419.20 3,149.79 2,331.27

2,082.65 1,788.89 1,434.14 1,174.30 1,144.84

Balance Sheet: Bank of Baroda

14,151.18 22,268.34 20,394.42 14,076.07 10,901.21

1,86,213.63 1,34,988.89 1,12,544.64

Net Profit for the Year

Balance Sheet : Bank of Maharashtra

Capital and Liabilities:

Net Profit for the Year

35,861.02 27,605.56 20,043.33 16,232.92 16,314.02

Balance Sheet: HDFC Bank

Total Share Capital

Equity Share Capital