Corporate Financial

Management-Term
Paper
Presented By:
Group:
Ch. Teja Srinivas (141111)
K. Manasa (141123)
P.Kapil (141139)
Janada (141148)
Victor Dhar (141149)

Introduction
Sector: Banking
Name of Banks: ICICI, HDFC, ING VYSYA, IDBI,
ANDHRA
Topics :
Policy Dividend Ratio
Working Capital
Capital Structure
Investment and Diversification Decision

Policy Dividend Ratios

Dividend Payout Ratio: The percentage of earnings paid to shareholders
in dividends.
Calculated as:
DPR= Yearly Dividend per share/ Earnings per share
20122013
20132014

ING

HDFC

IDBI

ICICI

ANDHRA

0.00%

22.84%

24.78%

27.71%

3.68%

14.94%

22.73%

14.30%

27.07%

2.80%

Dividend Yield Ratio

The
dividend yield ratio of a share is the dividend per share divided by
the market price per share.
Dividend yield ratio = * 100

20122013
20132014

ING

HDFC

IDBI

ICICI

ANDHRA

0.00%

0.64%

0.049%

1.20%

0.898%

0.086%

0.79%

0.014%

1.89%

0.344%

Working Capital:

A measure of both a company's efficiency and its shortterm financial health. The working capital is
calculated as:
Working capital = Current assets Current liabilities
Current Assets: A balance sheet account that
represents the value of all assets that are reasonably
expected to be converted into cash within one year in the
normal course of business.

Current Liabilities: A company's debts or obligations

that are due within one year. Current liabilities appear on
the company's balance sheet and include short term
debt, accounts payable, accrued liabilities and other
debts.
All the values are in Crores
ING
HDFC
20122013
20132014

IDBI

ICICI

7.07

46.62

91.64

28.59

ANDHR
A
10.73

10.27

53.19

72.51

11.55

12.44

Working Capital (Contd)

2012-2013
91.64

46.62

28.59

10.73

7.07
ING

HDFC

IDBI

ICICI

ANDHRA

Working Capital (Contd)

2013-2014
72.51

53.19

10.27

ING

HDFC

IDBI

11.55

12.44

ICICI

ANDHRA

Working Capital Comparison

Working Capital
91.64

72.51

53.19
46.62

28.59

11.55

10.27

7.07
ING

HDFC

IDBI
2012-2013

ICICI
2013-2014

10.73

12.44

ANDHRA

Capital Structure:
Thecapital structureis how a firm finances
its overall operations and growth by using
different sources of funds. Debt comes in the
form of bond issues or long-term notes
payable, while equity is classified as common
stock, preferred stock or retained earnings.

Capital Structure:
YEAR

EQUITY(Rs)

DEBT(Rs)

2013-2014 Rs.1886356 Rs.96684770

2012-2013 Rs.1548535 Rs.65112581
2011-2012 Rs.1501238 Rs.56964884

Trend Equity & Debt

180%
160%

YEAR
2013-2014

TREND IN
EQUITY
125%

TREND IN
DEBT
169%

140%
120%
100%
80%
60%

2012-2013
2011-2012

103%
100%

114%
100%

40%
20%
0%

2013-2014

2012-2013

TREND IN EQUITY

2011-2012

TREND IN DEBT

Capital Structure Contd.

YEAR
2013-2014

EQUITY
(Rs000.)
434786270

DEBT
(Rs000.)
807833960

2012-2013

362141484

678707643

2011-2012

299243735

612783776

YEAR

TREND IN
TREND IN
EQUITY
DEBT
2013-2014 145.295028 131.8301808
5
2012-2013 121.018902 110.758096
5
2011-2012
100
100

Capital Structure Contd.

YEAR
20132014
20122013
2011YEAR
2012
20132014
20122013
20112012

EQUITY(Cr. DEBT(Cr.)
)
Rs.1603.9 Rs.60146.2
4
9
Rs.1332.7 Rs.65809.8
5
7
Rs.1278.3 Rs.53477.6
TREND
TREND
8 IN
4 IN
EQUITY
DEBT
120.34
91.39

Trend in capital structure

140
120
100
80
60
40
20
0

104.25

123.05

100

100

Trend in equity

Trend in Debt

Capital Structure Contd.

YEAR
20132014
20122013
20112012
YEAR
20132014
20122013
20112012

EQUITY
(Rs000.)
1155.04
1153.64

DEBT
(Rs000.)
183542.07
172888.22
161296.62

1152.77
TREND IN
EQUITY
100.121

TREND IN
DEBT
106.162

100.075

107.186

100.082

128.177

Trend Equity & Debt

140
120
100
80
60
40
20
0
2013-2014

2012-2013

TREND IN EQUITY

2013-2014

TREND IN DEBT

Capital Structure Contd.

YEAR
2013-2014

EQUITY
(Rs000.)
5896149

DEBT
(Rs000.)
131850944

2012-2013

5595804

111193389

2011-2012

5595804

82405572

Trend in Capital Structure

160
140
120
100

YEAR
2013-2014

TREND IN
EQUITY
105.36

TREND IN
DEBT
118.57

2012-2013

100

134.93

2011-2012

100

100

80
60
40
20
0

2011-2012

2012-2013
TREND IN EQUITY

2013-2014
TREND IN DEBT

INVESTMENT DIVERSIFICATION:

Investment diversificationmeans reducing non

systematicriskbyinvestingin a variety ofassets. If the asset values do not
move up and down in perfect synchrony, a diversifiedportfolio will have less
risk than theweighted averagerisk of its constituent assets, and often less
risk than the least risky of its constituent.
NON CURRENT ASSETS:
A company's long-term investments, in the case that the full value will not
be realized within the accounting year. Noncurrent assets are capitalized
rather than expensed, meaning that the company allocates the cost of the
asset over the number of years for which the asset will be in use, instead of
allocating the entire cost to the accounting year in which the asset was
purchased.

INVESTMENT DIVERSIFICATION
Contd.
ING

HDFC

IDBI

ICICI

ANDHR
A

20122013

499601
7

217174
899

108520. 585640. 388737

81
81
93

20132014

524512
5

280645
214

114472. 654951. 489950

57
22
51