Analysis of Banking Industry

• Presented By-

Santanu Banik
Gourab Biswas
Asish Kr. Roy
Types of Bank

Central Bank
 A bank which is entrusted with
with the functions of guiding
and regulation the banking
system of the country is known
as Central Bank.

Commercial Bank
 Commercial banks are three
types

Public sector Bank

Private sector Bank

Foreign Bank

Development Bank
 Types of Bank

Central Bank
 A bank which is entrusted with with the functions of
guiding and regulation the banking system of the country
is known as Central Bank.

Commercial Bank
 Commercial banks are three types

Public sector Bank

Private sector Bank

Foreign Bank

Development Bank
 Development Bank
 Businesses often requires medium and long term capital
for purchasing of equipment, machinery, technological
advancement purpose or expansion purpose. And such
financial assistance is provided by Development Banks.
 Co-operative Bank
 There are three types of Cooperatives banks operating in
our country.
 Central credit society
 Central co-operative bank
 State Co-operative Bank
 Specialized Bank
 There are some bank which cater the requirement
and provide overall support. These banks usually
involved in many activities.
 Export and Import Bank
 Small Industrial Development Bank of India(SIDBI)
 National Bank for Agricultural And Rural Development
 (NABARD)
 GUIDELINES FOR FOREIGN DIRECT
INVESTMENT
(FDI) IN THE BANKING SECTOR

• Limit for FDI under automatic route in private sector

banks-
a. In terms of the Press Note no. 4 (2001 series)
dated May 21, 2001 issued by Ministry of Commerce
& Industry,Government of India, FDI up to 49% from
all sources will be permitted in private sector banks
on the automatic route, subject to conformity with
the guidelines issued by RBI from time to time.
b. For the purpose of determining the above-
mentioned ceiling of 49% FDI under the
"automatic route" in respect of private sector
banks, following categories of shares will be
included.
• 1. IPOs,
• 2. Private placements,
• 3. ADRs/GDRs, and
• 4. Acquisition of shares from existing
shareholders [subject to (d) below]
C. It may be further clarified that, as per Government of India
guidelines, automatic route is not applicable to transfer of
existing shares in a banking company from residents to non-
residents. This category of investors require approval of FIPB
followed by "in principle" approval by Exchange Control
Department(ECD), RBI. The "fair price" for transfer of existing
shares is determined by RBI broadly on the basis of SEBI
guidelines for listed shares and rest while CCI guidelines for
unlisted shares. After receipt of "inprinciple" approval, the
resident seller can receive funds and apply to ECD, RBI for
obtaining final permissionfor transfer of shares.
d. Foreign banks having branch presence in India
are eligible for FDI in the private sector banks
subject tothe overall cap of 49% mentioned above
with the approval of RBI.
 Limit for FDI in public sector banks

• FDI and portfolio investment in nationalised

banks are subject to overall statutory limits of
20% as provided underSection 3 (2D) of the
Banking Companies (Acquisition and Transfer
of Undertakings) Acts, 1970/80. The
sameceiling would also apply in respect of
such investments in State Bank of India and
its associate banks.
• Voting rights of foreign investorsIn terms of the
statutory provisions under the various banking
acts, the voting rights, when exercised, which
arestipulated as under:
• 1. Private sector banks - [Section 12 (2) of
Banking Regulation Act, 1949] No person
holding shares, in respect of any share held by
him, shall exercise voting rights on poll in
excess of tenper cent of the total voting rights of
all the share holders
• The public sector bank holds over 75% of total
assets of banking Industry.
• Private and foreign bank hold 18.2% and 6.2%
respectively.
FDI for the List of Public Banks
FDI for the List of Private Banks
Bank PE Ratio EPS Net Profit Margin Market Capitalization Return on Avg. equity

State bank of 22.17 144.37 10.54 205743.18 13.89

India

Bank of Baroda 11.82 83.67 15.37 36144.29 20.24

HDFC Bank 36.08 64.42 14.76 107020.2 13.7

Induslnd Bank 32.16 8.53 10.63 12763.18 16.19

Oriental Bank 10.74 45.29 9.9 12535.02 15.49

PNB 10.75 123.86 15.64 42573.38 24.06

Syndicate bank 8.81 15.58 7.22 7357.59 15.57

corporation Bank 9.49 81.59 14.05 11223.2 20.26

Indian bank 8.37 36.18 17.03 13040.13 22.79

ICICI Bank 31.35 36.1 12.17 127469 7.79

Allahabad Bank 9.31 27.01 12.07 11518.16 20.5

Andhra Bank 8.33 21.56 14.17 9008.88 23.71

 Performance in BSE
Bank Current Market Price 52 weeks High Price 52 weeks Low Price Today Per (%)of Change

State bank of India 3240.05 3322 1863 1.22

Bank of Baroda 988.9 1003 467.2 0.03

HDFC Bank 2313.45 2518 1550 -0.45

Induslnd Bank 274.95 288 109.25 0.22

Oriental Bank 500.4 522 224.5 2.92

PNB 1350.25 1360.2 819 1.42

Syndicate bank 140.95 138.7 77 2.66

corporation Bank 782.65 785 402.3 1.04

Indian bank 303.4 316.5 145.5 0.2

ICICI Bank 142.1 1173.65 756.25 0.91

Allahabad Bank 257.85 254.95 111.05 2.52

Andhra Bank 185.75 181 94.65 3.37

 Performance in NSE
Bank Current Market Price 52 weeks High Price 52 weeks low Price Today Per (%)of Change

         

State bank of India 3239.2 3324.85 1863.1 1.03

Bank of Baroda 987.05 1002.4 467 -0.27

HDFC Bank 2304.7 2539.9 1549 -0.94

Induslnd Bank 274.8 288 109.25 0.11

Oriental Bank 500.4 522 224.5 2.92

PNB 1350.85 1354.9 1335 1.39

Syndicate bank 141.05 139 76.55 2.62

corporation Bank 784.3 784 401 1.74

Indian bank 303.9 316.25 146.55 0.36

ICICI Bank 1142.1 1157.9 1135 0.91

Allahabad Bank 258.05 255.2 111.1 2.6

Andhra Bank 186 187.5 94.2 3.13

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