Upload
darshana-gade
View
104
Download
1
Tags:
Embed Size (px)
Citation preview
Accounting policy of a bank, valuation of a bank are different from other firms.
Enterprise Value = Debt + Equity It is hard to calculate the working capital of
the bank. Raw Material for bank is borrowings &
lending The price of bank’s stock is dependent on
the growth in dividend
Originated in the first decade of 18th century with The General Bank of India coming into existence in 1786.
The oldest bank in existence in India is the State Bank of India established in 1806.
The first fully Indian owned bank was the Allahabad Bank, which was established in 1865.
The Reserve bank Of India formally took on the responsibility of regulating the Indian banking sector from 1935.
Early HistoryBanking in India remained the exclusive domain of Europeans until the beginning of the 20th century
During warAt least 94 banks in India failed during the years 1913 to 1918 because of first world war
Post IndependenceIn 1948, the Reserve Bank Of India was nationalized.
NationalizationNationalized the 14 largest commercial banks
LiberalizationGave licenses to a small number of private banks
Scheduled commercial banks- 88 Public sector banks- 28 Private banks- 29 Foreign banks- 31 Public sector banks hold over 75 percent of
total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively.
• The economic reforms undertaken in the last 15 years have brought about a considerable improvement in the health of banks an
• d financial institutions in India.• Foreign direct investment in private banks
has been increased from 49% to 74% & foreign institutional investment in private banks is 49%.
• Vacancies
Andhra Bank State Bank of
Mysore Allahabad Bank Vijaya Bank Punjab National
Bank HDFC Bank, UTI
Bank ICICI Bank Kotak Mahindra
Centurion Bank of Punjab
Citibank Standard HSBC ABN AMRO and American Express
Fundamental analysis is the examination of the underlying forces that affect the well being of the economy, industry groups, and companies.
Fundamental Analysis involves examining the economic, financial and other qualitative and quantitative factors related to a security in order to determine its intrinsic value.
Primary assumptions –
Price on the stock market does not fully reflect a stock’s “real” value. Also called as Intrinsic Value
The market price of a stock tends to move towards it's “real value” or “intrinsic value”.
Major assumptions of fundamental analysis: In the long run, the stock market will reflect the fundamentals.
• QUALITATIVE ANALYSIS• Customers • Market Share • Industry Growth • Competition• Regulation
• QUANTITATIVE ANALYSIS Balance Sheet Profit & Loss Statement Cash Flow Statement Ratio Analysis
Long-term Trends
Value Spotting
Business insights
Knowing Who's Who
DESCRIPTION SBI ICICI PNB
Industry Public Bank Private Bank Public Bank
Mkt Cap Rs.197,326 Cr Rs.129,485 Cr Rs.40,696 Cr
Chairman O P Bhatt K V Kamath K R
Kamath
Managing
Director
S.K Bhattacharyya
Chanda D Kochhar K R
Kamath
Company Secretary
Sandeep Batra
Listing BSE, NSE BSE, NSE BSE, NSE
59.40%17.20%
14.90%
2.70%5.90%
Shareholding Pattern of SBI
Promotors
Domestic InstitutesFiis
Non PromotorsOthers
0%
6.42%
38.68%
2.66% 5.99%
Shareholding Pattern of ICICI
Promotors
Domestic Institutions
FIIs
Non Promotors
Others
PARTICULARS SBI ICICI PNB
P/E 14.78 36.10 8.43
ROE (%) 13.89 -26.54 24.06
EPS 144.37
36.10 123.86
EPS GROWTH (%) 0.48 6.93 26.34
NET PROFIT GROWTH (%)
20 17 28
PARTICULARS SBI ICICI PNB
DPS 30 12 22
BOOK NAV/SHARE 1038.76 463.01 514.77
CASA (%) 42.94 42.1 40.85
Current market price (2010)
3094 1115.6 1286.4