Scp Performance

7/28/2019 Scp Performance

1/5

PERFORMANCE

According to SCP concept , conduct of a firm determines performance of the firm. If a firm is

spending more on advertising , it will result in more sales and hence more profits. We will

study profits of all public , private and foreign sector banks by some profitability measures.

Profit Interest earned RoA RoI Business per employee

PROFIT (in lakhs)

SBI & its associates 1533360

ICICI BANK 646530

HDFC BANK 516710

BANK OF BARODA 500700

PUNJAB NATIONAL BANK 488420

AXIS BANK 424220

CANARA BANK 328270BANK OF INDIA 267750

IDBI BANK LTD. 203160

HONG KONG & SHANGHAI BANKING

CORPORATION

198770

CITIBANK 192200

ALLAHABAD BANK 186680

UNION BANK OF INDIA 178710

INDIAN BANK 174700

STANDARD CHARTERED BANK 173580

CORPORATION BANK

150600

In terms of profits SBI leads the banking sector . ICICI Bank , HDFC Bank , Bank of Baroda

and Punjab National Bank are next in terms of profits. Though SBI leads in terms of profit it

has less CAGR( compound annual growth rate) compared to other banks. ICICI Bank &

HDFC Bank have high CAGR. It means though their profits are less, but they are growing at

faster rate.

Interest Earned (2012)


2/5

Sbi & its associates 14348790

PUNJAB NATIONAL BANK 3642800

ICICI BANK 3354270

CANARA BANK 3085060

BANK OF BARODA 2967370

BANK OF INDIA 2848070

HDFC BANK 2728640

IDBI BANK LTD. 2336990

AXIS BANK 2199460

UNION BANK OF INDIA 2114430

CENTRAL BANK OF INDIA 1914950

INDIAN OVERSEAS BANK 1789710

ORIENTAL BANK OF COMMERCE 1581490

ALLAHABAD BANK 1552330

SYNDICATE BANK 1526840

The list is very similar to list of Profit.

RoA

RoA is net profit upon Total Assets.

AB BANK 7.05

OMAN INTERNATIONAL BANK 6.09MASHREQ BANK 5.76

CREDIT AGRICOLE INDOSUEZ 4.92

MIZUHO CORPORATE BANK 4

BANK OF AMERICA 3.62

BANK OF CEYLON 3.08

JP MORGAN CHASE BANK 2.9

DEUTSCHE BANK 2.58

SHINHAN BANK 2.52

BANK OF TOKYO-MITSUBISHI-

UFJ

2.26

BANK OF NOVA SCOTIA 2.24

SONALI BANK 2.23

BANK OF BAHRAIN & KUWAIT 2.14

KRUNG THAI BANK 2.12

As we can see top 15 banks in terms of RoA . All are foreign Banks Foreign Banks have

better Return on Investment compared to Public and Private sector Banks.


3/5

As we can see from above trend analysis foreign Banks always had better RoA which shows

that although their absolute profits might be less but their efficiency is better than private and

foreign sector Banks. It can also be seen that Public Sector Banks has increase RoA

considerably . Private sector Banks also has continuously increasing RoA.

RoI

Return on investments is interest earned on investment upon total investments.

MIZUHO CORPORATE BANK 11.62

ANTWERP DIAMOND BANK 10.86

BANK OF CEYLON9.99

SONALI BANK 9.62

BNP PARIBAS 9.59

CHINATRUST COMMERCIAL BANK 9.06

SHINHAN BANK 8.97

HONG KONG & SHANGHAI BANKING

CORPORATION

8.66

STATE BANK OF MAURITIUS 8.48

CITIBANK 8.32

BANK OF INDIA 8.27

ING VYSYA BANK 8.26

FEDERAL BANK 8.24

0

0.5

1

1.5

2

2.5

1990 1995 2000 2005 2009 2012

Public

Private

Foreign


4/5

BANK OF TOKYO-MITSUBISHI-UFJ 8.24

DBS BANK 8.24

This list is also dominated by foreign Banks. It shows foreign Banks are more efficient.

Business Per Employee

BANK OF NOVA SCOTIA 5430

ANTWERP DIAMOND BANK 3874

JP MORGAN CHASE BANK 3571

BANK OF TOKYO-MITSUBISHI-UFJ 3566

BNP PARIBAS 3519

BANK OF AMERICA 3399

STATE BANK OF MAURITIUS 3358

DBS BANK 3278

CREDIT AGRICOLE INDOSUEZ 2664

SOCIETE GENERALE 2493

MIZUHO CORPORATE BANK 2488

SHINHAN BANK 2439

IDBI BANK LTD. 2387

UBS AG 2163

DEUTSCHE BANK 2156

CITIBANK 1975

As can be seen from above table Business per employee also consist of mainly Foreign

banks.

0

2

4

6

8

10

12

14

16

1992 1995 2000 2005 2009 2012

public

private

foreign


5/5

Foreign Banks have high Business per employee followed by public banks and at last are

Private sector Banks.

Documents

Scp Performance