Sip Project of Md Shamim Akhtar

8/13/2019 Sip Project of Md Shamim Akhtar

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SUMMER INTERNSHIPPROJECT

Submitted to IIMT College of Management in partial

fulfillment of requirements for the award of

Master of Business Administration

A

PROJECT REPORT

ON

COMPARATIVE ANALYSISOF FINANCIAL

REPORT

OF

THREE BANKS OF INDIA

Submitted To:

Neeraj Sir

Guided By:

Praveen Sir

Submitted By:

Md. Shamim Akhtar

MBA (3rdSem)

1171270022


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ACKNOWLEDGEMENT

Perseverance inspiration and motivation have always played a key role in success of any

venture. I hereby express my deep sense of gratitude to all the personalities involved directly

and indirectly in my project work.

The satiation and euphoria that accompany the successful completion of the project would be

incomplete without the mention of the people who made it possible.

I would like to take the opportunity to thank and express my deep sense of gratitude to my

corporate mentor Mr. Rajiv Singhand my faculty mentor Prof. Praveen Sir (Faculty). I am

greatly indebted to both of them for providing their valuable guidance at all stages of the

study, their advice, constructive suggestions, positive and supportive attitude and continuous

encouragement, without which it would have not been possible to complete the project.

I would also like to thank Mr. Amar Majumdar (General Manager)who in spite of busy

schedule has co-operated with me continuously and indeed, his valuable contribution and

guidance have been certainly indispensable for my project work.

I am thankful to Mr. Tarique Ahmed for giving me the opportunity to work with Central

Bank of India and learn.

I owe my wholehearted thanks and appreciation to the entire staff of the company for their

cooperation and assistance during the course of my project.

I hope that I can build upon the experience and knowledge that I have gained and make a

valuable contribution towards this industry in coming future.

Md. Shamim Akhtar


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PREFACE

This project report has been prepared as per the requirement of the syllabus of MBA coursestructure under which the students are the required to undertake project.

It was a first hand experience for us as that we were exposed to the professional set-up and

were facing the market, which was really a great experience.

During project period, I had very touching experiences. When business is involved,

experiences counts a lot, as we know, experience are an instrument, which leads towards

success.

Now I take this opportunity to present the project report and sincerely hope that it will be as

much knowledge enhancing to the readers as it was to use during the field work and the

compilation of the report

Md. Shamim Akhtar


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DECLARATION

I, undersigned MR. SHAMIM AKHTAR, student of IIMT COLLEGE OF

MANAGEMENT, GREATER NOIDA declare that this project on COMPARATIVE

STUDY OF FINANCIAL REPORT OF CENTRAL BANK OF INDIA WITH SBI AND

ICICI BANKIis being submitted in the partial fulfillment of the requirement of MBA OF

IIMT, GREATER NOIDAthe work conduct under the guidance of Mr. Praveen Sir.

Md. Shamim Akhtar


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TABLE OF CONTENTSR. No Topic Pg. No.

1. Introduction:

Need of the study Objective of study 7-8

2. Bank Profile:

Central Bank of India State Bank of India ICICI Bank

9-

3. Product and Services

4. Balance Sheet

5. Ratio Analysis6. Comparative Analysis :

Liquidity Ratio:

Current Ratio Quick Ratio

Payout Ratio:

Dividend Payout Ratio Earning Retention Ratio

Per Share Ratio:

Earning Per ShareProfitability Ratio:

Operating Margin Gross Profit Margin Net Profit Margin Return on Net Worth

Leverage Ratio:

Debt Equity Ratio Fixed Asset Turnover Ratio

7. Importance

8. Research Methodology

9. Conclusion

10. Recommendation & Limitation

11. Bibliography

12. Annexure


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INTRODUCTION


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INTRODUCTION

After preparation of the financial statements, one may be interested in knowing the positionof an enterprise from different points of view. This can be done by analyzing the financial

statement with the help of different tools of analysis such as ratio analysis, funds flow

analysis, cash flow analysis, comparative statement analysis, etc. Here I have done financial

analysis by ratios. In this process, a meaningful relationship is established between two or

more accounting figures for comparison.

Financial ratios are widely used for modeling purposes both by practitioners and researchers.The firm involves many interested parties, like the owners, management, personnel,

customers, suppliers, competitors, regulatory agencies, and academics, each having their

views in applying financial statement analysis in their evaluations. Practitioners use financial

ratios, for instance, to forecast the future success of companies, while the researchers' main

interest has been to develop models exploiting these ratios. Many distinct areas of research

involving financial ratios can be discerned. Historically one can observe several major

themes in the financial analysis literature. There is overlapping in the observable themes,and they do not necessarily coincide with what theoretically might be the best founded areas.

Financial statements are those statements which provide information about profitability andfinancial position of a business. It includes two statements, i.e., profit & loss a/c or income

statement and balance sheet or position statement.

The income statement presents the summary of the income earned and the expenses incurredduring a financial year. Position statement presents the financial position of the business at

the end of the year.

Before understanding the meaning of analysis of financial statements, it is necessary tounderstand the meaning of analysisand financial statements.

Analysis means establishing a meaningful relationship between various items of the twofinancial statements with each other in such a way that a conclusion is drawn. By financial


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statements, we mean two statements- (1) profit & loss a/c (2) balance sheet. These are

prepared at the end of a given period of time. They are indicators of profitability and

financial soundness of the business concern.

Thus, analysis of financial statements means establishing meaningful relationship betweenvarious items of the two financial statements, i.e., income statement and position statement

Parties interested in analysis of financial statements

NEED OF STUDY

Analysis of financial statement has become very significant due to widespread interest ofvarious parties in the financial result of a business unit. The various persons interested in the

analysis of financial statements are:-

Short- term creditors: They are interested in knowing whether the amounts owing to them

will be paid as and when fall due for payment or not.

Long term creditors: They are interested in knowing whether the principal amount and

interest thereon will be paid on time or not.

Shareholders: They are interested in profitability, return and capital appreciation.

Management:The management is interested in the financial position and performance of the

enterprise as a whole and of its various divisions.

Trade unions: They are interested in financial statements for negotiating the wages or

salaries or bonus agreement with management.

Taxation authorities: These authorities are interested in financial statements for determining

the tax liability.


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Researchers: They are interested in the financial statements in undertaking research in

business affairs and practices.

Employees: They are interested as it enables them to justify their demands for bonus and

increase in remuneration.

You have seen that different parties are interested in the results reported in the financial

statements. These results are reported by analyzing financial statements through the use of

ratio analysis.

OBJECTIVE OF STUDY

To study of Analysis of financial statements is an attempt to assess the efficiency and

performance of an enterprise. There is no denying the fact that ratio analysis is one of the

most important tool in the hands of the company for the successful operation of the business.

It is imperative for the manager to properly assess the future requirement of in the company.

Keeping in the view this objective in mind, the company assigned me this challenging project

of financial analysis of the company. The project itself speaks for the importance of the

study. Following are some main objectives of study are:

The overall objective of a business is to earn a satisfactory return on the fundsinvested in it.

Financial analysis helps in ascertaining whether adequate profits are being earned onthe capital invested in the business or not.

It also helps in knowing the capacity to pay the interest and dividend.

It helps the management to study the position of their firm in respect of salesexpenses, profitability and using capital.etc.

The purpose of financial statements analysis is to help the management to make acomparative study of the profitability of various firms.


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Analysis also helps the management in preparing budgets by forecasting next yearsprofit on the basis of past earnings.

It also helps the management to find out shortcomings of the business so that remedialmeasures can be taken to remove these shortcomings.

The purpose of financial analysis is to assess the financial potential of business . Analysis also helps in taking decisions;

(a) Whether funds required for the purchase of new machinery and equipments are

provided from internal resources of business or not.

(b)How much funds have been raised from external sources.

The different tools of analysis tell us whether the firm has suffucient funds to meet itsshort-term and long-term liabilities or not.


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BANK PROFILE


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CENTRAL BANK OF INDIA

Central Bank Of India:

Type : Public, Trade as BSE & NSE Central Bank

Industry : Financial & Commercial Bank

Founded : 21 December 1911 (100 years ago)

Headquarters : Mumbai,India

Key people : Mr. M.V TANKSALE

Revenue : Rs. 19,149.50crore (US$3.47 billion) (2010-11)

Website : www.centralbankofindia.co.in
http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mumbai


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PROFILE:

Central Bank of Indiais a government-owned bank, is one of the oldest and largest

commercial banks in India. It is based inMumbai. The bank has 4100 branches and

270extension counters across 27 Indian states and three Union Territories.

Established in 1911, Central Bank of India was the first Indian commercial bank which was

wholly owned and managed by Indians. The establishment of the Bank was the ultimate

realisation of the dream of Sir Sorabji Pochkhanawala, founder of the Bank. Sir Pherozesha

Mehta was the first Chairman of a truly 'Swadeshi Bank'. In fact, such was the extent of pride

felt by Sir Sorabji Pochkhanawala that he proclaimed Central Bank of India as the 'property

of the nation and the country's asset'. He also added that 'Central Bank of India lives on

people's faith and regards itself as the people's own bank'.

During the past 99 years of history the Bank has weathered many storms and faced many

challenges. The Bank could successfully transform every threat into business opportunity and

excelled over its peers in the Banking industry.

A number of innovative and unique banking activities have been launched by Central Bank

of India and a brief mention of some of its pioneering services are as under:

1921 Introduction to the Home Savings Safe Deposit Schemeto build saving/thrift habits in

all sections of the society.

1924 An Exclusive Ladies Department to cater to the Bank's women clientele.

1926 Safe Deposit Locker facility and Rupee Travellers' Cheques.

1929 Setting up of the Executor and Trustee Department.

1932 Deposit Insurance Benefit Scheme.
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/w/index.php?title=Extension_counter&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Extension_counter&action=edit&redlink=1http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/India


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1962 Recurring Deposit Scheme.

Subsequently, even after the nationalisation of the Bank in the year 1969, Central Bank

continued to introduce a number of innovative banking services as under:

1976 The Merchant Banking Cell was established.

1980 Centralcard, the credit card of the Bank was introduced.

1986 'Platinum Jubilee Money Back Deposit Scheme' was launched.

1989 The housing subsidiary Cent Bank Home Finance Ltd. was started with its

headquarters at Bhopal in Madhya Pradesh.

1994 Quick Cheque Collection Service (QCC) & Express Service was set up to enable

speedy collection of outstation cheques.

Further in line with the guidelines from Reserve Bank of India as also the Government of

India, Central Bank has been playing an increasingly active role in promoting the key thrust

areas of agriculture, small scale industries as also medium and large industries. The Bank also

introduced a number of Self Employment Schemes to promote employment among the

educated youth.

Among the Public Sector Banks, Central Bank of India can be truly described as an All India

Bank, due to distribution of its large network in 27 out of 29 States as also in 3 out of 7 Union

Territories in India. Central Bank of India holds a very prominent place among the Public

Sector Banks on account of its network of 3967 branches and 27 extension counters at

various centres throughout the length and breadth of the country.

Customers' confidence in Central Bank of India's wide ranging services can very well be

judged from the list of major corporate clients such as ICICI, IDBI, UTI, LIC, HDFC as also

almost all major corporate houses in the country.

Mr. M.V TANKSALE has been appointed as Chairman & Managing Director, Central Bank

of India with effect from June 29, 2011. Prior to his appointment as Chairman & Managing

Director, Central Bank of India Shri Tanksale was the Executive Director, Punjab National

Bank since March 2009. Central Bank of India, one of the leading Public Sector Banks in the


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country has paid a Dividend of 192.66 crore to the Government of India for the Financial

Year 2010-11. Shri M V Tanksale, Chairman & Managing Director, Central Bank of India

has handed over the Dividend Cheque of 192.66 crore to (Centre) Honble Union Finance

Minister Shri Pranab Mukherjee on 19/08/2011 at New Delhi.

Central bank of India is one of 18 Public Sector banks in India to get recapitalisation finance

from the government over the next 24 months. The infusion of funds will improve the

financial health of the banks as their capital adequacy ratio (CAR) will be raised more than

desired level of 12 percent. The increase in CAR of the banks will also enable them to lend

more money. The CAR of Central Bank of India was less than 12 percent as on 30 June 2006.

The wholly owned public sector bank, based in Mumbai, will convert an amount of 800

crore out of its 1,124.14-crore total equity capital into perpetual non-cumulative preference

shares.The preference shares would carry an annual floating coupon rate of eight per cent,

which would be benchmarked to 100 basis points above the repo rate. It will shore up the

balance-sheet of the bank and enable it to raise capital from the markets.

According to an official statement, the equity capital restructuring would lead to an

improvement in the bank's credit rating as also facilitate the adoption of Basel II norms.

For financial year 2008-2009, Central Bank of India's Q3 standalone net profit went up at

353.26 crore from 201.01 crore (YoY). The bank's standalone net interest income, NII was

up at 671.94 crore versus 544.85 crore (YoY).

Central Bank of India has approached the Reserve Bank of India (RBI) for permission to

open representative offices in five locations - Singapore, Dubai, Doha, London and Hong

Kong. This is the first time the bank is venturing an independent overseas foray after the

Sethia scam in the 1970s forced the bank to close down its London office. RBI had then

asked the other two banks, who had operations in London, to close down.

As on 31 March 2011, the bank's reserves and surplus stood at 6,868.85 crore. Its total

business at the end of the last fiscal amounted to 2,09,757.33 crore.The bank had a staff

strength of 37,241 as on Nov 2006.

Central Bank of India partnered with TCS [ Tata Consultancy Services ] for its Core Banking

Solution. The solution set to be implemented will include B@NCS from Sydney-based

Financial Network Solutions (FNS), Exim Bills Trade Finance software from China Systems

and eTreasury from TCS. With all of its branches in the core banking system (CBS).


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FUCTION OF CENTRAL BANK OF INDIA

Note Issue:It is considered one of the primaryfunctions of a central bank.

Banker's Bank: The second main function of acentral bank is that of being a bank of

thebanks.

Banker to the Government: The central bankof the country happens to be a banker to

thegovernment. This function normally involvestwo things: (i) providing ordinary

bankingservices to the government, and (ii) being apublic debt agent and underwriter to

thegovernment.

Credit Control: Over the years, credit controlhas become a leading function of a

moderncentral bank.

Custodian of Foreign Exchange Reserves: Central bank of a country is also a custodianof

its official foreign exchange reserves. Thisarrangement helps the authorities inmanaging and

co-ordinating the monetarymatters of the country more effectively.


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BOARD OF DIRECTRORS

1. Shri. M.V.TanksaleChairman & Managing Director

2. Smt Vijayalakshmi R. IyerExecutive Director

3. Shri Rajiv Kishore DubeyExecutive Director

4. Shri Alok TandonDirector

5. Shri Salim Gangadharan RBI NomineeDirector Regional Director

6. Shri Brijlal KshatriyaDirector

7. Prof. N. BalakrishnanDirector

8. Shri Guman SinghDirector

9. Shri RomeshSabharwalDirector

10.Major (Retd.) Ved PrakashDirector

11.Shri B S RambabuDirector


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BRICK MORTAR PRESENCE

Total Branches 3559

Rural 1379

Urban 681

Semi Urban 894

Metropolitan 605

ATMs 400

CBS Branches 1223

Zonal Offices 16

Regional Offices 78

Number of RRB 8

Total No. of RRB Branches 1734


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ICICI BANK

ICICI BANK:

Type : Public, Trade as BSE & NSE ICICI Bank. NYSE IBN

Industry : Financial Services, Banking

Founded : 1955

Headquarters : Mumbai, Maharashtra,India

Key people : Mr. Vikas Kumar

Revenue : US$ 13.812 billion (2010-11)

Website : www.icicibank.com
http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mumbai


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PROFILE:

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial

institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was

reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering

in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank ofMadura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by

ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at

the initiative of the World Bank, the Government of India and representatives of Indian

industry. The principal objective was to create a development financial institution for

providing medium-term and long-term project financing to Indian businesses.

In the 1990s, ICICI transformed its business from a development financial institution offeringonly project finance to a diversified financial services group offering a wide variety of

products and services, both directly and through a number of subsidiaries and affiliates like

ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial

institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the

emerging competitive scenario in the Indian banking industry, and the move towards

universal banking, the managements of ICICI and ICICI Bank formed the view that the

merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities,

and would create the optimal legal structure for the ICICI group's universal banking strategy.

The merger would enhance value for ICICI shareholders through the merged entity's access

to low-cost deposits, greater opportunities for earning fee-based income and the ability to

participate in the payments system and provide transaction-banking services. The merger

would enhance value for ICICI Bank shareholders through a large capital base and scale of

operations, seamless access to ICICI's strong corporate relationships built up over five


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decades, entry into new business segments, higher market share in various business segments,

particularly fee-based services, and access to the vast talent pool of ICICI and its

subsidiaries.

In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of

ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial

Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was

approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of

Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and

the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's

financing and banking operations, both wholesale and retail, have been integrated in a single

entity.

ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and

employees.

ICICI Bank is India's second-largest bank with total assets of Rs. 4,736.47 billion (US$ 93

billion) at March 31, 2012 and profit after tax Rs. 64.65 billion (US$ 1,271 million) for the

year ended March 31, 2012. The Bank has a network of 2,768 branches and 9,363 ATMs in

India, and has a presence in 19 countries, including India.

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 specialised

subsidiaries in the areas of investment banking, life and non-life insurance, venture capital

and asset management.

The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in

United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International

Finance Centre and representative offices in United Arab Emirates, China, South Africa,

Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches

in Belgium and Germany.

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).


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ICICI Bank in the Private Sector Bank category won the Best Technology Bank OfThe Year Best Financial Inclusion Initiative and Best Use Of Technology In Training

and e-Learning by Indian Bank's Association (IBA) Technology Awards. The Bank

also received the first runner up for Best Online Bank, Best Customer Relationship

Initiative and Best Use Of Mobility Technology in Banking by IBA Technology

Awards.

ICICI Bank awarded the Best SME Bank for Treasury and Working Capital (India) byThe Asset Triple A.

ICICI Bank received the Best Trade Finance House and Best Cash ManagementHouse by The Corporate Treasurer Alliance Country Awards.

ICICI Bank awarded the Best Private Sector Bank in Global Business Development,Rural Reach and SME financing categories by Dun & Bradstreet - Polaris Financial

Technology Banking Awards.

Ms. Chanda Kochhar, Managing Director and CEO, was ranked 59th in the World's100 Most Powerful Women by Forbes magazine.

For the fifth year in a row, ICICI Bank was awarded the "Best Foreign ExchangeBank (India)" by Finance Asia Country Awards. The Bank also received the "Best

Bond House (India)".

Ms. Chanda Kochhar awarded the 3rd Asian Corporate Director Recognition Award2012 by Corporate Governance Asia.

ICICI Bank awarded the Best Trade Finance bank in India by GTR Asia Leaders inTrade Awards 2012.

Ms. Chanda Kochhar, Managing Director & CEO, ranked 5th in the list of "MostPowerful CEOs", in the corporate India's definitive power listing, by The Economic


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Times Corporate Dossier. She also tops the list of "Top Women CEOs", in the

country.

ICICI Bank featured as the top Indian brand to be listed in the annual BrandZ's Top100 Most Valuable Global Brands study.

ICICI Bank won the "Best Bond House (India) 2011", by IFR Asia

ICICI Bank awarded the Best Bank (India) by Global Finance

ICICI Bank won the "Century International Quality Era Award" at Geneva. Theaward recognizes commitment towards Quality, Excellence, Customer Satisfaction,

Leadership and Strategic Planning as established in the QC 100 model of Total

Quality Management (TQM).

For the second year in a row, Ms. Chanda Kochhar, Managing Director & CEO, is inthe Power List 2012 of 25 most influential women professional in India, by India

Today.

Ms. Chanda Kochhar, Managing Director & CEO, is amongst the nine Indian womento be named in the Forbes magazine's inaugural 'Asia Power Businesswomen list'

Mr. N.S.Kannan, Executive Director & CFO, received the "Best CFO", in theBanking / Financial Services category by CNBC - TV 18.

ICICI Bank was recognised for the first Credit Default Swap (CDS) deal in India atthe Fimmda annual conference in Kuala Lumpur.

Ms. Chanda Kochhar, Managing Director & CEO was awarded the "CNBC AsiaIndia Business Leader Of The Year Award". She also received the "CNBC Asia's

CSR Award 2011"


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BOARD OF DIRECTRORS

1. Mr. K. V. KamathChairman

2. Mr. Sridar Iyengar

3. Dr. Swati Piramal

4. Mr. Homi R. Khusrokhan

5. Mr. Arvind Kumar

6. Mr. M.S. Ramachandran

7. Dr. Tushaar Shah

8. Mr. V. Sridar

9. Ms. Chanda KochharManaging Director & CEO

10.Mr. N. S. KannanExecutive Director & CFO

11.Mr. K. RamkumarExecutive Director

12.Mr. Rajiv SabharwalExecutive Director


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STATE BANK OF INDIA

STATE BANK OF INDIA :

Type : Public, Trade as BSE & LSE SBID. NYSE IBN

Industry : Financial Services, Banking

Founded : 1stJuly 1955

Headquarters : Mumbai, Maharashtra,India

Key people : Mr. Pratip Chaudhuri

Revenue : US$ 36.950 billion (2011-12)

Website : www.sbi.co.in
http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mumbai


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PROFILE:

The State Bank of India, the countrys oldest Bank and a premier in terms of balance sheet

size, number of branches, market capitalization and profits is today going through a

momentous phase of Change and Transformation the two hundred year old Public sector

behemoth is today stirring out of its Public Sector legacy and moving with an ability to give

the Private and Foreign Banks a run for their money.

The bank is entering into many new businesses with strategic tie ups Pension Funds,

General Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale

Merchant Acquisition, Advisory Services, structured products etc each one of these

initiatives having a huge potential for growth.

The Bank is forging ahead with cutting edge technology and innovative new banking models,

to expand its Rural Banking base, looking at the vast untapped potential in the hinterland and

proposes to cover 100,000 villages in the next two years.

It is also focusing at the top end of the market, on whole sale banking capabilities to

provide Indias growing mid / large Corporate with a complete array of products and

services. It is consolidating its global treasury operations and entering into structured

products and derivative instruments. Today, the Bank is the largest provider of infrastructure

debt and the largest arranger of external commercial borrowings in the country. It is the only

Indian bank to feature in the Fortune 500 list.

The Bank is changing outdated front and back end processes to modern customer friendly

processes to help improve the total customer experience. With about 8500 of its own 10000

branches and another 5100 branches of its Associate Banks already networked, today it offers


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the largest banking network to the Indian customer. The Bank is also in the process of

providing complete payment solution to its clientele with its over 21000 ATMs, and other

electronic channels such as Internet banking, debit cards, mobile banking, etc.

With four national level Apex Training Colleges and 54 learning Centres spread all over the

country the Bank is continuously engaged in skill enhancement of its employees. Some of the

training programs are attended by bankers from banks in other countries.

The bank is also looking at opportunities to grow in size in India as well as internationally. It

presently has 173 foreign offices in 33 countries across the globe. It has also 7 Subsidiaries

in India SBI Capital Markets, SBICAP Securities, SBI DFHI, SBI Factors, SBI Life and

SBI Cards - forming a formidable group in the Indian Banking scenario. It is in the process of

raising capital for its growth and also consolidating its various holdings.

Throughout all this change, the Bank is also attempting to change old mindsets, attitudes and

take all employees together on this exciting road to Transformation. In a recently concluded

mass internal communication programme termed Parivartan the Bank rolled out over 3300

two day workshops across the country and covered over 130,000 employees in a period of

100 days using about 400 Trainers, to drive home the message of Change and inclusiveness.

The workshops fired the imagination of the employees with some other banks in India as well

as other Public Sector Organizations seeking to emulate the programme.

The CNN IBN, Network 18 recognized this momentous transformation journey, the State

Bank of India is undertaking, and has awarded the prestigious Indian of the Year Business,

to its Chairman, Mr. O. P. Bhatt in January 2008.


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BOARD OF DIRECTRORS

1. Shri Pratip ChaudhuriChairman

2. Shri Hemant G. ContractorManaging Director

3. Shri Diwakar GuptaManaging Director

4. Shri A. Krishna KumarManaging Director

5. Shri Dileep C. ChoksiDirector

6. Shri S. VenkatachalamDirector

7. Shri D. SundaramDirector

8. Shri Parthasarathy IyengarDirector

9. Shri Jyoti Bhushan MohapatraWorkmen Employee Director

10.Dr. Rajiv KumarDirector

11.Shri Deepak Ishwarbhai AminDirector

12.Shri D. K. MittalDirector

13.Dr. Subir V. GokarnDirector


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PRODUCT

&

SERVICES


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PRODUCT AND SERVICES

CENTRAL BANK OF INDIA:

Personal Banking Agricultural & Rural Banking NRI Services International Banking Corporate Banking Net Banking Mobile Phone Banking Online Services

Internet Banking Collection of Direct Tax Karnataka Commercial Tax Online Share Trading E-Tax Payments Visa Bill Pay Online recharge Credit Card Bill Payment

Other Services Mutual Fund Govt. Business Depository Services Direct Tax Payment Government Business Cash Management Services


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Depository Services:A Depository is an organization, which holds investors' securities in electronic form. The

depository also provides services related to various transactions in such securities. A

depository interfaces with its investors through Depository Participants.

Depository Participants maintain investors' accounts (Demat accounts), which are similar to

Savings Bank/Current accounts with a Bank. Purchase and sale of securities can be done

through Demat Account.As a Depository Participant of Central Depository Services (India)

Ltd. (CDSL), Central Bank of India facilitates to open Demat Account at any of the following

Designated Branches and view your holdings through Internet

SME Services:The Micro Small and Medium enterprises (MSMEs) have been accepted as the engine of

economic growth and play an important role in the equitable economic development of

country.

Our Bank has shown growth of MSE credit from Rs.9317 crore as on 31.03.2010 toRs.12444

crore as on 31.03.2011 representing an increase of 33.56%. The principal objective of this

policy is to improve our portfolio of MSE credit to Rs.17000 crore by 31.03.2012 and

Rs.26000 crore by 31.03.2016. In addition to above our other objectives are as under:

Banks positive commitment to its MSE customers to provide easy,speedy andtransparent access to banking services in their day to day operations and in times of

financial difficulty.

Hassle free credit to Micro and Small Enterprise


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Mutual Fund Services:Mutual Funds pool money of various investors to purchase a wide variety of securities while

pursuing a specific goal. Selection of Securities for the purpose is done by the specialists

from the field. Returns generated are distributed to the Investors.

At Central Bank, our AMFI (Association of Mutual Funds of India) certified advisors would

help you to select the most suitable Mutual Fund schemes for your portfolio through asset

allocation strategies

.Through the selected branches of Central Bank of India you can invest in various schemes of

UTI Mutual Fund , TATA Mutual Fund , Franklin Templeton Mutual Fund , Reliance

Mutual Fund , Sundaram Mutual Fund , Kotak Mahindra Mutual Fund , ICICI Prudential

Mutual Fund , DSP Blackrock Mutual Fund , IDFC Mutual Fund , L&T Mutual Fund and

Prinicipal Pnb Mutual Fund . All these fund houses have decent performance record.


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STATE BANK OF INDIA:

Personal Banking Agricultural & Rural Banking NRI Services International Banking Corporate Banking Services Govt. Business SME

Personal Banking: SBI Term Deposits SBI Loan For Pensioners SBI Recurring Deposits Loan Against Mortgage Of Property SBI Housing Loan Loan Against Shares & Debentures SBI Car Loan Rent Plus Scheme SBI Educational Loan Medi-Plus Scheme


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Personal Banking Agricultural NRI Services

Deposit Schemes Agricultural Banking Types of Account

Personal Finance Micro Credit NRE term deposit

Corp Salary Package Regional Rural Banks

Services

International Banking Corporate Banking Services

Trade Finance Corporate Accounts Internet Banking

Merchant Banking Mid Corporate Group Mobile Banking

Correspondent Banking Project Finance ATM Services

Government Business SME

Government Account SME Credit Card

SME Loan


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Agricultural & Rural Banking:State Bank of India Caters to the needs of agriculturists and landless agricultural labourers

through a network of 6600 rural and semi-urban branches. There are 972 specialized branches

which have been set up in different parts of the country exclusively for the development ofagriculture through credit deployment .These branches include 427 Agricultural Development

Branches (ADBs) and 547 branches with Development Banking Department (DBDs) which

cater to agriculturists and 2 Agricultural Business Branches at Chennai and Hyderabad

catering to the needs of hi tech commercial agricultural projects.

Our branches have covered a whole gamut of agricultural activities like crop production,

horticulture , plantation crops, farm mechanization, land development and reclamation,

digging of wells, tube wells and irrigation projects, forestry, construction of cold storages and

godowns, processing of agri-products, finance to agri-input dealers, allied activities like dairy

fisheries, poultry, sheep-goat, piggery and rearing of silk worms.

The branch also has farmer's meet in villages to explain to farmers about various schemes

offered by the bank. To give special focus to agriculture lending Bank has set up agri

business unit. Bank has also agri specialists in various disciplines to handle projects/ guide

farmers in their agri.

ventures. Advances are given for very small activity covering poorest of the poor to hi-tech

activities involving large fund outlays.

We are the leaders in agri finance in the country with a portfolio of Rs. 18,000 cars in agri

advances to around 50 lac farmers.

NRI Services:World Class Services from a Bank you can Trust Indians everywhere should become

enlightened International citizens. Wherever you are, whichever country you live, enrich that

nation, not only in financial terms, but also with your sweat knowledge and dignity since that

is the tradition of the country from where you came. At the same time, remember we have a

common umbilical connectivity to our motherland, India.


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International Banking :International banking services of State Bank of India are delivered for the benefit of its Indian

customers, non-resident Indians, foreign entities and banks through a network of 84

offices/branches in 32 countries spread over all time zones. The network is augmented by acluster of Overseas and NRI branches within India and correspondent links with over 522

banks, the world over. Bank's Joint Ventures and Subsidiaries abroad further underline the

Bank's international presence.

The services include corporate lending, loan syndications, merchant banking, handling

Letters of Credit and Guarantees, short-term financing, collection of clean and documentary

credits and remittances.

The Bank has carved a niche for itself in the Euro land with branches located in Antwerp,

Paris and Frankfurt. Indian banks and corporate are able to avail single-window Euro services

from the Bank's Frankfurt branch.

Corporate Banking:SBI is a one shop providing financial products / services of a wide range for large, medium

and small customers both domestic and international.

Working Capital Financing:

Assistance extended both as Fund based and Non-Fund based facilities to Corporate,

Partnership firms, Proprietary concerns

Working Capital finance extended to all segments of industries and services sector such as IT

Term Loans to support capital expenditures for setting up new ventures as also for expansion,

renovation etc.

Deferred Payment Guarantees

to support purchase of capital equipments.


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Corporate Loans

For a variety of business related purposes to corporate.

Export Credit

To Corporate / Non Corporate

Strategic Business Units

(i) Corporate Accounts Group (CAG)(ii) Project Finance(iii) Lease Finance

An exclusive unit providing one s shopping to Corporate A dedicated set up specialised in financing of infrastructure and other large projects Exclusive set up for handling large ticket leases.

Pricing

SBI's Prime Lending Rates (PLR) is among the lowest Presently Bank has two PLR's SBAR for loans payable on demand and up to one year

Services:Listed on the left are Services, SBI offers to its customers.

DOMESTIC TREASURY SBI VISHWA YATRA FOREIGN TRAVEL CARD BROKING SERVICES REVISED SERVICE CHARGES ATM SERVICES INTERNET BANKING E-PAY E-RAIL RBIEFT SAFE DEPOSIT LOCKER

GIFT CHEQUES


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Government Business:State Bank of India's linkage with Government business is widespread. No wonder that out of

9315 branches in India, about 7000 branches are conducting Government Business. The large

network of our branches provides easy access to the common man to deposit the followingGovernment dues and pension payments.

SME:State Bank of India has been playing a vital role in the development of small scale industries

since 1956.The Bank has financed over 8 lakhs SSI units in the country. It has 55 specialised

SSI branches, 99 branches in industrial estates and more than 400 branches with SIB

divisions.

The Bank finances for Small Business activities which are of special significance to a large

number of people as many of these activities can be started with relatively lower investment

and with no special skills on the part of the entrepreneurs.


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ICICI BANK:

Personal Banking Rural Banking & Agri Business

NRI Services International Banking Corporate Banking Services SME Banking

Personal Banking:Safety Deposit

Flexibility Deposit

Personal Finance

Home Loan

Education Loan

Car Loan

Liquidity Returns

ICICI Bank offers a wide

Variety of Deposit Products to suit your banking requirements.


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Safety Home Loan Exclusive

Flexibility Education Loan Economical

Liquidity Car Loan Expert Advice

Returns Simplified Documentation ICICI Bank's power-

Quick Processing packed, feature-rich

Hassle Free investment options for

meeting all your

investment needs.

ATM Card Life Insurance E-Banking

Debit Card Wealth Insurance Online Transaction

Credit Card Property Insurance Mobile Banking

World Class Service Secure, Reliable Mobile Bill

and Acceptance Convenient Buying Online Shopping

National and International Insurance policies online. Insurance premium

acceptance. Payment


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International Banking :In 2001, we identified international banking as a key opportunity, aiming to cater to the

cross-border needs of clients and leveraging our domestic banking strengths to offer products

internationally. We have made significant progress in the international business since we setup our first overseas branch in Singapore in 2003. ICICI Bank currently has subsidiaries in

the United Kingdom, Russia and Canada, branches in Singapore, Bahrain, Hong Kong, Sri

Lanka, Dubai International Finance Centre, Qatar Financial Centre and the United States and

representative offices in the United Arab Emirates, China, South Africa, Bangladesh,

Thailand, Malaysia and Indonesia. The Banks wholly owned subsidiary ICICI Bank UK

PLC has nine branches in the United Kingdom and a branch each in Belgium and Germany.

ICICI Bank Canada has eight branches including three in Toronto. ICICI Bank Eurasia LLC

has six branches including three branches in Moscow and one in St. Petersburg.

Banking at your fingertips!!!

Why be inline when you can be online for paying your utility bills, mobile bills, prepaid

mobile recharge, Shopping, Credit card, insurance premium and lots more.

Our international strategy is focused on building a retail deposit franchise, diverse wholesale

funding sources and strong syndication capabilities to support our corporate and investment

banking business; achieving the status of a non-resident Indian (NRI) community bank in key

markets; and expanding private banking operations for India-centric asset classes. During

fiscal 2008, we focused on deepening our presence in existing overseas locations and

expanding our operations in key markets. In line with our strategy to establish a presence in

large markets with significant savings pools, we entered into Germany through a branch

established by ICICI Bank UK PLC. We have been able to successfully leverage our

technology advantage to create a growing international deposit base. Total deposits of ICICIBank UK PLC and ICICI Bank Canada increased by 76.0% from Rs. 191.28billion at March

31, 2007 to Rs. 335.86 billion at March 31, 2008. We also received approval for and

commenced branch operations in the United States.

We have established a strong franchise among NRIs by offering a comprehensive product

suite, technology enabled access, a wide distribution network in India and alliances with local

banks in various markets. Currently, we have over 500,000 NRI customers. We have

undertaken significant brand-building initiatives in international markets and have emerged


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as a well-recognised financial services brand for NRIs. We continue to maintain a market

share of 25% in inward remittances to India. During fiscal 2008, we launched innovative

products like instant money transfer and enhanced our focus on customer relationship

management and process automation. Additionally, we also undertook the development of

low cost remittance products in non-India geographies with correspondent tie-ups for

disbursements in over 100 such geographies.

Through our international private banking services, we offer various products to mass

affluent and high net worth clients based on their financial needs and risk appetite. The

offerings range from simple deposits and loans to more sophisticated structured products,

private equity and products giving exposure to the real estate sector in India.

Corporate Banking :Our corporate banking strategy is based on providing comprehensive and customised

financial solutions to our corporate customers. We offer a complete range of corporate

banking products including rupee and foreign currency debt, working capital credit,

structured financing, syndication and transaction banking products and services.

Our corporate and investment banking franchise is built around a core relationship team that

has strong relationships with almost all of the countrys corporate houses. The relationship

team is product agnostic and is responsible for managing banking relationships with clients.

We have also put in place product specific teams with a view to focus on specific areas of

expertise in designing financial solutions for clients. Through our relationship teams working

in tandem with product solution teams, we have deepened our client relationships across our

product portfolio or esulting in significant growth in income and wallet share among all our

top corporate clients, as compared to the previous year.

We have created an integrated Global Investment Banking Group, which is responsible for

working with the relationship team in India and our international subsidiaries and branches,

for origination, structuring and execution of investment banking mandates on a global basis.

We have also restructured our delivery team for transaction banking products by creating

dedicated sales teams for trade services and transaction banking products. This has been done

with the intent to increase our market share from transaction banking products, which will

translate into recurring fee income for the Bank. We have also focused on increasing market


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share in trade finance by leveraging and further strengthening correspondent banking

relationships.

SME Banking :During fiscal 2008, our small enterprises customer base increased by 26% to about 1.1

million accounts. We have introduced our service offerings in over 400 new branches,

increasing our coverage to over 1,000 branches. We have continued to focus on shaping the

small and medium enterprises sphere in India through initiatives such as the Emerging India

Awards, the SME CEO Knowledge Series - a platform to mentor and assist SME

entrepreneurs, and the SME Dialogue - a weekly feature in a leading financial newspaper

sharing SME best practices and success stories. During the year, we have launched several

new products and services like the SME toolkit an online business and advisory resource

for SMEs.

Rural Banking & Agri-Business:We believe the rural economy has high growth potential and offers large credit growth

opportunities. Towards this end, our suite of products and services is targeted to address the

needs of both the farm and non-farm sectors. Our retail product suite encompasses loans for

crop production, purchase of farm equipment; commodity based finance as well as various

savings, investment and insurance products. We also offer micro-finance and jewel loans. We

have also focused on enhancing credit to farmers by leveraging on corporate partnerships. For

example, we have partnered with various dairies to provide financing to farmers for purchase

of milch cattle. We also provide credit and banking services to SMEs active in the

agricultural value chain. To enhance our service quality and product delivery capabilities we

have developed a large network of rural branches which is further augmented by non-branch

channels.

Rural banking in India is still at a nascent stage and the deployment of technology channels

and modern banking methods for rural lending continues to be an evolving process. We have

put in place a robust risk management structure to Mitigate and manage credit, operational

and fraud risks. Through this, we aim to create a strong foundation for scaling up of our rural

business.


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BALANCE SHEET


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BALANCE SHEET

BALANCE SHEET

AS ON 31ST

MARCH 2012

ASSETS Rs. (Crore)

Owner's fund:

Equity share capitalShare application moneyPreference share capitalReserves & surplus

Loan funds:

Secured loansUnsecured loans

Total

Uses of funds:Fixed assetsGross blockLess : revaluation reserveLess : accumulated depreciation

Net blockCapital work-in-progressInvestments

Net current assets:Current assets, loans & advancesLess : current liabilities & provisionsTotal net current assetsMiscellaneous expenses not written

Total

736.12--

1,617.008,201.45

--1,96,173.33

2,06,727.90

3,770.801,896.961,296.89

576.95--

59,243.27

6,443.118,255.29

-1,812.18--

58,008.04


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BALANCE SHEET

BALANCE SHEET

AS ON 31ST

MARCH 2012

ASSETS Rs. (Crore)

Owner's fund:

Equity share capital

Share application moneyPreference share capitalReserves & surplus

Net Worth

DepositsBorrowings

Total Debt

AssetsCash & Balance with RBIBalance with Banks, Money at call

Advances

Investments

Gross BlockLess : accumulated depreciation

Net block

Capital work-in-progressOther Assets

Total Assets

671.04

----

83,280.16

83,951.20

1,043,647.36

127,005.57

1,170,652.93

54,075.9443,087.23

867,578.89

312,197.61

14,792.339,658.46

5,133.87

332.6853,113.02

1,335,519.24


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BALANCE SHEET

BALANCE SHEET

AS ON 31ST

MARCH 2012

ASSETS Rs. (Crore)

Owner's fund:

Equity share capitalShare application moneyPreference share capitalReserves & surplus

Loan funds:Secured loansUnsecured loans

Total

Uses of funds:

Fixed assetsGross blockLess : revaluation reserveLess : accumulated depreciation

Net blockCapital work-in-progressInvestments

Net current assets:

Current assets, loans & advancesLess : current liabilities & provisionsTotal net current assetsMiscellaneous expenses not written

Total

1,152.772.39

--59,250.09

--2,55,499.96

3,15,905.20

9,424.39--

4,809.704,614.69

--1,59,560.04

34,618.8817,576.9817,041.89

--

1,81,216.62


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RATIO ANALYSIS

A Ratio: is defined as an arithmetical/quantitative/numerical relationship between two

numbers. Ratio analysis is a very important and age old technique of financial analysis.

A tool used by individuals to conduct a quantitative analysis of information in a company's

financial statements. Ratios are calculated from current year numbers and are then compared

to previous years, other companies, the industry, or even the economy to judge the

performance of the company. Ratio analysis is predominately used by proponents of

fundamental analysis.

There are many ratios that can be calculated from the financial statements pertaining to a

company's performance, activity, financing and liquidity. Some common ratios include the

price-earnings ratio, debt-equity ratio, earnings per share, asset turnover and working capital.

Uses of Ratio Analysis:

There are various uses of Ratio analysis, some of which are as follows:

It helps in managerial decision making It helps in financial forecasting and planning It helps in communicating the financial strength of a concern It helps in control It is an essential part of budgetary control and Standard costing It helps an investor/prospective investor in decision making It provides information to the creditors about the solvency of the firm It helps the employees by providing information about the profitability of the concern It helps the government in policy making by providing financial information about the

industry/firm etc

It facilitates inter-firm; intra-firm; and firm-industry comparison


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Classification of Ratio:

In view of the diverse requirements of the various users of the ratios, the ratios can be

classified into four categories. Performance of a company is evaluated using the ratio analysis

in the following different:

Directions Profitability (Profitability Ratios)

Efficiency of Assets (Activity Ratios) Short-term Solvency (Liquidity Ratios)

Long-term Solvency (Leverage Ratios)

EvaluationPerformance of Company in the Context of Ratio Analysis

1. Liquidity Ratios: They measure the firms ability to meet current obligations.

2. Leverage Ratios: These ratios show the proportion of debt and equity in financing the

firms assets.

3. Activity Ratios: They reflect the firms efficiency in utilising the assets.

4. Profitability Ratios: These ratios measure overall performance and effectiveness of the

Firm


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COMPARATIVE

ANALYSIS


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COMPARATIVE FINANCIAL ANALYSIS

LIQUIDITY RATIO:Liquidity ratios are highly useful to creditors and commercial banks that provide short-term

credit. Short-term refers to a period not exceeding one year. Liquidity ratios measure the

firms abilityto meet current obligations, as and when they fall due.

A fi rm should ensure that it does not suf fer f rom lack of li quidi ty and also does not have

excess l iquidity.

In the absence of adequate liquidity, the firm would not be able to pay creditors, who have

supplied goods and services, on the due date promised. Firms goodwill suffers, in case of

default in payment. In fact, dissatisfied suppliers, normally, refuse to supply, further. Who

can finance, indefinitely? Loss of creditworthiness may result in legal problems, finally,

culminating in the closure of business of a company, even. If the firm maintains more

liquidity, it will not experience any difficulty in making payments. However, a higher degree

of liquidity is bad, as idle assets earn nothing, while there is cost for the funds. The firms

funds will be, unnecessarily, tied up in liquid assets.

Common liquidity ratios include the current ratio, the quick ratio and the operating cash flow

ratio. Different analysts consider different assets to be relevant in calculating liquidity. Some

analysts will calculate only the sum of cash and equivalents divided by current liabilities

because they feel that they are the most liquid assets, and would be the most likely to be used

to cover short-term debts in an emergency.


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Current Ratio :Current Ratiois defined as the relationship between current assets and currently abilities. It is

also known as working capital ratio. This is calculated by dividing total current assets by total

current liabilities.

Current Ratio = Current Assets /Current Liabilities

CURRENT RATIO AT 31-MARCH 2012

Sr. No. Bank Name Percentage

1. Central Bank of India 0.78%

2. State Bank of India 0.65%

3. ICIC Bank 1.97%


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COMPARISION BY PIE CHART

INTERPRETATION:

Current ratio of ICICI is higher than SBI and Central Bank of India, means ICICI has a high

ability to pay for its liabilities, and then secondly comes Central Bank of India and SBI has a

low ability to pay for liabilities in comparison with ICICI and Central Bank of India.

20.24%

12.05%

16.71%

Central Bank of India State Bank of India ICIC Bank


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Quick Ratio :It is also known as the "Acid Test" ratio; it is a refinement of the current ratio and is a more

conservative measure of liquidity. The ratio expresses the degree to which your current

Company's current liabilities are covered by the most liquid current assets. Generally, anyvalue of less than 1 to 1 implies a "dependency" on inventory or other current assets to

liquidate short-term debt.

It is calculated as :

Cash + Trade receivables / Total current liabilities.

QUICK RATIO AT 31-MARCH 2012




3. ICIC Bank 16.71%


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COMPARISION BY PIE CHART

INTERPRETATION:

Central Bank Of India has a high quick ratio means it has enough current assets to cover its

current liabilities, while SBI and ICICI have a low quick ratio in comparison with Central

Bank Of India.

20.24%

12.05%

16.71%



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PAYOUT RATIO:The amount of earnings paid out in dividends to shareholders. Investors can use the payout

ratio to determine what companies are doing with their earnings.

Calculated as:

Payout Ratio = Dividends per share / Earning per share

For example, a very low payout ratio indicates that a company is primarily focused on

retaining its earnings rather than paying out dividends. The payout ratio also indicates how

well earnings support the dividend payments: the lower the ratio, the more secure the

dividend because smaller dividends are easier to pay out than larger dividends.

Dividend Payout Ratio :Dividend payout ratio is the fraction of net income a firm pays to its stockholders in

dividends:

Dividend payout ratio = Dividends / Net Income for the same period

The part of the earnings not paid to investors is left for investment to provide for future

earnings growth. Investors seeking high current income and limited capital growth prefer

companies with high Dividend payout ratio. However investors seeking capital growth may

prefer lower payout ratio because capital gains are taxed at a lower rate. High growth firms in

early life generally have low or zero payout ratios. As they mature, they tend to return more

of the earnings back to investors. Note that dividend payout ratio is a reciprocate ratio to

dividend cover, which is calculated as EPS/DPS.

DIVIDEND PAYOUT RATIO AT 31-MARCH 2012




3. ICIC Bank 32.82%


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COMPARISION BY CONE CHART

INTERPRETATION:

Central Bank of India has a high dividend payout ratio, so the Investors who are seeking high

current income and limited capital growth should be invest in Central Bank of India. ICICI

and SBI have a low dividend payout ratio, so investors who are seeking capital growth should

be invest in ICICI and SBI because capital gains are taxed at a lower.

Central Bank of India

State Bank of India

ICIC Bank

47.49%

22.59%

32.82%


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Earning Retention Ratio :The percent of earnings credited to retained earnings. In other words, the proportion of net

income that is not paid out as dividends.

Calculated as:

Net IncomeDividends / Net Income

It can also be calculated as one minus the dividend payout ratio.

EARNING RETENTION RATIO AT 31-MARCH 2012




3. ICIC Bank 67.19%


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COMPARISION BY BAR CHART

INTERPRETATION:

Earning retention ratio is the opposite of the dividend payout ratio. SBI and ICICI have a

high earning retention ratio, so the Investors who are seeking high current income and limited

capital growth should be invest in SBI and ICICI. Central Bank of India has a low earning

retention ratio, so the investors who are seeking capital growth should be invest in Central

Bank of India.

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%


State Bank of India

ICIC Bank

52.66%

77.45%

67.19%


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PER SHARE RATIO:

Earning Per Share Ratio :The portion of a company's profit allocated to each outstanding share of common stock.

Earnings per share serve as an indicator of a company's profitability.

Calculated as:

= Net IncomeDividends on Preferred Stock / Average Outstanding Shares

When calculating, it is more accurate to use a weighted average number of shares outstanding

over the reporting term, because the number of shares outstanding can change over time.

However, data sources sometimes simplify the calculation by using the number of shares

outstanding at the end of the period.

Diluted EPS expands on basic EPS by including the shares of convertibles or warrants

outstanding in the outstanding shares number.

Earnings per share are generally considered to be the single most important variable in

determining a share's price. It is also a major component used to calculate the price-to-

earnings valuation ratio.

EARNING PER SHARE RATIO AT 31-MARCH 2012


1. Central Bank of India5.49%

2. State Bank of India56.09%

3. ICIC Bank174.46%


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COMPARISION BY PYRAMID BAR CHART

INTERPRETATION:

This ratio is an indicator of a company's profitability. From above graph we can say that

ICICI has a high profitability than SBI and Central Bank of India . So, SBI comes at second

position and Central Bank of India comes at third position in profitability.


5.49%

56.09%

174.46%


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PROFITABILITY RATIO:A class of financial metrics that are used to assess a business's ability to generate earnings as

compared to its expenses and other relevant costs incurred during a specific period of time.

For most of these ratios, having a higher value relative to a competitor's ratio or the sameratio from a previous period is indicative that the company is doing well.

Some examples of profitability ratios are profit margin, return on assets and return on equity.

It is important to note that a little bit of background knowledge is necessary in order to make

relevant comparisons when analyzing these ratios.

For instances, some industries experience seasonality in their operations. The retail industry,

for example, typically experiences higher revenues and earnings for the Christmas season.

Therefore, it would not be too useful to compare a retailer's fourth-quarter profit margin with

its first-quarter profit margin. On the other hand, comparing a retailer's fourth-quarter profit

margin with the profit margin from the same period a year before would be far more

informative.

Operating Margin :A ratio used to measure a company's pricing strategy and operating efficiency. Operating

margin is a measurement of what proportion of a company's revenue is left over after paying

for variable costs of production such as wages, raw materials, etc. A healthy operating margin

is required for a company to be able to pay for its fixed costs, such as interest on debt. It Is

Also known as "operating profit margin."

Calculated as:

Operating Margin = Operating Income / Net Sales

Operating margin gives analysts an idea of how much a company makes (before interest and

taxes) on each dollar of sales. When looking at operating margin to determine the quality of a

company, it is best to look at the change in operating margin over time and to compare the

company's yearly or quarterly figures to those of its competitors. If a company's margin is

increasing, it is earning more per dollar of sales. The higher the margin, the better.


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For example,if a company has an operating margin of 12%, this means that it makes $0.12

(before interest and taxes) for every dollar of sales. Often, nonrecurring cash flows, such as

cash paid out in a lawsuit settlement, are excluded from the operating margin calculation

because they don't represent a company's true operating performance.

OPERATING MARGIN RATIO AT 31-MARCH 2012




3. ICIC Bank 21.99%


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INTERPRETATION:

It shows that operating efficiency of SBI is better than Central Bank Of India and ICICI.

While operating efficiency of Central Bank Of India is lower than ICICI and SBI. So rank of

operating efficiency of banks can be given as SBI, ICICI and Central Bank Of India


6.00%

24.62%

21.99%


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Gross Profit Margin :A financial metric used to assess a firm's financial health by revealing the proportion of

money left over from revenues after accounting for the cost of goods sold. Gross profit

margin serves as the source for paying additional expenses and future savings. It is alsoknown as "gross margin".

Calculated as:

Gross Profit Margin = RevenueCOGS / Revenue

For example, suppose that ABC Corp. earned $20 million in revenue from producing

widgets and incurred $10 million in COGS-related expense. ABC's gross profit margin would

be 50%. This means that for every dollar that ABC earns on widgets, it really has only $0.50

at the end of the day.

This metric can be used to compare a company with its competitors. More efficient

companies will usually see higher profit margins.

GROSS PROFIT MARGIN RATIO AT 31-MARCH 2012




3. ICIC Bank 20.68%


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COMPARISION BY BAR CHART

INTERPRETATION:

This ratio shows financial position of company. Here, financial position of ICICI is better

than SBI and Central Bank of India. So ICICI is at first rank by its financial position than SBIand Central Bank of India.


5.29%

15.44%

20.68%


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Net Profit Margin :For a business to survive in the long term it must generate profit. Therefore the net profit

margin ratio is one of the key performance indicators for your business.

The net profit margin ratio indicates profit levels of a business after all costs have been taken

into account. It is worth analysing the ratio over time. A variation in the ratio from year to

year may be due to abnormal conditions or expenses. Variations may also indicate cost

blowouts which need to be addressed.

A decline in the ratio over time may indicate a margin squeeze suggesting that productivity

improvements may need to be initiated. In some cases, the costs of such improvements may

lead to a further drop in the ratio or even losses before increased profitability is achieved.

The calculation used to obtain the ratio is:

Net Profit Margin = Net Profit x 100 Sales

NET PROFIT MARGIN RATIO AT 31-MARCH 2012




3. ICIC Bank 16.14%


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COMPARISION BY PYRAMID CHART

INTERPRETATION:

This ratio is key performance indicators for business. Key performance means the profit level

of company; from above graph we can say that performance of ICICI is better than SBI and

Central Bank of India. So profit level of ICICI is at first rank than comes SBI and Central

Bank of India.


State Bank of India

ICIC Bank

2.61%

9.73%

16.14%


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Return On Networth:Return on Net worth (RONW) is used in finance as a measure of a company s profitability. It

reveals how much profit a company generates with the money that the equity shareholders

have invested. Therefore, it is also called, Return on Equity(ROE)

It is expressed as:-

RONW = Net Income / Shareholder Equity x 100

The numerator is equal to a fiscal years net income (after payment of preference share

dividends but before payment of equity share dividends).The denominator excludes

preference shares and considers only the equity shareholding. So, RONW measures how

much return the company management can generate for its equity shareholders.

RONW is a measure for judging the returns that a shareholder gets on his investment as a

shareholder, equity represents your money and so it makes good sense to know how well

management is doing with it.

RETURN ON NETWORTH RATIO AT 31-MARCH 2012




3. ICIC Bank 10.70%


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INTERPRETATION:

This ratio is useful for comparing the profitability of a company to that of other firms in the

same industry. Here, profitability of SBI is more than ICICI and Central Bank of India. So we

can say that SBI is at first rank by its profitability than comes Central Bank of India and

ICICI.


4.52%

13.97%

10.70%


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LEVERAGE RATIO:Any ratio used to calculate the financial leverage of a company to get an idea of the

company's methods of financing or to measure its ability to meet financial obligations. There

are several different ratios, but the main factors looked at include debt, equity, assets andinterest expenses. A ratio used to measure a company's mix of operating costs, giving an idea

of how changes in output will affect operating income. Fixed and variable costs are the two

types of operating costs; depending on the company and the industry, the mix will differ.

The most well known financial leverage ratio is the debt-to-equity ratio. For example, if a

company has $10M in debt and $20M in equity, it has a debt-to-equity ratio of 0.5

($10M/$20M). Companies with high fixed costs, after reaching the breakeven point, see a

greater increase in operating revenue when output is increased compared to companies with

high variable costs. The reason for this is that the costs have already been incurred, so every

sale after the breakeven transfers to the operating income. On the other hand, a high variable

cost company sees little increase in operating income with additional output, because costs

continue to be imputed into the outputs. The degree of operating leverage is the ratio used to

calculate this mix and its effects on operating income.

Debt-Equity Ratio :A measure of a company's financial leverage calculated by dividing its total liabilities by

stockholders' equity.

Debt Equity Ratio = Total Liabilities / Sharehilders Equity

Note: Sometimes only interest-bearing, long-term debt is used instead of total liabilities in

the calculation. It is also known as the Personal Debt/Equity Ratio, this ratio can be applied to

personal financial statements as well as companies'.

A high debt/equity ratio generally means that a company has been aggressive in financing its

growth with debt. This can result in volatile earnings as a result of the additional interest

expense. If a lot of debt is used to finance increased operations (high debt to equity), the

company could potentially generate more earnings than it would have without this outside

financing. If this were to increase earnings by a greater amount than the debt cost (interest),


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then the shareholders benefit as more earnings are being spread among the same amount of

shareholders. However, the cost of this debt financing may outweigh the return that the

company generates on the debt through investment and business activities and become too

much for the company to handle. This can lead to bankruptcy, which would leave

shareholders with nothing.

The debt/equity ratio also depends on the industry in which the company operates.

For example, capital-intensive industries such as auto manufacturing tend to have a

debt/equity ratio above 2, while personal computer companies have a debt/equity of under

0.5.

DEBT-EQUITY RATIO AT 31-MARCH 2012




3. ICIC Bank 19.12%


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INTERPRETATION:

This ratio indicates what proportion of equity and debt the company is using to finance its

assets. From above diagram we can say that Central Bank of India has a high debt-equity

ratio means it is aggressive in financing its growth with debt. Than after SBI has a low debt-

equity ratio as comparison with ICICI and SBI comes at third rank in debt-equity ratio.

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%


22.13%

12.43%

19.12%


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Fixed Asset Turnover Ratio :Measure of the productivity of a firm, it indicates the amount of sales generated by each

dollar spent on fixed assets, and the amount of fixed assets required to generate a specific

level of revenue. Changes in the ratio over time reflect whether or not the firm is becomingmore efficient in the use of its

Fixed assets = Sales revenue average fixed assets.

FIXED ASSET TURNOVER RATIO AT 31-MARCH 2012




3. ICIC Bank 0.09%


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COMPARISION BY PYRAMID CHART

INTERPRETATION:

This ratio shows specific level of revenue by the amount of fixed assets. SBI has a high level

of revenue in comparison with ICICI and Central Bank of India. After SBI, ICICI amd

Central Bank of India has a high level of revenue.

0.08%

0.09%

0.09%

0.09%

0.09%

0.09%

0.10%

0.10%

0.10%


0.09%

0.10%

0.09%


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IMPORTANCE


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IMPORTANCE OF RATIO ANALYSIS

Ratio analysis is an important technique of financial analysis. It is a means for judging the

financial health of a business enterprise. It determines and interprets the liquidity, solvency,

profitability, etc. of a business enterprise.

It becomes simple to understand various figures in the financial statements throughthe use of different ratios. Financial ratios simplify, sumarise, and systemise the

accounting figures presented in financial statements.

With the help of raito analysis, comparison of profitability and financial soundnesscan be made between one industry and another. Similarly comparison of current yearfigures can also be made with those of previous years with the help of ratio analysis

and if some weak points are located, remedial measures are taken to correct them.

If accounting ratios are calculated for a number of years, they will reveal the trend ofcosts, sales, profits and other important facts. Such trends are useful for planning.

Financial ratios, based on a desired level of activities, can be set as standards forjudging actual performance of a business. For example, if owners of a business aim at

earning profit @ 25% on the capital which is the prevailing rate of return in the

industry then this rate of 25% becomes the standard. The rate of profit of each year is

compared with this standard and the actual performance of the business can be judged

easily.

Ratio analysis discloses the position of business with different viewpoint. It disclosesthe position of business with liquidity viewpoint, solvency view point, profitability

viewpoint, etc. with the help of such a study, we can draw conclusion regardings the

financial health of business enterprise.


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RESEARCH

METHODOLOGY


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RESEARCH METHODOLOGY

Research Methodology

Research as a mean of getting knowledge can be carried out either arbitrarily or ina

systematic fashion. It is a purposive investigation. Research may be a mean to know the small

change and time forced upon us as individual or as a society. Research as process involves

defining the problem, formulating the hypothesis, organizing and evaluating the data,

deriving inference and conclusion after careful testing.

Data Collection

As data is required for any research activity, it is collected (for those both the Primary andSecondary) as follows:

Primary Data:

I have collected this data through questionnaire.

Secondary Data:

This data is collected from different sources available consolidated from bookpublication

reports, websites where used as a source of secondary data in order todo this project and to

collect necessary data. I have used the manuals and leaflets of the Central Bank of India,ICICI, & S.B.I bank.

Title of the study:-

Comparative Analysisof Financial Report of Central Bank of India SBI & ICICI Bank

Duration of the Study:-

30 day (from 1stJune to 30thJune)

Types of research:-

Descriptive research

Primary data collection

Through Questionnaire are filled by respondents.

Secondary data collection

Data collection throughInternet, Magazines.


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CONCLUSION


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CONCLUSION

Ratios make the related information comparable. A single figure by itself has no meaning, but

when expressed in terms of a related figure, it yields significant interferences. Thus, ratios are

relative figures reflecting the relationship between related variables. Their use as tools of

financial analysis involves their comparison as single ratios, like absolute figures, are not of

much use.

Ratio analysis has a major significance in analysing the financial performance of a company

over a period of time. Decisions affecting product prices, per unit costs, volume or efficiency

have an impact on the profit margin or turnover ratios of a company.

Financial ratios are essentially concerned with the identification of significant accounting

data relationships, which give the decision-maker insights into the financial performance of a

company.

The analysis of financial statements is a process of evaluating the relationship between

component parts of financial statements to obtain a better understanding of the firm s

position and performance.

The first task of financial analyst is to select the information relevant to the decision under

consideration from the total information contained in the financial statements. The second

step is to arrange the information in a way to highlight significant relationships. The final step

is interpretation and drawing of inferences and conclusions. In brief, financial analysis is the

process of selection, relation and evaluation.

Ratio analysis in view of its several limitations should be considered only as a tool for

analysis rather than as an end in itself. The reliability and significance

attached to ratios will largely hinge upon the quality of data on which they are based. They

are as good or as bad as the data itself. Nevertheless, they are an important tool of financial

analysis.


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RECOMMENDATION

&

LIMITATIONS


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RECOMMENDATIO

Ratio analysis is an important and age-old technique of financial analysis. The following are

some of the advantages of ratio analysis:

1. Simplifies financial statements: It simplifies the comprehension of financial statements.

Ratios tell the whole story of

Documents

Sip Project of Md Shamim Akhtar