fundamental analysis of banking sector
TRANSCRIPT
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FUNDAMENTAL ANALYSIS OF BANKING SECTOR
Presented by:-Himanshu ShrimaliB2F-13
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INTRODUCTION The efficient, dynamic and effective banking
sector plays a very important role in accelerating the rate of economic growth in any economy.
The Government of India introduced economic and financial sector reforms in 1991 and banking sector reforms were part and parcel of financial sector reforms.
These were initiated in 1991 to make Indian banking sector more efficient, strong and
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Purpose The main purpose of the banking sector
analysis is to examine a risk and return characteristics of public sector banks and private sector banks .
The main aim is to know which bank sector is worthwhile to invest.
And which sector is more beneficial for economic purpose.
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Research objective To study the concept and techniques of
fundamental analysis. To evaluate 3 public sector banks and 3
private sector banks. To do the Comparative study of private sector
and public sector Banks. To study the growth trends in banking sector.
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Methodology Seconder source data collection by:- Equitymaster.com Moneycontrol.com Birla sun life.com Official websites of banks. Financial accounting
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Major players in industry Public sector banks – SBI, PNB, Bank of
Baroda, Bank of India etc. Private sector banks- HDFC, ICICI Bank,
AXIS Bank, Yes Bank etc. Foreign Banks – Standard Chartered
Bank, HSBC, City Bank etc. Regional Rural Banks – Andhra Pradesh
gramin bank , Uttranchal Gramin Bank etc.
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Ratios Net Interest Margin Capital Adequacy Ratio Net Interest Income Non Performing Assets CASA Loans
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AXIS Bank2013 2014 2015
Net int. margin
2.9% 3.2% 3.2%
Net int. income
96886 120330 143862
Capital adequacy ratio
17.0% 16.1% 15.1%
NPA 0.4% 0.4% 0.4%
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Net Interest Margin
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Net Interest Income
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Capital Adequacy Ratio
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NPA
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ICICI Bank2013 2014 2015
Net int. margin
2.6% 2.8% 2.9%
Net int. income
165992 197686 226459
Capital adequacy ratio
18.7% 17.7% 17.0%
NPA 0.8% 1.0% 1.6%
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Net Interest Margin
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Net Interest Income
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Capital Adequacy Ratio
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NPA
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HDFC Bank2013 2014 2015
Net int. margin
4.2% 4.0% 4.0%
Net int. income
161656 191096 233780
Capital adequacy ratio
16.8% 16.1% 16.8%
NPA 0.2% 0.3% 0.3%
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Net Interest Margin
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Net Interest Income
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Capital Adequacy Ratio
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NPA
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State Bank of India2013 2014 2015
Net int. margin
3.0% 2.9% 2.9%
Net int. income
611582 675834 747957
Capital adequacy ratio
12.9% 13.0% 12.8%
NPA 2.1% 2.6% 2.1%
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Net Interest Margin
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Net Interest Income
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Capital Adequacy Ratio
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NPA
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Bank of Baroda2013 2014 2015
Net int. margin
2.2% 1.9% 2.0%
Net int. income
119556 128585 143684
Capital adequacy ratio
13.3% 12.3% 12.6%
NPA 1.3% 1.5% 1.9%
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Net Interest Margin
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Net Interest Income
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Capital Adequacy Ratio
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NPA
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Punjab National Bank2013 2014 2015
Net int. margin
3.2% 3.0% 2.8%
Net int. income
152757 167378 173668
Capital adequacy ratio
13.2% 12.7% 13.6%
NPA 2.4% 2.9% 4.1%
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Net Interest Margin
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Net Interest Income
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Capital Adequacy Ratio
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NPA
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Comparisons 2015
Axis Bank
ICICI Bank
HDFC Bank
SBI BOB PNB
NIM 3.2% 2.9% 4.0% 2.9% 2.0% 2.8%
NII 143862 226459 233780 747957 143684 173668
CAR 15.1% 17.0% 16.8% 12.8% 12.6% 13.6%
NPA 0.4% 1.6% 0.3% 2.1% 1.9% 4.1%
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Conclusions Sector is increasing with total asset size
of 81trillion(USD 1.34 trillion). Interest rates are high and investors
confidence low resulting in shrinking investment and GDP growth.
The gross NPA of banks(PUB+PVT)increased over the last one year from 3.3% to 3.9% as on march 2014
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Refrences Equitymaster.com
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Thank You