FUNDAMENTAL ANALYSIS OF BANKING SECTOR

1. FUNDAMENTAL
ANALYSIS OF
BANKING
SECTOR
Presented by:-
Himanshu Shrimali
B2F-13
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2. 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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3. 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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4. 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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5. Methodology
Seconder source data collection by:-
 Equitymaster.com
 Moneycontrol.com
 Birla sun life.com
 Official websites of banks.
 Financial accounting
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6. 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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7. Ratios
 Net Interest Margin
 Capital Adequacy Ratio
 Net Interest Income
 Non Performing Assets
 CASA
 Loans
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8. AXIS Bank
2013 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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9. Net Interest Margin
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10. Net Interest Income
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11. Capital Adequacy Ratio
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12. NPA
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13. ICICI Bank
2013 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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14. Net Interest Margin
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15. Net Interest Income
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16. Capital Adequacy Ratio
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17. NPA
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18. HDFC Bank
2013 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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19. Net Interest Margin
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20. Net Interest Income
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21. Capital Adequacy Ratio
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22. NPA
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23. State Bank of India
2013 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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24. Net Interest Margin
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25. Net Interest Income
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26. Capital Adequacy Ratio
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27. NPA
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28. Bank of Baroda
2013 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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29. Net Interest Margin
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30. Net Interest Income
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31. Capital Adequacy Ratio
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32. NPA
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33. Punjab National Bank
2013 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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34. Net Interest Margin
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35. Net Interest Income
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36. Capital Adequacy Ratio
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37. NPA
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38. 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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39. 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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40. Refrences
 Equitymaster.com
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41. Thank You
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