an analysis on the state bank of india (1)

7/27/2019 An Analysis on the State Bank of India (1)

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AN ANALYSIS ON THE STATE BANK OF

INDIA

ICFAI UNIVERSITY

DONE BY SUBMITTED TO

HARISH AYNAPURE Dr. Nitin gupta

11BSUHH010019 professor in


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CONTENTS

Chapters topics page nos

Chapter 1- INTRODUCTION 4

Chapter 2- COMPANY PROFILE 5

Chapter 3- WHY DID I CHOOSE THIS TOPIC 8

Chapter 4- OBJECTIVES 9

Chapter 5 - METHODOLOGY 9

Chapter 6- MISSION AND VISION STATEMENT 9

Chapter 7- SWOT ANALYSIS 10

Chapter 8 - COMPETITIORS 11

Chapter 9 CONCLUSIONS 23

Chapter 10WEBSITES 24


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INTRODUCTION

BANKING INDUSTRY

Banking in India in the modern sense originated in the last decades of the 18th

century. The first banks were Bank of Hindustan (1770-1829) and The General Bank

of India, established 1786 and since defunct.

The largest bank, and the oldest still in existence, is the State Bank of India, which

originated in the Bank of Calcutta in June 1806, which almost immediately became

the Bank of Bengal. This was one of the three presidency banks, the other two being

the Bank of Bombay and the Bank of Madras, all three of which were established

under charters from the British East India Company. The three banks merged in 1921

to form the Imperial Bank of India, which, upon India's independence, became

the State Bank of India in 1955. For many years the presidency banks acted as quasi-

central banks, as did their successors, until the Reserve Bank of India was established

in 1935.

In 1969 the Indian government nationalised all the major banks that it did not already

own and these have remained under government ownership. They are run under a

structure know as 'profit-making public sector undertaking' (PSU) and are allowed to

compete and operate as commercial banks. The Indian banking sector is made up of

four types of banks, as well as the PSUs and the state banks, they have been joined

since 1990s by new private commercial banks and a number of foreign banks.

Banking in India was generally fairly mature in terms of supply, product range and

reach-even though reach in rural India and to the poor still remains a challenge. The

government has developed initiatives to address this through the State bank of India

expanding its branch network and through the National Bank for Agriculture and

Rural Development with things like microfinance.


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COMPANY PROFILE

State Bank of India (SBI) is a multinational banking and financialservices company based in India. It is a government-owned corporation with its

headquarters in Mumbai, Maharashtra. As of December 2012, it had assets

of US$501 billion and 15,003 branches, including 157 foreign offices, making it the

largest banking and financial services company in India by assets.

The bank traces its ancestry to British India, through the Imperial Bank of India, to

the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bankin the Indian Subcontinent. Bank of Madras merged into the other two presidency

banksBank of Calcutta and Bank of Bombayto form the Imperial Bank of India,

which in turn became the State Bank of India. Government of India nationalised the

Imperial Bank of India in 1955, with Reserve Bank of India taking a 60% stake, and

renamed it the State Bank of India. In 2008, the government took over the stake held

by the Reserve Bank of India. SBI was ranked 285th in the Fortune Global

500 rankings of the world's biggest corporations for the year 2012.

SBI provides a range of banking products through its network of branches in India

and overseas, including products aimed at non-resident Indians(NRIs). SBI has 14

regional hubs and 57 Zonal Offices that are located at important cities throughout the

country.

SBI is a regional banking behemoth and has 20% market share in deposits and loans

among Indian commercial banks.

The State Bank of India was named the 29th most reputed company in the world

according toForbes 2009 rankings and was the only bank featured in the "top 10

brands of India" list in an annual survey conducted by Brand Finance and The

Economic Times in 2010.


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HISTORY

The roots of the State Bank of India lie in the first decade of 19th century, when

the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June

1806. The Bank of Bengal was one of three Presidency banks, the other two being

the Bank of Bombay (incorporated on 15 April 1840) and the Bank of

Madras (incorporated on 1 July 1843). All three Presidency banks were incorporated

as joint stock companies and were the result of the royal charters. These three banks

received the exclusive right to issue paper currency till 1861 when with the Paper

Currency Act; the right was taken over by the Government of India. The Presidency

banks amalgamated on 27 January 1921, and the re-organised banking entity took as

its name Imperial Bank of India. The Imperial Bank of India remained a joint stock

company but without Government participation.

Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank

of India, which is India's central bank, acquired a controlling interest in the Imperial

Bank of India. On 1 July 1955, the Imperial Bank of India became the State Bank of

India. The government of India recently acquired the Reserve Bank of India's stake

in SBI so as to remove any conflict of interest because the RBI is the country's

banking regulatory authority.

In 1959, the government passed the State Bank of India (Subsidiary Banks) Act,

which made eight state banks associates of SBI. A process of consolidation began on

13 September 2008, when the State Bank of Saurashtra merged with SBI.

SBI has acquired local banks in rescues. The first was the Bank of Behar (est. 1911),

which SBI acquired in 1969, together with its 28 branches. The next year SBI

acquired National Bank of Lahore (est. 1942), which had 24 branches. Five years

later, in 1975, SBI acquired Krishnaram Baldeo Bank, which had been established in

1916 in Gwalior State, under the patronage of Maharaja Madho Rao Scindia. The

bank had been theDukan Pichadi, a small moneylender, owned by the Maharaja.

The new banks first manager was Jall N. Broacha, a Parsi. In 1985, SBI acquired the


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Bank of Cochin in Kerala, which had 120 branches. SBI was the acquirer as its

affiliate, the State Bank of Travancore, already had an extensive network in Kerala.

The State Bank of India and all its associate banks are identified by the same

blue keyhole logo. The State Bank of India word mark usually has one standard

typeface, but also utilises other typefaces.

ASSOCIATE BANK

SBI has five associate banks; all use the State Bank of India logo, which is a blue

circle, and all use the "State Bank of" name, followed by the regional headquarters'name:

State Bank of Bikaner & Jaipur

State Bank of Hyderabad

State Bank of Mysore

State Bank of Patiala

State Bank of Travancore

NON BANKING SERVICES

Apart from its five associate banks, SBI also has the following non-banking

subsidiaries:

SBI Capital Markets Ltd

SBI Funds Management Pvt Ltd

SBI Factors & Commercial Services Pvt Ltd

SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)

SBI DFHI Ltd

SBI Life Insurance Company Limited

SBI General Insurance


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STRUCTURE

As on 14 January 2013, there are fifteen members in the SBI board of directors:-

Pratip Chaudhuri (Chairman)

Hemant G. Contractor (Managing Director)

Arundhati Bhattacharya (Managing Director)

A. Krishna Kumar (Managing Director)

S. Visvanathan (Managing Director)

S. Venkatachalam (Director)

D. Sundaram (Director)

* Thomas Mathew (Director)

S.K. Mukherjee (Officer Employee Director)

Rajiv Kumar (Director)

Jyoti Bhushan Mohapatra (Workmen Employee Director)

Deepak Amin (Director)

Harichandra Bahadur Singh (Director)

WHY STATE BANK OF INDIA???

SBI is one of the oldest banks and the strongest public sector bank in banking

industry in INDIA. It has the largest subsidiaries with largest networks in INDIA. It

was formed after the independence by combining the 3 largest banks during the

colonial period.


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OBJECTIVES

To know about the SBI products and also about its subsidiaries

To analyze the bank based on the fundamental analysis To analyze the bank based on the technical analysis

To show the investors why to invest in the share of the SBI.

METHODOLOGY

The methodology used will be the total secondary basis. The desired information will

be taken from the internet or from the annual report of the company and also some

content for the net.

VISION AND MISSION STATEMENT

MISSION STATEMENT

To carry the torch of an exemplary SBI Officers Union Movement;

Ever alive to Uniting, Protecting, Securing and Satisfying the committed and

enthused members;

Ever facilitating the growth and development of quality Bank Professionals;

Ever offering trusteeship role in meeting the challenges of SBI in the face of

changing Economic Scenario;

Ever trusting in continuous search, improvement and education with a concern

for all that is noble, just and praiseworthy in our movement, Bank and Nation.


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VISION STATEMENT

A Pioneering, Apolitical and Responsive officers Union movement with Enlightened

values, Committed Cadre, Inspiringly led, Ever at the focused services of the

members, the Bank and the community at large.

SWOT ANALYSIS

STRENGTH 1. The biggest bank in the country

2. Has a separate act for itself. Thus, a special

privilege.

3. Biggest branch network in the country

4. First public sector to move to CBS

WEAKNESS 1. Huge amount of staff

2. Expected to experience high level of attrition

due to retirement of its top management3. Still carries the image of the old Govt. sector

bank

OPPURTUNITIES 1. Pool in talent to replace the going top

management to serve the next generation

2. Make better use of its CRM3. Expansion into rural areas

THREATS 1. Consolidation among private banks

2. New bank licenses by RBI

3. Foreign banks that have sophisticated

products


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COMPETITORS

Bank of Baroda

PNB

Canara Bank

Bank of India

IDBI Bank

Union Bank

Central Bank

Corporation Ban

Syndicate Bank

UCO Bank

Oriental Bank

IOB

Allahabad Bank

Andhra Bank

Indian Bank

Bank of Maharashtra

Vijaya Bank

Dena Bank

United Bank

Punjab & Sind


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SBI PRODUCTS AND OTHER VALUE ADDED SERVICES

E-ticketing

SBIe-tax

Bill payment

Eztrade@sbi

RIGS/NEFT

E-payment

Fund transfer

Third party transfer

Demand draft

Cheque book request

Account opening request

Account statement

Transaction enquiry

Demat account statement

Donation

State bank virtual card

Credit card

Personal loan

Home loan

Car loan

Bank A/C

Education loan

Stocks and Demat

Mutual funds

Tax and Business loan


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1.Home Loan

2. The Most Preferred Home Loan provider SBI Bank offers a Home Loan withAttractive Interest Rates with Latest Schemes and Benefits. SBI also providesa Housing loan with different schemes. Schemes Are:-

3. 1. SBI Easy Home Loan2. SBI Advantage Home Loan3. SBI Housing Finance Scheme4. SBI Happy Home Loans5. SBI Life Style Loan6. SBI Green Home Loan7. SBI Home Plus8. SBI Home Line9. SBI MY HOME CAMPAIGN

4. Features & Benefits ofSBI Home Loan Purchase/ Construction of House/ Flat Purchase of a plot of land for construction of House Lowest Home Loan Interest Rate.. Extension/ repair/ renovation/ alteration of an existing House/ Flat Purchase of Furnishings and Consumer Durables as a part of the project cost. Takeover of an existing loan from other Banks/ Housing Finance

Companies. Interest charged on the daily reducing balance

No penalty on prepayments of home loan No hidden costs Option to club income of your spouse and children to compute eligible loan

amount Provision to club depreciation, expected rent accruals from property

proposed to compute eligible loan amount Provision to finance cost offurnishing and consumer durables as part of

project cost

5. Current Rate of InterestLoan Schemes 1st Year 2nd and 3rd year After 3rd Year

SBI HI-FIVE LoanLoan Amount up to Rs. 5 Lacs

8.00% (p.a.)Fixed interest rate

9.00% (p.a.)

Floating Interest RatesOR10.50% (p.a.)Fixed Interest Rates

9.00% (p.a.)

Floating Interest RatesOR10.50% (p.a.)Fixed Interest Rates

SBI Easy Home LoanLoan Amount upto Rs. 50 Lacs


8.50% (p.a.)Fixed Interest Rate

9.00% (p.a.)Floating Interest RateOR10.50% (p.a.)Fixed Interest Rate

SBI Advantage Home LoanLoan Amount Above Rs. 50 Lacs


9.00% (p.a.)Fixed Interest Rates

10.00% (p.a.)Floating Interest Rate

OR11.00% (p.a.)

Fixed Interest Rate
http://www.rupeetalk.com/home-loan/http://www.rupeetalk.com/home-loan/compare-and-apply-sbi-home-loan/http://www.rupeetalk.com/home-loan/compare-and-apply-sbi-home-loan/http://www.rupeetalk.com/home-loan/compare-and-apply-sbi-home-loan/http://www.rupeetalk.com/home-loan/compare-and-apply-sbi-home-loan/http://www.rupeetalk.com/home-loan/


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Eligibility Criteria & Documentation required for SBI Home LoanSalaried Self employed

Age 21years to 60years 21years to 70years

Income Rs.1,20,000 (p.a.) Rs.2,00,000 (p.a.)

Loan Amount

Offered5,00,000 1,00,00000 5,00,000 2,00,00000

Tenure 5years-20years 5years-20years

Current

Experience2years 3years

Documentation

1) Application form withphotograph

2) Identity & residence proof

3) Last 3 months salary slip4) Form 16

5) Last 6 months bank salariedcredit statements6) Processing fee cheque

1) Application form with photograph2) Identity & residence proof3) Education qualifications certificate &

proof of business existence4) Business profile,5) Last 3 years profit/loss & balancesheet6) Last 6 months bank statements

7) Processing fee cheque

CAR LOAN

Owning a vehicle today has become a matter of convenience than pride as it

offers the flexibility to travel unencumbered by hindrances. With the easy

availability of car financing, more and more families are opting to purchase the

car by taking a loan. Car loan is a secured loan, where the car being purchased

is pledged as collateral security. Are you among that group of people who are

aiming to buy a car but do not know the basics of car loan? Below article will

answer all your queries.

CREDIT CARD

A credit card is a small plastic card which is issued by a credit card company as

a system of payment. It allows the card holder to buy goods and services on the


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basis of the promise of the credit card issuer to make payment for goods and

services. It eases life and helps in make your shopping experience simpler as

you are no longer required to carry cash at all places. Once you swipe your

credit card, you will be given a free credit period of 50 days-55 days by the

bank.

FUNDAMENTAL ANALYSIS

STOCK INFORMATION

Current price BSE 1641.70

Current NSE 1640.70

Market Capitalization 112297.86

Face value Rs. 10

EPS (TTM) Rs. 259.22

P/E 6.33

Sector Banking

No of shares 684033971

BSE 52 week high 2550.00

BSE 52 week low 1452.90

NSE 52 week high 2551.70

NSE 52 week low

BSE Sensex 19727.27

Nifty 5833.20

Average Volume BSE 472547.00


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Average Volume NSE 2472070.00

BSE Code 500112

NSE Symbol SBIN

Profitability Analysis 2013

NET PROFIT MARGIN RATIO 9.14

COST TO NET INCOME RATION 56.35

OTHER INCOME TO NET INCOME RATIO 34.76

KEY BALANCE SHEET

Funds and liabilities 2013

Share capital 684.03

Reserves and surplus 1, 24,248.99

Net worth (share holders funds) 1, 25,033.02

Minority interest 4, 253, 86

Deposits 16, 27,402.61

Borrowings 2, 03,723.20

Other liabilities and provisions 1, 72,745.65

Total liabilities 21, 33,158.34


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OWNERSHIP PATTERN

LIQUIDITY ANS CREDIT ANALYSIS

Net interest margin ratio 3.34

Capital adequacy ratio 12.92

Net NPAs 2.10


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TECHNICAL ANALYSIS

Technical Analysis

Indicator Analysis Signal

(0 -

Strong

Sell, 10

-

Strong

Buy)

Chart

RSI (?) RSI is 46.9. According to RSI analysis, sbi gets ismarginally weak.

4.0 SBIGETS RSI Chart

MACD (?)MACD: -5.7 and Signal Line: 6.0. According to MACD

analysis, sbi gets is technically weak.2.0

SBIGETS MACD

Chart

Simple Moving

Average (?)

According to simple moving average analysis, sbi gets is

facing resistance from its 20-day simple moving average

at 2898.225 and support level is at 2.83e+03.

8.0

SBIGETS Simple

Moving Average

Chart

Exponential Moving

Average (?)

According to exponential moving average analysis, sbi

gets is facing resistance from its 20-day exponential

moving average at 2874.602 and support level is at2.83e+03.

8.0

SBIGETS

Exponential Moving

Average Chart

Bollinger Bands (?) %b is 0.322. 5.0SBIGETS Bollinger

Bands Chart

Fibonacci

Retracement (?)

According to Fibonacci retracement, price is above

61.8% and 50% level. Support is at 2814.975 and

2745.3609. Resistance level is 2884.5891.

8.0SBIGETS Fibonacci

Retracement Chart

Average True

Range (?)ATR: 48.4 NA

SBIGETS Average

True Range Chart

Average Directional

Index (?)

ADX is 17.9 which means SBIGETS is in a trading range

and there is no trend.NA

SBIGETS Average

Directional Index

Chart
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Summary: STRONG SELL

Moving Averages: STRONG SELL Buy (1)Sell (11)

Technical Indicators: STRONG SELL Buy (1)Sell (8)

Points 28, 2013 06:31AM GMT

Name S3 S2 S1 Pivot Points R1 R2 R3

Classic 1588.30 1608.90 1619.20 1639.80 1650.10 1670.70 1681.00

Fibonacci 1608.90 1620.70 1628.00 1639.80 1651.60 1658.90 1670.70

Camarilla 1621.00 1623.84 1626.67 1639.80 1632.33 1635.16 1638.00

Woodie's 1583.14 1606.32 1614.04 1637.22 1644.94 1668.12 1675.84

DeMark's - - 1614.05 1637.22 1644.95 - -

TECHNICAL INDICATORS

Symbol Value Action

RSI(14) 40.087 Sell

STOCH(9,6) 36.143 Sell

STOCHRSI(14) 30.789 Sell

MACD(12,26) 38.880 Buy

ADX(14) 19.560 Neutral

Williams %R -78.182 Sell

CCI(14) -176.5360 Sell

ATR(14) 13.1393 Less Volatility

Highs/Lows(14) -19.3107 Sell

Ultimate Oscillator 28.444 Oversold

ROC -2.461 Sell

Bull/Bear Power(13) -45.3300 Sell

Buy: 1

Sell: 8

Neutral: 2



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MOVING AVERAGES

Period Simple Exponential

MA51647.74

Sell

1647.01

Sell

MA101658.22

Sell

1655.25

Sell

MA201668.39

Sell

1659.59

Sell

MA501682.04

Sell

1669.99

Sell

MA1001680.01

Sell

1659.31

Sell

MA2001613.74

Buy

1653.04

Sell

Buy: 1

Sell: 11



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CONCLUSION

State Bank of India earlier known as Imperial Bank has proved its existence through

introducing various innovative schemes and that also are considered as competitive in

present market. At the same time we can conclude that they need to focus on their

human resources in order to achieve the maximum market share

WEB SITES VISITED

www.sbi.com

www.sbi.co.on

http://wiki.answers.com

http://www.moneycontrol.com/

www.topstockresearch.com

www.stocksbuddy.com

Sbi annual report
http://www.sbi.com/http://www.sbi.co.on/http://wiki.answers.com/http://www.topstockresearch.com/http://www.topstockresearch.com/http://wiki.answers.com/http://www.sbi.co.on/http://www.sbi.com/


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an analysis on the state bank of india (1)

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