fundamental analysis of banking sector
TRANSCRIPT
![Page 1: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/1.jpg)
1
FUNDAMENTAL ANALYSIS OF BANKING SECTOR
Presented by:-Himanshu ShrimaliB2F-13
![Page 2: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/2.jpg)
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
![Page 3: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/3.jpg)
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.
![Page 4: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/4.jpg)
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.
![Page 5: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/5.jpg)
5
Methodology Seconder source data collection by:- Equitymaster.com Moneycontrol.com Birla sun life.com Official websites of banks. Financial accounting
![Page 6: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/6.jpg)
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.
![Page 7: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/7.jpg)
7
Ratios Net Interest Margin Capital Adequacy Ratio Net Interest Income Non Performing Assets CASA Loans
![Page 8: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/8.jpg)
8
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%
![Page 9: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/9.jpg)
9
Net Interest Margin
![Page 10: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/10.jpg)
10
Net Interest Income
![Page 11: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/11.jpg)
11
Capital Adequacy Ratio
![Page 12: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/12.jpg)
12
NPA
![Page 13: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/13.jpg)
13
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%
![Page 14: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/14.jpg)
14
Net Interest Margin
![Page 15: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/15.jpg)
15
Net Interest Income
![Page 16: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/16.jpg)
16
Capital Adequacy Ratio
![Page 17: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/17.jpg)
17
NPA
![Page 18: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/18.jpg)
18
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%
![Page 19: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/19.jpg)
19
Net Interest Margin
![Page 20: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/20.jpg)
20
Net Interest Income
![Page 21: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/21.jpg)
21
Capital Adequacy Ratio
![Page 22: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/22.jpg)
22
NPA
![Page 23: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/23.jpg)
23
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%
![Page 24: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/24.jpg)
24
Net Interest Margin
![Page 25: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/25.jpg)
25
Net Interest Income
![Page 26: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/26.jpg)
26
Capital Adequacy Ratio
![Page 27: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/27.jpg)
27
NPA
![Page 28: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/28.jpg)
28
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%
![Page 29: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/29.jpg)
29
Net Interest Margin
![Page 30: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/30.jpg)
30
Net Interest Income
![Page 31: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/31.jpg)
31
Capital Adequacy Ratio
![Page 32: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/32.jpg)
32
NPA
![Page 33: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/33.jpg)
33
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%
![Page 34: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/34.jpg)
34
Net Interest Margin
![Page 35: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/35.jpg)
35
Net Interest Income
![Page 36: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/36.jpg)
36
Capital Adequacy Ratio
![Page 37: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/37.jpg)
37
NPA
![Page 38: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/38.jpg)
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%
![Page 39: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/39.jpg)
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
![Page 40: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/40.jpg)
40
Refrences Equitymaster.com
![Page 41: Fundamental analysis of banking sector](https://reader034.vdocuments.us/reader034/viewer/2022042423/58ec86af1a28abda2c8b46fd/html5/thumbnails/41.jpg)
41
Thank You