SBI ,ICICI ,PNB financial analysis

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NAME &LOGO

INDIAN INSTITUTE OF PLANNING AND MANAGEMENT

STUDENT NAME

MAHESH KUMAR PANDEY

BATCH AND SECTION

SPRING SUMMER & SF-1

STUDENT ID

D1113SSIIPMPGPA10009(CHD-6-CA-2052)

COMPANY NAME

TITLE OF REPORT

COMPRATIVE STUDY OF FINANCIAL REPORT OF TOP THREE BANK OF INDIA

AREA OF RESEARCH

PRODUCT & SERVICES WITH FINANCIL ANALYSIS

INTERNSHIP START & FINISH DATE

1ST MARCH – 30TH APRIL (2012)

PHONE.NO : 09910220753

E.MAIL: [email protected]



( i )



It is my proud privilege to release the feelings of my gratitude to several persons who helped me

directly or indirectly to conduct this project work. I express my heart full indebtness and owes deep sense of

gratitude to my corporate guide Mr. Barun Khan, Manager (DPC),SBI main branch Gorakhpur, Mr.

Agrawal Accountant, SBI branch MayaBazar, Gorakhpur for their sincere guidance, inspiration and

motivation in completing this project.

I would thank to God for their blessing and my parents also for their valuable suggestion and support

in my project report.

Last but not the least; I would like to express my sincere gratitude to all the faculty members who have

taught me in my entire MBA curriculum.

I also thanks all my friends who have more or less contributed to the preparation of this project

report. I will be always indebted to them.

MAHESH KUMAR PANDEY

( ii )



SERIAL.NO SUBJECTS PAGE.NO

( i ) TITLE PAGE COVER

( ii ) COMPLETION CERTIFICATE I

( iii ) ACKNOWLEDGEMENT Ii

1 EXECUTIVE SUMMARY 1.

2 INTRODUCTION 2---- 3.

3 RESEARCH OBJECTIVE 4.

4 RESEARCH METHODOLOGY 5.

5 OVERVIEW OF COMPANY

( i ) SBI 6-----9

( ii ) ICICI 10----- 12.

( iii ) PNB 13----- 15.

6 PRODUCT & SERVICES

( i ) SBI 16----- 20.

( ii ) ICICI 21----- 23.

( iii ) PNB 24----- 25

7 BALANCE SHEET

( i ) SBI 26----- 27.

( ii ) ICICI 28----- 29.

( iii ) PNB 30----- 31.

8 RATIO ANALYSIS 32----- 45.

9 ASSESSMENT OF INTERNSHIP 46----- 47.

10 CONCLUSION 48.

11 RECOMMENDATION 49.

12 BIBILOGRAPHY 50.

13 SOFT COPY OF REPORT 51.

( iii )



Analysis and interpretation of the Financial statement has now become an important technique of credit

appraisal. The basic technique of appraisal remain the same in all the cases but the approach and the

emphasis in analysis. Analysis of Financial statement is necessary because it help in depicting the financial

position on the basis of past and current records. Analysis of financial statement helps in the making future

decision and strategies. Therefore, it is very necessary for every organisation whether it is financial or

manufacturing to make financial statements; and to analyze it.

Income statements analysis which is done by using ratio analysis and trend analysis give the true picture of

the company.

In order to understand and analysis ratio we have used Profit and Loss and Balance sheet of Top Three

Bank. The analysis showed various aspect of bank regarding their financial system, observation also

indicated most widely emphasized goals of the firm is to maximize the value of firm to it‟s meet the long -

term and short- term requirements. Funds are invariably required to carry on the various activities of

business.

On the basis of ratio analysis we have suggested some issues which will helpful to bank regarding their

financial systems analysis of financial statements helped me to know how ratio analysis help the banker to

know the financial positions of the business. Among the various tools for the evaluating the financial

statements ratio analysis is the most widely used tool, as it helps us to measure the financial and operational

performance of any business.

Studying the Financial Performance of SBI, ICICI, PNB was a meaningful and Knowledgeable. We as a

team made it possible the financial analysis of the company.

MAHESH KUMAR PANDEY

1.



After preparation of the financial statements. One may be interested in knowing the position

of an enterprise from the different point of view. This can be done by analyzing the financial

statement with the helps of different tools of analysis such as ratio analysis, fund flow

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

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

more accounting figures for comparison.

Financial ratio are widely used for modelling purposes both by the practioners and

researchers .The firm involves many interested parties ,like the

owners,management,personnel,customers,suppliers,competitors,regulatory agencies and

academic each having there views in applying financial statements analysis in their

evaluations. Practitioners use financial ratios, for instance, to forecast the future success of

companies, while the researchers man interest has been to develop model exploiting these

ratio. Many distinct areas of research involving financial ratio can be discerned.

„Financial statements are those statements which provide information about profitability and

financial position of a business. In include two statements :Profit and loss or income

statements and Balance sheet.

Profit & loss statements presents the summary of income earned and the expenses incurred

during a financial year. Balance sheet statements present the financial position of the business

at the end of years.

Before understanding the meaning of analysis of financial statements it is necessary to

understand the meaning of analysis „and „financial „statements.

Analysis means establishing a meaningful relationship between various items of the two

financial statements with each other in such a way that a conclusion is drawn. By financial

statements we men two statements:(1) P/L (2) B/S. These are prepared at the end of a

given period o time. They are indicators of profitability and financial soundness of the

business concern.

Parties interested in analysis of financial statements.

Analysis of financial statements has become very significant due to widespread interest

Of various parties in the financial result of a business unit the various persons interested

In the analysis of financial statement are. 2.





Analysis of financial statements is an attempt to assess the efficiency and performance of anenterprise. For that there are some objectives which are described as under.

To know the project financed by SBI, ICICI, PNB.

To analysis SBI, ICICI, PNB bank financial statement.

To understand the importance of financial statement analysis calculate, the ratio and also analyzethem.

Through the net profit ratio and other profitability ratio, understand the profitability position of SBI,

ICICI, PNB.

Evaluating company performance relating to financial statement analysis.

To know the Liquidity position of the company, with the help of current ratio.

To know the policies of SBI, ICICI, PNB towards the project financing.

To know the risk involved in project financing.

To appraise the project using financing tools.

To know the measures taken by bank when the client fail to repay the amount.

4.



The main objective of this study was to know about history , their management level, their Product and

Services, their shareholding pattern, their Customer Care Service and also know about their Financial

Performance. In short to know detail about their different department. Since my study was highlighting on

SBI, ICICI, PNB, I could concentrate or generalize result.

EXPECTED OUTCOME OF STUDY:

The expected outcome of the study is the result which, I came out with and through which I am successful in

completing this entire project.

SOURCES OF DATA:

The source of data this project contains are:

Firstly, the books that contained details of all 3 banks.

Secondly, the data was also collected through the website,

Thirdly, the data was collected from Magazine and newspapers and the most important is primary data

which was collected by conducting oral interview with the accountant.

I. Discussions with the Bank guide and customers.II. By studying project reports.

III. Using project techniques.

5.



OVERVIEW OF THE COMPANY

STATE BANK OF INDIA

REVENUE: US $ 32.44 billion

PROFIT: US $ 2.34 billion

TOTAL ASSETS: US $ 369.56 billion

TOTAL EQUITY: US $ 18.71 billion

EMPLOYEE: 222,933

State Bank of India (SBI) (LSE: SBID) is the largest bank in India. It is also, measured by the

number of branch offices and employees, the second largest bank in the world. The bank traces its ancestry

back through the Imperial Bank of India to the founding in 1806 of the Bank of Calcutta, making it the

oldest commercial bank in the Indian Subcontinent. The Government of India nationalized the Imperial

Bank of India in 1955, with the 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 provides a range of banking products through its vast network in India and overseas, including

products aimed at NRIs. With an asset base of $126 billion and its reach, it is a regional banking behemoth.

SBI has laid emphasis on reducing the huge manpower through Golden handshake schemes and

computerizing its operations.

6.

Type: Public (BSE, NSE:SBI) &(LSE:SBID)

Founded: Calcutta, 1806 (as Bank of Calcutta)

Headquarters: Corporate Centre, Madam CamaRoad, Mumbai 400 021 India

Key people: Pratip Chaudhari, Chairman



The State Bank Group, with over 16000 branches, has the largest branch network in India. It has a

market share among Indian commercial banks of about 20% in deposits and advances.

Regional office of the State Bank of India (SBI), India's largest bank, in Mumbai. The government of India

is the largest shareholder in SBI.

The bank has 52 branches, agencies or offices in 32 countries. It has branches of the parent in

Colombo, Dhakka, Frankfurt, Hong Kong, Johannesburg, London and environs, Los Angeles, Male in the

Maldives, Muscat, New York, Osaka, Sydney, and Tokyo. It has offshore banking units in the Bahamas,

Bahrain, and Singapore, and representative offices in Bhutan and Cape Town.

SBI operates several foreign subsidiaries or affiliates. In 1990 it established an offshore bank, State

Bank of India (Mauritius). It has two subsidiaries in North America, State Bank of India (California), and

State Bank of India (Canada). In 1982, the bank established its California subsidiary, which now has seven

branches. The Canadian subsidiary was also established in 1982 and also has seven branches, four in the

greater Toronto area, and three in British Columbia. In Nigeria, it operates as INMB Bank. This bank was

established in 1981 as the Indo-Nigerian Merchant Bank and received permission in 2002 to commence

retail banking. It now has five branches in Nigeria. In Nepal SBI owns 50% of Nepal SBI Bank, which has

branches throughout the country. In Moscow SBI owns 60% of Commercial Bank of India, with Canara

Bank owning the rest. In Indonesia it owns 76% of PT Bank Indo Monex. State Bank of India already has a

branch in Shanghai and plans to open one up in Tianjin.

It is a state owned corporation with its headquarters in Mumbai, Maharashtra. As of March 2011, it had

assets of US$370 billion with over 13,000 outlets including 150 overseas branches and agents globally.

7.

http://en.wikipedia.org/wiki/Government-owned_corporation

http://en.wikipedia.org/wiki/Mumbai,_Maharashtra

http://en.wikipedia.org/wiki/Mumbai,_Maharashtra

http://en.wikipedia.org/wiki/Government-owned_corporation



SBI has five associate banks; all use the same logo of a blue circle and all the associates use the "StateBank 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 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 Ltd. SBI General Insurance.

Current Board of Directors:

Pratip Chaudhuri (Chairman)

Hemant G. Contractor (Managing Director)

Diwakar Gupta (Managing Director)

A Krishna Kumar (Managing Director)

Dileep C Choksi (Director)

S. Venkatachalam (Director) 8.

http://en.wikipedia.org/wiki/State_Bank_of_Bikaner_%26_Jaipur

http://en.wikipedia.org/wiki/State_Bank_of_Hyderabad

http://en.wikipedia.org/wiki/State_Bank_of_Mysore

http://en.wikipedia.org/wiki/State_Bank_of_Patiala

http://en.wikipedia.org/wiki/State_Bank_of_Travancore

http://en.wikipedia.org/wiki/SBI_Capital_Markets

http://en.wikipedia.org/wiki/SBI_Capital_Markets

http://en.wikipedia.org/wiki/State_Bank_of_Travancore

http://en.wikipedia.org/wiki/State_Bank_of_Patiala

http://en.wikipedia.org/wiki/State_Bank_of_Mysore

http://en.wikipedia.org/wiki/State_Bank_of_Hyderabad

http://en.wikipedia.org/wiki/State_Bank_of_Bikaner_%26_Jaipur



D. Sundaram (Director)

Parthasarathy Iyengar (Director)

G. D. Nadaf (Officer Employee Director) Rashpal Malhotra (Director)

D. K. Mittal (Director)

Subir V. Gokarn (Director)

Branches of SBI:

State Bank of India has 172 foreign offices in 37 countries across the globe.

SBI has about 25,000 ATMs (25,000th ATM was inaugurated by the then Chairman of State Bank Shri O.P. Bhatt on 31 March 2011, the day of his retirement); and SBI group(including associatebanks) has about 45,000 ATMs.

SBI has 21,500 branches, including branches that belong to its associate banks. SBI includes 99345 offices in India. India's number one ADB is in bellary i e State bank of India bellary ADB.

9.



INDUSTRIAL CREDIT & INVESTMENT CORPORATION OF INDIA (ICICI)

Type: Public (BSE; NSE;NYSE)

Founded: 1955

Headquater: Mumbai, Maharashtra ,India

Key People: K.V.Kamath (chairman)

Chanda Kocchar (MD & CEO )

Revenue : US $ 13.812 billion.

Profit: US $1.366 billion.

Total Assets: US $119.69 billion.

Employee: 79,978

ICICI was formed in 1955 at the initiative of the World Bank, the government of India and Indian

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

providing medium-term and long-term project financing to Indian businesses. Until the late 1980s, ICICI

primarily focused its activities on project finance, providing long-term funds to a variety of industrial

projects. With the liberalization of the financial sector in India in the 1990s, ICICI transformed its business

from a development financial institution offering only project finance to a diversified financial services

provider that, along with its subsidiaries and other group companies, offered a wide variety of products and

services. As Indias economy became more market-oriented and integrated with the world economy, ICICI

capitalized on the new opportunities to provide a wider range of financial products and services to a broader

spectrum of clients. 10.



ICICI Bank was incorporated in 1994 as a part of the ICICI group. ICICI Banks initial equity

capital was contributed 75.0% by ICICI and 25.0% by SCICI Limited, a diversified finance and shipping

finance lender of which ICICI owned 19.9% at December 1996. Pursuant to the merger of SCICI into ICICI,

ICICI Bank became a wholly-owned subsidiary of ICICI. ICICIs holding in ICICI Bank reduced due to

additional capital raising by ICICI Bank and sale of shares by ICICI, pursuant to the requirement stipulated

by the Reserve Bank of India that ICICI dilute its ownership of ICICI Bank. Effective March 10, 2001,

ICICI Bank acquired Bank of Madura, an old private sector bank, in an all-stock merger.

The issue of universal banking, which in the Indian context means the conversion of long-term

lending institutions such as ICICI into commercial banks, had been discussed at length over the past several

years. Conversion into a bank offered ICICI the ability to accept low-cost demand deposits and offer a wider

range of products and services, and greater opportunities for earning non-fund based income in the form of

banking fees and commissions. ICICI Bank also considered various strategic alternatives in the context of

the emerging competitive scenario in the Indian banking industry. ICICI Bank identified a large capital base

and size and scale of operations as key success factors in the Indian banking industry. In view of the benefits

of transformation into a bank and the Reserve Bank of Indias pronouncements on universal banking, ICICI

and ICICI Bank decided to merge.

At the time of the merger, both ICICI Bank and ICICI were publicly listed in India and on the New

York Stock Exchange. The amalgamation was approved by each of the boards of directors of ICICI, ICICI

Personal Financial Services, ICICI Capital Services and ICICI Bank at their respective board meetings held

on October 25, 2001. The amalgamation was approved by ICICI Banks and ICICIs shareholders at their

extraordinary general meetings held on January 25, 2002 and January 30, 2002, respectively. The

amalgamation was sanctioned by the High Court of Gujarat at Ahmedabad on March 7, 2002 and by the

High Court of Judicature at Bombay on April 11, 2002. The amalgamation became effective on May 3,

2002. The date of the amalgamation for accounting purposes under Indian GAAP was March 30, 2002.

The Sangli Bank Limited, an unlisted private sector bank merged with ICICI Bank with effect from

April 19, 2007. On the date of acquisition, Sangli Bank had over 190 branches and extension counters, total

assets of Rs. 17.6billion (US$ 440 million), total deposits of Rs. 13.2 billion (US$ 330 million), total loans

of Rs. 2.0 billion (US$ 50million). 11.



Subsidiaries:

Domestic

ICICI Lombard ICICI Prudential Life Insurance Company Limited ICICI Securities Limited ICICI Prudential Asset Management Company Limited ICICI Venture ICICI Home Finance ICICI direct.com ICICI Foundation.

International

ICICI Bank UK PLC ICICI Bank Canada ICICI Bank Eurasia LLC

ORGANISATIONAL STRUCTURE:

It offers a wide range of banking products and financial services to corporate and retailcustomers through a variety of delivery channels and through its specialized subsidiaries in the areasof investment banking, life and non-life insurance, venture capital and asset management. The Bank has a network of 2,630 branches and 8,003 ATM's in India, and has a presence in 19 countries,including India

The bank 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 andIndonesia. The company's UK subsidiary has established branches in Belgium and Germany.

12.



PUNJAB NATIONAL BANK

Type: Public (BSE; NSE; PNB)

Founder: 1895

Headquarter: New Delhi

Key People: K.R Kamath (Chairman & MD )

Revenue: US $ 6.23 billion.

Net Income: US $ 912.51 million.

Total Assets: US $ 74.57 billion.

Employees: 56,928

Punjab National Bank (PNB) was registered on May 19, 1894 under the Indian Companies Act with

its office in Anarkali Bazaar Lahore. The Bank, founded by Dyal Singh Majithia and Lala Harkishen Lal, is

the second largest government-owned commercial bank in India with about 4,500 branches across 764 cities.

It serves over 37 million customers. The bank has been ranked 248th biggest bank in the world by Bankers

Almanac, London. Total Business of the bank for financial year 2007 is estimated to be approximately

US$60 billion. It has a banking subsidiary in the UK, as well as branches in Hong Kong and Kabul, and

representative offices in Almaty, Shanghai, and Dubai.

We are a leading public sector commercial bank in India, offering banking products and services to

corporate and commercial, retail and agricultural customers. Our banking operations for corporate and

commercial customers include a range of products and services for large corporations, as well as small and

13.



middle market businesses and government entities. We offer a wide range of retail credit products including

housing loans, personal loans and automobile loans. We cater to the financing needs of the agricultural

sector and have created innovative financing products for farmers. We also provide significant financing to

other priority sectors including small scale industries. Through our treasury operations, we manage ourbalance sheet, including the maintenance of required regulatory reserves, and seek to maximize profits from

our trading portfolio by taking advantage of market opportunities.

Our revenue, which is referred to herein and in our financial statements as our income, consists of

interest income and other income. Interest income consists of interest on advances (including the discount on

bills discounted) and income on investments. Income on investments consists of interest and dividends from

securities and our other investments and interest from interbank loan and cash deposits we keep with theRBI. Our securities portfolio consists primarily of Government of India and state government securities. We

meet our statutory liquidity reserve ratio requirements through investments in these and other approved

securities. We also hold debentures and bonds issued by public sector undertakings and other corporations,

commercial paper, equity shares and mutual fund units.

Our interest expense consists of our interest on deposits as well as borrowings. Our interest Income and

expense are affected by fluctuations in interest rates as well as the volume of activity. Our interest expense isalso affected by the extent to which we fund our activities with low interest or non-interest deposits, and the

extent to which we rely on borrowings.

Our non-interest expense consists principally of operating expenses such as expenses for wages and

employee benefits, rent paid on premises, insurance, postage and telecommunications expenses, printing and

stationery, depreciation on fixed assets, other administrative and other expenses. Provisioning for non-

performing assets, depreciation on investments and income tax is included in provisions and contingencies.

We use a variety of indicators to measure our performance. These indicators are presented in tabular

form in the section titled “Selected Statistical Information”. Our net interest income represen ts our total

interest income (on advances and investments) net of total interest expense (on deposits and borrowings).

Net interest margin represents the ratio of net interest income to the monthly average of total interest earning

assets. Our spread represents the difference between the yield on the monthly average of interest earning

assets and the cost of the monthly average of interest bearing liabilities. We calculate average yield on the

monthly average of advances and average yield on the monthly average of investments, as well as the

14.



average cost of the monthly average of deposits and average cost of the monthly average of borrowings. Our

cost of funds is the weighted average of the average cost of the monthly average of interest bearing

liabilities. For purposes of these averages and ratios only, the interest cost of the unsecured subordinated

bonds that we issue for Tier 2 capital adequacy purposes (“Tier 2 bonds”) is included in our cost of interest bearing liabilities. In our financial statements, these bonds are accounted for as “other liabilities and

provisions” and their interest cost is accounted for under other interest expenses.

Since 1969, when we became a public sector bank, we have managed to continue to grow our business

while maintaining a strong balance sheet. As of September 30, 2004, our total deposits represented 85.9% of

our total liabilities. On average, interest free demand deposits and low interest savings deposits represented

43.8% of these deposits in the first six months of fiscal 2005.These low-cost deposits led to an average costof funds excluding equity for the first six months of fiscal 2005 of 4.7%. As of September 30, 2004, our

gross and net non-performing assets constituted 7.65% and 0.30% of our gross and net advances,

respectively. In fiscal 2004 our total income was Rs. 96.5 billion and our net profit was Rs. 11.1 billion

before adjustment and Rs. 10.6billion after adjustment as part of the restatement of our financial statements

for this Issue. In the first six months of fiscal 2005 our total income was Rs. 51.9 billion and our net profit

was Rs. 7.4billion. Between fiscal 2002 and 2004, our total income grew at a compound annual rate

of12.5%, our unadjusted and adjusted net profit grew at a compound annual rate of 40.4% and37.4%,

respectively, and our total deposits and total advances grew at a compound annual growth rate of 17.1% and

17.2%, respectively.

We intend to maintain our position as a cost efficient and customer friendly institution that

Provides comprehensive financial and related services. We seek to achieve this by continuing to adopt

technology which will integrate our extensive branch network. We intend to grow by cross selling various

financial products and services to our customers and by expanding geographically in India and

internationally. We are committed to excellence in serving the public and also maintaining high standards of

corporate responsibility. In line with our philosophy of aiding Indias development we have opened

branches in many rural areas.

PNB is the third largest bank in India by assets. It was founded in 1894 and is currently the second

largest state-owned commercial bank in India ahead of Bank of Baroda with about 5000 branches across 764

cities. It serves over 37 million customers. The bank has been ranked 248th biggest bank in the world by the

Bankers Almanac, London. The bank's total assets for financial year 2007 were about US$60 billion. PNB

has a banking subsidiary in the UK, as well as branches in Hong Kong, Dubai and Kabul, and representative

offices in Almaty, Dubai, Oslo, and Shanghai 15.



PRODUCT AND SERVICES

STATE BANK OF INDIA

Personal Banking

Agricultural & Rural Banking

NRI Services

International Banking

Corporate Banking

Services

Govt. Business

SME

Personal banking Agricultural NRI Services

Deposit schemes Agricultural Type of Acccount

Personal Finance Banking

Corp Salary Micro Credit

Package Regional Rural

Service Bank

International Corporate Banking

Trade Finance Corporate Account

Merchant Banking Mid corporate

Correspondent Govt.SME Business

Banking Project Finance

16.



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

SBI Personal Loan Rates Of Interest

AGRICULTURAL:

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 of agriculture 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 techcommercial 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. 17.



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.

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 as on 31 March 2008, spread over all time zones. The network is

augmented by a cluster 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 corporates 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, Partnershipfirms, Proprietary concerns

Working Capital finance extended to all segments of industries and services sector such as IT TermLoans to support capital expenditures for setting up new ventures as also for expansion, renovationetc.

18.



Deferred Payment Guarantees:to support purchase of capital equipments.

Corporate LoansFor a variety of business related purposes to corporate.

Export CreditTo Corporate / Non Corporate

Strategic Business Units Corporate Accounts Group (CAG) Project Finance 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.

SBMTLR for loans payable beyond 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 CHEQUES19.



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 following Government dues

and pension payments.

SME (small scale industries):

State Bank of India has been playing a vital role in the development of small scale industries since1956.The Bank has financed over 8 lakhs SSI units in the country. It has 55 specialised SSIbranches, 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 numberof people as many of these activities can be started with relatively lower investment and with nospecial skills on the part of the entrepreneurs.

20.



ICICI BANKING

PERSONAL BANKING:

Safety,Flexibility,Liquidity,Returns!ICICI Bank offers a wideVariety of Deposit Products to suit your banking requirements.

Simplified Documentation,Quick Processing,Hassle Free!!!

Exclusive,economiclExpert advice !!!ICICI bank powered – packed feature rich investement option for meeting all yourInvestements.

World class service and acceptance !!!ICICI bank both national and international.

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Banking at your fingertips !!!Why be inline when you can be online for paying your utility bills, mobile bill, prepared mobileRecharge, shopping credit cards, insurance premium and lots more.

INTERNATIONAL MARKETING:

ICICI Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches inSingapore, Bahrain, Hong Kong, Sri Lanka, Dubai International Finance Centre, Qatar FinancialCentre and the United States and representative offices in the United Arab Emirates, China, SouthAfrica, 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 andGermany. ICICI Bank Canada has eight branches including three in Toronto. ICICI Bank EurasiaLLC has six branches including three branches in Moscow and one in St. Petersburg.

Our international strategy is focused on building a retail deposit franchise, diversewholesale funding sources and strong syndication capabilities to support our corporate andinvestment 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. Duringfiscal 2008, we focused on deepening our presence in existing overseas locations and expandingour operations in key markets. In line with our strategy to establish a presence in large marketswith significant savings pools, we entered into Germany through a branch established by ICICIBank UK PLC. We have been able to successfully leverage our technology advantage to create agrowing international deposit base. Total deposits of ICICI Bank UK PLC and ICICI Bank Canadaincreased 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.

Through our international private banking services, we offer various products to mass affluentand high net worth clients based on their financial needs and risk appetite. The offerings rangefrom simple deposits and loans to more sophisticated structured products, private equity andproducts giving exposure to the real estate sector in India.

CORPORATE BANKING:

Our corporate banking strategy is based on providing comprehensive and customised financialsolutions to our corporate customers. We offer a complete range of corporate banking productsincluding rupee and foreign currency debt, working capital credit, structured financing, syndicationand transaction banking products and services.

We have created an integrated Global Investment Banking Group, which is responsible forworking with the relationship team in India and our international subsidiaries and branches, fororigination, structuring and execution of investment banking mandates on a global basis. We havealso 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 toincrease our market share from transaction banking products, which will translate into recurring feeincome for the Bank. We have also focused on increasing market share in trade finance byleveraging and further strengthening correspondent banking relationships. 22.



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 ourcoverage to over 1,000 branches. During the year, we have focused on product specialisation

including investment banking for SMEs. 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 BANK- AGRI BUSINESS:

We believe the rural economy has high growth potential and offers large credit growthopportunities. Towards this end, our suite of products and services is targeted to address the needsof both the farm and non-farm sectors. Our retail product suite encompasses loans for cropproduction, 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 alsofocused on enhancing credit to farmers by leveraging on corporate partnerships. For example, wehave 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. Toenhance 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 technologychannels and modern banking methods for rural lending continues to be an evolving process. Inline with our learning from our rural banking operations, we undertook a comprehensive review of and realigned our channel architecture, credit underwriting processes and account managementsystems. 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 ourrural business.

23.



PNB BANKING

CORPORATE AND COMMERCIAL SECTOR LENDING ACTIVITIES

Term loans

Cash credit and other working capital facilities

Bill discounting

Export credits

Other credit and financing products

SERVICES TO NON-RESIDENT INDIANS

We provide personal financial services for NRIs. We have established a branch in Kabul andRepresentative offices in other cities overseas in order to facilitate services being provided to NRIs.We offer foreign currency accounts to NRIs under our Foreign Currency Non-Resident Scheme andrupee accounts for NRIs under our Non-Resident External and Non-Resident Ordinary Schemes. Wehave introduced our Global Foreign Currency Scheme and Global Rupee Deposit Scheme, which

offer benefits and concessions to NRIs and their relatives provided a minimum balance of Rs.250,000 or US$5,000 is maintained in the account. We also offer various products for facilitatingremittances from NRIs to India. We recently entered into an arrangement to facilitate moneytransfers through Western Union, which is a global leader in money transfer services. We have alsoentered into an agreement with Times Online Money Ltd., a Times of India group company, with aview to establishing an internet based international remittance service. In addition, we also providehousing loans to NRIs.

RETAIL BANKING

In retail banking, our principal competitors are the large public sector banks, as well as existing andnew private sector banks and foreign banks in the case of retail loan products. The other public sectorbanks have large deposit bases and large branch networks, including the State Bank of India whichhas 13,593 branches. Private sector and foreign banks compete principally by offering a wider rangeof products as well as greater technological sophistication in some cases.

Foreign banks, while having a small market penetration overall, has a significant presence among non-resident Indians and also competes for non-branch based products such as auto loans and credit cards.

In particular, we face significant competition primarily from private sector banks and to a lesser

degree from other public sector banks, in the housing, auto and personal loan segments. In mutualfund sales and other investment related products, our principal competitors are brokers, foreignbanks and new private sector banks.

24.



PRODUCTS AND SERVICES FOR AGRICULTURE CUSTOMERS

Agriculture contributes 22% to Indias GDP and supports approximately two-thirds of Indias

population. In fiscal 2004, we surpassed the stated national goal that banks should provide atleast18% of their net bank credit (which is gross credit minus Foreign Currency Non-Resident Bank deposits) to this segment, for which we received an award from Indias Finance Minister. Our

average credit growth rate in this segment has been 32.2% over the last four years. As of the lastreporting Friday of September 2004, agricultural loans constituted 18.8% of our net bank credit.

SMALL SCALE INDUSTRIES

We provide financing to “small scale industries” or “SSIs”. SSIs are defined as manufacturing,

processing and servicing businesses with up to Rs. 50 million invested in plant and machinery forcertain industries such as hosiery, hand tools, drugs and pharmaceuticals and stationery items and upto Rs. 10 million invested in plant and machinery for other small scale industries. SSIs are alsoconsidered a priority sector for directed lending purposes.

See the section titled “Business-Directed Lending” below. As of the last reporting Friday inSeptember 2004, SSI loans constituted 11.3% of our net bank credit. As of the last reporting Fridayin September, 2004 we had an outstanding loan portfolio of Rs. 57.3 billion in this segmentcompared to Rs. 48.5 billion as of the last reporting Friday in September 2003, representing growth

of approximately 18.1%.We have also received awards and recognition from the Government of India relating to our efforts in financing SSI businesses.

25.



Balance Sheet of State Bank of India ------------------- in Rs. Cr. -------------------

Mar '11 Mar '10 Mar '09 Mar '08

Capital and Liabilities:

Total Share Capital 635.00 634.88 634.88 631.47

Equity Share Capital 635.00 634.88 634.88 631.47

Share Application Money 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00

Reserves 64,351.04 65,314.32 57,312.82 48,401.19

Revaluation Reserves 0.00 0.00 0.00 0.00

Net Worth 64,986.04 65,949.20 57,947.70 49,032.66

Deposits 933,932.81 804,116.23 742,073.13 537,403.94

Borrowings 119,568.96 103,011.60 53,713.68 51,727.41

Total Debt 1,053,501.77 907,127.83 795,786.81 589,131.35

Other Liabilities & Provisions 105,248.39 80,336.70 110,697.57 83,362.30

Total Liabilities 1,223,736.20 1,053,413.73 964,432.08 721,526.31

Mar '11 Mar '10 Mar '09 Mar '08

12 mths 12 mths 12 mths 12 mths

Assets

Cash & Balances with RBI 94,395.50 61,290.87 55,546.17 51,534.62

Balance with Banks, Money at Call 28,478.65 34,892.98 48,857.63 15,931.72

Advances 756,719.45 631,914.15 542,503.20 416,768.20

Investments 295,600.57 285,790.07 275,953.96 189,501.27

Gross Block 13,189.28 11,831.63 10,403.06 8,988.35

Accumulated Depreciation 8,757.33 7,713.90 6,828.65 5,849.13

Net Block 4,431.95 4,117.73 3,574.41 3,139.22

Capital Work In Progress 332.23 295.18 263.44 234.26

Other Assets 43,777.85 35,112.76 37,733.27 44,417.03

Total Assets 1,223,736.20 1,053,413.74 964,432.08 721,526.32

Balance sheet keep clean up and hits profit:

If you see total assets as compare to previous year .This time SBI gain Rs.170322.46 crore. Itshow, the bank is gain huge profit and their product and services customers attract on them.

Cash and Balance show how SBI can manage in 2011 Rs.94,395.50 crore as previous year onlythey gain Rs.61,290.87 crore.

They Investement in markets Rs.295,600.57 crore

SBI can grow every year as per see the data of 4 year back how bank can grow and developed ineconomy. 26.



NII at Rs.96.9 billion well ahead of our and street expectations. Net profit Rs.15.8 billion wasdragged by provision towards regulated requirements.

If you see positive way: NIM expenses of 44 bps y-o-y aided by 2% q-o-q growth in loan book,lending rate hikes (170 bps) past 1 years and deposit lower rates.

If you see negative way: Assets quality, Net worth at 18% and slippages at 3.2% annual;slippages from SME and agricultural segments. The bank has already migrated to system basedon NPA recognition. NPA provision at Rs.27 billion credit cost came in at 1.6% annually.

The tax provision has also remain high 49% of PBT and 21% of operating profit. Some portion of the pension expenses were not tax deductible and also provision for NPA are not deductibleexpenses.

In coming 2012 :

Earning by 12% for higher NPA and Tax provision .Right must be balance sheet growthmaintain hold with TP of Rs.2,200

NII grew 33% y-o-y to Rs.96.9 billion above our streetexpectation.NII growth was led bymargin expansion of 44 bps y-o-y to 3.62% and loan growth of 2% (18% y-o-y). Cost of deposit at 5.7% was up and advanced 10.43%.

Lower non-interest income and higher provision including tax outgo.The bank made provisiontowards NPA including restructured assets and counter cyclical requirements.

Margin expansion aided by lending rate hike and repricing of deposit at relatively lower rateloan growth targeted 16-19% y-o-y.

Best CASA ratio deposit targeted to grow at 19% y-o-y in 2012.CASA ratio 48% remainindustry best for SBI.Total deposit for the bank grew 16.5% y-o-yand the management hasguided for deposit growth of 19% y-o-y over 2012.

Non-interest and dividend hit by lower treasury and dividend income (fee income up 9% y-o-y

27.



Balance Sheet of ICICI Bank ------------------- in Rs. Cr. -------------------

Mar '11 Mar '10 Mar '09 Mar '08



Total Share Capital 1,151.82 1,114.89 1,463.29 1,462.68

Equity Share Capital 1,151.82 1,114.89 1,113.29 1,112.68



Reserves 53,938.82 50,503.48 48,419.73 45,357.53

Revaluation Reserves 0.00 0.00 0.00 0.00

Net Worth 55,090.93 51,618.37 49,883.02 46,820.21Deposits 225,602.11 202,016.60 218,347.82 244,431.05

Borrowings 109,554.28 94,263.57 67,323.69 65,648.43

Total Debt 335,156.39 296,280.17 285,671.51 310,079.48


Total Liabilities 406,233.67 363,399.72 379,300.96 399,795.08

Mar '11 Mar '10 Mar '09 Mar '08


Assets

Cash & Balances with RBI 20,906.97 27,514.29 17,536.33 29,377.53Balance with Banks, Money at Call 13,183.11 11,359.40 12,430.23 8,663.60

Advances 216,365.90 181,205.60 218,310.85 225,616.08

Investments 134,685.96 120,892.80 103,058.31 111,454.34

Gross Block 9,107.47 7,114.12 7,443.71 7,036.00


Net Block 4,744.26 3,212.69 3,801.62 4,108.89


Other Assets 16,347.47 19,214.93 24,163.62 20,574.63

Total Assets 406,233.67 363,399.71 379,300.96 399,795.07

KEEP GROWING:

Investement in security receipt of assets reconstruction companies was Rs.28.31 billion atMarch 31,2011.

Credit derivities exposure as well as balance sheet of Rs.38.77 billion at March 2011.

Credit deposit ratio 75% on the domestic balance sheet at March 31,2011

PAT of Rs.2.33 billion 2011 compared Rs.1.61 billion in 2010.

PAT increased 30.5% to 60.93 billion 2011 compared to Rs.46.70 billion in 2010 28.



Profit of ICICI FY2011 include an impact of Rs.2.72 billion on account or the above.

Average Net Worth 2011 at 11.6% compared to 9.6% in 2010.

Capital adequacy ratio of 22.4% at March 31,2011

NPA ratio : 1.3%

At March 31,2011 Net worth Rs.13 billion deposits Rs.19 billion and borrowing Rs.54 billion.

Capital instrument constitute 65% of domestic borrowing.

Gross retail NPL at Rs.66.35 billion and net retail NPL at Rs.12.49 billion at March 31,2011.

In coming 2012:

25.5% increased in standalone PAT from Rs.51.51 billion in 2011 ( April 2010-March 2011)to Rs.64.65 billion in 2012 (April 2011-March 2012)

Net interest income by 19% y-o-y full year NIM improved by a basis point 2.73%.

Fee income increased by 4.5%

30.8% reduction in provision to Rs.15.83 billion

25.4% in consolidation PAT from Rs.60.93 billion 2011 to Rs.7643 billion in 2012.

Advanced increased by 17.3% of y-o-y to Rs.2,537.28 billion at March 31,2012

CASA ratio at 43.5% at March 31,2012, Average CASA ratio at 39% in 2012

NPA ratio decreased 0.62% at March 31,2012 from 0.70% at December 31,2011

29.



Balance Sheet of Punjab National Bank ------------------- in Rs. Cr. -------------------

Mar '11 Mar '10 Mar '09 Mar '08



Total Share Capital 316.81 315.30 315.30 315.30

Equity Share Capital 316.81 315.30 315.30 315.30



Reserves 19,720.99 15,915.63 12,824.59 10,467.35

Revaluation Reserves 1,470.76 1,491.99 1,513.74 1,535.70

Net Worth 21,508.56 17,722.92 14,653.63 12,318.35Deposits 312,898.73 249,329.80 209,760.50 166,457.23

Borrowings 31,589.69 19,262.37 4,374.36 5,446.56

Total Debt 344,488.42 268,592.17 214,134.86 171,903.79


Total Liabilities 378,325.25 296,632.78 246,918.62 199,020.37

Mar '11 Mar '10 Mar '09 Mar '08


Assets

Cash & Balances with RBI 23,776.90 18,327.58 17,058.25 15,258.15

Balance with Banks, Money at Call 5,914.32 5,145.99 4,354.89 3,572.57

Advances 242,106.67 186,601.21 154,702.99 119,501.57Investments 95,162.35 77,724.47 63,385.18 53,991.71

Gross Block 4,981.60 4,215.21 3,930.36 3,699.64


Net Block 3,105.59 2,513.47 2,397.11 2,315.52


Other Assets 8,259.42 6,320.07 5,020.20 4,380.84

Total Assets 378,325.25 296,632.79 246,918.62 199,020.36

GROWING:

PNB Net profit growth in 2011 15.9% y-o-y, means they grow slightly our estimate of Rs.1,007 crore.

PNB gross NPA increase 11.4% q-o-q to Rs.4,025 crore and net NPA rose by 11.1% q-o-qto Rs.1,426 crore.

Non-interesst income increased 7.4% y-o-y to Rs.718 crore, 74.7% reduction in treasurygains.

There stock trading 9% above.

30.



Advance grew 27.6% y-o-y driven by the 45.9%, 32.7% and 29% y-o-y growth in MSME,

retail and agricultural segments‟.

PNB growth both sector advance and deposit.

Industry growth rate CASA deposit grew at a healthy 24.9% y-o-y driven by 24.3% y-o-ygrowth in Current account Saving account deposit.

NIM high but likely to come down, going forward.

NIM expected 4.06% and NII increased by a healthy 42.1% y-o-y and 13.7% q-o-q to

Rs.2,977 crore.

Operating expanses increased by a substantial 14.6% q-o-q and 37.8% y-o-y employeecosts 12.1% y-o-y.

PNB has cumulatively restructured Rs.13.545 crore worth of loan till date (6.5% loans,68.2% of the net worth ) which is higher there industry standards.

IN COMING 2012:

PNB Net Profit growth 12.1% y-o-y to Rs.1,205 crore.

Key Positive way: They improved NIM as well as slippage remaining under check,despit, completion of migration to system based NPA recognition platform.

Advanced growing by 19.3% y-o-y and deposit increasing by 25% y-o-y.

FD interest rate growth in CASA deposit 11.7% y-o-y

NIM of back improved by 4.0%

Fee income growth was sluggish as fresh credit linked fees declined 27.4% y-o-y.

NPA remained largely flat sequently at Rs.2,089 crore as compared to Rs.2,091crore in 2012.

Central govt.shareholding in bank has increased 58%, which provide headroom of 7% for equity capital raising with any support from government. 31.



PROFITABILITY RATIO:

A class of financial metrics that are used to assess a business's ability to generate earnings ascompared to its expenses and other relevant costs incurred during a specific period of time. Formost of these ratios, having a higher value relative to a competitor's ratio or the same ratio from aprevious period is indicative that the company is doing well.

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 profitmargin. On the other hand, comparing a retailer's fourth-quarter profit margin with the profitmargin 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 isa measurement of what proportion of a company's revenue is left over after paying for variablecosts 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 SALE

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 orquarterly figures to those of its competitors. If a company's margin is increasing, it is earning moreper dollar of sales. The higher the margin, the better.

FOR EXAMPLE

If a company has an operating margin of 12%, this means that it makes $0.12 (before interest andtaxes) for every dollar of sales. Often, nonrecurring cash flows, such as cash paid out in a lawsuitsettlement, are excluded from the operating margin calculation because they don't represent acompany's true operating performance.

32.



RATIO AT 31

STMARCH - 2011

SR.NO NAME OF BANK PERCENTAGE %

1. SBI 22.69%

2. ICICI 14.45%

3. PNB 21.47%

BAR GRAPH

INTERPRETATION:

It shows that operating efficiency of SBI is better than PNB and ICICI. While operating efficiencyof ICICI is lower than PNB and SBI. So rank of operating efficiency of banks can be given as SBI,PNB and ICICI.

33.



GROSS PROFIT MARGIN:

A financial metric used to assess a firm's financial health by revealing the proportion of money leftover from revenues after accounting for the cost of goods sold. Gross profit margin serves as thesource for paying additional expenses and future savings. It is also known as "gross margin".

CALCULATED AS:

GROSS PROFIT MARGIN = REVENUE- COGS

NET SALE

FOR EXAMPLE:

Suppose that ABC Corp. earned $20 million in revenue from producing widgets and incurred $10million in COGS-related expense. ABC's gross profit margin would be 50%. This means that forevery 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 companieswill usually see higher profit margins.

RATIO AT 31ST

MARCH 2011

Sr.NO NAME OF BANK PERCENTAGE %

1. SBI 21.49%

2. ICICI 12.99%

3. PNB 20.67%

34.



BAR GRAPH

INTERPRETATION:

This ratio shows financial position of company. Here, financial position of SBI is better than PNBand ICICI. So SBI is at first rank by its financial position than PNB and ICICI.

NET PROFIT MARGIN:

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 toabnormal conditions or expenses. Variations may also indicate cost blowouts which need to beaddressed.

A decline in the ratio over time may indicate a margin squeeze suggesting that productivityimprovements may need to be initiated. In some cases, the costs of such improvements may lead to afurther drop in the ratio or even losses before increased profitability is achieved.

CALCULATED AS:

NET PROFIT MARGIN = NET PROFIT * 100

SALES

35.



RATIO AS 31ST

MARCH- 2011


1. SBI 11.67%

2. ICICI 10.51%

3. PNB 12.68%

BAR GRAPH

INTERPRETATION:

This ratio is key performance indicators for business. Key performance means the profit levelof company; from above graph we can say that performance of PNB is better than SBI andICICI. So profit level of PNB is at first rank than comes SBI and ICICI.

36.



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

CALCULATED AS:

RONW = NET INCOME * 100

SHARE HOLDER EQUITY

RONW is a measure for judging the returns that a shareholder gets on his investment as ashareholder, equity represents your money and so it makes good sense to know how wellmanagement is doing with it.

RATIO AT 31ST

MARCH-2011


1. SBI 13.72%

2. ICICI 8.94%

3. PNB 19.00%

BAR -GRAPH

37.



INTERPRETATION:

This ratio is useful for comparing the profitability of a company to that of other firms in thesame industry. Here, profitability of PNB is more than SBI and PNB. So we can say that PNB

is at first rank by its profitability than comes SBI and ICICI.

LEVERAGE RATIO:

Any ratio used to calculate the financial leverage of a company to get an idea of the company'smethods of financing or to measure its ability to meet financial obligations. There are severaldifferent ratios, but the main factors looked at include debt, equity, assets and interest 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.

DEBT EQUITY RATIO:

A measure of a company's financial leverage calculated by dividing its total liabilities bystockholders' equity.

CALCULATED AS:

DEBT EQUITY RATIO = TOTAL LIABALITIES

SHAREHOLDER’S EQUITY

If a lot of debt is used to finance increased operations (high debt to equity), the company couldpotentially generate more earnings than it would have without this outside financing. If this were toincrease earnings by a greater amount than the debt cost (interest), then the shareholders benefit asmore earnings are being spread among the same amount of shareholders. However, the cost of thisdebt financing may outweigh the return that the company generates on the debt through investmentand business activities and become too much for the company to handle. This can lead tobankruptcy, which would leave shareholders with nothing.

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

EXAMPLE:

Capital-intensive industries such as auto manufacturing tend to have a debt/equity ratio above 2, whilepersonal computer companies have a debt/equity of under 0.5.

38.



RATIO AT 31ST

MARCH-2011

Sr.No NAME OF BANK PERCENTAGE %

1. SBI 10.96%

2. ICICI 5.27%

3. PNB 15.44%

BAR-GRAPH

INTERPRETATION:

This ratio indicates what proportion of equity and debt the company is using to finance itsassets. From above diagram we can say that PNB has a high debt-equity ratio means it isaggressive in financing its growth with debt. Than after SBI has a low debt-equity ratio ascomparison with PNB and ICICI comes at third rank in debt-equity ratio.

39.



FIXED ASSETS TURNOVER RATIO:

Measure of the productivity of a firm, it indicates the amount of sales generated by each dollarspent 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 becoming more efficientin the use of its fixed assets.

CALCULATED AS:

FIXED ASSETS TURNOVER RATIO = SALE REVENUE / AVG.FIXED ASSETS

RATIO AT 31ST

MARCH-2011


1. SBI 6.31%

2. ICICI 5.61%

3. PNB 4.35%

BAR-GRAPH

40.



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 PNB. After SBI, ICICI has a high level of revenue andthan comes PNB at last.

LIQUIDITY RATIO:

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 analystswill calculate only the sum of cash and equivalents divided by current liabilities because they feelthat they are the most liquid assets, and would be the most likely to be used to cover short-termdebts in an emergency.

A company's ability to turn short-term assets into cash to cover debts is of the utmost importancewhen creditors are seeking payment. Bankruptcy analysts and mortgage originators frequently usethe liquidity ratios to determine whether a company will be able to continue as a going concern.

CURRENT RATIO:

This ratio is a rough indication of a firm's ability to service its current obligations. Generally, thehigher the current ratio, the greater the "cushion" between current obligations and your Company'sability to pay them. The composition and quality of current assets is a critical factor in the analysis

of your Company's liquidity. It is calculated as Total current assets divided by total currentliabilities.

RATIO AT 31ST

MARCH-2011


1. SBI 0.07%

2. ICICI 0.10%

3. PNB 0.02%

41.



BAR-GRAPH

INTERPRETATION:

Current ratio of ICICI is higher than SBI and PNB, means ICICI has a high ability to pay for itsliabilities, and than secondly comes SBI and PNB has a low ability to pay for liabilities incomparison with ICICI and PNB.

QUICK RATIO:

It is also known as the "Acid Test" ratio; it is a refinement of the current ratio and is a moreconservative 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, any value of less than 1to 1 implies a "dependency" on inventory or other current assets to liquidate short-term debt.

It is calculated as Cash plus trade receivables divided by total current liabilities.

RATIO AT 31ST

MARCH-2011


1. SBI 6.15%

2. ICICI 6.42%

3. PNB 9.40%

42.



BAR-GRAPH

INTERPRETATION:

PNB 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 PNB.

PAYOUT RATIO:

The amount of earnings paid out in dividends to shareholders. Investors can use the payout ratio todetermine what companies are doing with their earnings.

CALCULATED AS:

PAYOUT RATIO = DIVIDEND PER SHARE

EARNING PER SHARE

FOR EXAMPLE:

A very low payout ratio indicates that a company is primarily focused on retaining its earningsrather than paying out dividends. The payout ratio also indicates how well earnings support thedividend payments: the lower the ratio, the more secure the dividend because smaller dividends areeasier to pay out than larger dividends.

43.



DIVIDEND PAYOUT RATIO

DPR = DIVIDEND

NET INCOME

RATIO AT 31ST

MARCH -2011


1. SBI 22.64%

2. ICICI 33.12%

3. PNB 23.40%

BAR GRAPH

INTERPRETATION: ICICI has a high dividend payout ratio, so the Investors who areseeking high current income and limited capital growth should be invest in ICICI bank. PNBand SBI have a low dividend payout ratio, so investors who are seeking capital growth shouldbe invest in PNB and SBI because capital gains are taxed at a lower rate.

44.



EARNING RETENTION RATIO:

NET INCOME-DIVIDEND

NET INCOME

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

RATIO AT 31ST

MARCH-2011


1. SBI 77.33%

2. ICICI 66.35%

3. PNB 76.59%

BAR-GRAPH

INTERPRETATION:

Earning retention ratio is the opposite of the dividend payout ratio. SBI and PNB have a highearning retention ratio, so the Investors who are seeking high current income and limitedcapital growth should be invest in SBI and PNB. ICICI has a low earning retention ratio, so theinvestors who are seeking capital growth should be invest in ICICI BANK. 45.



1.) What skills and qualifications you think that you have gained from the internship?

ANS: According to me your mind setup is good when you join internship program means

Whatever you learned catch every thing fast.

Gain valuable work experience.

Have an edge in Job Market.

Transition into a Job.

Decide for Right Career.

Build Networking Opportunities.

Always Motivate your self and Increase your Confidence Level.

2.) What kind of responsibilities you have undertaken during the internship period?

ANS: I come sharp 11 am in morning and go 5 pm evening, within that time I handle some work

of DPC Manager computer, after some time they told me how you handle the Customer to

aware of the New product launched in markets how we provide services to consumer.

These internship is amazing because I aware all 15 cabin in SBI

What they are doing and to analyze how they work and deals with different type of custom

Come. In between them they guide me look how bank can work and our responsibility to

Do work fast and customer fully satisfied

3.) How do you think the internship will influence your future career plans?

ANS: Internship Program is a realise how work is going on „corporate‟. These internship ia a

great opportunities to learned new topic and work of experience people.

According to Future aspects, when you join Real world business these internship is benefits46.



For us: Internship is generally short – term. So you can test your future career without

committing and find out if it is a career that will satisfy you internship is a great way to meet

people in your filled even if you have experience knowing people never hurts.An allow you

to meet people who might helps you land a job later in future and also give you some contact

in industry.

EXAMPLE:

Some time employee doing internship in same organisation as prospective employee may

finish their internships and continues working with the company fully time.

4.) How do you think the internship activities that you carried out are correlated with your

classroom knowledge?

ANS:

An internship can be see as the Pinnacle of your undergraduate education and give you the

chance to use the skill you have learned in the classroom in a real world setting. It‟s chance

to prove the worth of your qualification and show that you can perform in the role you have

been given.

47.



Ratios make the related information comparable. A single figure by itself has no meaning, butwhen expressed in terms of a related figure, it yields significant interferences. Thus, ratios arerelative 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 efficiencyhave an impact on the profit margin or turnover ratios of a company.

Financial ratios are essentially concerned with the identification of significant accounting datarelationships, which give the decision-maker insights into the financial performance of acompany.

The analysis of financial statements is a process of evaluating the relationship betweencomponent parts of financial statements to obtain a better understanding of the firms position

and performance.

The first task of financial analyst is to select the information relevant to the decision underconsideration from the total information contained in the financial statements. The second stepis to arrange the information in a way to highlight significant relationships. The final step isinterpretation and drawing of inferences and conclusions. In brief, financial analysis is theprocess of selection, relation and evaluation.

Ratio analysis in view of its several limitations should be considered only as a tool for analysisrather than as an end in itself. The reliability and significance attached to ratios will largelyhinge 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.

48.



Bank staff should be customer friendly and highly motivated to serve the normal customer.

As far as possible, banks should reduce its documentation process while providing loans.

Computerization should be done in banks at all level and the operators should be properly

trained.

Token system should be induced so as to minimize the waiting lines in the banks.

Proper ambience in the banks can develop a healthy working culture.

Quick services should be provided.

More ATM coverage should be provided for the convenience of the customers.

SBI & PNB customer care should more concern about the fatest settlement of customer

problems. ICICI bank is already doing her job.

Before deducting or charging any monetary charge SBI and ICICI must consult with

customer.

Agents should be trained well educated and proper trained to convenience the people about

different products.

It is the duty of the bank to disclose all the material facts regarding product and services,

ROI repayments period and any type of charges.

Special scheme should be implemented to encourage customer and agents.

Bank focus on segmentation based on customer knowledge.

Bank must take feedback to the customer.

49.



WEB SITE:

www.sbi.com

www.pnb.com

www.icici.com

www.knowledgstrom.com

www.igniter.com

BOOK REFERED:

“Basic Financial Management”--- M Y KHAN

P K Jain

Financial Management --- Prasanna Chandra

I M Pandey

50.

http://www.sbi.com/

http://www.pnb.com/

http://www.icici.com/

http://www.knowledgstrom.com/

http://www.igniter.com/

http://www.igniter.com/

http://www.knowledgstrom.com/

http://www.icici.com/

http://www.pnb.com/

http://www.sbi.com/



51.



Documents

SBI ,ICICI ,PNB financial analysis