Professional Documents
Culture Documents
BANING SECTOR
IN
MOTHILAL OSWAL SECURITIES LTD
Submitted In
partial fulfilment of the requirements for the award of the degree of
CHAPTER 1
INTRODUCTION
INTRODUCTION
Analysis is the examination and evaluation of the relevant information to select the best
course of action from among various alternatives. The methods used to analyze securities
and make investment decisions fall into two very broad categories: fundamental analysis
and technical analysis. Fundamental analysis involves analyzing the characteristics of a
company in order to estimate its value. Technical analysis takes a completely different
approach; it doesn't care one bit about the "value" of a company or a commodity.
Technicians (sometimes called chartists) are only interested in the price movement in the
market.
Technical analysis is a method of evaluating securities by analyzing the statistics
generated by market activity, such as past prices and volume. Technical analysts do not
attempt to measure a security's intrinsic value, but instead use charts and other tools to
identify patterns that can suggest future activity.
Many analysts and investors focus on a single number--net income (or earnings)--to
evaluate performance. When investors attempt to forecast the market value of a firm,
they frequently rely on earnings. Many institutional investors, analysts and regulators
believe earnings are not as relevant as they once were. Due to nonrecurring events,
disparities in measuring risk and management's ability to disguise fundamental earnings
problems, other measures beyond net income can assist in predicting future firm
earnings.
The scope of the study is limited to only five companies in the Banking sector viz. State Bank
of India, ICICI, Bank of Baroda, Axis Bank and YES Bank.
RESEARCH METHODOLOGY
A research design is the arrangement of conditions for collection and analyse data in a
manner that aims to combine relevance to the research purpose with economy in the
procedure. It provides the source and type of information, approach used for gathering
and analyzing data, time and cost relevant for the research study.
METHOD OF DATA COLLECTION
The data collected are mainly secondary data; collected from secondary sources such as
the internet, websites of selected companies, company balance sheets, annual reports,
press release, etc
PERIOD OF STUDY
The study was conducted for a period of 2 month from 1 May 2015 to 30 June 2015
CHAPTER SCHEME
1st Chapter Contains Introduction, Statement of Problem, Significant of The Study,
Objective of The Study, Scope of The Study, Hypothesis, and Methodology, Period of
The Study, Chapter Scheme, Assumption and Limitation of The Study.
II nd Chapter deals With Review of Literature, Industrial Profile (World Scenario,
Indian Scenario and State Scenario), Company Profile, Theoretical Background,
Recent Studies in the Topic, Review of Research Methodology
III rd Chapter Contains Research Methodology, Research Design, Study Approach
,Technique of Data Collection , Sampling Techniques ,Statistical Tools of Data
Analysis
IVth Chapter Includes Data Analysis and Interpretation ,Objective Wise Data
Analysis ,Hypothesis Testing
Vth Chapter Contains Summery , Observations , Suggestions ,Recommendations,
Scope For Further Study ,Conclusion , Bibliography
CHAPTER 2
REVIEW OF LITERATURE
INDUSTRY PROFILE
FINANCIAL SERVICES
The term "financial services" became more prevalent in the United States partly as a result of
the Gramm-Leach-Bliley Act of the late 1990s, which enabled different types of companies
operating in the U.S. financial services industry at that time to merge. Financial services are
the economic services provided by the finance industry, which encompasses a broad range of
organizations that manage money, including credit unions, banks, credit card companies,
insurance companies, accountancy companies, consumer finance companies, stock
brokerages, investment funds and some government sponsored enterprises.
The industry comprises complex networks of organizations, which primarily deal with
management of money and create conditions for investors and corporations to flourish in the
market. The growth of other sectors is closely dependent on this industry as it is a prime
source of liquidity and thereby ensures the overall prosperity and economic stability. This
multi-trillion dollar services industry comprises companies varying a great deal in size and
their offerings as well. The industry grouping is widely branched out to include companies
providing varied services, preventing a simple categorization of this industry.
The financial services industry has witnessed its greatest challenges since the Great
Depression, due to the burstingof the housing bubble and the resulting credit crunch. Within a
period of weeks, venerable institutions have been brought to their knees by dysfunctional
credit markets and the punishing stock market. The U.S. and European governments, as well
as Japan, have pumped liquidity into the system and taken on direct capital investments in
these financial behemoths, in an effort to stabilize credit markets and prevent a global
economic meltdown.
FINANCIAL INSTITUTIONS
In financial economics, a financial institution is an institution that provides
financial services for its clients or members. Probably the greatest important financial service
provided by financial institutions is acting as financial intermediaries. Most financial
institutions are regulated by the government. Broadly speaking, there are three major types of
financial institutions:
FINANCIAL INTERMEDIARY
A financial intermediary is a financial institution that connects surplus and deficit
agents. The classic example of a financial intermediary is a bank that consolidates deposits
and uses the funds to transform them into loans. Through the process of financial
intermediation, certain assets or liabilities are transformed into different assets or liabilities.
As such, financial intermediaries channel funds from people who have extra money or
surplus savings (savers) to those who do not have enough money to carry out a desired
activity (borrowers).
FINANCIAL MARKETS
A financial market is a market in which people and entities can trade financial securities,
commodities, and other fungible items of value at low transaction costs and at prices that
reflect supply and demand. Securities include stocks and bonds, and commodities include
precious metals or agricultural goods. There are both general markets (where many
commodities are traded) and specialized markets (where only one commodity is traded).
Markets work by placing many interested buyers and sellers, including households, firms,
and government agencies, in one "place", thus making it easier for them to find each other.
An economy which relies primarily on interactions between buyers and sellers to allocate
resources is known as a market economy in contras t either to a command economy or to a
non-market economy such as a gift economy. Financial market is basically segmented into
two parts:a) Money market
b) Capital market
MONEY MARKET
The Money market refers to the market where borrowers and lenders exchange short-term
funds to solve their liquidity needs. Money market instruments are generally financial claims
that have low default risk, maturities under one year and high marketability.
Money market is a market for debt securities that pay off in the short term
usually less than one year, for example the market for 90-days treasury bills. This market
encompasses the trading and issuance of short term non equity debt instruments including
treasury bills, commercial papers, bankers acceptance, certificates of deposits, etc.
CAPITAL MARKET
The Capital market is a market for financial investments that are direct or indirect claims to
capital. It is wider than the Securities Market and embraces all forms of lending and
borrowing, whether or not evidenced by the creation of a negotiable financial instrument. The
Capital Market comprises the complex of institutions and mechanisms through which
intermediate term funds and long-term funds are pooled and made available to business,
government and individuals. The Capital Market also encompasses the process by which
securities already outstanding are transferred.
a. Primary Market :Primary market is the new issue market of shares, preference shares and debentures of
non-government public limited companies and issue of public sector bonds.
The oldest stock market in Asia, BSE stands for Bombay Stock Exchange and was
initially known as "The Native Share & Stock Brokers Association." Incorporated in the
1875, BSE became the first exchange in India to be certified by the administration. It attained
a permanent authorization from the Indian government in 1956 under Securities Contracts
(Regulation) Act, 1956.Over the year, the exchange company has played an essential part in
the
expansion of Indian investment market. At present the association is functioning as
corporatized body integrated under the stipulations of the Companies Act, 1956.
SENSEX:The sensitive index has long been known as the barometer of the daily temperature
of Indian bourses. In 1978-79 stock market contained only private sector companies and they
were mostly geared to commodity production.
Integrated in November 1992, the National Stock Exchange of India (NSE) was initially a
tariff forfeiting association. In 1993, the exchange was certified under Securities Contracts
(Regulation) Act, 1956 and in June 1994 it started its business functioning in the Wholesale
Debt Market (WDM). The Equities division of NSE began its operations in 1994 while in
2000 the corporation incorporated its Derivatives division.
NIFTY:The Nifty is relatively a new comer in the Indian market. S&P CNX Nifty is a 50
stock index accounting for 23 sectors of the economy. S&P CNX Nifty is owned and
managed by India Index Services and Products Ltd. (IISL), which is a joint venture between
NSE and
CRISIL. IISL is a specialized company focused upon the index as a core product. IISL have a
consulting and licensing agreement with Standard & Poor's (S&P), who are world leaders in
index services.
The robust technology infrastructure of the exchange, along with its with rapid
customization and deployment capabilities enables it to operate efficiently with fast order
routing, immediate trade execution, trade reporting, real-time risk management, market
surveillance and market data dissemination
The OTC Exchange of India was founded in 1990 under the Companies Act 1956 and was
recognized by the Securities Contracts Regulation Act, 1956 as a stock exchange.
OTCEI is promoted by the Unit Trust of India,the Industrial Credit and Investment
Corporation of India, the Industrial Development Bank of India, the Industrial Finance
Corporation of India, and other institutions, and is a recognized stock exchange under the
SCR
The far-reaching changes in the Indian economy since liberalization have had a deep impact
on the Indian financial services sector. Financial sector reforms that were initiated by the
government since the early 90s have been to meet the challenges of a complex financial
architecture. This has ensured that the new emerging face of the Indian financial sector will
culminate in a strong, transparent and resilient system.
India has a diversified financial sector, which is undergoing rapid expansion. The sector
comprises commercial banks, insurance companies, non-banking financial companies, co-
operatives, pension funds, mutual funds and other smaller financial entities. The financial
sector in India is predominantly a banking sector with commercial banks accounting for more
than 60 per cent of the total assets held by the financial system. India's services sector has
always served the countrys economy well, accounting for about 57 per cent of the gross
domestic product (GDP). In this regard, the financial services sector has been an important
contributor.
The Government of India has introduced reforms to liberalize, regulate and enhance this
industry. At present, India is undoubtedly one of the world's most vibrant capital markets.
Challenges remain, but the future of the sector looks good. The advent of technology has also
aided the growth of the industry. About 75 per cent of the insurance policies sold by 2020
would, in one way or another, be influenced by digital channels during the pre-purchase,
purchase or renewal stages, as per a report by Boston Consulting Group (BCG) and Google
India.
The Indian stock exchanges hold a place of prominence not only in Asia but also at the global
stage. The Bombay Stock Exchange (BSE) is one of the oldest exchanges across the world,
while the National Stock Exchange (NSE) is among the best in terms of sophistication and
advancement of technology. The Indian stock market scene really picked up after the opening
up of the economy in the early nineties. The whole of nineties were used
to experiment and fine tune an efficient and effective system. The badla system was stopped
to control unnecessary volatility while the derivatives segment started as late as 2000.
The corporate governance rules were gradually put in place which initiated the process of
bringing the listed companies at a uniform level. On the global scale, the economic
environment started taking paradigm shift with the dot com bubble burst, 9/11, and soaring
oil prices. The slowdown in the US economy and interest rate tightening made the equation
more complex.
However after 2000 riding on a robust growth and a maturing economy and relaxed
regulations, outside investors- institutional and others got more scope to operate. This
opening up of the system led to increased integration with heightened cross-border flow of
capital, with India emerging as an investment hot spot resulting in our stock exchanges
being impacted by global cues like never before.
The study pertains to comparative analysis of the Indian Stock Market with respect to various
international counterparts. Exchanges are now crossing national boundaries to extend their
service areas and this has led to cross-border integration. Also, exchanges have begun to
offer cross-border trading to facilitate overseas investment options for investors. This not
only increased the appeal of the exchange for investors but also attracts more volume.
Exchanges regularly solicit companies outside their home territory and encourage them to list
on theirexchange and global competition has put pressure on corporations to seek capital
outside their home country.
The Indian stock market is the world third largest stock market on the basis of investor base
and has a collective pool of about 20 million investors. There are over 9,000 companies listed
on the stock exchanges of the country. The Bombay Stock Exchange, established in 1875, is
the oldest in Asia. National Stock Exchange, a more recent establishment which came into
existence in 1992, is the largest and most advanced stock market in India is also the third
biggest stock exchange in Asia in terms of transactions. It is among the 5 biggest stock
exchanges in the world in terms of transactions volume.
CORPORATE ACTIONS
Any event that brings material change to a company and affects its stakeholders can
be termed as corporate actions. Some of the important corporate actions are given below.
i.
ii.
A scrip issue (also called a capitalisation or a bonus issue) is the issue of new shares to
existing shareholders at no charge, pro rata to existing holdings.
iii.
Capital Repayments
These are categorized as a return of capital to shareholders. Special Dividends are generally
treated as capital repayments
iv.
These are an entitlement or right to buy additional shares directly from the company in
proportion to their existing holdings
v.
If an existing constituent is acquired for cash, stock, or by a non-quoted company in its own
or another country, then the existing constituent is deleted on the effective date of the
acquisition.
vi.
Spin-offs
If a constituent company is split and forms two or more companies by issuing new equity
toexisting shareholders, then the resulting companies may be eligible to continue
asconstituents in the same FTSE Indices as their predecessor company (refer to Index Series
ground rules for specific conditions).
vii.
Dividends
Declared dividends are used to calculate the FTSE Standard Total Return Indices. All
Deletions
A stock will be deleted as a constituent if it is delisted from its stock exchange, becomes
bankrupt, files for bankruptcy protection, is insolvent or is liquidated, or where evidence of a
change in circumstances makes it ineligible for index inclusion.
COMPANY PROFILE
Motilal Oswal Securities (MOSL) was founded in 1987 as a small sub-broking unit,
with just two people running the show. Focus on customer-first-attitude, ethical and
transparent business practices, respect for professionalism, research-based value investing
and implementation of cutting-edge technology has enabled us to blossom into an almost
1600 member team.
Today we are a well diversified financial services firm offering a range of financial
products and services such as Wealth Management , Broking & Distribution , Commodity
Broking, Portfolio Management Services , Institutional Equities, Private Equity , Investment
Banking Services and Principal Strategies.
Company have a diversified client base that includes retail customers (including High
Net worth Individuals), mutual funds , foreign institutional investors, financial institutions
and corporate clients. We are headquartered in Mumbai and as of December 31st, 2012, had a
network spread over 555 cities and towns comprising 1,563 Business Locations operated by
our Business Partners and us. As at December 31st, 2011, we had 7,38,156 registered
customers
Motilal Oswal Financial Services (MOFSL) was founded in 1987 by Mr. Motilal
Oswal and Mr. Ramdeo Agrawal as a sub broking firm. In just three years Motilal Oswal
became members of on The Bombay Stock Exchange (BSE). It was incorporated in year
1995.
Motilal Oswal offers a wide range of financial services such as wealth management,
broking and distribution, commodity broking, portfolio management services, institutional
equities, private equity and investment banking services. It offers wealth management
services under the name Purple.
MOFSL has subsidiaries enveloping the different functions in the names of Motilal
Oswal Securities (MOSL), Motilal Oswal Investment Advisors (MOIA), Motilal Oswal
Commodities Broker (MOCBL) and Motilal Oswal Venture Capital Advisors (MOVC).
Motilal Oswal Financial Services is a known brand among retail and institutional
investors in India, with a presence in over 1533 business locations across over 487 cities.
AWARDS
Motilal Oswal Securities bagged the Best Performing Equity Broker (National)
Award at CNBC TV18 Financial Advisor Awards 2013 held in Mumbai.
(13/09/2013)
Motilal Oswal Securities Ltd. was awarded amongst the top 20 innovators in BFSI
space for Leveraging on Technology in enhancing customer experience
(8/11/2012)
'Rated No.1 Best recommendations Mid & Small Caps' and won awards in 3 out of 4
categories
(02/01/2009)
MOSL was 'Rated No.1 Best recommendations Mid & Small Caps' and won awards
in 3 out of 4 categories at the Starmine India Broker Rankings 2009 from Thomson
Reuters
03/16/2008
MOSL creates one of India's largest Equity Dealing & Advisory rooms, spread over 26,000
sq ft in Malad, Mumbai
Motilal Oswal was percieved as the most Research driven stock trading player
(12/09/2007)
Motilal Oswal was percieved as the most Research driven stock trading player Starcom Mediavest Survey
OUTLOOK
Motilal Oswal has launched Motilal Oswal - Exclusive, an innovative franchising model.
This new franchising model emphasizes on customer profiling, customer education and
superior customer experience.
Board of directors
1 Motilal Oswal
Chairman
2 Motilal Oswal
Managing Director
3 Navin Agarwal
Director
4 Motilal Oswal
5 Motilal Oswal
6 Raamdeo Agrawal
7 Balkumar Agarwal
Independent Director
8 Ramesh Agarwal
Independent Director
9 Madhav Bhatkuly
Independent Director
OVERVIEW
Motilal Oswal Financial Services Limited (MOFSL) is a diversified financial services
company offering a range of financial products and services, such as Broking and
Distribution, Institutional Equities, Wealth Management, Investment Banking, Private Equity
and Asset Management. The Companys subsidiaries include Motilal Oswal Securities Ltd
(MOSL), which is engaged in stock broking, wealth management and distribution of financial
products; Motilal Oswal Capital Markets Pvt Ltd, which is engaged in stock broking; Motilal
Oswal Commodities Broker Pvt Ltd, which is engaged in commodities broking; Motilal
Oswal Private Equity Advisors Pvt Ltd, which is engage in private equity management and
advisory, Motilal Oswal Investment Advisors Pvt Ltd, which is engaged in investment
banking, and Antop Trader Pvt Ltd, which is engaged in lease rental.
FINANCIALS
In 2006, the Company placed 9.48% of its equity with two leading private equity investors
based out of the US New Vernon Private Equity Limited and Bessemer Venture
Partners. The company got listed on BSE and NSE on September 9, 2007. The issue which
was priced at Rs.825 per share (face value Rs.5 per share) got a overwhelming response and
was subscribed 27.18 times in turbulent market conditions. The issue gave a return of 21% on
the date of listing. As of end of financial year 2008, the group networth was Rs.7 bn and
market capitalization as of March 31, 2008 was Rs.19 bnCredit rating agency Crisil has
assigned the highest rating of P1+ to the Companys short-term debt program.Shareholding
Pattern at on 30th June, 2011.
As of June 30th, 2011; the total shareholding of the Promoter and Promoter Group stood at
69.16%. The shareholding of institutions stood at 12.07% and non-institutions at 18.77%.
SERVICES OFFERED:
Online trading: Mothilal Oswal has a large network of branches with online
terminals of NSE andBSE in the Capital market and Derivative segments. The clients
are assured of prompt order execution through dedicated phones and expert dealers at
our offices.
Internet Trading: Mothilal oswaloffers Internet trading through this site. You can
trade through the internet from the comforts of your office or home, anywhere in the
world. The dedicated IT systems ensure service up time and speed, making Internet
broking through mothilal hassle-free. Using the 'easiest' facility provided by NDSL,
our clients can transfer the shares sold by them online without delivery instruction
slips. Additionally, digitally signed contract notes can be sent to clients through Email.
Derivative trading: Mothilal offers trading in the futures and options segment of the
National Stock Exchange (NSE). Through the present derivative trading an investor
can take a short-term view on the market for up to a three months perspective by
paying a small margin on the futures segment and a small premium in the options
segment. In the case of options, if the trade goes in the opposite direction the
maximum loss will be limited to the premium paid.
Commodity Trading: You can trade in commodity futures like gold, silver, crude
oil, rubber etc. and take advantage of the extended trading hours (10 am to 11 pm) in
commodities trading.
Mutual Funds, Bonds etc: We also offer Mutual Funds and Bonds. You can select
from a wide range of Mutual Funds and Bonds available in the markets today.
expecting to receive or pay certain amounts in foreign currencies at future date can
use these products to opt for a fixed rate - at which the currencies can be exchanged
now itself. An upfront premium is payable for buying a derivative. Currency Futures
will bring in more transparency and efficiency in price discovery, eliminate
counterparty credit risk, provide access to all types of market participants, offer
standardized products and provide transparent trading platform.
Competitors
DEPARTMENT PROFILE
Departmentalization creates flexibility, adaptability and in action within the firm by the
efficient and effective grouping of job into meaningful work units to coordinate
numerous jobs for the expeditors accomplishment of the organizational objectives. There
are mainly five departments in Mothilal
I.
II.
TECHNOLOGY DEPARTMENT
DISTRIBUTION DEPARTMENT
Distribution department is headed by the chief distribution officer and its main business
areas are sales of mutual funds, insurance, bonds, IPO's and fixed deposits etc.
IV.
FINANCE DEPARTMENT
Finance department is headed by chief financial officer and under this department they
have various departments like finance and accounts, risk and investment and NBFC
operations.
V.
Human resource department is headed by the chief of the human resources and their
functions are training and development of employee, recruitment, payroll, provident
fund, ESI etc. There are certain small departments. They are legal, complaints,
administration, company secretariats and corporate communication etc.
THEORATICAL BACKGROND OF THE STUDY
An investor who would like to be rational and scientific in his investment activity has to
evaluate a lot of information about the past performance and the expected future
performance of companies, industries and the economy as a whole before taking the
investment decision. Such evaluation or analysis is called fundamental analysis.
Fundamental analysis is the analysis of critical factors that affect the value of a stock.
The intrinsic value of an equity share depends on a multitude of factors.
Each share is assumed to have an economic worth based on its present and future earning
capacity. This is called its intrinsic value or fundamental value. The purpose of
fundamental analysis is to evaluate the present and future earning capacity of a share
based on the economy, industry and company fundamentals and thereby assess the
intrinsic value of the share.
If market price < intrinsic value buy
If market price > intrinsic value sell
Fundamental analyst believes that market price a reflection of its intrinsic value.
Fundamental analysis is a combination of economy, industry and company analysis to
obtain a stocks current fair value and predict its future. This kind of fundamental
analysis is also known as top-down approach because the analysis starts from an
analysis of the economy, moves to industry and narrows down to the company. This is
also called EIC (Economy, Industry, and Company) analysis.
ECONOMIC ANALYSIS
Economic analysis is a study of the general economic factors that go into an evaluation
of a securitys value. The stock market is an integral part of the economy. An analysis of
the macroeconomic environment is essential to understand the behaviour of stock prices.
The commonly analysed macroeconomic factors are as follows:
Inflation
Interest rates
Tax structure
Balance of payment
Infrastructural facilities
Favourable
Unfavourable
Impact
Impact
1.
GDP/Growth rate
2.
High
Low
3.
Inflation
Low
High
4.
Interest rate
Low
High
5.
Tax structure
Low
High
6.
High
Low
7.
Balance of payment
Positive
Negative
8.
High
Low
9.
Low
High
10.
High
Low
11.
Infrastructural facilities
Good
Not good
INDUSTRY ANALYSIS
An investor ultimately invests his money in the securities of one or more
specific companies. Each company can be characterized as belonging to an industry. For
this reason an analyst has to undertake an industry analysis so as to study the
fundamental factors affecting the performance of different industries.
Concerned with the basis of industry analysis, this section is divided into three parts;
1.
2.
3.
Many industrial economists believe that the development of almost all every industry
may be analyzed in terms of lifecycle with four well defined stages;
i.
Pioneering stage
During this stage, the technology and or the product is relatively new and rapid growth in
demand for the output of industry. As a result there is a great opportunity for profit.
Large number of companies attempt to capture their share of the market.
ii.
Firms which survive the intense competition of the pioneering stage, witness significant
expansion in their sales and profits.
iii.
During this stage, when the industry is more or less fully developed, its growth rate is
comparable to that of the economy as a whole.
iv.
Decline stage
With the satiation of demand, encroachment of new products, and changes in consumer
preferences, the industry eventually enters the decline stage relative to the economy as a
whole.
INDUSTRY
Industry analysis should focus on the following;
a)
the industry.
ii. Licencing policy of the government.
iii. Entry barriers, if any
iv. Pricing policies of the firm.
b)
Proportions of the key cost elements, namely, raw materials, labour, utilities and
fuel
ii.
d)
Productivity of labour
Technology and research
i.
ii.
ii.
iii.
iv.
v.
Internal information consists of data and events made public by companies concerning
their operations
In company analysis, the analyst tries to forecast the future earnings of the
company because there is strong evidence those earnings have a direct and powerful
effect upon share prices. The level, trend and stability of earnings of a company,
however, depend upon a number of factors concerning the operations of the company.
CHPTER 3
RESEARCH METHEDOLOGY
RESEARCH METHODOLOGY
Research methodology is a way to solve the research problem systematically. It can be
understood as a science of studying how research is done scientifically therefore the research
methodology not only talks about the research methods but also considers the logic behind
the method used in the context of the research study.
RESEARCH DESIGN
Research Design is the conceptual structure within which the research isconducted, A researc
h is the arrangement of conditions for the collection and analysis of data in a manner that
aims
ANALYTICAL AND DESCRIPTIVE RESEARCH DESIGN
ANALYTICAL DESIGN
The researcher has to use facts or information already availability and analyse these to make
a critical evaluation of the materials.
DESCRIPTIVE RESEARCH
STUDY APPROACH
A significant contribution of the fundamental models is that they provide for the
calculation of a number of financial ratios. These ratios are then used to assess the
financial health of a company, and to compare directly to the ratios for different
companies, which found that stocks with a high book-to-market value yielded higher
long-term returns. There is a long established tradition of attempting to use these
fundamental ratios as predictors of a companys future share price.
RETURN ON EQUITY
Return on equity capital, which is the relationship between profits of a company and its
equity capital. This ratio is more meaningful to the equity shareholders who are
interested to know profits earned by the company and those profits, which can be made
available to pay dividend to them.
Return on equity = Profit after tax / Net wort
PRICE EARNING RATIO
Price earning ratio is the ratio between market price per equity share and earn-ings per
share. The ratio is calculated to make an estimate of appreciation in the value of a share
of a company and is widely used by investors to decide whether or not to buy share in a
particular company.
Price earning ratio = Market price / EPS
LONG TERM GROWTH RATE
Long-term growth rate is the relationship between average retention ratio and average
return on equity. This ratio is help to find the long term growth rate of the share.
Long term growth rate = Average retention ratio * Average ROE
SAMBLING TECHNIQUES
A variety of sampling techniques is available. The one selected depends on the requirements
of the project and its objectives. The various methods of sampling have been classified basing
on the representation probability or non probability and on element selection-restricted.
The sampling technique selected for conducting this study is judgment sampling. This is a
restricted and non- probabilistic method of sampling; where the sample consisting of five
banks has been selected on basis of the financial position of the company.
CHAPTER 5
DATA ANALYSIS AND INTERPRETATION
INDUSTRY ANALYSIS
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.
History
In ancient India there is evidence of loans from the Vedic period (beginning 1750 BC).
Later during the Maurya dynasty (321 to 185 BC), an instrument called adesha was in
use, which was an order on a banker desiring him to pay the money of the note to a third
person, which corresponds to the definition of a bill of exchange as we understand it
today. During the Buddhist period, there was considerable use of these instruments.
Merchants in large towns gave letters of credit to one another.
Colonial era
During the period of British rule merchants established the Union Bank of Calcutta in
1829, first as a private joint stock association, then partnership. Its proprietors were the
owners of the earlier Commercial Bank and the Calcutta Bank, who by mutual consent
created Union Bank to replace these two banks. In 1840 it established an agency at
Singapore, and closed the one at Mirzapore that it had opened in the previous year. Also
in 1840 the Bank revealed that it had been the subject of a fraud by the bank's
accountant. Union Bank was incorporated in 1845 but failed in 1848, having been
insolvent for some time and having used new money from depositors to pay its
dividends.
The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint
Stock bank in India; it was not the first though. That honour belongs to the Bank of
Upper India, which was established in 1863, and which survived until 1913, when it
failed, with some of its assets and liabilities being transferred to the Alliance Bank of
Simla. Foreign banks too started to appear, particularly in Calcutta, in the 1860s. The
Comptoir d'Escompte de Paris opened a branch in Calcutta in 1860, and another in
Bombay in 1862; branches in Madras and Pondicherry, then a French possession,
followed. HSBC established itself in Bengal in 1869. Calcutta was the most active
trading port in India, mainly due to the trade of the British Empire, and so became a
banking centre.
The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in
1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank, established
in Lahore in 1895, which has survived to the present and is now one of the largest banks
in India. Around the turn of the 20th Century, the Indian economy was passing through a
relative period of stability. Around five decades had elapsed since the Indian Mutiny, and
the social, industrial and other infrastructure had improved. Indians had established small
banks, most of which served particular ethnic and religious communities.
The presidency banks dominated banking in India but there were also some exchange
banks and a number of Indian joint stock banks. All these banks operated in different
segments of the economy. The exchange banks, mostly owned by Europeans,
concentrated on financing foreign trade. Indian joint stock banks were generally
undercapitalized and lacked the experience and maturity to compete with the presidency
and exchange banks. This segmentation let Lord Curzon to observe, "In respect of
banking it seems we are behind the times. We are like some old fashioned sailing ship,
divided by solid wooden bulkheads into separate and cumbersome compartments."
The period between 1906 and 1911, saw the establishment of banks inspired by the
Swadeshi movement. The Swadeshi movement inspired local businessmen and political
figures to found banks of and for the Indian community. A number of banks established
then have survived to the present such as Bank of India, Corporation Bank, Indian Bank,
Bank of Baroda, Canara Bank and Central Bank of India. The fervour of Swadeshi
movement lead to establishing of many private banks in Dakshina Kannada and Udupi
district which were unified earlier and known by the name South Canara ( South
Kanara ) district. Four nationalised banks started in this district and also a leading private
sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian
Banking".
During the First World War (19141918) through the end of the Second World War
(19391945), and two years thereafter until the independence of India were challenging
for Indian banking. The years of the First World War were turbulent, and it took its toll
with banks simply collapsing despite the Indian economy gaining indirect boost due to
war-related economic activities. At least 94 banks in India failed between 1913 and 1918
as indicated in the following table:
Authorised capital
Paid-up Capital
that failed
(Rs. Lakhs)
(Rs. Lakhs)
1913
12
274
35
1914
42
710
109
1915
11
56
1916
13
231
1917
76
25
1918
209
Years
Post-Independence
The partition of India in 1947 adversely impacted the economies of Punjab and West
Bengal, paralysing banking activities for months. India's independence marked the end of
a regime of the Laissez-faire for the Indian banking. The Government of India initiated
measures to play an active role in the economic life of the nation, and the Industrial
Policy Resolution adopted by the government in 1948 envisaged a mixed economy. This
resulted into greater involvement of the state in different segments of the economy
including banking and finance. The major steps to regulate banking included:
The Reserve Bank of India, India's central banking authority, was established in
April 1935, but was nationalised on 1 January 1949 under the terms of the Reserve Bank
of India (Transfer to Public Ownership) Act, 1948 (RBI, 2005b).
In 1949, the Banking Regulation Act was enacted which empowered the Reserve
Bank of India (RBI) "to regulate, control, and inspect the banks in India".
The Banking Regulation Act also provided that no new bank or branch of an
existing bank could be opened without a license from the RBI, and no two banks could
have common directors.
Nationalization in the 1960s
Despite the provisions, control and regulations of the Reserve Bank of India, banks in
India except the State Bank of India or SBI, continued to be owned and operated by
private persons. By the 1960s, the Indian banking industry had become an important tool
to facilitate the development of the Indian economy. At the same time, it had emerged as
a large employer, and a debate had ensued about the nationalization of the banking
industry. Indira Gandhi, the then Prime Minister of India, expressed the intention of the
Government of India in the annual conference of the All India Congress Meeting in a
paper entitled "Stray thoughts on Bank Nationalization." The meeting received the paper
with enthusiasm.
Thereafter, her move was swift and sudden. The Government of India issued an
ordinance ('Banking Companies (Acquisition and Transfer of Undertakings) Ordinance,
1969')) and nationalised the 14 largest commercial banks with effect from the midnight
of 19 July 1969. These banks contained 85 percent of bank deposits in the country.
Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of
political sagacity." Within two weeks of the issue of the ordinance, the Parliament
passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it
received the presidential approval on 9 August 1969.
A second dose of nationalisation of 6 more commercial banks followed in 1980. The
stated reason for the nationalisation was to give the government more control of credit
delivery. With the second dose of nationalisation, the Government of India controlled
around 91% of the banking business of India. Later on, in the year 1993, the government
merged New Bank of India with Punjab National Bank. It was the only merger between
nationalised banks and resulted in the reduction of the number of nationalised banks
from 20 to 19. After this, until the 1990s, the nationalised banks grew at a pace of around
4%, closer to the average growth rate of the Indian economy.
In the early 1990s, the then government embarked on a policy of liberalization, licensing
a small number of private banks. These came to be known as New Generation tech-savvy
banks, and included Global Trust Bank (the first of such new generation banks to be set
up), which later amalgamated with Oriental Bank of Commerce, UTI Bank (since
renamed Axis Bank), ICICI Bank and HDFC Bank. This move, along with the rapid
growth in the economy of India, revitalised the banking sector in India, which has seen
rapid growth with strong contribution from all the three sectors of banks, namely,
government banks, private banks and foreign banks.
The next stage for the Indian banking has been set up with the proposed relaxation in the
norms for Foreign Direct Investment, where all Foreign Investors in banks may be given
voting rights which could exceed the present cap of 10%,at present it has gone up to 74%
with some restrictions.
The new policy shook the Banking sector in India completely. Bankers, till this time,
were used to the 464 method (Borrow at 4%; Lend at 6%; Go home at 4) of
functioning. The new wave ushered in a modern outlook and tech-savvy methods of
working for traditional banks. All this led to the retail boom in India. People not just
demanded more from their banks but also received more.
Current period
By 2013, banking in India was generally fairly mature in terms of supply, product range
and reach-even though reach in rural India still remains a challenge for the private sector
and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are
considered to have clean, strong and transparent balance sheets relative to other banks in
comparable economies in its region. The Reserve Bank of India is an autonomous body,
with minimal pressure from the government.
With the growth in the Indian economy expected to be strong for quite some timeespecially in its services sector-the demand for banking services, especially retail
banking, mortgages and investment services are expected to be strong. One may also
expect M&As, takeovers, and asset sales.
In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake
in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor
has been allowed to hold more than 5% in a private sector bank since the RBI announced
norms in 2005 that any stake exceeding 5% in the private sector banks would need to be
vetted by them.
In recent years critics have charged that the non-government owned banks are too
aggressive in their loan recovery efforts in connexion with housing, vehicle and personal
loans. There are press reports that the banks' loan recovery efforts have driven defaulting
borrowers to suicide.
Adoption of banking technology
The IT revolution has had a great impact on the Indian banking system. The use of
computers has led to the introduction of online banking in India. The use of computers in
the banking sector in India has increased many fold after the economic liberalisation of
1991 as the country's banking sector has been exposed to the world's market. Indian
banks were finding it difficult to compete with the international banks in terms of
customer service, without the use of information technology.
The RBI set up a number of committees to define and co-ordinate banking technology.
These have included:
(1984) whose chairman was Dr. C Rangarajan, Deputy Governor, Reserve Bank of India.
The major recommendations of this committee were introducing MICR technology in all
the banks in the metropolises in India. This provided for the use of standardized cheque
forms and encoders.
Cheque Clearing and Securities Settlement in the Banking Industry (1994) was set up
under Chairman W S Saraf. It emphasized Electronic Funds Transfer (EFT) system, with
the BANKNET communications network as its carrier. It also said that MICR clearing
should be set up in all branches of all those banks with more than 100 branches.
Regulatory environment
Government Support
WEAKNESSES
Increasing NPA
Low penetration
OPPORTUNITIES
Modern Technology
Globalization
THREATS
Customer dissatisfaction
COMPANY ANALYSIS
STATE BANK OF INDIA
Type
Public
Traded as
NSE: SBIN
BSE: 500112
LSE: SBID
BSE SENSEX Constituent
CNX Nifty Constituent
Industry
Founded
Headquarters
Area served
Worldwide
Key people
Arundhati Bhattacharya
(Chairperson)
Products
Revenue
Profit
Total assets
Total equity
Owner
Government of India
Number of
222,033 (2014)
employees
Slogan
Website
www.sbi.co.in
State Bank of India (SBI) is a multinational banking and financial services company
based in India. It is a government-owned corporation with its headquarters in Mumbai,
Maharashtra. As of December 2013, it had assets of US$388 billion and 16,000
branches, including 190 foreign offices, making it the largest banking and financial
services company in India by assets.
State Bank of India is one of the Big Four banks of India, along with ICICI Bank, Punjab
National Bank and Bank of Baroda.
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 bank in the
Indian Subcontinent. Bank of Madras merged into the other two presidency banks
Bank 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 is a regional banking behemoth and has 20% market share in deposits and loans
among Indian commercial banks.
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 reorganised 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 the
Dukan Pichadi, a small moneylender, owned by the Maharaja. The new banks first
manager was Jall N. Broacha, a Parsi. In 1985, SBI acquired the 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 wordmark usually has one standard typeface, but
also utilises other typefaces.
In Nigeria, SBI operates as INMB Bank. This bank began 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 55% 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.
The State Bank of India already has a branch in Shanghai and plans to open one in
Tianjin.
In Kenya, State Bank of India owns 76% of Giro Commercial Bank, which it acquired
for US$8 million in October 2005.
Associate banks
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:
Earlier SBI had seven associate banks, all of which had belonged to princely states until
the government nationalised them between October 1959 and May 1960. In tune with the
first Five Year Plan, which prioritised the development of rural India, the government
integrated these banks into State Bank of India system to expand its rural outreach. There
has been a proposal to merge all the associate banks into SBI to create a "mega bank"
and streamline the group's operations.
The first step towards unification occurred on 13 August 2008 when State Bank of
Saurashtra merged with SBI, reducing the number of associate state banks from seven to
six. Then on 19 June 2009 the SBI board approved the absorption of State Bank of
Indore. SBI holds 98.3% in State Bank of Indore. (Individuals who held the shares prior
to its takeover by the government hold the balance of 1.77%.)
The acquisition of State Bank of Indore added 470 branches to SBI's existing network of
branches. Also, following the acquisition, SBI's total assets will inch very close to the 10
trillion mark (10 billion long scale). The total assets of SBI and the State Bank of Indore
stood at 9,981,190 million as of March 2009. The process of merging of State Bank of
Indore was completed by April 2010, and the SBI Indore branches started functioning as
SBI branches on 26 August 2010.
Non-banking subsidiaries
Apart from its five associate banks, SBI also has the following non-banking subsidiaries:
In March 2001, SBI (with 74% of the total capital), joined with BNP Paribas (with 26%
of the remaining capital), to form a joint venture life insurance company named SBI Life
Insurance company Ltd. In 2004, SBI DFHI (Discount and Finance House of India) was
founded with its headquarters in Mumbai.
Other SBI service points
SBI has 27,000+ ATMs and SBI group (including associate banks) has 32,752 ATMs.
SBI has become the first bank to install an ATM at Drass in the Jammu & Kashmir
Kargil region. This was the Bank's 27,032nd ATM on 27 July 2012.
The logo of the State Bank of India is a blue circle with a small cut in the bottom
that depicts perfection and the small man the common man - being the center of the
bank's business.
Shareholding
62.31%
Insurance Companies
11.90%
09.79%
Individual shareholders
05.70%
GDRs
02.71%
Others
07.59%
Shareholding
promoters :Govt.of
India
insurance compnies
foreign institutional
investors
individual shareholders
GDRs
Others
SBI was ranked 298th in the Fortune Global 500 rankings of the world's biggest
SBI won "Best Public Sector Bank" award in the D&B India's study on 'India's Top
Banks 2013'.
State Bank of India won three IDRBT Banking Technology Excellence Awards
2013 for Electronic Payment Systems, Best use of technology for Financial
Inclusion, and Customer Management & Business Intelligence in the large bank
category.
SBI won National Award for its performance in the implementation of Prime
Ministers Employment Generation Programme (PMEGP) scheme for the year 2012.
Best Online Banking Award, Best Customer Initiative Award & Best Risk
SKOCH Award 2010 for Virtual corporation Category for its e-payment solution
SBI was the only bank featured in the "top 10 brands of India" list in an annual
The Bank of the year 2009, India (won the second year in a row) by The Banker
Magazine
Best Bank Large and Most Socially Responsible Bank by the Business Bank
Awards 2009
SBI was named the 29th most reputed company in the world according to Forbes
2009 rankings
Most Preferred Bank & Most preferred Home loan provider by CNBC
SBI was 11th most trusted brand in India as per the Brand Trust Report 2010.
Major competitors
Some of the major competitors for SBI in the banking sector are Axis Bank, ICICI Bank,
HDFC Bank, Punjab National Bank, Bank of Baroda, Canara Bank and Bank of India.
However in terms of average market share, SBI is by far the largest player in the market.
YES BANK
Type
Public company
Traded as
BSE: 532648
NSE: YESBANK
Industry
Founded
2004
Founder
Headquarters
Mumbai, India
Key people
Products
Revenue
Net income
Total assets
Website
www.yesbank.in
Yes Bank is a private bank in India. It was founded by Ashok Kapur and Rana Kapoor,
with the duo holding a collective financial stake of 27.16%. Mr.Ashok Kapur was killed
in a terrorist attack in 2008 in Mumbai.
In 2010, the bank announced the roll-out of a strategic blueprint, named Version 2.0 of
the bank, to further accelerate its business growth in the retail banking space, with the
objective to achieve by 2015, a balance sheet size of 150,000 crore, deposits of 125,000
crore, advances of 100,000 crore, a pan India network of 900 branches and a human
capital base of 12750 by 2015.
Commercial Banking
Yes Bank also competes in the South Asian commercial banking market. Commercial
banking is essentially the equivalent of retail banking for commercial entities, but is
however generally more expensive and accounts yield less interest, since corporate firms
don't generally regard earning interest as a major component of their need for banking
services.
Branch Banking
Business Banking
Yes Bank is a major competitor in the business banking sector of the Indian economy,
especially amongst smaller- and medium-sized clients. Business banking is centred
primarily on Cash Handling, Payment, Direct Banking, Liabilities and Investment, and
Trade services.
Retail Banking
Retail Banking is the general branch of banking, targeted at private individuals.
Customers are currently being handled by a branch network, composed of over 500
branches across the country with 1122+ ATMs, and Internet Banking facilities.
Investment Banking
Yes Bank's Investment Banking division consists of domestic and cross-border Mergers
and Acquisitions, Joint Venture Advisory Services, Private Equity Placement as well as
Merchant Banking Services across select industry verticals.
Financial Marketing- The Financial Markets (FM) business model provides Risk
Management solutions related to foreign currency and interest rate exposures of clients.
Awards
YES BANK awarded with The Strongest Bank Balance Sheet in India by the Asian
Banker Magazine.
Shareholders
Shareholding
Promoters
26.13
Individual
8.97
Institutions
15.62
FIIs
46.62
Government
Others
2.66
Shareholding pattern
MUTUAL FUND AND UTI - II
DEUTSCHE BANK TRUST CO.
INSURANCE COMPANIES
INDIVIDUALS
BANKS,FINANCIAL
INSTITUTUIONS AND UTI
BODIES CORPORATE
ICICI BANK
Type
Traded as
Public company
BSE: 532174
NSE: ICICIBANK
NYSE: IBN
Industry
Founded
1994
Headquarters
Area served
Worldwide
Key people
Products
Revenue
Operating
income
Profit
Total assets
Total equity
Number of
67,857 (2015)[7]
employees
Website
www.icicibank.com
investment banking, life and non-life insurance, venture capital and asset management.
The Bank has a network of 3,514 branches and 11,063 ATM's in India, and has a
presence in 19 countries.
ICICI Bank is one of the Big Four banks of India, along with State Bank of India, Punjab
National Bank and Bank of Baroda. 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 and
Indonesia. The company's UK subsidiary has established branches in Belgium and
Germany.
In March 2013, Operation Red Spider showing high-ranking officials and some
employees of ICICI Bank involved in money laundering. After a government inquiry,
ICICI Bank suspended 18 employees and faced penalties from the Reserve Bank of India
in relation to the activity.
Corporate history
ICICI Bank was established by the Industrial Credit and Investment Corporation of
India, an Indian financial institution, as a wholly owned subsidiary in 1955. The parent
company was formed in 1955 as a joint-venture of the World Bank, India's public-sector
banks and public-sector insurance companies to provide project financing to Indian
industry. The bank was initially known as the Industrial Credit and Investment
Corporation of India Bank, before it changed its name to the abbreviated ICICI Bank.
The parent company was later merged with the bank.
ICICI Bank launched internet banking operations in 1998.
ICICI's shareholding in ICICI Bank was reduced to 46 percent, through a public offering
of shares in India in 1998, followed by an equity offering in the form of American
Depositary Receipts on the NYSE in 2000. ICICI Bank acquired the Bank of Madura
Limited in an all-stock deal in 2001 and sold additional stakes to institutional investors
during 2001-02.
In the 1990s, ICICI transformed its business from a development financial institution
offering only project finance to a diversified financial services group, offering a wide
variety of products and services, both directly and through a number of subsidiaries and
affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first
bank or financial institution from non-Japan Asia to be listed on the NYSE.
In 2000, ICICI Bank became the first Indian bank to list on the New York Stock
Exchange with its five million American depository shares issue generating a demand
book 13 times the offer size.
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger
of ICICI and two of its wholly owned retail finance subsidiaries, ICICI Personal
Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The
merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the
High Court of Gujarat at Ahmedabad in March 2002 and by the High Court of Judicature
at Mumbai and the Reserve Bank of India in April 2002.
In 2008, following the 2008 financial crisis, customers rushed to ICICI ATMs and
branches in some locations due to rumours of adverse financial position of ICICI Bank.
The Reserve Bank of India issued a clarification on the financial strength of ICICI Bank
to dispel the rumours.
Corporate governance
Group Anti Money Laundering Policy: The ICICI Group AML Policy establishes
Code of Conduct: ICICI Bank has formulated a Code of Business Conduct and
offerings which include credit ratings, capital market information, industry analysis and
detailed reports.
to create a facilitative environment for the resolution of distressed debt in India. ARCIL
was established to acquire Non Performing Assets (NPAs) from financial institutions and
banks with a view to enhance the management of these assets and help in the
maximisation of recovery. This would relieve institutions and banks from the burden of
pursuing NPAs, and allow them to focus on core banking activities.
Credit Information Bureau of India Limited
ICICI Bank has also helped in setting up Credit Information Bureau of India Limited
(CIBIL), Indias first national credit bureau in 2000. CIBIL provides a repository of
information (which contains the credit history of commercial and consumer borrowers)
to its members in the form of credit information reports. The members of CIBIL include
banks, financial institutions, state financial corporations, non-banking financial
companies, housing finance companies and credit card companies.
access to elementary education for underprivileged children in the age group of 314
years including girls and tribal children from the remote rural areas. The Read to Lead
initiative supports partner NGOs to design and implement programmes that mobilise
parent and community involvement in education, strengthen schools and enable children
to enter and complete formal elementary education. Read to Lead has reached out to
100,000 children across 14 states of Andhra Pradesh, Bihar, Delhi, Gujarat, Haryana,
Jharkhand, Karnataka, Maharashtra, Orissa, Rajasthan, Tamil Nadu, Tripura, Uttar
Pradesh and West Bengal.
In Phase II of the Read to Lead programme, ICICI Bank has supported the establishment
of 63 libraries that will reach out to approximately 7,200 children in the rural areas of
Flexibility: Flexible recurring deposit allows a customer to deposit any amount at any
point of time. Customers also have an option of depositing money by giving a
standing instruction.
Better returns: Customers can earn recurring deposit interest rates on their iWish
account while enjoying the freedom of not having to deposit every month.
Sharing: Customers can choose to share their wishes on Facebook and let their
friends and family be part of their dreams.
ICICI Bank has developed this product in collaboration with Social Money.
Go Green Initiative
The Go Green Initiative is an organisation wide initiative that moves beyond moving
people, processes and customers to cost effective automated channels to build awareness
and consciousness of our environment,our nation and our society.
Objective
ICICI Banks Green initiative is to make healthy environment in the organisation i.e.; to
create intrapersonal skills amongs the customer and understanding between employees of
the organisation.
Vehicle Finance
As an initiative towards more environment friendly way of life, Auto loans offer 50%
waiver on processing fee on car models which uses alternate mode of energy. The
models identified for the purpose are, Maruti's LPG version of Maruti 800, Omni and
Versa, Hyundai's Santro Eco, Civic Hybrid of Honda, Reva electric cars, Tata Indica
CNG and Mahindra Logan CNG versions.
International
Acquisitions
1997: ITC Classic Finance. Incorporated in 1986, ITC Classic was a non-bank
financial firm that engaged in hire purchase, and leasing operations. At the time of being
acquired, ITC Classic had eight offices, 26 outlets, and 700 brokers.
Gujarat, Rajasthan, and Maharashtra that were primarily engaged in retail financing of
cars and trucks. It also had some 250,000 depositors.
2007: Sangli Bank. Sangli Bank was a private sector unlisted bank, founded in
1916, and 30% owned by the Bahte family. Its headquarter were in Sangli in
Maharashtra, and it had 198 branches. It had 158 in Maharashtra and 31 in Karnataka,
and others in Gujarat, Andhra Pradesh, Tamil Nadu, Goa, and Delhi. Its branches were
relatively evenly split between metropolitan areas and rural or semi-urban areas.
2010: The Bank of Rajasthan (BOR) was acquired by the ICICI Bank in 2010 for
3,000 crores. RBI was critical of BOR's promoters not reducing their holdings in the
company. BOR has since been merged with ICICI Bank.
Awards
2004
2007
ICICI Bank has been conferred the Euromoney Award 2007 for the Best Bank in
ICICI Bank wins the Excellence in Remittance Business award by The Asian
Banker
2009
ICICI Bank bags the "Best bank in SME financing (Private Sector)" at the Dun &
ICICI Bank is the only Indian brand to figure in the BrandZ Top 100 Most
ICICI Bank ranked 5th in the list of "57 Indian Companies", and 288 th in World
ICICI Bank has won the "Banking Technology Awards 2010" at The Indian Banks
ICICI Bank was recognised for its Special Citation of the Fully Electronic Branch
Service Channel, first set up at Hiranandani Estate, Thane, at the Financial Insights
Innovation Awards held in conjunction with Asian Financial Services Congress
For the second year in a row, ICICI Bank was ranked 70th in the Brandirectory
league tables of the worlds most valuable brands by, The BrandFinance Banking 500
ICICI Bank was ranked 1st in the Banking and Finance category and 9th in the
ICICI Bank UK, HiSAVE product range has been awarded the Consumer
For the second consecutive year, ICICI Bank was ranked second in the "India's 50
ICICI Bank was one of the winners in the Global Awards for Enterprise & IT
Architecture Excellence. ICICI Bank bagged the award in the Business Intelligence and
Analytics' category.
The Brand Trust Report ranks ICICI among the top 4 most trusted financial
institutions.
ICICI Bank awarded "House Of The Year (India)", by Asia Risk magazine, for
ICICI Bank awarded the most Tech-friendly Bank award by Business World
ICICI Bank received the Best Trade Finance Bank in India by The Asset Triple A
ICICI Bank is the first and the only Indian brand to be ranked as the 45th most
ICICI Bank won the "Best Bond House (India) 2011", by IFR Asia
ICICI Bank won the "Century International Quality Era Award" at Geneva
ICICI Bank was awarded the "Best Foreign Exchange Bank (India)" by Finance
ICICI Bank received the "Dataquest Technology Innovation Awards 2012" for
ICICI Bank was conferred the Best Performance Award for Self Help Group
(SHG) Bank Linkage Programme in NABARD's State Level Awards announced by their
Maharashtra Regional Office. The Bank received the first prize for the year 2010-11 in
the Private Sector Bank category and 2nd runner up for the year 2011-12 in the
Commercial Bank category.
For the second consecutive year, ICICI Bank won the NPCI's NFS Operational
Excellence Awards in the MNC and Private Sector Banks Category for its ATM
network.
Mr.K.V.Kamath was awarded the "Hall Of Fame" by Outlook Money for his long
ICICI Bank won the Best Bank - India Award by The Banker.
Ms. Chanda Kochhar ranked 18th in the Fortune's list of '2012 Businesspersons of
the Year'. The 50 global leaders is Fortune's annual ranking of leaders who are "the best
in business".
Ms. Chanda Kochhar tops the list of "50 Most Powerful Women in Business" by
Fortune India.
ICICI Bank tops the list of "Private sector and Foreign Banks" by Brand Equity,
Most Trusted Brands 2012. It ranks 15th in the "Top Service 50 Brands".
For the third consecutive year, ICICI Bank ranked second in "India's 50 Biggest
For the second year in a row, Ms. Chanda Kochhar, Managing Director & CEO
was ranked 5th in the International list of 50 Most Powerful Women In Business by
Fortune.
ICICI Bank tops the list of most fans in India and globally ranks fifth amongst
ICICI Bank in the Private Sector Bank category won the Best Technology Bank Of
The Year, Best Financial Inclusion Initiative and Best Use Of Technology In Training
and e-Learning by Indian Bank's Association (IBA) Technology Awards. The Bank also
received the first runner up for Best Online Bank, Best Customer Relationship Initiative
and Best Use Of Mobility Technology in Banking by IBA Technology Awards .
ICICI Bank awarded the Best SME Bank for Treasury and Working Capital (India)
ICICI Bank received the Best Trade Finance House and Best Cash Management
ICICI Bank awarded the Best Private Sector Bank in Global Business
Development, Rural Reach and SME financing categories by Dun & Bradstreet - Polaris
Financial Technology Banking Awards.
2013
ICICI Bank awarded the Most Admired Infrastructure Debt Financer and PPP
Project of the Year: Yamuna Expressway Project, in the 5th KPMG Infrastructure Today
Awards by ASAPP Media Information Group
ICICI Bank Limited has been conferred the Best Remittance Business award at
The Asian Banker's International Excellence in Retail Financial Services 2013 Awards
ceremony.
ICICI Bank was honored with the Medici Innovation Hall of Fame Award,
instituted by The Medici Institute in collaboration with the Medici Group, USA.
ICICI Bank and its IT partner Fundtech won The Asian Banker Technology
Implementation Award for the Convergence Banking project from Asian Banker.
Ms. Chanda Kochhar, MD & CEO, was ranked as the most powerful business
woman in India in Forbes' list of 'The World's 100 Most Powerful Women 2013'.
Ms. Chanda Kochhar, MD & CEO, was also featured in the Power List 2013 of 25
most powerful women in Inda by India Today, for the third year in a row.
ICICI Bank won an award under the Social Media category at the
Shareholders
Shareholding
7.76
29.16
Insurance Co.
16.71
Individuals
5.12
0.03
Bodies corporate
2.5
38.52
Shareholding
MUTUAL FUND AND UTI II
DEUTSCHE BANK TRUST
CO.
INSURANCE COMPANIES
INDIVIDUALS
BANKS,FINANCIAL
INSTITUTUIONS AND UTI
BODIES CORPORATE
BANK OF BARODA
Type
Public
Traded as
BSE: 532134
Industry
Founded
20 July 1908
Founder
Headquarters
Area served
Worldwide
Key people
Products
Owner
Government of India
Website
www.bankofbaroda.com
Bank of Baroda (BoB) is an Indian state-owned banking and financial services company
headquartered in Baroda, or Vadodara. It offers a range of banking products and
financial services to corporate and retail customers through its branches and through its
specialised subsidiaries and affiliates in the areas of retail banking, investment banking,
credit cards, and asset management. Its total global business was 8,021 billion as of 31
March 2013, making it the second largest Bank in India after State Bank of India. In
addition to its headquarters in its home state of Gujarat, it has a corporate headquarters in
the Bandra Kurla Complex in Mumbai.
Based on 2012 data, it is ranked 715 on Forbes Global 2000 list. BoB has total assets in
excess of 3.58 trillion (short scale), 3,583 billion (long scale), a network of 4283
branches (out of which 4172 branches are in India) and offices, and over 2000 ATMs.
The bank was founded by the Maharaja of Baroda, H. H. Sir Sayajirao Gaekwad III on
20 July 1908 in the Princely State of Baroda, in Gujarat. The bank, along with 13 other
major commercial banks of India, was nationalised on 19 July 1969, by the Government
of India and has been designated as a profit-making public sector undertaking (PSU).
Bank of Baroda is one of the Big Four banks of India, along with State Bank of India,
ICICI Bank and Punjab National Bank.
History
19081959
In 1908, Maharaja Sayajirao Gaekwad III, one of the knights of the Maratha Kingdom,
set up the Bank of Baroda (BoB). with other stalwarts of industry such as Sampatrao
Gaekwad, Ralph Whitenack, Vithaldas Thakersey, Tulsidas Kilachand and NM Chokshi.
Two years later, BoB established its first branch in Ahmedabad. The bank grew
domestically, until after World War II. Then in 1953 it crossed the Indian Ocean to serve
the communities of Indians in Kenya and Indians in Uganda by establishing a branch
each in Mombasa and Kampala. The next year it opened a second branch in Kenya, in
Nairobi, and in 1956 it opened a branch in Dar-es-Salaam. Then in 1957 BoB took a
giant step abroad by establishing a branch in London. London was the center of the
British Commonwealth and the most important international banking center. 1959 saw
BoB complete its first domestic acquisition when it took over Hind Bank.
1960s
In 1961, BoB merged in New Citizen Bank of India. This merger helped it increase its
branch network in Maharashtra. BoB also opened a branch in Fiji. The next year it
opened a branch in Mauritius. Bank of Baroda In 1963, BoB acquired Surat Banking
Corporation in Surat, Gujarat. The next year BoB acquired two banks: Umbergaon
Peoples Bank in southern Gujarat and Tamil Nadu Central Bank in Tamil Nadu state.
In 1965, BoB opened a branch in Guyana. That same year BoB lost its branch in
Narayanjanj (East Pakistan) due to the Indo-Pakistani War of 1965. It is unclear when
BoB had opened the branch. In 1967 it suffered a second loss of branches when the
Tanzanian government nationalised BoBs three branches there (Dar es Salaam,
Mwanga, and Moshi), and transferred their operations to the Tanzanian governmentowned National Banking Corporation.
In 1969 the Indian government nationalised 14 top banks, including BoB. BoB
incorporated its operations in Uganda as a 51% subsidiary, with the government owning
the rest.
1972s
In 1972, BoB acquired Bank of Indias operations in Uganda. Two years later, BoB
opened a branch each in Dubai and Abu Dhabi.
Back in India, in 1975, BoB acquired the majority shareholding and management control
of Bareilly Corporation Bank (est. 1928) and Nainital Bank (est. in 1954), both in Uttar
Pradesh. Since then, Nainital Bank has expanded to Uttarakhand state.
International expansion continued in 1976 with the opening of a branch in Oman and
another in Brussels. The Brussels branch was aimed at Indian firms from Mumbai
(Bombay) engaged in diamond cutting and jewellery having business in Antwerp, a
major center for diamond cutting.
Two years later, BoB opened a branch in New York and another in the Seychelles. Then
in 1979, BoB opened a branch in Nassau, the Bahamas.
1980s
In 1980, BoB opened a branch in Bahrain and a representative office in Sydney,
Australia. BoB, Union Bank of India and Indian Bank established IUB International
Finance, a licensed deposit taker, in Hong Kong. Each of the three banks took an equal
share. Eventually (in 1998), BoB would buy out its partners.
A second consortium or joint-ventrue bank followed in 1985. BoB (20%), Bank of India
(20%), Central Bank of India (20%) and ZIMCO (Zambian government; 40%)
established Indo-Zambia Bank in Lusaka. That same year BoB also opened an Offshore
Banking Unit (OBU) in Bahrain.
Back in India, in 1988, BoB acquired Traders Bank, which had a network of 34 branches
in Delhi.
1990s
In 1990, BoB opened an OBU in Mauritius, but closed its representative office in
Sydney. The next year BoB took over the London branches of Union Bank of India and
Punjab & Sind Bank (P&S). P&Ss branch had been established before 1970 and Union
Banks after 1980. The Reserve Bank of India ordered the takeover of the two following
the banks' involvement in the Sethia fraud in 1987 and subsequent losses.
Then in 1992 BoB incorporated its operations in Kenya into a local subsidiary with a
small tranche of shares quoted on the Nairobi Stock Exchange. The next year, BoB
closed its OBU in Bahrain.
In 1996, BoB Bank entered the capital market in December with an Initial Public
Offering (IPO). The Government of India is still the largest shareholder, owning 66% of
the bank's equity.
In 1997, BoB opened a branch in Durban. The next year BoB bought out its partners in
IUB International Finance in Hong Kong. Apparently this was a response to regulatory
changes following Hong Kongs reversion to the Peoples Republic of China. The now
wholly owned subsidiary became Bank of Baroda (Hong Kong), a restricted license
bank. BoB also acquired Punjab Cooperative Bank in a rescue. BoB incorporate wholly
owned subsidiary BOB Capital Markets Ltd. for broking business.
In 1999, BoB merged in Bareilly Corporation Bank in another rescue. At the time,
Bareilly had 64 branches, including four in Delhi. In Guyana, BoB incorporated its
branch as a subsidiary, Bank of Baroda Guyana. BoB added a branch in Mauritius and
closed its Harrow Branch in London.
2000s
2002: BoB acquired Benares State Bank (BSB) at the Reserve Bank of Indias
request. BSB was established in 1946 but traced its origins back to 1871 and its function
as the treasury office of the Benares state. In 1964, BSB had acquired Bareilly Bank (est.
1934), with seven branches; it also had taken over Lucknow Bank in 1968. The
acquisition of BSB brought BoB 105 new branches.
2002: Bank of Baroda (Uganda) was listed on the Uganda Securities Exchange
(USE).
2004: BoB acquired the failed Gujarat Local Area Bank, and returned to Tanzania
2005: BoB built a Global Data Centre (DC) in Mumbai for running its centralised
banking solution (CBS) and other applications in more than 1,900 branches across India
and 20 other counties where the bank operates. BoB also opened a representative office
in Thailand.
2007: In its centenary year, BoBs total business crossed 2.09 trillion (short scale),
its branches crossed 2000, and its global customer base 29 million people.
Harrow United Kingdom. BoB opened a joint venture life insurance company with
Andhra Bank and Legal and General (UK) called IndiaFirst Life Insurance Company.
2010s
In 2010, Malaysia awarded a commercial banking licence to a locally incorporated bank
to be jointly owned by Bank of Baroda, Indian Overseas Bank and Andhra Bank. That
same year, BoB also opened a branch in New Zealand.
In 2011, BoB opened an Electronic Banking Service Unit (EBSU) was opened at
Hamriya Free Zone, Sharjah (UAE). It also opened four new branches in existing
operations in Uganda, Kenya (2), and Guyana. BoB closed its representative office in
Malaysia in anticipation of the opening of its consortium bank there. BoB received In
Principle approval for the upgrading of its representative office in Australia to a branch.
The Malaysian consortium bank, India International Bank Malaysia (IIBM), finally
opened in Kuala Lumpur, which has a large population of Indians. BOB owns 40%,
Andhra Bank owns 25%, and IOB the remaining 35% of the share capital. IIBM seeks to
open five branches within its first year of operations in Malaysia, and intends to grow to
15 branches within the next three years.
Subsidiaries
BOB Capital Markets (BOBCAPS) is a SEBI-registered investment banking company
based in Mumbai, Maharashtra. It is a wholly owned subsidiary of Bank of Baroda. Its
financial services portfolio includes Initial Public Offerings, private placement of debts,
corporate restructuring, business valuation, mergers and acquisition, project appraisal,
loan syndication, institutional equity research, and brokerage.
International presence
In its international expansion, the Bank of Baroda followed the Indian diaspora,
especially that of Gujaratis. The Bank has 100 branches/offices in 24 countries including
61 branches/offices of the bank, 38 branches of its 8 subsidiaries and 2 representative
offices in Thailand and Australia. The Bank of Baroda has a joint venture in Zambia with
16 branches.
Among the Bank of Barodas overseas branches are ones in the worlds major financial
centres (e.g., New York, London, Dubai, Hong Kong, Brussels and Singapore), as well
as a number in other countries. The bank is engaged in retail banking via the branches of
subsidiaries in Botswana, Guyana, Kenya, Tanzania, and Uganda. The bank plans to
upgrade its representative office in Australia to a branch and set up a joint venture
commercial bank in Malaysia. It has a large presence in Mauritius with about nine
branches spread out in the country.
The Bank of Baroda has received permission or in-principle approval from host country
regulators to open new offices in Trinidad and Tobago and Ghana, where it seeks to
establish joint ventures or subsidiaries. The bank has received Reserve Bank of India
approval to open offices in the Maldives, and New Zealand. It is seeking approval for
operations in Bahrain, South Africa, Kuwait, Mozambique, and Qatar, and is establishing
offices in Canada, New Zealand, Sri Lanka, Bahrain, Saudi Arabia, and Russia. It also
has plans to extend its existing operations in the United Kingdom, the United Arab
Emirates, and Botswana.
The tagline of Bank of Baroda is "India's International Bank".
Affiliates
IndiaFirst Life Insurance Company is a joint venture between Bank of Baroda (44%) and
fellow Indian state-owned bank Andhra Bank (30%), and UKs financial and investment
company Legal & General (26%). It was incorporated in November, 2009 and has its
headquarters in Mumbai. The company started strongly, achieving a turnover in excess
of 2 billion in its first four and half month.
Baroda Manipal postgraduate diploma in banking and finance
Bank of Baroda and Manipal University have established the Baroda Manipal School of
Banking, which offers a Postgraduate Diploma in Banking & Finance (PGDBF) from
Manipal University. The duration of the course is just one year, after which, successful
graduates will join Bank of Baroda as management trainees.
Bank of Baroda financials 2012
Shareholders
Shareholding
Promoters
54.31
Individuals
4.77
Institutions
20.5
FII
13.54
Govt.
Others
6.88
Shareholding
MUTUAL FUND AND UTI II
DEUTSCHE BANK TRUST
CO.
INSURANCE COMPANIES
INDIVIDUALS
BANKS,FINANCIAL
INSTITUTUIONS AND UTI
BODIES CORPORATE
AXIS BANK
Industry
Founded
Headquarters
Key people
(Chairman)
Shikha Sharma (MD & CEO)
Products
Revenue
Operating
income
Net income
Total assets
Number of
employees
Website
www.axisbank.com
Axis Bank Limited (BSE: 532215, LSE: AXBC) is the third largest private sector bank
in India. It offers the entire spectrum of financial services to customer segments covering
Large and Mid-Corporates, MSME, Agriculture and Retail Businesses. Axis Bank has its
headquarters in Mumbai, Maharashtra.
Axis Bank began its operations in 1994, after the Government of India allowed new
private banks to be established. The Bank was promoted jointly by the Administrator of
the Unit Trust of India (UTI-I), Life Insurance Corporation of India (LIC), General
Insurance Corporation Ltd., National Insurance Company Ltd., The New India
Assurance Company, The Oriental Insurance Corporation and United India Insurance
Company. The Unit Trust of India holds a special position in the Indian capital markets
and has promoted many leading financial institutions in the country. As on the year
ended 31st March 2013, Axis Bank had an operating revenue of 16,217 crores and a net
profit of 5,179 crores.
Axis Bank (erstwhile UTI Bank) opened its registered office in Ahmedabad and
corporate office in Mumbai in December 1993. The first branch was inaugurated in April
1994 in Ahmedabad by Dr. Manmohan Singh, then the Honorable Finance Minister. The
Bank, as on 31st March 2013, is capitalised to the extent of Rest. 467.95 crores with the
public holding (other than promoters and GDRs) at 54.08%. . New Zealand born Richard
Chandler owns about 9.5% share through Orient Global.
On 14th March 2013 an online magazine named Cobrapost.com released video footage
from Operation Red Spider purporting to show a few employees of several Indian banks
including Axis bank apparently willing to help customers to avoid paying taxes. After
this, The government of India and Reserve Bank of India have ordered an inquiry.
Network
The Bank's Registered Office is situated in Ahmedabad and its Central Office is located
at Mumbai. The Bank has an extensive network of 2225 branches and extension counters
(as on 30th September 2013). The Bank has a network of 11796 ATMs (as on 30th
September 2013)[23] Axis Bank operates one of the worlds highest ATM sites at Thegu,
Sikkim at a height of 4023.4 metres (13,200 ft) above sea level, and has the largest ATM
network among private banks in India.
International Business
The Bank has seven international offices with branches at Singapore, Hong Kong, Dubai
(at the DIFC) and Colombo and representative offices at Shanghai, Dubai and Abu
Dhabi, which focus on corporate lending, trade finance, syndication, investment banking
and liability businesses. In addition to the above, the Bank has a presence in UK with its
wholly owned subsidiary Axis Bank UK Limited.
Business focus
Axis Bank operates in four segments: corporate/wholesale banking, and other banking
business.
Treasury operations
The Banks treasury operation services include investments in sovereign and corporate
debt, equity and mutual funds, trading operations, derivative trading and foreign
exchange operations on the account, and for customers and central funding.
Retail banking
In the retail banking category, the bank offers services such as lending to
individuals/small businesses subject to the orientation, product and granularity criterion,
along with liability products, card services, Internet banking, automated teller machines
(ATM ) services, depository, financial advisory services, and nonresident Indian (NRI)
services.
Corporate/wholesale banking
The Bank offers to corporate and other organisations services including corporate
relationship not included under retail banking, corporate advisory services, placements
and syndication, management of public issues, project appraisals, capital market related
services and cash management services.
Industry First Initiative
Axis Bank, India's third largest private sector bank launched Mobile Banking App 2.0 for
its retail resident Indian customers The first of its kind in India, Axis Mobile 2.0 offers a
high level of personalization. The App has been launched in partnership with Tagit, a
leading Singapore mobile solutions company. The new application uses Tagit's mobility
solution platform that enables Banking on-the-go.
Axis Bank- ISIC Forex Card for Students would be the first photo Travel Currency
Card available in USD, Euro, GBP and AUD currencies. Axis Bank is the 1st Bank in
India to launch ISIC co- branded Forex prepaid card for students.
Axis Bank partners with Visa to launch industry first eKYC facility , 1st organization
in India to introduce biometric based eKYC offering convenience, speed & ease to
Aadhaar-registered individuals to open bank accounts
International branches
Singapore
Hong Kong
Dubai
Shanghai
Abu Dhabi
Moscow
colombo
UK- london
NRI services
Products and services for NRIs that facilitate investments in India.
Business banking
The Bank accepts income and other direct taxes through its 214 authorised branches at
137 locations and central excise and service taxes (including e-Payments) through 56
authorised branches at 14 locations.
Investment banking
Banks Investment Banking business comprises activities related to Equity Capital
Markets, Mergers and Acquisitions and Private Equity Advisory. The bank is a SEBIregistered Category I Merchant Banker and has been active in advising Indian companies
in raising equity through IPOs, QIPs, and Rights Issues etc. During the financial year
ended 31 March 2012, Axis Bank undertook 9 transactions including 5 IPOs and 2 Open
Offers.
Lending to small and medium enterprises
Axis Bank SME business is segmented in three groups: Small Enterprises, Medium
Enterprises and Supply Chain Finance. Under the Small Business Group a subgroup for
financing micro enterprises is also set up. Axis bank is the 1st Indian Bank having TCDC
cards in 11 currencies.
The Business Gaurav SME Awards
In 201112, Axis Bank set up 6 SME centres and SME cells each across the country,
taking the total number to 32 SME Centres. The Bank also organised the Business
Gaurav SME Awards in association with Dun & Bradstreet to recognise and award
achievements in the SME space.
Agriculture
401 branches of the Bank have dedicated officers for providing agricultural loans to
farmers.
Financial inclusion
Till March 2012, the Bank had opened over 4.4 million No Frills accounts in over 7607
villages through a network of 15 Business Correspondents and nearly 6000 customer
service points. Axis Bank has a strong presence in Electronic Benefit Transfer (EBT) and
has covered 6800 villages across 19 districts and 9 states till date with over 3.7 million
beneficiaries.
International banking
Axis Bank has a foreign network of four branches (Singapore, Hong Kong, DIFC
(Dubai) and Colombo (Sri Lanka) and three representative offices (Shanghai, Dubai and
Abu Dhabi) with presence in 6 countries. Axis Bank was granted a banking license in
Britain, after receiving approval in April 2013 from Britain's financial regulator to
provide a full range of banking services including deposit-taking and making loans and
investments. It opened its first UK bank in London on 12 July 2013.
Awards and recognitions
In year 201213
Bank of the Year Money Today FPCIL Awards 201213 Best Bank CNBC-TV18
Indias Best Bank and Financial Institution Awards 2012 Best Bank Runner Up
Outlook Money Awards 2012 Consistent Performer Indias Best Banks 2012 Survey
by Business Today & KPMG Fastest Growing Large Bank Dun & Bradstreet Polaris
Financial
Technology Banking
Awards
2012
Fastest
Growing
Large
Bank
Businessworld Best Banks Survey 2012 Best Domestic Bond House The Asset Triple A
Country Awards 2012 Our Bank has been honored with this award for the third year in
a row India Bond House of the year IFR ASIA Country Awards 2012 Deal Maker of
the Year in Rupee Bonds Businessworld Magna Awards India's Best Deal Makers
2012 The Best Emerging Bullion Dealing Bank 9th India International Gold Convention2011-12 Best Acquiring Institution in South Asia Visa LEADER Award at Visas 2012
APCEMEA Security Summit, Bali Gold Shield for Excellence in Financial Reporting in
the Private Banks category 201112 ICAI (Institute of Chartered Accountants of India)
AXIS Bank Corporate Office
The Axis Bank Corporate Office in Mumbai received the Platinum rating by the US
Green Building Council for its environment friendly facilities and reduction of carbon
emission.
Board of directors
1.
2.
Shareholders
Shareholding
Promoters
37.38
Individuals
5.79
Institutions
13.4
FII
32.94
Govt.
Others
10.49
Shareholding
MUTUAL FUND AND UTI - II
DEUTSCHE BANK TRUST CO.
INSURANCE COMPANIES
INDIVIDUALS
BANKS,FINANCIAL
INSTITUTUIONS AND UTI
ECONOMY ANALYSIS
India is set to emerge as the worlds fastest-growing major economy by 2015 ahead of China,
as per the recent report by The World Bank. Indias Gross Domestic Product (GDP) is
expected to grow at 7.5 per cent in 2015, as per the report.
The improvement in Indias economic fundamentals has accelerated in the year 2015 with the
combined impact of strong government reforms, RBI's inflation focus supported by benign
global commodity prices.
The independence-era Indian economy (from 1947 to 1991) was based on a mixed
economy combining features of capitalism and socialism, resulting in an inward-looking,
interventionist policies and import-substituting economy that failed to take advantage of
the post-war expansion of trade. This model contributed to widespread inefficiencies and
corruption, and the failings of this system were due largely to its poor implementation.
In 1991, India adopted liberal and free-market principles and liberalised its economy to
international trade under the guidance of Former Finance minister Manmohan Singh under
the Prime Ministry of P.V. Narasimha Rao, prime minister from 1991 to 1996, who had
eliminated Licence Raj, a pre- and post-British era mechanism of strict government
controls on setting up new industry. Following these major economic reforms, and a
strong focus on developing national infrastructure such as the Golden Quadrilateral project
by former Prime Minister Atal Bihari Vajpayee, the country's economic growth progressed
at a rapid pace, with relatively large increases in per-capita incomes. The south western
state of Maharashtra contributes the highest towards India's GDP among all states.
Mumbai (Maharashtra) is known as the trade and commerce capital of India.
INDIA GDP
The Gross Domestic Product (GDP) in India was worth 2066.90 billion US dollars in 2014.
The GDP value of India represents 3.33 percent of the world economy. GDP in India
averaged 552.24 USD Billion from 1970 until 2014, reaching an all time high of 2066.90
USD Billion in 2014 and a record low of 63.50 USD Billion in 1970. GDP in India is
reported by the World Bank Group.
The annualised inflation rate in India is 6.46% as of September 2014, as per the Indian
Ministry of Statistics and Programme Implementation. This represents a modest reduction
from the previous annual figure of 9.6% for June 2011. Inflation rates in India are usually
quoted as changes in the Wholesale Price Index, for all commodities.
Many developing countries use changes in the Consumer Price Index (CPI) as their central
measure of inflation. India used WPI as the measure for inflation but new CPI(combined) is
declared as the new standard for measuring inflation ( April 2014) [[1]] CPI numbers are
typically measured monthly, and with a significant lag, making them unsuitable for policy
use. Instead, India uses changes in the Wholesale Price Index (WPI) to measure its rate of
inflation.
Provisional annual inflation rate based on all India general CPI (Combined) for November
2013 on point to point basis (November 2013 over November 2012) is 11.24% as compared
to 10.17% (final) for the previous month of October 2013. The corresponding provisional
inflation rates for rural and urban areas for November 2013 are 11.74% and 10.53%
respectively. Inflation rates (final) for rural and urban areas for October 2013 are 10.19% and
10.20% respectively.[2]
The WPI measures the price of a representative basket of wholesale goods. In India, this
basket is composed of three groups: Primary Articles (20.1% of total weight), Fuel and Power
(14.9%) and Manufactured Products (65%). Food Articles from the Primary Articles Group
account for 14.3% of the total weight. The most important components of the Manufactured
Products Group are Chemicals and Chemical products (12%); Basic Metals, Alloys and
Metal Products (10.8%); Machinery and Machine Tools (8.9%); Textiles (7.3%) and
Transport, Equipment and Parts (5.2%)
BANK RATES
Repo (Repurchase) Rate
Repo rate is the rate at which banks borrow funds from the RBI to meet the gap between the
demand they are facing for money (loans) and how much they have on hand to lend.
If the RBI wants to make it more expensive for the banks to borrow money, it increases the
repo rate; similarly, if it wants to make it cheaper for banks to borrow money, it reduces the
repo rate.
Reverse Repo Rate
This is the exact opposite of repo rate.
The rate at which RBI borrows money from the banks (or banks lend money to the RBI) is
termed the reverse repo rate. The RBI uses this tool when it feels there is too much money
floating in the banking system
If the reverse repo rate is increased, it means the RBI will borrow money from the bank and
offer them a lucrative rate of interest. As a result, banks would prefer to keep their money
with the RBI (which is absolutely risk free) instead of lending it out (this option comes with a
certain amount of risk)
Consequently, banks would have lesser funds to lend to their customers. This helps stem the
flow of excess money into the economy
Reverse repo rate signifies the rate at which the central bank absorbs liquidity from the
banks, while repo signifies the rate at which liquidity is injected.
Bank Rate
This is the rate at which RBI lends money to other banks (or financial institutions .
The bank rate signals the central banks long-term outlook on interest rates. If the bank rate
moves up, long-term interest rates also tend to move up, and vice-versa.
Banks make a profit by borrowing at a lower rate and lending the same funds at a higher rate
of interest. If the RBI hikes the bank rate (this is currently 6 per cent), the interest that a bank
pays for borrowing money (banks borrow money either from each other or from the RBI)
increases. It, in turn, hikes its own lending rates to ensure it continues to make a profit.
Call Rate
Call rate is the interest rate paid by the banks for lending and borrowing for daily fund
requirement. Si nce banks need funds on a daily basis, they lend to and borrow from other
banks according to their daily or short-term requirements on a regular basis.
CRR
Also called the cash reserve ratio, refers to a portion of deposits (as cash) which banks have
to keep/maintain with the RBI. This serves two purposes. It ensures that a portion of bank
deposits is totally risk-free and secondly it enables that RBI control liquidity in the system,
and thereby, inflation by tying their hands in lending money
SLR
Besides the CRR, banks are required to invest a portion of their deposits in government
securities as a part of their statutory liquidity ratio (SLR) requirements. What SLR does is
again restrict the banks leverage in pumping more money into the economy.
MSF rate is the rate at which banks borrow funds overnight from the Reserve Bank of India
(RBI) against approved government securities.
1. BankRate
2. CashReserveRatio
(CRR)
3. StatutoryLiquidityRatio
4. RepoRate
5. ReverseRepoRate
6. MarginalStandingFacility
8.25 %
-4
(SLR) (RR) -
21.5
7.25
(RRR) (MSF) -
%
%
%
6.25
8.25
%
%
YEAR
2010
2011
2012
2013
2014
DPS
3.5
3.5
4.15
EPS
144.37
116.67
174.46
206.2
145.88
PAYOUT
0.02424
0.02571
0.02006
0.02013
0.02056
= 1 - (ADPR)
= 1 - 0.02214
= 0.9778
Year
2010
2011
2012
2013
2014
net
9166.05
7370.35
11707.3
14105
10891.17
networth
65949.2
64980
83951.2
98883.7
118282.3
ROE
0.13899
0.11342
0.13945
0.14264
0.09208
profit
= 0.12531
5
Price Earning Ratio= (Market price/ EPS)
Table showing High Price Earning Ratio of SBI
YEAR
2010
2011
2012
2013
2014
MARKET
2318.9
2960.1
2349.7
2360
2124.9
EPS
144.37
116.67
174.46
206.2
145.88
HPER
16.06
25.37
13.47
11.45
14.57
PRICE
2010
2011
2012
2013
2014
MARKET
2012
2705.1
2090.05
1976.1
1867.5
EPS
144.37
116.67
174.46
206.2
145.88
LPER
13.94
23.19
11.98
9.58
12.80
PRICE
13.94+23.19+11.98+9.58+12.80
5
= 14.2974
=16.1826
=14.2974
= 16.1826 + 14.2974
2
= 15.24
ARR AROE
= 0.9778 0.12531
= 0.12252
PROJECTED EPS
Projected EPS = Current year EPS (1+growth rate)
= 145.88 (0.12252+1)
= 163.7532
INTRINSIC VALUE (PROJECTED EPS X NORMALIZED AVERAGE PE
RATIO)
Projected EPS
= 163.7532
Normalized PE Ratio
=15.24
Intrinsic Value
= 163.7532 15.44
= 2495.5987
0.12531
15.24
0.0221
0.977
0.12252
Projected EPS
163.753
Intrinsic Value
2495.5987
Intrinsic
value
Market value
2495.59
2124.9
Interpretation: SBI has a higher intrinsic value than its market value, that is, it is
undervalued, so it is preferable to buy the stocks as the current market value would have
a tendency to increase to its intrinsic value.
YES BANK
WORKING NOTE FOR THE COMPUTATION OF INTRINSIC VALUE
Table showing payout ratio (DPS / EPS) of Yes Bank
YEAR
2010
2011
2012
2013
2014
DPS
0.15
0.25
0.4
0.6
0.8
EPS
14.06
20.95
27.68
36.27
44.86
PAYOUT
0.0107
0.0119
0.0145
0.0165
0.0178
= 0+0.0107+0.0119+0.0145+0.165+0.0178
5
= 0.01428
= 1-(ADPR)
= 1-0.01428
ARR
= 0.98572
YEAR
2010
2011
2012
2013
2014
NETPROFIT
477.74
727.14
977.06
1300.68
1617.78
NEWORTH
3089.6
3794.8
4676.64
5807.67
7121.74
ROE
0.1546
0.1916
0.2089
0.2240
0.2272
Average ROE
0.1546+0.1916+0.2089+0.224+0.2272
5
= 0.2012
2010
2011
2012
2013
2014
MARKET
298
341.1
380.9
509
474.9
EPS
14.06
20.95
27.68
36.27
44.86
HPER
21.19
16.28
13.76
14.03
10.59
PRICE
YEAR
2010
2011
2012
2013
2014
MARKET
245
302.4
345.5
416.75
404
EPS
14.06
20.95
27.68
36.27
44.86
LPER
17.425
14.434
12.482
11.490
9.006
PRICE
17.425+14.4344+12.482+11.49+9.006
5
= 12.9675
NORMALISED PRICE EARNING RATIO
Average High PE Ratio
= 15.1714
= 12.9675
= 15.1714+ 12.9675
2
= 14.069
ARR AROE
0.98572 0.2012
0.19832
PROJECTED EPS
Projected EPS
Projected EPS
= 53.756
Normalized PE Ratio
=14.069
Intrinsic Value
= 53.756 14.069
= 756.293
0.2012
14.069
Average
Dividend
Payout
0.01428
Ratio
(DPOR)
Average Retention Ratio
0.98572
0.19832
Projected EPS
53.756
Intrinsic Value
756.293
Intrinsic
value
Market value
756.29
474.9
ICICI BANK
WORKING NOTE FOR THE COMPUTATION OF INTRINSIC VALUE
Table showing PAYOUT RATIO (DPS / EPS) of ICICI
YEAR
2010
2011
2012
2013
2014
DPS
1.2
1.4
1.65
2.3
EPS
36.1
44.73
56.09
72.17
84.95
PAYOUT
0.0332
0.0313
0.0294
0.0277
0.0271
= 1-(ADPR)
= 1-0.0297
= 0.970
YEAR
2010
2011
2012
2013
2014
NETPROFIT
4024.98
5151.38
6465.26
8325.47
9810.48
NETWORTH
51618.4
55090.93
60405.25
66705.9
73213.32
ROE
0.078
0.094
0.107
0.125
0.134
YEAR
2010
2011
2012
2013
2014
MARKET
1009.7
1139
918.8
1188.8
1318.5
EPS
36.1
44.73
56.09
72.17
84.95
HPER
27.97
25.46
16.38
16.47
15.52
PRICE
27.97+25.46+16.38+16.47+15.52
5
= 20.361
YEAR
2010
2011
2012
2013
2014
MARKET
902.55
1072
827.25
981.7
1202.4
EPS
36.1
44.73
56.09
72.17
84.95
LPER
25.00
23.97
14.75
13.60
14.15
PRICE
25.00+23.97+14.75+13.60+14.15
5
= 18.294
= 20.361
= 18.294
ARR AROE
= 0.970 0.10746
= 0.104236
PROJECTED EPS
Projected EPS = Current year EPS (1+growth rate)
= 84.95 0.9278
= 93.8048
Projected EPS
Normalized PE Ratio
Intrinsic Value
= 93.8048
= 19.3275
= 93.8048 19.3275
= 1813.012
0.10746
19.3275
0.0297
0.970
0.104236
Projected EPS
93.8048
Intrinsic Value
1813.012
Intrinsic
value
Market value
1813.012
1318.5
Interpretation: ICICI Bank has a higher intrinsic value than its market value, that is, it is
undervalued, so it is preferable to buy the stocks of ICICI as the current market value
would have a tendency to rise to its intrinsic value.
BANK OF BARODA
WORKING NOTE FOR THE COMPUTATION OF INTRINSIC VALUE
Table showing PAYOUT RATIO (DPS / EPS) of BOB
year
2010
2011
2012
2013
2014
DPS
1.5
1.65
1.7
2.15
2.15
EPS
83.96
108.33
121.79
106.37
105.75
PAYOUT
0.0179
0.0152
0.0140
0.0202
0.0203
= 1-(ADPR)
= 1-0.1752
= 0.8248
YEAR
2010
2011
2012
2013
2014
NETPROFIT
3058.33
4241.68
5006.96
4480.72
4541.08
NETWORTH
15106.4
21043.5
27476.9
31969.4
35985.7
ROE
0.2025
0.2016
0.1822
0.1402
0.1262
YEAR
2010
2011
2012
2013
2014
MARKET
702
1006.65
810.05
722
837.85
EPS
83.96
108.33
121.79
106.37
105.75
HPER
8.361
9.29
6.651
6.775
7.922
PRICE
YEAR
2010
2011
2012
2013
2014
MARKET
615.85
905.1
740.55
613.65
714.6
EPS
83.96
108.33
121.79
106.37
105.75
LPER
7.335
8.355
6.081
5.769
6.757
PRICE
7.335+8.355+6.0801+5.769+6.757
5
= 6.859
= 7.803
= 6.859
= 7.803+ 6.859
2
= 7.331
ARR AROE
0.82480.17041
0.14055
PROJECTED EPS
Projected EPS
Projected EPS
= 120.613
Normalized PE Ratio
= 7.331
Intrinsic Value
= 120.613 7.331
= 884.213
0.17051
7.331
0.01752
0.8248
0.14055
Projected EPS
120.613
Intrinsic Value
884.213
Intrinsic
value
884.213
Market value
837.85
Interpretation: Bank of Baroda has a higher intrinsic value than its market value, that is,
it is undervalued, and so it is preferable to buy the stocks as the current market value
would have a tendency to rise to its intrinsic value.
AXIS BANK
WORKING NOTE FOR THE COMPUTATION OF INTRINSIC VALUE
Table showing PAYOUT RATIO (DPS / EPS) of Axis Bank
year
2010
2011
2012
2013
2014
DPS
1.2
1.4
1.6
1.8
EPS
62.06
82.54
102.67
110.68
132.33
PAYOUT
0.0193
0.0170
0.0156
0.0163
0.0151
= 1-(ADPR)
= 1-0.1665
= 0.8335
2010
2011
2012
2013
2014
NETPROFIT
2514.53
3388.5
4242.2
5179.43
6217.67
NETWORTH
16044.6
18998.8
22808.5
33107.9
38220.5
ROE
0.1567
0.17835
0.1859
0.15644
0.16268
Average ROE =
0.1567+0.17835+0.1859+0.15644+0.16268
5
= 0.16803
2010
2011
2012
2013
2014
MARKET
1287
1460.45
1226.5
1520
1555
EPS
62.06
82.54
102.67
110.68
132.33
HPER
20.738
17.6938
11.946
13.73
11.750
PRICE
20.74+17.6938+11.946+13.73+77.750
5
= 15.172
Table showing LOW PRICE EARNING RATIO OF AXIS BANK
YEAR
2010
2011
2012
2013
2014
MARKET
1128.2
1270.3
1076.15
1198
1353.4
EPS
62.06
82.54
102.67
110.68
132.33
LPER
18.179
15.39
10.482
10.824
10.227
PRICE
718.179+15.39+10.482+10.824+10.227
5
= 13.020
= 15.172
= 13.020
= 15.172+ 13.020
2
= 14.096
= ARR AROE
= 0.8335 0.18603
= 0.15505
PROJECTED EPS
Projected EPS = Current year EPS (1+growth rate)
= 132.33 (1+0.15505)
= 152.84
INTRINSIC VALUE (PROJECTED EPS X NORMALIZED AVERAGE PE
RATIO)
Projected EPS
152.84
Normalized PE Ratio
14.096
Intrinsic Value
= 152.84 14.096
=
2154.432
0.16803
14.096
0.016652
0.8335
0.15505
Projected EPS
152.84
Intrinsic Value
2154.432
Intrinsic
value
2154.432
Market value)
1555
Interpretation: Axis Bank has a higher intrinsic value than its market value, that is, it is
undervalued, so it is preferable to buy the stocks of Axis Bank as the current market
value would have a tendency to rise to its intrinsic value.
DATA INTERPRETATION
Table showing Percentage change between market price and intrinsic value
NAME
INTRINSIC
MARKET VALUE
% CHANGE
VALUE
SBI
2495.59
2124.9
17.44
YES
756.29
474.9
59.25
ICICI
1813.012
1318.5
37.50
AXIS
2154.432
1555
38.54
837.85
5.53
BANK
OF 884.213
BARODA
FINDINGS
In the Economic Analysis, the economy is booming after 2010 and current position
shows that this is the good time to invest after the recession because GDP growth
rate is increasing and overall economy is growing.
In the industry analysis, overall industry profit after tax is increasing over the
years which means banking industry is having much profit but on the other side
banking industry Net Profit growth has decreased very much so investor should
invest carefully.
In the company analysis, for all banks taken for the study, EPS and dividend were
increasing from 2010 onwards except bank of baroda
If investor wants to invest in the company for long term then he can have a good
profit because company growing rapidly in terms of profit and net sales and its
EPS & DPS are increasing over the years. .
The intrinsic value of Yes Bank shows less worth than other banks.
GDP, interest rate, inflation rate, bank rate etc...also effects market share.
SUGGESTIONS :
It is suggested to buy and hold the undervalued stocks, i.e., all the banks taken for the
study are worth to invest as their shares prices have a tendency to increase in the
future.
The increasing EPS indicate good earnings. Also the increase in profit will give
hope for the shareholders in order to hold the share.
The shares of all Banks will be good for buying in the present situation, as the
companys intrinsic values are comparatively more than the actual market values.
SBI and AXIS show more intrinsic value.
Out of five companies, all five companies are worth to invest as per the intrinsic
value because its more than their market value
Stock market is fluctuating from time to time; therefore it is advised to check the
market conditions each time before investing in shares.
Investing in share market using borrowed funds should be avoided as far as possible.
It is always better to hold good stocks than to engage in rapid-fire trading for quick
returns.
CONCLUSION
Fundamental analysis is based on the analysis of the economic, industry as well as the
company and in this research we can see that the economic indicators have an effect on
the bank growth and assets. The above report says that our economic is growing after the
recession and it is the good time for the one who want to invest.
According to the industry analysis investor can invest in the banks but he/she should be
careful for the investment.
Invest current money or other resources for future benefits. The purpose of fundamental
analysis is to evaluate the present and future earning capacity of the share based on the
economy, industry and company fundamentals and there by assess the intrinsic value of
the share with the prevailing market price to arrive at an investment decision.
BIBLIOGRAPHY
Prasanna Chandra, Investment Analysis and Portfolio Management, Tata McGraw
Hill Education Private Limited, New Delhi, Third Edition.
S Kevin, Security Analysis and Portfolio Management, Prentice-Hall of India Private
Ltd, New Delhi, 2008.
Punithavathy Pandian, Security Analysis and Portfolio Management, Vikas
Publishing House Pvt Ltd, New Delhi, 2008.
I M Pandey, Financial Management, Vikas Publishing House Pvt Ltd, New Delhi,
Reprint Edition, 2013.
C R Kothari, Research Methodology: Methods and Techniques, New Age
International Publishers, Reprint Edition, 2013.
www.economictimes.indiatimes.com,
www.icicibank.com,
www.bankofbaroda.com,
www.axisbank.com,
www.geojitbnpparibas.com
www.sbi.co.in
www.yesbank.com
www.moneycontrol.com,
www.investopedia.com,
www.money.livemint.com,
www.tradingeconomics.com,
www.wikipedia.com,
www.scribd.com