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SYNOPSIS FOR RESEARCH PROJECT REPORT

(BCOM (H)-1604)
On

“A STUDY ON PORTFOLIO
MANAGEMENT OF TOP FIVE MAJOR
INDIAN BANKS”
Towards partial fulfillment of

Bachelor of Commerce (Honours)

(BBD University, Lucknow)

Guided By: Submitted by:

Mr. Shankar Singh Aditya

(Roll No. 1160678005)

Session 2018-2019

School of Management

Babu Banarasi Das University

Sector I, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India
INTRODUCTION

ABOUT TOPIC

The banking scenario has witnessed significant development in the recent years with the entry

of private banks and their focus on retail banking and convergence of services. The

ongoing reforms process, growing use of technology, increased competition and product

innovation has all put the banking sector on a high growth trajectory. Advancement in

communication and information technology has facilitated growth in internet banking, ATM

network, and Electronic transfer of funds and quick dissemination of information. Structural

reforms in the banking sector have improved the health of the banking sector. The forms recently

introduced include the enactment of the Securitization Act to step up loan recoveries,

establishment of asset reconstruction companies, initiatives on improving recoveries from Non-

performing Assets(NP As)and change in the basis of income recognition has raised transparency

and efficiency in the banking system. Spurt in treasury income and improvement in loan

recoveries has helped Indian Banks to record better profitability.

LITERATURE REVIEW
As per the study of P Janaki Rao and S Durga Rao Investment decisions, in all sectors, have

been gaining paramount importance, warranting the investors to be continuously cautious of

risk and return involved in the same. The faculty ‘investment analysis’ calls for planned and

meaningful appraisal of both internal and external factors affecting the returns. Ever since Indian

economy opened its doors to MNCs, the Indian banking sector has been witnessing bizarre

changes in terms of new products and services and stiff competition as well. The sort of IPOs that

have been taking place in banking sector are amazing. In the light of these recent developments, a

careful analysis of the profitability of Indian banking sector is inevitable. The present study
attempts to analyze the profitability of the three major banks in India: SBI, ICICI, and HDFC. The

variables taken for the study are Operating Profit Margin (OPM), Net Profit Margin (NPM),

Return on Equity (RoE), Earnings per Share (EPS), Price Earnings Ratio (PER), Dividends per

Share (DPS), and Dividends Payout Ratio (DPR). The study brings out the comparative efficiency

of SBI, ICICI, and HDFC.

Net Profit margin = Net Profit ⁄ Total revenue x 100


OBJECTIVES OF THE STUDY

 To construct analyse, select and evaluate a portfolio consisting of five major selected

players in the Banking Industry.

 To compute the intrinsic value of selected securities from Banking industry using

fundamental analysis and recommend for buy or sell option

 To undertake the technical analysis of the securities and interpret them.

 To recognize the suitability of the share for investment in long term.


RESEARCH METHODOLOGY

This is basically an Analytical research depends on the publicly available data.

The method used in the study is the fundamental and technical analysis of some specific

companies in banking industry. The companies are selected based on market capitalization. The

fundamental analysis includes Economic analysis, Industry analysis and Company analysis.

SOURCES OF DATA

Data for the study is collected from the secondary sources. Data is collected from the websites

like www.bseindia.com, www.indiabulls.com, www.capitaline.com. Company websites, books,

newspapers and periodicals is also be referred to during the study.

SAMPLE UNIT

Financial data which is relevant to 5 years is taken as the sample size for fundamental analysis

and eighteen months for technical analysis.

1. STATE BANK OF INDIA (SBI)


2. ICICI BANK LTD.
3. HDFC BANK LTD.
4. AXIS BANK LTD.
5. PUNJAB NATIONAL BANK
STATEMENT OF PROBLEM
A study on Portfolio analysis of banking sector is undertaken to construct, analyze, select and

evaluate a portfolio consisting of five scrips from this sector to check whether the security

analysis and portfolio construction and selection helps an investor to reduce risk and achieve

efficiency in investment.
SCOPE AND IMPORTANCE OF THE STUDY

This demands the investors to be rational and scientific in his investment activity.

As such he needs to evaluate a lot of information about the past performance and the expected

future performance of the company, industry as a whole before taking the investment decision. So

the study will be helpful in finding the intrinsic value of the shares and make decisions in their

investments in Banking Sector. Optimal portfolio can be selected using this study among the

different portfolio basis in the Banking Sector. The study will be a guide to other scholars and

researchers in doing similar study in other industries.


LIMITATIONS
 Data collected were from secondary sources.

 The effect of speculation, which has a direct bearing on security price is not considered.

 The fundamental analysis considered the quantitative effects of company factors only, even

though the economy and industry factors significantly affect the share prices of the shares.

 The securities market, being a highly volatile one, the advice on investment options based on

this study is subject to changes.

 Only five securities are used in the portfolio analysis.


PROPOSED CHAPTER PLAN

Chapter 1-: Introduction


Chapter 2-: Review of Literature
Scope of The study
Area of the Study
Chapter 3-: Objectives of study
Research Methodology
Problems and Limitations
Chapter 4-: Data analysis and Interpretation
Findings
Chapter 5-: Recommendations/ Suggestions
Chapter 6-: Conclusion
Chapter 7-: Bibliography
Annexure
REFERENCE

 DONALD E. FISCHER AND RONALD J. JORDAN, Security Analysis and portfolio

Management New Delhi: Prentice-Hall of India Private Ltd. 1998.

 KWAN, CLARENCE, Optimal Portfolio, bx.businessweek.com/...clarence-

kwan/12078054773844019468-9d5eff11ed4199d58fbb3e424021f9d

 P JANAKI RAO & S DURGA RAO, Investment decisions, Work911/article.htm

 PRASANNA CHANDRA. Investment Analysis and Portfolio management, New Delhi:

Tata Mc Graw – Hill Publishing Company Limited, 2002