Professional Documents
Culture Documents
(BCOM (H)-1604)
On
“A STUDY ON PORTFOLIO
MANAGEMENT OF TOP FIVE MAJOR
INDIAN BANKS”
Towards partial fulfillment of
Session 2018-2019
School of Management
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,
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
LITERATURE REVIEW
As per the study of P Janaki Rao and S Durga Rao Investment decisions, in all sectors, have
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
To construct analyse, select and evaluate a portfolio consisting of five major selected
To compute the intrinsic value of selected securities from Banking industry using
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
SAMPLE UNIT
Financial data which is relevant to 5 years is taken as the sample size for fundamental analysis
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
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
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