brief_ppt_of_fundamental

Accounting policy of a bank, valuation of a bank are different from other firms.

Enterprise Value = Debt + Equity It is hard to calculate the working capital of

the bank. Raw Material for bank is borrowings &

lending The price of bank’s stock is dependent on

the growth in dividend

Originated in the first decade of 18th century with The General Bank of India coming into existence in 1786.

The oldest bank in existence in India is the State Bank of India established in 1806.

The first fully Indian owned bank was the Allahabad Bank, which was established in 1865.

The Reserve bank Of India formally took on the responsibility of regulating the Indian banking sector from 1935.

Early HistoryBanking in India remained the exclusive domain of Europeans until the beginning of the 20th century

During warAt least 94 banks in India failed during the years 1913 to 1918 because of first world war

Post IndependenceIn 1948, the Reserve Bank Of India was nationalized.

NationalizationNationalized the 14 largest commercial banks

LiberalizationGave licenses to a small number of private banks

Scheduled commercial banks- 88 Public sector banks- 28 Private banks- 29 Foreign banks- 31 Public sector banks hold over 75 percent of

total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively.

• The economic reforms undertaken in the last 15 years have brought about a considerable improvement in the health of banks an

• d financial institutions in India.• Foreign direct investment in private banks

has been increased from 49% to 74% & foreign institutional investment in private banks is 49%.

• Vacancies

Andhra Bank State Bank of

Mysore Allahabad Bank Vijaya Bank Punjab National

Bank HDFC Bank, UTI

Bank ICICI Bank Kotak Mahindra

Centurion Bank of Punjab

Citibank Standard HSBC ABN AMRO and American Express

Fundamental analysis is the examination of the underlying forces that affect the well being of the economy, industry groups, and companies.

Fundamental Analysis involves examining the economic, financial and other qualitative and quantitative factors related to a security in order to determine its intrinsic value.

Primary assumptions –

Price on the stock market does not fully reflect a stock’s “real” value. Also called as Intrinsic Value

The market price of a stock tends to move towards it's “real value” or “intrinsic value”.

Major assumptions of fundamental analysis: In the long run, the stock market will reflect the fundamentals.

• QUALITATIVE ANALYSIS• Customers • Market Share • Industry Growth • Competition• Regulation

• QUANTITATIVE ANALYSIS Balance Sheet Profit & Loss Statement Cash Flow Statement Ratio Analysis

Long-term Trends

Value Spotting

Business insights

Knowing Who's Who

DESCRIPTION SBI ICICI PNB

Industry Public Bank Private Bank Public Bank

Mkt Cap Rs.197,326 Cr Rs.129,485 Cr Rs.40,696 Cr 

Chairman O P Bhatt   K V Kamath K R

Kamath 

Managing

Director

S.K Bhattacharyya  

Chanda D Kochhar   K R

Kamath

Company Secretary

Sandeep Batra

Listing BSE, NSE BSE, NSE   BSE, NSE

59.40%17.20%

14.90%

2.70%5.90%

Shareholding Pattern of SBI

Promotors

Domestic InstitutesFiis

Non PromotorsOthers

0%

6.42%

38.68%

2.66% 5.99%

Shareholding Pattern of ICICI

Promotors

Domestic Institutions

FIIs

Non Promotors

Others

PARTICULARS SBI ICICI PNB

P/E 14.78 36.10 8.43

ROE (%) 13.89 -26.54 24.06

EPS 144.37

36.10 123.86

EPS GROWTH (%) 0.48 6.93 26.34

NET PROFIT GROWTH (%)

20 17 28

PARTICULARS SBI ICICI PNB

DPS 30 12 22

BOOK NAV/SHARE 1038.76 463.01 514.77

CASA (%) 42.94 42.1 40.85

Current market price (2010)

3094 1115.6 1286.4