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TITLE OF THE PROJECT

ASTUDY ON STOCK MARKETPERFORMANCE OF SELECTED PUBLICK

SECTOR BANKS

WITH REFERENCE TRUSTLINE SECURITEY LTD.

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INTRODUCTION

The banker of all banks, Reserve Bank of India(RBI), the Indian Banks Association (IBA) and top 20 banks

like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well

defined under three separate heads with one page dedicated

to each bank. The first deals with the history part since the dawn

of banking system in India. Government took major step in the

1969 to put the banking sector into systems and it nationalized

14 private banks in the mentioned year. This has been

elaborated in Nationalization Banks in India.

The last but not the least explains about the

scheduled and unscheduled banks in India. Section 42 (6) (a)

of RBI Act 1934 lays down the condition of scheduled

commercial banks.

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TYPES OF BANKS

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INDUSTRY PROFILEThe securities contract (Regulation) Act, 1956 (SCRA) defines Stock

Exchange as any body of individuals, whether incorporated or not,

constituted for the purpose of assisting, regulating or controlling the business

of buying, selling or dealing in securities. Stock exchange could be a regional

stock exchange whose area of operation/jurisdiction is specified at the time of

its recognition or national exchanges, which are permitted to have nationwide

trading since inception. NSE was incorporation as National Stock Exchange.

Securities trading corporation of India ltd. (STCI):

FINANCIAL MARKET:

According to institutional basis again classified into

two types:

They are:

1.Money markets (short-term)

2.Capital markets (long-term)

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STOCK MARKETS IN INDIA

Definition of a stock exchange:

Stock exchange means any body orindividuals whether incorporated or not,

constituted for the purpose of assisting,regulating or controlling the business ofbuying, selling or dealing in securities. The

securities include:

Shares of public company. Government securities

Bonds.

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COMPANY PROFILE

About Trust Line:

Trust line securities limited is a stock brokarisedcompany. It is one of the fastest growing financial servicesorganization, established in the year 1989.

The code of this organization ISO 9001:2008

Trust line has effective membership in severalsectors like (equity & F and O, NSE, NSEF, BSE, BSEF, DSE)equity shares and preference shares, commodities (MCX, NCDEX,NMCEIL), currency (NSE, MCX-SX currency), depository (CDSL,NSDL).

The grate personalities Dr. Muksesh Kansal and Mrs. Sarika

Kansal are the promoters of the trust line and Dr. Mukesh Kansal

is the chairman and managing director of the trust line

And another personality Mrs. Sarika Kansal is the director of the

trust line.

Trust line head office is located in Noida, New Delhi.

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Vision

To provide world class

investment solutions and

opportunities to the

investing public and the

corporate who believe inIndia as a story whose

time has come, and to

empower them through

modern technology. To

provide the most attractive

and ethical Investment

Solutionsguided by

values driven approach to

growth, efficient and fair

client service and welfare

of employees.

MISSON

To empower individual

investors to take control of

their financial matters by

investing in the securities

markets, to free them from

the high costs andconflicts of traditional

stock broking firms and to

enable them to participate

in the economic growth of

India.

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Products of trust line:

Trust line securities limited has introduced several

Products to the customers with an advancedtechnology

The products are following below

Equity and derivative

Commodities trading

Currency trading

Depository services

Research and analysis Mutual funds, insurance

Institutional channels

Investment advisory services

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ACHIEVEMENTS

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Research Methodology:

Need for the Study:

Stock market is one of the investment avenueswhich provides usually high returns, and bankingsector stocks have always been one among the beststocks to invest. So, this study would help inanalyzing and understanding the performance level

of few of the stocks in this particular sector.

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OBJECTIVES OF THE STUDY

1. To compare the stock market performance ofthe selected banks (i.e Andhra Bank,Sbin,PNBUnion bank,BOB & UBI) with Nifty during 2009-2013

2. To understand the risk involved in the selectedBanks &Nifty during 2009-13

3. To know the dividend declarations of theselected banks during 2009-13.

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Data collection & process

PRIMARY DATA:

It is collected from the interaction with dealers and managers who sharedtheir past experiences about the performance of banking sector stocks inthe Stock Market.

It is collected from the interactions with analysts in the company during

the live trading sessions about the banking sector stocks' price changes.

SECONDARY DATA:

It is collected from the company websites, old records,

magazines &textbooks. Some websites are:

WWW.NSEINDIA.COM

WWW.MONEYCONTROL.COM

WWW.RBI.GOV.IN

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State Bank of India(SBI)

(NSE: SBIN, BSE: 500112, LSE: SBID) is the largest bankingand financial servicescompany in India by revenue, assets andmarket capitalisation. It is a state-ownedcorporation with itsheadquarters in Mumbai, Maharashtra. As of March 2012, it hadassets of US$360 billion and 14,119 branches, including 173foreign offices in 37 countries across the globe. Including thebranches that belong to its associate banks, SBI has 21,500branches.

HISTORY OF BANKS

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Union Bank of India

Union Bank of India(UBI) (BSE: 532477) is one of India's largest

public sector banks (the government owns 55.43% of its sharecapital remains public, private organizations and foreigncompanies), is listed on the Forbes 2000. It has assets of USD13.45 billion and all the bank's branches have been networked withits 4129 ATMs. Its online Telebanking facility are available to all itsCore Banking Customers - individual as well as corporate. It has

representative offices inAbu Dhabi, United Arab Emirates, Beijing,Peoples Republic of China, London, Shanghai, and Sydney, and abranch in Hong Kong.

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Bank of Baroda

(BSE: 532134) (Hindi: ) is the highest profit-making public sector undertaking (PSU) bank in India and the

second largest PSU bank in terms of number of total business in

India. Based in Vadodara, India,it is the country's first largestpublic sector lender in terms of annual profit.[4][5][5][6]BoB is

ranked 715 on Forbes Global 2000list. BoB has total assets in

excess of Rs. 3.58 lakhcrores, or Rs. 3,583 billion, a network

of 4007 branches (out of which 3914 branches[7]are in India)

and offices, and over 2000 ATMs. It plans to open 400 new

branches in the coming year

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Andhra Bank

Telugu: ) (BSE: 532418) is a medium-sized public

sector bank (PSB), with a network of 1,712 branches, 15extension counters, 38 satellite offices and 1056

automated teller machines (ATMs) as on March 31, 2012.Andhra Bank was founded by the eminent freedom fighter, Dr.Bhogaraju Pattabhi Sitaramayya. The Government of Indiaowns 51.55% of its share capital and is going toincrease it to 58% by infusing 1100 crore.[2]The state ownedLife Insurance Corporation of Indiaholds 10% of the shares.[3]The bank has done a total business of Rs. 1,90,535 crore as on31.03.2012.

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Punjab National Bank

(BSE: 532461, NSE: PNB) is an Indian financial servicescompanybased in New Delhi, India. PNB is the third largest bank in India byassets. It was founded in 1894 and is currently the second largeststate-owned commercial bank in India ahead of Bank of Barodawith about 5000 branches across 764 cities. It serves over 37million customers. The bank has been ranked 248th biggest bankin the world by the Bankers Almanac, London. The bank's totalassets for financial year 2007 were about US$60 billion. PNB hasa banking subsidiary in the UK, as well as branches in Hong

Kong, Dubai and Kabul, and representative offices inAlmaty,Dubai, Oslo, and Shanghai.

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Banks Industry founded Key people

SBI Financial services 1955 PRATIP CHAUDHURI

PNB Financial services 1895 K.R. KAMATH

UBI Financial services 1919 D.SARKAR

BOB Financial services 1908 M.D. MALLYA

ANDB Financial services 1923 B.A. PRABHAKAR

Performance of the banks

7 STOCK MARKET PERFORMANCE OF 5 BANKS&NIFTY DURING

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MONTH UBI BOB PNB ANDB SBI NIFTY

Apr-09 16.25 42.09 15.92 22.35 18.81 14.88

May-09 25.95 33.01 35.67 68.98 41.01 27.89

Jun-09 23.52 -0.34 -0.97 -14.26 -14.43 -3.57

Jul-09 -3.74 -3.76 5.82 12.49 4.65 8.01

Aug-09 -8.63 -2.29 -1.52 -3.29 -4.23 0.61

Sep-09 11.05 10.99 16.44 17.13 24.64 9.04

Oct-09 9.27 6.95 6.64 6.41 -0.02 -7.38

Nov-09 7.72 6.67 8.01 1.95 2.4 6.8

Dec-09 -5.32 -4.24 0.68 -9.69 1.02 3.2

Jan-10 -1.65 13.83 -0.15 2.06 -9.6 -6.13

Feb-10 1.56 1.31 1.8 -6.55 -8.08 0.82

Mar-10 13.29 8.33 11.78 7.71 4.4 6.35

Apr-10 5.45 7.81 2.49 21.98 10.61 0.54

May-10 -5.52 3.26 0.25 4.12 -0.92 -3.63

Jun-10 5.61 -0.51 5.42 -4.76 2.26 4.44

Jul-10 1.81 8.9 2.43 8.85 9.24 1.04

Aug-10 2.17 6.6 9.48 5.05 9.77 0.61

Sep-10 16.96 8.25 8.67 4.37 16.77 11.6

Oct-10 3.31 16.22 -0.36 10.58 -2.74 -0.2

Nov-10 -8.46 -8.29 -6.47 -11.74 -6.34 -3.76

Dec-10 -0.87 -6 0.16 -7.14 -8.31 4.48

Jan-11 -6.06 -3.08 -10.57 -7.51 -6.71 -10.87

Feb-11 -5.87 -0.48 -4.41 -3.75 -0.83 -3.68

Mar-11 10.23 9.65 13.86 9.96 4.07 8.39

Apr-11 40.66 -4.54 -2.46 -7.94 1.42 -1.46

May-11 -25.31 -4.54 -7.2 3.46 -18.22 -3.58

Jun-11 -2.35 0.96 -1.02 -6.18 4.15 1.55

Jul-11 13.44 0.08 2.73 13.51 -3.04 -3.92

Aug-11 -12.89 -18 -18.17 -3.91 -16.54 -9.52

Sep-11 1.1 4.42 2.36 -5.53 4.01 -3.25

Oct-11 5.96 3.35 4.22 -2.62 1.22 9.27

Nov-11 6.08 -9.19 -9.64 -15.12 -6.87 -8.45

Dec-11 -17.53 -7.59 -13.72 -21.23 -10.84 -6.97

Jan-12 23.62 12.48 19.9 25.72 26.55 12.04

Feb-12 17.21 8.06 1.41 28.2 9.58 3.59

Mar-12 24.37 -1.03 -3.23 -8.34 -6.15 -1.31

7 STOCK MARKET PERFORMANCE OF 5 BANKS&NIFTY DURING

2009-2013

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GRAPH 1.7 OF NET RETURNS DURING 2009-13

UBI

BOB

PNB

ANDB

SBI

NIFTY

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INTERPRETATION: To compare 5 public sector banks SBI,PNB,BOB,UBI,ANDB during 2009-13 the

average net

Returns are 2.02%,3.43%,3.87%,5.06%,3.77%respectively so UBI isthe best performed stock .

Selected 5 banks when compared with Nifty all banks are performed better thannifty during 2009-13

FY 2009-10 among the 5 banks Bank of baroda is the best performed stock itgiven 10.26% and PNB 8.34%,ANDB 8.83% ,SBI 5.04%,UBI 7.44%.

FY 2010-11 among the 5 public sector banks again BOB is the best performancestock it given 3.52% and PNB 1.74%,andb 2.50%,SBI 2.23%,UBI 1.56.

FY 2011-12 most of the banks are in negative net returns ,the best performedstock is UBI it given 6.19% and PNB -2.06%,ANDB 0.0065%,BOB -1.29%, SBI -1.22%.

During 2009-10 Nifty is also performed well. It gives 5.04% average net returns it isequal to SBI returns

During 2010-11 Nifty is sown low performance when compare to banks it yields0.74% only.

FY 2011-12 Nifty is given negative returns of -1.0% in this year most of the publicsector banks are also in negative returns.

Finally all the five public sector banks are performed well during 2009-12 andbanks are better than Nifty performance.

FINDINGS

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FINDINGS: To compare 5 public sector banks SBI,PNB,BOB,UBI,ANDB during 2009-13 the average returns are

2.02%,3.43%,3.87%,5.06%,3.77%respectively so UBI is the best performed stock .

Selected 5 banks when compared with Nifty all banks are performed better than nifty during 2009-13

FY 2009-10 among the 5 banks Bank of Baroda is the best performed stock it given 10.26% and PNB8.34%,ANDB 8.83% ,SBI 5.04%,UBI 7.44%.

FY 2010-11 among the 5 public sector banks again BOB is the best performance stock it given 3.52% and PNB1.74%,andb 2.50%,SBI 2.23%,UBI 1.56.

FY 2011-12 most of the banks are in negative net returns ,the best performed stock is UBI it given 6.19% andPNB -2.06%,ANDB 0.0065%,BOB -1.29%, SBI -1.22%.

During 2009-10 Nifty is also performed well. It gives 5.04% average net returns it is equal to SBI returns

During 2010-11 Nifty is shown low performance when compare to banks it yields 0.74% only.

8.FY 2011-12 Nifty is given negative returns of -1.0% in this year most of the public sector banks are also innegative returns.

9. FY 2012-2013 in this banking sector performed well in compared to nifty index value

10. Finally all the five public sector banks are performed well during 2009-13 and banks are better than Niftyperformance.

10.By analyzing the risk UBI is having low risk that is 3.09 and SBI 3.13 ,ANDB 4.54,NIFTY 4.98,PNB 5.17,BOB5.80 during 2009-12

11.Dividend issues during 2009-10 are SBI issued 290% in 11-05-09,PNB issued 200% in20-05-09,BOB

issued 90% dividend in 27-04-09,ANDB issued 45% in 08-05-09,UBI does not issue . 12.Dividend issues during 2010-11 are SBI issued 200% in 11-05-10,PNB issued 120% in 06-05-10,BOB

Issued 150% in 28-06-10 ,ANDB issued 50% in 29-04-10 UBI issued 20% in 04-05-10.

13.Dividend issues during 2011-12 are SBI issued 300% in 11-05-11,PNB issued 220% in 04-05-11,

BOB issued 165% in 23-06-11,ANDB ISSUED 55% IN05-05- 11,UBI issued 22% in 29-04-11.

14. Dividend issues during 2012-13 are SBI issued 300% in 11-05-11,PNB issued 220% in 04-05-11,

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SUGGESTIONS

All the 5 public sector banks are performed well during 2009-13 .So

investment in public sector banks will reduce the risk and gives goodreturns.

In the 5 selected banks UBI is the best option for long term investmentit given 5.06% of returns.

Bank of Baroda is the best stock for investment during 2009-10 and2010-11.

UBI and SBI is the best performed stock in 2011-12 and 2012-2013 .Even the remaining banks are in negative it given 6.19% of positivereturns. So it is best for investment.

UBI,SBI are the best stocks for the investors who want to take less riskwith good returns because this two banks are having low risk .

Net profit margin of the banks are good but in that BOB is having verygood net profit margin that is 15.37,15.23,17.18 respectively.

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CONCLUSION:

From the study of 5 public sector banks during 2009-13 thebanking sector is performed well UBI,BOB are performed verywell when compared to SBI ,ANDB,PNB but all the banks arebetter than Nifty . And when compared with the risk UBI &SBIare having low risk that is 3.09,3.13 respectively ,and also

other banks are having below 6% risk so banking sector is thebest option for investors to reduce the risk. If we observe thedividend issues SBI&PNB are given very good returns so thetotal performance of the banking sector is good for the investors.

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