SAPM Presentation-On Banking

8/8/2019 SAPM Presentation-On Banking

1/18

Analysis of Banking Industry

Presented By-

Santanu BanikGourab Biswas

Asish Kr. Roy


2/18

Types of Bank

Central Bank

A bank which is

entrusted with with the

functions of guidingand regulation the

banking system of the

country is known as

Central Bank.

Commercial Bank

Commercial banks are

three types

Public sector Bank

Private sector Bank


3/18

Types of Bank

Central Bank

A bank which is entrusted with with the functions of

guiding and regulation the banking system of the country

is known as Central Bank.

Commercial Bank

Commercial banks are three types

Public sector Bank

Private sector Bank

Foreign Bank

Development Bank


4/18

Development Bank

Businesses often requires medium and long term capital

for purchasing of equipment, machinery, technological

advancement purpose or expansion purpose. And such

financial assistance is provided by Development Banks.

Co-operative Bank

There are three types of Cooperatives banks operating in

our country.

Central credit societyCentral co-operative bank

State Co-operative Bank


5/18

Specialized Bank

There are some bank which cater the requirement

and provide overall support. These banks usually

involved in many activities.

Export and Import Bank

Small Industrial Development Bank of India(SIDBI)

National Bank for Agricultural And Rural Development

(NABARD)


6/18

GUIDELINES FOR FOREIGN DIRECT

INVESTMENT

(FDI) IN THE BANKING SECTOR

Limit for FDI under automatic route in private

sector banks-a. In terms of the Press Note no. 4 (2001

series) dated May 21, 2001 issued by Ministry

of Commerce & Industry,Government of India,

FDI up to 49% from all sources will be

permitted in private sector banks on the

automatic route, subject to conformity with the

guidelines issued by RBI from time to time.


7/18

b. For the purpose of determining the above-

mentioned ceiling of 49% FDI under the

"automatic route" in respect of private sectorbanks, following categories of shares will be

included.

1. IPOs, 2. Private placements,

3. ADRs/GDRs, and

4. Acquisition of shares from existingshareholders [subject to (d) below]


8/18

C. It may be further clarified that, as perGovernment of India

guidelines, automatic route is not applicable to transfer of

existing shares in a banking company from residents to non-

residents. This category of investors require approval of FIPB

followed by "in principle" approval by Exchange Control

Department(ECD), RBI. The "fair price" for transfer of existingshares is determined by RBI broadly on the basis of SEBI

guidelines for listed shares and rest while CCI guidelines for

unlisted shares. After receipt of "inprinciple" approval, the

resident seller can receive funds and apply to ECD, RBI for

obtaining final permissionfor transfer of shares.


9/18

d. Foreign banks having branch presence in India

are eligible for FDI in the private sector banks

subject tothe overall cap of 49% mentioned above

with the approval of RBI.


10/18

Limit for FDI in public sector banks

FDI and portfolio investment in nationalised

banks are subject to overall statutory limits of20% as provided underSection 3 (2D) of the

Banking Companies (Acquisition and Transfer

ofUndertakings) Acts, 1970/80. The

sameceiling would also apply in respect ofsuch investments in State Bank of India and

its associate banks.


11/18

Voting rights of foreign investorsIn terms of the

statutory provisions under the various banking

acts, the voting rights, when exercised, which

arestipulated as under:

1. Private sector banks - [Section 12 (2) of

Banking Regulation Act, 1949] No person

holding shares, in respect of any share held byhim, shall exercise voting rights on poll in

excess of tenper cent of the total voting rights of

all the share holders


12/18

The public sector bank holds over 75% of total

assets of banking Industry.

P

rivate and foreign bank hold 18.2% and 6.2%respectively.


13/18

FDI for the List ofPublic Banks


14/18

FDI for the List ofPrivate Banks


15/18

Bank PE Ratio EPS Net Profit Margin Market Capitalization Return on Avg. equity

State bank ofIndia 22.17 144.37 10.54 205743.18 13.89

Bank of Baroda 11.82 83.67 15.37 36144.29 20.24

HDFC Bank 36.08 64.42 14.76 107020.2 13.7

Induslnd Bank 32.16 8.53 10.63 12763.18 16.19

Oriental Bank 10.74 45.29 9.9 12535.02 15.49

PNB 10.75 123.86 15.64 42573.38 24.06

Syndicate bank 8.81 15.58 7.22 7357.59 15.57

corporation Bank 9.49 81.59 14.05 11223.2 20.26

Indian bank 8.37 36.18 17.03 13040.13 22.79

ICICI Bank 31.35 36.1 12.17 127469 7.79

Allahabad Bank 9.31 27.01 12.07 11518.16 20.5

Andhra Bank 8.33 21.56 14.17 9008.88 23.71


16/18

Performance in BSE

Bank Current Market Price 52 weeks High Price 52 weeks Low Price Today Per (%)of Change

State bank of India 3240.05 3322 1863 1.22

Bank of Baroda 988.9 1003 467.2 0.03

HDFC Bank 2313.45 2518 1550 -0.45

Induslnd Bank 274.95 288 109.25 0.22

Oriental Bank 500.4 522 224.5 2.92

PNB 1350.25 1360.2 819 1.42

Syndicate bank 140.95 138.7 77 2.66

corporation Bank 782.65 785 402.3 1.04

Indian bank 303.4 316.5 145.5 0.2

ICICI Bank 142.1 1173.65 756.25 0.91

Allahabad Bank 257.85 254.95 111.05 2.52

Andhra Bank 185.75 181 94.65 3.37


17/18

Performance in NSEBank Current Market Price 52 weeks High Price 52 weeks low Price Today Per (%)of Change

State bank of India 3239.2 3324.85 1863.1 1.03

Bank of Baroda 987.05 1002.4 467 -0.27

HDFC Bank 2304.7 2539.9 1549 -0.94

Induslnd Bank 274.8 288 109.25 0.11

Oriental Bank 500.4 522 224.5 2.92

PNB 1350.85 1354.9 1335 1.39

Syndicate bank 141.05 139 76.55 2.62

corporation Bank 784.3 784 401 1.74

Indian bank 303.9 316.25 146.55 0.36

ICICI Bank 1142.1 1157.9 1135 0.91

Allahabad Bank 258.05 255.2 111.1 2.6

Andhra Bank 186 187.5 94.2 3.13


18/18

THANK YOU

SAPM Presentation-On Banking

Documents