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Analysis of Banking Industry
Presented By-
Santanu BanikGourab Biswas
Asish Kr. Roy
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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
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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
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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
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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)
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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.
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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]
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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.
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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.
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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.
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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
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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.
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FDI for the List ofPublic Banks
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FDI for the List ofPrivate Banks
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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
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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
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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
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THANK YOU