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SAPM Presentation-On Banking

Apr 10, 2018

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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