AN ANALYSIS ON THE STATE BANK OF INDIA

ICFAI UNIVERSITY

DONE BY HARISH AYNAPURE 11BSUHH010019

SUBMITTED TO Dr. Nitin gupta professor in

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CONTENTS

Chapters

topics

page nos

Chapter 1-

INTRODUCTION

Chapter 2-

COMPANY PROFILE

Chapter 3-

WHY DID I CHOOSE THIS TOPIC

Chapter 4-

OBJECTIVES

Chapter 5 -

METHODOLOGY

Chapter 6-

MISSION AND VISION STATEMENT

Chapter 7-

SWOT ANALYSIS

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Chapter 8 - COMPETITIORS Chapter 9 CONCLUSIONS Chapter 10 WEBSITES

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INTRODUCTION
BANKING INDUSTRY

Banking in India in the modern sense originated in the last decades of the 18th century. The first banks were Bank of Hindustan (1770-1829) and The General Bank of India, established 1786 and since defunct. The largest bank, and the oldest still in existence, is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India in 1955. For many years the presidency banks acted as quasicentral banks, as did their successors, until the Reserve Bank of India was established in 1935. In 1969 the Indian government nationalised all the major banks that it did not already own and these have remained under government ownership. They are run under a structure know as 'profit-making public sector undertaking' (PSU) and are allowed to compete and operate as commercial banks. The Indian banking sector is made up of four types of banks, as well as the PSUs and the state banks, they have been joined since 1990s by new private commercial banks and a number of foreign banks. Banking in India was generally fairly mature in terms of supply, product range and reach-even though reach in rural India and to the poor still remains a challenge. The government has developed initiatives to address this through the State bank of India expanding its branch network and through the National Bank for Agriculture and Rural Development with things like microfinance.

COMPANY PROFILE

State

Bank

of

India (SBI)

is

multinational banking and financial

services company based in India. It is a government-owned corporation with its headquarters in Mumbai, Maharashtra. As of December 2012, it had assets of US$501 billion and 15,003 branches, including 157 foreign offices, making it the largest banking and financial services company in India by assets. The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidency banksBank of Calcutta and Bank of Bombayto form the Imperial Bank of India, which in turn became the State Bank of India. Government of India nationalised the Imperial Bank of India in 1955, with Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008, the government took over the stake held by the Reserve Bank of India. SBI was ranked 285th in the Fortune Global 500 rankings of the world's biggest corporations for the year 2012. SBI provides a range of banking products through its network of branches in India and overseas, including products aimed at non-resident Indians(NRIs). SBI has 14 regional hubs and 57 Zonal Offices that are located at important cities throughout the country. SBI is a regional banking behemoth and has 20% market share in deposits and loans among Indian commercial banks. The State Bank of India was named the 29th most reputed company in the world according to Forbes 2009 rankings and was the only bank featured in the "top 10 brands of India" list in an annual survey conducted by Brand Finance and The Economic Times in 2010.

HISTORY
The roots of the State Bank of India lie in the first decade of 19th century, when the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal was one of three Presidency banks, the other two being the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July 1843). All three Presidency banks were incorporated as joint stock companies and were the result of the royal charters. These three banks received the exclusive right to issue paper currency till 1861 when with the Paper Currency Act; the right was taken over by the Government of India. The Presidency banks amalgamated on 27 January 1921, and the re-organised banking entity took as its name Imperial Bank of India. The Imperial Bank of India remained a joint stock company but without Government participation. Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India, which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On 1 July 1955, the Imperial Bank of India became the State Bank of India. The government of India recently acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of interest because the RBI is the country's banking regulatory authority. In 1959, the government passed the State Bank of India (Subsidiary Banks) Act, which made eight state banks associates of SBI. A process of consolidation began on 13 September 2008, when the State Bank of Saurashtra merged with SBI. SBI has acquired local banks in rescues. The first was the Bank of Behar (est. 1911), which SBI acquired in 1969, together with its 28 branches. The next year SBI acquired National Bank of Lahore (est. 1942), which had 24 branches. Five years later, in 1975, SBI acquired Krishnaram Baldeo Bank, which had been established in 1916 in Gwalior State, under the patronage of Maharaja Madho Rao Scindia. The bank had been the Dukan Pichadi, a small moneylender, owned by the Maharaja. The new banks first manager was Jall N. Broacha, a Parsi. In 1985, SBI acquired the
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Bank of Cochin in Kerala, which had 120 branches. SBI was the acquirer as its affiliate, the State Bank of Travancore, already had an extensive network in Kerala. The State Bank of India and all its associate banks are identified by the same blue keyhole logo. The State Bank of India word mark usually has one standard typeface, but also utilises other typefaces.

ASSOCIATE BANK
SBI has five associate banks; all use the State Bank of India logo, which is a blue circle, and all use the "State Bank of" name, followed by the regional headquarters' name:

State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Mysore State Bank of Patiala State Bank of Travancore

NON BANKING SERVICES Apart from its five associate banks, SBI also has the following non-banking subsidiaries:

SBI Capital Markets Ltd SBI Funds Management Pvt Ltd SBI Factors & Commercial Services Pvt Ltd SBI Cards & Payments Services Pvt. Ltd. (SBICPSL) SBI DFHI Ltd SBI Life Insurance Company Limited SBI General Insurance

STRUCTURE

As on 14 January 2013, there are fifteen members in the SBI board of directors:

Pratip Chaudhuri (Chairman) Hemant G. Contractor (Managing Director) Arundhati Bhattacharya (Managing Director) A. Krishna Kumar (Managing Director) S. Visvanathan (Managing Director) S. Venkatachalam (Director) D. Sundaram (Director) * Thomas Mathew (Director) S.K. Mukherjee (Officer Employee Director) Rajiv Kumar (Director) Jyoti Bhushan Mohapatra (Workmen Employee Director) Deepak Amin (Director) Harichandra Bahadur Singh (Director)

WHY STATE BANK OF INDIA???

SBI is one of the oldest banks and the strongest public sector bank in banking industry in INDIA. It has the largest subsidiaries with largest networks in INDIA. It was formed after the independence by combining the 3 largest banks during the colonial period.

OBJECTIVES
To know about the SBI products and also about its subsidiaries To analyze the bank based on the fundamental analysis To analyze the bank based on the technical analysis To show the investors why to invest in the share of the SBI.

METHODOLOGY
The methodology used will be the total secondary basis. The desired information will be taken from the internet or from the annual report of the company and also some content for the net.

VISION AND MISSION STATEMENT

MISSION STATEMENT To carry the torch of an exemplary SBI Officers Union Movement; Ever alive to Uniting, Protecting, Securing and Satisfying the committed and enthused members; Ever facilitating the growth and development of quality Bank Professionals; Ever offering trusteeship role in meeting the challenges of SBI in the face of changing Economic Scenario; Ever trusting in continuous search, improvement and education with a concern for all that is noble, just and praiseworthy in our movement, Bank and Nation.

VISION STATEMENT A Pioneering, Apolitical and Responsive officers Union movement with Enlightened values, Committed Cadre, Inspiringly led, Ever at the focused services of the members, the Bank and the community at large.

SWOT ANALYSIS
STRENGTH 1. The biggest bank in the country

2. Has a separate act for itself. Thus, a special privilege. 3. Biggest branch network in the country

4. First public sector to move to CBS WEAKNESS 1. Huge amount of staff 2. Expected to experience high level of attrition due to retirement of its top management 3. Still carries the image of the old Govt. sector bank

OPPURTUNITIES

1. Pool in talent to replace the going top management to serve the next generation 2. Make better use of its CRM 3. Expansion into rural areas

THREATS

1. Consolidation among private banks 2. New bank licenses by RBI 3. Foreign banks that have sophisticated products

COMPETITORS

Bank of Baroda PNB Canara Bank Bank of India IDBI Bank Union Bank Central Bank Corporation Ban Syndicate Bank UCO Bank Oriental Bank IOB Allahabad Bank Andhra Bank Indian Bank Bank of Maharashtra Vijaya Bank Dena Bank United Bank Punjab & Sind

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SBI PRODUCTS AND OTHER VALUE ADDED SERVICES

E-ticketing SBI e-tax Bill payment Eztrade@sbi RIGS/NEFT E-payment Fund transfer Third party transfer Demand draft Cheque book request Account opening request Account statement Transaction enquiry Demat account statement Donation State bank virtual card Credit card Personal loan Home loan Car loan Bank A/C Education loan Stocks and Demat Mutual funds Tax and Business loan
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1. Home Loan
2. The Most Preferred Home Loan provider SBI Bank offers a Home Loan with Attractive Interest Rates with Latest Schemes and Benefits. SBI also provides a Housing loan with different schemes. Schemes Are:3. 1. SBI Easy Home Loan 2. SBI Advantage Home Loan 3. SBI Housing Finance Scheme 4. SBI Happy Home Loans 5. SBI Life Style Loan 6. SBI Green Home Loan 7. SBI Home Plus 8. SBI Home Line 9. SBI MY HOME CAMPAIGN 4. Features & Benefits of SBI Home Loan Purchase/ Construction of House/ Flat Purchase of a plot of land for construction of House Lowest Home Loan Interest Rate.. Extension/ repair/ renovation/ alteration of an existing House/ Flat Purchase of Furnishings and Consumer Durables as a part of the project cost. Takeover of an existing loan from other Banks/ Housing Finance Companies. Interest charged on the daily reducing balance No penalty on prepayments of home loan No hidden costs Option to club income of your spouse and children to compute eligible loan amount Provision to club depreciation, expected rent accruals from property proposed to compute eligible loan amount Provision to finance cost of furnishing and consumer durables as part of project cost

5. Current Rate of Interest

Loan Schemes SBI HI-FIVE Loan Loan Amount up to Rs. 5 Lacs 1st Year 8.00% (p.a.) Fixed interest rate 2nd and 3rd year 9.00% (p.a.) Floating Interest Rates OR 10.50% (p.a.) Fixed Interest Rates 8.50% (p.a.) Fixed Interest Rate After 3rd Year 9.00% (p.a.) Floating Interest Rates OR 10.50% (p.a.) Fixed Interest Rates 9.00% (p.a.) Floating Interest Rate OR 10.50% (p.a.) Fixed Interest Rate 10.00% (p.a.) Floating Interest Rate OR 11.00% (p.a.) Fixed Interest Rate

SBI Easy Home Loan Loan Amount upto Rs. 50 Lacs

8.00% (p.a.) Fixed interest rate

SBI Advantage Home Loan Loan Amount Above Rs. 50 Lacs

8.00% (p.a.) Fixed interest rate

9.00% (p.a.) Fixed Interest Rates

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Eligibility Criteria & Documentation required for SBI Home Loan

Salaried Age Income Loan Amount Offered Tenure Current Experience 21years to 60years Rs.1,20,000 (p.a.) 5,00,000 1,00,00000 5years-20years 2years 1) Application form with photograph 2) Identity & residence proof 3) Last 3 months salary slip 4) Form 16 5) Last 6 months bank salaried credit statements 6) Processing fee cheque Self employed 21years to 70years Rs.2,00,000 (p.a.) 5,00,000 2,00,00000 5years-20years 3years 1) Application form with photograph 2) Identity & residence proof 3) Education qualifications certificate & proof of business existence 4) Business profile, 5) Last 3 years profit/loss & balance sheet 6) Last 6 months bank statements 7) Processing fee cheque

Documentation

CAR LOAN
Owning a vehicle today has become a matter of convenience than pride as it offers the flexibility to travel unencumbered by hindrances. With the easy availability of car financing, more and more families are opting to purchase the car by taking a loan. Car loan is a secured loan, where the car being purchased is pledged as collateral security. Are you among that group of people who are aiming to buy a car but do not know the basics of car loan? Below article will answer all your queries.

CREDIT CARD
A credit card is a small plastic card which is issued by a credit card company as a system of payment. It allows the card holder to buy goods and services on the
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basis of the promise of the credit card issuer to make payment for goods and services. It eases life and helps in make your shopping experience simpler as you are no longer required to carry cash at all places. Once you swipe your credit card, you will be given a free credit period of 50 days-55 days by the bank.

FUNDAMENTAL ANALYSIS

STOCK INFORMATION

Current price BSE Current NSE Market Capitalization Face value EPS (TTM) P/E Sector No of shares BSE 52 week high BSE 52 week low NSE 52 week high NSE 52 week low BSE Sensex Nifty Average Volume BSE

1641.70 1640.70 112297.86 Rs. 10 Rs. 259.22 6.33

Banking 684033971

2550.00 1452.90 2551.70

19727.27 5833.20 472547.00

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Average Volume NSE BSE Code NSE Symbol

2472070.00
500112 SBIN

Profitability Analysis
NET PROFIT MARGIN RATIO COST TO NET INCOME RATION

2013
9.14 56.35

OTHER INCOME TO NET INCOME RATIO 34.76

KEY BALANCE SHEET Funds and liabilities

Share capital Reserves and surplus Net worth (share holders funds) Minority interest Deposits Borrowings Other liabilities and provisions Total liabilities

2013
684.03 1, 24,248.99 1, 25,033.02 4, 253, 86 16, 27,402.61 2, 03,723.20 1, 72,745.65 21, 33,158.34

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OWNERSHIP PATTERN

LIQUIDITY ANS CREDIT ANALYSIS

Net interest margin ratio Capital adequacy ratio Net NPAs 3.34 12.92 2.10

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TECHNICAL ANALYSIS

Technical Analysis
Indicator Analysis Signal (0 Strong Sell, 10 Strong Buy) Chart

RSI (?)

RSI is 46.9. According to RSI analysis, sbi gets is marginally weak.

4.0

SBIGETS RSI Chart

MACD (?)

MACD: -5.7 and Signal Line: 6.0. According to MACD analysis, sbi gets is technically weak.

2.0

SBIGETS MACD Chart

Simple Moving Average (?)

According to simple moving average analysis, sbi gets is facing resistance from its 20-day simple moving average at 2898.225 and support level is at 2.83e+03.

8.0

SBIGETS Simple Moving Average Chart

Exponential Moving Average (?)

According to exponential moving average analysis, sbi gets is facing resistance from its 20-day exponential moving average at 2874.602 and support level is at 2.83e+03.

8.0

SBIGETS Exponential Moving Average Chart

Bollinger Bands (?)

%b is 0.322.

5.0

SBIGETS Bollinger Bands Chart

Fibonacci Retracement (?)

According to Fibonacci retracement, price is above 61.8% and 50% level. Support is at 2814.975 and 2745.3609. Resistance level is 2884.5891.

8.0

SBIGETS Fibonacci Retracement Chart

Average True Range (?)

ATR: 48.4

NA

SBIGETS Average True Range Chart

Average Directional Index (?)

ADX is 17.9 which means SBIGETS is in a trading range and there is no trend.

NA

SBIGETS Average Directional Index Chart

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Summary: STRONG SELL

Moving Averages: STRONG SELL Buy (1)Sell (11)

Technical Indicators: STRONG SELL Buy (1)Sell (8)

Points 28, 2013 06:31AM GMT

Name Classic Fibonacci Camarilla Woodie's DeMark's S3 1588.30 1608.90 1621.00 1583.14 S2 1608.90 1620.70 1623.84 1606.32 S1 1619.20 1628.00 1626.67 1614.04 1614.05 Pivot Points 1639.80 1639.80 1639.80 1637.22 1637.22 R1 1650.10 1651.60 1632.33 1644.94 1644.95 R2 1670.70 1658.90 1635.16 1668.12 R3 1681.00 1670.70 1638.00 1675.84 -

TECHNICAL INDICATORS
Symbol RSI(14) STOCH(9,6) STOCHRSI(14) MACD(12,26) ADX(14) Williams %R CCI(14) ATR(14) Highs/Lows(14) Ultimate Oscillator ROC Bull/Bear Power(13) Buy: 1 Sell: 8 Neutral: 2 Value 40.087 36.143 30.789 38.880 19.560 -78.182 -176.5360 13.1393 -19.3107 28.444 -2.461 -45.3300 Action Sell Sell Sell Buy Neutral Sell Sell Less Volatility Sell Oversold Sell Sell

Summary: STRONG SELL

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MOVING AVERAGES
Period Simple 1647.74 MA5 Sell 1658.22 MA10 Sell 1668.39 Sell 1682.04 Sell 1680.01 MA100 Sell 1613.74 MA200 Buy: 1 Sell: 11 Buy Exponential 1647.01 Sell 1655.25 Sell 1659.59 Sell 1669.99 Sell 1659.31 Sell 1653.04 Sell

MA20

MA50

Summary: STRONG SELL

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CONCLUSION

State Bank of India earlier known as Imperial Bank has proved its existence through introducing various innovative schemes and that also are considered as competitive in present market. At the same time we can conclude that they need to focus on their human resources in order to achieve the maximum market share

WEB SITES VISITED

www.sbi.com www.sbi.co.on
http://wiki.answers.com http://www.moneycontrol.com/ www.topstockresearch.com www.stocksbuddy.com

Sbi annual report

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