A STUDY ON FINANICAL STATAEMENT ANALYSIS AT STATE BANK OF INDIA PONDICHERRY MAJOR PROJECT.pptx

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1. A STUDY ON FINANCIAL STATEMENT ANALYSIS AT STATE BANK OF INDIA PUDUCHERRY PRESENTED BY SIVASAKTHI V REG NO 23810047 I I - MBA EXT ERNAL GUIDE Mr. R AJADURAI VENKATESAN DEPUTY BRANCH MANAGER STATE BANK OF INDIA PONDICHERRY INTERNAL GUIDE Mrs. H EMALATHA .M MBA.,MCOM ASSISTANT PROFESSOR RGCET

2. COMPANY PROFILE SBI: State Bank of India (SBI) a Fortune 500 companies, is an Indian Multinational, Public Sector Banking and Financial services statutory body headquartered in Mumbai. It has the legacy of over 200 years, and it is the most trusted Bank by Indians through generations. It is India’s largest and oldest commercial Bank in terms of assets, deposits, branches, number of customers and employees. It provides a wide range of products and services to individuals, commercial enterprises, large corporates, public bodies and institutional customers through its various branches and outlets, joint ventures, subsidiaries, and associate companies. It has successfully diversified businesses through its various subsidiaries. It has spread its presence globally and operates across time zones through 235 offices in 29 foreign countries. 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. The transformation from the Imperial Bank of India to the State Bank of India was given legal recognition through an Act of the Parliament of India, which came into force from 1 July 1955. Government of India took control of it with Reserve Bank of India (RBI) taking a 60 per cent stake in it. In 2007, the Reserve Bank of India transferred its stake in the State Bank of India to the Indian Government. As of now government shareholding in SBI is 57.47%. Subsidiaries of SBI: Sbi Life Insurance Company Limited ( Sbi -Life) Sbi General Insurance Company Limited ( Sbi General) Sbi Cards And Payment Services Limited ( Sbicpsl )

3. INTRODUCTION FINANCIAL STATEMENT ANALYSIS Financial statements refer to formal and original statements prepared by business concern to disclose its financial information. AICPA (American Institute of Certified Public Accountants) says "financial statements are prepared for the purpose of presenting a periodical review or report on the progress by the management and deal with (1) the status of investments in the business and (2) the results achieved during the period under review“ MEANING: Financial statement analysis is a set of techniques to analyze the financial performance of a company to assess its strengths and weakness and to compare it to other firms in the same industry. It provides information about the past and current performance of a company. It is also used to project the future performance of the company. DEFINITION: "Analysis of a financial statement is a process of evaluating the relationship between components of financial statements to obtain a better understanding of a firm's position and performance". - Metcalf and Tigard

4. OBJECTIVES OF THE STUDY To find the financial performance of state bank of India. To find the profitability position of the firm.

5. REVIEW OF LITERATURE Amitav Saha (2022) in this journal, this paper presents a systematic literature review, including content and bibliometric analyses, of the impact of a crisis on financial reporting quality. In addition, this review identifies emerging research themes and provides future directions.Beatriz de Souza Mello Gonçalves, Flávio Leonel de Carvalho, Paula de Camargo Fiorini Paula de camargo fiorin (2022) in this paper, the objective of this article is to analyse the pre-existing studies that investigate the link between the circular economy and financial aspects in order to understand the evolution of the circular economy literature and its relationship with finance. In addition, it proposes an investigation of empirical evidence of economic-financial gains resulting from the adoption of circular production practices. The methodology used to achieve this goal was a systematic review of the literature and bibliometric analysis. Thus, it was possible to conclude that the barriers faced by companies adopting the circular economy in relation to financial performance are defined by ( i ) the size of the business and the initial investment cost, (ii) difficulties for micro and small companies, (iii) to a more complex structuring of the business, and (iv) greater exposure to risk, as the circular economy is a new concept and is and not as representative as a linear standard system. Susanne Preuss, Roland Königsgruber (2021) in this journal, a large stream of research has analysed the effects of corporate political connections (CPCs) on firms, including first evidence on their effects on financial reporting behaviour . However, the evidence so far is inconclusive, and attempts to explain the causality of effects on reporting are limited. In this article, we present the results of a systematic review of the literature on CPCs. We draw on findings in the accounting, finance, and economics literature and derive a framework that identifies four channels through which CPCs affect financial reporting.

6. 4. Md Babar, Ahsan Habib (2021) in this paper, Product market competition has been identified as one of the most powerful corporate governance tools for motivating managers to maximise firm value. Consistent with this view, a large body of theoretical and empirical research over the years has investigated the implications of product market competition. This paper synthesizes and critically evaluates the empirical literature on the consequences of product market competition in the accounting, finance, and corporate governance domains. Our review focuses on issues like financial reporting. 5. Stephanie A Hairston, Marcus R Brooks (2019) in this paper, the financial crisis of 2008 increased the call for standard setters and financial regulators to review the effectiveness of derivative regulation in improving financial reporting quality. Prior literature defines financial reporting quality as the extent to which financial statements provide information that is useful to investors and creditors in their investment decisions (Schipper, 2003; Schipper & Vincent, 2003). This review summarises the empirical evidence regarding the effectiveness of derivative regulation in achieving its stated objective. 6. Chris Brooks, Ioannis Oikonomou (2018) in this journal, This paper not only attempts to survey the burgeoning literature on environmental, social and governance disclosures and performance and their effects on firm value, but its focus also lies on highlighting stylised observations coming from the most recent work that has not yet become part of the ‘conventional wisdom’ in the field. In addition, it outlines some of the crucial knowledge gaps and interesting questions that have not, as of yet, been addressed and thus outlines a potential agenda for future research on socially responsible investing. 7. Farzaneh A Amani, Adam M Fadlalla (2017) in this journal, this paper explores the applications of data mining techniques in accounting and proposes an organising framework for these applications. A large body of literature reported on specific uses of the important data mining paradigm in accounting, but research that takes a holistic view of these uses is lacking. To organise the literature on the applications of data mining in accounting, we create a framework that combines the two well-known accounting reporting perspectives (retrospection and prospection), and the three well-accepted goals of data

7. RESEARCH METHODOLOGY Types of Research : Analytical Research Type of Data : Secondary data Type of tool : R atio A nalysis

8. RATIO ANALYSIS 1. Current ratio 2. Net Profit Margin 3. Operating Margin Ratio 4. Price Earning Ratio 5. Dividend Payout Ratio 6. Earnings Per Share Ratio

9. 4.1 DATA ANALYSIS AND INTERPRETATION Table and Chart showing current ratio of the Company YEAR CURRENT ASSETS CURRENT LIABILITIES CURRENT RATIO 2021-2022 49,49,889.25cr 47,07,509.34cr 1.0515 2022-2023 54,74,596.73cr 51,89,391.10cr 1.0549 2023-2024 61,37,076.7cr 58,02,447.42cr 1.0576 INFERENCE Above table shows the current ratio values of three years (2022 - 2024) it shows the relationship between current asset and current liability. During the year 2022-23 the current ratio was low (1.0549) and during the year 2023-24 the current ratio was high (1.0576) RATIO ANALYSIS C URRENT RATIO

10. NET PROFIT MARGIN RATIO Table and Chart showing net profit margin ratio of the Company YEAR NET PROFIT TOTAL REVENUE NET PROFIT MARGIN RATIO (%) 2021-2022 31675.98 275457.29 11.49 2022-2023 50232.45 332103.06 15.12 2023-2024 61076.62 415130.66 14.71 INFERENCE Above table shows net profit margin ratio the values of three years (2022 - 2024) it shows the relationship between net profit and total revenue. During the year 2022-23 the net profit margin ratio was high (15.12) and during the year 2023-24 the net profit margin ratio was low (14.71)  

11. OPERATING MARGIN RATIO Table and Chart showing operating margin ratio of the Company YEAR OPERATING PROFIT TOTAL REVENUE OPERATING PROFIT MARGIN RATIO (%) 2021-2022 6106.52 2,75,457.29 2.21 2022-2023 33887.32 3,32,103.06 10.20 2023-2024 33452.71 4,15,130.66 8.05 INFERENCE Above table shows operating margin ratio the values of three years (2022 - 2024) it shows the relationship between operating profit and total revenue. During the year 2022-23 the operating margin ratio was high (10.20) and during the year 2023-24 the operating margin ratio was low (8.05)

12. PRICE EARNING RATIO Table and Chart showing price earning ratio of the Company  YEAR MARKET PRICE SHARE EARNING PER SHARE PRICE EARNING RATIO 2021-2022 493.55 35.49 13.91 2022-2023 523.75 56.29 9.31 2023-2024 752.60 68.44 11.00 INFERENCE Above table shows price earning ratio the values of three years (2022 - 2024) it shows the relationship between market price share and earning per share. During the year 2022-23 the price earning ratio was low (9.31) and during the year 2023-24 the price earning ratio was high (11.00)

13. DIVIDEND PAYOUT RATIO Table and Chart showing dividend payout ratio of the Company YEAR DIVIDEND PER SHARE EARNINGS PER SHARE DIVIDEND PAYOUT RATIO 2021-2022 71000 35.49 20.00% 2022-2023 113000 56.28 20.08% 2023-2024 137000 68.43 20.02% INFERENCE Above table shows dividend payout ratio the values of three years (2022 - 2024) it shows the relationship between market price share and earning per share. During the year 2022-23 the dividend payout ratio was high (20.08%) and during the year 2023-24 the dividend payout ratio was low (20.02%)

14. EARNINGS PER SHARE RATIO Table and Chart showing earnings per share ratio of the Company YEAR PROFIT AVAILABLE FOR EQUITY SHAREHOLDERS NUMBER OF EQUITY SHARE EARNINGS PER SHARE 2021-2022 31675.98cr 892.46 35.49 2022-2023 50232.45cr 892.46 56.28 2023-2024 61076.62cr 892.46 68.43 INFERENCE Above table shows earnings per share ratio the values of three years (2022 - 2024) it shows the relationship between profit available for equity shareholders and number of equity share. During the year 2022-23 the earnings per share ratio was low (56.28) and during the year 2023-24 the earnings per share ratio was high (68.43)

15. FINDINGS The current ratio shows that ratio is higher ( 1.0549 ) in the year 2024 and lower ( .0576 ) in the year 2023 it shows the increase in trend The net profit margin ratio shows that the ratio is higher (15.12)in the year 2023 and lower (14.71) in the year 2024 it shows the fluctuation trend. The operating margin ratio shows that the ratio is higher (10.20)in the year 2023 and lower (8.05) in the year 2024 it shows the fluctuation trend. The price earning ratio shows that the ratio is lower (9.31)in the year 2023 and higher (11.00) in the year 2024 it shows the increasing trend. The dividend payout ratio shows that the ratio is higher (20.08)in the year 2023 and lower (20.02) in the year 2024 it shows the fluctuation trend. The earning per share ratio shows that the ratio is lower (56.28)in the year 2023 and higher(68.43) in the year 2024 it shows the increasing trend.

16. THANK YOU