Fundamental analysis of state bank of india

Fundamental analysis of SBI using three tire analysis ie
1. Economic Analysis
2. Industry Analysis
3. Company Analysis

1. Fundamental Analysis of
State Bank of India

2. Three Tire Analysis
We will be doing the fundamental analysis of
SBI using three tire analysis ie
1. Economic Analysis
2. Industry Analysis
3. Company Analysis

3. Economic

4. Introduction
1.India is currently one of the world's most attractive
investment destinations.
2. With the opening up of foreign direct investment (FDI) in
several sectors, the country is an eye-catching destination for
overseas investors.
3. There has been marked improvement in the hiring scenario
in the country, as NaukriJob Speak Index for May 2014
showed a 14 per cent increase in hiring activity when
compared to May 2013.4. Five-Year Plan is set to help in
further improving the export performance of Indian
companies and the Indian growth story, which will
consequently improve the overall Indian economy.
http://www.marketexpress.in

5. Statistics
GDP growth 5.7% (Q2 2014)
GDP per capita $1,165 (nominal: 140th; 2011)
Inflation 5.52% (Oct 2014)Main industries
telecommunications, textiles, chemicals, food
processing, steel, transportation equipment,
cement, mining, petroleum, machinery,
software, pharmaceuticals
Source http://www.tradingeconomics.com

6. Import export
Export goods petroleum products, precious stones,
machinery, iron and steel, chemicals, vehicles,
apparel Import goods crude oil, precious stones,
machinery, fertilizer, iron and steel, chemicals
Main export partners US , UAE , China, Hong Kong
import partners China . UAE ,Saudi Arabia , US ,
Australia

7. http://www.thegu
ardian.com

8. Industry Analysis

9. Market Structure in Indian Scenario
RBI
Scheduled
Commercial
Public Private Foreign RRB
Cooperative
Urban Rural
Unscheduled

10. Market structure in the global scenario
In the world’s top 1000 banks, there are many more large and medium-sized domestic
banks from the developed countries than from the emerging economies.
Illustratively, according to The Banker 2011, out of the top 1000 banks globally,
over 200 are located in USA,
just above 100 in Japan,
over 80 in Germany,
over 40 in Spain and
around 40 in the UK.
Even China has as many as 16 banks within the top 1000, out of which, as many as 14 are
in the top 500.

11. Top 10 banks in India
PUBLIC SECTOR BANKS
State Bank of India(SBI)
Punjab National Bank
Bank of Baroda
CanaraBank
Bank of India
PRIVATE SECTOR BANKS
ICICI Bank (Industrial Credit and Investment Corporation of India)
HDFC Bank (Housing Development Finance Corporation)
Axis Bank
Citi Bank
IDBI Bank
Source:www.thetoplist.in

12. Top 10 Banks of World
1.Industrial & Commercial Bank of China
2.HSBC Holdings, UK
3.China Construction Bank Corporation
4.BNP Paribas, France
5.Mitsubishi UFJ Bank, Japan
6.J. P. Morgan Chase & Co. USA
7.Agricultural Bank of China
8.Bank of China
9.Credit AgricoleSA, France
10.Barclays PLC, UK
64. State Bank of India
81. ICICI Bank
Source: (http://www.livemint.com)
Wikipedia

13. Industry Concentration in Public Sector
HERFINDAHL INDEX
source: capital line
database

14. Industry Concentration In Private Sector

15. The Herfindahlindex for the private sector
banks is 0.2442.
So, In Banking Industry private sector
indicates moderate concentration so the
concentration ratio lies between 0-
50percent.

16. Company Analysis

17. Introduction
Founded on 02-June-1806
Chairman ArunadhatiBhattacharaya
More than 16000 Branches
Provides a wide range of banking products through its vast
network of branches in India and overseas .
The headquarter of SBI is at Mumbai.
SBI has 14 Local Head Offices
57 Zonal Offices
It also has around 130 branches out of the country.

18. SUBSIDIARIES OF SBI
State Bank of Bikaner & Jaipur
State Bank of Hyderabad
State Bank of Mysore
State Bank of Patiala
State Bank of Travancore

19. Industry Analysis (Porter’s Five Force Model)
Bargaining power
ofcustomers(loan receivers)is
high due to possibility
ofmultiple banking
Threat ofsubstitutes is low as
banking is more convenient
and safe investment
Threat ofsubstitutes is low as
banking is more convenient and
safe investment
Competitive rivalry is high as
there are many private
players with the state ofthe art
technology
Bargaining power ofsuppliers
(a/c holders) is high due to
strong competition

20. Managem
ent
Corporate
Relations
CSR
Financial
Analysis

21. Financial Analysis
Net Profit
FY 2010,2011,2012,2013
76,796.02
88,954.45
109,165.61
121,586.96
2010 2011 2012 2013
Net Profit SBI

22. Earning Per Share And Book Value
2011-2012 2012-2013 2013-2014
184.31
210.06
156.76
1214.78
1394
1503
EPS AND BOOK VALUE OF SBI
EPS
Book Value
Book Value per share: common stock share holders
equity/common stock shares outstanding

23. Ratio Analysis

24. Some Other Ratios
Balance Sheet Ratio
Leverage Ratio
Cash Flow indicator ratio

25. Investment Valuation Ratio:
Dividend Per Share
FY2014 FY2013 FY2012 FY2011
30.00 41.50 35.00 30
23.00 20.00 16.50 14.00
Profitability Ratios:
InterestSpread
FY2014 FY2013 FY2012 FY2011
5.76 5.95 6.87 6.12
7.35 7.30 7.45 6.95

26. Net Profit Margin:
NetProfit Margin
FY2014 FY2013 FY2012 FY2011
7.03 10.39 9.68 7.58
17.96 17.19 15.75 15.79
(Total Revenue –Total Expenses)/Total Revenue
= Net Profit/Total Revenue = NetProfitMargin

27. Balance Sheet Ratio:
Capital Adequacy Ratio:
CAR
FY2014 FY2013 FY2012 FY2011
12.96 12.92 13.86 11.98
17.70 18.74 18.52 19.54
Debt Coverage Ratio:
Credit Deposit Ratio:
CDR
FY2014 FY2013 FY2012 FY2011
86.84 85.17 82.14 79.90
54.23 97.1 90.45

28. Leverage Ratio:
Current Ratio:
0.03 0.04 0.05 0.04
0.09 0.98 0.12 0.07
FY2014 FY2013 FY2012 FY2011
CurrentRatio
Quick Ratio:
FY2014 FY2013 FY2012 FY2011
QuickRatio
13.88 12.15 12.05 8.50
11.31 10.53 9.37 15.86

29. Cash Flow Indicator Ratio:
20.56 20.12 20.06 25.84
27.09 27.71 29.41 31.30
FY2014 FY2013 FY2012 FY2011
DividendPayout Ratio
Dividend Payout Ratio
Yearly dividend per share/EPS
NPA Non Performing
Assets

30. Thank You