PROJECT ON

“ EQUITY RESEARCH IN BANKING SECTOR ”

UNDER THE GUIDANCE OF

Mr. subojeet sen gupta.

SUBMITTED BY

JAGRUTI GODAMBE

TRAINEE AT BIRLA SUN LIFE INSURANCE

2012-2013

IN FULFILMENT OF ONE MONTH WINTER INTERNSHIP

WITH BIRLA SUN LIFE INSURANCE.

CERTIFICATEThis is to certify that the study presented by

JAGRUTI GODAMBE to Birla Sun Life Insurance in completion of the one month winter internship in

finance under the title of Equity Research in Banking sector has been done under my guidance.

Signature of the candidate

---------------------------

Jagruti Godambe

Signature of the Guide

Subojeet sen gupta.

ACKNOWLEDGEMENT

I take this opportunity to sincerely thanks and express my gratitude to my project guide Mr. Subojeet Sen Gupta for guiding me throughout my entire project.

The experience and the knowledge acquired during the internship have been invaluable and it will help me a great deal in my future education and career.

JAGRUTI GODAMBE

TABLE OF CONTENTS

S.NO. CONTENT Page no.

1. Executive summery 6

2. Objective, scope, limitations of the

project.7

3. Introduction 8

4. Fundamental analysis 10

5. Technical analysis 12

6. Analysis of banking sector

15

7. Analysis of banks 21

8. Recommendations 34

9. Conclusion 35

This project is about equity research in banking sector. In this project the banking sector is

analyzed through financial and technical analysis. This are the two tools used for analyzing the

banking sector. Then the four Indian banks are analyzed with the description and details.

OBJECTIVE, SCOPE, ASSUMPTION AND LIMITATIONS OF THE PROJECT

1. Objective:The main objective of this project is to understand that proper analysis of a company minimizes the risk of losing money in stock market of any investor.

2. Scope: The scope of the project is limited to understanding the basics of fundamental analysis and technical analysis and apply it to take a decision of investing in banking sector.

3. Assumptions : This project is prepared on the assumption that most of the investment in stock market is done by the brokers and not by the common man.

4. Limitations: The project has been limited to investment analysis of banking sector only.

INTRODUCTIONWhat is equity?In accounting and finance, equity is the residual claim or interest of the most junior class of investor in assets after all liabilities are paid.What is equity shares? Equity share is the type of share which is hold by equity shareholders. Equity shareholders are the owners of the company. They are the real risk bearers. They may get dividend or they may not get dividend. They enjoy maximum voting rights. What is equity investment?Equity investment generally refers to the holding and buying of shares on the stock market by individuals and firms in anticipation of gains from dividend as the value of stock rises.How to invest in equity shares?Investors can buy the equity shares from the primary and secondary market. Purchase of shares from security market is primary purchase. And purchase of shares from (IPO) is purchase from secondary market.

Why should one invest in equity? If the person invests in equity then it provides maximum returns to the investor as compared to other avenues of investment.But while making an investment in equity, investor has to study them carefully. And this can be done through analyzing of equity.Equity shares can be analyzed through:

1. Fundamental analysis2. Technical analysis

s

Concept

Fundamental analysis is a method of evaluating a security by attempting to measure its intrinsic value by examining related economic, financial and other qualitative and quantitative factors.

Fundamental analysts cover macroeconomic factors, like overall economy and industry conditions and management of companies. So, economy-industry-company analysis is a part of fundamental analysis.

Goal of Fundamental Analysis

The end goal of fundamental analysis is to produce a value that investors can compare with current market price in hope of figuring what sort of position to take in that particular stock/company.

So, if the security is underpriced, then go for ‘Buy’, and if the security is overpriced then, ‘Sell’.

Concept of technical analysis:

Technical analysis is the process of analyzing a security’s historical prices in an effort to determine probable future prices. This is done by comparing current price action with comparable historical price action to predict reasonable outcome. It is a study of prices, with charts being the primary tool.

Technical Analysis, as a tool for equity research, is now

fast catching up with the imagination of investors in

India. As a subject, Technical Analysis is the study of price

patterns and volumes using historical data for scripts,

currency or even a commodity.

Darashaw has been a pioneer in disseminating quality

Technical Research to Domestic & Foreign Institutional

Investors since 1997. The key features of our approach

have been

Primary use of Technical Research for taking long-

term Investment Decisions rather than for short-

term trading.

Coverage of Markets that extend beyond local

Indices & stocks and include Dow, NASDAQ and

Crude Oil.

An approach that has often proved itself to be

completely contrary to the General Market Outlook

of the Investment Fraternity.

THE INDIAN BANKING SECTORThe Indian banking sector has seen unprecedented growth along with remarkable improvement in its quality of assets and efficiency since economic liberalization began in the early 1990s.

From providing plain vanilla banking services, banks have gradually transformed themselves into universal banks. ATMs, Internet banking, mobile banking and social banking have made "anytime anywhere banking" the norm now.

In 2011/12, non-cash payments comprised 91 per cent of total transactions in terms of value and 48 per cent in terms of volume. Within noncash payments, too, the share of payments through cherubs has come down from 85 per cent to nine per cent in value, and 83 per cent to 52 per cent in volume between 2005/06 and 2011/12.

NON-CASH PAYMENTS COMPRISED 91 PER CENT OF VALUE AND 48 PER CENT OF VOLUME OF TOTAL TRANSACTIONS

Banks have taken other measures to improve their functioning, too. As a result, there were 20 Indian banks in the UK-based Brand Finance's annual international

ranking of top 500 in 2010, as compared to only six in 2007, according to a report in a leading financial daily.

The growth is not restricted to the metropolitan or urban areas. Financial inclusion has been at the forefront of regulators and policy makers in India, a country where approximately half of the population still does not have access to banking services. There have been occasions when banks have acted beyond their role of finance providers.

For example, a financial daily reported that Aryavart Gramin Bank, a regional rural bank sponsored by Bank of India, tied up with Tata BP Solar to finance "Solar Home Lighting System" for village homes in Uttar Pradesh. It extended finance of around Rs 10,000 with Rs 3,000 as margin money to be contributed by the beneficiary.

The equated monthly installment towards the repayment of the loan amount was less than the amount the villagers had to spend on kerosene requirements per month. The bank's initiative resulted in 20,000 houses

getting solar power. It also meant an annual saving of about 192 tanker loads of kerosene.

Recent development in banking sector

India's economic development and financial sector liberalization have led to a transformation of the Indian

banking sector over the past two decades Asset quality and profitability have improved significantly and the system has become more commercially oriented.

Indian banks were not much impacted by the financial crisis, helped by their relative isolation and some

counter-cyclical measures implemented by the Reserve Bank of India in the mid-2000s, but asset quality

deterioration led to some proactive loan restructuring

Over the past year Indian banks have encountered more headwinds as high inflation led to tightening monetary

policy, putting pressure on borrowers, especially in weaker sectors.

Funding and liquidity are relatively strong features of the Indian banking system as the Loans/Deposits ratio is under 80% and the banks are required to hold large

amounts of Indian government bonds. Their access to

offshore funding is constrained by India's just investment grade sovereign rating.

Capital is also adequate in aggregate but some banks, including large Public Sector banks, are in need of core

capital.

“ ANALYSIS OF BANKS “

Description DetailsINDUSTRY Bank- publicHOUSE Government

BSE CODENSE CODE

532461

PNB | ISIN: INE160A01014

INCORPORATION YEARE-MAILCHAIRMAN

EXECUTIVE DIRECTOR

1895hosd@pnb.co.inKR KAMATH

RAKESH SETHI

COMPANY PROFILE OF PUNJAB NATIONAL BANK.

PROFILE OF UNION BANK OF INDIA

DESCRIPTION DETAILSINDUSTRY Bank- publicHOUSE GovernmentBSE CODE

INCORPORATION YEAR

CHAIRMAN

WEBSITE

532477

1919

D. SARKAR

www.unionbankofindia.co.in

KOTAK MAHINDRA BANK

DESCRIPTION DETAILSINDUSTRY Bank- public

HOUSE GOVERNMENT

BSE CODE 500247

NSE kotakbank

INCORPORATION YEAR 1985

CHAIRMAN MR. Uday Kotak

CHAIRMAN OF BOARD OF DIRECTOR

Dr. Shankar Acharya

WEBSITE www.kotak.com

Yes bankDESCRIPTION DETAILS

INDUSTRY Bank- private

BSE CODE 532648

INCORPORATION YEAR 2004

CHAIRMAN Dr. Rana Kapoor

WEBSITE www.yesbank.in

Profit & Loss account of Punjab National Bank

------------------- in Rs. Cr. -------------------

Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

12 mths 12 mths 12 mths 12 mths 12 mths

Income

Interest Earned 36,428.03 26,986.48 21,466.91 19,326.16 14,265.02

Other Income 4,202.60 3,612.58 3,565.31 2,919.69 1,997.56

Total Income 40,630.63 30,599.06 25,032.22 22,245.85 16,262.58

Expenditure

Interest expended 23,013.59 15,179.14 12,944.02 12,295.30 8,730.86

Employee Cost 4,723.48 4,461.10 3,121.14 2,924.38 2,461.54

Selling and Admin Expenses 3,353.59 2,813.45 1,701.46 1,406.42 884.19

Depreciation 292.26 255.85 222.83 191.06 170.23

Miscellaneous Expenses 4,363.51 3,456.02 3,137.42 2,337.80 1,966.98

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Operating Expenses 9,405.85 8,367.96 5,761.36 5,026.81 3,902.55

Provisions & Contingencies 3,326.99 2,618.46 2,421.49 1,832.85 1,580.39

Total Expenses 35,746.43 26,165.56 21,126.87 19,154.96 14,213.80

Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit for the Year 4,884.20 4,433.50 3,905.36 3,090.88 2,048.76

Extraordionary Items 7.88 0.00 0.00 0.00 0.00

Profit brought forward 0.00 0.00 7.64 0.00 15.52

Total 4,892.08 4,433.50 3,913.00 3,090.88 2,064.28

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 746.19 696.99 693.67 630.61 409.89

Corporate Dividend Tax 121.05 113.07 116.43 107.17 69.66

Per share data (annualised)

Earning Per Share (Rs) 144.00 139.94 123.86 98.03 64.98

Equity Dividend (%) 220.00 220.00 220.00 200.00 130.00

Book Value (Rs) 777.39 632.48 514.77 416.74 341.98

Appropriations

Transfer to Statutory Reserves 1,390.32 1,258.39 1,532.46 1,155.46 596.14

Transfer to Other Reserves 2,634.53 2,365.05 1,570.44 1,190.00 988.59

Proposed Dividend/Transfer to Govt 867.24 810.06 810.10 737.78 479.55

Balance c/f to Balance Sheet 0.00 0.00 0.00 7.64 0.00

Total 4,892.09 4,433.50 3,913.00 3,090.88 2,064.28

Balance Sheet of Punjab National Bank

------------------- in Rs. Cr. -------------------

Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

12 mths 12 mths 12 mths 12 mths 12 mths

Capital and Liabilities:

Total Share Capital 339.18 316.81 315.30 315.30 315.30

Equity Share Capital 339.18 316.81 315.30 315.30 315.30

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 26,028.37 19,720.99 15,915.63 12,824.59 10,467.35

Revaluation Reserves 1,449.53 1,470.76 1,491.99 1,513.74 1,535.70

Net Worth 27,817.08 21,508.56 17,722.92 14,653.63 12,318.35

Deposits379,588.4

8312,898.73 249,329.80 209,760.50 166,457.23

Borrowings 37,264.27 31,589.69 19,262.37 4,374.36 5,446.56

Total Debt416,852.7

5344,488.42 268,592.17 214,134.86 171,903.79

Other Liabilities & Provisions 13,524.18 12,328.27 10,317.69 18,130.13 14,798.23

Total Liabilities458,194.0

1378,325.25 296,632.78 246,918.62 199,020.37

Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

12 mths 12 mths 12 mths 12 mths 12 mths

Assets

Cash & Balances with RBI 18,492.90 23,776.90 18,327.58 17,058.25 15,258.15

Balance with Banks, Money at Call 10,335.14 5,914.32 5,145.99 4,354.89 3,572.57

Advances293,774.7

6242,106.67 186,601.21 154,702.99 119,501.57

Investments122,629.4

795,162.35 77,724.47 63,385.18 53,991.71

Gross Block 5,265.08 4,981.60 4,215.21 3,930.36 3,699.64

Accumulated Depreciation 2,096.22 1,876.01 1,701.74 1,533.25 1,384.12

Net Block 3,168.86 3,105.59 2,513.47 2,397.11 2,315.52

Capital Work In Progress 0.00 0.00 0.00 0.00 0.00

Other Assets 9,792.88 8,259.42 6,320.07 5,020.20 4,380.84

Total Assets458,194.0

1378,325.25 296,632.79 246,918.62 199,020.36

Contingent Liabilities173,768.8

4101,465.73 68,124.47 79,270.65 80,606.88

Bills for collection 50,981.22 37,449.53 33,215.78 31,941.43 23,448.99

Book Value (Rs) 777.39 632.48 514.77 416.74 341.98

Balance Sheet of Union Bank of India

------------------- in Rs. Cr. -------------------

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

Capital and Liabilities:

Total Share Capital 635.33 505.12 505.12 505.12 505.12

Equity Share Capital 524.33 505.12 505.12 505.12 505.12

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 111.00 0.00 0.00 0.00 0.00

Reserves 10,555.35 8,302.69 6,549.26 5,118.19 4,228.16

Revaluation Reserves 1,573.84 1,615.97 1,685.98 1,724.40 456.59

Net Worth 12,764.52 10,423.78 8,740.36 7,347.71 5,189.87

Deposits202,461.2

9170,039.74 138,702.83 103,858.65 85,180.22

Borrowings 13,315.97 9,215.31 3,884.90 4,760.49 4,215.53

Total Debt215,777.2

6179,255.05 142,587.73 108,619.14 89,395.75

Other Liabilities & Provisions 7,442.67 5,483.01 9,647.43 8,106.43 8,092.26

Total Liabilities235,984.4

5195,161.84 160,975.52 124,073.28 102,677.88

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

Assets

Cash & Balances with RBI 17,610.45 12,468.24 8,992.05 9,454.74 5,917.57

Balance with Banks, Money at Call 2,487.99 3,308.45 6,992.88 643.10 2,508.87

Advances150,986.0

8119,315.30 96,534.23 74,348.29 62,386.43

Investments 58,399.14 54,403.53 42,996.96 33,822.63 27,981.77

Gross Block 3,598.41 3,396.98 3,220.65 2,937.45 1,487.21

Accumulated Depreciation 1,319.21 1,101.50 893.35 741.62 664.49

Net Block 2,279.20 2,295.48 2,327.30 2,195.83 822.72

Capital Work In Progress 13.58 9.96 7.86 4.57 2.28

Other Assets 4,208.00 3,360.89 3,124.23 3,604.10 3,058.24

Total Assets235,984.4

4195,161.85 160,975.51 124,073.26 102,677.88

Contingent Liabilities148,033.9

963,675.91 63,248.00 47,413.13 32,894.26

Bills for collection 16,652.20 13,227.35 22,391.95 18,280.70 10,537.72

Book Value (Rs) 211.31 174.37 139.66 111.33 93.71

Profit & Loss account of Union Bank of India

------------------- in Rs. Cr. -------------------

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

Income

Interest Earned 16,452.62 13,302.68 11,889.38 9,447.30 7,382.18

Other Income 2,038.78 1,974.74 1,482.55 1,232.67 841.80

Total Income 18,491.40 15,277.42 13,371.93 10,679.97 8,223.98

Expenditure

Interest expended 10,236.42 9,110.27 8,075.81 6,360.95 4,591.96

Employee Cost 2,600.25 1,354.99 1,152.36 845.68 873.80

Selling and Admin Expenses 1,814.19 1,225.57 1,082.54 946.34 620.16

Depreciation 155.66 160.14 136.58 101.82 86.37

Miscellaneous Expenses 1,602.94 1,351.53 1,198.08 1,038.15 1,206.30

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Operating Expenses 5,137.69 3,206.76 2,760.59 2,178.20 1,805.92

Provisions & Contingencies 1,035.35 885.47 808.97 753.79 980.71

Total Expenses 16,409.46 13,202.50 11,645.37 9,292.94 7,378.59

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit for the Year 2,081.95 2,074.92 1,726.55 1,387.03 845.39

Extraordionary Items 0.00 0.00 0.00 0.00 0.00

Profit brought forward 1.63 0.83 0.65 0.48 0.55

Total 2,083.58 2,075.75 1,727.20 1,387.51 845.94

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 419.47 277.81 252.56 202.05 176.79

Corporate Dividend Tax 68.60 47.21 42.92 34.34 27.80

Per share data (annualised)

Earning Per Share (Rs) 39.71 41.08 34.18 27.46 16.74

Equity Dividend (%) 80.00 55.00 50.00 40.00 35.00

Book Value (Rs) 211.31 174.37 139.66 111.33 93.71

Appropriations

Transfer to Statutory Reserves 973.36 1,177.09 1,171.89 860.86 428.87

Transfer to Other Reserves 621.99 572.01 259.00 289.61 211.99

Proposed Dividend/Transfer to Govt 488.07 325.02 295.48 236.39 204.59

Balance c/f to Balance Sheet 0.16 1.63 0.83 0.65 0.48

Total 2,083.58 2,075.75 1,727.20 1,387.51 845.93

Profit & Loss account of Kotak Mahindra Bank

------------------- in Rs. Cr. -------------------

Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

12 mths 12 mths 12 mths 12 mths 12 mths

Income

Interest Earned 6,180.24 4,303.56 3,255.62 3,065.14 2,535.36

Other Income 848.42 507.56 420.97 157.56 310.48

Total Income 7,028.66 4,811.12 3,676.59 3,222.70 2,845.84

Expenditure

Interest expended 3,667.75 2,058.49 1,397.48 1,546.60 1,309.56

Employee Cost 902.36 783.83 583.48 583.63 519.23

Selling and Admin Expenses 542.71 487.82 648.07 552.91 326.66

Depreciation 116.76 98.27 90.00 69.56 50.86

Miscellaneous Expenses 714.03 564.53 396.47 193.91 345.60

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Operating Expenses 1,754.66 1,528.58 1,447.42 1,333.60 999.25

Provisions & Contingencies 521.20 405.87 270.60 66.41 243.10

Total Expenses 5,943.61 3,992.94 3,115.50 2,946.61 2,551.91

Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit for the Year 1,085.05 818.18 561.11 276.10 293.93

Extraordionary Items 0.00 0.00 2.01 0.00 0.00

Profit brought forward 1,494.52 965.91 648.94 528.17 354.18

Total 2,579.57 1,784.09 1,212.06 804.27 648.11

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 44.49 36.88 29.66 25.96 25.87

Corporate Dividend Tax 7.22 4.37 0.00 1.86 4.40

Per share data (annualised)

Earning Per Share (Rs) 14.65 11.10 16.12 7.99 8.53

Equity Dividend (%) 12.00 10.00 8.50 7.50 7.50

Book Value (Rs) 107.75 92.74 130.40 112.98 104.26

Appropriations

Transfer to Statutory Reserves 310.81 207.41 188.43 113.70 74.98

Transfer to Other Reserves 54.26 40.91 28.06 13.80 14.70

Proposed Dividend/Transfer to Govt 51.71 41.25 29.66 27.82 30.27

Balance c/f to Balance Sheet 2,162.79 1,494.52 965.91 648.94 528.17

Total 2,579.57 1,784.09 1,212.06 804.26 648.12

Balance Sheet of Kotak Mahindra Bank

------------------- in Rs. Cr. -------------------

Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

12 mths 12 mths 12 mths 12 mths 12 mths

Capital and Liabilities:

Total Share Capital 370.34 368.44 348.14 345.67 344.67

Equity Share Capital 370.34 368.44 348.14 345.67 344.67

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 7,610.41 6,464.95 4,191.78 3,559.86 3,249.04

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Net Worth 7,980.75 6,833.39 4,539.92 3,905.53 3,593.71

Deposits 38,536.52 29,260.97 23,886.47 15,644.93 16,423.65

Borrowings 16,595.52 11,723.95 6,140.51 5,904.07 5,119.25

Total Debt 55,132.04 40,984.92 30,026.98 21,549.00 21,542.90

Other Liabilities & Provisions 2,553.67 3,032.36 2,869.42 3,257.34 3,175.75

Total Liabilities 65,666.46 50,850.67 37,436.32 28,711.87 28,312.36

Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

12 mths 12 mths 12 mths 12 mths 12 mths

Assets

Cash & Balances with RBI 2,016.49 2,107.72 2,085.67 995.35 1,710.29

Balance with Banks, Money at Call 618.06 363.26 214.59 145.32 439.18

Advances 39,079.23 29,329.31 20,775.05 16,625.34 15,552.22

Investments 21,566.81 17,121.44 12,512.66 9,110.18 9,141.99

Gross Block 955.41 831.80 745.34 460.61 391.42

Accumulated Depreciation 505.45 406.20 317.69 247.25 181.17

Net Block 449.96 425.60 427.65 213.36 210.25

Capital Work In Progress 0.00 0.00 0.00 0.00 0.00

Other Assets 1,935.91 1,503.33 1,420.69 1,622.33 1,258.43

Total Assets 65,666.46 50,850.66 37,436.31 28,711.88 28,312.36

Contingent Liabilities 17,319.52 12,291.30 4,156.15 4,486.28 7,172.79

Bills for collection 6,166.00 4,470.06 3,063.64 1,188.17 826.55

Book Value (Rs) 107.75 92.74 130.40 112.98 104.26

Balance Sheet of Yes Bank ------------------- in Rs. Cr. -------------------

Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

12 mths 12 mths 12 mths 12 mths 12 mths

Capital and Liabilities:

Total Share Capital 352.99 347.15 339.67 296.98 295.79

Equity Share Capital 352.99 347.15 339.67 296.98 295.79

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 4,323.65 3,446.93 2,749.88 1,327.24 1,023.13

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Net Worth 4,676.64 3,794.08 3,089.55 1,624.22 1,318.92

Deposits 49,151.71 45,938.93 26,798.57 16,169.42 13,273.16

Borrowings 14,156.49 6,690.91 4,749.08 2,189.06 986.21

Total Debt 63,308.20 52,629.84 31,547.65 18,358.48 14,259.37

Other Liabilities & Provisions 5,677.28 2,583.07 1,745.32 2,918.10 1,404.13

Total Liabilities 73,662.12 59,006.99 36,382.52 22,900.80 16,982.42

Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

12 mths 12 mths 12 mths 12 mths 12 mths

Assets

Cash & Balances with RBI 2,332.54 3,076.02 1,995.31 1,277.72 959.24

Balance with Banks, Money at Call 1,253.00 419.96 677.94 644.99 668.33

Advances 37,988.64 34,363.64 22,193.12 12,403.09 9,430.27

Investments 27,757.35 18,828.84 10,209.94 7,117.02 5,093.71

Gross Block 331.05 255.30 206.40 194.88 133.01

Accumulated Depreciation 161.98 125.78 92.32 64.15 35.73

Net Block 169.07 129.52 114.08 130.73 97.28

Capital Work In Progress 8.04 2.91 1.38 0.39 3.89

Other Assets 4,153.48 2,186.11 1,190.73 1,326.86 729.70

Total Assets 73,662.12 59,007.00 36,382.50 22,900.80 16,982.42

Contingent Liabilities150,977.7

0128,259.99 101,835.50 43,953.92 65,990.12

Bills for collection 10,851.42 8,135.54 4,105.86 3,849.80 2,884.42

Book Value (Rs) 132.49 109.29 90.96 54.69 44.59

Profit & Loss account of Yes Bank

------------------- in Rs. Cr. -------------------

Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

12 mths 12 mths 12 mths 12 mths 12 mths

Income

Interest Earned 6,307.36 4,041.75 2,369.71 2,003.32 1,310.83

Other Income 857.12 623.27 575.53 435.02 360.67

Total Income 7,164.48 4,665.02 2,945.24 2,438.34 1,671.50

Expenditure

Interest expended 4,691.72 2,794.82 1,581.76 1,492.14 974.11

Employee Cost 475.15 362.34 256.89 218.02 202.41

Selling and Admin Expenses 203.03 185.25 182.76 125.49 60.27

Depreciation 40.82 34.84 30.26 30.10 19.23

Miscellaneous Expenses 776.76 560.64 415.84 268.75 215.45

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Operating Expenses 944.10 719.08 587.76 475.61 356.92

Provisions & Contingencies 551.66 423.99 297.99 166.75 140.44

Total Expenses 6,187.48 3,937.89 2,467.51 2,134.50 1,471.47

Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit for the Year 977.00 727.14 477.74 303.84 200.02

Extraordionary Items 0.04 -0.04 0.00 0.00 0.00

Profit brought forward 1,115.06 672.95 405.78 245.08 105.30

Total 2,092.10 1,400.05 883.52 548.92 305.32

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 141.20 86.79 50.95 0.00 0.00

Corporate Dividend Tax 22.91 14.41 8.66 0.00 0.00

Per share data (annualised)

Earning Per Share (Rs) 27.68 20.95 14.06 10.23 6.76

Equity Dividend (%) 40.00 25.00 15.00 0.00 0.00

Book Value (Rs) 132.49 109.29 90.96 54.69 44.59

Appropriations

Transfer to Statutory Reserves 269.61 183.79 150.95 143.15 60.24

Transfer to Other Reserves -0.01 0.00 0.00 0.00 0.00

Proposed Dividend/Transfer to Govt 164.11 101.20 59.61 0.00 0.00

Balance c/f to Balance Sheet 1,658.39 1,115.06 672.95 405.78 245.08

Total 2,092.10 1,400.05 883.51 548.93 305.32

Recommendations for Indian banking sector

1. The organizational structure of the banks should be effective and efficient

2. The customer service should be efficient

3. Islamic banking should be adopted in India.

4. Banks in India should avoid excessive reliance on technology.

5. Data of banks should be protected properly otherwise hackers can gain access to the sensitive data.

ConclusionIt could be concluded that there has been no

banking crisis at the same time, efficiency of

banking system as a whole, measured by declining

spread has improved. This is not say that they

have no challenges. There are emerging

challenges, which appear in the forms of

consolidation; recapitalization, prudential

regulation weak banks, and non-performing assets,

legal framework etc needs urgent attention. The

paper concludes that, from a regulatory

perspective, the recent developments in the

financial sector have led to an appreciation of the

limitations of the present segmental approach to

financial regulation and favors adopting a

consolidated supervisory approach to financial

regulation and supervision, irrespective of its

structural design.

Webliography1. www. Moneycontrol.com2.www.management paradise.com3.www.zignals.com 4.www.money.rediff.com 5.www.kotak.com 6.www.yesbank.com 7.www.caclubindia.com 8.www.indianfoline.com 9.www.pnbindia.com