FINANCIAL AND FUNDAMENTAL ANALAYSIS ON ICICI BANK

FINANCIAL & FUNDAMENTAL ANALYSIS ON ICICI BANK

Ankit Jaiswal

521129497 BBA, 6th Sem Page 1

AMBIT

P-178, C.I.T. ROAD, SCHEME VI-M, KANKURGACHI

KOLKATA- 700 054

LEARNING CENTER: 02737

FINANCIAL & fundamental ANALYSIS ON ICICI BANK

BY

ANKIT JAISWAL

Reg. No. 521129497

A project report submitted in partial fulfilment of the requirements for the degree of BBA of 2011 - 2014 batches in GENERAL of Sikkim

Manipal University, INDIA

Sikkim Manipal University of Health, Medical and Technological Sciences

Distance Education Wing

Synidicate House

Manipal - 576 104

STUDENT’S DECLARATION

Ankit Jaiswal


I hereby declare that the project report entitled

FINANCIAL & fundamental ANALYSIS ON ICICI BANK

submitted in partial fulfilment of the requirements for the degree of BBA of 2011 - 2014 batch in GENERAL to Sikkim Manipal University , India , is my original

work and not submitted for the award of any other degree, diploma , fellowship , or any other similar title or prizes.

PLACE: KOLKATA ANKIT JAISWAL

DATE: Reg. No. 521129497

Ankit Jaiswal


EXAMINER'S CERTIFICATION

The project report of

ANKIT JAISWAL

Reg. No. 521129497


Is approved and is acceptable in quality and form

INTERNAL EXAMINER EXTERNAL EXAMINER

Ankit Jaiswal


UNIVERSITY STUDY CENTRE CERTIFICATE

This is to certify that the project report entitled


submitted in partial fulfilment of the requirements for the degree of BBA of 2011 - 2014 batch in GENERAL of Sikkim Manipal University of Health , Medical and

Technological Sciences

ANKIT JAISWAL

Reg. No. 521129497

has worked under my supervision and guidance and that no part of this report has been submitted for the award of any other degree , diploma , fellowship or other

similar titles or prizes and that the work has not been published in any journal or magazine.

Ankit Jaiswal


Certified

ACKNOWLEDGEMENT

I would like to express my special thanks to my teacher Mr. Abhisek Jain as well as our study centre, AMBIT who gave me the golden opportunity to do this project on the

topic FINANCIAL ANALYSIS ON AXIS BANK which also helped me in doing a lot of research and i came to know about so many new things. I am really thankful to them.

Secondly, I would also like to thank my parents a lot in finalizing this project within the limited time frame.

Submitted By Supervised By

Ankit Jaiswal Mr. Abhishek Jain

Roll No-521129497 MBA

Ankit Jaiswal


Ankit Jaiswal


TABLE CONTENTS Sr.no

TITLE Page no.

1. Introduction to financial analysis 6

2. Economic analysis 14

3. Industry analysis 17

4. Company analysis 26

5. Research methodology 33

6. Data analysis 36

a) Economic38

b) Industry45

c) Company52

7. Finding & Limitations 72

8.s Conclusion & Suggestion 76

9. Bibliography 80

INTRODUCTION TO FINANCIAL & FUNDAMENTAL ANALYSIS

What is analysis?

The examination and evaluation of the relevant information to select the best course of action from among various alternatives. The methods used to analyze securities and make investment decisions

Ankit Jaiswal


fall into two very broad categories: fundamental analysis and technical analysis. Fundamental analysis involves analyzing the characteristics of a company in order to estimate its value. Technical analysis takes a completely different approach; it doesn't care one bit about the "value" of a company or a commodity. Technicians (sometimes called chartists) are only interested in the price movement in the market.

What is technical analysis?

Technical analysis is a method of evaluating securities by analyzing the statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity.

What is financial & fundamental analysis?

A financial analyst researches macroeconomic and microeconomic conditions along with company fundamentals to make business, sector and industry recommendations. They also often recommend a course of action, such as to buy or sell a company's stock based upon its overall current and predicted strength. An analyst must be aware of current developments in the field in which he or she specializes as well as in preparing financial models to predict future economic conditions for any number of variables.

Fundamental Analysis involves examining the economic, financial and other qualitative and quantitative factors related to a security in order to determine its intrinsic value. It attempts to study everything that can affect the security's value, including macroeconomic factors (like the overall economy and industry conditions) and individually specific factors (like the financial condition and management of companies). Fundamental analysis, which is also known as quantitative analysis, involves delving into a company’s financial statements (such as profit and loss account and balance sheet) in order to study various financial indicators (such as revenues, earnings, liabilities, expenses and assets). Such analysis is usually carried out by analysts, brokers and savvy investors.

Two analytical models

When the objective of the analysis is to determine what stock to buy and at what price, there are two basic methodologies

1. Fundamental analysis maintains that markets may misprice a security in the short run but that the "correct" price will eventually be reached. Profits can be made by purchasing the mispriced security and then waiting for the market to recognize its "mistake" and reprice the security.

2. Technical analysis maintains that all information is reflected already in the stock price. Trends 'are your friend' and sentiment changes predate and predict trend changes. Investors'

Ankit Jaiswal


emotional responses to price movements lead to recognizable price chart patterns. Technical analysis does not care what the 'value' of a stock is. Their price predictions are only extrapolations from historical price patterns.

Investors can use any or all of these different but somewhat complementary methods for stock picking. For example many fundamental investors use technical for deciding entry and exit points. Many technical investors use fundamentals to limit their universe of possible stock to 'good' companies.

How does financial analysis works?

Financial analysis is carried out with the aim of predicting the future performance of a company. It is based on the theory that the market price of a security tends to move towards its 'real value' or 'intrinsic value.' Thus, the intrinsic value of a security being higher than the security’s market value represents a time to buy. If the value of the security is lower than its market price, investors should sell it.

The steps involved in financial analysis are:

1. Macroeconomic analysis, which involves considering currencies, commodities and indices.

2. Industry sector analysis, which involves the analysis of companies that are a part of the sector.

3. Situational analysis of a company.

4. Financial analysis of the company.

5. Valuation

The valuation of any security is done through the discounted cash flow (DCF) model, which takes into consideration:

1. Dividends received by investors

2. Earnings or cash flows of a company

3. Debt, which is calculated by using the debt to equity ratio and the current ratio (current assets/current liabilities)

1. Financial Analysis Tools These are the most popular tools of fundamental analysis.

Earnings per Share – EPS.

Ankit Jaiswal


Price to Earnings Ratio – P/E. Projected Earnings Growth – PEG. Price to Sales – P/S. Price to Book – P/B Dividend Payout Ratio. Dividend Yield. Book Value. Return on Equity Ratio analysis.

A financial ratio (or accounting ratio) is a relative magnitude of two selected numerical values taken from an enterprise’s financial. Often used in accounting, there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization. Financial ratios may be used by managers within a firm, by current and potential shareholders (owners) of a firm, and by a firm's creditors. Financial analysts use financial ratios to compare the strengths and weaknesses in various companies. If shares in a company are traded in a financial market, the market price of the shares is used in certain financial ratios.

Ratios can be expressed as a decimal value, such as 0.10, or given as an equivalent percent value, such as 10%. Some ratios are usually quoted as percentages, especially ratios that are usually or always less than 1, such as earnings yield, while others are usually quoted as decimal numbers, especially ratios that are usually more than 1, such as P/E ratio; these latter are also called multiples. Given any ratio, one can take its reciprocal; if the ratio was above 1, the reciprocal will be below 1, and conversely. The reciprocal expresses the same information, but may be more understandable: for instance, the earnings yield can be compared with bond yields, while the P/E ratio cannot be: for example, a P/E ratio of 20 corresponds to an earnings yield of 5%.

In general, there are 4 kinds of financial ratios that a financial analyst will use most frequently, these are:

Performance ratios

Working capital ratios

Liquidity ratios

Solvency ratios

These 4 financial ratios allow a good financial analyst to quickly and efficiently address the following questions or concerns:

Performance ratios:

Ankit Jaiswal


What return is the company making on its capital investment? What are its profit margins?

Working capital ratios:

How quickly are debts paid? How many times is inventory turned?

Liquidity ratios:

Can the company continue to pay its liabilities and debts?

Solvency ratios (Longer term):

What is the level of debt in relation to other assets and to equity? Is the level of interest payable out of profits?

Why only financial analysis is important?

Financial analysis is an aspect of the overall business finance function that involves examining historical data to gain information about the current and future financial health of a company. Financial analysis can be applied in a wide variety of situations to give business managers the information they need to make critical decisions. The ability to understand financial data is essential for any business manager. Finance is the language of business. Business goals and objectives are set in financial terms and their outcomes are measured in financial terms. Among the skills required to understand and manage a business is fluency in the language of finance—the ability to read and understand financial data as well as present information in the form of financial reports.

The finance function in business involves evaluating economic trends, setting financial policy, and creating long-range plans for business activities. It also involves applying a system of internal controls for the handling of cash, the recognition of sales, the disbursement of expenses, the valuation of inventory, and the approval of capital expenditures. In addition, the finance function reports on these internal control systems through the preparation of financial statements, such as income statements, balance sheets, and cash flow statements.

Finally, finance involves analyzing the data contained in financial statements in order to provide valuable information for management decisions. In this way, financial analysis is only one part of the overall function of finance, but it is a very important one. A company's accounts and statements contain a great deal of information. Discovering the full meaning contained in the statements is at the heart of financial analysis. Understanding how accounts relate to one another is part of financial

Ankit Jaiswal


analysis. Another part of financial analysis involves using the numerical data contained in company statements to uncover patterns of activity that may not be apparent on the surface.

Objective of the study

To analyze economy by using some economic indicators like GDP, and inflation rate etc for the selected period of 5 years.

To analyze the industry especially private bank industry for the selected period of 5 years.

To carry out financial and non-financial analysis of ICICI bank as a whole for the selected period.

DATA SOURCES

Secondary data has been collected from various sources to analyze the fundamentals. The secondary data has been collected from

Books

ACE equity database

Internet-websites

PERIOD OF STUDY: The period of study for the analysis is five years from 2006-2010.

CHAPTER PLAN:

It is proposed to divide the project into following chapters.

CHAPTER 1: INTRODUCTION TO STUDY

This chapter will be introductory in nature covering the relevance of study.

CHAPTER 2: CONCEPTUAL FRAMEWORK OF FUNDAMENTAL ANALYSIS

Ankit Jaiswal


This chapter will include a comprehensive study of the concept of Fundamental analysis and its tools.

CHAPTER 3: DATA SOURCE AND RESEARCH METHODOLOGY

This chapter will give an inside into source of data and method of undertaking research.

CHAPTER 4: DATA ANALYSIS

This is the chapter of all observations, inferences, analysis and conclusions that will be made out of the data analysis during the course of study.

CHAPTER 5: LIMITATIONS AND SUGGESTIONS

All the limitations and stumbling blocks that will be encountered during the study will be discussed in this chapter along with the future scope and suggestions.

BIBLIOGRAPHY

Ankit Jaiswal


ECONOMIC ANALYSIS(Chapter- 2)

The economic analysis aims at determining if the economic climate is conclusive and is capable of encouraging the growth of business sector, especially the capital market. When the economy expands, most industry groups and companies are expected to benefit and grow. When the economy declines, most sectors and companies usually face survival problems. Hence, to predict share prices, an investor has to spend time exploring the forces operating in overall economy. Exploring the global economy is essential in an international investment setting. The selection of country for investment has to focus itself to examination of a national economic scenario. It is important to predict the direction of the national economy because economic activity affects corporate profits, not necessarily through tax policies but also through foreign policies and administrative procedures.

Tools for Economy Analysis

The most used tools for performing economic analysis are:

Ankit Jaiswal


Gross Domestic Product (GDP) Monetary policy and Liquidity Inflation Interest rates International influences Fiscal policy Influences on long term expectations Influences on short term expectations.

1) Gross Domestic product

GDP is one measure of economic activity. This is the total amount of goods and services produced in a country in a year. It is calculated by adding the market values of all the final goods and services produced in a year.

It is a gross measurement because it includes the total amount of goods and services produced, of which some merely replace goods that have depreciated or have worn out.

It is domestic production because it includes only goods and services produced within the country.

2) Inflation

Inflation can be defined as a trend of rising prices caused by demand exceeding supply. Over time, even a small annual increase in prices of say 1 % will tend to influence the purchasing power of the nation. In others word, if prices rise steadily, after a number of years, consumers will be able to buy only fewer goods and services assuming income level does not change with inflation.

3) Interest rate

Interest rate is the price of credit. It is the percentage fee received or paid by individual or organization when they lend and borrow money. In general, increases in interest rate, whether caused by inflation, government policy, rising risk premium, or other factors, will lead to reduced borrowing and economic slowdown.

4) International influences

Ankit Jaiswal


Rapid growth in overseas market can create surges in demand for exports, leading to growth in export sensitive industries and overall GDP. In contrast, the erection of trade barriers, quotas, currency restrictions can hinder the free flow of currency, goods, and services, and harm the export sector of an economy.

5) Fiscal policy

The fiscal policy of the government involves the collection and spending of revenue. In particular, fiscal policy refers to the efforts by the government to stimulate the economic directly, through spending.

Ankit Jaiswal


Industry Analysis (Chapter-3)

An industry analysis helps inform business managers about the viability of their current strategy and on where to focus a business among its competitors in an industry. The analysis examines factors such as competition and the external business environment, substitute products, management preferences, buyers and suppliers. Industry analysis involves reviewing the economic, political and market factors that influence the way the industry develops. Major factors can include the power wielded by suppliers and buyers, the condition of competitors. And the likelihood of new market entrants.

Data needs for industry analysis:

Ankit Jaiswal


Industry analysis requires a variety of quantitative and qualitative data. Though one single source for all the data needs might not found, industry associates, business publications and the department of economic analysis perform a comprehensive industry analysis. A suggestive list of data categories that are utilized for performing industry analysis is listed below.

Product lines

Product growth

Complementary product

Economics of scale

Suppliers

Labours

Substitute products

Buyers and their behaviour

Product pattern (cyclical, seasonal)

Cost structure

Tools for industry analysis:

Cross-sectional industry

Industry performance over time

Differences in industry risk

Prediction about market behaviour

Competitors over the industry life cycle

THE INDIAN BANKING SECTOR REVIEW:

Ankit Jaiswal


Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors.

For the past three decades India's banking system has several outstanding achievements to its credit. It is no longer confined to only metropolitans or cosmopolitans in India; in fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth process. The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14 major private banks of India. Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days. Now it is simple as instant messaging or dial a pizza. Money has become the order of the day.

Post independence:

In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and it became an institution owned by the Government of India.

In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India."

The Banking Regulation Act also provided that no new bank or branch of an existing bank may be opened without a license from the RBI, and no two banks could have common directors.

Liberalization:

The new policy shook the Banking sector in India completely. Bankers, till this time, were used to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4) of functioning. In the early 1990s the then Narsimha Rao government embarked on a policy of liberalization and gave licenses to a small number of private banks, which came to be known as New Generation tech-savvy banks, which included banks such as Global Trust Bank (the first of such new generation banks to be set up) which later amalgamated with Oriental Bank of Commerce, UTI Bank (now re-named as Axis Bank), ICICI Bank and HDFC Bank.

Ankit Jaiswal


Current situation:

Currently, India has 88 scheduled commercial banks (SCBs) - 28 public sector banks (that is with the Government of India holding a stake), 29 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network of over 67,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 78 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively.

Over the last four years, India’s economy has been on a high growth trajectory, creating unprecedented opportunities for its banking sector. Most banks have enjoyed high growth and their valuations have appreciated significantly during this period. Looking ahead, the most pertinent issue is how well the banking sector is positioned to cater to continued growth. A holistic assessment of the banking sector is possible only by looking at the roles and actions of banks, their core capabilities and their ability to meet systemic objectives, which include increasing shareholder value, fostering financial inclusion, contributing to GDP growth, efficiently managing intermediation cost, and effectively allocating capital and maintaining system stability.

BANKING STRUCTURE IN INDIA:

The banking institutions in the organized sector, commercial banks are the oldest institutions, some them having their genesis in the nineteenth century. Initially they were set up in large numbers, mostly as corporate bodies with shareholding with private individuals. Today 27 banks constitute a

Ankit Jaiswal


strong Public Sector in Indian Commercial Banking. Commercial Banks operating in India fall under different sub categories on the basis of their ownership and control over management;

Public Sector Banks:

Public Sector Banks emerged in India in three stages. First the conversion of the then existing Imperial Bank of India into State Bank of India in 1955, followed by the taking over of the seven associated banks as its subsidiary. Second the nationalization of 14 major commercial banks in 1969and last the nationalization of 6 more commercial Bank in 1980. Thus 27 banks constitute the Public Sector Banks.

New Private Sector Banks:

After the nationalization of the major banks in the private sector in 1969 and 1980, no new bank could be setup in India for about two decades, though there was no legal bar to that effect. The 21 Narasimham Committee on financial sector reforms recommended the establishment of new banks of India. RBI thereafter issued guidelines for setting up of new private sector banks in India in January 1993. These guidelines aim at ensuring that new banks are financially viable and technologically up to date from the start. They have to work in a professional manner, so as to improve the image of commercial banking system and to win the confidence of the public. Eight private sector banks have been established including banks sector by financially institutions like IDBI, ICICI, and UTI etc.

Local Area Banks:

Such Banks can be established as public limited companies in the private sector and can be promoted by individuals, companies, trusts and societies. The minimum paid up capital of such banks would be 5 crores with promoters contribution at least Rs. 2 crores. They are to be set up in district towns and the area of their operations would be limited to a maximum of 3 districts. At present, four local area banks are functional, one each in Punjab, Gujarat, Maharashtra and Andhra Pradesh.

Foreign Banks:

Foreign commercial banks are the branches in India of the joint stock banks incorporated abroad. There number was 38 as on 31.03.2009.

Scheduled Commercial Banks in India:

Ankit Jaiswal


The commercial banking structure in India consists of:

Scheduled Commercial Banks in India

Unscheduled Banks in India

Scheduled Banks in India constitute those banks which have been included in the Second Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only those banks in this schedule which satisfy the criteria laid down vide section42 (6) a) of the Act.

"Scheduled banks in India" means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), but does not include a co-operative bank". "Non-scheduled bank in India" means a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank".

Cooperative Banks:

Besides the commercial banks, there exists in India another set of banking institutions called cooperative credit institutions. These have been made in existence in India since long. They undertake the business of banking both in urban and rural areas on the principle of cooperation. They have served a useful role in spreading the banking habit throughout the country. Yet, there financial position is not sound and a majority of cooperative banks has yet to achieve financial viability on a sustainable basis.

The cooperative banks have been set up under various Cooperative Societies Acts enacted by State Governments. Hence the State Governments regulate these banks. In 1966, need was felt to regulate their activities to ensure their soundness and to protect the interests of depositors.

According to the RBI in March 2009, number of all Scheduled Commercial Banks (SCBs) was 171 of which, 86 were Regional Rural Banks and the number of Non-Scheduled Commercial Banks including Local Area Banks stood at 5. Taking into account all banks in India, there are overall 56,640 branches or offices, 893,356 employees and 27,088 ATMs. Public sector banks made up a large chunk of the infrastructure, with 87.7 per cent of all offices, 82 per cent of staff and 60.3 per cent of all automated teller machines (ATMs).

SWOT ANALYSIS OF BANKING SECTOR

Ankit Jaiswal


STRENGTH:

Indian banks have compared favourably on growth, asset quality and profitability with other regional banks over the last few years. The banking index has grown at a compounded annual rate of over 51 per cent since April 2001 as compared to a 27 per cent growth in the market index for the same period. Policy makers have made some notable changes in policy and regulation to help strengthen the sector. These changes include strengthening prudential norms, enhancing the payments system and integrating regulations between commercial and co-operative banks. Bank lending has been a significant driver of GDP growth and employment.

Extensive reach:

The vast networking & growing number of branches & ATMs. Indian banking system has reached even to the remote corners of the country. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region.

WEAKNESS:

Public Sector Banks need to fundamentally strengthen institutional skill levels especially in sales and marketing, service operations, risk management and the overall organizational performance ethic & strengthen human capital.

Old private sector banks also have the need to fundamentally strengthen skill levels.

The cost of intermediation remains high and bank penetration is limited to only a few customer segments and geographies.

Structural weaknesses such as a fragmented industry structure, restrictions on capital availability and deployment, lack of institutional support infrastructure, restrictive labour laws, weak corporate governance and ineffective regulations beyond Scheduled Commercial Banks (SCBs), unless industry utilities and service bureaus.

Refusal to dilute stake in PSU banks:

The government has refused to dilute its stake in PSU banks below 51% thus choking the headroom available to these banks for raining equity capital.

Impediments in sectoral reforms:

Ankit Jaiswal


Opposition from Left and resultant cautious approach from the North Block in terms of approving merger of PSU banks may hamper their growth prospects in the medium term.

OPPORTUNITY:

The market is seeing discontinuous growth driven by new products and services that include opportunities in credit cards, consumer finance and wealth management on the retail side, and in fee-based income and investment banking on the wholesale banking side. These require new skills in sales & marketing, credit and operations.

With increased interest in India, competition from foreign banks will only intensify.

Given the demographic shifts resulting from changes in age profile and household income, consumers will increasingly demand enhanced institutional capabilities and service levels from banks.

New private banks could reach the next level of their growth in the Indian banking sector by continuing to innovate and develop differentiated business models to profitably serve segments like the rural/low income and affluent/HNI segments; actively adopting acquisitions as a means to grow and reaching the next level of performance in their service platforms. Attracting, developing and retaining more leadership capacity.

Foreign banks committed to making a play in India will need to adopt alternative approaches to win the “race for the customer” and build a value-creating customer franchise in advance of regulations potentially opening up post 2009.

Reach in rural India for the private sector and foreign banks.

Liberalization of ECB norms:

The government also liberalised the ECB norms to permit financial sector entities engaged in infrastructure funding to raise ECBs. This enabled banks and financial institutions, which were earlier not permitted to raise such funds, explore this route for raising cheaper funds in the overseas markets.

Hybrid capital:

In an attempt to relieve banks of their capital crunch, the RBI has allowed them to raise perpetual bonds and other hybrid capital securities to shore up their capital. If the new instruments find takers, it would help PSU banks, left with little headroom for raising equity.

Ankit Jaiswal


THREATS:

Threat of stability of the system: failure of some weak banks has often threatened the stability of the system. Rise in inflation figures which would lead to increase in interest rates. Increase in the number of foreign players would pose a threat to the Public Sector Bank as well as the private players.

Key players

Andhra Bank State Bank of India

Allahabad Bank Vijaya Bank

Punjab National Bank HDFC Bank

UTI Bank ICICI Bank

Kotak Mahindra Bank Centurion Bank of Punjab

Citibank Standard Chartered Bank

HSBC Bank State Bank of Mysore

American Express Bank ABN AMRO

Ankit Jaiswal


Company analysis (Chapter-4)

Ankit Jaiswal


Analysis of the company consists of measuring its performance and ascertaining the cause of this performance. When some companies have done well irrespective of economic or industry failure, this implies that there are certain unique characteristics for this particular company that had made it a success. The identification of these characteristics, whether quantitative or qualitative, is referred to as company analysis. Quantitative indicators of company analysis are the financial indicators and operational efficiency indicators. Financial indicators are the profitability indicators and financial position indicators analyzed through the income and balance sheet statements, respectively, of the company. Operational indicators are capacity utilization and cost versus sales efficiency of the company, which includes the marketing edge of the company.

Besides the quantitative factors, qualitative factors of a company also influence investment decision process of an institutional investor. The focus of the qualitative data, as revealed in the annual report- as in the director’s speech. Rather than on quantitative data.

Tools for company analysis:

Company analysis involves choice of investment opportunities within a specific industry that comprises of several individual companies. The choice of an investible company broadly depends on the expectations about its future performance in general. Here, the business cycle that a company is undergoing is a very useful tool to assess the future performance from the company.

Company analysis ought to examine the levels of competition, demand, and other forces that affect the company’s ability to be profitable. Of these factors, understanding the competitive environment is most important.

A business faces five forces of competition (porter’s model) namely, seller’s competition, buyer’s competition, competition from new entrants, exit competition. Competitive forces include the power of those who sell the business, those who buy the business; those who buy from the business, how easily new businesses can enter the industry, how costly it is to exit, and finally, the competition from those who already in the industry. How well a company deals with each of these forces will determine whether the company earns above or below average profit. Each of these forces is discussed below.

1. Porter model: Porter's Five Forces is a framework for industry analysis and business strategy development formed by Michael E. Porter of Harvard Business School in 1979. It draws upon Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition", in which available profits for all firms are driven down to zero.

Ankit Jaiswal


Three of Porter's five forces refer to competition from external sources. The remainder are internal threats.

Porter referred to these forces as the micro environment, to contrast it with the more general term macro environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally, requires a business unit to re-assess the marketplace given the overall change in industry information. The overall industry attractiveness does not imply that every firm in the industry will return the same profitability. Firms are able to apply their core competencies, business model or network to achieve a profit above the industry average. A clear example of this is the airline industry. As an industry, profitability is low and yet individual companies, by applying unique business models, have been able to make a return in excess of the industry average.

Porter's five forces include - three forces from 'horizontal' competition: threat of substitute products, the threat of established rivals, and the threat of new entrants; and two forces from 'vertical' competition: the bargaining power of suppliers and the bargaining power of customers.

This five forces analysis is just one part of the complete Porter strategic models. The other elements are the value chain and the generic strategies

Ankit Jaiswal


(a) The threat of the entry of new competitors :

Profitable markets that yield high returns will attract new firms. This results in many new entrants, which eventually will decrease profitability for all firms in the industry. Unless the entry of new firms can be blocked by incumbents, the abnormal profit rate will fall towards zero (perfect competition).

The existence of barriers to entry (patents, rights, etc.) The most attractive segment is one in which entry barriers are high and exit barriers are low. Few new firms can enter and non-performing firms can exit easily.

Economies of product differences Brand equity Switching costs or sunk costs Capital requirements

Access to distribution Customer loyalty to established brands Absolute cost Industry profitability; the more profitable the industry the more attractive it will be to new

competitors

(b) The threat of substitute products or services:

The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives:

Buyer propensity to substitute Relative price performance of substitute Buyer switching costs Perceived level of product differentiation Number of substitute products available in the market Ease of substitution. Information-based products are more prone to substitution, as online

product can easily replace material product. Substandard product Quality depreciation

Ankit Jaiswal


(c) The bargaining power of customers (buyers):

The bargaining power of customers is also described as the market of outputs: the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes.

Buyer concentration to firm concentration ratio Degree of dependency upon existing channels of distribution Bargaining leverage, particularly in industries with high fixed costs Buyer volume Buyer switching costs relative to firm switching costs Buyer information availability Ability to backward integrate Availability of existing substitute products Buyer price sensitivity Differential advantage (uniqueness) of industry products RFM Analysis

(d) The bargaining power of suppliers:

The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw materials, components, labour, and services (such as expertise) to the firm can be a source of power over the firm, when there are few substitutes. Suppliers may refuse to work with the firm, or, e.g., charge excessively high prices for unique resources.

Supplier switching costs relative to firm switching costs Degree of differentiation of inputs Impact of inputs on cost or differentiation Presence of substitute inputs Strength of distribution channel Supplier concentration to firm concentration ratio Employee solidarity (e.g. labour unions) Supplier competition - ability to forward vertically integrate and cut out the BUYER

(e) The intensity of competitive rivalry

For most industries, the intensity of competitive rivalry is the major determinant of the competitiveness of the industry.

Sustainable competitive advantage through innovation

Ankit Jaiswal


Competition between online and offline companies; click-and-mortar -v- slags on a bridge Level of advertising expense Powerful competitive strategy The visibility of proprietary items on the Web used by a company which can intensify

competitive pressures on their rivals.

How will competition react to certain behaviour by another firm? Competitive rivalry is likely to be based on dimensions such as price, quality, and innovation. Technological advances protect companies from competition. This applies to products and services. Companies that are successful with introducing new technology are able to charge higher prices and achieve higher profits, until competitors imitate them. Examples of recent technology advantage in have been mp3 players and mobile telephones. Vertical integration is a strategy to reduce a business' own cost and thereby intensify pressure on its rival.

2. The financial statements of the company:

Records that outline the financial activities of a business, an individual or any other entity. Financial statements are meant to present the financial information of the entity in question as clearly and concisely as possible for both the entity and for readers. Financial statements for businesses usually include: income statements, balance sheet, statements of retained earnings and cash flows, as well as other possible statements

3. Ratio analysis:

A tool used by individuals to conduct a quantitative analysis of information in a company's financial statements. Ratios are calculated from current year numbers and are then compared to previous years, other companies, the industry, or even the economy to judge the performance of the company. Ratio analysis is predominately used by proponents of fundamental analysis. There are many ratios that can be calculated +from the financial statements pertaining to a company's performance, activity, financing and liquidity. Some common ratios include the price-earnings ratio, debt-equity ratio, earnings per share, asset turnover and working capital.

4. ROA:Return on assets, which, offering a different take on management's effectiveness reveals how much profit a company earns for every dollar of its assets. Assets include things like cash in the bank, accounts receivable, property, equipment, inventory and furniture. ROA is calculated like this:

Ankit Jaiswal


Annual Net Income Total Assets

5. ROI:

Return on Investment is one of several commonly used approaches for evaluating the financial consequences of business investments, decisions, or actions. ROI analysis compares the magnitude and timing of investment gains directly with the magnitude and timing of investment costs. A high ROI means that investment gains compare favourably to investment costs

GAINS-INVESTMENT COSTS INVESTMENT COSTS

6. ROE:

Of all the fundamental ratios that investors look at, one of the most important is return on equity. It's a basic test of how effectively a company's management uses investors' money - ROE shows whether management is growing the company's value at an acceptable rate. ROE is calculated as:

Annual Net Income Average Shareholders' Equity

7. EPS:

The portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serve as an indicator of a company's profitability.

Calculated as:

8. DPS:

The sum of declared dividends for every ordinary share issued. Dividend per share (DPS) is the total dividends paid out over an entire year (including interim dividends but not including special dividends) divided by the number of outstanding ordinary shares issued. DPS can be calculated by using the following formula:

Ankit Jaiswal


D - Sum of dividends over a period (usually 1 year) SD - Special, one time dividends S - Shares outstanding for the period

9. P/O RATIO:

The amount of earnings paid out in dividends to shareholders. Investors can use the payout ratio to determine what companies are doing with their earnings.

Calculated

10.DIVIDEND YEILD:

Financial ratio that shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock. Dividend yield is calculated as follows:

Ankit Jaiswal


RESEARCH METHODOLOGY (Chapter-5)

Research methodology:

Ankit Jaiswal


Research methodology is a way to systematically solve the research problem. The research methodology using for find out the solution of the research problem is analytical research methodology and some extend descriptive research methodology.

Secondary Data

The sources of secondary data for solve the problems are:-

Company Annual Report

ACE equity database

Internet-websites

Period of study:

The period of the study is 5 years i.e. (2006-2010). Company 5 years data has been taken for the analysis.

Tools:

These are the most popular tools of fundamental analysis. They focus on earnings, growth, and value in the market.

Earnings per Share – EPS

Price to Earnings Ratio – P/E

Projected Earning Growth – PEG

Price to Sales – P/S

Price to Book – P/B

Dividend Payout Ratio

Dividend Yield

Book Value Ratio Analysis

Liquid ratio

Ankit Jaiswal


Turnover ratio

Valuation ratio

Techniques

The technique used in the analysis of the company is excel sheets, graphs and tables of financial statement for example balance sheet, profit loss a/c, cash flow statement, dividend per share, ratio analysis, valuation ratio etc.

Ankit Jaiswal


DATA ANALYSIS (Chapter-6)

The process of evaluating data using analytical and logical reasoning to examine each component of the data provided. This form of analysis is just one of the many steps that must be completed when conducting a research experiment. Data from various sources is gathered, reviewed, and then

Ankit Jaiswal


analyzed to form some sort of finding or conclusion. There are a variety of specific data analysis method, some of which include data mining, text analytics, business intelligence, and data visualizations.

Data can be of several types:

Quantitative data is a number Qualitative data is a pass/fail or the presence of a characteristic

Quantitative data is data measured or identified on a numerical scale. Numerical data can be analyzed using statistical methods, and results can be displayed using tables, charts, histograms and graphs.

The term qualitative data is used to describe certain types of information. This is almost the converse of quantitative data, in which items are more precisely described as data in terms of quantity and in which numerical values are used. However, data originally obtained as qualitative information about individual items may give rise to quantitative data if they are summarized by means of counts.

Qualitative data described items in terms of some quality or categorization that may be 'informal' or may use relatively ill-defined characteristics such as warmth and flavour. However, qualitative data can include well-defined aspects such as gender, nationality or commodity type.

Ankit Jaiswal


ECONOMY ANALYSIS

Analysis of Indian Economy:

India's economy expanded 8.8% in the second quarter from a year earlier, compared to an 8.6% on-year expansion in the first, lifted by robust activity in manufacturing. Agricultural output along with

Ankit Jaiswal


strong development in the Industrial, Mining and banking sector have helped to boost the Indian economy. Agricultural output raised 2.8 per cent y-o-y thanks to improved harvests.

Industrial production increased by 12% and in the mining sector by 9%. According to 2010 data the shares of banking sector value add in GDP has been increased 7.7% from 2.5%.The forecasters have assigned highest 29.6 per cent chance that it will fall in 6.0-6.9 per cent in 2010- 11. They raised their forecasts slightly for agriculture growth to 4.0 percent from 3.5 percent, for industry to 9.0 percent from 8.1 percent and for services it was steady at 9.0 percent .

The survey showed the economists expect GDP growth in the April-June quarter to be 8.1 percent up from 7.9 percent in the last survey. For the July-September quarter, GDP growth is placed at 8.3 percent. The Reserve Bank of India has stated that it had seen an annual growth of 8.5% steadily. The main priority of the Reserve Bank is to curb the ongoing inflation, which peaked at 11% last month. Interest rates have been increased by the banks to contain the inflation, but it could slow down the growth of the Indian economy in the coming months. But even thought there has been a rise in the interest rates there hasn’t been much change in the distribution of loans, the Indian customer is hardly affected with the hiked interest rates.

Almost every sector of the economy is poised to grow faster and a 9 per cent growth in 2010-11 is not difficult if domestic policies and external factors do not come in the way. Expert expects that India s economy to grow by 8.1% in 2010 based on a steep gain in industrial output and resurgent private consumption investment and exports. Were these scenarios to continue growth would lift further to 8.3% in 2011 said Chief Economist. They also expect the Reserve Bank of India (RBI) to continue gradually raising interest rates and to keep a tight leash on liquidity to tame inflation. Recently RBI changed the repo rate from 5.75% to 6% and reverse repo rate 4.5% to 5%. CRR rate they keeping unchanged. This six time I a year they revise key parameter to control inflation.

INDIA GDP SURGES 8.9% IN THE THIRD QUARTER:

India's domestically-powered economy grew more than expected in the September quarter, defying weakness elsewhere and putting pressure on the Reserve Bank of India (RBI) to tighten monetary policy although a rate increase next month still looks unlikely. Annual gross domestic product grew 8.9 percent in the September quarter -- matching the revised figure for the previous quarter. Consumer price inflation eased to an annual 9.7 percent in October from 9.82 percent the previous month, data showed on Tuesday. Wholesale price inflation, which is more closely watched as it covers a higher number of products, eased to 8.58 percent in October from 8.62 percent a month earlier. Investment growth slowed on an annualized basis to 11.1 percent from 19 percent in the previous quarter, while annualized private consumption accelerated to 9.3 percent from 7.8 percent in the previous quarter, pointing to inflationary risks. The services sector, which accounts for over 50 percent of GDP, grew 9.8 percent in the September quarter, higher than 9.3 percent in the previous quarter. Signs of easing inflation, a fragile global economy and weaker industrial output in

Ankit Jaiswal


September were likely to forestall any rise in rates in the near-term, some analysts said. "Unless the full year growth looks likely to cross 9 percent, the central bank is unlikely to get aggressive again in raising rates," said Anjali Varma, economist at MF Global in Mumbai. Industrial output growth -- a key indicator of growth momentum -- in Asia's third-largest economy slowed unexpectedly in September to 4.4 percent from a year earlier, down from the previous month's upwardly revised 6.92 percent growth.

Year Mar Jun Sep Dec

2010 8.60 8.90 8.90 -

2009 5.80 6.00 8.60 6.50

2008 8.50 7.80 7.50 6.10

Healthy economic growth, especially since 2005, has also facilitated impressive growth in the commercial banking sector (Chart 5.2). Though the growth rate of the consolidated balance sheet of commercial banks moderated in 2008-09 at 21 per cent as compared to 25 per cent in 2007-08, the sector continued to grow at a rate higher than that of the nominal GDP (at current market prices). Accordingly, the ratio of commercial banking assets to GDP increased to 98.5 per cent at end- March 2009 from 91.6 per cent as at end-March 2008.

Ankit Jaiswal


With the impact of the financial crisis gradually affecting the global economy, credit off-take slowed down further and the year on year growth in bank credit during the first half year of 2009-10 stood at 12.3 per cent. During the same period, investments grew by 34.5 per cent (as compared to 6.3 per cent as on September 2008). However, there are early signs of credit growth recovering in line with the economy, on the back of fiscal and monetary measures. This trend is clearly shown by the movements in incremental credit-deposit (CD) and investment-deposit (ID) ratio in recent periods (Chart 5.5).

Ankit Jaiswal


INDIA INFLATION RATE:

The inflation rate in India was last reported at 9.47 percent in December of 2010. From 1969 until 2010, the average inflation rate in India was 7.99 percent reaching an historical high of 34.68 percent in September of 1974 and a record low of -11.31 percent in May of 1976. Inflation rate refers to a general rise in prices measured against a standard level of purchasing power. The most well known measures of Inflation are the CPI which measures consumer prices, and the GDP deflator, which measures inflation in the whole of the domestic economy. This page includes: India Inflation Rate chart, historical data and news.

Ankit Jaiswal


Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2010 16.22 14.86 14.86 13.33 13.91 13.73 11.25 9.88 9.82 9.70 8.33 9.47

2009 10.45 9.63 8.03 8.70 8.63 9.29 11.89 11.72 11.64 11.49 13.51 14.97

2008 5.51 5.47 7.87 7.81 7.75 7.69 8.33 9.02 9.77 10.45 10.45 9.70

India Interest Rate:

The benchmark interest rate (reverse repo) in India was last reported at 5.5 percent. In India, interest rate decisions are taken by the Reserve Bank of India's Central Board of Directors. The official interest rate is the benchmark repurchase rate. From 2000 until 2010, India's average interest rate was 5.82 percent reaching an historical high of 14.50 percent in August of 2000 and a record low of 3.25 percent in April of 2009.

Ankit Jaiswal


Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2011 5.50

2010 3.25 3.25 3.38 3.63 3.75 3.75 4.08 4.50 5.00 5.25 5.25

2009 4.50 4.00 3.75 3.38 3.25 3.25 3.25 3.25 3.25 3.25 3.25 3.25

2008 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 5.50

Ankit Jaiswal


INDUSTRY ANALYSIS

The last decade has seen many positive developments in the Indian banking sector. The policy makers, which comprise the Reserve Bank of India (RBI), Ministry of Finance and related

Ankit Jaiswal


government and financial sector regulatory entities, have made several notable efforts to Improve regulation in the sector. The sector now compares favourably with banking sectors in the region on metrics like growth, profitability and non-performing assets (NPAs). A few banks have established an outstanding track record of innovation, growth and value creation. This is Reflected in their market valuation. However, improved regulations, innovation, growth and value creation in the sector remain limited to a small part of it. The cost of banking intermediation in India is higher and bank penetration is far lower than in other markets. India’s banking industry must strengthen itself significantly if it has to support the modern and vibrant economy which India aspires to be. While the onus for this change lies mainly with bank managements, an enabling policy and regulatory framework will also be critical to their success. The failure to respond to changing market realities has stunted the development of the financial sector in many developing countries. A weak banking structure has been unable to fuel continued growth, which has harmed the long-term health of their economies. In this “white paper”, we emphasize the need to act both decisively and quickly to build an enabling, rather than a limiting, banking sector in India.

OPPORTUNITIES AND CHALLENGES FOR PLAYERS:

The bar for what it means to be a successful player in the sector has been raised. Four challenges must be addressed before success can be achieved. First, the market is seeing discontinuous growth driven by new products and services that include opportunities in credit cards, consumer finance and wealth management on the retail side, and in fee-based income and investment banking on the wholesale banking side. These require new skills in sales & marketing, credit and operations. Second, banks will no longer enjoy windfall treasury gains that the decade-long secular decline in interest rates provided. This will expose the weaker banks. Third, with increased interest in India, competition from foreign banks will only intensify. Fourth, given the demographic shifts resulting from changes in age profile and household income, consumers will increasingly demand enhanced institutional capabilities and service levels from banks.

Growth in the Indian banking industry:

The growth in the Indian Banking Industry has been more qualitative than quantitative and it is expected to remain the same in the coming years. Based on the projections made in the "India Vision 2020" prepared by the Planning Commission and the Draft 10th Plan, the report forecasts that the pace of expansion in the balance-sheets of banks is likely to decelerate. The total assets of all scheduled commercial banks by end-March 2010 are estimated at Rs 40, 90,000 crores that will comprise about 65 per cent of GDP at current market prices as compared to 67 per cent in 2002-03. Bank assets are expected to grow at an annual composite rate of 13.4 per cent during the rest of the decade as against the growth rate of 16.7 per cent that existed between 1994-95 and 2002-03. It is expected that there will be large additions to the capital base and reserves on the liability side.

Ankit Jaiswal


Peer Group Comparison (Standalone) (Rs. In Crore)

Company Name

Year End

Net Sales

PBIDT PAT Adj. EPS(Rs)

PBIDTM%

PATM%

ROCE%

ROE%

Indusland Bank

201003

2706.99 703.89 350.31 8.53 26 12.94 7.53 19.51

ICICI Bank

201003

25706.93

9732.18

4024.98

36.1 37.86 15.66 6.18 7.96

Kotak Bank

201003

3255.62 1297 561.11 8.06 39.84 17.23 6.68 13.52

HDFC Bank

201003

16172.9 6429.73

2948.7 64.42 39.76 18.23 5.95 16.31

Axis Bank

201003

11638.02

5240.56

2514.53

62.06 45.03 21.61 6.39 19.15

Ankit Jaiswal


Interpretation:

Here we can see that ICICI has highest net sales with 25706.93 cr. And PAT is also highest among the peer group with 4027.93 cr. That means ICICI is most favourable company to invest in terms of profit.

Bank – Private Industry Ratios:

Description 2010 2009 2008 2007 2006 No Of Companies

74 89 83 71 68

Margin Ratios Yield on Advances

13.31 14.23 12.87 12.04 11.36

Yield on Investments

6.22 7.44 7.21 6.37 6.41

Cost of 5.02 6.09 5.87 5.1 4.27

Ankit Jaiswal


Liabilities NIM 5.63 5.38 4.69 4.38 4.92 Interest Spread 8.28 8.14 7 6.94 7.1 Performance Ratios ROA (%) 1.17 1.28 1.34 1.19 1.18 ROE (%) 10.65 11.07 12.02 14.45 13.36 ROCE (%) 5.96 7.11 7.04 6.4 5.56 Efficiency Ratios Cost Income Ratio

42.89 42.45 46.35 50.66 51.38

Core Cost Income Ratio

44.25 45.19 48.74 51.78 50.8

Operating Costs to Assets

7.46 7.55 7.49 7.82 8.2

Growth Ratio Core Operating Income Growth

9.09 30.55 44.08 32.44 107.35

Operating Profit Growth

2.45 20.79 60.6 37.8 127.56

Net Profit Growth

3.73 16.84 55.86 37.48 102.66

Advances Growth

8.99 14.77 46.44 38.42 86.72

Liquidity Ratios Loans/Deposits(x)

0.2 0.26 0.22 0.18 0.19

Cash/Deposits(x)

0.09 0.07 0.1 0.07 0.06

Investment/Deposits(x)

0.47 0.44 0.43 0.41 0.43

Inc Loan/Deposit (%)

19.63 25.72 22.28 17.58 18.73

Ankit Jaiswal


Interpretation:

ROE:

ROE examines profitably from the perspective of equity investors by relating profits available for the equity share holders with the book value of equity investments. The return from the point of view of equity shareholders may be calculated by comparing the net profit less preference dividend with there total contribution to the firm. Over the years ROE of the industry have declined

ROA:

ROA measures a profitability of the firm in terms of assets employed in the firm. ROE is calculated by establishing the relationship between the profits and the assets employed to earn that profit. ROA shows as to how much is the profit earn by the firm per rupee of assets used. Here industry ROA is almost stable.

Ankit Jaiswal


NET PROFIT:

The NP ratio establishes the relationship between the net profit (after tax) of the firm and the net sales. Its measures the efficiency of the management in generating additional revenue over and above the total cost of operations.

Net profit ratio has decreased over the years which mean that the overall profitability of the industry has fallen down.

Bank – Private Industry profit & Loss A/C:

DESCRIPTION Latest 2010 2009 2008 2007 2006No of Companies 98 74 89 83 71 68Interest Earned 135486.15 113327.71 136806.93 107590.8 71311.52 50355.01Other Income 35136.24 29599.54 35299.77 28016.66 20011.95 14051.36Total Income 170622.38 142927.25 172106.71 135607.47 91323.48 64406.36

Interest Expended 78145.22 65332.36 84711.83 68370.19 42996.95 28555.1Operating Expenses

38681.01 33282.45 36938.65 31161.41 24155.71 18421.37

Provisions and Contingencies

19010.41 16440.68 16710.7 8910.47 6848.84 4792.74

Profit Before Tax 34785.74 27871.76 33745.53 27165.39 17321.97 12637.15Taxes 12304.43 9657.77 12149.69 8925.72 5498.1 3904.43Total 148141.07 124713.26 150510.87 117367.79 79499.61 55673.64

Profit After Tax 22481.31 18213.99 21595.84 18239.68 11823.87 8732.73Extra items -22.08 -19.49 -30.5 -1.46 133.84 62.51

Profit brought forward

15392.55 14902.92 11246.87 5710.75 3893.12 1766.31

Adjustments to PAT

24.84 -23.31 15.64 140.12 182.71 85.56

Total Profit & Loss

37898.7 33093.6 32858.35 24090.55 15899.7 10584.6

IV. APPROPRIATIO

NS

37886.23 33074.11 32827.85 24089.09 16043.16 10647.11

Ankit Jaiswal


Interpretation:

Private bank industry profit & loss account shows that banking industry is having a large profit you and growing rapidly. This is a good sign for the investors who want to invest in the banking industry.

Ankit Jaiswal


Competition:

Last Price Market Cap. (Rs. Cr.)

Net Interest Income

Net Interest Income Net Profit

Total Assets

ICICI Bank 1,105.45 127,322.68 25,706.93 4,024.98 363,399.71HDFC Bank 2,350.05 109,330.36 19,928.21 3,926.39 222,458.56Axis Bank 1,333.45 54,744.24 15,154.81 3,388.49 180,647.87

Kotak Mahindra

458.00 33,748.71 3,255.62 561.11 37,436.31

IndusInd Bank 267.00 12,418.17 3,589.36 577.32 35,369.52YES BANK 316.25 10,978.53 4,041.74 727.13 36,382.50Federal Bank 436.05 7,454.92 3,673.23 464.55 43,675.61Karur Vysya 417.00 4,449.13 1,757.94 336.03 21,993.49ING Vysya

Bank353.15 4,272.65 2,694.06 318.65 33,880.24

JK Bank 823.50 3,992.15 3,056.88 512.38 42,546.80

Ankit Jaiswal


COMPANY ANALYSIS

ICICI BANK LTD:

Ankit Jaiswal


ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI‟s shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank’s acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002.

ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group’s universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity’s access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI‟s strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries.

In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmadabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group’s financing and banking operations, both wholesale and retail, have been integrated in a single entity.

ICICI Bank is India’s second-largest bank with total assets of Rs.3,793.01 billion (US$ 75 billion) at March 31, 2009 and profit after tax Rs.37.58 billion for the year ended March 31, 2009. The Bank has a network of 1,454 branches and about 4,721 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail

Ankit Jaiswal


customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management.

The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Their UK subsidiary has established branches in Belgium and Germany.

SNAPSHORT OF ICICI BANK LTD:

Company Details:

Industry Bank – Private

Chairman K V Kamath

Managing Director Chanda D Kochhar

Company Secretary Sandeep Batra

ISIN INE090A01013

Bloomberg Code ICICIBC IN

Reuters Code ICBK.BO

Company Address:

Registered Office Landmark, Race Course Circle,Vadodara,390007,Gujarat

Phone 91-0265-6617200/3983200

Fax 91-0265-2339926

Website www.icicibank.com

Email [email protected]

Price Information:

Ankit Jaiswal


Latest Date 09-Mar-11 Latest Price (Rs) 1033.55 Previous Close (Rs) 1020.85 1 Day Price Vat% 1.24 1 Year Price Vat% 11.76 52 Week High (Rs) 1277 52 Week Low (Rs) 803.3 Beta 1.4927 Face Value (Rs) 10 Industry PE 20.04

PRICE V/S SENSEX CHART Period: From 10/03/2010 to 09/03/2011

Company Size (Standalone) :

Market Cap(Rs Crore) 118741.77

Ankit Jaiswal


EV (Rs Crore) 185491.05

Latest no. of shares 1148873022

Share holding pattern as on 201012

Promoter No of shares 0

Promoter % 0

FII No of Shares 451680100

FII % 39.23

Total No of Shares 1151422189

Free Float % 100

Financial Highlights (Standalone) (Rs. In Crore)

Description 201003 200903 200803 200703 200603

Equity Paid Up

1114.81 1113.21 1112.6 899.27 889.8

Reserve 50503.48 48419.73 45357.53 23413.92 21316.16

Deposits 202016.6 218347.83 244431.05 230510.19 165083.17

Gross Block 7114.12 7443.71 7036 6298.56 5968.57

Interest Earned

25706.93 31092.55 30788.34 21995.59 14306.13

Operating Profit

9732.18 8925.23 7960.68 5874.41 3888.42

PAT 4024.98 3758.13 4157.73 3110.22 2540.08

Dividend % 120 110 110 100 85

Adj. EPS(Rs) 36.1 33.76 37.37 34.59 28.55

Adj. Book Value(Rs)

463.02 444.95 417.67 270.37 249.56

Key Market Ratio (Standalone)

Ankit Jaiswal


Key Market Ratio (Standalone) :

Latest EPS (Rs) 40.95 Latest CEPS (Rs) 45.11 Price/TTM CEPS(x) 22.91 TTM PE (x) 25.24 Price/BV(x) 2.14 EV/TTM EBIDTA(x) 20.29 EV/TTM Sales(x) 7.53 Dividend Yield% 1.16 Mcap/TTM Sales(x) 4.82 Latest Book Value (Rs) 482.44

Quarter on Quarter Standalone)

(Rs. In Crore)

Particulars 201012 201009 Q on Q Var% 200912 Y on Y Var% Interest Earned

6695.96 6309.1 6.13 6089.57 9.96

Total Expenditure

1717.92 1570.37 9.4 1362.39 26.1

Operating Profit

2342.61 2211.94 5.91 2368.84 -1.11

PAT 1437.02 1236.27 16.24 1101.06 30.51

PBIDTM% 34.99 35.06 -0.2 38.9 -10.05

PATM% 21.46 19.6 9.49 18.08 18.69

Adj. EPS(Rs) 12.48 10.74 16.2 9.88 26.32

Ankit Jaiswal


Interpretation

BETA:

A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), a model that calculates the expected return of an asset based on its beta and expected market returns.

Here beta is more than 1 (1.4927) beta of greater than 1 indicates that the security’s price will be more volatile than the market. Stock’s beta is 1.4927; it’s theoretically 49.27% more volatile than the market.

EPS:

EPS indicates the profitability of a company. Earnings per Share are the single most popular variable in dictating a share’s price. Earnings per Share are the Net Income (profit) of a company

Ankit Jaiswal


divided by the number of outstanding shares. And here EPS of the company increasing. This shows that company is earning profit.

P/E:

Price-to-earnings ratio (P/E) is probably the most widely used – and thus misused investing metric. It’s easy to calculate, which explains its popularity. The most common way to calculate:

P/E = share price divided by earnings per share

DPS:

The sum of declared dividends for every ordinary share issued. Dividend per share (DPS) is the total dividends paid out over an entire year (including interim dividends but not including special dividends) divided by the number of outstanding ordinary shares issued. Dividends are a form of profit distribution to the shareholder. Having a growing dividend per share can be a sign that the company’s management believes that the growth can be sustained. Here dividend is highest in last 5 years; it indicates that company is growing YOY.

ICICI is having highest market capital, net profit and assets value as compared to competitors this indicates that ICICI is most favourable company for investors.

Ankit Jaiswal


ICICI BANK LTD BALANCE SHEET:

DESCRIPTION Mar-10 Mar-09 Mar-08 Mar-07 Mar-06

SOURCES OF FUNDS: Share Capital 1114.89 1113.29 1462.68 1249.34 1239.83 Share Warrants & Outstanding

0.00 0.00 0.00 0.00 0.00

Total Reserves 50503.48 48419.73 45357.53 23413.92 21316.16 Deposits 202016.60 218347.82 244431.05 230510.19 165083.17 Borrowings 94263.57 93155.45 65648.43 51256.03 38521.91 Other Liabilities & Provisions

15501.18 18264.66 42895.38 38228.64 25227.88

Total Liabilities 363399.72 379300.96 399795.08 344658.11 251388.95

APPLICATION OF FUNDS : Cash and balance with Reserve Bank of India

27514.29 17536.33 29377.53 18706.88 8934.37

Balances with banks and money at call

11359.40 12430.23 8663.60 18414.45 8105.85

Investments 120892.80 103058.31 111454.34 91257.84 71547.39 Advances 181205.60 218310.85 225616.08 195865.60 146163.11 Gross block 7114.12 7443.71 7036.00 6298.56 5968.57 Less: Accumulated Depreciation

3901.43 3642.09 2927.11 2375.14 1987.85

Less: Impairment of Assets Net Block 3212.69 3801.62 4108.90 3923.42 3980.71 Lease Adjustment Capital Work in Progress

Other Assets 19214.93 24163.62 20574.63 16489.92 12657.51 Total Assets 363399.72 379300.96 399795.08 344658.11 251388.95 Contingent Liabilities

727084.06 834683.00 1211082.33 562959.91 395033.67

Bills for collection

6474.95 6000.44 4278.28 4046.56 4338.46

Book Value 463.02 444.95 417.67 270.37 249.56 Adjusted Book Value

463.02 444.95 417.67 270.37 249.56

Ankit Jaiswal


Ankit Jaiswal


ICICI BANK LTD PROFIT AND LOSS A/C:

DESCRIPTION

Mar-10 Mar-09 Mar-08 Mar-07 Mar-06

No of Months 12.00 12.00 12.00 12.00 12.00

I. INCOME

Interest Earned

25706.93 31092.55 30788.34 21995.59 14306.13

Other Income 7477.65 7603.73 8810.76 6927.87 4180.89

Total Income 33184.58 38696.28 39599.11 28923.46 18487.02

II. EXPENDITURE

Interest Expended

17592.57 22725.93 23484.24 16358.50 9597.45

Operating Expenses

5859.83 7045.11 8154.18 6690.56 5001.15

Provisions and Contingencies

4386.86 3808.26 2904.58 2226.37 791.81

Profit Before Tax

5345.32 5116.97 5056.10 3648.04 3096.61

Taxes 1320.34 1358.84 898.37 537.82 556.53

Total 29159.60 34938.14 35441.38 25813.24 15946.94

III. PROFIT AND LOSS

Profit After Tax

4024.98 3758.13 4157.73 3110.22 2540.07

Extra items

Profit brought forward

2809.65 2436.32 998.27 293.44 188.22

Ankit Jaiswal


Adjustments to PAT

Total Profit & Loss

6834.63 6194.45 5156.00 3403.66 2728.30

IV. APPROPRIATIONS

6834.63 6194.45 5156.00 3403.66 2728.30

Equity Dividend %

120.00 110.00 110.00 100.00 85.00

Earnings Per Share

36.10 33.76 37.37 34.59 28.55

Adjusted EPS 36.10 33.76 37.37 34.59 28.55

Ankit Jaiswal


ICICI BANK LTD FINANCIAL RATIOS:

RATIOS 2010 2009 2008 2007 2006

Per Share Ratios

EPS 36.10 33.76 37.37 34.59 28.55

DPS 12 11 11 10 8.50

Profitability ratios

GP Ratio 15.06 12.36 12.99 11.41 15.10

NP Ratio 12.17 9.74 10.51 10.81 14.12

ROE 7.96 7.83 11.75 13.37 14.62

ROA 1.08 .96 1.12 1.04 1.21

Liquidity Ratios Current Ratio 1.94 0.78 0.72 0.61 0.62

Quick Ratio 14.70 5.94 6.42 6.04 6.64

Ankit Jaiswal


Interpretation:

Earnings per share (EPS):

EPS is the profitability of the firm measures in terms of number of equity shares, which is derived by dividing the profit after tax by the number of equity shares. EPS calculation in a time series analysis indicates whether the firm EPS is increasing or decreasing.

Over the years EPS of the firm is increasing which indicates that per share earnings of the firm has increased, but this increase in EPS is erroneous in the sense that the real earnings (ROE) have not increased.

Ankit Jaiswal


Dividend per share (DPS):

Sometimes the equity shareholders may not be interested in the EPS but in the return which they are actually receiving from the firm in the form of dividends. The amount of profits distributed to shareholders per share is known as DPS and it is calculated by dividing total profits distributed by number of equity share.

Dividend per share over the years has increased which indicates that the amount of dividend distributed towards the shareholder has increased.

Ankit Jaiswal


Gross profit ratio:

The GP ratio is also called the average mark up ratio. It is calculated by comparing the gross profit of the firm with the net sales.

In 2007 GP ratio had drastically fallen, which means operating efficiency of the firm has decreased but it has recovered over the next three years and become almost stable.

Ankit Jaiswal


Net profit ratio:

The NP ratio establishes the relationship between the net profit (after tax) of the firm and the net sales. Its measures the efficiency of the management in generating additional revenue over and above the total cost of operations.

Net profit ratio has decreased over the years which mean that the overall profitability of the firm has fallen down.

Ankit Jaiswal


ROE:

ROE examines profitably from the perspective of equity investors by relating profits available for the equity share holders with the book value of equity investments. The return from the point of view of equity shareholders may be calculated by comparing the net profit less preference dividend with their total contribution to the firm.

Over the years ROE of the firm have declined which indicates that the funds of the owner have not been used properly by the firm, and the firm has not been able to earn satisfactory return for the owner.

Ankit Jaiswal


ROA:

ROA measures a profitability of the firm in terms of assets employed in the firm. ROE is calculated by establishing the relationship between the profits and the assists employed to earn that profit. ROA shows as to how much is the profit earn by the firm per rupee of assets used. ROA of the firm over the year is almost stable.

Current Ratio:

Current ratio shows the firm’s ability to pay its current liability out of its current assets. Generally a current ratio of 2:1 is considered to be satisfactory but sometimes it varies from industry to industry therefore the firms current ratio should be compared with the standard for the specific industry only. Current ratio of the firm has increased over the year which indicates that the firm has enough current assets to pay off its current liability.

Ankit Jaiswal


Quick ratio:

This ratio establishes the relationship between quick current assets and current liabilities. Quick current assets excludes inventory and prepaid expenses from current assets as they are potentially illiquid. This calculated by dividing quick assets by total current liabilities. Generally a quick ratio of 1:1 is considered to be satisfactory.

Quick ratio of the firm is much higher than the ideal and its increasing over the years which means that the firm has enough quick assets to pay off its current liability.

ICICI BANK LTD VALUATION RATIO:

DESCRIPTION


Adjusted PE (x)

26.39 9.85 20.61 24.67 20.64

PCE(x) 23.59 8.76 18.81 22.13 18.16 Price / Book Value(x)

2.06 0.75 1.84 3.16 2.36

Dividend Yield(%)

1.26 3.31 1.43 1.17 1.44

EV/Net Sales(x)

7.80 4.19 4.93 5.83 6.38

Ankit Jaiswal


EV/EBITDA(x)

20.60 14.59 19.05 21.84 23.48

EV/EBIT(x) 8.74 4.68 5.31 6.41 7.19 EV/CE(x) 0.55 0.34 0.38 0.37 0.36 M Cap / Sales 4.13 1.19 2.78 3.49 3.66 High PE 28.45 25.19 42.13 29.50 22.76 Low PE 10.35 7.03 20.61 15.96 13.24

ICICI BANK LTD CASH FLOW RATIO:

DESCRIPTION


Cash Flow Per share

16.77 -127.46 -104.54 256.45 52.29

Price to Cash Flow Ratio

56.82 -2.61 -7.37 3.33 11.27

Free Cash Flow per Share

102.15 241.13 198.79 -160.91 30.12

Price to Free Cash Flow

9.33 1.38 3.87 -5.30 19.56

Free Cash Flow Yield

0.11 0.72 0.26 -0.19 0.05

Sales to cash flow ratios

13.75 -2.19 -2.65 0.95 3.07

Intrinsic value of ICICI Bank:

Year EPS P/E2006 36.10 26.392007 33.76 9.852008 37.37 20.612009 34.59 24.672010 28.55 20.64

Ankit Jaiswal


1) Based on the past 5 year EPS data, estimated growth % can be determine. And the estimated growth rate is 10.1% 2) Now, by using the current EPS we can compound it with the estimated growth i.e. 10.1% 3) Current EPS is 40.95 compounding of the EPS is 40.95+ (40.95*.101)=45.085 4) Now, based on the past 5 year P/E takes the average of P/E value which is 20.432 5) Now multiply the step 3 & 4 and we will get the estimated share price. 6) Estimated share price is 921.176 and current share price is 1033 which is higher than the estimated its means that share price is overvalued and investor should sell the shares for short term.

Ankit Jaiswal


Expected Growth of ICICI in 2011 by Unicon Investment research report:

“ICICI Bank registered a good financial performance in Q4FY11 with standalone PAT up by 44% to INR 14.52 Bn from INR 10.06 Bn in Q4FY10. The growth, being the highest in last 7 years, was aided by increase in interest and non interest income. The QoQ increase in Net Interest Income was better than expected (a rise of 23.3% from INR 20.35 bn in Q4FY10 to INR 25.10 Bn to Q4FY11). Net interest margin increased QoQ & YoY by 10 bps to 2.7% respectively, on account of lower cost of funds, lower delinquencies and growing CASA deposits.”

“CASA ratio increased from 41.7% in Q4FY10 to 45.1% in Q4FY11. The total deposits increased by 11.7% YoY (INR 668.7 Bn on March 31,2011 as compared to INR 532.18 Bn in March 31,2010). Noninterest income decreased by 13.2% QoQ and 11.1% YoY; this was primarily because of MTM loss in treasury income (Q4FY11 value stood at INR 1.96 Bn) and reduction in other income by 73.6% (QoQ). However, fee income increased by 17.8% to INR 17.91 Bn on QoQ basis. Advances increased YoY by only 19% which was lower than the industry level of 21%, advances to domestic 71orporate increased by 42.6% YoY. The retail advances like vehicle loan and home loan are expected to grow in the near future. The Net NPA‟s improved from 1.87% in Q4FY10 to 0.94% of net advances in Q4FY11. Loan loss coverage ratio also increased to 76% on March 31, 2011 from 59.5% in March 31, 2010, much above the RBI regulation of 70%. Operating expenses rose YoY by 14.1% to INR 17.89 Bn in Q4FY11 from INR 14.58 Bn in Q4FY10. Credit to deposit ratio from domestic business stood at 75%, Cost to income ratio was 42% due to healthy operating income growth. This was on account of expanding network of the bank with 2529 branches and 6104 ATMs.”

“ICICI Bank’s growth in the past has been mainly retail-driven, the bank is now looking to grow its large corporate and SME segment loan book as well. Progress on the „4C‟ strategy (CASA, capital conservation, cost control and credit charges) has been good. At the CMP ICICI is trading at 2x of its FY12E P/BV (standalone basis). We have Accumulate rating on the stock for a target price of INR 1306,” says Unicon Investment research report.

Ankit Jaiswal


FINDINGS (Chapter-7)

Ankit Jaiswal


In this project report there are many facts which say whether an investor should invest in ICICI Bank or not. For the conclusion on this part, we have analyzed economic, industry as well as company (ICICI Bank). 1) In the Economic Analysis we can see that economic is booming after 2009 and current position shows that this is the good time to invest after the recession because GDP growth rate is increasing. And overall economy is growing.

2) In the industry analysis here overall industry PAT is increasing over the years which means banking industry is having much profit but on the other side banking industry Net Profit growth has decreased very much so investor should invest carefully.

3) In the analysis of ICICI Bank we can see that EPS is increasing yoy. And dividend is also increasing so investor can invest in the company but on other side we company‟s intrinsic value is less than the current price it shows that the share price is overvalued and invester should sell the share. But if investor want to invest in the company for long term than he can have a good profit because company growing rapidly in terms of profit and net sales and its EPS & DPS are increasing over the years.

Ankit Jaiswal


LIMITATIONS

Ankit Jaiswal


Fundamental analysis has some limitation involved in it. This limitation can be explained as under:

Time Constrain:

Fundamental analysis may offer excellent insights, but it can be extraordinarily time-consuming. Time-consuming models often produce valuations that are contradictory to the current price prevailing on the exchange.

Company Specific:

Valuation techniques vary depending on the industry group and specifics of each company. For this reason, a different technique and model is required for different industries and different companies. This can be quite time-consuming process, which can limit the amount of research that can be performed. The sales and inventory ratio may be very important for the cement sector company but these ratios are not very useful for the banking sector.

Inadequacies of Data:

While making analysis one has to often wrestle with inadequate data. While deliberate falsification of data may be rare, subtle misrepresentation and concealment are common.

Future Uncertainties:

Future changes are largely unpredictable; more so when the economic and business environment is buffeted by frequent winds of change. In an environment characterized by discontinuities, the past record is a poor guide to future performance.

Irrational Market Behaviour:

The market itself presents a major obstacle while making analysis on account of neglect or prejudice, undervaluation may persist for extended periods; likewise, overvaluations arising from unsatisfied optimism and misplaced enthusiasm may endure for unreasonable lengths of time.

Ankit Jaiswal


CONCLUSION

Ankit Jaiswal


Fundamental analysis holds that no investment decision should be without processing and analyzing all relevant information. Its strength lies in the fact that the information analyzed is real as opposed to hunches or assumptions. On the other hand, while fundamental analysis deals with tangible facts, it does not tend to ignore the fact that human beings do not always act rationally. Market prices do sometimes deviate from fundamentals. Prices rise or fall due to insider trading, speculation, rumor, and a host of other factors.

Fundamental analysis is based on the analysis of the economic, industry as well as the company and in this research we can see that the economic indicators have an effect on the bank growth and assets.

The above report says that our economic is growing after the recession and it is the good time for the one who want to invest. and according to the industry analysis investor can invest in the banks but he/she should be careful for the investment. But according to financial analysis of ICICI bank its performance in the private industry is good and expected to grow further in the near future which is a good sign for investment. EPS and dividend both are increasing yoy and it‟s on the top in terms of profit and net interest income if we compared it with the other banks in the same industry but we can‟t ignore the intrinsic value of the company which is lower than the current value which shows then investor should sell the share of the company if he/she is investing for short term and for long term it is good for investor to invest in the company.

Ankit Jaiswal


SUGGESTION

Ankit Jaiswal


The analysis carried out at on the ICICI Bank, their profit and loss account, balance sheet and ratios. I shall suggest the investors to invest in ICICI Bank than the other banks as a value investment.

Reasons:

Largest private sector bank in India, second largest in entire banking Industry

Strong increase in profit year-on-year basis.

Increasing EPS indicate good earnings.

Increase in sharing profit with shareholders in form of dividend.

ICICI Bank is expanding its footholds on international level also; its

Insurance and asset management business are also performing well.

Ankit Jaiswal


BIBLIOGRAPHY

Ankit Jaiswal


Books:

Investment Analysis & Portfolio Management- Prasanna Chandra. Financial management – R.P Rustagi

ACE EQUITY data base Websites:

www.google.com

www.icicibank.com

www.rbi.org.in

www.moneycontrol.com

www.equitymaster.com

mwww.nseindia.com

http://www.business-standard.com/india/index2.php

http://economictimes.indiatimes.com/

http://en.wikipedia.org/wiki/Magnetic_ink_character_recognition

Ankit Jaiswal


http://finance.indiabizclub.com/info/indian_banking_industry

http://finance.indiamart.com/investment_in_india/banking_in_india.html

Ankit Jaiswal


Date post:	21-Jan-2015
Category:	Business
Upload:	ankit-jaiswal
View:	440 times
Download:	3 times