Final Sbi Report Final

RESEARCH REPORT
SUMMER INTERNSHIP PROGRAM
SUBMITTED BY:
SAUBHAGYA KUMAR SAHOO
ID NO.: SI/SK-161
SUBMITTED TO:
PLACEMENT CELL
NEW DELHI INSTITUTE OF MANAGEMENT
NEW DELHI
(APPROVED BY AICTE)
AND
GULF BULLS SECURITIES PVT LTD
FARIDABAD, HARYANA
NEW DELHI INSTITUTE OF MANAGEMANT Page 1

(Approved by AICTE)
61-62 Tughlakabad Institutional Area
NewDelhi-110062
EQUITY VALUATION
OF
STATE BANK OF INDIA
SUBMITTED BY:
ID NO.: SI/SK-161
GULF BULLS SECURITIES PVT LTD

(Approved by AICTE)
NewDelhi-110062
CERTIFICATE OF THE COMPANY

(Approved by AICTE)
NewDelhi-110062
ACKNOWLEDGEMENT
It gives me immense gratification to place on records my profound gratitude sincere appreciation
to each and every one of those who have helped me in this endeavor.
Firstly I would like to thank Mr. Sachin Gupta for allowing me to do Summer internship
Training at Gulf Bulls Securities Pvt. Ltd.
I extend my sincere thanks to Mr. Animesh Aseem his continuous guidance, cooperation and
valuable suggestions to initiate and carry out the study.
I thank all the member of the Gulf Bulls Securities Pvt. Ltd. Who have guided me through the
working of the project.
Date: 30.06.09
SI/SK-161

(Approved by AICTE)
NewDelhi-110062
PREFACE
Today in the banking sector every bank nationalized or private are striving to reach the pinnacle.
Though in the national scenario the Govt./Nationalized banks are leading bank in the
metropolitan context the private banks are leading both in business as well as service.
STATE BANK OF INDIA has built its leadership by making itself as India’s largest commercial
bank having largest retail lender with great brand image, high market capitalization and also to
find place in the fortune global 500 list.
The Broad objective of the project is to analysis the movement of SBI share and trade in future
by taking into consideration the present economic scenario, movement of banking sector and
how much the SBI share is sensitive with the upcoming news and global effect. It gives a clear
picture about the movement of SBI share in different condition which helps the investors,
brokerage houses to invest in future.
This study is basically divided into five major parts. The first part of the report includes the
current economic scenario of India. The second part deals with the banking Industry and its
comparison with other industries. The third part includes the Introduction of State bank of India.
The fourth part is related to historical analysis, upcoming and Global effect of SBI shares. The
last part deals with limitations, conclusion and suggestions.

(Approved by AICTE)
NewDelhi-110062
TABLE OF CONTENTS
Sl. PAGE NO
INDEX
no
1 Title Page 1-2
2 Certificate of the Company 3
3 Acknowledgement 4
4 Preface 5
5 Executive Summary of the Project -1 7
6 Economic scenario 10-24
7 Banking Industry 25-36
8 Profile of the SBI Group -2
9 Introduction 37-44
10 History 44-46
11 SBI Profile and market share 46-49
12 Work Description -3
13 Analysis 50-72
14 Historical Data 73
15 Upcoming & Global Effect 74-86
16 Finding & Analysis -4
17 Difficulties faced and Major Limitations 87
18 Conclusion & Suggestions -5 88-91

(Approved by AICTE)
NewDelhi-110062
EXECUTIVE SUMMARY
1. Economic Scenario:
This part describes the economic position of the world and brief about the Indian Economy. The
position of fiscal and monetary policy, Tax structure, Balance of payment, Import, Export, Trade
Deficit, Foreign Exchange Reserves, FII, FDI, Special Economic Zones, IMF, Per Capital
Income, GDP, Investment, Savings, IIP, Unemployment, Inflation.
2. Banking Industry:
This part describes about the growth in Banking Industry, Several initiates taken by Government,
Innovation in Banking Industry, Barrier to entry and comparison of Banking Industry with other
sector and SWOT analysis of SBI.
3. Profile of SBI Group:
This part describes about the SBI Group which includes all the seven Banks, Foreign
subsidiaries, Non Banking Subsidiaries, Joint Ventures and the Management committee.
4. SBI Profile:
This part describes about the SBI profile, history, achievements and rewards achieved by SBI.
Details about the Share holding pattern, Dividend, Financial and Historical data.
5. Analysis
This part describes about the detail study of the movement of SBI shares in weekly, monthly and
yearly on the basis of Historical data.
6. Upcoming Effect
This part describes how the upcoming news i.e. Election result, dividend declared etc. effect the
SBI share price.
7. Global Effect
This part explain about the effect of changes in repo rate, reverse repo rate, CRR, SLR,
inflation , GDP and IIP effect the movement of SBI share price.

(Approved by AICTE)
NewDelhi-110062
GULF BULLS SECURITIES
ABOUT COMPANY
Gulf bulls Securities Pvt. Ltd. a Company registered under the Companies Act, 1956 .Gulf bulls
is a professionally managed group headed by the directors, having vast experience in the stock
market. Besides the core promoters, the group is having its full fledged teams headed by young
and dynamic professionals like chartered accountants, company secretaries, MBAs, IT
professionals etc. to handle the various divisions of the company.
The Company has a balanced mix of revenues from emerging markets and is well positioned to
leverage the growth potential offered by these markets. GBS provides investors a robust platform
to trade in Equities in NSE, BSE, and Derivatives in NSE. With its ability to evolve with the
changing environment the Company has been able to put itself to the forefront of stock broking
activities. With its network spreading across various parts of India, it has made a distinct mark
among the stock broking houses and high net worth corporate as well as individuals.
The company research team tracks the economy, industries and companies and provides the
latest information and analysis. The company content offers financial information, analysis,
investment guidance, news & views, and is designed to meet the requirements of everyone from
a beginner to a savvy and well-informed trader.
BUSINESS
• Equity
• Derivatives
• IPO
• Insurance
• Mutual Funds

(Approved by AICTE)
NewDelhi-110062
BUSINESS PARTNERS
• SMC global
• Religare
• Karvy
MANAGEMENT TEAM
NAME DESIGNATION
Mr. Vivek Rana Chairman / Managing Director
Mr Rajiv Balhara Director
Mr. Kuldeep Sharma Director
Mr. Yajur Chaudhary Director
Mr. Rajneesh Aggarwal Director
Mr. Vipin Kumar Director
Mr. Gajraj Singh Director
Mr. Kanishk Dixit Director
MISSION
The Company Mission is to create and introduce the new definition of investments around the
Globe.

(Approved by AICTE)
NewDelhi-110062
VISION
The Company Vision is to grow the business and make their presence across the World.
ECONOMIC SCENARIO
WORLD ECONOMY
“United Nations Department of Economic and Social affairs (DESA) said the world economy is
expected to shrink by 2.6% in 2009 according to the pessimistic scenario of the forecast
presented in January 09.
Source: The Economic Times DT 29.05.09
RECENT GROWTH TRENDS IN GLOBAL ECONOMY
Improving vital signs across the Globe from US GDP to Japanese factory output and British
houses prices hopes that the World economy was responding after months in intensive care.
USA
The US economy shrank 5.7% from the first quarter of 2008, less than the previous estimate of
6.1% and slightly worse than market expectations for a 5.5% fall.
JAPAN
The factory output rose to 5.2% in April, the biggest jump in more than half a century and
manufactures forecast further gains.
SOUTH KOREA
The industrial output expanded for a fourth straight month.
GERMAN
Retail sales showed a 0.5% month rise in April 09 while private consumption for the first quarter
raised a similar amount despite a 3.8% contraction in GDP.
BRITAIN
The house prices registered a surprise rise in May-09 the second time in three months.

(Approved by AICTE)
NewDelhi-110062
INDIAN ECONOMY
Over the last couple of decades, India has established itself as one of the fastest growing
economies in the world. India is also advancing towards the economical growth .The economy
has moved decisively to a higher growth phase. There is no doubt that the economy has moved
to a higher growth plane, with growth in GDP at market price exceeding 8 percent in every year
since 2003-04.
The economy of India is as diverse as it is large, with a number of major sectors including
manufacturing industries, agriculture, textiles and handicrafts, and services. Agriculture is a
major component of the Indian economy, as over 66% of the Indian population earns its
livelihood from this area.
The Indian economy entered the financial year 2008-09 with a buoyant growth rate. The average
growth rate during the recent four years namely 2004-05 to 2007-08 has been at record level
close to 9 per cent when compared to the average growth rate of 5.6 per cent recorded during the
preceding four years. There has been a moderation in the growth in the current year due to the
fallout of the global crisis. Compared to other emerging economies, India has several strengths
that can help mitigate the adverse effects of global financial crisis. The Government has taken
several measures in this direction and the economy is expected to return to the high growth
trajectory.
FISCAL POLICY
• The union budget 2008-09 was presented with fiscal deficit estimated at 2.5% of
GDP and revenue deficit at 1% of GDP.
• The gross market borrowings for the current fiscal year 2008-09 pegged at Rs
3,06,000 crore, the Government has tripled its open market borrowing from the
original Rs 1,33,000 crore thus pushing up the fiscal deficit from 2.5% to 6%.
• A higher deficit and consequent borrowing by the Government will crowd the private
sector out and make an interest rate cut tough.
• The government on an average has been borrowing Rs 838.56 crore daily from the
open market to fund its fiscal deficit.
• 10 year government security shot up by 7 Bps to 6.36% on budget day itself.
• The movement in bond prices shows that the market is not comfortable with the
Government borrowing.
• The change in bond prices both short and long term is indicative of the cost of funds
in the banking system.

(Approved by AICTE)
NewDelhi-110062
Year Fiscal Deficit Revenue Deficit
2004-05 125202 78338
2005-06 146435 92299
2006-07 142573 80222
2007-08 126912 52569
2008-09 326515 241273
The fiscal policy for the year 2009-10 will continue to be guided by the objectives of keeping the
economy on the higher growth trajectory amidst global slowdown by creating demand through
increased public expenditure in identical sectors.
The medium term objective will be to revert to the path of fiscal consolidation at the earliest,
with improvement in the economic situation.
“India Inc can now forget about cheap credit because the cash strapped the credit market by
borrowing heavily from the banking system.”
Source: India Today DT 02.03.09 on Interim Budget.
The doubling of fiscal deficit may place pressure on interest rates unless accommodating policy
measures are taken. Even the fall in interest rates however, will be muted due to the government
massive borrowing.
Source: India Today DT 02.03.09 by Falguni Nayer, Managing Director Kotak Investment
Banking.
TAX

(Approved by AICTE)
NewDelhi-110062
The Net Direct Tax collection falls short of Rs 6,000 crore than the government revised estimate
of Rs 3.45 lakh crore for 2008-09.But the net collection grew by 8.33% over the corresponding
period previous year.
INCOME TAX
The personal income tax collection for the fiscal year ended march 31, 2009 exceeded the
revised target of Rs 1.23 lakh by more Rs 1.000 crore.
CORPORATE TAX
The corporate tax was reduced to Rs 2.13 lakh crore against the revised estimates of Rs 2.22
lakh.
FRINGE BENEFIT TAX (FBT)
The FBT was increased to Rs 7116 crore showed a 12.38% growth over the previous year.
SECURITIES TRANSACTION TAX (STT)
The STT was slipped by 36.95% to Rs 5408 crore.
Source: The Economic Times DT 22.05.09.
GOODS AND SERVICE TAX (GST)
The UPA government is planning to introduce the goods and services tax (GST) form
01.04.2010 by which the consumer will pay a single rate of tax on goods and services sold across
India.
CENTRAL EXCISE
General Cenvat rate on all goods reduced from 16% to 14% to give a stimulus to the
manufacturing sector. Excise duty reduced on small cars, two wheelers and three wheelers from
16% to 12%.
CENTRAL SALES TAX (CST)
Central sales tax rate being reduced from 3% to 2% from Apr 1, 2008.

(Approved by AICTE)
NewDelhi-110062
BANKING CASH TRANSACTION TAX (BCTT)
Banking cash transaction Tax being withdrawn with effect from Apr 1, 2009.
MONEYTARY POLICY
The changes in the domestic and global economy, impacting the price level and financial
stability, pose serious challenges in the conduct of monetary policy. The major thrust of the
monetary policy has been to facilitate the growth of the economy in a non- inflationary
environment.
DATE REPO RE CRR SLR

RATE REPO
RATE
26.04.08 7.75
10.05.08 8.00
24.05.08 8.25
11.06.08 8.00 6.00
23.06.08 8.50 6.00
05.07.08 8.50
19.07.08 8.75
29.07.08 9.00 6.00
03.08.08 9.00
11.10.08 6.50
20.10.08 8.00 6.00
25.10.08 6.00
01.11.08 24.00
03.11.08 7.50 6.00
08.11.08 5.50

(Approved by AICTE)
NewDelhi-110062
06.12.08 6.50 5.50
02.01.09 5.50 4.00
17.01.09 5.00
05.03.09 5.00 3.50
21.04.09 4.75 3.25
BALANCE OF PAYMENT (BOP)
The strength, resilience and stability of the country’s external sector are
reflected by various indicators. These include a steady accretion to reserves,
moderate levels of current account deficit, changing composition of capital
inflows, flexibility in exchange rates, sustainable external debt levels with

elongated maturity profile and an increase in capital inflows.
CURRENT ACCOUNT
The current account Balance is Deficit by 22332 cr in absolute value in the period (Apr–Dec)
2008-09 as compared to a Deficit of 17034 cr in the last year from (Apr-Dec) 2007-08.
IMPORT
The import is increased by 225809 in US $ million in absolute value in the period (Apr–Dec)
2008-09 as compared to 171718 in US $ million in the last year from (Apr-Dec) 2007-08.
EXPORT
The import is increased by 131990 in US $ million in absolute value in the period (Apr–Dec)
2008-09 as compared to 112737 in US $ million in the last year from (Apr-Dec) 2007-08.

(Approved by AICTE)
NewDelhi-110062
TRADE DEFICIT
There is a Trade Deficit of 93819 in US $ million in the period (Apr–Dec) 2008-09 as compared
to a Deficit of 58981 in US $ million in the last year from (Apr-Dec) 2007-08.
CAPITAL ACCOUNT
The capital account is increased to 24788 cr in absolute value in the period (Apr–Dec) 2008-09
as compared to 22357 cr in the last year from (Apr-Dec) 2007-08.
FOREIGN EXCHANGE RESERVES (FER)
In the wake of surge in capital flows and build up of current account surpluses , FER comprising
external assets like Foreign currency assets ( FCA) , gold, SDRS and reserve Tranche position in
the IMF that are readily available to and controlled by monetary authorities of management of
BOP , scaled new highs in recent years.
FER have recorded their highest growth in more than a year in the week following the general
elections results. The Forex reserves which include foreign currency assets, gold and drawing
rights with IMF rose to $ 6.4 billion to touch $260.6 billion during week ended May 22 09 the
highest weekly rise since April 2008.
FOREIGN INSTITUTIONAL INVESTORS (FII)
The net investment of foreign investors in the stock of Indian companies stood at $ 4.2 billion
(around Rs 20,473 crore) with most of the inflows coming in the month of May 09.
So far in 2009, FIIS have bought share worth Rs 1,96,021 crore while they sold equities values at
Rs 1,75,547 crore resulting in a net inflow of Rs 20,472 crore.
(Approved by AICTE)
NewDelhi-110062
Source: The Economic Times 31.05.09
FOREIGN DIRECT INVESTMENT (FDI)
The FDI worth $11 billion flowed into the country between Oct 08 and March 09. In the full
fiscal (FY 09) FDI was almost flat at $ 13.8 billion. Out of the $33.6 billion FDI in the FY 09
only a third was invested in the second half while a bulk of it entered during the first half. This is
the first time since 1999 fiscal which recorded FDI at $ 2.5 billion and FII at a negative $61
million, that FDI inflows have offset FII outflows by such a huge margin.
YEAR Rs in crore
2001-02 6130
2002-03 5035
2003-04 4322
2004-05 6051
2005-06 8961
2006-07 22826
2007-08 34362
2008-09 33619
SPECIAL ECONOMIC ZONES
Another major policy issue in the trade sector which created a lot of heat was that of SEZs. The
SEZ Act, 2005, supported by SEZ Rules, came into effect on February 10, 2006. The main
objectives of the SEZ Act are generation of additional economic activity, promotion of exports
of goods and services, promotion of investment from domestic and foreign sources, creation of
employment opportunities and development of infrastructure facilities. Various incentives and
facilities are offered to both – units in SEZs for attracting investments into SEZs (including

(Approved by AICTE)
NewDelhi-110062
foreign investment) as well as for SEZ developers. These incentives and facilities are
expected to trigger a large flow of foreign and domestic investment in SEZs, particularly in
infrastructure and productive capacity, leading to generation of additional economic activity and
creation of employment opportunities. The SEZ Rules provide for different minimum land
requirements for
Different classes of SEZs. Every SEZ is divided into a processing area where alone the SEZ
units are set up and a non-processing area where the supporting infrastructure is to be created.
Developers of special economic zones (SEZ) and units inside such zones can from now on claim
refunds of taxes paid on all input services, regardless of whether the services are used inside or
outside tax-free zones.
Developers can set up 2 or more adjacent SEZs and merge them without worrying about the area
limit of 5000 hectares.
INTERNATIONAL MONEYTARY FUND (IMF)
At present India has a shareholding of 1.91% in IMF with a quota of $4158.20 million in SDRS.
India may contribute $10-11 billion to the IMF as its contributions to the $500 billion that the
global institution is raising from 20 powerful nations for lending crisis stricken countries.
PER CAPITAL INCOME
The per capital monthly income of an average Indian has for the first time crossed the Rs 3,000
mark on current price levels. The per capital figures may look a bit less impressive when
adjusted for inflation, reached only Rs 25,494 against Rs 25,661 per annum estimated in Feb-09.
MACROECONOMIC FRAMEWORK STATEMENT

(Approved by AICTE)
NewDelhi-110062
Sl. NO Item Absolute value Percentage change
April - December April - December
Real Sector 2007-08 2008-09 2007-08 2008-09
1 GDP at factor cost (Rs. thousand crore) F
a) At current prices 4320.8 QE 4989.8 AE 14.3 15.5
b) At 1999-2000 prices 3129.7 QE 3351.6 AE 9.0 7.1
2 Index of industrial production (1) 258.6 268.7 9.2 3.9
3 Wholesale price index (Base 1993-94=100)(2) 219.0 230.1 4.8 5.1
4 Consumer price index (2001=100)(3) 134.0 147.0 5.5 9.7
5 Money Supply (M3) (Rs. hundred crore)(4) 3892.7 4235.1 11.7 10.6
6 Imports at current prices*
a) In Rs. Crore 693445 1003947 13.0 44.8
b) In US $ million 171718 225809 27.8 31.5
7 Exports at current prices*
a) In Rs. crore 454997 585594 9.2 28.7
b) In US $ million 112737 131990 23.5 17.1
8 Trade Deficit (in US$ million)* -58981 -93819
9 Foreign currency assets
a) In Rs. crore 1050485 1194790 39.6 13.7
b) In US $ million 266553 246603 56.6 -7.5
10 Current Account Balance (In US$ mill)@ -17034 -22332
Government Finances (in Rs. crore) #
1 Revenue receipts 355,646 375,937 26.6 5.7
2 Tax revenue (Net) 295,994 309,927 27.5 4.7
3 Non-tax revenue 59,652 66,010 22.4 10.7
4 Capital receipts (5+6+7) 118,607 221,279 15.4 86.6

(Approved by AICTE)
NewDelhi-110062
5 Recovery of loans 3,304 2,974 -58.5 -10.0
6 Other receipts 37,725 43
7 Borrowings and other liabilities 77,578 218,262 -18.2 181.3
8 Total receipts (1+4) 474,253 597,216 23.6 25.9
9 Non-Plan expenditure 337,090 426,419 23.8 26.5
10 Revenue Account 280,050 403,758 10.3 44.2
Of which:
11 Interest payments 111,764 123,735 20.7 10.7
12 Capital Account 57,040 22,661 209.8 -60.3
13 Plan expenditure 137,163 170,797 23.0 24.5
14 Revenue Account 114,806 146,009 22.3 27.2
15 Capital Account 22,357 24,788 26.9 10.9
16 Total expenditure (9+13) 474,253 597,216 23.6 25.9
17 Revenue expenditure (10+14) 394,856 549,767 13.6 39.2
18 Capital expenditure (12+15) 79,397 47,449 120.4 -40.2
19 Revenue deficit (17-1) 39,210 173,830 -41.3 343.3
20 Fiscal deficit {16-(1+5+6)} 77,578 218,262 -18.2 181.3
21 Primary deficit (20-11) -34,186 94,527 -1639.9 376.5
GROSS DOMESTIC PRODUCT (GDP)
During the year 2008-09 annual real GDP growth (at constant 1999-2000 prices) is 6.7 per cent
as compared to the growth rate of 9.1 per cent during 2007-08. The nominal growth rates of GDP
at current market prices during the respective years are 14.9 per cent and 14.4 per cent. As such
the GDP at current market prices for the year 2008-09 stands at Rs.54,26,277 crore as against
Rs.47,23,400 crore in 2007-08. Due to the prevailing uncertainty in the world economy, the real
GDP growth has been assumed at 7 per cent in 2009-10. After factoring in inflation expectation,
the GDP growth (at current market prices) for 2009-10 is assumed at 11 per cent. Thus the GDP
(Approved by AICTE)
NewDelhi-110062
for the year 2009-10 (at current market prices) is set at Rs.60, 21,426 crore. In the following two
years, with the assumption that economy will start showing signs of revival, the real GDP growth
has been assumed at 8 and 9 per cent respectively. After factoring in medium term inflation
expectation, the GDP growth at current market prices is projected at 13 per cent and 13.4 per
cent respectively for 2010-11 and 2011-12.
2007-08 2008-09
Q1 Q2 Q3 Q4 A Q1 Q2 Q3 Q4 A
Agriculture 4.3 3.9 8.1 2.2 4.62 3.0 2.7 -0.8 2.7 1.9
Mining 0.1 3.8 4.2 4.7 3.2 4.6 3.7 4.9 1.6 3.7
Mfg 10.0 8.2 8.6 6.3 8.27 5.5 5.1 0.9 -1.4 2.52
Utilities 6.9 5.9 3.8 4.6 5.3 2.7 3.8 3.5 3.6 3.4
Construction 11.0 13.4 9.7 6.9 10.2 8.4 9.6 4.2 6.8 7.25
Transport, Hot, Com 13.1 10.9 11.7 13.8 12.37 13.0 12.1 5.9 6.3 9.32
Finance, Real Est. 12.6 12.4 11.9 10.3 11.8 6.9 6.4 8.3 9.5 7.77
Govt & Other Ser 4.5 7.1 5.5 9.5 6.65 8.2 9.0 22.5 12.5 13.05
GDP at Factor cost 9.2 9.0 9.3 8.6 9.02 7.8 7.7 5.8 5.8 6.77
INVESTMENT
Both private and public savings have contributed to higher overall savings. Private savings have
risen by 6.1 percent points of GDP over the Tenth five year plan period.
SAVINGS

(Approved by AICTE)
NewDelhi-110062
The private corporate investment improved from 10.5 percent of GDP in 2004-05 to 14.5
percent of GDP in 2006-07.
Ratio of saving and 04-05 05-06 06-07 Ave

investment to GDP plan
Gross dome saving 31.8 34.3 34.8 31.4
public sector 2.2 2.6 3.2 1.7
private sector 29.6 31.7 31.6 29.7
House hold sector 23 24.2 23.8 23.7
Financial 10.1 11.8 11.3 11
physical 12.9 12.5 12.5 12.7
Corporate sector 6.6 7.5 7.8 6
Investment 32.2 35.5 35.9 31.4
public sector 6.9 7.6 7.8 6.9
private sector 23.4 25.8 27 22.9
House hold sector 12.9 12.5 12.5 12.7
Corporate sector 10.5 13.3 14.5 10.1
Saving Invest Gap -0.4 -1.2 -1.1 0
INDEX OF INDUSTRIAL PRODUCTION (IIP)
Index of Industrial Production (IIP) is one of the Prime indicators of the economic development
for the measurement of trend in the behavior of the Industrial Production over a period of time
with reference to a chosen base year.
Deceleration in growth was significant for manufacturing and electricity sectors, and somewhat
moderate for the mining sector. The cumulative growth during April-March, 2008-09 over the
corresponding period of 2007-08 in the three sectors i.e. mining, manufacturing and electricity
have been 2.3%, 2.3% and 2.8% respectively, which moved the overall growth in the General
Index to 2.4%.

(Approved by AICTE)
NewDelhi-110062
ANNUAL AVERAGES
Description Weight 2007-08 2008-09
Food Products 90.8 198.2 179.2
Beverages, Tobacco 23.8 498 575.9
Cotton Textiles 55.2 164 159.4
Wool, Silk and fibre 22.6 281.2 280.4
Jute 5.9 120.7 108.6
Textile Products 25.4 295.5 306.4
Wood , Furniture and Fixtures 27 127.9 114.7
Paper & Paper and Printing 26.5 255.3 258.6
Leather 11.4 167.8 156.1
Basic Chemicals 140 313.4 322.5
Rubber, Plastic, Petroleum and Coal 57.3 246.4 242.6
Non-Metallic Mineral 44 323.2 326.5
Metal and Alloy 74.5 312.7 325.1
Metal 28.1 172.9 166
Machinery and Equipment 95.7 394.4 428.7
Transport Equipment and Parts 39.8 378.4 386.7
Other Manufacturing Industries 25.6 357.4 359.2
Mining 104.7 171.6 175.6
Manufacturing 793.6 287.2 293.8
Electricity 101.7 217.7 223.7
General Index 1000 268 274.3

(Approved by AICTE)
NewDelhi-110062
UNEMPLOYMENT
The Eleventh Plan envisages rapid growth in employment opportunities while ensuring
improvement in the quality of employment. The employment generation strategy of the Eleventh
Plan is also predicated on the reduction of underemployment and the movement of surplus
labour in agriculture sector to higher wage and more gainful employment in non-agricultural
sector. Employment in manufacturing is expected to grow at 4 per cent while construction and
transport and communication are expected to grow at 8.2 per cent and 7.6 per cent, respectively.
The projected increase in total labour force during the Eleventh Plan is 45 million. As against
this, 58 million employment opportunities would be created in the Eleventh Plan. This would be
greater than the projected increase in labour force leading to a reduction in the unemployment
rate to below 5 per cent.
YEAR UNEMPLOYMENT RATE (%)
2002 8.8
2003 8.8
2004 9.5
2005 9.2
2006 8.9
2007 7.8
2008 7.2
INFLATION

(Approved by AICTE)
NewDelhi-110062
Inflation measured in terms of the WPI, were in the range of 3.8-6.9 per cent in 2003-04, 4.3-
8.7 per cent in 2004-05, 3.3-5.7 per cent in 2005-06, 3.7-6.7 per cent in 2006-07 and 3.1-8.0 per
cent during April-March 2007-08. The current fiscal year started with inflation at close to 8 per
cent and reached double digits in the first week of June. It rose to a high of 12.9 per cent in the
first week of August and continued to be over 12 per cent in September. In October 2008 it came
down to below 12 per cent and subsequently witnessed a sharp fall into single digit in the first
week of November 2008. It has continued to decline since then except for a brief upswing in mid
January 2009 and as of the week ending January 31, 2009 was 4.39 per cent.
CENTRAL LOAN OUTSTANDING AGAINST EACH STATE IN CRORE
AS ON 31ST MARCH
STATE NAME DEBT
UP 21049
AP 15226
WB 14254
GUJARAT 10640
KARNATAKA 9700
MP 9380
ORISSA 8681
MAHARASHTRA 8504
BIHAR 8215
RAJASTHAN 7672
TN 7486
KERALA 5982

(Approved by AICTE)
NewDelhi-110062
PUNJAB 3358
JHARKHAND 2489
CHHATTISGARH 2262
ASSAM 2136
HARYANA 2043
J&K 1852
HP 963
MANIPUR 922
GOA 681
TRIPURA 454
ARUNACHAL PRA 406
UTTARAKHAND 380
NAGALAND 323
MEGHALAYA 314
MIZORAM 308
SIKKIM 176
BANKING INDUSTRY
The growth in the Indian Banking Industry has been qualitative than quantitative and it is
expected to remain the same in the coming years. The country’s middle class accounts for over
320 million people. In correlation with the growth of the economy, rising income levels,
increased standard of living and affordability of banking products are promising factors for
continued expansion. The Indian banking industry is in the middle of an IT revolution, focusing
on the expansion of retail and rural banking. Players are becoming increasingly customer- centric
in their approach, which has resulted in innovative methods of offering new banking products
and services. Banks are now realizing the importance of being a big player and are beginning to
focus their attention on merger and acquisitions.
The favorable economic condition including the sustained acceleration in the pace of growth in
industrial sector, buoyancy in services sector and sharp spurt in real estate sector together again
(Approved by AICTE)
NewDelhi-110062
facilitated rise in the advances of the banking sector. But now the public sector banks have also
woken up with the market potential aggressively brought down their NPA levels and improved
their capital Adequacy ratios and scaled up their fee based income as well. As a result we find
that in the quarter ended June 2007 the Public sector banks reported better 45% growth in net
profit than 35% growth registered by private sector banks. But on an overall perspective, a
decent 43% growth in profits by the banking sector as a whole is quite credible. Many banks are
hopeful of effecting significant NPA recoveries due to Securitization Act. Recoveries from the
NPAs which have been provided for add to the other income. Thus going forward cost
containment and recovery management are the key challenges facing Indian banks to remain
competitive.
STRUCTURE
The Indian banking system can be classified into nationalized banks, private banks and
specialized banking institutions. The industry is highly fragmented with 30 banking units
contributing to almost 50% of deposits and 60% of advances. The Reserve Bank of India is the
foremost monitoring body in the Indian Financial sector. It is a centralized body that monitors
discrepancies and shortcomings in the system.
Industry estimates indicate that out of 274 commercial banks operating in the country, 223
banks are in the public sector and 51 are in the private sector. These private sector banks include
24 foreign banks that have begun their operations here. The specialized banking institutions that
include cooperatives, rural banks, etc. form a part of the nationalized banks category. There are
about 67,000 Branches of Scheduled banks spread across India. As far as the present scenario is
concerned the Banking Industry in India is going through a transitional phase.
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 is estimated at Rs 40, 90,000 crores.
SEVERAL MEASURES INITIATED BY THE RESERVE BANK OF INDIA BETWEEN
NOVEMBER 2008 AND JANUARY 2009.
Several measures initiated by the RBI have resulted in banks reducing their deposit rates
between November 2008 and January 2009. The range for deposit rates for public sector banks
varied from 5.25 to 8.5 per cent, foreign banks at 5.25 to 7.75 per cent and private sector banks
at 4 to 8.75 per cent.
GOVERNMENT INITIATIVES
• Bank rate cuts announced in the stimulus packages.
• Cash withdrawals from bank will not attract tax from April 1, 2009 following abolition of
the banking cash transaction tax (BCTT) in the Union Budget 2008-09.
(Approved by AICTE)
NewDelhi-110062
• Inter-ATM usage transaction became free of charges effective April 1, 2009.
• Affidavit and photo should be enough for opening saving account.
• RBI has increased minimum value for high value clearing to Rs 5 lakh from May-09
further to Rs 10 lakh by August and will be withdrawn completely by Nov-09.
• An India owned company is one where the beneficial foreign ownership is less than 50%
and where the right to appoint the board is with resident Indians.
EVENTS
In the post-crisis quarter caused due to collapse of Lehman Brothers, large corporate like Infosys
moved their deposits to State Bank of India (SBI), the country's largest bank. Infosys has
revealed that it transferred deposits of nearly US$ 200.61 million from ICICI Bank to SBI last
year.
Source: Annual Policy for 2008-09 of Reserve Bank of India
INNOVATIONS IN BANKING INDUSTRY
Over the years, the banking sector in India has seen a number of changes. Most of the banks
have begun to take an innovative approach towards banking with the objective of creating more
value for customers, and consequently the banks. Some of the significant changes in the Indian
banking sector are discussed below:
• Technology for Value Creation:

Banks began to use technology to provide better quality of services at greater speed. Internet
banking and mobile banking made it convenient for customers to do their banking from
geographically diverse places.
• Rural India Catching Up:
With a majority of the Indian population living in rural areas, rural banking forms a vital
component of the Indian banking system. Banks also sharpened their focus on rural markets and
introduced a variety of services geared to the special needs of their rural customers.
• Banking Beyond Banking:
While traditionally, banking meant 'borrowing and lending', in the latter part of the 20th century,
the word took on a different meaning altogether. Banks no longer restricted themselves to
traditional banking activities, but explored newer avenues to increase business and capture new
markets.
• The Changing Face of Banking:

(Approved by AICTE)
NewDelhi-110062
Many analysts predict still more revolutionary changes in the banking sector in India. The
chief of these are likely to be the concept of Universal Banks and the introduction of Smart Card
technology.
• Breakthrough in Funds Transfer:
Real Time Gross Settlement (RTGS) system is an electronic funds transfer system designed to
allow the real time settlement of interbank payments in a fully secure environment. It enables
companies to transfer outstanding funds between banks in real time, thus allowing them to settle
payments instantaneously and manage their working capital better. It is also expected to save
significant amounts of money in interest payments on floating funds lying in banks.
BARRIER TO ENTRY
• The RBI prescribed a new minimum capital requirement (Rs 100 crores) for banks to be
considered for a license.
• Foreign ownership of Indian banks limited to 49% for healthy banks, 74% for banks
identified as distressed.
• State required to maintain minimum ownership of 51% of designated banks.
• India had strict entry restrictions for new banks.

• To maintain paid up capital of at least Rs 1 billion.
• To list shares on stock exchanges.
• To fulfill priority sector credit requirements.
• To have a ceiling of one percent of total voting rights held by a single foreign holder.
• Not to set up a subsidiary or mutual funds for at least three years.
• Use modern infrastructure facilities to provide good customer service.
• Foreign bank can operate either through wholly owned subsidiary through branches or
through a subsidiary with a foreign investment below 74% in an Indian private bank.
COMPETITION NATURE
There are several other challenges and issues that the banking industry face in the changing
global scenario. Apart from their traditional banking functions, Indian banks have now started
offering several value added product and services both in the wholesale as well as retail banking
segments. Hence there is an increased demand for quality manpower for marketing and sales
operations. Though, at present, the interest rates are low due to the efforts of the government to
tame the current economic crisis, in normal circumstances Indian banks face stiff competition
from global banks. The levels of services rendered by the Indian banks still leave a lot more to be
desired. Only those banks which are able to meet the enhanced expectations of the costumers

(Approved by AICTE)
NewDelhi-110062
will be able to survive in the churning that the sector is undergoing currently. The banking
institutions on their parts should find out new ways and means in terms of mergers &
acquisitions and developing new business models to tap new markets. Banks should be
encouraged to use technology and other innovative measures to tap the lower income and rural
markets.
Private sector banks and foreign banks have become price takers. The range of Prime Lending
Rates of public sector banks is 14.5-15.5 per cent, while private sector banks have a higher range
of 15.0-17.5 per cent and foreign banks even higher at 17.0-18.5 per cent. Most public sector
banks have a ceiling on spreads at 4.5 percentage points above the PLR, while private sector and
foreign banks have typically ceilings of 5.0 and 6.25 percentages points over PLR, respectively.
This means that the highest interest rate charged by public sector banks is 20.0 per cent, while
private sector and foreign banks charge up to 22.5 per cent and 24.75 per cent, respectively. The
foreign banks as a group account for less than 10.0 per cent of total business of scheduled
commercial banks in terms of deposits but have about 20.0 per cent share of profits. The picture
is similar in case of private sector banks. There are explanations including quality of service. But
the real issue is the market structure.
THE CREDIT SCENARIO

JAN08 JAN09
Bank Credit 21.4% 24.0%
Non-Food bank credit 22.0% 23.9%
Flow of Resources from Banking
Sector to Commercial Sector 21.7% 23.4%
Incremental Credit-Deposit Ratio 63.1% 81.4%
Scheduled Commercial Banks
Credit to the Commercial Sector 23.1% 27.0%

(Approved by AICTE)
NewDelhi-110062
CREDIT EXPANSION AS ON JANUARY 2, 2009
TYPE INCREASED IN %
Public Sector Banks 28.6%
Scheduled Commercial Banks 24.0%
Foreign Banks 6.9%
Private Sector Banks 11.8%
DEPOSITS AS ON JANUARY 2, 2009

Public Sector Banks 24.2%
Scheduled Commercial Banks 21.2%
Foreign Banks 12.1%
Private Sector Banks 13.4%
PRIME LENDING RATES STOOD AS ON JANUARY 2009

Public Sector Banks 12.00% -12.50%
Foreign Banks 14.25% -15.50%
Private Sector Banks 14.75% -16.75%
COMPARATIVE ANALYSIS
BANKEX WITH AUTO INDUSTRIES

(Approved by AICTE)
NewDelhi-110062
BANKEX WITH IT INDUSTRIES
BANKEX WITH POWER SECTOR
BANKEX WITH FMCG
BANKEX WITH CAPITAL GOODS
BANKEX WITH HDFC BANK
BANKEX WITH PUNJAB NATIONAL BANK

(Approved by AICTE)
NewDelhi-110062
BANKEX WITH SBI
BANKEX WITH HDFC PNB SBI
SBI WITH HDFC PNB
COMPARATIVE ANALYSIS
Description SBI HDFC PNB DT
P/E Ratio 13.29 26.5 6.6 02.06.0

9
EPS 143.67 52.78 98.03 Mar-09
Sales 17342.39 4250.83 5242.57 Mar-09
Face value 10 10 10
Net profit 11.67 12.82 12.68 Mar-09

margin
Last dividend 290 100 200 May-09
Ret on Avg 13.72 13.83 19 Mar-09

(Approved by AICTE)
NewDelhi-110062
Equity
Operation profit 11681.62 2197.25 3800.8 Mar-09
Interest 12500.45 2398.83 3336.04 Mar-09
Gross profit 5277.05 1570.52 1588.15 Mar-09
Market cap 119100.89 59083.81 20765.6 04.06.0

6 9
52 week H/L 894-1935 774-1498 286-717 04.06.0

9
Share hold Mar-09

pattern
Promoters 59.41 19.38 57.8
Int Investors 16.24 8.02 15.51
FIIS 7.97 25.7 14.86
Public and 16.38 46.9 11.83

others
SWOT ANALYSIS OF SBI
STRENGTH
• India’s largest commercial bank.

• Large network having 11448 branches including 92 offices overseas.
• Single largest retail lender in india.
• Only bank which provides home loan at 8% rate of interest.
• Only Indian bank to find place in the Fortune Global 500 list.
• Significant credit growth despite global meltdown.
• Great Brand image.
• Less bank service charges as compared to private bank.
• Operating profit is increased by 37% as compaired to last year.
• Net NPA reduced from 1.78% to 1.76% in 2008-09.
• Strong pick up in lending in Apr-09.
• Each branch having highly dedicated and skilled professionals.

(Approved by AICTE)
NewDelhi-110062
WEEKNESS
• Customer service staff need training.

• No proper facility for uneducated customers.
• Need to groom leaders for the future at all levels.
• Need to raise additional capital for funding Balance Sheet growth.
OPPORTUNITY
• Need to recuit more sales team and ralationship managers at strategic centres.
• Focus on corporate salary account.
• Increase ATM services in rural and semi urban areas.
• Increase dominance in Gold and Broking etc.
• All 11448 branches should be corporate internet banking enabled.
• Setting up call centre in India for all types of business.
• Demart account facility online.
• Investment should be made to improve Mobile banking, ATM services, upgradation of
core banking system, system security etc.
• Bank will advertise and promote different policies introduced by the insurance company
and convince their customer to buy.
• Initiatives should be taken to strengthen business in countries with strong linkage e.g.
USA, UK,UAE.
• Focus on fee income generation by providing value added services like B2B, B2C.
THREAT
• Potential NPAs arising in real estate and in the SME sectors may reduce the net profit.
• Staff cost have been increased due to the new hires of 33,703 staff for the FY 09.
• The liability as on Mar 09 has been increased due to the fall in interest rate.
• Operating expenses increased by 24% due to higher provisions of salary revision and
pensions.
• Providing less banking hr service to customer as compaired to private bank.
• Very high competition prevailing in the industry.

(Approved by AICTE)
NewDelhi-110062
STATE BANK OF INDIA
INTRODUCTION
The roots of the State Bank of India rest the first decade of 19th century , when the bank of
Calcutta , later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of
Bengal and two other Presidency banks, namely, the Bank of Bombay (incorporated on 15 April
1840) and the Bank of Madras (incorporated on 1 July 1843). All three Presidency banks were
incorporated as joint stock companies, and were the result of the royal charters. These three
banks received the exclusive right to issue paper currency in 1861 with the paper Currency Act, a
right they retained until the formation of the Reserve Bank of India. The Presidency banks
amalgamated on 27 January 1921, and the reorganized banking entity took as its name Imperial
Bank of India. The Imperial Bank of India continued to remain a Joint stock company.
Pursuant to the provisions of the State Bank of India Act (1955), the Reserve Bank of India,
which is India’s central bank, acquired a controlling interest in the Imperial Bank of India. On 30
April 1955 the Imperial Bank of India became the State Bank of India.
In 1959 the Government passed the State Bank of India (Subsidiary Banks) Act, enabling the
State Bank of India to take over eight former State-associated banks as its subsidiaries. On Sept
13, 2008, State Bank of Saurashtra, one of its Associate Banks, merged with State Bank of India.
State Bank of India(SBI) is India’s largest commercial bank. SBI has a vast domestic network of
over 16000 branches and commands one fifth of deposits and loans of all scheduled commercial
bank in India. It is the only Indian bank to feature in the top 100 world banks in the Fortune
Global 500 rating and various other rankings. Today state bank of India (SBI) has spread its arms
around the world and has a network of branches spanning all time zones.SBI’s International
Banking Group dilivers the full range of cross-border finance solutions through its four wings
the Domestic division, the foreign offices division, the Foreign Department and the International
Services division.SBI is the largest commercial bank in India in terms of profits, assets ,deposits,
branches and employees, It has segregated its core business operations as Tressury operations.
Corporate Banking Group , National Banking Group, International Banking Group, Associates
and Subsidiaries, Asset Quality and Information Technology.
SBI plays a vital role in providing working capital and term finance to the Indian industry. Due
to its large network of branches ,SBI has been able to garner a large chunk of deposits from the
rural sector. It is also a leader in the international banking business.
The state Bank Group includes a network of seven banks, and several non-banking subsidiaries
offering merchant banking services, fund management, factoring services, primary dealership in
government securities, credit cards and insurance.

(Approved by AICTE)
NewDelhi-110062
SBI GROUP
1. State Bank of India

2. State Bank of Mysore
3. State Bank of Indore
4. State Bank of Patiala
5. State Bank of Travancore
6. State Bank of Bikaner and Jaipur
7. State Bank of Hyderabad
STATE BANK OF MYSORE
State Bank of Mysore was established in the year 1913 as Bank of Mysore Ltd. under the
patronage of the erstwhile Govt. of Mysore, at the instance of the banking committee headed by
the great Engineer-Statesman, Late Dr. Sir M.Visvesvaraya. Subsequently, in March 1960, the
Bank became an Associate of State Bank of India. State Bank of India holds 92.33% of shares.
The Bank has a widespread network of 671 branches (as on 31.01.2009) and 20 extension
counters spread all over India which includes 6 specialized SSI branches, 4 Industrial Finance
branches, 3 Corporate Accounts Branches, 4 specialized Personal Banking Branches, 10
Agricultural Development Branches, 3 Treasury branches, 1 Asset Recovery Branch and 7
Service Branches, offering wide range of services to the customers.
MANAGEMENT COMMITTEE
NAME DESIGNATION
Shri O.P. Bhatt Chairman
Mr. Dilip
Mavinkurve Managing Director
Mr. A Chief General
Ramakrishna Manager
STATE BANK OF INDORE
State Bank of Indore popularly known as Indore Bank in Malwa Region, originally known as
Bank of Indore Ltd. was incorporated under a special charter of his highness Maharaja
Tukojirao Holker-III, the then ruler of this region.
In terms of State Bank of India (Subsidiary Banks) Act, 1959 the Bank of Indore Ltd. became a
subsidiary of State Bank of India w.e.f. 1st January 1960 and was renamed as State Bank of
Indore. The Bank acquired business of the Bank of Dewas Ltd. in 1962 and the Dewas Senior
Bank Ltd. in 1965 and was up-graded to class 'A' category bank in 1971.

(Approved by AICTE)
NewDelhi-110062
NAME DESIGNATION
Smt. Soundara
kumar Managing Director
Shri Jiban Goswami Director
Shri S.A. Thimmiah Director
Shri L.K. Meena Director
Shri. Radhe Shyam Director
Shri S.C. Rathi Director
Shri. S.L. Tiwari Director
Shri Atul Pradhan Director
Shri A.K. Khandelwal Director
STATE BANK OF PATIALA

Heritage of State Bank of Patiala dates back to the year 1917, when it was founded by Late His
Highness Bhupinder Singh, Maharaja of erstwhile Patiala state, with one branch by the name of
'Chowk Fort, Patiala' to begin with. The Bank, then known as the 'Patiala State Bank' was state
owned and setup for the explicit purpose of fostering growth of agriculture, trade and industry.
The constitution, scope and operations of the Bank underwent a sea change with the formation of
the Patiala and east Punjab States Union (PEPSU) in 1948.The Bank was then reorganized and
brought under the control of Reserve Bank of India.
It was christened as the Bank of Patiala. Another milestone in history of the Bank was its
becoming a subsidiary of the State Bank of India on 1st April, 1960 when it was named as the
State Bank of Patiala.
NAME DESIGNATION
A C Varma Managing Director

(Approved by AICTE)
NewDelhi-110062
STATE BANK OF TRAVANCORE
State Bank of Travancore (SBT) was originally established as Travancore Bank Ltd. in 1945
sponsored by the erstwhile Princely State of Travancore. Under a special statute of the Indian
Parliament (SBI subsidiary Banks Act 1959) it has been made an Associate of the State Bank of
India and a member of the State Bank Group, the largest banking group in India.
MANAGEMENT
COMMITTEE
NAME DESIGNATION
Managing
Mr. A K Jagannathan Director
General
Mr. Mathur K Nanjunda Manager
STATE BANK OF BIKANER AND JAIPUR
One of the well-known banks of Rajasthan, State Bank of Bikaner and Jaipur came into being in
1963 after the merger of State Bank of Bikaner and State Bank of Jaipur. Headquartered at
Jaipur, the bank has around 844 branches, spread all over the India. This technology driven bank
has got all its branches migrated to Core Banking Solution (CBS) during 2005-06 and is
providing Internet banking facilities to its customers.
MANAGEMENT
COMMITTEE
NAME DESIGNATION
Managing
Shri Arun Shandilya Director
STATE BANK OF HYDERABAD

A subsidiary of State Bank of India, State Bank of Hyderabad was established as Hyderabad
State Bank on 8 August 1941. The Bank started its operations with the distinction of being the
central bank of the princely state of Hyderabad, covering the present-day Telangana region of
Andhra Pradesh, Hyderabad-Karnataka of Karnataka and Marathwada of Maharashtra, when it
was established. Apart from functioning as a commercial bank, it managed Osmania Sikka (the
currency of Hyderabad in those days) and managed public debt as well. The first branch of the
Bank was established at Gun foundry, Hyderabad on 5 April 1942.

(Approved by AICTE)
NewDelhi-110062
Hyderabad State Bank conducted the takeover of the assets and liabilities of the Hyderabad
Mercantile Bank Ltd. in 1953. It was in the same year, when the Bank started its Government
and Treasury business as an agent of the Reserve Bank of India. In 1956, the RBI took over the
Bank. Since then, Hyderabad State Bank came to be known as State Bank of Hyderabad (SBH),
which was the subsidiary of RBI during the period. On 1 October 1959, SBH became a
subsidiary of the State Bank of India.
MANAGEMENT
COMMITTEE
NAME DESIGNATION
O. P. Bhatt Chairman
Managing
Amitabha Guha Director
Madhavi Sharma Director
Jiban Goswami Director
S. A. Thimmiah Director
Gajendra Singh
Rajukhedi Director
I. Ram Reddy Director
M Harshavardhan Director
FOREIGN SUBSIDIARIES:
• State Bank of India International (Mauritius) Ltd.
• State Bank of India (California).
• State Bank of India (Canada).
• INMB Bank Ltd, Lagos
STATE BANK OF INDIA INTERNATIONAL (MAURITIUS) LTD.
State bank of India International (Mauritius) Ltd is one of the first offshore banks to be
established in Mauritius in 1990, with a paid up capital of USD 10 Million. The Bank has had a
consistent record of having earned profits since its very first year of operations. SBIIML with the
expertise of its management and personnel, is customer focused, and offers to all its clients, all
over the world, high quality, cost effective professional services and innovative products.

(Approved by AICTE)
NewDelhi-110062
MANAGEMENT
COMMITTEE
NAME DESIGNATION
Managing
M C Mulay Director
STATE BANK OF INDIA (CALIFORNIA)

State Bank of India (California), a wholly owned subsidiary in California is a California State
Chartered Bank and a member of the Federal Deposit Insurance Corporation. With four full
service branches and a money transfer office, the Bank caters to the Banking needs of the
community, ethnic and non-ethnic alike, through various deposit and loan schemes. The Bank
also provides Internet Banking, Tele-Banking, ATM service and Credit Cards.
MANAGEMENT
COMMITTEE
NAME DESIGNATION
President &
Ms Neena Bansil CEO
STATE BANK OF INDIA (CANADA)
State Bank of India (Canada) - a wholly owned subsidiary of State Bank of India - has been
operating in Canada at four locations Toronto, Vancouver, Surrey and Mississauga, extending
various facilities to the Indians settled in Canada such as remittance of funds through a network
of over 9000 offices of State Bank of India, the largest commercial bank in India and through the
branches of its Associate Banks. SBI(C) has also been instrumental in fostering trade ties
between India and Canada by extending financial, advisory and logistic support to Canadian and
Indian corporate.
MANAGEMENT
COMMITTEE
NAME DESIGNATION
President &
P Nandakumaran CEO
INMB BANK LTD, LAGOS
A subsidiary of SBI, INMB Bank Ltd, (formerly Indo-Nigerian Merchant Bank Ltd) was
incorporated on 26.11.1981 under the Banking Act, 1969. The principle activity of the Bank is
providing Banking Services, mainly to corporate clients. Such services include the granting of
loans and advances, equipment leasing, corporate finance activities, financial advisory services.

(Approved by AICTE)
NewDelhi-110062
MANAGEMENT
COMMITTEE
NAME DESIGNATION
Managing
S S Ranjan Director
NON- BANKING SUBSIDIARIES:
• SBI Capital Markets Ltd (SBICAP)
• SBI Funds Management Pvt Ltd (SBI FUNDS)
• SBI DFHI Ltd (SBI DFHI)
• SBI Factors and Commercial Services Pvt Ltd (SBI FACTORS)
• SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)
SBI CAPITAL MARKETS LTD (SBICAP)
SBICAP undertakes merchant banking activities, advisory services, project appraisal, credit
syndication and securities broking. SBICAP’s current focus is on infrastructure project advisory
and syndication mandates, particularly in sectors, such as, urban infrastructure and power, which
are reckoned as the growth drivers. The other focus areas are public issues of equity, book-
building issues, debt placements, broking, and sales and distribution.
SBI FUNDS MANAGEMENT PVT LTD (SBI FUNDS)
SBI FUNDS is the Asset Management Company (AMC) set up for managing the affairs of SBI
Mutual Fund.
SBI DFHI LTD (SBI DFHI)
SBI DFHI, a Primary Dealer (PD), undertakes trading in Government and Non-Government
securities, in the Debt Markets. SBI DFHI Ltd came into existence in April 2004 with the
amalgamation of Discount and Finance House of India (DFHI), a subsidiary of RBI & SBI Gilts
Ltd, a subsidiary of SBI. It is a major participant in the wholesale Debt Market both in the
Primary and Secondary Market segment with an outright turnover of Government Securities and
Treasury Bills.
SBI FACTORS AND COMMERCIAL SERVICES PVT LTD (SBI FACTORS)
SBI Factors, a subsidiary of State bank of India (SBI) is one of the leading factoring companies
in India was established in February 1991 with the primary objective to provide domestic
factoring services to Small and Medium Enterprises (SMEs). SBI and its Associates Banks hold
70% stake in SBI Factors.

(Approved by AICTE)
NewDelhi-110062
SBI CARDS & PAYMENTS SERVICES PVT. LTD. (SBICPSL)
1998 saw a new vista opening for the Indian credit card users. GE Capital Services, the largest
issuer of private label credit cards in the world and State Bank of India, the largest Indian bank
created two companies to address the market: namely, SBI Cards and Payment Services Ltd.
(SBICPSL) and GE Capital Business Process management Services ltd. (GECBPMSL). The
joint venture was set up to leverage the Brand equity, customer relationship and the unparalleled
network of SBI and the technological processes and service capabilities of GE Capital to offer
you products that are value for money and supported by quality and service.
JOINT VENTURES:
SBI LIFE INSURANCE COMPANY LTD (SBI LIFE).
SBI LIFE undertakes the business of life insurance and annuity in relation to all or any kinds of
assurance. SBI LIFE leveraged the strength of its parent bank and its group. SBI and its
Associate Banks became the Corporate Agents of SBI LIFE. SBI LIFE is now selling its
insurance products through 2,400 branches of SBI Group.
PROFILE OF SHRI O.P.BHATT CHAIRMAN STATE BANK OF INDIA
Born on 7th March 1951, Mr. Om Prakash Bhatt started his banking career as a probationary
officer with state bank of India in 1972. Mr. O.P.Bhatt has during his long career of 36 years
with SBI, held several important assignments in India and abroad. He was the project
coordinator for the Bank’s computerization project form where he moved on to Regional
Manager at Jaipur and then as Executive Secretary to the then Chairman of the SBI Group. As
Chairman, Mr. Bhatt is not only the Chief Executive of India’s largest commercial bank., he is
also the Head of the entire State Bank Group which consists of 7 domestic and 4 international
banking subsidiaries, besides 5 non- banking subsidiaries and 1 joint Ventures. Besides chairing
these companies, Mr. Bhatt is also the chairman of the Banking and Financial Institutions
Committee of FICCI, Director on the board of several other companies like EXIM Bank and
GIC and a member of the Boards of ICRIER, XLRI, IBPS, IDRBT, KVIC and National
cooperative Development Corporation.
STATE BANK OF INDIA
HISTORY
1806: The origin of State Bank of India was back to 1806 when the Bank of Calcutta (later
called the Bank of Bengal) was established.
1809: The Bank receives a charter from the imperial government and changes its name to Bank
of Bengal.

(Approved by AICTE)
NewDelhi-110062
1840: A sister bank, Bank of Bombay, is formed.
1843: Another sister bank is formed: Bank of Madras, which, together with Bank of Bengal and
Bank of Bombay become known as the presidency banks, which had the right to issue currency
in their regions.
1861: The Presidency Banks Act takes away currency issuing privileges but offers incentives to
begin rapid expansion, and the three banks open nearly 50 branches among them by the mid-
1870s.
1876: The creation of Central Treasuries ends the expansion phase of the presidency banks.
1921: The presidency banks are merged to form a single entity, Imperial Bank of India.
1955: The Nationalization of Imperial Bank of India results in the formation of the State Bank of
India, which then becomes a primary factor behind the country's industrial, agricultural, and rural
development.
1969: The Indian government establishes a monopoly over the banking sector.
1972: SBI begins offering merchant banking services.
1986: SBI Capital Markets is created.
1995: SBI Commercial and International Bank Ltd. are launched as part of SBI's stepped-up
international banking operations.
1998: SBI launches Credit cards in partnership with GE Capital.
2002: SBI networks 3,000 branches in a massive technology implementation.
2004: A networking effort reaches 4,000 branches.
2008 : State Bank of India has received the Reserve Bank of India’s approval in Nov for the
proposed joint venture company with Society General Securities Services (SGSS), for offering
custodial and related services in India.
State Bank of India has signed a Joint venture agreement with Insurance Australia Group in Nov
to form a Joint venture company which will be engaged in General Insurance business in India.
State Bank of India was adjudged the best bank of 2008 by London based 'The Banker' magazine
of the Financial Times Group.

(Approved by AICTE)
NewDelhi-110062
2009 : SBI has come out with special home loan rates for new borrowers at 8%- applicable for
one year.
State Bank of India (SBI), a large financial services group operating in the banking industry, has
entered into an agreement with Telecom firm Tata Communications Ltd and C-Edge for the roll-
out and management of 500 ATMs.
Tata Motors has appointed the country's largest lender, the State Bank of India (SBI) as an
Exclusive Booking agent for Nano.
The US based Reputation Institute ranked SBI among the Top 50 in a list of the world’s 200
most Reputable Companies.
AWARS AND RECOGNITION DURING THE PAST 12 MONTHS
• Only Indian bank to find a place in the Fortune Globe 500 list.
• In the Forbes 2000 lists of largest companies in the world.
• Awarded the “Bank of the year 2008 –India” by the Banker Magazine London.
• Awarded “Best Bank” and “Most preferred Home loan” by Outlook Money Awards 08.
• Won “Most preferred Bank” and “Most preferred Brand for Home loan” CNBC
consumer Awards Sep 08.
PROFILE
SBI MANAGEMENT
NAME DESIGNATION
Shri Om Prakash
Bhatt Chairman
Shri S.k. Managing
Bhattacharyya Director
Shri R. Sridharan Director
Dr. Ashok
Jhunjhunwala Director
Shri Dileep C. Choksi Director
Shri S.
Venkatachalam Director
Shri. D. Sundaram Director
Dr. Deva Nand
Balodhi Director
Prof. Mohd.
Salahuddin Director
Dr. Vasantha
Bharucha Director

(Approved by AICTE)
NewDelhi-110062
Dr. Rajiv Kumar Director
Shri Arun
Ramanathan Director
Smt. Shyamala
Gopinath Director
Shri Ashok Chawla Director
KEY FIGURES
Face Value(Rs) 10.00
PE ratio 13.29 02/06/09
EPS(Rs) 43.23 March 09
Sales(Rs crore) 17342.39 March 09
Net profit margin(%) 11.67 March 08
Last dividend(%) 290.00 11/05/09
Return on average equity 13.72 March 08
QUARTERLY RESULT (Rs Crore)

Particular March 09 Dec 08 Sep 08 June 08 March 08
Sales 17342.39 18030.34 15566.50 13799.20 13576.73
Interest 12500.45 12272.15 10111.15 8981.54 8776.14
Gross Profit 5277.05 4482.62 4193.21 3962.34 4373.13
EPS (Rs) 43.23 39.04 35.59 25.84 34.65
SHARE HOLDING
Promoters Holding: 59.41%
Institutional Investor: 16.24%
FIIS: 7.97%
Public and Others: 16.38%

(Approved by AICTE)
NewDelhi-110062
SBI
(BSE Id: 500112 NSE Id: SBIN ISIN Id: INE062A01012
Face Value : Rs 10.00
Industry : Banking
Constituent Indices : CNX 100,S&P CNX 500,S&P CNX
Nifty,SENSEX,BSE-100,BSE-200
Market Cap : 1,19,100.89(Cr) as on 04-June-2009
52 week high price /:52 week low 894.00 – 1935.00
price:
DIVIDEND
Year Dividend (%)
2003-04 110
2004-05 125
2005-06 140
2006-07 140
2007-08 215
2008-09 290
AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31ST MARCH 2009
(Rs in crore)
SL
NO PARTICULARS QUARTER ENDED YEAR ENDED
31.03.0 31.03.0 31.03.0 31.03.0
9 8 9 8
Interest Earned 17342.3 13576.7 63788.4 48950.3
1 (a+b+c+d) 9 3 3 1

(Approved by AICTE)
NewDelhi-110062
12083.6 46404.7 35228.1
(a) Interest on advances 1 9603.47 1 1
15574.1 11944.1
(b) Income on investment 4230.89 3211.76 1 6
Interest on balances with
(c) RBI 880.15 218.8 1474.38 1200.08
(d) Others 147.74 542.7 335.23 577.96
12690.7
2 Other Income 4718.22 2817.2 9 8694.93
22060.6 16393.9 76479.2 57645.2
3 Total Income 1 3 2 4
12500.4 42915.2 31929.0
4 Interest expended 5 8776.14 9 8
12608.6
5 Operating expenses 4283.11 3244.66 15648.7 1
(a) Employee cost 2349.6 1569.6 9747.31 7785.87
(b) Other operating expenses 1933.51 1675.06 5901.39 4822.74
16783.5 58563.9 44537.6
6 Total Expenditure (4+5) 6 12020.8 9 9
17915.2 13107.5
7 Operating profit 5277.05 4373.13 3 5
8 Provisions and
(a) contingencies 1377.66 1619.14 3734.57 2668.65
(b) Provision for NPA 1296.25 1066.98 2474.97 2000.94
14180.6
9 Profit Before Tax 3899.39 2753.99 6 10438.9
10 Tax expenses 1157.08 870.74 5059.42 3709.78
Net profit After Tax (9-
11 10) 2742.31 1883.25 9121.24 6729.12
Paid up equity share
12 capital 634.88 631.47 634.88 631.47
57312.8 48401.1 57312.8 48401.1
13 Reserve 1 9 1 9
14 Analytical Ratio
(a) Share in RBI 59.41% 59.73% 59.41% 59.73%
(b) Capital Adequacy Ratio
Base-1 12.97% 13.54% 12.97% 13.54%
Base-2 14.25% 14.25%
(c ) EPS 43.23 34.65 143.77 126.62
(d) NPA ratios
12837.3 12837.3
Gross NPA 15588.6 4 15588.6 4
Net NPA 9552.02 7424.33 9552.02 7424.33
Percentage Gross NPAs 2.84% 3.04% 2.84% 3.04%
Percentage Net NPAs 1.76% 1.78% 1.76% 1.78%
(e) Return on Assets 1.10% 1.10% 1.04% 1.01%
(Approved by AICTE)
NewDelhi-110062
Public share holding no of 2576730 2542631 2576730 2542631
9 shares 22 76 22 76
Percentage of share
holding 40.59% 40.27% 40.59% 40.27%
Promoters and Group
10 Holdings
Non- Encumbered no of 3772072 3772072 3772072 3772072
shares 00 00 00 00
Percentage of share 100% 100% 100% 100%
Per of shares of share
capital 59.41% 59.73% 59.41% 59.73%
ANALYSIS RESISTAN
CE
HIGH 995.25 02-Mar-09 RESISTANCE 985

LOW 934.55 05-Mar-09 SUPPORT LEVEL 942
SUPPORT
LEVEL
RESISTAN
CE
HIGH 953.05 13-Mar-09 RESISTANCE 940

LOW 896.80 09-Mar-09 SUPPORT LEVEL 905
SUPPOR
NEW DELHI INSTITUTE OF MANAGEMANT T LEVEL Page 49
(Approved by AICTE)
NewDelhi-110062
RESISTAN
CE
HIGH 987.80 16-Mar-09 RESISTANCE 980.00

LOW 949.60 17-Mar-09 SUPPORT LEVEL 955.00
SUPPORT
LEVEL
RESISTAN
CE
HIGH 1125.35 27.Mar-09 RESISTANCE 1100.00

NEW DELHI INSTITUTE OF MANAGEMANTSUPPORT Page 50

(Approved by AICTE)
61-62 Tughlakabad Institutional Area LEVEL
NewDelhi-110062
RESISTAN
CE
HIGH 1145.35 03-Apr-09 RESISTANCE 1130.00
SUPPORT
LEVEL
RESISTAN
CE
LOW 1123.90 08-Apr-09 SUPPORT LEVEL 1125.00
NEW DELHI INSTITUTE OF MANAGEMANT SUPPORT Page 51

(Approved by AICTE)
61-62 Tughlakabad Institutional Area LEVEL
NewDelhi-110062
RESISTAN
CE

SUPPORT
LEVEL
RESISTAN
CE

(Approved by AICTE)
61-62 Tughlakabad Institutional Area SUPPORT
NewDelhi-110062
LEVEL
RESISTAN
CE

SUPPORT
LEVEL
RESISTAN
CE

(Approved by AICTE)
NewDelhi-110062
HIGH 1366.95 07-May-09 RESISTANCE 1360.00
LOW 1323.70 06-May-09 SUPPORT LEVEL 1326.00
SUPPORT
LEVEL
RESISTAN
CE

SUPPORT
LEVEL

(Approved by AICTE)
NewDelhi-110062
RESISTAN
CE

SUPPORT
LEVEL
RESISTAN
CE

SUPPORT
LEVEL

(Approved by AICTE)
NewDelhi-110062
MONTHLY
RESISTAN
HIGH 1295.85 18-Dec-08 RESISTANE CE 1286.00
A
LOW 1040.25 02-Dec-08 SUPPORT LEVEL 1210.00
A - Issue bond at the rate of 8.9% for 15 years to raise 18000 crore on 18.12.08. So there is an
intraday fluctuation of 101.9 on that day.
SUPPORT
LEVEL
RESISTAN
HIGH 1361.20 05-Jan-09 RESISTANCE 1225.00
CE
LOW 1041.75 23-Jan-09 SUPPORT LEVEL 1160.00
SUPPORT
LEVEL

(Approved by AICTE)
NewDelhi-110062
RESISTAN
HIGH 1194.00 13-Feb-09 RESISTANCE CE 1178.00
LOW 1024.15 26-Feb-09 SUPPORT LEVEL 1137.00
SUPPORT
LEVEL
RESISTAN
CE
HIGH 1125.35 27-Mar-09 RESISTANCE 1035.00
A
A – SBI cut deposit rate from 9 per cent to 8.5 per cent. So there is an intraday fluctuation of
98.1 on 03.03.09.
SUPPORT
LEVEL
RESISTAN
NEW DELHI INSTITUTE OF MANAGEMANT
CE Page 57
(Approved by AICTE)
NewDelhi-110062
SUPPORT
LEVEL
RESISTAN
CE

SUPPORT
LEVEL

(Approved by AICTE)
NewDelhi-110062
RESISTAN
CE
LOW 1024.65 1-Jul-08 SUPPORT LEVEL 1395.00
B C
A
A – The repo rate is increased from 7.75 percent to 8 percent. So there is an intraday fluctuation
of 97 on 12.06.08.
B - The repo rate is increased from 8.00 percent to 9 percent. So there is an intraday fluctuation
of 103.75 on 29.07.08.
SUPPORT
LEVEL
C - The JV with Australia insurance group was finalized. So there is an intraday fluctuation of
107 on 21.08.08.
RESISTAN
HIGH 1543.90 16-Oct-08 RESISTANCE 1290.00
LOW 896.80 09-Mar-09 SUPPORT LEVEL CE 1175.00
C
B A
A – SBI announces to offer home loan to customer at 8 per cent on 02.02.09. So there is an
intraday fluctuation of 54.5 on that day.
B – The JV was signed with Australia insurance group. So there is an intraday fluctuation of
127.3 on 28.11.08. SUPPORT
LEVEL
C – The intraday fluctuation of 116 was found on 03.11.08 due to the decrease in repo rate from
8 percent to 7.5 percent by RBI.

(Approved by AICTE)
NewDelhi-110062
RESISTAN
CE
HIGH 1822.15 09-Mar-09 RESISTANCE

A
1560.00
B
A – The repo rate is reduced from 9 percent to 8 percent. So there is an intraday fluctuation of
137 on 20.10.08.
B – SBI announced to open 1500 more branches in the coming year. So there SUPPORT
is an intraday
fluctuation of 187.6 on 27.10.08. LEVEL
BSE

(Approved by AICTE)
NewDelhi-110062
HISTORY
HIGH LOW
MONTH DATE PRICE DATE PRICE
Apr 08 30-Apr-08 1,819.95 1-Apr-08 1,592.00
May 08 2-May-08 1,840.00 30-May-08 1,438.20
Jun 08 2-Jun-08 1,496.70 30-Jun-08 1,101.15
Jul 08 24-Jul-08 1,567.50 1-Jul-08 1,007.00
Aug 08 6-Aug-08 1,638.90 28-Aug-08 1,302.00
Sep 08 19-Sep-08 1,618.00 30-Sep-08 1,353.00
Oct 08 14-Oct-08 1,569.90 27-Oct-08 991.1
Nov 08 5-Nov-08 1,375.00 20-Nov-08 1,025.00
Dec 08 19-Dec-08 1,325.00 2-Dec-08 995.05
Jan 09 5-Jan-09 1,376.40 23-Jan-09 1,031.05
Feb 09 13-Feb-09 1,205.90 27-Feb-09 1,008.30
Mar 09 27-Mar-09 1,132.25 9-Mar-09 894.01
Apr 09 17-Apr-09 1,355.00 1-Apr-09 980.01
May 09 29-May-09 1,869.10 11-May-09 1260.7
HIGHER FLUCTUATION IN INTRADAY
DAT SENS
E SBI EX NEWS
12.06.08 97 522.78 Repo rate is increased from 7.75% to 8.00%.
29.07.08 103.75 425.98 Repo rate is increased from 8.50% to 9.00%.
21-08-08 107 445.8 Finalize the insurance JV with Australia Group
20.10.08 137 514.77 Repo rate reduced from 9% to 8%.
27.10.08 187.6 1042 Announced to open 1500 More Branches.

(Approved by AICTE)
NewDelhi-110062
03.11.08 116 260.51 Repo rate reduced from 8% to 7.5%.
24.11.08 106.9 340.09
25.11.08 127.3 533.4 JV Australia Group was signed
18.12.08 101.9 477.3 Issue Bond @8.90% for 15 yr raise 18,000 cr
02.02.09 54.5 314.61 Special home loan offer at 8%.
03.03.09 98.1 242.15 Cut deposit rates from 9% to 8.5%.
UP COMING NEWS EFFECT

GDP
IMF declared that the India’s Growth is likely to slow down to 6.25% in 2008-09 and further to
5.25% in 2009-10 due to falling corporate investment, deteriorating global outlook, weakening
profitability, confidence and tightening of financing conditions from foreign and non-bank
sources.
India is expecting a Growth of 7.1% and 7.7% growth is needed to meet the target of 7.1%.
Source: The Times of India DT 21.02.09
Date Share Closing Price

19.03.09 968.2
20.03.09 953.55
23.03.09 1023.45
24.03.09 1034.65
25.03.09 1050.05
After the announcement of this news we can see that there is no such good movement is SBI
share for few days.

(Approved by AICTE)
NewDelhi-110062
ELECTION RESULT 2009
As everybody knows that the Election result will be announced on 16.05.09. So there is a huge
quantity of share purchased by the investors before 16th may. Because the news are infavour of
UPA for a stable Government. The investors are expecting there should be a hike in the price of
SBI share if the UPA will come with majority.
Date Vol of share trade Closing share price

07.05.09 568138 1366.95
08.05.09 651697 1325.15
11.05.09 1397331 1260.7
12.05.09 917697 1295.45
13.05.09 1070081 1262.15
14.05.09 949688 1267.85
15.05.09 943734 1312.25
18.05.09 25059 1590.05
19.05.09 2720829 1754.45
DIVIDEND
SBI was announced to declare their Quarterly result and dividend on Saturday i.e. on 09.05.09.
The investors had unknown about the net profit and proposed dividend. So there is no such good
movement before few days. On 9th may 09 SBI net declared the net stood at Rs 9121.24 cr
reflecting a growth of 35.6% as compared to last year. The SBI board has proposed 290%
dividend.
VOL OF SHARE CLOSING SHARE

DATE TRADE PRICE
06.05.09 924221 1323.7
07.05.09 568138 1366.95
08.05.09 651697 1325.15
11.05.09 1397331 1260.7
(Approved by AICTE)
NewDelhi-110062
BUDGET
Indian Union Budget was announced on 16.02.09. The investors had not aware about the budget
result. So there was no such good movement before few days.
VOL OF SHARE CLOSING SHARE

DATE TRADE PRICE
10.02.09 674957 1164.05
11.02.09 661075 1158.85
12.02.09 672928 1159.5
13.02.09 570090 1194
GLOBAL EFFECT
(Approved by AICTE)
NewDelhi-110062
REPO RATE
Repo rate is the rate at which RBI lends money to commercial banks against approved
Government securities.
EFFECT ON BANKING SECTOR
Any changes in Repo rate affects the Net Interest Margins (NIMS) of the banks and interest cost
of corporate which affect the Stock prices of securities affect overall market sentiments.
Besides these there are lots of other indirect reasons which affect the prices of securities in the
event of such rate changes.
EFFECT ON SBI SHARE PRICE
Date Repo (old) Repo (new) Date Share Closing Price
25.07.08 1448.75
29.07.08 8.5% 9.0% 28.07.08 1418.05
29.07.08 1321.00
From the above figure it is clear that whenever there is an increase in REPO rate the SBI share
price decreasing.
REVERSE REPO RATE
Reverse Repo rate is the rate at which Reserve Bank of India (RBI) borrows money from banks.
Banks are always happy to lend money to RBI since their money is in safe hands with a good
interest. An increase in Reverse repo rate can cause the banks to transfer more funds to RBI due
to these attractive interest rates. It can cause the money to be drawn out of the banking system.

(Approved by AICTE)
NewDelhi-110062
Date Re repo (old) Re repo (new) Date Share Closing Price
20.04.09 1295.95
21.04.09 3.5% 3.25% 21.04.09 1255.35
From the above figure it is clear that whenever there is a decrease in RE REPO rate the SBI
share price decreasing.
CASH RESERVE RATION (CRR)
CRR is the Percentage of deposits every bank has to keep in its account with RBI. Thus bank
cannot use such money for lending purposes and thus increase/decrease of this ratio is used by
the RBI as a tool to curtail/inject liquidity in the system respectively.
Since banks does not earn any interest on such balances with RBI it increases there cost of funds
and consecutively there net interest margins(NIM) come under pressure .Due to this banking
sector stocks falls generally after CRR rate hike. Moreover to maintain NIM in the situation of
CRR hike banks are forced to increase their lending rates due to which interest cost of corporate
increases and consequently there profit growth rate falls and this result in market crash.
Date CRR O) CRR (N) Date Share Closing Price

26.04.08 7.5 7.75 25.04.08 1750.1

(Approved by AICTE)
NewDelhi-110062
28.04.08 1736.65
10.05.08 7.75 8 09.05.08 1675.7
12.05.08 1663.35
24.05.08 8 8.25 23.05.08 1573.25
26.05.08 1537.7
11.10.08 7.5 6.5 08.10.08 1322.15
10.10.08 1352.15
13.10.08 1524.95
08.11.08 6 5.5 07.11.08 1249.25
10.11.08 1301.55
From the above figure it is clear that whenever there is an increase in CRR the SBI share price
decreases.
From the above figure it is clear that whenever there is a decrease in CRR the SBI share price
increases.

(Approved by AICTE)
NewDelhi-110062
STATUTORY LIQUIDITY RATIO (SLR)
SLR is the amount a commercial bank needs to maintain in the form of cash, gold or govt
approved securities (Bonds) before providing credit to its customers. SLR rate is determined and
maintained by the RBI in order to control the expansion of bank credit.
Any change in this rate affects Government borrowing programme as banks purchase
Government securities for meeting there SLR requirements. Banks can thus sell their surplus
securities and use the consideration for giving more loans.
Date SLR (O) SLR (N) Date Share Closing Price
06.11.08 1215.35
08.11.08 25.0 24.0 07.11.08 1249.25
10.11.08 1301.55
From the above figure it is clear that whenever there is a decrease in SLR the SBI share price
increases.
INFLATION
Inflation is a rise in the general level of prices of goods and services in an economy over a period
of time.

(Approved by AICTE)
NewDelhi-110062
Inflation reduces bank lending to private sector. Inflation is negatively associated with real
money market rates, real Treasury bill rates and real time deposit rates. As the inflation increases
the real rate of return on these instruments falls. Inflation has a dramatic negative impact on the
profitability of banks. The net interest margins, net profits, rate of return on equity and value
added by the banking sector all decline in real terms as inflation rises.
Date Previous Date Changes

12.03.09 910.90 13.03.09 953.05
20.03.09 953.55 19.03.09 968.20
23.03.09 1023.45
26.03.09 1093.80 27.03.09 1125.35
The Inflation is reduced to 2.43% on 13.03.09, 0.44% on 20.03.09 and 0.27% on 27.03.09.
So from the above figure it is clear that whenever there is a decrease in inflation the closing
share price of SBI increases.
GROSS DOMESTIC PRODUCT (GDP)
The total market value of all final goods and services produced in a country in a given year,
equal to total consumer, investment and government spending, plus the value of exports, minus
the value of imports.
The increase in demand due to high GDP growth rates helps the corporate to show larger profits.
Thus, more and more money is invested in buying stocks-by individuals, Indian corporate and
foreign institutions-leading to a sustained bullish run. So the bank turnover is mainly affected by
the GDP growth.
(Approved by AICTE)
NewDelhi-110062
25-02-09 1037.75
26-02-09 1024.15
27.02.09 1027.10
There is a 7.7% growth needed in Q4 2008-09 to meet target of 7.1%.But the finance sector GDP
was reduced to 9.5% in Q3 2008-09 as compared to previous Quarter 11.9%.So there is no such
movement we can find in the share value mentioned above.
Source: The Times of India DT 26.02.09.
The declared Q3 GDP growth at 6 year low of 5.3% i.e. Agriculture (-) 2.2%, Industry 0.5% and
services 9.3% the total comes to 5.3%.
Source: The Times of India DT 28.02.09.
27.02.09 1027.10
02.03.09 995.25
03.03.09 975.85
04.03.09 957.55
05.03.09 934.55

(Approved by AICTE)
NewDelhi-110062
INDEX OF INDUSTRIAL PRODUCTION (IIP)
Index of Industrial Production (IIP) is one of the Prime indicators of the economic development
for the measurement of trend in the behavior of the Industrial Production over a period of time
with reference to a chosen base year.
Indian Banking sector are very sensitive to IIP Numbers. A better IIP number would show a
positive growth on our banking sector.
09-04-09 1140.40
10-04-09 1140.40
13.04.09 1217.90
The index of industrial production (IIP) for February 09 rises 0.2%, a marginal improvement
over the 0.5% and 0.6% contraction seen in the preceding two months. So it is clear that SBI
share price is more sensitive with the increase in IIP.

(Approved by AICTE)
NewDelhi-110062
LIMITATION
The Various Limitations are:
INADEQUATE AVAILABILITY OF DATA: -
It is very difficult to collect the information about the economy and Industry as the Economic
Survey Report of the last year will be announced by the Finance Department on 3rd of July 2009.
CURRENT FINANCIAL DATA:-
It is very difficult to get the accurate financial data for the year 2008-09 because most of the
companies have not announced their unaudited balance sheet.
HISTORICAL DATA: -
As the share market is very sensitive with the upcoming news and global effect it is necessary to
collect the important event occurred in the past date wise which is not available correctly in any
web site.
MOVEMENT OF SHARE:-
The Major movement of share is mainly based on FDI and FII. The election result was
announced on 16th May 09 and the Government is still not clear about which sector and up to
which percentage they allow FDI and FII. The SBI share is within 30 shares of Sensex and 50
Shares of Nifty and maintaining nearly Beta value equal to one so it is very difficult to do an
analysis of banking sector with other sector.

(Approved by AICTE)
NewDelhi-110062
CONCLUSION
Today India share market is emerging as the fastest growing market. We can see a positive
growth in the share market after the announcement of election result on 16.05.09. The rapid
growth is mainly due to the permission of FII and FDI in few sectors by the stable Government.
To encourage the Brokerage houses and the Investors the Government of India is also planning
to withdrawn the Security Transaction Tax (STT) which will not only help the investors and
Brokerage houses but also helps to move the share market towards positive trend.
Due to the introduction of online trading account by several banks and brokerage houses more
investors are now a day’s interested to open the Demart account. The investors are now calculate
their profit, losses and other charges more transparently after the introduction of on line Trading
account.
Now most of the Brokerage houses are managing the investors fund with the help of
professionals and assuring a percentage of return to investors to encourage them.
Now the Reserve Bank of India is planning not to open door any wider for foreign banks to
acquire controlling stakes in private banks in wake of the Global financial turmoil. Various
banks from China, Japan and Middle East have evinced interest in buying controlling stake in
India banks. But RBI found that one of the major reasons for default of large foreign banks was
their Diversified Portfolio. So it helps the Indian banks to grow with less competition from
Foreign banks.
SBI
Since few months the whole world is suffering from recession which will affect the Index of
Industrial Production (IIP) of almost all the sector. But in the recession period also SBI have
maintained its strong Brand image of India’s largest commercial bank and the only Indian bank
to find place in the Fortune Global 500 list.
The NPA was reduced from 1.78 percent to 1.76 percent in the last financial year and also the
Bank shows a strong pick in lending in the month of Apr and May-09.

(Approved by AICTE)
NewDelhi-110062
The operating profit of SBI was increased by 37% as compared to last year due to the
introduction of home loan at 8 percent for one year. Due to this scheme many customers are
jump from other Banks to SBI to avail the lower rate of interest which forces some Banking
Institution like HDFC has started charging borrowers up to 3 percent of the outstanding loan if
they decide to prepay their loans by borrowing from other lenders.
As the economy is developing in the world and coming out of recession also the US market is
recovering very fast and our Government is also stable so it is the right time for the investor to
invest in the SBI shares both for the long term and short term period.
But during the analysis I found that the investors those are interested in short term investment i.e.
Intraday or Delivery for few days should watch the upcoming news and Global effect regularly
as SBI shares are more sensitive with the effects mentioned below.
UPCOMING EFFECT
PLR
The RBI may standardize the way banks calculate their prime lending rates the bench mark to fix
the floating components of loans and bar them from lending below their respective PLRs. The
decision can be expected by July end. After that no banks can lend the money below PLRs. So
after announcement it will definitely affect the SBI shares because now SBI is the only bank who
is providing home loan at 8 percent rate of interest.
FDI
According to (FDI notification in government parlance) 2 and 3 of 2009 the firm that has more
than 50 percent foreign investment whether by way of direct investment or portfolio holdings or
foreign currency debentures would be considered Foreign owned. But currently the ICICI is
holding 64 percent and HDFC is holding 74 percent of foreign investment. The RBI asking DIPP
(the agency set the foreign investment policy) and after the announcement of norms definitely
we can find a drastic change in the movement of banking shares.

(Approved by AICTE)
NewDelhi-110062
GENERAL BUDGET
The general budget for the year 2009-10 will be presented on July 3rd and the Economic survey,
the annual report on the state of economy is likely to be presented on July 2nd 09. So definitely
after the announcement there will be a strong movement in the SBI share price.
GLOBAL EFFECT
MONETARY POLICY
Now a day in every short interval RBI is changing the Repo, Reverse Repo, CRR, SLR rate. So
investors should be very much aware of this type of news which will definitely affect the SBI
share price.
STAKE SALES IN PSU
The new UPA government is planning to sell stakes in PSU to raise resources for bridging
excess expenditure. India’s Fiscal Deficit stands around 6 percent of GDP. A high fiscal deficit
tends to hike the cost of capital for private sector as Government borrowing increases to fill the
gap between its revenue and expenditure. So after the budget announcement definitely it will
affect the banking share price.
FOREIGN INVESTMENT
Recently the Government is changing its norms for FDI and FII for different sector. So this type
of news can affect the SBI share price.
US BANKING
The most popular two banks in USA i.e. Bank of America and CITI Bank is under pressure from
US regulator to raise fresh capital. Also the CITI bank is planning to sell 11.73 percent stake in
India’s largest mortgage company HDFC. Because in the past due to collapse of Lehman
Brothers, large corporate like Infosys moved their deposits to SBI.
So it is the right time for the investors to invest in SBI share by taking into consideration of the
above facts.
(Approved by AICTE)
NewDelhi-110062
SUGGESTIONS
By looking into the last year performance of SBI i.e. the growth in profit, reduced in NPA
percentage, highest market capture and strong hold in the Market by providing different scheme
to customer time to time I am suggesting that it is the right time for the investors to invest in the
SBI shares for both short and long term period.
JUNE -09
ACTION: BUY
TARGET PRICE: Rs
STOP LOSS PRICE: Rs
AUG -09
ACTION: BUY
TARGET PRICE: Rs
STOP LOSS PRICE: Rs

(Approved by AICTE)
NewDelhi-110062
BIBLIOGRAPHY
www.nseindia.com
www.bseindia.com
www.moneycontrol.com
www.yahoofinance.com
www.googlefinance.com
www.rbi.org.in
www.finmin.nic.in
www.indiabudget.nic.in
www.sebi.gov.in
www.timesofindia.com
www.economictimes.com
www.indiatoday.com
www.statebankofindia.com
www.sbhyd.com
www.sbp.co.in
www.sbbjbank.com
www.sbtonline.in
www.mysorebank.com
www.indorebank.org

(Approved by AICTE)
NewDelhi-110062
(Approved by AICTE)
NewDelhi-110062

Final Sbi Report Final

Uploaded by

Copyright:

Available Formats

You might also like

Final Sbi Report Final

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Final Sbi Report Final

Uploaded by

Copyright:

Available Formats

RESEARCH REPORT

SUMMER INTERNSHIP PROGRAM

SAUBHAGYA KUMAR SAHOO

NEW DELHI INSTITUTE OF MANAGEMENT

GULF BULLS SECURITIES PVT LTD

NEW DELHI INSTITUTE OF MANAGEMANT Page 1

STATE BANK OF INDIA

SAUBHAGYA KUMAR SAHOO

GULF BULLS SECURITIES PVT LTD

NEW DELHI INSTITUTE OF MANAGEMANT Page 2

NEW DELHI INSTITUTE OF MANAGEMANT Page 3

SAUBHAGYA KUMAR SAHOO

NEW DELHI INSTITUTE OF MANAGEMANT Page 4

NEW DELHI INSTITUTE OF MANAGEMANT Page 5

1 Title Page 1-2

2 Certificate of the Company 3

5 Executive Summary of the Project -1 7

6 Economic scenario 10-24

7 Banking Industry 25-36

8 Profile of the SBI Group -2

11 SBI Profile and market share 46-49

15 Upcoming & Global Effect 74-86

16 Finding & Analysis -4

17 Difficulties faced and Major Limitations 87

18 Conclusion & Suggestions -5 88-91

NEW DELHI INSTITUTE OF MANAGEMANT Page 6

3. Profile of SBI Group:

NEW DELHI INSTITUTE OF MANAGEMANT Page 7

NEW DELHI INSTITUTE OF MANAGEMANT Page 8

Mr. Vivek Rana Chairman / Managing Director

Mr Rajiv Balhara Director

Mr. Kuldeep Sharma Director

Mr. Yajur Chaudhary Director

Mr. Rajneesh Aggarwal Director

Mr. Vipin Kumar Director

Mr. Gajraj Singh Director

Mr. Kanishk Dixit Director

NEW DELHI INSTITUTE OF MANAGEMANT Page 9

NEW DELHI INSTITUTE OF MANAGEMANT Page 10

NEW DELHI INSTITUTE OF MANAGEMANT Page 11

Source: India Today DT 02.03.09 on Interim Budget.

NEW DELHI INSTITUTE OF MANAGEMANT Page 12

FRINGE BENEFIT TAX (FBT)

SECURITIES TRANSACTION TAX (STT)

The STT was slipped by 36.95% to Rs 5408 crore.

Source: The Economic Times DT 22.05.09.

GOODS AND SERVICE TAX (GST)

Source: The Economic Times DT 25.05.09.

CENTRAL SALES TAX (CST)

NEW DELHI INSTITUTE OF MANAGEMANT Page 13

DATE REPO RE CRR SLR

NEW DELHI INSTITUTE OF MANAGEMANT Page 14

BALANCE OF PAYMENT (BOP)

inflows, flexibility in exchange rates, sustainable external debt levels with

NEW DELHI INSTITUTE OF MANAGEMANT Page 15

FOREIGN EXCHANGE RESERVES (FER)

highest weekly rise since April 2008.

Source: The Economic Times DT 30.05.09.