CHAPTER-I

INTRODUCTION

Introduction:
Global competition forced organizations to build global capabilities.
Banking sector is the most effective instrument for economic development, so developing
Human Resources for this sector is essential to achieve the national development.
Banking in India originated in the last decades of the 18th century. The oldest bank in
existence in India is the State Bank of India, a government-owned bank that traces its origins
back to June 1806 and that is the largest commercial bank in the country. Central banking is
the responsibility of the Reserve Bank of India, which in 1935 formally took over these
responsibilities from the then Imperial Bank of India, relegating it to commercial banking
functions. After India's independence in 1947, the Reserve Bank was nationalized and given
broader powers. In 1969 the government nationalized the 14 largest commercial banks; the
government nationalized the six next largest in 1980.
Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that
is with the Government of India holding a stake), 31 private banks (these do not have
government stake; they may be publicly listed and traded on stock exchanges) and 38 foreign
banks. They have a combined network of over 53,000 branches and 17,000 ATMs.
According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75
percent of total assets of the banking industry, with the private and foreign banks holding
18.2% and 6.5% respectively.
The most significant achievement of the financial sector reforms has been the marked
improvement in the financial health of commercial banks in terms of capital adequacy,
profitability and asset quality as also greater attention to risk management. Further,
deregulation has opened up new opportunities for banks to increase revenues into investment
banking, insurance, credit cards, depository services, mortgage financing, securitization etc.
At the same time, liberalization has brought greater competition among banks, both domestic
and foreign, as well as competition from mutual funds, Non-Banking Financial Corporations,
post office etc.

The definition of a bank varies from country to country. Under English common law, a banker
is defined as a person who carries on the business of banking, which is specified as:
conducting current accounts for his customers
paying cheques drawn on him, and
collecting cheques for his customers.
In most English common law jurisdictions there is a Bills of Exchange Act that codifies the
law in relation to negotiable instruments, including cheques, and this Act contains a statutory
definition of the term banker: banker includes a body of persons, whether incorporated or not,
who carry on the business of banking' (Section 2, Interpretation). Although this definition
seems circular, it is actually functional, because it ensures that the legal basis for bank
transactions such as cheques do not depend on how the bank is organised or regulated.
The business of banking is in many English common law countries not defined by statute but
by common law, the definition above. In other English common law jurisdictions there are
statutory definitions of the business of banking or banking business. When looking at these
definitions it is important to keep in mind that they are defining the business of banking for
the purposes of the legislation, and not necessarily in general. In particular, most of the
definitions are from legislation that has the purposes of entry regulating and supervising banks
rather than regulating the actual business of banking. However, in many cases the statutory
definition closely mirrors the common law one. Examples of statutory definitions:
"Banking Business" means the business of receiving money on current or deposit account,
paying and collecting cheques drawn by or paid in by customers, the making of advances to
customers, and includes such other business as the Authority may prescribe for the purposes
of this Act; (Banking Act (Singapore), Section 2, Interpretation).
"Banking Business" means the business of either or both of the following:
1. Receiving from the general public money on current, deposit, savings or other similar
account repayable on demand or within less than [3 months] ... or with a period of call or
notice of less than that period;
2. Paying or collecting cheques drawn by or paid in by customers Since the advent of
EFTPOS (Electronic Funds Transfer at Point Of Sale), direct credit, direct debit and internet
banking, the cheque has lost its primacy in most banking

systems as a payment instrument. This has lead legal theorists to suggest that the cheque
based definition should be broadened to include financial institutions that conduct current
accounts for customers and enable customers to pay and be paid by third parties, even if they
do not pay and collect cheques.

Inflation
The Reserve Bank of India has effectively contained the inflation expectations in 2007 by
managing the WPI inflation down from 6.6% in Feb 2007 to around 4% in Dec 2007. This is
attributed to the moderation of prices of primary food articles and some manufactured
products.
The inflation rate in India was recorded at 6.16 percent in December of 2013. Inflation Rate
in India is reported by the Ministry of Commerce and Industry, India. Inflation Rate in India
averaged 7.71 Percent from 1969 until 2013, reaching an all time high of 34.68 Percent in
September of 1974 and a record low of -11.31 Percent in May of 1976. In India, the wholesale
price index (WPI) is the main measure of inflation. The WPI measures the price of a
representative basket of wholesale goods. In India, wholesale price index is divided into three
groups: Primary Articles (20.1 percent of total weight), Fuel and Power (14.9 percent) and
Manufactured Products (65 percent). Food Articles from the Primary Articles Group account
for 14.3 percent of the total weight. The most important components of the Manufactured
Products Group are Chemicals and Chemical products (12 percent of the total weight); Basic
Metals, Alloys and Metal Products (10.8 percent); Machinery and Machine Tools (8.9
percent); Textiles (7.3 percent) and Transport, Equipment and Parts (5.2 percent).

Industry Production
Industrial production dropped sharply in the month of January 2009 owing to sluggish
performance in the manufacturing sector. The general index for the month of January 2008
showed a growth of only 5.3% compared to growth of 11.6% in January 2007. This was the
third successive month of low growth. In Dec 07, the industrial production grew by 7.7%.
The lower growth has been contributed by sluggishness in the manufacturing and mining
sector. Cumulatively, industrial production showed a growth of 8.7% between April-January
2008-09, with 9.8% growth for manufacturing, 4.6% for mining and 6.3% for electricity.
Lagged impact of interest rate increases and decrease in global demand have been affecting
industrial growth in the last few months.
Growth in the manufacturing sector declined to 5.9% in Jan09 as against 12.3% in Jan08,
and growth in mining declined to 1.8% as against 7.7% in Jan07. Electricity sector recorded
a moderate growth of 3.3% as against 8.3% in Jan07.
Increases in interest rates over the last two years is impacting the consumer durable and
capital goods sector as consumer durables production, including washing machine and
television sets, fell 3.1% in January after increasing 5.3% a year earlier and output of capital
goods increased by a meager 2.1% compared with 16.3% a year ago. Also indices for
machinery and equipment showed a sharp fall of 3.8% in Jan 08 against 10.7% growth in
Dec 07.

Rupee Outlook
Massive FII inflows and slumping US dollar in 2007 led to significant appreciation of rupee.
This led to curbing of inflows through external commercial borrowing and participatory notes
measures and has led to stabilization of the rupee US $ movement. The outlook for the US
dollar is expected to be weak in an aggressive easing stance adopted by the US Fed.
Fed easing cycle since September 2007 has led to Hold/Softening stance across various
Central Banks globally. Global uncertainties triggered by increase chances of US recession
and increasing commodity prices have led to risk aversion among investors across the globe
which has impacted Indias equity and debt market. In the first two months of 2008, net
investment has been $2802mn in equity and $1103mn in debt respectively against $1173mn in
equity and $268mn in debt respectively in the same period last year.

Trade Outlook
Indias merchandise exports showed a growth of 21.62% during the first ten months of period
of April January 2009 to US$ 124.19bn. Exports showed a growth of 20.47% for Jan 08 to
US$ 13.14bn compared to US$ 10.90bn Jan 08. Exports have not performed well so far due
to 12% rupee appreciation that has affected the competitiveness of the export focused
industries.
Labour intensive sectors like textiles, leather, handicrafts and marine products have been hit
the most in recent times.

NEED OF THE STUDY:

The need of the study is to concentrates on the growth and performance of Nationalized and
Private Banks and to calculate the performance by using Comparative analysis and to know
the Activates of the banks of SBI, Syndicate Bank, ICICI and HDFC.

To know financial position of SBI, Syndicate Bank, ICICI and HDFC

To analyze existing situation of SBI, Syndicate Bank, ICICI and HDFC

To improve the performance of SBI, Syndicate Bank, ICICI and HDFC

To analyze competition between SBI, Syndicate Bank, ICICI and HDFC with other
cooperatives.

OBJECTIVE OF STUDY
To study and analyze the growth trend of Banking industry w.r.t Private Banking and
Nationalized banking sectors over the period of 2st December 2014 to 20th January 2015.
To study the relationship between the Banking index and BSE Sensex, Sectoral Index and
the share prices of the major industries in this sector.
To find how inflation is also a cause for the growth/fall of BANKING INDEX. With the
sample of 4 banks, three from private sector and three from public sector.
Attempt to provide a direction to an investor to analyze and forecast the stock market so
as to make the best possible lucrative deal by investing in stocks.
To compare with various factors for FY2011 and FY 2015. Analyzing worth of private and
public sector banks

SCOPE OF THE STUDY:

In this study the analysis based on ratios to know asset and liabilities management under SBI,
Syndicate Bank, ICICI and HDFC and to analyze the growth and performance of SBI,
Syndicate Bank, ICICI and HDFC by using the calculations under asset and liability
management based on ratio.

Comparative statement

This analysis attempts to study the growth pattern of Equity sector, such as Banking and
RESPECTIVE to Nationalized banks Vs Private Banks. When compared to its sector wise
indices and the national index S&P CNX Nifty. The analysis hereby done attempts to prepare
a report on the behavior of share prices of major Banking in Private and Nationalized Sector
stocks, so that a investor can prepare and well diversified portfolio and logically forecast
about the behavior of the share market and invest in a manner so as to make a lucrative deal
and earn a maximum possible capital gain from the market. Moreover the study also gives a
comparative analysis of the above stated stocks with their respective sartorial index and the
national index so that a investor wanting to invest in these sectors can check the past
performance and behavior of major companies in these sectors and analyze their growth
trends before investing making a investment in the stock market.

METHODOLOGY

SOURCE OF DATA
Primary Source: The Analysis of the study does not include the primary data because the
company does not follow the primar data it include the past data.
Secondary Source:The analysis is completely based on Secondary Data

Tools and Techniques

1) Research Design: Descriptive Design
2) Data Analysis: M.S. Excel with the help of Line Graphs, Moving Averages and
Correlation.

Data Processing and Analysis

For a complete analysis on equities, there are basically two parts in which the total analysis is
done.
Fundamental Analysis
Technical Analysis

LIMITATION OF THE STUDY:

1. This subject is based on past data of Banks.
2. The analysis is based on structural liquidity statement and gap analysis.
3. The study is based on the issues that are listed on NSE and BSE only.
4. Time period to complete the project is 45 Days.

CHAPTER-II
LITERATURE REVIEW

10

Nationalized Banks of India

Nationalized banks have always contributed to boost up the economy of India and available in
a large number.It is also known for offering expeditious service and understands the actual
need of its customers.
In India Nationalized banks have great dominance over private banks as it has fully authority
to look after the function and policy of private banks. Imperial Bank was the first banks that
was nationalized in 1955 and became famous as State Bank of India.
After that many banks got the certification of nationalized bank. Some of these are State Bank
of Tranvancore, State Bank of Indore, State Bank of Patiala, State Bank of Saurashtra and
more. The nationalized banks were established with great purpose to make wide reach of
banking function even in the rural area and offers great benefit for those who actually get
deprived from such service
The nationalized banks are fully committed to offer the best possible service to its rural client
and also make them aware about the various benefits, available for them.
Such banks are fully dedicated to offer quality of service to their clients. In 1969, the total
number of nationalized banks was 14 whereas it became 21 in 1980. However State Bank of
India became the topmost and the best commercial bank. Besides it also rated top five banks
in the world. Presently there are 88 commercial banks and 27 banks are functioning in the
country and established many branches to expand its service in all parts. Some of these banks
have also established their branches in foreign countries as well.
But the nationalised banks in India have its own reputation and operated with approximate
53,000 branches and 17,000 ATMs. By the coming of ATMs you can withdraw your money
instantly and this service is available for 24 hours. Apart from that, the nationalized banks in
India are also known for offering transparent service and provide crystal clear balance sheet in
comparison with other banks. Moreover, it also replaced the old payment system and
introduces the best system of payment by providing debit card and credit card.

11

Earlier person used to carry cash while purchasing various items, but now you can easily
make your payment by using such cards. Aside from offering such service, nationalized banks
also introduced insurance policies such as life insurance health insurance.
State banks of India has introduced many such polices to offer extra benefit to its customers.
Besides, several other nationalized banks also offered such policies with better features.

Private Banks India

In India private banks are available in plenty and known for offering expeditious service to
their customers.Thanks to globalization that prompted many foreign banks to expend their
business throughout world and India became the most preferred destination.
Today you can find lots of foreign bank that are engaged to serve the customers in the best
possible manner and made its stand strong by offering 24 x 7 hour service.
Private banks in India have a great history and started their service way back.
In 1920s, imperial bank of India formed by the great cooperation by Bank of Madras, Bank of
Bengal and Bank of Bombay. After that Reserve Bank of India came into existence in 1935
and got authority to look after the other banks.
It became centre body and got power to introduce making policy and several new
schemes.After the establishment of Reserve Bank of India, the Imperial Bank of India was
blessed with new identity and became popular as State Bank of India.
In 1969 the Government of India offered a new ordinance and approx 14 commercial banks
got certification of nationalized banks. Some of them were Central Bank of India, Allahabad
Bank, Punjab National Bank and Canra Bank.
In 1994, the Reserve Bank of India opened the door for private banks and handed out the
policy to control the private banks.

12

The policy also included the liberation for Private Banks in terms of their free and
independent operation. The first private bank came in India as Trust Bank later it became
popular as Oriental Bank of Commerce.
After that Housing Development Finance Corporation limited that got consent from Reserve
Bank of India. It became a large private bank and still popular for offering wonderful service.
Today India is a swamped with many private banks such as International Bank, ING Vyasya
Bank, Kotak Mahindra Bank, SBI Commercial Bank, Karnataka Bank, Kashmir Bank, ICICI
Bank and more. Private Banks in India achieved a milestone for serving people and showed
its great commitment.
Private Banks in India have earned great response for its skin tight service and also known
for bringing revolution for serving millions of customers.It offers best option for saving and
also offers various schemes with maximum return.
It offers its service 24 hours and made the job of fund transfer easier by offering new banking
service. Besides, there are lots of ATM machines have been set up by such private banks and
made the task of withdrawing liquid money easier.
A Nationalized bank is one that is owned by the government of the country. Since the people
decide who the government is, they are also referred to as public sector banks. The
government is responsible for the money deposited into the accounts of these banks.
A private sector bank is one that is owned by an independent individual or a company that is
controlled by a few individuals. In short, the bank is owned by someone else and they run the
bank. The person owning/running the bank is responsible for the money deposited into the
accounts of these banks.

13

HDFC BANK
INTRODUCTION:HDFC is India's premier housing finance company and enjoys an impeccable track
record in India as well as in international markets. Since its inception in 1977, the Corporation
has maintained a consistent and healthy growth in its operations to remain the market leader
in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC
has developed significant expertise in retail mortgage loans to different market segments and
also has a large corporate client base for its housing related credit facilities. With its
experience in the financial markets, a strong market reputation, large shareholder base and
unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian
environment.

MISSION:HDFC Bank's mission is to be a World-Class Indian Bank.

14

OBJECTIVES:The objective is to build sound customer franchises across distinct businesses so as to

be the preferred provider of banking services for target retail and wholesale customer
segments, and to achieve healthy growth in profitability, consistent with the bank's risk
appetite. The bank is committed to maintain the highest level of ethical standards,
professional integrity, corporate governance and regulatory compliance. HDFC Bank's
business philosophy is based on four core values
Operational Excellence, Customer Focus, Product Leadership and People.
MANAGEMENT:Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr.
Capoor was a Deputy Governor of the Reserve Bank of India.
The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25
years, and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia.
The Bank's Board of Directors is composed of eminent individuals with a wealth of
experience in public policy, administration, industry and commercial banking. Senior
executives representing HDFC are also on the Board.
Senior banking professionals with substantial experience in India and abroad head
various businesses and functions and report to the Managing Director. Given the professional

15

expertise of the management team and the overall focus on recruiting and retaining the best
talent in the industry, the bank believes that its people are a significant competitive strength.

STATE BANK OF INDIA

INTRODUCTION:The Bank is actively involved since 1973 in non-profit activity called Community
Services Banking. All the branches and administrative offices throughout the country sponsor
and participate in large number of welfare activities and social causes. Its business is more
than banking because It touches the lives of people anywhere in many ways.
The origin of the State Bank of India goes back to the first decade of the nineteenth century
with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later
the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A
unique institution, it was the first joint-stock bank of British India sponsored by the
Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July
1843) followed the Bank of Bengal. These three banks remained at the apex of modern
banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921.
Primarily Anglo-Indian creations, the three presidency banks came into existence either as a
result of the compulsions of imperial finance or by the felt needs of local European commerce
and were not imposed from outside in an arbitrary manner to modernize India's economy.
16

Their evolution was, however, shaped by ideas culled from similar developments in Europe
and England, and was influenced by changes occurring in the structure of both the local
trading environment and those in the relations of the Indian economy to the economy of
Europe and the global economic framework.

The

Imperial Bank during the three and a half decades of its

existence recorded an impressive growth in terms of
offices,

reserves,

deposits,

investments

and

advances, the increases in some cases amounting to

more than six-fold. The financial status and security
inherited from its forerunners no doubt provided a
firm and durable platform.
But the lofty traditions of banking which the Imperial Bank consistently maintained and the
high standard of integrity it observed in its operations inspired confidence in its depositors
that no other bank in India could perhaps then equal. All these enabled the Imperial Bank to
acquire a pre-eminent position in the Indian banking industry and also secure a vital place in
the country's economic life.
When India attained freedom, the Imperial Bank had a capital base (including reserves)
of Rs.11.85 crores, deposits and advances of Rs.275.14 crores and Rs.72.94 crores
respectively and a network of 172 branches and more than 200 sub offices extending all over
the country.
In 1951, when the First Five Year Plan was launched, the development of rural India
was given the highest priority. The commercial banks of the country including the Imperial
Bank of India had till then confined their operations to the urban sector and were not equipped
17

to respond to the emergent needs of economic regeneration of the rural areas. In order,
therefore, to serve the economy in general and the rural sector in particular, the All India
Rural Credit Survey Committee recommended the creation of a state-partnered and statesponsored bank by taking over the Imperial Bank of India, and integrating with it, the former
state-owned or state-associate banks. An act was accordingly passed in Parliament in May
1955 and the State Bank of India was constituted on 1 July 1955. More than a quarter of the
resources of the Indian banking system thus passed under the direct control of the State. Later,
the State Bank of India (Subsidiary Banks) Act was passed in 1959, enabling the State Bank
of India to take over eight former State-associated banks as its subsidiaries (later named
Associates).
The State Bank of India was thus born with a new sense of social purpose aided by the 480
offices comprising branches, sub offices and three Local Head Offices inherited from the
Imperial Bank. The concept of banking as mere repositories of the community's savings and
lenders to creditworthy parties was soon to give way to the concept of purposeful banking
subserving the growing and diversified financial needs of planned economic development.
The State Bank of India was destined to act as the pacesetter in this respect and lead the
Indian banking system into the exciting field of national development.
BOARD OF DIRECTORS:Shri Arun Kumar Purwar

Chairman

Shri K. Ashok Kini

Managing Director

Shri.T.S.Bhattacharya

Managing Director

Shri.K.P.Jhunjhunwala

Director

Prof. M.S. Swaminathan

Director

Shri.Ajay G.Piramal-

Director

Shri.Suman Kumar Bery

Dr. Ashok Junjhunwala

Director

Director

Shri.A.C.Kalita

Director

Shri. Amar Pal

Director
18

Shri.Arun Singh

Director

Shri.Rajiv Pandey

Director

Shri.Piyush Goyal

Director

Shri.Ashok K Jha

Director

Smt.Shyamala Gopinath

Director

ASSOCIATE BANKS:State Bank of India has the following seven Associate Banks (ABs) with controlling
interest ranging from 75% to 100%.
1.

State Bank of Bikaner and Jaipur (SBBJ)

2.

State Bank of Hyderabad (SBH)

3.

State Bank of Indore (SBIr)

4.

State Bank of Mysore (SBM)

5.

State Bank of Patiala (SBP)

6.

State Bank of Saurashtra (SBS)

7.

State Bank of Travancore (SBT)

The seven ABs have a combined network of 4596 branches in India which are fully
computerized and 1070 ATMs networked with SBI ATMs, providing value added services to
clientele.
The ABs recorded an impressive performance during 2003-04. The combined net profit of
these banks increased by 38% over the

19

previous year to reach Rs.1938 crores. Deposits and advances grew by 20% and 22%,
respectively, during the year. Three of the ABs viz. SBIr, SBP and SBS achieved NIL Net
NPA status while the combined Net NPA ratio of all ABs was at 0.84% as on 31st March
2004.

Syndicate Bank
HISTORY
Syndicate Bank was established in 1925 in Udupi, the abode of Lord Krishna in coastal
Karnataka with a capital of Rs.8000/- by three visionaries - Sri Upendra Ananth Pai, a
businessman, Sri Vaman Kudva, an engineer and Dr.T M A Pai, a physician - who shared a
strong commitment to social welfare. Their objective was primarily to extend financial
assistance to the local weavers who were crippled by a crisis in the handloom industry
through mobilising small savings from the community. The bank collected as low as 2 annas
daily at the doorsteps of the depositors through its Agents under its Pigmy Deposit Scheme
started in 1928. This scheme is the Bank's brand equity today and the Bank collects around
Rs. 2 crore per day under the scheme.
The progress of Syndicate Bank has been synonymous with the phase of progressive banking
in India. Spanning over 80 years of pioneering expertise, the Bank has created for itself a
solid customer base comprising customers of two or three generations. Being firmly rooted in
rural India and understanding the grassroot realities, the Bank's perception had vision of
future India. It has been propagating innovations in Banking and also has been receptive to
20

new ideas, without however getting uprooted from its distinctive socio-economic and cultural
ethos. Its philosophy of growth by mutual sustenance of both the Bank and the people has
paid rich dividends. The Bank has been operating as a catalyst of development across the
country with particular reference to the common man at the individual level and in rural/semi
urban centres at the area level.
The Bank is well equipped to meet the challenges of the 21st century in the areas of
information technology, knowledge and competition. A comprehensive IT plan is being put in
place and the skills and knowledge of the Bank's personnel are being upgraded through a
variety of training programmes to promote customer delight in every sphere of its activity.
The Bank has launched an ambitious technology plan called Centralised Banking Solution
(CBS) whereby 500 of our strategic branches with their ATMs are being networked
nationwide over a 4 year period.
Pigmy Deposit Scheme - Bank's Brand Equity

Launched in 1928 by Dr.T.M.A.Pai, one of the Founders to encourage the habit of

thrift and small savings. Pigmy Scheme symbolises the description of the Bank as "a
small man's big Bank" even today.

Bank collects as low as Rs.5 daily for 72 months at the doorsteps of 10.36 lac
depositors through its more than 4000 Pigmy agents.

Pigmy deposits of the Bank crossed Rs.1800 crore.

SHAREHOLDING PATTERNS:-

21

40%
CONTROLLING / STRATEGIC HOLDINGS

60%

FREE FLOAT

DOMESTIC/FOREIGN SHAREHOLDINGS:-

49%
TOTAL DOMESTIC HOLDINGS

51%
TOTAL FOREIGN HOLDINGS

22

1) Promoters Holdings:-

Rs.
UTI Trust

13%
24%
Life Insurance Corporation of India Ltd.
63%
GIC and 4 PSU Insurance companies

2) Non Promoters Holdings:-

Rs.

23%
Mutual Funds

2%
Banks & Insurance Companies
74%

23

FII's

3) Others:-

Rs.
Private Corporate
Bodies

76%

5% 19%
0%

Indian Public
NRIs/OCBs
Any Other (please
specify)-FDI Route

ICICI BANK:
ICICI Bank started as a wholly owned subsidiary of ICICI Limited, an Indian financial
institution, in 1994. Four years later, when the company offered ICICI Bank's shares to the
public, ICICI's shareholding was reduced to 46%. In the year 2000, ICICI Bank offered made
an equity offering in the form of ADRs on the New York Stock Exchange (NYSE), thereby
becoming the first Indian company and the first bank or financial institution from non-Japan
Asia to be listed on the NYSE. In the next year, it acquired the Bank of Madura Limited in an
all-stock amalgamation. Later in the year and the next fiscal year, the bank made secondary
market sales to institutional investors.
24

With a change in the corporate structure and the budding competition in the Indian Banking
industry, the management of both ICICI and ICICI Bank were of the opinion that a merger
between the two entities would prove to be an essential step. It was in 2001 that the Boards of
Directors of ICICI and ICICI Bank sanctioned the amalgamation of ICICI and two of its
wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and
ICICI Capital Services Limited, with ICICI Bank. In the following year, the merger was
approved by its shareholders, the High Court of Gujarat at Ahmadabad as well as the High
Court of Judicature at Mumbai and the Reserve Bank of India.

Present Scenario
ICICI Bank has its equity shares listed in India on Bombay Stock Exchange and the National
Stock Exchange of India Limited. Overseas, its American Depositary Receipts (ADRs) are
listed on the New York Stock Exchange (NYSE). As of December 31, 2008, ICICI is India's
second-largest bank, boasting an asset value of Rs. 3,744.10 billion and profit after tax Rs.
30.14 billion, for the nine months, that ended on December 31, 2008.

Branches & ATMs

ICICI Bank has a wide network both in Indian and abroad. In India alone, the bank has 1,420
branches and about 4,644 ATMs. Talking about foreign countries, ICICI Bank has made its
presence felt in 18 countries - 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. The Bank
proudly holds its subsidiaries in the United Kingdom, Russia and Canada out of which, the
UK subsidiary has established branches in Belgium and Germany.

Products & Services

25

Personal Banking

Deposits

Loans

Cards

Investments

Insurance

Demat Services

Wealth Management

NRI Banking

Money Transfer

Bank Accounts

Investments

Property Solutions

Insurance

Loans

Business Banking
26

Corporate Net Banking

Cash Management

Trade Services

FXOnline

SME Services

Online Taxes

Custodial Services

ANDHRA BANK
Andhra Bank is an Indian bank based in Hyderabad. The bank was established in the year
1923, and its founder was Dr. Bhogaraju Pattabhi Sitaramayya, a well known freedom fighter.
The initial authorized capital of the bank was Rs. 10.00 lacs, while the paid up capital was Rs.
1.00 lac at the time of its registration.
Financial Details
Total Business volume of the bank in the third quarter of the 2008-09 financial year stood at
Rs. 95, 822 Crores, while the Total Deposit volume during the same tenure was Rs. 53,795
Crores.
As of 31st of December, 2008, Andhra Bank had a client base of more than 18.5 Million
customers with 2194 Business Delivery Channels. Till the same date, the bank had 1,410
branches spread across 22 states and 2 Union Territories, out of which 1,067 branches have
been enabled with Centralized Core Banking Solution (CBS). While the total number of
ATMs summed up to 685, the bank had a Per Employee Productivity of Rs 6.92 Crore.
Products And Schemes

27

Apart from regular banking services and solutions, Andhra Bank has introduced some
attractive services such as AB Premium Current Account and AB Privilege Corporate Salary
Savings Bank Account with extra benefits to the customers. Also, the bank has launched AB
Saral Housing Loan scheme featuring housing loans upto Rs. 20 Lacs.
Andhra Bank has also partnered with various financial institutions like Kotak Mahindra,
Reliance, Birla Sun Life Mutual Fund and Fidelity Mutual Fund, assisting them in sales of
their Mutual Fund products. The bank has also signed a Memorandum of Understanding
(MoU) with Maruti Suzuki Ltd. for financing 4 wheeler vehicles.
Pioneering Efforts
Andhra Bank is the first bank in India to have launched mobile biometric ATMs. These ATMs
stop at predestinated sites, and instead of entering the personal identification number (PIN),
the customers have to match their finger prints with their recorded finger prints in the bank
database. This has enabled even the illiterate or uneducated customers of the bank to enjoy the
ATM facility being offered by the bank.
Social Activities
As an initiative to empower the society, the bank has established 10 Rural Training Institutes,
which have provided training to 76,300 candidates for getting successfully self employed. The
institutes offer free training, lodging, boarding facilities coupled with to and fro travel
expenditure to the candidates undergoing the training programmes
Products & Services
Personal Banking

Deposits

Loans

Cards

28

Investments

Insurance

Demat Services

Wealth Management

Business Banking

Corporate Net Banking

Cash Management

Trade Services

ME Services

Online Taxes

Custodial Services

29

RS.
PROMOT ERS

FIIS

17%

BODIES CORPORAT ES

RESIDENT INDIVIDUALS

IFI'S

MUT UAL FUNDS

1%1%0% 0% 0% 0% 0% 0% 0%
7% 4%
3%
NRIS

EMPLOYEES

BANKS

CLEARING MEMBERS

67%

HUF

OCBs T RUST S

T RANSIT

SHARE
HOLDING PATTERN OF ANDHRA BANK

30

CHAPTER-III
INDUSTRY PROFILE
&
COMPANY PROFILE

31

INDUSTRY PROFILE
For the Indian investors, the year belonged to stock markets, which have been shining bright
when it comes to generating wealth, while the glitter of gold and silver faded for the second
straight year in 2013.
Measured by BSE Sensex, stock market has generated a positive return of about 9 per cent for
investors in 2013, while gold prices fell by about three per cent and its poorer cousin silver
plummeted close to 24 per cent.
After outperforming stock market for more than a decade, gold has been on back foot for two
consecutive years now vis-a-vis equities, shows an analysis of their price movements.
"Gold's under-performance was mainly due to prices falling in dollar terms amid anticipated
tapering over last several months combined with FII investment in Indian stocks.
"This movement has been equally true for global markets as 2013 saw gold losing its shine
and markets coming back with a bang," said Jayant Manglik, President Retail Distribution,
Religare Securities.
"As always, gold and stock prices follow opposite trends and this year was no different except
that both changed direction," he said.
Improvement in the world economy has brought the risk appetite back amongst retail
investors and this has drenched the liquidity from safe havens such as gold leading to its
under-performance, an expert said.
In 2012, the Sensex had gained over 25 per cent, which was nearly double the gain of about
12.95 per cent in gold. The appreciation in silver was at about 12.84 per last year.
32

According to Hiren Dhakan, Associate Fund Manager, Bonanza Portfolio, "Markets have
particularly shown great strength post July-August 2013 when RBI took some strong
measures to control the steeply depreciating rupee."
"When the US Fed gave indications that it might taper its stimulus programme given the
economy shows improvement, a knee-jerk correction was seen in most risky assets, including
stocks in Indian markets. However, assurance by the Fed about planned and staggered
tapering in stimulus once again proved to be a catalyst for the markets."

"External factors affecting Indian stocks seem to be negative for the first half of 2014 due to
continued strength of the US dollar and benign in the second half. By that time, elections too
would have taken place. A combination of domestic and international factors point to a
bumper closing of Indian markets in 2014 with double-digit percentage growth," he said.
Stock market segment mid-cap and small-cap indices have fallen by about 10 per cent and 16
per cent, respectively, in 2013.
Foreign Institutional Investors have bought shares worth over Rs 1.1 lakh crore (nearly USD
20 billion) till December 19. In 2012, they had pumped in Rs 1.28 lakh crore (USD 24.37
billion).

Evolution
Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years
ago. The earliest records of security dealings in India are meager and obscure. The East India
Company was the dominant institution in those days and business in its loan securities used to
be transacted towards the close of the eighteenth century.
By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in
Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers
recognized by banks and merchants during 1840 and 1850.

33

The 1850's witnessed a rapid development of commercial enterprise and brokerage business
attracted many men into the field and by 1860 the number of brokers increased into 60.
In 1860-61 the American Civil War broke out and cotton supply from United States of Europe
was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased to about
200 to 250. However, at the end of the American Civil War, in 1865, a disastrous slump began
(for example, Bank of Bombay Share which had touched Rs 2850 could only be sold at Rs.
87).
At the end of the American Civil War, the brokers who thrived out of Civil War in 1874,
found a place in a street (now appropriately called as Dalal Street) where they would
conveniently assemble and transact business. In 1887, they formally established in Bombay,
the "Native Share and Stock Brokers' Association" (which is alternatively known as " The
Stock Exchange "). In 1895, the Stock Exchange acquired a premise in the same street and it
was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated.
Other leading cities in stock market operations
Ahmadabad gained importance next to Bombay with respect to cotton textile industry. After
1880, many mills originated from Ahmadabad and rapidly forged ahead. As new mills were
floated, the need for a Stock Exchange at Ahmadabad was realized and in 1894 the brokers
formed "The Ahmadabad Share and Stock Brokers' Association".
What the cotton textile industry was to Bombay and Ahmadabad, the jute industry was to
Calcutta. Also tea and coal industries were the other major industrial groups in Calcutta. After
the Share Mania in 1861-65, in the 1870's there was a sharp boom in jute shares, which was
followed by a boom in tea shares in the 1880's and 1890's; and a coal boom between 1904 and
1908. On June 1908, some leading brokers formed "The Calcutta Stock Exchange
Association".
In the beginning of the twentieth century, the industrial revolution was on the way in India
with the Swadeshi Movement; and with the inauguration of the Tata Iron and Steel Company

34

Limited in 1907, an important stage in industrial advancement under Indian enterprise was
reached.
Indian cotton and jute textiles, steel, sugar, paper and flour mills and all companies generally
enjoyed phenomenal prosperity, due to the First World War.
In 1920, the then demure city of Madras had the maiden thrill of a stock exchange functioning
in its midst, under the name and style of "The Madras Stock Exchange" with 100 members.
However, when boom faded, the number of members stood reduced from 100 to 3, by 1923,
and so it went out of existence.
In 1935, the stock market activity improved, especially in South India where there was a rapid
increase in the number of textile mills and many plantation companies were floated. In 1937,
a stock exchange was once again organized in Madras - Madras Stock Exchange Association
(Pvt) Limited. (In 1957 the name was changed to Madras Stock Exchange Limited).
Lahore Stock Exchange was formed in 1934 and it had a brief life. It was merged with the
Punjab Stock Exchange Limited, which was incorporated in 1936.

Indian Stock Exchanges - An Umbrella Growth

The Second World War broke out in 1939. It gave a sharp boom which was followed by a
slump. But, in 1943, the situation changed radically, when India was fully mobilized as a
supply base.
On account of the restrictive controls on cotton, bullion, seeds and other commodities, those
dealing in them found in the stock market as the only outlet for their activities. They were
anxious to join the trade and their number was swelled by numerous others. Many new
associations were constituted for the purpose and Stock Exchanges in all parts of the country
were floated.
The Uttar Pradesh Stock Exchange Limited (1940), Nagpur Stock Exchange Limited (1940)
and Hyderabad Stock Exchange Limited (1944) were incorporated.

35

In Delhi two stock exchanges - Delhi Stock and Share Brokers' Association Limited and the
Delhi Stocks and Shares Exchange Limited - were floated and later in June 1947,
amalgamated into the Delhi Stock Exchnage Association Limited.

Post-independence Scenario
Most of the exchanges suffered almost a total eclipse during depression. Lahore Exchange
was closed during partition of the country and later migrated to Delhi and merged with Delhi
Stock Exchange.
Bangalore Stock Exchange Limited was registered in 1957 and recognized in 1963. Most of
the other exchanges languished till 1957 when they applied to the Central Government for
recognition under the Securities Contracts (Regulation) Act, 1956. Only Bombay, Calcutta,
Madras, Ahmadabad, Delhi, Hyderabad and Indore, the well established exchanges, were
recognized under the Act. Some of the members of the other Associations were required to be
admitted by the recognized stock exchanges on a concessional basis, but acting on the
principle of unitary control, all these pseudo stock exchanges were refused recognition by the
Government of India and they thereupon ceased to function.
Thus, during early sixties there were eight recognized stock exchanges in India (mentioned
above). The number virtually remained unchanged, for nearly two decades. During eighties,
however, many stock exchanges were established: Cochin Stock Exchange (1980), Uttar
Pradesh Stock Exchange Association Limited (at Kanpur, 1982), and Pune Stock Exchange
Limited (1982), Ludhiana Stock Exchange Association Limited (1983), Gauhati Stock
Exchange Limited (1984), Kanara Stock Exchange Limited (at Mangalore, 1985), Magadh
Stock Exchange Association (at Patna, 1986), Jaipur Stock Exchange Limited (1989),
Bhubaneswar Stock Exchange Association Limited (1989), Saurashtra Kutch Stock Exchange
Limited (at Rajkot, 1989), Vadodara Stock Exchange Limited (at Baroda, 1990) and recently
established exchanges - Coimbatore and Meerut. Thus, at present, there are totally twenty one
recognized stock exchanges in India excluding the Over The Counter Exchange of India
Limited (OTCEI) and the National Stock Exchange of India Limited (NSEIL).

36

The Table given below portrays the overall growth pattern of Indian stock markets since
independence. It is quite evident from the Table that Indian stock markets have not only
grown just in number of exchanges, but also in number of listed companies and in capital of
listed companies. The remarkable growth after 1985 can be clearly seen from the Table, and
this was due to the favouring government policies towards security market industry.

Trading Pattern of the Indian Stock Market

Trading in Indian stock exchanges are limited to listed securities of public limited companies.
They are broadly divided into two categories, namely, specified securities (forward list) and
non-specified securities (cash list). Equity shares of dividend paying, growth-oriented
companies with a paid-up capital of atleast Rs.50 million and a market capitalization of atleast
Rs.100 million and having more than 20,000 shareholders are, normally, put in the specified
group and the balance in non-specified group.
Two types of transactions can be carried out on the Indian stock exchanges: (a) spot delivery
transactions "for delivery and payment within the time or on the date stipulated when entering
into the contract which shall not be more than 14 days following the date of the contract" :
and (b) forward transactions "delivery and payment can be extended by further period of 14
days each so that the overall period does not exceed 90 days from the date of the contract".
The latter is permitted only in the case of specified shares. The brokers who carry over the
outstandings pay carry over charges (cantango or backwardation) which are usually
determined by the rates of interest prevailing.

37

A member broker in an Indian stock exchange can act as an agent, buy and sell securities for
his clients on a commission basis and also can act as a trader or dealer as a principal, buy and
sell securities on his own account and risk, in contrast with the practice prevailing on New
York and London Stock Exchanges, where a member can act as a jobber or a broker only.
The nature of trading on Indian Stock Exchanges are that of age old conventional style of
face-to-face trading with bids and offers being made by open outcry. However, there is a great
amount of effort to modernize the Indian stock exchanges in the very recent times.

Over The Counter Exchange of India (OTCEI)

The traditional trading mechanism prevailed in the Indian stock markets gave way to many
functional inefficiencies, such as, absence of liquidity, lack of transparency, unduly long
settlement periods and benami transactions, which affected the small investors to a great
extent. To provide improved services to investors, the country's first ringless, scripless,
electronic stock exchange - OTCEI - was created in 1992 by country's premier financial
institutions - Unit Trust of India, Industrial Credit and Investment Corporation of India,
Industrial Development Bank of India, SBI Capital Markets, Industrial Finance Corporation
of India, General Insurance Corporation and its subsidiaries and CanBank Financial Services.
Trading at OTCEI is done over the centres spread across the country. Securities traded on the
OTCEI are classified into:

Listed Securities - The shares and debentures of the companies listed on the OTC can
be bought or sold at any OTC counter all over the country and they should not be
listed anywhere else
38

Permitted Securities - Certain shares and debentures listed on other exchanges and
units of mutual funds are allowed to be traded

Initiated debentures - Any equity holding atleast one lakh debentures of a particular
scrip can offer them for trading on the OTC.

OTC has a unique feature of trading compared to other traditional exchanges. That is,
certificates of listed securities and initiated debentures are not traded at OTC. The original
certificate will be safely with the custodian. But, a counter receipt is generated out at the
counter which substitutes the share certificate and is used for all transactions.
In the case of permitted securities, the system is similar to a traditional stock exchange. The
difference is that the delivery and payment procedure will be completed within 14 days.
Compared to the traditional Exchanges, OTC Exchange network has the following
advantages:

OTCEI has widely dispersed trading mechanism across the country which provides
greater liquidity and lesser risk of intermediary charges.

Greater transparency and accuracy of prices is obtained due to the screen-based

scripless trading.

Since the exact price of the transaction is shown on the computer screen, the investor
gets to know the exact price at which s/he is trading.

Faster settlement and transfer process compared to other exchanges.

In the case of an OTC issue (new issue), the allotment procedure is completed in a
month and trading commences after a month of the issue closure, whereas it takes a
longer period for the same with respect to other exchanges.

Thus, with the superior trading mechanism coupled with information transparency investors
are gradually becoming aware of the manifold advantages of the OTCEI.
39

National Stock Exchange (NSE)

With the liberalization of the Indian economy, it was found inevitable to lift the Indian stock
market trading system on par with the international standards. On the basis of the
recommendations of high powered Pherwani Committee, the National Stock Exchange was
incorporated in 1992 by Industrial Development Bank of India, Industrial Credit and
Investment Corporation of India, Industrial Finance Corporation of India, all Insurance
Corporations, selected commercial banks and others.
Trading at NSE can be classified under two broad categories:
(a) Wholesale debt market and
(b) Capital market.
Wholesale debt market operations are similar to money market operations - institutions and
corporate bodies enter into high value transactions in financial instruments such as
government securities, treasury bills, public sector unit bonds, commercial paper, certificate
of deposit, etc.
There are two kinds of players in NSE:
(a) trading members and
(b) participants.
Recognized members of NSE are called trading members who trade on behalf of themselves
and their clients. Participants include trading members and large players like banks who take
direct settlement responsibility.
Trading at NSE takes place through a fully automated screen-based trading mechanism which
adopts the principle of an order-driven market. Trading members can stay at their offices and
execute the trading, since they are linked through a communication network. The prices at
which the buyer and seller are willing to transact will appear on the screen. When the prices
40

match the transaction will be completed and a confirmation slip will be printed at the office of
the trading member.
NSE has several advantages over the traditional trading exchanges. They are as follows:

NSE brings an integrated stock market trading network across the nation.

Investors can trade at the same price from anywhere in the country since inter-market
operations are streamlined coupled with the countrywide access to the securities.

Delays in communication, late payments and the malpractices prevailing in the

traditional trading mechanism can be done away with greater operational efficiency
and informational transparency in the stock market operations, with the support of
total computerized network.

Unless stock markets provide professionalized service, small investors and foreign investors
will not be interested in capital market operations. And capital market being one of the major
source of long-term finance for industrial projects, India cannot afford to damage the capital
market path. In this regard NSE gains vital importance in the Indian capital market system.

Preamble
Often, in the economic literature we find the terms development and growth are used
interchangeably. However, there is a difference. Economic growth refers to the sustained
increase in per capita or total income, while the term economic development implies sustained
structural change, including all the complex effects of economic growth. In other words,
growth is associated with free enterprise, where as development requires some sort of control
and regulation of the forces affecting development. Thus, economic development is a process
and growth is a phenomenon.
Economic planning is very critical for a nation, especially a developing country like India to
take the country in the path of economic development to attain economic growth.

41

Why Economic Planning for India?

One of the major objective of planning in India is to increase the rate of economic
development, implying that increasing the rate of capital formation by raising the levels of
income, saving and investment. However, increasing the rate of capital formation in India is
beset with a number of difficulties. People are poverty ridden. Their capacity to save is
extremely low due to low levels of income and high propensity to consume. Therefor, the rate
of investment is low which leads to capital deficiency and low productivity. Low productivity
means low income and the vicious circle continues. Thus, to break this vicious economic
circle, planning is inevitable for India.
The market mechanism works imperfectly in developing nations due to the ignorance and
unfamiliarity with it. Therefore, to improve and strengthen market mechanism planning is
very vital. In India, a large portion of the economy is non-monitised; the product, factors of
production, money and capital markets is not organized properly. Thus the prevailing price
mechanism fails to bring about adjustments between aggregate demand and supply of goods
and services. Thus, to improve the economy, market imperfections has to be removed;
available resources has to be mobilized and utilized efficiently; and structural rigidities has to
be overcome. These can be attained only through planning.
In India, capital is scarce; and unemployment and disguised unemployment is prevalent. Thus,
where capital was being scarce and labour being abundant, providing useful employment
opportunities to an increasing labour force is a difficult exercise. Only a centralized planning
model can solve this macro problem of India.
Further, in a country like India where agricultural dependence is very high, one cannot ignore
this segment in the process of economic development. Therefore, an economic development
model has to consider a balanced approach to link both agriculture and industry and lead for a
paralleled growth. Not to mention, both agriculture and industry cannot develop without
adequate infrastructural facilities which only the state can provide and this is possible only
through a well carved out planning strategy. The governments role in providing infrastructure
is unavoidable due to the fact that the role of private sector in infrastructural development of
42

India is very minimal since these infrastructure projects are considered as unprofitable by the
private sector.
Further, India is a clear case of income disparity. Thus, it is the duty of the state to reduce the
prevailing income inequalities. This is possible only through planning.
Planning History of India
The development of planning in India began prior to the first Five Year Plan of independent
India, long before independence even. The idea of central directions of resources to overcome
persistent poverty gradually, because one of the main policies advocated by nationalists early
in the century. The Congress Party worked out a program for economic advancement during
the 1920s, and 1930s and by the 1938 they formed a National Planning Committee under the
chairmanship of future Prime Minister Nehru. The Committee had little time to do anything
but prepare programs and reports before the Second World War which put an end to it. But it
was already more than an academic exercise remote from administration. Provisional
government had been elected in 1938, and the Congress Party leaders held positions of
responsibility. After the war, the Interim government of the pre-independence years appointed
an Advisory Planning Board. The Board produced a number of somewhat disconnected Plans
itself. But, more important in the long run, it recommended the appointment of a Planning
Commission.
The Planning Commission did not start work properly until 1950. During the first three years
of independent India, the state and economy scarcely had a stable structure at all, while
millions of refugees crossed the newly established borders of India and Pakistan, and while
ex-princely states (over 500 of them) were being merged into India or Pakistan. The Planning
Commission as it now exists, was not set up until the new India had adopted its Constitution
in January 1950.
Objectives of Indian Planning
The Planning Commission was set up the following Directive principles :

43

To make an assessment of the material, capital and human resources of the country,
including technical personnel, and investigate the possibilities of augmenting such of
these resources as are found to be deficient in relation to the nations requirement.

To formulate a plan for the most effective and balanced use of the countrys resources.

Having determined the priorities, to define the stages in which the plan should be
carried out, and propose the allocation of resources for the completion of each stage.

To indicate the factors which are tending to retard economic development, and
determine the conditions which, in view of the current social and political situation,
should be established for the successful execution of the Plan.

To determine the nature of the machinery this will be necessary for securing the
successful implementation of each stage of Plan in all its aspects.

To appraise from time to time the progress achieved in the execution of each stage of
the Plan and recommend the adjustments of policy and measures that such appraisals
may show to be necessary.

To make such interim or auxiliary recommendations as appear to it to be appropriate

either for facilitating the discharge of the duties assigned to it or on a consideration of
the prevailing economic conditions, current policies, measures and development
programs; or on an examination of such specific problems as may be referred to it for
advice by Central or State Governments.

The long-term general objectives of Indian Planning are as follows:

Increasing National Income

Reducing inequalities in the distribution of income and wealth

Elimination of poverty
44

Providing additional employment; and

Alleviating bottlenecks in the areas of : agricultural production, manufacturing

capacity for producers goods and balance of payments.

Economic growth, as the primary objective has remained in focus in all Five Year Plans.
Approximately, economic growth has been targeted at a rate of five per cent per annum. High
priority to economic growth in Indian Plans looks very much justified in view of long period
of stagnation during the British rule

COMPANY PROFILE
About IIFL
The IIFL (India Infoline) group, comprising the holding company, India Infoline Ltd (NSE:
INDIAINFO, BSE: 532636) and its subsidiaries, is one of the leading players in the Indian
financial services space. IIFL offers advice and execution platform for the entire range of
financial services covering products ranging from Equities and derivatives, Commodities,
Wealth management, Asset management, Insurance, Fixed deposits, Loans, Investment
Banking, GoI bonds and other small savings instruments. IIFL recently received an inprinciple approval for Securities Trading and Clearing memberships from Singapore
Exchange (SGX) paving the way for IIFL to become the first Indian brokerage to get a
membership of the SGX. IIFL also received membership of the Colombo Stock Exchange
becoming the first foreign broker to enter Sri Lanka. IIFL owns and manages the website,

45

www.indiainfoline.com, which is one of Indias leading online destinations for personal

finance, stock markets, economy and business.
IIFL has been awarded the Best Broker, India by FinanceAsia and the Most improved
brokerage, India in the AsiaMoney polls. India Infoline was also adjudged as Fastest
Growing Equity Broking House - Large firms by Dun & Bradstreet. A forerunner in the field
of equity research, IIFLs research is acknowledged by none other than Forbes as Best of the
Web and a must read for investors in Asia. Our research is available not just over the
Internet but also on international wire services like Bloomberg, Thomson First Call and
Internet Securities where it is amongst one of the most read Indian brokers. A network of over
2,500 business locations spread over more than 500 cities and towns across India facilitates
the smooth acquisition and servicing of a large customer base. All our offices are connected
with the corporate office in Mumbai with cutting edge networking technology. The group
caters to a customer base of about a million customers, over a variety of mediums viz. online,
over the phone and at our branches.

History & Milestones

1995

Commenced operations as an Equity Research firm

1997

Launched research products of leading Indian companies, key sectors and the economy
Client included leading FIIs, banks and companies.

46

1999

Launched www.indiainfoline.com

2000

Launched online trading through www.5paisa.com Started distribution of life insurance

and mutual fund

2003

Launched proprietary trading platform Trader Terminal for retail customers

2004

Acquired commodities broking license

Launched Portfolio Management Service

2005

Maiden IPO and listed on NSE, BSE

2006

47

Acquired membership of DGCX

Commenced the lending business

2007

Commenced institutional equities business under IIFL

Formed Singapore subsidiary, IIFL (Asia) Pte Ltd

2008

Launched IIFL Wealth

Transitioned to insurance broking model

2009

Acquired registration for Housing Finance

SEBI in-principle approval for Mutual Fund
Obtained Venture Capital license

2010

Received in-principle approval for membership of the Singapore Stock Exchange

Received membership of the Colombo Stock Exchange
2011
Launchied IIFL mutual funds

48

49

Board of directors

Mr. Nirmal Jain

Chairman & Managing Director , India Infoline Ltd.

Mr. Nirmal Jain is the founder and Chairman of India Infoline Ltd. He is a PGDM (Post
Graduate Diploma in Management) from IIM (Indian Institute of Management) Ahmedabad, a
Chartered Accountant and a rank-holder Cost Accountant. His professional track record is
equally outstanding. He started his career in 1989 with Hindustan Lever Limited, the Indian
arm of Unilever. During his stint with Hindustan Lever, he handled a variety of
responsibilities, including export and trading in agro-commodities. He contributed immensely
towards the rapid and profitable growth of Hindustan Levers commodity export business,
which was then the nations as well as the Companys top priority.

He founded Probity Research and Services Pvt. Ltd. (later re-christened India Infoline) in
1995; perhaps the first independent equity research Company in India. His work set new
50

standards for equity research in India. Mr. Jain was one of the first entrepreneurs in India to
seize the internet opportunity, with the launch of www.indiainfoline.com in 1999. Under his
leadership, India Infoline not only steered through the dotcom bust and one of the worst stock
market downtrends but also grew from strength to strength.

Mr. R. Venkataraman

Executive Director , India Infoline Ltd.

Mr. R Venkataraman, Co-Promoter and Executive Director of India Infoline Ltd, is a B.Tech
(electronics and electrical communications engineering, IIT Kharagpur) and an MBA (IIM
Bangalore). He joined the India Infoline Board in July 1999. He previously held senior
managerial positions in ICICI Limited, including ICICI Securities Limited, their investment
banking joint venture with J P Morgan of US, BZW and Taib Capital Corporation Limited. He
was also the Assistant Vice President with G E Capital Services India Limited in their private
equity division, possessing a varied experience of more than 19 years in the financial services
sector
Mr. Nilesh Vikamsey

51

Independent Director , India Infoline Ltd.

Mr. Nilesh Vikamsey Board Member since February 2005 - is a practicing Chartered
Accountant for 25 years and Senior Partner at M/s Khimji Kunverji & Co., Chartered
Accountants, a member firm of HLB International, a world-wide organisation of professional
accounting firms and business advisers, ranked amongst the top 12 accounting groups in the
world. Mr. Vikamsey headed the audit department till 1990 and thereafter also handled
financial services, consultancy, investigations, mergers and acquisitions, valuations and due
diligence, among others. He is elected member of the Central Council of Institute of
Chartered Accountant of India (ICAI), the Apex decision making body of the second largest
accounting body in the world, 20102013.

He is on the ICAI study group member for the introduction of the Accounting Standard 30
on financial instruments recognition and management. Convener of the Study group
Formed by ASB of ICAI to formulate comments on various Exposure Drafts, Discussion
Papers and other matters pertaining to IFRS originating from IASB, Representative of the
Institute of Chartered Accountants of India on the Committee for Improvement in
Transparency, Accountability and Governance(ITAG) of South Asian Federation of
Accountants (SAFA), Member of Executive Committee & IFRS Implementation Committee
of WIRC of Institute of Chartered Accountant of India (ICAI), Accounting and Auditing
Committee of Bombay Chartered Accountant Society (BCAS) and also on its Core Group,
member of Review, Reforms & Rationalisation Committee, IPR Committee of Bombay
Chamber of Commerce and Industry (BCCI), Member of Legal Affairs Committee of
Bombay Chamber of Commerce and Industry(BCCI), Corporate Members Committee of The
52

Chamber of Tax Consultants (CTC), Regular Contributor to WIRC Annual Referencer on

Bank Branch Audit, Study/ Sub Group formed by ICAI for Considering Developments on
Fair Value Accounting (AS 30) post Sub Prime crisis, Sub Group formed by ICAI for
approaching the Government and Regulatory Authorities for Convergence with IFRS.

He is also a Vice Chairman of Financial Reporting Review Board Accounting Standard Board
and Member of Accounting Standard Board and various other Standing and Non Standing
Committees. Mr. Vikamsey is also a Director of Miloni Consultants Private Limited, HLB
Offices and Services Private Limited, Trunil Properties Private Limited, BarKat Properties
Private Limited and India Infoline Investment Services Limited.

Mr. Kranti Sinha

Independent Director , India Infoline Ltd.

Mr. Kranti Sinha Board member since January 2005 completed his masters from the
Agra University and started his career as a Class I Officer with Life Insurance Corporation of
India. He served as the Director and Chief Executive of LIC Housing Finance Limited from
August 1998 to December 2002 and concurrently as the Managing Director of LICHFL Care
Homes (a wholly-owned subsidiary of LIC Housing Finance Limited). He retired from the
53

permanent cadre of the Executive Director of LIC; served as the Deputy President of the
Governing Council of Insurance Institute of India and as a member of the Governing Council
of National Insurance Academy, Pune apart from various other such bodies. Mr. Sinha is also
on the Board of Directors of Hindustan Motors Limited and Cinemax (India) Limited.

Mr. A. K. Purwar

Independent Director , India Infoline Ltd.

Mr. Purwar is currently the Chairman of IndiaVenture Advisors Pvt. Ltd., investment manager
to IndiaVenture Trust Fund I, the healthcare and life sciences focussed private equity fund
sponsored by the Piramal Group. He has also taken over as the Chairman of IL & FS
Renewable Energy Limited in March 2008 and India Infoline Investment Services Ltd in
November 2009. He is working as Independent Director in leading companies in Telecom,
Steel, Textiles, Power, Auto components, Renewable Energy, Engineering Consultancy,
Financial Services and Healthcare Services. He is an Advisor to Mizuho Securities in Japan
and is also a member of Advisory Board for Institute of Indian Economic Studies (IIES),
Waseda University, Tokyo, Japan.
Mr. Purwar was the Chairman of State Bank of India, the largest bank in the country from
November 02 to May 06 and held several important and critical positions like Managing
Director of State Bank of Patiala, Chief Executive Officer of the Tokyo branch covering

54

almost the entire range of commercial banking operations in his illustrious career at the bank
from 1968 to 2006. Mr. Purwar also worked as Chairman of Indian Bank Association during
2005 2006. Mr. Purwar has received the CEO of the year Award from the Institute for
Technology & Management (2004); Outstanding Achiever of the year Award from Indian
Banks Association (2004); Finance Man of the Year Award by the Bombay Management
Association in 2006.

IIFLs philosophy on Corporate Governance

IIFL (India Infoline) is committed to placing the Investor First, by continuously striving to
increase the efficiency of the operations as well as the systems and processes for use of
corporate resources in such a way so as to maximize the value to the stakeholders. The Group
aims at achieving not only the highest possible standards of legal and regulatory compliances,
but also of effective management.
Audit Committee
Terms of reference & Composition, Name of members and Chairman: The Audit committee
comprises Mr Nilesh Vikamsey (Chairman), Mr Sat Pal Khattar, Mr Kranti Sinha, three of
whom are independent Directors. The Managing Director, the Executive Director along with
the Statutory and Internal Auditors are invitees to the Meeting. The Terms of reference of this
committee are as under: - To investigate into any matter that may be prescribed under the
provisions of Section 292A of The Companies Act, 1956 - Recommendation and removal of
External Auditor and fixation of the Audit Fees. - Reviewing with the management the
financial statements before submission of the same to the Board. - Overseeing of Companys
financial reporting process and disclosure of its financial information. - Reviewing the
Adequacy of the Internal Audit Function.

55

Compensation/ Remuneration Committee

Terms of reference & Composition, Name of members and Chairman: The Compensation /
Remuneration Committee comprises Mr Kranti Sinha (Chairman), Mr Nilesh Vikamsey and
Mr. Sat Pal Khattar all of whom are independent Directors. The Terms of reference of this
committee are as under: - To fix suitable remuneration package of all the Executive Directors
and Non Executive Directors, Senior Employees and officers i.e. Salary, perquisites, bonuses,
stock options, pensions etc. - Determination of the fixed component and performance linked
incentives alongwith the performance criteria to all employees of the company - Service
Contracts, Notice Period, Severance Fees of Directors and employees. - Stock Option details:
whether to be issued at discount as well as the period over which to be accrued and over
which exercisable. - To conduct discussions with the HR department and form suitable
remuneration policies.
Share Transfer and Investor Grievance Committee
Details of the Members, Compliance Officer, No of Complaints received and pending and
pending transfers as on close of the financial year. The committee functions under the
Chairmanship of Mr Kranti Sinha, a Non-executive independent Director. The other Members
of the committee are Mr. Nirmal Jain and Mr. R Venkataraman. Ms Sunil Lotke, Company
Secretary is the Compliance Officer of the Company.
In line with our vision to be the most respected company in the financial services space,
we recognize the importance of contributing to and sustaining social transformation.
With this end in mind, we have setup the IIFL foundation, which will work for the
support and upliftment of the underprivileged sections of society.
The IIFL Foundation focuses on specific areas of need such as healthcare and education, the
foundation will screen and select institutions and developmental agencies which are working
in these domains and will provide necessary aid to improve the lives of the underprivileged
and help them in achieving their potential.Some of the activities undertaken by the IIFL
Foundation:
56

Barsana eye camp

The IIFL Foundation sponsored an eye and dental camp held in February, 2010 with the
support of expert doctors and surgeons from the Bhaktivedanta Hospital in Barsana near
Mathura. While over 2,600 people underwent eye tests and over 800 were selected for free
eye surgery, a total of over 1,800 dental procedures like extraction, scaling and filling, among
others, were performed.
Team IIFL provided its whole-hearted support to this noble cause and will continue to do so in
the future

Pandharpur medical camp

The IIFL Foundation sponsored the Pandharpur medical camp which was held by the
Bhaktivedanta Hospital in July 2010 at Pandharpur. Free medical treatment was given at 4
camp sites, to approximately 49,815 pilgrims who had come to Pandharpur during Ashadi
Ekadashi. The pilgrims were treated for fever, injuries, fractures, gastroenteritis, myalagia,
headache,

epilepsy,

malaria,

respiratory

infections

etc,

during

the

camp.

Blood donation drive

IIFL regularly organizes blood donation drives via camps at its various locations across India.
Over 800 employees have participated in these camps.

57

CHAPTER-IV
DATA ANALYSES AND INTERPRETATION

58

Data Analysis & Interpretation:

Fundamental Analasys of selected private banks vs public sector banks with database
fy2011-2015
i.e SBI
SYNDICATE BANK
ICICI
HDFC
PARTICULARS OF
TABLE& GRAPHS

SR.NO
1
2
3
4
5
6
7
8
9
10
11
12

Table shows total Assets of

all above Banks
Table shows Capital of the various Banks
Table shows Networth of Banks
Table shows Deposits of Banks
Table shows Advances of Banks
Table shows Investments of Banks
Table shows Net Profit of Banks
Table shows Total Income of Banks
Table shows Interest Income of Banks
Table shows Other Income of Banks
Table shows Total Liabilities of Banks
Graph Indicating Inflation Data
59

PAGE NO.
58
59
60
61
62
63
64
65
66
67
68
69 70

TOTAL ASSETS:
BANKS
2015
(in
Rs.
Crore)

2014

2013

2012

2011

SBI

1,566,261.03 1335519.22

1223736.20

1053413.73

964432.08

Syndicate
bank

215122.33

182468.07

156538.79

139050.95

130255.67

ICICI

536794.69

473647.10

406233.67

363399.72

379300.96

HDFC

400331.90

337909.51

277352.60

222458.56

183270.77

60

BANKS
Crore)

(in Rs.

SBI
Syndicate bank
ICICI
HDFC

INTERPRETATION:
SBI BANK from Public sector banks total assets increased
Private sector banks ICICI total assets increased
Among the nationalized banks SBI assets increased
CAPITAL:

BANKS
2015
(in
Rs.
Crore)

2014

2013

2012

2011

SBI

684.03

671.04

635.00

634.8

634.8

Syndicate
bank

601.95

601.45

573.29

521.97

521.97

ICICI

1153.64

1152.77

1151.82

1114.89

1463.29

HDFC

475.88

469.34

465.23

457.74

425.38

61

BANKS
Crore)

(in Rs.

SBI
Syndicate bank
ICICI
HDFC

INTERPRETATION:
Public sector banks capital increased in this period, SBI by 17% and
Syndicate bank 8.12%, more than private sector banks
Other private sector banks also increased their capital in this period.
There is no decrease in capital structure for the given period.

NETWORTH:
BANKS
2015
(in
Rs.
Crore)

2014

2013

2012

2011

SBI

98883.68

83951.20

64986.04

65949.20

57947.70

Syndicate
bank

10541.34

9041.15

7050.85

5627.05

5010.02

ICICI

66705.96

60405.25

55090.73

51618.37

49883.02

HDFC

36214.14

29924.68

25379.27

21522.49

15052.73

62

BANKS
Crore)

(in Rs.

SBI
Syndicate bank
ICICI
HDFC

INTERPRETATION:
The average net worth of public sector banks increased by 30.11%
The average net worth of private sector banks increased by 13.57%

DEPOSITS:
BANKS
2015
(in
Rs.
Crore)

2014

2013

2012

2011

SBI

1202739.5
7

1043647.3
6

933932.81

804116.23

742073.13

Syndicate
bank

185355.89

157941.06

135596.08

117025.79

11585.14

ICICI

292613.63

255499.96

225602.11

202016.60

218310.85

HDFC

296246.98

246706.45

208586.41

167404.44

142811.58

63

BANKS
Crore)

(in Rs.

SBI
Syndicate bank
ICICI
HDFC

INTERPRETATION:
The average deposit of public sector banks increased by 24.11%
The average deposit of private sector banks increased by 29.64%

ADVANCES:
BANKS
2015
(in
Rs.
Crore)

2014

2013

2012

2011

SBI

1045616.5
5

867578.89

756719.45

631914.15

542503.20

Syndicate
bank

147569.02

123620.18

106781.92

90406.36

81532.27

ICICI

290249.44

253727.66

216365.90

181205.60

218310.85

HDFC

239720.64

195420.03

159982.67

125830.59

98883.05

64

BANKS
Crore)

(in Rs.

SBI
Syndicate bank
ICICI
HDFC

INTERPRETATION:
SBI advances increased by 35.64 %.
Syndicate bank advances increased by 29.54%
NATIONALIZED banks advances increased by 22.57%
Private sector banks advances increased by 31.24%

INVESTMENTS:

BANKS
2015
(in
Rs.
Crore)

2014

2013

2012

2011

SBI

350927.27

312197.61

295600.57

285790.07

275953.96

Syndicate
bank

45647.66

40815.60

35067.62

33010.93

30537.23

ICICI

171393.60

159560.04

134685.96

120892.80

103058.31

HDFC

111613.60

97482.91

70929.37

58607.62

58817.55

65

BANKS
Crore)

(in Rs.

SBI
Syndicate bank
ICICI
HDFC

INTERPRETATION:
Public sector banks investments were up by 36.51%
Private sector banks investments were up by 21.59%

NET PROFIT:

BANKS
2015
(in
Rs.
Crore)

2014

2013

2012

2011

SBI

14104.98

11686.01

7370.35

9166.05

9121.23

Syndicate
bank

2004.42

1313.39

1047.95

813.32

912.82

66

ICICI

8325.47

34985.50

27931.58

28974.37

35452.17

HDFC

6726.28

5167.09

3926.40

2948.70

2244.94

BANKS
Crore)

(in Rs.

SBI
Syndicate bank
ICICI
HDFC

INTERPRETATION:
SBI net profit increase by 13.24% and Syndicate bank was increased by
11.17%
Private sector banks net profit increase by 41.54%
TOTAL INCOME:

BANKS
2015
(in
Rs.
Crore)

2014

2013

2012

2011

SBI

135691.94

120872.90

96329.45

85962.07

76479.78

Syndicate
bank

18295.05

16344.23

12365.98

11214.64

10487.84

ICICI

48421.30

41450.75

33082.96

32999.36

39210.31

67

HDFC

41917.49

32619.76

24361.72

19983.52

BANKS
Crore)

19802.89

(in Rs.

SBI
Syndicate bank
ICICI
HDFC

INTERPRETATION:
Total income of ICICI banks increase by 17.14%
Total income of Syndicate bank was increase by 13.24%
Nationalized banks total income is more than private sector banks.

INTEREST INCOME:

BANKS
2015
(in
Rs.
Crore)

2014

2013

2012

2011

SBI

119657.10

106521.45

81394.36

70993.92

6378.43

Syndicate

17120.69

15268.35

11450.86

10047.18

9579.64

68

bank
ICICI

40075.60

33542.64

25974.05

25706.93

31092.55

HDFC

35064.87

27286.35

19928.21

16172.90

16332.26

BANKS
Crore)

(in Rs.

SBI
Syndicate bank
ICICI
HDFC

INTERPRETATION:
Public sector banks interest income increased by 26.51%
Private sector banks interest income increased by 20.20%

OTHER INCOME:

BANKS
2015
(in
Rs.
Crore)

2014

2013

2012

2011

SBI

16034.84

14351.45

14935.09

14968.15

12691.350

Syndicate

1174.36

1075.88

915.12

1167.46

908.20

69

bank
ICICI

8345.70

7908.10

7108.91

7292.43

8117.76

HDFC

6852.62

5333.41

4433.51

3810.62

3470.63

BANKS
Crore)

(in Rs.

SBI
Syndicate bank
ICICI
HDFC

INTERPRETATION:
HDFC BANK & ICICI BANK other income rose by 16.51 & 21.24 %
respectively.
Syndicate bank from nationalized banks other income decreased by
6.11%

TOTAL LIABILITIES:
BANKS
2015
(in
Rs.
Crore)
SBI

2014

1,566,261.03 1335519.22

70

2013

2012

2011

1223736.20

1053413.73

964432.08

Syndicate
bank

215122.33

182468.07

156538.79

139050.95

130255.67

ICICI

536794.69

473647.10

406233.67

363399.72

379300.96

HDFC

400331.90

337909.51

277352.60

222458.56

183270.77

BANKS
Crore)

(in Rs.

SBI
Syndicate bank
ICICI
HDFC

INTERPRETATION:
Nationalized banks Liabilities increased.
Private banks Liabilities increased.

INFLATION DATA:

71

Above graph indicating Indias inflation data for last 6 months (September 2013 to
January 2014). When observes the data in the month of October 2013, inflation
recorded 08.07 and in the month of January 2014 recorded low of 6.16 its continuous
decreasing numbers from month on month. Decreasing inflation is positive impact on
banking index as well as on main indices (sensex, nifty).
The study reveals how inflation data become a cause for fluctuation of banking sector
stocks over a period of time.

72

INTEREST RATES:

The above chart indicates Indias interest rates from December 2012 to January 2014.
There is no change in interest rates in last months. For this inflation is main cause. In a
economy to control interest rates, controlling inflation is only the solution.

The study explains short term performance of Four BANKS

73

Performance evaluation of private sector and public sector banks for the period
2st December 2013 to 20th January 2014.

Company :STATE BANK OF INDIA 500112

Period: 02-Dec-2014 to 20-Jan-2015

74

Date

Open

High

Low

Close

WAP

No. of
Shares

No.
of
Trades

Total
Turnover

2/12/14

1,826.00 1,853.00 1,813.05 1,822.65 1,834.08 3,04,458

18,565 55,84,00,208

3/12/14

1,812.20 1,829.40 1,804.80 1,814.35 1,815.93 2,25,610

12,998 40,96,92,560

4/12/14

1,805.00 1,834.70 1,796.40 1,819.70 1,815.47 2,70,798

15,326 49,16,24,553

5/12/14

1,861.30 1,880.00 1,845.10 1,853.70 1,860.22 3,05,636

18,876 56,85,50,670

6/12/14

1,853.70 1,867.90 1,845.85 1,861.80 1,858.57 1,92,754

11,740 35,82,46,844

9/12/14

1,913.00 1,920.90 1,882.20 1,889.20 1,898.20 2,91,562

16,623 55,34,44,103

10/12/14 1,899.40 1,899.40 1,839.10 1,844.55 1,858.83 2,32,416

13,206 43,20,21,289

11/12/14 1,840.00 1,840.00 1,782.10 1,796.70 1,806.15 3,58,984

21,398 64,83,77,465

12/12/14 1,793.90 1,798.25 1,773.00 1,778.40 1,786.84 2,39,697

14,888 42,83,00,913

13/12/14 1,759.60 1,769.85 1,740.50 1,743.55 1,751.63 2,50,024

17,139 43,79,49,311

16/12/14 1,734.40 1,760.95 1,730.00 1,732.85 1,742.17 2,27,535

14,122 39,64,03,949

17/12/14 1,753.70 1,753.70 1,715.10 1,718.95 1,727.12 3,03,605

19,145 52,43,60,837

18/12/14 1,718.95 1,779.30 1,716.00 1,764.90 1,757.05 4,53,467

25,136 79,67,65,389

19/12/14 1,773.10 1,776.80 1,716.10 1,730.45 1,732.58 2,99,824

19,133 51,94,69,922

20/12/14 1,728.00 1,758.00 1,720.95 1,751.85 1,740.16 2,71,171

16,281 47,18,80,770

23/12/14 1,749.90 1,773.00 1,748.00 1,757.55 1,762.94 1,84,850

10,692 32,58,79,429

24/12/14 1,765.00 1,772.00 1,752.10 1,759.15 1,762.57 1,78,698

11,444 31,49,67,388

26/12/14 1,755.00 1,770.00 1,747.00 1,754.20 1,760.39 1,82,739

9,602 32,16,91,449

27/12/14 1,757.00 1,781.50 1,757.00 1,769.90 1,772.72 1,79,716

10,589 31,85,85,364

30/12/14 1,780.00 1,789.60 1,755.40 1,763.40 1,768.28 1,98,896

11,691 35,17,03,484

31/12/14 1,763.40 1,773.40 1,751.60 1,765.50 1,762.33 1,69,446

10,327 29,86,19,479

1/01/15

1,774.00 1,774.00 1,761.00 1,765.30 1,767.60

98,601

6,670 17,42,86,981

2/01/15

1,766.90 1,805.80 1,733.00 1,742.50 1,777.56 4,04,041

22,624 71,82,05,113

3/01/15

1,730.00 1,735.95 1,710.40 1,716.10 1,719.94 2,37,236

14,504 40,80,32,296

6/01/15

1,720.00 1,721.50 1,681.00 1,687.65 1,694.74 2,20,811

14,947 37,42,16,954

7/01/15

1,695.00 1,702.00 1,653.15 1,659.75 1,671.10 3,05,089

20,016 50,98,33,891

8/01/15

1,665.00 1,675.95 1,650.00 1,655.40 1,664.47 2,64,670

15,845 44,05,35,904

75

No. of Trades

No. of Trades

INTERPRETATION:
On open value risen from 1826.00 to 1622.95 than compare to higher value of EPS
1853.00 to 1645.90. Then coming to lower price from 1813.05 to 1617.00. Wholly the
conclusion is 1822.65 to 1641.00 raised.
The comings to the volume on the same dates or days volumes are increased.
Because on this session STATE BANK OF INDIA value is raised i.e. percentage of 17.36
%.

Company :SYNDICATE BANK 532276

Period: 02-Dec-2014 to 20-Jan-2015
76

77

Date

Open

High

Low

Close

WAP

No. of
Shares

No. of
Trades

Total Turnover

2/12/14

89.95

90.60 88.40

88.85

89.68 2,57,442

2,216

2,30,87,514

3/12/14

89.40

89.90 88.10

88.75

88.86 1,60,873

1,947

1,42,94,720

4/12/14

88.50

89.55 87.50

87.75

88.36 1,61,956

1,718

1,43,10,756

5/12/14

88.70

91.00 88.70

89.55

89.92 1,92,385

2,255

1,72,99,621

6/12/14

89.95

91.25 88.60

90.40

90.26 2,47,116

2,972

2,23,05,818

9/12/14

93.00

95.00 92.00

92.55

93.42 3,93,718

3,791

3,67,82,548

10/12/14

93.30

93.45 90.00

91.20

91.15 2,20,660

2,244

2,01,12,361

11/12/14

90.90

91.50 89.90

90.85

90.67 1,28,802

1,488

1,16,78,458

12/12/14

90.50

90.90 89.15

89.50

90.03 1,21,446

1,226

1,09,34,169

13/12/14

88.50

89.00 86.95

87.40

87.74 1,87,456

1,942

1,64,47,993

16/12/14

87.70

88.00 86.10

86.95

87.17 1,31,501

1,173

1,14,62,985

17/12/14

86.20

87.90 84.00

84.70

85.68 1,62,370

1,581

1,39,11,795

18/12/14

84.20

89.20 84.20

88.65

87.52 2,67,423

2,896

2,34,05,558

19/12/14

89.50

91.90 85.65

86.10

86.77 1,94,702

2,069

1,68,94,397

20/12/14

87.00

89.20 86.10

88.65

87.63 1,59,353

2,637

1,39,64,236

23/12/14

89.50

93.35 89.00

92.05

91.75 2,81,651

6,193

2,58,41,491

24/12/14

92.15

93.25 90.30

92.10

91.62 1,27,638

1,364

1,16,94,361

26/12/14

92.10

94.70 92.10

93.60

93.74 2,16,029

2,136

2,02,50,448

27/12/14

94.50

98.30 93.90

95.10

96.29 3,64,909

3,143

3,51,36,488

30/12/14

95.50

96.00 93.20

93.40

93.99 1,22,807

1,152

1,15,42,804

31/12/14

94.00

94.90 92.35

94.60

94.08 1,47,957

1,558

1,39,19,516

1/01/15

95.50

96.90 94.25

96.05

95.32 1,85,543

1,555

1,76,85,799

2/01/15

96.25 100.70 93.10

93.75

97.59 5,66,628

4,525

5,52,95,448

3/01/15

93.70

95.75 91.95

95.35

94.17 2,21,783

2,403

2,08,85,770

6/01/15

95.30

95.60 92.85

93.40

93.92 1,27,485

1,871

1,19,73,173

7/01/15

93.55

94.25 90.90

92.05

92.19 2,05,571

2,138

1,89,51,717

8/01/15

92.50 100.05 92.50

99.40

97.70 8,26,365

7,428

8,07,36,791

78

No. of Trades

No. of Trades

INTERPRETATION:
On open value risen from 89.95 to 93.20 than compare to higher value of EPS
90.60 to 94.00. Then coming to lower price from 88.40 to 92.00. Wholly the conclusion is
88.85 to 93.30 raised.
The comings to the volume on the same dates or days volumes are increased.
Because on this session SYNDICATE BANK value is raised i.e. percentage of 9.21%.

79

Company :HDFC BANK LTD. 500180

Period: 02-Dec-2014 to 20-Jan-2015

80

Date

Open

High

Low

Close

WAP

No. of
Shares

No. of
Trades

Total Turnover

2/12/14

661.00 665.00 659.00 661.05 661.15 2,44,432

3,174

16,16,06,158

3/12/14

655.00 662.00 653.05 657.15 657.14 3,57,347

5,085

23,48,25,716

4/12/14

657.00 659.35 652.00 658.00 656.96 2,03,970

5,868

13,40,00,857

5/12/14

670.00 690.00 670.00 687.75 685.46 5,87,747

12,871

40,28,74,969

6/12/14

688.00 689.95 678.90 682.30 682.00 1,77,713

3,223

12,11,99,886

9/12/14

704.70 714.80 693.00 696.10 703.45 6,97,655

7,866

49,07,63,474

10/12/14

693.50 701.60 689.75 696.45 694.05 4,45,239

5,277

30,90,17,237

11/12/14

691.00 701.05 687.00 698.20 692.60 2,41,932

2,715

16,75,61,819

12/12/14

694.00 699.90 691.00 695.20 694.80 2,27,659

3,452

15,81,77,181

13/12/14

693.00 698.00 685.00 690.35 692.36 1,77,493

3,266

12,28,88,723

16/12/14

685.00 690.00 680.20 682.65 685.38 1,47,502

3,115

10,10,95,181

17/12/14

675.05 675.05 655.10 658.45 661.99 3,62,332

7,988

23,98,61,327

18/12/14

653.00 680.75 650.00 667.45 664.92 2,94,983

6,933

19,61,39,902

19/12/14

680.00 681.00 651.30 653.00 661.03 1,37,543

3,244

9,09,19,526

20/12/14

655.00 668.00 650.60 665.15 659.09

69,129

2,336

4,55,62,219

23/12/14

665.00 671.50 659.00 665.40 667.22 1,34,772

4,291

8,99,22,469

24/12/14

665.00 665.55 655.75 657.55 660.01

52,276

1,701

3,45,02,928

26/12/14

659.00 672.00 657.55 669.60 664.43 1,00,114

2,618

6,65,18,856

27/12/14

669.80 675.00 665.70 669.30 670.26

70,054

1,787

4,69,54,333

30/12/14

678.00 678.00 665.15 669.65 670.15 1,99,284

2,669

13,35,50,340

31/12/14

667.80 672.00 660.10 665.75 664.33 3,29,896

2,291

21,91,59,040

1/01/15

666.75 670.00 662.60 665.05 665.96

53,254

1,297

3,54,64,949

2/01/15

669.90 674.10 653.90 656.85 666.23

88,813

2,501

5,91,69,506

3/01/15

655.00 665.95 651.05 663.35 661.02 1,84,386

2,962

12,18,83,670

6/01/15

664.00 664.00 657.35 662.00 660.59 5,04,829

3,376

33,34,83,465

7/01/15

670.00 670.00 654.00 664.75 660.31 2,03,763

2,661

13,45,47,406

8/01/15

664.05 667.20 661.00 664.65 664.90 2,51,642

3,983

16,73,17,870

81

No. of Trades

No. of Trades

INTERPRETATION:
On open value has risen from 661.00 to 665.00. Then compare to higher value of
EPS 665.00 to 676.90. Then coming to lower price from 659.00 to 665.00. Wholly the
conclusion is 661.05 to 669.85 raised.
Then coming to the volume on the same dates or days volumes are increased.
Because totally this session HOUSING DEVELOPMENT FINANCE CORP.LTD. EPS
value is increased i.e. percentage of 6.71%.

82

Company :ICICI BANK LTD. 532174

Period: 02-Dec-2014 to 20-Jan-2015

83

Date

Open

High

Low

Close

WAP

No. of
Shares

No.
of
Trades

Total
Turnover

2/12/14 1,068.20 1,101.00 1,068.20 1,088.90 1,092.65 2,88,994

11,360 31,57,69,399

3/12/14 1,086.00 1,098.80 1,078.45 1,086.10 1,089.58 3,38,889

10,050 36,92,46,932

4/12/14 1,076.65 1,078.00 1,058.20 1,065.15 1,066.09 4,44,739

11,391 47,41,32,679

5/12/14 1,100.55 1,139.90 1,100.55 1,136.10 1,130.27 7,94,905

31,193 89,84,56,640

6/12/14 1,132.40 1,145.20 1,122.80 1,142.75 1,137.96 5,01,749

12,484 57,09,68,704

9/12/14 1,197.50 1,206.20 1,191.50 1,201.75 1,200.02 7,65,091

26,451 91,81,23,805

10/12/14 1,200.00 1,203.00 1,154.05 1,159.75 1,166.97 5,32,179

22,682 62,10,34,460

11/12/14 1,151.00 1,172.70 1,141.35 1,159.45 1,150.20 3,36,634

9,617 38,71,95,373

12/12/14 1,158.20 1,158.20 1,128.00 1,132.05 1,141.68 2,43,919

8,419 27,84,76,951

13/12/14 1,116.00 1,119.90 1,080.20 1,085.45 1,093.23 5,03,307

24,750 55,02,28,240

16/12/14 1,087.00 1,104.00 1,086.00 1,097.40 1,097.21 1,85,879

7,885 20,39,48,887

17/12/14 1,111.00 1,121.85 1,090.00 1,098.25 1,109.16 2,50,670

8,467 27,80,33,365

18/12/14 1,087.35 1,134.00 1,082.30 1,096.80 1,106.10 5,94,340

15,615 65,73,99,652

19/12/14 1,106.00 1,112.00 1,058.30 1,063.70 1,069.15 4,80,961

19,633 51,42,20,990

20/12/14 1,065.50 1,089.90 1,065.50 1,087.25 1,080.45 2,90,626

9,970 31,40,06,067

23/12/14 1,085.05 1,107.00 1,085.05 1,096.65 1,099.86 2,41,144

7,108 26,52,25,769

24/12/14 1,102.00 1,105.75 1,088.50 1,098.30 1,098.68 2,18,137

6,458 23,96,62,407

26/12/14 1,098.00 1,103.60 1,092.20 1,098.25 1,097.49 1,75,497

5,401 19,26,05,422

27/12/14 1,107.00 1,114.00 1,000.00 1,107.90 1,108.23 1,68,404

5,871 18,66,30,431

30/12/14 1,109.00 1,123.40 1,092.55 1,095.40 1,101.27 1,28,563

5,037 14,15,82,005

31/12/14 1,100.00 1,108.00 1,094.95 1,098.45 1,098.96 1,29,522

4,449 14,23,39,208

1/01/15 1,102.00 1,105.90 1,092.35 1,097.40 1,097.49

2,909

83,230

9,13,43,985

2/01/15 1,097.00 1,118.00 1,070.00 1,075.10 1,099.05 3,27,317

11,597 35,97,36,398

3/01/15 1,063.00 1,074.80 1,046.00 1,067.00 1,060.09 3,62,808

12,961 38,46,08,569

6/01/15 1,066.00 1,066.40 1,035.00 1,040.70 1,044.12 3,50,403

9,950 36,58,64,025

7/01/15 1,044.90 1,059.10 1,025.10 1,049.95 1,041.98 3,73,958

12,229 38,96,58,467

8/01/15 1,059.00 1,063.00 1,042.60 1,054.05 1,054.64 2,12,358

7,582 22,39,62,248

84

No. of Trades

No. of Trades

INTERPRETATION:
On open value has increased from 1068.20to 1035.00. Then compare to higher
value of EPS 1101.00 to 1047.50. Then coming to lower price from 1068.20 to 1028.00.
Wholly the conclusion is 1088.90 to 1044.10 increased.
Then coming to the volume on the same dates or days volumes are increased.
Because totally this session ICICI LIMITED. EPS value is increased i.e. percentage of
10.87%.

85

CHAPTER-V
FINDINGS
SUGGESSIONS
CONCLUSIONS

86

FINDINGS
1. Growth of Indian banking industry depends on few economical variables like interest
rates and inflation, increased inflation is negative impact on banking stocks.
2. When a stock is strong in fundamental, even though we can see negative fluctuations
in the stock, it called as speculation.
3. SBI, HDFC BANK,& ICICI BANKS are sector leaders as well as market leaders in
NIFTY and highest weight age is goes to ICICI bank, here speculation for ICICI bank
is more than other banks, even though Syndicate Bank has given close to 11% growth
for the given period.
4. More Promotional strategies and facilities introduced even in nationalized banks also
to face competitiveness in the market.
5. All banks faced correction from December 1st week to 3rd week of December, major
growth happen in SBI, both the banks are fundamentally strong one can invest for
long term, but avoid fresh investments at this levels.
6. Net profit increased in public sector banks is 42.51%, where as 39.64% in private
sector and we can see operating expenditure more in private sector banks.
7. Deposits and Investments is more in private sector banks than public sector banks, due
to promotion activities conducted by them.
8. There is no change in capital structure of SBI and we can see increase in other five
banks.
9. In intraday highest negative fluctuations we can see in Andhra bank and highest
positive fluctuations in Andhra bank itself.
10. India records first place for highest banking interest rates in the world.

SUGGESTIONS
87

The banking system has made considerable investment in the related infrastructure to upgrade
the payment system. However, there are several challenges that need to be effectively
addressed if the full benefits of the achievements so far are to be reaped.
The primary reason for slow pace of adoption of the electronic modes of funds transfer,
particularly in the retail segment, is the lack of education particularly on the part of the bank
staff at the branch level that have interface with the public.
A survey conducted by one of the Regional Offices of the RBI in the recent past revealed that
in the limited sample covered; there were several bank branches in the State which were not
even aware of the National Electronic Fund Transfer system. The banks, therefore, need to
make concerted efforts to increase the degree of awareness at the level of the branch staff so
that the electronic fund transfer services percolate down to the level of the public in a
significant manner.
The other side of the coin is the lack of customer education and awareness about the features
and benefits of the EFT, which precludes wider adoption of this product and leads to carrying
on with the traditional modes of payment.

88

CONCLUSION
Entry of new banks resulted in a paradigm shift in the ways of banking in India. The growing
competition, growing expectations led to increased awareness amongst banks on the role and
importance of technology in banking. The arrival of foreign and private banks with their
superior state-of-the-art technology-based services pushed Indian Banks also to follow suit by
going in for the latest technologies so as to meet the threat of competition and retain their
customer base.Deregulation and technological change are the two single biggest changes in
the banking environment.
In India, investments in technologies by financial services organizations are increasing, and
new initiatives emerging, albeit at a basic level. However, in the long run, it is evident that
technology investments in transaction and process automation will cease to be a differentiator.
Technology has enabled banks to overcome the barriers of time and extending their services
to customers. The new technology channels like ATMs, EFT (Electronic funds transfer), debit
and credit cards mobile banking, tele banking, etc. are accessible to customers on a 24 x 7
basis.
With automation, banks can offer single window service, extend business hours and provide
anywhere anytime banking. It gives bank personnel more time to devote to business planning
and development also facilitates each player in market to have its unique products and
services for competitive advantage. New technology driven channels help the banks to reduce
cost as the cost of transaction in new channel is a fraction of what it was on branch counter.
In view of this, technology has changed major functions performed by banks:
1. Access to liquidity.
2. Transformation of assets.
3. Monitoring of risks.
4. Information technology and the communication networking systems have a crucial
bearing on the efficiency of money, capital and foreign exchange markets.

89

BIBLIOGRAPHY

90

BIBLIOGRAPHY
Articles/Journals/Magazines:
New Trends in Banking Ravi Kumar VV
4PS Business & Marketing
Text Book:
Financial Service Management Gordon & Natrajan

World Wide Web:

www.google.com
www.icicibank.com
www.indiainfoline.com
www.sbi.com
www.axisbank.com
Business standard banking annual

91

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