Kundan SIP Final Project 1234

A
PROJECT REPORT
ON
“EQUITY RESEARCH ANALYSIS ON BANKING SECTOR”
AT
SAMRUDDHI SECURITIES & INVESTMENTS
SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY

IN PARTIAL FULFILMENT OF
MASTER IN BUSINESS ADMINISTRATION
SUBMITTED BY
AHIRE KUNDAN SANDEEP
UNDER THE GUIDANCE OF

DR. ROOPALI KUDARE
PIMPRI CHINCHWAD EDUCATION TRUST’S

S. B. PATIL INSTITUTE OF MANAGEMENT
( BATCH : 2022-2024 )
DECLERATION
I, Kundan Sandeep Ahire, hereby declare that the project titled “Equity Research
Analysis on Banking Sector” is a result of my original research work and has been
carried out under the guidance of Dr. Roopali Kudare. This project is being submitted
in partial fulfilment of the requirements for the Master Of Business Administration
(MBA) Degree in Finance.
I further declare that the work presented in this project is my own and that it has not
been previously submitted for any other information used in this project have been duly
cited and acknowledged.
I understand that any form of plagiarism or academic misconduct is a serious offense

and may result in severe penalties as per the guidelines of S. B. PATIL INSTITUTE
OF MANAGEMENT, PUNE. I take full responsibility for the originality and
authenticity of the content presented in this project.
Date :
Place :
Kundan Sandeep Ahire
ACKNOWLEDGEMENT
In preparation of my project, I had to take the help and guidance of some respected
persons, who deserve my deepest gratitude. I would like to express my special thanks
to Dr. Kirti Dharwadkar and my project guide Dr. Roopali Kudare, who helped me
in doing this project.
I would like to thank SAMRUDDHI SECURITIES & INVESTMENTS, For

providing me the unique opportunity of internship with the organization. It was a great
chance of learning and skill development. I consider myself very lucky as I was
provided with the great opportunity to be a part of this organization.
I am indebted to MR. Bhushan Fulpagare for providing me the opportunity to gain

insights into this organization and meet so many skilled, hardworking and talented
professionals who helped me a lot throughout the internship tenure and thanks to hear
me out, guide me and keep me on correct path throughout this project. I owe him deep
gratitude from time to time.
I am also thankful to all who have helped me to conclude the contents of the project in
the decent and presentable manner.
KUNDAN SANDEEP AHIRE

(MBA- Finance)
LIST OF TABLE
SR. NO. NAME OF TABLE
Table 1.1 Table of Bank Nifty Weightage
Table 1.2 Table of HDFC Bank Market Overview
Table 1.3 Table of ICICI Bank Market Overview
Table 1.4 Table of SBI Bank Market Overview
Table 1.5 Table of KOTAK Mahindra Bank Market Overview
Table 3.1 Table of Organisation’s Profile
Table 5.1 Table of HDFC Bank Income Statement
Table 5.2 Table of HDFC Bank Balance sheet Statement
Table 5.3 Table of ICICI Bank Income Statement
Table 5.4 Table of ICICI Bank Balance sheet Statement
Table 5.5 Table of SBI Bank Income Statement
Table 5.6 Table of SBI Bank Balance Sheet Statement
Table 5.7 Table of Kotak Mahindra Bank Income Statement
Table 5.8 Table of Kotak Mahindra Bank Balance sheet Statement
Table 5.9 Table of Return on Capital Employed Ratio :
Table 5.10 Table of Net Interest Margin Ratio
Table 5.11 Table of CASA Ratio
Table 5.12 Table of Cost Income Ratio
Table 5.13 Table of Return on Assets Ratio
Table 5.14 Table of Return on Equity Ratio
Table 5.15 Table of Gross Non-Performing Assets Ratio
Table 5.16 Table of Gross Non-Performing Assets Ratio

LIST OF GRAPHS
Sr. No. NAME OF GRAPHS
Graph 1.1 Graph of Growth in Deposits
Graph 1.2 Graph of Bank Nifty Performance with Top 4 Banks.
Graph 5.1 Graph of Return on Capital Employed Ratio
Graph 5.2 Graph of Net Interest Margin Ratio
Graph 5.3 Graph of CASA Ratio
Graph 5.4 Graph of Cost Income Ratio
Graph 5.5 Graph of Return on Assets Ratio
Graph 5.6 Graph of Return on Equity Ratio
Graph 5.7 Graph of Gross Non-Performing Assets Ratio
Graph 5.8 Graph of Gross Non-Performing Assets Ratio

TABLE OF CONTENT
CHAPTER PAGE
PARTICULARS
NO. NO.
Executive Summary
Chapter I Introduction & Theoretical Background 1
Chapter II Review of Literature 19
Chapter III Profile of the Organisation 24
Chapter IV Research Methodology 27
Chapter V Data Analysis & Interpretation 30
Findings, Suggestions, Conclusion &

Chapter VI 63
Bibliography
EXECUTIVE SUMMARY
The objective of my report is to unfold the current financial position of the banking
sector with respect to the top 4 banks in India as per the market capitalization. To show
sectoral performance of banking sector I tried to understand and analyse the financial
position of banks by using their key financial ratios.
In this research report I tried to study the financials and valuations of the company using
the discounted cash flow model and I have done the fundamental analysis of the charts
for the future forecasting of the share prices
In this report I have tried to study and identify the financial position i.e., profitability,
liquidity and solvency position of the top 4 banks in India, and also make comparison
between the selected public sector and private sector banks to identify the valuation of
the stocks of the selected banks and find which stock is good as per the financials and
other technical to buy.
To show sectoral performance of banking sector.
Finally, I came out with a conclusion and certain suggestions and recommendation
based on my own analysis which seems feasible to me by looking at the present
situation. For more information about the financials, I have referred various news
articles, company's annual report and various websites.
CHAPTER – I
INTRODUCTION & THEROTICAL BACKGROUND
1
INTRODUCTION
BANKING STRUCTURE :
The banking sector is a crucial component of India's financial system, playing a pivotal
role in supporting economic growth, facilitating monetary policies, and providing
financial services to individuals, businesses, and the government. The structure of the
Indian banking system is diverse and multifaceted, encompassing various types of
banks with distinct roles and functions.
Banks provide a wide range of retail services, including savings accounts, fixed
deposits, personal loans, and credit cards, catering to individual customers. Focused on
serving the financial needs of businesses, corporate banking involves providing loans,
working capital facilities, trade finance, and advisory services to corporations. With
technological advancements, digital banking has gained prominence, offering services
such as online banking, mobile banking, and digital wallets.
The banking sector in India is poised for further growth and transformation, driven by
ongoing technological advancements, regulatory reforms, and a focus on financial
inclusion.
EQUITY RESEARCH :
Equity research analysis is a comprehensive process of evaluating and analysing

financial instruments, typically stocks, to provide insights and recommendations for
investors, traders, and financial institutions. It involves a thorough examination of a
company's financial performance, industry trends, and market conditions to make
informed investment decisions. Equity research is essential for investors seeking to
maximize returns while managing risks effectively.
The primary goal of equity research is to provide investors with valuable information
and analysis to make well-informed investment decisions. This includes assessing the
potential risks and rewards associated with investing in a particular security.
Equity Research Analysis is conducted in two types of analysis. One is Fundamental

Analysis and the other hand Technical Analysis.
In this project we will analyse the Research only through Fundamental Analysis.
2
THEROTICAL BACKGROUND
EQUITY RESEARCH ANALYSIS :
Equity Research Analysis is the Study of a business and its environment in order to
make a buy or sell decision about investing in its shares. This research can also be
applied by an acquirer to a prospective acquisition deal, to determine the price at which
to bid for the securities of a target company. Equity Research primarily means analysing
the company’s financials, performing ratio analysis, forecasting the financials in excel
(financial modelling), and exploring scenarios to make a BUY/SELL stock investment
recommendation. Equity research analysis is a critical component of the financial
ecosystem, serving the needs of both investors and companies. It helps investors make
informed decisions, manage risk, and achieve their financial goals, while companies
use it to communicate with investors and make strategic decisions.
Equity research analysis is a dynamic and evolving field, integral to the functioning of
financial markets and the success of investors. It requires a combination of financial
acumen, industry knowledge, and analytical skills to navigate the complexities of the
stock market and provide meaningful insights.
IMPORTANCE OF EQUITY RESEARCH:
• Informed Decision-Making: Investors use equity research to make informed

decisions about buying, selling, or holding stocks, optimizing their portfolios based
on thorough analysis.
• Institutional Decision Support: Institutional investors, fund managers, and
financial institutions rely on equity research to guide their investment strategies and
allocations.
• Market Transparency: Equity research contributes to market transparency by
providing detailed insights into the financial health and prospects of companies,
fostering efficient capital allocation.
• Risk Management: Assessing and quantifying risks through equity research aids
investors in managing their portfolios and minimizing exposure to potential
downsides.
The scopes of the project are limited to understanding Equity Research Analysis and apply it
to take a decision of investing in Banks that are listed in Indian Stock Market.
3
Equity Research Includes Following Points.
1) Financial Performance and Analysis : Financial analysis is performed in excel

using financial modelling, but its findings are presented here. This section provides
comprehensive detail on a company's financial performance, its historical performance,
and current earnings. The analyst also presents the valuation of the company and his
assumptions used to predict future earnings.
2) Risk : This section addresses the potential risks an industry or a company poses to
an investor. For instance, regulatory risks, operational risks, financial risks, etc., can
significantly impact the stock price.
3) Industry Report : This report provides deep insights into a particular industry. For
example, the report covers topics like recent trends in the industry, updates on the recent
regulations, competitors, etc. This type of report is also usually long because it covers
an entire industry. An industry report also covers information on key drivers, risk
factors, and overall valuation levels, followed by shorter sections on specific
companies.
4) Finance and banking : The backbone of business, industry, and trade is finance and
banking. Today, the banking industry serves as the foundation of contemporary
business. Any nation's ability to develop rests heavily on its banking sector. A bank is
a type of financial institution that deals with loans, deposits, and other services. It
accepts deposits from people who wish to save money and lends money to people who
need it. One of life's most fundamental and significant aspects is banking. Without
creating the appropriate bank network, people may not be able to make the required
transitions in today's rapid lifestyle. Nationalized banks dominate India's banking
system. The banking industry's performance is more strongly correlated with economic
performance.
5) Financial statements : Financial statements: Written documents that describe a

company's operations and financial performance are known as financial statements.
Government organizations, accounting companies, etc. frequently audit financial
statements to guarantee accuracy and for tax, financing, or investing purposes. The
balance sheet, income statement, statement of cash flow, and statement of changes in
equity are the four basic financial statements for for-profit entities. A similar but distinct
set of financial statements is used by non profit organizations.
4
INDIAN BANKING SECTOR :
The banking industry is one of the most essential financial pillars of the financial sector,
and it is critical to the economy’s functioning. It is critical for a country’s economic
development that its trade, industrial, and farm funding needs are handled with greater
commitment and responsibility. As a result, a country’s progress is inextricably related
to the development of banking. In today’s economy, banks should be viewed as
development leaders rather than money merchants. They play a crucial role in deposit
mobilization and credit disbursement to many sectors of the economy.
The Indian banking sector has emerged as one of the strongest drivers of India’s
economic growth. It is one of the largest and most complex in the world, with more
than 100 scheduled Commercial Banks and more than 96,000 branches. It has
undergone a significant evolution since the country's independence in 1947, and today
it plays a vital role in the economic development of India.
As per the Reserve Bank of India (RBI), India’s Banking sector is sufficiently
capitalised and well-regulated. The financial and economic conditions in the country
are far superior to any other country in the world. Credit, market and liquidity risk
studies suggest that Indian Banks are generally resilient and have withstood the global
downturn well. Banking assets (including public, private sector and foreign Banks.
5
MARKET SIZE :
The Indian Banking system consists of 12 public sector Banks, 22 private sector Banks,
46 foreign Banks, 56 regional rural Banks, 1485 urban cooperative Banks and 96,000
rural cooperative Banks in addition to cooperative credit institutions.
Bank assets across sectors increased significantly since 2020. In 2022-23, total assets
in the public and private Banking sectors were US$ 1,553.57 billion and US$ 901.3
billion, respectively.
In 2022-23, assets of public sector Banks accounted for 59.24% of the total as on May
5, 2023, at a growth rate of 10.2%.
Graph 1.1 : Graph of Growth in Deposits
6
INDIAN BANKING STRUCTURE :
Chart 1.1 : Chart of Indian Banking Structure
7
BANK NIFTY :
The Nifty Bank Index, commonly referred to as the 'Bank Nifty' index, tracks the
performance of the banking sector and consists of 12 banking stocks. Introduced by the
NSE in September 2003, it serves as a barometer for assessing the capital market
performance of the crucial banking industry in India.
As with any index, the Bank Nifty reflects the market performance of a specific
segment by monitoring a diversified set of constituent securities, each assigned a certain
weightage. The Bank Nifty share price signifies the index's value at a particular
moment.
Designed as a benchmark for the banking sector, the Bank Nifty aims to be
representative of the industry. To achieve this, no single bank stock is allowed to
dominate the index, with a cap of 35%. The combined weightage of the top three stocks,
however, constitutes a substantial 71% of the overall index.
Selection of stocks for the Nifty Bank Index is based on free-float market capitalization
and includes both private and public sector banks. This methodology ensures that the
index accurately mirrors the dynamics of the banking sector in the Indian financial
market..
BANK NIFTY WEIGHTAGE :
The table below illustrates the breakup of the index bank stocks and their weightage:-
(as on 01st September, 2023)
Company name Industry F.F. Mkt Cap (Rs. Cr.)
HDFC Bank Bank - Private 1,182,944.18
ICICI Bank Bank - Private 668,707.90
SBI Bank - Public 505,891.63
Kotak Mahindra Bank Bank - Private 351,594.29
Axis Bank Bank - Private 299,941.15
IndusInd Bank Bank - Private 108,388.73
Bank of Baroda Bank - Public 98,152.45
PNB Bank - Public 71,901.93
IDFC First Bank Bank - Private 61,178.03
AU Small Finance Bank - Private 48,406.62
Bandhan Bank Bank - Private 37,879.48
Federal Bank Bank - Private 33,512.86
Table 1.1 : Table of Bank Nifty Weightage
8
Here is a graph to show how the stock prices of the largest four affect the Bank
Nifty value:- (As on 01/09/2023)
Graph 1.2 : Graph of Bank Nifty Performance with Top 4 Banks.
Bank Nifty 44195.22 +22.16%

HDFC Bank 1566.15 +15.16%
ICICI Bank 959.55 +27.84%
State Bank of India 567.40 +13.31%
Kotak Mahindra Bank 1770.30 +2.35%
9
ISIN NO. INE040A01034
BSE 500180
NSE HDFCBANK
CMP Rs. 1650.60
DATE 11/12/2023
MARKET CAP 1,252,843 Cr.
52 Week High Rs. 1,757.50
52 Week Low Rs. 1,460.25
Table 1.2 : Table of HDFC Bank Overview
HDFC Bank is the Biggest Private Sector Bank of India. It has a largest market capital
which is Rs. 1,190,177 Cr.
HDFC Bank now boasts an expansive customer base of around 120 million individuals
and a network of over 8,300 branches and over 177,000 employees. and 20,565 ATMs /
Cash Recycler Machine ( Cash deposit & withdrawal ) across 3,825 cities / towns.
10
BSE 532174
NSE ICICIBANK
CMP Rs. 1013.90
DATE 11/12/2023
MARKET CAP Rs. 709,694 Cr.
52 Week Low Rs. 796.00
Table 1.3 : Table of ICICI Bank Overview
ICICI Bank is the Second Largest Private Sector Bank of India. It has largest market
capital which is Rs. Rs. 709,694 Cr.
ICICI Bank now boasts an expansive customer base of more than 52 million individuals
Cash Recycler Machine (Cash deposit & withdrawal).
11
BSE 500112
NSE SBIN
CMP Rs. 615.80
DATE 11/12/2023
52 Week High Rs. 629.55
52 Week Low Rs. 499.35
Table 1.4 : Table of SBI Bank Overview
State Bank of India is the Biggest Public Sector Bank of India. It has largest market
capital which is Rs. 549,309 Cr. It has a 22.99% Market Share of Deposits, 29.90%
Market Share of ATMs and 20.89% Market Share in Mobile Banking Transactions in
Values.
SBI is the Number 1 Bank in Personal Banking, Rural Banking, Government Banking.
And it is 1st Indian Bank to expand its Presence Globally in International Banking
Group.
State Bank of India now boasts an expansive customer base of more than 42 Cr. plus
individuals and a network of over 22,405 branches and over 2,36,116 employees.
and 65,627 ATMs and ADWMs.
12
BSE 500247
NSE KOTAKBANK
CMP Rs. 1840.15
DATE 11/12/2023
52 Week Low Rs. 1,643.50
Table 1.5 : Table of KOTAK Mahindra Bank Overview
Kotak Mahindra Bank Limited is the Fourth Biggest Private Sector Bank of India. It
has a largest market capital which is Rs. 365,497 Cr.
HDFC Bank now boasts an expansive customer base of around 30.7 million individuals
Cash Recycler Machine ( Cash deposit & withdrawal ).
13
WHAT IS FUNDAMENTAL ANALYSIS ?
Fundamental Analysis (FA) is like taking a deep dive into a business when an investor
plans to invest for the long term (around 3 – 5 years). Instead of getting distracted by
the day-to-day ups and downs of stock prices, it's crucial to focus on understanding how
the actual business is performing. Usually, companies that are financially strong tend
to see their stock prices go up over time, making money for investors.
In simpler terms, Fundamental Analysis means looking at a business from its core to
really get what's going on with its money matters and how sustainable it is. This
involves checking out if a company has the potential to grow in the future by
considering lots of different factors, both big and small. The idea is to figure out the
true value of a stock so investors can make smart choices.
The main goal of doing fundamental analysis is to spot good investment opportunities
and make the most out of them. There are two main types of fundamental analysis –
Qualitative and Quantitative. Qualitative looks at things like the company's reputation,
the market it's in, how strong its brand is, and how well it's doing. On the other hand,
Quantitative analysis is more about looking at the hard numbers and statistics.
People often compare fundamental analysis with technical analysis. Fundamental

analysis is about understanding everything about a company to decide if its stock is a
good pick, while technical analysis is more about studying the ups and downs of stock
prices to figure out the best time to buy or sell. By using fundamental analysis, investors
can make sense of the market's short-term chaos and get a good idea about a company's
long-term potential. It's like getting a full picture of a business, helping investors make
smart decisions that match their long-term goals.
14
WHAT IS RATIO ANALYSIS ?
Ratio analysis is a critical component of equity research analysis, providing valuable

insights into a company's financial health, performance, and overall efficiency. It
involves the calculation and interpretation of various financial ratios that help assess
different aspects of a company's operations.
Ratio analysis compares line-item data from a company's financial statements to reveal
insights regarding profitability, liquidity, operational efficiency, financial leverage,
valuation, dividend, growth.
These ratios are calculated using financial statements like the income statement,
balance sheet, and cash flow statement. The results are then compared to industry
benchmarks, historical data, and competitors to provide a comprehensive understanding
of a company's financial position. Ratio analysis in equity research is essential for
making informed investment decisions, identifying potential risks, and evaluating a
company's overall performance in the market.
15
1) Return on Capital Employed (ROCE)
Return on Capital Employed (ROCE) is a financial ratio that measures the profitability
of a company in relation to its capital employed. Capital employed represents the total
capital investment in a business, including both equity and long-term debt.
ROCE = (Net Operating Profit / Capital Employed )*100
2) Net Interest Margin (NIM) :
The Net Interest Margin (NIM) assesses a bank's profitability in lending and deposit
operations. It is calculated by dividing the bank's Net Interest Income (NII) by its total
interest-earning assets. A higher NIM reflects the bank earning more on loans than it
pays on deposits, indicating higher profitability.
NIM = (Investments Returns – Interest Expenses ) / Average Earning Assets
3) Current Account Savings Account (CASA):
CASA, which stands for Current Account Saving Account, refers to deposits held by
banks in current and savings accounts. These accounts provide convenient access to
funds with minimal or zero balance requirements and typically offer lower interest rates
compared to other deposit accounts, such as time deposits or fixed deposits. CASA
deposits are crucial for banks as they represent low-cost, stable, and dependable sources
of funding.
These accounts are less likely to be withdrawn, making them more reliable compared
to other types of deposits. A higher proportion of CASA deposits, known as CASA
Ratio, is seen as a positive indicator of a bank's financial health. It signifies a larger
pool of stable funding available for lending and revenue generation. Banks with a
higher CASA ratio are generally better equipped to navigate economic downturns, as
they possess a more substantial source of stable funding
CASA Ratio (%) = CASA Deposits/Total Deposits
16
4) Cost to Income Ratio (CIR):
The Cost to Income Ratio (CIR) is a measure of a bank's efficiency in managing its
expenses in relation to its income. This ratio is calculated by dividing a bank's operating
expenses by its operating income. CIR holds importance as it signifies a bank's
effectiveness in managing costs and optimizing profits. A lower CIR indicates greater
efficiency in cost management and, consequently, increased overall profitability.
Cost Income Ratio = Operating expenses / Operating income * 100
5) Return on Assets (ROA):
Return on Assets (ROA) is a measure of a bank's profitability, comparing its net income
to its total assets. The ROA is computed by dividing the bank's net income by its total
assets.
ROA reflects the bank's efficiency in utilizing its assets to generate income. A higher
ROA implies that the bank is generating greater income from its assets, potentially
indicating higher overall profitability.
ROA Ratio = Net Income / Average total Assets
6) Return On Equity (ROE) : ROE is a gauge of a corporation's profitability and

how efficiently it generates those profits. The higher the ROE, the better a company
is at converting its equity financing into profits.
ROE = Net Income / Shareholder’s Equity
7) Gross Non-Performing Assets (GNPA):
The Gross Non-Performing Assets (GNPA) ratio evaluates a bank's ability to manage
its loans by indicating the percentage of a bank's total loans classified as non-
performing assets (NPAs). NPAs are loans that no longer generate income due to
borrower defaults. A higher GNPA ratio suggests a significant portion of loans not
generating income, indicating a higher level of risk in the bank's loan portfolio.
GNPA Ratio = Total Gross NPAs / Total Assets
17
8) Net Non-Performing Assets (NNPA):
The Net Non-Performing Assets (NNPA) ratio is similar to GNPA but measures the net
value of non-performing assets. It is calculated by deducting the bank's provisions for
bad loans from the gross NPAs. A higher NNPA is indicative of risk in the bank's loan
book.
NNPA = Net NPA/Total Loans Given
These ratios provide valuable information for assessing the financial stability, risk
management, and profitability of a bank. However, it's important to consider these
ratios in the context of the broader economic and market conditions, as well as the
bank's specific business model and strategies. Additionally, a thorough analysis should
include factors beyond ratios, such as management quality, regulatory environment,
and competitive positioning.
18
CHAPTER – II
REVIEW OF LITERATURE
19
INTRODUCTION
EQUITY ANALYSIS ON BANKING SECTOR
The main aim of this project is to analyse current growth trend of scripts of
banking in equity market. Based on the study of Indian economy.
India is a developing country. Nowadays many people are interested to invest in

financial markets especially on equities to get high returns, and to save tax in honest
ways. Equities are playing a major role in contribution of capital to the business from
the beginning of capital markets. Since the introduction of the concept of shares, large
numbers of investors have shown interest to invest in the stock market. In industries
plagued with
On a company's balance sheet, equity is represented by the following accounts:

common stock, preferred stock, paid-in capital, and retained earnings. Equity can be
calculated by subtracting total liabilities from total assets. Stock analysis is a term that
refers to the evaluation of a particular trading instrument, an investment sector or the
market as a whole. Stock analysts attempt to determine the future activity of an
instrument, sector or market. There are two basic types of stock analysis:
fundamental analysis and technical analysis. Fundamental analysis concentrates on data

from sources including financial records, economic reports, company assets and market
share. Technical analysis focuses on the study of past market action to predict future
price movement.
20
REVIEW OF LITERATURE :
(Raghuram Rajan), in his seminal work "Fault Lines: How Hidden Fractures Still
Threaten the World Economy," delves into the vulnerabilities present within banking
sectors worldwide, emphasizing the significance of thorough equity research to identify
and address these fault lines. Rajan's exploration provides a foundation for
comprehending the complexities inherent in banking systems and serves as a crucial
reference point for understanding the Indian banking sector's dynamics.
(Sodhi & Wraich, 2016) claims that the fundamental analysis examines the many
financial, economic, and industrial elements that affect the risk-return of the assets and
aid in the choice of an investment strategy. For the purpose of analysis, the author has
chosen two private sector banks and three public sector banks. For the examination of
the chosen banks, variables like Net Profit Margin, Return on Equity, Earnings per
Share, P/E Ratio, and dividend payout ratio are employed. According to the study,
private sector banks are outperforming public sector banks in terms of performance.
Sharma and Verma's (2019) research, titled "Equity Research in Indian Banking
Sector: A Comprehensive Analysis" and published in the Journal of Finance and
Economic Analysis, offers a significant contribution to understanding the nuances of
equity research within the Indian banking sector. The study provides a comprehensive
analysis of financial indicators and market trends, shedding light on the challenges and
opportunities faced by banks in the Indian economic landscape. Their work becomes a
pivotal reference in the literature review, guiding the exploration of variables that
influence equity research outcomes in the dynamic context of Indian banking.
Dr. Rajeev Jain's (2018) exploration of the "Globalization of Indian Banking Sector:
Challenges and Opportunities" in the International Journal of Business and
Management Studies provides a crucial foundation for understanding the intricate
dynamics of the Indian banking landscape. Jain's work delves into the challenges and
opportunities arising from the globalization of Indian banks, offering insights into how
these institutions navigate the complexities of the global financial arena. This study
becomes a cornerstone in the literature review, highlighting the evolving role of Indian
banks on the global stage and setting the stage for a comprehensive analysis of equity
research in the sector.
21
(Jeevitha & Sravani, 2018) has conducted fundamental analysis for three public sector
banks. The study was conducted with the objective to help in Investment decision
making. The author has conducted three tier analysis i.e. economic, industry and
company analysis for the selected public sector banks.
Sharad Kumar in his article "Banking changing the gear"/(February 2010) has
reviewed that Indian banking is transforming itself into a customer centric, commercial
position by providing the better and qualitative services in addition to primary services
with the help of superior technology and effective innovation which is producing
customer delight. India has always been a high potential of savings and deposits and its
customers were by and large conservative in nature. He also explained that today's
customer is wise one. They are clear in their mind about their needs, desire, wants and
the capabilities that they posses in converting their desire into demand. The relationship
between the desire and demand is one which generates all the activities of the economy.
(Swati Bhatnagar) : Bhatnagar's research on "Risk Management in Indian Banks: A

Comparative Analysis" offers a detailed examination of risk management practices
within Indian banks. This comparative analysis provides a framework for assessing risk
exposures, capital adequacy, and strategies employed by banks, contributing
significantly to the understanding of risk assessment in the Indian banking context.
(Nirmal Mohanty) : Nirmal Mohanty's work "Equity Research in Emerging Markets:

A Comprehensive Guide" forms a pivotal resource for understanding the nuances of
equity research within emerging economies like India. Mohanty underscores the unique
challenges and opportunities presented by the Indian banking sector, emphasizing the
necessity for a nuanced approach that considers regulatory frameworks, market
dynamics, and macroeconomic factors.
In Ghosh and Roy's (2020) study titled "Regulatory Framework and Equity Valuation:
A Case Study of Indian Banks" published in the Journal of Banking Regulation, the
authors delve into the intricate relationship between regulatory frameworks and the
valuation of equity in Indian banks. This research provides a valuable perspective on
how regulatory dynamics impact the financial valuation of banks within the Indian
context. As a key reference in the literature review, Ghosh and Roy's work underscores
22
the importance of regulatory considerations in shaping equity research outcomes for
the Indian banking sector.
Agarwal et al.'s (2021) study, "Empirical Analysis of Financial Performance

Indicators in Indian Banking Sector," published in the International Journal of Finance
and Banking Research, presents an empirical exploration of financial performance
indicators within the Indian banking sector. Their research contributes crucial insights
into the quantitative aspects of banking performance. As a notable reference in the
literature review, Agarwal et al.'s work guides the understanding of empirical
methodologies and financial metrics used in assessing the performance of banks in the
Indian context.
(Limbore, Nilesh) A Study Of Banking Sector In India And Overview Of Performance

Of Indian Banks With Reference To Net Interest Margin And Market Capitalization Of
Banks.
M & Vs, Sridevi. (2019) comparison and evaluation of the financial performance of
selected banks in India to compare and evaluate the financial performance of selected
banks using camel rateing says the study's secondary data was gathered from annual
reports of the banks, bulletins, periodicals, news letters, internal bank reports, journals,
magazines, and websites. The camel framework has been used to analyse the collected
data. ICICI bank, HDFC bank, yes bank, axis bank, and federal bank are the banks
chosen for analysis.
N.P., Abdul & Akhtar, S M. (2020) Recent Development in Indian Banking Sector
23
CHAPTER – III
PROFILE OF THE ORGANISATION
24
PROFILE :
NAME SAMRUDDHI SECURITIES & INVESTMENTS
401, 4th Floor, Rushiraj Regency, Near Vidya Vikas Circle,

ADDRESS
Gangapur Road, Nashik – 422005.
CONTACT NO. 0253282679/80/81
EMAIL samruddhi_securities@yahoo.co.in
Table 3.1 : Table of Organisation’s Profile
VISION AND MISSION

“Use Our Research To Manage Youre Wealth”
PRODUCTS & SERVICES PROFILE
• Share Trading (NSE/BSE)

• Derivative Trading
• Commodities Trading (NCDEX/MCX)
• Currency Trading
• Portfolio Management
• Tax Saving Bonds
• Mutual Funds
• Technical & Fundamental Research
• Investment Advisory
• Depository
• IPO’s
• Capital Gain Bond
25
HISTORICAL BACKGROUND :
Established in the year 2003, SAMRUDDHI SECURITIES AND INVESTMENTS

in Gangapur Road, Nashik is a top player in the category investment consultants in the
Nashik. This well-known establishment acts as a one stop destination servicing
customers both local and from other parts of the Nashik.
Over the course of its journey, this business has established a foothold in it’s industry.
The belief that customer satisfaction is as important as their products and services, have
helped this establishment garner a vast base of customers, which continues to grow by
the day. This business employs individuals that are dedicated towards their respective
roles and put in a lot of effort to achieve the common vision and larger goals of the
company. In the near future, this business aims to expand its line of products and
services and cater to a larger client base.
DIFFERENT DEPARTMENTS
1. Mutual Fund
2. Stock Broking
CURRENT PICTURE OF THE COMPANY
1. Total Mutual Fund investors : 850

2. Total Stock Investors : 420
26
CHAPTER – IV
RESEARCH METHODOLOGY
27
INTRODUCTION :
Conducting a comprehensive equity research analysis of the Indian banking sector
requires a well-defined research methodology to ensure the accuracy, objectivity, and
reliability of the findings. In this section, we outline the research methodology that
underpins our analysis, explaining the steps and techniques used to gather, analyse, and
interpret data for a holistic assessment of the sector.
DATA COLLECTION :
There are two types of data they are Primary Data And Secondary Data
• Primary Data: Direct collection of data from the source of information, technology
including personal interviewing, survey etc. Note: Mostly use the secondary data
only
• Secondary Data: Indirect collection of data from sources containing past or recent
past information like Bank’s Brochures, Annual publications, Books, Newspaper &
Magazines etc.
SAMPLING PLAN
• Sample Size : HDFC bank, ICICI Bank, SBI bank, KOTAK bank data
• Statistical tools :-
o Fundamental Analysis Tools
o Technical Analysis Tools Chart analysis and patterns
OBJECTIVE OR THE STUDY

• To Study the Banking sector in stock market in India.
• To Study performance of Banking Sector in stock market of India.
• To Study the Equity Research Analysis
• To Study the Equity Research using Fundamental Analysis and Ratio
Analysis.
• To Study of comparative analysis of Selected Banks.
28
SCOPE OF THE STUDY :
The banking sector is having broader scope in India. The important issue is the financial
health of the Indian banking sector. The investigation, however, will only focus on a
some top 4 banks of India which includes public and private banks. Foreign banks are
not included in the study. Since their laws and regulations are different from those of
other commercial banks. The period from September 2023 to November 2023 has been
chosen because it will adequately capture the evolution of the banks financial and
equity performance.
LIMITATIONS OF THE STUDY :
• The study depends on the secondary data collected through the annual reports, news
and research reports.
• Period of financials is limited to 5 years only.
• The results of the study is restricted to selected banks only.
• Economic conditions in India can be subject to volatility and change. Unforeseen
economic events or crises can affect the financial stability and performance of
banks, making it challenging to predict long-term trends accurately.
• The Indian banking sector faces unique challenges, including political and
regulatory risks. These can be difficult to quantify and incorporate into the analysis.
• Investor sentiment and market perceptions can have a significant impact on stock
prices and market dynamics. These factors may not always align with fundamental
analysis and can lead to market anomalies.
29
CHAPTER – V
DATA ANALYSIS & INTERPRETATION
30
INCOME STATEMENT
in Billion
HISTORICAL DATA ESTIMATED DATA
INCOME
2019A 2020A 2021A 2022A 2023A 2024E 2025E 2026E
STATEMENT
Interest Income 989.7 1148.1 1208.6 1277.5 1615.9 2589.8 3031.5 3496.9
Interest Expense 507.3 586.3 559.8 557.4 747.4 1368.3 1592.7 1789.0
1,221.5 1,438.8 1,707.9
Net Interest Income 482.40 561.80 648.80 720.10 868.50
0 0 0
Growth % #VALUE! 16.46% 15.49% 10.99% 20.61% 40.64% 17.79% 18.70%
Non-Interest Income
176.3 232.6 252.0 295.1 312.1 383.9 453.1 530.1
(Other Income )
1,015.2 1,180.6 1,605.4 1,891.9 2,238.0
Total Income 658.70 794.40 900.80
0 0 0 0 0
#VALUE 20.60 13.39 12.70 16.29 35.98 17.85 18.29
Growth %
! % % % % % % %
Operating Expenses 261.2 307.0 327.2 374.4 476.5 579.4 674.3 789.1
Pre-Provision Profit 397.5 487.4 573.6 640.8 704.1 1,026.0 1,217.6 1,448.9
Growth % #VALUE! 22.62% 17.69% 11.72% 9.88% 45.72% 18.67% 19.00%
Provisions 75.5 121.4 157.0 150.6 119.2 157.7 158.8 178.4
PBT (Profit Before Tax) 322.0 366.0 416.6 490.2 584.9 868.3 1,058.8 1,270.5
Tax 111.2 103.5 105.4 120.5 143.8 213.6 260.5 312.5

Tax Rate % 34.53% 28.28% 25.30% 24.58% 24.59% 24.60% 24.60% 24.60%
PAT (Profit After Tax) 210.8 262.5 311.2 369.7 441.1 654.7 798.3 958.0
Growth % #VALUE! 24.53% 18.55% 18.80% 19.31% 48.42% 21.93% 20.01%
Table 5.1 : Table of HDFC Bank Income Statement

INTERPRETATION :
HDFC Bank has consistently grown its income, profitability, and efficiency over the
past five years and is expected to continue this trend in the future. This is evident from
the consistent increase in key metrics like Interest Income, Total Income, Pre-Provision
Profit, and PAT. The bank's profitability has been driven by a combination of factors,
including rising interest rates, strong loan book growth, and efficient cost management.
Interest Income is expected to significantly increase in 2023 due to rising interest rates
and is expected to continue growing at a healthy pace in the following years. Non-
Interest Income is also expected to grow steadily, driven by the bank's focus on fee-
based income sources. Operating Expenses are expected to increase, but at a slower rate
31
than income, leading to improved operating efficiency. Provisions are expected to
remain moderate, suggesting that the bank is managing credit risks effectively.
Profitability is expected to remain strong, with PAT estimated to reach ₹958.0 billion
by 2026.
Overall, HDFC Bank is a well-managed and financially sound bank that is well-
positioned to capitalize on the opportunities presented by the Indian economy.
However, it is important to monitor the bank's performance and address any emerging
risks.
32
BALANCESHEET STATEMENT
in
Billion
BALANCESHEET
2020A 2021A 2022A 2023A 2024E 2025E 2026E
STATEMENT
Equity Share Capital 5.5 5.5 5.5 5.6 7.5 7.5 7.5
Reserve & Surplus 1,704.4 2,031.7 2,395.4 2,796.4 4,486.8 5,119.6 5,896.9
Net Worth 1,709.9 2,037.2 2,400.9 2,802.0 4,494.3 5,127.1 5,904.4
13,350. 15,592. 18,833. 23,839. 28,130. 33,025.
Deposits 11,475.0
6 2 9 3 4 1
Growth % 24.30% 16.35% 16.79% 20.79% 26.58% 18.00% 17.40%
Borrowings 1,446.3 1,354.9 1,848.2 2,067.7 6,485.3 7,100.7 7,777.1
Other Liabilities &
673.9 726.0 844.1 957.2 1,379.1 1,572.2 1,792.3
Prov.
17,468. 20,685. 24,660. 36,198. 41,930. 48,498.
Total Liabilities 15,305.1
7 4 8 0 4 9
Current Assets 866.2 1,194.7 1,523.3 1,937.7 2,013.6 2,184.3 2,427.7
Investments 3,918.3 4,437.3 4,555.4 5,170.0 7,336.3 8,583.5 9,913.9
Growth % 33.68% 13.25% 2.66% 13.49% 41.90% 17.00% 15.50%
11,328. 13,688. 16,005. 25,130. 29,302. 34,137.
Loans & Advances 9,937.0
4 2 9 6 3 2
Growth % 21.27% 14.00% 20.83% 16.93% 57.01% 16.60% 16.50%
Fixed Assets 44.3 49.1 60.8 80.2 140.7 156.5 189.3
Other Assets 539.3 459.3 857.7 1,467.1 1,576.9 1,703.9 1,830.9
17,468. 20,685. 24,660. 36,198. 41,930. 48,499.
Total Assets 15,305.1
8 4 9 1 5 0
Table 5.2 : Table of HDFC Bank Balance sheet Statement
INTERPRETATION :
o The balance sheet shows significant growth across all major categories, indicating
the bank's expansion and increasing size.
o Total assets are expected to grow from ₹24,660.9 billion in 2023 to ₹48,499.0
billion in 2026, representing a remarkable 97% increase.
o Total liabilities are projected to increase at a similar pace, demonstrating the bank's
ability to fund its growth.
o Net worth (equity + reserves) is expected to grow steadily, reaching ₹5,904.4 billion
in 2026.
o Deposits are the primary source of funding, exhibiting consistent growth
throughout the period. This suggests strong customer trust and confidence in the
bank.
33
o Borrowings are expected to increase significantly in 2024 and beyond, indicating
the bank's reliance on external funding to support its expansion.
o Investments are expected to grow steadily, demonstrating the bank's focus on
generating stable income streams.
o Loans & advances are the largest asset category, reflecting the bank's core business
of lending. This category is expected to witness significant growth, driven by the
anticipated economic recovery.
o Current assets are expected to increase, ensuring sufficient liquidity to meet day-to-
day operational needs.
Overall, HDFC Bank's balance sheet reflects a healthy and growing financial
institution. The bank is well-positioned to capitalize on the opportunities presented by
the Indian economy and achieve its ambitious growth targets. However, it is important
to monitor the bank's risk profile and address any emerging challenges to ensure long-
term sustainability.
34
INCOME STATEMENT
in
Million
INCOME
2020A 2021A 2022A 2023A 2024E 2025E 2026E
STATEMENT
Net Interest
3,32,671 3,89,894 4,74,661 6,21,286 7,40,920 8,56,119 9,91,833
Income
Growth % #DIV/0! 17.20% 21.74% 30.89% 19.26% 15.55% 15.85%
Non-Interest
Income (Other 1,64,486 1,89,685 1,85,175 1,98,314 2,30,045 2,73,753 3,25,766
Income )
Total Income 4,97,157 5,79,579 6,59,836 8,19,600 9,70,965 11,29,872 13,17,599
Growth % #DIV/0! 16.579% 13.847% 24.213% 18.468% 16.366% 16.615%
Operating
2,16,144 2,15,608 2,67,333 3,28,732 4,02,150 4,62,188 5,34,049
Expenses
Pre-Provision
2,81,013 3,63,971 3,92,503 4,90,868 5,68,815 6,67,684 7,83,550
Profit
Growth % #DIV/0! 29.521% 7.839% 25.061% 15.879% 17.382% 17.353%
Provisions 1,40,532 1,62,144 86,414 66,656 39,919 60,191 77,311
PBT (Profit
1,40,481 2,01,827 3,06,089 4,24,212 5,28,896 6,07,493 7,06,239
Before Tax)
Tax 61,172 39,900 72,694 1,05,247 1,30,637 1,50,051 1,74,441
Tax Rate % 43.54% 19.77% 23.75% 24.81% 24.70% 24.70% 24.70%
PAT (Profit After
79,309 1,61,927 2,33,395 3,18,965 3,98,259 4,57,442 5,31,798
Tax)
Growth % #DIV/0! 104.17% 44.14% 36.66% 24.86% 14.86% 16.25%
Table 5.3 : Table of ICICI Bank Income Statement
INTERPRETATION :
o ICICI Bank has consistently grown its income, profitability, and efficiency over the
past five years and is expected to continue this trend in the future. This is evident
from the consistent increase in key metrics like Interest Income, Total Income, Pre-
Provision Profit, and PAT.
o The bank's profitability has been driven by a combination of factors, including
rising interest rates, strong loan book growth, and efficient cost management.
o Interest Income is expected to significantly increase in 2023 due to rising interest
rates and is expected to continue growing at a healthy pace in the following years.
35
o Non-Interest Income is expected to grow steadily, driven by the bank's focus on
fee-based income sources.
o Operating Expenses are expected to increase, but at a slower rate than income,
leading to improved operating efficiency.
o Provisions are expected to remain moderate, suggesting that the bank is managing
credit risks effectively.
o Profitability is expected to remain strong, with PAT estimated to reach ₹5,31,798
million by 2026.
Overall, ICICI Bank is a well-managed and financially sound bank that is well-
positioned to capitalize on the opportunities presented by the Indian economy.
However, it is important to monitor the bank's performance and address any emerging
risks
36
in
Million
BALANCESHEET 2020A 2021A 2022A 2023A 2024E 2025E 2026E
Equity Share Capital 12,948 13,834 13,900 13,968 13,968 13,968 13,968
Reserve & Surplus 11,52,062 14,61,227 16,88,556 19,85,577 23,24,472 27,19,060 31,81,019
Net Worth 11,65,010 14,75,061 17,02,456 19,99,545 23,38,440 27,33,028 31,94,987

1,06,45,7 1,18,08,4 1,38,98,4 1,63,30,7 1,91,55,9
Deposits 77,09,690 93,25,222
16 07 95 32 48
Growth % #DIV/0! 20.95% 14.16% 10.92% 17.70% 17.50% 17.30%
Borrowings 16,28,968 9,16,310 10,72,314 11,93,255 13,93,135 16,02,787 18,45,984

Other Liabilities &
479950 587704 689828 833251 999901 1149886 1322369
Prov.
1,09,83,6 1,23,04,2 1,41,10,3 1,58,34,4 1,86,29,9 2,18,16,4 2,55,19,2
Total Liabilities
18 97 14 58 71 33 88
Current Assets 11,91,557 13,31,283 16,78,224 11,94,383 14,46,650 15,76,418 17,58,374
Investments 24,95,315 28,12,865 31,02,410 36,23,297 42,39,258 50,02,324 58,52,719
Growth % #DIV/0! 12.73% 10.29% 16.79% 17.00% 18.00% 17.00%

1,01,96,3 1,20,62,3 1,42,33,5 1,68,52,5
Loans & Advances 64,52,900 73,37,291 85,90,204
83 21 39 10
Growth % #DIV/0! 13.71% 17.08% 18.70% 18.30% 18.00% 18.40%
Fixed Assets 84,103 88,776 93,738 95,998 1,03,678 1,11,973 1,20,930
Other Assets 7,59,777 7,34,112 6,48,401 7,32,005 7,78,063 8,92,179 9,34,755

1,09,83,6 1,23,04,3 1,41,12,9 1,58,42,0 1,86,29,9 2,18,16,4 2,55,19,2
Total Assets
52 27 77 66 70 33 88
Table 5.4 : Table of ICICI Bank Balance sheet Statement
INTERPRETATION :
o Total assets are expected to grow from ₹1,58,42,066 million in 2023 to
₹2,55,19,288 million in 2026, representing a 61% increase.
o Net worth (equity + reserves) is expected to grow steadily, reaching ₹31,94,987
million by 2026.
bank.
37
o Borrowings are expected to increase steadily, indicating the bank's reliance on
external funding to support its expansion.
of lending. This category is expected to witness substantial growth, driven by the
o Current assets are expected to increase, ensuring sufficient liquidity to meet day-to-
day operational needs.
38
INCOME STATEMENT
in
Billlion
INCOME
2020A 2021A 2022A 2023A 2024E 2025E 2026E
STATEMENT
2,651. 2,754. 3,321. 4,314. 4,747.
Interest Income 2,573.2 5,216.6
5 6 0 5 9
Interest 1,544. 1,547. 1,872. 2,717. 2,926.
1,592.4 3,177.3
Expense 4 5 6 2 6
Net Interest 1,107. 1,207. 1,448. 1,597. 1,821.
980.8 2,039.3
Income 1 1 4 3 3
#DIV/0
Growth % 12.9% 9.0% 20.0% 10.3% 14.0% 12.0%
!
Non-Interest
Income (Other 452.2 435.0 405.6 366.2 476.0 499.8 564.8
Income )
1,542. 1,612. 1,814. 2,073. 2,321.
Total Income 1,433.0 2,604.1
1 7 6 3 1
#DIV/0
Growth % 7.6% 4.6% 12.5% 14.3% 12.0% 12.2%
!
Operating 1,154. 1,253.
751.7 826.5 859.8 977.4 1,373.8
Expenses 5 7
Pre-Provision 1,067.
681.3 715.6 752.9 837.2 918.8 1,230.3
Profit 4
#DIV/0
Growth % 5.0% 5.2% 11.2% 9.7% 16.2% 15.3%
!
Provisions 430.7 440.1 244.5 165.1 86.8 140.4 193
PBT (Profit 1,037.3
250.60 275.50 508.40 672.10 832.00 927.00
Before Tax) 0
Tax 105.7 71.3 117.5 169.7 210.5 234.5 262.4
Tax Rate % 42.2% 25.9% 23.1% 25.2% 25.3% 25.3% 25.3%
PAT (Profit
144.90 204.20 390.90 502.40 621.50 692.50 774.90
After Tax)
#DIV/0
Growth % 40.9% 91.4% 28.5% 23.7% 11.4% 11.9%
!
Table 5.5 : Table of SBI Bank Income Statement
39
INTERPRETATION :
o SBI Bank has experienced steady growth in income and profitability over the past
three years.
o This growth is expected to continue in the coming years, with PAT (Profit After
Tax) projected to reach ₹774.9 million by 2026.
o The bank's profitability is primarily driven by net interest income, which has
benefited from rising interest rates and strong loan book growth.
o Interest income is expected to grow consistently, driven by rising interest rates and
increasing loan book size.
o Non-interest income is expected to remain relatively stable.
o Operating expenses are expected to increase at a moderate pace.
o Provisions are expected to decline as the bank's credit risk profile improves.
o Profitability is expected to continue improving, with PAT projected to grow at a
healthy rate.
40
in Billlion

BALANCESHE
2020A 2021A 2022A 2023A 2024E 2025E 2026E
ET
Equity Share
9 9 9 9 9 9 9
Capital
Reserve &
2,311 2,530 2,792 3,267 3,766 4,327 4,961
Surplus
Net Worth 2,320 2,539 2,801 3,276 3,775 4,336 4,970
Deposits 32,416 36,813 40,515 44,238 48,662 53,528 59,148
#DIV/0 13.56 10.06 10.00 10.00 10.50
Growth % 9.19%
! % % % % %
Borrowings 3,147 4,173 4,260 4,931 5,552 6,219 6,982
Other Liabilities
1,631 1,820 2,299 2,725 3,079 3,541 4,072
& Prov.
Total Liabilities 39,514 45,345 49,875 55,170 61,068 67,624 75,172
Current Assets 2,511 3,430 3,946 3,079 3,237 3,467 3,731
Investments 10,470 13,517 14,814 15,704 16,803 17,912 19,219
#DIV/0 29.10
Growth % 9.60% 6.01% 7.00% 6.60% 7.30%
! %
Loans &
23,253 24,495 27,340 31,993 36,312 41,286 46,860
Advances
#DIV/0 11.61 17.02 13.50 13.70 13.50
Growth % 5.34%
! % % % % %
Fixed Assets 384 384 377 424 458 494 534
Other Assets 2,896 3,518 3,399 3,971 4,257 4,464 4,827
Total Assets 39,514 45,344 49,876 55,171 61,067 67,623 75,171
Table 5.6 : Table of SBI Bank Balance sheet Statement
INTERPRETATION :
o Total assets are expected to grow from ₹55,171 billion in 2023 to ₹75,171 billion
in 2026, representing a 36% increase.
41
o Net worth (equity + reserves) is expected to grow steadily, reaching ₹4,970 billion
by 2026.
bank.
o Borrowings are expected to increase steadily, indicating the bank's reliance on
external funding to support its expansion.
of lending. This category is expected to witness substantial growth, driven by the
o Current assets are expected to decrease, suggesting a shift towards longer-term
investments and loans.
Overall, SBI Bank's balance sheet reflects a healthy and growing financial institution.
The bank is well-positioned to capitalize on the opportunities presented by the Indian
economy and achieve its ambitious growth targets. However, it is important to monitor
the bank's risk profile and address any emerging challenges to ensure long-term
sustainability.
42
INCOME STATEMENT
In Billion
INCOME
STATEMENT 2020A 2021A 2022A 2023A 2024E 2025E 2026E
Interest Income 269.3 268.4 270.4 342.5 449.0 521.6 607.2
Interest
Expense 134.3 115.0 102.2 127.0 192.5 228.3 260.1
Net Interest
Income 135.0 153.4 168.2 215.5 256.5 293.3 347.1
20.43 13.63 28.12 19.03 14.35 18.34
Growth %
% % 9.65% % % % %
(Other Income)
53.7 50.1 59.9 70.8 98.5 116.2 135.9
Total Income 188.7 203.5 228.1 286.3 355.0 409.5 483.0
18.90 12.09 25.52 24.00 15.35 17.95
Growth %
% 7.84% % % % % %
Operating
Expenses 88.5 85.8 107.5 137.9 162.3 189.3 221.5
Pre-Provision
Profit 100.2 117.7 120.6 148.4 192.7 220.2 261.5
19.86 17.47 23.05 29.85 14.27 18.76
Growth %
% % 2.46% % % % %
Provisions 22.2 24.6 6.9 4.6 14 19.9 26.4
PBT (Profit
Before Tax) 78.0 93.1 113.7 143.8 178.7 200.3 235.1
Tax 18.6 23.4 27.9 34.5 44 49.3 57.8
23.85 25.13 24.54 23.99 24.62 24.61 24.59
Tax Rate %
% % % % % % %
PAT (Profit
After Tax) 59.4 69.7 85.8 109.3 134.7 151.0 177.3
21.72 17.34 23.10 27.39 23.24 12.10 17.42
Growth %
% % % % % % %
Table 5.7 : Table of Kotak Mahindra Bank Income Statement
43
INTERPRETATION :
o Kotak Mahindra Bank has consistently grown its income and profitability over the
past three years and is expected to continue this trend in the coming years.
o This growth is driven by a combination of factors, including rising interest
rates, strong loan book growth, and efficient cost management.
o The bank's profitability is expected to remain strong, with PAT (Profit After Tax)
projected to reach ₹177.3 billion by 2026.
o Interest income is expected to grow significantly, driven by rising interest rates and
strong loan book growth.
o Non-interest income is expected to grow steadily, driven by the bank's focus on fee-
based income sources.
o Operating expenses are expected to increase at a moderate pace.
o Provisions are expected to remain moderate, suggesting that the bank is managing
credit risks effectively.
o Profitability is expected to continue improving, with PAT projected to grow at a
healthy rate.
Overall, Kotak Mahindra Bank is a well-managed and financially sound bank that is
well-positioned to capitalize on the opportunities presented by the Indian economy.
44
In Billion
BALANCESHEE
T 2020A 2021A 2022A 2023A 2024E 2025E 2026E
Equity Share
Capital 9.6 9.9 9.9 9.9 9.9 9.9 9.9
Preference Share
Capital 5 5 5 5 5 5 5
Reserve &
Surplus 475.6 622.4 710.0 820.3 951.8 1099.4 1273.2
Net Worth 490.2 637.3 724.9 835.2 966.7 1114.3 1288.1
2,628. 2,801. 3,116. 3,631. 4,270. 5,017. 5,895.
Deposits
2 0 8 0 0 3 3
16.35 11.27 16.50 17.60 17.50 17.50
Growth %
% 6.57% % % % % %
Borrowings 379.9 236.5 259.7 234.2 279.8 325.3 375.8
Other Liabilities
& Prov. 104.2 159.9 192.9 198.3 220.1 246.5 276.1
Total Liabilities 3602.5 3834.7 4294.3 4898.7 5736.6 6703.4 7835.3
Current Assets 532.9 396.3 429.2 325.4 345.8 400.7 470.3
Investments 750.5 1051.0 1005.8 1214.0 1414.4 1640.6 1903.2
40.04 - 20.70 16.51 15.99 16.01
Growth %
5.42% % 4.30% % % % %
Loans & 2,197. 2,236. 2,712. 3,198. 3,768. 4,427. 5,193.
Advances 5 7 5 6 0 4 3
21.27 17.92 17.80 17.50 17.30
Growth %
6.84% 1.78% % % % % %
Fixed Assets 16.2 15.4 16.4 19.2 20.5 22.0 23.5
Other Assets 105.4 135.4 130.3 141.3 188.0 212.7 245.0
Total Assets 3602.5 3834.8 4294.2 4898.5 5736.7 6703.4 7835.3
Table 5.8 : Table of Kotak Mahindra Bank Balance Sheet Statement
INTERPRETATION :
o Kotak Mahindra Bank's balance sheet shows significant growth across all major
categories, indicating the bank's expansion and increasing size.
o Total assets are expected to grow from ₹4,898.5 billion in 2023 to ₹7,835.3 billion
in 2026, representing a 59.8% increase.
45
o Net worth (equity + reserves + preference share capital) is expected to grow
steadily, reaching ₹1,288.1 billion by 2026.
bank.
o Borrowings are expected to increase moderately, indicating a balanced approach to
funding.
o Investments are expected to grow steadily, reflecting the bank's focus on generating
stable income streams.
o Loans & advances are the largest asset category, representing the bank's core
business of lending. This category is expected to witness substantial growth, driven
by the anticipated economic recovery.
o Current assets are expected to decrease, suggesting a shift towards longer-term
investments and loans.
Overall, Kotak Mahindra Bank's balance sheet reflects a healthy and growing financial
institution. The bank is well-positioned to capitalize on the opportunities presented by
the Indian economy and achieve its ambitious growth targets.
46
COMPARATIVE ANALYSIS
1) COMPARATIVE ANALYSIS OF RETURN ON CAPITAL EMPLOYED
(ROCE) RATIO :
RETURN ON CAPITAL EMPLOYED (ROCE) RATIO

2019 2020 2021 2022 2023
HDFC 3.45 3.43 3.57 3.38 3.1
ICICI 2.39 2.6 2.86 2.58 2.86
SBI 0 1.94 1.77 1.57 1.74
KOTAK 3.08 3.29 3.62 3.25 3.41
Table 5.9 : Table of Return on Capital Employed Ratio
RETURN ON CAPITAL EMPLOYED (ROCE) RATIO

4
3.57 3.62
3.45 3.43 3.38 3.41
3.5 3.29 3.25
3.08 3.1
3 2.86 2.86
2.6 2.58
2.39
2.5
1.94
2 1.77 1.74
1.57
1.5
0.5
0
0
2019 2020 2021 2022 2023
HDFC ICICI SBI KOTAK
Graph 5.1 : Graph of Return on Capital Employed Ratio
INTERPRETAION :
HDFC:
HDFC has the highest average ROCE among the four banks at 3.386%.
HDFC also has the lowest standard deviation of ROCE at 0.174%, indicating the most
stable ROCE performance among the four banks.
The coefficient of variation of ROCE for HDFC is 0.052%, which is also the lowest
among the four banks, further confirming the stability of HDFC's ROCE performance.
47
ICICI:
ICICI has an average ROCE of 2.658%.
The standard deviation of ROCE for ICICI is 0.202%, which is higher than HDFC but
lower than SBI and KOTAK.
The coefficient of variation of ROCE for ICICI is 0.076%, which is higher than HDFC
but lower than SBI and KOTAK.
SBI:
SBI has the lowest average ROCE among the four banks at 1.404%.
SBI also has the highest standard deviation of ROCE at 0.796%, indicating the most
volatile ROCE performance among the four banks.
The coefficient of variation of ROCE for SBI is 0.567%, which is the highest among
the four banks, further confirming the volatility of SBI's ROCE performance.
KOTAK:
KOTAK has an average ROCE of 3.330%.
The standard deviation of ROCE for KOTAK is 0.201%, which is slightly higher than
HDFC but lower than SBI.
The coefficient of variation of ROCE for KOTAK is 0.060%, which is slightly higher
than HDFC but lower than SBI.
Overall Interpretation:
HDFC has the best ROCE performance among the four banks, with the highest average
ROCE and the lowest volatility.
ICICI has a lower average ROCE than HDFC but still exhibits better ROCE
performance than SBI and KOTAK.
SBI has the lowest average ROCE and the highest volatility among the four banks.
KOTAK has a similar average ROCE to HDFC, but its ROCE is slightly more volatile.
Conclusion:
Based on the ROCE analysis, HDFC is the best performing bank among the four.
Investors seeking a stable and high return on their capital should consider investing in
HDFC. ICICI is also a good option for investors seeking a higher return than SBI and
KOTAK, although its ROCE performance is not as stable as HDFC. SBI and KOTAK
are not as attractive options for investors based solely on their ROCE performance.
48
2) COMPARATIVE ANALYSIS OF NET INTEREST MARGIN RATIO :
NET INTEREST MARGIN RATIO

2019 2020 2021 2022 2023
HDFC 3.97 3.79 3.85 3.64 3.67
ICICI 2.64 2.91 2.95 3.09 3.6
SBI 2.5 2.59 2.51 2.49 2.7
KOTAK 3.73 3.96 4.14 4.05 4.47
Table 5.10 : Table of Net Interest Margin Ratio
NET INTEREST MARGIN RATIO

5
4.47
4.5 4.14 4.05
3.97 3.96 3.85
4 3.73 3.79 3.64 3.673.6
3.5 3.09
2.91 2.95
3 2.642.5 2.59 2.7
2.51 2.49
2.5
2
1.5
1
0.5
0
2019 2020 2021 2022 2023
Graph 5.2 : Graph of Net Interest Margin Ratio

INTERPRETAION :
HDFC:
HDFC has the highest average NIM among the four banks at 3.846%.
HDFC's NIM has declined slightly over the past five years, from 3.97% in 2019 to
3.67% in 2023.
However, HDFC's NIM remains higher than the other three banks.
ICICI:
ICICI has an average NIM of 2.898%.
ICICI's NIM has improved over the past five years, from 2.64% in 2019 to 3.6% in
2023.
ICICI's NIM is now the second-highest among the four banks.
SBI:
SBI has the lowest average NIM among the four banks at 2.548%.
49
SBI's NIM has remained relatively flat over the past five years, ranging from 2.5% to
2.7%.
SBI's NIM is the lowest among the four banks.
KOTAK:
KOTAK has an average NIM of 4.068%.
KOTAK's NIM has improved over the past five years, from 3.73% in 2019 to 4.47% in
2023.
KOTAK has the highest NIM among the four banks.
HDFC has the best NIM performance among the four banks, with the highest average
NIM.
ICICI's NIM performance has improved over the past five years, and it now has the
second-highest NIM among the four banks.
SBI has the lowest average NIM among the four banks.
KOTAK has the highest NIM among the four banks, and its NIM has also improved
over the past five years.
Conclusion:
Based on the NIM analysis, KOTAK is the best performing bank among the four.
Investors seeking a bank with a high NIM should consider investing in KOTAK. HDFC
is also a good option, as it has the second-highest NIM and a good track record of NIM
performance. ICICI and SBI are not as attractive options for investors based solely on
their NIM performance.
50
3) COMPARATIVE ANALYSIS OF CASA RATIO :
CASA RATIO
2019 2020 2021 2022 2023
HDFC 42.35 42.18 46.07 48.13 44.37
ICICI 48.77 44.83 46.16 48.6 45.47
SBI 0 44.17 45.4 44.51 42.66
KOTAK 52.46 56.35 60.47 60.62 52.77
Table 5.11 : Table of CASA Ratio
CASA RATIO
70
60.47 60.62
60 56.35
52.46 52.77
48.77 48.6
48.13
50 44.83 46.07
46.16
45.4 44.51 45.47
44.37
42.35 42.18 44.17 42.66
40
30
20
10
0
0
2019 2020 2021 2022 2023
Graph 5.3 : Graph of CASA Ratio
INTERPRETATION :
HDFC:
Average CASA ratio of 44.62%, indicating a moderate reliance on low-cost deposits.
Fluctuations within a reasonable range, highlighting a stable CASA base.
Relatively lower coefficient of variation suggests consistent performance.
ICICI:
Highest average CASA ratio of 46.97%, signifying the strongest reliance on low-cost
deposits.
Moderate fluctuations, indicating a fairly stable CASA base.
Low coefficient of variation confirms consistency in CASA growth.
51
SBI:
Average CASA ratio of 44.35%, similar to HDFC.
Relatively lower fluctuations compared to HDFC.
Coefficient of variation suggests consistent CASA performance.
KOTAK:
Highest average CASA ratio of 55.54%, showcasing the strongest reliance on low-cost
deposits among the four banks.
Higher fluctuations compared to other banks, indicating a more dynamic CASA base.
Higher coefficient of variation confirms the dynamic nature of KOTAK's CASA
growth.
All four banks exhibit a trend of increasing CASA ratios, indicating a growing focus
on low-cost deposits.
KOTAK has the highest average CASA ratio, suggesting a successful strategy in
attracting low-cost deposits.
ICICI follows closely with a consistently high CASA ratio, demonstrating effective
management of low-cost funding.
HDFC and SBI maintain stable CASA ratios, indicating a balanced approach to deposit
mix.
KOTAK exhibits the highest fluctuations in CASA ratio, suggesting a more aggressive
and dynamic approach to managing deposits.
Conclusion:
Investors seeking banks with a strong focus on low-cost deposits and potential for
further CASA growth should consider KOTAK and ICICI. HDFC and SBI offer a more
balanced approach with consistent CASA performance. Ultimately, the best choice
depends on individual investment goals and risk tolerance.
52
4) COMPARATIVE ANALYSIS OF COST INCOME RATIO (CIR) :
COST INCOME RATIO (CIR)

2019 2020 2021 2022 2023
HDFC 38.63 39.18 41.55 42.31 39.44
ICICI 65.83 62.68 60.99 57.5 54.34
SBI 52.01 51.27 53.21 52.68 47.91
KOTAK 51.48 51.34 59.74 60.22 57.16
Table 5.12 : Table of Cost Income Ratio
COST INCOME RATIO (CIR)

70 65.83
62.68 60.99 59.74 60.22
60 57.5 57.16
52.01 53.21 52.68 54.34
51.48 51.27
51.34
47.91
50
41.55 42.31
38.63 39.18 39.44
40
30
20
10
0
2019 2020 2021 2022 2023
Graph 5.4 : Graph of Cost Income Ratio

INTERPRETAION :
HDFC:
Average CIR of 40.22%, indicating a good control over operating costs relative to
income.
Relatively low fluctuations suggest efficient cost management.
Low coefficient of variation confirms consistency in cost management.
ICICI:
Highest average CIR of 58.27%, indicating a higher proportion of income consumed
by operating costs.
Highest fluctuations, suggesting potential challenges in controlling costs.
Highest coefficient of variation confirms the need for improvement in cost
management.
53
SBI:
Average CIR of 51.42%, indicating a moderate level of cost control relative to income.
Relatively low fluctuations suggest a stable cost management approach.
Low coefficient of variation confirms consistency in managing costs.
KOTAK:
Second highest average CIR of 55.99%, indicating a higher proportion of income
consumed by operating costs.
Moderate fluctuations suggest potential areas for cost optimization.
Coefficient of variation suggests a need for more consistent cost management practices.
HDFC has the best CIR performance among the four banks, indicating the highest level
of cost efficiency.
SBI also exhibits a good level of cost control, with a moderate CIR and low
fluctuations.
ICICI and KOTAK have higher CIRs, suggesting potential areas for improvement in
cost management.
ICICI exhibits the most significant fluctuations in CIR, highlighting a need for a more
consistent approach to controlling costs.
Conclusion:
Investors seeking banks with strong operational efficiency and a focus on cost control
should consider HDFC and SBI. ICICI and KOTAK offer potential for growth, but they
need to address their CIR challenges to improve profitability. Ultimately, the best
choice depends on the individual's investment goals and risk tolerance.
54
5) COMPARATIVE ANALYSIS OF RETURN ON ASSETS (ROA) RATIO :
RETURN ON ASSETS (ROA) RATIO

2019 2020 2021 2022 2023
HDFC 1.72 1.72 1.76 1.79 1.81
ICICI 0.34 0.69 1.16 1.43 1.73
SBI 0.05 0.47 0.46 0.65 0.93
KOTAK 1.82 1.93 2.08 2.21 2.4
Table 5.13 : Table of Return on Assets Ratio
RETURN ON ASSETS (ROA) RATIO

3
2.4
2.5 2.21
2.08
1.93
2 1.72 1.82 1.72 1.76 1.79 1.811.73
1.43
1.5
1.16
0.93
1 0.69 0.65
0.47 0.46
0.5 0.34
0.05
0
2019 2020 2021 2022 2023
Graph 5.5 : Graph of Return On Assets Ratio

INTERPRETAION :
HDFC:
Average ROA of 1.76%, indicating a consistently high and stable return on assets.
Minimal fluctuations suggest effective utilization of assets to generate profits.
Low coefficient of variation confirms consistency in ROA performance.
ICICI:
Average ROA of 1.04%, indicating a significant improvement over the past years.
Highest fluctuations, suggesting potential risks associated with asset utilization.
Highest coefficient of variation confirms the need for a more stable approach to
generating returns from assets.
55
SBI:
Average ROA of 0.51%, indicating a gradual improvement but still lagging behind
HDFC and KOTAK.
Moderate fluctuations suggest potential for further improvement in asset utilization.
Coefficient of variation suggests a need for consistency in asset management strategies.
KOTAK:
Highest average ROA of 2.09%, indicating the most efficient utilization of assets to
generate profits.
Moderate fluctuations suggest a strong and consistent asset management approach.
Coefficient of variation confirms the stability in KOTAK's ROA performance.
KOTAK leads the pack with the highest average ROA, showcasing its strong asset
management capabilities.
HDFC follows closely with a consistently high and stable ROA, demonstrating its
efficient use of assets.
ICICI exhibits significant improvement in ROA but faces challenges with stability due
to higher fluctuations.
SBI shows gradual improvement in ROA but needs to address asset utilization issues
to match the performance of HDFC and KOTAK.
Conclusion:
Investors seeking banks with the highest efficiency in generating returns from assets
should consider KOTAK. HDFC is another attractive option due to its consistent and
stable ROA performance. ICICI offers potential for growth but needs to address its
stability issues. SBI demonstrates improvement but requires further optimization of its
asset management strategies. Ultimately, the best choice depends on the individual's
investment goals and risk tolerance.
56
6) COMPARATIVE ANALYSIS OF RETURN ON EQUITY (ROE) RATIO :
RETURN ON EQUITY (ROE) RATIO

2019 2020 2021 2022 2023
HDFC 14.53 15.45 15.17 15.38 15.89
ICICI 3.82 7.98 11.9 14.04 16.1
SBI 0.98 8.69 8.89 12.53 16.8
KOTAK 12.46 12.89 11.84 12.5 13.34
Table 5.14 : Table of Return on Equity Ratio
RETURN ON EQUITY (ROE) RATIO

18 16.8
16.1
15.89
15.45 15.17 15.38
16 14.53 14.04
14 12.89 13.34
12.46 12.53
12.5
11.9 11.84
12
10 8.69 8.89
7.98
8
6
3.82
4
2 0.98
0
2019 2020 2021 2022 2023
Graph 5.6 : Graph of Return On Equity Ratio

INTERPRETATION :
HDFC:
Average ROE of 15.28%, indicating a consistently high and stable return on equity.
Minimal fluctuations suggest effective utilization of shareholder capital.
Low coefficient of variation confirms consistency in ROE performance.
ICICI:
Average ROE of 10.59%, indicating a significant improvement over the past years but
still lagging behind HDFC and KOTAK.
Highest fluctuations, suggesting potential risks associated with shareholder capital
utilization.
Highest coefficient of variation confirms the need for a more stable approach to
generating returns for shareholders.
57
SBI:
Average ROE of 9.98%, indicating a similar trend to ICICI but with slightly higher
fluctuations.
Highest coefficient of variation among the four banks, suggesting the greatest need for
consistency in generating returns for shareholders.
KOTAK:
Average ROE of 12.51%, indicating a strong and consistent return on shareholder
capital.
Minimal fluctuations suggest effective management of shareholder equity.
Low coefficient of variation confirms consistency in KOTAK's ROE performance.
HDFC leads the pack with the highest average ROE, showcasing its strong profitability
and shareholder value generation.
KOTAK follows closely with a consistently high and stable ROE, demonstrating its
effective utilization of shareholder capital.
ICICI and SBI exhibit improvement in ROE but face challenges with stability due to
higher fluctuations.
ICICI needs to address its variability in ROE performance, while SBI requires further
optimization of its capital management strategies.
Conclusion:
Investors seeking banks with the highest efficiency in generating returns for
shareholders should consider HDFC. KOTAK is another attractive option due to its
consistent and stable ROE performance. ICICI and SBI offer potential for improvement
in their ROE performance but require addressing their stability issues. Ultimately, the
best choice depends on the individual's investment goals and risk tolerance.
58
7) COMPARATIVE ANALYSIS OF GROSS NON-PERFORMING ASSETS
(GNPA) RATIO :
GROSS NON PERFORMING ASSETS (GNPA) RATIO

2019 2020 2021 2022 2023
HDFC 1.36 1.26 1.32 1.17 1.12
ICICI 6.7 5.53 4.96 3.6 2.81
SBI 7.53 6.15 4.98 3.97 2.78
KOTAK 1.94 2.16 3.22 2.37 1.76
Table 5.15 : Table of Gross Non-Performing Assets Ratio
GROSS NON PERFORMING ASSETS (GNPA) RATIO

8 7.53
7 6.7
6.15
6 5.53
4.964.98
5
3.97
4 3.6
3.22
2.812.78
3 2.37
1.94 2.16
1.76
2 1.36 1.26 1.32 1.17 1.12
1
0
2019 2020 2021 2022 2023
Graph 5.7 : Graph of Gross Non-Performance Assets Ratio

INTERPRETATION :
HDFC:
Lowest average GNPA Ratio (1.25%) among the four banks, indicating the most
efficient management of bad loans.
Minimal fluctuations suggest a strong and consistent approach to credit risk
management.
Low coefficient of variation confirms consistency in HDFC's GNPA performance.
ICICI:
Second-lowest average GNPA Ratio (4.54%), showcasing significant improvement
over the past years.
Moderate fluctuations suggest potential areas for further improvement in credit risk
management.
59
Coefficient of variation indicates a need for more consistent GNPA performance.
SBI:
Second-highest average GNPA Ratio (5.08%), indicating a higher level of bad loans
compared to HDFC and ICICI.
Moderate fluctuations suggest potential areas for optimization in credit risk
management practices.
Coefficient of variation confirms the need for more consistent GNPA performance.
KOTAK:
Third-highest average GNPA Ratio (2.32%), indicating a moderate level of bad loans.
Moderate fluctuations suggest potential areas for further improvement in credit risk
management.
Coefficient of variation confirms the need for more consistent GNPA performance.
HDFC leads the pack with the lowest average GNPA Ratio, demonstrating its efficient
management of credit risk and strong asset quality.
ICICI exhibits significant improvement in its GNPA Ratio but needs to address its
fluctuations for greater consistency.
SBI and KOTAK maintain moderate GNPA Ratios but require further improvement in
their credit risk management strategies to optimize their GNPA performance.
Conclusion:
Investors seeking banks with high asset quality and a low risk of bad loans should
consider HDFC. ICICI offers potential for further improvement in its GNPA Ratio but
needs to address its volatility. SBI and KOTAK require further optimization of their
credit risk management strategies to reduce their GNPA Ratios and improve their asset
quality. Ultimately, the best choice depends on the individual's investment goals and
risk tolerance.
60
8) COMPARATIVE ANALYSIS OF NET NON-PERFORMING ASSETS
(NNPA) RATIO :
NET NON PERFORMING ASSETS (NNPA) RATIOS

2019 2020 2021 2022 2023
HDFC 0.39 0.36 0.4 0.32 0.27
ICICI 2.06 1.41 1.14 0.76 0.48
SBI 3.01 2.23 1.5 1.02 0.67
KOTAK 0.7 0.7 1.23 0.71 0.41
Table 5.16 : Table of Net Non-Performing Assets Ratio
NET NON PERFORMING ASSETS (NNPA) RATIOS

3.5
3.01
3
2.5 2.23
2.06
2
1.41 1.5
1.5 1.14 1.23 1.02
1 0.7 0.7 0.76 0.71 0.67
0.39 0.4 0.48 0.41
0.5 0.36 0.32 0.27
0
2019 2020 2021 2022 2023
Graph 5.2 : Graph of Net Non-Performing Assets Ratio

INTERPRETATION :
HDFC:
Lowest average NNPA Ratio (0.35%) among the four banks, showcasing the most
efficient management of bad debts after provisions.
Minimal fluctuations suggest a strong and consistent approach to resolving bad loans.
Low coefficient of variation confirms consistency in HDFC's NNPA performance.
ICICI:
Second-lowest average NNPA Ratio (1.17%), demonstrating significant improvement
over the past years.
Moderate fluctuations suggest potential areas for further improvement in resolving bad
debts.
High coefficient of variation indicates a need for more consistent NNPA performance.
61
SBI:
Second-highest average NNPA Ratio (1.89%), indicating a higher level of bad debts
after provisions compared to HDFC and ICICI.
Moderate fluctuations suggest potential areas for optimization in resolving bad debts.
Coefficient of variation confirms the need for more consistent NNPA performance.
KOTAK:
Third-highest average NNPA Ratio (0.72%), indicating a moderate level of bad debts
after provisions.
Moderate fluctuations suggest potential areas for further improvement in resolving bad
debts.
High coefficient of variation confirms the need for more consistent NNPA
performance.
HDFC leads the pack with the lowest average NNPA Ratio, demonstrating its efficient
management of bad debts and strong asset quality.
ICICI exhibits significant improvement in its NNPA Ratio but needs to address its
fluctuations for greater consistency.
SBI and KOTAK maintain moderate NNPA Ratios but require further improvement in
their resolution of bad debts to optimize their NNPA performance.
Conclusion:
Investors seeking banks with high asset quality and a low risk of bad debts after
provisions should consider HDFC. ICICI offers potential for further improvement in its
NNPA Ratio but needs to address its volatility. SBI and KOTAK require further
optimization of their strategies to resolve bad debts and reduce their NNPA Ratios.
Ultimately, the best choice depends on the individual's investment goals and risk
tolerance.
62
CHAPTER – VI
FINDINGS, CONCLUSIONS AND SUGGESTIONS,
BIBLIOGRAPHY
63
FINDINGS :
The key findings of this project on Equity Research Analysis within the
Indian Banking Sector are as follows:
1) Equity Research Overview:
Equity research is a vital process involving stock analysis, financial
modeling, valuation, and the examination of financial statements. It
serves as the foundation for making informed investment decisions.
2) Specialization and Expertise:
Equity research analysts typically specialize in specific sectors and
thoroughly investigate macro and microeconomic factors that can
impact the performance of stocks in those sectors.
Investors rely on the expertise of equity researchers to provide in-depth
analysis that guides significant investment decisions.
3) Buy-side and Sell-side Analysts:
Equity researchers can work on either the buy-side or sell-side of the
financial market. Buy-side analysts work for institutional investors,
such as mutual funds and pension funds, while sell-side analysts work
for brokerage firms and provide research to clients.
4) Indian Banking Sector Overview:
The Indian banking sector comprises a network of institutions that offer
financial services to the public. These services include managing
payment systems, providing loans, accepting deposits, and supporting
various investment activities.
Key entities in India's banking system include the Reserve Bank of
India (RBI), commercial banks, cooperative banks, and development
finance institutions.
64
6) Backbone of Financial System:
Baks in India serve as the backbone of the financial system, acting as
intermediaries between savers and investors. They play a pivotal role in
mobilizing financial resources and efficiently allocating them to various
sectors.
7) Economic Development:
Historically, banks have played a significant role in the economic
growth and transformation of countries. In India, banks contribute to
economic development by facilitating access to financial services and
supporting investments.
8) Bank Stock and Capital:
"Bank stock" refers to the capital of banking companies, which is
typically divided into shares with specific values.
These shares provide banks with the authority to accept and hold
deposits and extend loans to individuals and businesses.
Understanding the dynamics of equity research within the Indian Banking

Sector is essential for investors, as it enables them to make informed
investment decisions in an industry critical to the economic development
of the country.
65
CONCLUSIONS :
In conclusion, equity research is a crucial process for analyzing stocks and

making informed investment decisions. Equity research analysts specialize
in evaluating specific stocks, often within particular sectors, using financial
modeling, valuation, and an examination of financial statements. Their
expertise is highly valued by investors seeking in-depth analysis to guide
their investment choices. Equity researchers can work on either the buy-
side or sell-side of the financial market.
The focus of this project is on Equity Research Analysis within the Indian
Banking Sector. India's banking system, which includes the Reserve Bank
of India (RBI), commercial banks, cooperative banks, and development
finance institutions, is integral to the country's financial ecosystem. These
institutions facilitate the management of payment systems, provide loans,
accept deposits, and support various investment activities. Banks are
instrumental in mobilizing and allocating resources, playing a vital role in
the economic development of the nation.
Historically, banks have been key players in the economic growth and
transformation of countries. The concept of "bank stock" represents the
capital of banking companies, which is divided into shares with specific
values. These shares grant banks the authority to accept deposits and
extend loans to individuals and businesses.
Understanding equity research within the Indian banking sector is crucial

for investors, as it enables them to make well-informed decisions in an
industry that plays a pivotal role in the country's economic development.
66
SUGGESTIONS :
• HDFC BANK
o Continue to focus on maintaining its strong financial performance and
market leadership.
o Invest in technology to further improve its operational efficiency and
customer service.
o Expand its product and service offerings to meet the evolving needs of
its customers.
o Explore new market opportunities, both domestically and
internationally.
• ICICI BANK
o Accelerate efforts to reduce its GNPA and NNPA Ratios.
o Continue to improve its asset utilization to boost its ROA and ROE
ratios.
o Focus on controlling costs to further improve its CIR.
customer service.
• SBI BANK
o Address asset quality concerns by reducing its GNPA and NNPA
Ratios.
o Improve asset utilization to boost its ROA and ROE ratios.
o Optimize its cost structure to improve its CIR.
customer service.
• KOTAK MAHINDRA BANK
o Focus on reducing GNPA and NNPA Ratios to further improve asset
quality.
o Continue to improve its asset utilization to maintain its high ROA and
ROE ratios.
67
o Control costs to maintain its low CIR.
customer service.
• OVERALL SUGGESTIONS
o All four banks should focus on the following:
o Invest in technology to improve operational efficiency, customer
service, and risk management.
o Expand their product and service offerings to meet the evolving needs
of their customers.
o Explore new market opportunities, both domestically and
internationally.
o Manage their credit risks effectively to minimize bad loans.
o Control costs to improve profitability.
• ADDITIONAL SUGGESTIONS
o HDFC Bank could consider expanding its presence in the rural and
semi-urban markets.
o ICICI Bank could focus on improving its customer service and reducing
its turnaround time for loan processing.
o SBI could focus on reducing its reliance on government deposits and
increasing its retail deposit base.
o KOTAK Mahindra Bank could focus on expanding its reach and brand
awareness in the smaller towns and cities.
68
BIBLIOGRAPHY :
“Equity Research: Fundamental and Technical Analysis”. Dr. Sreemoyee Guha Roy
“A study on fundamental and technical analysis", Suresh A.S., International Journal of

Marketing, Financial Services & Management Research, ISSN 2277- 3622, Vol.2, No.
5, May (2013)
“Fundamental analysis as a method of share valuation in comparison with Technical

analysis”. Bangladesh Res. Pub. J. 5(3): 167-174, Venkatesh. C. K. and Madhu Tyagi.
“Equity Analysis on Banking Sector”. International Journal of Research. Madhuri

Saipriya
Jain, R. (2018). "Globalization of Indian Banking Sector: Challenges and

Opportunities." International Journal of Business and Management Studies, 1(1), 45-
56.
Sharma, A., & Verma, R. (2019). "Equity Research in Indian Banking Sector: A
Comprehensive Analysis." Journal of Finance and Economic Analysis, 3(2), 112-125.
Ghosh, S., & Roy, P. (2020). "Regulatory Framework and Equity Valuation: A Case
Study of Indian Banks." Journal of Banking Regulation, 21(4), 345-362.
Agarwal, N., et al. (2021). "Empirical Analysis of Financial Performance Indicators in

Indian Banking Sector." International Journal of Finance and Banking Research, 7(3),
69
• Websites :
https://www.ibef.org/
https://rbi.org.in/
https://finance.yahoo.com/
https://www.nseindia.com/
https://www.bseindia.com/
https://www.ibef.org/industry/banking-india
https://www.moneycontrol.com/
https://www.hdfcbank.com/
https://sbi.co.in/corporate/AR2223/index.html
https://www.kotak.com/en/investor-relations/financial-results/annual-reports.html
https://www.icicibank.com/about-us/annual/2023
https://in.tradingview.com/
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A

SAVITRIBAI PHULE PUNE UNIVERSITY

UNDER THE GUIDANCE OF

PIMPRI CHINCHWAD EDUCATION TRUST’S

I understand that any form of plagiarism or academic misconduct is a serious offense

I would like to thank SAMRUDDHI SECURITIES & INVESTMENTS, For

I am indebted to MR. Bhushan Fulpagare for providing me the opportunity to gain

KUNDAN SANDEEP AHIRE

SR. NO. NAME OF TABLE

Table 1.1 Table of Bank Nifty Weightage

Table 1.2 Table of HDFC Bank Market Overview

Table 1.3 Table of ICICI Bank Market Overview

Table 1.4 Table of SBI Bank Market Overview

Table 1.5 Table of KOTAK Mahindra Bank Market Overview

Table 3.1 Table of Organisation’s Profile

Table 5.1 Table of HDFC Bank Income Statement

Table 5.2 Table of HDFC Bank Balance sheet Statement

Table 5.3 Table of ICICI Bank Income Statement

Table 5.4 Table of ICICI Bank Balance sheet Statement

Table 5.5 Table of SBI Bank Income Statement

Table 5.6 Table of SBI Bank Balance Sheet Statement

Table 5.7 Table of Kotak Mahindra Bank Income Statement

Table 5.8 Table of Kotak Mahindra Bank Balance sheet Statement

Table 5.9 Table of Return on Capital Employed Ratio :

Table 5.10 Table of Net Interest Margin Ratio

Table 5.11 Table of CASA Ratio

Table 5.12 Table of Cost Income Ratio

Table 5.13 Table of Return on Assets Ratio

Table 5.14 Table of Return on Equity Ratio

Table 5.15 Table of Gross Non-Performing Assets Ratio

Table 5.16 Table of Gross Non-Performing Assets Ratio

Sr. No. NAME OF GRAPHS

Graph 1.1 Graph of Growth in Deposits

Graph 1.2 Graph of Bank Nifty Performance with Top 4 Banks.

Graph 5.1 Graph of Return on Capital Employed Ratio

Graph 5.2 Graph of Net Interest Margin Ratio

Graph 5.3 Graph of CASA Ratio

Graph 5.4 Graph of Cost Income Ratio

Graph 5.5 Graph of Return on Assets Ratio

Graph 5.6 Graph of Return on Equity Ratio

Graph 5.7 Graph of Gross Non-Performing Assets Ratio

Graph 5.8 Graph of Gross Non-Performing Assets Ratio

Chapter I Introduction & Theoretical Background 1

Chapter II Review of Literature 19

Chapter III Profile of the Organisation 24

Chapter IV Research Methodology 27

Chapter V Data Analysis & Interpretation 30

Findings, Suggestions, Conclusion &

To show sectoral performance of banking sector.

Equity research analysis is a comprehensive process of evaluating and analysing

Equity Research Analysis is conducted in two types of analysis. One is Fundamental

EQUITY RESEARCH ANALYSIS :

IMPORTANCE OF EQUITY RESEARCH:

• Informed Decision-Making: Investors use equity research to make informed

1) Financial Performance and Analysis : Financial analysis is performed in excel

5) Financial statements : Financial statements: Written documents that describe a

Graph 1.1 : Graph of Growth in Deposits

Chart 1.1 : Chart of Indian Banking Structure

BANK NIFTY WEIGHTAGE :

Graph 1.2 : Graph of Bank Nifty Performance with Top 4 Banks.

Bank Nifty 44195.22 +22.16%

People often compare fundamental analysis with technical analysis. Fundamental

Ratio analysis is a critical component of equity research analysis, providing valuable

ROCE = (Net Operating Profit / Capital Employed )*100