banking work finance profitability

7/27/2019 banking work finance profitability

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Profitability and productivityof Indian Public Sector Banks

and study of 5 major banksduring the last five years

Group Members-

Govind Prasad Sharma

Ankur Chakravarty

Anubhav SaxenaDavesh Nanda

Himanshu Singh

Kratika Saxena


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What is a Bank?

A bank is an institution which deals

with money and credit. It accepts

deposits from the public, makesthe funds available to those who

need them and helps in the

remittance of money from one

place to another.


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CONCEPT OF PROFITABILITY

In business term, profit is the excess of income overexpenditure and is an absolute measure of any firms

performance.

In financial terminology, profit of a certain concert is

understood as the quantitative relationship of its profits(net or gross) with various variables relevant to profitgeneration, such as quantum of owned funds or sharecapital or the level of working funds or the size of thetwo mover or the like.

Profitability is the most important and reliable indicatoras it gives a broad indicator of the ability of a bank toraise its income level.


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Risks in banking sector

Strategic Riskis the current and prospective impact onearnings or capital arising from adverse businessdecisions, improper implementation of decisions, orlack of responsiveness to industry changes.

Operational Risk is defined as a risk incurred by anorganization's internal activities. It focuses on the risksarising from people, systems and processes throughwhich a company operates.

Safety Risks are risks which have the potential to putemployees safety at risk whether within the companyor outside. Any threat or hazard to employees safetywill have a definite impact on business continuity.


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A Study on Profitability Analysis

of Selected Public Banks IndiaWe have selected five major big banks that are:

State Bank of India (SBI) was incorporated in 1806 asBank of Calcutta, which was redesigned as Bank of

Bengal in 1809.

In 1921, the Bank of Madras, Bank of Bombay andBank of Bengal were combined to form Imperial Bank.In 1955, all the state united and state sponsored banks

were integrated with Imperial bank to form SBI andsubsequently in 1959; the SBI Act enabled the bank toformulate the former eight state associated banks asits subsidiaries. In Aug 2010, it acquired State Bank ofIndore. In July 2011, the bank acquired SBICI.


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of Selected Public Banks India

Punjab National Bank (PNB) PNB commenced in 1895in Lahore.

In 1951, the bank took over Bharat Bank Ltd and laterin 1962 merged the Indo-Commercial bank with itself.In 1969, the bank was nationalized. PNB functionsthrough various services like personal, social, MSME,

agriculture and corporate banking.


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Canara Bank(Canara Bank) was established in 1906as Canara Bank Hindu Permanent Fund Ltd and was

nationalized

In 1969. In 1983, it started its overseas branch atLondon. In 1984, the bank merged with Lakshmi Comercial Bank Ltd. During 1989, the bank initiatedventure capital financing and factoring business. In

2002-03, Canara Bank came out with its IPO.


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Bank of Baroda (BoB) was established in 1908 by thethen Maharaja of Baroda.

It started its first domestic branch in 1910, while its firstoverseas branch became active in 1953. In 1969, itwas nationalized by GoI, thereby getting status of aPublic Sector Bank. In 1996, the Bank came up with its

first IPO.


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Bank of India Bank of India (BoI) was founded on Sep7, 1906 as private ownership by famous citizens and

businessmen of Mumbai. It is one of the primary banksof the country with a affluent record of success ofmore than 105 years of Banking Services.

The Bank has more than 54 million strong customer

bases.


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Collection of data

Year 2013 2012 2011 2010 2009

State Bank of India 18,808.97 15,866.02 10,743.53 11,949.83 11,043.03Bank of Baroda 4,480.72 5,006.96 4,241.68 3,058.33 2,227.20Punjab national

bank4,747.67 4,892.09 4,433.50 3,913.00 3,090.88

Bank of India

profits2,749.35 2,677.52 2,488.71 1,741.07 3,007.35

Canara bank

3,282.71

4,025.89

3,021.43

2,072.42

1,565.01

Rs. In croreSource: moneycontrol.com


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Conclusion

Every public sector bank in India earns good amountof profit and the share of profit is also being increasesyear by year through different and various steps takenby them on regular interval.

Nowadays banks offer many other services andeffective human resources implementationcontributes in large amount in banks profitability. Thisall will leads to good economic growth as banksprovide the backbone to all the economic activities.


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banking work finance profitability

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