Presented By: -

Gandharva Kumar

1011517026

INDUSTRY AND COMPANY

ANALYSIS

IN

BANKING SECTOR

BANKING INDUSTRY OF INDIA

INTRODUCTION From 1770 to 2016 bank has grown drastically

It contains 26 public sector banks, 25 private sector banks, 43 foreign banks, 56 regional rural

banks, 1589 urban cooperative banks and 93550 rural cooperative banks.

In December 2015 value on mobile transaction increased four time on year-on-year basis and

46% growth over previous month to Rs. 49029 cr.

Indian banking industry has registered fastest growth in FY2015.

Indian banking industry is under expansion stage.

Till now there so many places in India where none of the banking institution is there so, it has

huge potential to grow.

INDUSTRY LIFE CYCLE

GOVERNMENT’S ATTENTIONS Finance minister has planned to provide 500 cr. In eight public sector bank

Under PMJDY 217 million accounts have been opened and has value of about 37000 cr.

Banking industry does well in early recovery phase.

SECTOR ROTATION

PORTER’S FIVE FORCE MODEL

Threat of competitors

Bargaining power of supplier

Threat of substitutions

Threat of new entry

Bargaining power of buyer

High

Low

High

LowHigh

PERFORMANCE OF BANKEX

Source: - Money control

PERFORMANCE OF SENSEX

Source: - Money control

Banking has grown with CAGR of 23.56% per year from 1-1-2002 to 1-9-2002 whereas Sensex has grown with CAGR of 15.84%

COMPANY ANALYSIS

State Bank of India

Source: Money control

Source: Money control

Industry P/E 16.36 22.83

P/E 22.93 19.46

Market capitalization 201,288.81cr. 151,818.06 cr.

COMPARATIVE TABLE

As on 06-09-2016

CONTD…

** Q1FY2017 * Q4FY2016

SBI AXISFY2016 FY2015 FY2016 FY2015

Loan growth 0.13 0.13 0.28 0.25

Gross NPA (Rs. Cr) 101,541.18** 98,172.80* 9,553.17** 60.88*

Net NPA (Rs. Cr) 57,420.98** 55,807.02* 4,010.23** 25.22*

Net interest margin 2.51 2.68 3.2 3.07

Casa margin 42.78 41.7 43.00% 35.3%

Credit to deposit 13.12 12 84.71 80.03

P/BV 1.05 1.55 1.99 2.97

Enterprise Value (Rs. Cr) 1,976,114.45 1,865,393.88 540,761.59 515,225.42

Axis bank has less P/E than industry and SBI

Loan growth in Axis has improved and no change in SBI

Gross and net NPA has increased in Axis drastically whereas marginal increase in SBI which is good for SBI

Net interest margin has improved in Axis whereas reduced in SBI

CASA margin has improved in both.

CONCLUSION