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TRANSCRIPT
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MERGERS AND
ACQUISITIONS ANDRESTRUCTURING
BANKING SECTORGROUP NO.1
NISHA AGARWAL
NUTAN SHANBHAGPRATIK TIBREWAL
ANJALI MOOLRAJANI
VISHAL SATRA
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Banking-Changes
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HDFC
DCB J N KLAKSHMI
VILAS`
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HDFC
HDFC Bank was incorporated in August 1994, and,
currently has an nationwide network of 2,150 Branches
and 6,838 ATM's in 1,141 Indian towns and cities.
The Housing Development Finance Corporation Limited
(HDFC) was amongst the first to receive an 'in principle'
approval from the Reserve Bank of India (RBI) to set up a
bank in the private sector, as part of the RBI's
liberalization of the Indian Banking Industry in 1994. The
bank was incorporated in August 1994 in the name of
'HDFC Bank Limited', with its registered office in
Mumbai, India. HDFC Bank commenced operations as a
Scheduled Commercial Bank in January 1995.
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DCB-Development Credit Bank
Founded in 1930-small newgeneration private sector
bank with offerings in retail,
SME and corporate banking
segments`
DCB has a network of 80
branches, 134 ATMs and
approximately 600,000customers as of FY11. It spans
across 10 states in the country
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The Bank , incorporated in 1938.
It has a track record of uninterrupted profits and dividends for
four decades.
The J&K Bank is rated P1+, indicating the highest degree of
safety by Standard & Poor and CRISIL.
JAMMU AND KASHMIR BANK
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J&K Bank
It is the only private sector bank designated as RBIs agent for
banking business, and carries out the banking business of the
Central Government, besides collecting central taxes for CBDT.
During the financial year 2010-11, 16 branches were added,
taking the number of branches to 548 as on 31-03-2011,spread across 20 states and one union territory.
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LAKSHMI VILAS BANKFounded-1926
Objective-To cater to the financial needs of varied customer
segments.
During 1961-65 LVB took over nine banks and raised its branch
network considerably.
Network of 249 branches, 3 satellite branches and 6 extension
counters
Banking Services
Savings Bank, Current Account Shop online
No FRILLS SB A/C Bill Payment
International Banking Online RTGS
NRI Banking SMS alerts
Net Banking Forex Services
SMS Banking Western Money Transfer
Fixed Deposits RTGS
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COMPARISION OF RATIOS
PARTICULARS DCB(AVG.) J N K(avg) LAKSHMI
VILASBANK(AVG)
EPS -1.04 89.602 6.538
PE 44.348 7.51 13.59
NPAT -18.424 434.382 44.992
DPS 50.44 18.38 1.56
NIM 2.726 2.746 2.286
ROE -2.9 17.016 8.21
CASA 30.84 39.092 19.504
NET NPA 69.292 160.48 102.396
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Why DCB?
Strong and experienced new Management
DCB Fundamentals 2011 2010 2009 2008 2007
Earnings Per Share (Rs) 1.07 -3.92 -5.05 2.2 0.5
PER(x) 42.83 0 0 38.83140.08
Profit Before Tax 29.26 -72.74 -86.6 36.14 1.82
MPS 47.45 32.2 18.9 86.65 67
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Recent quarter ended Sept
2011
Net interest margin increased to 3.41 per cent
(3.14 per cent). Provisions declined
substantially to Rs 7.5 crore (Rs 16 crore).
Capital Adequacy Ratio was at 13.10 per cent.
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Rationale-Why DCB
Strong and experienced new Management
Focus on retail liabilities than
wholesale liabilities
Improving cost efficiency
Improvement in NPA ratios
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Share Exchange Ratio
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THANK YOU