rbi credit policy effect on banking shares

Rbi credit policy effect on banking shares

The Bombay Stock Exchange benchmark Sensex today rose by over 57 points on

buyingin interest rate sensitive auto, realty and banking stocks as RBI steps matched with the street expectations.

The 30-share barometer closed 57.56 points higher at 18,077.61 points after an early range bound trade. Among the 30 BSE index components, 20 stocks closed with gains and nine ended with losses, while NTPC held unchanged.

Targeting to check the double digit inflation, RBI hiked its short-term lending and borrowing rate by 0.25 and 0.50 per cent respectively, which was well to expectation of the major market players, brokers said.

The bank also raised its projections for economic growth to 8.5 per cent this fiscal from the earlier estimate of 8 per cent, which further bolstered the market sentiment.

Banking stocks were in keen demand on expectations of better quarterly earnings. The BSE bankex rose by 0.69 per cent to 11,478.26 points after stocks of State Bank of India surged by Rs 26.15 to Rs 2,435, Punjab National Bank by Rs 14.35 to Rs 1,053.15 and HDFC Bank by Rs 13.65 to Rs 2,065.75.

ICICI Bank, Bank of India, Federal Bank, Kotak Mahindra Bank, Union Bank and Central Bank stocks also recorded handsome gains.

The banking sector index spurted by 0.62 per cent to 11,470.61 at mid-session.

The broad- based National Stock Exchange index Nifty rose by 12 points to 5,430.60 points

RBI(Per cent)

Instrument

As atExtent of Reduction

Mid-September 2008

Early March 2009 (basis points)

Repo Rate 9.00 5.00 400Reverse Repo 6.00 3.50 250Cash Reserve Ratio 9.00 5.00 400@ Percentage of NDTL.

RBI has hiked Repo Rate by 25 basis points and the Reverse Repo Rate 50 basis points. However, the CRR has been left unchanged.2010-11 July

ource: RBI) (% per annum)RRRRRB

Key rates April 2010 July 3rd 2010July 27th

2010

CRR 6.00 6.00 6.00

Repo Rate 5.25 5.50 5.75

Reverse Repo 3.75 4.00 4.50

Bank Rate 6 6 6

Sbi bank

Income Statement

31-Mar-10(12) 31-Mar-09(12) 31-Mar-08(12)

Profit/Loss A/C Rs. mn %OI Rs. mn %OI Rs. mn %OI

Interest Income Earned709939.1

882.59

637884.34

83.41489503.0

784.92

Commission, Exchange and Brokerage Income

96408.60 11.22 76172.35 9.96 59142.54 10.26

Lease Income 91.86 0.01 266.70 0.03 318.64 0.06

Dividend Income 5734.83 0.67 4096.03 0.54 1974.06 0.34

Miscellaneous Income 47446.24 5.52 46372.81 6.06 25514.05 4.43

Other Income149681.5

317.41

126907.89

16.59 86949.28 15.08

Total Income (OI)859620.7

0100.0

0764792.2

3100.0

0576452.3

5100.0

0

Interest Expenditure473224.7

855.05

429152.94

56.11319290.7

755.39

Employee Expenditure127546.4

614.84 97473.12 12.75 77858.69 13.51

Depreciation 9326.64 1.08 7631.41 1.00 6799.79 1.18

Other Operating Expenditure 66313.71 7.71 51382.51 6.72 41427.57 7.19

Provision and Contingencies 91548.59 10.65 37345.78 4.88 26686.58 4.63

Total Expenditure767960.1

789.34

622985.76

81.46472063.4

181.89

Pretax Income 91660.53 10.66141806.4

718.54

104388.94

18.11

Tax 0.00 0.00 50594.20 6.62 37097.70 6.44

Extra Ordinary and Prior Period Items Net 0 0.00 0 0.00 0 0.00

Net Profit 91660.53 10.66 91212.26 11.93 67291.25 11.67

Adjusted Net Profit 91660.53 10.66 91212.26 11.93 67291.25 11.67

Dividend - Preference 0.00 0.00 0.00 0.00 0.00 0.00

Dividend - Equity 19046.48 2.22 18411.53 2.41 13576.61 2.36

Balance Sheet 31-Mar-10 %BT 31-Mar-09 %BT 31-Mar-08 %BT

Equity Capital 6348.83 0.06 6348.80 0.07 6314.70 0.09

Preference Capital 0.00 0.00 0.00 0.00 0.00 0.00

Share Capital 6348.83 0.06 6348.80 0.07 6314.70 0.09

Reserves and Surplus 653143.16 6.20 573128.16 5.94 484011.91 6.71

Deposits 8041162.27 76.33 7420731.28 76.94 5374039.41 74.48

Borrowings 1030116.01 9.78 840579.29 8.72 517274.11 7.17

Other Provisions and Liabilities 803367.04 7.63 803533.27 8.33 833622.98 11.55

Capital and Liabilities (BT) 10534137.30 100.00 9644320.81 100.00 7215263.12 100.00

Fixed Assets 44129.07 0.42 38378.47 0.40 33734.81 0.47

Investments 2857900.71 27.13 2759539.57 28.61 1895012.71 26.26

Advances 6319141.52 59.99 5425032.04 56.25 4167681.96 57.76

Cash & Money at Call 961838.42 9.13 1044037.99 10.83 674663.35 9.35

Other Current Assets 351127.60 3.33 377332.74 3.91 444170.29 6.16

Properties and Assets (BT) 10534137.30 100.00 9644320.81 100.00 7215263.12 100.00

Ratio Analysis As on 31-Mar-10 31-Mar-09 31-Mar-08

Profitablility

Interest Income/Total Income (%) 82.60 83.40 84.90

Non Interest Income/Total Income (%) 17.40 16.60 15.10

Reported Net Profit/Total Income (%) 10.70 11.90 11.70

Net Interest Income/Total Income (%) 27.50 27.30 29.50

Net Interest Margin (%) 3.70 3.80 4.10

Return Related

ROE (%) 13.90 15.70 13.70

ROA (%) 0.90 0.90 0.90

Leverage & Capital Measures

Customer loans/deposits (%) 78.60 73.10 77.60

Icici bank

Income Statement

31-Mar-10(12) 31-Mar-09(12) 31-Mar-08(12)



377.47

310925.48

80.35307883.4

377.75


48308.09 14.56 56258.93 14.54 56053.13 14.16

Lease Income 0.00 0.00 0.00 0.00 0.00 0.00

Dividend Income 3692.72 1.11 3348.23 0.87 11519.50 2.91


Other Income 74776.50 22.53 76037.27 19.65 88107.63 22.25


3100.0

0386962.7

6100.0

0395991.0

6100.0

0

Interest Expenditure175925.7

053.01

227259.34

58.73234842.4

259.30

Employee Expenditure 19257.93 5.80 19717.04 5.10 20788.97 5.25

Depreciation 6195.02 1.87 6785.97 1.75 5783.51 1.46




183.89

335793.06

86.78345430.0

887.23

Pretax Income 53453.22 16.11 51169.70 13.22 50560.98 12.77

Tax 13203.39 3.98 13588.36 3.51 8983.70 2.27


Net Profit 40249.83 12.13 37581.33 9.71 41577.28 10.50



Dividend - Equity 13378.60 4.03 12245.77 3.16 12277.02 3.10


Equity Capital 11148.89 0.31 11132.90 0.29 11126.79 0.28


Share Capital 11148.89 0.31 11132.90 0.29 14626.79 0.37


Deposits 2020165.97 55.59 2183478.25 57.57 2444310.50 61.14

Borrowings 942635.69 25.94 931554.54 24.56 656484.34 16.42



Fixed Assets 32126.90 0.88 38016.21 1.00 41088.97 1.03

Investments 1208928.00 33.27 1030583.08 27.17 1114543.42 27.88

Advances 1812055.97 49.86 2183108.49 57.56 2256160.83 56.43





Profitablility






Return Related

ROE (%) 7.80 7.50 8.90

ROA (%) 1.10 1.00 1.00



Investments/Deposits (%) 59.80 47.20 45.60

Total Liabilities/Networth 7.00 7.70 8.60

Growth (%)

Growth in Interest Income -- 0.99 39.98

Growth in Interest Expenses -- -- 43.56

Growth in Employee cost -- -- 28.59

Growth in PAT 7.10 -- 33.68

Growth in Deposits -- -- 6.04

Growth in Borrowings 1.19 2.55 28.08

Per Share

Book Value Per Share (Rs) 463.00 444.90 417.50

Earnings Per Share (Rs) 36.10 33.80 37.40

Dividend Per Share (Rs) 12.00 11.00 11.00

Hdfc bank

Income Statement

31-Mar-10(12) 31-Mar-09(12) 31-Mar-08(12)



080.94

163322.61

83.23101150.0

081.58


28305.86 14.17 24572.97 12.52 17145.00 13.83

Lease Income 0.00 0.00 0.00 0.00 0.00 0.00

Dividend Income 0.00 0.00 0.00 0.00 0.00 0.00


Other Income 38076.11 19.06 32906.04 16.77 22831.50 18.42


1100.0

0196228.6

5100.0

0123981.5

0100.0

0

Interest Expenditure 77862.99 38.97 89111.04 45.41 48871.20 39.42

Employee Expenditure 22891.76 11.46 22381.98 11.41 13013.50 10.50

Depreciation 3943.92 1.97 3599.09 1.83 2717.20 2.19




085.24

173779.25

88.56101170.7

081.60

Pretax Income 29487.01 14.76 22449.40 11.44 22810.80 18.40

Tax 0.00 0.00 0.00 0.00 6909.00 5.57


Net Profit 29487.01 14.76 22449.39 11.44 15901.80 12.83



Dividend - Equity 5492.92 2.75 4253.84 2.17 3012.70 2.43


Equity Capital 4577.43 0.21 4253.84 0.23 3544.33 0.27


Share Capital 4577.43 0.21 8263.00 0.45 3544.33 0.27


Deposits 1674044.39 75.25 1428115.80 77.92 1007685.91 75.67

Borrowings 129156.93 5.81 91636.37 5.00 45949.24 3.45



Fixed Assets 21228.11 0.95 17067.29 0.93 11750.92 0.88

Investments 586076.16 26.35 588175.49 32.09 493935.38 37.09

Advances 1258305.94 56.56 988830.47 53.95 634268.93 47.63





Profitablility






Return Related

ROE (%) 13.70 14.90 13.80

ROA (%) 1.30 1.20 1.20



Investments/Deposits (%) 35.00 41.20 49.00

Total Liabilities/Networth 10.30 12.50 11.60

Growth (%)

Growth in Interest Income -- 61.47 52.15

Growth in Interest Expenses -- 82.34 53.71

Growth in Employee cost 2.28 71.99 67.51

Growth in PAT 31.35 41.17 39.31

Growth in Deposits 17.22 41.72 47.54

Growth in Borrowings 40.95 -- 59.08

Per Share

Book Value Per Share (Rs) 470.10 344.30 324.40

Earnings Per Share (Rs) 64.40 52.80 44.90

Dividend Per Share (Rs) 12.00 10.00 8.50

Hdfc bank history

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.

businesses

HDFC Bank offers a wide range of commercial and transactional banking services and treasury products to wholesale and retail customers. The bank has three key business segments:

Wholesale Banking ServicesThe Bank's target market ranges from large, blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporates and agri-based businesses. For these customers, the Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of structured solutions, which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. Based on its superior product delivery / service levels and strong customer orientation, the Bank has made significant inroads into the banking consortia of a number of leading Indian corporates including multinationals, companies from the domestic business houses and prime public sector companies. It is recognised as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks.

Retail Banking Services The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class service and delivered to customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, NetBanking and Mobile Banking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions, information and advice on various investment avenues. The Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider of Depository Participant (DP) services for retail customers, providing customers the facility to hold their investments in electronic form.

HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the Mastercard Maestro debit card as well. The Bank launched its credit card business in

late 2001. By March 2010, the bank had a total card base (debit and credit cards) of over 14 million. The Bank is also one of the leading players in the “merchant acquiring” business with over 90,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank is well positioned as a leader in various net based B2C opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc.

TreasuryWithin this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalisation of the financial markets in India, corporates need more sophisticated risk management information, advice and product structures. These and fine pricing on various treasury products are provided through the bank's Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio.

Business focus

HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank's business philosophy is based on four core values - Operational Excellence, Customer Focus, Product Leadership and People.

Cbop&times bank amalgamation

On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was formally approved by Reserve Bank of India to complete the statutory and regulatory approval process. As per the scheme of amalgamation, shareholders of CBoP received 1 share of HDFC Bank for every 29 shares of CBoP.

The merged entity will have a strong deposit base of around Rs. 1,22,000 crore and net advances of around Rs. 89,000 crore. The balance sheet size of the combined entity would be over Rs. 1,63,000 crore. The amalgamation added significant value to HDFC Bank in terms of increased branch network, geographic reach, and customer base, and a bigger pool of skilled manpower.

In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private sector bank promoted by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., effective February 26, 2000. This was the first merger of two private banks in the New Generation Private Sector Banks. As per the scheme of amalgamation approved by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank.

Icici bank

ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$ 81 billion) at March 31, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for the year ended March 31, 2010. The Bank has a network of 2,016 branches and about 5,219 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

Sbi bank

About OnlineSBI

State Bank of India is India's largest bank with a branch network of over 11000 branches and 6 associate banks located even in the remotest parts of India. State Bank of India (SBI) offers a wide range of banking products and services to corporate and retail customers.

OnlineSBI is the Internet banking portal for State Bank of India. The portal provides anywhere, anytime, online access to accounts for State Bank's Retail and Corporate customers. The application is developed using the latest cutting edge technology and tools. The infrastructure supports unified, secure access to banking services for accounts in over 11,000 branches across India.

Business:

The Retail banking application is an integration of several functional areas, and enables customers to:

Issue Demand Drafts online Transfer funds to own and third party accounts Credit beneficiary accounts using the VISA Money Transfer, RTGS/NEFT feature Generate account statements Setup Standing Instructions Configure profile settings Use eTax for online tax payment Use ePay for automatic bill payments Interface with merchants for railway and airline reservations Avail DEMAT and IPO services

The OnlineSBI corporate banking application provides features to administer and manage corporate accounts online. The corporate module provides roles such as Regulator, Admin, Uploader, Transaction Maker, Authorizer, and Auditor. These roles have access to the following functions:

Manage users, define rights and transaction rules on corporate accounts Access accounts in several branches with a single sign-on mechanism Upload files to make bulk transactions to third parties, supplier, vendor and tax collection

authorities.

Use online transactional features such as fund transfer to own accounts, third party payments (both Inter and Intra bank), and draft issues

Make bill payments over the Internet. Authorize, modify, reschedule and cancel transactions, based on rights assigned to the

user Generate account statement Enquire on transaction details or current balance

In addition to the above the Internet banking application also provides the following value added services:

Tax payments to central and state governments through site to site integration. Supply Chain Finance( e-VFS- Electronic Vendor Finance Scheme) Direct Debit Facility E Collection Facilities for:

o Core Banking Transactionso Inter Bank Transactions for incoming RTGS/NEFT Transactions o Internet Banking Transactions for SBI & Associate Bankso Direct Debit facility where suppliers can directly debit their customer’s account

through Internet Banking

Sbi charts

Price Movement Performance Chart

Index Comparison Ownership Pattern

http://charting.bseindia.com/charting/index.asp?SYMBOL=500180

Icici charts



Hdfc charts



http://charting.bseindia.com/charting/index.asp?SYMBOL=500180

rbi credit policy effect on banking shares

Documents