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Final research project ....jayati poddar 17 1-11 modified


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this project is all about the comparative study of financial performance of SBI and BOB

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Final research project ....jayati poddar 17 1-11 modified

  1. 1. 1PROJECT REPORTONCOMPARATIVE STUDY OF FINANCIAL PERFORMANCE OF STATE BANK OFINDIA AND BANK OF BARODADr. Gaur Hari Singhania Institute of Management and ResearchDr. Gaur Hari Singhania Institute Of Management And ResearchSubmitted to:Institute mentorDirector SirSubmitted by:Jayati PoddarRoll No. 1340Sec- A
  2. 2. 2DECLARATIONI, Jayati Poddar studying in Dr. Gaur Hari Singhania Institute Of Management and Research dohereby declare that this project relating to the study of ratio analysis and the title ― ComparativeStudy Of Financial Performance Of State Bank Of India And Bank Of Baroda” has beenprepared by me after undergoing the study as part of the PGDM program of GHS-IMR.I, express a thanks to my Institute mentor- Prof. Prithvi Yadav Sir, Director of GHS-IMR for hissupport in the project.I, further declare that this project work is the outcome of my efforts and not a replica of any otherreport/work submitted to any University/ Boards.Name of Student: Jayati PoddarPlace: Kanpur
  3. 3. 3ACKNOWLEDGEMENTI express my gratitude to Prof. Prithvi Yadav sir, DirectorOf GHS-IMR for providing me an opportunity to undergo summer training. And also for thosewho have guided and inspired me in completing this study. I would like to express my deepsense of gratitude to our Institute mentor Prof. Prithvi Yadav Sir for giving me support andhelping me during my project study.I would like to express my gratitude to my institute guide Prof. Prithvi Yadav sir for hisconstant encouragement and guidance without the task would not have been completed.Last but not the least I would like to thank my parent and friends for their support.THANKYOU ALLJayati Poddar
  4. 4. 4PREFACEIn any organization, the two important financial statements are the Balance Sheet and Profit &Loss Account of the business. Balance Sheet is a statement of financial position of an enterpriseat a particular point of time. Profit & Loss account shows the net profit or net loss of a companyfor a specified period of time. When these statements of the last few year of any organization arestudied and analyzed, significant conclusions may be arrived regarding the changes in thefinancial position, the important policies followed and trends in profit and loss etc. Analysis andinterpretation of financial statement has now become an important technique of credit appraisal.The investors, financial experts, management executives and the bankers all analyze thesestatements. Though the basic technique of appraisal remains the same in all the cases but theapproach and the emphasis in the analysis vary. A banker interprets the financial statement so asto evaluate the financial soundness and stability, the liquidity position and the profitability or theearning capacity of borrowing concern. Analysis of financial statements is necessary because ithelps in depicting the financial position on the basis of past and current records. Analysis offinancial statements helps in making the future decisions and strategies. Therefore it is verynecessary for every organization whether it is a financial or manufacturing, to make financialstatement and to analyze it.
  5. 5. 5Table of contentChapter No. Particulars Page no.Acknowledgement 3Preface 41 Introduction of banking 6-182 Company Profile 19-61State bank of IndiaBank of Baroda3 Research methodology 83-854 Financial Analysis 86-96Ratio analysis5 Financial comparativeanalysis97-1046 Findings, suggestions and conclusions 105-1127 References 113
  7. 7. 7DEFINITION OF BANKBanking Means "Accepting Deposits for the purpose of lending or Investment of deposits ofmoney from the public, repayable on demand or otherwise and withdraw by cheque, draft orotherwise."- Banking Companies (Regulation) Act,1949ORIGIN OF THE WORD “BANK”:-The origin of the word bank is shrouded in mystery. According to one view point the Italianbusiness house carrying on crude from of banking were called banchi bancheri" According toanother viewpoint banking is derived from German word "Branck" which mean heap or mound.In England, the issue of paper money by the government was referred to as a raising a bank.ORIGIN OF BANKING :Its origin in the simplest form can be traced to the origin of authentic history. After recognizingthe benefit of money as a medium of exchange, the importance of banking was developed as itprovides the safer place to store the money. This safe place ultimately evolved in to financialinstitutions that accepts deposits and make loans i.e., modern commercial banks.Banking system in IndiaWithout a sound and effective banking system in India it cannot have a healthy economy.Thebanking system of India should not only be hassle free but it should be able to meet newchallenges posed by the technology and any other external and internal factors.For the past three decades Indias banking system has several outstanding achievements to itscredit. The most striking is its extensive reach. It is no longer confined to only metropolitans orINTRODUCTION OF BANKING
  8. 8. 8cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners ofthe country. This is one of the main reasons of Indias growth process. HISTORY OF BANKING IN INDIABanking in India has its origin as early or Vedic period. It is believed that the transitions frommany lending to banking must have occurred even before Manu, the great Hindu furriest, whohas devoted a section of his work to deposit and advances and laid down rules relating to the rateof interest. During the mogul period, the indigenous banker played a very important role inlending money and financing foreign trade and commerce.During the days of the East India Company it was the turn of agency house to carry on thebanking business. The General Bank of India was the first joint stock bank to be established inthe year 1786. The other which followed was the Bank of Hindustan and Bengal Bank. The Bankof Hindustan is reported to have continued till 1906. While other two failed in the meantime. Inthe first half of the 19th century the East India Company established there banks, The bank ofBengal in 1809, the Bank of Bombay in 1840 and the Bank of Bombay in1843. These threebanks also known as the Presidency banks were the independent units and functioned well.These three banks were amalgamated in 1920 and new bank, the Imperial Bank of India wasestablished on 27th January, 1921.With the passing of the State Bank of India Act in 1955 the undertaking of the Imperial Bank ofIndia was taken over by the newly constituted SBI. The Reserve Bank of India (RBI) which isthe Central bank was established in April, 1935 by passing Reserve bank of India act 1935. TheCentral office of RBI is in Mumbai and it controls all the other banks in the country.In the wake of Swadeshi Movement, number of banks with the Indian management wereestablished in the country namely, Punjab National Bank Ltd., Bank of India Ltd., Bank ofBaroda Ltd., Canara Bank. Ltd. on 19thJuly 1969, 14 major banks of the country werenationalized and on 15thApril 1980, 6 more commercial private sector banks were taken over bythe government.The first bank in India, though conservative, was established in 1786. From 1786 till today,thejourney of Indian Banking System can be segregated into three distinct phases. They areasmentioned below: Early phase from 1786 to 1969 of Indian Banks Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.
  9. 9. 9 New phase of Indian Banking System with the advent of Indian Financial & BankingSector Reforms after 1991. Phase IThe General Bank of India was set up in the year 1786. Next came Bank of Hindustan andBengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay(1840) and Bank of Madras (1843) as independent units and called it Presidency Banks.These three banks were amalgamated in 1920 and Imperial Bank of India was established whichstarted as private shareholders banks, mostly Europeans shareholders.In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab NationalBank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank ofIndia, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysorewere set up. Reserve Bank of India came in 1935.During the first phase the growth was very slow and banks also experienced periodic failuresbetween 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline thefunctioning and activities of commercial banks, the Government of India came up with TheBanking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as peramending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensivepowers for the supervision of banking in India as the Central Banking Authority.During those day’s public has lesser confidence in the banks. As an aftermath depositmobilization was slow. Abreast of it the savings bank facility provided by the Postal departmentwas comparatively safer. Moreover, funds were largely given to traders.Phase IIGovernment took major steps in this Indian Banking Sector Reform after independence. In1955,it nationalized Imperial Bank of India with extensive banking facilities on a large scale especiallyin rural and semi-urban areas. It formed State Bank of India to act as the principal agent of RBIand to handle banking transactions of the Union and State Governments all over the country.Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19thJuly,1969, major process of nationalization was carried out. It was the effort of the then PrimeMinister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country wasnationalized.Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 withseven more banks. This step brought 80% of the banking segment in India under Governmentownership.
  10. 10. 10 The following are the steps taken by the Government of India to Regulate BankingInstitutions in the Country: 1949: Enactment of Banking Regulation Act. 1955: Nationalization of State Bank of India. 1959: Nationalization of SBI subsidiaries. 1961: Insurance cover extended to deposits. 1969: Nationalization of 14 major banks. 1971: Creation of credit guarantee corporation. 1975: Creation of regional rural banks. 1980: Nationalization of seven banks with deposits over 200 crore.After the nationalization of banks, the branches of the public sector bank India rose toapproximately 800% in deposits and advances took a huge jump by 11,000%.Banking in the sunshine of Government ownership gave the public implicit faith and immenseconfidence about the sustainability of these institutions.Phase IIIThis phase has introduced many more products and facilities in the banking sector in its reformsmeasure. In 1991, under the chairmanship of M Narasimhama, a committee was set up by hisname which worked for the liberalization of banking practices. The country is flooded withforeign banks and their ATM stations. Efforts are being put to give a satisfactory service tocustomers. Phone banking and net banking is introduced. The entire system became moreconvenient and swift. Time is given more importance than money. The financial system of Indiahas shown a great deal of resilience. It is sheltered from any crisis triggered by any externalmacroeconomics shock as other East Asian Countries suffered. This is all due to a flexibleexchange rate regime, the foreign reserves are high, the capital account is not yet fullyconvertible, and banks and their customers have limited foreign exchange exposure.BANKS IN INDIAIn India the banks are being segregated in different groups. Each group has their own benefitsand limitations in operating in India. Each has their own dedicated target market. Few of themonly work in rural sector while others in both rural as well as urban. Many even are only cateringin cities. Some are of Indian origin and some are foreign players.All these details and many more is discussed over here. The banks and its relation with thecustomers, their mode of operation, the names of banks under different groups and other suchuseful information’s are talked about.
  11. 11. 11One more section has been taken note of is the upcoming foreign banks in India. The RBI hasshown certain interest to involve more of foreign banks than the existing one recently. This stephas paved a way for few more foreign banks to start business in India.BANKING STRUCTURE IN INDIASCHEDULED BANKS IN INDIA(1) Scheduled Commercial BanksPublic Sector Banks Private SectorBanksForeign Banks InIndiaRegional RuralBanks(26) (25) (29) (95) NationalizedBank Other PublicSector Banks(IDBI) SBI And ItsAssociates Old PrivateBanks New PrivateBanks(2) Scheduled Cooperative BanksScheduled Urban Cooperative Banks Scheduled State Cooperative BanksPublic Sector Banks
  12. 12. 12Public sector banks are those banks which are owned by the Government. The Govt. runs theseBanks. In India 14 banks were nationalized in 1969 & in 1980 another 6 banks were alsonationalized. Therefore in 1980 the number of nationalized bank 20. At present there are total 26Public Sector Banks in India (As on 26-09-2009). Of these 19 are nationalised banks, 6(STATEBANK OF INDORE ALSO MERGED RECENTLY) belong to SBI & associates group and 1bank (IDBI Bank) is classified as other public sector bank. Welfare is their primary objective.Nationalized banksAllahabad BankAndhra BankBank Of BarodaBank Of IndiaBank Of MaharastraCanara BankCentral Bank Of IndiaCorporation BankDena BankIndian BankIndian Overseas BankOriental Bank OfCommercePunjab & Sind BankPunjab National BankSyndicate BankUCO BankUnion Bank Of IndiaUnited Bank Of IndiaVijaya BankOtherPublicSectorBanksIDBI(IndustrialDevelopmentBank OfIndia)Ltd.SBI & its AssociatesState Bank of IndiaState Bank of HyderabadState Bank of MysoreState Bank of PatialaState Bank of TravancoreState Bank of Bikaner And Jaipur(State Bank of Saurastra merged withSBI in the year 2008 and State Bank ofIndore In 2010)Private Sector Banks
  13. 13. 13These banks are owned and run by the private sector. Various banks in the country such as ICICIBank, HDFC Bank etc. An individual has control over there banks in preparation to the share ofthe banks held by him.Private banking in India was practiced since the beginning of banking system in India. The firstprivate bank in India to be set up in Private Sector Banks in India was IndusInd Bank. It is one ofthe fastest growing Bank Private Sector Banks in India. IDBI ranks the tenth largest developmentbank in the world as Private Banks in India and has promoted world class institutions in India.The first Private Bank in India to receive an in principle approval from the Reserve Bank ofIndia was Housing Development Finance Corporation Limited, to set up a bank in the privatesector banks in India as part of the RBIs liberalization of the Indian Banking Industry. It wasincorporated in August 1994 as HDFC Bank Limited with registered office in Mumbai andcommenced operations as Scheduled Commercial Bank in January 1995. ING Vysya, yet anotherPrivate Bank of India was incorporated in the year 1930Private sector banks have been subdivided into following 2 categories:-Old Private Sector BanksBank of Rajasthan Ltd.Catholic Syrian Bank Ltd.City Union Bank Ltd.Dhanalakshmi Bank Ltd.Federal Bank Ltd.ING Vysya Bank Ltd.Jammu and Kashmir Bank Ltd.Karnataka Bank Ltd.Karur Vysya Bank Ltd.Lakshmi Vilas Bank Ltd.Nainital Bank Ltd.Ratnakar Bank Ltd.SBI Commercial and InternationalBank Ltd.South Indian Bank Ltd.Tamilnad Mercantile Bank Ltd.United Western Bank Ltd.New Private Sector BanksBank of Punjab Ltd. (since mergedwith Centurian Bank)Centurian Bank of Punjab (sincemerged with HDFC Bank)Development Credit Bank Ltd.HDFC Bank Ltd.ICICI Bank Ltd.IndusInd Bank Ltd.Kotak Mahindra Bank Ltd.Axis Bank (earlier UTI Bank)Yes Bank Ltd.
  14. 14. 14Foreign Banks In India ABN AMRO Bank N.V. Abu Dhabi CommercialBank Ltd American Express Bank Antwerp Diamond Bank Arab Bangladesh Bank Bank InternationalIndonesia Bank of America Bank of Bahrain & Kuwait Bank of Ceylon Bank of Nova Scotia Bank of Tokyo MitsubishiUFJ Barclays Bank BNP Paribas Calyon Bank ChinaTrust CommercialBank Citibank DBS Bank Deutsche Bank HSBC (Hongkong &Shanghai BankingCorporation) JPMorgan Chase Bank Krung Thai Bank Mashreq Bank Mizuho Corporate Bank Oman International Bank Shinhan Bank Société Générale Sonali Bank Standard Chartered Bank State Bank of MauritiusCooperative banks in India
  15. 15. 15The Cooperative bank is an important constituent of the Indian Financial System, judging by therole assigned to co operative, the expectations the co operative is supposed to fulfil, theirnumber, and the number of offices the cooperative bank operate. Though the co operativemovement originated in the West, but the importance of such banks have assumed in India israrely paralleled anywhere else in the world. The cooperative banks in India plays an importantrole even today in rural financing. The businesses of cooperative bank in the urban areas also hasincreased phenomenally in recent years due to the sharp increase in the number of primary co-operative banks.Co operative Banks in India are registered under the Co-operative Societies Act. The cooperativebank is also regulated by the RBI. They are governed by the Banking Regulations Act 1949 andBanking Laws (Co-operative Societies) Act, 1965.Rural banks in IndiaRural banking in India started since the establishment of banking sector in India. Rural Banksin those days mainly focussed upon the agro sector. Regional rural banks in India penetratedevery corner of the country and extended a helping hand in the growth process of the country.SBI has 30 Regional Rural Banks in India known as RRBs. The rural banks of SBI is spread in13 states extending from Kashmir to Karnataka and Himachal Pradesh to North East. The totalnumber of SBIs Regional Rural Banks in India branches is 2349 (16%). Till date in rural bankingin India, there are 14,475 rural banks in the country of which 2126 (91%) are located in remoterural areas.Apart from SBI, there are other few banks which functions for the development of the rural areasin India.Few of them are as follows.Haryana State Cooperative Apex Bank LimitedThe Haryana State Cooperative Apex Bank Ltd. commonly called as HARCOBANK plays avital role in rural banking in the economy of Haryana State and has been providing aids andfinancing farmers, rural artisans, agricultural labourers, entrepreneurs, etc. in the state and givingservice to its depositors.NABARDNational Bank for Agriculture and Rural Development (NABARD) is a development bank in the
  16. 16. 16sector of Regional Rural Banks in India. It provides and regulates credit and gives service for thepromotion and development of rural sectors mainly agriculture, small scale industries, cottageand village industries, handicrafts. It also finance rural crafts and other allied rural economicactivities to promote integrated rural development. It helps in securing rural prosperity and itsconnected matters.Sindhanur Urban Souharda Co-operative BankSindhanur Urban Souharda Co-operative Bank, popularly known as SUCO BANK is the first ofits kind in rural banks of India. The impressive story of its inception is interesting and inspiringfor all the youth of this country.United Bank of IndiaUnited Bank of India (UBI) also plays an important role in regional rural banks. It has expandedits branch network in a big way to actively participate in the developmental of the rural andsemi-urban areas in conformity with the objectives of nationalisation.Syndicate BankSyndicate Bank was firmly rooted in rural India as rural banking and have a clear vision of futureIndia by understanding the grassroot realities. Its progress has been abreast of the phase ofprogressive banking in India especially in rural banks.Fact Files of Banks in IndiaThe first Bank in India to be given an ISO certification. Canara BankThe first Bank in Northern India to get ISO 9002 certificationfor their selected branches.Punjab and SindBank
  17. 17. 17The first Indian Bank to have been started solely with Indian capital. Punjab NationalBankThe first among the Private Sector Banks in Kerala to become ScheduledBank in 1946 under the RBI act.South Indian BankIndia’s oldest,largest and the most successful commercial bank offering thewidest possible rang of domestic,international and NRI products andservices,through its vast network in India and overseas.State Bank of IndiaIndia’s second largest Private Sector Bank and is now the largest scheduledcommercial bank in India.The Federal BankLimitedBank which started as Private Shareholders Banks,mostly Europeanshareholders.Imperial Bank ofIndiaThe first Indian Bank to open a branch outside India in London in 1946 andthe first to open a branch in continental Europe at Paris in 1974Bank of India,founded in 1906 inMumbai.The oldest Public Sector Bank in India having branches all over India andserving the customers for the last 132 years.Allahabad Bank
  18. 18. 18The first Indian Commercial Bank which was wholly owned and managed byIndians.Central Bank ofIndiaINDIAN BANKING INDUSTRYThe Indian banking market is growing at an astonishing rate, with Assets expected to reachUS$1 trillion by 2010. An expanding economy, middleclass, and technological innovations areall contributing to this growth.The country’s middle class accounts for over 320 million People. In correlation with the growthof the economy, rising income levels, increased standard of living, and affordability of bankingproducts are promising factors for continued expansion.The Indian banking Industry is in the middle of an IT revolution, Focusing on the expansion ofretail and rural banking. Players are becoming increasingly customer -centric in their approach,which has resulted in innovative methods of offering new banking products and services. Banksare now realizing the importance of being a big playerand are beginning to focus their attentionon mergers and acquisitions to take advantage of economies of scale and/or comply with Basel IIregulation.―Indian banking industry assets are expected to reach US$1 trillion by 2010 and arepoised to receive a greater infusion of foreign capital,‖ says Prathima Rajan, analyst in Celentsbanking group and author of the report. ―The banking industry should focus on having a smallnumber of large players that can compete globally rather than having a large number offragmented players.
  20. 20. 20STATE BANK OF INDIAState Bank of IndiaIndustry :Banks - Public SectorIncorporation Year 1955Chairman Pratip ChaudhuriManaging Director Hemant G ContractorCompany Secretary -Auditor B M Chatrath & Co/ Kalyaniwala & MistryRegistered OfficeState Bank Bhavan 8th Floor,Madame Cama Road Nariman Point,Mumbai, 400021, MaharashtraTelephone 91-22-22883888/22022678Fax 91-22-22855348E-mail Value (Rs) 10BSE Code 500112BSE Group ANSE Code SBINBloomberg SBIN INReuters SBI.BOISIN Demat INE062A01012Market Lot 1ListingAhmedabad,Chennai,Delhi,Kolkata,London,Mumbai,NSEFinancial Year End 03Book Closure Month MayAGM Month JunRegistrars Name & AddressDatamatics Financial Services, PlotNo-A-16-17 PartB, CrossLane MIDC, Marol Andheri (East), Mumbai - 400 093.91-22-28213383/90/6691-22-28369408
  21. 21. 21It is the largest Indian banking and financial services company (by turnover and total assets) withits headquarters in Mumbai, India. It is state-owned. The bank traces its ancestry to British India,through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making itthe oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the othertwo presidency banks, Bank of Calcutta and Bank of Bombay to form Imperial Bank of India,which in turn became State Bank of India. The government of India nationalized the ImperialBank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it theState Bank of India. In 2008, the government took over the stake held by the Reserve Bank ofIndia.SBI provides a range of banking products through its vast network of branches in India andoverseas, including products aimed at non-resident Indians (NRIs). The State Bank Group, withover 16,000 branches, has the largest banking branch network in India. SBI has 14 Local HeadOffices and 57 Zonal Offices that are located at important cities throughout the country. It alsohas around 130 branches overseas.With an asset base of $352 billion and $285 billion in deposits, SBI is a regional bankingbehemoth and is one of the largest financial institutions in the world. It has a market share amongIndian commercial banks of about 20% in deposits and loans. T The State Bank of India is the29th most reputed company in the world according to Forbes. Also SBI is the only bank featuredin the coveted "top 10 brands of India" list in an annual survey conducted by Brand Finance andThe Economic Times in 2010. The State Bank of India is the largest of the Big Four banks ofIndia, along with ICICI Bank, Punjab National Bank and HDFC Bank—its main competitors.History of state bank of India:State Bank of India is the largest state-owned banking and financial services company in India.The Bank provides banking services to the customer. In addition to the banking services, theBank through their subsidiaries, provides a range of financial services, which include lifeinsurance, merchant banking, mutual funds, credit card, factoring, security trading, pension fundmanagement and primary dealership in the money market.The Bank operates in four business segments, namely Treasury, Corporate/ Wholesale Banking,Retail Banking and Other Banking Business. The Treasury segment includes the investmentportfolio and trading in foreign exchange contracts and derivative contracts. The Corporate/Wholesale Banking segment comprises the lending activities of Corporate Accounts Group, MidCorporate Accounts Group and Stressed Assets Management Group. The Retail Bankingsegment consists of branches in National Banking Group, which primarily includes personalbanking activities, including lending activities to corporate customers having banking relationswith branches in the National Banking Group.SBI provides a range of banking products through their vast network of branches in India andoverseas, including products aimed at NRIs. The State Bank Group, with over 16,000 branches,has the largest banking branch network in India. The State bank of India is the 10th most reputedcompany in the world according to Forbes. The bank has 156 overseas offices spread over 32countries. They have branches of the parent in Colombo, Dhaka, Frankfurt, Hong Kong,
  22. 22. 22Johannesburg, London and environs, Los Angeles, Male in the Maldives, Muscat, New York,Osaka, Sydney, and Tokyo. They have offshore banking units in the Bahamas, Bahrain, andSingapore, and representative offices in Bhutan and Cape Town.State Bank of India was incorporated in the year 1955. The Bank traces their ancestry to BritishIndia, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta,making them the oldest commercial bank in the Indian Sub-continent. The Government of Indianationalized the Imperial Bank of India in the year 1955, with the Reserve Bank of India taking a60% stake, and name was changed to State Bank of India.In the year 2001, the SBI Life Insurance Company was started by the Bank. They are the onlyBank that have been permitted 74% stake in the insurance business. The Banks insurancesubsidiary SBI Life Insurance Company is a joint venture with Cardif S.A in which Cardif holds26% of the stake.During the year 2005-06, the bank introduced SBI e-tax an online tax payments facility fordirect and indirect tax payment. They also launched the centralized pension processing. TheBank made a partnership with Tata Consultancy Services for setup C-Edg Technologies andconsulting services to the banking, financial services and insurance industry. The bank was notedas The most preferred bank in a survey by TV 18 in association with AC Nielsen-ORG Marg.Also, the Bank was voted as The most preferred housing loan provider in AWAAZ consumerawards for the year 2006.In the customer loyalty survey 2006-07 conducted by Business World, the Bank was rankednumber one in all parameters of customer satisfaction, service orientation, customer care/ callcenter, customer loyalty and home loans. SBI Funds was judged Mutual fund of the year byCNBC/TV-18/CRISL. The Bank introduced new products and services such as web-basedremittance, instant fund transfer, online-trading and comprehensive cash management.During the year 2007-08, the Bank launched 965 branches all over the country. Theyinaugurated a new state-of-the art Dealing Room with online connectivity to all active forexintensive Branches at Corporate Centre in Mumbai. They launched a new product, ConstructionEquipment Loan to cater to construction Companies. Also, they introduced new products such asSBI Reverse Mortgage Loan and SBI Home Plus in the areas of Home Loans.During the year, the RBI transferred their entire shareholding in the Bank representing 59.73%of the issued capital of the Bank to the Government of India. The Bank acquired 92.03% ofequity of Global Trade Finance Ltd. Consequently, GTFL became a subsidiary of the Bank.They signed an MoU with the Indian railways for installing ATMs at 682 railway stations. InMarch 2008, the Bank opened their 10,000th branch and became only the second bank in theworld to have more than 10,000 branches after Chinas ICBC. During the year 2008-09, thecompany launched Import factoring, a new product in association with SBI Factors &Commercial Services Ltd. They increased the number of branches for retail sale of gold coinsfrom 250 to 518. Also, they re-launched Gold Deposit Scheme at 50 branches to mobilize goldfrom domestic market for deployment as metal loans to jewellers.During the year, the Bank opened their 11,111th Branch at Sonapur (Kamrup District) in Assam.They introduced three new products viz., SBI Special Home Loan, SBI Happy Home Loan andSBI Lifestyle in response to the stimulus package announced by the Government of India. Also,they entered into an exclusive arrangement with TATA Motors for handling the booking processof TATA Nano cars. During the year, the Bank launched on their web-site an on-lineapplication form for registering Auto Loan enquiries and expeditiously monitoring and
  23. 23. 23converting these leads into Auto Loans. Also, they launched e-invest for the ASBA(applications supported by blocked accounts) to aid investors for their equity subscriptions, IPOand Rights applications.During the year, the Bank set up a custodial services company namely SBI Custodial ServicesPvt. Ltd., in joint venture with Societe Generale, France. They signed letter of intent for settingup of joint venture company for undertaking General Insurance Business. Also, they divested10% equity stake in its wholly owned subsidiary SBI Pension Fund Pvt. Ltd at cost in favour ofits subsidiaries. In October 2008, the Bank signed an MoU with State General Reserve Fund(SGRF) of Oman, for a general purpose private equity fund.During the year, State Bank of Saurashtra (SBS), a wholly owned subsidiary of the Bank,amalgamated with the Bank with effect from August 13, 2008. They signed a joint ventureagreement with Insurance Australia Group for undertaking General Insurance business. Also,they signed a joint venture agreement with Macquarie Capital Group, Australia and IFC,Washington for setting up an Infrastructure fund of USD 3 billion for investing in variousinfrastructure projects in India.During the year 2009-10, the Bank opened 1,049 branches, out of which branches were openedin metro and urban areas with a view to increase the Banks reach and be more accessible tocustomers. In July 2009, SBI introduced SBI Loan to Affluent Pensioners enabling thegovernment pensioners to avail personal loans upto Rs 3 lakh.During the year, the Bank designed a special package, the Defence Salary Package, forpersonnel of the three Armed Forces i.e. the Army, Navy and Air Force who maintain theirSalary accounts with them. As of March 2010, the Bank had 12,496 branches and 21,485 GroupATMs. In June 2009, the company increased their shareholding in Nepal SBI Bank Ltd to55.02% and thus Nepal SBI Bank Ltd became a subsidiary of the Bank with effect from June 14,2009.In May2010, the Bank selected consortium of Elavon Incorporation, USA and Visa International, USAas their joint venture (JV) partner for Merchant Acquiring Business. They set up a wholly ownedsubsidiary, namely SBI Payment Services Pvt Ltd for conducting Merchant Acquiring Business.In August 2010, State Bank of Indore was amalgamated with the Bank as per the scheme ofamalgamation approved by the Central Board.During the year 2010-11, the Bank introduced 2 new products, namely Pushpa Ullas andArthias Plus on pilot basis. They made substantial progress in establishing itself as a leading PEfund player of the country. Also, they also signed a Joint Venture agreement with State GeneralReserve Fund (SGRF) of Sultanate of Oman, a sovereign entity, to set up a general purposeprivate equity fund with an initial corpus of USD 100 mn, expandable further to USD 1.5 bn.During the year, the Bank opened 576 new branches besides merger of 470 branches oferstwhile State Bank of Indore. Also, they opened 14 foreign offices during the year, taking thetotal to 156. In July 1, 2010, the Bank launched their Green Channel Counter at select branchesacross the country.In General Insurance business, the Bank launched limited operations in April 2010 for theCorporate and Mid Corporate customers based at Mumbai, and it was expanded to six othermajor locations in July 2010. In the Retail segment, the Bank launched their Long Term HomeInsurance business at Mumbai in October 2010, which was gradually extended to cover 56
  24. 24. 24RACPCs and RASMECCs. General Insurance SME business was launched on a pilot basis inMumbai and Chennai in February 2011. During the first quarter of the financial year 2011-12,the Government of India issued the Acquisition of State Bank of India Commercial &International Bank Ltd. vide notification dated July 29, 2011. Consequent to the said notification,the undertaking of State Bank of India Commercial & International stands transferred to and vestin State Bank of India with effect from July 29, 2011.MILESTONE OF STATE BANK OF INDIA1955 -On 1st July State Bank of India was constituted under the State BankOf India Act 1955, for the purpose of taking over the undertaking andbusiness of the Imperial Bank of India. The Imperial Bank of Indiawas founded in 1921 under the Imperial Bank of India Act 1920. The Banktransacts general banking business of every description including,foreign exchange, merchant banking and mutual funds1959 -On September State Bank of India (Subsidiary Bank) Act was passed.On October State Bank of Hyderabad become the first subsidiary of SBI.1960 -During this period, State Bank of Jaipur, State Bank of Bikaner,State Bank of Indore, State Bank of Travancore, State Bank of Mysore,State Bank Patiala and State Bank of Saurashtra became subsidiaries of thebank.1962 -The Bhor State Bank Ltd was Amalgamated with the Bank bring theTotal number of minor State associated banks so amalgamated to five. A scheme for amalgamation of theBank of Aundh Ltd., was also approved.On 20th August, the Unit Bank Ltd. Chennai was taken over by the Bank.1963 -In october Branch in London become bankers to the Indian High Commission, therebytaking over a function till then performed by the office of RBI. Of the other businesstransacted by the Branch, an important aspect was medium term loans mostly to Indianshipping companies.1969 -On November 8th the Bank of Behar Ltd was amalgamated.1972 -A merchant banking division was set up in the central office to cater to promotional needsof the corporate sector.1977 –During the year bank introduced the Perennial Pension Plan SchemeUnder which if the depositors make a regular monthly payment of a fixed
  25. 25. 25amount for a period of 84 to 132 months, they become eligible fromthe 86th and 134th months respectively for getting a monthly pension of predeterminedamount forever.In order to meet all the developmental needs of the villagesIncluding their social and cultural needs, the bank launched an integratedRural development programme, aimed at not only covering the credit needsof agriculture and agricultural activities and village industries, butalso housing and social activities.1980 -Bank introduced the cash Certificate Scheme under which depositcertificate are issued for a fixed period on payment of the issue pricespecified for the respective maturity period and the face valuecorresponding to the issue price plus interest compounded atquarterly intervals is paid on maturity. The certificates are issued for theface value of Rs 100, Rs 1000, Rs 10,000 and Rs 50,000 maturingafter 29,65,84 and 120 months.1982 -The Non-Resident Investment Cell was set up, which had streamlinedThe working operations of the non-resident investment sections atImportant centers.1983 -SBI launched self employment scheme, for providing self-employmentTo educated unemployed youth. Educated unemployed youths areEncouraged to undertake self-employment ventures in industry, services andbusiness.1984 -The bank provide need-based rehabitation assistance to large andmedium sick industrial units.1985 -During the year, company set up a data bank of sick units availablefor taken over by healthy units.With effect from 26th August, the Bank of Cochin Ltdwith 108 branches was also amalgamated with the Bank.(i) All shares in the Capital of the Imperial Bank of India wasvested in the RBI. The SBI was registered with an Authorised capital ofRs.20 crores, and an issued and paid up capital of Rs.562,50,000 dividedinto 562,500 shares of Rs.100 each.(ii) Every person who on the 30th June, 1955, was registered as aholder of shares in the Imperial Bank of India was paid by theReserve Bank of India.44,37,500 No. of shares issued at a premium of Rs 160 per share.1986 -At the end of the year 324 sick units with an outstanding of Rs 1069crores were assisted. Of these, 107 units were considered viable and60 from them were placed under regular nursing programme.On 1st August a new subsidiary named SBI Capital Market wasfunctioning independently, took up leasing business and certain other new
  26. 26. 26services.100,00,00 No. of shares issued at a prem. of Rs 160 per share.1987 -Up to the end of the year the bank had sponsored 30 Regional RuralBanks covering 66 backward and underbanked districts in the country.In terms of deployment, the advances portfolio of overseas officesrose to Rs 5,767 crores. Investments in inter-bank money markets andalso in prime securities amounted to Rs 2,670 crores by the end of theyear.1988 -During the year bank initiated UPTECH an Industrial Technology Groupto direct and guide programmes aimed at facilitating technologyupgradation.Also a scheme to develop enterpreneurship among woman under the nameStree Shakti was launched. Several concessions in respect of marginand and rate of interest have been built into the package. Threepilot programmes were launched at Chennai, Calcutta, and Hyderabad.On 20th September, the bank inaugurated `SBINET, an integratedcommunication project aimed at improving customer service,operational efficiency and administrative convenience. The network has beendesigned to handle voice, fax data and manages through the trunkroutes and exchanges in important centres.The bank sponsored 30 RRBs covering 66 divisions in the country.branches were opened raising the branch network to 2,306.1989 -SBICAP, in their capacity as Trustee and Manager of Mutual Fund,launched two scheme viz., Mangnum Monthly Income Scheme 1989 andMagnum Tax Service Scheme 1990.During the same period SBI in association with Morgan Stanley AssetManagement Inc. of USA, launched the India Magnum Fund.1990 -New products launched during the year included a Regular IncomeScheme, offering an assured return in excess of 12% and the first PureGrowth Scheme aimed at capital appreciation. A Second offshore fund of US$ 12 million called Asian Convertible and Indian Fund was launched inassociation with Asian Development Bank, Manila.During Kharif 1990, the bank introduced an agricultural credit card,known as SBI Green Card to give greater liquidity and flexibility tofarmers in procuring agricultural inputs. The scheme was introducedon a pilot basis in 125 intensive centre branches.As at on 31st March, SBIMF had over 3,40,000 Indian investors andabout Rs 475 crores by way of investible domestic funds.50,00,000 No. of shares issued at a prem. of Rs 160 per share.1991 -During February the bank set up a new subsidiary called the SBIFactors and Commercial Serviced Pvt. Ltd. for rendering factoring services
  27. 27. 27to the industrial and commercial units in Western India.1992 -The bank sponsored 30 RRBs with a network of 3189 offices covering102 backward and under banked districts of the country. A sum of Rs15.25 crores was contributed towards the share capital of the RRBs.During the period bank intoduced `Stockinvest scheme. Alsointroduced a `Gyan Jyoti that replaced earlier education loan schemes andoffers substantial augmented assistance to students pursuing higherstudies.Moreover dedicated NRI branches equipped with State-of-the-arttechnology was set up at Mumbai and Delhi to cater to the specialneeds of NRI residents.1993 -During the year as a part of its overseas expansion the bankestablished representative office in Tashkent.During December, the bank issued 124,000,000 equity shares of Rs.10each for cash at a premium of 90 per share of which 245,00,000shareseach were reserved for allotment on a preferential basis to IndianFinancial Institutions and Indian Mutual Funds. Balance issued tothepublic.Simultaneously it came out with another issue of 50,00,000 12%unsecured redeemable floating rate bonds in the nature of promisorynotes of the face value of 1000 each. Oversubscription upon afurtheramount of Rs 500 crores (in all Rs 1000 crores) was to be allowed.Theface value of each bond would be redeemed at par at the expiry of 10years from the date of allotment. In the event that the State Bankdecides to exercise its option to call up the bonds they would beredeemed at the rate of 5% at the end of 5th year, at 3% at the endof7th year and 1% at the end of 9th year.It was proposed to issue 1200,00,000 right equity shares of Rs.10eachat a premium of Rs.50 per share in the proportion of 3:5. Alsoanother120,00,000 equity shares of Rs.10 each were to be issued at apremiumof Rs.50 per share to employees on an equitable basis.250 sick units with the bank were referred to the BIFR including 31public sector units. Approved rehabilitation packages beingimplemented in 85 units and 41 have been recommended to be wound up.The bank continued to be appointed as the operating agency andrehabilitation packages were submitted to BIFR in 48 cases.Equity shares subdivided. 1418,50,000 No. of Equity Shares of Rs.10each issued at a prem. of Rs 90 per share to the public. Another1319,78,726 shares of Rs 10 each offered at a prem. of Rs 90 pershareon Rights basis and to employees.1994 -358 sick units with the bank were referred to the BIFR including 55public sector units. Approved rehabilitation packages implementedin87 units.
  28. 28. 281,80,463 No. of Shares kept in abeyance were issued.1995 -351 sick units with the bank were referred to the BIFR including 66public sector units. Approved rehabilitation packages implementedin112 units.683 No. of shares kept in abeyance were allotted.1996 -On 3rd October the Bank Issued 261,45,000 GDRs amounting to5,22,90,000equity shares. 1 GDR is issued to 2 equity shares. The issue priceofGDR was US $ 14.15 per GDR.1997 -Shares issued to employees of the bank bearing distinctive numbers46,26,00,001 to 47,46,00,000 will not be good delivery. The rightsissue was for 12 crore equity shares at a premium of Rs.50aggregatingRs.720 crore in addition to a further issue of 1.2 crore equitysharesof Rs.10 at a premium of Rs.50 aggregating Rs.72 crore for StateBankemployees. The price of the rights had been Rs.60 per share.After SBI Capital Markets, Manila-based Asian Development bank willpick up 15 per cent equity stake in the new stock broking subsidiaryofState Bank of India to be made operational by mid-1997. The balance85per cent will be subscribed to by SBI.SBI Securities Ltd the 100 per cent stockbroking subsidiary of SBI,hasrecently received the much-awaited letter of incorporation from theRegistrar of Companies. Following this, both SBI and ADB will pickup their respective shares in the new stockbroking firm. SSL will haveanequity base of Rs.50 crore.The State Bank of India has tied up with GE Capital to float aventurein Mumbai. State Bank signed the memorandum of understanding withGE Caps in March.State Bank will tie up with either VISA or Mastercard or even bothforthe franchise network. GE Caps through this joint venture will beimparting technology, credit card expertise and payment cardmechanism.The Reserve bank of India has directed the SBI to set up a 0million stand-by facility for the Indian oil corporation.State Bank of India (SBI) signed an agreement with the NationalSecurities Depository Ltd (NSDL) for dematerialisation of itsshares.Besides, SBI has also become an equity stake holder in NSDL to theextent of 4.76%.SBI Commercial and International Bank, has become the countrysfirstpublic sector bank to introduce optical disk (OD) facilities fordatastorage.1998 -State Bank of India will kick-start its credit card business on July1by floating two joint ventures with GE Capital. The largest
  29. 29. 29financial intermediary in the country will sign the joint venture agreementwithGE Caps in the last week of January.The State Bank of India on Jan 27 kicked off its foray into thepayment cards business with a joint venture agreement with US-basedFinancial services giant, General Electric Capital Corporation (GE Capital).State Bank of India (SBI) on June 24 signed an exclusive agreementwith the worlds largest payment system - Visa International - forPayment cards in India. The agreement was signed in Mumbai between the SBImanaging director, Mr. O P Sethia, and the general manager andexecutivevice president (South East Asia) of Visa, Mr James G Murray.1999 -State Bank of India (SBI) has bagged the mandate to syndicate the $120million loan for the National Thermal Power Corporation (NTPC).The State Bank of India (SBI) proposes to take up the life insuranceand general insurance business once the sector is opened up.State Bank of India has tied up with its associate banks to markettheSBI Card. The SBI has tied up with State Bank of Patiala inChandigarhand State Bank of Mysore in Bangalore to help market its creditcard.SBI proposes to introduce a value-added service for cardholderswherebythe credit card can also be used as an ATM card.The State Bank of India will tie up with international investmentbanker Credit SuisseFirst Boston and three domestic public sectorbanksto form a gold assaying venture.The State Bank of India (SBI) has decided to take over SBI HomeFinance(SBIHF), with its assets and liabilities. Having the largest stake,SBI has been weighing various options for bailing out the jointventurecompany which has slipped into huge losses.The State Bank of India (SBI) has signed up with Central DepositoryServices (I) (CDSIL) for the dematerialisation of its shares.SBI shares have already been admitted as security with NationalSecurities Depository (NSDL). Besides, SBI also has a stake (Rs 10cr)in the equity of CSDL.According to an agreement entered into with the development bank,StateBank of India (SBI) was to reduce its stake in its investmentbankingsubsidiary to below 50 per cent by March 31.The State Bank of India (SBI) has entered into an agreement withMoodys Investor Service and Icra, under which SBI will pick upMoodys11 per cent stake in Icra in case the global rating firm wants togetout of its investment in India.State Bank of India (SBI) has taken the lead in `conveniencebankingby becoming the first public sector bank to offer its `savings bankaccount holders the benefits of fixed deposits (higher interestrates)and current accounts (overdraft facility).2000 -The Bank has embarked upon the expansion of its ATM network in the
  30. 30. 30twincities of Hyderabad and Secunderfabad.The Bank has become the first government owned financial institutiontojoin the rank of companies declaring interim dividend.The Bank has proposed to come out with an issue under privateplacementof unsecured, non-convertible, subordinated bonds in the nature ofpromissory notes of Rs 1 lakh each aggregating Rs 600 crores with anoption to retain oversubscription of up to Rs 40 crores.The Bank launched the Metal (Gold) Loan Scheme in Coimbatore. Thisis the third scheme to be introduced by SBI.SBI is also forming a subsidiary - SBI Gold and Precious Metals Pvt.Ltd. with 50 per cent equity participation.Mr. Vepa Kamesam, Deputy Managing Director, has been appointed asManaging Director with effect from 1st June.SBI board cleared the setting up of a separate subsidiary forinformation technology.KC Raut has recently taken charge as general manager at State BankofIndia, Chennai.The Bank has become the first public sector bank to offer fixed-ratehome loans.The State Bank of India has tied up with State Bank of Mysore tolaunchco-branded credit cards as part its strategy to collaborate withassociate banks to expand its cardholder base.Central Depository Services (India) Ltd has signed an agreement withState Bank of India as its Depository participant.State Bank of India and the Exim Bank of the US have signedamemorandumof understanding, involving 0 million, to support the small andmedium-sized ndian companies to purchase US goods and services.Mr. Suresh Kumar Mehra, Workmen Directors, ceased to be a member oftheCentral Board of the bank effect from October 1, due to hisretirementat the close of the business on September 30.The Bank has launched an international credit cards for doctors, the frist of its kind in the country, offeringfacilities including specialdiscounts on medical equipment and personalloans from GE countrywide.The State Bank of India has introduced a new scheme to boostexports.The CRISIL has assigned a triple-A (AAA) rating to the State Bank ofIndias Rs 3,000 crore bonds programme.The Bank have decided to close down its fully-owned foreignsubsidiary- SBI European Bank Ltd., in London.Mr. S. Mukerji, Managing Director, of the bank retired from the bankon 30th of November.State Bank of India Mutual Fund has launched the Magnum Gilt Fund,dedicated toinvesting in government securities.2001 -The Bank has signed an MoU with Cardif S.A. for the banks lifeinsurance business.The Bank has introduced Voluntary Retirement Scheme for eligibleemployees, open from the 15th January 2001 to the 31st January 2001.The Bank has incorporated a subsidiary `SBI Life Insurance CompanyLtd., for doing life insurancebusiness. The Bank will install 10 more Automated Teller Machines in thenorth-eastern region in addition to the one already commissioned at Guwahati.State Bank of India launched three more ATMs i n Bangalore.
  31. 31. 31Mr Y Radhakrishnan has been promoted to the post of managingdirectorof State Bank of India. SBI Cards has set up a special insurance cell in Ahmedabad forfacilitating the claims of SBI cardholders affected by the tragic earthquake in Gujarat.SBI has assigned the Delhi-based HCL Com Net to provide it ATMtellerinter-connectivity which could involve investments running intoseveral hundred crores.SBI chief general manager Madhav M Mehta, who is currently theoperational head inGujarat, has been transferred to its corporate office in Mumbai as chief general manager(CGM).July 3- Announces the launch of the SBI International card and theSBIGlobal Card for global travelers in India. SBI International cards andSBI Gold Cards would be accepted at over 20 million Visa outletsworldwide and one lakhoutlets in India. State Bank of India has embarked upon an ambitious Rs 800-croretechnology upgradation programme. The bank has appointed KPMG, aconsultant incomputer technology, to provide inter connectivitynetworking to the computerised branchesand also to the ATMs acrossthecountry enabling its customers to transact any kind ofbusiness from anywhere.State Bank of India was presented the award for JD Power AsiaPacific’s2001 India Sales Satisfaction Index(SSI) and Consumer FinancingSatisfaction (CFS)State Bank of India has added three more ATMs to its network. ThenewATMs wereinstalled at SBIs Andheri (west),Goregaon (east),and Borivili (east) branches on September22. State Bank Of India (SBI) has informed BSE that Shri K.J.Udeshi, ED,RBI has beennominated on the Central Board of the Bank as nomineeofRBI in place of Dr.Y.V.Reddy,w.e.f. September 22, 2001 under Sec.19(f)of SBI Act.State Bank of India has slashed the interest rate on home loans by 0.5per cent to 12 per cent, effective fromSeptember 15.IN A significant move, the State Bank of India has decided todistance itself from itssubsidiaries - SBI Capital Markets, SBI Gilts, SBIAMCand State Bank of Credit andCommerce International. They will havethe autonomy, independent chairmen and external executives at theseniomanagement level at market-related salaries. At present, theSBI chairman is the ex-officio chairperson of all the subsidiaries,including the associatebanks.The new scheme will be aimed only at the award staff, a categorythatwas included withofficers in the January 2001 voluntary retirementscheme.SBI Cards on July 3, announced the launch of the SBI Internationalcardand the SBI GlobalCard for global travelers in India.- VRS implemented in which around 21,000 employees, includingofficers, were permittedto retire- The Bank has crossed another milestone by making a successfulforayinto insurance. SBI is the only Bank to have been permitted a 74%stakein the insurance business. The Banks insurance subsidiary, SBI LifeInsurance Company, a joint venture with the Bank holding 74% andCardif S.A., the Joint venture partner, the balance 26%, was incorporated toundertake life insurance and pension business. Cardif S.A. is awholly-owned subsidiary of BNP-Paribas, which is the largest bank in
  32. 32. 32France and one of the top ten banks in the world. Cardif S.A. is thelargest bancassurance company in France.- The banks efforts to establish a world -class credit informationbureau in India culminated in the successful setting up of theCreditInformation Bureau (India) Ltd., a joint venture of the Bank withHDFCLtd., Dun and Bradstreet Information Services India Pvt. Ltd. andTrans Union International Inc.2002- In order to reduce risk and develop a transparent and active debtmarket in general and government securities market in particular,the Clearing Corporation of India Ltd. has been set up in Mumbai with the Bank as the chief promoter.-E K Thakur resigns from Directorship of SBI.-TCS bags order of Rs 500 crore from SBI.-SBI has informed that the following change in Directors. 1. Shri A C Kalita, Director on the BanksCentral Board ceased to be a Director on the Board wef May 13, 2002 on expiry of his term on May 12,2002.2. Shri Y Radhakrishnan Managing Director & GE (CB) has relinquished office of the ManagingDirector as on June 30, 2002 and ceased to be Director on the Board wef July 01, 2002.-State Bank of India has informed BSE that Mr D C Gupta IAS Secretary(Financial Sector), Ministry of Finance, Department of EconomicAffairs, New Delhi has been nominated as Director on the Board ofState Bank of India with effect from July 17, 2002 vice Mr S K Purkayastha.-State Bank of India has informed BSE that Mr S Govindarajan,Managing Director & GE (NB) has relinquished office of the ManagingDirector as on July 31, 2002 and ceased to be Director on the Board we f August 01, 2002.Further Mr P R Khanna, Director on the BanksCentral Board ceased to be a Director on the Board w e f August 20, 2002 consequent upon his resignation.-State Bank of India has informed BSE that the Bank has decided toclose SBI Securities Ltd (SBISL), a subsidiary of the Bank, followinga Directive in this regard from the RBI.-State Bank of India has informed that the Central Governmentappointed Mr A K Batra, Deputy Managing Director, State Bank of Indiaas Managing Director, State Bank of India for the period from the dateof his taking charge and upto August 31, 2003. Also, Mr P NVenkatachalam, Deputy Managing Director, State Bank of India, hasbeen appointed as Managing Director, State Bank of India for theperiod from the date of his taking charge and upto March 31, 2004.
  33. 33. 33-State Bank Of India has informed that Shri Prithvi Raj Khanna andShri Kumar Bery have been duly elected as Directors under Section19(c) of SBI Act at the General Meeting of the -State Bank of Indiahas informed that it has appointed Mr Ananta Chandra Kalita, as aDirector on the Central Board of the Bank from amongst the employeesof the Bank, who are workmen, for a period not exceeding six monthscommencing from October 03, 2002 or until his successor is appointedor till he ceases to be workmen employee of State Bank of India, oruntil further orders, whichever event occurs earlier.shareholders ofthe bank held on September 09, 2002.-State Bank of India has informed BSE that Shri Janki Ballabh,Chairman has relinquished office of Chairman at the close of businesshours on his attaining superannuation on October 31, 2002.-State Bank of India has informed that Smt Vineeta Rai, Secretary(Banking & Insurance), Ministry of Finance and Company Affairs,Department of Economic Affairs (Banking Division), New Delhi has beennominated as Director of the Board with effect from October 30, 2002.-State Bank of India has informed that the Central Government, afterconsultation with the Reserve Bank of India, appointed Shri A KPurwar, Deputy Managing Director, State Bank as Chairman, State Bankof India from the date of his taking charge of the post and upto May31, 2003 i.e. date of his superannuation or until further orderswhichever is earlier. Shri A K Purwar assumed the charge of Chairman,State Bank of India, on November 13, 2002.2003- State Bank of India (SBI) and Maruti Udyog Ltd have announced ajoint initiative aimed at making car finance affordable to middle andlower middle class customers. Customers will now have transparent carfinance involving no hidden charges and pre-closure penalties, andalso get the dealers margins, Mr S.K. Bhattacharya, Chief GeneralManager, SBI, told newspersons. It will help both the bank and Marutito aggressively tap the Andhra Pradesh market, he said. SBI offersfinance facility even for lifetime tax, insurance and accessories ofthe vehicle.- State Bank of India has informed that the Bank has appointed ShriAnanta Chandra Kalita, Head Assistant, State Bank of India as aDirector on the Central Board of the Bank amongst the employees ofthe Bank, who are workmen for a period of 3 years commencing fromJuly 15, 2003 or until he ceases to be a workmen employee of the Bankor until further orders, whichever is earlier provided that he shallnot hold the office continously for a period exceeding six year.
  34. 34. 34- SBI groups total profit identified at Rs 3,354 cr in 02- Mr. D C Gupta nominated as Director on the Board of SBI- SBI introduces IT upgradation plan with KPMG help- SBI Cards and Payment Services Private Ltd, the credit cardsubsidiary of the State Bank of India, introduces two new schemesrecently- SBI Advantage Card to the banks fixed deposit customersand SBI International Card for its home loan borrowers- Launches a new credit appraisal system targeting the small andmedium enterprises (SME) for loans up to Rs 25 lakh- SBI selects TCS to execute trade finance solution- SBI and ICICI Bank among the top 100 banks in Asia in 2001 as perthe study by Asian Banker Journal- Introduces SBI Cash Plus, its Maestro Debit Card that allowscustomers to access their deposit accounts from ATMs and merchantestablishments2003- Promotes three Chief General Managers (CGM) to the posts of DeputyManaging Directors (DMDs). They are: A D Kalmankar, CGM in charge ofStaff College of Hyderabad, A K Das, CGM, Hyderabad; and R K Sinha,CGM, Chandigarh- SBI appoints Mr. S K Bhattacharya as the new Chief General Managerfor Hyderabad circle- Increases its equity stake in Discount and Finance House of IndiaLtd (DFHIL) to 51%- Ties up with Maruti Udyog Ltd. (MUL) for car finance- Receives permission from Insurance Regulatory and DevelopmentAuthority (IRDA) to sell healthcare products to individuals- Increases its Equity Stake in DFHIL to 55.30%- Starts new Plus schemes loans such as Justice Plus intended forthe judges and court employees, Police Plus for the police personnel,
  35. 35. 35Teacher Plus for the teaching community and Doctor Plus for themedical practitioners- Receives RBI licence to set up offshore banking units (OBUs) in special economic zones (SEZs)- Launches SBI Bangalore card meant for a broad-based target audiencein the 25 plus age group ranging from upwardly mobile professionalsand middle class segments- SBI unveils Hyderabad card, an exclusive initiative for thecitizens of Hyderabad- Ananta Chandra Kalita ceases to be a Director of SBI- Christens the tieup with Maruti Udyog Ltd. as SBI-Maruti Finance- Orders For 1,500 ATMs With NCR Corporation- Orange, the cellular service operator of the Hutch group for theMumbai circle, ties up with State Bank of India for prepaid cardrefill options- Ropes in US-based consultant McKinsey & Co to undertake BusinessProcess Re-engineering (BPR) exercise for the bank- Launches charter for Small Scale Industries (SSIs)- NPA (Non Performing Assets) slashed to 4.5 pc, writes off Rs 4,000crore worth of assets- Forays into stock market- Stock price crosses the Rs 400 mark for the first time sincelisting on BSE- Mr. A K Batra, Managing Director & Group Executive (CorporateBanking) of the Bank ceases to be a Director on the Board with effectfrom July 8, 2003- Plans a new scheme to attract Resurgent India Bonds (RIB)- N S Sisodia, Secretary (Banking & Insurance), Ministry of Financeand Company Affairs, Department of Economic Affairs (BankingDivision), has been nominated as a Director on the Board of StateBank of India w.e.f. July 11, 2003
  36. 36. 36- Mr. Ananta Chandra Kalita, Head Assistant, State Bank of India,appointed as a Director on the Central Board of the Bank amongst theemployees of the Bank- Inks two important agreements with its employees unions andofficers associations. According to the contract SBIs staff willbe having no rights to interfere in banks computerisation plans- SBI, AirTel launch mobility service at Rs 299- Central government nominates Mr. Arun Singh as a director on theboard of the bank wef July 25, 2003 for a period of three years.- State Bank of India along with ANZ Investment Bank have consummated5 year syndicate loan facility of 0 million to IndianPetrochemicals Corporation (IPCL)- Opens cheque clearing cente at Kolkata- Inks pact with Mahindra & Mahindra (M&M) for co-branded tractorscheme SBI-Mahindra Tractor Plus- Joins hands with Tractors and Farm Equipment Ltd (TAFE) for tractorloans- Launches insurance scheme in Kerala- Unveils new retail bank loan product Credit Khazana, which targetsthe banks housing loan account holders- Unveils online ticket reservation system e-Rail- Reserve Bank of India nominates Dr Rakesh Mohan, Deputy Governor,RBI, on the Central Board of the bank- Appoints Mr C. Narasimhan as the Chief General Manager of the SBIs Kerala Circle-Unveils Credit Khazana, retail bank loan product, to target the banks housing loan account holders- MRO-TEK Ltd has secured State Bank of Indias order of Rs 15-croreto provide networking solutions of 2Mbps and 64 Kbps high-end leasedline modems for SBI to connect more than 800 branches across the country.-SBI joins hands with LIC to dentify long-term investment proposalsfor LIC
  37. 37. 37-Tied with bajaj Auto to finance its two wheelers.-SBI granted Rs 125-cr loan to Nethaji Apparel park to set up unitsand buy machinery for the first batch of 54 garment plants in the65-acre special apparel park.-The bank has tied up with TVS motor company to finance two wheelerloans-Tied up with apollo hospital enterprise to finance for the hospitaltreatement.-The company launched mobile pre-paid cards recharge facility at itsATMs-Tied up with ICICI Bank and HDFC for sharing ATM networks2003-Bank has entered into MOU with both ICICI Bank and HDFC Bank forsharing Banks ATM Network with them on bilateral terms.-The Central Government after consultation with the Reserve Bank ofIndia, appointed Shri Chandan Bhattacharya, Deputy Managing DirectorState Bank Of India as Managing Director State Bank Of India for theperiod from December 17, 2003 to January 31, 2005.-The State Bank of India has announced a special package to BSNLemployees by allowing concessional interest rates for different typesof loans to be availed by the BSNL staff.2004-Former KCCI President nominated to SBI Bangalore Local Board-State Bank Of India has informed that Reserve Bank of India hasnominated Shri A V Sardesai, Executive Director, Reserve Bank ofIndia on the Central Board of State Bank of India vice Dr. RakeshMohan.-SBI sets up ATM counter in Ernakulam-Bahrain Monetary Agency (BMA) grants in-principle licence to StatteBank of India (SBI)-SBI sets up Indias first drive-in ATM in Hyderabad
  38. 38. 38-State Bank of India has entered into an alliance with HDFC Bank forsharing ATM networks to be operationalised from February 3, thisyear.2004-SBI unveils new branch in Manjeri-Bank awarded special prize for lending to self help group run bywomen-SBI unveils floating ATM-State Bank of India appointed six new Deputy Managing Directors onFebruary 11, 2004. The new DMDs are: Mr T.S. Bhattacharya, CGM,Product Development and Marketing, Mr M.M.Lateef, Managing Director,SBI Gilts, Mr Yogesh Agarwal, CGM, Chandigarh, Mr Krishnamurthy, CGM,Madras LHO and Mr R.Ramanathan, CGM, Technology and Mr Vijay Anand,CGM, Corporate Account group. These top level appointments follow theappointment of the new Managing Director for the bank, Mr ChandanBhattacharya, in December.-GAIL ties up SBI for e-banking system-SBI join hands with Visa for travel card-SBI enters into ATM sharing agreements with UTI Bank & HDFC Bank-Signs a Memorandum of Understanding (MoU) under which the bank willprovide term loans to farmers for purchasing capital inputs from JainIrrigation Systems Ltd (JISL)-Join hands with Siemens for financing the medical equipments sold bySiemens-Joins hands with VST Tillers to launch SBI-VST Shakti, a new loanscheme for farm mechanisation programme-Unveils Vishwa Yatra foreign travel card, a prepaid card whichoffers the traveller a convenient and secure way to carry cash-Ties up with Same Deutz-Fahr India for tractor financing-In ally with Sikkim govt to beef up SMEs
  39. 39. 39-The government has chosen State Bank of India (SBI) for channelisinggovernment credit to other countries which runs into billions ofdollar-SBI opens MICR cheque processing center-Signs MoU with HMT Ltd. for financing their tractors-State Bank of India deploys Flexcube as core banking solution atFrankfurt-Mr Ashok K. Kini appointed as new Managing Director of State Bank ofIndia with effect from April 1, 2004 to December 31, 2005-SBI unveils Foreign Travel card in Orissa-ICICI Bank, SBI, LIC in pact for Rs 20,000-cr projects-Reliance Info in ATM pact with SBI-State Bank of India, Bangalore Circle, has announced its tie-up withNew India Assurance Company Ltd (NIAC), for distribution of NIACsgeneral insurance products in Karnataka- SBI unveils new credit card in Ahmedabad-State Bank of India joined the billion dollar club-THE State Bank of India opened its 236th branch in the State atTripunithura on June 16-SBI inaugurates first Internet shoppe in Kochi-State Bank of India has opened a fully computerised branch atKarunagappally in Kollam district-L&T-John Deere Private Ltd has signed a memorandum of understanding(MoU) with State Bank of India for tractor finance-Buys 10% stake in Multi Commodity Exchange of India Ltd. (MCDEX)for Rs 2.1 crore-SBI join hands with Hero Honda to unveil co-branded credit card-State Bank of India launched its first mobile ATM for increasing thebanking convenience of its customers
  40. 40. 40-State Bank of India has signed a Memorandum Of Understanding (MOU)with the Societe Generale Asset Management of France (SGAM) forinducting Societe Generale Asset Management as a stake holdingpartner for SBIs mutual fund arm, SBI Fund Management Private Ltd(SBIFMPL)-State Bank of India, (SBI) with a view to expand the ambit of itseducational loan schemes, has unveiled a unique educational loanscheme, christened Nursing Plus, for the nursing students of thecountry-SBI forges alliance with Hero Honda-SBI offers new scheme`School Plus for schools-SBI Card has launched Instant Card offering customers in need ofinstant credit opportunity. With this, the customers will get anopportunity to get ready to use credit card within a few hours offiling in their application form-SBI selects Finacle for international ops-SBI enters ATM tie up with Andhra Bank-SBI join hands with LIC for funding infrastructure projects-Tata Motors on December 7, 2004, signs an MoU with State Bank ofIndia (SBI)-SBI partners with Eicher Motors on December 27, 20042005-Raj Travels joins hands with SBI for travel loans-SBI opens branch at Vadakara-SBI join hands with Apollo Health to offer loans-SBI rolls out new loan scheme-SBI opens first branch in Lakshadweep island of Kavaratti-SBI enters into agreement for bilateral sharing of ATMs with PNB onMay 10, 2005
  41. 41. 41-SBI signs MOU with Corporation Bank for ATM sharing-State Bank of India and 8 associate banks have entered into anagreement with Bharat Petroleum Corporation Ltd (BPCL) for enhancingcard usage at fuel stations-SBI launches new mortgage loan scheme for traders-SBI launches SBI card in Madurai-SBI inaugurates RBO in Thrissur-SBI signed a memorandum of understanding with Small IndustriesDevelopment Bank of India for co-financing small and mediumenterprises in Andhra Pradesh, Tamil Nadu, Uttar Pradesh, Jammu &Kashmir, Jharkhand, Delhi and Bihar-State Bank of India and Crisil have signed a memorandum ofunderstanding under which latter will assign ratings to small-scaleindustries that are borrowers of SBI-NSIC join hands with SBI to offer credit to SSI2006-SBI teams up with Nihilent to unveil feedback system-Bhatt to become SBIs new MD-State Bank of India (SBI) has informed that Shri. Yogesh Agarwal hasbeen appointed as Managing Director on the Board of the Bank witheffect from October 10, 2006 to the June 30, 20102007-State Bank of India (SBI) has appointed Shri. S K Bhattacharya asManaging Director on the Board of the Bank with effect from October08, 2007 to the October 31, 2010, as per the Notification datedOctober 08, 2007, by the Government of India.- The State Bank of India (SBI) has become the first foreign bank toset up a branch in the Israels diamond exchange. Besides diamonds,they also see huge potential in telecommunications, hi-tech,chemicals, textiles, agriculture and water management, foodprocessing, pharma and health care.
  42. 42. 422008-State Bank of India (SBI) has informed that the Government of Indiain pursuance of clause (e) of Section 19 of the State Bank of IndiaAct, 1955 (23 of 1955) has nominated Shri. Arun Ramanathan,Secretary, Ministry of Finance, Department of Financial Services, NewDelhi as a Director on the Central Board of State Bank of India witheffect from January 18, 2008, vice Shri. Vinod Rai.-State Bank of India (SBI) has informed that the Central Government,in consultation with the Reserve Bank of India and in pursuance ofclause (d) of Section 19 of the State Bank of India Act, 1955 (23 of1955), has nominated Dr. (Mrs.) Vasantha Bharucha as a part-timenon-official Director on the Central Board of State Bank of India fora period of three years with effect from February 25, 2008, vice ShriPiyush Goel.- State Bank of India (SBI) has informed that the Central Government,in consultation with the Reserve Bank of India and in pursuance ofclause (d) of Section 19 of the State Bank of India Act, 1955 (23 of1955), has nominated Dr. Rajiv Kumar as part-time non-officialdirector on the Central Board of Directors of State Bank of India fora period of three years with effect from September 08, 2008 or untilfurther orders, whichever is earlier.- State Bank of India (SBI) has signed a Joint Venture Agreement withInsurance Australia Group to form a Joint Venture Company which willbe engaged in General Insurance business in India.- State Bank of India has rolled out a micro insurance schemeGrameen Shakti, for its Self Help Group (SHG) members. The productwas launched on Nov 26 at the Tamil Nadu Agricultural University. Thebank is hopeful to cover at least five lakh SHG members by December31.-The company has issued rights in the ratio of 1:5 at a premium ofRs.1580/- Per Share.2009- State Bank of India yesterday slashed its benchmark lending rate byhalf a percentage point to 11.75 per cent. The Benchmark Prime LendingRate (BPLR) was revised down by 50 basis points with effect from June29, SBI informed the Bombay Stock Exchange. This move would benefithome, car and corporate loan customers
  43. 43. 43- State Bank of India on June 30 launched two new home loan productscalled as SBI Easy Home Loan and SBI Advantage Home Loan, with zeroprocessing fees for both waived off till September 30. While SBI EasyHome is for loans amount up to Rs 30-lakh while the SBI Advantage Homeis for loans above Rs 30-lakh, a press release issued here said.- State Bank of India, entered into an agreement with the governmentof Gujarat to create a fund of Rs 5,000 crore for investing in equityof infrastructure projects.2010- State Bank of India, with a debit card base of over 70 million,comprising SBI Cash Plus, SBI Gold Debit Card and SBI Yuva Card, hasadded chip and PIN-based Platinum Debit Card to its bouquet on March 26.- Mr Arun Kumar Agarwal has taken over charge as General Manager atState Bank of India, Kerala Circle. Until now, he has been GeneralManager at the Lucknow Circle of the bank. Mr Agarwal is CertifiedAssociate of Indian Institute of Bankers and joined State Bank ofIndia as a Probationary Officer in 1977. An expert in credit andforeign exchange, he has held several assignments ranging from BranchManager to Regional Manager in the Patna and Delhi circles. He alsoserved in the banks foreign department at Kolkata handlinginvestment of the FCNB portfolio, derivatives and correspondentrelations. He has headed the Pune Module of the bank and has alsoserved as the Deputy General Manager and Business Head for Network-1of the Mumbai Circle.- State Bank of India (SBI) has signed a pact with UniqueIdentification Authority of India (UIDAI) to work as a registrar forthe UID registration of residents. It has become the first bank totake up registration work for the UIDAI project. As a registrar, SBIwill capture through empanelled enrolment agencies, the biometriccharacters such as finger prints, iris and so on and send theinformation to UIDAI.
  44. 44. 44BALANCE SHEET FOR THE YEAR ENDING ON MARCH 2007-20112007 2008 2009 2010 2011CAPITAL AND LIABILITIESTotal share capital 526.30 631.47 634.88 634.88 635.00Equity share capital 526.30 631.47 634.88 634.88 635.00Share application money 0.00 0.00 0.00 0.00 0.00Preference share capital 0.00 0.00 0.00 0.00 0.00Reserves 30772.26 48401.09 57312.82 65314.32 64351.04Revaluation reserves 0.00 0.00 0.00 0.00 0.00Net worth 31298.56 49032.66 57947.70 65949.20 64986.04Deposits 435521.09 537403.94 742073.13 804116.23 933932.81Borrowings 39703.34 51727.41 53713.68 103011.60 119568.96Total debt 475224.43 589131.35 795786.81 907127.83 1053501.77Other liabilities and provisions 60042.26 83362.30 110697.57 80336.70 105248.39Total liabilities 566565.25 721526.31 964432.08 1053413.73 1223736.202007 2008 2009 2010 2011ASSETSCash and balances with RBI 29,076.43 51534.62 55546.17 61290.87 94395.50Balance with banks, money at call22892.27 15931.72 48857.63 34892.98 28478.65Advances 337336.49 416768.20 542503.20 631914.15 756719.45Investments 149148.88 189501.27 275953.96 285790.07 295600.57Gross block 13189.28 11831.63 10403.03 11831.63 13189.28Accumulated depreciation 8757.33 7713.90 6828.65 7713.90 8757.33Fixed Assets 4431.95 4117.73 3574.41 4117.73 4431.95Capital work in progress 332.23 295.18 263.44 295.18 332.23Other assets 43777.85 35112.76 37733.27 35112.76 43777.85Total assets 566565.25 721526.31 964432.08 1053413.74 1223736.20Contingent liabilities 585294.50 429917.37 614603.47 429917.37 585294.50Bills for collection 205092.29 166449.04 152964.06 166449.04 205092.29Book value 1023.40 1038.76 912.73 1038.76 1023.40EPS 86.29 106.56 143.67 144.37 116.07Net block= gross block – depreciation Net block = fixed assetsPROFIT AND LOSS ACCOUNT OF STATE BANK OF INDIAFOR THE ENDING ON MARCH 2007-20112007 2008 2009 2010 2011Income:Interest earned 39491.03 48950.31 63788.43 70993.92 81394.36Other income 7446.76 9398.43 12691.35 14968.15 14935.09Total income 46937.79 58348.74 76479.78 85962.07 96329.45Expenditure:
  45. 45. 45Interest expended 23436.82 31929.08 42915.29 47322.48 48867.96Operating expenses 13251.78 14609.55 18123.66 24941.01 31430.88Total expenses 42396.48 51619.62 67358.55 76796.02 88959.12Other provision and contingencies 5707.88 5080.99 6319.60 4532.53 8660.28Net profit 4541.31 6729.12 9121.23 9166.05 7370.37Extraordinary items 0.00 0.00 0.00 0.00 0.00Profit B/F 0.34 0.34 0.34 0.34 0.34Total 4541.65 6729.46 9121.57 9166.39 7370.69Preference dividend 0.00 0.00 0.00 0.00 0.00Equity dividend 736.82 1357.66 1841.15 1904.65 1905.00Corporate dividend tax 125.22 165.87 248.03 236.76 246.52Per share data:EPS 86.29 106.56 143.67 144.37 116.07Equity dividend (%) 140.00 215.00 290.00 300.00 300.00Book value 594.69 776.48 912.73 1038.76 1023.40AppropriationsTransfer to statutory reserve 3682.15 5205.69 6725.15 6495.14 2488.96Transfer to other reserve -2.88 -0.10 306.90 529.50 2729.87Proposed dividend/ transfer to govt. 862.04 1523.53 2089.18 2141.41 2151.52Balance C/F to balance sheet 0.34 0.34 0.34 0.34 0.34Total 4514.65 6729.46 9121.57 9166.39 7370.69
  46. 46. 46SUSTAINABLE EARNINGS OF STATE BANK OF INDIA:201103(12)201003(12)200903(12)200803(12)200703(12)INCOME :Total 97218.96 85962.07 76482.74 58437.42 44671.37II. ExpenditureTotal 88954.44 76796.02 67361.51 51708.3 40130.06Fringe Benefit tax 0 0 142 105 88.5Deferred Tax 976.82 -1407.75 -1055.1 -219.43 -19.83Reported Net Profit 8264.52 9166.05 9121.23 6729.12 4541.31Extraordinary Items -10.23 -5.83 -1.71 7 4.52Adjusted Net Profit 8274.75 9171.88 9122.94 6722.12 4536.79average of adjusted Net Profit 2009,2010 and20118856.52333roundingoff 8857Standard deviation : 504.33Rounding off 504CRAR%201103 201003 200903CRAR(%)Year End 201103 201003 200903CRAR - Tier I (%) 7.77 9.45 9.38CRAR - Tier II (%) 4.21 3.94 4.87Total CRAR (%) 11.98 13.39 14.25
  47. 47. 47TotalCRAR(%)2009 14.25year 2010 13.392011 11.98RATIO ANALYSIS:CURRENT RATIO:An indication of a companys ability to meet short-term debt obligations; thehigher the ratio, the more liquid the company is. Current ratio is equal to current assetsdivided by current liabilities. If the current assets of a company are more than twice thecurrent liabilities, then that company is generally considered to have good short-termfinancial strength. If current liabilities exceed current assets, then the company may haveproblems meeting its short-term obligations.14.2513.3911.9810.51111.51212.51313.51414.52009 2010 2011yearTotal CRAR (%)
  48. 48. 48CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITYcurrent ratioyear 2007-2011year Ratio2007 0.052008 0.072009 0.042010 0.042011 0.04LIQUID RATIO:Liquid ratio is also known as „Quick‟ or „Acid Test „Ratio. Liquid assets refer toassets which are quickly convertible into cash. Current Assets other stock and prepaid expensesare considered as quick assets.Quick Ratio = Total Quick Assets
  49. 49. 49Total Current LiabilitiesQuick Assets = Total Current Assets – InventoryYear Ratio2007 6.522008 6.152009 5.742010 9.072011 8.50EARNING PER SHARE:In order to avoid confusion on account of the varied meanings of the term capitalemployed, the overall profitability can also be judged by calculating earning per share with thehelp of the following formula:Earning Per Equity Share = Net Profit after Tax –Preference DividendNo. of Equity sharesThe earning per share of the company helps in determining the market price of the equity sharesof the company. A comparison of earning per share of the company with another will also help in6.526.155.749.078.50123456789101 2 3 4 5quick ratioquick ratio
  50. 50. 50deciding whether the equity share capital is being effectively used or not. It also helps inestimating the company’s capacity to pay dividend to its equity shareholders.Year Ratio2007 86.292008 106.562009 143.672010 144.372011 116.07DIVIDEND PER SHARE :It is expressed by dividing dividend paid to equity shareholders by no. of equity shares.this shows the per share dividend given to equity shareholders. It is very helpful for potentialinvestors to know the dividend paying capacity of the company. It affects the market value of thecompany.86.29106.56143.67 144.37116.070204060801001201401601 2 3 4 5RatioRatio
  51. 51. 51Dividend Per Share = Dividend Paid To Equity ShareholdersNo. Of Equity Sharesdividendpershare2007 14year 2008 21.52009 292010 302011 30NET PROFIT RATIO:This ratio indicates the Net margin on a sale of Rs.100. It is calculated as follows:Net Profit Ratio = Net Profit X 100Net Sales1421.529 30 30051015202530352007 2008 2009 2010 2011yeardividend per share
  52. 52. 52This ratio helps in determining the efficiency with which affairs of the business are beingmanaged. An increase in the ratio over the previous period indicates improvement in theoperational efficiency of the business. The ratio is thus on effective measure to check theprofitability of business.netprofitratio2007 10.12year 2008 11.652009 12.032010 10.542011 8.55RETURN ON NET WORTH:It measures the profitability of the business in view of the shareholders. It judges the earningcapacity of the company and the adequacy of return on proprietor’s funds. Shareholders andpotential investors are interested in this ratio. It is calculated as below:10.1211.65 12.0310.548.55024681012142007 2008 2009 2010 2011yearnet profit ratio
  53. 53. 53Return On Net Worth = Net Profit After Interest And Tax x 100Shareholder‟s Fundsreturn onshareholders2007 14.5year 2008 13.722009 15.742010 13.892011 12.71DEBT- EQUITY RATIO:The Debt-Equity ratio is calculated to find out the long-term financial position of the firm. Thisratio indicates the relationship between long-term debts and shareholder’s funds. The soundnessof long-term financial policies of a firm can be determined with the help of this ratio. It helps toassess the soundness of long-term financial policies of a business. It also helps to determine therelative stakes of outsiders and shareholders. Long-term creditors can assess the security of theirfunds in a business. It indicates to what extent a firm depends upon lenders to meet its long-termfinancial requirements. A low Debt-Equity ratio is considered better from the point of view ofcreditors.14.513.7215.7413.8912.710246810121416182007 2008 2009 2010 2011yearreturn on shareholders
  54. 54. 54TotalDebt toOwnersFund2007 13.92year 2008 10.962009 12.812010 12.192011 14.37FIXED ASSETS TURNOVER RATIO:It is also called as Sales to Fixed Assets Ratio. It measures the efficient use of fixed assets. Thisratio is a measure of efficient use of fixed assets. it is calculated as:Fixed Assets Turnover Ratio = Cost of goods sold or SalesNet Fixed AssetsIt measures the efficiency and profit earning capacity of the business. Higher the ratio, greater isthe intensive utilization of fixed assets and a lower ratio shows under utilization of the fixedassets. This ratio has a special importance for manufacturing concerns where investment in fixedassets, is very high and the profitability is significantly dependent on the utilization of theseassets.13.9210.9612.81 12.1914.3702468101214162007 2008 2009 2010 2011yearTotal Debt to Owners FundTotal Debt to OwnersFund
  55. 55. 55assetsturnoverratio2007 5.44year 2008 6.322009 7.22010 7.262011 7.24CREDIT-DEPOSIT RATIO:This ratio is very important to assess the credit performance of the bank. The ratio shows therelationship between the amount of deposit generated by the bank as well as their deploymenttowards disbursement of loan and advances. Higher credit deposit ratio shows overall goodefficiency and performance of any banking institution.100DepositsCreditsRatioDepositCreditCredit means disbursement of advancesDeposit mean sum of fixed deposit,5.446.327.2 7.26 7.240123456782007 2008 2009 2010 2011yearassets turnover ratio
  56. 56. 56Saving deposit and current deposit.creditdepositratio2007 73.44year 2008 77.512009 74.972010 75.962011 79.9CASH DEPOSIT RATIO :cashdepositratio2007 6.22YEAR 2008 8.292009 8.372010 7.562011 8.9673.4477.5174.9775.9679.9707274767880822007 2008 2009 2010 2011yearcredit deposit ratio
  57. 57. 57CAPITAL TURNOVER RATIO :Income / capital employedCAPITALTURNOVERRATIO2007 8.46YEAR 2008 8.962009 8.992010 8.622011 8.486.228.29 8.377.568.960123456789102007 2008 2009 2010 2011YEARcash deposit ratio
  58. 58. 58Total assets turnover ratio:totalassetsturnoverratio2007 0.08year 2008 0.092009 0.092010 0.092011 0.088.468.96 8.998.628.488. 2008 2009 2010 2011YEARCAPITAL TURNOVERRATIO
  59. 59. 59PRICE- EARNING RATIO:Price earning ratio = market price per share/ earning per sharePriceEarning(P/E)2007 11.83Year 2008 15.382009 7.632010 14.782011 21.920.080.09 0.09 2008 2009 2010 2011yeartotal assets turnover ratio
  60. 60. 60Price to Book Value:Market Value of Security/ book value of sharesPrice toBook Value( P/BV)2007 1.67year 2008 2.062009 1.172010 22011 2.711.8315.387.6314.7821.9205101520252007 2008 2009 2010 2011YearPrice Earning (P/E)
  61. 61. 61Enterprise Value / EBIDTAEV/EBIDTA2007 15.64year 2008 14.462009 13.642010 15.332011 17.071.672.061.1722.700.511.522.532007 2008 2009 2010 2011yearPrice to Book Value (P/BV)15.6414.4613.6415.3317.070246810121416182007 2008 2009 2010 2011yearEV/EBIDTAEV/EBIDTA
  62. 62. 62BANK OF BARODA
  63. 63. 63INTRODUCTIONBank of Baroda (BoB) (BSE: 532134) (Hindi: ) is the third largest bank in India,after the State Bank of India and the Punjab National Bank and ahead of ICICI Bank.[3]BoB isranked 763 in Forbes Global 2000 list. BoB has total assets in excess of Rs. 3.58 lakh crores, orRs. 3,583 billion, a network of over 3,409 branches and offices, and about 1,657 ATMs. It plansto open 400 new branches in the coming year. It offers a wide range of banking products andfinancial services to corporate and retail customers through a variety of delivery channels andthrough its specialized subsidiaries and affiliates in the areas of investment banking, credit cardsand asset management. Its total business was Rs. 5,452 billion as of June 30.[4]As of August 2010, the bank has 78 branches abroad and by the end of FY11 this number shouldclimb to 90. In 2010, BOB opened a branch in Auckland, New Zealand, and its tenth branch inthe United Kingdom. The bank also plans to open five branches in Africa. Besides branches,BoB plans to open three outlets in the Persian Gulf region that will consist of ATMs with acouple of people.The Maharajah of Baroda, Sir Sayajirao Gaekwad III, founded the bank on 20 July 1908 in theprincely state of Baroda, in Gujarat. The bank, along with 13 other major commercial banks ofIndia, was nationalized on 19 July 1969, by the government of India.BALANCE SHEET OF BANK OF BARODA2007 2008 2009 2010 2011Total Share Capital 365.53 365.53 365.53 365.53 392.81Equity Share Capital 365.53 365.53 365.53 365.53 392.81Share Application Money 0 0 0 0 0Preference Share Capital 0 0 0 0 0Reserves 8284.41 10,678.40 12,470.01 14,740.86 20,600.30Revaluation Reserves 0 0 0 0 0Net Worth 8649.94 11,043.93 12,835.54 15,106.39 20,993.11Deposits 124915.98 152,034.13 192,396.95 241,044.26 305,439.48Borrowings 1142.56 3,927.05 5,636.09 13,350.09 22,307.85Total Debt 126058.54 155,961.18 198,033.04 254,394.35 327,747.33Other Liabilities & Provisions 8437.70 12,594.41 16,538.15 8,815.97 9,656.73Total Liabilities 143146.18 179,599.52 227,406.73 278,316.71 358,397.172007 2008 2009 2010 2011AssetsCash & Balances with RBI 6413.52 9,369.72 10,596.34 13,539.97 19,868.18Balance with Banks, Money atCall 11866.85 12,929.56 13490.77 21,927.09 30,065.89Advances 83620.87 106,701.320 143985.90 175,035.29 228,676.36Investments 34943.63 43,870.07 52445.88 61,182.38 71,260.63
  64. 64. 64Gross Block 2244.62 3,787.14 3954.13 4,266.60 4,548.16Accumulated Depreciation 1155.81 1,360.14 1644.41 1,981.84 2,248.44Net Block 1088.81 2427.00 2309.72 2,284.76 2,299.72Capital Work In Progress 0 0 0 0 0Other Assets 5212.5 4301.83 4578.12 4,347.22 6,226.40Total Assets 143146.18 179599.5 227406.73 278,316.71 358,397.180Contingent Liabilities 54999.86 75364.33 64745.82 77,997.01 112,272.64Bills for collection 12976.53 15105.51 22584.64 27,949.60 33,735.67Book Value (Rs) 237.46 303.18 352.37 414.71 536.16EPS 28.18 39.41 61.14 83.96 108.33PROFIT AND LOSS OF BANK OF BARODAPROFIT & LOSS OF BANK OFBARODAIN RS.CR.2007 2008 2009 2010 2011Income:Interest earned9,212.64 11,813.5 15,091.6 16,698.3 21,885.9Other income 1,381.79 2,051.04 2,757.66 2,806.36 2,809.19Total income 10,594.4 13,864.5 17,849.2 19,504.7 24,695.1Expenditure:Interest expended 5,426.56 7,901.67 9,968.17 10,758.9 13,083.7Operating expenses 2,771.45 3,370.27 3,844.66 4,711.23 5,669.88Other provision and contingencies 1,369.95 1,157.05 1,809.20 976.28 1,699.88Total expenses 9,568.0 12,429.0 15,622.0 16,446.4 20,453.4Net profit 1,026.46 1,435.52 2,227.20 3,058.33 4,241.68Extraordinary items 0 0 0 0 0Profit B/F 0 0 0 0 0Total 1,026.46 1,435.52 2,227.20 3,058.33 4,241.68Preference dividend 0 0 0 0 0Equity dividend 252.46 340.94 383.56 639.26 753.35Corporate dividend tax 0 0 0 0 0Per share data:EPS 28.18 39.41 61.14 83.96 108.33Equity dividend (%) 60 80 90 150 165
  65. 65. 65Book value 237.46 303.18 352.37 414.71 536.16AppropriationsTransfer to statutory reserve 271.5 444.23 1,136.23 1,162.07 1,387.87Transfer to other reserve 502.5 650.35 707.41 1,257.00 2,100.46Proposed dividend/ transfer to govt. 252.46 340.94 383.56 639.26 753.35Balance C/F to balance sheet 0 0 0 0 0Total 1,026.46 1,435.52 2,227.20 3,058.33 4,241.68RATIO ANALYSIS OF BANK OF BARODA:Current ratio: CURRENT ASSETS/ CURRENT LIABILITIESCurrentRatio2007 0.04year 2008 0.032009 0.022010 0.022011 0.02QUICK RATIO: 0.02 0.0200.0050.010.0150.020.0250.030.0350.040.0452007 2008 2009 2010 2011yearCurrent RatioCurrent Ratio
  66. 66. 66QuickRatio2007 11.29year 2008 9.562009 9.622010 21.882011 26.38EarningsPerShare2007 28.18year 2008 39.412009 61.142010 83.962011 108.3311.299.56 9.6221.8826.380510152025302007 2008 2009 2010 2011yearQuick RatioQuick Ratio
  67. 67. 67Total Debt toOwners Fund2007 14.44year 2008 13.772009 14.992010 15.962011 14.5528.1839.4161.1483.96108.330204060801001202007 2008 2009 2010 2011yearEarnings Per ShareEarnings Per Share14.4413.7714.9915.9614.5512.51313.51414.51515.51616.52007 2008 2009 2010 2011yearTotal Debt to Owners FundTotal Debt to OwnersFund
  68. 68. 68Cash DepositRatio2007 4.46year 2008 5.72009 5.82010 5.572011 6.11CreditDeposit Ratio2007 65.67year 2008 68.722009 72.782010 73.62011 73.874.465.7 5.8 5.576.11012345672007 2008 2009 2010 2011yearCash Deposit RatioCash Deposit Ratio
  69. 69. 69AssetTurnoverRatio2007 4.25year 2008 3.472009 4.22010 4.482011 5.2565.6768.7272.7873.6 73.876062646668707274762007 2008 2009 2010 2011yearCredit Deposit RatioCredit Deposit Ratio4.253.474.24.485.2501234562007 2008 2009 2010 2011yearAsset Turnover RatioAsset Turnover Ratio
  70. 70. 70Total AssetsTurnover Ratios2007 0.07Year 2008 0.082009 0.082010 0.082011 0.08Total Income /CapitalEmployed(%)2007 7.83year 2008 8.572009 8.512010 7.862011 7.750.070.08 0.08 0.08 0.080.0640.0660.0680.070.0720.0740.0760.0780.080.0822007 2008 2009 2010 2011yearTotal Assets Turnover RatiosTotal Assets TurnoverRatios
  71. 71. 71Net Profit /Total Funds2007 0.8year 2008 0.892009 1.092010 1.212011 1.337.838.57 8.517.867.757. 2008 2009 2010 2011yearTotal Income / Capital Employed(%)Total Income / CapitalEmployed(%)0.80.891.091.211.3300. 2008 2009 2010 2011yearNet Profit / Total FundsNet Profit / Total Funds
  72. 72. 72Dividend PerShare2007 6Year 2008 82009 92010 152011 16.5PRICE- EARNING RATIO:Price earnings ratio = market price per share/ earnings per sharePRICE-EARNING2007 7.93YEAR 2008 7.492009 3.952010 7.872011 9.156891516.50246810121416182007 2008 2009 2010 2011yearDividend Per ShareDividend Per Share
  73. 73. 73PRICE- BOOK VALUEMarket Value of Security/ book value of sharesPRICE-BOOKVALUE2007 0.91YEAR 2008 0.942009 0.672010 1.552011 1.87.937.493.957.879.150123456789102007 2008 2009 2010 2011YEARPRICE- EARNING
  74. 74. 74ENTERPRISE TO EBIDTA:EV/EBIDTA2007 15.9YEAR 2008 13.932009 14.012010 15.932011 16.640.91 0.940.671.551.800. 2008 2009 2010 2011YEARPRICE-BOOK VALUE15.913.93 14.0115.9316.6412.51313.51414.51515.51616.5172007 2008 2009 2010 2011YEAREV/EBIDTA
  75. 75. 75TREND ANALYSISTrend Analysis is the practice of collecting information and attempting to spot a pattern, ortrend, in the information. In some fields of study, the term "trend analysis" has more formally-defined meaning.Although trend analysis is often used to predict future events, it could be used to estimateuncertain events in the past, such as how many ancient kings probably ruled between two dates,based on data such as the average years which other known kings reigned.TREND ANALYSIS OF STATE BANK OFINDIABASE YEAR 2006-2007percentage (%)figures2007 2008 2009 2010 2011deposits 100 123 170 185 214advances 100 124 161 187 224netprofit 100 148 201 202 1620501001502002502007 2008 2009 2010 2011depositsadvancesnet profit