TRAINING REPORT ON HDFC BANK DURATION: 2012-2013 MASTER OF BUSINESS ADMINISTRATOR FROM BARKATULLAH UNIVERSITY, BHOPAL

UNDER THE GUIDANCE OF:MR. PAWAN BHUMARKAR

SUMITTED BY :GANESH MAHAJAN MBA II SEMESTER

BARKATULLAH UNIVERSITY ,BHOPAL YEAR 2012

PREFACE

The Successful completion of this training was a unique experience for me because by visiting many places and interacting with various persons, I achieved a batter knowledge about marketing activities. The experience, which I gained by doing this Training, was essential at this turning point of my career . This Training is being submitted which contains details analysis of the research undertaken by me.

This Report is divided in to several parts. First part contains brief overview of organization and topic. Second part of objectives and research methodology. Middle part consists of data analysis and interpretation. Last part contains the observations and finding followed by conclusion and suggestion.

ACKNOWLEDMENT

I would like to express my deep sense of gratitude to the respectable guide distinguished personalities for their precious suggestion and encouragement during the training.

The experience which is gained by me during this training is essential for me at this turning point of my career. I am also thankful to my college guide Mr. pawan bhumarkar for her guidance and suggestion at every step in the preparation of this training report . Last but not the least I would like to thank company officials, my friend & family members for their constant support.

Ganesh Mahajan MBA II Semester

I hereby declare that the training report entitled COMPARATIVE ANALYSIS OF HDFC BANK is an authentic work done by me .

The training was undertaken as a part of the course curriculum of MBA Progamme, Barkatullah University, Bhopal.

This is not been submitted to any other examination body earlier.

Date :-

Ganesh Mahajan MBA II Semester

CERTIFICATE
This is to certify that Mr. Ganesh Mahajan has completed Training work on the subject entitled COMPARATIVE ANALYSIS OF HDFC BANK Which is based on the research work done by the candidate..

The training report is completed by the candidate under my supervision. It is an original unaided research study completed under my supervision to meet the partial requirement of the MBA Degree of the Barkatullah University, Bhopal .

MR. PAWAN BHUMARKAR Training Guide

CONTENTS

CHAPTER -I INTRODUCTION CHAPTER-II COMPANY PROFILE CHAPTER-III OBJECTIVES OF THE STUDY CHAPTER-IV RESEARCH METHODOLOGY CHAPTER-V DATA ANALYSIS & INTERRETATION

CHAPTER-VI OBSERVATIONS & FIDINGS CHAPTER-VII CONCLUSION & SUGGESTIONS BIBLIOGRAPHY ANNEXURE

INTRODUCTION

3.In line with consensus, but we recommend buy ICICIB for growth Reasons and not for therelative valuation appeal.It is

not so much about ICICIB versus HSFC or HDFCB, but about Their respective operatingmetrics and growth conditions. Market Has rewarded both strategies:ICICIBs broad-based strategy allows capturing

value across the Value chain in a customer segment; andICICIB, like other large players in the private sector, enjoys Favorable conditions arising from arestrictive regulatory/policy Environment towards new entrants

and foreign banks and slow Paceof reforms for stateowned banks is believed.4.Increasing contribution from strategic invest ments Yet another driver

The value accruing from subsidiaries to

be 17% of ICICIBs Current marketcapitization. This to rise to 20% of ICICIBs target Price over the next 12 months isexpected with banking and life Insurance being the key drivers.

The life insurance business of ICICIB has been incurring losses On anaccounting basis d ue to continued investmen t in expznding The sac le and scopeof the business. The life insurance business is

Believed in creating wealth for itsshareholders through market Share gains, increasing penetration of life insuranceand improving operating efficiency.

The asset management and venture capital fund of ICICB makes A negligiblecontributio n currently; however, these businesses is Believed to hold significantupside potential as they

achieve scale Economies. 3.3.b. SBI 1.Potential headwind to price performance from loss of market share and weaker RoAA

SBI has been losing market share, both in terms of loans

and Deposits, for quite some time. But , the extent of loss over the Past 18 months has beenstaggering, particularly for deposits (2.2%)

In a bid to protect its profitability, SBI has embarked on a

Selective growthstrat egy. But given the banks spread and size, would be difficult to pursue a49 selective growth strategy unless It reconciles to a significant loss a marketshare over time.

Challenges are compounded by weaker profitability. The Expectoration is thecore operating pr ofits to rebound pas t Y2004 levels in F Y2008 E. Nonrecurr ing revenues and costs masked this

condition in FY2005 and FY2006.

SBIs size and potential to improve efficiency may sway Consensus opinion;the deep value inherent makes the Investment case compelling

. Althoughthere is p otential to Improve p erformance, it remai ns unrealized thus fa r.Convinced Size and potential is convincing.2.limited upside to growth expectations in the medium term Believe SBIs growth willremain

volatile. Lack of exceptional Incom e/cost elements and need to raise loan loss provisionsfrom Very low levels will likely cause volatility in earnings growth Through FY2009E, in our view.The forecast says12% CAGR in

net profit through FY2009E, However, on YoY basis, significantvolatility i n net profit Growth is ex pected The estimate s are below that of conse nsus for FY2009E and FY2009E by 10%. Consensus is

overestimating revenues by Either assuminghigher loan growth or NIM. The latter is more Likely that the former, in research view.Significant downward revision to consensus estimates for Operating revenues and profits

over the past 12 months.Consensus appears to be positive about excess liquidity that SBI Has reserve holding aresignificantly higher than minimum Required level. SBI would likely utilize the

excess liquidityover The next 12 months. Excess liquidity provides upside only in the Short term is viewed. 3. Value inherent, but catalysts limitedInvestors will maintain a growth bias in the Indian market. Growth

expectations for SBI are below that of consensus (21% CAGR through FY2009E versus consensus 15%CAGR) is Believed News flow about reduction of government holding in SBI to 15% And amendment to the

SBIsubsidiary act could be potential short- Term catalysts. However, the focus of the market will beon Earnings is believed., there are no catalysts to drive earnings Strongly is viewed.50

4.Reforms could be a trigger-assigning a low probability.

SBI is viewed as it will need flexibility in reorganizing its Distribution network andhuman resources. As long as the

Constraints remain, it will be at a disadvantage to peers in the Private sector is believed

There have a few incremental changes such as introduction of Voluntary retirementscheme for employees.

However, there Changes tend to drain the productive resourcesrather than Eliminating redundancy is viewed.

The RBI has chalked out a roadmap for opening up the sector to Foreign

banks in 2009.Should this co me to fruition, it wi ll leave Stateowned banks, inclu ding SBIS,significan tly disadvantages as We except to see consolidation within the private sector.51

3.4. CONCLUSION
This study on investment decision is conducted by analyzing and Comparing ICICI Bank and SBI based on fundamental analysis and Technical

Analysis.This indicates that, the key driver of stock performance of ICICI Bank shows anIncreasing trend where as underperformance of SBIS hows a decreasing trend besides its

high potential.The initial investment summary cover with a Buy rating to ICICI Bank and a sell rating toSBI based on strategic investment using the Analysis.52

INTRODUCTION