Professional Documents
Culture Documents
For
Banking sector
SUBMITTED BY
SUBMITTED TO
University of Pune
(Batch 2016-17)
DECLARATION
We, the undersigned, hereby declare that the Project Report of industry analysis and desk
partial fulfillment of the requirements for the award of degree of Master of Business
Administration (M.B.A.) under the guidance of Prof. RANITA VALVE. Is our original work and
the conclusions drawn there in are based on the material collected by our self.
analysis. We take this opportunity to owe my thanks to all those involved in my training.
This project report could not have been completed without the guidance of Prof.
RANITA VALVE. I express my gratitude towards Dr. A. A. DESHMUKH Sir (Director, Global
Institute of Management), his timely help & encouragement helped me to complete this project
successfully. Without which the project work could not have been completed.
Research Student
This is to certify that the project on Enterprise Analysis for MBA-CBCS 2013 pattern Semester –
II For the academic Year 2016-17 was submitted in the partial fulfillment of requirement of
Master’s Degree in Business Administration Programme of University of Pune, and embodies
the bonafide work carried out by
We find the work complete, comprehensive and of significantly high standard to warrant its
presentation for the purpose of MBA examination.
External
INDEX- COMPANY 1
References
INDEX- COMPANY 2
References
Company 1
Type Public
Traded as NSE: SBIN
BSE: 500112
LSE: SBID
BSE SENSEX Constituent
CNX Nifty Constituent
Industry Banking, financial services
Founded 2 June 1806, Bank of Calcutta
27 January 1921, Imperial Bank of India
1 July 1955, State Bank of India
2 June 1956,[1] nationalization
Headquarters Mumbai, Maharashtra, India
Area served Worldwide
Key people Smt. Arundhati Bhattacharya
(Chairperson)
Products Consumer banking, corporate banking, finance and
insurance, investment banking, mortgage loans, private
banking, private equity, savings, securities, asset
management, wealth management, credit cards,
Revenue 257289 crore (US$38 billion) (2015)
Profit 17517 crore (US$2.6 billion) (2015)
Total assets 2700110 crore (US$400 billion) (2015)
Total equity 203417 crore (US$30 billion) (2015)
Owner Government of India
Members 286 million users with 450 million accounts (2016)
Number of employees 222,033 (2014)
State Bank of India is one of the Big Four banks of India, along with ICICI Bank, Bank of
Baroda and Punjab National Bank.
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 it the oldest commercial bank in the Indian
Subcontinent. Bank of Madras merged into the other two "presidency banks" in British India,
Bank of Calcutta and Bank of Bombay, to form the Imperial Bank of India, which in turn
became the State Bank of India. Government of India owned the Imperial Bank of India in 1955,
with Reserve Bank of India (India's Central Bank) taking a 60% stake, and renamed it the State
Bank of India. In 2008, the government took over the stake held by the Reserve Bank of India.
State Bank of India is a regional banking behemoth and has 20% market share in deposits and
loans among Indian commercial banks.
1.2 HISTORY
The roots of the State Bank of India lie in the first decade of the 19th century, when the Bank of
Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal
was one of three Presidency banks, the other two being the Bank of Bombay (incorporated on 15
April 1840) and the Bank of Madras (incorporated on 1 July 1843). All three Presidency banks
were as joint stock companies and were the result of royal charters. These three banks received
the exclusive right to issue paper currency till 1861 when, with the Paper Currency Act, the right
was taken over by the Government of India. The Presidency banks amalgamated on 27 January
1921, and the re-organised banking entity took as its name Imperial Bank of India. The Imperial
Bank of India remained a joint stock company but without Government participation.
Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India,
which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On 1
July 1955, the imperial Bank of India became the State Bank of India. In 2008, the Government
of India acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of
interest because the RBI is the country's banking regulatory authority.
In 1959, the government passed the State Bank of India (Subsidiary Banks) Act. This made SBI
subsidiaries of eight that had belonged to princely states prior to their nationalization and
operational take-over between September 1959 and October 1960, which made eight state banks
associates of SBI. This acquisition was in tune with the first Five Year Plan, which prioritized
the development of rural India. The government integrated these banks into the State Bank of
India system to expand its rural outreach. In 1963 SBI merged State Bank of Jaipur (est. 1943)
and State Bank of Bikaner (est.1944).
SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911), which SBI
acquired in 1969, together with its 28 branches. The next year SBI acquired National Bank of
Lahore (est. 1942), which had 24 branches. Five years later, in 1975, SBI acquired Krishnaram
Baldeo Bank, which had been established in 1916 in Gwalior State, under the patronage of
Maharaja Madho Rao Scindia. The bank had been the Dukan Pichadi, a small moneylender,
owned by the Maharaja. The new bank's first manager was Jall N. Broacha, a Parsi. In 1985, SBI
acquired the Bank of Cochin in Kerala, which had 120 branches. SBI was the acquirer as its
affiliate, the State Bank of Travancore, already had an extensive network in Kerala.
There has been a proposal to merge all the associate banks into SBI to create a "mega bank" and
streamline the group's operations.
The first step towards unification occurred on 13 August 2008 when State Bank of Saurashtra
merged with SBI, reducing the number of associate state banks from seven to six. Then on 19
June 2009 the SBI board approved the absorption of State Bank of Indore. SBI holds 98.3% in
State Bank of Indore. (Individuals who held the shares prior to its takeover by the government
hold the balance of 1.7%.)
The acquisition of State Bank of Indore added 470 branches to SBI's existing network of
branches. Also, following the acquisition, SBI's total assets will inch very close to the 10 trillion
mark (10 billion long scale). The total assets of SBI and the State Bank of Indore stood at
9,981,190 million as of March 2009. The process of merging of State Bank of Indore was
completed by April 2010, and the SBI Indore branches started functioning as SBI branches on 26
August 2010.
VISION
My SBI.
My Customer first.
My SBI: First in customer satisfaction
MISSION
VALUES
ACHIVEMENTS:
AWARDS:
SBI was ranked as the top bank in India based on tier 1 capital by The Banker magazine
in a 2014 ranking
SBI was ranked 298th in the Fortune Global 500 rankings of the world's biggest
corporations for the year 2012
SBI was named the 29th most reputed company in the world according to Forbes 2009
rankings
SBI was 50th Most Trusted brand in India as per the Brand Trust Report 2013, an annual
study conducted by Trust Research Advisory, a brand analytics company and
subsequently, in the Brand Trust Report 2014,
SBI finished as India's 19th Most Trusted Brand in India.
State Bank of India won the developer award for Central Plan Scheme Monitoring
System
SBI received the awards for retail core banking and overall retail technology
project of the year.
SBI, the only Indian bank to get the award, was among 250 countries.
1.5 SWOT ANALYSIS
Strengths
1. SBI is the largest bank in India in terms of market share, revenue and assets.
2. As per recent data the bank has more than 13,000 outlets and 25,000 ATM centres
3. The bank has its presence in 32 countries engaging currency trade all over the world
4. The bank has a merged with State Bank of Saurashtra, State bank of Indore and the bank
is planning to go further acquisition in the current FY2012.
5. SBI has the first mover advantage in commercial banking service
6. SBI has recently changed its vision and mission statements showing a sign of inclination
towards new age banking services
Weakness
2. SBI has the largest number of employees in banking sector, hence the bank spends a
considerable amount of its income in employee’s salary compensation
In spite of modernization, the bank still carries the perception of traditional bank to new
age
3. Customers SBI fails to attract salary accounts of corporate and many government sector
employees salary accounts are also shifted to private bank for ease of operations unlike
before
Opportunities
1. SBI’s merger with five more banks namely State Bank of Hyderebad, State bank of
Patiala, State bank of Bikaber and Jaipur, State of bank of Travancore and State bank of
Mysore are in approval stage
2. Mergers will result in expansion of market share to defend its number one position
SBI is planning to expand and invest in international operations due to good inflow of
money from Asian Market
3. Since the bank is yet to modernize few of its banking operations, there is a better scope of
using advanced technologies and software to improve customer relations
4. Young and talented pool of graduates and B schools are in rise to open new horizon to so
called “old government bank”
Threats
1. Net profit of the year has decline from 9166.05 in the year FY 2010 to 7,370.35 in the
year FY2011
2. This shows the reduce in market share to its close competitor ICICI
Other private banks like HDFC, AXIS bank etc
3. FDIs allowed in banking sector is increased to 49% , this is a major threat to SBI as
people tend to switch to foreign banks for better facilities and technologies in banking
service
4. Other governments banks like PNB, Andhra, Allahabad bank and Indian bank are
showing
Customer prefer to switch to private banks and financial service providers for loans and
mortgages, as SBI involves stringent verification procedures and take long time for
processing.
CHAPTER2
Research methodology
1. Secondary Data: - Secondary data was collected from books, articles, Wikipedia and
also website of bank and previous research papers that had been conducted by the
Simple statistical tools and techniques like average, ratios, pie charts, tables and graphs in
addition to factor analysis method are used to analyze the data
Chapter No .3
Product Profile
Working Capital Finance
Project Finance
Structured Finance
Dealer Financing
Channel Financing
Equipment Leasing
Loan Syndication
Cash Management Products
Chapter No .4
Competitors
Of
State bank of India
Previous
Company Name Current Price High Price Low Price
Price
Chapter 5
Financial Data
BALANCE SHEET OF SBI
Mar '15 Mar '14 Mar '13 Mar '12 Mar '11
Capital and Liabilities:
Total Share Capital 746.57 746.57 684.03 671.04 635.00
Equity Share Capital 746.57 746.57 684.03 671.04 635.00
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 127,691.65 117,535.68 98,199.65 83,280.16 64,351.04
Net Worth 128,438.22 118,282.25 98,883.68 83,951.20 64,986.04
Deposits 1,576,793.24 1,394,408.51 1,202,739.57 1,043,647.36 933,932.81
Borrowings 205,150.29 183,130.88 169,182.71 127,005.57 119,568.96
Total Debt 1,781,943.53 1,577,539.39 1,371,922.28 1,170,652.93 1,053,501.77
Other Liabilities & Provisions 137,698.05 96,412.96 95,455.07 80,915.09 105,248.39
Total Liabilities 2,048,079.80 1,792,234.60 1,566,261.03 1,335,519.22 1,223,736.20
Mar '15 Mar '14 Mar '13 Mar '12 Mar '11
Assets
Cash & Balances with RBI 115,883.84 84,955.66 65,830.41 54,075.94 94,395.50
Balance with Banks, Money at Call 58,977.46 47,593.97 48,989.75 43,087.23 28,478.65
Advances 1,300,026.39 1,209,828.72 1,045,616.55 867,578.89 756,719.45
Investments 495,027.40 398,308.19 350,927.27 312,197.61 295,600.57
Gross Block 9,329.16 8,002.16 6,595.71 5,133.87 4,431.96
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Accumulated Depreciation 0.00 0.00 0.00 0.00 0.00
Net Block 9,329.16 8,002.16 6,595.71 5,133.87 4,431.96
Capital Work In Progress 0.00 0.00 409.31 332.68 332.23
Other Assets 68,835.55 43,545.90 47,892.03 53,113.02 43,777.85
Total Assets 2,048,079.80 1,792,234.60 1,566,261.03 1,335,519.24 1,223,736.21
Contingent Liabilities 1,093,422.51 1,091,358.37 993,018.45 899,565.18 790,389.59
Bills for collection 0.00 0.00 0.00 0.00 0.00
Book Value (Rs) 172.04 1,584.34 1,445.60 1,251.05 1,023.40
Type Public
BSE: 532461
Traded as NSE: PNB
CNX Nifty Constituent
Number of
62,392 (March 2013)
employees
Website www.pnbindia.in
History
Punjab National Bank was registered on 19 May 1894 under the Indian Companies Act, with its
office in Anarkali Bazaar, Lahore. The founding board was drawn from different parts of India
professing different faiths and a varied back-ground with, however, the common objective of
providing country with a truly national bank which would further the economic interest of the
country.[1] PNB's founders included several leaders of the Swadeshi movement such as Dyal
Singh Majithia and Lala Harkishan Lal, Lala Lalchand, Shri Kali Prosanna Roy, Shri E.C.
Jessawala, Shri Prabhu Dayal, Bakshi Jaishi Ram, and Lala Dholan Dass. [6][7] Lala Lajpat Rai
was actively associated with the management of the Bank in its early years. The board first met
on 23 May 1894.[1] The bank opened for business on 12 April 1895 in Lahore.
PNB has the distinction of being the first Indian bank to have been started solely with Indian
capital that has survived to the present. (The first entirely Indian bank, Oudh Commercial Bank,
was established in 1881 in Faizabad, but failed in 1958.)
PNB has had the privilege of maintaining accounts of national leaders such as Mahatma Gandhi,
Jawahar Lal Nehru, Lal Bahadur Shastri, Indira Gandhi, as well as the account of the famous
Jalianwala Bagh Committee
Vision & Mission
Corporate Mission
Vision
To be a Leading Global Bank with Pan India footprints and become a household brand in the
Indo-Gangetic Plains providing entire range of financial products and services under one roof"
Mission
"Banking for the unbanked"
Board of director
Awards, Achievements & Certificate
SWOT Analysis
1. Diversified operations with 5100 branches
2. Strong I. T support with “best fit” approach
3. Schemes for small and medium scale businesses
4. It is the second largest state-owned commercial bank in India
with about 5000 branches across 764 cities
1. Secondary Data: - Secondary data was collected from books, articles, Wikipedia and
also website of bank and previous research papers that had been conducted by the
Simple statistical tools and techniques like average, ratios, pie charts, tables and graphs in
addition to factor analysis method are used to analyze the data
Product Profile
Competition
Name Last Price Market Cap. Net Interest Net Profit Total Assets
(Rs. cr.) Income
(Source:
http://www.moneycontrol.com/competition/punjabnationalbank/comparison/PNB05)
Financial data
Mar '15 Mar '14 Mar '13 Mar '12 Mar '11
Mar '15 Mar '14 Mar '13 Mar '12 Mar '11
Assets
Cash & Balances with RBI
Balance with Banks, Money at Call 24,224.94 22,245.58 17,886.25 18,492.90 23,776.90
Contingent Liabilities
References
1. https://www.sbi.co.in/
2. http://rbidocs.rbi.org.in/rdocs/content/PDFs/90028.pdf
3. "Annual Report 2012-13" (PDF). SBI. 23 May 2013. Retrieved 10 October 2013.
4. "Fortune 'Global 500' 2013:State Bank of India". CNN. Retrieved 10 October 2013.
5. http://www.dnaindia.com/money/report-sbi-lays-foundation-for-csr-actions-launches-e-wallet-
2115877
6. As India's Banks Wait In Fear Of The Rupee Hitting 70 To The Dollar, Here's A List Of The Best 10
Indian Banks By Revenue. Ibtimes.com (2013-09-04). Retrieved on 2013-12-06.
7. History of the Evolution of SBI volumes 1, 2 and 3 and Banking Beyond Boundaries (Penguin,
2011)
8. "SBI Annual Report 2014-15" (PDF). State Bank of India. Retrieved 14 January 2016.
9. "The Largest Banks in India". www.relbanks.com. Retrieved 2015-11-11.
10. Banking Theory Law N Practice. Tata McGraw-Hill Education. p. 8. Retrieved Nov 4, 2014.
|first1= missing |last1= in Authors list (help)
11. "SBI accounts for one-fifth of country's loans". Livemint.com. 25 January 2009. Retrieved 20
August 2010.
12. "Indian Banks' Association". Iba.org.in. 23 April 2005. Retrieved 21 December 2010.
13. Business Standard (21 June 2010). "Approvals for State Bank of Indore merger by July: SBI".
14. Economic Times (26 August 2010). "State Bank of Indore branches to become SBI units from Aug
26 : SBI". The Times Of India.
15. "Arundhati Bhattacharya, first woman to head SBI".
16. "SBI takes lead in opening bank accounts under Jan Dhan Yojana". The Economic Times. 11 Sep
2014. Retrieved 2014-09-30.
17. "State Bank of India to set up branch in China's Tianjin". Forbes. 21 November 2007. Retrieved 16
July 2010.[dead link]
18. "State Bank of India Acquired 76% Shareholding in Giro Commercial Bank In 2005".
Accessmylibrary.com. 8 October 2005. Retrieved 21 December 2010.
19. http://deshgujarat.com/2014/02/19/sbi-logo-was-inspired-by-kankaria-lake/
20. "Shareholding Pattern as on 30 June 2013". MoneyControl.com. Retrieved 10 October 2013.
21. "State Bank of India". BSEindia.com. Retrieved 11 October 2013.
22. "Scripwise Weightages in S&P BSE SENSEX". BSE India. Retrieved 11 October 2013.
23. "State Bank of India". NSE India. Retrieved 11 October 2013.
24. "Download List of CNX Nifty stocks (.csv)". NSE India. Retrieved 11 October 2013.
25. "SBID State Bank of India GDR (Each Rep 2 SHS INR10)". London Stock Exchange. 11 Oct 1996.
Retrieved 11 October 2013.
26. "The top five banks in India". thebanker.com. 10 April 2014. Retrieved 11 April 2014.
27. Kneale, Klaus (6 May 2009). "World's Most Reputable Companies: The Rankings". Forbes.
Retrieved 20 August 2010.
28. "Brand Mahatma lags behind Sachin, Aamir: Study". India Today. 28 January 2011. Retrieved 10
October 2013.
29. "The Economic Times".
30. "Brand Trust Report 2014".
31. "Competitors of SBI in India - Equitymaster"
References for collecting data about
1) https://www.pnbindia.in/
2) "Origin of PNB". Punjab National Bank. Retrieved 18 February 2014.
3) "History of PNB". NDTV.com. Retrieved 18 February 2014.
4) "Annual Report 2012-13" (PDF). PNB. Retrieved 18 February 2014.
5) "Financials Information for Punjab National Bank". Hoover's. Retrieved 18 February 2014.
6) "The Largest Banks in India". www.relbanks.com. Retrieved 2015-11-11.
7) Singh Majithia (1994).
8) Tandon (1989).
9) Turnell (2009), p.226.
10) "Punjab National Bank acquires 30% stake in Metlife, company to be re-branded". The Indian
Express. 4 January 2013. Retrieved 18 February 2014.
11) "Punjab National Bank". BSEindia.com. Retrieved 18 February 2014.
12) "Punjab National Bank". NSE India. Retrieved 18 February 2014.
13) "Download List of CNX Nifty stocks (.csv)". NSE India. Retrieved 18 February 2014.
14) "Punjab National Bank - Shareholding Pattern - December 2013". MoneyControl.com. Retrieved
18 February 2014.
15) "Punjab National Bank on the Forbes Global 2000 List". Forbes. May 2013. Retrieved 18 February
2014.
16) "13 Best Banks of India". Silicon India. 19 November 2012. Retrieved 18 February 2014.
17) "IBFA awards the best in banking, insurance cos". MoneyControl.com. 17 October 2012.
Retrieved 18 February 2014.
18) "PNB Awards". Punjab National Bank. Retrieved 18 February 2014.
19) "A Shining Account". Business World. 16 November 2012. Retrieved 18 February 2014.
20) "Corporate Social Responsibility (GPACSR)". goldenpeacockawards.com. Retrieved 18 February
2014.
21) "National Training Award (GPNTA)". goldenpeacockawards.com. Retrieved 18 February 2014.