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EIC ANALYSIS ON PSU BANKS

Submitted to Rohoini Sharma Bhaskar Prasad 50043 Bhuvnesh Prakash 50045 Ashok Kr Gupta 8177 Deepak 50049

Submitted By: Akash 50018

ECONOMY ANALYSIS
Indian economy is facing challenging times. After enjoying a high growth rates of around 8% for the better past 5 years its GDP growth estimated at 5.3 per cent in real terms for the quarter ended March 2012. Slowdown in comparison to preceding two years is primarily due to deceleration in industrial growth. Adding to the economy woes is inflation and interest rates are not expected to come down in near time. The recovery of Indian economy has been stalled due to host of factors like The intensification of sovereign debt crisis in the Euro zone, political turmoil in Middle East injected widespread uncertainty, crude oil prices rose, an earthquake struck Japan and the overall gloom refused to lift. A number of scams and scandal(common wealth scam,adarsh society scam,tetra scam,2G,3G scams etc) have come forward which has not only tannish indias shining image in the world but also reduce the confidence of retail investors. Certain policies (like FDI in insurance, retail, etc.) aimed at improving growth prospect of the economy have been stalled in the parliament like foreign investment in multichain outlets etc. Growth below expectation: India's economy grew at an annual rate of 5.3 per cent in the quarter ended March 2012, much lower than expectations of 6.1 per cent projected by a poll of 31 economists. Experts see a bleak growth rate looking forward and stress on policy reforms by government to kickstart the manufacturing sector. The GDP numbers mean that the countrys growth slowed for eight successive quarters through the three months ended March 2012. It is also the lowest GDP growth rate in 13 quarters; the last time India registered the same rate of growth was in the quarter ended December 2009, when the global financial system had all but collapsed in the aftermath of the bankruptcy filing by Lehman Brothers Holdings Inc. Weakest fiscal performance in 9 years: Indias growth rose 6.5 per cent in the fiscal year to the end of March 2012. This is the lowest growth rate since 2002-03 when it fell to 4 per cent in the wake of a global slowdown. It is also a sharp slowdown from the previous fiscals 8.4 per cent. Agriculture growth falters: The farm sector, which is the single largest employer in the country but one of the lowest contributors to absolute GDP, grew at a measly 1.7 per cent against 7.5 per cent in the corresponding period last fiscal. This is bad news as rural consumption drives considerable amount of growth for leading Indian companies. Poor agriculture growth means rural consumers would have less money to spend going forward. Manufacturing and services struggle: A key drag on growth numbers were the industry and services sectors -- both key drivers of growth -- which came in lower than expected, at 1.9 and 7.9 per cent against 7 and 10.6 per cent in the year-ago period. The manufacturing sector contracted (-) 0.3 per cent from 7.3 per cent in the same period last fiscal.

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Exports hurt: The corporate sector has witnessed its worst slowdown in recent times. Confidence and demand have been weighed down by higher interest rates, a challenging export environment, and, perhaps most important, policy mismanagement and political deadlock, according to Moodys Analytics. A sluggish global economy has also cut demand for India's goods overseas, despite the falling rupee, which means exports may also not grow enough to compensate for the domestic weakness. Expect fewer jobs: The ability of companies to create jobs is hurt during a successive slowdown in the GDP growth rate. Company could conserve cash and put expansion on hold as a result of weak growth prospects going forward. Lower investment is also partially a fallout of a high interest regime to keep inflation in check. No scope for economic stimulus: The current account deficit is the highest since 1980. This occurs when a country imports more than it exports. Costly subsidies have pushed the fiscal deficit to 5.9 per cent from a target of 4.6 per cent of GDP in the fiscal year that ended in March 2012. This leaves little headroom for any fiscal stimulus. The surging budget deficit means the government cannot provide for any tax related incentives to stimulate growth. RBI cannot stimulate the economy either: A sharp 25 per cent drop in the rupee over the past 9 months could hurt RBIs ability to cut interest rates because doing so could increase inflationary pressure. There can be no growth stimulus from RBI through a lower borrowing cost as it battles stubbornly high inflation.

On the brighter side, the Recent UPA Govts reform initiatives show policy paralysis is over. If these reforms are implemented in timely manner coupled with directed effort towards pushing for fiscal consolidation can really help the economy to reach a higher growth rate but also can help reduce inflation and the current account deficit, India has always surprised the world with vibrancy and exponential growth in the past and there is no reason why India cannot repeat the same success story of the past. Looking at the whole scenario one feels that worst may be over for Indian economy only direction left is upside.

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INDUSTRY ANALYSIS
For the past three decades India's banking system has several outstanding achievements to its credit. It is no longer confined to only metropolitans or cosmopolitans in India; in fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth process. The government's regularization policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14 major private banks of India. Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days. Now it is simple as instant messaging or dial a pizza. Client satisfaction has become the order of the day.

History

Post-Independence
In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and it became an institution owned by the Government of India. In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India." The Banking Regulation Act also provided that no new bank or branch of an existing bank may be opened without a license from the RBI, and no two banks could have common directors.

Liberalization
The new policy shook the Banking sector in India completely. Bankers, till this time, were used to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4) of functioning. In the early 1990s the then Narsimha Rao government embarked on a policy of liberalization and gave licenses to a small number of private banks, which came to be known as New Generation tech-savvy banks, which included banks such as Global Trust Bank (the first of such new generation banks to be set up) which later amalgamated with Oriental Bank of Commerce, UTI Bank (now re-named as Axis Bank), ICICI Bank and HDFC Bank

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RECENT DEVELOPMENT IN BANKING SECTOR


A retrospect of the events clearly indicates that the Indian banking sector has come far away from the days of nationalization. The Narasimhan Committee laid the foundation for the reformation of the Indian banking sector. Constituted in 1991, the Committee submitted two reports, in 1992 and 1998, which laid significant thrust on enhancing the efficiency and viability of the banking sector. As the international standards became prevalent, banks had to unlearn their traditional operational methods of directed credit, directed investments and fixed interest rates, all of which led to deterioration in the quality of loan portfolios, inadequacy of capital and the erosion of profitability. The recent international consensus on preserving the soundness of the banking system has veered around certain core themes. These are: effective risk management systems, adequate capital provision, sound practices of supervision and regulation, transparency of operation, conducive public policy intervention and maintenance of macroeconomic stability in the economy. Until recently, the lack of competitiveness vis--vis global standards, low technological level in operations, over staffing, high NPAs and low levels of motivation had shackled the performance of the banking industry. However, the banking sector reforms have provided the necessary platform for the Indian banks to operate on the basis of operational flexibility and functional autonomy, thereby enhancing efficiency, productivity and profitability. The reforms also brought about structural changes in the financial sector and succeeded in easing external constraints on its operation, i.e. reduction in CRR and SLR reserves, capital adequacy norms, restructuring and recapitulating banks and enhancing the competitive element in the market through the entry of new banks. The reforms also include increase in the number of banks due to the entry of new private and foreign banks, increase in the transparency of the banks balance sheets through the introduction of prudential norms and increase in the role of the market forces due to the deregulated interest rates. These have significantly affected the operational environment of the Indian banking sector. To encourage speedy recovery of Non-performing assets, the Narasimhan committee laid directions to introduce Special Tribunals and also lead to the creation of an Asset Reconstruction Fund. For revival of weak banks, the Verma Committee recommendations have laid the foundation. Lastly, to maintain macroeconomic stability, RBI has introduced the Asset Liability Management System. The competitive environment created by financial sector reforms has nonetheless compelled the banks to gradually adopt modern technology to maintain their market share. Thus, the declaration of the Voluntary Retirement Scheme accounts for a positive development 5|Page

reducing the administrative costs of Public Sector banks. The developments, in general, have an emphasis on service and technology; for the first time that Indian public sector banks are being challenged by the foreign banks and private sector banks. Branch size has been reduced considerably by using technology thus saving manpower. The deregulation process has resulted in delivery of innovative financial products at competitive rates; this has been proved by the increasing divergence of banks in retail banking for their development and survival. In order to survive and maintain strong presence, mergers and acquisitions has been the most common development all around the world. In order to ensure healthy competition, giving customer the best of the services, the banking sector reforms have led to the development of a diversifying portfolio in retail banking, and insurance, trend of mergers for better stability and also the concept of virtual banking.

ANALYSIS OF BANKING SECTOR WITH RESPECT TO PORTERS 5 FORCES MODEL

1) RIVALRY AMONG COMPETING FIRMS Rivalry among competitors is very fierce in Indian Banking Industry. The services banks offer is more of homogeneous which makes the Company to offer the same service at a lower rate and eat their competitor markets share. Market Players use all sorts of aggressive selling strategies and activities from intensive advertisement campaigns to promotional stuff. Even consumer switch from one bank to another, if there is a wide spread in the interest. Hence the intensity of rivalry is very high. The no of factors has contributed to increase rivalry those are Large no of alternatives Customers have large no of alternatives, there are so many banks, whichfight for same pie. There are many non financial institutions like icici, hdfc, andifci, etc. which has also jump into these business .there are foreign banks , privetbanks, cooperative banks and development banks together with specializedfinancial companies that pro vides finance to customers .these all increasepreference for customers. Low switching cost Cost of switching from one bank to another is low. Banks are alsoproviding zero balance account and another types of facilities. They are free toselect any banks service. Switching cost are becoming lower with internetbanking gaining momentum and a result customers loyalties are harder to retain. Undifferentiated service 6|Page

Bank provide merely similar service there are no much diffracted inservice provides by different banks so, bargaining power of customers increase.They cannot be charged for differentiation.

Full information about the market Customers have full information about the market due to globalization anddigitalization Consumers have become advance and sophisticated .they areaware with each market condition so banks have to be more competitive and customer friendly to serve them. For good creditworthy borrowers bargaining power is high due to the availability of large number of banks

2) POTENTIAL ENTRY OF NEW COMPETITORS Reserve Bank of India has laid out a stagnant rules and regulation for new entrant in Banking Industry. We expect merger and acquisition in the banking industry in near future. Hence, the industry is less prone of new competitor. Barriers to an entry in banking industry no longer exist. So lots of private and foreign banks are entering in the market. Competitors can come from an industry to disinter mediate bank product differentiation is very difficult for banks and exit is difficult. So every bank strives to survive in highly competitive marketso we see intense competitive can mergers and acquisitions. Government policies are supportive to start new bank. There is less statutory requirement needed to start a new venture? Every bank to tries to achieve economies of scale through use of technology and selecting and training manpower .There are public sector banks, private sector and foreign banks along with on banking finance companies competing in similar business segments. 3) POTENTIAL DEVELOPMENT OF SUBSTITUTE PRODUCTS Every day there is one or the other new product in financial sector.Banks are not limited to tradition banking which just offers deposit and lending. In addition, today banks offers loans for all products, derivatives, ForEx,Insurance, Mutual Fund, Demit account to name a few. The wide range of choices and needs give a sufficient room for new product development and product enhancement. Substitute products or services are those, which are different but satisfying the same set of customers .In banking industry following are the substitutes: NBFC: Non-banking financial Institutions play an important role in giving financial assistance. Mobilization of financial resources outside the traditional banking system has witnessed a tremendous growth in recent years in the India. NBFC is a close substitute of banking in respect of raising funds.

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Borrower can easily raise funds from NBFC because it requires less formal procedure for getting funds compare to private banks. Post Office Products : Post office is also providing some service like fixeddeposit facility, saving account, recurring account etc. The interest rate of saving account is higher than private banks. It is fully secured by thegovernment so people who do not want to take risk for them post officesaving is good substitute. Government Bond: Govt. Bond also attracts savings from the general public. It is less risky and more secured as compare to savings in public banks. Mutual Funds: Mutual funds are also now proving as good substitutes for banks. They assure for providing high return with less time in comparison of banks. The administrative expenses are also very low as compared to banks.Investment in Mutual funds is more flexible than investment in banks. Stock Market: People who are ready to bear risk and wants a high return on their investment, stock market is a good substitute for them. Day by day investors are moving towards stock market as interest rate in banks are decreasing. So now stock market has proved as a big competitor for banking sector. Debentures: Debentures is also proved as a good substitute of banks fixed deposit as return on debenture is fixed and high. There are different types of debentures, which attract various classes of investors. Other Investment Alternatives: Now common peoples attraction is shiftingfrom banks to other various alternatives such as gold, precious metals, land,small savings etc. As we can see the growing trend in these alternatives incomparison of decreasing interest rates in banks

4) BARGAINING POWER OF CUSTOMERS Customers of the banks are those who take loans, advances and use services of banks. Customers have high bargaining power. Following are the reasons for high bargaining power of customers. Large no. Of alternatives: Customers have very large no. of alternatives. There are so many banks, whichfight for same pie. There are many non-financial institutions like ICICI, HDFC, IFCI etc., which has also jumped into this business. There are foreign banks, private banks, cooperative banks and development banks together with

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the specialized financial companies that provide finance to customers. These all increase preferences for customers. Low switching cost: Cost of switching from one bank to another is low. Banks are also providing zero balance account and other types of facilities. They are free to select any banks service. Switching costs are becoming lower with Internet Banking gaining momentum and as a result consumers loyalties are harder to retain. Undifferentiated service Banks provide merely similar services. There is no much difference in services provided by different banks. So, bargaining power of customers increases. They cannot be charged for differentiation. Full information about the market: Customers have full information about the market due to globalization and digitization consumers have become advance and sophisticated. They are aware with each market conditions. So, banks have to be more competitive and customer friendly to serve them.

5) BARGAINING POWER OF SUPPLIERS Suppliers of banks are depositors. These are those people who have excess money and prefer regular income and safety. In banking industry Suppliers have low bargaining power. Following are the reasons for low bargaining power of suppliers. Nature of suppliers: Suppliers of banks are generally those people who prefer low risk and those who need regular income and safety as well. Bank is best place for them to deposit their surplus money. They believe that banks are very safe than other investment alternatives. So, they do not consider other alternatives very seriously, which lower their bargaining power Few alternatives: Suppliers are risk averters and want regular income. So, they have few alternatives available with them to invest like Treasury bills, government bonds. So, few alternatives lower their bargaining power. RBI Rules and Regulations: Banks are subject to RBI rules and regulations. Banks have to behave in the way that RBI wants. So, RBI takes all decisions relating to interest rates. This reduces suppliers bargaining power. Suppliers are not concentrated: Banking industrys suppliers are not concentrated. There are numerous suppliers with negligible portion to offer. So, this reduces their bargaining power. If they were concentrated then they can bargain with banks or can collectively invest in other no-risky projects.

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SWOT ANALYSIS OF BANKING SECTOR

STRENGTH
Indian banks have compared favorably on growth, asset quality and profitability with other regional banks over the last few years. The banking index has grown at a compounded annual rate of over 51 per cent since April 2001 as compared to a 27 per cent growth in the market index for the same period. Policy makers have made some notable changes in policy and regulation to help strengthen the sector. These changes include strengthening prudential norms, enhancing the payments system and integrating regulations between commercial and co-operative banks. Bank lending has been a significant driver of GDP growth and employment. Extensive reach: the vast networking & growing number of branches & ATMs. Indian banking system has reached even to the remote corners of the country. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region.

WEAKNESS
Public Sector Banks need to fundamentally strengthen institutional skill levels especially in sales and marketing, service operations, risk management and the overall organisational performance ethic & strengthen human capital. There is an increase in amount of NPAs in the balabce sheets of many PSU bank whick can be a source of discomfort. The cost of intermediation remains high and bank penetration is limited to only a few customer segments and geographies. Structural weaknesses such as a fragmented industry structure, restrictions on capital availability and deployment, lack of institutional support infrastructure, restrictive labor laws, weak corporate governance and ineffective regulations beyond Scheduled Commercial Banks (SCBs), unless industry utilities and service bureaus. Refusal to dilute stake in PSU banks: The government has refused to dilute its stake in PSU banks below 51% thus choking the headroom available to these banks for raining equity capital. Impediments in sectorial reforms: Opposition from Left and resultant cautious approach from the North Block in terms of approving merger of PSU banks may hamper their growth prospects in the medium term.

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OPPORTUNITY
The market is seeing discontinuous growth driven by new products and services that include opportunities in credit cards, consumer finance and wealth management on the retail side, and in fee-based income and investment banking on the wholesale banking side. These require new skills in sales & marketing, credit and operations. With increased interest in India, competition from foreign banks will only intensify. Given the demographic shifts resulting from changes in age profile and household income, consumers will increasingly demand enhanced institutional capabilities and service levels from banks. New private banks could reach the next level of their growth in the Indian banking sector by continuing to innovate and develop differentiated business models to profitably serve segments like the rural/low income and affluent/HNI segments; actively adopting acquisitions as a means to grow and reaching the next level of performance in their service platforms. Attracting, developing and retaining more leadership capacity Foreign banks committed to making a play in India will need to adopt alternative approaches to win the race for the customer and build a value-creating customer franchise in advance of regulations potentially opening up post 2009. Reach in rural India for the private sector and foreign banks. Liberalization of ECB norms: The government also liberalised the ECB norms to permit financial sector entities engaged in infrastructure funding to raise ECBs. This enabled banks and financial institutions, which were earlier not permitted to raise such funds, explore this route for raising cheaper funds in the overseas markets. Hybrid capital: In an attempt to relieve banks of their capital crunch, the RBI has allowed them to raise perpetual bonds and other hybrid capital securities to shore up their capital. If the new instruments find takers, it would help PSU banks, left with little headroom for raising equity.

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THREATS
Threat of stability of the system: failure of some weak banks has often threatened the stability of the system. Rise in inflation figures which would lead to increase in interest rates. Increase in the number of foreign players would pose a threat to the Public Sector Bank as well as the private players. Increase in NPA(non performing assets) of these banks is a major cause of concern.

Key players in banking industry


1. State Bank of India (SBI) 2. Punjab National Bank (PNB) 3. Bank of Baroda (BoB) 4. IDBI Bank 5. Syndicate Bank 6. Bank of India (BoI) 7. Canara Bank 8. IDBI Bank 9. Corporation Bank 10. Bank of Maharashtra

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COMPANY ANALYSIS We have taken the following banks for our analysis:-

Punjab National Bank

State Bank of India

Yes Bank

Bank of Baroda

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PUNJAB NATIONAL BANK (PNB)


Punjab National Bank (PNB) (BSE: 532461, NSE: PNB) is an Indian financial services company based in New Delhi, India. PNB is the third largest bank in India by assets. It was founded in 1894 and is currently the second largest state-owned commercial bank in India ahead of Bank of Baroda with about 5000 branches across 764 cities. It serves over 37 million customers. The bank has been ranked 248th biggest bank in the world by the Bankers Almanac, London. The bank's total assets for financial year 2007 were about US$60 billion. PNB has a banking subsidiary in the UK, as well as branches in Hong Kong, Dubai and Kabul, and representative offices in Almaty, Dubai, Oslo, and Shanghai.

KEY RATIOS Mar12 Operational & Financial Ratios


Earnings Per Share (Rs) DPS(Rs) Book NAV/Share(Rs) Performance Ratios ROA(%) ROE(%) ROCE(%) Efficiency Ratios Cost Income Ratio Core Cost Income Ratio Operating Costs to Assets 39.75 40.55 1.53 41.27 42.09 1.68 39.39 42.20 1.61 1.17 21.05 7.21 1.31 24.45 6.47 1.44 26.59 6.97 144.00 22.00 777.39 139.94 22.00 632.48 123.86 22.00 514.77

Mar11

Mar10

Valuation Parameters
PER(x) PCE(x) Price/Book(x) 14 | P a g e 6.43 6.07 1.19 8.72 8.24 1.93 8.18 7.74 1.97

Yield(%) EV/Net Sales(x) EV/Core EBITDA(x) EV/EBIT(x) EV/CE(x) M Cap / Sales

2.38 1.89 6.47 2.29 0.15 0.86

1.80 2.60 7.76 3.23 0.19 1.43

2.17 2.39 6.99 2.72 0.17 1.49

Growth Ratios
Core Operating Growth Income 13.61 17.21 10.17 22.91 21.34 2.90 39.27 58.21 13.52 22.87 29.75 12.98 24.10 11.48 26.35 23.52 20.62 26.35

Operating Profit Growth Net Profit Growth BVPS Growth Advances Growth EPS Growth(%)

Liquidity Ratios
Loans/Deposits(x) Total Debt/Equity(x) Current Ratio(x) Quick Ratio(x) 0.10 0.05 0.32 9.82 0.10 0.08 0.30 10.10 0.08 0.07 0.31 7.73

ANALYSIS & INTERPRETATION Current Ratio of PNB has been less than 1 for all the 3 years taken for analysis. As the standard of current ratio is 1:1 for banking industry. This implies that working capital of PNB is always negative. This is generally considered an aggressive strategy i.e. to financing its long term asset by short term sources that increases profitability because current liabilities are non-interest bearing items. The liquidity ratios have increase from previous year which shows a good trend. Debt to equity ratio was between 0.08 to 0.10 for previous 3 year as taken to comparison Moreover it is showing a upward trend this means that the company has taken huge amount of loan to finance it business.

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Analyzing the EPS and DPS, which are profit distributing ability ratios, for PNB we can see that it has been generating more than 500% times profit for its shareholders over the years. The EPS increased over the years from Rs.123.86 in year 2010 to Rs. 144 in year 2012. It has been distributing the profit in a constant manner with maintaining the level of Rs 22. If you multiply EPS & PER of 2012 you get Rs 925.92 and the current market share of PNB is Rs 824.75(as on 12th oct.2012) this means that the company is undervalued.

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State bank of India (SBI)


State Bank of India (SBI) (NSE: SBIN, BSE: 500112, LSE: SBID) is the largest banking and financial services company in India by revenue, assets and market capitalisation. It is a stateowned corporation with its headquarters in Mumbai, Maharashtra. As of March 2011, it had assets of US$370 billion with over 13,577 outlets including 157 overseas branches and agents globally. 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 presidencies banksBank of Calcutta and Bank of Bombayto form the Imperial Bank of India, which in turn became the State Bank of India. The Government of India nationalized the Imperial Bank of India in 1955, with the Reserve Bank of India 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. SBI is ranked No. 292 globally in Fortune Global 500 list in 2011. SBI provides a range of banking products through its vast network of branches in India and overseas, including products aimed at non-resident Indians (NRIs). The State Bank Group, with over 18,324 branches, has the largest banking branch network in India. SBI has 14 local head offices situated at Chandigarh, Delhi, Lucknow, Patna, Kolkata, Guwahati (North East Circle), Bhubaneswar, Hyderabad, Chennai, Trivandrum, Bangalore, Mumbai, Bhopal & Ahmedabad and 57 Zonal Offices that are located at important cities throughout the country. It also has 157 branches overseas. SBI is a regional banking behemoth and is one of the largest financial institutions in the world. It has a market share among Indian commercial banks of about 20% in deposits and loans.[3] The State Bank of India is the 29th most reputed company in the world according to Forbes.[4] Also, SBI is the only bank featured in the coveted "top 10 brands of India" list in an annual survey conducted by Brand Finance and The Economic Times in 2010.[5] The State Bank of India is the largest of the Big Four banks of India, along with ICICI Bank, Punjab National Bank and HDFC Bankits main competitors

Key Ratios MAR 2012 Operational & Financial Ratios


Earnings Per Share (Rs) DPS(Rs) Book NAV/Share(Rs) 17 | P a g e 174.46 35.00 1251.05 130.15 30.00 1023.40 144.37 30.00 1038.76

MAR 2011

MAR 2010

ROA(%) ROE(%) ROCE(%) Efficiency Ratios Cost Income Ratio Core Cost Income Ratio Operating Costs to Assets Valuation Parameters PER(x) PCE(x) Price/Book(x) Yield(%) EV/Net Sales(x) EV/Core EBITDA(x) EV/EBIT(x) EV/CE(x) M Cap / Sales

0.91 15.72 6.39

0.73 12.62 5.61

0.91 14.80 6.07

45.23 44.51 1.95

47.60 48.53 1.88

52.59 55.63 1.93

12.01 11.06 1.67 1.67 2.51 8.48 3.27 0.20 1.32

21.27 18.99 2.70 1.08 3.63 11.66 4.63 0.24 2.16

14.40 13.07 2.00 1.44 3.31 12.83 3.84 0.22 1.86

Growth Ratio
Core Operating Growth Income 33.10 24.62 41.66 34.05 37.41 62.16 -9.84 -9.85 13.41 17.96 0.49 0.49

Operating Profit Growth Net Profit Growth EPS Growth(%)

Liquidity Ratios
Total Debt/Equity(x) Current Ratio(x) Quick Ratio(x) 0.05 0.30 12.17 0.10 0.32 12.80 0.08 0.37 12.81

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ANALYSIS & INTERPRETATION

Current Ratio of SBI for last 3 year has remained between 0.30 to 0.37 which is against the standard of 1:1. This should be an area of concern for the bank. Debt/Equity ratio means the ratio of finance coming from Debts compared to shareholders. A ratio exceeding 1 may be cause for concern. As it can be seen that the Debt/Equity ratio is near to 0.05 to 0.10 for the last three year this means that company operate the business mainly through owner funds. FACE value of SBI share is Rs10.Analyzing the EPS and DPS, which are profit distributing ability ratios. The EPS increased over the years from Rs. 144.37 in year 2010 to Rs. 174.46 in year 2012. It has been generous in distributing the profit in form of dividend with DPS Rs. 30 in year 2010, 2011 and Rs. 35 in year 2012. Multiplying EPS & PER for 2012 you get Rs 2095.7 and the current market share of SBI is Rs 2268 (as on 12th October 2012), this means that the company is overvalued.

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YES BANK
Yes Bank (BSE: 532648) is a private bank in India. It was founded by Ashok Kapur and Rana Kapur with the duo holding a collective financial stake of 27.16%. YES Bank has received significant national and international recognitions which include Mr. Rana Kapoor, Founder, MD & CEO being recognized as the Entrepreneurial Banker of the Decade (2001-2010) by Bombay Management Association, Indias No. 1 New Private Sector Bank in the Financial Express-E&Y Best Banks Survey 2010, Indias Fastest Growing Bank of the Year at the Bloomberg UTV Financial Leadership Awards 2011. YES Bank has become the first Indian Bank, and the third one globally in the banking industry to receive certification for its 'Complaints Management System (ISO 10002:2004)' by the British Standard's Institution (BSI) as on August 25, 2010 . The bank was also awarded the ISO 27001:2005 Certification for its 'Information Security Management System' by BSI. In 2010, the bank announced the roll-out of a strategic blueprint, named Version 2.0 of the bank, to further accelerate its business growth in the retail banking space, with the objective to achieve by 2015, a balance sheet size of Rs.1,50,000 crore, deposits of 125,000 crore, advances of 100,000 crore, a pan India network of 750 branches and a human capital base 12,000 by 2015 .

March 12
Investment Valuation Ratios Face Value Dividend Per Share Operating Profit Per Share (Rs) Net Operating Profit Per Share (Rs) Free Reserves Per Share (Rs) Bonus in Equity Capital Profitability Ratios Interest Spread Adjusted Cash Margin(%) Net Profit Margin Return on Long Term Fund(%) Return on Net Worth (%) Adjusted Return on Net Worth (%) Return on Assets Excluding Revaluations Return on Assets Including Revaluations 20 | P a g e 10 4 43.31 201.81 98.45 -4.53 14.25 13.66 131.35 20.89 20.92 132.49 132.49

March'11
10 2.5 33.96 134.18 82.62 -3.6 16.31 15.56 102.46 19.16 19.17 109.29 109.29

March '10
10 1.5 21.69 84.68 69.33 -3.21 17.35 16.3 74.73 15.46 15.48 90.96 90.96

Management Efficiency Ratios Interest Income / Total Funds Net Interest Income / Total Funds Non-Interest Income / Total Funds Interest Expended / Total Funds Operating Expense / Total Funds Profit Before Provisions / Total Funds Net Profit / Total Funds Loans Turnover Total Income / Capital Employed(%) Interest Expended / Capital Employed(%) Total Assets Turnover Ratios Asset Turnover Ratio Profit And Loss Account Ratios Interest Expended / Interest Earned Other Income / Total Income Operating Expense / Total Income Selling Distribution Cost Composition Balance Sheet Ratios Capital Adequacy Ratio Advances / Loans Funds(%) Debt Coverage Ratios Credit Deposit Ratio Investment Deposit Ratio Cash Deposit Ratio Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax Leverage Ratios Current Ratio Quick Ratio Cash Flow Indicator Ratios 21 | P a g e

10.74 3.67 0.04 7.07 1.36 2.28 1.47 0.2 10.78 7.07 0.11 0.11 74.38 0.37 12.63 0.14

9.77 3.91 0.03 5.86 1.43 2.43 1.52 0.16 9.8 5.86 0.1 18.25 69.15 0.31 14.64 0.44

9.7 4.37 0.18 5.34 1.88 2.57 1.61 0.17 9.89 5.34 0.1 13.93 66.75 1.85 19.02 0.37

17.9 65.53 76.09 48.99 5.69 10.51 0.33 1.22

16.5 81.65 77.75 39.92 6.97 12.11 0.43 1.27

20.6 88.94 80.52 40.33 7.62 8.67 0.5 1.32

0.08 7.83

0.05 15.34

0.04 14.54

Dividend Payout Ratio Net Profit Dividend Payout Ratio Cash Profit Earning Retention Ratio Cash Earning Retention Ratio Adjusted Cash Flow Times Earnings Per Share

16.79 16.12 83.23 83.9 48.22 Mar12 27.68

13.91 13.28 86.1 86.73 60.25 Mar '11 20.95

12.47 11.73 87.54 88.28 52.69 Mar '10 14.06

ANALYSIS & INTERPRETATION Analyzing the EPS and DPS, which are profit distributing ability ratios. The EPS increased over the years from Rs. 14.06 in year 2010 to Rs. 27.68 in year 2012. It has been generous in distributing the profit in form of dividend with DPS Rs. 1.50 in year 2010, 2.50 in 2011 and for the year ending March 2012, Yes Bank has declared an equity dividend of 40.00% amounting to Rs 4 per share. At the current share price of Rs 394.20 these results in a dividend yield of 1.01%. Capital Adequacy Ratio (CAR) is a ratio that regulators in the banking system use to watch bank's health, specifically bank's capital to its risk. Regulators in the banking system track a bank's CAR to ensure that it can absorb a reasonable amount of loss. Here yes banks Capital Adequacy Ratio is falling down as compared to year 2010 but increasing if we compared it with year 2011 yes banks Capital Adequacy Ratio is falling normally but not a big issue for the bank. As we know that higher the quick ratio, the better the position of the company. Here if we see the yes banks quick ratio we will find that it is continuously falling down which is not good for banks position in the financial market. Operating Profit per Share from last two years is keep on increasing by 99.667 from march 2010 to 2012. This chows that the company is doing well its business. Based on latest financial disclosure Yes Bank Limited has Return on Equity of 23.07%. This is 1513.29% higher than that of financial sector, and 304.74% higher than that of Money Center Banks industry, The Return On Equity for all stocks is 627.92% lower than the firm. Price earnings ratio multiplied by EPS gives you the stock price and if we look at it for the year 2012 it comes out as 394.83 with 13.38 as PER and 29.51 which comes out to be as EPS and the market price for the same is 394.70. This means that company is fairly valued.

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Bank of Baroda
Bank of Baroda is an international level banking products and services provider of India. It is ranked #1477 in 2008 Forbes Global 2000 list. It is among few Indian banks that has a global presence. Bank of Baroda operates in 25 countries. Bank of Baroda aims at being a leading bank that performs at par with international standards. It also looks to increase value of stakeholders to maximum possible level. It is the fourth largest lender with a net profit growth of 32% and total business growth of 24%. The bank does most of its business in the non-urban market where the competition is low but the risks are comparatively higher. Bank of Baroda has the second largest resource base in the country after State Bank of India. BRIEF HISTORY Bank of Baroda was incorporated in 1908 by Maharaja Sayajirao Gaekwad III with paid up capital of INR 10 lacs and the third largest commercial public sector bank after state bank of India and Punjab national bank in terms of net profit and total business founded by . It launched its first branch in 1910 in Ahmedabad. In 1953, its first branches in Kampala and Mombasa became operational. Its overseas branch in Nairobi was opened in 1954. Now today it has total number of 2956 branches located worldwide as on April 2009, out of which 626 were located in Metro cities, 524 in urban areas, 642 in Semi-Urban locations, 1092 in rural areas and 72 were located outside India. The bank has 10 Zonal Offices and 43 Regional Offices which help it control its operations nationally. Product & services Bank of Baroda provides it banking products and services in several categories like personal, international, business, treasury, corporate and rural. In personal banking section Bank of Baroda offers products like deposits, debit cards, Gen-Next, personal banking services, loans, lockers and credit cards. In business banking sector, Bank of Baroda offers products and services such as deposits, business banking services, loans and advances and lockers. In corporate banking section, Bank of Baroda offers products and services like wholesale banking, loans and advances, deposits and corporate banking services. FINANCIALS Sales of Bank of Baroda amounted to $2.48 billion and it earned profits worth $0.26 billion. Assets held by Bank of Baroda were worth $32.80 billion and its market value stood at $4.72 billion.

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MAR 2012 Operational & Financial Ratios


Earnings Per Share (Rs) DPS(Rs) Book NAV/Share(Rs) ROA(%) ROE(%) ROCE(%) Efficiency Ratios Cost Income Ratio Core Cost Income Ratio 37.55 39.28 121.79 17 664.08 1.24 21.26 107.77

MAR 2011

MAR 2010

108.33 16.5 505.68 1.33 24.30 189.22

83.96 15 414.67 1.21 21.86 0.00

39.87 41.46 1.29

43.67 47.50 1.37

Operating Costs to Assets 1.15 Valuation Parameters PER(x) PCE(x) Price/Book(x) Yield (%) 6.52 6.18 1.20 2.14

8.89 8.41 1.90 1.71

7.61 7.08 1.54 2.35

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EV/Net Sales(x) EV/Core EBITDA(x) EV/EBIT(x) EV/CE(x) M Cap / Sales

1.89 6.55 2.21 0.13 1.10

2.74 8.60 3.20 0.17 1.72

2.19 7.42 2.44 0.13 1.39

Growth Ratio
Core Operating Income 17.21 Growth Operating Profit Growth Net Profit Growth EPS Growth (%) 22.90 18.04 12.42 48.20 15.93

69.62 38.69 29.03

1.12 37.72 37.32

Liquidity Ratios
Total Debt/Equity(x) Current Ratio(x) Quick Ratio(x) Analysis & interpretation The ideal current ratio is 2:1 as expected but for the past 3 financial years it has been significantly below 1. There has been increase but it is negligible amount which indicates that current liabilities are more than its assets and there are serious liquidity problems in the organization. Moreover there has been overutilization of cash may be interest payments for investment undertaken from borrowed capital which could further worsens the scenario and also general operations could become stagnant. 0.06 0.22 6.12 0.07 0.23 7.30 0.06 0.25 5.53

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Debt-equity ratio measures the amount of assets financed though debt and ratio less than one indicates less risk. It can be observed from above that the amount debt raised has been significantly lower which means assets and other investments have been financed through owners funds. Consequently company is on the safer side. Bank of Baroda has its Face value as Rs 10. The DPS indicate the proportionate earnings that an investor is entitled to and higher dividend payout keep his or her confidence instill in the company. The DPS and EPS ratios are profit distributing ability ratios and earnings of shareholders will depend on earnings of company that is EPS. There has been substantial increase in EPS for past three years ranging from 83.96 in 2010 to 121.79 in 2012 and consequent increase in DPS in subsequent years. A companys price earnings ratio is calculated by dividing the previous days closing price by the adjusted EPS (earnings per share). Price earnings ratio multiplied by EPS gives you the stock price and if we look at it for the year 2012 it comes out as 794.0708 with 6.52 as PER and 121.79 as EPS and the market price for the same is 777.10. This means that company is undervalued. Quick ratio measure firms ability to discharge of its current liabilities as soon possible and it can be seen from above table that the quick ratio has been on the higher side expect for small decline in 2012 it means that there is ample amount of cash available with the firm to discharge of its current liabilities. Return on equity measures the amount of profit generated with every rupee invested by shareholders and higher the ROE would lead to higher cash availability internally. It has been the highest for the 2011 that is 24.30 and while for the current year that is 2012 it fell by 12.5% which is surely a matter of concern and also it represents inconsistency if we observe ROE for past 3 years. Moreover it also brings out the fact with respect of inefficient utilization of resources which is causing operating expenses to vary.

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BANK

PNB

SBI

YES

BOB

P/E

5.56

12.78

13.36

6.29

P/BV ROE ROCE EPS Market cap(in crores) RECOMMENDATION


1 21.1 7.21 140.4 26,437.39 Buy

1.74 15.7 6.39 170.1

2.99 23.07 10.78 27.68

1.20 21.26 7 121.79

146,149.16 14,144.72 32,155.90 Sell/Hold Hold Buy

As per P/E ratio,PNB and BOB is undervalued and SBI is overvalued meanwhile Yes bank is fairly valued Yes Bank provides the maximum ROE% and ROCE% among other banks. SBI has the maximum EPS as well as maintained a constant dps of Rs 30 and above. are trading below their fair value.and maintain the hold position in SBI and Yes Bank.

We would recommend to buy PNB and BOB at current levels.as both of the shares

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ANNEXTURE

Balance sheets and P&L accounts Balance Sheet of PNB ------------------- in Rs. Cr. -----------------Mar '12 12 mths Capital and Liabilities: Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Net Worth Deposits Borrowings Total Debt Other Liabilities Provisions Total Liabilities 339.18 339.18 0 0 26,028.37 1,449.53 27,817.08 379,588.48 37,264.27 416,852.75 & 13,524.18 458,194.01 Mar '12 12 mths Assets Cash & Balances with RBI 18,492.90 23,776.90 5,914.32 242,106.67 18,327.58 5,145.99 186,601.21 316.81 316.81 0 0 19,720.99 1,470.76 21,508.56 312,898.73 31,589.69 344,488.42 12,328.27 378,325.25 Mar '11 12 mths 315.3 315.3 0 0 15,915.63 1,491.99 17,722.92 249,329.80 19,262.37 268,592.17 10,317.69 296,632.78 Mar '10 12 mths Mar '11 12 mths Mar '10 12 mths

Balance with Banks, Money 10,335.14 at Call Advances 28 | P a g e 293,774.76

Investments Gross Block Accumulated Depreciation Net Block Capital Work In Progress Other Assets Total Assets Contingent Liabilities Bills for collection Book Value (Rs)

122,629.47 5,265.08 2,096.22 3,168.86 0 9,792.88 458,194.01 173,768.84 50,981.22 777.39

95,162.35 4,981.60 1,876.01 3,105.59 0 8,259.42 378,325.25 101,465.73 37,449.53 632.48

77,724.47 4,215.21 1,701.74 2,513.47 0 6,320.07 296,632.79 68,124.47 33,215.78 514.77

PROFIT AND LOSS STATEMENT OF PNB Punjab National Bank Profit & Loss account Previous Years ------------------- in Rs. Cr. -----------------Mar '12 12 mths Income Interest Earned Other Income Total Income Expenditure Interest expended Employee Cost Selling and Admin Expenses Depreciation Miscellaneous Expenses 23,013.59 4,723.48 3,353.59 292.26 4,363.51 15,179.14 4,461.10 2,813.45 255.85 3,456.02 12,944.02 3,121.14 1,701.46 222.83 3,137.42 36,428.03 4,202.60 40,630.63 26,986.48 3,612.58 30,599.06 21,466.91 3,565.31 25,032.22 Mar '11 12 mths Mar '10 12 mths

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Preoperative ExpCapitalised Operating Expenses Provisions & Contingencies Total Expenses

0.00 9,405.85 3,326.99 35,746.43 Mar '12 12 mths

0.00 8,367.96 2,618.46 26,165.56 Mar '11 12 mths 4,433.50 0.00 0.00 4,433.50 0.00 696.99 113.07

0.00 5,761.36 2,421.49 21,126.87 Mar '10 12 mths 3,905.36 0.00 7.64 3,913.00 0.00 693.67 116.43

Net Profit for the Year Extraordionary Items Profit brought forward Total Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) Appropriations Transfer to Statutory Reserves Transfer to Other Reserves

4,884.20 7.88 0.00 4,892.08 0.00 746.19 121.05

144.00 220.00 777.39

139.94 220.00 632.48

123.86 220.00 514.77

1,390.32 2,634.53

1,258.39 2,365.05 810.06 0 4,433.50

1,532.46 1,570.44 810.1 0 3,913.00

Proposed Dividend/Transfer to 867.24 Govt Balance c/f to Balance Sheet Total 0 4,892.09

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BALANCE SHEET AND PROFIT AND LOSS ACCOUNT OF SBI BALANCE SHEET Mar '12 12 mths Capital and Liabilities: Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Net Worth Deposits Borrowings Total Debt Other Liabilities Provisions Total Liabilities 671.04 671.04 0.00 0.00 83,280.16 0.00 83,951.20 635 635.00 0.00 0.00 64,351.04 0.00 64,986.04 634.88 634.88 0.00 0.00 65,314.32 0.00 65,949.20 804,116.23 103,011.60 Mar '11 12 mths Mar '10 12 mths

1,043,647.36 933,932.81 127,005.57 119,568.96

1,170,652.93 1,053,501.77 907,127.83 & 80,915.09 105,248.39 80,336.70

1,335,519.22 1,223,736.20 1,053,413.73 Mar '12 12 mths Mar '11 12 mths Mar '10 12 mths

Assets Cash & Balances with RBI 54,075.94 94,395.50 28,478.65 756,719.45 295,600.57 13,189.28 8,757.33 4,431.95 61,290.87 34,892.98 631,914.15 285,790.07 11,831.63 7,713.90 4,117.73

Balance with Banks, Money 43,087.23 at Call Advances Investments Gross Block Accumulated Depreciation Net Block 31 | P a g e 867,578.89 312,197.61 14,792.33 9,658.46 5,133.87

Capital Work In Progress Other Assets Total Assets Contingent Liabilities Bills for collection Book Value (Rs)

332.68 53,113.02

332.23 43,777.85

295.18 35,112.76

1,335,519.24 1,223,736.20 1,053,413.74 698,064.74 201,500.44 1,251.05 585,294.50 205,092.29 1,023.40 429,917.37 166,449.04 1,038.76

Profit & Loss account of State ------------------- in Rs. Cr. ---------------Bank of India --Mar '12 12 mths Income Interest Earned Other Income Total Income Expenditure Interest expended Employee Cost Selling and Admin Expenses Depreciation Miscellaneous Expenses Preoperative ExpCapitalised Operating Expenses Provisions & Contingencies Total Expenses 63,230.37 16,974.04 15,625.18 1,007.17 12,350.13 0.00 37,563.09 8,393.43 109,186.89 Mar '12 48,867.96 14,480.17 12,141.19 990.50 12,479.30 0.00 31,430.88 8,660.28 88,959.12 Mar '11 47,322.48 12,754.65 7,898.23 932.66 7,888.00 0.00 24,941.01 4,532.53 76,796.02 Mar '10 106,521.45 14,351.45 120,872.90 81,394.36 14,935.09 96,329.45 70,993.92 14,968.15 85,962.07 Mar '11 12 mths Mar '10 12 mths

32 | P a g e

12 mths Net Profit for the Year Extraordionary Items Profit brought forward Total Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualized) Earnings Per Share (Rs) Equity Dividend (%) Book Value (Rs) Appropriations Transfer to Statutory Reserves Transfer to Other Reserves 3,531.35 5,536.50 174.15 350.00 1,251.05 11,686.01 21.28 6.05 11,713.34 0.00 2,348.66 296.49

12 mths 7,370.35 0.00 0.34 7,370.69 0.00 1,905.00 246.52

12 mths 9,166.05 0.00 0.34 9,166.39 0.00 1,904.65 236.76

116.07 300.00 1,023.40

144.37 300.00 1,038.76

2,488.96 2,729.87 2,151.52 0.34 7,370.69

6,495.14 529.50 2,141.41 0.34 9,166.39

Proposed Dividend/Transfer to 2,645.15 Govt Balance c/f to Balance Sheet Total 0.34 11,713.34

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P&L STATEMENTS AND BALANCE SHEET OF YES BANK Profit & Loss account of ------------------- in Rs. Cr. ------------------Yes Bank March '12 Income Interest Earned Other Income Total Income Expenditure Interest expended Employee Cost Selling and Admin Expenses Depreciation Miscellaneous Expenses Preoperative Exp Capitalised Operating Expenses Provisions & Contingencies Total Expenses 4,691.72 2,794.82 475.15 203.03 40.82 776.76 0.00 944.10 551.66 362.34 185.25 34.84 560.64 0.00 719.08 423.99 1,581.76 256.89 182.76 30.26 415.84 0.00 587.76 297.99 2,467.51 Mar '10 12 mths 477.74 0.00 405.78 6,307.36 4,041.75 857.12 623.27 2,369.71 575.53 2,945.24

March '11

March '10

7,164.48 4,665.02

6,187.48 3,937.89 Mar '12 Mar '11 12 mths 12 mths

Net Profit for the Year Extraordinary Items Profit brought forward 34 | P a g e

977.00 0.04

727.14 -0.04

1,115.06 672.95

Total Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) Appropriations Transfer to Statutory Reserves Transfer to Other Reserves Proposed Dividend/Transfer to Govt Balance c/f to Balance Sheet Total

2,092.10 1,400.05 0.00 141.20 22.91 0.00 86.79 14.41

883.52 0.00 50.95 8.66

27.68 40.00 132.49

20.95 25.00 109.29

14.06 15.00 90.96

269.61 -0.01 164.11

183.79 0.00 101.20

150.95 0.00 59.61 672.95 883.51

1,658.39 1,115.06 2,092.10 1,400.05

BALANCE SHEET OF March '12 March '11 YES BANK Capital and Liabilities: Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves 35 | P a g e 352.99 352.99 0.00 0.00 4,323.65 0.00 347.15 347.15 0.00 0.00 3,446.93 0.00 339.67 339.67 0.00 0.00 2,749.88 0.00 March '10

Net Worth Deposits Borrowings Total Debt Other Liabilities & Provisions Total Liabilities

4,676.64

3,794.08

3,089.55 26,798.57 4,749.08 31,547.65 1,745.32 36,382.52 Mar '10 12 mths

49,151.71 45,938.93 14,156.49 6,690.91 63,308.20 52,629.84 5,677.28 2,583.07

73,662.12 59,006.99 Mar '12 12 mths Mar '11 12 mths

Assets Cash & Balances with RBI Balance with Banks, Money at Call Advances Investments Gross Block Accumulated Depreciation Net Block Capital Work In Progress Other Assets Total Assets Contingent Liabilities Bills for collection Book Value (Rs) 2,332.54 1,253.00 3,076.02 419.96 1,995.31 677.94 22,193.12 10,209.94 206.40 92.32 114.08 1.38 1,190.73 36,382.50 101,835.50 4,105.86 90.96

37,988.64 34,363.64 27,757.35 18,828.84 331.05 161.98 169.07 8.04 4,153.48 255.30 125.78 129.52 2.91 2,186.11

73,662.12 59,007.00 150,977.7 128,259.99 0 10,851.42 8,135.54 132.49 109.29

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37 | P a g e

Balance Sheet of BOB

------------------- In Rs. crore. -----------------Mar '12 12 mths Mar '11 12 mths Mar '10 12 mths

Capital and Liabilities: Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Net Worth Deposits Borrowings Total Debt Other Liabilities Provisions Total Liabilities 412.38 412.38 0 0 27,064.47 0.00 27,476.85 384,871.11 27,573.05 408,444.16 & 11,400.46 447,321.47 Mar '12 12 mths Assets Cash & Balances with BOB 21,651.46 19,868.18 30,065.89 13,539.97 21,927.09 175,035.29
61,182.38 4,266.60 1,981.84

392.81 392.81 0 0 20,600.30 0.00 20,993.11 305,439.48 22,307.85 327,747.33 9,656.73 358,397.17 Mar '11 12 mths

365.53 365.53 0 0 14,740.86 0.00 15,106.39 241,044.26 13,350.09 254,394.35 8,815.97 278,316.71 Mar '10 12 mths

Balance with Banks, Money 42,517.08 at Call Advances Investments Gross Block Accumulated Depreciation

287,377.29 228,676.36
83,209.40 4,921.59 2,580.09 71,260.63 4,548.16 2,248.44

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Net Block Capital Work In Progress Other Assets Total Assets

2,341.50

2,299.72

2,284.76

0
10,224.73 447,321.46

0
6,226.40 358,397.18

0
4,347.22 278,316.71

Contingent Liabilities Bills for collection Book Value (Rs)

134,552.25 40,717.28 668.34

112,272.64 33,735.67 536.16

77,997.01 27,949.60 414.71

PROFIT AND LOSS STATEMENT OF BOB BANK OF BARODA Profit & Loss account Previous Years ------------------- in Rs. Cr. -----------------Mar '12 12 mths Income Interest Earned Other Income Total Income Expenditure Interest expended Employee Cost Selling Expenses and 19,356.71 2,985.58 Admin 2,589.44 276.57 2,880.80 13,083.66 2,916.78 1,885.00 243.04 2,324.94 10,758.86 2,350.88 1,627.56 230.86 1,478.21 29,673.72 3,422.33 33,096.05 21,885.92 2,809.19 24,695.11 16,698.34 2,806.36 19,504.70 Mar '11 12 mths Mar '10 12 mths

Depreciation Miscellaneous Expenses

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Preoperative Capitalised Operating Expenses

Exp 0.00 6,727.59 2,004.80 28,089.10 Mar '12 12 mths

0.00 5,669.88 1,699.88 20,453.42 Mar '11 12 mths 4,241.68 0.00 0.00 4,241.68 0.00 753.35 0.00

0.00 4,711.23 976.28 16,446.37 Mar '10 12 mths 3,058.33 0.00 0.00 3,058.33 0.00 639.26 0.00

Provisions & Contingencies Total Expenses

Net Profit for the Year Extraordinary Items Profit brought forward Total Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Earnings Per Share (Rs) Equity Dividend (%) Book Value (Rs) Appropriations Transfer Reserves to

5,006.96 0.00 0.00 5,006.96 0.00 812.29 0.00

121.79 170.00 668.34

108.33 165.00 536.16

83.96 150.00 414.71

Statutory 1,740.81 2,453.86

1,387.87 2,100.46 753.53 0 4,241.68

1,162.07 1,257.00 639.26 0 3,058.33

Transfer to Other Reserves

Proposed Dividend/Transfer 812.29 to Govt Balance Sheet Total c/f to Balance 0 5,006.96

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