TITLE OF THE PROJECT

ASTUDY ON STOCK MARKET

PERFORMANCE OF SELECTED PUBLICK SECTOR BANKS WITH REFERENCE TRUSTLINE SECURITEY LTD.

INTRODUCTION
The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association (IBA) and top 20 banks like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well defined under three separate heads with one page dedicated to each bank. The first deals with the history part since the dawn of banking system in India. Government took major step in the 1969 to put the banking sector into systems and it nationalized 14 private banks in the mentioned year. This has been elaborated in Nationalization Banks in India. The last but not the least explains about the scheduled and unscheduled banks in India. Section 42 (6) (a) of RBI Act 1934 lays down the condition of scheduled commercial banks.

TYPES OF BANKS

The Reserve Bank of India (RBI) is India central banking institution, which controls the monetary policy of the Indian rupee. It was established on 1 April 1935 during the British Raj in accordance with the provisions of the Reserve Bank of India Act, 1934. The share capital was divided into shares of 100 each fully paid which was entirely owned by private shareholders in the beginning. Following India's independence in 1947, the RBI was nationalized in the year 1949.

INDUSTRY PROFILE
The securities contract (Regulation) Act, 1956 (SCRA) defines Stock Exchange as any body of individuals, whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities. Stock exchange could be a regional stock exchange whose area of operation/jurisdiction is specified at the time of its recognition or national exchanges, which are permitted to have nationwide trading since inception. NSE was incorporation as National Stock Exchange.

Securities trading corporation of India ltd. (STCI):

FINANCIAL MARKET:

According to institutional basis again classified into two types: They are: 1.Money markets (short-term) 2.Capital markets (long-term)

STOCK MARKETS IN INDIA

Definition of a stock exchange: Stock exchange means any body or individuals whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities. The securities include: Shares of public company. Government securities Bonds.

COMPANY PROFILE

About Trust Line: Trust line securities limited is a stock brokarised company. It is one of the fastest growing financial services organization, established in the year 1989.

The code of this organization ISO 9001:2008 Trust line has effective membership in several sectors like (equity & F and O, NSE, NSEF, BSE, BSEF, DSE) equity shares and preference shares, commodities (MCX, NCDEX, NMCEIL), currency (NSE, MCX-SX currency), depository (CDSL, NSDL).

The grate personalities Dr. Muksesh Kansal and Mrs. Sarika Kansal are the promoters of the trust line and Dr. Mukesh Kansal is the chairman and managing director of the trust line And another personality Mrs. Sarika Kansal is the director of the trust line. Trust line head office is located in Noida, New Delhi.

Vision
To provide world class investment solutions and opportunities to the investing public and the corporate who believe in India as a story whose time has come, and to empower them through modern technology. To provide the most attractive and ethical Investment Solutions guided by values driven approach to growth, efficient and fair client service and welfare of employees.

MISSON
To empower individual investors to take control of their financial matters by investing in the securities markets, to free them from the high costs and conflicts of traditional stock broking firms and to enable them to participate in the economic growth of India.

Products of trust line:

Trust line securities limited has introduced several Products to the customers with an advanced technology The products are following below Equity and derivative Commodities trading Currency trading Depository services Research and analysis Mutual funds, insurance Institutional channels Investment advisory services

ACHIEVEMENTS

Research Methodology:

Need for the Study:

Stock market is one of the investment avenues which provides usually high returns, and banking sector stocks have always been one among the best stocks to invest. So, this study would help in analyzing and understanding the performance level of few of the stocks in this particular sector.

OBJECTIVES OF THE STUDY

1. To compare the stock market performance of the selected banks (i.e Andhra Bank,Sbin,PNB Union bank,BOB & UBI) with Nifty during 20092013 2. To understand the risk involved in the selected Banks &Nifty during 2009-13 3. To know the dividend declarations of the selected banks during 2009-13.

Data collection & process

PRIMARY DATA:

It is collected from the interaction with dealers and managers who shared their past experiences about the performance of banking sector stocks in the Stock Market. It is collected from the interactions with analysts in the company during the live trading sessions about the banking sector stocks' price changes.

SECONDARY DATA: It is collected from the company websites, old records, magazines &textbooks. Some websites are: WWW.NSEINDIA.COM WWW.MONEYCONTROL.COM WWW.RBI.GOV.IN

HISTORY OF BANKS
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 state-owned corporation with its headquarters in Mumbai, Maharashtra. As of March 2012, it had assets of US$360 billion and 14,119 branches, including 173 foreign offices in 37 countries across the globe. Including the branches that belong to its associate banks, SBI has 21,500 branches.

Union Bank of India

Union Bank of India (UBI) (BSE: 532477) is one of India's largest public sector banks (the government owns 55.43% of its share capital remains public, private organizations and foreign companies), is listed on the Forbes 2000. It has assets of USD 13.45 billion and all the bank's branches have been networked with its 4129 ATMs. Its online Telebanking facility are available to all its Core Banking Customers - individual as well as corporate. It has representative offices in Abu Dhabi, United Arab Emirates, Beijing, Peoples Republic of China, London, Shanghai, and Sydney, and a branch in Hong Kong.

Bank of Baroda
(BSE: 532134) (Hindi: ) is the highest profitmaking public sector undertaking (PSU) bank in India and the second largest PSU bank in terms of number of total business in India. Based in Vadodara, India,it is the country's first largest public sector lender in terms of annual profit.[4][5][5][6] BoB is ranked 715 on Forbes Global 2000 list. BoB has total assets in excess of Rs. 3.58 lakh crores, or Rs. 3,583 billion, a network of 4007 branches (out of which 3914 branches[7] are in India) and offices, and over 2000 ATMs. It plans to open 400 new branches in the coming year

Andhra Bank
Telugu: ) (BSE: 532418) is a medium-sized public sector bank (PSB), with a network of 1,712 branches, 15 extension counters, 38 satellite offices and 1056 automated teller machines (ATMs) as on March 31, 2012. Andhra Bank was founded by the eminent freedom fighter, Dr. Bhogaraju Pattabhi Sitaramayya. The Government of India owns 51.55% of its share capital and is going to increase it to 58% by infusing 1100 crore.[2] The state owned Life Insurance Corporation of India holds 10% of the shares.[3] The bank has done a total business of Rs. 1,90,535 crore as on 31.03.2012.

Punjab National Bank

(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.

Performance of the banks

Banks Industry founded Key people

SBI

Financial services

1955

PRATIP CHAUDHURI

PNB

Financial services

1895

K.R. KAMATH

UBI

Financial services

1919

D.SARKAR

BOB

Financial services

1908

M.D. MALLYA

ANDB

Financial services

1923

B.A. PRABHAKAR

7 STOCK MARKET PERFORMANCE OF 5 BANKS&NIFTY DURING 2009-2013

MONTH Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 UBI 16.25 25.95 23.52 -3.74 -8.63 11.05 9.27 7.72 -5.32 -1.65 1.56 13.29 5.45 -5.52 5.61 1.81 2.17 16.96 3.31 -8.46 -0.87 -6.06 -5.87 10.23 40.66 -25.31 -2.35 13.44 -12.89 1.1 5.96 6.08 -17.53 23.62 17.21 24.37 BOB 42.09 33.01 -0.34 -3.76 -2.29 10.99 6.95 6.67 -4.24 13.83 1.31 8.33 7.81 3.26 -0.51 8.9 6.6 8.25 16.22 -8.29 -6 -3.08 -0.48 9.65 -4.54 -4.54 0.96 0.08 -18 4.42 3.35 -9.19 -7.59 12.48 8.06 -1.03 PNB 15.92 35.67 -0.97 5.82 -1.52 16.44 6.64 8.01 0.68 -0.15 1.8 11.78 2.49 0.25 5.42 2.43 9.48 8.67 -0.36 -6.47 0.16 -10.57 -4.41 13.86 -2.46 -7.2 -1.02 2.73 -18.17 2.36 4.22 -9.64 -13.72 19.9 1.41 -3.23 ANDB 22.35 68.98 -14.26 12.49 -3.29 17.13 6.41 1.95 -9.69 2.06 -6.55 7.71 21.98 4.12 -4.76 8.85 5.05 4.37 10.58 -11.74 -7.14 -7.51 -3.75 9.96 -7.94 3.46 -6.18 13.51 -3.91 -5.53 -2.62 -15.12 -21.23 25.72 28.2 -8.34 SBI 18.81 41.01 -14.43 4.65 -4.23 24.64 -0.02 2.4 1.02 -9.6 -8.08 4.4 10.61 -0.92 2.26 9.24 9.77 16.77 -2.74 -6.34 -8.31 -6.71 -0.83 4.07 1.42 -18.22 4.15 -3.04 -16.54 4.01 1.22 -6.87 -10.84 26.55 9.58 -6.15 NIFTY 14.88 27.89 -3.57 8.01 0.61 9.04 -7.38 6.8 3.2 -6.13 0.82 6.35 0.54 -3.63 4.44 1.04 0.61 11.6 -0.2 -3.76 4.48 -10.87 -3.68 8.39 -1.46 -3.58 1.55 -3.92 -9.52 -3.25 9.27 -8.45 -6.97 12.04 3.59 -1.31

N E T 40 60 80

R E 20 T U R N S 0

-40 MONTHS Apr/09 May/09 Jun/09 Jul/09 Aug/09 Sep/09 Oct/09 Nov/09 Dec/09 Jan/10 Feb/10 Mar/10 Apr/10 May/10 Jun/10 Jul/10 Aug/10 Sep/10 Oct/10 Nov/10 Dec/10 Jan/11 Feb/11 Mar/11 Apr/11 May/11 Jun/11 Jul/11 Aug/11 Sep/11 Oct/11 Nov/11 Dec/11 Jan/12 Feb/12 Mar/12

-20

GRAPH 1.7 OF NET RETURNS DURING 2009-13

SBI

UBI

PNB

BOB

ANDB

NIFTY

INTERPRETATION:

To compare 5 public sector banks SBI,PNB,BOB,UBI,ANDB during 2009-13 the average net Returns are 2.02%,3.43%,3.87%,5.06%,3.77%respectively so UBI is the best performed stock . Selected 5 banks when compared with Nifty all banks are performed better than nifty during 2009-13 FY 2009-10 among the 5 banks Bank of baroda is the best performed stock it given 10.26% and PNB 8.34%,ANDB 8.83% ,SBI 5.04%,UBI 7.44%. FY 2010-11 among the 5 public sector banks again BOB is the best performance stock it given 3.52% and PNB 1.74%,andb 2.50%,SBI 2.23%,UBI 1.56. FY 2011-12 most of the banks are in negative net returns ,the best performed stock is UBI it given 6.19% and PNB -2.06%,ANDB 0.0065%,BOB -1.29%, SBI 1.22%. During 2009-10 Nifty is also performed well. It gives 5.04% average net returns it is equal to SBI returns During 2010-11 Nifty is sown low performance when compare to banks it yields 0.74% only. FY 2011-12 Nifty is given negative returns of -1.0% in this year most of the public sector banks are also in negative returns. Finally all the five public sector banks are performed well during 2009-12 and banks are better than Nifty performance.

FINDINGS:

To compare 5 public sector banks SBI,PNB,BOB,UBI,ANDB during 2009-13 the average returns are 2.02%,3.43%,3.87%,5.06%,3.77%respectively so UBI is the best performed stock . Selected 5 banks when compared with Nifty all banks are performed better than nifty during 2009-13 FY 2009-10 among the 5 banks Bank of Baroda is the best performed stock it given 10.26% and PNB 8.34%,ANDB 8.83% ,SBI 5.04%,UBI 7.44%. FY 2010-11 among the 5 public sector banks again BOB is the best performance stock it given 3.52% and PNB 1.74%,andb 2.50%,SBI 2.23%,UBI 1.56. FY 2011-12 most of the banks are in negative net returns ,the best performed stock is UBI it given 6.19% and PNB -2.06%,ANDB 0.0065%,BOB -1.29%, SBI -1.22%. During 2009-10 Nifty is also performed well. It gives 5.04% average net returns it is equal to SBI returns During 2010-11 Nifty is shown low performance when compare to banks it yields 0.74% only. 8.FY 2011-12 Nifty is given negative returns of -1.0% in this year most of the public sector banks are also in negative returns. 9. FY 2012-2013 in this banking sector performed well in compared to nifty index value 10. Finally all the five public sector banks are performed well during 2009-13 and banks are better than Nifty performance. 10.By analyzing the risk UBI is having low risk that is 3.09 and SBI 3.13 ,ANDB 4.54,NIFTY 4.98,PNB 5.17,BOB 5.80 during 2009-12 11.Dividend issues during 2009-10 are SBI issued 290% in 11-05-09,PNB issued 200% in20-05-09,BOB issued 90% dividend in 27-04-09,ANDB issued 45% in 08-05-09,UBI does not issue . 12.Dividend issues during 2010-11 are SBI issued 200% in 11-05-10,PNB issued 120% in 06-05-10,BOB Issued 150% in 28-06-10 ,ANDB issued 50% in 29-04-10 UBI issued 20% in 04-05-10. 13.Dividend issues during 2011-12 are SBI issued 300% in 11-05-11,PNB issued 220% in 04-05-11, BOB issued 165% in 23-06-11,ANDB ISSUED 55% IN05-05- 11,UBI issued 22% in 29-04-11. 14. Dividend issues during 2012-13 are SBI issued 300% in 11-05-11,PNB issued 220% in 04-05-11,

SUGGESTIONS

All the 5 public sector banks are performed well during 2009-13 .So investment in public sector banks will reduce the risk and gives good returns. In the 5 selected banks UBI is the best option for long term investment it given 5.06% of returns. Bank of Baroda is the best stock for investment during 2009-10 and 2010-11. UBI and SBI is the best performed stock in 2011-12 and 2012-2013 . Even the remaining banks are in negative it given 6.19% of positive returns. So it is best for investment. UBI,SBI are the best stocks for the investors who want to take less risk with good returns because this two banks are having low risk . Net profit margin of the banks are good but in that BOB is having very good net profit margin that is 15.37,15.23,17.18 respectively.

CONCLUSION:

From the study of 5 public sector banks during 2009-13 the banking sector is performed well UBI,BOB are performed very well when compared to SBI ,ANDB,PNB but all the banks are better than Nifty . And when compared with the risk UBI &SBI are having low risk that is 3.09,3.13 respectively ,and also other banks are having below 6% risk so banking sector is the best option for investors to reduce the risk. If we observe the dividend issues SBI&PNB are given very good returns so the total performance of the banking sector is good for the investors.