EXECUTIVE SUMMERY

The study is about analysis of volatility of shares in banking sector by using fundamental and
technical analysis. The technical analysis shows the turning points, which shows future value when to
buy or sell the stock. This paper helps to know which bank ‘performs better performance compared to
other banks based on the price fluctuation by using technical analysis’. The Indian economy, but also for
the entire world economy lots of investors have lost their money as the stock prices have fallen flat all
over the world during this period. The banking sector has always been one of the important sectors for
investment. In the time of uncertainty, when some are arguing that the economies are in the process of
recovery, and while others are says that the world is set for another economical transaction soon, the
present article attempted to study the fundamentals of the banking sector in India.

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 INTRODUCTION
CHAPTER 1

1.1 INTRODUCTION TO STUDY

Investment decision is a part of our economic life. Everyone takes such decision at different
context. Investment decision are to make in a systematic manner with two approaches required such as
technical analysis and fundamental analysis. The study aims to analysis the fundamental and technical
analysis of Bombay Stock Exchange listed banking company in India with a sample size of 10 company
for a periods from 2016 to 2020. The objectives of the study are to conduct Fundamental analysis for
Bombay Stock Exchange listed banking company and the Strength, Weakness, Opportunity, and Threats
(SWOT) analysis for the banking sector. The Economic, Industry and company analysis have been made
to attain the objectives of the study. From the Economic analysis, it is found that Gross National Product
(GNP), Inflation, Interest rates, Exchange rate, Foreign exchange rates, Agricultural production,
Government Receipts and Expenditure has a positive growth rate during the study periods. Gross
Domestic Product, Gross Domestic Capital Formation, Gross Domestic Savings and Balance of
Payments have a negative growth rate during the study period.

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1.2 Industry Profile
1.2.1 Stock market
The stock market refers to the collection of markets and exchanges where regular activities of
buying, selling, and issuance of shares of publicly-held companies take place. It is an equity trading
venue which already exiting or pre issued securities are traded among investors.

It is the market for long term securities like bonds, equity stocks and preferred stocks is divided
into primary market and secondary market. Primary market deals with the new issues of securities.
Outstanding securities are traded in the secondary market, which is commonly known as Stock market or
Stock exchange. In the secondary market, the investor can sell or buy securities. Stock market is also deal
in the equity share. The health of the economy is reflected by the growth of the stock market. Stock
broking is a growing industry in India. It is one of the main reason that Indian economy is one of the
strongest in the world. It is also the main reason of both foreign and domestic investor are interested in
investing in Indian stock market.

FUNCTIONS OF STOCK MARKET

The stock market occupies a pivotal position in the financial system. It performs several
economic functions and renders valuable services to the economy as a whole. They may be summarized
as below:

1. Liquidity and marketability.

2. Safety of funds.

3. Supply of long-term funds.

4. Flow of capital to profitable ventures.

5. Motivation for improved performance.

6. Promotion of investments.

7. Marketing of new issues.

HISTORY OF STOCK EXCHANGES IN INDIA

The first organized stock exchange in India was started in 1875 at Bombay and it is stated to be
the oldest in Asia. In 1894 the Ahmadabad Stock Exchange was started. It was to facilitate dealings in
the shares of textile mills there. The Calcutta stock exchange was started in 1908 to provide a market for
shares of plantations and jute mills. Then the madras stock exchange was started in 1920. At present
there are 24 stock exchanges in the country, 21 of them being regional ones with allotted areas. Two
others set up in the reform era, viz., the National Stock Exchange (NSE) and Over the Counter Exchange
of India (OICEI), have mandate to have nation-wise trading. They are located at Ahemdabad, Vadodara,
Bangalore, Bhubaneswar, Mumbai, Kolkata, Kochi, Coimbatore, Delhi, Guwahati, Hyderabad, Indore,
Jaipur’ Kanpur, Ludhiana, Chennai Mangalore, Meerut, Patna, Pune, Rajkot .The Stock Exchanges are
being administered by their governing boards and executive chiefs. Policies relating to their regulation
and control are laid down by the Ministry of Finance. Government also Constituted Securities and
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Exchange Board of India (SEBI) in April 1988 for orderly development and regulation of securities
industry and stock exchanges.

MAJOR PARTICIPANTS IN THE INDIAN STOCK MARKET

There are 23 stock exchanges in India. Among them, two are national level stock exchanges i.e.
BSE and NSE. The rest 21 stock exchanges are regional stock exchange (RSE).

BOMBAY STOCK EXCHANGE

IT IS the oldest stock exchange in Asia. It is 10 th largest stock exchange in the world in terms of
market capitalization. It’s turnover USD. 2.2 trillion As on April 2018. It is 7 th largest stock exchange in
the world in terms of trades in equity shares. The BSE formerly known as Bombay stock exchange ltd, is
an Indian stock exchange located at dalal street Mumbai. It was establishes in 1875. It is also known as
stock brokers’ association.

Type: Stock exchange

Location: Mumbai, Maharashtra, India

Founded: 1875

Owner: BSE Limited

Key people Ashish Kumar Chauhan (MD & CEO)

Currency: Indian rupee (₹)

Market cap: US$ 2.2 trillion (April 2018)

Indices: BSE SENSEX

BSE Small Cap

BSE Mid-Cap

BSE 500

Website:www.bseindia.com

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NATIONAL STOCK EXCHANGE (NSE)
The National Stock Exchange of India Limited (NSE) is the leading stock exchange of India,
located in Mumbai. NSE was established in 1992 as the first demutualized electronic exchange in the
country. National stock exchange has a total market capitalization of more than USD. 2.27 trillion,
making it the world’s 11th largest stock exchange as of April 2018. NSE was set up by a group of leading
Indian financial institutions at the behest of the Government of India to bring transparency to the Indian
capital market.

Type-Stock exchange

Location-Mumbai, India

Founded-1992

Owner-National Stock Exchange of India Limited

Key people-Garish Chandra Chaturvedi(Chairman)

Vikram Limaye(MD & CEO)

Currency-Indian rupee (₹)

No. of listings-1,952[1]

Market cap-US$2.27 trillion (April 2018) [1]

Volume-₹28,692 billion (US$400 billion) (June 2014)

Indices-NIFTY 50, NIFTY Next 50, NIFTY 500

Website- www.nseindia.com

REGIONAL STOCK EXCHANGES (RSE)

1. Ahmedabad Stock Exchange

2. Bangalore Stock Exchange

3. Bhubaneswar Stock Exchange

4. Calcutta Stock Exchange

5. Cochin Stock Exchange

6. Coimbatore Stock Exchange

7. Delhi Stock Exchange

8. Guwahati Stock Exchange

9. Hyderabad Stock Exchange

10. Jaipur Stock Exchange

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11. Kanara Stock Exchange

12. Ludhiana Stock Exchange

13. Madras Stock Exchange

14. Madhya Pradesh Exchange

15. Magadh Stock Exchange

16. Meerut Stock Exchange

17. OTC Exchange of India

18. Pune Stock Exchange

19. Saurashtra Kutch Stock Exchange

20. Uttar Pradesh Exchange

21. Vadodara Stock Exchange

The Regional Stock Exchanges started from the year 1894, when the first RSE, the Ahmedabad
Stock Exchange (ASE) was established. In the year 1908, the second in the series, Calcutta Stock
Exchange (CSE) came into existence. During the early sixties, there were only few recognized RSE in
India namely Calcutta, Madras, Ahmedabad, Delhi, Hyderabad, and Indore. The number remained
unchanged for the next two decades. 1980s was the turning point and many RSEs were incorporated. The
latest is Coimbatore Stock Exchange and Meerut Stock Exchange.

1.2.2 Indian banking sector

All the modem economies are money economies. The process of growth and expansion of banking
sector has been evolutionary in nature. For a common man, a bank means a storehouse or lumber room of
money; for a businessman it is an institution of finance and for a worker it may be a depositary for his
savings.

Etymologically, the word ‘bank' is derived from the Greek word ‘banque' or the Italian word ‘banco'
both meaning - a bench at which money-lenders and money- changers used to display their coins and
transact business in the market place.

Definition of Bank:

"A bank is defined as one which transacts the business of banking which means accepting. For the
purpose of lending or investment, of deposits of money from the public, repayable on demand or
otherwise and withdrawals by cheque, draft, order, or otherwise. "- The Banking Companies Act, 1949.

Scope of banking sector

Banking sector is regarded as an indispensable part of the economy of every country. It is always
been one of the most vital sector for the economy to function as there is a significant increase in the

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volume of financial transactions. Some of the factors that contributed to it include economic growth, an
increase in money supply, growth of banking habits, an increase in trade and commerce etc. In short,
scope of banking sector has been increased with time in India.

Banking activities in our economy has become so imperative that even a temporary halt due to
demonetization has left the general public, trade, commerce, and industry seriously affected. Till 2015,
rural India was somewhat an untapped part of the banking industry. Under the leadership of PM Sh.
Narendra Modi, RBI and Government of India came out with the proposal of Financial Inclusion and
implemented it successfully and judiciously.

Private sector banks in India represent part of the Indian banking sector. Private sector banks are
those banks where large part of equity is held by private shareholder and not by Govt. of India. Banking
in India has been dominated by public sector banks since 1969, as all major banks were nationalized by
Govt. of India. Post liberalization in Banking policy in 1990, private sector banks re-emerged as they
have grown faster using the latest technology providing exceptional customer services.

Presently, there are 25 private sector banks operating in India. In 2015, RBI & GOI has issued license
to 2 new banks, 10 small finance banks, and 10 payment banks. IDFC, Bandhan Bank, Equities have
started operations whereas others will start functioning in FY 2017-18.

The banking sector is considered as the backbone of the Indian economy. It has become the most
exciting industry in the present times as it offers respectable and secure career opportunities to job
seekers and students.

Bank name
I take this bank for this project

1. HDFC Bank
2. State Bank of India
3. ICICI Bank
4. Axis Bank
5. Kotak Mahindra Bank
6. Indusland Bank
7. Yes Bank
8. Punjab National Bank
9. Bank Of Baroda
10. Bank Of India

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1.3 Company Profile
1.3.1 Company overview

ODISHA CAPITAL MARKET & ENTERPRISES LTD.

(Formerly Bhubaneswar Stock Exchange Ltd.)

Background
Bhubaneswar Stock Exchange Ltd. (BSE) which had been functioning as a recognized stock
exchange in the State of Odisha since the year 1989, has taken exit as a stock exchange w.e.f. February
09, 2015 pursuant to exit policy of Securities and Exchange Board of India (SEBI) for non-performing
stock exchanges in the country. In this context, SEBI has issued an order on February 09, 2015 for exit of
BhSE as a stock exchange after ensuring compliance of various formalities by BSE associated with such
exit process. SEBI in its said order had directed BSE, among other requirements, to change its name and
not to use the expression “Stock Exchange” or any variant of this expression in its name.

As it was required in the exit order issued by SEBI, the name of the Company has been changed
from “Bhubaneswar Stock Exchange Ltd.” to “Odisha Capital Market & Enterprises Ltd.” w.e.f. 9th
June, 2015 with the approval of the Registrar of Companies, Odisha in terms of provisions of the
Companies Act, 2013. Now, after exit of BhSE as a stock exchange, the Company of erstwhile BhSE
functions under a new name “Odisha Capital Market & Enterprises Ltd.” with an altered set of
Memorandum and Articles of Association in terms of provisions of the Companies Act, 2013.

Management
The affairs of the company are controlled and supervised by the Board of Directors under the
provisions of its Memorandum and Articles of Association. The duties and responsibilities of day to day
management and affairs of the company are now vested with Mr. Thomas Mathew, Managing,
Director, who is assisted by Mr. Debasis Samantaray, Director and a team of managerial and other
employees of the company.

Business Operation
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 Odisha Capital Market & Enterprises Ltd. in terms of its altered Memorandum of Association is
now taking steps to carry on different activities in the domain of capital market. More particularly, it is
committed to carry on campaigning financial literacy for financial inclusion in the State in addition to
working for assisting financial education as were discharged by the erstwhile BSE as a stock exchange.

Current Activities other than Business Operation

Apart from business operation, the company is engaged in promotion and development of other
activities in the interest of the investing public in capital market in a big way such as –
Investors’ Awareness Programme

The company is conducting investors’ awareness programmes by way of seminars/workshop

from time to time for education and awareness of investing public in securities. The aim of the company
is to have as many as awareness programmes in a year at different locations of the State of Orissa.
Securities Market Training Programme

The company is providing a Certificate Course, namely, “Basics of Capital Market.

With the expansion of capital market which includes the reach of its activities in the form of course
contents at various B-Schools and +2 Commerce level schools, practical oriented education programme
in securities market activities is in increasing demand now days as it promises youth to make career in
the field of securities market. The company aims at undertaking practical oriented training programmes
for the students of + Commerce and B-Schools in a big way as well as for the youths who want to make
their career in securities market. At present, the company is engaged in imparting training to the students
of various management institutes.
Students Assistance Programme

The students of various Institutes and B-Schools require preparing project papers on different
topics including the topics related to activities in Stock Exchange and securities market. The students of a
number of Institutes and B-Schools visit the company either directly or sponsored by their Institutes
every year for assistance in preparation of their project papers. The company assists and supports those
students in their research work by providing necessary guidance and securities market information.

1.3.2 SCRIP PROFILE

1) HDFC

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Incorporation year: 1994

Ownership Group: HDFC Group

Headquarter: Mumbai, Maharashtra, India

Chairman: Deepak S. Parekh

Present Head (MD): Aditya Puri

Chief Financial Officer: Srinivasan Vaidyanathan

Company introduction: Who is corporate and what it does?

HDFC Bank Limited is an Indian banking and financial services company. The Bank’s
distribution network is run through 4,715 branches and 12,260 ATMs across 2,657 cities. HDFC is a
market leader in e-commerce. It provides a series of digital offerings like - 10 second personal loan,
Chillr, PayZapp, SME Bank, Watch Banking, 30-Minute Auto Loan, 15-minute Two-Wheeler Loan, e-
payment gateways, Digital Wallet, etc. HDFC Bank provides a number of products and services which
includes wholesale banking, Retail banking, Treasury, Auto (car) Loans, Two Wheeler Loans, Personal
loans, Loan against Property and Credit Cards.

Company History
In 1994, HDFC Bank was incorporated, with its registered office in Mumbai, India. Its first
corporate office and a full service branch at Sandoz House, Worli was inaugurated by the then Union
Finance Minister, Manmohan Singh. The bank is the fi0rst of its kind to receive an in-principle approval
from the RBI for the establishment of a bank in the private sector.

Philosophy
Mission: To be a World Class Indian Bank.

The objective is to build sound customer franchises across distinct businesses so as to be the
preferred provider of banking services for target retail and wholesale customer segments, and to achieve
healthy growth in profitability, consistent with the bank’s risk appetite. HDFC Bank’s business
philosophy is based on five core values: Operational Excellence, Customer Focus, Product Leadership,
People and Sustainability.

Portfolio of Businesses, Products and Services

HDFC Group companies are HDFC Ltd., HDFC Securities., HDFC Mutual Fund, HDFC Realty, HDFC
Life, HDFC ERGO, HDFC Pension and HDB Financial Services.

2) STATE BANK OF INDIA

Incorporation year: 1806
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Headquarter: Mumbai, India

Present Head (CMD): Rajnish Kumar

Chief Financial Officer: Prashant Kumar

Company introduction: Who is corporate and what it does?

State Bank of India is an Indian multinational, public sector banking and financial services
government-owned corporation. SBI is actively involved since 1973 in non-profit activity called
Community Services Banking. SBI has 14 regional hubs and 57 Zonal Offices that are located at
important cities throughout India. It has more than 14,000 branches, 58,500 ATMs, including 191 foreign
offices spread across 36 countries. It is the largest banking and -financial services company in India by
assets. State Bank of India is a banking behemoth and has 20% market share in deposits and loans among
Indian commercial banks.

Company History
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 in 1955.
Government of India owned the Imperial Bank of India in 1955, with 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.

Philosophy

Vision:
• My SBI.

• My Customer first.

• My SBI: First in customer satisfaction

Mission:
• We will be prompt, polite and proactive with our customers.

• We will speak the language of young India.

• We will create products and services that help our customers achieve their goals.

• We will go beyond the call of duty to make our customers feel valued.

• We will be of service even in the remotest part of our country.

• We will offer excellence in services to those abroad as much as we do to those in India.

• We will imbibe state of the art technology to drive excellence.

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3) ICICI BANK LIMITED
Incorporation year: 1994

Ownership group: ICICI group

Headquarter: Mumbai, Maharashtra, India

Chairman: Girish Chandra Chaturvedi

Present Head (MD and CEO): Sandeep Bakshi

Chief Financial Officer: Rakesh Jha

Company introduction: Who is corporate and what it does?

ICICI Bank (Industrial Credit and Investment Corporation of India) is the largest private sector
bank and a multinational banking and -financial services company. ICICI Bank currently has a network
of 4,867 Branches and 14,367 ATM’s across India. The bank has branches in United States, Singapore,
Bahrain, Hong Kong, Sri Lanka, Qatar, Oman, Dubai International Finance Centre, China and South
Africa; and representative offices in United Arab Emirates, Bangladesh, Malaysia and Indonesia. The
company’s UK subsidiary has also established branches in Belgium and Germany.

Company History
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian -financial institution,
and was its wholly-owned subsidiary. ICICI’s shareholding in ICICI Bank was reduced to 46% through a
public offering of shares in India in -fiscal 1998, an equity offering in the form of ADRs listed on the
NYSE in -fiscal 2000, ICICI Bank’s acquisition of Bank of Madura Limited in an all-stock
amalgamation in -fiscal 2001, and secondary market sales by ICICI to institutional investors in -fiscal
2001 and -fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of
India and representatives of Indian industry.

Philosophy

Vision: To be the leading provider of financial services in India and a major global bank.

 Mission: ICICI will leverage our people, technology, speed and financial capital tobe the banker
of first choice for our customers by delivering high quality, world-class products and services.
 the frontiers of our business globally.
• Play a proactive role in the full realization of India’s potential.
• maintain a healthy financial profile and diversify our earnings across businesses and
geographies.
• maintain high standards of governance and ethics.
• contribute positively to the various countries and markets in which we operate.
• create value for our stakeholders.

4) AXIS BANK LIMITED

Incorporation year: 1993

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Headquarter: Mumbai, Maharashtra, India.

Present Head (MD and CEO): Mr. Amitabh Chaudhry

Non-executive Chairman: Mr. Rakesh Makheeja

Chief Financial Officer: Jairam Sridharan

Company introduction: Who is corporate and what it does?

Axis Bank is the third largest private sector bank in India. The Bank offers the entire spectrum of
-financial services to customer segments covering large and mid-corporates, Micro Small and Medium
Enterprises (MSME), Agriculture and Retail Businesses.

The overseas operations of the Bank are spread over ten international offices with branches at
Singapore, Hong Kong, Dubai (at the DIFC), Colombo and Shanghai; representative offices at Dhaka,
Dubai, Abu Dhabi, Sharjah and an overseas subsidiary in London, UK.

Company History
Axis Bank is one of the first new generation private sector banks to have begun operations in
1994. The Bank was promoted in 1993, jointly by Specified Undertaking of Unit Trust of India (SUUTI)
(then known as Unit Trust of India), Life Insurance Corporation of India (LIC), General Insurance
Corporation of India (GIC), National Insurance Company Ltd., The New India Assurance Company Ltd.,
The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The shareholding of
Unit Trust of India was subsequently transferred to SUUTI, an entity established in 2003.

Philosophy

Vision: To be the preferred financial solutions provider excelling in customer delivery through insight,
empowered employees and smart use of technology. Core Values: Customer centricity, ethics,
transparency, teamwork and ownership.

5) Kotak Mahindra Bank

Kotak Mahindra Bank is an Indian private sector bank headquartered in Mumbai, Maharashtra,
India. It offers banking products and financial services for corporate and retail customers in the areas of
personal finance, investment banking, life insurance, and wealth management. As of April 2019, it is the
second largest Indian private sector bank by market capitalization, with 1600 branches & 2519 ATMs.

Vision and mission

 To be the most trusted Global Indian Financial Services brand and the most preferred financial
services employer with focus on creating value.
 Customers must enjoy the benefits of dealing with a Global Indian Brand that best understands
their needs and delivers customized pragmatic solutions across multiple platforms.
 Type-Private Sector

Industry-Banking & Financial Sector

Founded-February 2003
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Key Person (Chairperson) - Uday Kotak

Headquarters-Mumbai – India

Asset-31 billion US dollars (2019)

6. IndusInd Bank
IndusInd Bank Limited is an Indian new generation bank in Pune, established in 1994. The bank
offers commercial, transactional and electronic banking products and services. IndusInd Bank was
inaugurated in April 1994 by then Union Finance Minister Manmohan Singh. Indusland Bank is the first
among the new-generation private banks in India.

History

Established in 1994 by Srichand P Hinduja, the name ‘IndusInd’ Bank was inspired by the Indus
Valley Civilization - one of the greatest cultural example of a combination of innovation with sound
business and trade practices. Over the years, we have grown ceaselessly and dynamically driven by a zeal
to offer our customers banking services at par with the highest quality standards in the industry.

Vision

IndusInd Bank’s vision is to…

 A relevant business and banking partner to its clients.

 Customer-responsive, striving at all times to collaborate with clients in providing solutions for
their banking needs.
 A forerunner in the marketplace in terms of profitability, productivity and efficiency.
 Engaged with all our stakeholders and will deliver sustainable and compliant returns.

Mission

We will consistently add value to all our stakeholders and emerge as India’s most convenient Bank
with Best-in-Banking financial parameters together with the doubling of our loan book, clients and
profits within the next three years.

Type-Private Sector

Industry-Banking & Financial Sector

Key Person (Chairperson) - Romesh Sobti

Asset- ₹ 178,648.41 crores (2019)

7. Yes Bank
Yes Bank Limited is an Indian Private Sector Bank headquartered in Mumbai, India and was
founded by Rana Kapoor and Ashok Kapoor in 2004. It offers wide range of banking and financial
products for corporate and retail customers through retail banking and asset management services

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Vision:
Building the Finest Quality Large Bank of the World in India

Mission
To establish a high-quality, customer-centric, service-driven, private Indian Bank catering to the ‘Future
Businesses of India’

Type-Private Sector

Industry-Banking & Financial Sector

Founded-2004

Key Person (Chairperson)- Ravneet Gill

Asset- ₹301,390 crore (US$42 billion)

8. Punjab National Bank

Punjab National Bank (PNB) is a Banking and financial service bank owned by the Government
of India with its headquarters is in New Delhi, India. The bank was founded in 1894 and is the second
largest public sector bank (PSB) in India, both in terms of business and its network.

Mission
"Creating Value for all its customers, Investors and Employees for being the first choice for all
stakeholders"

Vision
"To position PNB as the 'Most Preferred Bank for customers, the Best Place to Work In for employees
and a 'Benchmark of Excellence for the industry"

9. Bank of Baroda
Bank of Baroda (BOB) is an Indian multinational, public sector banking and financial services
company. It is the third largest public sector bank in India, with 131 million customers, a total business
of US$218 billion, and a global presence of 100 overseas offices.

History of bank
The bank was founded by the Maharaja of Baroda, Maharaja Sayajirao Gaekwad III on 20 July 1908.
The bank, along with 13 other major commercial banks of India, was nationalized on 19 July 1969, by
the Government of India and has been designated as a profit-making public sector undertaking (PSU).

Mission
To be a top ranking National Bank of International Standards committed to augmenting stake
holders' value through concern, care and competence.

Type Public Sector

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Industry Banking & Financial Sector

Founded 20 July 1908

Key Person (Chairperson) Hasmukh Adhia

HeadquartersVadodara – India

Area served India

Products- Credit cards, consumer banking, corporate banking, finance and insurance, investment
banking, mortgage loans, private banking, private equity, wealth management

Asset ₹719,999 crore (US$100 billion) (2019)

Number of Branches- 9500+

Number of ATMs- 2,130

Number of Employees 85,000

Official Website:- www.bankofbaroda.in

10.Bank of India
Bank of India (BOI) is a commercial bank with headquarters in the Bandra Kurla Complex,
Mumbai and Founded in 1906, it has been government-owned since nationalization in 1969. Bank of
India has 5316 branches as of 31 March 2019, including 56 offices outside India, which includes five
subsidiaries, five representative offices, and one joint venture. BoI is a founder member of SWIFT
(Society for Worldwide Inter Bank Financial Telecommunications), which facilitates provision of cost-
effective financial processing and communication services.

History of bank of India

Bank of India was founded on 7 September 1906 by a group of eminent businessmen from
Mumbai, Maharashtra, India. The Bank was under private ownership and control till 19 July 1969 when
it was nationalized along with 13 other banks.

Beginning with one office in Mumbai, with a paid-up capital of ₹5 million (US$70,000) and 50
employees, the Bank has made a rapid growth over the years and blossomed into a mighty institution
with a strong national presence and sizable international operations. In business volume, the Bank
occupies a premier position among the nationalized banks.

The bank has over 5,100 branches in India spread over all states and union territories including
specialized branches. These branches are controlled through 54 zonal offices. There are 60 branches, 5
subsidiaries, and 1 joint venture abroad.

The Bank came out with its maiden public issue in 1997 and follow on Qualified Institutions
Placement in February 2008.

VISION

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 "To Become the Bank of Choice for Corporate, Medium Business and up market Retail
Customers and Developmental Banking for Small Business, Mass Market and Rural Markets."

MISSION

"To provide superior, proactive banking service to niche markets globally, while providing cost
effective, responsive service to others in our role as a development bank, and in doing so, meet the
requirements of our stakeholders

Type Public Sector

Industry Financial Services

Founded 7 September 1906

Key Person (Chairperson) G. Padmanabhan (Non-Exe Chairman) Atanu Kumar Das (MD & CEO)

HeadquartersMumbai – India

Area served India

Products Commercial Banking, Retail Banking, Private Banking, Asset Management, Mortgages,
Credit Cards

Asset 6.31 lakh crores INR (US$91 billion) (2019)

Number of Branches 5100

Number of ATMs 1727

Number of Employees 48,807 (2019)

Official Website - www.bankofindia.co.in

RESEARCH PROBLEM
1.4 Research problem

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 The organization is having the problems that; when investors invest some money, he/she expects a
future return; but future is uncertain. Most of the time investor does not have perfect knowledge about

• Which stock to invest?

• What type of security to buy?

• When to sell the securities?

• Where to Invest?

• How to Invest?

• Whether hold, sell or buy securities?

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1.5 OBJECTIVES OF THE STUDY
A. OBJECTIVES OF THE STUDY –
1. To select the best performing company among the selected TEN companies.
2. To check whether fundamental analysis alone can evaluate investment opportunities in the share.
3. To know how best we can utilize these analyses to meet the financial goals.
4. To recognize the suitability of the shares for investment in long term.
5.

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1.6. RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It may understood as a
science of studying how research is done scientifically. It is the description, explanation and justification
of various methods of conducting research. In it we understand the various steps that are generally
adopted by a researcher in studying his research problem along with the logic behind them.

1.6 A. SAMPLE SELECTION CRITERIA

The banking sector which satisfied the following criteria have been selected. The criteria are:

 Banking companies listed in security market.

 Availability of data for a period of five years.
 Accounting year must be from April to March.

1.6 B. SOURCE OF DATA

The study is based on the secondary data. The audited financial statements of the companies are the
main source of data. The major data sources used in this study are:

 Annual Reports of Companies

 Websites
 Journals
 News papers
 Reference Books

1.6 C. TOOLS AND TECHNIQUES

Different tools and techniques are used such as Descriptive analysis, Financial Ratio analysis.

 Descriptive Analysis:
Descriptive Statistics are used to present quantitative descriptions in a manageable form. In a
research study we may have lots of measures. Or we may measure a large number of people on
any measure. Descriptive statistics help us to simplify large amounts of data in a sensible way.
Each descriptive statistic reduces lots of data into a simpler summary.

 Financial Ratio Analysis:

 Net Profit Margin (NPM):
Net profit margin measures the amount of profits available to shareholders after
depreciation, interest and taxes are deducted from the earnings.
Net profit margin = Net profit / Revenue x 100
 Return on Equity (RoE):
The RoE examines profitability from the perspective of the equity investors by relating
profits available for the equity share holders with the book value of the equity investment.
Return on Equity = Net Income/Shareholder's equity

61
Earnings per Share (EPS):
This ratio indicates the profits available to equity share holders per share, this helps to
determine the market price of equity shares.
Earnings per Share = Profit after Tax / No. of equity shares
 Dividend per Share (DPS):
The amount of profits distributed to shareholders per share is known as DPS and may be
calculated as follows:
Dividend per Share = Amount declared a dividend / No. of equity shares
 Price to Earnings Ratio (PE Ratio):
The PE Ratio indicates the expectations of the equity investors about the earnings of the
firm. The PE ratio is one of the most widely used measures of financial analysis in
practice and is calculated as follows.
Price to Earnings ratio = Market Price per Share /Earnings per Share
 Price to Book Value Ratio:
The book value of a share provides a floor below which the market price of a share is not
expected to fall. Shares which have lower PB Ratio may be considered as a ‘safer’
investment and vice versa.
Price to Book Ratio = Market price per share/Book value per share

TOOLS USE FOR PRESENTATION

 Bar Diagram
 Tabular Presentation

61
1.7 SCOPE OF THE STUDY
This study provides a precise presentation of data and guidelines that will help a fresh investor as
well as a venture investor to know vital aspects of investing. This study helps to the investors to
choose a safe investment and to identify the growth opportunities in the future. Banking sector is the
one of the most important sector in the world. The scope of the study is limited to analyzing the
financial statements and periodical reports published by the company and the information from the
journals and websites.

61
1.8 Limitation of Study
 The study is confined only to the listed banking companies.
 External factors may adversely affect the industry as well as its share price. E.g. Government
policies, competition, tax imposition, global market, FDI/FII etc. Hence, the movement of
stock price is not 100 per cent predictable.
 The present study uses ratios as an important tool of analysis which itself has a number of
limitations on its applicability.

61
CHAPTER 2
REVIEW OF LITERATURE
2.1 Fundamental analysis
Fundamental analysis is a method of determining a stock ‘real or “fair market” value.
Fundamental analysis attempts to measure a security’s intrinsic value by examining related economic and
financial including the balance sheet, strategic initiative, microeconomic indicators and consumer
behavior. It is a method of measure a stock’s intrinsic value.

There are two approaches to fundamental analysis.

1. Top-down approach: In this approach, an analyst investigates both international and national
economic indicators, such as GDP growth rates, energy prices, inflation and interest rates. The
search for the best security then trickles down to the analysis of total sales, price levels and
foreign competition in a sector in order to identify the best business in the sector.
2. Bottom down approach: in this approach, an analyst starts the search with specific business,
irrespective of their industry/region.

Advantages of fundamental analysis

1. It is very good for long term investment planning.
2. It helpful in economic forecasting.
3. It helps to understanding market psychology.

Disadvantages of fundamental analysis

1. It is not beneficial for long term investment.
2. It has too many economic indicators and macroeconomic data can confuse novice investors.

Steps to fundamental analysis:

1. Economic analysis
2. Industry analysis
3. Company analysis

Economic analysis: -
To get an insight into the complexities of the stock market , one need to develop a sound
economic understanding and be able to interpret the impact of important economic , foreign exchange
reserves, government policy, interest rate , are some of the important economic indicators.

Industry analysis: -
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 The second face of fundamental analysis consists of a detailed analysis of specific industry; its
characteristics, its past record, its future prospects. The purpose of industry analysis is to identify those
industries which are likely to grow in the future and to invest in equity share of companies selected from
such industries.

Company analysis: -
At the company level, fundamental analysis may involve examination of financial data,
management, business concept and competition. Financial statements are the medium by which a
company discloses information concerning its financial performance. The fundamental analyst use the
quantitative information gleaned from financial statement to make investment decisions.

TEACHANICAL ANALYSIS: -
Technical analysis is concerned with predicting future price trends by analyzing historical price
and volume data. The underlying axiom of technical analysis is that all fundamentals (including
expectations) are factored into the market and are reflected in exchange rates.

HOW IS TECHNICAL ANALYSIS DONE?

Technical analysis is based on the premise that price discounts every aspect and information in
the market. Technical analysis is also based on the belief that price movements are never completely
arbitrary and follow a trend. A technical analyst believes that it is possible to identify an ongoing trend,
trade based on the trend and generate profits as the trend unfolds.

The methods used for technical analysis are:

1. Moving averages:

This method is used to identify various support and resistance levels for the short and long term.
The most commonly used moving averages are the 30-day moving average (DMAS) and 200-day
moving average (DMAS).

2. Charts and patterns:

Extensive charts are made based on historical data on price movements. These charts are used to
identify patterns and shapes, such as double top, double bottom, head and shoulders and triple bottom.

BENEFITS OF TECHNICAL ANALYSIS

The benefits of technical analysis are:

1. Helps to identify a trend, allowing investors to make predictions on future trends.

2. Allows investors to judge the direction of the current trend and enables them to gauge the best
time to take a position in the market.
3. When it is used in conjunction with fundamental analysis and company and industry related
news, it minimizes the chances of an investor incurring losses.
4. It give knowledge to the investor when to enter and when to exit.
5. In currency trading, technical analysis is less expensive as compared to the fundamental analysis
and there are so many companies that provide free charting software.
61
DRAWBACKS OF TECHNICAL ANALYSIS
The drawbacks of technical analysis are:

1. It draws heavily on a person's opinion or interpretation

2. It is more a study of probabilities than of actual value.
3. Useful only for short-term investments
4. As more and more people employ technical analysis and end up having a similar view, the value
of such analysis tends to decline.
5. Random walk hypothesis casts its shadow over the validity of Technical Analysis.
6. A single trading strategy may not work in all scenarios as markets tend to be extremely dynamic.

3. DATA ANALYSIS
61
3.1 ECONOMIC ANALYSIS
3.1 Economic analysis

Table 1
YEAR GDP% GNP% INFLATION INTERST EXCHANGE FOREX GOVT GOVT

(RS/$) RATE RESERVE RECEIPTS EXPENDITURE (Rs.

CR)
($ MILLION) (Rs. CR.)

2017 7.04 6.13 4.3 6.00 64.91 283365.5 1823123.12 2023123.12

2018 6.12 5.02 2.9 7.25 69.91 295503.6 2030378.25 2332765.74

2019 5.02 3.61 5.9 8.00 70.91 319997.5 2314849 2647312.19

Interpretation
The table 1 represents the major economic indices of our country which helps to the investors to
make economic analysis towards investments. Gross Domestics Product indicates the rate of growth of
the economy. The GDP of India is decrease during period 2017 to 2019, which means the economy is not
growing. This declining is not good for investors.

Gross Domestics Product represents the aggregate value of goods and services produced in a
country which shows a decrease trend at the rate 7.04% in 2017, 6.12%in 2018 and 3.61 in 2019.It shows
economic condition of a country slows downward.

Inflation rate in 2017 is 4.3, 2018 is 2.9 and 2019 is 5.9. Inflation is increased because of shortfall
of domestic production.

Interest rate is increased which help to encourage the saving habit of an individual. Interest rate in
2019 is 8%.

The exchange rate indicates the stability of economy growth of country. The exchange rate
indicates fluctuating in trend from 64.91 to 70.91. It clearly shows decreased in value of rupee as
compare to US dollar. Foreign exchange reserve helps to preserve currency stability and reduce
economic distresses. It was high in 2018-19. The government expenditure exceeds over the receipts, the
receipts and the small different in between those two, in future it can be controllable due to effective
money to develop our infrastructure activity economic policy. The government spent more because, once
infrastructure is developed it leads to potential economic growth.

3.2 INDUSTRY ANALYSIS

61
3.2 INDUSTRY ANALYSIS
The banking industry is one of the oldest industries still around today. It’s come a long way from
the old bartering and exchange system. And yet, it still has a long way to go. Even though most banks
now offer online services so you can use do most of what you need from home, this industry is still
lagging behind. It’s not meeting consumer demands or using updated IT infrastructure.

There are many positives associated with the banking industry though, as this SWOT analysis of
the banking industry will explain. Here I’ll discuss the strengths, weaknesses, opportunities, and threats
related to the banking industry, now and in the future.

Strengths
1. Banking is as old as the Human race:

The Banking business is the main impetus of any country. It helps in shaping the life of mankind
might be some time simply by Exchange (which was known as the trade framework), or by exchange or
by encouraging advances.

2. Source of employment & GDP growth:

There is an agreement among market analysts that the improvement of the money related framework
adds to financial development. Monetary advancement makes empowering conditions for development
through either an inventory driving (money related improvement prods development) or an interest
following. It is this industry that consistently attempts to verify budgetary strength, encourage universal
exchange, advance work, and diminish neediness around the globe.

3. Hedge from risk:

Whether it is a characteristic cataclysm or man-made disaster banks relieve the eventual outcome
of the devastation by giving money related help to the unfortunate casualties to stand – up and have a
quiet existence once more.

4. Diversified services:

The financial business offers administrations from CASA to protection, to credit, to speculation.

5. Connecting People:

With the coming of new-age mechanical headway Banks have made the life of the regular man
simpler. Individuals can execute consistently in numerous spots.

6. Changing from mere savings & loan facilitator role:

The top needs of banks now days incorporate administrative consistence, improving resource
quality, upgrading client centricity, concentrating on computerized intermingling, and handling rivalry
from non-banks. Banks are in this manner making business and innovation ventures to change their plans
of action.

Weaknesses

61
1. Absence of Coordination:

The worldwide financial industry faces momentary vulnerability because of the obligation
emergencies that challenge a few significant economies. Industry resources remain at $143 trillion (2013)
&the EU is the biggest local market, with over 57% of the worldwide market. Unpredictability in various
markets/Currencies has made issues for the banks so as to work appropriately over the fringes.

2. Vulnerable to risk:

Since this area manages accounts, it is the most hazardous segment that can change the destiny of
any business/Industry.

3. High NPA’s:

The rise in Retail and corporate NPA’s (Non-performing resources) is the single significant issue
this part is experiencing around the world.

4. Can’t reach to Under-penetrated market:

Due to a few clashing destinations of government and banks that goes connected at the hip,
provincial regions of creating countries are still not in the shadow of banks. In spite of the fact that
PMJDY (Pradhan Mantri Jan Dhan Yojna) actualized by the Indian banks got recognized by the World
Bank for money related consideration, the Idea isn’t completely promoted even in the nation of origin.

Opportunities
1. Expansion:

Penetrating to the country markets and bringing the rustic masses under the domain of sorted out
financial will be the goal of the Banks in decades to come.

2. Changing Socio-cultural & demographic factors:

Given the statistic shifts coming about because of changes in age profile and family pay,
customers will progressively request upgraded institutional capacities and administration levels from
banks.

3. Rise in private sector banking:

Banking Industry over the world is exceptionally controlled &lead by PSU’s with their separate
national banks. With the approach of private division banks, this part is experiencing basic and practical
changes basically because of the adjustment of the trendsetting innovations and expanded challenge in
this way profiting the end clients.

Threats
1. Recession:It is one of the significant dangers to the money related arrangement of the country. The
horrible stun of Economic emergencies and the breakdown of a few organizations can influence the
banks and the other way around.

2. Stability of the system:

61
 Failure of some feeble banks has regularly compromised the steadiness of the framework.

3. Competition: Competition from NBFC’s (Non-banking budgetary organizations) like insurance

agencies and common reserve organizations can influence the matter of Banks.

3.3 COMPANY ANALYSIS

Banks Average Maximum Minimum Standard Deviation

HDFC Bank -0.021404333 11.12806408 -68.68341 2.55307758

State Bank of India 0.000644435 24.36008431 -14.3633 2.268223214

ICICI Bank 0.031123181 13.70904485 -19.69493 2.113756691

Axis Bank -0.017198343 8.588176675 -32.87051 2.162446542

Kotak Mahindra Bank 0.065394519 11.61276225 -13.81386 1.598917447

IndusInd Bank -0.101798774 37.20442761 -27.31704 2.685106117

Yes Bank -0.36848474 45.79706055 -160.601 7.41038218

Punjab National Bank -0.101057437 37.97944649 -13.01974 2.966277193

Bank Of Baroda -0.106025498 27.36121956 -17.4653 2.732963143

Bank Of India -0.115094845 29.23879635 -14.05334 2.852649782

Descriptive statistics results of banking company in India

Table-1

INTERPRETATION

It can be observed from table -1 that all ten sample of banking sector companies have both the
positive and negative means returns. It can be observed that mean return of Kotak Mahindra bank
(0.065394519) is highest than the other banking companies however mean return of yes bank (-
0.36848474) is lowest. The top three better performance banking company are Kotak Mahindra bank
(0.065394519), ICICI bank(0.031123181) and state bank of India. On the other hand the bottom three
performance of banking company are yes bank (-0.36848474), bank of India (-0.115094845) and bank of
Baroda (-0.106025498). The fundamental analysis which can be measure by standard deviation recorded
heighted in yes bank (7.41038218). On the other hand standard deviation recorded lowest in Kotak
Mahindra bank (1.598917447) as compare to other banking company. On the basis of the standard
deviation the three greater fundamental analysis of banking companies are yes bank (7.41038218) ,
Punjab National bank (2.966277193) and bank of India (2.852649782), nevertheless three lesser
fundamental analysis of banking companies are Kotak Mahindra bank (1.598917447), icici
bank(2.113756691) and axis bank (2.162446542).

FINANCIAL ANALYSIS

61
 NET PROFIT MARGIN (NPM) OF TEN COMPANIES

Net profit margin = Reported Net profit / Net sales

NET PROFIR
2020 mar 2019 mar 2018 mar 2017 mar 2016 mar
MARGIN

HDFC 22.34% 21.34% 21.76% 20.86% 20.29%

SBI 6.74% 1.03% -1.83% -0.17% 5.74%

ICICI 13.23% 7.90% 14.64% 18.61% 18.43%

AXIS BANK 2.95% 9.01% 1.00% 8.78% 20.18%

KOTAK
MAHINDRA
BANK 25.71% 23.78% 24.46% 22.17% 16.82%

INDUSLAND
BANK 19.74% 19.91% 20.87% 14.83% 15.49%

YES BANK -63.08% 5.77% 20.89% 20.33% 18.69%

PUNJAB
NATIONAL
BANK 0.66% -19.23% -25.83% 1.88% -7.21%

BANK OF
BARODA 1.19% 2.05% -4.15% 4.00% -11.03%

BANK OF INDIA
-6.88% -13.41% -15.85% -4.03% -15.05%

Chart Title
40.00%

20.00%

0.00%
fc i ci nk nk nk nk nk
sb ici da di
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hd ba ba ba ba l ba a ro In
xi s ra d s f
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-60.00%

-80.00%
2020 mar 2019 mar 2018 mar 2017 mar 2016 mar

INTERPRETATION

61
 HDFC bank
The net profit margin of the HDFC bank is remaining at constant position in the given period. The
company keeping a good net profit margin in the given years. However it shows a slight increase in 2020
from 20.29% to 20.29%

 State bank of India

In the case State bank of India ,the net profit margin decrease from 2016 to 2019.The company has a
sharp increase in the last year when compared to the previous year.

 ICICI Bank

The net profit margin of the ICICI Bank Is remaining at constant position in the given period. The
company keeping a good net profit margin in the given years. However it shows a slight decrease in
2019.

 Axis Bank

The net profit margin of the of axis bank indicates a fluctuating trend. If you compare it year by year
it shows, in 2016 net profit margin is 20.18, in 2017 it is 8.78, in 2018 it is 1.00, in 2019 it is 9.01 and in
2020 it is 2.95. There are inconstancy net profit margin shown in axis bank.

 Kotak Mahindra Bank

The net profit margin of the Kotak Mahindra bank is remaining at constant position in the given
period. The company keeping a good net profit margin in the given years as shown in above table.

 IndusInd Bank
The net profit margin of the Indusland Bank is remaining at constant position in the given period. The
company keeping a good net profit margin in the given years as shown in above table.
 Yes Bank

The net profit margin of the of yes bank indicates a fluctuating trend. In year 2020 net profit margin
is -63.08, mainly because of a sharp decline in total income. A 30% year on year decline in interest
income And a 51% drop in other in quarter led to a 33% fall in total income to Rs.6,107 cr in the three
month ended 30 June. In 2018, yes bank net profit margin is 20.89 and in 2019 it suddenly decrease to
5.77.

 Punjab National Bank

The net profit margin of the of Punjab national bank indicates a fluctuating trend. The company has
as harp increase in the last year when compared to the previous year. The company is in a poor position.

 Bank Of Baroda

61
The net profit margin of the of Punjab national bank indicates a fluctuating trend. The company is in a
poor position.

 Bank Of India

In the case Bank of India, the net profit margin indicates a fluctuating trend.. The company is in a
poor position.

RETURN ON TOTAL ASSET (ROTA) OF TEN COMPANIES

Rota = EBIT/average total asset

Rota analysis

Return on Total Asset 2020 mar 2019 mar 2018 mar 2017 mar 2016 mar

HDFC 1.73% 1.74% 1.68% 1.71% 1.76%

SBI 0.43% 0.07% -0.12% -0.01% 0.43%

ICICI 0.82% 0.46% 0.81% 1.15% 1.19%

AXIS BANK 0.20% 0.62% 0.07% 0.65% 1.57%

KOTAK MAHINDRA BANK 1.94% 1.80% 1.82% 1.79% 1.42%

INDUSLANDBANK 1.63% 2.44% 1.63% 1.19% 1.45%

YESBANK -6.37% 0.45% 1.35% 1.55% 1.53%

PUNJAB NATIONAL BANK 0.04% -1.27% -1.62% 0.12% -0.51%

BANKOFBARODA 0.08% 0.13% -0.26% 0.25% -0.73%

BANK OF INDIA -0.44% -0.87% -0.99% -0.25% -1.03%

Chart Title

3.00%
2.00%
1.00%
0.00%
fc i ci nk nk nk nk nk
-1.00% sb ici da di
a
-2.00% hd ba ba ba ba l ba a ro In
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-3.00% xi
nd sln ye on
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A i u ti ko nk
-4.00% ah nd na n ba
-5.00% km
i
ab ba
-6.00% ta nj
-7.00% 2020 mar Ko mar
2019 2018 mar pu
2017 mar 2016 mar

61
INTERPRETATION

 HDFC Bank

From the perspective of Return of Total asset shareholders HDFC is more favorable to them.

Because, the company have a higher return on total Asset in this period. However it kept a stability

in the following years.

 State Bank of India

In state bank of India rota is not favorable, because rota value is 0 to 1 or negative.

 ICICI Bank

In ICICI rota is good for shareholder in year 2016 and 2017, after that it is not favorable.

 Axis Bank

In 2016, 2017 and 2019, rota is favorable to shareholder, but in 2020 and 2018 rota is not favorable
to share holder.

 Kotak Mahindra Bank

A stable ROTA is good for the shareholders. The Kotak Mahindra bank offer a stable return on total
Asset in these years.

 IndusInd Bank

A stable ROTA is good for the shareholders. The kotak Mahindra bank offer a stable return on total
Asset in these years.

 Yes Bank

The Return on total Asset is stable from 2016 to 2018. But it was declined in the last two year. This
fluctuating ROTA is not favorable to the shareholders.

 Punjab National Bank

The Return on total Asset is rapidly decrease from 2016. This fluctuating ROTA is not favorable to
the shareholders.

 Bank of Baroda

In the bank of Baroda the rota is not favorable, because rota value is between 0 to 1 or negative.

 Bank of India

The Return on total Asset is rapidly decrease from 2016.it only shows negative value. This fluctuating

61
 ROTA is not favorable to the shareholders.

RETURN ON EQUITY (ROE) OF TEN COMPANIES

Return on Equity = Reported Net profit / Net worth

Return on Equity 2020 mar 2019 mar 2018 mar 2017 mar 2016 mar

HDFC Bank 15.53% 14.66% 17.02% 16.75% 17.37%

SBI 8.03% 1.25% -2.05% -0.22% 7.14%

ICICI Bank 9.47% 5.18% 8.56% 11.30% 12.12%

Axis Bank 2.19% 7.50% 0.73% 7.10% 15.74%

Kotak Mahindra Bank 13.11% 12.53% 12.41% 13.17% 10.58%

INDUSLAND Bank 13.69% 14.59% 15.77% 12.82% 13.49%

YES Bank -85.65% 6.47% 16.74% 15.47% 18.96%

Punjab National Bank 0.63% -24.45% -32.90% 2.31% -9.50%

Bank of Baroda 1.25% 2.20% -4.15% 4.17% -12.02%

Bank of India -8.27% -13.66% -17.34% -5.17% -20.29%

Chart Title
40.00%
20.00%
0.00%
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-20.00% hd sb ici ba ba ba ba ba od di
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is ra d
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f
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ah
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km
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-80.00% Ko pu
-100.00%

2020 mar 2019 mar 2018 mar 2017 mar 2016 mar

INTERPRETATION

HDFC Bank

From the perspective of equity shareholders HDFC is more favorable to them. Because, the company
have a higher return on equity in this period. However it kept a stability in the following years.

STATE BANK OF INDIA

61
The return on equity of state bank of India in 2016 it is 7.14%, in 2017 it is -0.22% and 2018 it is -2.05%
this fluctuating roe is not favorable to the shareholders.

ICICI BANK

From the perspective of equity shareholders ICICI is to them. Because, the company have a higher return
on equity in this period. There is decrease in value of roe in 2019 year.

AXIS BANK

It also not favorable to share holder because there is rapid decrease year after year. In 2016 roe is 15.74%
% and in 2017 it is decrease to 7.10%, in 2018 it also decrease to 0.73% , in 2019 there is a increases to
7.50% but in 2020 again it is decrease to 2.19%.

KOTAK MAHINDRA BANK

A stable ROE is good for the shareholders. The Kotak Mahindra bank offer a stable return on equity in
these years.

INDUSLAND BANK

A stable ROE is good for the shareholders. The Kotak Mahindra bank offer a stable return on equity in
these years.

YES BANK

It also not favorable to share holder because of rapid decrease in the year 2019 and 2020 .

PUNJAB NATIONAL BANK

It also not favorable to share holder because of roe always shows negative or less values.

BANK OF BARODA

It also not favorable to share holder because of bad return of equity in these year.

INDUSTRY 2020 2019 2018 2017 2016

HDFC Bank 311.83 547.89 409.6 349.12 287.47

State Bank of India 233.34 219.91 217.69 196.53 185.85

ICICI Bank 175.17 163.38 158.91 166.37 149.47

Axis Bank 301.05 259.27 247.2 232.83 223.12

Kotak Mahindra Bank 253.6 222.13 196.69 150.01 130.61

61
 IndusInd Bank 437.2 390.94 338.65 290.79 193.4

Yes Bank 17.31 116.22 111.85 483.13 327.84

Punjab National Bank 85.49 89.5 135.44 179.03 180.61

Bank Of Baroda 155.51 173.66 163.64 174.92 174.46

Bank Of India 114.42 128.32 172.07 291.7 379.47

PRICE TO BOOK VALUE RATIO (P/B Ratio) OF TEN COMPANIES

Price to Book Ratio = Market price per share/Book value per share.

600
500
400
300
200 2020
100 2019
0 2018
2017
nk ia nk k k k k k a ia
Ba Ind I Ba Ban Ban Ban Ban Ban r od Ind 2016
of is ra s l a f
FC IC Ax sIn
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a ah d 7. k Ba
eB 3. 4. In Na n
1. tat k M
jab Ba
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Ko Pu 9.
2.
5. 8. .
10

INTERPRETATION

HDFC BANK

The PB Ratio of the HDFC increase year by year from 2016 to 2019. But it was suddenly fallen in the
last year i.e. in 2020. This decline is favorable to the shareholders of the company. Because, shares which
have lower PB Ratio may be considered as a ‘safer’ investment and vice versa.

STATE BANK OF INDIA

When comparatively looking, state bank of India kept a stable Price to book value ratio. However above
table shows slight increase in the ratio year to year.

61
ICICI BANK

When comparatively looking, state bank of India kept a stable Price to book value ratio. However above
table shows slight increase in the ratio year to year.

AXIS BANK

The PB Ratio of the axis bank increase year by year from 2016 to 2019. However above table shows
slight increase in the ratio year to year.

KOTAK MAHINDRA BANK

When comparatively looking, kotak Mahindra bank kept a stable Price to book value ratio. How ever
above table shows slight increase in the ratio year to year.

INDUSIND BANK

When comparatively looking, indusland bank kept a stable price to book value ratio. How ever above
table shows Slight increase in the ratio year to year.

YES BANK

The PB Ratio of the yes bank is very high in the first two years. But it was suddenly fallen in the last
three year. This decline is favorable to the shareholders of the company. Because, shares which have
lower PB Ratio may be considered as a ‘safer’ investment and vice versa.

PUNJAB NATIONAL BANK

When comparatively looking, Punjab national bank, kept stable price to book value ratio. However
above table shows slight declines in the ratio year to year. This decline is good for the shareholder.

BANK OF BARODA

The above table shows that pb ratio of bank of India is inconstant every year. And in the last year it is
decline. This decline is good for shareholder.

BANK OF INDIA:- When comparatively looking, bank of India, kept stable price to book value ratio.
However above table shows in first two year it decline rapidly and in last three years slight declines in
the ratio year to year. This decline is good for the shareholder.

EARNING PER SHARE (EPS) OF TEN COMPANIES

Earnings per Share = Profit after Tax / No. of equity

INDUSTRY 2020 2019 2018 2017 2016

HDFC Bank 48.01 78.65 67.76 57.18 48.84

State Bank of India 16.23 0.97 -7.67 13.43 12.98

ICICI Bank 12.28 5.23 10.56 15.31 16.75

Axis Bank 5.99 18.2 1.13 15.4 34.59

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 Kotak Mahindra Bank 30.88 25.52 21.54 18.57 11.42

IndusInd Bank 63.75 54.9 60.19 48.06 39.68

Yes Bank -56.07 7.45 18.43 15.78 60.62

Punjab National Bank 0.62 -30.94 -55.39 6.45 -20.82

Bank Of Baroda 1.36 1.64 -10.53 6 -23.89

Bank Of India -9.1 -29.79 -52.55 -15.72 -83.01

100

80

60

40

20 2020
2019
0 2018
nk a k k k k k k a a 2017
di an an an an an an od di
-20 C Ba In I B B B B B B ar In 2016
f IC is a d s al fB
f
HD
F
nko IC Ax indr
usIn Ye on O nkO
ti
Ba ah In
d Na nk Ba
-40 ate k M aj b Ba
St ta n
Ko Pu
-60

-80

-100

HDFC BANK

In the shareholder point of view the profitability of the company is shows an increase in trend
from 2016 to 2019, and suddenly declined in 2020. Basic earnings per share of HDFC is increased from
48.84 to78.65 and in 2020 it decline to 48.01.

STATE BANK OF INDIA

Basic earnings per share is 2016 is 12.98, in 2017 there is an increase to 13.43. In 2018 it is
suddenly decreased to -7.68. In 2019 it increase to 0.97 and in 2020 it rapidly increased to 16.23.

ICICI BANK
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 If we compare year to year, it shows there is decline in eps from 2016 to 2019 i.e. from 16.75 to
5.23. In 2020 there is some increase in eps as compare to 2019.

AXIS BANK

EPS of Axis bank shows inconsistency .in 2016 EPS is 34.59 but in 2017 it suddenly become
15.4 and again in 2018 it also declines to 1.13. In 2019 it suddenly increases to 18.2, in 2020 it again
declined to 5.99.

KOTAK MAHINDRA BANK

In the shareholder point of view the profitability of the company is shows an increase in trend.
EPS is increase from 11.42 to 30.88.

INDUSLAND BANK
EPS of indusland bank is increase in year to year. In this company increase in EPS is good to rise
the demand for the share in the share market.

YES BANK

EPS of yes bank shows inconsistency. EPS is decrease year to year. In 2016 the value of EPS is
60.62, in 2020 it become -56.07 because of poor demand.

PUNJAB NATIONAL BANK

In first year EPS is shows negative value i.e. -20.82, in 2017 it is increased to6.45. In 2018 and
2019 it also shows negative value i.e.-55.39 and -30.94. In 2020 it increased to 0.62.

BANK OF BARODA
In bank of Baroda it shows negative or less value. In 2016 and 2018 value is -23.89 and -10.53. In
2017, 2019 and 2020 it shows value of 6, 1.64 and 1.36.

BANK OF INDIA

In bank of India it shows negative value year to year. It is not good for shareholder.

EARNING PER SHARE (DILUTED)

Diluted EPS= profit after tax/ no of equity + other convertible instruments

INDUSTRY 2020 2019 2018 2017 2016

HDFC BANK 47.66 77.87 66.84 56.43 48.26

STATE BANK OF INDIA 16.23 0.97 -7.67 13.43 12.98

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 12.08 5.17 10.46 15.25 16.65
ICICI BANK

5.97 18.09 1.12 15.34 34.4

AXIS BANK

30.84 25.48 21.51 18.55 11.4

KOTAK MAHINDRA BANK

63.52 54.46 59.57 47.56 39.26

INDUSIND BANK

YES BANK -56.06 7.38 18.06 15.35 59.31

0.62 -30.9 -55.39 6.45 -20.82

PUNJAB NATIONAL BANK

BANK OF BARODA 1.36 1.41 -10.53 6 -23.89

-9.1 -29.8 -52.55 -15.72 -83.01

BANK OF INDIA

100
80
60
40
2020
20 2019
0 2018
nk a nk nk nk nk nk nk da a 2017
-20 di di
Ba f In I Ba s Ba a Ba Ba s Ba l Ba aro f In 2016
-40 DFC o IC xi d na B
nk IC A dr In Ye Of
O
H a hin dus atio k ank
-60 B a In N n B
at
e
k M ab Ba
-80 St ta n j
Ko Pu
-100

Interpretation
HDFC Bank

Diluted earnings per share of the HDFC showing that the company have more convertible
securities. There is a change in increase in diluted EPS from 2016 to 2019 i.e. from 48.26 to 77.87. But
in 2020 it suddenly declined to 47.66.

State Bank of India

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 Diluted EPS of state bank of India Shows Company have less convertible securities. It shows
inconsistence. In year 2016, 2017 and 2020 it shows a good value. But in 2018and 2019 it shows a less
value.

ICICI Bank
In ICICI Bank, diluted EPS show decline in year to year from 2016 to 2019 i.e. from 16.65 to
5.17. But in 2020 there is an increase in diluted EPS to 12.08.

Axis Bank
In axis bank, diluted EPS show decline year to year from 2016 to 2018 i.e. from 34.4 to 1.12. But
in2019 it is increase to 18.09.In 2020 it again decline to 5.97.

Kotak Mahindra Bank

In kotak Mahindra bank, it shows increase in diluted EPS year to year from 2016 to 2020 i.e.
from 11.4 to 30.84.

Indusland Bank
In indusland bank, it shows increase in diluted EPS year to year from 2016 to 2020 i.e. from
39.26 to 63.52.
Yes bank
In the yes bank, it shows decline in diluted EPS year to year from 2016 to 2020 i.e. from 59.31 to
-56.06.
Punjab national Bank
In Punjab national bank, it shows negative diluted EPS value in 2016, 2018 and 2019. In 2017 it
shows 6.45 and in 2020 it is 0.62.
Bank of Baroda
In bank of Baroda, it shows negative diluted EPS value 2016 and 2018. In other year it shows less
value.
Bank of India
In bank of India, it only shows negative value year to year.

3.4 TECHNICAL ANALYSIS

Technical analysis of Indian banking sectors involves closing price analysis of selected ten
banking companies in the period of last 5 years.
HDFC BANK

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 Close Price
3000
2500
2000
1500 Close Price
1000
500
0
6 6 6 6 6 7 7 7 7 7 8 8 8 8 8 8 9 9 9 9 9 0 0
pr-1 un-1 ug-1 ct-1 ec-1 eb-1 ay-1 Jul-1 ep-1 ov-1 an-1 ar-1 un-1 ug-1 ct-1 ec-1 eb-1 pr-1 Jul-1 ep-1 ov-1 an-2 ar-2
A J A O D F - S N -J J A O D F A - S N -J
1- 6- 11- 16- 21- 25- 2-M 7 11- 16- 21 28-M 2- 7- 12- 17- 21- 28- 3 7- 12- 17 23-M

Interpretation
In this chart close price of last five years of HDFC bank from 2016 to 2020. In 2019 closing price
high in 2019. It is very low in 2019-20. Which maximum value is 2494.35, minimum value is 765.45and
average value is 1696.029

STATE BANK OF INDIA

Close Price
400
350
300
250
200 Close Price
150
100
50
0
6 6 6 6 6 7 7 7 7 7 8 8 8 8 8 8 9 9 9 9 9 9 0
pr-1 un-1 ug-1 ct-1 ec-1 eb-1 pr-1 un-1 ug-1 ct-1 an-1 ar-1 ay-1 Jul-1 ep-1 ov-1 an-1 ar-1 ay-1 Jul-1 ct-1 ec-1 eb-2
A J A O D F A J A O -J - S N -J - O D F
1- 4- 7- 10- 13- 15- 20- 23- 26- 29- 1 6-M 9-M 12 14- 17- 20 25-M 8-M 31 3- 6- 8-
2

Interpretation

In this chart close price of last five years of STATE BANK OF INDIA. FROM 2016 to 2019 the
closing price is grown slowly. The closing price of 2020 is very low as compare to previous year closing
price. Maximum closing of STATE BANK OF INDIA is 372.15, minimum is168.95, average is 278.866.

ICIC BANK

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 Close Price
600
500
400
300 Close Price
200
100
0
6 6 6 6 6 7 7 7 7 7 8 8 8 8 8 8 9 9 9 9 9 9 0
pr-1 un-1 ug-1 ct-1 ec-1 eb-1 pr-1 un-1 ug-1 ct-1 an-1 ar-1 ay-1 Jul-1 ep-1 ov-1 an-1 ar-1 ay-1 Jul-1 ct-1 ec-1 eb-2
A J A O D F A J A O -J - S N -J - O D F
1- 4- 7- 10- 13- 15- 20- 23- 26- 29- 1 6-M 9-M 12 14- 17- 20 25-M 8-M 31 3- 6- 8-
2

Interpretation

In this chart close price of last five years of ICICI, There is slow increase in value of closing
pricing form 2016 to 2019. In 2020 closing price is very low. Maximum closing of ICICI from last five
years is549.4, minimum is 214.75and average is 334.4574.

Axis bank

Close Price
900
800
700
600
500
400
300
200
100
0
6 6 6 6 6 6 7 7 7 7 7 7 7 7 8 8 8 8 8 8 8 8 9 9 9 9 9 9 9 9 0 0
-1 - 1 -1 -1 -1 -1 -1 -1 -1 - 1 -1 -1 -1 -1 -1 -1 -1 - 1 -1 -1 -1 -1 -1 -1 -1 - 1 -1 -1 -1 -1 -2 -2
A pr ay -Jul ug Oct ov Jan Feb Apr ay -Jul ug Oct ov Jan Feb Apr ay -Jul ug Oct ov Jan Feb Apr ay -Jul ug Oct ov Jan Feb
1- 7-M 2 17-A 2- 17-N 2- 17- 4- 0-M 5 20-A 5- 20-N 5- 20- 7- 3-M 8 23-A 8- 23-N 8- 23- 10- 6-M 11 26-A 11- 26-N 11- 26-
1 2 2 2

Close Price

Interpretation

In this chart close price of last five years of Axis Bank, in year 2016 there is increase in value of
closing price , but in 2020 closing price is decreased. From 2017 to 2019 prices are grown slowly.
Closing price is high in 2019. But in 2020 closing prices is decreased. Maximum closing price from last
five years is 821.4, minimum is 303.15 and average is 587.1372.

Kotak Mahindra bank

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 Close Price
2000
1800
1600
1400
1200
1000 Close Price
800
600
400
200
0
6 6 6 6 6 7 7 7 7 7 7 8 8 8 8 8 8 9 9 9 9 9 9 0
r -1 n-1 g-1 ct-1 c-1 b-1 r-1 n-1 g-1 ct-1 c-1 b-1 r-1 n-1 g-1 ct-1 c-1 b-1 r-1 n-1 g-1 ct-1 c-1 b-2
Ap Ju Au O De Fe Ap Ju Au O De Fe Ap Ju Au O De Fe Ap Ju Au O De Fe
1- 2- 3- 4- 5- 5- 8- 9- 10- 11- 12- 12- 15- 16- 17- 18- 19- 19- 22- 23- 24- 25- 26- 26-

Interpretation

In this chart close price of last five years of Kotak Mahindra bank. From 2016 to 2018 the close
prices are growing very slow. But from 2018 to 2020, it increase in a high rate. Maximum closing price
is 1729.3, minimum is 663.15and average is1136.167.

Indusland bank

Close Price
2500
2000
1500
Close Price
1000
500
0
6 6 6 6 6 7 7 7 7 7 7 8 8 8 8 8 8 9 9 9 9 9 9 0
pr-1 un-1 ug-1 ct-1 ec-1 eb-1 pr-1 un-1 ug-1 ct-1 ec-1 eb-1 pr-1 un-1 ug-1 ct-1 ec-1 eb-1 pr-1 un-1 ug-1 ct-1 ec-1 eb-2
A J A O D F A J A O D F A J A O D F A J A O D F
1- 2- 3- 4- 5- 5- 8- 9- 10- 11- 12- 12- 15- 16- 17- 18- 19- 19- 22- 23- 24- 25- 26- 26-

Interpretation

In this chart close price of last five years of Indusland bank. From 2016 to 2018 closing prices are
grow slowly. But from 2019 to 2020 closing price is suddenly decreased. Maximum close price
is2021.55, minimum is301.2, average is 1469.469.

Yes bank

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 Close Price
2000

1500
Close Price
1000

500

Interpretation

In this chart close price of last five years of Yes bank. From 2016 to 2017 there is increased in
close prices. But from 2018 to 2020 close prices is decreased. Maximum closing value is1878.55,
minimum is 16.2, and average is625.9866.

Punjab national bank

Close Price
250
200
150
Close Price
100
50
0
6 6 6 6 6 7 7 7 7 7 8 8 8 8 8 8 9 9 9 9 9 9 0
pr-1 un-1 ug-1 ct-1 ec-1 eb-1 pr-1 un-1 ug-1 ct-1 an-1 ar-1 ay-1 Jul-1 ep-1 ov-1 an-1 ar-1 ay-1 Jul-1 ct-1 ec-1 eb-2
A J A O D F A J A O -J - S N -J - O D F
1- 4- 7- 10- 13- 15- 20- 23- 26- 29- 1 6-M 9-M 12 14- 17- 20 25-M 8-M 31 3- 6- 8-
2

Interpretation

In this chart close price of last five years of Punjab National Bank. From year 2016 to 2017
closing prices is increased. But after that from 2018 to 2020 closing prices is decreased rapidly.
Maximum closing price is213.2, minimum is32.35 and average is105.1562.

Bank of Baroda

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 Close Price
250
200
150
Close Price
100
50
0
6 6 6 6 6 7 7 7 7 7 7 8 8 8 8 8 8 9 9 9 9 9 9 0
pr-1 un-1 ug-1 ct-1 ec-1 eb-1 pr-1 un-1 ug-1 ct-1 ec-1 eb-1 pr-1 un-1 ug-1 ct-1 ec-1 eb-1 pr-1 un-1 ug-1 ct-1 ec-1 eb-2
A J A O D F A J A O D F A J A O D F A J A O D F
1- 2- 3- 4- 5- 5- 8- 9- 10- 11- 12- 12- 15- 16- 17- 18- 19- 19- 22- 23- 24- 25- 26- 26-

Interpretation

In this chart close price of last five years of Bank of Baroda. From 2016 to 2017 there is slow
increased in close price but from 2018 to 2020 there is sudden decreased. Maximum close price is195.8,
minimum close price is 52.45 and average is135.8423.

Bank of India

Close Price
250

200

150
Close Price
100

50

0
6 6 6 6 6 7 7 7 7 7 7 8 8 8 8 8 8 9 9 9 9 9 9 0
pr-1 un-1 ug-1 ct-1 ec-1 eb-1 pr-1 un-1 ug-1 ct-1 ec-1 eb-1 pr-1 un-1 ug-1 ct-1 ec-1 eb-1 pr-1 un-1 ug-1 ct-1 ec-1 eb-2
A J A O D F A J A O D F A J A O D F A J A O D F
1- 2- 3- 4- 5- 5- 8- 9- 10- 11- 12- 12- 15- 16- 17- 18- 19- 19- 22- 23- 24- 25- 26- 26-

Interpretation

In this chart close price of last five years of Bank of India. From 2016 to 2017 there is increase in
value of closing value. But from 2018 to 2020 there is decreased in closing value. Maximum close price
is 207.95, minimum close price is31.8 and average is107.2467.

4.1 FINDINGS OF THE STUDY

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  ECONOMY ANALYSIS

• It represents the major economic indicators of our country which helps to the investors to make
economic analysis towards investments. Gross Domestic Product indicates the rate of growth of the
economy. The GDP of India during the period of 2017 to 2019 is decreasing, which means the economy
is not growing. The rate of GDP is not favorable to the stock market.

• Gross National Product represents the aggregate value of goods and a service produced in a country
which shows a decreasing trend at the growth rate of 6.13% in 2017, 5.02% in 2018 and 3.61% in 2019,
it represents the economic condition of a country which is going downward.

• During the year 2019 inflation rate shows as 5.9 per cent which was increased due to the shortfall of
domestic production vis-à-vis demand and hardening of international prices, prices of primary
commodities, especially rise in prices of food products. However, in 2018the inflation rate was 2.9 per
cent.

• The Interest rate is increased which helps to encourage the saving habit of an individual. Interest rates
on deposits rate was highest in 2019 among the study period, it was 8 per cent.

• The exchange rate indicates the stability of economic growth of a country. The exchange rate shows
fluctuating trend from 64.91 to 70.91. It’s clearly shows that the value of rupee is decreasing when
comparing to the US dollar. Foreign exchange reserve helps to preserve currency stability and reduce
economic distresses.

• Foreign exchange reserve shows high trend during the period of 2017-19. The government expenditure
exceeds over the receipts, the receipts and there is a small difference in between these two; in future it
can be controllable due to effective money to develop our infrastructural activities economic policy.

• The government spent more because; once the infrastructure is developed it leads to potential economic
growth.

 Industry analysis
 Banking sector is save place to invest as compare to other sector.
 It directly connect with people which is bank sector strength.
 Weakness is absence of coordination
 Threats is stability in the system.
 Company analysis

Descriptive Statistics

Mean return of kotak Mahindra bank is higher than other banks. Yes bank give maximum return
as well as minimum return. Top three better company are kotak Mahindra bank, ICICI and State
Bank of India.

Financial ratio analysis:- In the net profit margin kotak Mahindra bank, ICICI bank and HDFC
bank are high. In the other way yes bank, bank of India and SBI is low.

 In the ROTA, HDFC, Kotak Mahindra bank and ICICI bank are consistence, but yes bank, bank
of India, bank of baroda is inconsistence.

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  In ROE, HDFC, ICICI, kotak Mahindra bank consistence. Bank of India, bank of boroda and yes
bank not consistence.
 P/b ratio is high in HDFC, axis bank and indusland bank.
 Earnings per share is high in HDFC, indusland bank. Lower in yes bank and Punjab national
bank.

TECHNICAL ANALYSIS

In this analysis investor is know when to invest. In HDFC investor can invest in 2016 when price
is low and investor should exit in 2018 when price is high, after that price is slopes downwards. In kotak
Mahindra bank investor invest from 2016 and exit in 2018. It give investor to brief idea when to entry
and when to exit. In SBI investor will invest in 2016 when price is 168.95 and exit in 2019 when price is
372.15. In ICICI investor will invest when price is 2014.75 and exit in 2019 when price is going to
decline.

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4.2 SUGGESTIONS
 Investor should invest share of the bank like HDFC bank, Kotak Mahindra Bank and ICICI.
 Investor should not invest in yes bank, bank of Baroda and bank of India. Because it is not in a
good position to invest for investor.
 Company should try to increase the generation of profit for providing a better return to its
shareholders.
 Investor should take care of inflation, GDP, GNP etc rate for investment.
 They should work on their terms and conditions policy so that there is less malpractices.
 The investor should study the current trend of trend of the stock market in India before investing.
The investor has to see the detail of the bank in which they are going to invest.
 They should not totally depends on market price because there can be chances of fluctuation.
 The exchange rate of rupee could control to increase the total export from the country. It will
enrich the country.
 An investor should be aware about economic condition, market condition, government policy and
industry policy etc., they should analysis both internal as well as external factor before going to
invest in security. The prior analysis will help to the investor to minimize risk for a better return.
 Overall this sector is good for investor. Bank like HDFC, ICICI and Indusland bank good for
investor.

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4.3 CONCLUSION
Fundamental analysis aims at finding the true worth of a security by analyzing macroeconomic,
industry scenario and company financial position and so on. An investor can make safest as well as
lucrative investment by analyzing the related variables and ensure for optimum return. Fundamental
analysis suggests that no investor should buy or sell a share on the basis of the advices of market
intermediaries or tips given by the stock dealers, websites, etc., the fundamental analysis calls upon the
investor to make his buy or sell decisions based on the detailed analysis of the information available.

This study focuses on fundamental analysis using various tools which help in trading strategies
for risk reduction and maximization of return. The objective of the study is to conduct Fundamental
analysis listed banking company and the SWOT analysis for the Banking sector of India. The study
revealed that through economic analysis the Gross Domestic Product, Gross National Product, Interest
rate, Foreign exchange reserves, Government Receipts and Expenditure has a positive growth rate during
the study period.

Hence, investors may consider these factors before going to make investment. From the industry
analysis found that the India’s banking sector reported a growth rate and its profit and sales also shows
increasing trend during the study period. The SWOT analysis discloses that the strength of banking
sector in India is the low operating cost, huge population is the opportunity, Lower scope of investing in
technology especially of small scale sectors is the major weakness and major threats are tax and
regulatory structure of our country. In this study I find that investment in HDFC and ICICI is good for
investor.

Indian banking sector has gone through various phases of development in history. The present
growth in the banking sector can be attributed to the various financial reforms undertaken government.
The deposit of banking companies is increasing with increase in GDP at market price. Banking
companies in India differs in the shareholding Patten. Statutory requirement is being used as tool by RBI
to keep inflation under cheek.

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4.4 REFERENCES:
Bibliography

This project has been done with the help of different books, magazines, journals and websites. My
supervisor sir/mam has also suggested some suggestions summarizing them the concept of
“FUNDAMENTAL AND TECHNICAL ANAYLYSIS OF INDIAN BANKING
SECTOR” has been highlighted.

 Yogesh Maheswari, “Investment Management”, PHI Learning Pvt. Ltd., New Delhi, 2008
 Viyyanna Rao and Nirmala Daita, “Fundamental Factors Influencing Investments in Mutual
Funds the EIC Approach: A Case Study of RCAMI”Indian Journal of finance, 2012

WEB-BIBLIOGRAPHY
 http://motilaloswal.com
 http://data.worldbank.org
 https://www.rbi.org.in
 http://www.investopedia.com
 http://money.rediff.com
 http://www.moneycontrol.com
 http://finmin.nic.in
 http://statisticstimes.com
 http://www.global-rates.com
 http://www.nseindia.com
 http://www.bseindia.com
 http://www.wikipedia.com
 http://info.shine.com
 http://www.wikipedia.com

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