►About State Bank of India
►Industry Role & Financial Analysis
►Financial Statement Analysis
►Ratio Analysis of Performance Indicators
►About ICICI Bank
►Comparison with the Competitor
► Risk Management
Financial statement analysis is defined as the process of identifying financial strengths and weaknesses of the firm by properly establishing relationship between the items of the balance sheet and the profit and loss account. It also helps to analyse the financial results, position and condition of the companies in the market. It is usually derived from the annual reports or financial reports of the company. Financial analysis is the selection, evaluation, and interpretation of financial data, along with other pertinent information, to assist in investment and financial decision-making. Financial analysis may be used internally to evaluate issues such as employee performance, the efficiency of operations, and credit policies, and externally to evaluate potential investments and the credit-worthiness of borrowers, among other things. It also helps us to know the potential growth and comparative position in the market. Introduction
India continues to be well placed to achieve robust economic growth in a challenging environment. The Indian Banking sector, which supports 6.73% of the country’s GDP, is one of the largest employment providers in the current workforce. Ranging from government banks to private banks, the country has witnessed a huge turnover in recent years by providing financial assistance and loans to various sectors like housing, small scale businesses, agriculture, etc. During the recent financial crisis, the Indian banking sector performed outstandingly and maintained their balance sheets positive. In this assignment lets see the Financial Statement analysis of State Bank of India and ICICI Bank, both being the leading bankers in the country.
About State Bank of India
The State Bank of India (SBI) is the largest Indian banking and financial services company in terms of turnover and total assets with its headquarters in Mumbai. It is owned by the government. SBI provides a range of banking products through a vast network of branches in India and overseas. With an asset of $ 352 billion, it is also one of the largest financial institutions in the world. Founded: 1 July 1955
Headquarters: Mumbai, Maharashtra, India
Area served: Worldwide
Key people: Pratip Chaudhuri (Chairman)
Products : Credit cards, Consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, and wealth management Revenue : 147,843.92 crore (US$29.98 billion) (2011)
Operating income : 33,710.31 crore (US$6.84 billion) (2011) Profit: 11,179.94 crore (US$2.27 billion) (2011)
Total assets: $322.077 billion (2010)
Total equity: $19.048 billion (2010)
Owner(s): Government of India
Employees: 222,933 (2011)
SBI provides a range of banking products through its vast network of branches in India and overseas, including products aimed at non-resident Indians. The State Bank Group, with over 16,000 branches, has the largest banking branch network in India. SBI has 14 Local Head Offices and 57 Zonal Offices that are located at important cities throughout the country. It also has around 130 branches overseas.
With an asset base of $352 billion and $285 billion in deposits, SBI is a regional banking behemoth and is one of the largest financial institutions in the world. It has a market share among Indian commercial banks of about 20% in deposits and loans. The State Bank of India is the 29th most reputed company in the world according to Forbes. Also SBI is the only bank featured in the coveted "top 10 brands of India" list in an annual survey conducted by...