Analysis on Capital Structure, Dividend Policy & Working Capital Requirements of

Powerful Essays
SELDOM CORPORATE India recognizes a PSU (Public Sector Unit) and considers its executives worthy of an award for efficiency and business performance. In the corporate arena, ICICI, HDFC, HSBC etc. are the banks which are always considered for one award or the other. Some PSU banks have won awards in the past but those awards were for achieving computerization and other such ‘achievements’. Seldom has a a PSU bank been seen by corporate India as a potential avenue and as one capable of scaling new heights in the banking industry with the presence of more competitive private banks.
But now SBI has started to dance, to jump and to take big strides for achieving the business goal, which hitherto have been the characteristics of the small and beautiful players in the space. The age-old mammoth institution, SBI in just a short span of 18 months, has blasted its way out of the struggle, where it has been losing its market-share to its main competitors like ICICI Bank, Axis Bank and HDFC Bank. In this 18-month period, the price of the SBI share has risen from a modest Rs 800 to Rs 2,400, thanks to the proposed merger of the seven associate banks with SBI. The huge jump in the share price has raised SBI’s market capitalization to Rs 1, 21,064.79 crores (as on November 30, 2007). Bringing down the net NPA (non-performing asset) from 1.88 per cent in 2006 to 1.56 per cent in 2007, given an asset base of Rs 5, 66,565.24 crores, is no child’s play too.
All these bind boggling results have been possible through the policies and the indispensable role of the policy makers, i.e. management who have taken State Bank of India to become one of the most prestigious & promising banks of India.
The policies pertaining to Capital Structure & Dividend policy play a major role in the successful and efficient working of the bank. The objectives of the bank are the criteria for a bank to frame its policies. And it is very much clear that the objectives and the policies at SBI go

You May Also Find These Documents Helpful

  • Powerful Essays

    An Appraisal of Dividend Policy and Capital Structure of Apex Tanneries Limited 1. Company Profile Apex tanneries has been setting standard in Bangladesh leather export industry since 1976.equiped with the state of the art Italian modern machinery and maintaining high quality strictness. Through the years its production has been progressively entailing a constant expansion of building and machinery .Annual production exceeds 23 million square meters and company sales turnover amount to…

    • 2464 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Dissertation AN EMPIRICAL STUDY ON IMPACT OF DIVIDEND POLICY ON CAPITAL STRUCTURE (A report submitted towards the partial fulfillment of the requirement of the two years full-time Post Graduate Diploma in Management.) DECLARATION I, student of Post Graduate Diploma in Management from hereby declare that I have completed dissertation on “IMPACT OF DIVIDEND POLICY ON CAPITAL STRUCTURE ” a part of the course requirement. I further declare that the information presented in this project…

    • 10020 Words
    • 41 Pages
    Powerful Essays
  • Good Essays

    DATA: Database Dividend payment pattern of all IT companies that are listed for trading on one of the two major exchanges namely National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) during the period 2004-2008 (I refer each year henceforth with the end year i.e., for 2004-2005 to 2005) are employed for analysis. The data has been sourced from Prowess database of the Centre for Monitoring Indian Economy (CMIE). For the purpose of this study,only final dividend and interim dividend. Unlike the…

    • 574 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Working Capital Policy

    • 1346 Words
    • 6 Pages

    Running Head: WORKING CAPITAL POLICY Working Capital Policy Mariano Santana University of Phoenix Table of Contents Introduction.………………………………………………………………………………3 Danaher's Working Capital.…………………………..………………………………….3 Cash Balance Requirements.....…………………………………………………...3 Credit Policy……………………………………………………………………….4 Supplier Negotiation Strategy……………………………………………………..4 Short-term Financing Strategy…………………………………………………….5 Metrics..….……………….……………………………………………………….5 Ethical Implications…………………………………………………………………………

    • 1346 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Working Capital

    • 15383 Words
    • 62 Pages

    2.5 Working Capital This section includes: Definition and classification of working capital Determinants of Working Capital Measurements of Working Capital Working Capital Financing Management of Working Capital Inventory management Cash Management Receivables Management INTRODUCTION : The term working capital is commonly used for the capital required for day-to-day working in a business concern, such as for purchasing raw material, for meeting day-to-day expenditure on salaries, wages, rents rates…

    • 15383 Words
    • 62 Pages
    Powerful Essays
  • Powerful Essays

    Working Capital

    • 7821 Words
    • 32 Pages

    University, Nainital ACKNOWLEDGEMENT Success is the outcome of diligence & perseverance, I, Anuwant kaur, student of Third semester BBA programmed, would, like to ascribe to my success in completing my summer project’ “Working Capital” to Mrs. Leena dixit & Preeti dixit (Project guide) and to my project supervisor Mr.Neeraj joshi who have extended their sincere help in accomplishing my project. I really want to thank the above mentioned persons for their continuous support…

    • 7821 Words
    • 32 Pages
    Powerful Essays
  • Powerful Essays

    within India, where it also owns majority stakes in seven associate banks. State Bank of India has more than 50 offices in nearly 35 other countries, including multiple locations in the US, Canada, and Nigeria. The bank has other units devoted to capital markets, fund management, factoring and commercial services, and brokerage services. The Reserve Bank of India owns about 60% of State Bank of India. State Bank of India (SBI) is India's largest commercial bank. SBI has a vast domestic network…

    • 16972 Words
    • 68 Pages
    Powerful Essays
  • Satisfactory Essays

    Working Capital

    • 2244 Words
    • 9 Pages

    A SYNOPSIS ON WORKING CAPITAL MANAGEMENT OF THE L & T. UNDER SUPERVISION OF: -------------------SUBMITTED BY NAME : ENROLLMENT NO : STUDY CENTER CODE : REGIONAL CENTER MRS. A.R. RAJALAKSHMI : Submitted in partial fulfillment of the requirements for qualifying Master of Business Administration (FINANCE) 1 WORKING CAPITAL MANAGEMENT OF THE L & T. TABLE OF CONTENTS S. NO. CONTENTS PAGE NO. 1. Title of the Project………………………….………………………..3 2…

    • 2244 Words
    • 9 Pages
    Satisfactory Essays
  • Good Essays

    Working Capital

    • 6509 Words
    • 27 Pages

    INTRODUCTION WORKING CAPITAL MANAGEMENT 1. Introduction 2. Need of working capital 3. Gross working capital 4. Net working capital 5. Determinants of working capital Working capital management Working capital management is concerned with the problems arise in attempting to manage the current assets,the current liabilities and the inter relationship that exist between them. The term current assets refers to those assets which inordinary course of business can be,or…

    • 6509 Words
    • 27 Pages
    Good Essays
  • Powerful Essays

    Capital Structure

    • 18297 Words
    • 74 Pages

    Strategies Group January 2006 Corporate Capital Structure Authors Henri Servaes Professor of Finance London Business School The Theory and Practice of Corporate Capital Structure Peter Tufano Sylvan C. Coleman Professor of Financial Management Harvard Business School Editors James Ballingall Capital Structure and Risk Management Advisory Deutsche Bank +44 20 7547 6738 james.ballingall@db.com Adrian Crockett Head of Capital Structure and Risk Management Advisory, Europe & Asia…

    • 18297 Words
    • 74 Pages
    Powerful Essays