technical and fundamental analysis of sbi

Topics: Bank, Technical analysis, Banks of India Pages: 37 (4856 words) Published: December 18, 2013
Chapter- 1 INTRODUCTION

1.1 Company Profile
State Bank of India is the largest state-owned banking and financial services company in India. The Bank provides banking services to the customer. In addition to the banking services, the Bank through their subsidiaries, provides a range of financial services, which include life insurance, merchant banking, mutual funds, credit card, factoring, security trading, pension fund management and primary dealership in the money market. The Bank operates in four business segments, namely Treasury, Corporate/ Wholesale Banking, Retail Banking and Other Banking Business. The Treasury segment includes the investment portfolio and trading in foreign exchange contracts and derivative contracts. The Corporate/ Wholesale Banking segment comprises the lending activities of Corporate Accounts Group, Mid Corporate Accounts Group and Stressed Assets Management Group. The Retail Banking segment consists of branches in National Banking Group, which primarily includes personal banking activities, including lending activities to corporate customers having banking relations with branches in the National Banking Group. SBI provides a range of banking products through their vast network of branches in India and overseas, including products aimed at NRIs. The State Bank Group, with over 16,000 branches, has the largest banking branch network in India. The State bank of India is the 10th most reputed company in the world according to Forbes. The bank has 156 overseas offices spread over 32 countries.

In May 2010, the Bank selected consortium of Elavon Incorporation, USA and Visa International, USA as their joint venture (JV) partner for Merchant Acquiring Business. They set up a wholly owned subsidiary, namely SBI Payment Services Pvt Ltd for conducting Merchant Acquiring Business. In August 2010, State Bank of Indore was amalgamated with the Bank as per the scheme of amalgamation approved by the Central Board. During the year 2010-11, the Bank introduced 2 new products, namely 'PushpaUllas' and 'Arthias Plus' on pilot basis. They made substantial progress in establishing itself as a leading PE fund player of the country. Also, they also signed a Joint Venture agreement with State General Reserve Fund (SGRF) of Sultanate of Oman, a sovereign entity, to set up a general purpose private equity fund with an initial corpus of USD 100 mn, expandable further to USD 1.5 bn. During the year, the Bank opened 576 new branches besides merger of 470 branches of erstwhile State Bank of Indore. Also, they opened 14 foreign offices during the year, taking the total to 156. In July 1, 2010, the Bank launched their 'Green Channel Counter' at select branches across the country. In General Insurance business, the Bank launched limited operations in April 2010 for the Corporate and Mid Corporate customers based at Mumbai, and it was expanded to six other major locations in July 2010. In the Retail segment, the Bank launched their Long Term Home Insurance business at Mumbai in October 2010, which was gradually extended to cover 56 RACPCs and RASMECCs. General Insurance SME business was launched on a pilot basis in Mumbai and Chennai in February 2011. During the first quarter of the financial year 2011-12, the Government of India issued the 'Acquisition of State Bank of 1

India Commercial & International Bank Ltd. vide notification dated July 29, 2011. Consequent to the said notification, the undertaking of State Bank of India Commercial & International stands transferred to and vest in State Bank of India with effect from July 29, 2011.

Peer Comparison
Company

P/E
P/BV
Market Cap
EV/EBIDTA ROE ROCE D/E
(TTM) (TTM)
(Rs. in Cr.)
(x)
(%) (%)
(x)
(x)
(x)

St Bk of India

112,974.39

8.31

1.14

14.51

15.4

0.0

0.00

Bank of Baroda

23,838.84

5.23

0.75

15.30

15.1

0.0

0.00

Punjab
Natl.Bank

17,199.85

3.60

0.55

12.68

16.5

0.0

0.00

Bank of...

References: indiainfoline/sbi. (2013, october 16). Retrieved from indiainfoline.com.
Chowdhury, S. (January 2011). Effect of Financial Crisis in Efficiency and Strategic
Homogeneity
Das, A. (November 2009). Financial Deregulation and Profit Efficiency. Mumbai:
Massachusetts Institute of Technology.
Gulati, R. (2011). Estimation of technical, pure technical and scale efficiencies of
Indian banks
Kumar, S. (2008). Warner College: Sage Publications.
moneycontrol/sbi/technicalanalysis. (n.d.). Retrieved october 16, 2013, from
moneycontrol.com.
Piyush Kumar Singh, P. V. (2013). Measuring Technical Efficiency of Indian Banking
Sector
Reddy, P. T. (2013). Efficiency Evaluation of State Bank of India . International
Journal of Statistics and Analysis, 18.
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