1

PROJECT REPORT
ON
COMPARATIVE STUDY OF FINANCIAL PERFORMANCE OF STATE BANK OF
INDIA AND BANK OF BARODA

Dr. Gaur Hari Singhania Institute of Management and Research








Dr. Gaur Hari Singhania Institute Of Management And Research















Submitted to:
Institute mentor
Director Sir

Submitted by:
Jayati Poddar
Roll No. 1340
Sec- A
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DECLARATION

I, Jayati Poddar studying in Dr. Gaur Hari Singhania Institute Of Management and Research do
hereby declare that this project relating to the study of ratio analysis and the title Comparative
Study Of Financial Performance Of State Bank Of India And Bank Of Baroda has been
prepared by me after undergoing the study as part of the PGDM program of GHS-IMR.


I, express a thanks to my Institute mentor- Prof. Prithvi Yadav Sir, Director of GHS-IMR for his
support in the project.

I, further declare that this project work is the outcome of my efforts and not a replica of any other
report/work submitted to any University/ Boards.





Name of Student: Jayati Poddar
Place: Kanpur














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ACKNOWLEDGEMENT

I express my gratitude to Prof. Prithvi Yadav sir, Director
Of GHS-IMR for providing me an opportunity to undergo summer training. And also for those
who have guided and inspired me in completing this study. I would like to express my deep
sense of gratitude to our Institute mentor Prof. Prithvi Yadav Sir for giving me support and
helping me during my project study.


I would like to express my gratitude to my institute guide Prof. Prithvi Yadav sir for his
constant encouragement and guidance without the task would not have been completed.




Last but not the least I would like to thank my parent and friends for their support.




THANKYOU ALL
Jayati Poddar











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PREFACE

In any organization, the two important financial statements are the Balance Sheet and Profit &
Loss Account of the business. Balance Sheet is a statement of financial position of an enterprise
at a particular point of time. Profit & Loss account shows the net profit or net loss of a company
for a specified period of time. When these statements of the last few year of any organization are
studied and analyzed, significant conclusions may be arrived regarding the changes in the
financial position, the important policies followed and trends in profit and loss etc. Analysis and
interpretation of financial statement has now become an important technique of credit appraisal.
The investors, financial experts, management executives and the bankers all analyze these
statements. Though the basic technique of appraisal remains the same in all the cases but the
approach and the emphasis in the analysis vary. A banker interprets the financial statement so as
to evaluate the financial soundness and stability, the liquidity position and the profitability or the
earning capacity of borrowing concern. Analysis of financial statements is necessary because it
helps in depicting the financial position on the basis of past and current records. Analysis of
financial statements helps in making the future decisions and strategies. Therefore it is very
necessary for every organization whether it is a financial or manufacturing, to make financial
statement and to analyze it.












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Table of content
Chapter No. Particulars Page no.
Acknowledgement 3
Preface 4
1 Introduction of banking 6-18
2 Company Profile 19-61
State bank of India
Bank of Baroda
3 Research methodology 83-85
4 Financial Analysis 86-96
Ratio analysis
5 Financial comparative
analysis
97-104
6 Findings, suggestions and conclusions 105-112
7 References 113















6



















INTRODUCTION OF BANKING






7




DEFINITION OF BANK
Banking Means "Accepting Deposits for the purpose of lending or Investment of deposits of
money from the public, repayable on demand or otherwise and withdraw by cheque, draft or
otherwise."
- Banking Companies (Regulation) Act,1949

ORIGIN OF THE WORD BANK:-
The origin of the word bank is shrouded in mystery. According to one view point the Italian
business house carrying on crude from of banking were called banchi bancheri" According to
another viewpoint banking is derived from German word "Branck" which mean heap or mound.
In England, the issue of paper money by the government was referred to as a raising a bank.

ORIGIN OF BANKING :
Its origin in the simplest form can be traced to the origin of authentic history. After recognizing
the benefit of money as a medium of exchange, the importance of banking was developed as it
provides the safer place to store the money. This safe place ultimately evolved in to financial
institutions that accepts deposits and make loans i.e., modern commercial banks.


Banking system in India

Without a sound and effective banking system in India it cannot have a healthy economy.The
banking system of India should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factors.
For the past three decades India's banking system has several outstanding achievements to its
credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or
INTRODUCTION OF BANKING
8

cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of
the country. This is one of the main reasons of India's growth process.

HISTORY OF BANKING IN INDIA

Banking in India has its origin as early or Vedic period. It is believed that the transitions from
many lending to banking must have occurred even before Manu, the great Hindu furriest, who
has devoted a section of his work to deposit and advances and laid down rules relating to the rate
of interest. During the mogul period, the indigenous banker played a very important role in
lending money and financing foreign trade and commerce.
During the days of the East India Company it was the turn of agency house to carry on the
banking business. The General Bank of India was the first joint stock bank to be established in
the year 1786. The other which followed was the Bank of Hindustan and Bengal Bank. The Bank
of Hindustan is reported to have continued till 1906. While other two failed in the meantime. In
the first half of the 19th century the East India Company established there banks, The bank of
Bengal in 1809, the Bank of Bombay in 1840 and the Bank of Bombay in1843. These three
banks also known as the Presidency banks were the independent units and functioned well.
These three banks were amalgamated in 1920 and new bank, the Imperial Bank of India was
established on 27th January, 1921.
With the passing of the State Bank of India Act in 1955 the undertaking of the Imperial Bank of
India was taken over by the newly constituted SBI. The Reserve Bank of India (RBI) which is
the Central bank was established in April, 1935 by passing Reserve bank of India act 1935. The
Central office of RBI is in Mumbai and it controls all the other banks in the country.
In the wake of Swadeshi Movement, number of banks with the Indian management were
established in the country namely, Punjab National Bank Ltd., Bank of India Ltd., Bank of
Baroda Ltd., Canara Bank. Ltd. on 19
th
July 1969, 14 major banks of the country were
nationalized and on 15
th
April 1980, 6 more commercial private sector banks were taken over by
the government.
The first bank in India, though conservative, was established in 1786. From 1786 till today,the
journey of Indian Banking System can be segregated into three distinct phases. They areas
mentioned below:
Early phase from 1786 to 1969 of Indian Banks

Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.

9

New phase of Indian Banking System with the advent of Indian Financial & Banking
Sector Reforms after 1991.

Phase I
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and
Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay
(1840) and Bank of Madras (1843) as independent units and called it Presidency Banks.
These three banks were amalgamated in 1920 and Imperial Bank of India was established which
started as private shareholders banks, mostly Europeans shareholders.
In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National
Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of
India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore
were set up. Reserve Bank of India came in 1935.
During the first phase the growth was very slow and banks also experienced periodic failures
between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the
functioning and activities of commercial banks, the Government of India came up with The
Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per
amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive
powers for the supervision of banking in India as the Central Banking Authority.
During those days public has lesser confidence in the banks. As an aftermath deposit
mobilization was slow. Abreast of it the savings bank facility provided by the Postal department
was comparatively safer. Moreover, funds were largely given to traders.
Phase II
Government took major steps in this Indian Banking Sector Reform after independence. In1955,
it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially
in rural and semi-urban areas. It formed State Bank of India to act as the principal agent of RBI
and to handle banking transactions of the Union and State Governments all over the country.
Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th
July,1969, major process of nationalization was carried out. It was the effort of the then Prime
Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country was
nationalized.
Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with
seven more banks. This step brought 80% of the banking segment in India under Government
ownership.
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The following are the steps taken by the Government of India to Regulate Banking
Institutions in the Country: 1949: Enactment of Banking Regulation Act.
1955: Nationalization of State Bank of India.
1959: Nationalization of SBI subsidiaries.
1961: Insurance cover extended to deposits.
1969: Nationalization of 14 major banks.
1971: Creation of credit guarantee corporation.
1975: Creation of regional rural banks.
1980: Nationalization of seven banks with deposits over 200 crore.

After the nationalization of banks, the branches of the public sector bank India rose to
approximately 800% in deposits and advances took a huge jump by 11,000%.
Banking in the sunshine of Government ownership gave the public implicit faith and immense
confidence about the sustainability of these institutions.
Phase III
This phase has introduced many more products and facilities in the banking sector in its reforms
measure. In 1991, under the chairmanship of M Narasimhama, a committee was set up by his
name which worked for the liberalization of banking practices. The country is flooded with
foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to
customers. Phone banking and net banking is introduced. The entire system became more
convenient and swift. Time is given more importance than money. The financial system of India
has shown a great deal of resilience. It is sheltered from any crisis triggered by any external
macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible
exchange rate regime, the foreign reserves are high, the capital account is not yet fully
convertible, and banks and their customers have limited foreign exchange exposure.
BANKS IN INDIA

In India the banks are being segregated in different groups. Each group has their own benefits
and limitations in operating in India. Each has their own dedicated target market. Few of them
only work in rural sector while others in both rural as well as urban. Many even are only catering
in cities. Some are of Indian origin and some are foreign players.

All these details and many more is discussed over here. The banks and its relation with the
customers, their mode of operation, the names of banks under different groups and other such
useful informations are talked about.
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One more section has been taken note of is the upcoming foreign banks in India. The RBI has
shown certain interest to involve more of foreign banks than the existing one recently. This step
has paved a way for few more foreign banks to start business in India.


BANKING STRUCTURE IN INDIA

SCHEDULED BANKS IN INDIA

(1) Scheduled Commercial Banks

Public Sector Banks

Private Sector
Banks

Foreign Banks In
India

Regional Rural
Banks

(26) (25) (29) (95)
Nationalized
Bank
Other Public
Sector Banks
(IDBI)
SBI And Its
Associates

Old Private
Banks
New Private
Banks


(2) Scheduled Cooperative Banks

Scheduled Urban Cooperative Banks

Scheduled State Cooperative Banks
Public Sector Banks
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Public sector banks are those banks which are owned by the Government. The Govt. runs these
Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6 banks were also
nationalized. Therefore in 1980 the number of nationalized bank 20. At present there are total 26
Public Sector Banks in India (As on 26-09-2009). Of these 19 are nationalised banks, 6(STATE
BANK OF INDORE ALSO MERGED RECENTLY) belong to SBI & associates group and 1
bank (IDBI Bank) is classified as other public sector bank. Welfare is their primary objective.

Nationalized banks

Allahabad Bank
Andhra Bank
Bank Of Baroda
Bank Of India
Bank Of Maharastra
Canara Bank
Central Bank Of India
Corporation Bank
Dena Bank
Indian Bank
Indian Overseas Bank
Oriental Bank Of
Commerce
Punjab & Sind Bank
Punjab National Bank
Syndicate Bank
UCO Bank
Union Bank Of India
United Bank Of India
Vijaya Bank
Other
Public
Sector
Banks

IDBI
(Industrial
Development
Bank Of
India)Ltd.
SBI & its Associates

State Bank of India

State Bank of Hyderabad

State Bank of Mysore

State Bank of Patiala

State Bank of Travancore

State Bank of Bikaner And Jaipur



(State Bank of Saurastra merged with
SBI in the year 2008 and State Bank of
Indore In 2010)


Private Sector Banks
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These banks are owned and run by the private sector. Various banks in the country such as ICICI
Bank, HDFC Bank etc. An individual has control over there banks in preparation to the share of
the banks held by him.
Private banking in India was practiced since the beginning of banking system in India. The first
private bank in India to be set up in Private Sector Banks in India was IndusInd Bank. It is one of
the fastest growing Bank Private Sector Banks in India. IDBI ranks the tenth largest development
bank in the world as Private Banks in India and has promoted world class institutions in India.
The first Private Bank in India to receive an in principle approval from the Reserve Bank of
India was Housing Development Finance Corporation Limited, to set up a bank in the private
sector banks in India as part of the RBI's liberalization of the Indian Banking Industry. It was
incorporated in August 1994 as HDFC Bank Limited with registered office in Mumbai and
commenced operations as Scheduled Commercial Bank in January 1995. ING Vysya, yet another
Private Bank of India was incorporated in the year 1930
Private sector banks have been subdivided into following 2 categories:-
Old Private Sector Banks
Bank of Rajasthan Ltd.
Catholic Syrian Bank Ltd.
City Union Bank Ltd.
Dhanalakshmi Bank Ltd.
Federal Bank Ltd.
ING Vysya Bank Ltd.
Jammu and Kashmir Bank Ltd.
Karnataka Bank Ltd.
Karur Vysya Bank Ltd.
Lakshmi Vilas Bank Ltd.
Nainital Bank Ltd.
Ratnakar Bank Ltd.
SBI Commercial and International
Bank Ltd.
South Indian Bank Ltd.
Tamilnad Mercantile Bank Ltd.
United Western Bank Ltd.

New Private Sector Banks

Bank of Punjab Ltd. (since merged
with Centurian Bank)
Centurian Bank of Punjab (since
merged with HDFC Bank)
Development Credit Bank Ltd.
HDFC Bank Ltd.
ICICI Bank Ltd.
IndusInd Bank Ltd.
Kotak Mahindra Bank Ltd.
Axis Bank (earlier UTI Bank)
Yes Bank Ltd.



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Foreign Banks In India

ABN AMRO Bank N.V.
Abu Dhabi Commercial
Bank Ltd
American Express Bank
Antwerp Diamond Bank
Arab Bangladesh Bank
Bank International
Indonesia
Bank of America
Bank of Bahrain & Kuwait
Bank of Ceylon
Bank of Nova Scotia
Bank of Tokyo Mitsubishi
UFJ
Barclays Bank
BNP Paribas
Calyon Bank
ChinaTrust Commercial
Bank
Citibank
DBS Bank
Deutsche Bank


HSBC (Hongkong &
Shanghai Banking
Corporation)
JPMorgan Chase Bank
Krung Thai Bank
Mashreq Bank
Mizuho Corporate Bank
Oman International Bank
Shinhan Bank
Socit Gnrale
Sonali Bank
Standard Chartered Bank
State Bank of Mauritius


Cooperative banks in India

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The Cooperative bank is an important constituent of the Indian Financial System, judging by the
role assigned to co operative, the expectations the co operative is supposed to fulfil, their
number, and the number of offices the cooperative bank operate. Though the co operative
movement originated in the West, but the importance of such banks have assumed in India is
rarely paralleled anywhere else in the world. The cooperative banks in India plays an important
role even today in rural financing. The businesses of cooperative bank in the urban areas also has
increased phenomenally in recent years due to the sharp increase in the number of primary co-
operative banks.
Co operative Banks in India are registered under the Co-operative Societies Act. The cooperative
bank is also regulated by the RBI. They are governed by the Banking Regulations Act 1949 and
Banking Laws (Co-operative Societies) Act, 1965.

Rural banks in India
Rural banking in I ndia started since the establishment of banking sector in India. Rural Banks
in those days mainly focussed upon the agro sector. Regional rural banks in India penetrated
every corner of the country and extended a helping hand in the growth process of the country.

SBI has 30 Regional Rural Banks in India known as RRBs. The rural banks of SBI is spread in
13 states extending from Kashmir to Karnataka and Himachal Pradesh to North East. The total
number of SBIs Regional Rural Banks in India branches is 2349 (16%). Till date in rural banking
in India, there are 14,475 rural banks in the country of which 2126 (91%) are located in remote
rural areas.

Apart from SBI, there are other few banks which functions for the development of the rural areas
in India.
Few of them are as follows.

Haryana State Cooperative Apex Bank Limited

The Haryana State Cooperative Apex Bank Ltd. commonly called as HARCOBANK plays a
vital role in rural banking in the economy of Haryana State and has been providing aids and
financing farmers, rural artisans, agricultural labourers, entrepreneurs, etc. in the state and giving
service to its depositors.

NABARD

National Bank for Agriculture and Rural Development (NABARD) is a development bank in the
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sector of Regional Rural Banks in India. It provides and regulates credit and gives service for the
promotion and development of rural sectors mainly agriculture, small scale industries, cottage
and village industries, handicrafts. It also finance rural crafts and other allied rural economic
activities to promote integrated rural development. It helps in securing rural prosperity and its
connected matters.

Sindhanur Urban Souharda Co-operative Bank

Sindhanur Urban Souharda Co-operative Bank, popularly known as SUCO BANK is the first of
its kind in rural banks of India. The impressive story of its inception is interesting and inspiring
for all the youth of this country.


United Bank of India

United Bank of India (UBI) also plays an important role in regional rural banks. It has expanded
its branch network in a big way to actively participate in the developmental of the rural and
semi-urban areas in conformity with the objectives of nationalisation.

Syndicate Bank

Syndicate Bank was firmly rooted in rural India as rural banking and have a clear vision of future
India by understanding the grassroot realities. Its progress has been abreast of the phase of
progressive banking in India especially in rural banks.

Fact Files of Banks in India

The first Bank in India to be given an ISO certification.


Canara Bank

The first Bank in Northern India to get ISO 9002 certification
for their selected branches.


Punjab and Sind
Bank
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The first Indian Bank to have been started solely with Indian capital.


Punjab National
Bank

The first among the Private Sector Banks in Kerala to become Scheduled
Bank in 1946 under the RBI act.


South Indian Bank

Indias oldest,largest and the most successful commercial bank offering the
widest possible rang of domestic,international and NRI products and
services,through its vast network in India and overseas.


State Bank of India

Indias second largest Private Sector Bank and is now the largest scheduled
commercial bank in India.


The Federal Bank
Limited

Bank which started as Private Shareholders Banks,mostly European
shareholders.


Imperial Bank of
India

The first Indian Bank to open a branch outside India in London in 1946 and
the first to open a branch in continental Europe at Paris in 1974


Bank of India,
founded in 1906 in
Mumbai.

The oldest Public Sector Bank in India having branches all over India and
serving the customers for the last 132 years.

Allahabad Bank

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The first Indian Commercial Bank which was wholly owned and managed by
Indians.


Central Bank of
India


INDIAN BANKING INDUSTRY
The Indian banking market is growing at an astonishing rate, with Assets expected to reach
US$1 trillion by 2010. An expanding economy, middleclass, and technological innovations are
all contributing to this growth.
The countrys middle class accounts for over 320 million People. In correlation with the growth
of the economy, rising income levels, increased standard of living, and affordability of banking
products are promising factors for continued expansion.
The Indian banking Industry is in the middle of an IT revolution, Focusing on the expansion of
retail and rural banking. Players are becoming increasingly customer -centric in their approach,
which has resulted in innovative methods of offering new banking products and services. Banks
are now realizing the importance of being a big playerand are beginning to focus their attention
on mergers and acquisitions to take advantage of economies of scale and/or comply with Basel II
regulation.Indian banking industry assets are expected to reach US$1 trillion by 2010 and are
poised to receive a greater infusion of foreign capital, says Prathima Rajan, analyst in Celent's
banking group and author of the report. The banking industry should focus on having a small
number of large players that can compete globally rather than having a large number of
fragmented players.






19
















STATE BANK OF INDIA







20



STATE BANK OF INDIA
State Bank of India
Industry :Banks - Public Sector

Incorporation Year 1955
Chairman Pratip Chaudhuri
Managing Director Hemant G Contractor
Company Secretary -
Auditor B M Chatrath & Co/ Kalyaniwala & Mistry
Registered Office
State Bank Bhavan 8th Floor,
Madame Cama Road Nariman Point,
Mumbai, 400021, Maharashtra
Telephone 91-22-22883888/22022678
Fax 91-22-22855348
E-mail gm.snb@sbi.co.in
Website http://www.sbi.co.in
Face Value (Rs) 10
BSE Code 500112
BSE Group A
NSE Code SBIN
Bloomberg SBIN IN
Reuters SBI.BO
ISIN Demat INE062A01012
Market Lot 1
Listing
Ahmedabad,Chennai,Delhi,Kolkata,London,Mumbai,
NSE
Financial Year End 03
Book Closure Month May
AGM Month Jun
Registrar's Name & Address
Datamatics Financial Services, PlotNo-A-16-17 PartB, Cross
Lane MIDC, Marol Andheri (East), Mumbai - 400 093.
91-22-28213383/90/66
91-22-28369408

21


It is the largest Indian banking and financial services company (by turnover and total assets) with
its headquarters in Mumbai, India. It is state-owned. 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, Bank of Calcutta and Bank of Bombay to form Imperial Bank of India,
which in turn became State Bank of India. The government of India nationalized the Imperial
Bank of India in 1955, with the 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.
SBI provides a range of banking products through its vast network of branches in India and
overseas, including products aimed at non-resident Indians (NRIs). 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. T 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 Brand Finance and
The Economic Times in 2010. The State Bank of India is the largest of the Big Four banks of
India, along with ICICI Bank, Punjab National Bank and HDFC Bankits main competitors.
History of state bank of India:
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. They have branches of the parent in Colombo, Dhaka, Frankfurt, Hong Kong,
22

Johannesburg, London and environs, Los Angeles, Male in the Maldives, Muscat, New York,
Osaka, Sydney, and Tokyo. They have offshore banking units in the Bahamas, Bahrain, and
Singapore, and representative offices in Bhutan and Cape Town.
State Bank of India was incorporated in the year 1955. The Bank traces their ancestry to British
India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta,
making them the oldest commercial bank in the Indian Sub-continent. The Government of India
nationalized the Imperial Bank of India in the year 1955, with the Reserve Bank of India taking a
60% stake, and name was changed to State Bank of India.
In the year 2001, the SBI Life Insurance Company was started by the Bank. They are the only
Bank that have been permitted 74% stake in the insurance business. The Bank's insurance
subsidiary 'SBI Life Insurance Company' is a joint venture with Cardif S.A in which Cardif holds
26% of the stake.
During the year 2005-06, the bank introduced 'SBI e-tax' an online tax payments facility for
direct and indirect tax payment. They also launched the centralized pension processing. The
Bank made a partnership with Tata Consultancy Services for setup C-Edg Technologies and
consulting services to the banking, financial services and insurance industry. The bank was noted
as 'The most preferred bank' in a survey by TV 18 in association with AC Nielsen-ORG Marg.
Also, the Bank was voted as 'The most preferred housing loan provider' in AWAAZ consumer
awards for the year 2006.
In the customer loyalty survey 2006-07 conducted by 'Business World', the Bank was ranked
number one in all parameters of customer satisfaction, service orientation, customer care/ call
center, customer loyalty and home loans. SBI Funds was judged 'Mutual fund of the year' by
CNBC/TV-18/CRISL. The Bank introduced new products and services such as web-based
remittance, instant fund transfer, online-trading and comprehensive cash management.
During the year 2007-08, the Bank launched 965 branches all over the country. They
inaugurated a new state-of-the art Dealing Room with online connectivity to all active forex
intensive Branches at Corporate Centre in Mumbai. They launched a new product, Construction
Equipment Loan to cater to construction Companies. Also, they introduced new products such as
SBI Reverse Mortgage Loan and SBI Home Plus in the areas of Home Loans.
During the year, the RBI transferred their entire shareholding in the Bank representing 59.73%
of the issued capital of the Bank to the Government of India. The Bank acquired 92.03% of
equity of Global Trade Finance Ltd. Consequently, GTFL became a subsidiary of the Bank.
They signed an MoU with the Indian railways for installing ATMs at 682 railway stations. In
March 2008, the Bank opened their 10,000th branch and became only the second bank in the
world to have more than 10,000 branches after China's ICBC. During the year 2008-09, the
company launched Import factoring, a new product in association with SBI Factors &
Commercial Services Ltd. They increased the number of branches for retail sale of gold coins
from 250 to 518. Also, they re-launched Gold Deposit Scheme at 50 branches to mobilize gold
from domestic market for deployment as metal loans to jewellers.

During the year, the Bank opened their 11,111th Branch at Sonapur (Kamrup District) in Assam.
They introduced three new products viz., SBI Special Home Loan, SBI Happy Home Loan and
SBI Lifestyle in response to the stimulus package announced by the Government of India. Also,
they entered into an exclusive arrangement with TATA Motors for handling the booking process
of TATA 'Nano' cars. During the year, the Bank launched on their web-site an on-line
application form for registering Auto Loan enquiries and expeditiously monitoring and
23

converting these leads into Auto Loans. Also, they launched 'e-invest' for the ASBA
(applications supported by blocked accounts) to aid investors for their equity subscriptions, IPO
and Rights applications.
During the year, the Bank set up a custodial services company namely SBI Custodial Services
Pvt. Ltd., in joint venture with Societe Generale, France. They signed letter of intent for setting
up of joint venture company for undertaking General Insurance Business. Also, they divested
10% equity stake in its wholly owned subsidiary SBI Pension Fund Pvt. Ltd at cost in favour of
its subsidiaries. In October 2008, the Bank signed an MoU with State General Reserve Fund
(SGRF) of Oman, for a general purpose private equity fund.
During the year, State Bank of Saurashtra (SBS), a wholly owned subsidiary of the Bank,
amalgamated with the Bank with effect from August 13, 2008. They signed a joint venture
agreement with Insurance Australia Group for undertaking General Insurance business. Also,
they signed a joint venture agreement with Macquarie Capital Group, Australia and IFC,
Washington for setting up an Infrastructure fund of USD 3 billion for investing in various
infrastructure projects in India.
During the year 2009-10, the Bank opened 1,049 branches, out of which branches were opened
in metro and urban areas with a view to increase the Bank's reach and be more accessible to
customers. In July 2009, SBI introduced 'SBI Loan to Affluent Pensioners' enabling the
government pensioners to avail personal loans upto Rs 3 lakh.
During the year, the Bank designed a special package, the Defence Salary Package, for
personnel of the three Armed Forces i.e. the Army, Navy and Air Force who maintain their
Salary accounts with them. As of March 2010, the Bank had 12,496 branches and 21,485 Group
ATMs. In June 2009, the company increased their shareholding in Nepal SBI Bank Ltd to
55.02% and thus Nepal SBI Bank Ltd became a subsidiary of the Bank with effect from June 14,
2009.
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 'Pushpa Ullas' 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
24

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 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.


MILESTONE OF STATE BANK OF INDIA
1955 -
On 1st July State Bank of India was constituted under the State Bank
Of India Act 1955, for the purpose of taking over the undertaking and
business of the Imperial Bank of India. The Imperial Bank of India
was founded in 1921 under the Imperial Bank of India Act 1920. The Bank
transacts general banking business of every description including,
foreign exchange, merchant banking and mutual funds
1959 -
On September State Bank of India (Subsidiary Bank) Act was passed.
On October State Bank of Hyderabad become the first subsidiary of SBI.
1960 -
During this period, State Bank of Jaipur, State Bank of Bikaner,
State Bank of Indore, State Bank of Travancore, State Bank of Mysore,
State Bank Patiala and State Bank of Saurashtra became subsidiaries of the
bank.
1962 -
The Bhor State Bank Ltd was Amalgamated with the Bank bring the
Total number of minor State associated banks so amalgamated to five. A scheme for amalgamation of the
Bank of Aundh Ltd., was also approved.
On 20th August, the Unit Bank Ltd. Chennai was taken over by the Bank.
1963 -
In october Branch in London become bankers to the Indian High Commission, thereby
taking over a function till then performed by the office of RBI. Of the other business
transacted by the Branch, an important aspect was medium term loans mostly to Indian
shipping companies.
1969 -
On November 8th the Bank of Behar Ltd was amalgamated.
1972 -
A merchant banking division was set up in the central office to cater to promotional needs
of the corporate sector.
1977
During the year bank introduced the Perennial Pension Plan Scheme
Under which if the depositors make a regular monthly payment of a fixed
25

amount for a period of 84 to 132 months, they become eligible from
the 86th and 134th months respectively for getting a monthly pension of predetermined
amount forever.
In order to meet all the developmental needs of the villages
Including their social and cultural needs, the bank launched an integrated
Rural development programme, aimed at not only covering the credit needs
of agriculture and agricultural activities and village industries, but
also housing and social activities.
1980 -
Bank introduced the cash Certificate Scheme under which deposit
certificate are issued for a fixed period on payment of the issue price
specified for the respective maturity period and the face value
corresponding to the issue price plus interest compounded at
quarterly intervals is paid on maturity. The certificates are issued for the
face value of Rs 100, Rs 1000, Rs 10,000 and Rs 50,000 maturing
after 29,65,84 and 120 months.
1982 -
The Non-Resident Investment Cell was set up, which had streamlined
The working operations of the non-resident investment sections at
Important centers.
1983 -
SBI launched self employment scheme, for providing self-employment
To educated unemployed youth. Educated unemployed youths are
Encouraged to undertake self-employment ventures in industry, services and
business.
1984 -
The bank provide need-based rehabitation assistance to large and
medium sick industrial units.
1985 -
During the year, company set up a data bank of sick units available
for taken over by healthy units.With effect from 26th August, the Bank of Cochin Ltd
with 108 branches was also amalgamated with the Bank.
(i) All shares in the Capital of the Imperial Bank of India was
vested in the RBI. The SBI was registered with an Authorised capital of
Rs.20 crores, and an issued and paid up capital of Rs.562,50,000 divided
into 562,500 shares of Rs.100 each.
(ii) Every person who on the 30th June, 1955, was registered as a
holder of shares in the Imperial Bank of India was paid by the
Reserve Bank of India.
44,37,500 No. of shares issued at a premium of Rs 160 per share.
1986 -
At the end of the year 324 sick units with an outstanding of Rs 1069
crores were assisted. Of these, 107 units were considered viable and
60 from them were placed under regular nursing programme.
On 1st August a new subsidiary named SBI Capital Market was
functioning independently, took up leasing business and certain other new
26

services.
100,00,00 No. of shares issued at a prem. of Rs 160 per share.
1987 -
Up to the end of the year the bank had sponsored 30 Regional Rural
Banks covering 66 backward and underbanked districts in the country.
In terms of deployment, the advances portfolio of overseas offices
rose to Rs 5,767 crores. Investments in inter-bank money markets and
also in prime securities amounted to Rs 2,670 crores by the end of the
year.
1988 -
During the year bank initiated UPTECH an Industrial Technology Group
to direct and guide programmes aimed at facilitating technology
upgradation.
Also a scheme to develop enterpreneurship among woman under the name
Stree Shakti was launched. Several concessions in respect of margin
and and rate of interest have been built into the package. Three
pilot programmes were launched at Chennai, Calcutta, and Hyderabad.
On 20th September, the bank inaugurated `SBINET,' an integrated
communication project aimed at improving customer service,
operational efficiency and administrative convenience. The network has been
designed to handle voice, fax data and manages through the trunk
routes and exchanges in important centres.
The bank sponsored 30 RRB's covering 66 divisions in the country.
branches were opened raising the branch network to 2,306.
1989 -
SBICAP, in their capacity as Trustee and Manager of Mutual Fund,
launched two scheme viz., Mangnum Monthly Income Scheme 1989 and
Magnum Tax Service Scheme 1990.
During the same period SBI in association with Morgan Stanley Asset
Management Inc. of USA, launched the India Magnum Fund.
1990 -
New products launched during the year included a Regular Income
Scheme, offering an assured return in excess of 12% and the first Pure
Growth Scheme aimed at capital appreciation. A Second offshore fund of US
$ 12 million called Asian Convertible and Indian Fund was launched in
association with Asian Development Bank, Manila.
During Kharif 1990, the bank introduced an agricultural credit card,
known as SBI Green Card to give greater liquidity and flexibility to
farmers in procuring agricultural inputs. The scheme was introduced
on a pilot basis in 125 intensive centre branches.
As at on 31st March, SBIMF had over 3,40,000 Indian investors and
about Rs 475 crores by way of investible domestic funds.
50,00,000 No. of shares issued at a prem. of Rs 160 per share.
1991 -
During February the bank set up a new subsidiary called the SBI
Factors and Commercial Serviced Pvt. Ltd. for rendering factoring services
27

to the industrial and commercial units in Western India.
1992 -
The bank sponsored 30 RRBs with a network of 3189 offices covering
102 backward and under banked districts of the country. A sum of Rs
15.25 crores was contributed towards the share capital of the RRBs.
During the period bank intoduced `Stockinvest' scheme. Also
introduced a `Gyan Jyoti' that replaced earlier education loan schemes and
offers substantial augmented assistance to students pursuing higher
studies.
Moreover dedicated NRI branches equipped with State-of-the-art
technology was set up at Mumbai and Delhi to cater to the special
needs of NRI residents.
1993 -
During the year as a part of its overseas expansion the bank
established representative office in Tashkent.
During December, the bank issued 124,000,000 equity shares of Rs.10
each for cash at a premium of 90 per share of which 245,00,000
shareseach were reserved for allotment on a preferential basis to Indian
Financial Institutions and Indian Mutual Funds. Balance issued to
thepublic.
Simultaneously it came out with another issue of 50,00,000 12%
unsecured redeemable floating rate bonds in the nature of promisory
notes of the face value of 1000 each. Oversubscription upon a
furtheramount of Rs 500 crores (in all Rs 1000 crores) was to be allowed.
Theface value of each bond would be redeemed at par at the expiry of 10
years from the date of allotment. In the event that the State Bank
decides to exercise its option to call up the bonds they would be
redeemed at the rate of 5% at the end of 5th year, at 3% at the end
of7th year and 1% at the end of 9th year.
It was proposed to issue 1200,00,000 right equity shares of Rs.10
eachat a premium of Rs.50 per share in the proportion of 3:5. Also
another120,00,000 equity shares of Rs.10 each were to be issued at a
premiumof Rs.50 per share to employees on an equitable basis.
250 sick units with the bank were referred to the BIFR including 31
public sector units. Approved rehabilitation packages being
implemented in 85 units and 41 have been recommended to be wound up.
The bank continued to be appointed as the operating agency and
rehabilitation packages were submitted to BIFR in 48 cases.
Equity shares subdivided. 1418,50,000 No. of Equity Shares of Rs.
10each issued at a prem. of Rs 90 per share to the public. Another
1319,78,726 shares of Rs 10 each offered at a prem. of Rs 90 per
shareon Rights basis and to employees.
1994 -
358 sick units with the bank were referred to the BIFR including 55
public sector units. Approved rehabilitation packages implemented
in87 units.
28

1,80,463 No. of Shares kept in abeyance were issued.
1995 -
351 sick units with the bank were referred to the BIFR including 66
public sector units. Approved rehabilitation packages implemented
in112 units.
683 No. of shares kept in abeyance were allotted.
1996 -
On 3rd October the Bank Issued 261,45,000 GDRs amounting to
5,22,90,000equity shares. 1 GDR is issued to 2 equity shares. The issue price
ofGDR was US $ 14.15 per GDR.
1997 -
Shares issued to employees of the bank bearing distinctive numbers
46,26,00,001 to 47,46,00,000 will not be good delivery. The rights
issue was for 12 crore equity shares at a premium of Rs.50
aggregatingRs.720 crore in addition to a further issue of 1.2 crore equity
sharesof Rs.10 at a premium of Rs.50 aggregating Rs.72 crore for State
Bankemployees. The price of the rights had been Rs.60 per share.
After SBI Capital Markets, Manila-based Asian Development bank will
pick up 15 per cent equity stake in the new stock broking subsidiary
ofState Bank of India to be made operational by mid-1997. The balance
85per cent will be subscribed to by SBI.
SBI Securities Ltd the 100 per cent stockbroking subsidiary of SBI,
hasrecently received the much-awaited letter of incorporation from the
Registrar of Companies. Following this, both SBI and ADB will pick
up their respective shares in the new stockbroking firm. SSL will have
anequity base of Rs.50 crore.
The State Bank of India has tied up with GE Capital to float a
venturein Mumbai. State Bank signed the memorandum of understanding with
GE Caps in March.
State Bank will tie up with either VISA or Mastercard or even both
forthe franchise network. GE Caps through this joint venture will be
imparting technology, credit card expertise and payment card
mechanism.
The Reserve bank of India has directed the SBI to set up a 0
million stand-by facility for the Indian oil corporation.
State Bank of India (SBI) signed an agreement with the National
Securities Depository Ltd (NSDL) for dematerialisation of its
shares.
Besides, SBI has also become an equity stake holder in NSDL to the
extent of 4.76%.
SBI Commercial and International Bank, has become the country's
firstpublic sector bank to introduce optical disk (OD) facilities for
datastorage.
1998 -
State Bank of India will kick-start its credit card business on July
1by floating two joint ventures with GE Capital. The largest
29

financial intermediary in the country will sign the joint venture agreement
withGE Caps in the last week of January.
The State Bank of India on Jan 27 kicked off its foray into the
payment cards business with a joint venture agreement with US-based
Financial services giant, General Electric Capital Corporation (GE Capital).
State Bank of India (SBI) on June 24 signed an exclusive agreement
with the world's largest payment system - Visa International - for
Payment cards in India. The agreement was signed in Mumbai between the SBI
managing director, Mr. O P Sethia, and the general manager and
executivevice president (South East Asia) of Visa, Mr James G Murray.
1999 -
State Bank of India (SBI) has bagged the mandate to syndicate the $
120million loan for the National Thermal Power Corporation (NTPC).
The State Bank of India (SBI) proposes to take up the life insurance
and general insurance business once the sector is opened up.
State Bank of India has tied up with its associate banks to market
theSBI Card. The SBI has tied up with State Bank of Patiala in
Chandigarhand State Bank of Mysore in Bangalore to help market its credit
card.
SBI proposes to introduce a value-added service for cardholders
wherebythe credit card can also be used as an ATM card.
The State Bank of India will tie up with international investment
banker Credit SuisseFirst Boston and three domestic public sector
banksto form a gold assaying venture.
The State Bank of India (SBI) has decided to take over SBI Home
Finance(SBIHF), with its assets and liabilities. Having the largest stake,
SBI has been weighing various options for bailing out the joint
venturecompany which has slipped into huge losses.
The State Bank of India (SBI) has signed up with Central Depository
Services (I) (CDSIL) for the dematerialisation of its shares.
SBI shares have already been admitted as security with National
Securities Depository (NSDL). Besides, SBI also has a stake (Rs 10
cr)in the equity of CSDL.
According to an agreement entered into with the development bank,
StateBank of India (SBI) was to reduce its stake in its investment
bankingsubsidiary to below 50 per cent by March 31.
The State Bank of India (SBI) has entered into an agreement with
Moody's Investor Service and Icra, under which SBI will pick up
Moody's11 per cent stake in Icra in case the global rating firm wants to
getout of its investment in India.
State Bank of India (SBI) has taken the lead in `convenience
banking'by becoming the first public sector bank to offer its `savings bank'
account holders the benefits of fixed deposits (higher interest
rates)and current accounts (overdraft facility).
2000 -
The Bank has embarked upon the expansion of its ATM network in the
30

twincities of Hyderabad and Secunderfabad.
The Bank has become the first government owned financial institution
tojoin the rank of companies declaring interim dividend.
The Bank has proposed to come out with an issue under private
placementof unsecured, non-convertible, subordinated bonds in the nature of
promissory notes of Rs 1 lakh each aggregating Rs 600 crores with an
option to retain oversubscription of up to Rs 40 crores.
The Bank launched the Metal (Gold) Loan Scheme in Coimbatore. This
is the third scheme to be introduced by SBI.
SBI is also forming a subsidiary - SBI Gold and Precious Metals Pvt.
Ltd. with 50 per cent equity participation.
Mr. Vepa Kamesam, Deputy Managing Director, has been appointed as
Managing Director with effect from 1st June.
SBI board cleared the setting up of a separate subsidiary forinformation technology.
KC Raut has recently taken charge as general manager at State Bank
ofIndia, Chennai.
The Bank has become the first public sector bank to offer fixed-ratehome loans.
The State Bank of India has tied up with State Bank of Mysore tolaunch
co-branded credit cards as part its strategy to collaborate withassociate banks to expand its cardholder base.
Central Depository Services (India) Ltd has signed an agreement with
State Bank of India as its Depository participant.
State Bank of India and the Exim Bank of the US have signedamemorandum
of understanding, involving 0 million, to support the small and
medium-sized ndian companies to purchase US goods and services.
Mr. Suresh Kumar Mehra, Workmen Directors, ceased to be a member of
theCentral Board of the bank effect from October 1, due to his
retirementat the close of the business on September 30.
The Bank has launched an international credit cards for doctors, the frist of its kind in the country, offering
facilities including specialdiscounts on medical equipment and personal
loans from GE countrywide.
The State Bank of India has introduced a new scheme to boostexports.
The CRISIL has assigned a triple-A (AAA) rating to the State Bank of
India's Rs 3,000 crore bonds programme.
The Bank have decided to close down its fully-owned foreignsubsidiary
- SBI European Bank Ltd., in London.
Mr. S. Mukerji, Managing Director, of the bank retired from the bankon 30th of November.
State Bank of India Mutual Fund has launched the Magnum Gilt Fund,dedicated to
investing in government securities.
2001 -
The Bank has signed an MoU with Cardif S.A. for the bank's lifeinsurance business.
The Bank has introduced Voluntary Retirement Scheme for eligible
employees, open from the 15th January 2001 to the 31st January 2001.
The Bank has incorporated a subsidiary `SBI Life Insurance CompanyLtd.,' for doing life insurance
business. The Bank will install 10 more Automated Teller Machines in the
north-eastern region in addition to the one already commissioned at Guwahati.
State Bank of India launched three more ATMs i n Bangalore.
31

Mr Y Radhakrishnan has been promoted to the post of managingdirector
of State Bank of India. SBI Cards has set up a special insurance cell in Ahmedabad for
facilitating the claims of SBI cardholders affected by the tragic earthquake in Gujarat.
SBI has assigned the Delhi-based HCL Com Net to provide it ATMteller
inter-connectivity which could involve investments running into
several hundred crores.
SBI chief general manager Madhav M Mehta, who is currently theoperational head in
Gujarat, has been transferred to its corporate office in Mumbai as chief general manager
(CGM).
July 3- Announces the launch of the SBI International card and theSBI
Global Card for global travelers in India. SBI International cards and
SBI Gold Cards would be accepted at over 20 million Visa outletsworldwide and one lakh
outlets in India. State Bank of India has embarked upon an ambitious Rs 800-crore
technology upgradation programme. The bank has appointed KPMG, aconsultant in
computer technology, to provide inter connectivitynetworking to the computerised branches
and also to the ATMs acrossthecountry enabling its customers to transact any kind of
business from anywhere.
State Bank of India was presented the award for JD Power AsiaPacifics2001 India Sales Satisfaction Index
(SSI) and Consumer FinancingSatisfaction (CFS)
State Bank of India has added three more ATMs to its network. ThenewATMs were
installed at SBI's Andheri (west),Goregaon (east),and Borivili (east) branches on September
22. State Bank Of India (SBI) has informed BSE that Shri K.J.Udeshi, ED,RBI has been
nominated on the Central Board of the Bank as nomineeofRBI in place of Dr.Y.V.Reddy,
w.e.f. September 22, 2001 under Sec.19(f)of SBI Act.
State Bank of India has slashed the interest rate on home loans by 0.5per cent to 12 per cent, effective from
September 15.
IN A significant move, the State Bank of India has decided todistance itself from its
subsidiaries - SBI Capital Markets, SBI Gilts, SBIAMCand State Bank of Credit and
Commerce International. They will havethe autonomy, independent chairmen and external executives at thesenior
management level at market-related salaries. At present, the
SBI chairman is the ex-officio chairperson of all the subsidiaries,including the associate
banks.
The new scheme will be aimed only at the award staff, a categorythatwas included with
officers in the January 2001 voluntary retirementscheme.
SBI Cards on July 3, announced the launch of the SBI Internationalcardand the SBI Global
Card for global travelers in India.
- VRS implemented in which around 21,000 employees, includingofficers, were permitted
to retire
- The Bank has crossed another milestone by making a successfulforay
into insurance. SBI is the only Bank to have been permitted a 74%
stake
in the insurance business. The Bank's insurance subsidiary, SBI Life
Insurance Company, a joint venture with the Bank holding 74% and
Cardif S.A., the Joint venture partner, the balance 26%, was incorporated to
undertake life insurance and pension business. Cardif S.A. is a
wholly-owned subsidiary of BNP-Paribas, which is the largest bank in
32

France and one of the top ten banks in the world. Cardif S.A. is the
largest bancassurance company in France.

- The bank's efforts to establish a world -class credit information
bureau in India culminated in the successful setting up of the
Credit
Information Bureau (India) Ltd., a joint venture of the Bank with
HDFC
Ltd., Dun and Bradstreet Information Services India Pvt. Ltd. and
Trans Union International Inc.

2002

- In order to reduce risk and develop a transparent and active debt
market in general and government securities market in particular,
the Clearing Corporation of India Ltd. has been set up in Mumbai with the Bank as the chief promoter.
-E K Thakur resigns from Directorship of SBI.
-TCS bags order of Rs 500 crore from SBI.
-SBI has informed that the following change in Directors. 1. Shri A C Kalita, Director on the Bank's
Central Board ceased to be a Director on the Board wef May 13, 2002 on expiry of his term on May 12,
2002.2. Shri Y Radhakrishnan Managing Director & GE (CB) has relinquished office of the Managing
Director as on June 30, 2002 and ceased to be Director on the Board wef July 01, 2002.

-State Bank of India has informed BSE that Mr D C Gupta IAS Secretary
(Financial Sector), Ministry of Finance, Department of Economic
Affairs, New Delhi has been nominated as Director on the Board of
State Bank of India with effect from July 17, 2002 vice Mr S K Purkayastha.

-State Bank of India has informed BSE that Mr S Govindarajan,
Managing Director & GE (NB) has relinquished office of the Managing
Director as on July 31, 2002 and ceased to be Director on the Board w
e f August 01, 2002.Further Mr P R Khanna, Director on the Bank's
Central Board ceased to be a Director on the Board w e f August 20, 2002 consequent upon his resignation.

-State Bank of India has informed BSE that the Bank has decided to
close SBI Securities Ltd (SBISL), a subsidiary of the Bank, following
a Directive in this regard from the RBI.

-State Bank of India has informed that the Central Government
appointed Mr A K Batra, Deputy Managing Director, State Bank of India
as Managing Director, State Bank of India for the period from the date
of his taking charge and upto August 31, 2003. Also, Mr P N
Venkatachalam, Deputy Managing Director, State Bank of India, has
been appointed as Managing Director, State Bank of India for the
period from the date of his taking charge and upto March 31, 2004.

33

-State Bank Of India has informed that Shri Prithvi Raj Khanna and
Shri Kumar Bery have been duly elected as Directors under Section
19(c) of SBI Act at the General Meeting of the -State Bank of India
has informed that it has appointed Mr Ananta Chandra Kalita, as a
Director on the Central Board of the Bank from amongst the employees
of the Bank, who are workmen, for a period not exceeding six months
commencing from October 03, 2002 or until his successor is appointed
or till he ceases to be workmen employee of State Bank of India, or
until further orders, whichever event occurs earlier.shareholders of
the bank held on September 09, 2002.

-State Bank of India has informed BSE that Shri Janki Ballabh,
Chairman has relinquished office of Chairman at the close of business
hours on his attaining superannuation on October 31, 2002.

-State Bank of India has informed that Smt Vineeta Rai, Secretary
(Banking & Insurance), Ministry of Finance and Company Affairs,
Department of Economic Affairs (Banking Division), New Delhi has been
nominated as Director of the Board with effect from October 30, 2002.

-State Bank of India has informed that the Central Government, after
consultation with the Reserve Bank of India, appointed Shri A K
Purwar, Deputy Managing Director, State Bank as Chairman, State Bank
of India from the date of his taking charge of the post and upto May
31, 2003 i.e. date of his superannuation or until further orders
whichever is earlier. Shri A K Purwar assumed the charge of Chairman,
State Bank of India, on November 13, 2002.

2003
- State Bank of India (SBI) and Maruti Udyog Ltd have announced a
joint initiative aimed at making car finance affordable to middle and
lower middle class customers. Customers will now have transparent car
finance involving no hidden charges and pre-closure penalties, and
also get the dealers' margins, Mr S.K. Bhattacharya, Chief General
Manager, SBI, told newspersons. It will help both the bank and Maruti
to aggressively tap the Andhra Pradesh market, he said. SBI offers
finance facility even for lifetime tax, insurance and accessories of
the vehicle.

- State Bank of India has informed that the Bank has appointed Shri
Ananta Chandra Kalita, Head Assistant, State Bank of India as a
Director on the Central Board of the Bank amongst the employees of
the Bank, who are workmen for a period of 3 years commencing from
July 15, 2003 or until he ceases to be a workmen employee of the Bank
or until further orders, whichever is earlier provided that he shall
not hold the office continously for a period exceeding six year.
34


- SBI group's total profit identified at Rs 3,354 cr in '02

- Mr. D C Gupta nominated as Director on the Board of SBI

- SBI introduces IT upgradation plan with KPMG help

- SBI Cards and Payment Services Private Ltd, the credit card
subsidiary of the State Bank of India, introduces two new schemes
recently- SBI Advantage Card to the bank's fixed deposit customers
and SBI International Card for its home loan borrowers

- Launches a new credit appraisal system targeting the small and
medium enterprises (SME) for loans up to Rs 25 lakh

- SBI selects TCS to execute trade finance solution

- SBI and ICICI Bank among the top 100 banks in Asia in 2001 as per
the study by Asian Banker Journal

- Introduces SBI Cash Plus, its Maestro Debit Card that allows
customers to access their deposit accounts from ATMs and merchant
establishments

2003

- Promotes three Chief General Managers (CGM) to the posts of Deputy
Managing Directors (DMDs). They are: A D Kalmankar, CGM in charge of
Staff College of Hyderabad, A K Das, CGM, Hyderabad; and R K Sinha,
CGM, Chandigarh

- SBI appoints Mr. S K Bhattacharya as the new Chief General Manager
for Hyderabad circle

- Increases its equity stake in Discount and Finance House of India
Ltd (DFHIL) to 51%

- Ties up with Maruti Udyog Ltd. (MUL) for car finance

- Receives permission from Insurance Regulatory and Development
Authority (IRDA) to sell healthcare products to individuals

- Increases its Equity Stake in DFHIL to 55.30%

- Starts new 'Plus schemes' loans such as Justice Plus intended for
the judges and court employees, Police Plus for the police personnel,
35

Teacher Plus for the teaching community and Doctor Plus for the
medical practitioners

- Receives RBI licence to set up offshore banking units (OBUs) in special economic zones (SEZs)

- Launches SBI Bangalore card meant for a broad-based target audience
in the 25 plus age group ranging from upwardly mobile professionals
and middle class segments

- SBI unveils Hyderabad card, an exclusive initiative for the
citizens of Hyderabad

- Ananta Chandra Kalita ceases to be a Director of SBI

- Christens the tieup with Maruti Udyog Ltd. as SBI-Maruti Finance

- Orders For 1,500 ATMs With NCR Corporation

- Orange, the cellular service operator of the Hutch group for the
Mumbai circle, ties up with State Bank of India for prepaid card
refill options

- Ropes in US-based consultant McKinsey & Co to undertake Business
Process Re-engineering (BPR) exercise for the bank

- Launches charter for Small Scale Industries (SSIs)

- NPA (Non Performing Assets) slashed to 4.5 pc, writes off Rs 4,000
crore worth of assets

- Forays into stock market

- Stock price crosses the Rs 400 mark for the first time since
listing on BSE

- Mr. A K Batra, Managing Director & Group Executive (Corporate
Banking) of the Bank ceases to be a Director on the Board with effect
from July 8, 2003

- Plans a new scheme to attract Resurgent India Bonds (RIB)

- N S Sisodia, Secretary (Banking & Insurance), Ministry of Finance
and Company Affairs, Department of Economic Affairs (Banking
Division), has been nominated as a Director on the Board of State
Bank of India w.e.f. July 11, 2003

36

- Mr. Ananta Chandra Kalita, Head Assistant, State Bank of India,
appointed as a Director on the Central Board of the Bank amongst the
employees of the Bank

- Inks two important agreements with its employees' unions and
officers' associations. According to the contract SBI's staff will
be having no rights to interfere in bank's computerisation plans

- SBI, AirTel launch mobility service at Rs 299

- Central government nominates Mr. Arun Singh as a director on the
board of the bank wef July 25, 2003 for a period of three years.

- State Bank of India along with ANZ Investment Bank have consummated
5 year syndicate loan facility of 0 million to Indian
Petrochemicals Corporation (IPCL)

- Opens cheque clearing cente at Kolkata

- Inks pact with Mahindra & Mahindra (M&M) for co-branded tractor
scheme SBI-Mahindra Tractor Plus

- Joins hands with Tractors and Farm Equipment Ltd (TAFE) for tractor
loans

- Launches insurance scheme in Kerala

- Unveils new retail bank loan product Credit Khazana, which targets
the bank's housing loan account holders

- Unveils online ticket reservation system 'e-Rail'

- Reserve Bank of India nominates Dr Rakesh Mohan, Deputy Governor,
RBI, on the Central Board of the bank

- Appoints Mr C. Narasimhan as the Chief General Manager of the SBI's Kerala Circle

-Unveils Credit Khazana, retail bank loan product, to target the bank's housing loan account holders


- MRO-TEK Ltd has secured State Bank of India's order of Rs 15-crore
to provide networking solutions of 2Mbps and 64 Kbps high-end leased
line modems for SBI to connect more than 800 branches across the country.

-SBI joins hands with LIC to dentify long-term investment proposals
for LIC
37


-Tied with bajaj Auto to finance its two wheelers.

-SBI granted Rs 125-cr loan to Nethaji Apparel park to set up units
and buy machinery for the first batch of 54 garment plants in the
65-acre special apparel park.

-The bank has tied up with TVS motor company to finance two wheeler
loans

-Tied up with apollo hospital enterprise to finance for the hospital
treatement.

-The company launched mobile pre-paid cards recharge facility at its
ATM's

-Tied up with ICICI Bank and HDFC for sharing ATM networks

2003-Bank has entered into MOU with both ICICI Bank and HDFC Bank for
sharing Bank's ATM Network with them on bilateral terms.

-The Central Government after consultation with the Reserve Bank of
India, appointed Shri Chandan Bhattacharya, Deputy Managing Director
State Bank Of India as Managing Director State Bank Of India for the
period from December 17, 2003 to January 31, 2005.

-The State Bank of India has announced a special package to BSNL
employees by allowing concessional interest rates for different types
of loans to be availed by the BSNL staff.


2004

-Former KCCI President nominated to SBI Bangalore Local Board

-State Bank Of India has informed that Reserve Bank of India has
nominated Shri A V Sardesai, Executive Director, Reserve Bank of
India on the Central Board of State Bank of India vice Dr. Rakesh
Mohan.

-SBI sets up ATM counter in Ernakulam

-Bahrain Monetary Agency (BMA) grants in-principle licence to Statte
Bank of India (SBI)

-SBI sets up India's first drive-in ATM in Hyderabad
38


-State Bank of India has entered into an alliance with HDFC Bank for
sharing ATM networks to be operationalised from February 3, this
year.

2004

-SBI unveils new branch in Manjeri

-Bank awarded special prize for lending to self help group run by
women

-SBI unveils floating ATM

-State Bank of India appointed six new Deputy Managing Directors on
February 11, 2004. The new DMDs are: Mr T.S. Bhattacharya, CGM,
Product Development and Marketing, Mr M.M.Lateef, Managing Director,
SBI Gilts, Mr Yogesh Agarwal, CGM, Chandigarh, Mr Krishnamurthy, CGM,
Madras LHO and Mr R.Ramanathan, CGM, Technology and Mr Vijay Anand,
CGM, Corporate Account group. These top level appointments follow the
appointment of the new Managing Director for the bank, Mr Chandan
Bhattacharya, in December.

-GAIL ties up SBI for e-banking system

-SBI join hands with Visa for travel card

-SBI enters into ATM sharing agreements with UTI Bank & HDFC Bank

-Signs a Memorandum of Understanding (MoU) under which the bank will
provide term loans to farmers for purchasing capital inputs from Jain
Irrigation Systems Ltd (JISL)

-Join hands with Siemens for financing the medical equipments sold by
Siemens

-Joins hands with VST Tillers to launch SBI-VST Shakti, a new loan
scheme for farm mechanisation programme

-Unveils Vishwa Yatra foreign travel card, a prepaid card which
offers the traveller a convenient and secure way to carry cash

-Ties up with Same Deutz-Fahr India for tractor financing

-In ally with Sikkim govt to beef up SMEs

39

-The government has chosen State Bank of India (SBI) for channelising
government credit to other countries which runs into billions of
dollar

-SBI opens MICR cheque processing center

-Signs MoU with HMT Ltd. for financing their tractors

-State Bank of India deploys Flexcube as core banking solution at
Frankfurt

-Mr Ashok K. Kini appointed as new Managing Director of State Bank of
India with effect from April 1, 2004 to December 31, 2005

-SBI unveils Foreign Travel card in Orissa

-ICICI Bank, SBI, LIC in pact for Rs 20,000-cr projects

-Reliance Info in ATM pact with SBI

-State Bank of India, Bangalore Circle, has announced its tie-up with
New India Assurance Company Ltd (NIAC), for distribution of NIAC's
general insurance products in Karnataka

- SBI unveils new credit card in Ahmedabad

-State Bank of India joined the billion dollar club

-THE State Bank of India opened its 236th branch in the State at
Tripunithura on June 16

-SBI inaugurates first Internet shoppe in Kochi

-State Bank of India has opened a fully computerised branch at
Karunagappally in Kollam district

-L&T-John Deere Private Ltd has signed a memorandum of understanding
(MoU) with State Bank of India for tractor finance

-Buys 10% stake in Multi Commodity Exchange of India Ltd. (MCDEX)
for Rs 2.1 crore

-SBI join hands with Hero Honda to unveil co-branded credit card

-State Bank of India launched its first mobile ATM for increasing the
banking convenience of its customers
40


-State Bank of India has signed a Memorandum Of Understanding (MOU)
with the Societe Generale Asset Management of France (SGAM) for
inducting Societe Generale Asset Management as a stake holding
partner for SBI's mutual fund arm, SBI Fund Management Private Ltd
(SBIFMPL)

-State Bank of India, (SBI) with a view to expand the ambit of its
educational loan schemes, has unveiled a unique educational loan
scheme, christened Nursing Plus, for the nursing students of the
country

-SBI forges alliance with Hero Honda

-SBI offers new scheme`School Plus' for schools

-SBI Card has launched 'Instant Card' offering customers in need of
instant credit opportunity. With this, the customers will get an
opportunity to get ready to use credit card within a few hours of
filing in their application form

-SBI selects Finacle for international ops

-SBI enters ATM tie up with Andhra Bank

-SBI join hands with LIC for funding infrastructure projects

-Tata Motors on December 7, 2004, signs an MoU with State Bank of
India (SBI)

-SBI partners with Eicher Motors on December 27, 2004

2005

-Raj Travels joins hands with SBI for travel loans

-SBI opens branch at Vadakara

-SBI join hands with Apollo Health to offer loans

-SBI rolls out new loan scheme

-SBI opens first branch in Lakshadweep island of Kavaratti

-SBI enters into agreement for bilateral sharing of ATMs with PNB on
May 10, 2005
41


-SBI signs MOU with Corporation Bank for ATM sharing

-State Bank of India and 8 associate banks have entered into an
agreement with Bharat Petroleum Corporation Ltd (BPCL) for enhancing
card usage at fuel stations

-SBI launches new mortgage loan scheme for traders

-SBI launches SBI card in Madurai

-SBI inaugurates RBO in Thrissur

-SBI signed a memorandum of understanding with Small Industries
Development Bank of India for co-financing small and medium
enterprises in Andhra Pradesh, Tamil Nadu, Uttar Pradesh, Jammu &
Kashmir, Jharkhand, Delhi and Bihar

-State Bank of India and Crisil have signed a memorandum of
understanding under which latter will assign ratings to small-scale
industries that are borrowers of SBI

-NSIC join hands with SBI to offer credit to SSI

2006

-SBI teams up with Nihilent to unveil feedback system

-Bhatt to become SBI's new MD

-State Bank of India (SBI) has informed that Shri. Yogesh Agarwal has
been appointed as Managing Director on the Board of the Bank with
effect from October 10, 2006 to the June 30, 2010

2007

-State Bank of India (SBI) has appointed Shri. S K Bhattacharya as
Managing Director on the Board of the Bank with effect from October
08, 2007 to the October 31, 2010, as per the Notification dated
October 08, 2007, by the Government of India.

- The State Bank of India (SBI) has become the first foreign bank to
set up a branch in the Israel's diamond exchange. Besides diamonds,
they also see huge potential in telecommunications, hi-tech,
chemicals, textiles, agriculture and water management, food
processing, pharma and health care.
42


2008

-State Bank of India (SBI) has informed that the Government of India
in pursuance of clause (e) of Section 19 of the State Bank of India
Act, 1955 (23 of 1955) has nominated Shri. Arun Ramanathan,
Secretary, Ministry of Finance, Department of Financial Services, New
Delhi as a Director on the Central Board of State Bank of India with
effect from January 18, 2008, vice Shri. Vinod Rai.

-State Bank of India (SBI) has informed that the Central Government,
in consultation with the Reserve Bank of India and in pursuance of
clause (d) of Section 19 of the State Bank of India Act, 1955 (23 of
1955), has nominated Dr. (Mrs.) Vasantha Bharucha as a part-time
non-official Director on the Central Board of State Bank of India for
a period of three years with effect from February 25, 2008, vice Shri
Piyush Goel.

- State Bank of India (SBI) has informed that the Central Government,
in consultation with the Reserve Bank of India and in pursuance of
clause (d) of Section 19 of the State Bank of India Act, 1955 (23 of
1955), has nominated Dr. Rajiv Kumar as part-time non-official
director on the Central Board of Directors of State Bank of India for
a period of three years with effect from September 08, 2008 or until
further orders, whichever is earlier.

- State Bank of India (SBI) has signed a Joint Venture Agreement with
Insurance Australia Group to form a Joint Venture Company which will
be engaged in General Insurance business in India.

- State Bank of India has rolled out a micro insurance scheme
'Grameen Shakti', for its Self Help Group (SHG) members. The product
was launched on Nov 26 at the Tamil Nadu Agricultural University. The
bank is hopeful to cover at least five lakh SHG members by December
31.

-The company has issued rights in the ratio of 1:5 at a premium of
Rs.1580/- Per Share.

2009

- State Bank of India yesterday slashed its benchmark lending rate by
half a percentage point to 11.75 per cent. The Benchmark Prime Lending
Rate (BPLR) was revised down by 50 basis points with effect from June
29, SBI informed the Bombay Stock Exchange. This move would benefit
home, car and corporate loan customers
43


- State Bank of India on June 30 launched two new home loan products
called as SBI Easy Home Loan and SBI Advantage Home Loan, with zero
processing fees for both waived off till September 30. While SBI Easy
Home is for loans amount up to Rs 30-lakh while the SBI Advantage Home
is for loans above Rs 30-lakh, a press release issued here said.

- State Bank of India, entered into an agreement with the government
of Gujarat to create a fund of Rs 5,000 crore for investing in equity
of infrastructure projects.

2010

- State Bank of India, with a debit card base of over 70 million,
comprising SBI Cash Plus, SBI Gold Debit Card and SBI Yuva Card, has
added chip and PIN-based Platinum Debit Card to its bouquet on March 26.

- Mr Arun Kumar Agarwal has taken over charge as General Manager at
State Bank of India, Kerala Circle. Until now, he has been General
Manager at the Lucknow Circle of the bank. Mr Agarwal is Certified
Associate of Indian Institute of Bankers and joined State Bank of
India as a Probationary Officer in 1977. An expert in credit and
foreign exchange, he has held several assignments ranging from Branch
Manager to Regional Manager in the Patna and Delhi circles. He also
served in the bank's foreign department at Kolkata handling
investment of the FCNB portfolio, derivatives and correspondent
relations. He has headed the Pune Module of the bank and has also
served as the Deputy General Manager and Business Head for Network-1
of the Mumbai Circle.

- State Bank of India (SBI) has signed a pact with Unique
Identification Authority of India (UIDAI) to work as a registrar for
the UID registration of residents. It has become the first bank to
take up registration work for the UIDAI project. As a registrar, SBI
will capture through empanelled enrolment agencies, the biometric
characters such as finger prints, iris and so on and send the
information to UIDAI.




44


BALANCE SHEET FOR THE YEAR ENDING ON MARCH 2007-2011
2007 2008 2009 2010 2011
CAPITAL AND LIABILITIES
Total share capital 526.30 631.47 634.88 634.88 635.00
Equity share capital 526.30 631.47 634.88 634.88 635.00
Share application money 0.00 0.00 0.00 0.00 0.00
Preference share capital 0.00 0.00 0.00 0.00 0.00
Reserves 30772.26 48401.09 57312.82 65314.32 64351.04
Revaluation reserves 0.00 0.00 0.00 0.00 0.00
Net worth 31298.56 49032.66 57947.70 65949.20 64986.04
Deposits 435521.09 537403.94 742073.13 804116.23 933932.81
Borrowings 39703.34 51727.41 53713.68 103011.60 119568.96
Total debt 475224.43 589131.35 795786.81 907127.83 1053501.77
Other liabilities and provisions 60042.26 83362.30 110697.57 80336.70 105248.39
Total liabilities 566565.25 721526.31 964432.08 1053413.73 1223736.20

2007 2008 2009 2010 2011
ASSETS
Cash and balances with RBI 29,076.43 51534.62 55546.17 61290.87 94395.50

Balance with banks, money at call

22892.27 15931.72 48857.63 34892.98 28478.65
Advances 337336.49 416768.20 542503.20 631914.15 756719.45
Investments 149148.88 189501.27 275953.96 285790.07 295600.57
Gross block 13189.28 11831.63 10403.03 11831.63 13189.28
Accumulated depreciation 8757.33 7713.90 6828.65 7713.90 8757.33
Fixed Assets 4431.95 4117.73 3574.41 4117.73 4431.95
Capital work in progress 332.23 295.18 263.44 295.18 332.23
Other assets 43777.85 35112.76 37733.27 35112.76 43777.85
Total assets 566565.25 721526.31 964432.08 1053413.74 1223736.20
Contingent liabilities 585294.50 429917.37 614603.47 429917.37 585294.50
Bills for collection 205092.29 166449.04 152964.06 166449.04 205092.29
Book value 1023.40 1038.76 912.73 1038.76 1023.40
EPS 86.29 106.56 143.67 144.37 116.07

Net block= gross block depreciation Net block = fixed assets
PROFIT AND LOSS ACCOUNT OF STATE BANK OF INDIA
FOR THE ENDING ON MARCH 2007-2011
2007 2008 2009 2010 2011
Income:
Interest earned 39491.03 48950.31 63788.43 70993.92 81394.36
Other income 7446.76 9398.43 12691.35 14968.15 14935.09

Total income 46937.79 58348.74 76479.78 85962.07 96329.45

Expenditure:
45

Interest expended 23436.82 31929.08 42915.29 47322.48 48867.96
Operating expenses 13251.78 14609.55 18123.66 24941.01 31430.88
Total expenses 42396.48 51619.62 67358.55 76796.02 88959.12
Other provision and contingencies 5707.88 5080.99 6319.60 4532.53 8660.28
Net profit 4541.31 6729.12 9121.23 9166.05 7370.37
Extraordinary items 0.00 0.00 0.00 0.00 0.00
Profit B/F 0.34 0.34 0.34 0.34 0.34
Total 4541.65 6729.46 9121.57 9166.39 7370.69
Preference dividend 0.00 0.00 0.00 0.00 0.00
Equity dividend 736.82 1357.66 1841.15 1904.65 1905.00
Corporate dividend tax 125.22 165.87 248.03 236.76 246.52
Per share data:
EPS 86.29 106.56 143.67 144.37 116.07
Equity dividend (%) 140.00 215.00 290.00 300.00 300.00
Book value 594.69 776.48 912.73 1038.76 1023.40
Appropriations
Transfer to statutory reserve 3682.15 5205.69 6725.15 6495.14 2488.96
Transfer to other reserve -2.88 -0.10 306.90 529.50 2729.87
Proposed dividend/ transfer to govt. 862.04 1523.53 2089.18 2141.41 2151.52
Balance C/F to balance sheet 0.34 0.34 0.34 0.34 0.34
Total 4514.65 6729.46 9121.57 9166.39 7370.69















46



SUSTAINABLE EARNINGS OF STATE BANK OF INDIA:




201103
(12)
201003
(12)
200903
(12)
200803
(12)
200703
(12)
INCOME :



Total 97218.96 85962.07 76482.74 58437.42 44671.37



II. Expenditure



Total 88954.44 76796.02 67361.51 51708.3 40130.06






Fringe Benefit tax 0 0 142 105 88.5
Deferred Tax 976.82 -1407.75 -1055.1 -219.43 -19.83
Reported Net Profit 8264.52 9166.05 9121.23 6729.12 4541.31
Extraordinary Items -10.23 -5.83 -1.71 7 4.52
Adjusted Net Profit 8274.75 9171.88 9122.94 6722.12 4536.79










average of adjusted Net Profit 2009,2010 and
2011
8856.52333




rounding
off 8857





Standard deviation : 504.33
Rounding off 504

CRAR%

201103 201003 200903
CRAR(%)
Year End 201103 201003 200903
CRAR - Tier I (%) 7.77 9.45 9.38
CRAR - Tier II (%) 4.21 3.94 4.87
Total CRAR (%) 11.98 13.39 14.25
47




Total
CRAR
(%)
2009 14.25
year 2010 13.39
2011 11.98




RATIO ANALYSIS:
CURRENT RATIO:
An indication of a company's ability to meet short-term debt obligations; the
higher the ratio, the more liquid the company is. Current ratio is equal to current assets
divided by current liabilities. If the current assets of a company are more than twice the
current liabilities, then that company is generally considered to have good short-term
financial strength. If current liabilities exceed current assets, then the company may have
problems meeting its short-term obligations.
14.25
13.39
11.98
10.5
11
11.5
12
12.5
13
13.5
14
14.5
2009 2010 2011
year
Total CRAR (%)
48

CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITY



current ratio

year 2007-2011
year Ratio
2007 0.05
2008 0.07
2009 0.04
2010 0.04
2011 0.04



LIQUID RATIO:

Liquid ratio is also known as Quick or Acid Test Ratio. Liquid assets refer to
assets which are quickly convertible into cash. Current Assets other stock and prepaid expenses
are considered as quick assets.

Quick Ratio = Total Quick Assets
49

Total Current Liabilities

Quick Assets = Total Current Assets Inventory
Year Ratio
2007 6.52
2008 6.15
2009 5.74
2010 9.07
2011 8.50



EARNING PER SHARE:
In order to avoid confusion on account of the varied meanings of the term capital
employed, the overall profitability can also be judged by calculating earning per share with the
help of the following formula:
Earning Per Equity Share = Net Profit after Tax Preference Dividend
No. of Equity shares
The earning per share of the company helps in determining the market price of the equity shares
of the company. A comparison of earning per share of the company with another will also help in
6.52
6.15
5.74
9.07
8.5
0
1
2
3
4
5
6
7
8
9
10
1 2 3 4 5
quick ratio
quick ratio
50

deciding whether the equity share capital is being effectively used or not. It also helps in
estimating the companys capacity to pay dividend to its equity shareholders.

Year Ratio
2007 86.29
2008 106.56
2009 143.67
2010 144.37
2011 116.07



DIVIDEND PER SHARE :

It is expressed by dividing dividend paid to equity shareholders by no. of equity shares.
this shows the per share dividend given to equity shareholders. It is very helpful for potential
investors to know the dividend paying capacity of the company. It affects the market value of the
company.
86.29
106.56
143.67 144.37
116.07
0
20
40
60
80
100
120
140
160
1 2 3 4 5
Ratio
Ratio
51


Dividend Per Share = Dividend Paid To Equity Shareholders
No. Of Equity Shares


dividend
per
share

2007 14
year 2008 21.5
2009 29
2010 30
2011 30



NET PROFIT RATIO:

This ratio indicates the Net margin on a sale of Rs.100. It is calculated as follows:
Net Profit Ratio = Net Profit X 100
Net Sales
14
21.5
29
30 30
0
5
10
15
20
25
30
35
2007 2008 2009 2010 2011
year
dividend per share
52

This ratio helps in determining the efficiency with which affairs of the business are being
managed. An increase in the ratio over the previous period indicates improvement in the
operational efficiency of the business. The ratio is thus on effective measure to check the
profitability of business.

net
profit
ratio

2007 10.12
year 2008 11.65
2009 12.03
2010 10.54
2011 8.55


RETURN ON NET WORTH:

It measures the profitability of the business in view of the shareholders. It judges the earning
capacity of the company and the adequacy of return on proprietors funds. Shareholders and
potential investors are interested in this ratio. It is calculated as below:



10.12
11.65
12.03
10.54
8.55
0
2
4
6
8
10
12
14
2007 2008 2009 2010 2011
year
net profit ratio
53

Return On Net Worth = Net Profit After Interest And Tax x 100
Shareholders Funds

return on
shareholder's

2007 14.5
year 2008 13.72
2009 15.74
2010 13.89
2011 12.71



DEBT- EQUITY RATIO:
The Debt-Equity ratio is calculated to find out the long-term financial position of the firm. This
ratio indicates the relationship between long-term debts and shareholders funds. The soundness
of long-term financial policies of a firm can be determined with the help of this ratio. It helps to
assess the soundness of long-term financial policies of a business. It also helps to determine the
relative stakes of outsiders and shareholders. Long-term creditors can assess the security of their
funds in a business. It indicates to what extent a firm depends upon lenders to meet its long-term
financial requirements. A low Debt-Equity ratio is considered better from the point of view of
creditors.
14.5
13.72
15.74
13.89
12.71
0
2
4
6
8
10
12
14
16
18
2007 2008 2009 2010 2011
year
return on shareholder's
54


Total
Debt to
Owners
Fund


2007 13.92
year 2008 10.96
2009 12.81
2010 12.19
2011 14.37


FIXED ASSETS TURNOVER RATIO:
It is also called as Sales to Fixed Assets Ratio. It measures the efficient use of fixed assets. This
ratio is a measure of efficient use of fixed assets. it is calculated as:
Fixed Assets Turnover Ratio = Cost of goods sold or Sales
Net Fixed Assets
It measures the efficiency and profit earning capacity of the business. Higher the ratio, greater is
the intensive utilization of fixed assets and a lower ratio shows under utilization of the fixed
assets. This ratio has a special importance for manufacturing concerns where investment in fixed
assets, is very high and the profitability is significantly dependent on the utilization of these
assets.
13.92
10.96
12.81
12.19
14.37
0
2
4
6
8
10
12
14
16
2007 2008 2009 2010 2011
year
Total Debt to Owners Fund
Total Debt to Owners
Fund
55


assets
turnover
ratio

2007 5.44
year 2008 6.32
2009 7.2
2010 7.26
2011 7.24



CREDIT-DEPOSIT RATIO:
This ratio is very important to assess the credit performance of the bank. The ratio shows the
relationship between the amount of deposit generated by the bank as well as their deployment
towards disbursement of loan and advances. Higher credit deposit ratio shows overall good
efficiency and performance of any banking institution.
100
Deposits
Credits
Ratio Deposit Credit
Credit means disbursement of advances
Deposit mean sum of fixed deposit,
5.44
6.32
7.2
7.26 7.24
0
1
2
3
4
5
6
7
8
2007 2008 2009 2010 2011
year
assets turnover ratio
56

Saving deposit and current deposit.

credit
deposit
ratio

2007 73.44
year 2008 77.51
2009 74.97
2010 75.96
2011 79.9


CASH DEPOSIT RATIO :


cash
deposit
ratio

2007 6.22
YEAR 2008 8.29
2009 8.37
2010 7.56
2011 8.96

73.44
77.51
74.97
75.96
79.9
70
72
74
76
78
80
82
2007 2008 2009 2010 2011
year
credit deposit ratio
57



CAPITAL TURNOVER RATIO :

Income / capital employed


CAPITAL
TURNOVER
RATIO

2007 8.46
YEAR 2008 8.96
2009 8.99
2010 8.62
2011 8.48

6.22
8.29
8.37
7.56
8.96
0
1
2
3
4
5
6
7
8
9
10
2007 2008 2009 2010 2011
YEAR
cash deposit ratio
58


Total assets turnover ratio:


total
assets
turnover
ratio

2007 0.08
year 2008 0.09
2009 0.09
2010 0.09
2011 0.08

8.46
8.96
8.99
8.62
8.48
8.1
8.2
8.3
8.4
8.5
8.6
8.7
8.8
8.9
9
9.1
2007 2008 2009 2010 2011
YEAR
CAPITAL TURNOVER
RATIO
59



PRICE- EARNING RATIO:
Price earning ratio = market price per share/ earning per share

Price
Earning
(P/E)

2007 11.83
Year 2008 15.38
2009 7.63
2010 14.78
2011 21.92

0.08
0.09 0.09 0.09
0.08
0.074
0.076
0.078
0.08
0.082
0.084
0.086
0.088
0.09
0.092
2007 2008 2009 2010 2011
year
total assets turnover ratio
60



Price to Book Value:

Market Value of Security/ book value of shares


Price to
Book Value
( P/BV)

2007 1.67
year 2008 2.06
2009 1.17
2010 2
2011 2.7

11.83
15.38
7.63
14.78
21.92
0
5
10
15
20
25
2007 2008 2009 2010 2011
Year
Price Earning (P/E)
61



Enterprise Value / EBIDTA

EV/EBIDTA

2007 15.64
year 2008 14.46
2009 13.64
2010 15.33
2011 17.07


1.67
2.06
1.17
2
2.7
0
0.5
1
1.5
2
2.5
3
2007 2008 2009 2010 2011
year
Price to Book Value (
P/BV)
15.64
14.46
13.64
15.33
17.07
0
2
4
6
8
10
12
14
16
18
2007 2008 2009 2010 2011
year
EV/EBIDTA
EV/EBIDTA
62










BANK OF BARODA













63

INTRODUCTION
Bank of Baroda (BoB) (BSE: 532134) (Hindi: ) is the third largest bank in India,
after the State Bank of India and the Punjab National Bank and ahead of ICICI Bank.
[3]
BoB is
ranked 763 in Forbes Global 2000 list. BoB has total assets in excess of Rs. 3.58 lakh crores, or
Rs. 3,583 billion, a network of over 3,409 branches and offices, and about 1,657 ATMs. It plans
to open 400 new branches in the coming year. It offers a wide range of banking products and
financial services to corporate and retail customers through a variety of delivery channels and
through its specialized subsidiaries and affiliates in the areas of investment banking, credit cards
and asset management. Its total business was Rs. 5,452 billion as of June 30.
[4]

As of August 2010, the bank has 78 branches abroad and by the end of FY11 this number should
climb to 90. In 2010, BOB opened a branch in Auckland, New Zealand, and its tenth branch in
the United Kingdom. The bank also plans to open five branches in Africa. Besides branches,
BoB plans to open three outlets in the Persian Gulf region that will consist of ATMs with a
couple of people.
The Maharajah of Baroda, Sir Sayajirao Gaekwad III, founded the bank on 20 July 1908 in the
princely state of Baroda, in Gujarat. The bank, along with 13 other major commercial banks of
India, was nationalized on 19 July 1969, by the government of India.
BALANCE SHEET OF BANK OF BARODA

2007 2008 2009 2010 2011
Total Share Capital 365.53 365.53 365.53 365.53 392.81
Equity Share Capital 365.53 365.53 365.53 365.53 392.81
Share Application Money 0 0 0 0 0
Preference Share Capital 0 0 0 0 0
Reserves 8284.41 10,678.40 12,470.01 14,740.86 20,600.30
Revaluation Reserves 0 0 0 0 0
Net Worth 8649.94 11,043.93 12,835.54 15,106.39 20,993.11
Deposits 124915.98 152,034.13 192,396.95 241,044.26 305,439.48
Borrowings 1142.56 3,927.05 5,636.09 13,350.09 22,307.85
Total Debt 126058.54 155,961.18 198,033.04 254,394.35 327,747.33
Other Liabilities & Provisions 8437.70 12,594.41 16,538.15 8,815.97 9,656.73
Total Liabilities 143146.18 179,599.52 227,406.73 278,316.71 358,397.17
2007 2008 2009 2010 2011
Assets
Cash & Balances with RBI 6413.52 9,369.72 10,596.34 13,539.97 19,868.18
Balance with Banks, Money at
Call 11866.85 12,929.56 13490.77 21,927.09 30,065.89
Advances 83620.87 106,701.320 143985.90 175,035.29 228,676.36
Investments 34943.63 43,870.07 52445.88 61,182.38 71,260.63
64

Gross Block 2244.62 3,787.14 3954.13 4,266.60 4,548.16
Accumulated Depreciation 1155.81 1,360.14 1644.41 1,981.84 2,248.44
Net Block 1088.81 2427.00 2309.72 2,284.76 2,299.72
Capital Work In Progress 0 0 0 0 0
Other Assets 5212.5 4301.83 4578.12 4,347.22 6,226.40

Total Assets 143146.18 179599.5

227406.73 278,316.71 358,397.180

Contingent Liabilities 54999.86 75364.33 64745.82 77,997.01 112,272.64
Bills for collection 12976.53 15105.51 22584.64 27,949.60 33,735.67
Book Value (Rs) 237.46 303.18 352.37 414.71 536.16
EPS

28.18 39.41 61.14 83.96 108.33
PROFIT AND LOSS OF BANK OF BARODA
PROFIT & LOSS OF BANK OF
BARODA

IN RS.
CR.
2007 2008 2009 2010 2011
Income:
Interest earned
9,212.64 11,813.5 15,091.6 16,698.3 21,885.9
Other income
1,381.79 2,051.04 2,757.66 2,806.36 2,809.19
Total income
10,594.4 13,864.5 17,849.2 19,504.7 24,695.1
Expenditure:

Interest expended
5,426.56 7,901.67 9,968.17 10,758.9 13,083.7
Operating expenses
2,771.45 3,370.27 3,844.66 4,711.23 5,669.88
Other provision and contingencies
1,369.95 1,157.05 1,809.20 976.28 1,699.88
Total expenses
9,568.0 12,429.0 15,622.0 16,446.4 20,453.4

Net profit
1,026.46 1,435.52 2,227.20 3,058.33 4,241.68
Extraordinary items
0 0 0 0 0
Profit B/F
0 0 0 0 0
Total 1,026.46 1,435.52 2,227.20 3,058.33 4,241.68

Preference dividend
0 0 0 0 0
Equity dividend
252.46 340.94 383.56 639.26 753.35
Corporate dividend tax
0 0 0 0 0
Per share data:
EPS
28.18 39.41 61.14 83.96 108.33
Equity dividend (%)
60 80 90 150 165
65

Book value
237.46 303.18 352.37 414.71 536.16
Appropriations
Transfer to statutory reserve
271.5 444.23 1,136.23 1,162.07 1,387.87
Transfer to other reserve
502.5 650.35 707.41 1,257.00 2,100.46
Proposed dividend/ transfer to govt.
252.46 340.94 383.56 639.26 753.35
Balance C/F to balance sheet
0 0 0 0 0

Total
1,026.46 1,435.52 2,227.20 3,058.33 4,241.68

RATIO ANALYSIS OF BANK OF BARODA:
Current ratio: CURRENT ASSETS/ CURRENT LIABILITIES


Current
Ratio

2007 0.04
year 2008 0.03
2009 0.02
2010 0.02
2011 0.02



QUICK RATIO:
0.04
0.03
0.02 0.02 0.02
0
0.005
0.01
0.015
0.02
0.025
0.03
0.035
0.04
0.045
2007 2008 2009 2010 2011
year
Current Ratio
Current Ratio
66


Quick
Ratio

2007 11.29
year 2008 9.56
2009 9.62
2010 21.88
2011 26.38




Earnings
Per
Share

2007 28.18
year 2008 39.41
2009 61.14
2010 83.96
2011 108.33

11.29
9.56 9.62
21.88
26.38
0
5
10
15
20
25
30
2007 2008 2009 2010 2011
year
Quick Ratio
Quick Ratio
67




Total Debt to
Owners Fund

2007 14.44
year 2008 13.77
2009 14.99
2010 15.96
2011 14.55


28.18
39.41
61.14
83.96
108.33
0
20
40
60
80
100
120
2007 2008 2009 2010 2011
year
Earnings Per Share
Earnings Per Share
14.44
13.77
14.99
15.96
14.55
12.5
13
13.5
14
14.5
15
15.5
16
16.5
2007 2008 2009 2010 2011
year
Total Debt to Owners Fund
Total Debt to Owners
Fund
68


Cash Deposit
Ratio

2007 4.46
year 2008 5.7
2009 5.8
2010 5.57
2011 6.11




Credit
Deposit Ratio

2007 65.67
year 2008 68.72
2009 72.78
2010 73.6
2011 73.87

4.46
5.7
5.8
5.57
6.11
0
1
2
3
4
5
6
7
2007 2008 2009 2010 2011
year
Cash Deposit Ratio
Cash Deposit Ratio
69




Asset
Turnover
Ratio

2007 4.25
year 2008 3.47
2009 4.2
2010 4.48
2011 5.25


65.67
68.72
72.78
73.6
73.87
60
62
64
66
68
70
72
74
76
2007 2008 2009 2010 2011
year
Credit Deposit Ratio
Credit Deposit Ratio
4.25
3.47
4.2
4.48
5.25
0
1
2
3
4
5
6
2007 2008 2009 2010 2011
year
Asset Turnover Ratio
Asset Turnover Ratio
70



Total Assets
Turnover Ratios

2007 0.07
Year 2008 0.08
2009 0.08
2010 0.08
2011 0.08




Total Income /
Capital
Employed(%)

2007 7.83
year 2008 8.57
2009 8.51
2010 7.86
2011 7.75

0.07
0.08 0.08 0.08 0.08
0.064
0.066
0.068
0.07
0.072
0.074
0.076
0.078
0.08
0.082
2007 2008 2009 2010 2011
year
Total Assets Turnover Ratios
Total Assets Turnover
Ratios
71




Net Profit /
Total Funds

2007 0.8
year 2008 0.89
2009 1.09
2010 1.21
2011 1.33



7.83
8.57
8.51
7.86
7.75
7.2
7.4
7.6
7.8
8
8.2
8.4
8.6
8.8
2007 2008 2009 2010 2011
year
Total Income / Capital Employed(%)
Total Income / Capital
Employed(%)
0.8
0.89
1.09
1.21
1.33
0
0.2
0.4
0.6
0.8
1
1.2
1.4
2007 2008 2009 2010 2011
year
Net Profit / Total Funds
Net Profit / Total Funds
72


Dividend Per
Share

2007 6
Year 2008 8
2009 9
2010 15
2011 16.5



PRICE- EARNING RATIO:
Price earnings ratio = market price per share/ earnings per share

PRICE-
EARNING

2007 7.93
YEAR 2008 7.49
2009 3.95
2010 7.87
2011 9.15

6
8
9
15
16.5
0
2
4
6
8
10
12
14
16
18
2007 2008 2009 2010 2011
year
Dividend Per Share
Dividend Per Share
73



PRICE- BOOK VALUE
Market Value of Security/ book value of shares



PRICE-
BOOK
VALUE
2007 0.91
YEAR 2008 0.94
2009 0.67
2010 1.55
2011 1.8

7.93
7.49
3.95
7.87
9.15
0
1
2
3
4
5
6
7
8
9
10
2007 2008 2009 2010 2011
YEAR
PRICE- EARNING
74



ENTERPRISE TO EBIDTA:
EV/EBIDTA
2007 15.9
YEAR 2008 13.93
2009 14.01
2010 15.93
2011 16.64



0.91
0.94
0.67
1.55
1.8
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
2007 2008 2009 2010 2011
YEAR
PRICE-BOOK VALUE
15.9
13.93
14.01
15.93
16.64
12.5
13
13.5
14
14.5
15
15.5
16
16.5
17
2007 2008 2009 2010 2011
YEAR
EV/EBIDTA
75

TREND ANALYSIS
Trend Analysis is the practice of collecting information and attempting to spot a pattern, or
trend, in the information. In some fields of study, the term "trend analysis" has more formally-
defined meaning.
Although trend analysis is often used to predict future events, it could be used to estimate
uncertain events in the past, such as how many ancient kings probably ruled between two dates,
based on data such as the average years which other known kings reigned.
TREND ANALYSIS OF STATE BANK OF
INDIA



BASE YEAR 2006-2007


percentage (%)
figures

2007 2008 2009 2010 2011

deposits 100 123 170 185 214
advances 100 124 161 187 224
net
profit 100 148 201 202 162





0
50
100
150
200
250
2007 2008 2009 2010 2011
deposits
advances
net profit
76

INTERPRETATION:
There is a continuous increase in deposits
There is a increase of advances
There is a increase in net profits till 2010 but there is a fall in 2011
The overall performance of the bank is satisfactory.

TREND ANALYSIS OF BANK OF BARODA

Bank of Baroda
Base year 2006-2007
In percentage(%) figures

2007 2008 2009 2010 2011

deposits 100 122 154 193 245
advances 100 128 172 209 273
net
profit
100 140 217 298 413


0
50
100
150
200
250
300
350
400
450
2007 2008 2009 2010 2011
deposits
advances
net profit
77


INTERPRETATION:
Deposits:-
The trend shows that the deposits are increasing from 2007-2011
Advances:-
The trend of advances shows that it is increasing in those four years 2008-2011
Net profit:-
The trend of net profit shows the increase from 2008-2011

BETA ANALYSIS
A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the
market as a whole. Beta is used in the capital asset pricing model (CAPM), a model that
calculates the expected return of an asset based on its beta and expected market returns..
Also known as "beta coefficient".


BETA VALUATION OF STATE BANK OF INDIA

1 2 3 4 5 6 7 8
MONTH SENSEX SBI
RETURN
OF
SENSEX
RETUR
N OF
SBI
return-
averag
e of
return
of
sensex
varianc
e of
sensex
return
of SBI-
Averag
e of
return
of SBI
covarian
ce of
sensex
and SBI
10-Sep 20,069.12
3,233.
20
10-Oct 20,032.34
3,151.
20 0.00 -0.03 0.01 0.0001 0.01 0.0001
10-Nov 19,521.25
2,994.
10 -0.03 -0.05 -0.01 0.0002 -0.01 0.00014
10-Dec 20,509.09
2,811.
05 0.05 -0.06 0.06 0.0040 -0.02
-
0.001407
11-Jan 18,327.76 2,641. -0.11 -0.06 -0.09 0.0088 -0.02 0.002018
78

05
11-Feb 17,823.40
2,632.
00 -0.03 0.00 -0.01 0.0002 0.04
-
0.000525
11-Mar 19,445.22
2,767.
90 0.09 0.05 0.10 0.0108 0.09 0.009392
11-Apr 19,135.96
2,805.
60 -0.02 0.01 0.00 0.0000 0.05
-
0.000167
11-May 18,503.28
2,297.
80 -0.03 -0.18 -0.02 0.0004 -0.14 0.00289
11-Jun 18,845.87
2,405.
95 0.02 0.05 0.03 0.0010 0.09 0.002686
11-Jul 18,197.20
2,342.
00 -0.03 -0.03 -0.02 0.0005 0.01
-
0.000268
11-Aug 16,676.75
1,974.
50 -0.08 -0.16 -0.07 0.0050 -0.12 0.008358
11-Sep 16,933.83
1,945.
55 0.02 -0.01 0.03 0.0008 0.02 0.000683

AVERAGE
RETURN -0.01 -0.04 0.0026 0.00200

COVARIAN
CE
0.001995
59

VARIANCE
0.002642
95

BETA 0.755062


BETA VALUATION OF BANK OF BARODA
1 2 3 4 5 6 7 8
MONT
H SENSEX
BANK
OF
BAROD
A
RETUR
N OF
SENSE
X
RETUR
N OF
BANK
OF
BAROD
A
return
-
avera
ge of
return
on
sense
x
variance
of
sensex
return
-
avera
ge of
return
on
BOB
covarian
ce of
sensex
and
BOB
10-Sep 20,069.12 872.8
10-Oct 20,032.34 1,011.00 -0.0018 0.1583 0.010 0.00011 0.165 0.0018
79

9 9 0
10-Nov 19,521.25 937.75 -0.0255 -0.0725
-
0.012
8
0.00016
4
-
0.072
5 0.0009
10-Dec 20,509.09 896.5 0.0506 -0.0440
0.063
3 0.00401
-
0.044
0 -0.003
11-Jan 18,327.76 869.15 -0.1064 -0.0305
-
0.093
6
0.00876
8
-
0.030
5 0.0029
11-Feb 17,823.40 870.85 -0.0275 0.0020
-
0.014
8
0.00021
9
0.002
0 -3E-05
11-Mar 19,445.22 963.15 0.0910 0.1060
0.103
7
0.01075
7
0.106
0 0.011
11-Apr 19,135.96 912.15 -0.0159 -0.0530
-
0.003
2
1.01E-
05
-
0.053
0 0.0002
11-
May 18,503.28 863.4 -0.0331 -0.0534
-
0.020
3
0.00041
4
-
0.053
4 0.0011
11-Jun 18,845.87 871.9 0.0185 0.0098
0.031
2
0.00097
6
0.009
8 0.0003
11-Jul 18,197.20 878.3 -0.0344 0.0073
-
0.021
7
0.00047
1
0.007
3 -0.00016
11-Aug 16,676.75 736.6 -0.0836 -0.1613
-
0.070
8
0.00501
8
-
0.161
3 0.0114
11-Sep 16,933.83 774.8 0.0154 0.0519
0.028
1
0.00079
2
0.051
9 0.0015


AVERAGE
RETURN -0.0127 -0.0066
0.00264
3 0.0023


COVARIAN
CE 0.00234

VARIANCE
0.00264
3

BETA
0.88438
5

80


RATIO ANALYSIS
A tool used by individuals to conduct a quantitative analysis of information in a company's
financial statements. Ratios are calculated from current year numbers and are then compared to
previous years, other companies, the industry, or even the economy to judge the performance of
the company. Ratio analysis is predominately used by proponents of fundamental analysis.

There are many ratios that can be calculated from the financial statements pertaining to a
company's performance, activity, financing and liquidity. Some common ratios include the price-
earnings ratio, debt-equity ratio, earnings per share, asset turnover and working capital.

SUSTAINABLE EARNINGS OF BANK OF BARODA
IN RS. CR.

201103 (12) 201003 (12)
200903
(12) 200803 (12) 200703 (12)

INCOME :

Total 24695.1 19504.7 17876.11 13892.18 10438.12

II. Expenditure

Total 20453.42 16446.37 15648.91 12456.66 9411.66

Fringe Benefit tax 0 0 0 11 7.5
Deferred Tax 0 0 0 -3.12 -3.11
Reported Net Profit 4241.68 3058.33 2227.2 1435.52 1026.46
Extraordinary Items -0.12 56.12 62.29 0.22 8.01
Adjusted Net Profit 4241.8 3002.21 2164.91 1435.3 1018.45

Average of Adjusted net profit for the year 2009,2010,2011

2009 2164.91
2010 3002.21
2011 4241.8

Sum = 9408.92

Average = 3136.30
81


Standard deviation 1044.466
Rounding off 1044


CRAR% OF BANK OF BARODA:


201103 201003 200903
CRAR(%)
Year End 201103 201003 200903
CRAR - Tier I (%) 9.99 9.2 8.49
CRAR - Tier II (%) 4.53 5.16 5.56
Total CRAR (%) 14.52 14.36 14.05



Total
CRAR
(%)
2009 14.05
year 2010 14.36
2011 14.52

82


















14.05
14.36
14.52
13.8
13.9
14
14.1
14.2
14.3
14.4
14.5
14.6
2009 2010 2011
year
Total CRAR (%)
83











RESEARCH METHODOLOGY













84

RESEARCH TOPIC

THE COMPARATIVE STUDY OF FINANCIAL PERFORMANCE OF STATE BANK
OF INDIA AND BANK OF BARODA.

OBJECTIVE OF THE STUDY:-
1. To know the strength and weakness of State Bank Of India and Bank Of Baroda through
Ratio analysis.
2. To evaluate the performance of the companies.
3. To understand the liquidity, profitability and efficiency positions of the companies.
4. To make comparison between the ratios during different periods.

INTRODUCTION
Financial Management is the specific area of finance dealing with the financial decision
corporations make, and the tools and analysis used to make the decisions. The discipline as a
whole may be divided between long-term and short-term decisions and techniques. Both share
the same goal of enhancing firm value by ensuring that return on capital exceeds cost of capital,
without taking excessive financial risks.
Capital investment decisions comprise the long-term choices about which projects receive
investment, whether to finance that investment with equity or debt, and when or whether to pay
dividends to shareholders.
Short-term corporate finance decisions are called working capital management and deal with
balance of current assets and current liabilities by managing cash, inventories, and short-term
borrowings and lending (e.g., the credit terms extended to customers). Corporate finance is
closely related to managerial finance, which is slightly broader in scope, describing the financial
techniques available to all forms of business enterprise, corporate or not.


RESEARCH METHODOLOGY
The conclusive research is being used to study the comparison of the companies.
Data collection:
Secondary data is being taken
Websites

Outcomes of the study:
85

1. With this analysis we come to know about the strength and weakness of State Bank Of
India and Bank Of Baroda through Ratio analysis.
2. To evaluate the performance of the companies.
3. To understand the liquidity, profitability and efficiency positions of the companies.
4. To make comparison between the ratios during different periods.
Limitation of the study:
The study is done in Kanpur
Study is constrained to only the comparison of State Bank Of India and Bank Of Baroda.
TOOLS USED:
Comparative analysis
Ratio analysis
Trend analysis
Beta valuation
Sustainable earnings
Basel-II CRAR % capital requirement
Cash Flow Statement Analysis
STATISTICAL TOOL:
CAPITALINE
SPSS








86















FINANCIAL ANALYSIS








87

Introduction to the topic
RATIO ANALYSIS
FINANCIAL ANALYSIS
Financial analysis is the process of identifying the financial strengths and weaknesses of the firm
and establishing relationship between the items of the balance sheet and profit & loss account.
Financial ratio analysis is the calculation and comparison of ratios, which are derived from the
information in a companys financial statements. The level and historical trends of these ratios
can be used to make inferences about a companys financial condition, its operations and
attractiveness as an investment. The information in the statements is used by
company.
structure.
responsibility of the
management to maintain sound financial condition in the company.


RATIO ANALYSIS
The term Ratio refers to the numerical and quantitative relationship between two items or
variables. This relationship can be exposed as



Ratio analysis is defined as the systematic use of the ratio to interpret the financial statements. So
that the strengths and weaknesses of a firm, as well as its historical performance and current
financial condition can be determined. Ratio reflects a quantitative relationship helps to form a
quantitative judgment.
STEPS IN RATIO ANALYSIS
ct the information relevant to the decision
under consideration from the statements and calculates appropriate ratios.
the industry ratios. It facilitates in assessing success or failure of the firm.
drawn after comparison in the shape of report or recommended courses of action.

BASIS OR STANDARDS OF COMPARISON
Ratios are relative figures reflecting the relation between variables. They enable analyst to draw
conclusions regarding financial operations. They use of ratios as a tool of financial analysis
involves the
comparison with related facts.
NATURE OF RATIO ANALYSIS
Ratio analysis is a technique of analysis and interpretation of financial statements. It is the
process of establishing and interpreting various ratios for helping in making certain decisions. It
is only a means of
88

understanding of financial strengths and weaknesses of a firm. There are a number of ratios
which can be calculated from the information given in the financial statements, but the analyst
has to select the appropriate data and calculate only a few appropriate ratios. The following are
the four steps
involved in the ratio analysis.
analysis.

he same firm in the past, or the ratios
developed from projected financial statements or the ratios of some other firms or the
comparison with ratios of the
industry to which the firm belongs.
INTERPRETATION OF THE RATIOS
The interpretation of ratios is an important factor. The inherent limitations of ratio analysis
should be kept in mind while interpreting them.
The impact of factors such as price level changes, change in accounting policies, window
dressing etc., should also be kept in mind when attempting to interpret ratios.

IMPORTANCE OF RATIO ANALYSIS





-firm comparison
good communication



LIMITATIONS OF RATIO ANALYSIS




dures





IN THE VIEW OF FUNCTIONAL CLASSIFICATION THE RATIOS
ARE
1. Liquidity ratio
2. Leverage ratio
3. Activity ratio
4. Profitability ratio
89


1. LIQUIDITY RATIOS

Liquidity refers to the ability of a concern to meet its current obligations as & when there
becomes due. The short term obligations of a firm can be met only when there are sufficient
liquid assets. The short term obligations are met by realizing amounts from current, floating (or)
circulating assets The current assets should either be calculated liquid (or) near liquidity. They
should be convertible into cash for paying obligations of short term nature. The sufficiency (or)
insufficiency of current assets should
be assessed by comparing them with short-term current liabilities. If current assets can pay off
current liabilities, then liquidity position will be satisfactory.
To measure the liquidity of a firm the following ratios can be
calculated

-test (or) Liquid ratio


(a) CURRENT RATIO:
Current ratio may be defined as the relationship between current assets and current liabilities.
This ratio also known as Working capital ratio is a measure of general liquidity and is most
widely used to
make the analysis of a short-term financial position (or) liquidity of a firm.

Current ratio= current assets/ current liabilities
Components of current ratio:
Current Assets Current Liabilities
CuCash in handrrent AcunnnnSSETS Outstanding expenses
Cash at bank Bank overdraft
Bills receivable Bill payable
Inventories Short term advances
Work-in-progress Sundry creditors
Marketable securities Dividend payable
Short-term investments Income-tax payable
Sundry debtors
Prepaid expenses

(b) QUICK RATIO
Quick ratio is a test of liquidity than the current ratio. The term liquidity refers to the ability of a
firm to pay its short-term obligations as & when they become due. Quick ratio may be defined as
the relationship
between quick or liquid assets and current liabilities. An asset is said to be liquid if it is
converted into cash with in a short period without loss of value.
90


Quick or liquid assets
Quick Ratio= quick or liquid assets/ current liabilities
Components
Quick Assets Current liabilities
Cash in hand Outstanding or accrued expenses
Cash at bank Bank overdraft
Bills receivable Bills payable
Sundry debtors Short term advances
Marketable securities Sundry creditors
Temporary investments Dividend payable
Income tax payable
(c) ABSOLUTE LIQUID RATIO
Although receivable, debtors and bills receivable are generally
more liquid than inventories, yet there may be doubts regarding their
realization into cash immediately or in time. Hence, absolute liquid ratio
should also be calculated together with current ratio and quick ratio so as to
exclude even receivables from the current assets and find out the absolute
liquid assets.
Absolute liquid ratio = Absolute liquid assets/Current liabilities

Absolute liquid assets include cash in hand etc. The acceptable
forms for this ratio is 50% (or) 0.5:1 (or) 1:2 i.e., Rs.1 worth absolute liquid
assets are considered to pay Rs.2 worth current liabilities in time as all the creditors are nor
accepted to demand cash at the same time and then cash
may also be realized from debtors and inventories.
Components:
Absolute liquid assets Current liabilities
Cash in hand Outstanding or accrued expenses
Cash in bank Bank overdraft
Interest on fixed deposits Bills payable
Dividend payable
Sundry creditors
Short term advances
Income tax payable
2. LEVERAGE RATIOS
The leverage or solvency ratio refers to the ability of a concern
to meet its long term obligations. Accordingly, long term solvency ratios
indicate firms ability to meet the fixed interest and costs and repayment
schedules associated with its long term borrowings.
The following ratio serves the purpose of determining the
solvency of the concern.
Proprietory ratio
91

(a) PROPRIETORY RATIO
A variant to the debt-equity ratio is the proprietary ratio which
is also known as equity ratio. This ratio establishes relationship between
share holders funds to total assets of the firm.
Proprietory ratio = Shareholders funds/ Total assets
Shareholder fund Total Assets
Share capital Fixed assets
Reserve& surplus Current assets
Cash in hand
Cash at bank
Bills receivable
Inventories
Marketable securities
Short term investment
Sundry debtors
Prepaid expenses
3. ACTIVITY RATIOS
Funds are invested in various assets in business to make sales
and earn profits. The efficiency with which assets are managed directly
effect the volume of sales. Activity ratios measure the efficiency (or)
effectiveness with which a firm manages its resources (or) assets. These
ratios are also called Turn over ratios because they indicate the speed with which assets are
converted or turned over into sales.
ing capital turnover ratio



(a) WORKING CAPITAL TURNOVER RATIO
Working capital of a concern is directly related to sales.
Working capital= current assets current liabilities
It indicates the velocity of the utilization of net working capital.
This indicates the no. of times the working capital is turned over in the
course of a year. A higher ratio indicates efficient utilization of working
capital and a lower ratio indicates inefficient utilization.
Working capital turnover ratio=cost of goods sold/workingcapital.
Components of working capital:
Current assets Current liabilities
92

Cash in hand Outstanding or accrued expenses
Cash at bank Bank overdraft
Bills receivable Bills payable
Prepaid expenses Short term advances
Short term investments Sundry creditors
Inventories Dividend payable
Work in progress Income tax payable
Marketable securities
Sundry debtors
(b) FIXED ASSETS TURNOVER RATIO
It is also known as sales to fixed assets ratio. This ratio measures the efficiency and profit
earning capacity of the firm. Higher the
ratio, greater is the intensive utilization of fixed assets. Lower ratio means
under-utilization of fixed assets.
Fixed assets turnover ratio = Cost of Sales/ Net fixed assets
Cost of Sales = Income from Services
Net Fixed Assets = Fixed Assets - Depreciation
(c) CAPITAL TURNOVER RATIOS
Sometimes the efficiency and effectiveness of the operations
are judged by comparing the cost of sales or sales with amount of capital
invested in the business and not with assets held in the business, though in
both cases the same result is expected. Capital invested in the business may be classified as long-
term and short-term capital or as fixed capital and working capital or Owned Capital and Loaned
Capital. All Capital
Turnovers are calculated to study the uses of various types of capital.
Capital turnover ratio= cost of goods sold/capital employed
Capital employed = capital+ reserves& surplus
Cost of goods sold = income from services
(d) CURRENT ASSETS TO FIXED ASSETS RATIO

93

This ratio differs from industry to industry. The increase in the
ratio means that trading is slack or mechanization has been used. A decline in the ratio means
that debtors and stocks are increased too much or fixed assets are more intensively used. If
current assets increase with the corresponding increase in profit, it will show that the business is
expanding.
Current assets to fixed assets ratio= current assets/ fixed assets
Current assets Fixed assets
Cash in hand Plant
Cash at bank Machinery
Bills receivables Land
Short term investment Building
Inventories Vehicles
Sundry debtors
Work in progress
Marketable securities
4. PROFITABILITY RATIOS

The primary objectives of business undertaking are to earn profits. Because profit is the engine,
that drives the business enterprise.





rice earning ratio

(a) NET PROFIT RATIO
Net profit ratio establishes a relationship between net profit (after tax) and sales and indicates the
efficiency of the management in manufacturing, selling administrative and other activities of the
firm.

Net profit after tax = net profit-( depreciation+ interest+ income tax)

94

Net sales = income from services
Net profit ratio = net profit after tax/ net sales
It also indicates the firms capacity to face adverse economic
conditions such as price competitors, low demand etc. Obviously higher the
ratio, the better is the profitability.
(b) RETURN ON TOTAL ASSETS
Profitability can be measured in terms of relationship between
net profit and assets. This ratio is also known as profit-to-assets ratio. It
measures the profitability of investments. The overall profitability can be
known.
Returns on assets = net profit / total assets

Net profit = earnings before interest and tax

Total assets = current assets+ fixed assets
(c) RESERVES AND SURPLUS TO CAPITAL RATIO
It reveals the policy pursued by the company with regard to
growth shares. A very high ratio indicates a conservative dividend policy
and increased ploughing back to profit. Higher the ratio better will be the
position.

Reserves& surplus to capital ratio = reserves& surplus/capital
(d) EARNINGS PER SHARE
Earnings per share is a small verification of return of equity and
is calculated by dividing the net profits earned by the company and those
profits after taxes and preference dividend by total no. of equity shares.

95

Earning per share = net profit after tax/ no. of equity shares
The Earnings per share is a good measure of profitability when
compared with EPS of similar other components (or) companies, it gives a
view of the comparative earnings of a firm.
(e) OPERATING PROFIT RATIO
Operating ratio establishes the relationship between cost of goods sold and other operating
expenses on the one hand and the sales on
the other.
Operating ratio = operating cost / net sales
However 75 to 85% may be considered to be a good ratio in case of a manufacturing under
taking.
Operating profit ratio is calculated by dividing operating profit
by sales.
Operating profit = net sales operating cost

Operating profit ratio = operating profit / sales
(f) PRICE - EARNING RATIO
Price earning ratio is the ratio between market price per equity
share and earnings per share. The ratio is calculated to make an estimate of appreciation in the
value of a share of a company and is widely used by
investors to decide whether (or) not to buy shares in a particular company.
Generally, higher the price-earning ratio, the better it is. If the
price earning ratio falls, the management should look into the causes that
have resulted into the fall of the ratio.
Price earning ratio = market price per share/ earning per share

Market price per share = capital + reserves& surplus / no. of equity shares

Earning per share = earnings before interest and tax / no. of equity shares
(g) RETURN ON INVESTMENTS
Return on share holders investment, popularly known as Return on investments (or) return on
share holders or proprietors funds is
96

the relationship between net profit (after interest and tax) and the
proprietors funds.
Return on shareholders investment = net profit after interest and tax / shareholders fund
The ratio is generally calculated as percentages by multiplying
the above with 100.





















97







FINANCIAL COMPARATIVE ANALYSIS

















98

BALANCE SHEET OF STATE BANK OF INDIA
FOR THE YEAR ENDING ON MARCH 2007-2011
IN RS CR.
2007-
2008
2008-
2009
2009-2010 2010-
2011

Absolute
change
%
change
Absolute
change
%
change
Absolute
change
%
change
Absolute
change
%
change
Capital &
Liabilities

Capital 105.17 19.98 3.41 0.0054 0.00 0.00 0.12 0.018
Reserve&
surplus
17628.83 57.28 8910.91 18.41 8001.5 13.96 (963.28) (1.47)
deposits 101882.85 23.39 204669.19 38.08 62043.1 8.36 129816.58 16.14
borrowings 12024.07 30.28 1986.27 3.83 49297.92 91.77 16557.36 16.07
Other
liabilities and
provisions
23320.04 38.83 27335.27 32.79 (30360.30) (27.42) 24911.69 31.009
TOTAL
CAPITAL
AND
LIABILITIES
154961.06 27.35 242905.77 33.66 88981.65 9.226 170322.47 16.16
2007-08 2008-09 2009-10 2010-11
Absolute
change
%
change
Absolute
change
%
change
Absolute
change
%
change
Absolute
change
%
change
Assets:
Investments 40352.39 27.055 86452.69 45.62 9836.11 3.56 9810.5 3.43
Advances 79431.71 23.54 125735 30.16 89410.95 16.48 124805.3 19.75
Fixed assets (314.22) (0.070) (543.32) (0.13) 543.32 0.15 314.22 0.076
Capital Work
In Progress
(37.05) (0.11) (31.74) (0.107) 31.74 0.1204 37.05 0.1255
Current assets (8665.09) (0.19) 2620.51 0.074 (2620.51) (0.069) 8665.09 0.24
TOTAL
ASSETS:
154961.06 27.35 242905.77 33.66 88981.65 9.226 170322.47 16.16
Interpretation :
The capital of bank increased by 19.98%in 07-08, 0.0054% in 08-09, 0.018% in 10-11.
There is no change in capital of the bank in the year 09-10
There is a huge fluctuation in the rate of increasing in reserves& surplus .
The bank is utilizing its reserves &surplus in an effective manner.
99

In 07-08 deposits increase by 23.39%, 08-09 it increase by 38.08%, 8.36% in 09-10,16.14% in
10-11.
There is a huge fluctuating rate of increase . in 08-09 it had fluctuate to 3.83%.
The investment in 10-11 has increased with a low rate as compared to the preceding years
.27.55% in 07-08,45.62% in 08-09,3.56% in 09-10,3.43% in 10-11.
The advances rose by 23.54% in 07-08,30.16% in 08-09,16.48% in 09-10, 19.75% in 10-11.
There has been a consistent decline in fixed assets in 07-08 and 08-09 0.070% ,0.13%
respectively. Increased by 0.15% in 09-10, 0.076% in 10-11.
There is a fall of current assets 0.19% in 07-08 mainly due to the repayment of deposits.0.074%
in 08-09, subsequent fall of current assets 0.069% in 09-10, and increase of 0.24% in 10-11.
PROFIT AND LOSS OF STATE BANK OF INDIA FOR THE YEAR ENDING ON
MARCH 2007-2011 IN RS CR.
INTERPRETATION:
Net Profit Of The Year: it shows a fluctuating trend i.e., increased by 48% in2007-08,35% in
2008-09,0.49% in 2009-10 and decline by 19% in 2010-11due to increased tax liability.
Interest Expended: it increases from 36% in 2007-08,18% in 2008-09, 10% in 2009-10 and
3.20% in 2010-11.
Particulars 2007-08 2008-09 2009-10

2010-11


absolute
change
%
change
absolute
change
%
change
absolute
change % change absolute change
%
change






INCOME:





operating income 11410.95 0.24 18131.04 0.31 9482.29 0.12 10367.38 0.12
EXPENDITURE:





interest expended 8492.26 0.36 10986.21 0.18 4407.19 0.10 1545.48 0.032
operating
expenses 1357.77 0.10
3514.11
0.24 6817.35 0.37 6489.87 0.26
total expenses
9223.14
0.21 15738.93 0.30 9437.47 0.14 12163.1 0.15
provision and
contingencies -626.89 -0.10 1238.61 0.24 -1787.07 0.14 12163.1 0.15
net profit of the
year 2187.81 0.48 2392.11 0.35 44.82 0.004914 -1795.68 -0.19
extraordinary
items 0 0 0 0 0 0 0 0
profit brought
forward 0 0 0 0 0 0 0 0
total profit/(loss): 2187.81 0.48 2392.11 0.35 44.82 0.004914 -1795.68 -0.19
100

BALANCE SHEET OF BANK OF BARODA FOR THE YEAR ENDING ON MARCH
2007-2011 IN RS CR.


2007-
2008
2008-
2009
2009-
2010
2010-
2011

absolute
change
%
change
absolute
change
%
change
absolute
change
%
change
absolute
change
%
change
capital &
liabilities:
Capital 0 0 0 0 0 0 27.28
0.07463
1
reserves&
surplus 2393.99
0.28897
5 1791.61
0.16777
9 2270.85
0.18210
5 5859.44
0.39749
6
Deposits
27118.1
5
0.21709
1
40362.8
2
0.26548
5
48647.3
1
0.25284
9
64395.2
2
0.26715
1
Borrowings 2784.49
2.43706
2 1709.04
0.43519
7 7714
1.36867
9 8957.76
0.67098
9
other liabilities 4156.71
0.49263
5 3943.74
0.31313
4
-
7722.18
-
0.46693 840.76
0.09536
8
TOTAL
LIABILITIE
S:
36453.3
4
0.25465
8
47807.2
1
0.26618
8
50909.9
8
0.22387
2
80080.4
6
0.28773
1

2007-08

2008-09

2009-10

2010-11


absolute
change
%
change
absolute
change
%
change
absolute
change
%
change
absolute
change
%
change
ASSETS


Investments 8926.44
0.25545
3 8575.81
0.19548
2 8736.5
0.16658
1
10078.2
5
0.16472
5
Advances
23080.4
5
0.27601
3
37284.5
8
0.34942
9
31049.3
9
0.21564
2
53641.0
7
0.30645
9
fixed assets 1338 1.2 (117) (0.05) (25) (0.01) 15 0.01
capital work in
progress 0 0 0 0 0 0 0 0
Total assets
36453.3
2
0.25465
8
47807.2
3
0.26618
8
50909.9
8
0.22387
2
80080.4
7
0.28773
1
INTERPRETATION:
The capital of the bank shows no change till 2009-10 but it increases by 7.40% in 2010-11.
There is a huge fluctuation in the increase of reserves and surplus. It increases by 28% in 2007-
08,16%in 2008-09,18% in 2009-10 and 39% in 2010-11.
The investments has increased with a low rate . 2007-08- 25%,2008-09 19%, 2009-10 16.6%,
2010-11-16.47%
101

There is a fluctuating in increase in advances 27% in 2007-08,34.9% in 2008-09, 21.5%in 2009-
10, 30.64% in 2010-11.
There is decline of fixed assets in 2008-09 and 2009-10 with 5% and 1% respectively. The
reason may be the increase in the rate of depreciation in the subsequent years.
There has been an increase in borrowings. 243% in 2007-08, 43.5% in 2008-09, 136% in 2009-
10,67% in 2010-11.

PROFIT AND LOSS OF BANK OF BARODA FOR THE YEAR ENDING ON MARCH
2007-11


absolute
change % absolute change %
absolute
change %
absolute
change %
2007-08 2008-09 2009-10 2010-11
particulars
income:
total income 3,270.1 30.87% 3,984.7 28.74% 1,655.5 9.27% 5,190.4 26.61%
expenditure:
interest expended 2,475.11 45.61% 2,066.50 26.15% 791 7.93% 2,324.8 21.61%
operating expenses 598.82 21.61% 474.39 14.08% 866.57 22.54% 958.65 20.35%
other provisions and
contingencies -212.90 -15.54% 652.15 56.36% -832.92
-
46.04% 723.60 74.12%
total expenses 2,861.0 29.90% 3,193.0 25.69% 824.3 5.28% 4,007.1 24.36%
net profit of the year 409.06 39.85% 791.68 55.15% 831.13 37.32% 1,183.35 38.69%
extra ordinary items 0 0.00% 0 0.00% 0 0.00% 0 0.00%
profit brought forward 0 0.00% 0 0.00% 0 0.00% 0 0.00%
total 409.06 39.85% 791.68 55.15% 831.13 37.32% 1,183.35 38.69%

INTERPRETATION:

The net profit of the year shows a fluctuating trend i.e., 39.85% in 2007-08,55.15% in2008-
09,37.32% in 2009-10and 38.69% in 2010-11.

The interest expended shows a fluctuating trend in 2007-08 to 2010-11
2007-08-45.61%,2008-2009-26.51% ,



102

BETA VALUATION :

state bank of
India bank of Baroda

beta 0.8 0.9


The graph shows the compare beta of SBI and BOB which is 0.8 and 0.9 which means that
both are comparatively good. There betas are<1 which means it is goodfor the investors to
invest in the bank as it is less risky in nature.
SUSTAINABLE EARNINGS:

SBI BOB
SUSTAINABLE
EARNINGS 8857 3136


0.74
0.76
0.78
0.8
0.82
0.84
0.86
0.88
0.9
state bank of
india
bank of baroda
beta
beta
103




CRAR% ANALYSIS :


SBI BOB
BASEL-II
CRAR% 11.98 14.52



8857
3136
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
SBI BOB
SUSTAINABLE EARNINGS
SUSTAINABLE EARNINGS
11.98
14.52
0
2
4
6
8
10
12
14
16
SBI BOB
BASEL-II CRAR%
BASEL-II CRAR%
104

CASH FLOW STATEMENT ANALYSIS OF BANK OFBARODA:

2007 2008 2009 2010 2011
NET PROFIT BEFORE TAX 1654.26
2207.1
6 3342.94 4238.06
5650.3
2
NET CASH FROM OPERATING
ACTIVITIES 5153.94
2241.8
2 1125.47
11252.4
5
11778.
81
NET CASH USED IN FROM INVESTING
ACTIVITIES -307.65 -235.13 -238.93 -335.01 -489.76
NET CASH USED IN FROM FINANCING
ACTIVITIES -20.56
2012.2
3 901.29 462.51
3177.9
6
NET (DECREASE)/INCREASE IN CASH
AND CASH EQUIVALENT 4825.73
4018.9
2 1787.83
11379.9
4
14467.
01
OPENING CASH 13454.64
18280.
37
22299.2
9
24087.1
2
35467.
06
CLOSING CASH 18280.37
22299.
29
24087.1
2
35467.0
6
49934.
07




CASH FLOW STATEMENT ANALYSIS OF STATE BANK OF INDIA:


2007 2008 2009 2010 2011
PARTICULARS

Net Profit Before Tax 7625.08 10438.9 14180.64 13926.1 14954.23
Net Cash From Operating Activities -1776.07 -856.87 29479.73 -1804.99 34282.52
Net Cash (used in)/from Investing activities
-284.56 -2798.01 -1651.93 -1761.52 -1245.53
Net Cash (used in)/from Financing Activities 9494.11 19371.12 5097.38 -3359.67 2057.11
Net (decrease)/increase In Cash and Cash Equivalents 7433.49 15716.24 32925.18 -6926.18 35094.1
Opening Cash & Cash Equivalents 44535.2 51968.69 71478.62 103110 87780.05
Closing Cash & Cash Equivalents 51968.69 67466.34 104403.8 96183.84 122874.2



105
















FINDINGS, SUGGESTIONS AND CONCLUSIONS









106

State bank of India Bank of Baroda
Particulars
1. Beta valuation 0.8 0.9
2. sustainable earnings ( standard
deviation)
504 1044
Average sustainable earnings 8857 3136
3. Cash flow statement analysis:

14467.01 35094.1
4. Basel-II CRAR% 11.98 14.52
5. Profit & Loss statement analysis (19%) 38.69%
6. Balance sheet statement analysis 16 28%
7. Ratio analysis:
a. P/E ratio 21.92 9.15
b. P/BV 2.7 1.8
c. EV/EBIDTA 17.07 16.64




YEAR 2011

SBI BOB
P/E 21.92 9.15
P/BV 2.7 1.8
EV/EBIDTA 17.07 16.64

107



INTERPRETATION:
P/E RATIO OF State bank of India is 21.92 which is more than the P/E ratio of its peerset bank
of Baroda 9.15 which means that it is overvalued and strongly sound in nature.
P/BV
The ratio of state bank of india is 2.7 and that of its peerset is 1.8 which means the bank is highly
overvalued in nature
EV/EBIDTA
The ratio of state bank of india is 17.07 and that of its peerset is 16.64 which means that the bank
is closely related to its peerset.
Both are fundamentally sound in nature.






21.92
2.7
17.07
9.15
1.8
16.64
0
5
10
15
20
25
P/E P/BV EV/EBIDTA
SBI
BOB
108

SBI BOB
credit deposit ratio 79.9 73.87
CASH DEPOSIT 8.96 6.11



CREDIT-DEPOSIT RATIO:
This ratio assess the credit performance of the bank.
The graph shows that state bank of india and bank of baroda both are performing well as both
banks has overall good efficiency in nature.
SBI-79.9
BOB 73.87
State bank of India has overall good efficiency and performance of banking institutions.
CASH DEPOSIT RATIO:
This ratio assesses the cash performance of the bank.
The graph shows that state bank of India and bank of Baroda is performing well in nature.



79.9
73.87
8.96
6.11
0
10
20
30
40
50
60
70
80
90
SBI BOB
credit deposit ratio
CASH DEPOSIT
109



SUSTAINABLE
EARNINGS
SBI BOB
STANDARD DEVIATION 504 1044
AVERAGE 8857 3136



OUTCOME:
Since the average sustainable earnings is high and standard deviation of state bank of India is
low which means that the bank is fundamentally sound and it is performing good as compared to
bank of Baroda.







504
1044
8857
3136
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
SBI BOB
SUSTAINABLE EARNINGS
STANDARD DEVIATION
AVERAGE
110

INDUSTRY SBI BOB
P/E
RATIO 6.43 21.92 9.15




INTERPRETATION:
Since the industry P/E ratio is 6.43 ,SBI 21.92,BOB 9.15.
It means that State bank of India P/E ratio is more than the industry/peerset company which
means it is overvalued and it is fundamentally sound in nature as compared to its industry/
peerset bank of Baroda.







6.43
21.92
9.15
0
5
10
15
20
25
INDUSTRY SBI BOB
P/E RATIO
P/E RATIO
111

SBI BOB
dividend payout ratio 26.03 17.76


INTERPRETATION:
SBI 26.03
BOB 17.76
There is increase in ratio in the year 2011 in both the banks .


SBI BOB
Earnings Per Share 116.07 108.33
Book Value 1,023.40 536.16
Dividend Per Share 30 16.5
Price Earning (P/E) 21.92 9.15
Price to Book Value (
P/BV) 2.7 1.8

26.03
17.76
0
5
10
15
20
25
30
SBI BOB
dividend payout ratio
dividend payout ratio
112



It is indicated that EPS AND DPS ARE INCREASING OF STATE BANK OF INDIA AS
COMPARED TO BANK OF BARODA .
THE REASON MAY BE THAT THERE IS MORE USE OF DEBTTHAN DUE TO
IMPROVED OPERATIONS.
P/E RATIO AND P/BV RATIO BOTH ARE INCREASING . .
THE OVERALL EFFICIENCY OF THE COMPANY IS GOOD AND IT IS PERFORMANCE
IS BETTER IN THE BANKING INSTITUTION.


CONCLUSIONS:
1. State Bank Of India has overall better efficiency and has performed better in the banking
institution as compared to Bank Of Baroda.
2. EPS And DPS Of State Bank Of India is increasing due to increase in the use of debt
rather than the use of improved operations.
3. The P/E Ratio Of State Bank Of India is high as compared to its industry and Bank Of
Baroda which means that SBI is using its funds in a better manner and it is fundamentally
sound in nature.
4. Beta Of State Bank Of India And Bank Of Baroda is less than the market beta which
means that both banks are giving less returns but they are less risky and investors can
invest in these shares.
5. The Average Sustainable Earnings Of State Bank Of India is high and the standard
deviation is low so the bank has its earnings is sustain and more robust in nature as
compared to Bank of Baroda.
6. The Credit Deposit Of State Bank Of India And Bank Of Baroda is close but the ratio is
high which means that State Bank Of India has overall good efficiency and better
performance, i.e., the bank has high credit deposit ratio.




113

REFERENCES:

http://en.wikipedia.org/wiki/State_Bank_of_India
http://en.wikipedia.org/wiki/Bank_of_Baroda
http://www.moneycontrol.com/financials/state bank of India/balance-sheet/SBI
http://www.moneycontrol.com/financials/bankofbaroda/balance-sheet/BOB
http://www.moneycontrol.com/financials/bankofbaroda/profit&loss/BOB
http://www.moneycontrol.com/financials/bankofbaroda/profit&loss/SBI
www.google.com
www.capitaline.com
www.sbi.com
www.investopedia.com














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