Recent developments in banking sector

Indian banking sector forecast to 2013

5 force model
2. trend in demand (casa)and time deposit
3.credit deposite ratoio
4.No. of braches on rise
Trend in gross and net
5.Key parameters to keep in mind while analyzing a banking stock.

Ratio analsis
Face value
Book value
EPS
Earning retention ratio
Dividend per share
Dividend payout ratio
Return on net worth
Current ratio
Ouick ratio
Capital adequacy ratio
Comparison
p/e
eps
market cap
52 week high low

http://www.equitymaster.com/result.asp?symbol=SBI&name=SBI-Stock-Quote-Chart
Icici BANK

ICICI BANK
(ICBK)
divSec5

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Jul 18, 2012 1:23:00

PM

Live BSE Quotes

Price
(Rs)
934.00

Open (Rs)
923.00

High (Rs)
937.00

Low
(Rs)
923.00

%
Change
1.18

Volume
197,555

Value (Rs)
184,516,370

52Week
H/L
1,083.00
/ 641.00

Jul 18, 2012 1:19:59

PM

Live NSE Quotes

Price
(Rs)
934.90

Open (Rs)
923.15

High (Rs)
937.40

Low
(Rs)
923.15

%
Change
1.30

Volume
1,961,065

Value (Rs)
1,822,868,749

52Week
H/L
1,084.00
/ 641.00

Valuation
EPS (Rs)*
56.09
Get Quote
stock

P/E Ratio (x)

16.65

Market Cap (Rs

P/BV (x)
m)
1.76
1,076,631.14
BSE Sensex | S&P CNX
*Trailing 12 months earnings,
excluding extraordinary /
Nifty | Best Performing
exceptional items.
Stocks

AXIS BANK
(UTIB)

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Jul 18, 2012 1:18:00

PM

Live BSE Quotes

Price
(Rs)
1,030.90

Open (Rs)
1,030.00

High (Rs)
1,038.40

Low
(Rs)
1,022.10

%
Change
0.74

Volume
176,858

Value (Rs)
182,322,912

52Week
H/L
1,367.10
/ 784.50

Jul 18, 2012 1:19:59

PM

Live NSE Quotes

Price
(Rs)
1,030.00

Open (Rs)
1,030.10

High (Rs)
1,038.60

Low
(Rs)
1,022.55

%
Change
0.61

Volume
1,354,393

Value (Rs)
1,395,011,246

52Week
H/L
1,367.55
/ 784.00

Valuation
EPS (Rs)*
107.50

P/E Ratio (x)

9.59

Market Cap (Rs

m)
427,091.56

P/BV (x)
1.88

Get Quote
stock

SBI

*Trailing 12 months earnings,

excluding extraordinary /
exceptional items.

BSE Sensex | S&P CNX

Nifty | Best Performing
Stocks

(SBI)
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Jul 18, 2012 1:38:00

PM

Live BSE Quotes

Price
(Rs)
2,167.00

Open (Rs)
2,193.00

High (Rs)
2,201.40

Low
(Rs)
2,163.10

%
Change
-1.45

Volume
236,978

Value (Rs)
513,531,326

52Week
H/L
2,529.50
/
1,576.00

Jul 18, 2012 1:35:00

PM

Live NSE Quotes

Price
(Rs)
2,168.50

Open (Rs)
2,195.00

High (Rs)
2,202.60

Low
(Rs)
2,162.25

%
Change
-1.39

Volume
1,052,553

Value (Rs)
2,289,734,322

52Week
H/L
2,529.70
/
1,571.10

Valuation
EPS (Rs)*
174.47

P/E Ratio (x)

12.42

Market Cap (Rs

m)

P/BV (x)
1.37

Get Quote
stock

1,454,143.68
BSE Sensex | S&P CNX
Nifty | Best Performing
Stocks

*Trailing 12 months earnings,

excluding extraordinary /
exceptional items.

Comparison
Result
SBI
SBI is India's largest bank in the country with an asset size
of over ` 12 trillion. Although the bank's loan book is largely
skewed towards corporate (large, mid and small) loans
(51% of total advances in FY11), the retail side is also fast
scatching up. SBI has a network of almost 13,700 branches
and over 20,000 ATMs across the country.
ICICI BANK
With 7.2% share of India's total non-food credit
disbursements and 9% of the banking system's deposits in
FY11, ICICI Bank is the second largest bank in the country
after SBI in terms of asset size. The bank has lost its share
of the banking sector's advances from 10.2% in FY07 to
6.8% in FY11. At the end of March 2011, the bank had
assets of over US$ 104 bn (Rs 4.7 trillion) and a franchise
of over 5,700 ATMs and 1,800 branches spread across the

country. Retail assets constituted 33% of advances in FY11

as against 65% in FY07. The bank is focusing on loan
origination in the large corporate, SME and agriculture
segments and on non-fund based products and services.
Besides the bank itself being the market leader across retail
loan portfolios, its subsidiaries ICICI Life Insurance, ICICI
General Insurance and ICICI AMC are leaders in their
respective businesses.
EQUITY SHARE
DATA
SBI
31/3/2012

ICICI BANK
31/3/2012

SBI/
ICICI BANK

2,960

1,128

262.4%

High

Rs

Low

Rs

1,576

652

241.7%

Sales per share

Rs

2,193.6

329.6

665.4%

Earnings per share

Rs

-13.4

54.1

-24.8%

Cash flow per share

Rs

684.8

310.5

220.6%

Dividends per share

Rs

35.00

16.50

212.1%

Dividend yield (eoy)

1.5

1.9

83.2%

Rs

1,583.1

531.6

297.8%

671.04

1,152.59

58.2%

PI

ESOS

Price / Sales ratio

1.0

2.7

38.3%

Avg P/E ratio

-168.9

16.4

-1,026.6%

P/CF ratio (eoy)

3.3

2.9

115.5%

Price / Book Value ratio

1.4

1.7

85.6%

Book value per share

Shares outstanding (eoy)
Bonus/Rights/Conversions

Dividend payout
Avg Mkt Cap

-260.6

30.5

-854.5%

Rs m

1,521,919

1,025,805

148.4%

No. of employees

`000

215

58

369.8%

Total wages/salary

Rs m

220,840

51,049

432.6%

Avg. sales/employee

Rs Th

6,831.1

6,519.8

104.8%

Avg. wages/employee

Rs Th

1,024.9

876.0

117.0%

Avg. net profit/employee

Rs Th

712.0

1,311.5

54.3%

Net Sales

Rs m

1,471,974

379,949

387.4%

Other income

Rs m

298,354

286,634

104.1%

Total revenues

Rs m

1,770,328

666,583

265.6%

Gross profit

Rs m

1,309,530

365,884

357.9%

Depreciation

Rs m

468,560

295,520

158.6%

Interest

Rs m

893,196

250,132

357.1%

Profit before tax

Rs m

246,128

106,866

230.3%

Minority Interest

Rs m

-6,302

-2,947

213.8%

Prior Period Items

Rs m

Extraordinary Inc (Exp)

Rs m

Tax

Rs m

86,395

27,490

314.3%

Profit after tax

Rs m

153,431

76,429

200.7%

INCOME DATA

Gross profit margin

89.0

96.3

92.4%

Effective tax rate

35.1

25.7

136.5%

Net profit margin

10.4

20.1

51.8%

Current assets

Rs m

11,636,702

2,921,254

398.3%

Current liabilities

Rs m

790.6

768.9

102.8%

43.0

43.0

100.0%

Days

BALANCE SHEET
DATA

Net working cap to sales

Current ratio
Inventory Turnover
Debtors Turnover

Days

Net fixed assets

Rs m

74,080

54,320

136.4%

Share capital

Rs m

6,710

11,528

58.2%

"Free" reserves

Rs m

571,380

438,127

130.4%

Net worth

Rs m

1,062,300

612,765

173.4%

Long term debt

Rs m

1,579,914

1,612,966

98.0%

Total assets

Rs m

18,299,562

6,041,914

302.9%

Interest coverage

1.3

1.4

89.4%

Debt to equity ratio

1.5

2.6

56.5%

Sales to assets ratio

0.1

0.1

127.9%

Return on assets

5.7

5.4

105.8%

Return on equity

14.4

12.5

115.8%

Return on capital

42.9

15.9

269.6%

Exports to sales

0.0

0.0

Imports to sales

0.0

0.0

Rs m

Net fx

Comparison
Result
AXIS BANK
Axis Bank is one of the most aggressive players in the
private sector banking industry having more than tripled its
share in non-food credit over the last 9 years from 1% in
FY02 to 3.8% in FY11. The bank in the last few years has
retained its focus on lending to the corporate segment and
at the same time, built a strong fee income revenue stream.
The bank's strategy is to aggressively tap the retail domain
via the use of ATMs. Following this strategy, the bank has
set up a network of 6,270 ATMs, the third largest in the
country. During the period FY06 to FY11, Axis Bank has
grown

ICICI BANK
With 7.2% share of India's total non-food credit
disbursements and 9% of the banking system's deposits in
FY11, ICICI Bank is the second largest bank in the country
after SBI in terms of asset size. The bank has lost its share
of the banking sector's advances from 10.2% in FY07 to
6.8% in FY11. At the end of March 2011, the bank had
assets of over US$ 104 bn (Rs 4.7 trillion) and a franchise
of over 5,700 ATMs and 1,800 branches spread across the
country. Retail assets constituted 33% of advances in FY11
as against 65% in FY07. The bank is focusing on loan
origination in the large corporate, SME and agriculture
segments and on non-fund based products and services.
Besides the bank itself being the market leader across retail
loan portfolios, its subsidiaries ICICI Life Insurance, ICICI
General Insurance and ICICI AMC are leaders in their
respective businesses.
EQUITY SHARE
DATA
AXIS BANK
31/3/2012

ICICI BANK
31/3/2012

AXIS BANK/
ICICI BANK

1,460

1,128

129.4%

High

Rs

Low

Rs

921

652

141.3%

Sales per share

Rs

532.3

329.6

161.5%

Earnings per share

Rs

74.5

54.1

137.6%

Cash flow per share

Rs

222.1

310.5

71.5%

Dividends per share

Rs

16.00

16.50

97.0%

Dividend yield (eoy)

1.3

1.9

72.5%

Book value per share

Shares outstanding (eoy)

Rs

548.9

531.6

103.3%

413.20

1,152.59

35.8%

ESOP

ESOS

Bonus/Rights/Conversions
Price / Sales ratio

2.2

2.7

82.8%

Avg P/E ratio

16.0

16.4

97.2%

P/CF ratio (eoy)

5.4

2.9

187.0%

Price / Book Value ratio

2.2

1.7

129.6%

Dividend payout
Avg Mkt Cap

21.5

30.5

70.5%

Rs m

491,915

1,025,805

48.0%

No. of employees

`000

32

58

54.5%

Total wages/salary

Rs m

22,540

51,049

44.2%

Avg. sales/employee

Rs Th

6,930.1

6,519.8

106.3%

Avg. wages/employee

Rs Th

710.2

876.0

81.1%

Avg. net profit/employee

Rs Th

1,329.6

1,311.5

101.4%

Net Sales

Rs m

219,949

379,949

57.9%

Other income

Rs m

54,872

286,634

19.1%

Total revenues

Rs m

274,821

666,583

41.2%

Gross profit

Rs m

208,534

365,884

57.0%

Depreciation

Rs m

60,999

295,520

20.6%

INCOME DATA

Interest

Rs m

139,691

250,132

55.8%

Profit before tax

Rs m

62,716

106,866

58.7%

Minority Interest

Rs m

-2,947

0.0%

Prior Period Items

Rs m

Extraordinary Inc (Exp)

Rs m

Tax

Rs m

20,518

27,490

74.6%

Profit after tax

Rs m

42,198

76,429

55.2%

Gross profit margin

94.8

96.3

98.5%

Effective tax rate

32.7

25.7

127.2%

Net profit margin

19.2

20.1

95.4%

Current assets

Rs m

1,697,595

2,921,254

58.1%

Current liabilities

Rs m

771.8

768.9

100.4%

43.0

43.0

100.0%

Inventory Turnover

Days

Debtors Turnover

Days

Net fixed assets

Rs m

22,841

54,320

42.0%

Share capital

Rs m

4,132

11,528

35.8%

"Free" reserves

Rs m

173,396

438,127

39.6%

Net worth

Rs m

226,817

612,765

37.0%

Long term debt

Rs m

340,717

1,612,966

21.1%

Total assets

BALANCE SHEET
DATA

Net working cap to sales

Current ratio

Rs m

2,854,165

6,041,914

47.2%

Interest coverage

1.4

1.4

101.5%

Debt to equity ratio

1.5

2.6

57.1%

Sales to assets ratio

0.1

0.1

122.5%

Return on assets

6.4

5.4

117.9%

Return on equity

18.6

12.5

149.2%

Return on capital

35.7

15.9

224.2%

Exports to sales

0.0

0.0

0.0

0.0

Rs m

Imports to sales
Net fx

Comparison Result
AXIS BANK
Axis Bank is one of the most aggressive players in the private sector banking
industry having more than tripled its share in non-food credit over the last 9 years
from 1% in FY02 to 3.8% in FY11. The bank in the last few years has retained its
focus on lending to the corporate segment and at the same time, built a strong fee
income revenue stream. The bank's strategy is to aggressively tap the retail
domain via the use of ATMs. Following this strategy, the bank has set up a

network of 6,270 ATMs, the third largest in the country. During the period FY06 to
FY11, Axis Bank has grown
SBI
SBI is India's largest bank in the country with an asset size of over ` 12 trillion.
Although the bank's loan book is largely skewed towards corporate (large, mid and
small) loans (51% of total advances in FY11), the retail side is also fast scatching
up. SBI has a network of almost 13,700 branches and over 20,000 ATMs across
the country.
EQUITY SHARE
DATA
AXIS BANK
31/3/2012

SBI
31/3/2012

AXIS BANK/
SBI

1,460

2,960

49.3%

High

Rs

Low

Rs

921

1,576

58.4%

Sales per share

Rs

532.3

2,193.6

24.3%

Earnings per share

Rs

74.5

-13.4

-554.4%

Cash flow per share

Rs

222.1

684.8

32.4%

Dividends per share

Rs

16.00

35.00

45.7%

Dividend yield (eoy)

1.3

1.5

87.1%

Rs

548.9

1,583.1

34.7%

413.20

671.04

61.6%

ESOP

PI

Book value per share

Shares outstanding (eoy)
Bonus/Rights/Conversions
Price / Sales ratio

2.2

1.0

216.3%

Avg P/E ratio

16.0

-168.9

-9.5%

P/CF ratio (eoy)

5.4

3.3

161.9%

Price / Book Value ratio

2.2

1.4

151.4%

Dividend payout
Avg Mkt Cap

21.5

-260.6

-8.2%

Rs m

491,915

1,521,919

32.3%

No. of employees

`000

32

215

14.7%

Total wages/salary

Rs m

22,540

220,840

10.2%

Avg. sales/employee

Rs Th

6,930.1

6,831.1

101.4%

Avg. wages/employee

Rs Th

710.2

1,024.9

69.3%

Avg. net profit/employee

Rs Th

1,329.6

712.0

186.7%

Net Sales

Rs m

219,949

1,471,974

14.9%

Other income

Rs m

54,872

298,354

18.4%

Total revenues

Rs m

274,821

1,770,328

15.5%

Gross profit

Rs m

208,534

1,309,530

15.9%

Depreciation

Rs m

60,999

468,560

13.0%

Interest

Rs m

139,691

893,196

15.6%

Profit before tax

Rs m

62,716

246,128

25.5%

Minority Interest

Rs m

-6,302

0.0%

Prior Period Items

Rs m

Extraordinary Inc (Exp)

Rs m

Tax

Rs m

20,518

86,395

23.7%

INCOME DATA

Profit after tax

Rs m

42,198

153,431

27.5%

Gross profit margin

94.8

89.0

106.6%

Effective tax rate

32.7

35.1

93.2%

Net profit margin

19.2

10.4

184.1%

Current assets

Rs m

1,697,595

11,636,702

14.6%

Current liabilities

Rs m

771.8

790.6

97.6%

43.0

43.0

100.0%

Inventory Turnover

Days

Debtors Turnover

Days

Net fixed assets

Rs m

22,841

74,080

30.8%

Share capital

Rs m

4,132

6,710

61.6%

"Free" reserves

Rs m

173,396

571,380

30.3%

Net worth

Rs m

226,817

1,062,300

21.4%

Long term debt

Rs m

340,717

1,579,914

21.6%

Total assets

Rs m

2,854,165

18,299,562

15.6%

Interest coverage

1.4

1.3

113.6%

Debt to equity ratio

1.5

1.5

101.0%

Sales to assets ratio

0.1

0.1

95.8%

BALANCE SHEET
DATA

Net working cap to sales

Current ratio

Return on assets

6.4

5.7

111.4%

Return on equity

18.6

14.4

128.8%

Return on capital

35.7

42.9

83.2%

Exports to sales

0.0

0.0

0.0

0.0

Rs m

Imports to sales
Net fx

BSE

Jul 18, 13:45

930.80
7.65 (+0.83%)
VOLUME 215,956
5-Day
10-Day
30-Day
5-Day
10-Day
30-Day

Prev. Close
923.15

Open Price
923.00

Bid PRICE (QTY.)

445,032
459,460
446,542
445,032
459,460
446,542

930.80 (75)

Offer PRICE (Qty.)

931.25 (201)
Today's Low/High923.00937.00
52 Wk Low/High641.001083.00

LIVE
NSE

Jul 18, 13:45

931.70
8.80 (+0.95%)
VOLUME 2,179,051
AVERAGE VOLUME
5-Day
10-Day
30-Day
5-Day
10-Day
30-Day

Prev. Close
922.90

Open Price
923.15

Bid PRICE (QTY.)

931.70 (226)

Offer PRICE (Qty.)

931.80 (50)
Today's Low/High923.15937.40
52 Wk Low/High641.001084.00

2,686,241
3,531,676
3,630,037
2,686,241
3,531,676
3,630,037

Key Financial Ratios of ICICI

Bank
Mar
'12

Mar '11

Mar '10

Mar '09

Mar '08

Face Value

10.00

10.00

10.00

10.00

10.00

Dividend Per Share

16.50

14.00

12.00

11.00

11.00

Operating Profit Per Share (Rs)

76.15

64.08

49.80

48.58

51.29

Net Operating Profit Per Share (Rs)

346.19

281.04

293.74

343.59

354.71

Free Reserves Per Share (Rs)

376.49

358.12

356.94

351.04

346.21

--

--

--

--

--

4.44

4.01

5.66

3.66

3.51

Adjusted Cash Margin(%)

17.45

17.52

13.64

11.45

11.81

Net Profit Margin

16.14

15.91

12.17

9.74

10.51

Return on Long Term Fund(%)

52.09

42.97

44.72

56.72

62.34

Return on Net Worth(%)

10.70

9.35

7.79

7.58

8.94

Adjusted Return on Net Worth(%)

10.70

9.27

7.53

7.55

8.80

Return on Assets Excluding Revaluations

524.01

478.31

463.01

444.94

417.64

Return on Assets Including Revaluations

524.01

478.31

463.01

444.94

417.64

Interest Income / Total Funds

9.07

8.41

8.82

9.82

10.60

Net Interest Income / Total Funds

3.89

4.01

4.08

3.99

4.29

Non Interest Income / Total Funds

0.03

--

0.08

0.08

0.02

Interest Expended / Total Funds

5.18

4.41

4.74

5.83

6.31

Operating Expense / Total Funds

1.89

2.09

2.59

2.60

2.76

Profit Before Provisions / Total Funds

1.91

1.77

1.41

1.30

1.40

Net Profit / Total Funds

1.47

1.34

1.08

0.96

1.12

Loans Turnover

0.18

0.17

0.17

0.18

0.20

Total Income / Capital Employed(%)

9.10

8.41

8.90

9.90

10.62

Interest Expended / Capital Employed(%)

5.18

4.41

4.74

5.83

6.31

Total Assets Turnover Ratios

0.09

0.08

0.09

0.10

0.11

Asset Turnover Ratio

4.23

3.55

4.60

5.14

5.61

68.00

65.29

68.44

73.09

76.28

0.37

0.02

0.92

0.86

0.17

20.77

24.81

29.05

26.22

26.00

0.73

0.94

0.72

1.74

4.43

Investment Valuation Ratios

Bonus in Equity Capital

Profitability Ratios
Interest Spread

Management Efficiency Ratios

Profit And Loss Account Ratios

Interest Expended / Interest Earned
Other Income / Total Income
Operating Expense / Total Income
Selling Distribution Cost Composition
Balance Sheet Ratios

Capital Adequacy Ratio

18.52

19.54

19.41

15.53

13.97

Advances / Loans Funds(%)

65.30

64.96

58.57

69.86

72.67

Credit Deposit Ratio

92.23

87.81

90.04

91.44

84.99

Investment Deposit Ratio

61.16

59.77

53.28

46.35

42.68

Cash Deposit Ratio

8.60

11.32

10.72

10.14

10.12

Total Debt to Owners Fund

4.23

4.10

3.91

4.42

5.27

Financial Charges Coverage Ratio

0.39

0.44

0.33

0.25

1.25

Financial Charges Coverage Ratio Post Tax

1.31

1.34

1.26

1.20

1.20

0.13

0.11

0.14

0.13

0.11

16.71

15.86

14.70

5.94

6.42

Dividend Payout Ratio Net Profit

32.82

35.23

37.31

36.60

33.12

Dividend Payout Ratio Cash Profit

30.36

31.76

32.33

31.00

29.08

Earning Retention Ratio

67.19

64.49

61.40

63.23

66.35

Cash Earning Retention Ratio

69.65

68.01

66.70

68.87

70.51

AdjustedCash Flow Times

36.54

39.77

44.79

49.41

52.34

Mar
'12

Mar '11

Mar '10

Mar '09

Mar '08

56.09

44.73

36.10

33.76

37.37

524.01

478.31

463.01

444.94

417.64

Debt Coverage Ratios

Leverage Ratios
Current Ratio
Quick Ratio
Cash Flow Indicator Ratios

Earnings Per Share

Book Value
Source : Dion Global Solutions Limited