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Bank
Introduction-:
Performance evalution is the basic of a
management control system. Periodic comparision
of the actual costs, revenues and investment with
budgeted cost revenues and investment can help is
management is taking decision about future
allocation.
Performance evalution should be done in all
respect of all responsibility centres.
1. cost centre
2. investment centre
3. profit centre
The best way of encourage manager to achive the
desired level of performance is to measure their
performance in comparision to budgeted results.
Meaning of banking:
A bank is a licensed and regulated financial
institution that lends money accepted deposite and
carries out other financial transaction for its clients.
Definition of a Bank
Oxford Dictionary defines a Bank as an
establishment for custody of a mobsney. Which it
pays out on customers order.
History of Bank:
Banking began with the first prototype banks of merchants of the ancient world.
Which made grain loans to farmers and traders who carried goods between cities.
This began around 2000 BC in Assyria and babylonia. Later in ancient Greece and
during the roman Empire, lander based in tamples made loans and added two
important innovations. They accepted deposit and changed moneys.archaeology
from this perid in ancient china and india also shows evidence of money lending
activity.banking activity were sufficiently important in babylonia in the second
millennium b.c that written standard of practice were considered
necessary.Nevertheless ,some of the basic concepts underlying todays banking
system were present in these ancient arrangements. A wide range of a deposite was
accepted , loans were made, and borrowers paid interest to lander.1
5. Credit union- are similar to banks, but they are not for
profit organization owned by their customers. Credit union ofter
products and services more or less identical to most retail and
commercial banks.
History of SBI-:
The roots of the state bank of india lie in the first decade of the
19th century, when the bank of Calcutta, leter renamed the bank
of Bengal, was established on 2 june 1806. The bank of bangal
was one of three presidency banks, the other two being bank of
Bombay and bank of madras. All three presidency banks were
incorporated as join stock companies and were the result of royal
charters. These three bank received the exclusive right to issue
paper currency till 1861 when, with the paper currency act , the
right was taken over by the government of india, the imperial
bank of india renamed a joint stock company but without
government participation. Pursuant to the provision of the state
bank of india act of a 1955, the reserve bank of india, which is
indian central bank ,acquired a controlling interest in the imperial
bank of india. On 1 july 1955, the imperial bank of india became
state bank of india . in 2008, the government of india acquired
the reserve banks of in indias stake in sbi so as to remove any
conflict because the RBI is the countrys banking regulatory
authority. In 1959, the government pass the state bank of india
act. This made SBI subsidiaries of eight that had belonged to
princely states prior to their nationalized and operational take
over between September 1959 and October 1960, which made
eight state bank association of SBI. This acquisition was in tune
with the first five year plan, which prioritized the development of
rular in india. The government integrated these bank into the
state bank of india system to expand its rural outreach. In 1963
SBI merged state bank of Jaipur and state bank of Bikaner. SBI has
acquired local bank in rescues. The first was the bank of bihar,
which SBI acquired in 1969, together with its 28 branches. The
next year SBI acquired national bank of Lahore , which had 24
branches. Five tear later in 1975 SBI acquired in krishnaram
baldeo bank, which has been establised in1916 in Gwalior state,
under the patronage of maharaja madho rao scindia. The bank
had been the Dukan Pichadi, a small moneylender, owned by the
maharaja. The new first manager was jall N. Broacha,a parsi. In
1985,SBI acquired the bank of cochine in kerala, which had 120
branches. The new logo of SBI was the aerial view of the Kankaria
lake in Ahmedabad Gujarat on 1 october 1971 and was desined
by sekhar kammat.there has been perposal to merge all the
associate banks into SBI to create a mega bank and streamline
the group opreations.(9) the first step towards unification
occurred on 13 august 2008 when state bank of saurashtra
merged with SBI, reducing the number of association state bank
from seven or six.On 19 june 2009, the SBI board approved the
absorption of state bank of indore. SBI holds 98.3% in state bank
of indore.(10) the acquisition of state bank of indore added 470
branches to SBIs total assets will approach 10 trillion. The total
assets of SBI and state bank of indore were 9,981,190 millon as of
march 2009. The process of merging of state bank of indore was
completed by april 2010, and the SBI indore brenches started
functioning of SBI branches on 26 Aug 2010.(11) On 7 Oct 2014,
Arundhati bhattacharya became the first women to be appointed
chairperson of the bank.
References
. Gary dessler-performance evalution are the basic on
which various administrative decision: A Defination.,
.oxfard- Banks pays out on customer order: A definition;
1Davies,G.(1994) A history of money from ancient time
to the present day, Cardiff,UK,University of wales press.
2Davies(1994)op.cit.
3Hoggson,N.F. (1926) banking Through the Age, New
York,Dodd,Mead&company.
4Goldwaite,R.A.(1995) Banks, place and entrepreneurs
in renaissance Florence,Aldershot,Hampshire,Great
Britain,variorum.
5Goldwaite (1995)o.cit.
6Davies (1994) op.cit.
7Klebaner,b,j.(1974) Commercial banking in the united
state : A history., Hinsdale,Illinois,Dryden press.
< f g Fortune Global 500 2016: state bank of
india.CNN,Retrieved 10 october 2016.
< As indians bank wait in fear of the rupee hitting 70 to
the dollar,s here a list of best 1 indian banks revenue.
Ibtime.com(4 september2013). Retrieved on 2013-12-06.
< History of the evalution of the SBI volumes 1,2 and 3
and banking beyond boundaries (penguin,2011)
< ab SBI annual report 2014-15. State bank of india .
Retrieved 14 january 2016.
< Fortune Global 500 list CNN Money. Retrieved 22 july
2016.
< Banking theory on law practice. Tata McGraw-hill
education.p.8.Retriew 4 november 2014.(First 1=missing
(last1= in Authors list.
< SBI accounts of one fifth of countrys loans.
Livemint.com. 25 january 2009. Retrieved 20 August
2010.
< indian bank association. Iba.org.in.23 April
2005.Retrived 21 december 2010.
< business standard (21 june 2010). Approvals for state
bank of indore merger by july:SBI.
< Economic times (26 August 2010) state bank of indore
branches to became SBI units from aug 26 : SBI; The time
of india.
< Arundhati bhattacharya, first woman to head SBI.
< SBI leads in opening bank account under jan dhan
Yojana. The economic time 11 september 2014 .
Retrieved 30 september 2014.
< SBI of set up the branches in chaina Tianjin. Forbes 21
november 2007 Retrieved 16 july 2010.
Review of literature
Poonam Mahajan and et.al (2012)1 empirically
predicts the return on the assets performance of the SBI
in india for year 2005-06 and 2009-10. A Sample for SBI is
taken for this study. Backward stepwise regression on
analysis is used to study the impact of these determinats
on the performance of bank.ROA is taken for the
depended variable, while other variable like spread ratio,
provision and contingencies, non interest income, credit-
deposite ratio, oprating expenses ratio,controlled in the
study. The result reveld the spread, credit deposite ratio,
Non- performing assets,non interest income and provision
and contingencieshave the capacity of predicting the
profitability of SBI.
Sufian Fadzlan (2002)2- examined the internal and
external factor that influenced the performance of bank
oprating in indian banking sector durind in period 2000-
2008. The empirical findings from this study suggest that
credit risk, network embeddedness, oprating expanses,
liquidity and size have statistically significant impact on
the profitability of SBI. However, the impact is not uniform
across bank of different nation.during the period of study,
the empirical findings do not lend support for the limited
from of global advantages hypothesis. Likewise , the
liability of unfamiliamess hyothesisis also rejected, since
the study do not finding significant advantages accruing
to foeign bank from the Asian.
Hitesh Arora and padmassi Arora (2012)3-examined
productivity growth in SBI bank in post liberalization
period from 1991-1992 to 2008-09. Total factor
productivity in india (PSBS) Is computed using hicks-
moorsteen index number as given by O,Donnell (2010).
The paper is perhapsthe first study that focuses
exclusively on productivity in indians PSBs.it also
contrasts productivity growth result for SBI. Result show
that india PSBs have experienced positive productivity
growth since liberalization. The greater technological
progress experienced in NBs ratherthan to the effect to
higher efficiency gains.
Manas kumar Baidya and debabrataMitra(2012)4-
measured and evaluated the technical efficiency of SBI banks
from the cross-section data of the financial year 2009-10 and to
provide ranking of efficiency to bank using to popular data
enevalute analysis modal . CCR and Andersen and Petersen,s
super efficiency modal.the result reveval that average technical
efficiencyof entire sampe is 86.5% . and that only bank are found
to be fullt efficient.so, there is scope of efficiency improved in
SBI. The study is found that bank which are using more lobour
for producting and there service are relatively more inefficient. In
order to improve the efficiency, most of the inefficient bank
should follow the good operating practies of bank SBI.
References
1 Poonam Mahajan A parna Bhatia and subhash chander,2012-
ROA performance of SBI in india IUP journal of bank management,
pp.22-35.
2.Sufian fazhan(2012)-determination of bank performance in a
developing economy;global business review.vol.13,pp.1-23,2012.
3. Hitesh Arora and padmassi arora(2012)- bank productivity
measurement using hicks-Moorteen indices: evidence from JPSB
international journal of a business vol.13issue 3/4pp.386-407.
4.Manas kumar Baidya and DebabrataMitra(2012)- an analysis of
the technical efficiency of india bank through DEA approach;
international journal of business performance management
.vol.13,issue .pp.341-365
5.Subroto Chowdhury (2012)- Technical efficiencyof indian
commercial bank : an empirical analysis; international journal of
business performane management. Vol. issue pg.450-472
6. Ashok k hurana and k anikagoyal (Feb 2011)-performance of
SBI bank: an analysis: vol;2 issue.2
7. Syed I brahim (may-2011)- operational performance of indian
scheduled commercial bank; an analysis IJBM- international
journal of business management. Vol.6.no.5
8.BireshSahoo and A nadadeep Mandal (2011)- Examining the
performance of bank in india:Post transition period. IUP journal of
bank management. Issue 2;pp,7-31.
9. Bala Neetu and kumar sunil (2011)-How efficient are public
bank operating in india: post reforms period analysis Afro-Asian
journal finance and according vol.2 no(4).Pp.349-368,2011.
10.Kour (1993)-profit and profitability in SBI dee and deep
publication , New delhi,1993.
11.Sunil kumar (march-2010)- Dynamics of cost efficiency in
indian public bank : A post: dereregulation E xperience, paper
Twelfth Annual conference of money and finance in the indian
economy.
12.Ramachandran and K avitha (2009); profitability of the indian
scheduled commercial bank; a case analysis ,IUP journal of bank
management , vol.8,issue -3&4 pp 129-139.
Needs of a Study
A sea change has taken place in the banking environment since
the inititation of reforms process in 1992-93. The period of littsle
more than a decade witnessed remarketable changes in
perceptions,policies and precties of banks. In the light of
sweeping changes that have taken place in banking polices and
practies during the last eleven year of reform period,its thought
appropriate to evaluate the impact of reform measures on the
efficiency, profitability and overall performance of bank. Through
recently large number of studies evaluating the performance of
bank in the reform period have come up,yet certain important
aspects remain untouched. These study by and large confind to
economic aspect as their performance i.e., profit a lone and socio-
economic dimensions of their working are altogether ignored.
Moreover,in most these studies,analysis is based upon a limited
number of indicators,limited number of year. Therefore,against
the background,it is throught desirable to taken up a
comprehensive study evaluating the SBI and financial
performance measures whether the bank strategy and its
implementation and execution are effectively contributing
towards profitability,liquidity,efficiency and solvency so that bank
can be carried out smoothly ensuring success, growth and bottom
line improvement. Hences the present study seek to make an in-
depth analysis of the performance in the mentioned SBI.
Objectives of study
1.To examine the decadal growth of state bank of india.
2. To analysis the financial performance of bank.
3.to put forth suggestions for improvement of its performance.
4. To assets, test and analysze the financial performance of the
SBI over the period of five year.
5. to analysis the liquidity position of SBI.
6.To measure profitability, liquidity and credit management of SBI.
7. To show the financial stability analysis consists of (profitability
and liquidity).
8. To analysis the balance sheet and income statement.
9. To know overall bank financial performance condition.
10. To undertake the factors which have led to the current
financial performance.
11. To suggest measures,on the basic of the study results, to
improve further the financial performance of the bank under
study.
12. To examine the growth rate, market capitalization and cash
flow posion of bank.
Liabilities capital
17,30,72 76.60 157679 76.99 1,394,40 77.80 12027 7
Deposit 2 % 3 % 9 % 40
10.00 10.20 16918 1
Borrowing 2,24,191 9.40% 205150 % 183,131 % 3
1,37,69
Other Liabilities 159,876 7.10% 8 6.70% 96,927 5.40% 95405 6
21,14,78 93.10 19,19,6 93.69 16,74,46 93.40 14673 9
Total Liabilities 9 % 41 % 7 % 28
1,28,43
Shareholder fund 1,44,274 6.40% 8 6.20% 118,282 6.60% 98884
Total liabilities and 204807 100.00 1,79,274 15662
Capital 2259063 100% 9 % 9 100% 12