A Study on “Impact of Subprime crisis on the

Indian stock market with reference to the banking

industry”

A PROJECT REPORT
Submitted by
Jerry Cheriyan Thomas
08AD14

Under the guidance of

Mr. L.S. Sridhar

In partial fulfillment of the requirements of Anna University for the award of

the degree of
Master of Business Administration

PSG Institute of Management

PSG College of Technology

(Avinashi Road,Peelamedu,Coimbatore-641 004)

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 CERTIFICATE

This is to certify that the project work titled

“Impact of Subprime crisis on the Indian stock market

with reference to the banking industry”
Is a bonafide work done by

Jerry Cheriyan Thomas

08 AD 14

For the award of degree of

Master of Business Administration

Dr.R.Nandagopal Mr.L.S.Sridhar
Head Of Institute Faculty guide

Submitted for the Viva-Voce examination held on ________________________________________

(Signature of Internal (Signature of External

Examiner with date) Examiner with date)

DECLARATION

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I do hereby declare that the project entitled “Impact of Subprime crisis on the Indian stock

market with reference to the banking industry” submitted to the PSG Institute of

Management, Coimbatore for award of the Degree of Master Of Business Administration is a

record of original and independent research work done by me under the supervision and

guidance of Mr. L.S. Sridhar, Faculty, PSG Institute of Management, Coimbatore and it has

not previously formed the basis for award of any Degree, Diploma, Associate ship, Fellowship or

other similar title to any candidate of this or any other University.

Signature of the Candidate

Name of the Student

Counter signed

Faculty Guide

ACKNOWLEDGEMENT

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 I express my sincere gratitude to Dr.R.Nandagopal, Director, PSG Institute of

Management, for giving me the opportunity to do this project work and also my course

coordinator Dr.T.G.VIJAYA for her support and guidance.

I deeply express my sincere gratitude to Mr.L.S.Sridhar, for his guidance and

overwhelming support to do this project.

Thank you all for helping me and correcting me.

(Jerry Cheriyan Thomas)

Table of Contents

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Chapter Page
CONTENTS
No No

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 Acknowledgement
Contents
List of Tables
List of Charts
Executive Summary
1 INTRODUCTION
1.1 Background and importance of the study
1.2 Statement of the problem
1.3 Objectives of the Study
1.4 Scope and Limitations
2 THEORETICAL FRAMEWORK
2.1 Literature Review
3 RESEARCH METHODOLOGY
3.1 Research Design
3.2 Sampling Design
3.3 Tools used for analysis
4 DATA ANALYSIS AND INTERPRETATION
5 FINDINGS
5.1 Findings And Suggestions
5.2 Conclusion
6 REFERENCES

List of tables

S.No Contents Page No.

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4.1.1 Profitability ratio of Kotak Mahindra Bank 23

4.1.2 Liquidity ratio of Kotak Mahindra Bank 23

4.1.3 Profitability ratio of HDFC bank 24

4.1.4 Liquidity ratio of HDFC Bank 24

4.1.5 Profitability ratio of ICICI bank 25

4.1.6 Liquidity ratio of ICICI Bank 25

4.1.7 Profitability ratio of PNB Bank 26

4.1.8 Liquidity ratio of PNB Bank 26

4.1.9 Profitability ratio of State Bank of India 27

4.1.10 Liquidity ratio of State Bank Of India 27

4.2.1 Descriptive Statistics of Interest Spread 28

4.2.2 Paired t test for interest spread 29

4.2.3 Descriptive Statistics of Net Profit Margin 30

4.2.4 Paired t test for net profit margin 31

4.2.5 Descriptive Statistics of Return on net worth 32

4.2.6 Paired t test for return on net worth 33

4.2.7 Descriptive Statistics of Return on assets 34

4.2.8 Paired t test for return on assets 35

4.2.9 Descriptive Statistics of Current Ratio 36

4.2.10 Paired t test for current ratio 37

S.No Contents Page No.

4.2.11 Descriptive Statistics of Quick Ratio 38

4.2.12 Paired t test for quick ratio 39

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4.2.13 Descriptive Statistics of Dividend Payout Ratio 40

4.2.14 Paired t test for dividend payout ratio 41

4.3 Movements in key policy rates and reserve requirements 42

4.4.1 Regression analysis of Kotak 43

4.4.2 Regression analysis of HDFC 44

4.4.3 Regression analysis of ICICI 45

4.4.4 Regression analysis of PNB 46

4.4.5 Regression analysis of SBI 47

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