Dividend Payout Ratio:

The percentage of earnings paid to shareholders in dividends. Calculated as:

The payout ratio provides an idea of how well earnings support the dividend payments. More mature companies tend to have a higher payout ratio.

SBI dividend payout ratio

BOB

26.03 17.76

Interpretation:
SBI BOB 26.03 17.76

Since the company is paying high dividends is in mature industries and has little scope of growth but paying high dividends is the best use of profits.

Credit and Cash 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.
Credit Deposit Ratio = Credits 100 Deposits

Credit means disbursement of advances

Deposit mean sum of fixed deposit, Saving deposit and current deposit.

SBI credit deposit ratio CASH DEPOSIT

BOB

79.9 73.87 8.96 6.11

Interpretation: 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.

Earnings Per Share:

The overall profitability can also be judged by calculating earnings per share with the help of the following formula: Earning Per Equity Share = Net Profit after Tax Preference Dividend No. of Equity shares The earnings 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 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.

SBI BOB Earnings Per Share 116.0 7 108.33

Interpretation:
The EPS of State bank of India is 116.07 and of bank of Baroda is 108.33 which means that the EPS has increased in 2011 of State Bank Of India while the EPS of Bank of Baroda is low as compared to State Bank of India.

Book Value:
Book value is the accounting value of a firm. It has two main uses: 1. It is the total value of the company's assets that shareholders would theoretically receive if a company were liquidated. 2. By being compared to the company's market value, the book value can indicate whether a stock is under- or overpriced. 3. In personal finance, the book value of an investment is the price paid for a security or debt investment. When a stock is sold, the selling price less the book value is the capital gain (or loss) from the investment.

Book Value

SBI BOB 1,023.4 0 536.16

Interpretation:
The book value of state bank of India has increased as compared to bank of Baroda.

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. It is calculated as:-

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

SB I Dividend Per Share 30 BOB 16.5

Interpretation:
The dividend per share of State Bank Of India is more as compared to Bank Of Baroda it is because of there is use of more debt instead use of more improved operations.

Price Earning Ratio:

The P/E gives you an idea of what the market is willing to pay for the companys earnings. The higher the P/E the more the market is willing to pay for the companys earnings. Some investors read a high P/E as an overpriced

stock and that may be the case, however it can also indicate the market has high hopes for this stocks future and has bid up the price. Conversely, a low P/E may indicate a vote of no confidence by the market or it could mean this is a sleeper that the market has overlooked. Known as value stocks, many investors made their fortunes spotting these diamonds in the rough before the rest of the market discovered their true worth.

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

SB I Price Earning (P/E) 21.92 BOB 9.15

Compared with industry: INDUSTRY SBI P/E RATIO 6.43 21.92 BOB 9.15

Interpretation:

The graph shows that the P/E ratio of State Bank Of India is more as compared to its industry/ peerset which means that State Bank Of India is fundamentally sound and also it is using its funds in a better way as compared to its peerset/ industry. It also means that the market is willing to pay more for the companys earnings and the market has high hopes for the stocks future and has bid up the prices.

Price To Book Value:

A ratio used to compare a stock's market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share. Also known as the "price-equity ratio". Calculated as:

A lower P/B ratio could mean that the stock is undervalued. However, it could also mean that something is fundamentally wrong with the company. As with most ratios, be aware that this varies by industry. This ratio also gives some idea of whether you're paying too much for what would be left if the company went bankrupt immediately.

SB I BOB

Price to Book Value ( P/BV)

2.7

1.8

Interpretation:
The price to book value of state bank of india is higher than the bank of baroda. The stock is more robust and funamentally strong but overvalued in nature which means that it is making more money out of set of given assets.

SBI

BOB

Earnings Per Share Book Value Dividend Per Share Price Earning (P/E) Price to Book Value ( P/BV)

116.07 1,023. 40 30 21.92 2.7

108.33 536.16 16.5 9.15 1.8

Interpretation:
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 debt than due to improved operations. P/E ratio and P/BV ratio both are increasing. . The overall efficiency of the company is good and its performance is better in the banking institution.