1. Project Report on Fundamental Analysis of Scrips under Banking Sector Presented By: AFTAB SHAIKH

2. COMPANY PROFILE SHCIL was incorporated under the Companies Act 1956 on 28th July 1986 at the initiative of the Government Promoted by seven all Indian financial institution Industrial Development Bank Of India Unit Trust Of India ICICI Industrial Finance Corporation of India Ltd Life Insurance Corporation Of India General Insurance Corporation of India and its Subsidiaries. Industrial Investment Bank of India.

3. SUBSIDIARIES SHCIL SERVICES LIMITED HCIL PROJECTS LIMITED SHCIL COMMODITIES AND DERIVATIVES TRADING LIMITED UNITEC VALUE SOLUTIONS PTE. LIMITED, SINGAPORE Corporate Philosophy: People Organization Owner Mindset Equal Opportunities Employee

4. SHCIL OFFERS THE FOLLOWING SERVICES TO THE CLIENTS Custodial Services Clearing & Settlement Services (Cash Segment) Electronic & Physical Safekeeping Services SHCIL offers clients Premium Offerings web-delivery Vaults Asset Servicing Clearing Services (Futures and Options segment) DEPOSITORY SERVICE:

7. Operating Charges Of SHCIL Account Opening Fees: Rs 7000/- onetime refundable AMC Rs 662 Annual AMC Brokrage charges are Rs. 15 paise for intraday and Rs. 55 paose for holding on account

8. Management

9. COMPETITORS ofSHCIL Kotak Securities Limited India Bulls ICICIdirect.com Share Khan MotilalOswal Sbi capital

10. INFRASTRUCTURE FACILITY: They adopted local area network (LAN). There is mainly one server that stores all the documents. Highly sophisticated computer system. High speed internet and telephone service. Canteen facility. Vehicles parking facility. Well ventilated with air conditioned rooms. Visual display (TV) on every corner. Well maintained sanitarian. Close circuit camera (CCTV) on each cabins. Fire extinguishing systems.

11. PART B INTRODUCTION TO FUNDAMENTAL ANALYSIS Fundamental Analysisinvolves examining the economic, financial and other qualitative and quantitative factors related to a security in order to determine its intrinsic value Approaches of fundamental analysis Bottom-up approach Top-down approach

12. Fundamental Analysis Tools These are the most popular tools of fundamental analysis. Earnings per Share – EPS Price to Earnings Ratio – P/E Projected Earnings Growth – PEG Price to Sales – P/S Price to Book – P/B Dividend Payout Ratio Dividend Yield Book Value Return on Equity

13. Ratio analysis Performance ratios Working capital ratios Liquidity ratios Solvency ratios Technical analysis is the practice of anticipating price changes of a financial instrument by analyzing prior price changes and looking for patterns and relationships in price history.

14. STAEMENY OF THE PROBLEM There is no significant relationship between return on equity, dividend payout ratio, book value, dividend yield, earning per share, and market price. OBJECTIVE & SCOPE OF THE STUDY To assess the performance of selected banking companies listed in NSE and BSE To evaluate the financial strength of the selected banking companies listed in BSE and NSE To evaluate intrinsic value of shares & compare it with present market price to decide whether a share is overvalued or undervalued To evaluate managements efficiency & internal decisions taken by them to run the business To calculate credit risk

15. METHODOLOGY Analysis of secondary data like Economy analysis Industry analysis Company analysis Limitation of the study The study is restricted to five years only. The sample is limited to two Public and Private sector banks for analysis. This study uses only nine fundamental financial tools for analysis. Only BSE listed (Group A) public and private limited banking companies were taken for the study

16. Economy analysis The growth in real GDP Index of Industrial Production

17. Core infrastructure-supportive sectors growth Inflation in terms of Wholesale Price Index

18. Policy Rates/Interest Rates (per cent per annum)

19. INDUSTRY ANALYSIS Post independence In 1948, the Reserve Bank of India India's central banking authority was nationalized, In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India." Liberalization liberalization and gave licenses to a small number of private banks Global Trust Bank (the first of such new generation banks to be set up) which later amalgamated with Oriental Bank of Commerce, UTI Bank (now re-named as Axis Bank), ICICI Bank and HDFC Bank.

20. COMPANY ANALYSIS

21. INDUSTRY ANALYSIS

23. Cont’d

24. FINDINGS AND CONCLUSION As per P/E ratio SBI can be considered at a fair value, PNB is undervalued and ICICI bank is growth stock with earnings expected to increase substantially in future and HDFCBANK have high expected future growth in earnings. All selected bank has maintained the CAR% as per Basel norm. SBI has the highest Book value of 1038.76. The net interest spread of HDFC BANK is highest at 6.98% which means there is large disparity between the rate of lending and deposit. Except for SBI and ICICI Bank the recommendation of all selected banks are of BUY.

25. TANK U