Open Access
Subscription Access
Open Access
Subscription Access
A Fundamental Analysis of Public Sector Banks in India
Subscribe/Renew Journal
Industrialization is necessary for the rapid economic growth which implies a long term rise in per capita of nation. It requires huge investment which is possible if saving is sound and investor are willing to take common market risk. Large chunk of permanent investment of a company depend upon equity shares and its intrinsic value depends on overall economic factor. The profitability of the company, the growth rate and the risk exposure has a direct impact on the price of the share. These factors further rely on other factors like economic environment in which company operate, the industry they belong to, and finally it overall performance. The liberalization of an Indian economy explored the market potential and due to which Indian banking sector has been witnessing tremendous changes in terms of new product and services and overall stiff competition from domestic and global private sector banking players. The new highbred IPO's that have been taking place in banking sector are amazing. In the light of these ever-growing developments a careful analysis of the profitability of Indian banking sector is inevitable. The presents study attempts to analyze the profitability of five major public sector banks in India: SBI, PNB, BOI, BOI, and Canara Bank. The variable taken for the study are Earning Per Share (EPS), Operating Profit Margin (OPM), Net Profit Margin (NPM), Debt Equity Ratio (DER), Return on Equity (ROE), Price Earning Ratio (PER) and Return on Assets (ROA). This study brings out the competitiveness effectiveness of five major banks.
Keywords
SBI, PNB, BOI, BOB,CB, EPS, OPM, NPM, DER, ROE, PER ROA, IPO, RBI, SCBs, PSBs, NPAs, ATMs, NSE, CAGR
Subscription
Login to verify subscription
User
Font Size
Information
- Annual Report, RBI,2006-07 , 2007-08
- Business Line, November, 2006
- Business Line, December, 13,2007
- (History of) Reserve Bank of India, RBI Bulletin, May 2005.
- IBA Bulletin, January, 2004.
- Jon Lynch, “Share Market Analysis-Fundamental analysis vs. Technical analysis”, (www.eninarticle.com)
- John colnan (1994), Fundamental analysis, SHAW Stock broking Ltd., by ASX investor update E-mail newsletter, (www.qsx.com.au).
- Jim Berg (1999), Fundamental analysis using internet, past edition of ASX investor update e-mail newsletter, (www.asx.com.au)
- Mark P Bauman (1996), “A Review of Fundamental analysis research in accounting”, Journal of accounting literature, (www.findarticles.com)
- Punithavathy Pandian (2005) “Security analysis and portfolio management” Vikas Publication Pvt. Ltd, New Delhi
- Rakesh Mohan, Evaluation of Central Banking in India, RBI Bulletin, June 2006
- Sunder Sanker, Shefali Shah and Rajesh Tiwari “security market and products” Indian Institute of Banking and Finance by Taxman New Delhi.
- Times of India, January 3,2005
- The economic Times, Feburary,2006
- The Hindu, Business Line, August 2006
- V. Leeldhar, Customer Centricity and the Reserve Bank, RBI Monthly Bulletin, November, 2007.
- Vastone B, Finnie G and Tan C(2004), “Enhancing security selection in the Australian stock market using fundamental analysis and neural networks” (Artificial Intelligence and soft computing).
- www.indiainbusiness.nic.in/invest-india/bankfinsys.htm
- www.rbi.org.in
- www.moneycontrol.com, www.rbi.org, www.investopedia.com
Abstract Views: 958
PDF Views: 0