PERFORMANCE ANALYSIS OF TOP FOUR PRIVATE SECTOR BANKS IN INDIA

A PROJECT SUBMITTED IN

PART COMPLETION OF

POST GRADUATE DIPLOMA IN MANAGEMENT

TO

Prof Mishu Tripathi

BY

Bhavesh Jhala

UNDER

Prof Mishu Tripathi

TIMSR

FULL TIME – BATCH – 2014-2016

Shyamnarayan Thakur Marg, Thakur Village,

Kandivali (East), Mumbai 400101

PERFORMANCE ANALYSIS OF TOP FOUR PRIVATE SECTOR BANKS IN INDIA

A PROJECT SUBMITTED IN

PART COMPLETION OF

POST GRADUATE DIPLOMA IN MANAGEMENT

TO

Prof Mishu Tripathi

BY

Bhavesh Jhala

UNDER

Prof Mishu Tripathi

TIMSR

FULL TIME – BATCH – 2014-2016

Shyamnarayan Thakur Marg, Thakur Village,

Kandivali (East), Mumbai 400101

 DECLARATION

I hereby declare that the project report entitled, “PERFORMANCE ANALYSIS OF TOP
FOUR PRIVATE SECTOR BANKS IN INDIA” submitted to Thakur Institute of
Management Studies & Research, Mumbai, is a record of the original work done by me under
the guidance of PROF. Mishu Tripathi and this project work is submitted in partial
fulfillment of the requirements for the degree of Post Graduate Diploma In Management.

Prof. Mishu Tripathi

Signature of the student Signature of the guide

 ACKNOWLEDGEMENT

Before we get into thick of things, I would like to add a few words of appreciation for the
people who have been a part of this project right from its inception. The writing of this
project has been one of the significant academic challenges I have faced and without the
support, patience, and guidance of the people involved, this task would not have been
completed. It is to them I owe my deepest gratitude.

Firstly I thank my institute Thakur Institute of Management Studies and Research

and Director Incharge Dr. Ramakumar Ambatipudi for giving me an opportunity to do
my final project.

My deepest thanks to Prof. Mishu Tripathi, the Faculty Guide of my project for guiding
me throughout the project. I would also take this opportunity to thank her and all the
teaching and non-teaching staff who have been a moral support in all my endeavors.

BHAVESH JHALA
Roll No: - 39
PGDM- FINANCE
2014-16 Batch
 CERTIFICATE FROM FACULTY GUIDE

Thakur Institute of Management

Studies and Research
Kandivali (E), Mumbai

Post Graduate Diploma in Management- FINANCE

Batch: 2014-16

This is to certify that this project report titled “PERFORMANCE ANALYSIS OF TOP
FOUR PRIVATE SECTOR BANKS IN INDIA”submitted to Thakur Institute of
Management Studies and Research, is a bonafide record of work done by BHAVESH
JHALA under my guidance.

----------------------- _____________
_

Prof. Mishu Tripathi Dr.Ramakumar Ambatipudi

(Faculty Guide) (Director Incharge)

EXECUTIVE SUMMARY

The project relates to analyzing the performance of top four private sector banks in India. The
top 4 private sector banks are taken from BSE on the basis of emerging bank . Top 4 private
sector banks in India are as follows:

1. YES BANK
2. AXIS BANK
3. KOTAK MAHINDRA BANK
4. INDUSIND BANK

The paper intends to analyze the productivity of these top 4 private sector banks. The
performance of top 4 private sector banks will be analyzed with the help of CAMELS model.

Annual report of these banks for The current years would be collected and their performance
would be analyzed on the basis of the following ratios (CAMELS model):

1. Capital Adequacy Ratio

2. Asset- Quality Ratio
3. Management Efficiency Ratio
4. Profitability (Earnings) Ratio
5. Liquidity Ratios
6. Systems Ratio

After deriving the above ratios of four private sector banks over the current years their
performance will be analyzed .

The Indian banking system has recorded an impressive improvement in productivity over the
last 15 years. According to Economic Survey 2011-2012, Indian banking system has
successfully passed through various phases of reforms and has also faced the stress tests
posed by the global financing turmoil in the recent past. This suggests that the Indian
Financial System has become even stronger. However, it will be challenging for banks to
raise additional capital to support higher growth and to comply with BASEL III stipulations.
The challenge to converge with the International Financial reporting system would require
upgrading infrastructure including IT and human resources.

Monetary authorities are concerned about their rising costs and their impact on efficiency and
productivity. Thus banks have to become more conscious for their productivity. It becomes
vital area of concern for management of banks. Therefore, in the paper an attempt has been
made to determine the performance of top four private sector banks.
LIST OF table

SR. NO PARTICULARS PAGE NO

1 Introduction to banking sector 1

2 Payment bank 2
3 Small Banks 4
4 Budget 16-17 highlights 8
5  Types of funding 13
o Fund Based
o Non-fund Based
6 Introduction to top 4 private sector bank 18

7 Camel analysis 22
8 Camels model 24
9 Literature review 26
10 Research objective 27

Research methodology

11 Data collection 28
12 Computation of ratio under camels model 29
13 Learning 39

14 Recommendation 40

15 Conclusion 41

16 Bibliography 42