Presentation on State Bank of India

Presented by:Group No.:-07

About SBI
Premier bank in India. 3 Banks amalgamated & Imperial Bank of India was formed.

In 1955, Imperial Bank of India was renamed as State Bank of India.

It is 29th most reputed company as per Forbes.

It has more than 25000 ATMs and 21500 branches across India.
It has 137 foreign offices in 32 countries across the globe.

PRODUCTS AND SERVICES

Personal Banking
Agricultural/Rural Banking NRI services

International Banking
Corporate Banking Services

Government Business

Number of Customers

MANAGEMENT
Name Mr. Pratip Chaudhuri
Mr. Hemant G. Contractor Mr. Diwakar Gupta Mr. A. Krishna Kumar Mr. Dileep C. Choksi Mr. S. Venkatachalam Mr. D. Sundaram

Designation Chairman
Managing Director Managing Director Managing Director Director Director Director

Shareholding Pattern
Others 12%

DII 18% FII 11%

Promoter 59%

ECONOMIC ANALYSIS
Indian economy is growing at GDP rate of 7.5%
Per capita income is increasing at 14.4% since last 8 years. Population below poverty line is 37%. Unemployment level is at 9.4%. Monetary policy
Change in base rate by RBI Reserve requirement

Global economic slowdown Rising inflation

Banking sector analysis

Banking sector is growing at CAGR of 23% Combined network of over 82000 branches and 45000 ATMs.

Public sector holds around 75% of total assets.

Life Cycle Analysis

Porter's Five Force Analysis

SWOT ANALYSIS
STRENGHTS: 1. Strong domestic presence. 2. Strong capital position. 3. Brand name 4. Government owned 5. Diversified portfolio OPPORTUNITIES: 1. Increasing adoption of etransactions 2. Investment in IT will decrease transaction cost 3. Expansion in foreign soil 4. Wide untapped rural market WEAKNESSES: 1. Increasing NPAs 2. Susceptible to political intervention. 3. Credit rating (D+) THREATS: 1. Advent of foreign banks. 2. Human resource 3. CRM 4. New banking norms 5. Global slowdown

Financials

Profit & Loss account

Particular
Interest Earned Other Income Total Income Interest expended Employee Cost Selling and Admin Expenses Operating Expenses Provisions & Contingencies Total Expenses Net Profit for the Year

2011
81,394.36 14,935.09 96,329.45 48,867.96 14,480.17 12,141.19 31,430.88 8,660.28 88,959.12 7,370.35

2010
70,993.92 14,968.15 85,962.07 47,322.48 12,754.65 7,898.23 24,941.01 4,532.53 76,796.02 9,166.05

2009
63,788.43 12,691.35 76,479.78 42,915.29 9,747.31 5,122.06 18,123.66 6,319.60 67,358.55 9,121.23

Balance Sheet of State Bank of India

Particular
Equity Share Capital Reserves Deposits Borrowings Total Debt

2011
635.00 64,351.04 933,932.81 119,568.96 1,053,501.77

2010
634.88 65,314.32 804,116.23 103,011.60 907,127.83

2009
634.88 57,312.82 742,073.13 53,713.68 795,786.81

Cash & Balances with RBI

Balance with Banks, Money at Call Advances Investments Net Block Total Assets & Liabilities

94,395.50
28,478.65 756,719.45 295,600.57 4,431.95 1,223,736.20

61,290.87
34,892.98 631,914.15 285,790.07 4,117.73 1,053,413.74

55,546.17
48,857.63 542,503.20 275,953.96 3,574.41 964,432.08

Sources of Funds

Key Performance Indicators

CAR (In per cent)
16 14 12 10 8 6 4 2 0 ICICI Bank CAR (In per cent) 13.97

State Punjab HDFC Bank of Citiban Nation Bank k India al Bank (SBI) 13.6 13.53 13.1 12

HSBC 10.59

NPM %

17.49 13.29 6.54 SBI PNB ICICI Bank Canara Bank 10.11

40 35 30 25 20 15 10 5 0 SBI PNB 34.88

EPS

24.94
11.51 ICICI Bank 16.38

Canara Bank

35 30 25 20 15 10 5 0 2007 2008 2009 14 21.5 29

30

30

2010

2011

Dividend Trend

Net NPA(in per cent)

2 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 ICICI Bank Net NPA(in per cent) 1.55 HDFC Bank 0.47

State Punjab Bank Nation Citiba of nk al India Bank (SBI) 1.78 0.96 1.23

HSBC

0.58

Sector wise NPA

Other Important Ratios

Particulars ROE Book Value Per Share Cost to Income Credit Deposit Ratio Cash Deposit Ratio CASA Ratio 2011 14.04 1029 52.59 79.90 8.96 48.66 2010 12.84 1014 47.60 75.96 7.56 46.67

Performance Chart

Index Comparison

VALUATION

Particulars
LTP

SBI
1715.30

Change (%) (4.00)

52 W H/L

3515.00 / 1708.55

Particulars
P/E

2011
15.71

Price/Book
Industry P/E Market Cap Div Yield(%) CEPS

1.68
7.00
108921.38

1.75 114.29

Calculation of Target Price

P0 = D1

1+ r
24.9

TV

1+ r
TV

1715.30 =

1+0.16

1+0.16

TV

Rs.1964.8 4