...An Analysis of Determinants of Profitability in Public and Private Sector Banks in India Mrs. Somanadevi Thiagarajan Ph.D. Scholar, Management Sciences, Anna University of Technology, Coimbatore, India Lecturer (on leave) Faculty of Management, University of Belize, Belize Dr. S. Ayyappan Associate Professor in MBA Sakthi Institute of Information and Management Studies Pollachi -642001, India Dr. A. Ramachandran Director, SNR Institute of Management Sciences, SNR Sons College, Coimbatore, India Mr. M. Sakthivadivel Anna University of Technology Coimbatore, India Abstract An analysis was carried out to empirically evaluate the determinants of profitability in the public and private sector commercial banks in India. A combination of statistical tools such as the correlation analysis, multiple regression analysis and factor analysis were used to estimate the contribution of select bank specific variables towards profitability which was measured by using Return on Assets (RoA). The study revealed that the cost of borrowing and NPA has a significant negative correlation with profitability for public sector banks. Return on investments, return on advances and operating profit had a significant positive correlation with profitability for both public and private sector banks. The multiple regression analysis highlighted that the return on investments and return on advances has a significant influence on the profitability of private sector banks. The factor analysis has also shown that...
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...financial information P3.1 Analyse budgets and make appropriate decisions from the case study P3.2 Explain the calculation of unit costs and make pricing decisions using relevant information P3.3 Asses the viability of a project using at least two investment appraisal techniques LO4 Be able to evaluate the financial performance of a business P4.1 Discuss the main financial statements P4.2 Compare appropriate formats of financial statements for different types of business P4.3 Interpret financial statement using appropriate ratios and comparisons, both internal and external P 1.1 To start a new business you need money, to invest , acquisition equipment and make profit. After a period of evaluation the business I choose to...
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...ASSET-LIABILITY MANAGEMENT IN THE INDIAN BANKS: ISSUES AND IMPLICATIONS Abstract The development of the banking system is always associated with the contemporary changes in the economy. The Indian banking industry has undergone a metamorphosis in the last two decades due to changes in the political, economic, financial, social, legal and technological environments. The mind boggling advances in technology and deregulation of financial markets across the countries created new opportunities, tempting banks to enter every business that had been thrown open. The banks are now moving towards universal banking concepts, while adding new channels and a series of innovative product offerings catering to various segments at an attractive price. This makes it imperative for the banks to adopt sophisticated risk management techniques and to establish a link between risk exposures and capital. Effective management of risk has always been the focus area for banks owing to the increasing sophistication in the product range and services and the complex channels that deliver them. The challenge for the banks is to put in place a risk control system that minimizes the volatility in profit and engenders risk consciousness across the rank and file of the organization. Sound risk management will ensure a healthy bottom line for the bank as risk taken by the bank will be commensurate with return and will be within an approved risk management policy. As all transactions of the banks revolve around raising and deploying...
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...that students should have done 'O' Level Business Studies 1.2 1.3 2 SYLLABUS AIMS The syllabus is intended to lead to courses that will encourage students to: 2.1 2.2 Understand and appreciate the nature and scope of business and its role in society; Develop critical understanding of organisations, the markets they serve and the process of adding value. This should involve consideration of the internal workings and management of organisations and, in particular, the process of decision making in a dynamic environment; Be aware of the economic, environmental, ethical, governmental, legal, social, technological etc issues associated with business activity; Develop skills in: decision making and problem solving in the light of evaluation, the quantification and management of information, where appropriate, effective communication, entrepreneurship. The emphasis should be on the application of concepts and issues to the local context where appropriate. 2.3 2.4 2 ASSESSMENT OBJECTIVES Candidates are expected to demonstrate the following skills: 3.1 3.2...
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...Private Sector Banks Dr. Rahul Rajan Abhilasha Srivastava Abstract The objective of this paper is to present a method for estimating the cost efficiency of Indian banks in order to study the degree of technical and cost performance of the Indian banking sector and to analyze how the banking sector has been affected by technical efficiency and cost efficiency. Initially, the evolution in the technical front in the banks between 2005 to 2012 is measured. For this analysis purpose a sample of 101 Indian banks including 28 public ,29 private and 44 foreign banks operating in India is taken for the period 2005-2012. For analysis purpose both the parametric method of productive efficiency frontier (Stochastic Frontier Analysis ) and nonparametric method (Data Envelopment Analysis) are taken. Introduction The financial system is the lifeline of the economy. The changes in the economy get mirrored in the performance of the financial system, more so of the banking industry. The banking system in India is significantly different from that of other Asian nations because of the country’s unique geographic, social, and economic characteristics. India has a large population and land size, a diverse culture, and extreme disparities in income, which are marked among its regions. There are high levels of illiteracy among a large percentage of its population but, at the same time, the country has a large reservoir of managerial and technologically advanced talents. Between about 30 and...
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...have been called to enhance their overall degree of marketing effectiveness. We should also notice that the most significant predictor of the customer based performance measure (customer retention) and profitability (profit margin) is customer philosophy. All the other four marketing effectiveness dimensions - operational efficiency, strategic orientation, adequate marketing information, and integrated marketing organisation also exert a significant impact on customer retention. However, the regression analysis also indicates that, with regard to the growth based performance measure (sales growth), adequate marketing information replaces customer philosophy as the strongest determinant of performance. Thus, the emphasis placed upon each dimension of marketing effectiveness appears to be determined by the performance objective set by the financial services firm. However, one can deduce from the research findings that customer philosophy is of primary importance in a financial services context. The practice of the industry market has shown that there is a strong positive relationship between the kind of marketing culture a service firm has and its degree of marketing effectiveness. Even when the possible effects of firm size and geographical scope are removed, the relationship between culture and effectiveness remains significant. In other words, the number of employees working in a particular service establishment (e.g. five or 500) and the geographical scope of the firm (e.g. local...
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...A Summer Training Report ON FINANCIAL ANALYSIS OF HINDUSTAN UNILEVER LIMITED & INDIAN TOBACCO COMPANY Submitted to GURUKUL KANGRI UNIVERSITY,HARIDWAR In partial fulfillment of the requirement for the two years full time post graduate degree in MASTER OF BUSINESS ADMINISTRATION(MBA) Supervised by: Dr. Bindu Arora Submitted by: Akansha Tyagi(MBA) Department of Management Studies Kanya Gurukul Mahavidyalaya, Dehradun 2nd Campus, Gurukul kangri University, Haridwar 2009-2011 ACKNOWLEDGEMENT I wish to thank Indian Tobacco Company Limited, Sidcul and its employees, who gave me their precious time to make me learn some important aspects of the Organization, its Structure, about its functioning. I express my sincere thanks to Mr. Arun Raghav(DGM - HR) for giving me an opportunity to work with them through this summer project. I am very pleased that, I got the opportunity to work under and thank Mr.Kapil(Manager in Finance & Accounts,Sidcul) for his invaluable guidance, constant encouragement & practical suggestions based on the experience to focus my efforts because of which this work has come to the presentable form. Gracious help from Dr. Surekha Rana, have contributed tremendously to the completion of this project work. I offer my sincere thanks to , Dr. Bindu Arora who guided me in the completion of the project. CONTENTS PREFACE…………………………………………………... OBJECTIVES OF STUDY…………………………………. RESEARCH METHODOLOGY……………………………. COMPANY PROFILE • The Indian FMCG sector…………………………...
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...| Earnst & Young Banking Risk Radar Practical Implementation in Nordea Bank Finland Plc. | Risk Evaluation and Recommendation on Improvement | | | | Prepared by: Sergey Kovalonok Dmitry Vinichenko Artjom Kostjukovich | Introduction Searching for an appropriate case study first of all we were interested in not what we can give to this work, but what this work can give to us. Yes, a famous quote of John F. Kennedy, but, probably, more egocentric. Indeed, we wanted to gain. What exactly? The most important we wanted to gain the feeling of success after a difficult work. As we mentioned difficult we wanted a challenge. As we mentioned a challenge it means we didn’t want to take a company where the problem is evident, which by our understanding is any negative event in the company such as financial losses or bad publicity. After a series of discussions, we decided to take a very successful company and find how we can help to make it even more successful. The reason for such approach is that it becomes more difficult to find any serious issues, but at the same time the reality of such case increases as in the real world, in most cases, we are employed by well functioning companies, where these serious issues are not so evident. Table of Contents Nordea Profile 3 Selection of evaluation method 5 Bank & Capital Markets Risk Radar 6 Nordea Bank evaluation 7 Global financial shocks 7 Credit shocks and exposures 9 Reputation risks 10 ...
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...A PROJECT REPORT ON “RATIO ANALYSIS” AT INDIAN RAYON (A UNIT OF ADITYA BIRLA NUVO LTD) VERAVAL (GUJARAT) SUBMITTED TO TILAK MAHARASHTRA UNIVERSITY IN PARTIAL FULFILLMENT OF 2 YEARS FULL TIME COURSE MASTER OF BUSINESS ADMINISTRATION (MBA) Submitted By: KAAT RAFIK O. (Batch 2008-10) Guided By: Prof.R.GANESHAN MAHARASHTRA COSMOPOLITAN EDUCATION SOCIETY‘S PAI INTERNATIONAL CENTRE FOR MANAGEMENT EXCELLENCE CAMP- PUNE-411001 1 CERTIFICATE This is certify that KAAT RAFIK OSMAN BHAI student of PAI international centre for management excellence, Maharashtra Cosmopolitan Education society, Pune has completed his field work report on the topic of RATIO ANALYSIS AT INDIAN RAYON (A UNIT OF ADITYABIRLA NUVO LTD) VERAVAL(GUJARAT) and has submitted the field work report in partial fulfillment of MBA of the college for the academic year 20082010. He has worked under our guidance and direction. The said report is based on bonafide information. Project guide name Prof. R Ganesan Designation Director 2 PAI INTERNATIONAL CENTRE FOR MANAGEMENT EXCELLENCE Maharashtra Cosmopolitan Education Society DECLARATION I hereby declare that project titled ―RATIO ANALYSIS‖ is an original piece of research work carried out by me under the guidance and supervision of prof. R Ganesan. The information has been collected from genuine &authentic sources. The work has been submitted in partial fulfillment of the requirement of MBA to our college. Place: Signature: ...
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...A PROJECT REPORT ON “RATIO ANALYSIS” AT INDIAN RAYON (A UNIT OF ADITYA BIRLA NUVO LTD) VERAVAL (GUJARAT) SUBMITTED TO TILAK MAHARASHTRA UNIVERSITY IN PARTIAL FULFILLMENT OF 2 YEARS FULL TIME COURSE MASTER OF BUSINESS ADMINISTRATION (MBA) Submitted By: KAAT RAFIK O. (Batch 2008-10) Guided By: Prof.R.GANESHAN MAHARASHTRA COSMOPOLITAN EDUCATION SOCIETY‘S PAI INTERNATIONAL CENTRE FOR MANAGEMENT EXCELLENCE CAMP- PUNE-411001 1 CERTIFICATE This is certify that KAAT RAFIK OSMAN BHAI student of PAI international centre for management excellence, Maharashtra Cosmopolitan Education society, Pune has completed his field work report on the topic of RATIO ANALYSIS AT INDIAN RAYON (A UNIT OF ADITYABIRLA NUVO LTD) VERAVAL(GUJARAT) and has submitted the field work report in partial fulfillment of MBA of the college for the academic year 20082010. He has worked under our guidance and direction. The said report is based on bonafide information. Project guide name Prof. R Ganesan Designation Director 2 PAI INTERNATIONAL CENTRE FOR MANAGEMENT EXCELLENCE Maharashtra Cosmopolitan Education Society DECLARATION I hereby declare that project titled ―RATIO ANALYSIS‖ is an original piece of research work carried out by me under the guidance and supervision of prof. R Ganesan. The information has been collected from genuine &authentic sources. The work has been submitted in partial fulfillment of the requirement of MBA to our college. Place: Signature: ...
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...Subject: FINANCIAL MANAGEMENT Course Code: M. Com Author: Dr. Suresh Mittal Lesson: 1 Vetter: Dr. Sanjay Tiwari FINANCIAL MANAGEMENT OF BUSINESS EXPANSION, COMBINATION AND ACQUISITION STRUCTURE 1.0 Objectives 1.1 Introduction 1.2 Mergers and acquisitions 1.2.1 Types of Mergers 1.2.2 Advantages of merger and acquisition 1.3 Legal procedure of merger and acquisition 1.4 Financial evaluation of a merger/acquisition 1.5 Financing techniques in merger/Acquisition 1.5.1 Financial problems after merger and acquisition 1.5.2 Capital structure after merger and consolidation 1.6 Regulations of mergers and takeovers in India 1.7 SEBI Guidelines for Takeovers 1.8 Summary 1.9 Keywords 1.10 Self assessment questions 1.11 Suggested readings 1.0 OBJECTIVES After going through this lesson, the learners will be able to • Know the meaning and acquisition. 1 advantages of merger and • Understand the financial evaluation of a merger and acquisition. • Elaborate the financing techniques of merger and acquisition. • Understand regulations and SEBI guidelines regarding merger and acquisition. 1.1 INTRODUCTION Wealth maximisation is the main objective of financial management and growth is essential for increasing the wealth of equity shareholders. The growth can be achieved through expanding its existing markets or entering in new markets. A...
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...VALUATION AND ACQUSITION VALUATION AND ACQUISITION OF “TARGET COMPANY” LIMITED BY “INVESTOR” LIMITED BY: AKINTOYE AKINDELE DBA PROGRAM INTERNATIONAL SCHOOL OF MANAGEMENT DECEMBER 2011 INTRODUCTION CONTEXT This report reviews the investment/acquisition rationale, valuation (assumptions and methodology), negotiation and post acquisition events of the acquisition of 100 percent of the equity of “Target Company” limited by “Investor” Limited. While the names of acquiring and selling companies have been changed to Investor Limited and Target Company limited respectively for confidential reasons, the information and events here are factual and all the exhibits represent actual financial information of both companies especially Target Limited. BACKGROUND & BUSINESS OVERVIEW OF TARGET Target Limited is an aluminium continuous casting and cold rolling mill located in Ghana. The company was set up to implement the fourth processing leg of the proposed integrated aluminium industry for Ghana which comprised; bauxite mining – First leg, refining bauxite into alumina – Second leg, smelting alumina into raw aluminium ingots – Third leg and processing the ingots into flat rolled product – Fourth leg and Target’s business. The company was incorporated as a private company and granted license to commence business on 24th February, 1978 and 22nd March, 1978 respectively. Target was later converted into a public company on 28th May, 1996 and was listed on the Ghana Stock Exchange...
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...------------------------------------------------- ITC LIMITED: FINANCIAL ANALYSIS Financial Accounting A MANAGERIAL PRESPECTIVE Submitted To: Ram Kesh Gupta Christ University Institute of Management, Bangalore By: Lavanya Gurram (1120754) Anil Kumar Rauniyar (1120743) Lester Mascarenhas (1120702) Annette Stanley (1120744) Anirudddha K.N. (1120737) Ravi Kwatra (1120728) Table of Contents 1. INTRODUCTION 2. KEY FINANCIAL TRENDS 3. PERFORMANCE EVALUATION USING RATIOS 4. PERFORMANCE EVALUATION USING COMMON-SIZE STATEMENTS 5. ANALYSIS OF THE CASH FLOW STATEMENT 6. QUALITY OF EARNINGS 7. ANALYSIS OF THE DIRECTOR’S REPORT 8. STOCK MARKET ASSESSMENT 9. OVERALL EVALUATION 10. REFERENCES Introduction Meaning of financial Analysis The process of evaluating businesses, projects, budgets and other finance related entities to determine their suitability for investment is known as financial analysis. Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to be invested in. When looking at a specific company, the financial analyst will often focus on the income statement, balance sheet, and cash flow statement. In addition, one key area of financial analysis involves extrapolating the company's past performance into an estimate of the company's future performance. Uses of financial Analysis These statements are used by management, labor, investors, creditors and government regulatory...
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...Global perspectives on governance: lessons from east and west While the core principles of governance are the same throughout the world, the Asian model places particular emphasis on trust and relationships. This paper discusses the key differences between the western and Asian approaches to help business leaders explore the best aspects of both. Conclusions 1. The corporate governance model that’s familiar in Asia, Africa and most developing nations places strong emphasis on trust and relationships. This can be beneficial for stakeholders: the typical pattern of ownership in businesses means that there can be a longer-term view of an organisation’s success compared with that in a western company. But the system is potentially vulnerable to corruption and cronyism. It can also be difficult to implement basic control procedures. 2. The prestige of what can be broadly termed the western governance model has diminished in the aftermath of the financial crisis. This model has driven globalisation and has emphasised a combination of legislation and standards as well as transparency, with a focus on developing appropriate structures, processes and frameworks. This is widely understood and helps to create a level playing field. But major financial failures over the past two years, such as that of Lehman Brothers, have shown that there are limits to what can be done to tighten checks and balances. A new emphasis on the behavioural aspects of governance is overdue. ...
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...| ICICI Bank | | Yes Bank | | HSBC | | SBI Bank | | HRIS | | ICT | | Role of Banks in India | | Recommendations | | Conclusion | | Bibliography | | Objective: The objective of this report is to study the banking sector in the Indian Economy on a global perspective. In this we have tried to study the different aspects of the banks. Here in we have considered 4 banks, namely SBI, ICICI, HSBC, Yes Bank. Research Methodology: The research methodology that we adopted was a dual one:- Primary Research Under Primary research we visited the banks, collected data directly from the respected persons and analysed it. Secondary Research Under Secondary Research we took information from the Internet, Books. INTRODUCTION Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1790; both are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of ombay and the Bank of Madras, all three of which were established under charters from the British East ndia Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which...
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