Page 1 of 10
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 03 Issue 09
August 2017
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 178
A Study on Equity Analysis with Refference to Banking Sector
Dr.I.Satyanarayana1
, N.B.C. Sidhu*2
, Karpurapu Prashanthi3 (15X31E0006)
Abstract:
Providing employees with training and
development opportunities not only
contributes to the quality and effectiveness
of your organization it also serves to
motivate and retain employees. Professional
development should address both
organizational needs (the competencies
required to achieve organizational goals
and objectives) and individual needs (the
competencies employees require to do their
job), and reflect the organization's overall
philosophy on learning. Furthermore, when
establishing an employee development
policy you need to consider both the
financial and human resource capacity of
your organization to support employee
training and development.
Financial capacity:
Are funds available to cover the cost of
training and development? It's important to
ensure that available funding is set aside for
training. It's also important to consider how
the funds will be allocated, whether on a
first-come first-serve basis, with a set
amount per employee, training inline with
organizational priorities, or a combination
thereof. In an organization where training
and development is being used as a key
motivation and retention tool, transparency
of approval process and distribution of
funds is critical.
================================================================================
1.Principal, Sri Indu institute of Engineering & Technology, Sheriguda, Ibrahimpatnam,Telangana, India.
2.Assoc. Prof & HOD, Dept. of Master of Business Administration, Sri Indu Institute of Engineering & Technology,
Sheriguda, Ibrahimpatnam, Telangna, India.
3.Student, Dept. of Master of Business Administration, Sri Indu Institute of Engineering & Technology, Sheriguda,
Ibrahimpatnam, Telangna, India.
Key words: Financial Markets and functions, financial Policy, equity analysis , Equity Markets...
Introduction: India is a developing country.
Nowadays many people are interested to invest in
financial markets especially on equities to get high
returns, and to save tax in honest way. Equities are
playing a major role in contribution of
capital to the business from the beginning.
Since the introduction of shares concept, large
numbers of investors are showing interest to invest in
stock market .In an industry plagued with skepticism
and a stock market increasingly difficult to predict
and contend with, if one looks hard enough
there may still be a genuine aid for the
Day Trader and Short Term Investor. The price of a
security represents a consensus. It is the price at
which one person agrees to buy and another
agrees to sell.
If prices are based on investor
expectations, then kno wing what a security
should sell for (i.e., fundamental analysis)
becomes less important than kno wing
what other investors expect it to sell
for. That's not to say that kno wing what a
security should sell for isn't important--it is. But there
is usually a fairly strong consensus of a stock's future
earnings that the average investor cannot disprove
Fundamental analysis and technical analysis can co- exist in peace and complement each o t h e r .
S i n c e a l l t h e i n v e s t o r s i n t h e s t o c k
m a r k e t w a n t t o m a k e t h e m a x i m u m
p r o f i t s possible, they just cannot afford to ignore
either fundamental or technical analysis
This session discusses the trade-off and,
using conventional statistical tools, provides a
method for quantifying risk. Two categories of risk
borne by the firm's stockholders, business risk and
financial risk, are discussed and demonstrated, as is
the concept of leverage. The session also examines
risk reduction via portfolio diversification and what
requirements need to be met for firms to experience
the benefits of diversification. This is used to
demonstrate the risk/return trade-off by relating the
required return on the firm's investments to its beta
(or market) risk.
Page 2 of 10
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 03 Issue 09
August 2017
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 179
1.2 NEED OF THE PROJECT
To start any business capital plays major
role. Capital can be acquired in two ways by issuing
shares or by taking debt from financial institutions or
borrowing money from financial institutions. The
owners of the company have to pay regular interest
and principal amount at end. Stock is ownership in a
company, with each other each share of stock
representing a tiny piece of ownership. The more
shares you, the more dividends you earn when the
company makes a profit In the financial world,
ownership is called “Equity”.
Advantages of selling stock:
• A company can raise more capital than it could
borrow.
• A company does not have to make periodic interest
payments to creditors.
• A company does not have to make principal
payments
1.3 OBJECTIVES OF THE PROJECT
The objective of this project is to deeply
analyze our Indian Banking Industry or investment
purpose by monitoring the gro wth rate and
performance on the basis of historical data.
The main objectives of the Project study are:
To study the detailed analysis of banking
industry this is gearing towards international
standards
To analyze the various risks and returns
patterns in shares.
To compare the Five tough competitors SBI,
ICICI, AXIS,ANDHRABANK and HDFC
To know the risk involved with invests in
equities
To Suggest as to which company’s shares
would be best for an investor to invest
1.4 IMPORTANCE OF THE PROJECT
Stock/shares play a major role in acquiring
capital to the business in return investors are paid
dividends to the shares they own. The more shares
you own the more dividends you receive. The role
of equity analysis is to provide
information to the market. An efficient
market relies on information: a lack of
information creates inefficiencies that
result in stocks being misrepresented (over or
under valued). This is valuable because it fills
information gaps so that each individual investor
does not need to analyze every stock thereby making
the markets more efficient
As per the Reserve Bank of India (RBI), India’s
banking sector is sufficiently capitalised and well- regulated. The financial and economic conditions in
the country are far superior to any other country in
the world. Credit, market and liquidity risk studies
suggest that Indian banks are generally resilient and
have withstood the global downturn well.
Indian banking industry has recently witnessed the
roll out of innovative banking models like payments
and small finance banks. The central bank granted in- principle approval to 11 payments banks and 10
small finance banks in FY 2015-16. RBI’s new
measures may go a long way in helping the
restructuring of the domestic banking industry.
Market Size
The Indian banking system consists of 26 public
sector banks, 25 private sector banks, 43 foreign
banks, 56 regional rural banks, 1,589 urban
cooperative banks and 93,550 rural cooperative
banks, in addition to cooperative credit institutions.
Public-sector banks control nearly 80 percent of the
market, thereby leaving comparatively much smaller
shares for its private peers. Banks are also
encouraging their customers to manage their finances
using mobile phones.
Standard & Poor’s estimates that credit growth in
India’s banking sector would improve to 11-13 per
cent in FY17 from less than 10 per cent in the second
half of CY14.
Investments/developments
Key investments and developments in India’s
banking industry include:
RBL Bank Limited, an Indian private sector
bank, has raised Rs 330 crore (US$ 49.6
million) from a UK-based development
finance institution CDC Group Plc, which
will help RBL to strengthen the capital base
to meet future requirements.
The State Bank of India (SBI) signed an
agreement with The World Bank for a Rs
4,200 crore (US$ 625 million) credit facility,
aimed at financing grid connected rooftop
solar photovoltaic (GRPV) projects in India.
JP Morgan Chase, the largest bank in United
States by assets, plans to expand its
operations in India by opening three new
branches in Delhi, Bangalore and Chennai in
addition to its existing branch in Mumbai.
Canada Pension Plan Investment Board
(CPPIB), an investment management
company, has bought a large stake in Kotak
Mahindra Bank Ltd from Japan-based
Sumitomo Mitsui Banking Corporation.
India’s first small finance bank called the
Capital Small Finance Bank has started its
operations by launching 10 branch offices in
Punjab, and aims to increase the number of
branches to 29 in the current FY 2016-17.
Page 3 of 10
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 03 Issue 09
August 2017
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 180
FreeCharge, the wallet company owned by
online retailer Snapdeal, has partnered with
Yes Bank and MasterCard to launch
FreeCharge Go, a virtual card that allows
users to pay for goods and services at online
shops and offline retailers.
Exim Bank of India and the Government of
Andhra Pradesh has signed a Memorandum
of Understanding (MoU) to promote exports
in the state.
Kotak Mahindra Bank Limited has bought
19.9 per cent stake in Airtel M Commerce
Services Limited (AMSL) for Rs 98.38
crore (US$ 14.43 million) to set up a
payments bank. AMSL provides semi- closed prepaid instrument and offers
services under the ‘Airtel Money’ brand
name.
Ujjivan Financial Services Ltd, a
microfinance services company, has raised
Rs 312.4 crore (US$ 45.84 million) in a
private placement from 33 domestic
investors including mutual funds, insurance
firms, family offices and High Net Worth
Individuals (HNIs)).
India's largest public sector bank, State Bank
of India (SBI), has opened its first branch
dedicated to serving start-up companies, in
Bengaluru.
Global rating agency Moody's has upgraded
its outlook for the Indian banking system to
stable from negative based on its assessment
of five drivers including improvement in
operating environment and stable asset risk
and capital scenario.
Lok Capital, a private equity investor
backed by US-based non-profit organisation
Rockefeller Foundation, plans to invest up
to US$ 15 million in two proposed small
finance banks in India over the next one
year.
The Reserve Bank of India (RBI) has
granted in-principle licences to 10 applicants
to open small finance banks, which will help
expanding access to financial services in
rural and semi-urban areas.
IDFC Bank has become the latest new bank
to start operations with 23 branches,
including 15 branches in rural areas of
Madhya Pradesh.
The RBI has given in-principle approval to
11 applicants to establish payment banks.
These banks can accept deposits and
remittances, but are not allowed to extend
any loans.
The Bank of Tokyo-Mitsubishi (BTMU), a
Japanese financial services group, aims to
double its branch count in India to 10 over
the next three years and also target a 10 per
cent credit growth during FY16.
The RBI has allowed third-party white label
automated teller machines (ATM) to accept
international cards, including international
prepaid cards, and said white label ATMs
can now tie up with any commercial bank
for cash supply.
The RBI has allowed Indian alternative
investment funds (AIFs), to invest abroad, in
order to increase the investment
opportunities for these funds.
Bandhan Financial Services raised Rs 1,600
crore (US$ 234.8 million) from two
international institutional investors to help
convert its microfinance business into a full
service bank. Bandhan, one of the two
entities to get a banking licence along with
IDFC, launched its banking operations in
August 2015.
Government Initiatives
The government and the regulator have undertaken
several measures to strengthen the Indian banking
sector.
In July 2016, the government allocated Rs
22,915 crore (US$ 3.41 billion) as capital
infusion in 13 public sector banks, which is
expected to improve their liquidity and
lending operations, and shore up economic
growth in the country.
The Reserve Bank of India (RBI) has
released the Vision 2018 document, aimed
at encouraging greater use of electronic
payments by all sections of society by
bringing down paper-based transactions,
increasing the usage of digital channels, and
boosting the customer base for mobile
banking.
The Reserve Bank of India (RBI) has issued
guidelines for priority sector lending
certificates (PSLCs), according to which
banks can issue four different kinds of
PSLCs—those for the shortfall in agriculture
lending, lending to small and marginal
farmers, lending to micro enterprises and for
overall lending targets – to meet their
priority sector lending targets.
