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A Fundamental Analysis Of Indian Banking Industry

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Author Info
P Janaki Ramudu
S Durga Rao
Abstract

Investment decisions, in all sectors, have been gaining paramount importance, warranting the investors to be continuously cautious of risk and return involved in the same. The faculty ‘investment analysis’ calls for planned and meaningful appraisal of both internal and external factors affecting the returns. Ever since Indian economy opened its doors to MNCs, the Indian banking sector has been witnessing bizarre changes in terms of new products and services and stiff competition as well. The sort of IPOs that have been taking place in banking sector are amazing. In the light of these recent developments, a careful analysis of the profitability of Indian banking sector is inevitable. The present study attempts to analyze the profitability of the three major banks in India: SBI, ICICI, and HDFC. The variables taken for the study are Operating Profit Margin (OPM), Net Profit Margin (NPM), Return on Equity (RoE), Earnings per Share (EPS), Price Earnings Ratio (PER), Dividends per Share (DPS), and Dividends Payout Ratio (DPR). The study brings out the comparative efficiency of SBI, ICICI, and HDFC.

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Publisher Info
Article provided by Icfai Press in its journal The Icfai University Journal of Bank Management.

Volume (Year): V (2006)
Issue (Month): 4 (November)
Pages: 68-79
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:icf:icfjbm:v:5:y:2006:i:4:p:68-79

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This page was last updated on 2009-12-2.


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