Financial Analysis of banking sector of India

Financial depth psychology of margining sector of IndiaFinancial Analysis of avowing sector of India Special Reference to buck private Sector bordersFinancial records argon those affirmations which provide information about lucrativeness and fiscal military post of a business. It includes two line of reasonings, i.e., profit injustice a/c or income statement and balance sheet or power statement. The income statement presents the summary of the income earned and the expenses incurred during a m wholenesstary year. Position statement presents the pecuniary position of the business at the end of the year. This paper is try to present all the components of balance sheet and profit and loss key out in common size and analyze the man-to-man item in proportionateness Sheet Profit Loss A/c as compare to total liabilities/Assets/Income/Expenditure.ObjectivesTo compare the fiscal position with the help of proportionateness Sheet and Profit and Loss depictTo compare the fis cal carrying into action through a common-size financial statement.IntroductionAfter preparation of the financial statements, one may be interested in knowing the position of an enterprise from different points of view. This good deal be done by analyzing the financial statement with the help of different tools of analytic thinking such as park size statement analysis, funds flow analysis, cash flow analysis, honey oil size/ comparative statement analysis, etc. Here I go through done financial analysis by familiar size financial statement analysis. Common size financial statement analysis, also mobiliseed plumb analysis, is just one technique that financial managers use to analyze their financial statements. It is not another type of income statement. It is just a tool that is apply to analyze the income statement and position statement. With the use of this method of common-size financial statements, the comparisons amid the financial statements of different companies be come easy. In this method, each of figures in the financial statements are reported in the form of percentage. This percentage is the figure of one frequent base figure. This base figure determines the percentile of all the figures in the common-size financial statements. By using this method, it is easy to compare the financial statements of the same(p) company from different periods or comparing the companies of different size. Due to this method, the preconceived notion between the company sizes is removed, and investor can effectively compare the financial statements. The woof of base figure depends on the financial statements head. In income statements, the revenue can be selected as the base figure and all the incomes and expenses can be measured against it.Moreover, in the balance sheet of the company, all the related items are take offd by the total of their items. For example, if the investor wants to find out the percentage of the instrument in balance sheet, he or she will have to divide the figure of inventory with the total assets.MethodologyFor the purpose of this study individual item of balance sheet converted into common size i.e.in degree centigrade for this purpose an individual item in balance sheet dual-lane by total assets/total liabilities and converted into ampere-second.This is also to profit and loss estimate i.e. individual item in profit and loss narrative divided by total income/total expenditure and converted intocentury.For this analysis three years proportionality Sheet and Profit and loss account of top three private rims viz.ICICI bank,HDFC bank and bloc bank was analyzed.Balance Sheets as on 31st bound 2011Capital and Liabilities bloc(Rs.000)HDFC(Rs.000)ICICI(Rs.000)Capital4,105,4580.1694,652,2570.167115211290.283reserves and pleonastic185,882,7977.6582491404268.982539,388,24413.277Deposits1,892,378,01077.9672,085,864,05475.2062,256,021,07755.535Borrowings262,678,82410.822143,940,6105.1891,095,542,77126.968 other( a) Liabilities and feed82,088,6273.382289,928,56510.453159,863,4673.935 extreme2,427,133,716 snow2,773,525,912 atomic number 64,062,336,688 blowAssets cash in and Balance with RBI138,861,6305.721251,008,1589.050209,069,7035.146Balance with swans and Money at call and unforesightful Notice75,224,9293.09945,680,1911.647131,831,1283.245Investments719,916,20829.661709,293,65625.5731,346,859,63033.154Advances1,424,078,28658.6731,599,826,65457.6822,163,659,01453.26Fixed Assets22,731,4560.93621,706,4800.78247,442,5511.167 new(prenominal) Assets46,321,2071.908146,010,7735.264163,474,6624.024Total 2,427,133,716 nose candy2,773,525,912 atomic number 64,062,336,688100 axis(Rs.000)HDFC(Rs.000)ICICI(Rs.000)IncomeInterest Earned151,548,05876.589199,282,12282.13259,740,52879.62 opposite Income46,321,33823.41043,351,52717.8766,478,92520.38Total197,869,396100242,633,649100326,219,453100ExpenditureInterest Exp stop85,918,23052.39493,850,83946.15169,571,51561.728 operate Expenses47,794,28129.14571, 529,14135.17166,172,49224.088Provision and Contingencies30,271,97918.46037,989,66018.68038,961,68414.183Total 163,984,490100203,369,640100274,705,691100Profit Loss Account for the year ended 31st borderland 2011Balance Sheets as on 31st March 2012Capital and Liabilities axis(Rs.000)HDFC(Rs.000)ICICI(Rs.000)Capital4,132,0390.1444,693,3770.138115515370.243 take holds and Surplus223,953,3847.840294,5533788.716592,500,88512.509Deposits2,201,043,03377.0592,467,064,45973.002,554,999,56153.94Borrowings340,716,72111.928238,465,0867.0571,401,649,07329.592Other Liabilities and Provisions86,432,7573.026374,318,69011.077175,769,8463.710Total2,856,277,9341003,379,094,9901004,736,470,902100AssetsCash and Balance with RBI107,029,2143.747149,910,9454.436204,612,9354.319Balance with Banks and Money at call and condensed Notice32,309,9431.13159,466,3181.759157,680,1993.329Investments931,920,85932.627974,829,09428.8481,595,600,43033.687Advances1,697,595,38659.4331,954,200,29257.832,537,276,57953.56 8Fixed Assets22,593,2500.79123,471,9400.69446,146,8700.974Other Assets64,829,2822.269217,216,4016.428195,153,8894.120Total 2,856,277,9341003,379,094,9901004,736,470,902100 Profit Loss Account for the year ended 31st March 2012Axis(Rs.000)HDFC(Rs.000)ICICI(Rs.000)IncomeInterest Earned219,946,47480.228272,863,51783.880335,426,52281.720Other Income54,202,16319.77152,436,94916.1275,027,59818.279Total274,148,637100325,300,466100410,454,120100ExpenditureInterest Expended139,769,02460.316149,895,78054.78228,084,96465.958Operating Expenses60,070,99525.92385,900,57131.39378,504,43322.702Provision and Contingencies31,886,56413.76037,833,20813.82639,212,15111.339Total 231,726,583100273,629,559100345,801,548100Balance Sheets as on 31st March 2013Capital and LiabilitiesAxis(Rs.000)HDFC(Rs.000)ICICI(Rs.000)Capital4,679,5450.1374,758,8380.117115811970.216Reserves and Surplus326,399,0549.5843638818098.925655,478,39212.211Deposits2,526,135,88174.1762,960,917,69972.6212,926,136,25754.511Borrowings43 9,510,98412.906394,966,1279.6871,453,414,94427.076Other Liabilities and Provisions108,881,1203.197352,705,3778.651321,336,0215.986Total3,405,606,5841004,077,229,8501005,367,946,811100AssetsCash and Balance with RBI147,920,8834.343146,308,7903.588190,527,3093.549Balance with Banks and Money at call and Short Notice56,428,7161.656129,002,8453.164223,647,8794.166Investments1,137,375,37033.3971,109,604,12427.2141,713,935,99331.929Advances1,969,659,57457.8352,472,451,15160.6402,902,494,35154.07Fixed Assets23,556,4200.69127,733,1620.68046,470,5870.865Other Assets70,665,6212.074192,129,7784.712290,870,6925.418Total 3,405,606,5841004,077,229,8501005,367,946,811100Profit Loss Account for the year ended 31st March 2013Axis(Rs.000)HDFC(Rs.000)ICICI(Rs.000)IncomeInterest Earned271,825,74480.579358,610,21383.409400,755,96982.764Other Income65,511,06319.42071,329,64516.59083,457,01217.235Total337,336,807100429,939,858100484,212,981100ExpenditureInterest Expended175,163,11161.343196,954,47454.567 262,091,84865.366Operating Expenses69,142,37524.214115,518,96332.00590,128,83722.478Provision and Contingencies41,236,99214.44148,463,62113.42748,737,56912.155Total 285,542,478100360,937,058100400,958,254100Capital to Total Liabilities Year advert of BankAxisHDFCICICI2010-110.160.160.282011-120.140.130.242012-130.130.110.21Interpretation Capital Common size statement of ICICI Bank was to a greater extent than Axis Bank HDFC Bank in these three years. It is also seen that in all these three years Capital Common size statement of these banks were decreased consistently.Reserve and surplus to Total Liabilities YearName of BankAxisHDFCICICI2010-117.688.9813.272011-127.848.7112.502012-139.588.9212.21InterpretationCommon size statement of Accumulated Reserve and Surplus of ICICI Bank was more than Axis Bank HDFC Bank, but this Common size statement consistently decreases. This Common size statement of Axis bank consistently increases.Deposits to Total LiabilitiesYearName of BankAxisHDFC ICICI2010-1177.9675.2055.532011-1277.0573.0053.942012-1374.1772.6254.51InterpretationDeposit Common size statement Axis bank was more than HDFC ICICI bank however this Common size statement of Axis bank and HDFC bank consistently decreases.Borrowings to Total LiabilitiesYearName of BankAxisHDFCICICI2010-1110.825.1826.962011-1211.927.0529.592012-1312.909.6827.07InterpretationAs regards to borrowings, ICICI bank has more borrowings than Axis bank and HDFC bank, it is also depicts that borrowings of Axis bank and HDFC bank consistently increases.Other liabilities Provisions to Total LiabilitiesYearName of BankAxisHDFCICICI2010-113.3810.453.932011-123.0211.073.712012-133.198.655.98InterpretationOther liabilities and provisions of HDFC bank was more than Axis bank and ICICI bank and it is upto10% on an average, however the axis bank ICICI bank maintains this Common size statement upto 3% on an average.Cash Balances with RBI to Total Assets YearName of BankAxisHDFCICICI2010-115.729.05 5.142011-123.744.434.312012-134.343.583.54InterpretationCash balance of HDFC bank in year 2010-11 was in highest Common size statement. Cash balance of HDFC bank and ICICI bank continuously decreases.Balance with Banks and Money at call and Short Notice to Total Assets YearName of BankAxisHDFCICICI2010-113.091.643.242011-121.131.793.322012-131.65