Financial Statment Analysis - Banking Sector


Banking sector is one of the fastest growing sectors in India. This one day seminar looks at understanding & analyzing the Banking Sector’s structure, risk related parameter & performance. This program primarily focuses on tools and techniques for decision making skills with the perspective of equity market investments.

Structure of Banking Balance Sheet and P & L Account

The Banking sector financial statements are completely different from other regular manufacturing or trading companies. Banks can and do borrow much more than the equity and are allowed by both RBI and Basel norms to do so. Capital adequacy is an important issue. These areas will be covered in some detail.

Price to Book, Price to Adjusted Book Concepts, Price to Earnings

Pricing of banking sector shares is well correlated with the underlying book value per share after adjustment for NPAs not provided and has little correlation with earnings. This session will seek to understand why that is so and why between banks, these ratios may tend to differ quite significantly.

Profitability Ratios - NIM, Provisioning - Gross and Net

Profitability in banking sector is related to the interest that the bank is able to charge its borrowers vis-a-vis the interest that it pays out on its deposits. The variety of loans granted and deposits enjoyed leads to variation in interest margins. The factors that drive this margin are of great interest to analysts who track this sector.

Risk Related Parameters - Value at Risk, Sensitivity

Risk management is important in banking as the entire balance sheet revolves around probability of non-payment by borrowers. What risk measures banks typically adopt and what is disclosed in banking annual reports is the focus of this session.

Case study

Basic accounting knowledge

Classroom cum Case based methodology is used

Investment Bankers, Equity Analyst, Corporate, Banks, Mutual Funds, Broking Houses, Financial Institutions, Fund Managers, Equity Trader, Strategist, Consultants, High Net worth Investors other capital market intermediaries, Students & Retail Investors.

1 days
10.00 am to 5.30 pm

Rs. 4,375.00 + Applicable Taxes per participant inclusive of tuition fees, and (morning / evening) refreshments only.

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