Submitted By :KURRA RANGA NAIK

PNB AND ICICI

• Punjab National Bank is an Indian multinational banking and financial services company. It is a state-owned corporation based in New Delhi, India. Founded in 1894, the bank has over 6,968 branches and over 9,656 ATMs across 764 cities. It serves over 80 million customers

• ICICI Bank is an Indian multinational banking and financial services company headquartered in Mumbai, Maharashtra, India, it was the second largest bank in India in terms of assets and third in term of market capitalization. The bank has a network of 4,450 branches and 13,995 ATMs in India, and has a presence in 19 countries including India

CAMEL APPROACH

• In the 1980s, CAMEL rating system was first introduced by U.S. supervisory authorities as a system of rating for on-site examinations of banking institutions.

• The composite rating ranges between 1 (best) and 5 (worst), and also involves a certain amount of subjectivity based on the examiners‟ overall assessment of the institution in view of the individual component assessments

Capital Adequacy• Capital adequacy is an ultimate indicator of overall financial health of the

banking system. • It is measured by the Capital to Risk - Weighted Assets Ratio (CRAR)

Interpretation

Capital adequacy Ratio :

Analysis : As per Rbi given minimum CAR is 8.83 percentage maintain every bank If its 10% its safe par the bank , above the table both the banks are risk compare to pnb Icici is more risk the given money more out siders

Capital Adequacy Ratio 2016 2015 2014 2013 2012

PNB 11.28 12.89 12.11 12.72 12.63

ICICI 16.64 17.02 17.7 18.74 18.52

Net Balance Sheet Position to Equity: NBSP/E

Analysis : every financial year the calculating the net balance position of the banks, I already said that above the tables icici its good position regulating good and safer site they have good amount of money doing good

Asset Quality • The asset quality is to ascertain the proportion of nonperforming as a

percentage of the total assets. It also ascertains the NPA movement and the amount locked up in investment as a percentage of the total assets

i) Net NPA

Analysis: Asset quality we see the banks NPA if npa is more its means bank given more money to outsiders if less NPA it means bank have good position or bank is not given money to outsiders As per above table says that icici is less NPAs has compared to PNB ,ICICI bank have good position recovering the loan amount

% of Net NPA 2016 2015 2014 2013 2012

PNB 8.61 4.06 2.85 2.35 1.52

ICICI 3.35 2.98 2.28 1.65 1.58

Gross NPA

Analysis : Gross NPA (non-performing asset) refers to overall quantity of loans that have gone bad .above the table says that it means pnb is given the much more loans to outsiders the have more risk to recollecting the loan amount ,ICICI is a good position of the recollecting the bed loans .NPA Advance Analysis : The net NPA to loans (advances) ratio is used as a measure of the overall quality of the bank's loan book. An NPA are those assets for which interest is overdue for more than 90 days (or 3 months). Pnb bank has more due compare to the ICICI bank

%GROSS NPA 2016 2015 2014 2013 2012

PNB 12.9 6.55 5.25 4.27 2.93

ICICI 5.87 5.82 4.72 3.77 3.68

Net NPA Advance (%) 2016 2015 2014 2013 2012

PNB 9 4 3 2 2

ICICI 3 2 1 1 1

Management Quality:• The management dimension in CAMEL analysis has assumed much

important position like never before To capture the possible dynamics of management efficiency affecting the financial performance of the banks the following ratios are considered.

• i. Market Value to Equity Capital, ii. Total Advances to Total Deposits. iii.Business per Employee, iv. Profit Per Employee

i) Profit per Employee

Analysis : The study found that maximum profit per employee of ICICI bank is Rs. 10 lakhs in 2016-2015. It has constantly maintained its profit better than other selected banks and this shows the quality of work force with ICICI bank which has increased the profit year on year. The maximum amount of profit that the employee generates would determine the skill sets of the employee as well as the HR policies of the bank. Good HR policies would benefit the banks with respect to the profit increment

Profit per Employee 2016 2015 2014 2013 2012

PNB 8.58 9.07 9.3 9.87 9.75

ICICI 9.98 9.88 9.65 9.58 9.33

ii) Business per Employee :

Analysis : pnb bank employees are doing good job as compare to icici banks pnb it’s a public sector bank they need customers that way bank employees are doing they great job as compare to icici bank employees

iii) Personnel Expenses to Other Operating Expenses

Analysis : Positive NIM reflects that banks management have taken care of the capital structure and largely employed cheaper form of debt to avoid risk and to maintained profitability and liquid

Business per Employee 2016 2015 2014 2013 2012

PNB 5.07 5.17 5.27 5.79 5.52

ICICI 4.62 4.84 4.9 5.19 5.18

Pex/OEx 2016 2015 2014 2013 2012

PNB 4.594591 4.274986 4.312541 4.589164 4.55343

ICICI 6.291448 5.705127 5.1186 4.477337 3.901809

iii)Total Assets to Total Deposit:

Analysis: The study shows the investment of the bank through approving the loans against accepting the loan in PNB has continuously improved year by year, Banks “ICICI, have more or less constant. For smooth survival banks have to make balance growth in TA / TD. One side growth will lead to risk, as have to pay return on deposit and also making advance and investment with minimum risk of NPA.

v) Funds Borrowed to Total Assets :

TA/TD 2016 2015 2014 2013 2012

PNB 1.206742783 1.203349229 1.219370587 1.222997667 1.20708089

ICICI 1.710135578 1.787046165 1.791555009 1.83448283 1.85380495

FB/TA 2016 2015 2014 2013 2012

PNB 0.63 0.53 0.65 1.02 1.17

ICICI 1.43 1.8 1.73 1.65 1.47

Earning Efficiency • For smooth survival earning efficiency is important for all economic activities.

In bank’s most of the income is earned through non-core activities like investments, treasury operations, and corporate advisory services and so on and thus require high degree of efficiency in all regards

i)ROE

Analysis : The study found that all selected banks have positive profit after tax in 2012-11 and generated revenues. Comparatively ICICI bank has better percentage than other banks that is 20.35% which shows that it has efficiently used its assets than other banks and generated better percentage revenue. Followed by PNB

ROE 2016 2015 2014 2013 2012

PNB 9.20 8.64 10.14 16.21 20.35

ICICI 12.42 16.07 16.09 15.58 13.62

• ROA

Analysis : ICICI bank earing much more profits as compare to PNB bank they have less NPA that way bank have a sold position to give loans to outsider they re locating amount it also be they understand they market very well that way making profits

ROA 2016 2015 2014 2013 2012

PNB 0.55 0.54 0.66 1.02 1.16

ICICI 1.25 1.64 1.64 1.57 1.38

Liquidity: Liquidity in general term means ability to realize value in money, the most liquid of assets. It refers to the ability to pay in cash, the obligations that are due. It is divided in two parts that is qualitative and quantitative.

I) Current Ratio :

Analysis : current assets of icici bank is more amount of money compared pnb bank

ii) Quick Ratio :

Analysis : in current ratio icici have more money but in quick ration pnb have more asstes as compare to icici bank , pnb is given they much amount money to outsiders though amount money is easily converted to cash

Current Ratio 2016 2015 2014 2013 2012

PNB 3 2 2 2 2

ICICI 13 6 9 9 7

Qick Ratio 2016 2015 2014 2013 2012

PNB 28.09 24.23 25.19 22.4 23.81

ICICi 14.97 13.81 11.31 10.53 16.71

Conclusion • Since liberalization and globalization the Indian banking

sector has come a long way, a hallmark of which has been the coming of age of the Public Sector Banks, in particular. This study revealed that public sector commercial banks have performed remarkably better on every CAMEL parameter in comparison to their private competitive banks. As far as private sector banks are concerned ICICI banks has shown better performance and outperformed other private sector banks but lag behind public sector commercial banks.