A Project Report on

“A Case Study On Financial Performance of State Bank of

India”

A Project Report submitted for the award of degree of Master of Business

Administration (MBA) in Faculty of Commerce Under Business
Administration and Management BOS of Rashtrasant Tukdoji Maharaj
Nagpur University, Nagpur.

Navin Vinod Hedaoo

Researcher

Dr. Prashant A.Manusmre

Guide

Dr. Prashant A. Manusmare Dr. Vikas P. Dhomne

HOD/ coordinator Principal/ Director

Department of management science & research

J.M.PATEL COLLEGE, BHANDARA

(2023-24)
 Declaration

I hereby declare that the research work presented in

this Project Report entitled: “A Case Study On

Financial Performance of State Bank of India.”
has been carried out under the supervision of Dr. P.A.
Manusmare during the session 2023-24.

This work which or any part of this work is based on

original research and has not been submitted by me to
any University/ Institution for the award of any
diploma or degree.
The source of material, data used in this research study
have been duly acknowledged.

Place: Bhandara

Mr. Navin Vinod Hedaoo

Date: Researcher
 Acknowledgement
Each steps in learning of life is an opportunity which adds
to our personality. A research project is usually never one
man shows, but it is very much the product of collectively
efforts.
I would like to add a few heartful words for the people who were
the part of this work in numerous ways ,people who gave
unending support right for the stage the ideas was conceived.
Behind every successful work there are some sort
of impetus provided by some . my guide Dr. P. A.
Manusmare has help me immensely on accomplishing this
research project. For providing me all possible help and
facility which are available at their disposal.
This work could not have been completed without the active
support and encouragement of my professor and colleagues
of J.M. Patel college Bhandara
I express my sincere thanks to you all

Mr. Navin vinod hedaoo

Place: - Bhandara

Date:-
 INDEX
Sr .No CHAPTER

1 Introduction

2 Objectives

3 Research methodology

4 Hypothesis

5 Data collection & Analysis

6 Conclusion

7 Suggestions

8 Limitation

9 Bibliography

10 Annexure
CHAPTER -1
INTRODUCTION TO COMPANY

This Photo by Unknown Author is licensed under CC BY-NC-ND

Company Profile:-

“STATE BANK OF INDIA”

The origin of the State Bank of India (SBI) can be traced back
to more than 200 years. The Bank of Calcutta was established
on 2nd June 1806 by the Imperial Government. Later on the
bank received it’s charter and was re-designed as the Bank of
Bengal on 2nd January 1809. It was the first joint-stock bank
sponsored by the Government of Bengal. It was a unique
institution. Two or more presidency Banks, The Bank Of
Bombay on 25th April 1840 and the Bank 0f Madras on 1st
July 1843 followed thereafter. It has been observed that there
were lack of coordination between these three presidency
Banks, and the need was felt for one Central Bank for the
whole country. Hence, these banks were amalgamated into
Imperial Bank of India which was brought into existence on
27th January 1921 by the Imperial Bank of India Act of 1920.
 State Bank of India (SBI) a Fortune 500 company is an India
Multinational, Public Sector Banking and Financial services
statutory body headquartered in Mumbai. The rich heritage and
legacy of over 200 years, accredits SBI as the most trusted Bank
by Indians through generations.State Bank of India (SBI), with
a 200 year history, is the largest commercial bank in India
interms of assets, deposits, profits, branches, customers and
employees. The Government of Indiais the single largest
shareholder of this Fortune 500 entity with 61.58% ownership.
SBI is ranked60th in the list of Top 1000 Banks in the world by
"The Banker" in July 2012

Operations
State Bank Of India is an Indian multinational, public Sector banking
and financial services company. It is a government-owned corporation
with its headquarters in Mumbai, Maharashtra and also its corporate
office in Mumbai, Maharashtra As of December 2013, it had assets of
US$388 billion and 17,000 Branches, including 190 foreign offices,
making it the largest banking and financial services and financial
services company in India by assets. The State Bank of India (SBI) is
one of the largest and most prominent banks in India, offering a wide
range of financial products and sennces to individuals, businesses, and
institutions. Given its position as a key player in the Indian banking
sector and the wider economy, the financial performance of SBI has
been a topic of great interest and scrutiny for investors, policymakers,
and researchers alike. This study aims to conduct a comprehensive
analysis of the financial performance of SBI over a specific period of
time, using a range of relevant financial metrics and ratios to gain
insights into its profitability, liquidity, solvency, and efficiency. The
study will focus on key financial indicators such as net interest margin,
return on assets, non- performing assets ratio, capital adequacy ratio,
and operational efficiency, among others, to provide a holistic picture
of SBI's financial performance. The findings of this study could
potentially inform future investment decisions, policy interventions,
and strategic initiatives for SBI and the Indian banking sector more
broadly, contributing to the development of a more robust and
resilient financial system. By providing a deeper understanding of SBI's
financial performance, this study could also help investors make
informed decisions about the bank's stocks and bonds, and support
SBI's efforts to enhance its financial performance and reputation in the
market.

This Photo by Unknown Author is licensed under CC BY-NC-ND

INTRODUCTION OF TOPIC:
The State Bank of India (SBI) is one of the largest and most
prominent banks in India, offering a wide range of financial
products and services to individuals, businesses, and institutions.
Given its position as a key player in the Indian banking sector and
the wider economy, the financial performance of SBI has been a
topic of great interest and scrutiny for investors, policymakers,
and researchers alike. This study aims to conduct a
comprehensive analysis of the financial performance of SBI over
a specific period of time, using a range of relevant financial
metrics and ratios to gain insights into its profitability, liquidity,
solvency, and efficiency. The study will focus on key financial
indicators such as net interest margin, return on assets,
nonperforming assets ratio, capital adequacy ratio, and
operational efficiency, among others, to provide a holistic picture
of SBI's financial performance. The findings of this study could
potentially inform future investment decisions, policy
interventions, and strategic initiatives for SBI and the Indian
banking sector more broadly, contributing to the development of a
more robust and resilient financial system. By providing a deeper
understanding of SBI's financial performance, this study could
also help investors make informed decisions about the bank's
stocks and bonds, and support SBI's efforts to enhance its
financial performance and reputation in the market. Finance is the
lifeblood of any business it may be profit earning institution or
service institution the main aim is to earn profit to enhance their
sector and for future scope of growth. The banking industry plays
an important role in the economic development of a country. It
supplies the lifeblood-money that supports and fosters growth in
all the it is now necessary to compare both financial performance
as the banking sector has been strongly influenced by
globalization, privatization and liberalization .In today’s
competitive world and due to emergence of private banks which
has brought a wide changes in maintaining the transparency,
 efficiency and sustainability and Growth of the banking sector is
measured by the increase in the number of banks’ branches,
deposits, credit, etc.

Ratio Analysis:-
1. Current Ratio:

The current ratio is a financial ratio that measures the ability of a

bank to meet its short-term obligations with its current assets.
Specifically, it is calculated by dividing the bank's current assets
by its current liabilities.

For SBI Bank, the current ratio can be defined as follows:

Current Ratio = Current Assets of SBI Bank / Current Liabilities

of SBI Bank

SBI Bank's current assets include cash and cash equivalents,

investments, loans and advances, and other current assets. Its
current liabilities include borrowings, deposits, and other short-
term liabilities.

A higher current ratio indicates that SBI Bank has sufficient

current assets to meet its short-term obligations. Conversely, a
lower current ratio indicates that the bank may face difficulties in
meeting its short-term obligations.
YEAR CURRENT ASSET CURRENT LIBILITIES CURRENT RATIO
2024 Rs.4711,478cr Rs.53,09,834cr 0.89
2023 Rs.41,44855cr Rs.46,30,841cr 0.90
2022 Rs.39,87,705cr Rs.42,29,845cr 0.94
2021 Rs.2475,705cr Rs.37,32,917cr 0.93
2020 Rs.29,54,959cr Rs.32,37,598cr 0.91
 INTERPRTATIONS:
In the above table, Current Ratio from financial year 2018-2020 is
on an increased trend. But in 2021-2022 the current ratio is
reduced drastically. The Current Ratio is below 1,so the SBI has
inadequate current asset to reconcile its current liabilities.

CURRENT RATIO
0.95

0.94

0.93

0.92

0.91

0.9

0.89

0.88

0.87

0.86
2024 2023 2022 2021 2020

CURRENT RATIO

2. PROFITABILITY RATIO
Profitability ratios are financial ratios that
measure a company's ability to generate profits
 in relation to its revenue, assets, and/or equity.
These ratios provide insight into how well a
company is performing in terms of its
profitability, and are commonly used by
investors, analysts, and managers to evaluate a
company's financial performance.

Gross profit ratio

Net profit ratio

Operating ratio

Return On Investment (ROI)

GROSS PROFIT RATIO:

The Gross Profit Ratio is a financial ratio that measures the percentage
of revenue that remains after deducting the cost of goods sold (COGS).
This ratio is a measure of a company's profitability and indicates how
well the company is able to generate profit from its sales.

The formula for calculating the Gross Profit Ratio is:

Gross profit = Gross profit/Net sales 100

The Gross Profit Ratio provides insight into how efficiently a

company is able to manage its cost of goods sold and generate
profit from its sales. A higher Gross Profit Ratio indicates that the
company is able to generate more profit from its sales after
deducting the cost of goods sold. This ratio is particularly useful
for companies that rely heavily on sales, such as retailers and
wholesalers.

YEAR GROSS PROFIT NET SALES GROSS PROFIT

RATIO
2024 Rs.1,06,282cr Rs.4,15,880cr 25.58%
2023 Rs.99,091cr Rs.3,91,098cr 25.34%
2022 Rs.89,739cr Rs.3,28,732cr 27.32%
2021 Rs.89,203cr Rs.3,32,195cr 26.85%
2020 Rs.75,895cr Rs.2,90,016cr 26.17%

INTERPRETATION
In the above table, Gross Profit Ratio for the financial year 2018-2020
is on increased trend. But in 2021 the Gross Profit Ratio is decreased
drastically. The subsequent year (2022) has increased so the Gross
Profit Ratio for SBI shows the positive trend, when the cost of
production is constant on sales.

GROSS PROFIT RATIO

27.50%

27.00%

26.50%

26.00%

25.50%

25.00%

24.50%

24.00%
2024 2023 2022 2021 2020

GROSS PROFIT RATIO

TURNOVER RATIO

Turnover ratio is a financial metric that measures the efficiency of a

company in managing its assets. It is calculated by dividing the value off a
specific category of assets by the average value of that category of assets
during a specific period. The resulting ratio shows how frequently the
assets are being turned over or sold and replaced during that period.

Inventory turnover ratio

Debtors turnover ratio

Fixed Asset turnover ratio

INVENTORY TURNOVER RATIO:

Inventory turnover ratio is a financial metric that measures the
efficiency of a company's management of its inventory. It is a
ratio that shows how many times a company has sold and
replaced its inventory during a specific period. The higher the
inventory turnover ratio, the more efficient a company is at
managing its inventory.

The formula for inventory turnover ratio is:

Inventory Turnover Ratio = COGS/ Average Inventory

YEAR COST OF GOODS AVERAGE INVENTORY

SOLD INVENTORY TURNOVER RATIO
2024 Rs.2,66,096cr 10,598cr 25.10 times
2023 Rs.2,33,936cr 11,020.5cr 21.19 times
2022 Rs.2,01,932cr 12,026cr 16.77 times
2021 Rs.2,43,528cr 13,063.5cr 18.64 times
2020 Rs.2,39,688cr 12,047cr 19.88 times

INTERPRETATION:
In the above table, Inventory Turnover Ratio for the financial
years 2018-2020 was having a fluctuated trend over the period.
However in 2021-2022, there was a raise in the ratio compared to
previous year. Inventory Turnover Ratio measures a SBI ability in
managing its inventories

INVENTORY TURNOVER RATIO

30

25

20

15

10

0
2024 2023 2022 2021 2020

INVENTORY TURNOVER RATIO

Interpretation:

In the average collection period relation between debtors & sales

should be consider in to credit sales & according to balance sheet
are having 365 days in 2023 recovery period is more.
 Chapter-2
Scope & Significance
SCOPE AND SIGNIFICANCE :

➢ The study on the financial performance of SBI is limited to a

specific period of time, with a focus on analyzing the bank's
financial metrics and ratios.

➢ Understanding The study will utilize both quantitative and

qualitative research methods, including financial statement
analysis, ratio analysis, and trend analysis, to evaluate SBI's
financial performance in terms of profitability, liquidity,
solvency, and efficiency
➢ In addition, the study will also review relevant literature and
reports on SBI and the Indian banking sector to provide
context and background information for the analysis.
➢ The findings of the study will be limited to SBI and cannot be
generalized to other banks or financial
➢ The findings of the study will be limited to SBI and cannot be
generalized to other banks or financial institutions.
➢The study will also be limited by the availability and
reliability of data sources, which will be carefully selected and
verified to ensure the accuracy and validity of the analysis
➢ Reviving Performance: The merger aims to address challenges
faced by the Indian banking industry, such as net losses, rising
non-performing assets (NPAs), and escalating operating costs.
By pooling resources, the merged bank can work toward
financial recovery.
 Chapter-3
Review of Literature
Review of Literature:
In FY2023, the whole Bank deposits grew by 9.19% YoY to
`44.23 Lakh Crore, of which domestic deposits increased by
8.50% to `42.53 Lakh Crore and foreign offices deposits by
29.60% to `1.70 Lakh Crore. CASA deposits grew by 4.95% to
`18.62 Lakh Crore and CASA ratio of your Bank is at 43.80% as
of March FY2023.
• Mishra et al. (2023) conducted a study on the financial
performance of SBI. The study found that SBI had a higher
ROA and ROE compared to other banks in India. The study also
found that SBI had a higher NIM and lower NPA compared to
other banks

• Chakraborty and Debnath (2023) conducted a study on the

impact of financial inclusion on the financial performance of
banks in India, including SBI. The study found that financial
inclusion had a positive impact on the financial performance of
banks, including SBI.
• PATEL BHAVESHKUMAR K (2023), study the Financial
performance of SBI bank, this study is based on secondary data
that has been collected from annual reports of the SBI bank,
books, newspapers, magazines, journals, documents, research
papers, websites and other published information. . It is major
part of total banking system in India. SBI is the India’s largest
commercial bank in terms of assets, deposits and employees.
This study main objective is to find out the profitability, liquidity
ratios and solvency ratios to measure the financial health of SBI
bank.The market position of SBI is better. Financial analysis is
used to find the banks position in maintaining the day to day
operations. This study is focused to evaluating the performance
of SBI bank. The various ratios under the above category were
collected and it is found that there is a significant growth in the
year 2023. SBI have more profitability because it enters into the
industry as well as commercial market also and regularly it
improving the service quality level. In this highly competitive
global environment it is imperative for the SBI bank to show
outstanding performance in various parameters.
 Chapter-4
Objectives

Objectives of the study:

➢ To review the facilities and strategies available to State

Bank of India.

➢ To study the financial development of State Bank of

India.

➢ To analyze the overall liquidity and profitability of SBI.

Financial performance assessment: Evaluate profitability,

liquidity, and solvency to understand your enterprise’s

financial health.

➢ More informed decisions: Analyze financial data and

industry trends to make sound choices regarding

investments, expansions, and strategic initiatives.

➢ Managing risks better: Identify potential risks,

vulnerabilities, and implement measures to mitigate them

effectively.

➢ Optimal use of resources: Optimize resource

allocation, improve cost management, and enhance overall

profitability.

➢ Tracking progress: Monitor financial indicators over

time to track performance, identify trends, and take

corrective actions if necessary.

➢ Better communication with stakeholders: Present

financial reports and analyses to stakeholders,

demonstrating transparency and building trust.

 Chapter-5
Research Methodology
 Research Methodology:
Research Objectives:
Define specific research objectives related to the financial
performance of SBI.
Examples of objectives could include analyzing profitability,
liquidity, solvency, and efficiency.

Research Design:
Choose a case study design, as the research will focus on a specific
entity (SBI).
Decide on the time frame for the study, such as a specific fiscal
year or a multi-year analysis.

Data Collection:
Gather financial data from SBI's annual reports, financial
statements, and relevant publications.
Consider using both quantitative and qualitative data, such as
market trends, regulatory changes, and economic conditions.
Variables and Indicators:
Identify key variables and financial indicators for analysis.
Examples include:
Profitability ratios (e.g., net profit margin, return on assets)
Liquidity ratios (e.g., current ratio, quick ratio)
Solvency ratios (e.g., debt-to-equity ratio)
Efficiency ratios (e.g., asset turnover)
Data Analysis:
Utilize statistical tools and financial analysis techniques to
interpret the collected data.
Compare SBI's performance with industry benchmarks and
competitors.
Use graphs, charts, and tables to visually represent key findings.

SWOT Analysis:
Conduct a SWOT analysis (Strengths, Weaknesses, Opportunities,
Threats) to provide a holistic view of SBI's position.

Findings and Discussion:

Present the key findings derived from the data analysis.
Discuss the implications of the findings on SBI's financial
performance.
Compare the results with the objectives set in the study.

Recommendations:
Based on the analysis, provide recommendations for enhancing
SBI's financial performance.
Consider potential areas for improvement and strategic initiatives.

Conclusion:
Summarize the main findings and insights.
Emphasize the significance of the study and its contributions to
understanding SBI's financial performance.
Limitations and Future Research:
Acknowledge any limitations in the study, such as data availability
or external factors.
Suggest areas for future research or improvements to the
methodology.
This research methodology provides a structured approach to
conducting a case study on the financial performance of the State
Bank of India. Adjustments may be made based on the specific
focus and objectives of the study.
Chapter-6
Hypothesis
Hypothesis:

Ho: There is no significant difference in the values of

Profitability ratio of the selected State Bank of India.

H1: There is no significant difference in the values of

turnover ratio of the selected State Bank of India

H2: here is no significant difference in the values of

market based ratio of the selected State Bank of India

H03: There is no significant difference between

performances of SBI in terms of Borrowing.

H04: There is no significant difference between

performances of SBI in terms of Investment.

H05: There is no significant difference between

performances
of SBI in terms of Advances.
H06: There is no significant difference between
performances of SBI in terms of Net Profit.

H07: There is no significant difference between

performances of SBI in terms of ROA.
 Chapter-7
Data Collection & Analysis
 Data Collection:
Data collection is the process of gathering and measuring
information on variables of interest, in an established systematic
fashion that enables one to answer stated research questions, test
hypothesis, and evaluate outcomes. The data collection component of
research is common to all fields of study including physical and social
sciences, humanities, business, etc. while methods vary by discipline,
the emphasis on ensuring accurate and honest collection remains the
same.
 Balance Sheet:

particular 2023(in cr) 2022(in cr) 2021 (in cr)

Shareholders’ Funds
a) share capital 180.22 180.22 180.22
b)Reserve and surplus 3148.29 15556.22 1340.56
Non-current liabilities
a) Long term borrowings 377.33 188.93 129.51
b) deffered tax liabilities 233.99 166.47 172.52
c) other long term liabilities 61.08 64.72 73.06
d) Long term provisions 34.68 34.04 39.09
Current liabilities
a) Short term borrowing 167.23 334.81 31.46
b) Trade payable 563.78 453.19 274.76
c) Other current liabilities 156.18 89.83 139.3
d) Short term provisions 0 0 0
Total Liabilities 4922.78 3068.23 2380
Assets
Non-current assets
a) Fixed assets
1. Tangible assets 1759.63 1250.04 1131.71