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7/28/2019 Scp Performance
1/5
PERFORMANCE
According to SCP concept , conduct of a firm determines performance of the firm. If a firm is
spending more on advertising , it will result in more sales and hence more profits. We will
study profits of all public , private and foreign sector banks by some profitability measures.
Profit Interest earned RoA RoI Business per employee
PROFIT (in lakhs)
SBI & its associates 1533360
ICICI BANK 646530
HDFC BANK 516710
BANK OF BARODA 500700
PUNJAB NATIONAL BANK 488420
AXIS BANK 424220
CANARA BANK 328270BANK OF INDIA 267750
IDBI BANK LTD. 203160
HONG KONG & SHANGHAI BANKING
CORPORATION
198770
CITIBANK 192200
ALLAHABAD BANK 186680
UNION BANK OF INDIA 178710
INDIAN BANK 174700
STANDARD CHARTERED BANK 173580
CORPORATION BANK
150600
In terms of profits SBI leads the banking sector . ICICI Bank , HDFC Bank , Bank of Baroda
and Punjab National Bank are next in terms of profits. Though SBI leads in terms of profit it
has less CAGR( compound annual growth rate) compared to other banks. ICICI Bank &
HDFC Bank have high CAGR. It means though their profits are less, but they are growing at
faster rate.
Interest Earned (2012)
7/28/2019 Scp Performance
2/5
Sbi & its associates 14348790
PUNJAB NATIONAL BANK 3642800
ICICI BANK 3354270
CANARA BANK 3085060
BANK OF BARODA 2967370
BANK OF INDIA 2848070
HDFC BANK 2728640
IDBI BANK LTD. 2336990
AXIS BANK 2199460
UNION BANK OF INDIA 2114430
CENTRAL BANK OF INDIA 1914950
INDIAN OVERSEAS BANK 1789710
ORIENTAL BANK OF COMMERCE 1581490
ALLAHABAD BANK 1552330
SYNDICATE BANK 1526840
The list is very similar to list of Profit.
RoA
RoA is net profit upon Total Assets.
AB BANK 7.05
OMAN INTERNATIONAL BANK 6.09MASHREQ BANK 5.76
CREDIT AGRICOLE INDOSUEZ 4.92
MIZUHO CORPORATE BANK 4
BANK OF AMERICA 3.62
BANK OF CEYLON 3.08
JP MORGAN CHASE BANK 2.9
DEUTSCHE BANK 2.58
SHINHAN BANK 2.52
BANK OF TOKYO-MITSUBISHI-
UFJ
2.26
BANK OF NOVA SCOTIA 2.24
SONALI BANK 2.23
BANK OF BAHRAIN & KUWAIT 2.14
KRUNG THAI BANK 2.12
As we can see top 15 banks in terms of RoA . All are foreign Banks Foreign Banks have
better Return on Investment compared to Public and Private sector Banks.
7/28/2019 Scp Performance
3/5
As we can see from above trend analysis foreign Banks always had better RoA which shows
that although their absolute profits might be less but their efficiency is better than private and
foreign sector Banks. It can also be seen that Public Sector Banks has increase RoA
considerably . Private sector Banks also has continuously increasing RoA.
RoI
Return on investments is interest earned on investment upon total investments.
MIZUHO CORPORATE BANK 11.62
ANTWERP DIAMOND BANK 10.86
BANK OF CEYLON9.99
SONALI BANK 9.62
BNP PARIBAS 9.59
CHINATRUST COMMERCIAL BANK 9.06
SHINHAN BANK 8.97
HONG KONG & SHANGHAI BANKING
CORPORATION
8.66
STATE BANK OF MAURITIUS 8.48
CITIBANK 8.32
BANK OF INDIA 8.27
ING VYSYA BANK 8.26
FEDERAL BANK 8.24
0
0.5
1
1.5
2
2.5
1990 1995 2000 2005 2009 2012
Public
Private
Foreign
7/28/2019 Scp Performance
4/5
BANK OF TOKYO-MITSUBISHI-UFJ 8.24
DBS BANK 8.24
This list is also dominated by foreign Banks. It shows foreign Banks are more efficient.
Business Per Employee
BANK OF NOVA SCOTIA 5430
ANTWERP DIAMOND BANK 3874
JP MORGAN CHASE BANK 3571
BANK OF TOKYO-MITSUBISHI-UFJ 3566
BNP PARIBAS 3519
BANK OF AMERICA 3399
STATE BANK OF MAURITIUS 3358
DBS BANK 3278
CREDIT AGRICOLE INDOSUEZ 2664
SOCIETE GENERALE 2493
MIZUHO CORPORATE BANK 2488
SHINHAN BANK 2439
IDBI BANK LTD. 2387
UBS AG 2163
DEUTSCHE BANK 2156
CITIBANK 1975
As can be seen from above table Business per employee also consist of mainly Foreign
banks.
0
2
4
6
8
10
12
14
16
1992 1995 2000 2005 2009 2012
public
private
foreign
7/28/2019 Scp Performance
5/5
Foreign Banks have high Business per employee followed by public banks and at last are
Private sector Banks.