Industry Overview: Banking is different from other businesses. In banking, Raw material and Final output are the same. Money. A high level of borrowed funds is unsuitable for other businesses. In banking, it is necessary to borrow. Banking gives access to nearly all classes of people in society. Hardly any other businesses can do that. The use of public money is considered in the banking business concerning other businesses. Hardly other businesses achieve the status TO BIG TO FAIL. It’s easy for banks to become that much big. A real asset for any bank is mainly Its brand and Human resources. For others, Manufacturing plants or machines are essential assets. Banks play a crucial role in the Economy as giving loans or financing Infrastructure or housing is vital for Govt for that banks may play a key Role. Increasing the business of Banking network of branches is important though, in today’s Application era, we don’t need an extensive and Large network. But whatever is the web, that helps many businesses. Like when I need to go for IPO, I prefer KOTAK securities, SBi Cap, and Axis Capital rather than Other Investment bankers. Because they can use the Bank branch network for receiving payment, banks are helping the general public invest the money and channel the savings. But the most significant thing a bank does is keep the flow in the Economy. Without a bank, Govt can’t make it. Banking also helps to make records of income. As we live in a cashless payment era, a bank account is a must.
Company Profile: The bank was founded in 1906 and nationalized in 1969. The bank offers many services like wholesale banking, retail banking, and treasury. The bank accepts current accounts and savings accounts. In addition, the bank provides different types of loans like Home loans, education loans, vehicles, personal loans, corporate and MSME, overdraft against securities, and loans against FCNR deposits. In addition, the company provides cash management services; trade finance; project finance and syndication services; online share trading services; insurance products and services; mutual fund products; portfolio management services; credit, debit, and prepaid cards; and remittance, online banking and payment, online income tax return, and ATM and other kiosk services, as well as cards, loans, and services to rural customers. March 31, 2018, it operated 5,127 branches in India, 29 branches, and 30 representative offices internationally. The company was founded in 1906 and is headquartered in Mumbai, India.
Shareholding Pattern: BSE Data
Financials and ratio : [table id=183 /]
Future prospectus: PSU Bank is difficult to survive because government intervention is always there. Management quality is also low. But Bank of India is one large bank that can face mergers like Bank of Baroda Vijaya and Dena bank. So we don’t know what that bank will look like. So that is a significant risk now.
