STATE BANK OF INDIA

State Bank of India is the largest Indian banking and financial services company (by turnover and total assets) with its headquarters in Mumbai, India. It is state-owned. The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidency banks, Bank of Calcutta and Bank of Bombay to form Imperial Bank of India, which in turn became State Bank of India. The government of India nationalised the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008, the government took over the stake held by the Reserve Bank of India.

The Bank is changing outdated front and back end processes to modern customer friendly processes to help improve the total customer experience. With about 8500 of its own 10000 branches and another 5100 branches of its Associate Banks already networked, today it offers the largest banking network to the Indian customer. The Bank is also in the process of providing complete payment solution to its clientele with its over 21000 ATMs, and other electronic channels such as Internet banking, debit cards, mobile banking, etc.

The bank is also looking at opportunities to grow in size inIndia as well as Internationally. It presently has 82 foreign offices in 32 countries across the globe. It has also 7 Subsidiaries in India SBI Capital Markets, SBICAP Securities, SBI DFHI, SBI Factors, SBI Life and SBI Cards - forming a formidable group in the Indian Banking scenario. It is in the process of raising capital for its growth and also consolidating its various holdings.

The bank is entering into many new businesses with strategic tie ups Pension Funds, General Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sal Merchant Acquisition, Advisory Services, structured products etc each one of these initiatives having a huge potential for growth.

With an asset base of $352 billion and $285 billion in deposits, SBI is a regional banking behemoth and is one of the largest financial institutions in the world. It has a market share among Indian commercial banks of about 20% in deposits and loans. The State Bank of India is the 29th most reputed company in the world according to Forbes. Also SBI is the only bank featured in the coveted "top 10 brands of India" list in an annual survey conducted by Brand Finance and The Economic Times in 2010. The State Bank of India is the largest of the Big Four banks of India, along with ICICI Bank, Punjab National Bank and HDFC Bankits main competitors.

AWARDS AND RECOGNITIONS: SBI has been adjudged Bank of the Year 2009, India by the Banker magazine for the second year in succession SBI ranked 64th in the Top 1000 banks in the world by The Banker. State Bank of India ranks no. 2 (from no. 4 in 2008) in Indias Most Valuable Brand 2009 study carried out by Brand Finance exclusively for The Economic Times. ( dated 20th November 2009) Shri O P Bhatt , Chairman, State Bank of India, has been awarded the Inspiring Business Leader in Crisis Award by NDTV Profit Business Leadership Awards, 2009. Technology Bank of the Year by IBA Banking Technology Awards. SKOCH Award 2010 for Virtual corporation Category for its e-payment solution.

Type Industry Founded Headquarters Key people Revenue Operating income Profit Share price as on 19th Sep 2011 Total assets Total equity Owners

Public company Banking 1st July 1955 Mumbai, (Maharashtra), India Pratip chaudhuri (chairman) 147,843.92 crore (US$32.97 billion)(2011) 33,710.31 crore (US$7.52 billion)(2011) 11,179.94 crore (US$2.49 billion)(2011) 1916.60 $322.077 billion (2010) $19.048 billion (2010) Govt. Of India.

ICICI BANK
ICICI Bank is India's second-largest bank with total assets of Rs. 4,062.34 billion (US$ 91 billion) at March 31, 2011 and profit after tax Rs. 51.51 billion (US$ 1,155 million) for the year ended March 31, 2011. The Bank has a network of 2,533 branches and 6,810 ATMs in India, and has a presence in 19 countries, including India. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). ICICI Bank is India's second-largest bank with total assets of Rs. 4,062.34 billion (US$ 91 billion) at March 31, 2011. ICICI Bank is deeply engaged in human and economic development at the national level. The Bank works closely with ICICI Foundation across diverse sectors and programs.

AWARDS AND RECOGNITIONS: ICICI Bank ranked 5th in the list of "57 Indian Companies", and 288 th in World Rankings in Forbes Global 2000 list. Ms. Chanda Kochhar, Managing Director & CEO, was ranked 17th in Fortune's 25 Most Powerful CEOs in Asia. ICICI Bank ranked second in the financial services sector in Business Worlds, Most Respected Company Awards 2011" ICICI Bank was ranked 1st in the Banking and Finance category and 9th in the "2010 Best Companies To Work For" by Business Today. Ms. Chanda Kochhar, Managing Director & CEO, ICICI Bank conferred with "Padma Bhushan"

Type Industry Founded Headquarters Key people Operating income Profit AUM Employees Share price as on 19th Sep 2011

Public company Banking 1994 Mumbai, (Maharashtra), India Mr. K.V. Kamath (chairman) 259.7 billion (US$5.79 billion)(2011) 86.1 billion (US$1.92 billion)(2011) 4,062 billion (US$90.58 billion)(2011) 56,959 (2011) 859.65

PROJECT DETAIL: R i s k i s a n i m p o r t a n t c o n c e p t i n f i n a n c i a l analysis, especially in terms of how it affects security prices and rates of return. Investment risk is associated with the probability of low or negative future returns. With most investments, an individual or business
spends money today with the expectation of earning even more money in the future. The concept of return provides investors with a convenient way of expressing the financial performance of an investment.

Risk
It is the viability of actual return from the expected return associated with a given asset.

Return
Return it is the actual income received plus any change in market price of an asset/investment. In this project we collected the data on monthly closing share price of State Bank of India and ICICI Bank for the past two years. With the help of data we calculate the: Returns as change in the closing share prices. Average return. Standard deviations. Covariance of the share returns of the two companies. Correlation between the returns of the two companies.

The main objectives are to calculating the returns, standard deviations, and variance etc. to help the investors to arrive at a decision of invest in the shares which offer maximum return with minimum risk and also to gain knowledge of the stock market.