State Bank of India vs Icici

? enunciate BANK OF INDIA. SBI Debt-Equity ratio 12. 43 (march12) A high debt/fairness ratio generally means that a conjunction has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense. If a lot ofdebt isused to finance increasedoperations (high debt to equity), the company could potentially generate more earningsthan it would have without thisoutside financing. If this were to increase earnings by a greater amount than the debt cost (interest), then the shareholders benefit asmoreearnings are being spread among the same amount of shareholders.However, the cost of this debt financing mayoutweigh the return thatthe companygenerates on the debt through investment and business activities and become too much for the company to handle. This can tow to bank buildingruptcy, which would leave shareholders with nothing. The debt/equity ratio also depends on the industryin which the company operates. For ex ample, capital-intensive industries such as automanufacturing tend to have a debt/equity ratio above 2, while personal computer companies have a debt/equity of under 0. 5. ICICI BANK LTD. ?ICICI Debt Equity ratio 4. 23 (march12) Which is the better bank? As we said earlier, SBIs government backing makes it the more safer entity. ICICI by itself does not have the reputation of good quality assets. But it is certainly striving to strive the same. Both in terms of margins and returns, SBI has had an edge and will continue to have it in the medium term. Having said that investors must carefully weigh the future prospects of both(prenominal) the entities vis-a-vis their respective valuations before taking their pick. DEBT INSTRUMENTS IN INDIA.Debt Instruments are obligations of issuer of such instrument as regards certain future cash flow representing Interest & Principal, which the issuer would have to the legal owner of the Instrument. They can also be said to be tradable form of lo ans. Debt Instruments are of various types like Bonds, Debentures, Commercial Papers, Certificates of Deposit, government activity Securities (G secs) etc. The administration Securities (G-Secs) market is the oldest and the largest component of the Indian debt market in terms of market capitalization, trading volumes and outstanding securities.The G-Secs market plays a vital role in the Indian economy as it suffers the benchmark for determining the level of interest rates in the country through the yields on the government securities which are treated as the risk-free rate of return in any economy. The reserve Bank of India has permitted Primary Dealers, Banks and Financial Institutions in India to do transactions in debt instruments among themselves or with non-bank clients. Debt instruments provide fixed return declared as coupon rate.Retail investors would have a natural preference for fixed income returns and especially so in the current daub of increasing volatility in the financial markets. Now, retail investors are also showing keen interest in Debt Instruments particularly in the Central Government Securities (G-secs). For an individual investor G-secs are one of the best investment options as there is zero default risk and lower volatility in case of G-secs. SBI DFHI is a major player in G-Secs market and widely deals in other debt instruments also. STATE BANK OF INDIA ) GOVERNMENT SECURITIES (dates government securities-long term, treasury bills are short term) SBI DFHI Ltd. is a leading Primary Dealer in Government Securities. SBI DFHI Ltd gives investors an opportunity to bargain for G-Sec / SDLs / T-Bills at primary market auctions of RBI through its SBI DFHI Invest scheme (details in stock(predicate) on website ). Investors may also invest in high yielding Government Securities through SBI DFHI Trade where buy and sell price and a buy and sell facility for select liquid scrips in the secondary markets is offered. ) TREASURY BILLS SBI DFHI L td, is an active player in the both the primary and the secondary market for exchequer Bills with an impressive total outr. ight turnover of Rs. 7,892 crores. 3) Money market instruments Commercial paper, Certificate of Deposit 4) non-slr bonds like public sector undertaking (PSU bonds) or corporate bonds 5) Debentures ICICI 1) Bonds (regular income, tax income saving, deep discount bonds etc. ) 2) Unsecured Debentures 3) Commerical Papers 4) certificate of deposit LISTINGS STATE BANK OF INDIA NSE . CODE SBIN BSE CODE 500112 LSE CODE SBID ICICI NSEICICIBANK,BSE532174, NYSEIBN STATE BANK OF INDIA The declaration and payment of dividends is recommended by the Banks Central Board of Directors and approved by its shareholders. The Banks decision to declare a dividend depends on a number of factors including but not limited to its profits, capital requirements and overall financial condition. The Central Board may also pay lag dividends from time to time. All dividend payments are mad e in cash to the shareholders of the Bank. The Banks dividend policy is to declare dividends only at the conclusion of the fiscal year. ? ICICI ?