State Bank of India vs Icici

? bow swear OF INDIA. SBI Debt-Equity ratio 12. 43 (march12) A extravagantly debt/equity ratio generally means that a corporation has been offensive in financing its growth with debt. This can result in volatilisable net 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 sh beholders advance asmoreearnings are being spread among the identical amount of shareholders.However, the cost of this debt financing mayoutweigh the refund thatthe companygenerates on the debt by means of assignment and business activities and become too such(prenominal) for the company to handle. This can lead to bankruptcy, which would leave shareholders with nothing. The debt/equity ratio in standardised manner depends on the in dustryin which the company operates. For example, capital-intensive industries such as carmanufacturing tend to have a debt/equity ratio above 2, tour 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 utter earlier, SBIs government backing makes it the more safer entity. ICICI by itself does not have the constitution of good quality assets. But it is certainly striving to achieve the same. both(prenominal) in terms of margins and applys, SBI has had an edge and will continue to have it in the medium term. Having tell that investors must carefully weigh the future prospects of both 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 pertain & Principal, which the issuer would pay to the legal owner of the Instrument. They can similarly be said to be tradable form of loans. Debt Instruments are of various types like Bonds, Debentures, Commercial Papers, Certificates of Deposit, disposal Securities (G secs) etc. The governance 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 live role in the Indian economy as it provides the benchmark for ascertain 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 obtaind as coupon rate.Retail investors would have a natural penchant for fixed income returns and especially so in the current si tuation of change magnitude volatility in the financial markets. Now, retail investors are also display keen interest in Debt Instruments particularly in the important governing body Securities (G-secs). For an individual investor G-secs are one of the best investment options as in that location is zero default risk and lower volatility in effort of G-secs. SBI DFHI is a major player in G-Secs market and widely deals in other debt instruments also. fix 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 misdirect G-Sec / SDLs / T-Bills at primary market auctions of RBI through its SBI DFHI Invest scheme (details available 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 distinguish liquid scrips i n the secondary markets is offered. ) TREASURY BILLS SBI DFHI Ltd, is an active player in the both the primary and the secondary market for Treasury Bills with an impressive count 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 saving, dense 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 limit to its profits, capital requirements and overall financial condition. The Central Board may also pay interi m dividends from time to time. All dividend payments are made 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 ?