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Capital Structure: Comparative Study of CANARA andICICI Bank
Abstract
The Capital Structure of a company is made up of debt and equity securities that comprise a
firms financing of its assets. Today business organizations use a range of alternatives for
collecting the funds. Small and Big organizations used the way of collecting funds according
to their paying capacity, degree of ris, size of capital, woring system of the business etc. so,
here in this pro!ect report analyse the capital structure of two bans according to its
convenience. Capital Structure is the "atio of long#term sources of finance in the total capital
of the firm includes $%roprietor$s &unds$ and $Borrowed &unds$'%roprietors &unds include
equity capital, preference capital, reserves and surpluses retained earnings and Borrowed
&unds include long#term debts such as loans from financial institutions, debentures etc. (n
this pro!ect, has taen two bans viz. (C(C( and C)*)") for maing comparison of their
debt and equity. By using, the technique of average and percentage. The pro!ect has made the
conclusion about the collection of funds of these bans. +astly, some suggestions have given
which the bans can follow. ence, the research may contribute in providing a new way to
the bans for capital structure decision.
Keywords: -quity /ebts Cost of Capital Cost of /ebts
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Capital Structure: Comparative Study of CANARA andICICI Bank
0. (*T"1/2CT(1*
The term $Capital Structure$ refers to the proportion between the various long#term sources
of finance in the total capital of the firm includes $%roprietor$s &unds$ and $Borrowed
&unds$'%roprietors &unds include equity capital, preference capital, reserves and surpluses
retained earnings and Borrowed &unds include long#term debts such as loans from financial
institutions, debentures etc. 1n the other hand, equity share capital is the most costlier source
of finance 'as return e3pected by equity shareholders is greater, than the interest on
debentures and the dividend on preference shares4 but these are least risy 'as there is no
fi3ed commitment to pay dividend and the return of equity capital4. %reference share capital
lies between debentures and equity. Capital in terms of ris and cost. 5hile choosing the
source of finance a financial manager maes an attempt to ensure that ris as well as cost of
capital also minimum for this purpose he has to answer the following questions6
0. ow much amount should be raised through issue of equity7
8. ow much amount should be raised through issue of preference share capital7
9. ow much amount should be raised through debentures and other long#term debts7
:. 5hat should be the proportions of equity and debt in the capital structure7
;. ow much financial leverage should employ7
The primary factors that influence a company's capital-structure decision are:
1. Business risk:
-3cluding debt, business ris is the basic ris of the company$s operations. The greater the
business ris, the lower the optimal debt ratio.
8. Company's Tax Exposure
/ebt payments are ta3 deductible. )s such, if a company$s ta3 rate is high, using debt as ameans of financing a pro!ect is attractive because the ta3 deductibility of the debt payments
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Capital Structure: Comparative Study of CANARA andICICI Bank
protects some income from ta3es.
9.inancial lexibility6
This is essentially the firm$s ability to raise capital in bad times. (t should come as no surprise
that companies typically have no problem raising capital when sales are growing and
earnings are strong. owever, given a company$s strong cash flow in the good times, raising
capital is not as hard. Companies should mae an effort to be prudent when raising capital in
the good times, not stretching its capabilities too far. The lower a company$s debt level, the
more financial fle3ibility a company has.
:. !ana"ement #tyle:
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Capital Structure: Comparative Study of CANARA andICICI Bank
8. "-S-"C /-S(>*6
8.0 &esearch roblem
The study is to find the different determinant of capital structure in the baning industry as it
affects the whole form of the organization. So it is very important to have a clear idea about
these factors and cost of different sources in the baning industry. So the problem in the study
is to find out effective determinant of capital structure.
(.(. Title of the #tudy
Capital Structure6 Comparative Study of C)*)") and (C(C( Ban
(.). &esearch *esi"n
The research design used is descriptive between capital structure and cost of capital of (C(C(
and C)*)"). The study is descriptive because already a wide literature is present on this
topic.
(.+. ,eed and #i"nificance of the roect
Capital structure decision is one of the strategic decisions taen by the financial management.
Considerable attention is required to decide the mi3 up of various sources of finance. )
!udicious and right capital structure decision reduces the cost of capital and increase the value
of a firm while a wrong decision can adversely affect the value of the firm. )s discussed
earlier, various sources of finance differ in terms of ris and cost. ence, there is utmost need
of designing an appropriate capital structure. Capital structure decisions are of great
significance due to the following reasons6
Capital structure determines the ris assumed by the firm.
Capital structure determines the cost of capital of the firm.
(t affects the fle3ibility and liquidity of the firm.
(t affects the control of owners on the firm.
(.. /becti0es of the #tudy
0. To conduct comparative study regarding to capital structure of C)*)") and (C(C( ban
8. To find out the cost of different financial sources of pro!ect financing.
9. To now the portion of debt and equity in capital structure.
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Capital Structure: Comparative Study of CANARA andICICI Bank
:. To find out the overall cost of capital of C)*)") ? (C(C( Ban
(.. #cope of the study
The area of the Study is two bans C)*)") and (C(C( to mae a comparison between the
Capital Structure. (n fact, the research design is the conceptual structure within which
research conducted. (t constitutes the blue print for the collection, measurement and analysis.
This report is of -3planatory ? analytical in nature. (n e3planatory ? analytical research we
have sufficient data on the concept and research material. Because many researcher have
been done the wor on the concept.
(.2. !ethods of collectin" data
Since the report required studying the theoretical as well as practical aspects of %ro!ect
&inance, the boos have provided in the theoretical aspects of the study. To get the latest
information, (nternet was also used as a medium at various stages. The data for the pro!ect
report has been collected from the secondary sources.
(.3. eriod of the study
The period for the present study covers three years from 8@09 to 8@0;
(.4. &e0ie% of literature
5illiam Sharpe '0A=94 used a better ar. measure in his %h./. thesis. )lthough the measure is
different from ilbert '0A94 studied the impact of size and organizational form of the
commercial ban on its efficiency. Cost and output of the bans were collected for this
purpose. They used 898 commercial bans that loo part in the .&ederal "eserve$s &unctionalCost )nalysis %rogram in 0A=D. Bans were categorized into unit bans, branch bans and
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Capital Structure: Comparative Study of CANARA andICICI Bank
holding company subsidiaries on the basis of their organizational form and the amount of
assets they had. The minimum average cost ')C4 al which ban of lie same size and
organizational form can operate is called as technical efficiency of the ban while the e3cess
)C of the ban over minimum )C represents the operational inefficiency of the ban.
)ly '0AA@4 analysed technical, scale and locative efficiencies in 2.S. baning by using non
parametric frontier approach on a sample of 9.88 independent bans. )ccording to them,
ma!or contributor to the low score of overall efficiency was technical inefficiency in the
baning units as compared to al locative inefficiency.
Berger '0AA94 stated that rapid changes in financial service industries mae it important to
determine the efficiency of financial institutions. Bans play an important role in the financial
marets of the developing countries and it is very important to evaluate whether bans
operate efficiently or not. There are many research studies that try to loo into the efficiency
of bans operating within a country and across the countries. These studies can be
differentiated on the basis of used methodologies, considered variables, type and number of
bans included in the sample.
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Capital Structure: Comparative Study of CANARA andICICI Bank
9. (*/2ST"F %"1&(+-
Bank: -
) ban is a financial intermediary that creates credit by lending money to a borrower, thereby
creating a corresponding deposit on the bans balance sheet. +ending activities can be
performed either directly or indirectly through capital marets. /ue to their importance in the
financial system and influence on national economies, bans are highly regulated in most
countries.
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Capital Structure: Comparative Study of CANARA andICICI Bank
Bank 5ndustry rofile:
(n the present scenario service sector plays an important role in the country. )mong service
sector baning industry is one. Baning is one of the classical economic functions and plays a
vital role in economic development. (ndia has a well#developed baning system.
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Capital Structure: Comparative Study of CANARA andICICI Bank
*ew phase of (ndian Baning system with advent of (ndian &inancial and Baning sector
reforms after 0AA0.
%hase 0
The >eneral Ban of (ndia was set up in the year 0D=. *e3t was come Ban of industan
and Bengal Ban. The -ast (ndia Company established Ban of Bengal '0D@A4. Ban of
Bombay '0D:@4 and Ban of
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Capital Structure: Comparative Study of CANARA andICICI Bank
were nationalized. Second phase of nationalization (ndian Baning Sector "eform was
carried out in 0AD@ with seven more bans. This step brought D@H of the baning segment in
(ndia under >overnment ownership.
The following are the steps taen by the >overnment of (ndia to "egulate Baning
(nstitutions in the Country6
0A:A6 -nactment of Baning "egulation )ct.
0A;;6 *ationalization of State Ban of (ndia.
0A;A6 *ationalization of SB( subsidiaries.
0A=06 (nsurance cover e3tended to deposits.
0A=A6 *ationalization of 0: ma!or bans.
0A06 Creation of credit guarantee corporation.
0A;6 Creation of regional rural bans.
0AD@6 *ationalization of seven bans with deposits over 8@@ crore.
)fter the nationalization of bans, the branches of the public sector ban (ndia rose to
appro3imately D@@H in deposits and advances too a huge !ump by 00,@@@H.
%hase (((
This phase has introduced many more products and facilities in the baning sector in its
reforms measure. (n 0AA0, under the chairmanship of < *arasimham, a committee was set up
by his name which wored for the liberalization of baning practices. The country is flooded
with foreign bans and their )T< stations. -fforts are being put to give a satisfactory service
to customers. %hone baning and net baning is introduced. The entire system became more
convenient and swift. Time is given more importance than money.
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Capital Structure: Comparative Study of CANARA andICICI Bank
+. rofile of 5C5C5 Bank
(C(C( was formed in 0A;; at the initiative of the 5orld Ban, the >overnment of (ndia and
representatives of (ndian industry. The principal ob!ective was to create a development
financial institution for providing medium#term and long#term pro!ect financing to (ndian
businesses. (n the 0AA@s, (C(C( transformed its business from a development financial
institution offering only pro!ect finance to a diversified financial services group offering a
wide variety of products and services, both directly and through a number of subsidiaries and
affiliates lie (C(C( Ban
(C(C( Ban is (ndias largest private sector multinational baning and financial services
company with total assets of "S =:=08A billion 'usI 0@9 billion4 at march 90,8@0; and %rofit
after ta3 "s 000.; billion 'us I 0DD million4 for the year ended march 90, 8@0; (C(C( has a
networ of :@@ branches and 09.:: )T
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Capital Structure: Comparative Study of CANARA andICICI Bank
"evenue 6 "s A@80= crore '2SI09billion4
'8@0;4
%rofit 6 "s 08A:8 Crore '2SI0.A billion4
'8@0;4
Total assets 6 "s D8=@A crore '2SI08@ billion4 '8@0;4
*umber of
-mployees 6 =,D; '8@0;4
5ebsite 6 www.iciciban.com
1b!ectives of (C(C( Ban6#
(C(C( Ban$s >reen initiative is to mae healthy environment in the organisation i.e. to
create intrapersonal sills among the customer and understanding between employees of the
organisation.
Broad ob!ectives of the (C(C( are6
0. To assist in the creation, e3pansion and modernisation of private concerns
8. To encourage the participation of internal and e3ternal capital in the private concerns
9. To encourage private ownership of industrial investment.
:. *ot giving *1C after settlement of loans
;. Tussle with the collection agent " ." >roups, /asnagar, owrah is going on and the
ban is harassing the customers
(C(C( Ban %roducts
-3tra home loans6 Countrys first Kuarantee baced loans # K(C(C( Ban -3tra
ome +oans for retail customers aspiring to purchase their first homes in the affordable
housing segment were introduced in )ugust 8@0;. This allows a borrower to enhance the loan
amount by up to 8@H and also provides the option to e3tend the repayment period up to =
years of age. This initiative is in association with (ndia uarantee Corporation
'(C4. (C is a !oint venture between *ational ousing Ban '*B4, an "B( subsidiary
which regulates ome &inance Companies in (ndia *FS-#listed >en worth &inancial (nc., a
&ortune ;@@ company (nternational &inance Corporation '(&C4 and )sian /evelopment Ban
')/B4
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Capital Structure: Comparative Study of CANARA andICICI Bank
Smart ault6 The ban launched fully automated state#of#the#art locers, KSmart ault which
is available 8:3, including weeends and post baning hours in )ugust 8@0;. The KSmart
ault uses robotic technology to access the locers from the safe vault and enables customers
to conveniently access their locers at any time of their preference, in total privacy, without
any (ntervention of the branch staff, in the comfort of a secure lounge where the locer
automatically comes up to the customer.
Saral +oans 6 (n )ugust 8@0;, (C(C( Ban introduced KSaral#"ural ousing +oan.
)pplicants from rural areas including women borrowers as well as seeers from weaer
sections can now avail home loans at the (C(C( Ban Base "ate 'L(#BaseM4 which is currently
at A.@H. )n eligible borrower can tae up to "s.0; lac under the K(C(C( Ban Saral#"ural
ousing +oan
(C(C( Ban 2nifare Bangalore
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Capital Structure: Comparative Study of CANARA andICICI Bank
(C(C( Ban %ay on Twitter
(C(C( Ban in Ganuary, 8@0; launched baning services on Twitter, christened as $(C(C( Ban
%ay$. This service in (ndia enables (C(C( Ban customers to transfer money to anyone in the
country who has a Twitter account, chec account balance, view last three transactions and
recharge prepaid mobile in a completely secure manner
Contactless Credit and /ebit Cards (C(C( Ban in Ganuary, 8@0; announced the launch of the
countrys first KContactless debit and credit cards, enabling its customers to mae electronic
payments by !ust waving the cards near the merchant terminal in lieu of dipping or swiping
them. These cards are based on the *ear &ield Communication '*&C4 technology, which
provides customers the improved convenience of speed as these cards require significantly
less time than traditional cards to complete a transaction along with enhanced security as they
remain in control of the customer.
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Capital Structure: Comparative Study of CANARA andICICI Bank
%rofile of C)*)") ban
Bac ground and (nception of the Company6#
C)*)") B)*E was founded in 0A@= by Sri, )mmembalSubba"ao%ai. The ban was
initially named as C)*)") Ban indu %ermanent &und. (t blossomed in to a limited
company in 0A0@ and was renamed as C)*)") Ban +td, in 0A=A the ban was
nationalized and thereafter came to be nown as C)*)") Ban. Today C)*)") Ban is
one of the premier Bans in the country with a networ of 8,;D branches spread all over the
country. The Ban has many distinctions to its name. (t was the first Ban to be conferred
&(CC( award for contribution to rural development C)*)") Ban was the first among
Bans to launch networed )T
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Capital Structure: Comparative Study of CANARA andICICI Bank
segments. Baning operations consist of corporate Baning. "etail Baning, personal and
commercial Baning, Cash management services, /eposits and other allied services.
Treasury operations consist of dealing in S+" and *on#S+" securities and
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Capital Structure: Comparative Study of CANARA andICICI Bank
Data analysis:
Capital Structure of CANARA and ICICI Bank:
Capital Structure i' a com(ination of de(t and e)uity* +,e optimal Capital
Structure -,ic, ma.imi/e' t,e value and minimi/e' t,e co't of capital*
Table no0.0 Capital Structure of C)*)") and (C(C( Ban
S
o u
r c
e6
)nnual reports of C)*)") and (C(C( Ban
:.8. Comparison of -quity Capital
The funds for a business can rise by selling stoc or by retaining earnings. -quity capital is
owners capital and most costly source of finance but least risy then the preference and debt
source of finance.
Page 1#
Ban C)*)") (C(C(
Fear source -quity /ebt -quity /ebt
8@09 ::9@ [email protected] 00;9=.9= 0:;9:0:.A;
8@0: :=08.;A [email protected]; 00;;@.:: 0;:;A@.;9
8@0; :;0.A 8;=8D.8@ 00;A=.=@ 08:09.:A
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Capital Structure: Comparative Study of CANARA andICICI Bank
1 2 3&
2&&&
&&&
"&&&
$&&&
1&&&&
12&&&
canara
icici
Chart no :.0 comparison of equity capital
(nterpretation6
(t is clear from the study that equity used by (C(C( is more than C)*)"). The equity used
by (C(C( and C)*)") at increasing rate. -quity capital is owners capital it means a good
indicator for health of an organization.
:.9 Comparison of /ebt
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Capital Structure: Comparative Study of CANARA andICICI Bank
/ebt are least costly source of finance because the rate of interest is lower than the rate of
dividend and interest paid on debenture is deducted from the profit while calculating the ta3es
but these are most risy
1 2 3
&
2&&&&&
&&&&&
"&&&&&
$&&&&&
1&&&&&&
12&&&&&
1&&&&&
1"&&&&&
1$&&&&&
canara icici
Chart no :.8 Comparison of /ebt
(nterpretation
(t is clear from the study that debt used by (C(C( is more than C)*)"). The debt used by
(C(C( at increasing rate. )nd debt used by C)*)") increased in 8@0:. &or last year it is
decreasing.
:.:. /ebt -quity "atio6
(t is a ratio of borrowed capital to the owned capital. This ratio measures the relative
claims of outsiders against the firms assets.
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Capital Structure: Comparative Study of CANARA andICICI Bank
/ebt#-quity "atio Q /ebt R -quity
Fear /ebt -quity /ebt -quity ratio
8@09 [email protected] R ::9@ Q :;.D
8@0: [email protected]; R :=08.;A Q ;A.8@
8@0; 8;=8D.8@ R :;0.A Q ;:.80
)verage Q ':;.D;A.8@;:.804 O 9 Q;9.@=
(C(C( B)*E
Fear /ebt -quity /ebt equity ratio
8@09 0:;9:0:.A; R 00;9=.9= Q 08;.AD
8@0: 0;:;A@.;9 R 00;;@.:: Q 099.AD
8@0; 08:09.:A R 00;A=.=@ Q 0:D.=D
)verage Q '08;.AD099.AD0:D.;D4O9 Q09=.0D
:.; Comparisons of /ebt equity ratios of (C(C( and C)*)")
Table no :.8 /ebt -quity "atios
Source6 )nnual reports of (C(C( and C)*)") ban
Page 2&
Ban C)*)") (C(C(
Fear /ebt -quity "atio /ebt equity ratio
8@09 :;.D 08;.AD
8@0: ;A.8 099.AD
8@0; ;:.80 0:D.=
average ;9.@= 09=.0D
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Capital Structure: Comparative Study of CANARA andICICI Bank
1 2 3
&
2&
&
"&
$&
1&&
12&
1&
1"&
CANARA 0e(t )uity
Ratio
ICICI 0e(t e)uity ratio
Chart no :.9 debt equity ratios of C)*)") and (C(C( ban
0 8@09
8 8@0:
9 8@0;
(nterpretation6
(t is clear from the graph that the debt equity ratio of (C(C( is more than C)*)"). (f the
debt equity "atio is more than it shows rather risy financial position from the long term
point of view.as it indicate that more and more fund invested in the business provided by the
long term lenders. The high debt equity ratio is a dangerous signal for the long term landers.
:.= Cost of Capital
Cost of capital is the minimum required rate of earning or the cut off rate of Capital
e3penditures.
&ormulae6
EeQ /%S R
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Capital Structure: Comparative Study of CANARA andICICI Bank
Ed Q ( R*%0@@
( Q (nterest
*% Q *et %roceed
Cost of /ebt of (C(C( B)*E
8@09 EdQ 8=0ADA.:9R [email protected] 0@@ Q 08A.0=
8@0: d Q 9@=@;;.9: [email protected]; 0@@ Q008.@=
8@0; d Q 9:0990.89 R08:09.:A 0@@ Q 0A.A
Cost of /ebt of C)*)") Ban
8@09 EdQ [email protected]: R 0;:;A@.;9 0@@ Q 0=.A9
8@0: d Q 8@8;.DD R0:;9:0:.A; 0@@ Q 0A.@=
8@0; d Q 9@@;0;.8AR08:09.;@ 0@@ Q 0.:8
Cost of -quity of (C(C( Ban
Ee Q /%S R maret price 0@@
Fear
8@09 Ee Q 8@.@@R8@A 0@@ QA.;=
8@0: Ee Q 89.@@ R 8:D 0@@ QA.8
8@0; Ee Q ;.@@ R 90; 0@@ Q 0.;
C)*)") Ban
8@09 Ee Q 09.@@ R 9D:.:; 0@@ Q 9.9D
8@0: Ee Q 00.@@ R 8=A.9 0@@Q:.@D
8@0; Ee Q 0@.;@ R 9=.A: 0@@Q8.D;
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Capital Structure: Comparative Study of CANARA andICICI Bank
+. Comparison of Cost of Capital
Cost of capital is minimum rate of return that firm must earn on the equity financed position
of an investment pro!ect in order to leave unchanged the maret price of the share.
Table no :.9 Cost of capital
Source6 annual reports of (C(C( and C)*)") Ban
1 2 3
&
1
2
3
!
"
#
$
%
1&
CANARA Co't of e)uityICICI Co't of e)uity
Chart no :.: Comparison of cost of equity
Page 23
Ban C)*)") (C(C(
year source Cost of equity cost of debt Cost of equity cost of debt8@09 9.9D 0=.A9 A.;= 08A.0=
8@0: :.@D 0A.@= A.8 008.@=
8@0; 8.D; 0.:8 .A 0A.A
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Capital Structure: Comparative Study of CANARA andICICI Bank
5nterpretation
(t is clear from the study that Cost of equity of (C(C( is more than C)*)"). 1n the basis of
study it is clear that cost of debt of C)*)") is more than (C(C( and cost of equity of (C(C(
is more than C)*)") and cost of debt and cost of equity is decreasing in C)*)") and
cost of debt and cost of equity is also decreasing in (C(C(.
+.2 Cost of *ebt:
The firm borrows the fund from the financial institute or public for a specific period of time
at a specific rate of interest.
1 2 3&
2&
&
"&
$&
1&&
12&
1&
CANARA co't of
de(t
ICICI co't of de(t
Chart no +. Comparison of cost of debt
5nterpretation
&rom the above table, it is clear that cost of debt of (C(C( is more than C)*)").
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Capital Structure: Comparative Study of CANARA andICICI Bank
:.D 1verall Cost of Capital of (C(C( B)*E
Table no :.: 1verall Cost of Capital of (C(C( ban
Source6 )nnual report of (C(C( ban
:.A 1verall Cost of Capital of C)*)") Ban
F-)" Source Boo value weight cost H age weighted )verage
cost
8@09 -quity 00;9=.9= @.@@9;9 9.9D @.@8:D
/ebt 0:;9:0.A; @.A8=: 0=.A9 0;.=D
Total 0;;;=D;0.9 0;.
8@0: -quity 00;;@.:: @.@@:@D :.@D @.@9@8
/ebt 0;:;A@.;9 @.AA8; 0A.@= 0D.A0
Total 0;;A0:@.A 0D.A:
8@0; -quity 00;A=.= @.@@==D 8.D; @.@0A
/ebt 08:09.:A @.AA99 0.:8 0.9
Total 09;@.@A 0.90
Table no :.; 1verall Cost of Capital of C)*)") Ban
Source6 )nnual report of C)*)") Ban
Page 2!
Fear Source Boo value weight Cost H age 5eighted
)verage cost
8@09 -quity ::9@ @.@809 A.;= @.8@:9
/ebt [email protected] @.AD= 08A.0= 08=.9A
Total 8@8=9.9 08=.;A
8@0: -quity :=08.;A @.@0== A.8 @.0;9D
/ebt [email protected]; @.AD99 008.@= [email protected]
Total [email protected]: [email protected]:
8@0; -quity :;0.A @.@0D00 .A @.0:9
/ebt 8;=8D.8 @.AD0D 0A.A 0A.:8
Total [email protected] 0A.;=
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Capital Structure: Comparative Study of CANARA andICICI Bank
1 2 3
&
2&
&
"&
$&
1&&
12&
1&
CANARA overall co't
of capital
ICICI overall co't
capital
Chart no :.; 1verall Cost of Capital of C)*)") B)*E
5nterpretation
(t is clear from the study that overall cost of capital of (C(C( is decreasing per year, cost of
capital is decreasing per year and overall cost of capital of C)*)") is less than (C(C(.
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Capital Structure: Comparative Study of CANARA andICICI Bank
indin"s and Conclusions:
The cost of capital of (C(C( is decreasing per year and cost of capital of C)*)") is
increasing.
1n the basis of study conclude that (C(C( is better than C)*)") because it continue to
focus decreasing the cost of capital as compared to C)*)")
U (C(C( have the better capital structure than C)*)").
U Cost of debt of (C(C( is more than C)*)").
U Cost of equity of (C(C( is more than C)*)").
U Cost of equity of (C(C( ? C)*)") is decreasing per year.
U Cost of debt of (C(C( is decreasing ? C)*)") is increasing
U 1verall cost of capital of (C(C( is decreasing per year.
U 1verall cost of capital of C)*)") is increasing per year.
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Capital Structure: Comparative Study of CANARA andICICI Bank
&ecommendation:-
U %rivate ban should improve their capital structure.
U %ublic sector ban should try to reduce their overall cost of capital
/eterminant of capital structure should be considered while forming capital structure.
Ban should have liquidity in their capital structure
Timely review of their capital structure is necessary in baning industry
Timely review of their cost of capital of different sources 'debt, equity4 is necessary in
baning industry
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Capital Structure: Comparative Study of CANARA andICICI Bank
B5B95/$&A;
0. %rasanna Chandra, ). &inancial
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