banking presentation new

8/9/2019 Banking Presentation New

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Sectoral

Presentationon

BankingPresented Byaideep Bakre


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AgendaGENDA


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Bank: Establishment authorized by a government to:

accept deposits pay interest clear checks

make loans act as an intermediary in financial transactions provide other financial services to its customers.

What is a Bank?


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uled Commercial BanksCoopera

tive Credit InstitutionsAll India

Financial InstitutionsState Fi

nancial InstitutionsOt

her Institutio

Private Sector Banks (22)e

ctor Banks (27) Foreign Banks (31)

RRBs (84)Urban Cooperative Banks (1721)Rural Coope

rative Cre

: , , . . . ,Source Report on trend and progress of banking in India 2008 09 RBI website www rbi org in accessed on,January 12 2010

Structure of Indian Banks


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RBI

Role of Reserve Bank of India


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Scheduled Banks in India constitute those banks which

have been included in the Second Schedule of ReserveBank of India(RBI) Act, 1934. RBI in turn includes onlythose banks in this schedule which satisfy the criterialaid down vide section 42 (6) (a) of the Act.

The banks included in this schedule list should fulfil twoconditions.

The paid capital and collected funds of bankshould not be less than Rs. 5 lakhs.

Any activity of the bank will not adversely affectthe interests of depositors.

Every Scheduled bank enjoys the following facilities.

Such bank becomes eligible for debts/loans onbank rate from the RBI.

Scheduled Banks


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Market Overview


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: Source Report on trend and progress of banking in India , , . . . ,2008 09 RBI website www rbi org in accessed on January

,12 2010

Market Overview


9/23:Source RBI Website

Revenues


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:Source RBI Website

Profit


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:Source RBI Website

( . )Business per employee in Rs Lakhs


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:Source RBI Website

( . )Profit per employee in Rs Lakhs


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: Source Report on trend and progress of banking in India

, , . . . ,2008 09 RBI website www rbi org in accessed on January,12 2010

Gradual Shift


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Key Trends in Banking

d k


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Key Trends in Banking

M d A i i i


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Date of

Merger

Acquirer

Bank

Target Bank Assets of

Target bankas a % ofAcquiringBanksAssets

Number of

Branches ofTarget Bank

Feb 2008 HDFC Bank CenturionBank of

Punjab

20 394

August 2007 CenturionBank ofPunjab

Lord KrishnaBank

11 110

April 2007 ICICI Bank Sangli Bank 0.5 190

March 2007 Indian

OverseasBank

Bharat

OverseasBank

6 102

October2006

IDBI UnitedWesternBank

8 230

September2006

Federal BankGanesh Bankof

Kurundwad

1 32

: ,Source Statistical tables relating to banks of India 1979 2007 6,May 2008

Mergers and Acquisitions

O i i


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Retail Banking

Corporate Banking

Growing MSME Sector

Microfinance

Fierce Competition in Urban Areas

46000 Branches in Rural and SemiUrban Areas

Growing Long Term FundRequirements

Remittance

US$ 45 Billion in 2008: : , ,So urce N R Im arket the po ten tial EY C en ter for B usine ss K no w led ge A pril2 0 0 9

Opportunities


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M t d C dit P li R t


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Bank rate (or Discount rate): It is the rate of interest which a central bankcharges on the loans and advances that it extends to commercial banksand other financial intermediaries.

Repo Rate: Whenever the banks have any shortage of funds they can borrowit from RBI. Repo rate is the rate at which our banks borrow rupees fromRBI. A reduction in the repo rate will help banks to get money at a cheaper

rate. When the repo rate increases borrowing from RBI becomes moreexpensive.

Reverse Repo Rate:The rate at which Reserve Bank of India (RBI) borrowsmoney from banks. Banks are always happy to lend money to RBI sincetheir money are in safe hands with a good interest. An increase in Reverserepo rate can cause the banks to transfer more funds to RBI due to thisattractive interest rates. It can cause the money to be drawn out of the

banking system.Cash reserve Ratio: It is the amount of funds that the banks have to keep

with RBI. If RBI decides to increase the percent of this, the availableamount with the banks comes down. RBI is using this method (increase ofCRR rate), to drain out the excessive money from the banks

Statutory Liquidity Ratio: It is the amount a commercial bank needs to

maintain in the form of cash, or gold or govt. approved securities (Bonds)before providing credit to its customers. SLR rate is determined and

Monetary and Credit Policy Rates

C t V l


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Policy Rates

Bank Rate: 6%

Repo Rate: 5.75%

Reverse Repo Rate: 4.5%

Reserve Ratio

Cash Reserve Ratio: 6%

Statutory Liquidity Ratio: 25%

Current Values

G D ti P d t


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Gross Domestic Product (GDP)- is ameasure of a country's overallofficial economic output. It is the

market value of all final goods andservices officially made within theborders of a country in a year

GDP (Y) is a sum ofConsumption(C), Investment (I), GovernmentSpending (G) and Net Exports (X -M).

Y= C + I + G + (X M)

Gross Domestic Product

GDP G th R t D d


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GDP Growth Rate over a Decade


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