banking sector by iimp c1(08-10)

8/14/2019 Banking Sector by IIMP C1(08-10)

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BankingSector

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IIMP

PRESENTATION ON


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INTRODUCTIONWhat is Bank

A bank is a financial institute whose primaryactivity is to act as a payment agent forcustomers to borrow and lend.

What is Banking

Indian Definition of Banking

By banking regulation act 1949.

"Banking" means the accepting, for the purpose oflending or investment, of deposits of money from

the public, repayable on demand or otherwise,and withdraw able by cheque, drafts, order orotherwise.

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History of BankingThe banking system was prevailing at the

time of Babilon culture, from since 1171 year The word BANK has evolved from word

BANCO

It is seen that since 1646 the word Bank has

been used in the articles.

Indian History:

Banking in India is said to be developed

during the British era. In the first half of the19th century.

Bank of Bengal in 1809 , Rs 50 lakhs as capital

The Bank of Bombay in 1840, Shares capital

Rs 5225000.08/16/09 4 IIMP


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But in the course of time these three bankswere amalgamated to a new bank called

Imperial Bank of India on 27th Jan 1921 andlater it was taken over by the State Bank ofIndia in 1955.

Allahabad Bank was the first fully Indian

owned bank. The Reserve Bank of India wasestablished in 1935 followed by other bankslike Punjab National Bank, Bank of India,Canada Bank and Indian Bank.

In 1969, 14 major banks were nationalized andin 1980, 6 major private sector banks weretaken over by the government.

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Types of BanksCentral Bank

The Reserve Bank of India is the central Bank that isfully owned by the Government.

Public Sector Banks

State Bank of India and its associate banks called theState Bank Group, 20 nationalized banks, Regional

rural banks mainly sponsored by public sector banks.Private Sector BanksCo-operative Sector

The co-operative sector is very much useful for

rural people. The co-operative banking sector isdivided into the following categories.State co-operative BanksCentral co-operative banksPrimary Agriculture Credit Societies

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RBI The Reserve Bank of India was established on

April 1, 1935 in accordance with the provisions ofthe Reserve Bank of India Act, 1934. The Central Office of the Reserve Bank was

initially established in Calcutta but waspermanently moved to Mumbai in 1937.

The Reserve Bank is fully owned by theGovernment of India.Preamble:

The Preamble of the Reserve Bank of Indiadescribes the basic functions of the Reserve Bank

as:"...to regulate the issue of Bank Notes and keeping

of reserves with a view to securing monetarystability in India and generally to operate thecurrency and credit system of the country to its

advantage."08/16/09 8 IIMP


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Banking related termsInflation

CRR rate

REPO rate

Bank rate

Call rate

Slr rate

Plr rate

Current Rates:

Bank Rate: 6%

Repo Rate: 9%

Reverse Repo rate: 6%

CRR: 8.75%

SLR: 25%

PLR: 12.75%-13.25%

Saving Bank Rate: 3.5%

Deposit Rate: 7.5%-9.6%

Call rate: 7%-9.%

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E-Banking


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DUTIES OF THE BANK

FUNDAMENTAL DUTIES

FUNDAMENTAL POWERS

ADVISORY DUTIES

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Indian banking sector Analysis

The nationalized banks have more branchesthan any other types of banks in India.

Total number of branches 33,627 in India, ason March 2005.

Investments of scheduled commercial banks(SCBs) also saw an increase from Rs 8, 04,199 crore in March 2005 to Rs 8, 43,081 crorein the same month of 2006.

India's retail-banking assets are expected togrow at the rate of 18% a year over the nextfour years (2006-2010).-Retail loan to drive the growth of retail

banking in future.08/16/09 14 IIMP


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JOB OPPORTUNITIES IN BANKING SECTOR

CLERICAL

MANAGERIAL

Duties of workers in specialized areas are :

Personnel - recruiting and training staff, planning career

development of trainees, advising students about careers inbanking;

Marketing - designing campaigns to promote new andexisting services, researching customers' banking habits tofind new

opportunities for the bank;

Operations - processing transactions and loans, researchingnew technology or different working methods to increasethe bank's efficiency;Electronic Services- writing a new section on the bank'swebsite, developing interactive digital TV banking services;Card Services- authorizing and issuing cards, managingtransactions;

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IDBI BANKVision:

To the trusted partner in progress by leveragingquality human capital and setting global standards ofexcellence to build the most valued financialconglomerate.

our Mission

To continually strive to enhance customer experiencethrough innovative product offerings, dedicatedrelationship management and superior service deliverywhile striving to interact with our customers in themost convenient and cost effective manner.

To be transparent in the way we deal with ourcustomers and to act with integrity.

To invest in and build quality human capital in order toachieve our mission.


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History (down memory laneevolution andchanging role )

1964-On July 1st, IDBI was established by an act ofparliament

1976-100% ownership was transferred from RBI to the

government of India2005-On April 2nd, IBDI merged its hitherto banking

subsidiary (IDBI bank ltd) with itself. However, theappointed date of merger as fixed as October 1, 2004.

Post the October 2004 merger of erstwhile IDBI bank

with its present company (IDBI LTD) IDBI is now auniversal bank.

2006- IDBI announce it foray into life insurance businessjointly with federal bank and forties insurance internationalN.V(fortis).


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SWOT ANALYSIS

STRENGTHS It has a diversified

customer profile IDBIS strong market

position as one of Indiasleading financial institution,with consistent profitabilityand sound capitalization.

competent human capitalto power its aggressive

growth plans . It has exerted adeterministic influenced onthe development of modernIndia by moving beyond therealm of mere financialintermediation

WEAKNESS

Average quarterly balanceRs.2500/-

Poor level awareness aboutthe bank among masses

Not proved search optionfor online services.


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Swot Analysis

ContOPPORTUNITIES:

A major chunk of semiurban and rural India isuncovered

Indias saving rate i.e.33% of GDP is one of thehighest

THREATS:

Threats from existingplayers.

Threats from foreignbanks and private Indianbanks


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SUBSIDIARIES:IDBI CAPITAL

IDBI HOMESIDBI INTECH

IDBI GILTS


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IDBI STARATEGIES

Short To Medium-TermStrategy

Optimize mix of corporate andretail banking.

Leverage core competency inproject financing.

Emphasize landing to agriculture,micro finance and SMEs.

Focus on fee based income toboost profitability.

Increase the relative share of lowcost deposits (CASA) in totaldeposit.

Foray into associated businessdomains like life insurance, mutualfunds, asset management andprivate equity areas.

Leverage technology and planningfor enhancing groups synergy.

Enhance and implemententerprise-wide risk management

systems. Reorient human resources through

Long-Term Strategy

Pursue organic growthopportunities.

Target a stronger domestic

network apart from arespectable presence abroad.

Explore inorganic growththrough commercially gainfulbank acquisitions andmergers.

Position the bank as the Bank

of Choice.


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CSR (Corporate Social Responsibilities)

Details of the projects andimplementing partners are as follow:

Prerna

Child Survival India (CSI)

New Opportunity for Women (NOW)

Nav Shrishti

8PS OF MARKETING


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8PS OF MARKETING

Place The detailed study of IDBI is shown below:

No of branches: 501

Metro 173 Urban 176

Semi urban 99

Rural 53

No of ATMs: 851

Product & servicesPromotion

Price

PeoplePhysical evidence

Public relation

profit


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HR CHALLENGES IN IDBI

MUMBAI: The proposed merger of IDBI and

IDBI Bank could throw up challenges atseveral stages.

The pooling and merging of the humanresourses of the two entities could be one of

the biggest challenges, said an official at aprivate sector bank.

"Retaining the cream of IDBI Bank personnelunder the new fold will be a big HRchallenge," the official said. "The workcultures of the two entities are totally differentand could result in a clash."

"It remains to be seen if the IDBI personnelcan take a 180-degree turn in their business

approach," a banking analyst with a local


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COMPARATIVE STUDY OF BANKS

REFERENCES:www.Google.com(search engine)www.RBI.org.inwww.ecofin.co.inwww.idbi.com

BOOKS:

Marketing management by: Philip kotler


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Logo MeaningOur logo captures the essence of what our banks stands for.

The teal green backdrop in the logo coveys the immense

prosperity our institution has help bring to modern India,while the straight standing erect typeface reflects thesteadfastness and solidity of our organization. The orangeflower is a symbol of dynamism and individual well-being.The blob atop the power conveys that each and every stakeholder is the focal point of our strategy pursuits while the

circle of space around the orange flower suggests that nomatter how big it grows, there will always be scope for it tofurther expands its reach(inclusive banking) and bouquet ofproducts and services(universal banking). Overall, the newlogo reflects the assuring face of a bank that is committed

to help every big-thinking Indian think even bigger, which


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SUGGESTIONS More branches across different states of India

especially in rural areas are required to beopened to meet the requirement of ruralIndia.

ATM has become very attractive for

customer, but IDBI has very small ATMnetwork so need to set up more ATM networks

IDBI need to adopt aggressive marketingstrategies which include promotion as productin electronic media, print media and throughother forms of advertisements.

Door step banking should also be given a

chance.


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banking sector by iimp c1(08-10)

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