market analysis for banking sector
DESCRIPTION
MARKET ANALYSIS FOR BANKING SECTORTRANSCRIPT
VIT BUSINESS SCHOOL
MARKET ANALYSIS OF INTERNATIONAL
BANKING SECTOR
ARYA S.NAIR
NAVEENRAJ.R
CONTENTS
VIT BUSINESS SCHOOL……………………………………………………………………………………3
INTRODUCTION TO BANKING SECTOR…………………………………………………………….4
MARKET SHARE ANALYSIS……………………………………………………………………………..4
LABOUR CAPITAL RATIO…………………………………………………………………………………5
COMPANIES ANALYSIS…………………………………………………………………………………….7
CONCULSION…………………………………………………………………………………………………..8
VIT BUSINESS SCHOOL
VIT University was established in 1984 by well-known educationalist and former
parliamentarian, Dr. G. Viswanathan, Founder and Chancellor. Dr. V. Raju, Former Professor
of State University of New York USA, currently the Vice Chancellor, Dr. Anand,A. Samuel, Pro-
Vice Chancellor. Chennai Campus is in Vandalur-KelambakkamRoad.VITUniversity has more than
17 Bachelor’s and 32 Masters’ programmes,29000(including 1000 foreign students from 44
countries) and 4000 faculty members
Accreditation:
The National Assessment and Accreditation Council (NAAC) of the University Grants
Commission (UGC) has accredited the university with a 'A'.
The Institution of Engineering and Technology (IET), and the Energy Institute, UK have
audited the teaching-learning processes at VIT and accredited the programmes in 2004,
withthe highest validity of five years
The Accreditation Board for Engineering and Technology (ABET) of the USA accredited the
Civil, Mech, CSE, biomedical, ECE, EEE programmes.
VIT Business School, under the aegis VIT University has created a niche for itself as an
institution promoting excellence in management education and research with Dr. M J Xavier as
its Executive Director.
Sincere Thanks to Dr. James Daniel Paul for having given us this wonderful opportunity to do a
complete study on market for the companies of our own interest.
INTRODUCTION TO BANKING SECTOR
A bank is a financiaL intermediary that accepts deposits and channels those deposits
into lending activities, either directly by loaning or indirectly through capital markets. A
bank links customers that have capital deficits and customers with capital surpluses.
In most common law jurisdictions there is a Bills of Exchange Act that codifies the law in
relation to negotiable instruments, including cheques, and this Act contains a statutory
definition of the term banker: banker includes a body of persons, whether incorporated or
not, who carry on the business of banking' (Section 2, Interpretation). Although this
definition seems circular, it is actually functional, because it ensures that the legal basis for
bank transactions such as cheques does not depend on how the bank is structured or
regulated.
SERVICES OFFERED
WEALTH MANAGEMENT
CONSUMER BANKING
ENRICH BANKING
CORPORATE FINANCIAL SERVICES
TRADE SERVICE
INVESTMENT BANKING
MARKET SHARE ANALYSIS
Market share is the percentage of a market accounted for by a specific entity. Marketers
need to be able to translate and incorporate sales targets into market share because this
will demonstrate whether forecasts are to be attained by growing with the market or by
capturing share from competitors. Market share is closely monitored for signs of change in
the competitive landscape, and it frequently drives strategic or tactical action. Increasing
Market share is one of the most important objectives of a business houses.
Market share is said to be a key indicator of market competitiveness
The following pie chart depicts the market share of top 10 banks in the world
Labor-capital Ratio
Labor to capital Ratio brings us the relationship between Labor in the organization and the
capital invested by the proprietor to evaluate the efficiency of the firm.
It may be obtained by using the following formula and that is
Labor-capital ratio = Capital/ No of workers.
Capital employed must be taken into consideration only the paid up share capital of the
company and not the authorized capital. No of Employees for companies all over the world
is found out and divided with Total capital.
105.66
101.5
123.2
88.66
94.06
79.6
54.96
148.66
65.27
61.09
jp morgan chase
bank of america
BNP Paribas
wells fargo
Citi group
HSBC
Barclays
Icbc
Credit agricole
Deutsche bank
WHERE
1.ICBC BANK,CHINA
2.HSBC HOLDING
3.JPMORGAN CHASE
4.BNP PARIBAS
5.BARCLAYS
6.CITI GROUP
7.BANK OF AMERICA
8.WELLS FARGO
9.DEUTSCHE BANK
10.CREDIT AGRICOLE
0 0.1 0.2 0.3 0.4 0.5
1
2
3
4
5
6
7
8
9
10
11
labour capital ratio
labour turn over ratio
Company Analysis
Fundamental analysis seeks to determine the intrinsic value of a company's stock. But
since qualitative factors, by definition, represent aspects of a company's business that are
difficult or impossible to quantify, incorporating that kind of information into a pricing
evaluation can be quite difficult.
Another business consideration for investors is competitive advantage. A company's long-
term success is driven largely by its ability to maintain a competitive advantage - and keep
it.
competitive advantage gained by:
A unique competitive position
Clear tradeoffs and choices vis-à-vis competitors
Activities tailored to the company's strategy
A high degree of fit across activities (it is the activity system, not the parts, that ensure
sustainability)
A high degree of operational effectiveness
REVENUE BY BANKS
After the big research we came to conclusion that most of the revenue from
NET INTEREST
CONCLUSION
Banks are quite important to the economy and are involved in such economic activities as
issuing money, settling payments, credit intermediation, maturity transformation and
money creation in the form of fractional reserve banking
To make money, banks use deposits and whole sale deposits, share equity and fees and
interest from debt, loans and consumer lending, such as credit cards and bank fees.
Reference:
Dr. P. James Daniel Paul,
Professor,
VITBS, Chennai,
Telephone: +91 44 3993 1040
Mobile : +91 98402 94590
