banking sector
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TRANSCRIPT
Banking SectorThe Promising future
Presented by:
Zeeshan ShaikhSurya RanaPrashantVermaParvaz ShaikhTahaa Lokhandwala
The word bank was borrowed from Middle French word banque , bank "bench, counter".
A bank is a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital markets.
Banking is generally a highly regulated industry, and government restrictions on financial activities by banks have varied over time and location.
Banking
Commercial banks :
Public sector
Private sector
Foreign Banks
Cooperative Institutions :
Urban cooperative banks
State cooperative banks
Central cooperative banks
The Indian financial system comprises the followinginstitutions:
Financial institutions :
All-India Financial Institutions (AIFIs)
State Financial Corporations (SFCs)
State Industrial Development Corporations (SIDCs)
Nonbanking Financial Companies (NBFCs)
Capital Market Intermediaries
The central banking system of India
Controls the monetary policy of the rupee as well as currency reserves
The main monetary authority of the country
The manager of exchange control
The bank issues and exchanges or destroys currency and coins not fit for circulation
Reserve Bank of India
1. State Bank of India Group:
1. Largest state-owned banking and financial services company in India, by almost every parameter - revenues, profits, assets, market capitalization
2. 131 Foreign offices in 32 countries across the globe
3. 21000 ATMs and SBI group(including associate banks) has about 45000 no of ATMs
4. 26500 branches, inclusive of branches that belong to its Associate banks
5. 29th most reputed company in the world according to Forbes
The public sector commercial banks are divided into three categories:
2. Nationalized banks (19 banks):
In 1969, the Government arranged the nationalization of 14 scheduled
commercial banks in order to expand the branch network, followed by six more in 1980
In contrast to the state bank group, nationalized banks are centrally
Governed, i.e. by their respective head offices
List Of Nationalized Banks:•Bank of Baroda •Bank of India
•Bank of Maharashtra •Canara Bank
•Central Bank of India •Dena Bank
•Indian Bank Union Bank of India
•UCO Bank
•Vijaya Bank
3. Regional Rural Banks (RRBs):
Regional Rural Banks (RRBs): In 1975, RRBs were set up by RBI in partnership with individual states to provide low-cost financing and credit facilities to the rural masses
As on 2006, there were 133 RRBs covering 525 districts with a network of 14,494 branches
RRBs were originally conceived as low cost institutions having a rural ethos, local feel and pro poor focus
Private Banks in India
Private banking is a term for banking and other financial services provided by banks to private individuals In the early 1990 government embarked on a policy of liberalization, licensing a small number of private banks
These came to be known as New Generation tech-savvy banks, and includedGlobal Trust Bank
Thus, public sector banks revived to take up leading role in the banking structure
In 1980, the GOI nationalized 6 more commercial banks, with control over 91% of banking business of India
Liberalization along with the rapid growth in the economy of India, revitalized the banking sector in India
Then Housing Development Finance principle' approval from the HDFC became the first to receive an invite from (RBI) to set up a bank in the private sector
Have made the banking services more efficient and customer friendly
For potential customers, the Bank provides a wide range of commercial and transactional banking services, including:
Target market
Blue chip companies.
Small & mid-sized corporate
Agri-based businesses
Services Provided by Private Banks:
Working capital finance
Trade services
Transactional services
Cash management
Major private banks in India are:
Foreign Banks•Foreign Banks are not new phenomena in Indian bank in system. Standard Charted Bank started its operation in 1858 and Citi Bank opened its branch in India in 1902
•However, globalization and economic policies implemented in late 1980s encouraged many international banks to open their shops here
•At almost all the international banks are operating in India
•Foreign banks in India have brought the latest technology and new banking practices.
•This helped the domestic banks to improve their performance and provide better customer service
•And it has led to Employment Generation in India
Present there are 29 foreign banks are operating in India and some of the important foreign banks in India are:
3-6-3 Rule – An unofficial banking rule !!
3-6-3 is an “UNOFFICIAL RULE” under which the banking industry once operated and which alludes to it being noncompetitive and simplistic.
Banking industry of the 1950s, 1960s, and 1970s is often described as operating according to a 3-6-3 rule .The rule basically explains:How bankers would give 3% interest on depositors’ accountsLend the depositors money at 6% interest and Then be playing golf at 3pm
This alludes to how a bank’s only form of business is lending out money at a higher rate than what it is paying out to its depositors.
.
Rule of 3
•Jagdish Seth & Rajendra Sisodia•The magic number 3•70-90% of market share
Top Banks In India DNB Survey
Bank Name
StateBank Of India
ICICI Bank Limited
HDFC Bank
Punjab National bank
Bank Of Baroda
Branches26500 2,016 1,725 5000 1,456
Employees 200,299 35,000 51,888 580,300 302,000
Income 85,962 crore
59,599.77 crore
4,419.01 crore
2,32,000 1,03,000
Profit9,166.05 crore
4,843.41 crore
3,032.92 crore
1,90,000 99,873
Top Banks In India
SBI SWOT Analysis •Strengths
▫King of rural India▫Government
Backing▫Diversified Portfolio▫Low Transaction
Cost▫Brand Name▫Excellent
Penetration
SWOT Analysis
•Weaknesses▫Hierarchical
mgmt. a barrier▫High % of NPA▫Lacks
modernization
SWOT Analysis
•Opportunities▫Merger of banks▫Add branches▫Privileged Banking▫Expansion▫Modernization
SWOT Analysis
•Threats▫Advent of MNC
banks▫Private banks▫Liberalization▫Consumer
Expectations▫Employee Strike
SWOT Analysis
•Strengths▫Brand name▫Huge network▫Aggressive
Marketing▫Technology▫Salary A/c’s
SWOT Analysis
•Weaknesses▫Poor customer
service▫High transaction
cost▫Customer bias▫Meek global
presence
SWOT Analysis
•Opportunities▫New companies▫New services▫Expansion
SWOT Analysis
•Threats ▫Advent of MNC
banks▫Nationalized banks
PROMISING SCOPE IN BANKING SECTOR FOR MBA
Investment Officers
JOB PROFILE: Marketing the Insurance, Mutual Fund and other products of the Bank. Responsible for end-to-end sales. Any other work assigned by the Bank from time to time.
Financial
AnalystJOB PROFILE: Analytical tasks on, maintenance and transactions including:Financial models, Derivatives market and conduct financial valuations. Deliver output that is accurate, insightful and client-read
Manager — ATM Strategy & Planning
JOB PROFILE :Responsibility to track adherence to budgeting for the ATM identification of expense save options, performance measurement of new deployments and take necessary measures.
Retail Risk Analyst – Inventory Finance
JOB PROFILE:
Managing Fresh limits, enhancements, interim approvals and renewals of dealer’s limit. Monitoring end use of funds by appointing CAs for conducting stock audits.
Asst. Manager Systems
• In-depth knowledge in Multi-tire Architecture, Client Server Technology, TCP/IP, Web Technology
Analyst – IT Operations
• Provide remote support to its global business, across the following areas:• IT Service Desk.• Information Security/Access Management.Windows/Unix/Linux Server Operations
IT AND MANAGEMENT
Marketing Manager
Human Resource Manager
JOB PROFILE:Provides HR shared services including Payroll, Benefits, Retiral Management and related Accounting & Reporting activities.
Assistant Manager – Sales
JOB PROFILE: To implement Business Development and Marketing Strategies and Achievement of Sales and Profit Targets of all Financial Products and Services.
Relationship Manager
JOB PROFILE:Involves up selling, cross selling and providing regular market information to customers and ensure superior banking relationships with high value corporates.
Salary Description
Starting salary in the range of 23,ooo to 65,000
Highest for the Vice - President and the Branch Manager
Lowest for the Bank Teller or Cashier.
THANK YOU