base and norms presentation

8/7/2019 BASE AND NORMS PRESENTATION

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A banker or bank is a financial institution

whose primary activity is to act as a payment

agent for customers and to borrow and lend

money. An institution where one can place and

borrow money and take care of financial affairs;

A branch office of such an institution.

The first modern bank was founded in Italyin Genoa in 1406, its name was (Bank of St.

George).


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Accepting Deposits from public/others

(Deposits).

Lending money to public (Loans).

Transferring money from one place toanother (Remittances).

Acting as trustees.

Keeping valuables in safe custody

Government business


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` Banks also act as trustees for various purposes. For example,whenever a company wishes to issue secured DEBENTURES, ithas to appoint a financial intermediary as trustee who takescharge of the security for the debenture and looks after the

interests of the debenture holders. Such entity necessarily haveto have expertise in financial matters and also be of sufficientstanding in the market/society to generate confidence in theminds of potential subscribers to the debenture. While Banks arethe natural choice for the customers, Banks must possess the

following to be effective and retain that:

` A track record of sufficient length.` Facilities for safe keeping.` Legal skills to take necessary steps for the trusteeship


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Public sector Banks

Private sector Banks

Co-operative Banks

Development Bank/Financial institutions


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Some Public Sector Banks in India:

Central Bank of India

Corporation Bank

Dena Bank Bank of India

Indian Overseas Bank

Oriental Bank of Commerce

Punjab & Sind Bank


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` Old generation private banks

` New generation private banks

ICICI Bank

IDBI BankAxis bank

` Foreign banks operating in India

HSBC BANK

CITI BANKABN-AMRO BANK

STANDARD CHARTED BANK


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RBS(ROYAL BANK OF SCOTLAND GROUP)

INDUSTRIAL AND COMMERCIAL BANK OF

CHINA.

Scheduled co-operative banks.

Non-scheduled bank


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` The Co operative banks in India started functioning almost 100years ago. The Cooperative bank is an important constituent of theIndian Financial System.They are setup to provide easy loans tofarmers or other persons to set up his buisness.

` They are non profitable banks.

` CO-OPERATIVE BANKS IN INDIA FINANCE RURAL AREAUNDER:

FARMING

CATTLE

MILK

PERSONAL FINANCE

` Some example of co-operative banks in India:

IDBI BANK(INDUSTRIAL DEVELOPMENT BANK OF INDIA)

IFCI BANK(INDUSTRIAL FINANCE COOPERATION OFINDIA)

APEX BANK


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` History:-

Become operational on April 1,1935.

Nationalized in the Year 1949.

` Major objectives:- Regulate the issue of banknote.

Maintain reserves with a view to securing monetary

stability.

To operate the credit and currency system of the

country to its advantage.


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` The fuctions are classified into three heads:-

Traditional functions

Promotional functions

Supervisory functions


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Monopoly of currency notes issue .

Banker to the Government (both the central

and state)

Fight against economic crisis and ensuresstability of Indian economy.

Controller of ForEx and credit.

Maintaining the external value of domestic

currency


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Extension of the facilities for the small

scale industries.

Innovating the new banking business

transactions. Extension of the facilities for the provision

of the agricultural credit through NABARD

(National Bank of Agriculture and Regional

Development )


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Granting licence to Banks.

Periodical review of the work of the

commercial banks.

Control the non-banking finance corporation.


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` TOOLS:-

CRR( CASH RESERVE RATIO)

REPO RATES(RR)

REVERSE REPO RATE(RRR) STATUTORY LIQUIDTY RATIO (SLR)

BANK RATE.


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` RBI Reference Rate for US $ and Euro The Reserve Bank ofIndias Reference Rate for the US dollar is ` 45.18 and the

Reference Rate for Euro is ` 63.13 on March 16, 2011. The

corresponding rates for the previous day (March 15, 2011) were `

45.27 and ` 63.08 respectively. Based on the Reference Rate for USdollar and middle rates of the cross currency quotes at 12 noon, the

exchange rates of GBP and Japanese Yen against the Rupee are:

` Date Currency

1 GBP 100 YEN

March 15, 2011 72.9481 55.36

March 16, 2011 72.5862 55.92


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` RBI likely to raise policy rates by 25 bps` The RBI is expected to hike interest rates by 25 basis points,

said State Bank of India (SBI) ChiefFinance Officer (CFO)Hemant Contractor.

` Despite moderation, food inflation is still high at 9.52 per cent on

account of rising prices of essential items. At the same time,factory output grew by 3.7 per cent in January compared to 16.7per cent in the same month a year ago

` "Current growth and inflation trends clearly warrant that wepersist with the anti-inflationary monetary stance. Lookingbeyond 2010-11, the Reserve Bank expects the domestic growthmomentum to stabilise," RBI Governor D Subbarao had said inthe last policy review announced on January 25, 2011.

` The short-term lending (repo) rate now stands at 6.75 per centand the borrowing (reverse repo) rate at 5.75 per cent


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` The Reserve Bank of India is now all set to make a workingcommittee for regulation of non-banking financialcompanies. This regulatory authority will handle all'emerging issues' in the NBFC sector.

` According to media release, RBI has planned a workingcommittee to examine 'range of issues' arising in regulationof NBFC. (NON BANKING FINANCIAL COMPANY)

` RBI said in a release that Usha Thorat, former deputygovernor of RBI will head this group. Usha Thorat is

currently serving as director of Centre for AdvancedFinancial Research and Learning (CAFRAL)


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` Beijing, March 19 - China's central bank said Friday it will raise the

banks' reserve requirement ratio by 50 basis points from March 25 the third hike this year.

` This will be the ninth reserve requirement ratio hike by the People's

` Bank of China since 2010. The latest move is to soak up liquidity.

` To check inflation, China Daily reported.As per the new plan, major banks will have to set aside 20 percent of

their reserves and small and medium-sized banks will have to keep

16.5percent of their deposits in reserve.


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` Technical analyst Anand Kuchelan of Fudiciary

Euromax Capital Markets has maintained 'buy' rating

on Allahabad Bank stock with a target of Rs 220-225.

` The stock of the bank, on March 17, closed at Rs135.40 on the Bombay Stock Exchange (BSE).

` The share price has seen a 52-week high of Rs 219.70

and a low of Rs 128 on BSE.

` Current EPS & P/E ratio stood at 12.01 and 11.26respectively


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` The stock of the company, on March 17, closed at Rs

136 on the Bombay Stock Exchange (BSE)

` The share price has seen a 52-week high of Rs 202.25

and a low of Rs 108 on BSE` Current EPS & P/E ratio stood at 14.75 and 9.13

respectively


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` Technical analyst Simi Bhaumik is bullish on CanaraBank and has maintained 'buy' rating on the stock toattain a target of Rs 670 in the shot run.

` According to the analyst, the investors can buy the

stock with a stop loss of Rs 610.

` The stock of the bank, on March 16, closed at Rs634.45 on the Bombay Stock Exchange (BSE).

` The share price has seen a 52-week high of Rs 844 and

a low of Rs 345 on BSE.` Current EPS & P/E ratio stood at 88.54 and 7.10

respectively


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` After the meeting of Board of Directors, Oriental Bank

of Commerce announced that Central Government will

infuse Rs. 1,740 crore in the bank to shore up the

bank's equity capital.` In the recent meeting of Board of Directors, held on

March, 5, 2011 it was decided that the public sector

Bank will raise Rs. 1740 crore. This will be done by

creating, offering and issuing 4, 12,21,491 equityshares. These shares will have a value of Rs. 10 each

and issue price of Rs. 422.11.


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