4.1 INTRODUCTION 4.2 PRIVATE BANKING IN INDIA 4.3 PROFILE ...shodhganga.inflibnet.ac.in/bitstream/10603/7333/14/14_chapter 4.pdf · March, 2009, after the last amalgamation of Lord

4.1 INTRODUCTION

4.2 PRIVATE BANKING IN INDIA

4.3 PROFILE OF SELECTED PRIVATE SECTOR BANKS COVERED

UNDER STUDY

4.3.1 Axis Bank Ltd.

4.3.2 HDFC Bank Ltd.

4.3.3 ICICI Bank Ltd.

4.3.4 IndusInd Bank Ltd.

4.3.5 Bank of Rajasthan Ltd.

4.3.6 Dhanlakshmi Bank Ltd.

4.3.7 ING Vysya Bank Ltd.

4.3.8 Karur Vysya Bank Ltd.

REFERENCES

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44..11 IINNTTRROODDUUCCTTIIOONN

“Banking business is a financial science on Money,

SAVE TO EARN AND OWE TO PAY,

Thus, bank puts exotic schemes to raise money and parcel debt”.

Banks are institutions where miracles happen regularly. We rarely entrust

our money to anyone but ourselves – and our banks. Despite a very

chequered history of mismanagement, corruption, false promises and

representations, delusions and behavioural inconsistency – banks still

succeed to motivate us to give them our money. Partly it is the feeling that

there is safety in numbers. The fashionable term today is "moral hazard".

The implicit guarantees of the state and of other financial institutions

move us to take risks which we would, otherwise, have avoided. Partly it

is the sophistication of the banks in marketing and promoting themselves

and their products. Glossy brochures, professional computer and video

presentations and vast, shrine-like, real estate complexes all serve to

enhance the image of the banks as the temples of the new religion of

money. But what is behind all this? How can we judge the soundness of

our banks? In other words, how can we tell if our money is safely tucked

away in a safe heaven?

The judgment can be made from the financial position and especially from

the profits of the banks. The importance of profits to commercial banks is

hard to exaggerate. They are decisive factor for the continued existence of

a bank and its success as a going concern.

44..22 PPRRIIVVAATTEE BBAANNKKIINNGG IINN IINNDDIIAA

Barron‟s Dictionary of Banking Terms provides an excellent definition. It

defines private banking as banking services, including lending and

investment management, for wealthy individuals. Private banking

primarily is a credit service, and is less dependent on accepting deposits

than retail banking. Under this definition, private banking includes,

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among other things, personalised services such as money management,

financial advice and investment services for high-net-worth clients.

Private banking services almost always involve a high level of

confidentiality for client information. Lending to high-net-worth

individuals and their business concerns often takes on unique

characteristics. Most private banking lending is fully secured.

Nevertheless, extensions of credit to wealthy individuals, even if secured,

should not compromise sound underwriting standards.

Private Banking Services

Figure 4.1

Private Banks in India started way back and has a history due to the fact

that in the past years they were originally working in private during those

days they were supposed to handle the more able and Indians with their

banking services and other banking needs that they would require all this

activities happened around 1921.

Since ancient times, private banking activities in the form of money

lending have been prevalent and it is the foundation for the present

sophisticated system in India. But the growth of the banking system was

quite muted on account of a series of crisis and lack of coordinated

BANKING SERVICES

INVESTMENT MANAGEMENT

SERVICES

WEALTH STRUCTURING

SERVICES

CLIENT

PERSONAL CLIENT ADVISOR

99

banking policy and inadequate control by proper authorities. In the

second half of the 20th century, especially after obtaining independence,

the Indian banking system experienced a rapid rate of growth and

recorded a fast progress. To speed up the growth further and also to meet

out the national objectives and plans, the government initiated the

nationalization process. Accordingly, the State Bank of India and its

Associates in 1955, 14 major banks in 1969 and 6 other banks in 1980 were

nationalised to take up their business in line with national plans and

priorities. Certain other banks which were not under the criteria of

nationalization operated mostly in South India and are regarded as old

private sector banks. Such banks are 19 in number at the March end of

2009, and most of them are very old. After the turning point of the

millennium year, the private banks in India have a major role when it

comes to serving the Indian people with their savings since they made the

banking services more efficient and customer friendly, in that many

Indians now are safe to keep their savings without any doubt and on top

of that they have make other bank to be in a stiff competition.

The present banking system experienced a radical transformation on

account of the globalization process. The phenomenon of globalization

brought about significant changes in terms of products and services that

are being offered to the Indian customer and consequently, the

complexion of the banking sector in India underwent a noteworthy

change. On the basis of the recommendations of the Narasimham

committee, a high level committee was appointed to examine the

structure, organisations, functions and procedures of the financial system.

In July 1991, the RBI decided to give a go-ahead for setting up of new

banks in the private sector by the individuals, corporations, foreign and

non-residents, subject to the regulations and other requirements.

RBI laid down the conditions for setting up of new private sector banks.

Such banks must subserve the underlying goals of financial sector reforms

which are to provide competitive, efficient and low cost financial

100

intermediation services for the society at large. They should be financially

viable. Their presence should result in upgradation of technology in the

banking sector. They should be equipped to avoid the shortcomings such

as unfair pre-emption and concentration of credit, monopolisation of

economic power, cross holdings with industrial groups, etc. with beset the

private sector banks prior to nationalization. Freedom of entry in the

banking sector may have to be managed carefully and judiciously.

RBI laid down detailed guidelines of establishment of new banks in the

private sector. In line with this announcement, the RBI received 19

applications which fulfilled all the formalities. Presently, at the end of

2009, there are 8 (eight) popularly known as the “New Private Sector

Banks”. The banks use latest technology to provide customer oriented

services. They give stiff competition to the public sector and foreign banks.

44..33 PPRROOFFIILLEE OOFF SSEELLEECCTTEEDD PPRRIIVVAATTEE SSEECCTTOORR BBAANNKKSS

CCOOVVEERREEDD UUNNDDEERR TTHHEE SSTTUUDDYY

Initially all the banks in India were private banks, which were founded in

the pre-independence era to cater to the banking needs of the people. The

old private sector banks constitute an important part of the private sector

banks. The key strength of these banks lies in:

(i) Their strong regional presence, contributing to better knowledge of

the economic activities in the region and, hence, the attendant

mitigation of credit risk.

(ii) Their ability to offer personalized services to customers arising out

of their comparative smaller size and scale of operations.

(iii) Better management control over their operations.

But the entrance of the new private sector banks has weakened the

competitive strength of the old private sector banks. They also have to face

competition from foreign banks, and a few rejuvenated public sector

banks. In the total assets of Rs. 10,27,465 crores of the private sector banks,

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the old private sector banks constituted a share of Rs. 2,32,001 crores

(22.58%) during 2008-09. The number of old private sector banks as on 31st

March, 2009, after the last amalgamation of Lord Krishna Bank Ltd. with

the Centurion Bank of Punjab Ltd. effective from August 29, 2007, comes

to fifteen (15). Among these 15 banks, the following four banks are taken

for the research study:

(i) Bank of Rajasthan Ltd.

(ii) Dhanlakshmi Bank Ltd.

(iii) ING Vysya Bank Ltd.

(iv) Karur Vysya Bank Ltd.

The new private sector banks have been established on the basis of the

recommendations of the Narasimham Committee Report that “there be no

barriers to new banks being setup in the private sector”. In recognition of

the need to introduce competition with a view to achieving higher

productivity and efficiency, the banking system was liberalized during the

early 1990s. Accordingly, the RBI issued a set of guidelines in January

1993 for the entry of new private sector banks. The New Generation tech-

savvy banks have made banking more efficient and customer friendly. In

the process they have jolted public sector banks out of complacency and

forced them to become more competitive.

In the total assets of Rs. 10,27,465 crores of the private sector banks, new

generation private sector banks constituted a share of Rs. 7,95,464 crores

(77.72%) during 2008-09. As at the end of March, 2009 the number of new

private sector banks is eight (8), after the amalgamation of Centurion Bank

of Punjab Ltd. with HDFC Bank Ltd. effective from May 23, 2008, from

which the following four banks are taken for the research study:

(i) Axis Bank Ltd.

(ii) HDFC Bank Ltd.

(iii) ICICI Bank Ltd.

(iv) IndusInd Bank Ltd.

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44..33..11 AAXXIISS BBAANNKK LLTTDD..

INTRODUCTION

Axis Bank Ltd., previously called UTI Bank, was the first of the new

generation private banks to have begun operations in 1994, when the

overall reform programme was initiated by the Government of India in

1991 and opened the gate for the private banks to flock into the Indian

financial market. The Bank was promoted jointly by the Administrator of

the Specified Undertaking of the Unit Trust of India (UTI-I) – the largest

mutual fund in India holding 87% of the equity; and Life Insurance

Corporation of India (LIC), General Insurance Corporation Ltd., National

Insurance Company Ltd., The New India Assurance Company, The

Oriental Insurance Corporation and United Insurance Company Ltd held

the balance 13%. Axis Bank is one of the fastest growing banks in the

country and has an extremely competitive and profitable banking

franchise. The Bank has strengths in both retail and corporate banking and

is committed to adopting the best industry practices internationally in

order to achieve excellence.

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Change of Name from UTI Bank to Axis Bank

The name of UTI was changed because of the disagreement on terms and

conditions of the bank authority over certain stipulations including

royalty charged over the name from UTI AMC. The bank also wanted to

have a new name from its pan-Indian as well as international business

perspective. So from July 30, 2007 onwards the UTI bank was named as

Axis Bank. First branch of Axis Bank, then known as UTI Bank, was

inaugurated at Ahmedabad by Dr. Manmohan Singh, the then Finance

Minister, Government of India.

CORPORATE PROFILE

Date of Incorporation : 1994

Registered Office : „Trishul‟, 3rd Floor,

Opp. Samartheshwar Temple,

Law Garden, Ellisbridge,

Ahmedabad – 380 006.

Tel.No.: 079 - 26409322

Public Issue Date : November 16, 1998

BSE Code : 532215

NSE Code : AXISBANK

Board of Directors : Shri P. J. Nayak, Chairman & CEO

(As on March 31, 2009) Shri N. C. Singhal, Director

Shri A. T. Pannir Selvam, Director

Shri J. R. Varma, Director

Shri R. H. Patil, Director

Shri Rama Bijapurkar, Director

Shri R. B. L. Vaish, Director

Shri M. V. Subbiah, Director

Shri Ramesh Ramanathan, Director

Shri K. N. Prithviraj, Director

Web URL : http://www.axisbank.com

Logo :

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AXIS BANK LTD. AT A GLANCE AS ON MARCH 31, 2009

Financial Results

(Rs. in crores)

Total Assets / Liabilities : 1,47,722.05

Total Deposits : 1,17,374.11

Total Advances : 81,556.77

Total Investments : 46,330.35

Cash and Balances with RBI : 9,419.21

Fixed Assets : 1,072.89

Interest Income : 10,835.49

Non-Interest Income : 2,896.88

Net Interest Income : 3,686.21

Interest Expenses : 7,149.27

Operating Expenses : 2,858.21

Provisions and contingencies : 1,909.51

Net Profit : 1,815.36

Operating Profit : 3,724.87

Priority Sector Advances : 22,949.04

Gross Non-Performing Assets : 897.77

Net Non-Performing Assets : 327.13

Other Information

Number of Offices : 835

Number of ATMs : 3,595

Number of Employees : 20,624

Business Per Employee (Rs. in lakh) : 1,060

Profit Per Employee (Rs. in lakh) : 10.02

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44..33..22 HHDDFFCC BBAANNKK LLTTDD..

INTRODUCTION

The HDFC Bank was incorporated on August 1994 by the name of “HDFC

Bank Limited”, with its registered office in Mumbai, India. HDFC Bank

commenced operations as a Scheduled Commercial Bank in January 1995.

The Housing Development Finance Corporation (HDFC) was amongst the

first to receive an 'in principle' approval from the Reserve Bank of India

(RBI) to set up a bank in the private sector, as part of the RBI's

liberalization of the Indian Banking Industry in 1994.

The promoter of the company HDFC was incepted in 1977 is India's

premier housing finance company and enjoys an impeccable track record

in India as well as in international markets. HDFC has developed

significant expertise in retail mortgage loans to different market segments

and also has a large corporate client base for its housing related credit

facilities. With its experience in the financial markets, a strong market

reputation, large shareholder base and unique consumer franchise, HDFC

was ideally positioned to promote a bank in the Indian environment.

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HDFC Bank's mission is to be a World-Class Indian Bank. The objective is

to build sound customer franchises across distinct businesses so as to be

the preferred provider of banking services for target retail and wholesale

customer segments, and to achieve healthy growth in profitability,

consistent with the bank's risk appetite.

The shares are listed on the Bombay Stock Exchange Limited and National

Stock Exchange of India Limited. The Bank's American Depository Shares

(ADS) are listed on the New York Stock Exchange (NYSE) under the

symbol 'HDB' and the Bank's Global Depository Receipts (GDRs) are listed

on Luxembourg Stock Exchange.

Merger and Amalgamation

In a milestone transaction in the Indian banking industry, Times Bank

Limited (a private sector bank promoted by Bennett, Coleman &

Co./Times Group) was merged with HDFC Bank Ltd., effective February

26, 2000. With this, HDFC and Times became the first two private banks in

the New Generation Private Sector Banks to have gone through a merger.

As per the scheme of amalgamation approved by the shareholders of both

banks and the Reserve Bank of India, shareholders of Times Bank received

1 share of HDFC Bank for every 5.75 shares of Times Bank.

During the year ended March 31, 2009, the RBI accorded its consent to the

Scheme of Amalgamation of Centurion Bank of Punjab (CBP) with HDFC

Bank. Pursuant to the order of amalgamation the operations of both Banks

were merged with effect from May 23, 2008. The appointed date for the

merger was April 01, 2008. As per the scheme of amalgamation,

shareholders of CBP received 1 share of HDFC Bank for every 29 shares of

CBP. The merged entity now holds a strong deposit base of around Rs.

1,22,000 crore and net advances of around Rs. 89,000 crore. The balance

sheet size of the combined entity would be over Rs. 1,63,000 crore. The

amalgamation added significant value to HDFC Bank in terms of

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increased branch network, geographic reach, and customer base, and a

bigger pool of skilled manpower.

CORPORATE PROFILE

Date of Incorporation : 1994

Registered Office : HDFC Bank House,

Senapati Bapat Marg,

Lower Parel,

Mumbai – 400 013.

Tel.No.: 022 - 66521000

Public Issue Date : December 31, 1995

BSE Code : 500180

NSE Code : HDFCBANK

Board of Directors : Shri Jagdish Capoor, Chairman

(As on March 31, 2009) Shri Keki Mistry, Director

Smt. Renu Karnad, Director

Shri Arvind Pande, Director

Shri Ashim Samanta, Director

Shri Chander Mohan Vasudev, Director

Shri Gautam Divan, Director

Dr. Pandit Palande, Director

Shri Aditya Puri, Managing Director

Shri Harish Engineer, Executive Director

Shri Paresh Sukthankar, Executive Director

Shri Vineet Jain, Director (upto 27.12.2008)

Web URL : http://www.hdfcbank.com

Logo :

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HDFC BANK LTD. AT A GLANCE AS ON MARCH 31, 2009

Financial Results

(Rs. in crores)






Fixed Assets : 1,706.73










Gross Non-Performing Assets : 1,988.07


Other Information

Number of Offices : 1,412



Business Per Employee (Rs. in lakh) : 446.00


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44..33..33 IICCIICCII BBAANNKK LLTTDD..

INTRODUCTION

Established as a private sector

company in 1955, ICICI Ltd., was a

leading Development Bank in

India. There after, ICICI Bank was

started as a wholly owned

subsidiary of ICICI Limited, an

Indian financial institution, in

1994. Four years later, when the

company offered ICICI Bank's

shares to the public, ICICI's

shareholding was reduced to 46%.

ICICI Bank, undertook normal

banking operations like accepting deposits, issuing credit cards, providing

car loans etc. A landmark event took place when ICICI merged into ICICI

Bank and this "reverse merger" happened on March 30, 2002. The merger

110

created India‟s first universal bank and the second largest bank in the

country wit total assets of about Rs.1 trillion and about 540 branches and

offices and over 1,000 ATMs.

ICICI Bank offer a wide gamut of retail products to its retail customers

and as well as other banking products related to the corporate segment.

Bank also offer financial services that span asset management, venture

capital, investment banking, life and non-life insurance. ICICI Bank‟s

equity shares are listed in India on stock exchanges at Chennai, Delhi,

Kolkata, Mumbai, Vadodara and the National Stock Exchange (NSE) of

India Limited with its American Depositary Receipts (ADRs) listed on the

New York Stock Exchange (NYSE).

Merger of ICICI with ICICI Bank

ICICI and ICICI Bank, along with other ICICI group companies, were

operating as a virtual universal bank offering a wide range of financial

products and services. In the context of the move towards universal

banking and the stiff competition scenario in the Indian banking industry,

both the entities were merged. The merged entity has now an access to

low-cost deposits, higher income and participation in the payments

system, entry into new business segments, higher market share in various

segments especially fee-based services and vast talent pool of ICICI and its

subsidiaries which, in turn, would enhance the value for ICICI Bank

shareholders. The merger has resulted in the integration of the retail

finance operations of ICICI and its two merging subsidiaries and ICICI

Bank into one entity, creating an optimal structure for the retail business.

The share exchange ratio approved for the merger was one fully paid-up

equity share of ICICI Bank for two fully-paid-up equity shares of ICICI.

The merger was approved by the shareholders of both companies in

January 2002, by the High Court of Gujarat in March 2002, and by the

High Court of Judicature at Mumbai and the RBI in April 2002. ICICI

could successfully meet the statutory reserve requirements applicable to

banks within the target date of 30 March 2002. While the merger became

111

effective on 3 May 2002, in accordance with the provision of the Scheme of

Amalgamation and the terms of approval of the RBI, the appointed date

for the merger was 30 March, 2002.

CORPORATE PROFILE

Date of Incorporation : January 5, 1994

Registered Office : Landmark,

Race Cource Circle,

Vadodara – 390 007.

Tel.No.: 2339923

Public Issue Date : August 5, 1997

BSE Code : 532174

NSE Code : ICICIBANK

Board of Directors : Shri N. Vaghul, Chairman

(As on March 31, 2009) (Upto April 30, 2009)

Shri K. V. Kamath, Managing Director &

CFO

(Upto April 30, 2009)

Chairman - w.e.f. May 1, 2009

Shri Sridar Iyengar, Director

Shri L. N. Mittal, Director

Shri Narendra Murkumbi, Director

Shri Anupam Puri, Director

Shri M. K. Sharma, Director

Shri P. M. Sinha, Director

Shri Marti G. Subrahmanyam, Director

Shri T. S. Vijayan, Director

Shri V. Prem Wasta, Director

Ms. Chanda D. Kochhar, Joint MD & CFO

(upto April 30, 2009)

MD & CFO - w.e.f May 1,

2009

Shri V. Vaidyanathan, Executive Director

(upto April 30, 2009)

Shri Sonjoy Chatterjee, Executive Director

Web URL : http://www.icicibank.com

Logo :

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ICICI BANK LTD. AT A GLANCE AS ON MARCH 31, 2009

Financial Results

(Rs. in crores)



Total Advances : 2,18,310.85

Total Investments : 1,03,058.31


Fixed Assets : 3801.62










Gross Non-Performing Assets : 9,649.31

Net Non-Performing Assets : 4,553.94

Other Information

Number of Offices : 1,409



Business Per Employee (Rs. in lakh) : 1,154.00


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44..33..44 IINNDDUUSSIINNDD BBAANNKK LLTTDD..

INTRODUCTION

IndusInd Bank is the new generation Indian bank based at Mumbai - the

financial capital of the nation. IndusInd Bank derives its name and

inspiration from the Indus Valley civilisation - a culture described by

National Geographic as 'one of the greatest of the ancient world

combining a spirit of innovation with sound business and trade practices.

The idea behind IndusInd Bank, was conceived by Mr. Srichand P.

Hinduja, a leading Non-Resident Indian (NRI) businessman and the head

of the Hinduja Group. One of the first new-generation private banks in

India, IndusInd Bank was inaugurated in April 1994, Dr. Manmohan

Singh, the present Prime Minister of India, who was then the Finance

Minister of the country. It was established with the help of collective

contributions from the NRI community, towards the economic and social

development of India. The operations of IndusInd Bank were started with

a capital base of Rs.1,000 million. Of the total 1,000 million, Rs.600 million

was raised through private placements by Indian Residents and Rs.400

million was contributed by Non-Resident Indians (NRIs). A decade after

114

its establishment i.e. in June 2004, IndusInd Bank was merged with Ashok

Leyland Finance Ltd., which was one of the largest leasing finance and

hire purchase companies in India, at that time. With this, the bank

increased its customer base and geographical penetration. The bank is also

credited for being one of the first banks to become a part of RBI‟s Real

Time Gross Settlement (RTGS) system. In 1996-97, the bank became the

pioneer in launching Internet Banking. With its roots in Indian tradition

and emphasis on customer care, IndusInd Bank‟s service philosophy is

well reflected in the communication tagline “We Care... Dil Se”.

CORPORATE PROFILE

Date of Incorporation : April 2, 1994

Registered Office : 2401, General Thimmayya Road,

(Cantonment),

Pune – 411 001.

Tel.No.: 26343201

Public Issue Date : November 25, 1997

BSE Code : 532187

NSE Code : INDUSINDBK

Board of Directors : Shri R. Seshasayee, Chairman

(As on March 31, 2009) Shri R. Sundararaman, Director

Shri T. Anantha Narayanan, Director

Shri T. T. Ram Mohan, Director

Smt. Pallavi Shroff, Director

Shri Premchand Godha, Director

Shri Ajay Hinduja, Director

Shri S. C. Tripathi, Director

Shri Ashok Kini, Director

Shri Romesh Sobti, MD & CEO

Web URL : http://www.indusind.com

Logo :

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INDUSIND BANK LTD. AT A GLANCE AS ON MARCH 31, 2009

Financial Results

(Rs. in crores)

Total Assets / Liabilities : 27,614.68

Total Deposits : 22,110.25






Non-Interest Income : 456.25

Net Interest Income : 459.03


Operating Expenses : 547.03

Provisions and contingencies : 219.91

Net Profit : 148.34

Operating Profit : 412.42




Other Information


Number of ATMs : 184




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INTRODUCTION

The Bank of Rajasthan was established at Udaipur, the city of lakes in

Rajasthan on the auspicious day of Akshya Tritiya on May 8, 1943. The

credit for the birth of the Bank goes to, the then finance minister of the

erst-while Mewar Government, late Shri Rai Bahadur P.C. Chatterji,

who persuaded the Mansingka brothers of Bhilwara for establishing a

joint stock bank with its registered Office at Udaipur.

The bank started with a capital of only Rs.10 lakhs. Late Seth Shri Govind

Ram Seksaria, an eminent Industrialist of the country, was the founder

Chairman. The first Broad of Directors comprised such men of eminence

as Shri Rai Bahadur Seth Rameshwarlal Ji Duduwala, Seth Shri Subhhag

Mal Ji Lodha besides the Mansighka brothers, Seth Shri Pusa Lalji

Mansighka and Seth Shri Damodar Lal ji Mansighka. The other members

of the board were Major Rajadhiraj Amar Singhji of Banera and the then

Accountant General of Mewar, Rai Bahadur lala Sukhdayalji.

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In line with the contemporary practice of naming the bank after the

location or princely state, the suggested names for the bank were Bank of

Mewar State or Bank of Udaipur. The promoters, being very clear in their

vision, expressed the view that the word 'Rajasthan' will be more

advantageous in future for expanding activities in other princely states

since under the new constitution grouping of the then local princely states

was expected under one umbrella. As now is history, the individual

princely states were merged under the final name for the state - Rajasthan.

The naming of the bank, The Bank of Rajasthan Ltd., glaringly reflected

the foresight of the promoters. The logo of the bank consists of the historic

Victory Tower of Chittorgarh, (Rajasthan) the rising sun and sand-dunes

in a circular shape of coin.

It was, in 1948, that the Bank of Rajasthan became a scheduled bank. Bank

of Rajasthan was one among the first banks to take banking services, at

the door step of customers. This was done, when it opened its first mobile

branch in Jaipur on August 5, 1960, thereby initiating the concept of

mobile branches. The Bank became one of the earliest banks in private

sector sponsoring any rural (Gramin) bank, when it established the

Mewar Anchlik Gramin Bank in Udaipur District in Rajasthan on January

26, 1983. Further in 1997, the bank achieved distinction, when its Jaipur

branch qualified for ISO 9002:94 certification by Det Norske Veritas

(DNV), London. The bank started its first ATM services in the series of

Quality services to its customers at C-Scheme Jaipur branch from 1st July

1998.

The Bank has a nationwide presence, serving its customers with a mission

of “together we prosper” engaging actively in Commercial Banking,

Merchant Banking, Auxiliary services, Consumer Banking, Deposit &

Money Placement services, Trust & Custodial services, International

Banking, Priority Sector Banking, Depository. Bank of Rajasthan

specializes in forex and industrial finance, and with their motto „together

we prosper‟ the bank offers qualified services to its customers. The bank

118

offers deposit schemes like sugam jama yojan, recurring saving deposit

account, fixed deposit scheme and suvidha Bachat yojana.

CORPORATE PROFILE

Date of Incorporation : May 8, 1943

Registered Office : Clock Tower,

Udaipur – 313 001.

Tel.No.: 0294 - 2525709


BSE Code : 500019

NSE Code : BANKRAJAS

Board of Directors : Shri P. L. Ahuja, Chairman & CEO

(As on March 31, 2009) Shri Sanjay Kumar Tayal, Director

Shri P. N. Bhandari, Director

Shri K. N. Bhandari, Director

Shri Magh Raj Calla, Director

Shri Ved Prakash Khurana, Director

Shri Pran M. Agarwal, Director

Shri K. G. Kurian, Director

Shri Vipul Dhirajlal Mehta, Director

Shri S. B. Mathur, Director

(Resigned w.e.f. 09.05.2009)

Dr. Dharinder Kumar Tayal, Director

Shri Salil Kapoor, Director

Shri Nitin N. Goel, Director

Shri Shekhar Bhatnagar, Additional Director

Shri A. Madhavan, Additional Director

Shri Deepak Saruparia, Dy. MD

Shri K. K. Sharma, Executive Director

Web URL : http://www.bankofrajasthan.com

Logo :

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BANK OF RAJASTHAN AT A GLANCE AS ON MARCH 31, 2009

Financial Results

(Rs. in crores)





Cash and Balances with RBI : 703.45





Interest Expenses : 998.45



Net Profit : 117.71





Other Information






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INTRODUCTION

The foundation of Dhanalakshmi Bank Limited was laid down on 14th

November 1927, in the Thrissur district of Kerala. A group of innovative

entrepreneurs had started the bank with a capital of Rs.11,000 and only 7

employees. Fifty years later, in the year 1977, it became a 'Scheduled

Commercial Bank'. The bank‟s Corporate Office, situated at Thrissur, and

Industrial Finance Branch, located in Kochi, has been accredited with

certification under ISO 9001-2000.

Dhanalakshmi Bank is one of those financial institutions that have moved

ahead with the changing times. It has used technology widely throughout

its operations, with the aim of improving the quality of customer service.

The Centralised Banking Solution (CBS) on the Flexcube Platform, offered

by the bank in all of branches, allows its clients to reap the benefits of

Anywhere/Anytime banking, through multiple delivery channels. The

'Data Centre' of Dhanalakshmi Bank, set up in Bangalore, keeps the

networked system operational 24X7. Dhanalakshmi Bank has introduced

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tele-banking and Internet banking for its clients, at all the branches. At the

same time, it has implemented centralized CMS software, with the CMS

hub being located at the corporate office in Thrissur. Real Time Gross

Settlement (RTGS) and National Electronic Fund Transfer (NEFT)

Systems, assisting large value payments and settlements in real time on-

line mode on a transaction-by-transaction basis, are the other tech-savvy

services offered by the bank.

As part of this overall effort, the Bank has joined CASHNET, the first

independent nation-wide shared ATM network in India, the National

Financial Switch (ATM network) of the IDRBT, promoted by Reserve Bank

of India and Cash Tree promoted by a group of public sector banks. With

a view to making available value-added services to the NRIs, the Bank has

set up NRI Boutiques (Relationship Centres) at 9 locations in the State of

Kerala and Tamil Nadu.

CORPORATE PROFILE

Date of Incorporation : November 14, 1927

Registered Office : P. B. No.9, Dhanlakshmi Building,

Naickanal,

Trissur – 680 001.

Tel.No.: 0487 - 6617000


BSE Code : 532180

NSE Code : DHANBANK

Board of Directors : Shri Ghyanendra Nath Bajpai, Chairman

(As on March 31, 2009) Shri V. R. Chalasani, Director

Shri S. Santhanakrishnan, Director

Shri K. Srikanth Reddy, Director

Shri Shailesh V. Haribhakti, Director

Shri Amitabh Chaturvedi, MD & CEO

Web URL : http://www.dhanbank.com

Logo :

122

DHANLAKSHMI BANK AT A GLANCE AS ON MARCH 31, 2009

Financial Results

(Rs. in crores)







Interest Income : 408.42



Interest Expenses : 286.79



Net Profit : 57.45





Other Information


Number of ATMs : 72




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44..33..77 IINNGG VVYYSSYYAA BBAANNKK LLTTDD..

INTRODUCTION

Vysya Bank Ltd, one of initial banks to be set up in the private sector of

India, was established in the year 1930, with the aim of providing a

helping hand to all those who couldn't afford the privilege of enjoying the

services of a bank. Eighteen years later, in 1948, the bank was listed as one

of the Scheduled Banks of the country. With the passing time, Vysya Bank

aimed at the number one position in all the private sector banks.

In 1985, the dream of Vysya Bank's promoters came true and it became the

largest private sector bank of India. Two years later, it laid the foundation

of Vysya Bank Leasing Ltd. The following year, the bank was credited

with laying down the innovative concept of 'Co branding of Credit Cards'.

In 1990, Vysya Bank promoted a new entity - Vysya Bank Housing

Finance Ltd. By 1992, the bank had reached another milestone, by having

its deposits cross Rs. 1000 crores and the very next year, the number of its

branches had gone past 300.

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In the year 1996, Vysya Bank struck a strategic alliance with BBL Belgium

and was also honored with two National Awards by Gem & Jewellery

Export Promotion Council, for excellent performance in Export Promotion.

Hardly two years later, the bank had introduced Cash Management

Services and the commissioning of VSAT and was also rated as the Best

Domestic Bank in India, by Global Finance (International Financial Journal

- June 1998). Soon (2000), it established a state-of-the-art Date Centre, at

ITPL, Bangalore.

It was in 2000 only that ING and Vysya Bank set up ING Vysya Life

Insurance Company, after receiving RBI nod, commencing its business in

the following year. Two years later, a wide range of services were

launched, including Vys Vyapar Plus - the range of loan schemes for

traders, ATM services, Smartserv - personal assistant service, Save &

Secure - an account that provides accident hospitalization and insurance

cover, Sambandh - the International Debit Card and the mi-b@nk net

banking service.

ING Vysya Bank Ltd., is an entity formed with the coming together of

erstwhile, Vysya Bank Ltd., a premier bank in the Indian Private Sector

and a global financial powerhouse, ING of Dutch origin, during Oct 2002.

ING took over the management of Vysya Bank and RBI gave its

permission for the new name of the bank to be 'ING Vysya Bank Ltd'. The

immediate benefit to ING Vysya Bank Ltd. is the pride of having become a

member of global financial services giant. The pride of this global identity,

the back up of a financial power house and the status of being the first

Indian International bank, has greatly enhance productivity, profitability

resulting in improved performance for the bank to translate into higher

returns, to all the stake holders.

In the constant endeavor to make life easier for customers, the Bank

upgraded its Internet Banking portal which now provides a smoother

customer experience apart from adding new features to online banking

offering. During 2009, bank launched Mobile Banking, providing a

125

„virtual‟ bank to the customer where he can view and transact on his bank

accounts and get updates on branch/ATM locations.

CORPORATE PROFILE

Date of Incorporation : March 29, 1930

Registered Office : ING Vysya House, No.22,

M. G. Road,

Bangalore – 560 001.

Tel.No.: 080 – 25005000 / 25559222

Public Issue Date : May 1, 1996

BSE Code : 531807

NSE Code : INGVYSYABK

Board of Directors : Shri K. R. Ramamorthy, Chairman

(As on March 31, 2009) Shri Vaughn Nigel Richtor, MD & CEO

Shri Aditya Krishna, Director

Shri Arun Thiagarajan, Director

Shri Lars Kramer, Director

(Upto 01.05.2008)

Shri Meleveetil Damodaran, Director

Shri Philippe Damas, Director

Shri Ramakrishnan Subramanian, Director

Shri Richard Cox, Director

Shri Ryan Padgett, Director

Shri Santoch Ramesh Desai, Director

Shri Wilfred Nagel, Director

Web URL : http://www.ingvysyabank.com

Logo :

126

ING VYSYA BANK LTD. AT A GLANCE AS ON MARCH 31, 2009

Financial Results

(Rs. in crores)













Net Profit : 188.78





Other Information






127

44..33..88 KKAARRUURR VVYYSSYYAA BBAANNKK LLTTDD..

OVERVIEW

The Karur Vysya Bank Limited popularly known as KVB was such one to

be set up in 1916 by two great visionaries and illustrious sons of Karur, the

Late Shri M. A. Venkatarama Chettiar and the Late Shri Athi Krishna

Chettiar to inculcate savings habit and to provide financial assistance to

traders and small agriculturists in and around Karur, a textile town in

Tamil Nadu state of India. This bank was formed as a simple financial unit

in order to provide aid and financial assistance to the traders and small

agriculturists in and around Karur. Though the Bank had a very humble

beginning with Rs.1 lakh Capital, the Bank had borne myriad changes and

challenges in the past decades so fruitfully and profitably to emerge as one

of the leading banks in India with strong and healthy fundamentals.

KVB is one of the early banks to adhere to the norm of Capital Adequacy

Ratio stipulated by RBI right from its introduction. The Bank has been

maintaining a healthy Capital Adequacy Ratio of over 16% as against the

128

mandatory norm of 9% prescribed by the RBI, which will take care of

future asset growth. Karur Vysya Bank became the forerunners in the

banking sector to achieve full networking of its branches under Core

Banking Solutions. They offer their services through multiple delivery

channels.

CORPORATE PROFILE

Date of Incorporation : June 26, 1916

Registered Office : P. B. No. 21, Erode Road,

Karur,

Tamil Nadu – 639 002.

Tel.No.: 04324 – 226520 / 225521 / 225522

Public Issue Date : July 26, 2000

BSE Code : 590003

NSE Code : KARURVYSYA

Board of Directors : Shri P. T. Kuppuswamy, MD & CEO

(As on March 31, 2009) Shri V. G. Mohan Prasad, Director

Shri M. G. S. Ramesh Babu, Director

Shri S. Ganapthi Subramanian, Director

Shri V. Santhanaraman, Director

Shri A. J. Suriyanarayana, Additional Director

Shri T. M. Lakshmikanthan, Executive Director

Shri K. P. Kumar, Non Exe. Part Time Chairman

Shri S. Krishna Kumar, Director

Shri K. Parameshwara Rao, Director

Shri G. Rajasekaran, Additional Director

Web URL : http://www.kvb.co.in

Logo :

129

KARUR VYSYA BANK AT A GLANCE AS ON MARCH 31, 2009

Financial Results

(Rs. in crores)













Net Profit : 235.84





Other Information






130

REFERENCES

1. Annual Reports of selected private sector banks, various issues from

1999-2000 to 2008-2009.

2. Muraleedharan, “Modern Banking: Theory and Practice”, PHI Learning

Pvt. Ltd., New Delhi, 2009, pp. 183-185.

3. Murthy, D. K. and Venugopal, “Indian Financial System”, I. K.

International Publishing House Pvt. Ltd., New Delhi, 2006, pp. 42-46.

4. Roussakis, Emmanuel N., “Commercial Banking in an Era of Deregulation”,

Praeger Publishers, London, Third Edition, 1997, pp. 240-241.

5. Srivastava, P. K., “Banking – Theory and Practice”, Himalaya Publishing

House, Mumbai, Eighth Revised Edition, 2000, p. 45.

6. Subramanian, K. and Velayudham, T. K., “Banking Reforms in India –

Managing Change”, Tata McGraw Hill Publishing Co. Ltd., New Delhi,

2007, pp. 559-562.

7. http://www.axisbank.com

8. http://www.bankofrajasthan.com

9. http://www.dhanbank.com

10. http://www.hdfcbank.com

11. http://www.icicibank.com

12. http://www.indusind.com

13. http://www.ingvysyabank.com

14. http://www.kvb.co.in

15. http://www.rbi.org.in

16. www.indianmba.com

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