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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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