entrepreneurship in banking

8/3/2019 entrepreneurship in banking

1/54


2/54

GROUP MATES

SELVALAXMI

GEETA

BHAVYA

SANJANA BHARATI


3/54

INTRODUCTION

Service organization selling banking services.

Hold the saving of the public.

Means of payment for goods and services.

Necessary finance for the development of

business and trade.

Resulted in upliftment of weaker section of thesociety.


4/54

BANKING OVERVIEWMajor participants of the IndianFinancial system.

Oldest participants of the market.

New entities in the financial marketplace.


5/54

Historical perspectiveB

ank ofHindustan 1870.Started with establishment of three presidencybanks.

Amalgamated to form imperial bank of India-1921.

RBI Act-1934.

Banking Regulation act-1949.

RBI acquired the control of the Imperial Bank of

India renamed as State Bank of India-1955.

SBI took over control of 8 private banks, makingthem 100% subsidiaries-1959.


6/54

CONTINUED.

Total number of banks reduced from 566 in 1951 to85 in 1969.

Government nationalized 14 banks -1969.

6 more banks-1980.

Entry of new private sector banks-1993.


7/54

BANKING STRUCTURE IN

INDIA.

Public sector

banks

SBI &subsidiarie

sNationalized Banks

Regionalruralbanks

Private SectorBanks

Old PrivateSector Banks

New PrivateSectors Banks


8/54

STATE BANK OF INDIA(SBI) AND ITS

SUBSIDIARIES:Largest bank in India.

9000 branches in India and 51 foreign offices in 32 countries.

State bank of India is the successor of imperial bank ofIndia.

State bank of India came into being on 1-7-1955 through thestate bank of Indian act 1955.

SBI shares and bonds are listed for trading on all the majorIndian stock exchanges.

SBI has the largest number of ATM in India.


9/54


10/54

ASSOCIATE BANKS:

State bank ofBikaner and Jaipur(SBBI)

State bank of Hyderabad(SBH)

State bank of Indore(SBIr)

State bank of Mysore(SBM)

State bank ofP

atiala(SBP

)

State bank of Saurashtra(SBS)

State bank ofTravancore.(SBT)


11/54

OTHER NATINALIZED BANKS:

(a) Allahabad banks. (j) Indian overseas bank(b)Andhra bank. (k)Oriental bank of commerce(c) Bank ofBaroda (l) Punjab and Sind bank.

(d)Bank of India (m) Punjab national bank(e)Bank of Maharashtra (n) syndicate bank(f) Canara bank (o)UCO bank(g) Central bank of India (p)union bank of India

(h)Dena bank (q) united bank of India(i) Indian bank (r) Vijay bank


12/54

PRIVATE BANKINGThe first private bank in India to be set upwas IndusInd bank.

ING vysya, yet another private bank ofindia-1930

IDBI ranks the tenth largest developmentbank in the world as private bank in India.


13/54

LIST OF PRIVATE BANKS IN INDIA.

AxisBank

Bank ofPunjab

Bank of Rajasthan

Catholic Syrian bank

City union bank

Development credit bank

Dhanalakshmi bank

Federal bank

HDFC bank

ICICI bank

IndusInd bank

ING Vysya bank

Jammu and Kashmir bank

Karnataka bank

Karur vysya bank

Laxmi Vilas bank

South Indian bank

Yes bank.


14/54

Depositstructure

Savingsdeposit

Fixeddeposit

Recurringdeposit

Currentdeposit


15/54

y Minimum net worth - rs 200crore.

y Promoters net worth rs 200

crore.y Capital adequacy requirement

(CRA) above 12%

y Cannot set up subsidiaryduring initial 3years

y Requirements of prioritysector 25%

y Branches in rural sector.


16/54

yCash reserve ratio (CRR)

yStatutory liquidity ratio (SLR)

y

Repo rates(RR)yReverse repo rates (RRR)

yBank rates


17/54

:

1. Deposits From Public :Saving deposits

current deposits

Fixed deposits

2. Borrowings from Banks :

Inter-bank borrowingsand

Inter-bank deposits

3. Borrowings from RBI

4. Borrowings from finantialinstitutions.

5. Borrowings from abroad

6. Paid-up Capital/Reserves

1. Term loans2. Overdraft3. Cash Credit4. Loans and Advances5. Packing Credit6. Bill Purchase andDiscount

7. Inland and ForeignInvestment inApproved Securitiesand Other Shares andSecurities.


18/54

y Access the capital market funds

y SCR AND CRR

y Deregulation of interest rate

y Capital Adequacy Income

Recognition

y

Loan delivery systemy Autonomy for PSBs


19/54

y Deposits.

y Advances.

1.) Fund Oriented.2.) Non Fund Oriented.

y International Banking.

y Consultancy.

y Miscellaneous.


20/54

Market Segmentation is important because banksatisfy the various types of customer such as rural

customers, urban customers, high earning and lowearning customers, small scale and large scaleentrepreneurs and so on.


21/54

SEGMENTATION IN BANKS

AGRICULTU

RAL

SECTOR

HOUSEHOL

D SECTOR

INSTITUTI

ONAL

SECTOR.

SERVI

CE

TRADE

AND

COMME

RCE

INDUST

RIAL


22/54

y Depends on interest charged on loans, overdraft, cashcredit and charges for various services.

y

Important for raising number of customers.y Potential customer or investor frame their investment

decision on the basis of interest received.

y Consider the value satisfaction variable.


23/54

y Banks use two fold strategies :

a.) Interest and commission to be paid to the customers.

b.) Interest and commission to be paid by thecustomers.


24/54

y Personal promotion person to person.

y Impersonal promotion Advertising, publicity and

sales promotion measure.


25/54

y Locational decision.

y Places accessible to the actual and potential users.

y Neat and clean premises.y Security arrangements.


26/54

y Internal marketing to make the business customeroriented.

y

Skill for social interaction and tolerance for interpersonal contact.


27/54

y Logos, symbols, attractive brand names,etc.


28/54

Financial Market

Regulators

The Banking SystemNBFCs

The Capital Market

Deregulation of banking system


29/54

1.FINANCIAL MARKETS:

-Role ofPrivate Sector Institutions-Competition among the Financial Intermediaries.

2.REGULATORS

-RBI-SEBI

-IRDA-SUPER REGULATOR


30/54

3.THE BANKING SYSTEM:

-Liberalization-Role ofPSBs

4.DFIs:

-Access to SLR funds reduced.-No more Convertibility Clause.

-Extension of Capital adequacy norms.-Move to Universal Banking.


31/54

5.Deregulation of Banking System:

-Introduction ofPrudential Norms-Deregulation of interest rates

-Special RecoveryTribunals-Set up of ALMs-Establishment of Credit InformationBureau

-Introduction of derivative products


32/54

I.T IN BANKING


33/54


34/54

y Telephone banking

y Account information through fax, telex and emails.

y Usage of satellite communication system for real timeexchange of information between branches and headoffice.


35/54

y Online banking

y Mobile banking services are provided through SMSes ,

mobile web and more recently through smart phoneapps.

y Future in mobile banking: smart card embedded

mobiles.

y ATM- automated teller machines


36/54


37/54

y Competition from foreign banks and new privatesector banks.

y Technological advancement

y Innovation

y Diversified activities

y Customer awareness and satisfaction


38/54

y Development of skills of banks personnel

y Profitability nature

Banks have to focus on:Product development and management skill

Skills for working in electronic environment

CRM, etc

y Corporate governance


39/54


40/54


41/54


42/54


43/54


44/54


45/54


46/54


47/54

Mission statement of:


48/54


49/54


50/54


51/54


52/54


53/54

FULLFORM OF:

Q: WHEN WAS THE STATE BANK OF INDIA NATIONALISED?

Q: WHAT WAS THE NAME OF SBI BEFORE NATIONALISATION?

NABARD

AGMARK

III

ADR, GDR

CRISIL


54/54

Documents

entrepreneurship in banking