YES BANK

UNIVERSITY OF MUMBAI
PROJECT ON
YES BANK

SUBMITTED BY

Seema Kamlesh Yadav

PROJECT GUIDE
PROF. PRAVIN AKOLKAR

BACHELOR OF
BANKING AND INSURANCE

SEMESTER V
(2016-2017)

SHRI CHINAI COLLEGE OF COMMERCE AND ECONOMICS

ANDHERI (EAST), MUMBAI-400 069

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CERTIFICATE

This is to certify that MS. Seema Kamlesh Yadav of commerce (Banking

& Insurance) Semester-V (2016-2017) has successfully completed the project on
YES BANK under the Guidance of PROF. PRAVIN AKOLKAR.

____________

__________

Course Coordinator

Principal

_____________
Internal Examiner

_____________
External Examiner
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DECLARATION

I, MS. Seema Kamlesh Yadav the student of B.com Banking and Insurance
Semester-V (2016-2017) hereby declare that I have completed project on Foreign
Exchange in Banking Sector The information submitted is true and trust to my
knowledge.

___________
Signature of the student
(Seema Kamlesh Yadav)
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Roll no. 59

ACKNOWLEDGEMENT

I would firstly like to thank my institution and sincere thanks to principal for
providing me support and giving me opportunity for doing Banking and Insurance
course and completing this Project.
I also take an opportunity to highlight the invaluable contribution of our B&I
Coordinator Prof. Pravin Akolkar who have always supported and encourage me.
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I would also extend my profound and sincere gratitude in my project Prof. Pravin
Akolkar who has guided my research project with his vast fund of knowledge,
advice and constant encouragement.
I also thank my parents and all my colleagues without whom this project would
have not been complete.
Thank you all for contribution towards the project with whether big or small and
will forever be in debated to each and every one of you. I also thanks to all those
whom I have forgotten to mention in this pace.

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EXECUTIVE SUMMARY
Yes bank has been recognized amongst the top and fastest growing banks in
various Indian banking league tables by prestigious media houses and global
advisory firm , and has received several national and international honours for our
various businesses including corporate investment banking, treasury, transaction
banking and sustainable practices thought responsible banking. Yes bank is
stadily involving as the professional bank of india with the long term.
Its is known as the building the finest quality bank of the world by
2020. Yes bank in indias 5TH largest private sector bank, founded by RANA
KAPOOR in 2004. Yes bank is only greenfield bank license awarded by the RBI
In the last 2 decades. Yes bank is a FULL SERVICE COMMERCIAL
BANK and has steadily build a corporate retail and SME banking franchise,
Financial markets, investment banking bussinnes and transaction banking and
wealth management business line across the country.

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CHAPTER: 1
INTRODUCTION TO THE REPORT
Report has been prepared with the objective of searching for the
business opportunities for the bank by collecting and analyzing
information from various sources and making strategies for the same.
Report has valuable information which has been carefully collected and
analysis on the same has been made to reach at the appropriate
conclusion. Survey has been done of the various charitable institutes
with appropriate questionnaire framed with the objective kept in mind.
Questions were asked to the officials to the various organizations and
necessary information was collected as a primary source to the subject.
Detail study of Foreign Contribution Regulation Act 1976 is done to
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have the deep theoretical and practical knowledge of the project. Project
is to study the requirements of the charitable institutions in the banking
product which is done by meeting different charitable institutions and
asking them about their present banker and their needs. A comparison of
the banking product offered by the Standard Chartered Bank and HDFC
Bank is also done by meeting the two Banks officials in Delhi region.

=====================================
CHAPTER:2
Overview to the Foreign Contribution
(Regulation) Act
2.1 Prior permission
2.2 Accounts
2.3 Foreign Hospitality
2.4 Salient feature
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2.5 Business strategy
2.6 Yes international banking
2.7 Brand creation

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CHAPTER:2

Overview to the Foreign Contribution

(Regulation) Act
FCRA 1976.
Foreign Contribution (Regulation) Act was given by the Parliament in
the Twenty-seventh year of the republic India. It is to regulate the
acceptance and utilization of foreign contribution or foreign hospitality
by certain persons or associations, with a view to ensuring that
parliamentary institutions, political associations and academic and other
voluntary organizations as well as individuals working in the important
areas of national life may function in a manner consistent with the
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values of a sovereign democratic republic, and for matters connected
therewith. FCRA department is situated in New Delhi, Ministry of Home
Affairs, Foreigners division, jaisalmer house, 26, Man Singh Road every
permission for registration is sent here. Application Forms can be
downloaded from website, www.mha.nic.in. Need for the Foreign
Contribution Regulation Act,1976 was felt due to the security
considerations and to ensure that foreign contribution is utilized for
genuine activities without compromising on concerns for national
security. The central government has the power to prohibit any person or
organizations from accepting foreign contribution or hospitality if it is
determined that such acceptance would likely affect prejudicially a) the
sovereignty and integrity of India, b) public interest, c) freedom of
fairness of election to any legislature, d) friendly relations with any
foreign state, or e) harmony between religious, racial, social, linguistic
or regional groups, castes or communities.
The Act was essentially designed to prevent flow of foreign funds to
political parties in India. Registration and permission an association
having a definite cultural, economic, educational, religious or social
programme can receive foreign contribution after it obtains either
The prior permission of the central Government, or
Gets it registered with the central Government.

2.1 Prior permission

Prior permission is required

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Where the association does not have a FCRA registration,
Where the association is kept under prior permission category,
Where registration is frozen
Association of political nature not being political party

2.2 Accounts
In the Act it is mentioned that registered associations may only receive
foreign contribution in a single account of a specified Bank branch.
Every association so registered shall give within such time & in such
manner as may be prescribed, intimation to the central government as to
the amount of each foreign contribution received by it. A separate set of
accounts and records shall be maintained, exclusively for foreign
contribution received and utilized. Every account shall be maintained on
a yearly basis duly certified by a chartered accountant along with a
balance sheet & statement of receipt& payment account to MHA.

2.3 Foreign Hospitality

The Act regulates receipt and utilization of foreign hospitality by certain

individuals which includes members of legislature, office-bearers of
political
party,
judges, government
servants, employees of
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Corporation, while visiting any foreign country or territory outside India.
Such individuals can receive foreign hospitality only with the prior
permission of the Central Government. Prior permission is not required
when such individuals are required to receive any emergent medical aid
needed on account of sudden illness contracted during foreign visit, but,
they are mandated to intimate the Central Government within one month
from the date of such foreign visit/receipt of foreign hospitality. The
intimation shall include the source from which and the manner in which
such hospitality was availed by the recipient. Foreign hospitality
includes cost of travel, boarding, lodging, free transportation, free
medical treatment, etc.Over 34,035 associations have been registered
under FCRA as on 28th February, 2007 to receive and utilize foreign
contribution. These associations are broadly divided into 5 categories
viz. Religious, Cultural, Economic, Educational & Social. Many of
these associations are simultaneously engaged in activities falling
within two or more categories.
No bank should credit any foreign contribution to the account of an
association/NGO unless it produces documentary evidence of having
obtained registration/prior permission from the Central Government for
the same. In case any foreign contribution is credited to the account of
an NGO/Association/Trust directly, the bank should not allow utilization
of such fund and inform the NGO/Association/Trust concerned to obtain
necessary permission/registration from the Central Government for the
same. Simultaneously, the bank should inform the Deputy Secretary
(FCRA), Ministry of Home Affairs, Govt. of India, New Delhi about
such receipt. Non-compliance of the above by the bank will constitute a
violation and will render the defaulting bank liable for appropriate action
by the Reserve Bank of India.

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2.4 Salient Features

Data pertaining to receipt of foreign contribution for 2005-06 has been
compiled. Its salient features are as below:
I. As on 31-03-2006, 32,144 associations were registered and 513 were
granted prior permission during the year 2005-06.
II. For the year 2005-06, 18,570 associations reported receipt of foreign
contribution (including those which received NIL amount) amounting to
Rs7, 877.57 crores.
III. Among the States and Union Territories, Tamil Nadu Rs. 1,609.64
crores reported the highest receipt of foreign contribution followed by
Delhi Rs.1556.46 crores and Andhra Pradesh Rs 1,011.57 crores.
IV. Among the reporting associations, World Vision of India, Tamil Nadu
(Rs.256.41 crores) received the highest amount of foreign contribution
followed by Caritas India, Delhi (Rs. 193.36 crores) and Rural
Development Trust,

2.5 Business Strategy

Knowledge Banking: - One of the strengths and differentiating features
of Yes Bank is its knowledge banking approach that is the essence of all
offerings to its customers. Knowledge has been institutionalized as a key
processes and utilized to create customized solutions for the
clients specific requirements.
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Technology and Operations: - As a new generation Bank, Yes Bank has
the advantage of accessing the latest available technology. The Bank has
taken a calibrated decision to invest in the best IT system and practices
in order to make its technology platform a strategic business tool for
building a competitive advantage.
Responsible Banking: -Yes Bank has a vision to champion
Responsible Banking in India, where the concepts of Corporate Social
Responsibility (CSR) and sustainability are integrated in its Business
focus.
Business Lines: -Yes Bank has four distinct business segments to
effectively service the differentiated needs of its targeted customers.
Corporate and Institutional Banking (C&IB): -To cater to the needs
of large corporate & institutional clients, MNCs, government companies
and PSUs. Bank targets C&IB customers through its multifunctional
branches in the key metropolitican cities.
Emerging Corporate Banking (ECB): -It is dedicated to partner with
growth-focused, fast-paced enterprises, which are emerging as a leader
in their respective business areas.
Business Banking:-To cater to the needs of the small and medium
enterprises (SME), Yes Bank has set up a dedicated business unit to
focus on delivering superior banking solutions specially designed to
meet the varying and dynamic needs of its SME clients.
Retail Banking and Wealth Management:-The Bank intends to
develop Retail Banking into a key value driver. Yes Bank offers its
customers choice & convenience, reflected in its branch layout &
design, product feature /design, options of distribution channels and
superior technology enabled service quality. Yes Bank predominantly
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offers value added retail liability and third party wealth management
products as well as retail asset offerings through its sales and service
network linked to its branches.

Private Banking:- Yes Bank is focusing on personalized relationship

banking for its top end High Net worth customers, supported by
structured financial solutions tailor-made to suit the needs of such
customers.

Product lines:- Yes Bank offers a wide range of fee-based products to

corporate and business banking customers to ensure a high degree of
cross-sell to clients.

Financial Markets:-Yes Bank financial markets was ranked second in

the Best for currency strategy and best for technical analysis
categories at the Asia Money 2005 foreign exchange poll for India.
Transaction Banking: -Yes Bank Transaction banking group has
adopted a consultative approach and focus on knowledge and
relationship banking to enable customers to address strategic financial
and operating needs in the domain of:

Working capital and liquidity management

Asset management
Treasury integration
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Exposure and risk management
Yes Bank proposes to apply industry knowledge and superior technology
for offering innovative structured solutions integral to a companys
financial supply chain.

2.6 Yes International Banking:

- It offers a complete suite of international banking products and
services, driven by state-of-the art technology, which includes Debt,
Trade finance, corporate finance, Investment banking and business
advisory services, treasury and global Indian banking. The Bank also
plans to leverage its international presence, for its capital raising
activities. These services will initially be through partnerships with
international banks and financial institutions followed by the
establishments of branches and representative offices, as per regulatory
approvals.

2.7 Brand Creation:

- The Bank believes that its differentiation begins with its service and
trust mark YES. YES represents the bank true spirit of being serviceoriented. The YES brand creation effort is supported by Triton
Communications, the principal advertising agency and Ad factors PR,
the Banks public relation consultant.

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CHAPTER: 3
Company Profile

Date of Establishment

21-11 2003

Revenue

906.425 ( USD in Millions )

Market Cap

90529.71961215 ( Rs. in Millions )

Corporate Address

Discovery Of India Building,9th Floor

Dr. Annie Besant Road, Nehru Centre
WorliMumbai-400018,
Maharashtra
www.yesbank.in

Management Details

Chairperson - S L Kapur
MD - Rana Kapoor
Directors - Ajay Vohra, Arun K Mago,
Arun Mago, Bharat Patel, Radha Singh,
Rajat Monga, Rana Kapoor, S L Kapur,
Sanjeev Kapoor, Sipko Schat, Wouter
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Koff, Wouter Kolff

Business Operation
Background

Bank Private
Yes Bank, incorporated in 2003 by Rana
Kapoor and Late Ashok Kapur, is a new
age private sector bank. It is the only
bank that has been awarded a greenfield
license by the Reserve Bank of India
(RBI). It offers a full range of products
and services in areas of corporate and
institutional banking, financial markets,
investment banking, corporate finance,
business and transaction banking, retail
and wealth

Financials

Total Income - Rs. 46650.182 Million

( year ending Mar 2011)
Net Profit - Rs. 7271.378 Million ( year
ending Mar 2011)

Company Secretary
Bankers
Auditors

Sanjeev Kapoor
BSR & Co

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=====================================
CHAPTER:4
INDUSTRY PROFILE
4.1 State Bank of India (SBI)
4.2 The SBI Edge
4.3 Working Capital Finance
4.4 Deferred Payment Guarantee (DPG)
4.5 Corporate Term Loan
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4.6 Structured Finance

4.7 Project Finance
4.8 Channel Financing
4.9 Channel Financing

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INDUSTRY PROFILE
The oldest bank in Indian Banking industry is the State Bank of India
being established as the Bank of Bengal in Calcutta in June 1806. The
first fully Indian owned Bank was the Allahabad Bank, which was
established in 1865. By the 1900s, the market expanded with the
establishment of Banks such as Punjab National Bank, in 1895 in
Lahore and Bank of India, in 1906, in Mumbai. The Reserve Bank of
India formally took on the responsibility of regulating the Indian
banking sector from 1935. After Indias independence in 1947, the
Reserve Bank was nationalized and given broader powers. In the early
1990s the then Narsimha Rao government embarked on a policy
of liberalization and gave licenses to a small number of private Banks,
which came to be known as New Generation tech-savvy banks, which
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included banks such as Global Trust Bank (the first of such generation
banks to be set up) which later amalgamated with Oriental Bank of
Commerce, UTI Bank (Now re named as Axis Bank), ICICI Bank and
HDFC Bank. This move, along with the rapid growth in the economy of
India, kick started the Banking sector in India, which has seen rapid
growth with strong contribution from all the three sectors of Banks,
namely Government Banks, Private Banks, and Foreign Banks The next
stage for the Indian Banking has been set up with the proposed
relaxation in the norms for Foreign Direct Investment (F.D.I.), where all
foreign investors in banks may be given voting rights which could
exceed the present cap of 10%, at present it has gone up to 49% with
some restrictions. The new policy shocks the banking sector in India
completely. Bankers, till this time, were used to the 4-6-4 method
(borrowing at 4%; lend at 6%; go home at 4) of functioning. The new
wave ushered in a modern outlook and tech-savvy methods of working
for traditional Banks. All this led to boom in India. People just not
demanded more from their Banks but also received more. In March
2006, the Reserve Bank of India allowed Warburg Pincus to increase its
stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the
first time an investor has been allowed to hold more than 5% in the
private sector Bank since the RBI announced norms in 2005 that any
stake exceeding 5% in the private sector banks would need to be vetted
by them. In (2007), banking in India is generally fairly mature in terms
of supply, product range and reach-even, though reach in rural India still
remains a challenge for the private sector and foreign Banks. In terms of
quality of assets and capital adequacy, Indian Banks are considered to
have clean, strong and transparent balance sheets relative to other Banks
in comparable economies in its region. The Reserve Bank of India is an
autonomous body, with minimal pressure from the government. The
stated policy of the Bank on the Indian Rupee is to manage volatility but
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without any fixed exchange rate and this has mostly been true.
With the growth in the Indian economy expected to be strong for quite
some time especially in its service sector-the demand for Banking
services, especially retail banking, mortgages and investment services
are expected to be strong. One may also expect M&As, takeovers, and
asset sales.
Currently, India has 88 scheduled commercial banks (SCBs)
- 28 public sector banks (that is with the government of India holding a
stake),
- 29 private banks (these do not have government stake; they may be
publicly listed and traded on stock exchanges)
- And 31 foreign banks. They have a combined network of over 53,000
branches and 17,000 ATMs.According to a report by ICRA limited, a
rating agency, the public sector banks hold 75% of total assets of the
banking industry, with the private and foreign banks holding 18.2% and
6.5% respectively. The annual growth in bank credit to the commercial
sector is at 25.4% as on March 31, 2007 and was lower than 27.2%
against previous year. Till 2010, retail banking is expected to grow at a
CAGR (compounded average growth rate) of 28% to touch a figure of
INR 9,700 billion. This requires expansion and diversification of retail
product portfolio, better penetration and faster service mechanism. The
report on Retail Banking industry in India covers industry segments like
housing loan, auto loan, personal loan, education loan, consumer durable
loan, credit card and regulatory frame work for retail Banks is also
discussed. The report gives retail banking industrys current performance
and future outlook. Total 22 major retail Banks in India are covered in
terms of their performance, strategy and outlook. In absolute terms,
Indias banking sector enjoyed reasonable growth through the year to
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December 31 2007. In local currency terms, total assets, total loans and
total deposits increased by 23%, 21%, and 26%, respectively. The
loan/deposit, loan/asset ratio fell while the loan/GDP ratio rose.

4.1 State Bank of India (SBI)

State Bank of India is the Indias largest Bank. It has largest branch
network all over the country with its special products like :
Personal Banking
Deposit Schemes
Personal Finance
Agricultural/Rural Banking
Micro Credit
Regional Rural Bank
NRI Services
International Banking
Trade Finance
Merchant Banking
Correspondent Banking
The SBIs powerful corporate banking formation deploys multiple
channels to deliver integrated solutions for all financial challenges faced
by the corporate universe. The Corporate Banking group and the
National Banking group are the primary delivery channels for corporate
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banking products. The Corporate Banking Group consists of dedicated
Strategic Business Units that cater exclusively to specific client groups
or specialize in particular product clusters. Foremost among these
specialized groups is the Corporate Accounts Group (CAG), focusing on
the prime corporate and institutional clients of the countrys biggest
business centers. The others are the Project Finance unit and the Leasing
Unit. The National Banking Group also delivers the entire spectrum of
corporate banking products to other corporate clients, on a nationwide
platform. Complete Range of Products and Services The SBI offers an
exhaustive range of financial products and services that answers any
business or market circumstance, backed by an assublack expertise in
customizing the product to meet the most sensitive specificities of each
client and each business context. Its team of highly skilled and
experienced product specialists can help its customers in forecast
structure complex transaction requirements.

4.2 The SBI Edge

Commanding unsurpassed respect and legacy in the Indian financial
expanse, the SBI is committed to provide the financial solutions that
extract maximum value from business and market situations. While the
Bank is strongly positioned to structure financial packages that
anticipate the changing business environment, its vast network-the
worlds largest-ensures delivery channels of unmatched reach, both in
India and abroad.

4.3 Working Capital Finance

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SBI offers working capital finance to meet the entire range of short term
fund requirements that arise within a corporate day to day operational
cycle. The SBI working capital loans help the companies in financing
inventories, managing internal cash flows, supporting supply chains,
funding production, and marketing operations, providing cash support to
business expansion and carrying current assets. SBIs working finance
products comprise a spectrum of funded and non-funded facilities
ranging from cash credit to structured loans, to meet the different
demands from all segments of industry, trade and the services sector.
Funded facilities include cash credit, demand loan and bill discounting.
Demand loans are considered also under the FCNR (B)(Foreign
currency from Non Resident) scheme. Non-funded instruments comprise
letters of credit (inland and overseas) as well as bank guarantees
(performance and financial) to cover advance payments, bid bonds etc.

4.4 Project Finance

The SBI has formed a dedicated Project Finance Strategic Business Unit
to assess credit proposals from and extend term loans for large industrial
and infrastructure projects. Apart from this, project term loans for
medium sized projects and similar clients are delivered through the CAG
(Corporate Accounts Group) and NBG (National Banking group).In
general, project finance covers Greenfield industrial projects, capacity
expansion at existing manufacturing units, construction ventures or other
infrastructure projects. Capital intensive business expansion and
diversification as well as replacement of equipment may be financed
through the project term loans. Project finance is quite often channeled
through special purpose vehicles and arranged against the future cash
streams to emerge from the project. The loans are approved on the basis
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of strong in house appraisal of the cost and viability of the ventures as
well as the credit standing of promoters.

4.5 Deferred Payment Guarantee (DPG)

SBI can extend deferred payment guarantees to industrial projects for

obtaining imported equipment. The DPG is a standby credit
guaranteeing deferred payments, usually for payments for capital goods,
turnkey contracts etc.

4.6 Corporate Term Loan

The SBI corporate term loans can support company in funding ongoing
business expansion, repaying high cost debt, technology up gradation,
R&D expenditure, leveraging specific cash streams that accrue into the
company, implementing early retirement schemes and supplementing
working capital. Corporate term loans can bestructured under the FCNR
(B) scheme as well, with the option of switching the currency
denomination at the end of the interest periods. This will help you take
advantage of global interest rate trends vis--vis domestic rates to
minimize your debt cost. The Banks corporate term loans are generally
available for tenures from three to five years, synchronized with your
specific needs. SBI corporate term loans can have a bullet or periodic
repayment schedule as required by the client. The repayment mode may
be linked to the cash accruals of the company. The Banks expert credit
crew gauges the applicants particular fund requirements and evaluates
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the companys credit worthiness, factoring in the cash flows generated
by it.

4.7 Structured Finance

SBI structured finance involves assembling unique credit configurations

to meet the complex fund requirements of large industrial and
infrastructure projects. Structured finance can be a combination of
funded and non-funded facilities as well as other credit enhancement
tools, lease contracts for instance, to fit the multi layer financial
requirements of large and long-gestation projects.
Being Indias largest bank and with the rich experience that it brings
with it, SBI commands formidable expertise in engineering financial
packages that address complex requirements with minimum risk.
Further, SBI has firm relationships across the financial map of the world,
which can be leveraged to structure solutions that may necessitate the
participation of several credit agencies.

4.8 Channel Financing

Channel financing is an innovative finance mechanism by which the
bank meets the various fund necessities along customer supply chain at
the suppliers end itself, thus helping them sustain a seamless business
flow along the arteries of the enterprise. Channel finance ensures the
immediate realization of sales proceeds for the SBI clients supplier,
making it practically a cash sale. On the other hand, the corporate gets
credit for a duration equaling the tenure of the loan, enabling smoother
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liquidity management. SBI has the worlds largest banking network of
over 9,000 branches and this enables it to deliver the financial solution at
suppliers doorstep, across the span of the country. Equipment Leasing
The SBIs has deployed a dedicated strategic business unit for lease
financing that is richly experienced in arranging lease contracts for
procuring expensive equipment for clients project or plant. At SBI, lease
agreements as standalone contracts or as part of a structured package are
arranged.

4.9 Industrial Credit& Investment Corporation of India ICICI

Bank

ICICI Bank is Indias second largest bank with total assets of Rs.3,
997.95 Billion
(US$100 billion) at March 31, 2008 and profit after tax of Rs.41.58
billion for the year ended March 31, 2008. ICICI Bank is second
amongst all the companies listed on the Indian stock exchanges in terms
of free float market capitalization. The Bank has a network of about
1308 branches and 3950 ATMs in India and presence in 18 countries.
ICICI Bank offers a wide range of banking products and financial
services to corporate and retail customers through a variety of delivery
channels and through its specialized subsidiaries and affiliates in the
areas of Investment banking, life and non life insurance, venture capital
and asset management. The Bank currently has subsidiaries in the
United Kingdom, Russia, and Canada, branches in United States,
Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai
International finance centre and representative offices in United Arab
Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and
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Indonesia. UK subsidiary has established branches in Belgium and
Germany.
ICICI Banks equity shares are listed in India on Bombay Stock
Exchange and the National Stock Exchange of India Limited and its
American Depositary Receipts (ADRs) are listed on the New York
Stock Exchange (NYSE).ICICI Bank was originally promoted in 1994
by ICICI Limited, an Indian financial institution, and was its whollyowned subsidiary. ICICIs shareholding in ICICI Bank was reduced to
46% through a public offering of shares in India in fiscal 1998, an equity
offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI
Banks acquisition of Bank of Madura Limited in all stock
amalgamation in fiscal 2001, and secondary market sales by ICICI to
institutional investor in fiscal 2001 and fiscal 2002. ICICI was formed to
in 1955 at the initiative of the World Bank, the Government of India and
representatives of Indian Industry. The principal objective was to create
a development financial institution for providing medium term and long
term project financing to Indian businesses.
In the 1990s, ICICI transformed its business from a development
financial institution offering only project finance to a diversified
financial services group offering a wide range of products and services,
both directly and through a number of subsidiaries and affiliates like
ICICI Bank in 1999, ICICI become the first Indian company and the first
bank or financial institution from non-Japan Asia to be listed on the
NYSE. After consideration of various corporate structuring alternatives
in the context of the emerging competitive scenario in the Indian
Banking industry, and the move towards universal banking, the
managements of ICICI and ICICI Bank formed the view that the merger
of ICICI with ICICI Bank would be the optimal legal structure for the
ICICI groups universal banking strategy. The merger would
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enhance value for ICICI shareholders through the merged entitys
access to low cost deposits, greater opportunities for earning fee
based income and the ability to participate in the payment system and
provide transaction banking services. The merger would enhance value
for ICICI Bank shareholders through a large capital base and scale of
operations, seamless access to ICICIs strong corporate relationships
built up over five decades, entry into new business segments, higher
market share in various business segments, particularly fee-based
services, and access to the vast talent pool of ICICI and its subsidiaries.
In October 2001, the boards of directors of ICICI and ICICI bank
approved the merger of ICICI and two of its wholly-owned retail finance
subsidiaries, ICICI personal financial services limited and ICICI capital
services limited with ICICI bank. The merger was approved by
shareholders of ICICI and ICICI bank in January 2002, by the high court
of Gujarat at Ahmedabad in March 2002, and by the high court of
judicature at Mumbai and the Reserve Bank of India in April 2002.
Consequent to the merger, the ICICI groups financing and banking
operations, both wholesale and retail, have been integrated in a single
entity.

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CHAPTER:5
OBJECTIVE OF THE STUDY

Main objective:
Objective of the study is to look for the banking opportunities in FCRA
accounts of charitable institutions for the Yes Bank. With the increasing
number of organizations taking the FCRA registration, Bank is interested
in having the business with the NGOs in Delhi and NCR.
1. Objective of the study aims at the 360 degree knowledge to the target
business. It includes the MHA (Ministry of Home Affairs), NGOs and
various banks giving such type of services to take detail know how and
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should reach at a decision to be taken by the bank after concluding the
study.
2. To operate the FCRA accounts in accordance with the rules and
guidelines mentioned in the FCRA 1976.

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CHAPTER:6
RESEARCH METHODOLOGY
6.1 Analytical Tools
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6.2 Data collection

=====================================

Research in general refers to the search of knowledge. One can also

define research as a scientific & systematic collection of information.In
simple words research is the careful investigation or enquiry of markets
especially through search for new facts in any branch of knowledge.

6.1 Analytical Tools

Microsoft Excel (PivotChart Reports). A PivotChart Report is an

interactive chart that quickly combines and compares large amounts of
data from tables in excel. PivotChart report was used here to analyze
related totals, because there was a long list of figures to sum and there
was a need to compare several facts about each figure. Because a
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PivotChart report is interactive, it has flexibility to change the view of
the data to see more details or calculate different summaries, such as
counts or averages. Drop fields feature wasextensively used for the
report creation. Essentially it is an area in a PivotChart report where we
can drop fields from the Field List dialog box to display the data in the
field.
6.2 DATA COLLECTION
Data can be collected by using two well known methods: Primary &
Secondary. In primary data collection, you collect the data yourself
using methods such as interviews and questionnaires. The key point here
is that the data you collect is unique to you and your research and, until
you publish, no one else has access to it. There are many methods of
collecting primary data and the main methods include:
Questionnaires
One-to-one interviews
Group interviews
Observation
Case-studies
Diaries
Critical incidents
Portfolios
Secondary data is data that has already been collected by someone else
for a different purpose to yours. For example, this could mean using:

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Data collected by a hotel on its customers through its guest history
system
Data supplied by a marketing organization
Annual company reports
Government statistics.
Primary data collection method used for this project. I used
questionnaire method which is also known as scheduling method for
primary data collection in the research process. To know the exact
details regarding FCRA accounts in Banks 360 degree approach is being
used as the FCRA department, Banks, and NGOs are surveyed to take
the required Secondary Data is also used for the purpose of completion
of project which includes Internet, Centre for policy Research, and
FCRA department.

CHAPTER:7
SAMPLING AND SAMPLING DESIGN

The procedure by which a few fields are chosen from the data to be
studied in such as way that the sample can be used to estimate the same
characteristics in the total is referred to as sampling. The advantages of
using samples are that it is much less costly, quicker and, if selected
properly, gives results with known accuracy that can be calculated
mathematically. Even for relatively small samples, accuracy does not
suffer even though precision or the amount of detailed information
obtained, might. These are important considerations, since most research
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projects have both budget and time constraints. Sampling process is
taking a sample out of the universe population to take a decision
regarding the population. Instead of surveying the whole population we
take only a few persons for our topic to have a general idea of the
subject related. In the project I took a sample of three Banks for a
general idea of the FCRA accounts and made our study reach a
conclusion.
These three banks are
1. HDFC BANK
2. STANDARD CHARTERED
3. CORPORATION BANK
For the charitable institutions and NGOs who are reporting to the FCRA
Department to be studied I took a sample of 11 organizations from the
NCR

CHAPTER:8
TIME PERIOD OF STUDY

June, 9-14, 2008

Gathering information regarding the Act, Rules, Bill, with help of the
secondary mediums.

June, 16-18, 2008

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Meeting FCRA, Ministry of Home Affairs official collecting the
necessary &current information regarding the Act.

June, 19-23, 2008

Visiting various banks like Standard Charted Bank, HDFC Bank,
Corporation Bank and other banks which offer special services to the
charitable institutions in regards to FCRA & collecting the necessary
details.

June, 24-4 July, 2008

Meeting the officials of various charitable trusts and such institutions
who are registered with FCRA and having the present banking
arrangements.

CHAPTER:9
AREAS OF STUDY
Study of the project started from the Regional office of the Bank at 48,
Nayaya Marg Chanakyapuri New Delhi. Main centre of the study was
around the office like visiting the FCRA office from the Bank and then
meeting the different charitable institutions and also the different Banks
providing the same services in the area of Delhi and NCR. Area includes
the different parts of New Delhi few of them are
Connaught Circus
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Safdarjung Enclave
Janakpuri
Ashok palace
Bhai Veer Singh Marg
Lodhi Road

=====================================
CHAPTER 10
Comparison of the FCRA accounts offered by
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different Banks
10.1 Standard Chartered Bank
10.2 HDFC Bank
10.3 Corporation Bank

=====================================

10.1 Standard Chartered Bank

Savings Account
Cash withdrawal allowed
Special team targeting NGOs for FCRA accounts.
Compliance team at Bombay is reporting RBI and central government
for MIS of the accounts.

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Special care in case of Prior permission obtained by organization from
central government.

10.2 HDFC Bank

Savings Account
Cash withdrawal not allowed
Consultancy services as extra benefits to the account.
Special team for FCRA accounts.
Reporting regularly to central government and RBI
Special care in case of Prior permission obtained by organization from
central government.

10.3 Corporation Bank

Savings Account
Cash withdrawal allowed
No special team.
International Banking Division (IBD) is contacting central government
for FCRA accounts MIS.
Special care in case of Prior permission obtained by organization from
central government.
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CHAPTER 11
LIMITATIONS OF THE STUDY

1. General survey is more biased: General Survey is more biased

because few charitable institutions were not ready to give the exact
financial details.

2. Less responsive communication: General Survey was found to be less

responsive because of the reason that institutions &organizations did not
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want to respond to the questionnaire due to lack of time & non
willingness.

3.Time consuming: The General Survey was time consuming because it

take time to reach to different charitable institutions & ask them certain
related questions in there different areas.

ANNEXURE
QUESTIONS FOR CHARITABLE INSTITUTIONS.
1. Satisfaction level with the services provided by your present Banker!
a) Poor
b) Average
c) Good
d) Excellent
2. Online services given by the FCRA department is helpful to
organization.
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a) Yes
b) No
4. Response level of the FCRA department to the queries and filling of
different returns?
a) Poor
b) Average
c) Good
d) Excellent

REPORT ANALYSIS
Answer :
1.

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40
35
30
25
20
15
10
5
0
Poor

Average

Good

Excellent

Poor :20%
Average:30%
Good:35%
Excellent:12%

2:
Yes
18%

NO
Yes
NO
82%

3:

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40
35
30
25
20
15
10
5
0
Poor

Average

Good

Poor:35%
Average:25%
Good: 18%
Excellent:24%

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CONCLUSION

CONCLUSION
On the basis of study it is concluded that going towards the FCRA
product will be a good move by the bank as there is large number of
NGOs in NCR region which are actively performing their projects, as
they are receiving foreign funds through FCRA accounts in banks then it
can be a source of foreign funds for the bank. There were 1120 FCRA
accounts which reported to the department in year 2005-06 and these
accounts have received 1557 crores in NCR.
VANI (Voluntary Action Network India) is the active NGO forum in
NCR, It is better to introduce our new product through Forum and target
our potential customers through this platform. In this forum most of the
NGOs and charitable institution are members, in this way Yes Bank can
have business with them. Special team is required to target the FCRA
accounts of public sector banks as they are not having any special team
to handle them, but private sector banks like Standard Chartered, HDFC
are having special team for this segment. YBL need to have
Special FCRA product
Special team
Target to public sector banks having FCRA accounts

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Reference
1. KOTLER, PHILIP; Marketing Management, 11th Edition New
Delhi, Prentice Hall of India, 2002.
2. RAMASWAMY, VS & NAMAKUMARI, S; Marketing Management:
Planning, Implementation & Control, 3rd Edition New Delhi,
Macmillan.
3. ZIKMUND, G WILLIAM, Marketing, 7th Edition, Thomson
learning, Mumbai.
4. COOPER & SCHINDLER, Research Methodology Method,
TMH,6th Edition.
5. KOTHARI, C.R; Research Methodology, Wishawa Parkashan, 2nd
Edition.
6. SALKIND, NEIL, Exploring Research, 3rd Edition, Prentice Hall, NJ,
1997.
Websites:
www.yesbank.in
www.mha.nic.in
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