Core Competencies

Bankworld Inc. provides advisory services, technical assistance and training in:

Commercial Banking

 Strategic planning
 Lending, asset / liability management, and risk management
 Accounting, internal audit and controls reform
 Marketing, development of a sales culture, and relationship management
 Product development and diversification
 Management information systems, automation, e-banking and operations
 Branch administration
 Governance
 Organizational development and human resources management
 Privatization, restructuring, acquisition and merger
 Bankers’ associations and training institutes

Central Banks / Bank Supervision

 Policies, laws and regulations

 Procedures and practices in on-site and off-site supervision
 Risk-based supervision and consolidated supervision
 Enforcement
 Problem bank resolution: rehabilitation, recapitalization and liquidation
 Monetary policy / macroeconomic reform
 Currency issuance and operations
 Human resources management
 Payment systems / information technology

Capital Markets

 Policies, laws and regulations

 Securities commissions
 Stock exchanges
 Corporate governance
 Self-regulatory organizations
 Brokers/dealers

Public-Private Partnerships (PPP)

 PPP best practices in infrastructure development and finance

 Establishing PPP units and project development facilities (PDF)
 PDF and sponsoring agencies advisory support
 Sector-specific advisory support
 Infrastructure projects audit
  

Insurance
  Policies, laws and regulations
 Financial and market conduct examinations; early warning systems
 Institutional strengthening
 Life, health, property and micro-insurance products development
 Actuarial assistance and pricing

Non-Bank Financial Services

 Laws, regulations and supervision

 Institutional strengthening
 Pension systems and products development

Micro, Small and Medium-sized Enterprises (MSME) Financing

 Fostering MSME access to finance

 Financial services for microenterprises and the poor
 Institutional strengthening in lending to MSMEs, rural finance and trade finance
 Strengthening microfinance enabling environment

Enterprise and Export Development

 Enterprise development, trade and competitiveness

 Planning, finance, marketing, operations and general management
 Entrepreneurial skills, success-orientation and self-development

Accounting and Audit

 International Accounting Standards

 International Standards of Auditing
 IAS-based charts of accounts development and implementation
 Self-regulating organizations

Anti-Money Laundering 

 Laws and best practices

 Compliance with FATF, EU Directives, and the US Patriot Act
 Know Your X programs
 Financial intelligence units
 Use of technology in money laundering prevention

Public Administration and Finance 

 Governance
 Budgeting, revenue enhancement and expense control
 Intergovernmental relations
 Infrastructure finance
 Anti-corruption strategies
India's leading housing finance company in terms of deposits and loan disbursements,
positioned itself as a group of companies with each subsidiary offering specialised products. It
focused on generating synergies of universal banking by cross-selling its products across its
subsidiaries without actually merging into a single entity.

Business model of HDFC Bank

Currently, HDFC offers a range of financial services and products from

various companies within the group. The idea of separate companies is
to allow each to specialise in a core competence. We have looked at
the concept of a universal, single entity but realised it makes more
sense to have separate legal entities with HDFC on the top, holding
equity in each.

operational efficiencies and synergies 

 Lower cost of funding than other banks

 lowest cost-income ratio in Asia.
 expenses constitute just 14 per cent of net interest income.
 For banks, the ratio is over 50 per cent.
 While they spend 0.51 per cent of their assets on total expenses,
most banks spend between 2.3-3 per cent of their assets — a
gap of 200 basis points between their operating costs and that of
a bank.
 They do not take on any interest rate risk. Loans given on
floating rate basis on the asset side, are funded on the liability
side by an equivalent amount of floating rate liability. Fixed rate
liabilities are used to fund fixed rate assets. So, whether interest
rates come down or go up, their spreads remain protected.
 Seven per cent of their funding is international funding, all of
which has been swapped into rupees. So, they do not take a
foreign exchange risk. Today, because the LIBOR is so low, the
US dollar LIBOR is two per cent, and if they were to go to the
market to raise funds, they will have to do it at three per cent in
dollar terms. Theoretically, one can raise three per cent money
and use it to extend 15-year housing loans in rupees. It is taking
a mismatch. The same mismatch, that banks take when they use
current account and savings account money for long-term loans.
But we do not take that risk. All their foreign currency borrowings
are swapped into rupees, and so all their liabilities are in rupees.
Because assets are in rupees, liabilities are in rupees.
 The fourth risk is credit risk. They again do not have a credit
risk. Their total non-performing loans are 0.81 per cent of the
assets — 100 per cent provided for, so on a net basis the NPAs
are zero.
