Banking Sector

Introduction
• Definition of bank:

“A bank is a financial intermediary which accepts

deposits and in turn converts the deposits
into lending”
 Functions of Bank
• Accepting deposit from people and others(deposit)
• Lending money to public (loan)
• Transferring money from 1 place 2 another
• Credit creation
• Acting as a trustee
• Keeping valuable in safe custody
• Investment decisions and analysis
• Other types of lending and transaction
 Banking Sector in India
Banking structure in
India

Public Private Co-operative Rural Foreign

Bank of
Marathwada
Maharashtra ING Vysya Saraswat Co-op HSBC
Gramin Bank
Central Bank of Federal Bank TJSB Citibank
India Thane Gramin Bank
Reserve Bank of India
FORMULATE
AND
IMPLEMENT

BANKER TO REGULATE
CENTRAL & AND
STATE GOVT. SUPERVISE

ROLE

MANAGE
ISSUE AND
FOREIGN
EXCHANGE
EXCHANGE
 Current Scenario
• The Present Status
• Major contributor
• The percent contributed to the economy: 2.5%
• Still dominated by Government Banks
• Competition
• Increase in share value
 Current Scenario
Success : A road ahead…
Banks 1997 2009

Shares of new private assets 2.6% 15.2%

Average capital adequate ratio for consumers 10.4% 13.03%

Gross NPA’s for commercial banks 15.7% 2.3%

Returns on assets of commercial bank 0.4% 1.0%

(1991)
Top 3 Private Banks of India
• Largest private sector bank in India
• Total asset of Rs. 3,674.19 billion
• Network of 1,600 branches with about 5000 ATMS
• 21% Increase in profit after tax to Rs 8.78 billion in
Q1 2010
 SWOT

Strengths Weaknesses
• Market share • High Transaction cost
• Huge network • Focus only on high end
• Salary account customers
• Working hours • Poor customer
• Aggressive marketing care/service
 SWOT

Opportunities
• Dissatisfied customers of
other banks
• Bank –insurance services
• Increase in percentage of
returns
• Business advising for
smaller players
Threats
• Advent of MNC banks
• Dissatisfied customers
• Ever improving
nationalized banks
• One of the first bank to be listed on NYSE in 2001
• Among the first companies to receive an 'in
principle' approval from the Reserve Bank of India
(RBI).
• Times Bank Limited was merged with HDFC Bank
Ltd., in 2000
• The Bank has an network of 1,725 branches spread
in 771 cities across India
• The Bank also has 3,898 networked ATMs across
these cities
 SWOT

Strengths Weaknesses
• Right strategy • Some gaps in range for certain
• Great Brand Image.
sectors
• High degree of customer
satisfaction • Customer service staff need
• Good working environment
training
• Lower response time with efficient
and effective service. • Management cover insufficient
• Dedicated workforce
 SWOT

Opportunities Threats
• Scope to expand to larger • Very high competition
areas prevailing in the industry

• Potential to attract more • Lack of infrastructure

customers from overseas
• Began operation in 1994
• Was earlier known as UTI Bank

• Total Income as on 31/03/2009 is Rs.13,745.04

crore
• Net Profit as on 31/03/2009 is Rs 1812.93 crore
• MD and CEO is Shikha Sharma

• Head Quarter in Mumbai

 SWOT

Strengths Weaknesses
• Support of various
• Low market Capitalization
promoters
• Not been able to Fully
• High Level of Services
• Knowledge of Indian position itself correctly
Market • Less Popular
 SWOT

Opportunities Threats
• Growing Indian Banking
• Competitors
Sector
• Future Market Trends
• People becoming more
service oriented
• Global Market
Future of Banking Sector in India
• Mortgages to cross Rs 40 Trillion by 2020
• Wealth management will be big business with 10x growth
• The Next Billion will be the largest segment
• The branches to grow by 2x and ATMs by 5x
• Mobile Banking to see huge growth
• New Models to serve Small and Medium Enterprise
• Investment Banking to grow by 10 folds
 Challenges

• Financial Inclusion
• The HR challenge in the Public Sector
• New entrance

• Technology
 Future for an MBA
• Add new professionals

• Globally competitive market

• Deploy suitable strategies

Future for an MBA
Finance
• Reorganizing the financial system
• Improvise their nose-dived profit graph

Marketing
• Market Investment Product
• Direct selling agents

HR
• Sustainability of bank
• Challenges in recruiting, training, and developing
Conclusion
Thank You