Banking Sector

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Introduction

Definition of bank:

A bank is a financial intermediary which accepts deposits and in turn converts the deposits into lending

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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

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Banking Sector in India

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Reserve Bank of India

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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

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Current Scenario
Success : A road ahead
Banks Shares of new private assets Average capital adequate ratio for consumers Gross NPAs for commercial banks Returns on assets of commercial bank 1997 2.6% 10.4% 15.7% 0.4% (1991) 2009 15.2% 13.03% 2.3% 1.0%

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Top 3 Private Banks of India

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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

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SWOT

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

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SWOT

Advent Threatsof MNC Dissatisfied customers Opportunities banks of other banks customers Dissatisfied Bank improving services Ever insurance nationalized banks Increase in percentage of returns Business advising for smaller players

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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

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SWOT

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

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SWOT

Very high Threats competition Scope to expand to larger Opportunities prevailing in the industry areas Lack of infrastructure Potential to attract more customers from overseas

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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

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SWOT

Low market Capitalization Weaknesses Support of various promoters Not been able to Fully High Level of Services position itself correctly Knowledge of Indian

Stren gths
Less Popular Market

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SWOT

Competitors Threats Growing Indian Opportunities Banking Sector Future Market Trends People becoming more service oriented Global Market

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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

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Challenges

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

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Future for an MBA

Add new professionals Globally competitive market Deploy suitable strategies

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Future for an MBA

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Conclusion

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Thank You

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