Project Report: Post Garduate Diploma in Business Admnistration (PGDBM)
Project Report: Post Garduate Diploma in Business Admnistration (PGDBM)
Project Report: Post Garduate Diploma in Business Admnistration (PGDBM)
Project Report
ON
SUBMITTED BY
Roshan Ara
0621000460
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INDIAN BANKING SYSTEM 0621000460
EXECUTIVE SUMMARY
Banking in India originated in the first decade of 18 century with The General Bank of
India coming into existence in1786. This was followed by Bank of Hindustan. Both
these banks are now defunct. The oldest bank in existence in India is the State Bank of
India being established as "The Bank of Bengal" in Calcutta in June 1806.
The Reserve Bank of India formally took on the responsibility of regulating the Indian
banking sectorfrom1935. After India's independence 1947, the Reserve Bank was
nationalized and given broader powers.
Currently (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 without any fixed exchange rate-and this has
mostly been true.
The Modern Banking Functions are Fund based and Non-Fund based functions. These
functions of a bank are those in which banks extend various services to their customers or
add their commitments to certain transactions undertaken by their clients and charge their
fees/ commissions for the services rendered by them / their commitments added to the
transactions undertaken by the clients. The activities popularly known as ‘Non-fund
facilities’ provided by Banks.
Thus, we conclude……………………………
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TABLE OF CONTENTS
1. INTRODUCTION -
Objectives of the study 5
Scope of study 6
Limitations of study 7
2. INDIAN BANKS –
Scope of Indian Bank 8
Banking in India 9
Definition of Banks 11
Types of Bank 12
Services Provided by Banks 13
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ACKNOWLEDGEMENT
Lastly I would like to thank all the respondents who offered their opinions and
suggestions through the survey that was conducted by me.
( Roshan Ara )
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Though the Indian Banking System is very wide and elaborated, still the project
The study aims at learning the techniques involved to manage the various types of
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A healthy banking system is essential for any economy striving to achieve good
growth and yet remain stable in an increasingly global business environment.
The Indian banking system, with one of the largest banking networks in the
world, has witnessed a series of reforms over the past few years like the
deregulation of interest rates, dilution of the government stake in public sector
banks (PSBs), and the increased participation of private sector banks. The
growth of the retail financial services sector has been a key development on the
market front. Indian banks (both public and private) have not only been keen to
tap the domestic market but also to compete in the global market place.
Studying the increasing business scope of the bank.
Market segmentation to find the potential customers for the bank.
Customers’ perception on the various products of the bank.
The corporate sector has stepped up its demand for credit to fund its expansion
plans; there has also been a growth in retail banking.
Nationalise Bank
Private Bank
Within each of these broad groups, an attempt has been made to cover as
comprehensively as possible, under the various sub-groups.
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LIMITATION OF THE STUDY: Every work has its own limitation. Limitations
are extent to which the process should not exceed. Limitations of this project are:-
1. The project was constrained by time limit of two months.
2. The major limitation of this study shall be data availability as the data is
proprietary and not readily shared for dissemination.
4. Each bank, in conforming to the RBI guidelines, may develop its own methods for
measuring and managing risk.
6. The conclusion made is based on a sample study and does not apply to all the
Individuals.
7. In India the banks are being segregated in different groups. Each group has their
own benefits and limitations in operating in India.
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PROBLEMS: -- The corporate sector has stepped up its demand for credit to fund its
expansion plans, there has also been a growth in retail banking. However, even as the
opportunities increase, there are some issues and challenges that Indian banks will have
to contend with if they are to emerge successful in the medium to long term.
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RESEARCH METHODOLOGY:-
The first stage included the introduction of Indian Banks and how they work in India. I
choose five criteria Growth, Credit quality, Strength, Profitability, Efficiency /
Profitability. The next stage involved determining the objectives of the study, drafting a
questionnaire will be designed keeping in mind the target audience and objectives of the
study. It will non-disguised in nature and will include a few open-ended questions.
DATA COLLECTIONS
Primary data
The primary data will be collected through the questionnaire designed. In the process of
data collection we went to the respective bank to get the questionnaire filled. The
preparation of the project report required me to visit the various other companies like
Punjab National Bank, ICICI bank , State Bank of India, Central Bank, IDBI bank etc. in
order to collect data.
Secondary data
The Preparation of the project report also required data from various journals,
newspapers ( like The Economic Times, Times of India etc.) books ( like Working
Capital Management written by Sarbesh Mishra and Financial Service written by M Y
Khan etc.)
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Banking business has a history of over 200 years. From the times of the Bank
of Bengal (1806) the sector has been witnessing qualitative and quantitative changes.
Main players during the pre-independence period were Credit Lyonnais, Allahabad
Bank, Punjab National Bank and Bank of India. With 1935 regulation the Reserve
Bank of India was proclaimed the Central Bank of India and was vested with
controlling powers over the commercial banks.
The drastic development taken place during the first 25 years since
independence was Nationalization of many private banks. With this, the central
government became major policy maker for these nationalized banks
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BANKING IN INDIA
Banking in India originated in the first decade of 18th century with The
General Bank of India coming into existence in 1786. This was followed by Bank of
Hindustan. Both these banks are now defunct. The oldest bank in existence in India is
the State Bank of India being established as "The Bank of Bengal" in Calcutta in June
1806. A couple of decades later, foreign banks like Credit Lyonnais started their
Calcutta operations in the 1850s. At that point of time, Calcutta was the most active
trading port, mainly due to the trade of the British Empire, and due to which banking
activity took roots there and prospered. 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 -
both of which were founded under private ownership. The Reserve Bank of India
formally took on the responsibility of regulating the Indian banking sector from 1935.
After India's independence in 1947, the Reserve Bank was nationalized and given
broader powers.
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Scheduled Banks
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INTRODUCTION
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Bank of
Bengal
Bank of
Madras
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Types of banking
Commercial bank has two meanings:
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Banking Services
The difference between fund-based and non-fund based credit assistance lies mainly
in the cash outflow. While the former involves all immediate cash outflow, the latter
may or may not involve cash outflow from a banker. In other words, a fund based
credit facility to a borrower would result in depletion of actual liquidity of a banker
immediately whereas grant of non-fund based credit facilities to a borrower may or
may not affect the banker’s liquidity.
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Fund based functions of a bank are those in which banks make deployment of their
funds either by granting advances or by making investments for meeting gaps in
funds requirements of their customers/ borrowers. Fund-based functions of a bank
may be classified into two parts:-
Granting of Loans and Advances
Making Investments in shares/ debentures/ bonds.
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available to build its business. The number can be positive or negative, depending
on how much debt the company is carrying. In general, companies that have a lot
of working capital will be more successful since they can expand and improve
their operations. Companies with negative working capital may lack the funds
necessary for growth, also called net current assets or current capital.
I. Cash Credit:- This facility is given by the banker to the customer by way of a
certain amount of credit facility. Its limit is fixed on the basis of security of the
company`s current assets.
II. Overdraft:- Banks allow selected customers to write cheques in excess of the
balance in their current account, ie, to overdraw. Overdrafts are arranged up to limits
which depend on the customer's credit standing and the bank manager's humour. The
arrangements allow flexibility in the amount spent and, equally, allow flexibility in
repayments (although technically a bank can demand repayment of an overdraft
within 24 hours). In that respect overdrafts are unlike personal loans, which are
structured with regular repayments. Interest on overdrafts is charged on the
fluctuating daily balance.
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B. Tem Loans:- A bank loan to a company, with a fixed maturity and often featuring
amortization of principal. If this loan is in the form of a line of credit, the funds are drawn
down shortly after the agreement is signed. Otherwise, the borrower usually uses the
funds from the loan soon after they become available. Bank term loans are very a
common kind of lending.
III. Project Finance:- Financing arrangements where the funds are made available for a
specific purpose (the project), with the loan repayments geared to the project's cashflow.
Project finance is used in connection with raising large amounts of money for big-ticket,
energy-related facilities. The term has come to be loosely applied to various forms of
financing. 'A financing of a particular economic unit in which a lender is satisfied to look
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initially to the cashflows and earnings of that economic unit as the source of funds from
which a loan will be repaid and to the assets of the economic unit as collateral for the
loan.'
V. Housing Loans:-
3. Personal Loans Segment:- Loan granted for personal, family, or household use,
as distinguished from a loan financing a business. Though in some situations the
lender may require a co-signer or guarantor. If unsecured, the loan is made on the
basis of the borrower's integrity and ability to Pay. Generally, these loans are used
for debt consolidation, or to pay for vacations, education expenses, or medical
bills, and are amortized over a fixed term with regular payments of principal and
interest.
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The borrowers need such facilities not only for purchases of current assets or
financing there of or take benefit of certain services with the help of non-fund based
facilities. They also need the facilities for acquisition of fixed assets including their
financing.
RBI NORMS:
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Prudential exposure norms as per extant guidelines of Reserve Bank of India provides
that the maximum exposure of a bank for all its Fund based and Non-fund based credit
facilities, investments, underwriting, investments in Bonds and commercial paper and
any other commitment should not exceed 25 percent of its (bank's) net worth to an
individual borrower and 50 percent of its, net worth to a 'group'. It may however, be
rioted that while calculating exposure, the Non-fund based facilities are to be taken at 50
percent of the sanctioned limit. To illustrate the point let us consider the following
example:-
Example1.
Particulars Rs. Rs. In
crores
657
Maximum exposure permitted for all borrowers
350
under the same group (50% of net worth of the bank)
Example1.
Particulars Rs.
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200
Total 200
Total 150
Total credit limits to the above borrower are Rs.200 crores which are in excess of the
maximum exposure norm of Rs. 175 crores. but for the purpose of determining exposure
we have taken non-fund based limits at 50 percent of itsvalue and total exposure is taken
at 150 crores which is well within the norm.
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(SBK), on behalf of the Buyer's Banker (BBK) immediately, as has been, in turn,
undertaken by the buyer to his own Banker(BBK).
Bank guarantee: - It is customary for the Bank, in normal course of business, to issue
and execute guarantees in favor of third parties on behalf of the customers. The Bank
guarantees are governed by various provisions as contained in the Indian Contract Act,
1872. The commercial transactions, bank’s customers are sometimes required to give a
Bank Guarantee. This is mostly as an alternate to keep cash as a security deposit. The
third party who seeks the guarantee, not being aware of the customer’s financial standing
prefers a bank guarantee. In turn the Bank, which very well understands the financial
standing of the customer, undertakes the guarantee of the customer’s financial
commitments or performance of contracts by him. The bank charges commission for this
service, which depends on the security available and the financial stability of the
customer.
AGENCY FUNCTIONS
• Collecting of B/E, P-notes, cheques & securities
• Selling of products of insurance co./ MF
• Granting & issuing LC, traveler's cheque
• Agent for any govt., local authority, etc
MERCHANT BANKING
• Syndication of loans
• Venture capital finance
• Public issue management
• Corporate counseling
• Mergers & acquisitions
• Portfolio management services
• Investment counseling
E-BANKING
• Electronic payment system
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• ATM
• Tele-banking
• Credit card and debit card
• Online banking
MOBILE BANKING
• Account services
• Credit card services
• DEMAT account
• Loan account services
• Bill services
• Other services
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Establishment
The Reserve Bank of India was established on April 1, 1935 in accordance with the
provisions of the Reserve Bank of India Act, 1934.
The Central Office of the Reserve Bank was initially established in Calcutta but was
permanently moved to Mumbai in 1937. The Central Office is where the Governor
sits and where policies are formulated.
Though originally privately owned, since nationalisation in 1949, the Reserve Bank
is fully owned by the Government of India.
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existing legal framework and significant current practices in particular cover the
following aspects:
iv. Foreign investment in the banking sector is governed by Press Note dated March
5, 2004 issued by the Government of India, Ministry of Commerce and Industries.
v. The earlier practice of RBI nominating directors on the Boards of all private sector
banks has yielded place to such nomination in select private sector banks.
(i) The ultimate ownership and control of private sector banks is well diversified.
While diversified ownership minimises the risk of misuse or imprudent use of
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leveraged funds, it is no substitute for effective regulation. Further, the fit and proper
criterion, on a continuing basis, has to be the over-riding consideration in the path of
ensuring adequate investments, appropriate restructuring and consolidation in the
banking sector. The pursuit of the goal of diversified ownership will take account of
these basic objectives, in a systematic manner and the process will be spread over
time as appropriate.
(ii) Important Shareholders (i.e., shareholding of 5 per cent and above) are ‘fit and
proper’, as laid down in the guidelines dated February 3, 2004 on acknowledgement
for allotment and transfer of shares.
(iii) The directors and the CEO who manage the affairs of the bank are ‘fit and
proper’ as indicated in circular dated June 25, 2004 and observe sound corporate
governance principles.
(iv) Private sector banks have minimum capital/net worth for optimal operations and
systemic stability.
(v) The policy and the processes are transparent and fair.
4. Minimum capital
The capital requirement of existing private sector banks should be on par with the
entry capital requirement for new private sector banks prescribed in RBI guidelines
of January 3, 2001, which is initially Rs.200 crore, with a commitment to increase to
Rs.300 crore within three years. In order to meet with this requirement, all banks in
private sector should have a net worth of Rs.300 crore at all times. The banks which
are yet to achieve the required level of net worth will have to submit a time-bound
programme for capital augmentation to RBI. Where the net worth declines to a level
below Rs.300 crore, it should be restored to Rs. 300 crore within a reasonable time.
5. Shareholding
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ii. In the interest of diversified ownership of banks, the objective will be to ensure
that no single entity or group of related entities has shareholding or control, directly
or indirectly, in any bank in excess of 10 per cent of the paid up capital of the private
sector bank. Any higher level of acquisition will be with the prior approval of RBI
and in accordance with the guidelines of February 3, 2004 for grant of
acknowledgement for acquisition of shares.
iii. Where ownership is that of a corporate entity, the objective will be to ensure that
no single individual/entity has ownership and control in excess of 10 per cent of that
entity. Where the ownership is that of a financial entity the objective will be to
ensure that it is a well established regulated entity, widely held, publicly listed and
enjoys good standing in the financial community.
iv, Banks (including foreign banks having branch presence in India)/FIs should not
acquire any fresh stake in a bank’s equity shares, if by such acquisition, the investing
bank’s/FI’s holding exceeds 5 per cent of the investee bank’s equity capital as
indicated in RBI circular dated July 6, 2004.
v. As per existing policy, large industrial houses will be allowed to acquire, by way
of strategic investment, shares not exceeding 10 per cent of the paid up capital of the
bank subject to RBI’s prior approval. Furthermore, such a limitation will also be
considered if appropriate, in regard to important shareholders with other commercial
affiliations.
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ii. As a matter of desirable practice, not more than one member of a family or a close
relative (as defined under Section 6 of the Companies Act, 1956) or an associate
(partner, employee, director, etc.) should be on the Board of a bank.
iii. Guidelines have been provided in respect of 'Fit and Proper' criteria for directors
of banks by RBI circular dated June 25, 2004 in accordance with the
recommendations of the Ganguly Committee on Corporate Governance. For this
purpose a declaration and undertaking is required to be obtained from the proposed /
existing directors
iv. Being a Director, the CEO should satisfy the requirements of the ‘fit and proper’
criteria applicable for directors. In addition, RBI may apply any additional
requirements for the Chairman and CEO. The banks will be required to provide all
information that may be required while making an application to RBI for approval of
appointment of Chairman/CEO.
In terms of the Government of India press note the aggregate foreign investment in
private banks from all sources (FDI, FII, NRI) cannot exceed 74 per cent. At all
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times, at least 26 per cent of the paid up capital of the private sector banks will have
to be held by resident Indians.
7.1 Foreign Direct Investment (FDI) (other than by foreign banks or foreign
bank group)
i. The policy already articulated in guidelines for determining ‘fit and proper’ status
of shareholding of 5 per cent and above will be equally applicable for FDI. Hence
any FDI in private banks where shareholding reaches and exceeds 5 per cent either
individually or as a group will have to comply with the criteria indicated in the
aforesaid guidelines and get RBI acknowledgement for transfer of shares.
i. Currently there is a limit of 10 per cent for individual FII investment with the
aggregate limit for all FIIs restricted to 24 per cent which can be raised to 49 per cent
with the approval of Board/General Body. This dispensation will continue.
Currently there is a limit of 5 per cent for individual NRI portfolio investment with
the aggregate limit for all NRIs restricted to 10 per cent which can be raised to 24 per
cent with the approval of Board/General Body. Further, the policy guidelines on
acknowledgement for acquisition/transfer will be applied.
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The process of due diligence in all cases of shareholders and directors as above, will
involve reference to the relevant regulator, revenue authorities, investigation
agencies and independent credit reference agencies as considered appropriate.
9. Transition arrangements
i. The current minimum capital requirements for entry of new banks is Rs.200 crore
to be increased to Rs.300 crore within three years of commencement of business. A
few private sector banks which have been in existence before these capital
requirements were prescribed have less than Rs.200 crore net worth. In the interest of
having sufficient minimum size for financial stability, all the existing private banks
should also be able to fulfil the minimum net worth requirement of Rs.300 crore
required for a new entry. Hence any bank with net worth below this level will be
required to submit a time bound programme for capital augmentation to RBI for
approval.
ii. Where any existing shareholding of any individual entity/group of entities is 5 per
cent and above, due diligence outlined in the guidelines will be undertaken to ensure
fulfillment of ‘fit and proper’ criteria.
iii. Where any existing shareholding by any individual entity/group of related entities
is in excess of 10 per cent, the bank will be required to indicate a time table for
reduction of holding to the permissible level. While considering such cases, RBI will
also take into account the terms and conditions of the banking licences.
iv. Any bank having shareholding in excess of 5 per cent in any other bank in India
will be required to indicate a time bound plan for reduction in such investments to
the permissible limit. The parent of any foreign bank having presence in India,
having shareholding directly or indirectly through any other entity in the banking
group in excess of 5 per cent in any other bank in India will be similarly required to
indicate a time bound plan for reduction of such holding to 5 per cent.
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vi. Banks having more than one member of a family, or close relatives or associates
on the Board will be required to ensure compliance with these requirements at the
time of considering any induction or renewal of terms of such directors.
vii. Action plans submitted by private sector banks outlining the milestones for
compliance with the various requirements for ownership and governance will be
examined by RBI for consideration and approval.
i. Where RBI acknowledgement has already been obtained for transfer of shares of 5
per cent and above, it will be the bank’s responsibility to ensure continuing
compliance of the ‘fit and proper’ criteria and provide an annual certificate to the
RBI of having undertaken such continuing due diligence.
ii. Similar continuing due diligence on compliance with the ‘fit and proper’ criteria
for directors/CEO of the bank will have to be undertaken by the bank and certified to
RBI annually.
iii. RBI may, when considered necessary, undertake independent verification of ‘fit
and proper’ test conducted by banks through a process of due diligence as described
in paragraph 8
11. On the basis of such continuous monitoring, RBI will consider appropriate
measures to enforce compliance.
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In the case of rejection of any loan application, lenders should convey in writing
the specific reasons thereof.
Terms and conditions and other caveats governing credit facilities given by banks
/ Financial Institution arrived at after negotiation by the lending institution and the
borrower should be reduced in writing duly witnessed and certified by the
authorised sanctioning authority; in respect of advances sanctioned by the Board
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Stipulation of margin and security should be based on due diligence and credit
worthiness of borrowers.
Lenders should keep the borrowers apprised of the state of their accounts from
time to time and shall give notice of any change in the terms and conditions
including interest rates and charges are effected only prospectively. To ensure the
above, Banks / Financial Institution should create appropriate information
dissemination mechanism.
The loan agreement should clearly specify the liability of lenders to borrowers in
regard to allowing drawings beyond the sanctioned limits, honouring the cheques
issued for the purpose other than agreed, disallowing large cash withdrawals and
obligation to meet further requirements of the borrowers on account of growth in
business etc. without proper revision and sanction in credit limits, and disallowing
drawings on a borrower account on its classification as a non-performing assets or
on account of non-compliance with the terms of sanction.
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ORGANIZATION PROFILE
The Housing Development Finance Corporation Limited (HDFC) was amongst the first
to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a
bank in the private sector, as part of the RBI's liberalization of the Indian Banking
Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank
Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations
as a Scheduled Commercial Bank in January 1995.
PROMOTER
HDFC is India's premier housing finance company and enjoys an impeccable track record
in India as well as in international markets. Since its inception in 1977, the Corporation
has maintained a consistent and healthy growth in its operations to remain the market
leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling
units. HDFC has developed significant expertise in retail mortgage loans to different
market segments and also has a large corporate client base for its housing related credit
facilities. With its experience in the financial markets, a strong market reputation, large
shareholder base and unique consumer franchise, HDFC was ideally positioned to
promote a bank in the Indian environment.
BUSINESS FOCUS
HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build
sound customer franchises across distinct businesses so as to be the preferred provider of
banking services for target retail and wholesale customer segments, and to achieve
healthy growth in profitability, consistent with the bank's risk appetite. The bank is
committed to maintain the highest level of ethical standards, professional integrity,
corporate governance and regulatory compliance. HDFC Bank's business philosophy is
based on four core values – Operational Excellence, Customer Focus, Product Leadership
and People.
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CAPITAL STRUCTURE
The authorized capital of HDFC Bank is Rs550 crore (Rs5.5 billion). The paid-up capital
is Rs424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's equity and
about 17.6% of the equity is held by the ADS Depository (in respect of the bank's
American Depository Shares (ADS) Issue). Roughly 28% of the equity is held by Foreign
Institutional Investors (FIIs) and the bank has about 570,000 shareholders. The shares are
listed on the Stock Exchange, Mumbai and the National Stock Exchange. The bank's
American Depository Shares are listed on the New York Stock Exchange (NYSE) under
the symbol 'HDB'.
DISTRIBUTION NETWORK
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network
of over 1229 branches spread over 444 cities across India. All branches are linked on an
online real-time basis. Customers in over 120 locations are also serviced through
Telephone Banking. The Bank's expansion plans take into account the need to have a
presence in all major industrial and commercial centers where its corporate customers are
located as well as the need to build a strong retail customer base for both deposits and
loan products. Being a clearing/settlement bank to various leading stock exchanges, the
Bank has branches in the centers where the NSE/BSE has a strong and active member
base. The Bank also has a network of about over 2526 networked ATMs across these
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cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and
international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express
Credit/Charge cardholders.
TECHNOLOGY
BUSINESS FOCUS
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PRODUCT SCOPE:
HDFC Bank offers a bunch of products and services to meet the every need of the people.
The company cares for both, individuals as well as corporate and small and medium
enterprises. For individuals, the company has a range accounts, investment, and pension
scheme, different types of loans and cards that assist the customers. The customers can
choose the suitable one from a range of products which will suit their life-stage and
needs. For organizations the company has a host of customized solutions that range from
Funded services, Non-funded services, Value addition services, Mutual fund etc. These
affordable plans apart from providing long term value to the employees help in enhancing
goodwill of the company. The products of the company are categorized into various
sections which are as follows:
· Accounts and deposits.
· Loans.
· Investments and Insurance.
· Forex and payment services.
· Cards.
· Customer center.
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INDIAN BANKING SYSTEM 0621000460
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- Phone Banking
- Branch Network
G. Cards
- Silver Credit Card
- Gold Credit Card
- Woman's Gold Credit Card
- Platinum plus Credit Card
- Titanium Credit Card
- Value plus Credit Card
- Health plus Credit Card
- HDFC Bank Idea Silver Card
- HDFC Bank Idea Gold Card
- Compare Cards
- Transfer & Safe
- Track your Credit Card
H. Get More from Your Card
- Offers & Savings
- My Rewards
- Insta Wonderz
- Add-On Cards
- Credit Card Usage Guide
- Easy EMI
- Net safe
- Smart Pay
- Secure Plus
- My City Benefit Card
- Debit Cards
- Easy ShopInternational Debit Card
- Easy Shop Gold Debit Card
- Easy ShopInternational Business Debit Card
- Easy ShopWoman's Advantage Debit Card
- Prepaid Cards
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HDFC Bank began its operations in 1995 with a simple mission: to be a "World-class
Indian Bank". They realized that only a single-minded focus on product quality and
service excellence would help us get there. Today, they are proud to say that they are well
on our way towards that goal.
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It is extremely gratifying that their efforts towards providing customer convenience have
been appreciated both nationally and internationally.
MERGER
HDFC Bank and Centurion Bank of Punjab merger at share swap ratio of 1:29.The
Boards of HDFC Bank and Centurion Bank of Punjab met on 25 February, 2008 and
approved, subject to due diligence, the share swap ratio for the proposed merger of
Centurion Bank of Punjab with HDFC Bank. The Scheme of Amalgamation envisages a
share exchange ratio of one share of HDFC Bank for twenty nine shares of Centurion
Bank of Punjab.
The combined entity would have a nationwide network of 1,148 branches (the largest
amongst private sector Banks) a strong deposit base of around Rs. 1,200 billion and net
advances of around Rs. 850billion. The balance sheet size of the combined entity would
be over Rs. 1,500 billion.
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Mr. Shailendra Bhandari, Managing Director and CEO, Centurion Bank of Punjab
said, “We are extremely pleased to receive the go ahead from our board to pursue this
opportunity. A merger between the banks provides significant synergies to the combined
entity. The proposed merger would further improve the franchise and customer
proposition offered by the individual
banks.”
SUGGESTIONS:
The bank should provide life time valid ATM card to all its customers.
Minimum balance for savings account should be reduced from Rs 5000 to Rs
1000, so that people who are not financially strong enough can maintain their
account properly.
The company should provide a pass book to all its customers
Make people understand about the various benefits of its products.
Company should organize the program in the society, so that people will be aware
about the company and different products of the bank
Company should open more branches in different cities.
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INDIAN INSTITUTE OF MANAGEMENT TECHNOLOGY
INDIAN BANKING SYSTEM 0621000460
ORIGIN
Punjab national bank was established in 1895 at Lahore, undivided India, Punjab
National Bank (PNB) has the distinction of being the first Indian bank to have been
started solely with Indian capital. The bank was nationalized in July 1969 along with 13
other banks. From its modest beginning, the bank has grown in size and stature to
become a front-line banking institution in India at present.
PROFILE
With its presence virtually in all the important centers of the country, Punjab
National Bank offers a wide variety of banking services which include corporate and
personal banking, industrial finance, agricultural finance, financing of trade and
international banking. Among the clients of the Bank are Indian conglomerates, medium
and small industrial units, exporters, non-resident Indians and multinational companies.
The large presence and vast resource base have helped the Bank to build strong links with
trade and industry.
Punjab National Bank is serving over 3.5 crore customers through 4540 Offices
including 421 extension counters - largest amongst Nationalized Banks.
Punjab National Bank with 112 year tradition of sound and prudent banking is one
among 300 global companies and seven Indian companies which are expected to emerge
as challengers to World’s leading blue chip companies. While among top 1000 world
banks, “The Banker”, the leading magazine in London, has placed PNB at the 248th
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INDIAN INSTITUTE OF MANAGEMENT TECHNOLOGY
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position, the bank features at 1308th position among Forbe’s Global 2000 list of global
giants and fast growing companies.
At the same time, the bank has been conscious of its social responsibilities by
financing agriculture and allied activities and small scale industries (SSI). Considering
the importance of small scale industries bank has established 31 specialised branches to
finance exclusively such industries.
The bank has been focusing on expanding its operations outside India and has
identified some of the emerging economies which offer large business potential. Bank
has set up representative offices at Almaty: Kazakhistan, Shanghai: China and in London.
Besides, Bank has opened a fully fledged Branch in Kabul, Afghanistan.
Keeping in tune with changing times and to provide its customers more efficient and
speedy service, the Bank has taken major initiative in the field of computerization. All the
Branches of the Bank have been computerized. The Bank has also launched aggressively
the concept of "Any Time, Any Where Banking" through the introduction of Centralized
Banking Solution (CBS) and over 2409 offices have already been brought under its
ambit.
PNB also offers Internet Banking services in the country for Corporates as well as
individuals. Internet Banking services are available through all Branches of the Bank
networked under CBS. Providing 24 hours, 365 days banking right from the PC of the
user, Internet Banking offers world class banking facilities like anytime, anywhere access
to account, complete details of transactions, and statement of account, online information
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INDIAN INSTITUTE OF MANAGEMENT TECHNOLOGY
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of deposits, loans overdraft account etc. PNB has recently introduced Online Payment
Facility for railway reservation through IRCTC Payment Gateway Project and Online
Utility Bill Payment Services which allows Internet Banking account holders to pay their
telephone, mobile, electricity, insurance and other bills anytime from anywhere from
their desktop.
Another step taken by PNB in meeting the changing aspirations of its clientele is the
launch of its Debit card, which is also an ATM card. It enables the card holder to buy
goods and services at over 99270 merchant establishments across the country. Besides,
the card can be used to withdraw cash at more than 25000 ATMs, where the 'Maestro'
logo is displayed, apart from the PNB's over 1094 ATMs and tie up arrangements with
other Banks.
VISION
“To evolve and position the Bank as a world class progressive cost effective and
customer friendly institution providing comprehensive financial and related services;
integrating frontiers of technology and serving various segments of society especially the
weaker section; committed to excellence in serving the public and also excellence in
serving the public and also excelling in corporate values.”
MISSION
“To provide excellent professional services and improve its position as a leader in the
field of financial and related services; build and maintain a team of motivated and
committed workforce with high work ethos; use latest technology aimed at customer
satisfaction and act as an effective catalyst for socio-economic development”
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INDIAN INSTITUTE OF MANAGEMENT TECHNOLOGY
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Companies".
Best IT User in Banking & Financial by NASSCOM in partnership with Economic
Services Industry - 2004 Times
Golden Peacock Award for Excellence in Corporate Governance - 2005
by Institute of Directors
National Award for Excellence in SSI Ranked 2nd for 4 consecutive years - 2002,
Lending 2003, 2004 & 2005
Money Outlook Award – 2004 Runner up in 'Best Bank (public Sector) of the
year Award' -2005
DIRECTOR
Shri .Ravneet Kaur Govt. of India Nominee Director
Shri .L.M.Fonseca Reserve bank of India Nominee Director
Shri .S.R.Khurana Director Rep.C.A.catagory
Shri P.K.Nayar Officer Employee Director
Shri.Mohan Lal Workmen Employee director
Dr.Harsh Mahajan Share holder Director
Shri.Prakash Agrawal Shareholder Director
Shri Gautam P.Khandelwal Part-time non-official Director
Shri Mushtaq A Antulay Part-time non-official Director
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SWOT ANALYSIS
STRENGTHS:
Strong growth in business
Good branch network
Highest CASA among PSU
Highest NIMs compared to peers
Fine growth in fee income last year
De-risked investment portfolio
Adequate Capital
Proactive on technology front.
WEAKNESS:
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Higher Delinquencies
Higher provisions deterring growth in net profits
No development on insurance venture
Slower growth on international front
Slow-down in treasury profits
Its subsidiaries PNB Housing Finance & PNB Gilts are not impressive
OPPORTUNITIES:
Expansion on international front
Ample opportunity to expand business, as the economy is doing well.
Growth in Insurance and Mutual Fund business
THREATS:
Entry of foreign banks
Sharp rise in interest rates can hamper economic growth
Regulatory amendments
Implementation of Basel II requires higher capital
Downturn in Agriculture growth
PRODUCTS AND SERVICES:
PRODUCTS:
Personal banking
Corporate banking
Home loans
About loan
ATM/DEBIT cards
Deposit interest rates
SERVICES
Locker facilities
Depository services
Senior citizen scheme
RTGS/NEFT/SFMS:PNB
Merchant banking
Online tax accounting system
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QUESTIONNAIRE
Dear Sir/Madam,
2. Education Qualification
Undergraduate □
Graduate □
Post graduate □
3. Marital Status.
Married □
Single □
No. of Children: __________
4. Occupation.
Business □
Profession □
Service □
(Please mention below the type of business/profession you are in incase of
service please mention your organization name and designation)
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INDIAN INSTITUTE OF MANAGEMENT TECHNOLOGY
INDIAN BANKING SYSTEM 0621000460
Yes □
No □
Yes □
No □
Yes □
No □
Private bank □
Nationalise banks □
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INDIAN INSTITUTE OF MANAGEMENT TECHNOLOGY
INDIAN BANKING SYSTEM 0621000460
Private bank □
Nationalise banks □
And why?
Yes □
No □
Yes □
No □
And how it will help you?
Date:
Signature
Place:-
Thank You
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INDIAN INSTITUTE OF MANAGEMENT TECHNOLOGY