Banking Sector Yes Bank, SBI and Citi Bank (India)

SCPM Project Report

The objective of this project is to study three banks operating in India (government, private and foreign). Debdyuti FT12208 Phani Kiran FT12181 Balaji FT12206 1/29/2012

Table of Contents
Indian Economy Overview ................................................................................................................. 3 Banking and Financial Sector Overview.............................................................................................. 4 Yes Bank (Private Banking) ................................................................................................................ 5 Overview and History .................................................................................................................... 5 Product and Services ..................................................................................................................... 5 Strategy ......................................................................................................................................... 6 SWOT Analysis ............................................................................................................................... 6 Financial Performance ................................................................................................................... 7 SBI Bank (Government Bank) ............................................................................................................. 8 Company Overview ....................................................................................................................... 8 History........................................................................................................................................... 8 Products and Services .................................................................................................................... 9 Strategy ....................................................................................................................................... 11 SWOT Analysis ............................................................................................................................. 12 Financial Performance ................................................................................................................. 12 Citibank India .................................................................................................................................. 13 History and overview ................................................................................................................... 13 Products and Services .................................................................................................................. 14 Strategy ....................................................................................................................................... 15 SWOT Analysis ............................................................................................................................. 15 Financial Performance ................................................................................................................. 16 Conclusion....................................................................................................................................... 17

Indian Economy Overview

The Economy of India is the ninth largest in the world by nominal GDP and the third largest by purchasing power parity (PPP).The country is one of the G-20 major economies and a member of BRICS. The country's per capita GDP (PPP) was $3,703 (IMF, 129th in the world) in 2011, making it a lower-middle income economy. Indias economy was initially inspired by the economy of the Soviet Union with socialist practices, large public sectors, high import duties and lesser private participation leading to widespread corruption. Later in 1991 India adopted free market principles and liberalized its economy. Following these strong reforms, the country progressed at a rapid pace and the incomes of people also have been increasing steeply over the last decade. A revival of economic reforms and better economic policy in first decade of the 21st century accelerated India's economic growth rate. In recent years, Indian cities have continued to liberalise business regulations. By 2008, India had established itself as one of the worlds, fastest growing economy. Growth significantly slowed to 6.79% in 200809, but subsequently recovered to 7.4% in 200910, while the fiscal deficit rose from 5.9% to a high 6.5% during the same period. Indias current account deficit surged to 4.1% of GDP during Q2 FY11 against 3.2% the previous quarter. The unemployment rate for 20092010, according to the state Labour Bureau, was 9.4% nationwide. As of 2010, India's public debt stood at 71.84% of GDP which is highest among BRIC nations. India's large service industry accounts for 57.2% of the country's GDP while the industrial and agricultural sectors contribute 28.6% and 14.6% respectively. Agriculture is the predominant occupation in Rural India, accounting for about 52% of employment. The service sector makes up a further 34%and industrial sector around 14%. Major industries include telecommunications, textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, software and pharmaceuticals. The labour force totals 500 million workers. Major agricultural products include rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes, cattle, water buffalo, sheep, goats, poultry and fish. In 20092010, India's top five trading partners are United Arab Emirates, China, United States, Saudi Arabia and Germany. India's reliance on external assistance and concessional debt has decreased since liberalisation of the economy, and the debt service ratio decreased from 35.3% in 199091 to 4.4% in 200809. As the fourth-largest economy in the world in PPP terms, India is a preferred destination for FDI; India has strengths in telecommunication, information technology and other significant areas such as auto components, chemicals, apparels, pharmaceuticals, and jewellery. Despite a surge in foreign investments, rigid FDI policies were a significant hindrance. However, due to positive economic reforms aimed at deregulating the economy and stimulating foreign investment, India has positioned itself as one of the front-runners of the rapidly growing Asia-Pacific region. India has a large pool of skilled managerial and technical expertise. The size of the middle-class population stands at 300 million and represents a growing consumer market

Share of top five investing countries in FDI inflows (2000-2010) Rank 1 2 Country Mauritius Singapore Inflows (million USD) 50,164 11,275 Inflows (%) 42 9

3 4 5

US UK Netherlands

8914 6158 4968

7 5 4

India's gross national income per capita had experienced astonishing growth rates since 2002.India's Per Capita Income has tripled from $ 423 in 200203 to $ 1219 in 201011, averaging 14.4% growth over these eight years. As of 2005, according to World Bank statistics, 75.6% of the population lived on less than $2 a day (PPP), while 41.6% of the population was living below the new international poverty line of $1.25 (PPP) per day. However, data released in 2009 by the Government of India estimated that 37% of the population lived below the poverty line.

Banking and Financial Sector Overview

Banking and Financial Services industry is the foundation of any economy as it reflects the financial health of the country. The Indian financial system comprises of Commercial banks (Public sector, Private sector, foreign banks and Cooperative institutions), financial institutions (All-India Financial Institutions and State Financial Corporation, State Industrial Development Corporations), Nonbanking financial companies (NBFCs) and Capital market intermediaries. The Indian financial sector (including banks, non-banking financial companies, or NBFCs, and housing finance companies, or HFCs) reported a compounded annual growth rate CAGR) of 19% over the last three years and their credit portfolio stood at close to Rs. 49 trillion (around 62% of 2010-11 GDP) as on March 31, 2011. Banks accounted for nearly 6% of the total credit, NBFCs for around 10%, and HFCs for around 4%. Banking in India started in 18th Century. From then it has evolved a lot, have undergone nationalization and liberalisation and have also adopted latest technologies. To serve the customers better and protect stakeholders interest Indian financial markets have been highly regulated with different authorities keeping an eye on every avenue of financial sub-segments viz. Stock markets, mutual funds, insurance and banking (example SEBI, IRDA, RBI and so on). Moody's believe that strong deposit base of Indian lenders and Government's persistent support to public sector and private banks would act as positive factors for the 64 trillion (US$ 1.23 trillion) Indian banking industry amidst the negative global scenario. According to the RBI's 'Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks', March 2011, Nationalised Banks, as a group, accounted for 53.0 per cent of the aggregate deposits, while State Bank of India (SBI) and its associates accounted for 21.6 per cent. The share of new private sector banks, Old Private Sector Banks, Foreign Banks and Regional Rural banks in aggregate deposits was 13.4 per cent, 4.6 per cent, 4.4 per cent and 3 per cent respectively. Indian banks continue to enjoy a comfortable capitalisation as compared with existing RBI norms with their Tier I capital close to 9%. Thus, apart from SBI, none of the PSBs may need significant Tier I capital in the short term. A report by The Boston Consulting Group (BCG) India, in association with an industrial body and Indian Banks Associations (IBA) predicts that Indian banking sector would become the world's third largest in asset size by 2025. Given the positive eco-system of the industry, regulatory and Government initiatives, mobile banking is anticipated to enhance from 0.1 per cent of transactions in a 45 per cent financial inclusion base in 2010 to 34 per cent of the transactions with 80 per cent rural inclusion base by 2020, as per the report. Banking and Financial Sector has huge growth opportunity in India. More than 50% of Indian Population is yet to get the benefit of the financial services. Public banks along with various NBFCs

under the supervision of RBI are working towards this direction of Financial Inclusion. And Private sector and Foreign banks are regularly improving their service offering and products to be able to better serve the growing industrial and infrastructure need in India. The entry of various foreign and private banks have also increase the completion in the sector which help improving the overall service quality of the sector. Public banks are also gearing up and revamping their service and structure.

Yes Bank (Private Banking)

Overview and History
YES Bank Limited is an Indian Bank, engaged in providing a range of banking and financial services. It was founded in the year 2003-04 and has the vision: To be recognised as the WORLDs BEST QUALITY BANK IN INDIA To provide a Delightful Banking Experience to all its customers To be a long term partner with all stakeholders particularly customers by creating & sharing value To be a solid and trusted financial trust mark backed by two professional promoters and an exceptional management team

Supporting the brand pillar of Growth, Trust, Knowledge Driven Human Capital, Technology, Transparency and Responsible Banking it offers: Corporate and Institutional Banking Financial Markets Investment Banking Business and Transactional Banking Retail Banking Private Banking

Product and Services

The product portfolio of YES Bank is build around the 3-Dimensional Organizational structure of Relationship. The customer segments and the sectors in which bank are focused on are as follows: Corporate and Institutional Banking: The C&IB business provides comprehensive financial and risk management solutions to client having turnover of over Rs 7500 million. Large Indian Corporate groups, Public Sector Enterprises, Central and State Governments, Government Bodies, Financial Institutions and Banks are covered under this. Business Banking SME: Business Banking Unit is dedicated to serve Small and Medium Enterprises with annual sales turnover between Rs200 to Rs1500 million. Retail Banking and Wealth Management: Caters Banking and wealth management needs of individual customers. The focus is not only transacting but also engaging and involving customers

Core Products Branch Banking :Savings, Current, Fixed deposits, Salary accounts Business Banking : Term loans, working capital loans, Corporate finance Retail Banking : Working Capital and Term Loan

Cross Sell Products Transaction Banking Services: Trade finance, Direct Banking, Cash management Wealth Management Services: Life and General Insurance, Mutual Funds, Demat Accounts

Value Added Features and Innovations Single Pin Access across all channels, Mobile money services, and two factor Authentication etc.

Strategy
The bank launched the Version2 of the bank announcing roll out of a new business strategy. Aim to achieve balance sheet of USD 30 million and a pan India branch network of 750 by 2015. The main strategic objectives of Version2 growth phase build around core relationship management are: Liabilities Generation: Focus on increasing the amount of CASA deposits. Plan to use Business to Business Strategy. Involves identifying current account rich corporate customer segment. Bank tied up with various brokers and insurance firms to offer innovative products to their customers as a strategy to target financial intermediaries. Plan to expand distribution network. Risk Management: Maintaining high quality of assets through risk management and mitigation practices. Diversified revenue generation: Increasing customer base in Corporate and Institutional banking. Effective Cost management: Maintains one of the best costs to income ratios in the entire banking sector.

Differentiating Factor Knowledge Based banking New Focus Areas: o Food & Agro Business o Life Sciences o Telecom o IT Infra Structure o Media & Entertainment Focussed on providing specialised services o Technology deployment o HR High qualified & skilled resources

SWOT Analysis
Strength High Quality, Customer Centric, Service Driven, Private Indian Bank Catering To The Future Industries Of India The Bank Has Adopted International Best Practices, The Highest Standards Of Service Quality And Operational Excellence World-Class Team, Based On Professional Recruitment Methodologies, And Attract The Best Talent In The Industry Building Learning And Development Solutions That Continuously Enhance Employee Value, High Performance Culture Credible And Transparent Performance Management Process Robust Rewards And Recognition Strategy Strong technology, Well capitalized

BANKs pioneering of 7% interest rate; CASA Ratio improves by 1.6% q-o-q Capital Adequacy Ratio at 16.1% with Tier I Ratio of 9.2%

Weakness Less wide network Not in every state Less promotional activity Unknown brand Opportunity Very wide market Other activity(insurance, stock broking, Mutual Fund) Wide scope in rural Area Threat Very high competition Private bank market (ICICI Bank, HDFC bank), In public sector (BOB, PNB) Government Policy Other better Saving, investment option available (like Insurance, Mutual Fund, Real-estate, Gold) Capital Market slow-down Rising Rates

Financial Performance
The following table provides the details of Financial Performance Parameter (millions of INR) Total Revenues Net Income Total Current Assets Total Assets Total Current Liabilities Total Liabilities Total Equity Reserves Total Dividend Paid Mar-08 6,476.50 2,000.20 19,949.70 1,69,824.20 1,44,551.60 1,56,635.00 13,189.20 -Mar-09 8,844.60 3,038.40 25,300.80 Mar-10 March2011 12,266.40 4,777.40 35,889.30 17,719.90 7,271.40 51,751.20 5,90,069.90 4,95,695.20 5,52,129.10 37,940.80 -511.5

2,29,007.90 3,63,825.10 1,89,478.30 2,12,765.70 16,242.20 --2,96,591.20 3,32,929.60 30,895.50

Key Ratios Parameters Earnings per share Dividends per share Dividend pay out Gross profit Net profit margin Amount 18.10 2.50 13.80 39,435.00 18.00

Return on equity Return on capital Net Interest Income / Total Funds (%) Operating Expenses / Total Funds (%) Deposits Advances

19.20 37.10 2.82 3.21 45,938.90 34,363.60

SBI Bank (Government Bank)

Company Overview
SBI is an India based public sector banking and financial services company. The State Bank Group, with over 16,000 branches, has the largest banking branch network in India. The SBI is the 10th most reputed company in the world according to Forbes. The bank has 156 overseas offices spread over 32 countries. They have branches of the parent in Colombo, Dhaka, Frankfurt, Hong Kong, Johannesburg, London and environs, Los Angeles, Male in the Maldives, Muscat, New York, Osaka, Sydney, and Tokyo. They have offshore banking units in the Bahamas, Bahrain, and Singapore, and representative offices in Bhutan and Cape Town. As of March 31, 2011, the Bank had a network of 18,266 branches including 4,724 branches of its five Associate Banks The bank provides banking services to the customers. Through its subsidiaries it also provides a mix of financial services, which include life insurance, mutual funds, security trading, credit cards, merchant banking and pension fund management. It has four business segments, namely retail banking, Corporate/Wholesale banking, Treasury and other banking business. Retail banking: This segment consists of branches in National banking group, which primarily includes personal banking activities including lending activities to corporate customers having banking relations with branches in the National Banking Group. Corporate/Wholesale banking: This segment comprises the lending activities of Corporate Accounts Group, Mid Corporate Accounts Group and Stressed Assets Management Groups. Treasury: The Treasury segment includes the investment portfolio and trading in foreign exchange contracts and derivative contracts. SBI provides a range of banking products through its vast network of branches across India. It has some services specifically aimed at NRIs.

History
The roots of the State Bank of India rest in the first decade of 19th century, when the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal was one of three Presidency banks, the other two being the Bank of Bombay and the Bank of Madras. All three Presidency banks were incorporated as joint stock companies and were the result of the royal charters. These three banks received the exclusive right to issue paper currency in 1861 with the Paper Currency Act, a right they retained until the formation of the Reserve Bank of India. The Presidency banks amalgamated on 27 January 1921, and the reorganized banking entity took as its name: Imperial Bank of India. On 30 April 1955, the Imperial Bank of India became the State Bank of India. The government of India recently acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of interest because the RBI is the country's banking regulatory authority. In 1959, the government passed the State Bank of India (Subsidiary Banks) Act, enabling the State Bank of India to take over eight former state-associated banks as its subsidiaries. SBI operates several

foreign subsidiaries or affiliates. In 1990, it established an offshore bank: State Bank of India (Mauritius). In 1982, the bank established a subsidiary, State Bank of India (California), which now has ten branches nine branches in the state of California and one in Washington, D.C. SBI has five associate banks. State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Mysore State Bank of Patiala State Bank of Travancore Earlier SBI group had seven associate banks. The first step towards unification occurred on 13 August 2008 when State bank of Saurashtra merged with SBI. Then in 2009 State bank of Indore was also merged in to SBI. The process of merging of State Bank of Indore was completed by April 2010, and the SBI Indore Branches started functioning as SBI branches on 26 August 2010.

Products and Services

SBI provides an eclectic mix of products and services to its customers. SBIs operations can be broadly classified in to below categories. Personal Banking Deposit Schemes Current account Savings bank account Term deposits Special term deposits Demat account Personal Finance Housing loan Property loan Education loan Car loan Personal loan Loan to pensioners Festival loans Services ATM Services Gift Cheques Foreign inward remittance Cards Locker

Agricultural/Rural The following services are provided under agricultural segment. Agricultural banking Micro credit Regional rural banks NRI Services The following products are available for NRI customers. NRE rupee accounts Savings bank account Current account Special term deposits Non resident account Foreign currency non resident account Resident foreign currency account International The International Services division renders specialized services like correspondent banking, global link services and country and bank risk exposure monitoring. The following services are provided under this.

Trade finance Letter of credit Export bill rediscounting Preshipment credit in foreign currency Rupee export credit Pre shipment export credit Post shipment export credit

Merchant banking Reverse FDI Bilateral foreign currency loans Overseas M&As Global syndication of foreign currency loans External commercial borrowings

Correspondent banking Creating, nurturing correspondent relationships Complaint resolution of correspondents Setting up standard settlement instructions

Corporate Banking SBI offers the following products and services under this segment. Working capital finance Project finance Deferred payment guarantees Corporate term loans Structured finance Dealer financing Channel financing Equipment leasing Loan syndication Services Under the core services segment, SBI offers the following services through various channels. Internet banking Mobile banking ATM services Demat services Government business State Bank of India's linkage with Government business is widespread. Out of 9315 branches in India, about 7000 branches are conducting Government Business. The following products and services are offered in this segment. Centralised pension processing SBI e-Tax SBI e-Freight Public provident fund transactions Senior citizens savings scheme SME SBI has been playing a vital role in the development of small scale industries since 1956. It has financed over 8 lakh SME units in the country. It has 55 specialised SME branches, 99 branches in industrial estates and more than 400 branches with SIB divisions. Numerous services are provided by SBI for SMEs. A few are listed below. Commodity backed warehouse receipt financing Traders easy loan scheme SME Loans Open term loan Retail trade

SME credit plus SME petro credit SBI SME collateral free loan

Strategy
Strategy can be defined as the changes that a company makes to adapt effectively to the ever changing external environment. The general strategies adopted by SBI in the past are listed below. Institution for advanced learning: To educate middle and senior level executives on various financial products Feedback supplier: To capture and structure feedback from trainees and from the market Research & Development: To carry out research on contemporary subjects that is relevant to the banks short term and medium term and operational needs and policy formulation Overlapping staff training centres: To closely administer the functioning of staff training centres in seven circles attached to the academy. Centralization and Decentralization: SBI has a well defined process in terms of decision making. The decision making process is decentralized to some extent. The loan approval process to some amount is decided by the managers at the ground level. But if any decision has to be taken with regard to purchase of computers and software the decision is taken at a higher level. Thus it is both centralized and decentralized. Restructuring To effectively compete with the private and foreign banks SBI had planned a major organization restructuring exercise. The key aspects involved are Technological up gradation Focus on a lean structure Redesigning of branches Providing alternate channels A BPR team was formed with consultants from McKinsey & Company to create an operating architecture that would facilitate service delivery of international standards. New Products and Services To stay relevant to the current times, SBI has come up with many new products and services. It has gone for Internet banking and made banking available anytime, anywhere. It launched a special service for corporate customers called tele banking and remote login to support transactional requests. Interest rates and repayment periods were tailor made to suit the customer groups. Alliances and Tie ups To boost its business, SBI has entered in to several alliances and tie ups with mutual fund insurance, project finance, automobile and medical equipment companies. SBI had a tie up with Maruti wherein it provided the auto finance for 10.05 and 11.25 percent for three years and above three years respectively. After this tie up, SBI had emerged as the largest financier for Maruti cars in India.

Marketing Initiatives SBI has come up with several marketing initiatives to entice the customers. Cross sale of other products

Used database marketing extensively where in medium sized corporate, government and trade finance customers are targeted. Call centres were set up and sales force was ramped up to secure new customers

SWOT Analysis
Strengths Brand Name: Since it is the oldest bank and is state governed it has good brand name among the masses. Wide distribution network: It has got excellent rural penetration with more than 10000 core branches and more than 5100 branches of associate banks. Diversified portfolio: SBI offers variety of products and services so that customers need not look somewhere else for their various banking needs. Government Owned: Government owns 58% stake in the SBI. Thus customers feel more secured with SBI Low transition costs: It offers very low transition costs which attracts small customers. Weaknesses Since government is a major stake holder the management does not have free hand in decision making SBI is not up to the mark in adapting to the new technologies compared to its peers SBI is currently operating below the required CAR ratio. This may reduce the banks rating. SBI lags in terms of modernisation of its processes, infrastructure, centralization etc compared to its peers. It has high percentage of retail credit which stood at 26%. Also more exposure to farm loans is an inherent weakness for SBI Opportunities Opportunity to merge with the associate banks which can increase the reach of SBI Growing retail and SME loans would lead to higher business growth There is a lot of growth opportunity in the microfinance area SBI has already expanded globally and is planning to expand in other global markets Indian economy is growing at a very pace. So it offers a good opportunity for SBI to grow. Threats SBI is lagging in meeting the increasing customer expectations in terms of technology and customer service. Private banks have entered in to the rural and semi urban sector which used to be the bastion of the state bank and other PSU banks Competition has increased in the retail sector from foreign and private banks. Slow down in the Indian economy in the future may pose a threat to its growth Numerous MNC banks have entered in to India in the recent past and the competition has stiffened a lot. SBI had to be extra vigilant to counter the competition.

Financial Performance
While analyzing the financial performance of any bank we generally look at the following parameters. Net Interest margin It is a performance metric that examines how successful a firm's investment decisions are compared to its debt situations. A negative value denotes that the firm did not make an optimal decision, because interest expenses were greater than the amount of returns generated by investments. SBI consistently maintained NIM in the range of 3-3.5% Non performing assets

If any customer defaults on his interest or principal payment for more than 90 days then that account becomes NPA and banks have to provision some amount for such accounts which finally affects the net profit. NPAs have become an issue for SBI recently due to the deterioration in the economy and also due to its exposure to the power sector which is doing well currently. Gross NPAs have increased from 3.35% (Sep 10) to 4.02% (Sep 11) Capital adequacy ratio This parameter shows the quality of the capital that a bank has. RBI has mandated that all banks have to maintain tier 1 capital ratio of 8%. But for the last one year SBIs CAR has deteriorated and it also resulted in the downgrade of its rating by Moodys. SBI is waiting for cash infusion from GOI. Exposure to sensitive sectors SBI is doing well in this parameter. It has diversified exposure across all the sectors. Iron and steel has the highest share followed by textiles and power sectors. ROA & ROE Return on equity hovered in the range of 12-16 % for SBI. At the end of Q2FY12 it is 16.73% Return on assets is in the range 0.85 -0.88 consistently which is better compared to its peers Stock Performance of SBI As on 28th Jan 2012, Market Capitalization Rs. 129,705.02 crores Stock price Rs. 2020.15 P/E 17.91 where as Industry P/E is 7.32 Book value Rs. 1023.4 P/BV 2 SBI stock has reached the peak levels of 2800-3000during May 2011 and has hit a low of 1500-1600 during Dec 2011. It has recovered a bit and currently trading at around Rs. 2000

Citibank India
History and overview
Citibank India was established in Kolkata 109 years ago. Currently it is the largest foreign direct investor in financial services in India with a total capital commitment of approximately US$ 4 Billion in its onshore banking and financial services business and its principal and alternate investment programs. It operates 42 full-service Citibank branches in 30 cities and over 700 ATMs across the country. It has employee strength of 750 people in India. Citi is the preferred banker for more than 40000 small and midsized companies across India. It helped lay the foundation of the Indian software industry by establishing Citicorp Overseas software corp and Iflex solutions. . Citi pioneered the ITES industry in financial services through Citigroup Global Services Limited (CGSL). Oracle acquired Iflex in 2005 and CGSL was acquired by Tata Consultancy Services in 2008.

Corporate Social Responsibility Initiative: The Corporate Citizenship function is the umbrella entity for all Corporate Social Responsibility activities undertaken by Citi India. The program is based on four key pillars Grants made by Citi Foundation; Employee Engagement with Communities; Local sponsorships; and supporting Arts and Culture. Citi Foundation is the global philanthropic arm of Citigroup. It began its grant giving in India in 1999 to support economically disadvantaged families by way of enterprise development, youth education and livelihoods, financial capability and asset building, and microfinance. Some of the highlights of the CSR initiative are: The Citi Micro Entrepreneur Award was instituted in the year 2004 to recognize and honour outstanding micro entrepreneurs who overcame economic and social challenges to successfully build self-sustaining microenterprises The Citi Foundation provided core funding to set up the Indian School of Microfinance for Women (ISMW) in Ahmadabad in 2004. The Citi Centre for Financial Literacy focuses on bringing about financial literacy awareness campaigns for women borrowers and train NGO/MFI staff and field workers Citi extended support to an innovative program called Meljol that brings financial education to schools across Maharashtra, Kerala Assam, Rajasthan, Orissa and Jharkhand in 2007 In 2011, Citi partnered with the American India Foundation to support a project that will enable AIF to add financial education to its successful Market Aligned Skills Training (MAST) program and provide unemployed youth with the skills needed to secure servicesector jobs Citi provides its employees regular opportunities to get directly involved with local communities and issues. Citis Payroll giving Program in partnership with United Way Mumbai, enables employees across the country to make regular donations to their cause of choice. The annual Global Community Day celebrates the spirit of community work as employees across the country volunteer with local NGOs. Earth Week, celebrated in April, engages employees with issues in environment and conservation. Citi supports employees who would like to take up the Teach for India Fellowship Program. Citi sponsors and provides charitable donations in cash and kind to small not for profit organizations and specific causes, on a need basis. Several of these causes are those that individual employees pursue in their personal capacity and Citi supports their commitment and passion. Through Citi Cares, a Computer Contribution Program, Citi refurbishes its old computers and donates them to NGOs across the country. These machines provided are in excellent working condition and accompanied by the necessary peripherals. Citi has been a strong supporter of the Arts for the past twenty years. It promotes Indian and Western art, culture and heritage through various sponsorships such as the Mumbai Sanskruti Festival and the Citi-NCPA partnership. Citi also supports underprivileged musicians through the Citi NCPA Guru Shishya Scholarship Program

Products and Services

The bank offers a variety of services and products under the Personal Banking, NRI Banking and Corporate Banking categories. The services offered by the bank under Personal Banking are Loans

and Credit Cards, Regular Banking services such as savings account, business banking solutions including Personal Wealth Management and investment options such as Mutual Funds and Demat Services. The bank also offers various insurance solutions and hi-tech banking services such as Online Bill Pay, Pre-paid Mobile Recharge, Internet Banking and CitiAlert account statements on the mobile phone. NRI Oriented Services For its Non-Resident Indian (NRI) customers, Citibank provides a wide range of services including Rupee Checking Account, Money Remittance, Investment solutions and Home Loans for the NRIs. Citibank also pays specialized attention to its corporate customers in India through its Corporate Banking services, which comprises of an array of customized banking solutions tailor-made according to the needs of its corporate customers in India. These services include Cash Management, Trade Services, Loans, Securities and Fund Services, and Investment Banking services. Global Commercial Bank Services Apart from it, Citibank also offers Global Commercial Bank services through its Commercial Relationship Banking wing and Global Subsidiaries Group. The Commercial Relationship Banking services are aimed at helping the Small and Medium Enterprises (SMEs) and Mid Market Enterprises, while the Global Subsidiaries Group provides comprehensive banking services for the top multinational corporate and their subsidiaries in India.

Strategy
Citibank differentiated itself from competitors by using their customer service effectively. They offered several services to their clients. Citibank offered telephone hotlines, customer relations managers to give individual attention to their customers, and service experts. Citibank also continued their investment in technology for the front and back end of the banking systems. Citibank has strong brand recognition and continues to invest in technology. To position itself strongly within the technology sector, Citibank formed alliances with Oracle, Commerce One, Inc., SAP AG, Wisdom Technologies and Bolero.net to help transform its company to an e-business model.

SWOT Analysis
Strengths The world's largest credit card issuer Diversified financial products (consumer finance, retail banking products and services, investment banking, commercial banking, asset management, trade finance, ecommerce products and services, private banking) It has a very good nationwide network and the backing of Citigroup Weakness Its online operations are geared towards US clients. As it is a large company it has the issue of size and it needs to have clear focus on all the segments Opportunities Extensive range of services enhances the group's cross-selling opportunities to weather financial market turmoil It has an award winning e-banking program

 The Indian market offers tremendous growth opportunities Acquisition/integration of Automated Trading Desk Threats The weakening financial markets can have an impact on the company The strict regulatory forces in India Competition from brick and mortar banks and pure play bank entities and financial service providers

Financial Performance
Citibank India branch announced it has reported total revenues of Rs.10, 423 crores, representing a 24% increase from Rs.8, 410 crores for the same period last year. The growth in revenues was attributable both to higher interest income as well as significant growth in fee and trading income. The balance sheet grew by 26% from Rs.83, 851 crores to Rs.105, 264 crores, reflecting continuing growth in customer lending activities. Net profit after tax was Rs.2, 173 crores for the period, representing a 20% increase from Rs.1, 804 crores in the same period of last year. Despite industry-wide challenges in unsecured consumer credit impacting profitability of the Retail Banking segment, the increase in net income reflected strong growth in Corporate/Commercial Banking and Treasury. In addition to Citibank with 40 branches in 28 locations in India, Citi operates several other legal vehicles, including mainly two large non-bank finance companies, two brokerage companies and two other companies undertaking capital markets activities. All of these vehicles remained profitable during the year, with the exception of CitiFinancial Consumer Finance India Limited, which was impacted by the challenges of deterioration in unsecured credit quality that affected the entire industry and, Citi Wealth Advisors Private Limited which is yet to reach full scale of operations. Key Ratios: Capital Adequacy Ratio: 13.23 Total Capital Ratio: 11.66% Tier I Capital Ratio: 10.97% TierII Capital Ratio: 0.69% Return on Assets Ratio: 2.12 Net NPA Ratio: 2.63 Key Highlights of Citibank India The Citi India franchise continued its track record of innovation and market-leading transactions during the year: Citi participated in several landmark deals, including the merger between Reliance Petroleum and Reliance Industries, the largest in Indian corporate history Citi arranged the commercial paper issuance by ONGC Videsh in what was the largest local currency commercial paper transaction to date

Citi launched the Protect & Grow investment product which was the first such product in India to combine the safety of a fixed deposit with the potential for growth In a nationwide survey of customers conducted by the Economic Times Brand Equity, Citibank India was voted Best Foreign Bank Brand. Citibank India also won the Dun & Bradstreet and Business World awards for Best Foreign Bank in India. Euro money, Finance Asia and The Asset publications presented Citi with Best Investment Bank and Best Foreign Investment Bank in India awards. Citi Research was ranked #1 by Institutional Investor. Citi Indias Corporate Citizenship program includes its Global Community Day, when more than 1,600 employees rolled up their sleeves to volunteer. Citi also celebrated its fifth annual Citi Microentrepreneur Awards in Delhi, which honoured 10 self-made entrepreneurs that have empowered their communities through microfinance.

Conclusion
The study shows how different banks (Yes Bank, SBI and Citibank India) in India operates and how are they performing in terms of finance, strategy and overall business. It was observed that Indian Banks are in good shape but they also have major challenges to face in coming days in terms of Euro Crisis. Basel III is also scheduled to implement by end of 2013. And thus this will bring in changes in the capital structure of the banks.