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Welcomes

Company Analysis
Andhra Bank
….For all your needs

“Much more to do, with YOU in focus”


Objectives
 To have a clear idea about the measures
taken in various fields of
• Finance
• Marketing
• HR.

 To analyse the various initiatives taken by the


companies in the financial year.
Need

 1.To know about the company profile .


 2.To know about the company financial
position
 To know HR policies &practices of Bank
 3. To know marketing strategies and business
ethics
Banking Industry overview
 RBI, the central banking and monetary authority of India, is the central
regulatory and supervisory authorityfor the Indian financial system
 schedule banks in India:
28 public sector banks

27 private sector banks


29 foreign banks and
102 regional banks
 Scheduled cooperative banks
55 Scheduled urban cooperative banks
31 Scheduled state cooperative banks
The Indian banking market is growing at an astonishing rate, with Assets
expected to reach US$1 trillion by 2010
History
 Andhra Bank is one of the largest banks in India. It was founded
by an eminent freedom fighter known as Dr. Bhogaraju Pattabhi
Sitaramayya.

 The Bank was registered on 20th November 1923 and


commenced business on 28th November 1923 with a paid up
capital of Rs 1.00 lakh and an authorised capital of Rs 10.00
lakhs in Machilipatnam.

 Andhra Bank was Nationalized on 15th April 1980 and moved


it’s head quarter to Hyderabad.
 Its Head Office at 5-9-11, Dr. Pattabhi Bhavan, Saifabad,
Hyderabad-500004.
Its Core Banking Solution Department is located at 3rd Floor, “D” Block,
Cyber Gateway, Madhapur, Hyderabad-500081,India

 The bank has a staff strength of around 15000, which includes Officers,
clerks and sub-staff.

 The Bank has 1448 branches, 68 Extension counters and 18 Service


branches and 778 ATM’s.

 It is ranked as one of the best performing banking institutions in India


with business standing at Rs.105,280 Crs as on June’ 09. The bank has
a wide clientele base of about 2.5 millions.
Listing details

 Listed On
The Stock Exchange, Mumbai,
National Stock Exchange of India Ltd.

L is tin g In
VISION
Corporate Identity

TOGETHERNESS IS THE THEME


 The Symbol of Infinity denotes a Bank that is prepared to do
any thing, to go to any lengths, for the customer
 The Blue pointer on the top represents the philosophy of a
Bank that is always looking for growth and newer directions.
 The Key hole represents Safety and Security
 The Chain indicates togetherness
 The colours Red and Blue denote dynamism and solidity
Board of Directors:

 Shri R S Reddy , Chairman and Managing Director


 Sri Anil Girotra , Executive Director
 Smt Madhulika P Sukul , Govt. of India Nominee Director
 Shri B Maheshwaran , RBI Nominee Director
 Sri V H Ramakrishnan , Director
 Sri Prem Prakash Pareek , Director
 Sri K Ramakoteswara Rao , Director
 Sri Anup Prakash Garg , Director
 Sri T Ravindranath , Director
 Dr Shaibal Gupta , Director
 Shri Rajib Sekhar Sahoo , Director
 Shri K Raghuraman , Director
Goals
 Bank aims to attain a business mix of Rs.130,000
Crs by the end of March’10 at a growth rate of 30%
and Rs.150,000 Crs by September’10.
 Bank is targeting to reach CASA percentage of 33%
of total deposits by March’10.
 Bank shall be rolling out the insurance products of its
own Joint Venture for sale by July ’10.
 Bank has plans of opening 121 branches in the
present financial year mostly in the Northern parts of
India and installing 50 ATMs.
Products
 Deposit Schemes  Technology Products
 AB Savings Accounts  Multi City Cheque Facility
 AB Current Accounts  On-Line Tax Accounting
 AB Term Deposits System (OLTAS)
 AB Arogyadaan Scheme  Real Time Gross Settlement
 AB Bancassurance Life (RTGS)
 AB Bancassurance (Non
 Instant Funds Transfer
Life)  ATM Services
 Retail Loans  Any Branch Banking
 Agricultural Loans  Electronic Clearing Service
 Corporate Banking (ECS)
 NRI Banking
 National Electronic Funds
 NRI Products and Services
Transfer
 NOSTOR details for
remittance
 Western Union Money
Transfer
Value added services
* Introduced 8 a.m. to 8 p.m. and 7 day
Banking in select branches to extend the
Service hours to clientele.
* Opened a Representative Office in Dubai
to coordinate with NRIs for increasing
our NRI customer base.
* Imparting training to Agriculturists, Rural Un-
employed youth on vocational courses by our
9 Rural Development Institutes
 Mobile Banking – Connected branches improved to 453, registered
users 4175
 Daily ATM hits crossed 1 lakh per day.
 Mobile Recharging facility
 Tech savvy products such as e-Seva, e-Hundi, Utility Bill Payment, Visa
Electron Debit Card, Instant Funds Transfer, On-line Tax Accounting
System, RTGS etc.
 Various Insurance Linked Deposit products like AB Jeevan Abhaya, AB
Jeevan Prakash, AB Jeevan Prakash Plus, AB Arogyadaan and AB Flex.
 New Tech savvy product AB Kisan Vikas ATM Card has been
introduced.
 Shortly introducing – Internet Payment Gateway, Internet Banking.
Other services
SWOT Analysis
STRENGTHS: WEAKNESS:
Right strategy for the right  Some gaps in range for certain
products.· sectors.·
Superior customer service vs.  Customer service staff need
competitor· training.·
Great Brand Image· Products  Processes and systems, etc·
have required accreditations.· Management cover insufficient.·
High degree of Sectoral growth is constrained
customersatisfaction. by lowunemployment levels and
Good place to work· competition for staff
Lower response time with
efficient andeffective service.·
Dedicated workforce aiming at
making along-term career in the
field.
OPPORTUNITIES: THREATS:
 Profit margins will be good.·  Legislation could impact.·
Could extend to overseas Great risk involved·
broadly.·  Very high competition
 New specialist applications.· prevailing in the industry.·
Could seek better customer Vulnerable to reactive attack
deals by major competitors·
 Fast-track career  Lack of infrastructure in
development opportunities rural areas could constrain
on an industry-wide basis. investment.·
 · An applied research centre  High volume/low cost
to create opportunities for market is
developing techniques intenselycompetitive
toprovide added-value
services.
Mile stones and Awards
 Award for Best Performance under Kharif Loans
 Best Bank in lending to Agriculture
 Best Banker in lending to Unemployed Youth under Rajiv Yuva Sakthi
 SAFA award
 "BEST BANK AWARD" by IDRBT, Hyderabad.
 Ranked 683rd among Top 1000 Banks in the World
 2nd Highest Mover in the World having climbed 277 places over
previous year
 Ranked as the Top Number 1 Bank in Asia under the "Return on
Capital"
 ISO 9001:2000 Certification has been awarded to two of our offices
- STAFF COLLEGE
- DATA CENTRE at Department of Information Technology
Business strategies
 1.Reduce cost of funds
 2. Increase fee-based revenue
 3. Maintain our credit quality
 4. Expand our presence in domestic and
international markets
 5. Maintain our commitment to technological
innovation
 6. Enhance our retail banking business
 7. Strengthen our priority sector banking
business
CSR

Andhra Bank Established Andhra Bank Rural


Development Trust in the year 1989 to
Care and Concern for Rural People.
Objectives of the Trust
Transferring latest agri technology to farmers

Generating self employment opportunities in rural


areas
Economic empowerment of rural women

Skill improvement and Entrepreneurship development


for rural unemployed youth

Organizing Farmers’ Clubs

Ensuring Sustainable Rural Development


Strategy Adopted

ABRDT Sponsors Institutes of Rural Development

Centers of Service
Berhampur ( Orissa)
Amadalavalasa (A.P.)
Rajam ( A. P. )
Rajahmundry ( A. P.)
Eluru ( A. P. )
Machilipatnam (A.P.)
Guntur ( A. P. )
Nellore ( A. P. )
Kanhangad ( Kerala)
Activities of Rural Institutes

Training Programmes:

Skill Improvement Trainings


Entrepreneurial Development Programmes ( EDPs )
Agriculture and Animal Husbandry
Basic level Orientation Programmes

Method Demonstrations:
Vermiculture
Micro Irrigation Equipment
Solar Equipment
Power Tools
Escort Services

Post training guidance and monitoring through


a)Follow-up cards
b) Field visits to villages
Business Counseling and guidance in micro enterprise
establishment

Settlement Assistance

Assistance in Credit Linking by coordinating with bank


branches

Arranging Interactive Meets for Ex-trainees with bankers


to facilitate financial assistance
Financial performance
 Bank has achieved a Total Business of Rs.105,280 Crs
as on June’ 09 from Rs.83,256 Crs as on June’ 08, with
a growth of 26.45%.
 Deposits grew by 22.76% from Rs.49,175 Crs as on 30th
June’ 08 to Rs.60,369 Crs as on 30th June’09.
 Net profit jumps to Rs.256 Crs with robust growth of
230%.
 Total business goes up to Rs.105280 Crs, up by 26%


 Accelerated growth of 28.56% achieved in Credit at
Rs. 44,428 crore
 Total Deposits rose to Rs. 59,390 crore – A growth
at 20.13%
 Operating Profit improved to Rs.431.80 cr. in Q4 (a
growth of 37.90%)
 Net Profit in Q4 reached Rs.201.21 Crore recording
an increase of 61.94%.
 Interest Income during Q4 -2008-’09 increased
growth rate of 31.15% over Q4 of 2007-’08.
 Net Interest Income grew by 21.45%
 Net Interest Margin (NIM) for the year was 3.03 %
against 3.00% in the previous year.
 Other Income increased by 22.18%
 Percentage of Gross NPAs to Gross Advances
31.3.’08 to 0.83 % as on 31.03. 09
 Percentage of Net NPAs to Net advances stood
at 0.18%.
 CRAR improved from 11.61% as on 31.3.2008 to
13.22% as on 31.3.2009. This performance is
against RBI norm of 9%
 Return on Assets stood at 1.09%
Ratio analysis
 Total Income improved by 26.96% from Rs. 4836 crore to Rs.6140
Crore as on 31.3.2009
 Interest Income increased by 27.68% from Rs. 4210 crore to Rs.5375
crore.
 Net Interest Income increased by 21.45% from Rs. 1340 crore to
Rs.1627 crore.
 The Net Interest Margin is at 3.03% compared to 3.00% in the previous
year.
 Other Income improved from Rs.626 crore as on 31.03.08 to Rs.765
crore as on 31.03.09
 Operating Profit stood at Rs.1,288 Crore as at the end of Mar’09
compared to Rs. 1057 cr as on 31.03.08 with a yoy growth of 21.86%.
During Q4 the Operating Profit increased by 37.90%
 Net Profit improved to Rs. 653.05 Crore as at the end of March 2009, a
Yo-Y growth of 13.46%, while in Q4, Bank achieved growth of 61.94%.
Comparison with Competitors
Findings
 The credibility of Andhra Bank is good in comparison with to its
competitors as Government of India is major share holders in the company.
 Andhra bank has a potential adopted market in certain region and hence
has an opportunity for growth.
 The product of Andhra bank has good credibility in the region compared to
its competitors
 The advertisement of the bank was very effective from the first day of its
airing the fifth day and there after it starts declining.
 The initial balance for A/C opening is 500/- and that’s why people are
interested in opening the same.
Limitations
 Time constraints.
 Traveling .
ANDHRA BANK –
MAKING A DIFFERENCE
WITH PEOPLE, IDEAS
AND SOLUTIONS.
with
CARE & CONCERN
By
Nagarjuna M
MBA,sms,
JNTUH,HYD.