CERTIFICTE OF APPROVAL The following Summer Project Report Title “Sector Analysis” is hereby approved as certificate studies in management carried out in a manner satisfactory to warrant its acceptance as a prerequisite for the award of PGDBM for which they have been submitted. It is understood that by this approval the undersigned do not necessarily endorse or approve any statement made, opinion expressed or conclusion drawn therein but approve the summer Project only for the purpose it is submitted. Summer Project Report Examination Committee for evaluation of Summer Project Report.

Name 1. Faculty Examiner _________________

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This is to certify that Ms _____________________________ a student of PGDBM has worked under our guidance and supervision. This Summer Project Report has the requisite standard and to the best of our knowledge no part of it has been reproduced from any other summer project, monograph, report or book.

Project Guide

Project Guide



ACKNOWLEDGEMENT It gives me immense pleasure, having done a project on an interesting and knowledgeable topic like “Sector Analysis.” This project has not only widened my horizon as far as academics are concerned but also helped me to enlarge my knowledge bank. Marketing Management and Human resources are not topics, which could be handled with certain amount of casualty. It requires a deep study and hard work, which is a key to success. There are many people associated with this project without which this project would not have been possible. I thank my Institute who has given me an opportunity to show my skills. I also thank all my nearer and dearer ones without whose support this project would not been possible. I would like to thank ______________, who allowed me to do this project in Max New York Life successfully.

Table of contents

1 Industrial Profile of Life Insurance Sector 2 History of Life Insurance Sector 3 Company Profile of Max New York Life Insurance 4 Global Banking Industry 5 Indian Banking Rates 6 Analysis of Banks (ICICI, Union and Sbi) 7 Comparison, Conclusion & Recommendation

01 03 11 24 26 28 47

You cannot take anything for granted in life. the person seeking the cover. Insurance policy helps in not only mitigating risks but also provides a financial cushion against adverse financial burdens suffered. the insurer or the insurance company. Insurance is system by which the losses suffered by a few are spread over many.1 Introduction:Life is a roller coaster ride and is full of twists and turns. Remember that first and foremost. Insurance also serves as an excellent tax saving mechanism. Within this contract. Insurance policies are a safeguard against the uncertainties of life.0 Insurance Company 2. 2. Thus. Insurance is a protection against financial loss arising on the happening of an unexpected event. insurance is about risk cover and protection.2. the insurer agrees to pay the insurer for financial losses arising out of any unforeseen events or risk in return for a regular payment of premium. so at least be prepared for them and their aftermath by taking insurance policies. illness. these insurance plans are also called as a Risk Cover Plans. Insurance is an attractive option for investment but most people are not aware of its advantages as an investment option. theft. natural disaster. As you cannot fight against these man-made and natural calamities. Endowment Policy . and the insured. The Government of India has offered tax incentives to life insurance products in order to facilitate the flow of funds into productive assets. By buying life insurance. exposed to similar risks. which means to financially compensate for losses that occur uncertainly through accident. you buy peace of mind. Insurance is a contract between two parties.2 Types of Insurance:1.

4. which covers a home loan. 5. 7. Unit Linked Insurance Plan . along with the bonus accumulated during the term of the policy. at the end of which the sum assured is paid back to the policyholder. Term Life Policy Term life insurance policy covers risk only during the selected term period. co-operatives. Group Insurance Policy Group insurance offers life insurance protection under group policies to various groups such as employers-employees. professionals. 3.An endowment policy covers risk for a specified period. the risk cover comes to an end. Loan Cover Term Assurance Policy Loan cover term assurance policy is an insurance policy. Pension Plan or Annuities A pension plan or an annuity is an investment that is made either in a single lump sum payment or through installments paid over a certain number of years. Such a policy covers the individual's home loan amount in case of an eventuality. 2. Unit Linked Insurance Plan Unit linked insurance plan (ULIP) is life insurance solution that provides for the benefits of risk protection and flexibility in investment. 6. If the policyholder survives the term.

The changes in life insurance industry in India is seen in four different phases – 2. England in particular. As risk is covered for the entire life of the policyholder. as long as the policyholder is alive. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. 10. Whole Life Policy A whole life policy runs as long as the policyholder is alive. 2. such policies are known as whole life policies. particularly after the industrial era – past few centuries – yet its beginnings date back almost 6000 years.Unit linked insurance plan (ULIP) is life insurance solution that provides for the benefits of risk protection and flexibility in investment. Joint Life Policy Joint life insurance policies are similar to endowment policies as they too offer maturity benefits to the policyholders. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. Insurance in India has evolved over time heavily drawing from other countries. apart from covering risks like all life insurance policies. Money-back Policy Money back policy provides for periodic payments of partial survival benefits during the term of the policy. Ancient Indian history has preserved the earliest traces of insurance in the form of marine trade loans and carriers’ contracts. 9. 8.3 History & background of Insurance industry:The story of insurance is probably as old as the story of mankind. Though the concept of insurance is largely a development of the recent past. therefore.4 Benefits of Insurance:- .

This could be a serious concern if the insured happens to be the sole bread winner. Unless they invest in Life insurance or other forms of insurance like health insurance it becomes next only to impossible to meet the financial demands especially during the old days. However it is also important to note that the age at which People die is also ever decreasing. It is looked upon as a lucrative career option. pollution. The increase in National Income and gross domestic product are . It has generated lots of job opportunities. stress.Life Insurance Policy is a form of security for the person who insures his life and his family. Increase in the Cost of Living and Spending Power The purchasing power of the consumers and the standard of living has experienced a steep rise over the years. This increased spending is also due to increase in the costs of living apart from paying expensive medical bills. This necessitates people to make adequate measures to yield income for their family and dependents. Some reasons for this include unhealthy living style. Some individuals see this as an option to plan their retirement. Moreover the amount that you are going to get at the end of the policy period in a term life policy also makes it a rewarding investment. Benefits of Client:A life insurance policy vouchsafes security for your dependents after your demise. This results in an increased spending at an old age. The following reasons substantiate benefit of a life insurance policy for an individual. They can seek out their living even at the absence of other active source of income. Advancements in Health Care The mortality rate has declined rapidly even though the fact remains that the number of people who die at an early age is on the increase. Early Deaths The mortality rate is experiencing a declining trend in many parts of the world. and some natural calamities. This is mainly due to the advancement in healthcare and the awareness on medical facilities. Life insurance policies have helped trade and other economic activities to flourish in a great manner.

Insurance comes in handy to meet such an unexpected expense. Benefits of Economy & Society: Provides Employment. Tax Concessions Income tax concessions are available to individuals and corporate houses who adopt insurance policies. Individuals incur many unexpected expenses due to the growing needs. It also makes sure that an individual is able to meticulously plan his finances. Students who earn while studying and those who take up full time employment after their studies see insurance as a profitable scheme to regulate their savings. Many have been making investments in Insurance with the sole aim of enjoying tax benefits.  Channelizes Capital Flow. This naturally increases spending power. Insurance option is more or less an interest free loan. An individual can cancel his insurance policy and obtain a huge amount if it is imperative in meeting an urgent expenses and he does not have alternative sources for finance. . along with technical expertise (actuarial knowledge domain).  Supports ancillary industries by way of bonded product marketing. Apart from tax concessions life insurance entails individuals to enjoy more benefits as they have special and attractive schemes for this segment. Since the investments increases the economic activities in the country automatically increases.partly responsible for this.  Attracts international trading partners thereby bringing in more FDI and FII. Life insurance companies therefore do the needful to consumers. Best Option for Salaried Youth Insurance is by and large regarded as one of the savings scheme.

and hence sometimes looked up as social responsibility by the Corporate. 1956 nationalizing the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The Indian Life Assurance Companies Act. The LIC absorbed 154 . 1870 saw the enactment of the British Insurance Act and in the last three decades of the nineteenth century. There were also allegations of unfair trade practices. the Government of India started publishing returns of Insurance Companies in India.  Provides coverage and safeguard against potential loses. Phase – II [1900-1955] In 1914. with a view to protecting the interest of the Insurance public. the Bombay Mutual (1871). was dominated by foreign insurance offices which did good business in India. In 1938. In 1928. Royal Insurance.  Insurance of Risk gives higher flexibility to Business. there were a large number of insurance companies and the level of competition was high. the earlier legislation was consolidated and amended by the Insurance Act. decided to nationalize insurance business. An Ordinance was issued on 19th January. The Government of India. therefore. This era. Phase – I [1800-1900] Life Insurance in its modern came to India from England in the year 1818. Oriental (1874) and Empire of India (1897) were started in the Bombay Residency. namely Albert Life Assurance. However. however. In 1829. The Insurance Amendment Act of 1950 abolished Principal Agencies. Liverpool and London Globe Insurance and the Indian offices were up for hard competition from the foreign companies. 1912 was the first statutory measure to regulate life business. The advent of life insurance business in India can be seen with the establishment of the Oriental Life Insurance Company in Calcutta. the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies. 1938 with comprehensive provisions for effective control over the activities of insurers. This Company however failed in 1834. the Madras Equitable had begun transacting life insurance business in the Madras Presidency. Supports a social cause.

the New India Assurance Company Ltd. Phase – IV [FROM 2000] Insurance Regulatory & Development Authority:- .. 1973. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on January 1sst 1973. former Governor of RBI. The Tariff Advisory Committee was also set up then. In 1993.. It came to India as a legacy of British occupation. In 1968. The history of general insurance dates back to the Industrial Revolution in the west and the consequent growth of sea-faring trade and commerce in the 17th century. in the year 1850 in Calcutta by the British.  Phase – III [1956-2000]: Nationalization of Insurance Sector In 1957. to propose recommendations for reforms in the insurance sector.Indian. the Insurance Act was amended to regulate investments and set minimum solvency margins. 107 insurers were amalgamated and grouped into four companies. In 1907. This was the first company to transact all classes of general insurance business. the Government set up a committee under the chairmanship of RN Malhotra. The objective was to complement the reforms initiated in the financial sector. general insurance business was nationalized with effect from 1st January. a wing of the Insurance Association of India was formed. 16 non-Indian insurers as also 75 provident societies—245 Indian and foreign insurers in all.. The General Insurance Council framed a code of conduct for ensuring fair conduct and sound business practices. the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector. a General Insurance Council. namely National Insurance Company Ltd. the Indian Mercantile Insurance Ltd was set up. In 1972 with the passing of the General Insurance Business (Nationalization) Act. General Insurance in India has its roots in the establishment of Triton Insurance Company Ltd.

The IRDA Act also lifts certain barriers to foreign direct investment in Indian insurance industry. When IRDA came into being. regulations stipulate that they have a capital base . However. Under the IRDA Act.Insurance Regulatory & Development Authority is regulatory and development authority under Government of India in order to protect the interests of the policyholders and to regulate. only players in the insurance industry were Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). all appointed by Government of India. Global insurers are now permitted to set up and register a domestic company in order to write business in India. To have its license application considered. however in last decade 23 new players have emerged in the field of insurance. they must obtain a license from the IRDA before being permitted to write business. Impact of IRDA in Insurance Sector:The creation of IRDA has brought revolutionary changes in the Insurance sector. It is basically a ten members' team comprising of a Chairman. The IRDA also successfully deals with any discrepancy in the insurance sector. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. a domestic private company must be registered in accordance with the Companies Act of 1956 and have approximately US$ 20 million of investment capital. However. private companies can now operate in India's insurance industry. published by the IRDA 2000. Liberalization of Insurance sector: Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. promote and ensure orderly growth of the insurance industry. This organization came into being in 1999 after the bill of IRDA was passed in the Indian parliament. In the private sector 14 life insurance companies have been registered. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. five full time members and four part-time members. The specific licensing requirements that Private Indian Companies must fulfill are set forth in the Registration on Indian Insurance Companies Regulations. In last 10 years of its establishment the insurance sector has seen tremendous growth.

5 Competition:In the years since the IRDA Act initiated market reforms.  Bajaj Allianz Life Insurance Company Limited. The entry of a large number of Indian and Foreign private companies in life insurance business has to lead greater choice in terms of products and services. Thus. Private insurance companies have to date written a small percentage of business in this sector during the last three years. and corporate agents have provided additional ways of getting products and services to customers.  Aviva Life Insurance Co.  Bharti AXA Life Insurance Company Ltd. they must form a joint venture with an Indian partner that is able to invest the remaining funds. The IRDA Insurance Brokers Act in India 2002 permitted overseas insurance and reinsurance brokers to enter the market. Thus. banc assurance. but with the same equity cap as that governing the operations of foreign insurers and reinsurers. .  Canara HSBC Oriental Bank of Commerce Life Insurance Co. Since the IRDA first enacted these rules. 13 new life insurance companies have entered the market. and new distribution channels among them brokers. foreign brokers must also form a joint venture with an Indian partner in order to establish an Indian broking house. and their investment in such company is capped at 26 percent. Ltd. At present there are 23 private insurers with two standalone private players and remaining private-foreign joint venture. but they have ushered in a competitive environment that has accelerated market growth. The equity investments limit is the same for global reinsures seeking to write business in India. The no of Life insurance companies are: AEGON Religare Life Insurance Company Limited. Ltd. but they are required to put up a capital of approximately US$ 45 million in order to establish a domestic company. the insurance sector has experienced some remarkable changes. to participate in the market. 2.of at least US $ 20 million. Increased consumer awareness of the benefits and importance of insurance and reinsurance has generated many more buyers.  Birla Sun Life Insurance Co. the Internet. Ltd. India Pvt.

 Kotak Mahindra Old Mutual Life Insurance Limited.  Star Union Dai-ichi Life Insurance Comp.1 Company’s Introduction:Max New York Life Insurance Company is a joint venture between New York Life International Inc. Max New York Life Insurance started its commercial operations in India in 2001.  Sahara India Life Insurance Co. Ltd.  Life Insurance Corporation of India. 3.  IDBI Fortis Life Insurance Company Ltd. joint venture with a paid up capital of Rs.  Future Generali Life Insurance Company Ltd.  Met Life India Insurance Company Ltd. 250 cr. It is the first life insurance company in India to be awarded the IS0 9001:2000 certifications.  ING Vysya Life Insurance Company Ltd. Ltd.  HDFC Standard Life Insurance Co. 3.  Reliance Life Insurance Company Limited.  SBI Life Insurance Co. The company has around 133 offices all over the country. Ltd. Ltd. 807 cr. DLF Pramerica Life Insurance Co. Ltd. Ltd. Ltd. Ltd..  Max New York Life Insurance Co. 3. Max New York Life Insurance Co Ltd is a Rs.  Tata AIG Life Insurance Company Limited.  ICICI Prudential Life Insurance Co.0 Max New York Life Insurance Co.2 Values:Knowledge: . a Fortune 100 company and America's largest life insurance provider and Max India Limited one of the leading multi-business corporations in India.  Shriram Life Insurance Co. Ltd.

In line with its vision to be the Most Admired Life Insurance Company in India. and our expertise is in helping people protect themselves. Excellence: Excellence at Max New York Life implies the ability to perform at a consistently high level. Perfectly combining global expertise with local knowledge.Knowledge leads to expertise. It is all about trust. The company has positioned itself on the quality platform. processes and the organization. The Company ensures that everyone who represents the brand carries a promise: we care in word as well as deed. it has developed a strong corporate governance model based on the core values of excellence. personalized. knowledge. one of India's leading multi-business corporations. we are India's life insurance Specialist. Focused on the value of continuous improvement in people. Every individual who represents the company is for us our brand champion. Transparency. Current. a Fortune 100 company and Max India Limited. Honesty: Honesty is the heart of the life insurance business.3 Company Profile:Max New York Life Insurance Company Ltd. Max New York Life believes that for knowledge to be of value it must be focused. integrity And dependability from the cornerstones of the Max New York Life experience. The service process is responsive. the company strives for the highest standards of quality in every aspect of its business. tested and shared. . 3. is a joint venture between New York Life. Caring: Max New York Life is redefining the life insurance paradigm by focusing on customers first. honesty. humane and empathetic.

2. designed as to meet your long term financial goals & aspirations.  Group Gratuity. It now has 30 life insurance products and health insurance including 8 riders that can be customized to over 800 combinations enabling customers to choose the policy or plan that best fits their need. Life Partner Plus).  Employee Deposit Linked Insurance. Group Insurance:  Group Term Life.  Unit-Linked Group Gratuity. Endowment to age 60 Plan).  Retirement (Easy Life Retirement Plan.  Riders.  Savings Plan (Life Gain Endowment Plan. Life Gain Plus.  Unit Linked (Life Maker Investment Plan. 20 Year Endowment). Individual Insurance:  Protection Plan (including Whole Life Plan.4 Products:Max New York Life brings to you specially customized products and services that are flexible and can be customized to suit your needs. . The company has a plan for every need.  Children Plan (Children Endowment Plan.caring. They help you fulfilling your dreams & commitments. integrity and teamwork. The list of few plans provided by Max New York Life Insurance Company Limited is given below: 1. Life Maker Pension Plan). 3. Stepping Stones). Life Protector Plus.  Credit Shield. The strategy is to establish itself as a Trusted Life Insurance Specialist through a quality approach to business. Life Pay Money Back Plan. Life Protector. Max New York Life also offers 6 products and 7 riders in group insurance business.

5 Promoters:Founded in 1985.  Smart Steps.  Max Assure Family Money Back.  Max Vriksha Money Back Plan). 4. Max India Limited is a multi-business corporate.  Life Maker Premium. People and Service oriented businesses of: . 3.  Max Assure Business Builder.  Max Mangal Endowment Plan. focused on Knowledge. driven by the spirit of Enterprise. NAV:  Life Maker Investment.  Max Assure Future Builder. Max Assure:  Max Assure Bonus Builder. Today.  Max Assure secure returns builder.3.000 shareholders. Max India Limited is a Public Limited company listed on the NSE and BSE of India with over 26.  Easy Term.  Life Maker Pension Plan. Rural insurance:  Max Suraksha. 5.

Max also maintains Interests in:  Specialty Plastic Products for the packaging industry (Max Specialty Products). The balance shareholding is held by the public and Institutional Investors.  Electronic Component Distribution.  Mobile Telephony. Prominent shareholders are Mr.  Healthcare Staffing (Max Health Staff). The Company’s Main Interests and Partnerships were the following: Business  Bulk Active Pharmaceuticals.  V-SAT Communications.  Plating Chemicals.  Information Technology. USA  Avnet Inc. Partners  DSM Gist Brocades  Motorola.. Analjit Singh and a leading private equity firm.7% of the total shareholding. Hong Kong . Healthcare (Max Healthcare)  Life Insurance (Max New York Life Insurance)  Clinical Research (Neeman Medical International) Till 1999. USA  Hutchison Telecom Ltd. Warburg Pincus which accounts for 28.

6 Mission: Become one of the top quartile life insurance companies in India.. a subsidiary of Max India Limited is India’s first provider of comprehensive. Chairman. much higher than the standard 100 hrs of mandatory training laid down by the IRDA. Life…Our Focus. Germany  Mind Crossing.  Be the brand of first choice. Around 345 Max New York Agent Advisors qualified for Million Dollar Round table (MDRT) membership in 2006. USA & Lockheed Martin. The insurance agents employed at Max New York Life Insurance Co Ltd are trained inhouse with a rigorous training program of over 152 hrs.  Be a national player. and integrated world-class healthcare services. a Fortune 100 company. seamless. Comsat Investment Inc. Max New York Life Insurance. is one of the leading private life insurers in India.  Be the employer of choice. 3.8 Board of Directors:Mr. standardized. 3. founded as a Joint Venture between Max India Limited and New York Life.7 Vision:To become the most admired life Insurance company in India. the Company reinvented and restructured itself to focus on the businesses of ‘Life’ under the theme. Max India Limited. USA  Atotech.  Become principal of choice for agents. 3. . Max Healthcare. USA In 2000. Analjit Singh. It is an internationally renowned congregation of world's top insurance agents.

a joint venture formed in the year 2000 between Max India Ltd and New York Life International of USA. Max New York Life Insurance Dr. 3. Director. Rajesh Khanna. Max New York Life Insurance Mr. Director. CEO & Managing Director. & Chief Operating Officer.Mr. Omkar Goswami. Mr.9 Management of Company:Rajesh Sud. . Director. Rajesh Sud. Max New York Life Insurance. to establish life insurance operations in India. Vice Chairman. Richard Mucci. Mr. Managing Director and Executive Director of Distribution Rajesh is a founder team member of Max New York Life Insurance Co Ltd (MNYL). Rajit Mehta.Director. Max New York Life Insurance Mr. Max New York Life Insurance. Max New York Life Insurance. Executive Director. Anuroop (Tony) Singh. Max New York Life Insurance Mr. Chief Executive Officer. John Harrison.

He earlier led the company’s Product Management team through coordination across all functions and transfer of best practices from New York Life. Prior to his appointment at Max New York Life Insurance.Rajit Metha. Middle East and South Asia at ANZ Grindlays Bank. He has been responsible for Risk Management and Product Sunil Kakar. Anil was regional Head of Credit. Personal Finance Services. Anil Mehta. Chief Operating Officer Rajit is a founder team member of the Max New York Life team and has seen the company through its formative years and in dealing with the challenge of recruiting the best talent available in the marketplace and building team spirit among people from diverse backgrounds.New Markets SBU Anil Mehta has successfully led the company’s sales efforts to large corporate houses. Senior Director & Chief Financial Officer . Senior Director .

accounts. Ajay Seth. Sunil has 20 years of diversified banking experience with Bank of America in areas of Financial Control. Prior to joining Max New York Life. Senior Director & Chief Marketing Officer Debashis Sarkar is responsible in strengthening and steering the Max New York Life’s marketing programme with a vision towards building India’s most admired life insurance company. striking a balance between business objectives and statutory and regulatory requirements. He was also instrumental in establishing additional channels of distribution across the country. .Legal & Compliance Ajay Seth joined the company in April 2003 and in a short period of time he has helped evolve the company’s legal and compliance strategy. investment management and risk management. Debashis Sarkar. Senior Director. John Poole.Sunil Kakar is in charge of finance.

during which time he was studying at James Cook University and working on a contract basis for Sydney based Citicorp Life – the reinsurer for all Citibank generated business in Asia. 3.Appointed Actuary John Poole is the Chief Actuary at Max New York life and is also the Appointed Actuary for the Company in terms of Indian insurance Regulations.10 Organizational Structure:- M. Far North Queensland. Vice Associate Vice Regional Multi Partner & Multiple Partner In Partn Associate Assistant Sales Manager &Sales . John joined MNYL in early 2005 following an 18th month sabbatical at his home town in Cairns.

432 crore 14. India http://www.568 35 8 Over 800 6 4 443 39 (9 hub offices 30 spoke offices) 277 343 (for calendar year 2007) .com Analjit Singh Rajesh Sud Rs. 2008 Founded Started Operations Headquarters World Wide Web Address Chairman Managing Director & CEO Paid-Up Capital Employees Number of Products (Individual) Number of Riders/Options (Individual) Product Combinations Possible (Individual) Number of Products (Group) Number of Riders/Options (Group) Number of Offices Number of Offices Dedicated To Rural Business Number of Cities MDRTs 2000 April 2001 New Delhi. 1.Advisor & Max New York Life Insurance FACT SHEET – As of September 30th.maxnewyorklife.

l BaIn 1865 Allahabad Bank was established and first time exclusively by Indiansnk. From 1786 till today. was established in 1786. . They are as mentioned below: • • • Early phase from 1786 to 1969 of Indian Banks Nationalisation of Indian Banks and up to 1991 prior to Indian banking sector Reforms. The first bank in India. Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. It is no longer confined to only metropolitans or cosmopolitans in India. For the past three decades India's banking system has several outstanding achievements to its credit. New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991. the journey of Indian Banking System can be segregated into three distinct phases. The most striking is its extensive reach.History of Banking in India Without a sound and effective banking system in India it cannot have a healthy economy. Phase I The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and BengaThe East India Company established Bank of Bengal (1809). Indian banking system has reached even to the remote corners of country. In fact. though conservative.

the branches of the public sector bank India rose to approximately 800% Phase III . 1955 : Nationalisation of State Bank of India. 1975 : Creation of regional rural banks. 1961 : Insurance cover extended to deposits. 1969 : Nationalisation of 14 major banks. In 1955 The following are the steps taken by the Government: • • • • • • • • 1949 : Enactment of Banking Regulation Act. 1971 : Creation of credit guarantee corporation. 1959 : Nationalisation of SBI subsidiaries. 1980 : Nationalisation of seven banks with deposits over 200 crore. After the nationalisation of banks.Phase II Government took major steps in this Indian Banking Sector Reform after independence.

In 1991. under the chairmanship of M Narasimham. major public sector lender. . PSBs with a major share of corporate borrowings have been able to work around the norms. SBI.800 crore respectively. restructured nearly 50.000 small and medium enterprise loans.1 percent respectively during the financial year 2008-09. Amongst the private banks. a committee was set up by his name which worked for the liberalisation of banking practices. Yes Bank has shown the highest growth in NNPA.554 crore during FY2008-09. followed by South Ind Bank. ICICI Bank increased to Rs 4. Dena Bank and Bank of India restructured loans worth Rs 5.5 percent and 36. The NNPA(National Newspaper Publishers Association) of the major private lender.350 crore and Rs 4. The gross and net non-performing assets of 13 private banks have increased by a 36.

0% : 4.6900 : 49. YEN INR / 1 Pound Sterling INR / 1 Pound Sterling PLR Savings Bank Rate : 12.Rates of bank CRR SLR Bank Rate Repo Rate Repo Rate Reverse Repo Rate INR / 1 USD INR / 1 Euro INR / 1 Euro INR / 100 Jap.25% : 3.0300 : 67.75% : 3.1300 : 67.0300 : 49.00% : 24.25% : 48.75% : 4.6637 .0% : 6.6900 : 78.5% : 5.75%-13. YEN INR / 100 Jap.

5 billion rupees in the same quarter last year.Savings Bank Rate Deposit Rate : 3.0 billion rupees ($1.14% year-on-year reduction in costs due to cost rationalization measures Increase of Rs. ICICI has continued to invest in its branch network.50%-9. 2009 .5% : 7. India’s largest private bank ICICI said its net profit after tax for the January to March quarter was 7.60% ICICI Bank ICICI Bank Ltd. ICICI has 1. up from 755 branches two years ago.8 billion) from 103.438 branches across India.286 crore in CASA deposits in quarter ended March 31..9 billion rupees.12% year-on-year increase in operating profit for the year ended March 31. down from 11.44 billion rupees ($147 million). 5. and says it is in the process of opening 580 more.2009. Despite the headwinds. Total income slid to 92.

. In all FII has a major stand of 677 (49%) and than by mutual funds of 369 (26%). As we can see in the investment pattern of Promoter and Promoter Group that 1367 of sub unites is being invested and from all insurance sector had made a investment of 5.About share holding pattern.12 % (70) which is a good sign for an investor to invest it an earn profit.

Rate of bank before two year was down as compare to present year but as we can see the graph that Bank has made its investment in smart manner so it had touch the high rate but due to some reasons (rumors) it had came down .Graph of ICICI bank Study This table shows an investment and growth of company.

and now these script is moving good if a person wants to invest in these script for long term than a investor will earn a handsome amount of profit. Balance Sheet About Balance Sheet .

Share capital of bank had being increased of almost 46% from past five year and pulse point of this bank is that it provide best service to its all costumers so bank had gain revenue of almost 320% as compared to year 2005 which is very good for any company as it attract more and more costumer as well as investors towards the bank.1 bank and costumer also started trusting the bank. Along with revenue deposits. Profit and Loss of company . and other liabilities & provision had also shown a good face to investor and costumes because of all this bank had became a no. borrowing.

About P/L .

intrest expand and operating expenses had also saw a small fall but all over icici bank had moved good. to buy this share for long-term is good. While PBT of bank had increased this shows a posetive mark in market. investor or any layman wants to know his/her profit than he can find it easily by calculating EPS of his share. On other hand bank had shown a good EPS(Earning Per Share) it has almost growth of 20% but 2008-09 was a turning point of its profit it has faced a of loss of 11% but all over it has saw a good profit. If a person. Union bank . So.Total income of bank had increased by more than 200 % but it has taken a stop in 2008 due to some of the major reason (rumors) total income of bank had came down by 3 % as compared to previous year along with these expenditure.

The Ratio of Net NPA to Net Advances has improved from 2. Advances Rs. Net Interest Margin is 3.64% in 2005 • . Nearly 351 ATMs are installed.31%.41.000 employees in Union Bank of India Key Performance figures of Union Bank of India for March 2005 • • • Union Bank of India proposes a total dividend of 35% for 2004-05.822 crores. 573 crores showing a growth of 6.00% in March 2004 to 8.33% in the year 2005 Yield on Investment declined from 9.Union Bank of India was inaugurated by Mahatma Gandhi eight decades ago. Cost of Deposits has come down from 5.87% in 2004 to 2. Total business crosses the landmark figure of Rs.64. Bank posted a net profit Of Rs. Yield on Advances which was 9. 61.15. 103 crores. Deposits at Rs.1.03% in the year 2004 fell to 8. Union Bank of India is a Public Sector Unit with 60.719 crores for the year ended March 2005. Earnings per share at Rs.07% • • • • • • • • Capital Adequacy stands at 12.64% in March'04 to 4.09% as of March 2005.1 lakh crores.20% in the year under report.97% in March 05.85% Share Capital held by the Government of India. • Operating profit For the year ended March 2005 was Rs. Union Bank of India is having more than 600 branches and extension counters all over the country. Today there are more than 26.

15 % of Share Capital is presently held by Institutions. 2002 and 39.Union Bank of India IPO Union Bank of India came out with its Initial Public Offer (IPO) in August 20. . Individuals and Others.

But . Graph .3%) is being covered by insurance company like MNYL. Total investment in the bank is of Rs. 6(3.43 which is good for a Bank so its also good to invest in these bank as a long – term as well as for short – term also. State Government and Foreign investor had invested in these bank from long – term as we know that Foreign investor play a VITAL role to move script so we should invest it as a long – term investor.226. from which Rs. Central.768(100%). State Government and Foreign investor had invested in same ratio of 55.About share holding pattern We can see the investment pattern of union bank.I would like to invest for long – term as we can see that Central.

Black line shows an AVERAGE of a script. .Study This graph shows a progress in the script so to invest as a long term investor is good opportunity as from past two years it’s facing a Bull market. This script has shown almost a change of 75m so it’s good to enter in market to buy a script .

Balance Sheet .

Bank also has a good borrowing.About Balance Sheet Share capital of union bank was 4601. In amount of liabilities it had taken a huge jump of 220% which is good for the bank. I would like to suggest to all investor to invest it as a short – term (INTRA DAY. Other. total assets had also given a good response in all Total assets had sleeps up to 220%.Y . but had faced a loss of 20% from financial year 2008-07.Though share capital was EQUAL bank had saw a bull market an enjoyed Revenue growth of almost 15% Y.18 (100%) in financial year 2005 which is being increased to 5051.) Profit and Loss OF UNION BANK .O.18 a growth of almost 12% which had being remain constant till year 2008-09 .

which shows a loss of 22%.About P/L of UNION BANK Script of this bank is interesting as interest of this bank is growing by 15% each year so it is expected to increase further in coming year. As bank started working smoothly bank was again able to take off its flight and had became a stable company and had generated . But other income of this bank has taken different face (loss).

In financial year 2004 – 05 tax amount was -2149.while EPS had become 2. As income had increased side by side expenses (operating expenses) had also increased. but in financial year 2008 – 09 bank had paid tax of 12600 which is a big amount of tax to pay.40.5 times of financial year 2004 – 05. As well as total income had also saw a growth of 100%.Taxes were negative in financial year 2004 – 05. PBT (Profit before Tax) has saw a hick of more than 380% as compared to financial year 2004 – 05 . Total Profit & Loss had also increased 150% . And from that bank was so successful that it has faced 100% growth as compared to financial year 2005 – 04.As bank had moved good in that year so it came in profit and had able to pay tax . .income of more than 40% which was unbelievable.

2 crore from the previous year’s Rs.6 crore in 2007-08.’ SBI chairman O.645. The total amount restructured during the year was Rs. 121 crore for 2008-09 as against Rs.8. The net non-performing asset (NPA) ratio for 2008-09 stood at crore.729 crore the year before.62 percent rise in its net profit for the quarter ended March 31.76.6. compared to 1.P.76 percent. a rise of 35. The group’s consolidated net income crossed the trillion rupee mark to Rs.113.62 percent May 9th.SBI’s total income for the fiscal rose 33 percent to Rs.5 percent.State Bank of India State Bank of India net profit up 45.742 crore from Rs.093 crore (Rs. the country’s largest lender.1. Bhatt told reporters here.8 crore. Consolidated net profit was at Rs. State Bank of India (SBI). a 22 percent increase from Rs.218.10. 25 percent up from the previous fiscal’s Rs.960.310 crore .479.The country's largest lender State Bank of India (SBI) Saturday reported a 45.78 percent in 2007-08. 2009 MUMBAI .1.955.62 percent to Rs.883 crore in the corresponding quarter of 2007-08.2 crore. has posted a net profit of Rs 9.1 trillion) in 2008-09. The bank is already present in 33 .90. ‘Net profit for the fourth quarter (January-March) of 2008-09 increased 45.57.

countries. . SBI has plans to increase its Singapore operations from the present five branches to 12 this year and to 20 next fiscal.

07 which is good for a Bank so it’s also good to invest in this bank for long – term as we can see that Central. State Government and Foreign investor had invested .About share holding pattern We can see the investment pattern of bank. Central. State Government and Foreign investor had invested in same ratio of 62.

in these bank from long – term as we know that Foreign investor play a VITAL role to move script so we should invest it as a long – term investor. As insurance company had invested an good amount so if a normal investor wants to invest in it can earn a good profit in the investment of bank there is a investor like TRUST which is a good sign for bank Graph of SBI . Among all three banks insurance company had invested the major amount among all.

During this period it has touch 290 as the highest and 150 as the lowest. If an investor wants to invest in this script than he should invest for short term may be as intraday investor Balance Sheet . So. this script has a good movement. It has shown a change of 10m from 215 – 225 only.Study The bank’s price is volatile throughout its journey.

80 from 5262.About Balance Sheet Share capital had increased to 6348. Net Block was a fall for bank . Gross Block .About funds Cash and balance .But. Total Assets .e. Advances .99. total revenue had also increased in the journey of almost 111% as base year of 2004 – 05. Other Liabilities & Provisions had increased .were in journey of five year in financial year 2005 – 06 in financial year 2006 – 07 capital was same of 5262. Contingent Liability Had also taken an good walk . i. Investments .. Other Assets .99. 20% of financial year 2004 – 05 .along with Total Revenue Deposits.Balances with banks and money at call and short notice . Borrowings.

Profit and Loss OF SBI About Profit and Loss .

Operating Profit. Profit & Loss. it has fall by 9. Earnings Per Share. Interest Expended. While PBT had moved good in five years . .But. Provisions and Contingencies has also shown a positive response.20% Again if will see on Total Expenditure. Operating Expenses. it has not given a good response as compare to past financial year 2007 – 2008. Ratios • All red marks indicates downturn and green shows up turn. Equity Dividend %. Book Value per Share all of them had given a good profit. Other Income.Bank had earned 100% more interest in terse five finance year. Total Income. Reported Net Profit.

up from 755 branches two years ago. and says it is in the process of opening 580 more and also has a numbers of ATM’S through with the help of his arms and trusted costumers bank was again able to stand on its position by doing these bank had proved its value to its costumer in market. due to lot of efforts made by bank it had lead bank to No.1.as bank has its wide arms of network it has large numbers of branches . Banking is the booming sector in country like India which is on the egad to fly needs lot of support to country which will open million of doors of jobs and numbers of opportunity for many people which will all lead to the growth of country.1 There was an major fall in the share price of ICICI bank in financial year 2008 – 2009 because some of the rumors in the market . India is a developing country so if economy wants to regains than country needs money which will be lead by banks. bank had proved him in the crisis market all because of its trust whicw his costumers has on bank Any countries Economy can be said developed or developing by its infrastructure and Banking.Conclusion:- Above compression made of all three banks I came to Conclusion that ICICI Bank is the most preferred bank by many costumers as it provides the best service among all the banks and it’s the most TRUSTED BRAND amongst private bank and all private insurance. Recommendation:- . banks are backbone of country and ICICI bank is backbone of all banks.438 branches across India. bank are the hidden face of any country. Today the world is suffering through crisis but as the demand improves than we can see its benefit on the stock price.

FII. So would like to suggest that share of ICICI bank is green for long term expected with an return of almost 30%. As EPS of bank is 34 which were 27 in finance year 2004 – 05 .Bank has good returns in all banks had moved smoothly in given graph ICICI had shown a fast take off and gives a good return.25) but if will have an watch on SBI than rate of bank is 1543. .65 with a fall of 13 %( 8. So.Its great opportunity for all investor and for all intraday traders as insurance company. If will see at present scenario rate of ICICI bank is 628. and many traders has invested for long term. it’s easy to get profit and come with full handed.54 with an fall of 40 % (60.40) and all others bank had an fall of more than 10 %.