RETAIL BANKING OF INDUSIND BANK

INTRODUCTION TO FINANCE
FINANCE
Finance is that business activity that is concerned with the organization and conversion of
capital funds in meeting financial needs and overall objectives of a business enterprise.

Financial Analysis can be defined as a study of relationship between many factors as

disclosed by the statement and study of the trend of these factors.

The basis for financial planning, analysis and Decision-making is the financial information.
Financial information is needed to predict, compare and evaluate the firm‟s earning ability.
It is also required to aid in economic decision-making investment and financial statement or
accounting reports.

In the modern environment, finance occupies a key position; value of the company
represents financial stamina that it got over the long run. Finance is well defined only when
the source is obtained from profitable funds and scope, the employment of finance, how
best it can install in the business. Broad scope of finance function is concerned with almost
all aspects of business operations. Although it is difficult to set limits to finance function,
there are many number of business decisions, which do not involve finance.

SCOPE OF FINANCE
What is finance? What are a firm‟s financial activities? How are they related to the firm‟
other activities? Firms create manufacturing capacities for production of goods; some
provide services to customers. They sell their goods or services to earn profit. They raise
funds to acquire manufacturing and other facilities. Thus, the three most important
activities of a business firm are:

1. Production.

2. Marketing.

3. Finance.
A firm secures whatever capital it needs and employs it in activities, which generate return
on invested capital.

 FINANCE FUCTIONS
It may be difficult to separate the finance functions from production, marketing and other
functions, but the functions themselves can be readily identified. The functions of raising
funds, investing them in assets and distributing returns earned from assets to shareholders
are respectively known as financing decision, investment decision and dividend decision. A
firm attempts to balance cash inflows and outflows while performing these functions. This is
liquidity decision, and we may add it to the list of important finance decision or functions.
Thus finance functions include:

1. Long-term asset-mix or investment decision.

2. Capital-mix or financing decision.
3. Profit allocation or dividend decision.
4. Short-term asset-mix or liquidity decision.

A firm performs finance functions simultaneously and continuously in the normal

course of the business. They do not necessarily occur in a sequence. Finance
functions call for skilful planning, control and execution of a firm‟s activities.

 BANKING AN OVERVIEW

BANKING IN INDIA

India, the largest democracy of the world, is all set to become a major economic power. The
growth in the Indian Banking Industry has been more qualitative than quantitative and it is
expected to remain the same in the coming years.

The banking industry plays a very important role in the development of national economies.
Moreover, since borders between the economies of separate countries are progressively
losing importance, banks are gradually being incorporated into the global economy. Their
role and importance is steadily increasing and today, they represent major players on the
market both at domestic and international level.
Banking in one form or another was in existence even in ancient times. The writings of
Manu (the maker of old Hindu Law) and Kautilya (the Minister of Chandragupta Maurya)
contained references to banking.

Banking business has a history over 200 years. From the times of the Bank of Bengal (1806)
the sector has been witnessing qualitative and quantitative changes. Main players during
the pre-independence period were Credit Lyonnais, Allahabad Bank, Punjab National Bank
and Bank of India. With 1935 regulation the Reserve Bank of India was proclaimed the
Central Bank of India and was vested with controlling powers over the commercial banks.
The drastic development taken place during the first 25 years since independence was
Nationalization of many private banks. With this, the central government became major
policy maker for these nationalized banks.

With economic liberalization measures many private and foreign banking companies were
allowed to operate in the country. Favourable economic climate and a variety of other
factors such as demand for wide range of financial products from various sections of the
society led to mutually beneficial growth to the banking sector and economic growth
process. This was coincided by technology development in the banking operations. Today
most of the Indian cities have networked banking facility as well as Internet banking facility.
A customer is empowered to operate his account from any part of the country. UTI Bank,
ICICI, HDFC Bank and Bank of Punjab are the main winners of the race.
HISTORY & EVOLUTION OF INDIAN BANKING SYSTEM:
The history of Indian Banking can be identified in three distinct phases:

Early phase from 1786 to 1969 Nationalization of Banks and up to 1991 prior to banking
sector Reforms New phase of Indian Banking with the advent of Financial & Banking Sector
Reforms after 1991

PHASE I:
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and
Bank of Bengal. The East India Company established Bank of Bengal (1809), Bank of Bombay
(1840) and Bank of Madras (1843) as independent units and called it Presidency Banks.
These three banks were amalgamated in 1920 and Imperial Bank of India was established
which started as private shareholders banks, mostly European shareholders.

In 1865 Allahabad bank was established and first time exclusively by Indians, Punjab
National Bank ltd was set up in 1894 with headquarters at Lahore. Between 1906 and 1913,
Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank and Bank of
Mysore were set up. Reserve Bank of India came in 1935.

PHASE II:
Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th July
1969, major process of nationalization was carried out. It was the effort of the then Prime
Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country were
Nationalized. Second phase of nationalization Indian Banking Sector Reform was carried out
in 1980 with seven more banks. This step brought 80% of the banking segment in India
under Government Ownership.

The following are the steps taken by the Government of India to Regulate Banking
Institutions in the country:

1949: Enactment of Banking Regulation Act.

1955: Nationalization of State Bank of India.

1959: Nationalization of SBI subsidiaries.

1961: Insurance cover extended to deposits.

1969: Nationalization of 14 major banks.

1971: Creation of credit guarantee corporation.

1975: Creation of regional rural banks.

1980: Nationalization of seven banks with deposits over 200 crores Banking in the sunshine
of Government ownership gave the public implicit faith and immense confidence about the
sustainability of these institutions.

PHASE III:
This phase has introduced many more products and facilities in the banking sector in its
reforms measures. In 1991, under the chairmanship of M Narasimhan, a committee was set
up by his name which worked for the liberalization of banking practices.

PUBLIC SECTOR BANKS:

State Bank of India and its 7 associate Banks Nationalized Banks (20 in number) Regional
Rural Banks sponsored by Public sector Banks

PRIVATE SECTOR BANKS:

 Old Generation Private Banks

 New Generation Private Banks
 Foreign Banks in India
 Scheduled Co-operative Banks
 Non Scheduled Banks
RETAIL BANKING AN INTRODUCTION
The Retail Banking environment today is changing fast. The changing customer
demographics demands to create a differentiated application based on scalable technology,
improved service and banking convenience. Higher penetration of technology and increase
in global literacy levels has set up the expectations of the customer higher than never
before. Increasing use of modern technology has further enhanced reach and accessibility.

The market today gives us a challenge to provide multiple and innovative contemporary
services to the customer through a consolidated window as so to ensure that the bank‟s
customer gets “Uniformity and Consistency” of service delivery across time and at every
touch point across all channels. The pace of innovation is accelerating and security threat
has become prime of all electronic transactions. High cost structure rendering mass-market
servicing is prohibitively expensive. Present day tech-savvy bankers are now more looking
at reduction in their operating costs by adopting scalable and secure technology thereby
reducing the response time to their customers so as to improve their client base and
economies of scale.

The solution lies to market demands and challenges lies in innovation of new offering with
minimum dependence on branches – a multi-channel bank and to eliminate the
disadvantage of an inadequate branch network. Generation of leads to cross sell and
creating additional revenues with utmost customer satisfaction has become focal point
worldwide for the success of a Bank.

Retail banking is, however, quite broad in nature - it refers to the dealing of commercial
banks with individual customers, both on liabilities and assets sides of the balance sheet.
Fixed, current / savings accounts on the liabilities side; and mortgages, loans (e.g., personal,
housing, auto, and educational) on the assets side, are the more important of the products
offered by banks. Related ancillary services include credit cards, or depository services.
Retail banking refers to provision of banking services to individuals and small business
where the financial

institutions are dealing with large number of low value transactions. This is in contrast to
wholesale banking where the customers are large, often multinational companies,
governments and government enterprise, and the financial institution deal in small numbers
of high value transactions. The concept is not new to banks but is now viewed as an
important and attractive market segment that offers opportunities for growth and profits.
Retail banking and retail lending are often used as synonyms but in fact, the later is just the
part of retail banking. In retail banking all the needs of individual customers are taken care
of in a well-integrated manner. Banking in India originated in the last decades first banks
were The General Bank of India, which started in 1786, and Bank of Hindustan, which
started in 1770; both are now defunct. The oldest bank in existence in India is the State
Bank of India, which originated in the Bank of Calcutta in June 1806, which almost
immediately became the Bank of Bengal. This was one of the three presidency banks, the
other two being the Bank of Bombay and the Bank of Madras, all three of which were
established under charters from the British East India Company. For many years the
Presidency banks acted as quasi-central banks, as did their successors. The three banks
merged in 1921 to form the Imperial Bank of India, which, upon India's independence,
became the State Bank of India in 1955.

IndusInd Bank Limited is a Mumbai based Indian new generation bank, established in 1994.
The bank offers commercial, transactional and electronic banking products and services.
IndusInd Bank was inaugurated in April 1994 by then Union Finance Minister Manmohan
Singh. Indusind Bank is the first among the new-generation private banks in India.

The bank started its operations with a capital amount of Rs. 1 billion among which Rs. 600
million was raised by the Indian Residents and Rs. 400 million was raised by the Non-
Resident Indians. The bank has specialized in retail banking services and continuously
upgrades its support systems by introducing newer technologies. It is also working on
expanding its network of branches all across the country along with meeting the global
benchmark. According to the bank, its name is derived from the Indus Valley Civilisation.

As on 31 December 2018, IndusInd Bank has 1,558 branches, and 2453 ATMs spread across
in different geographical locations of the country.[8] It also has representative offices in
London, Dubai and Abu Dhabi. . Mumbai has the maximum number of bank branches
followed by New Delhi and Chennai.The bank has also proposed to double the branches
count to 1200 by March 2019.

The bank began its operations on 17 April 1994 under the chairmanship of S.P. Hinduja with
the primary objective of serving the NRI community.

The latest phenomenon of financial uncertainty has underlined the potential infirmity of
financial structures and the effect that financial uncertainty can have on the broad
economy. After recognizing the same, more consciousness has to be given for
understanding the main causes and consequences of financial calamity and to develop the
policy and process structure for stimulating the full-fledged and well planned financial
systems. A main part of that work associates to “corporate governance” arrangements.
“Corporate governance” has attracted considerable attention over the past decades. The
rapid development of “corporate governance” and its structures reflect its importance to
business entities and communities. Governments must consider it’s important in assuring
accountability and improving performance. “Corporate governance” brought in lime light
through series of corporate failures like such as Enron and World Corn. These companies
collapsed because of non-adherence of “corporate governance” and unethical practices
they indulged in. Satyam scandal in India is also the case of non-adherence of “corporate
governance”. There is no deviation for financial companies and institutions; more
transparency is required in functioning of such companied & financial institutions because
there are several scams via these Institutions. As competency has increased in domestic
banking market, banks are not looking the “corporate governance” simply as a code of
conduct for doing the business but want to utilize it as a tool for lowering the risk and to
enhance the value of shareholders. Powerful “corporate governance” is very important and
critical for function the banking system in proper way and also for the entire economy.
Banks play a very important and crucial part in the economic system to intermediate the
money from public and depositors to the other functions and affairs which support the
business and enterprise and help to drive the economy. Safety and soundness are two keys
of banks which ensure the financial stability, and the methodology in which banks behave
and do their business therefore it is prominent to the economy. Weak governance in
banking system and in financial system can lead the problems across the banking sector and
for entire economy as well. “Corporate governance” policies recommended by Reserve Bank
of India and Basel Committee require for maintaining a well-balanced and efficient board
which is required for effective strategy execution and efficient strategy implementation.
This study is about the “Indusind Bank” to find out that how the bank adopted “corporate
governance” principles and what is its effect on performances.
INDUSTRY PROFILE

ORIGIN OF THE BANKING

There are different opinions regarding the origin of the term bank. According to some it is
derived from Italian word Banco'. Latin word 'BANCUS' French word 'Banque' which means
"a bench". In olden day‟s European bankers using bench to transact their banking activities
but according to others. The word "Bank" is derived from German word 'Bank which means
'Common fund raised form a large number of public ".

The Banking begins with the first prototype banks of merchants of the ancient world,
which made grain loans to farmers and traders who carried goods between cities. This
began around 2000 BC in Assyria and Babylonia. Later, in ancient Greece and during the
Roman Empire, lenders based in temples made loans and added two important innovations:
they accepted deposits and changed money. Archaeology from this period in ancient China
andIndia, also shows evidence of money lending activity.

Banking, in the modern sense of the word, can be traced to medieval and early Renaissance
Italy, to the rich cities in the north such as Florence, Venice andGenoa. The Bardi and Peruzzi
families dominated banking in 14th century Florence, establishing branches in many other
parts of Europe. Perhaps the most famous Italian bank was the Medici bank, established by
Giovanni Medici in 1397

The development of banking spread from northern Italy through Europe and a number of
important innovations took place in Amsterdam during the Dutch Republic in the 16th
century, and in London in the 17th century. During the 20th century, developments in
telecommunications and computing caused major changes to banks operations and let
banks dramatically increase in size and geographic spread. The Late-2000s financial crisis
caused many bank failures, including of some of the world's largest banks, and much debate
about bank regulation.

In ancient India there is evidence of loans from the Vedic period (beginning 1750 BC). Later
during the Maurya dynasty (321 to 185 BC), an instrument called adesha was in use, which
was an order on a banker desiring him to pay the money of the note to a third person,
which corresponds to the definition of a bill of exchange as we understand it today. During
the

Buddhist period, there was considerable use of these instruments. Merchants in large towns
gave letters of credit to one another.
GROWTH OF THE BANKING:
Banking India originated in the first decade of eighteenth century with the general bank of
India coming into existence in 1786. this was followed by bank of Hindustan both these
banks are defunct. the oldest bank in existence in India is the state bank of India being
established as the bank of Bengal in Kolkata in June 1806. a couple of decades later, foreign
banks like credit Lyonnais started their Kolkata operations in the 1850s. at the point of time,
Kolkata was the most active trading port mainly due to the trade of the British empire and
due to which banking activity took routes there and prospered. The first fully Indian owned
bank was the Allahabad bank, which was established in 1865 by the1900s. the market
expanded with establishment of banks such as Punjab national bank, in 1895 in Lahore and
bank of India in 1906, in Mumbai both of which were founded under private ownership . the
reserve bank of India formally took on the responsibility of regulating Indian banking sector
from 1935 after the India's independence in 1947 the reserve bank was nationalized and
given broader power.

The Indian banking industry which is governed by the banking regulation act of India, in
1949 can be broadly classified into two major categories, non scheduled and scheduled
banks. Scheduled banks comprise commercial banks and the cooperative banks. in terms of
ownership, commercial banks can be further grouped into nationalized banks, the state
bank of India and its group banks, regional rural banks and private sector banks. These
banks have over 67000 braches spread across the country.

Stages of growth of banks in India

 Early history
 during the war
 post independence
 Nationalization
 current scenario
 Early history

At the end of late-18th century there were hardly any bank in India in the modern sense of
the term. at the time of the American civil war a void was created as the supply of cotton to
Lancashire stopped from the Americans. some banks were opened at that time which
functioned as entities to finance industry, including speculative trades in cotton. with large
exposure to speculative ventures, most of the banks opened in Indian during that period
could not survive and failed. The depositors lost money and lost interest in keeping deposits
with banks. Subsequently, banking in India remained the exclusive domain of Europeans for
next several decades until the beginning of the 20th century.
At the beginning of the 20th century, Indian economy was passing through a relative period
of stability. Around five decades have elapsed since the India's first war of independence,
and the social, industrial and other infrastructure have developed. at that time there were
very small banks operated by Indians, and most of them were owned and operated by
particular communities. The baking in India was controlled and dominated by the
presidency banks, namely, the bank of Bombay, the bank of Bengal, and the bank of madras
- which later on merged to form the imperial bank of India, and imperial bank of India, upon
India's independence, was renamed the state bank of India. There were also some
exchanges banks, as also a number of Indian joint stock banks. All these banks operated in
different segments of the economy. the presidency banks were like the central banks and
discharged most of the functions of central banks. They were established under charters
from the British east India Company. The exchange banks, mostly owned by the Europeans,
concentrated on financing of foreign trade. Indian joint stock banks were generally
undercapitalized and lacked the experience and maturity to compete with presidency banks,
and the exchange banks. There was potential for many new banks as the economy was
growing.

Under these circumstances, many Indians came forward to set up banks, and many banks
were set up at that time, and a number of them set up around that time continued to
survive and prosper even now like bank of India and corporation bank, Indian bank, bank of
Baroda, syndicate bank and canara bank.

 During the wars

the period during the first world war (1914-1918)through the end of the second world war
(1939-1945), and two years thereafter until the independence of India were challenging for
the Indian banking. The years of the First World War were turbulent, and it took toll of many
banks which simply collapsed despite the Indian economy gaining indirect boost due to war-
related economic activities. At least 94 banks in India failed during the years 1913 to 1918.

 Post-independence
The partition of India in 1947 had adversely impacted the economies of Punjab and West
Bengal, and banking activities had remained paralyzed for months. India's independence
marked the end of a regime of the laissez-faire for the Indian banking. The government of
India initiated measures to play an active role in the economic life of the nation, and the
industrial policy resolution adopted by the government in 1948 envisaged a mixed economy.
This resulted into greater involvement of the state in different segments of the economy
including banking and finance. The manor steps to regulate banking included:
  In 1948, the Reserve Bank of India, India's central banking authority, was nationalized,
and it became an institution owned by the Government of India.
 In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank
of India "to regulate, control, and inspect the banks in India.

" The banking Regulation Act also provided that no new bank or branch of an existing bank
may be opened without a license from the RBI, and no two banks could have common
directors.

However, despite these provisions, control and regulations, banks in India except the State
Bank of India, continued to be owned and operated by private persons. This changed with
the nationalization of major banks in India on 19th July, 1969.

 Nationalization
The nationalization of 14 major banks with deposits of Rs. 50 crores or more in July 1969
was a "historic" and momentous event in the history of India. Small industrial and business
units are continuously and consistently ignored and starved of funds, even though the
Government policy was to encourage small, tiny and cottage and village industries.
Agricultural credit was never seriously considered by banks. Public funds were used to
support anti-social and illegal activities against the interest of the general public. It was for
these reasons that the Government took over 14 top commercial banks in July 1969. In
1980 again the Government took over another 6 commercial to the State Bank of India
Group which were taken over in 1955.

 Branch
Expansion Initially, the banks were conservative and opened braches mainly in
metropolitan cities and other major cities. Brach expansion gained momentum after the
nationalization of major commercial banks and the introduction of the Lead Bank Scheme.

 Deposit Mobilization
Planned economic development, deficit financing and increase in currency issue have led to
increase in bank deposits. At the same time, banks have contributed greatly to the
development of banking habit among people through sustained publicity, extensive branch
banking and relatively prompt service to the deposit mobilization, due partly to the
expansion of a network of bank branches and partly to the incentives given to savers. The
trend of increase in deposits and credit of scheduled banks.
  Current scenario
Currently, overall, banking in India is considered as fairly mature in terms of supply, product
range and reach-even though reach in rural India still remains a challenge for the private
sector and foreign banks. Even in terms of quality of assests and capital adequacy, Indian
banks are considered to have clean, strong and transparent balance sheets-as compared to
other in comparable economies in its region. The Reserve Bank of India is an autonomous
body, with minimal pressure from the government. The

stated policy of the Bank on the Indian Rupee is to manage volatility-without any stated
exchange rate and this has mostly been true.

 With the growth in the Indian economy expected to be strong for quite some
timeespecially in its services sector, the demand for banking services-especially
retail banking, mortgagees and investment services are expected to be strong.
 Currently, India has 88 scheduled commercial banks - 28 public sector banks, 29
private banks and 31 foreign banks. They have a combined network of over 53,000
branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency,
the public sector banks hold over 75 percent of total assets of the banking industry,
with the private and foreign banks holding 18.2% and 6.5% respectively.
 As far as the present scenario is concerned the banking industry in India is in a
transition phase. The Public Sector Banks, which are the foundation of the Indian
banking system account for more than 78 percent of total banking industry assets.
Unfortunately they are burdened with excessive nonperforming assets, massive
manpower and lack of modern technology. On the other hand the private sector
banks are witnessing immense progress. They are leaders in Internet banking,
mobile banking, phone banking, ATMs. On the other hand the public sector banks
are still facing the problem of unhappy employees. There has been a decrease of 20
percent in the employee strength of the private sector in the wake of the Voluntary
Retirement Schemes. As far as foreign banks are concerned they are likely to
succeed in India
 Indusland bank was the first private bank to be set up in India. IDBI, ING Vyasa Bank,
SBI commercial and Industrial bank Ltd, Dhanalakshmi Bank Ltd, Karur Vysya Bank
Ltd, Bank of Rajasthan Ltd, etc, are some Private Sector Banks. Banks from the Public
Sector include Punjab National Bank, Vijay Bank, UCO Bank, Oriental Bank,
Allahabad Bank, Andhra Bank etc.
MAJOR PLAYERS OF INDIAN BANKING SECTOR:
Since the beginning, due to huge market potential, a number of banking companies have
come up in India, which include both, public sector as well as private sector banks. However,
the list of top 10 banking companies in India has mostly been dominated by the State Bank
of India (SBI).

Major players in the Indian Banking sector

 State Bank Of India.
 Allahabad Bank.
 HDFC.
 Uco Bank.
 Punjab National Bank.
 Bank of Maharashtra.
 HSBC Bank.
 Citibank
 Axis Bank.
 Canara Bank
 ICICI Bank
 Bank of Baroda
 Bank of India
 IDBI Bank
 Central Bank of India

CHALLENGES FACED BY THE BANKING:

Developing countries like India, still has a huge number of people who do not have access to
Banking services due to scattered and fragmented locations. The people who are availing
banking services, their expectations are rising as the levels of services are increasing due to
the emergence of Information Technology and competition. Since, foreign banks are playing
in Indian market, the number of services offered has increased and banks have laid
emphasis on meeting the customer expectations.

Now, the existing situation has created various challenges and opportunity for Indian
Commercial Banks. In order to encounter the general scenario of banking industry it is
required need to understand the challenges lying with banking industry of India.

 Rural Market
Banking in India is generally fairly mature in terms of supply, product range and
reach, even Though reach in rural India still remains a challenge for the private sector and
foreign banks. In terms of quality of assets and capital adequacy, Indian banks are
considered to have clean,strong and transparent balance sheets relative to other banks in
comparable economies in its region. Consequently, we have seen some examples of
inorganic growth strategy adopted by some nationalized and private sector banks to face
upcoming challenges in banking industry of India. For example recently, ICICI Bank Ltd.
merged the Bank of Rajasthan Ltd. in order to increase its reach in rural market and market
share significantly. State Bank of India (SBI), the largest public sector bank in India has also
adopted the same strategy to retain its position. It is in the process of acquiring its
associates. Recently, SBI has merged State Bank of Indore in 2010.

 Management of Risks
The growing competition increases the competitiveness among banks. But, existing global
Banking scenario is seriously posing threats for Indian banking industry. We have already
witnessed the bankruptcy of some foreign banks.

According to Shrieves (1992), there is a positive association between changes in risk and
capital. Research studied the large sample of banks and results reveal that regulation was
partially effective during the period covered. Moreover, it was concluded that changes in
bank capital over the period studied was risk-based .

Wolgast, (2001) studied the Merger and acquisition activity among financial firms. The
author focused bank supervisors in context with success of mergers, risk management,
financial system stability and market liquidity. The study concluded that large institutions
are able to maintain a superior level of risk management .

Al-Tamimi and Al-Mazrooei (2007) examined the risk management practices and techniques
in dealing with different types of risk. Moreover, they compared risk management practices

between the two sets of banks. The study found the three most important types of risk i.e.
commercial banks foreign exchange risk, followed by credit risk, and operating risk.
Sensarma and Jayadev (2009) used selected accounting ratios as risk management variables
and attempted to gauge the overall risk management capability of banks. They used
multivariatestatistical techniques to summarize these accounting ratios. Moreover, the
paper also analyzed the impact of these risk management scores on stock returns through
regression analysis. Researchers found that Indian banks' risk management capabilities have
been improving overtime. Returns on the banks' stocks appeared to be sensitive to risk
management capability of banks. The study suggest that banks want to enhance
shareholder wealth will have to focus onsuccessfully managing various risks.

 Growth of Banking
The Indian banking industry experienced sustained productivity growth, which was driven
mainly by technological progress. Banks' ownership structure does not seem to matter as
much as increased competition in TFP growth. Foreign banks appear to have acted as
technological innovators when competition increased, which added to the competitive
pressure in the banking market. Finally, our results also indicate an increase in risk-taking
behaviour, along with the whole deregulation process.

It was found in the study of Goyal and Joshi (2011a) that small and local banks face difficulty
in bearing the impact of global economy therefore, they need support and it is one of the
reasons for merger. Some private banks used mergers as a strategic tool for expanding their
horizons. There is huge potential in rural markets of India, which is not yet explored by the
major banks. Therefore ICICI Bank Ltd. has used mergers as their expansion strategy in rural
market. They are successful in making their presence in rural India. It strengthens their
network across geochartical boundary, improves customer base and market share.

 Market Discipline and Transparency

According to Fernando (2011) transparency and disclosure norms as part of internationally
accepted corporate governance practices are assuming greater importance in the emerging
environment. Banks are expected to be more responsive and accountable to the investors.
Banks have to disclose in their balance sheets a plethora of information on the maturity
profiles

of assets and liabilities, lending to sensitive sectors, movements in NPAs, capital, provisions,
shareholdings of the government, value of investment in India and abroad, operating and
profitability indicators, the total investments made in the equity share, units of mutual
funds, bonds, debentures, aggregate advances against shares and so on .

 Global Banking
It is practically and fundamentally impossible for any nation to exclude itself from world
economy. Therefore, for sustainable development, one has to adopt integration process in
the form of liberalization and globalization as India spread the red carpet for foreign firms in
1991. The impact of globalization becomes challenges for the domestic enterprises as they
are bound to compete with global players. If we look at the Indian Banking Industry, then
we find that there are 36 foreign banks operating in India, which becomes a major challenge
for Nationalized and private sector banks. These foreign banks are large in size, technically
advanced and having presence in global market, which gives more and better options and
services to Indian traders.

 Financial Inclusion
Financial inclusion has become a necessity in today‟s business environment. Whatever is
Produced by business houses, that has to be under the check from various perspectives like
Environmental concerns, corporate governance, social and ethical issues. Apart from it to
bridge the gap between rich and poor, the poor people of the country should be given
proper attention to improve their economic condition. Dev (2006) stated that financial
inclusion is significant from the point of view of living conditions of poor people, farmers,
rural non-farm enterprises and other vulnerable groups. Financial inclusion, in terms of
access to credit from formal institutions to various social groups. Apart from formal banking
institutions, which should look at inclusion both as a business opportunity and social
responsibility, the author conclude that role of the self-help group movement and
microfinance institutions is important to improve financial inclusion. The study study
suggested that this requires new regulatory procedures and de-politicisation of the financial
system.

 Employees’ Retention
The banking industry has transformed rapidly in the last ten years, shifting from
transactional and customer service-oriented to an increasingly aggressive environment,
where competition for revenue is on top priority. The diminishing employee morale results
in decreased revenue. Due to the intrinsically close ties between staff and clients, losing
those employees completely can mean the loss of valuable customer relationships. The
retail banking industry is concerned about employee retention from all levels: from tellers to
executives to customer service representatives because competition is always moving in to
hire them away.

The competition to retain key employees is intense. Top-level executives and HR

departments spend large amounts of time, effort, and money trying to figure out how to
keep their people from leaving. Sekaran, U. (1989) studied a sample of 267 bank employees,
this study traced the paths to the job satisfaction of employees at the workplace through
the quality of life factors of job involvementand sense of competence. Results indicated that
personal, job, and organizational climate factors influenced the ego investment or job
involvement of people in their jobs, which in turn influenced the intra-psychic reward of
sense of competence that they experienced, which then directly influenced employees' job
satisfaction .

Mitchell, Holtom, Lee and Graske (2001) asserted in their study that people often leave for
reasons unrelated to their jobs. In many cases, unexpected events or shocks are the cause.
Employees also often stay because of attachments and their sense of fit, both on the job
and in their community . Saxena and Monika (2010) studied a case of 5 companies out of
1000 organizations and 8752 respondents surveyed across 800 cities in India by Business
Today. The survey was on nine basic parameters like career and personal growth, company
prestige, training, financial compensation and benefits and merit based performance
evaluation. It was concluded that the biggest challenge for organizations is that when new
employees appointed, it is difficult to merge them in organizational culture. Each
organization has its own unique culture and most often, when brought together, these
cultures clash. When there is no retention, employees point to issues such as identity,
communication problems, human resources problems, ego clashes, and intergroup conflicts,
which all fall under the category of “cultural differences” .
  Customer Retention
Levesque and McDougall (1996) investigated the major determinants of customer
satisfaction and future intentions in the retail bank sector. They identified the determinants
which include service quality dimensions (e.g. getting it right the first time), service features
(e.g. competitiveinterest rates), service problems, service recovery and products used. It
was found, in particular, that service problems and the bank‟s service recovery ability have
a major impact on customer satisfaction and intentions to switch .

Clark (1997) studied the impact of customer-employee relationships on customer retention

rates in a major UK retail bank. He revealed that employee and customer perceptions of
service quality are related to customer retention rates and that employee and customer
perceptions of service quality are related to each other .

Clark (2002) examined the relationship between employees‟ perceptions of organizational

climate and customer retention in a specific service setting, viz. a major UK retail bank.
Employees‟ perceptions of the practices and procedures in relation to customer care at
their branch were investigated using a case study approach. The findings revealed that there
is a relationship between employees‟ perceptions of organizational climate and customer
retention at a micro organizational level. He suggested that organizational climate can be
subdivided into five climate themes and that, within each climate theme, there are several
dimensions that are critical to customer retention . Hansemark and Albinsson (2004)
explored how the employees of a company experience the concepts of customer
satisfaction and retention. They used phenomenological method, allowing the informants‟
own interpretations to be discovered. Satisfaction was discussed from three perspectives:
definition of the concept, how to recognise when a customer is satisfied, and how to
enhance satisfaction. The informants‟ experience pertaining to these three categories
varied, and a total of seven ways to define, recognise or enhance satisfaction were
discovered. These were: service, feeling, chemistry, relationship and confidence, dialogue,
complaints and retention. All except the first two of these categories of experience were
found to enhance retention, implying that the informants have found that strategies for
enhancing both satisfaction and retention are similar . The strongest connection between
retention and satisfaction strategies turned out to be in terms of relationship and
confidence.

 Environmental Concerns
It is quite clear from the recently formed Copenhagen Climate Council (CCC) that there is a
severe need for environmental awareness among all the countries of the world. CCC
published Thought Leadership Series on Climate Change which is a collection of
inspirational, concise and clearly argued pieces from some of the world's most renowned
thinkers and business leaders on climate change. The objective of the pieces is to assist in
enhancing the public and political awareness of the actions that could have a significant
impact on global emissions growth and to disseminate the message that it is time to act. The
Thought Leadership Series was aimed at explaining and spreading awareness of the key
elements in the business and policy response to the climate problem. The rationale for the
Thought Leadership Series was to change the focus of people.

 Social and Ethical Aspects

There are some banks, which proactively undertake the responsibility to bear the social and
ethical aspects of banking. This is a challenge for commercial banks to consider the these
aspects in their working. Apart from profit maximization, commercial banks are supposed to
support those organizations, which have some social concerns. Benedikter (2011) defines
Social Banks as “banks with a conscience”. They focus on investing in community, providing
opportunities to the disadvantaged, and supporting social, environmental, and ethical
agendas. Social banks try to invest their money only in endeavours that promote the greater
good of society, instead of those, which generate private profit just for a few. He has also
explained the main difference between mainstream banks and social banks that mainstream
banks are in most cases focused solely on the principle of profit maximization whereas,
social banking implements the triple principle of profit-people-planet.
COMAPANY PROFILE OF INDUSIND BANK

HISTORY OF INDUSIND BANK

INDUSIND BANK LTD was incorporated in August 1994 in the name of 'INDUSIND Bank
Limited',with its registered office in Mumbai, India. INDUSIND Bank commenced operations
as a Scheduled Commercial Bank in January 1995.

If ever there was a man with a mission it was Hasmukhbhai Parekh, Founder and
Chairman-Emeritus, of INDUSIND Group. INDUSIND BANK LTD was amongst the
first to set up a bank in the private sector. The bank was incorporated on 30th August 1994
in the name of „INDUSIND Bank Limited‟, with its registered office in Mumbai.It
commenced operations as a Scheduled Commercial Bank on 16th January 1995. The bank
has grown consistently and is now amongst the leading players in the industry

INDUSIND is India's premier housing finance company and enjoys an impeccable track
record inIndia as well as in international markets. Since its inception in 1977, the
Corporation hasmaintained a consistent and healthy growth in its operations to remain the
market leader inmortgages. Its outstanding loan portfolio covers well over a million dwelling
units.

INDUSIND has developed significant expertise in retail mortgage loans to different market
segments and also has a large corporate client base for its housing related credit facilities.
With its experience in the financial markets, a strong market reputation, large shareholder
base and unique consumer franchise, INDUSIND was ideally positioned to promote a bank in
the Indian environment In a milestone transaction in the Indian banking industry, Times
Bank was merged with INDUSIND Bank Ltd., effective February 26, 2000.
VISION, MISSION, QUALITY POLICY
Vision:

 A relevant business and banking partner to its clients

 Customer Responsive, striving at all times to collaborate with clients in providing
solutions for their Banking needs
 A forerunner in the market place in terms of profitability, productivity and efficiency
 Engaged with all our stakeholders and will deliver sustainable and compliant returns

Mission
We will consistently add value to all our stakeholders and emerge as the Best in class in the
chosen parameters amongst the comity of banks, by doubling our profits, clients and
branches within the next three years.

Quality Policy

 Increasing market share in India‟s expanding banking

 Delivering high quality customer service
 Maintaining current high standards for asset quality through disciplined credit risk
management
 Develop innovative products and services that attract targeted customers and
address inefficiencies in the Indian financial sector.

NATURE OF BUSINESS:
INDUSIND Bank offers a wide range of commercial and transactional banking services and
treasury products to wholesale and retail customers. The bank has three key business
segments:

Wholesale Banking Services:

The Bank's target market ranges from large, blue-chip manufacturing companies in the
Indian corporate to small & mid-sized corporate and agri-based businesses. For these
customers, the Bank provides a wide range of commercial and transactional banking
services, including working capital finance, trade services, transactional services, cash
management, etc. The bank is also a leading provider of structured solutions, which
combine cash management services with vendor and distributor finance for facilitating
superior supply chain management for its corporate customers. Based on its superior
product delivery / service levels and strong customer orientation, the Bank has made
significant inroads into the banking consortia of a number of leading Indian corporate
including multinationals, companies from the domestic business houses and prime public
sector companies. It is recognized as a leading provider of cash management and
transactional banking solutions to corporate customers, mutual funds, stock exchange
members and banks.

Retail Banking Services:

The objective of the Retail Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-stop window for all
his/her banking requirements. The products are backed by world-class service and delivered
to the customers through the growing branch network, as well as through alternative
delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking.

The INDUSIND Bank Preferred program for high net worth individuals, the INDUSIND Bank
Plus and the Investment Advisory Services programs have been designed keeping in mind
needs of customers who seek distinct financial solutions, information and advice on various
investment avenues. The Bank also has a wide array of retail loan products including Auto
Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It is
also a leading provider of Depository Participant (DP) services for retail customers, providing
customers the facility to hold their investments in electronic form.

INDUSIND Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the Master card Maestro debit card as well.
The Bank launched its credit card business in late 2001. By September 30, 2005, the bank
had a total card base (debit and credit cards) of 5.2 million cards. The Bank is also one of the
leading players in the "merchant acquiring" business with over 50,000 Point-of-sale (POS)
terminals for debit / credit cards acceptance at merchant establishments.

Treasury:
Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalization of the financial markets in India, corporate need more sophisticated risk
management information, advice and product structures. These and fine pricing on various
treasury products are provided through the bank's Treasury team. To comply with statutory
reserve requirements, the bank is required to hold 25% of its deposits in government
securities. The Treasury business is responsible for managing the returns and market risk on
this investment portfolio.
Objectives:
1. To analyze whether “corporate governance” policies plays key role in profit earnings of
the banks.

2. To analyze the extent to which bank has adopted the “corporate governance” policies

3. A relvent business and banking partner to our clients.

4. Customer Responsive , striving at all times to collaborate with clients in providing solution
for their banking needs.

5. A forerunner in the market place in terms of profitability , productivity and efficiency

6. To study the various retail lending schemes and to understand the Various lending
schemes provided by INDUSIND BANK LTD

7. To find out the growth and performance of various schemes.

8. To identify the awareness of the various lending schemes offered by INDUSIND BANK LTD

SCOPE OF THE STUDY:

The study is to understand the analytical frame work of retail lending and analysis of existing
retail lending system at the bank. The survey was conducted on Operative Level of IndusInd
Bank. The questionnaire for this survey was framed considering those factors where
corrective action can be taken. From the result of the survey the Marketing department can
take the corrective action to increase customer satisfaction and thereby increase
productivity.
  Hypothesis:

We supposed to go for the hypothesis part in the given project purely on one of the
most important sub objective of our study which is,

 To find out, Mistakes in the account

For this we have mainly used Z-TEST.

We are doing hypothesis at the 5% significant level (95% confidence level).

We are taking this symbol for hypothesis.

P= Population proportion

Q= 1-P

N= Sample size

P1= Sample proportion

σ^p = standard error

α = significant level

H0= Null hypothesis

H1= Alternative hypothesis

Z= No. of standard deviation from the mean

H0: Null: P=0.80 (0.80% don’t have Mistakes in their Account)

H1: Alternative: P#0.20 (20% Have Mistakes in their account)

Research Methodology

• RESEARCH DESIGN
“A research design is the arrangement of conditions for collection and analysis data in a
manner to combine relevance to the researcher purpose with economy in procedure”

The Research Design undertaken for the study is Descriptive one. A study, which wants to
portray the characteristics of a group or individuals or situation, is known as Descriptive
study. It is mostly qualitative in nature. The main objective of Descriptive study is to acquire
knowledge.

• SOURCE OF DATA
Data are the raw materials in which marketing research works. The task of data collection
begins after research problem has been identified and research design is chalked out. Data
collected are classified into primary and secondary data.

 Primary data
In this study, the primary data is collected in form of questionnaire and through interviews
with the Consumer.

 Secondary data
Secondary data were collected from the company’s website, annual publications,
memorandums of settlements, newspapers, and journals and from books.

 SAMPLING METHODOLOGY
Research work was conducted by taking a sample of 100 consumers. The sample was
randomly selected from each Customer. To study the perception of consumer,
questionnaire was prepared and survey.
LIMITATION OF THE STUDY
As I was asked to carry on my vocational training I found the following limitations during my
training period. So I could not collect all information regarding my topic.

• Shortage of time factor was one of the biggest constraints.

• Study is confined to INDUSIND Bank only.

• Most stress was given on the primary data as it was difficult to collect secondary data
from the organization and distribution since it is difficult to ascertain the authenticity of
their statements.

• All the observation and recommendation was made on the feedback obtained from
survey.

• There can be some biasness in the information provided by the Banks.

Literature Review
A large no. of researches has conducted on the practices of corporate governance in
banking sector by the researchers, academicians and experts. During the research, a no. of
journals, magazines and relevant websites studied which gave an idea about the corporate
governance followed by the banks. It helps to provide a path for research. Short descriptions
of literature studied are as below-

1.Chokshi (2015) -

conducted a study on “corporate governance in banking sector - indicating Transparency

and Translucency” which was based on overall banking sector. It was observed from the
study that the “corporate governance” practices in the banking and financial sector are vital
and important.

2.Swarup (2011) -

conducted a study on “corporate governance” in the Banking Sector” and analyzed that
“corporate governance” is backbone of transparent relationships among an institution’s
management, its board, shareholders and other stakeholders. Due to special nature of the
activities carried on by the banks, they face a lot of problems as far as the area of “corporate
governance” is concerned.

3.Jakob and Razvan (2015)–

surveyed on corporate governance of banks. They focused on three characteristics (i)

regulation (ii) the capital structure of banks and (iii) the complexity and opacity of their
business and structure. The tools used in the study were: 1) the size and composition of the
board 2) concentrated ownership 3) management compensation schemes 4) the market for
corporate control.

4.Vijaylakshmi (2013)–

had done a case study of Andhra Bank on “Corporate Governance Practices in Banking
Sector”. The study analyzed the corporate governance practices of Andhra Bank using
content analysis. The annual reports were analyzed from 2004-05 to 2011-12 with respect
to board composition and various mandatory and non-mandatory committees.

5.Rayudu, Venu and Vijay (2015) -

conducted a research on Corporate Governance in Indian Banks (with reference to Bank of

Baroda and HDFC Bank Limited). They analyzed that corporate governance is the set of
processes, customs, policies and laws. It affects the way a corporation (or company) is
directed, administered or controlled.
6. Dharmwani (2015) -

analyzed the “Role of Corporate Governance in Indian Banking Sector”. The research
revealed that Corporate Governance philosophy of banks has to be based on pursuit of
sound business ethics and strong professionalism. It should align the interests of all
stakeholders and the society.

7. Srinivasa (2013) -

had done a case study on State Bank of India as “Corporate Governance in Banking Sector: A
Case study of State Bank of India”. The study found that State Bank of India implemented all
the provisions of corporate governance according to the RBI/Government’s directions. It
was found that State Bank of India performed well in every aspect in terms of profits, assets,
deposits, branches, employees and services to customers.

8. Kaushik and Kamboj (2011)–

carried out a research on role of Reserve Bank of India as “Gatekeeper of Corporate

Governance- Reserve Bank of India” and analyze that the Reserve Bank of India through its
policies has insulated the Indian economy from the effects of one of the worst global crisis
following the fall of Lehman Brothers in October 2008.

9. Arun and Turner (2004)–

had done an intensive study regarding “Corporate Governance of Banks in Developing

Economies” They observed that corporate governance of banking institutions in developing
economies is an important issue. Based on the corporate governance policies of banks, they
suggested that banking reforms can only be fully implemented once a prudential regulatory
system is in place.

10. Panchasara (2012) –

conducted a research on “An empirical study on Corporate Governance in Indian Banking

Sector”. This research found that a number of Indian banks listed in Bankex have chosen to
disclose information regarding various issues of corporate governance to increase the
confidence of various constitutes of business as well as society
Data Analyses and Results .
Clause 49- “corporate governance” as per SEBI reports basically focus on transparent
management and control systems. Clause 49 identifies various committees. Five years of
annual reports from 2011-12 to 2015-16 are analyzed with respect to five parameters of
“corporate governance” i.e. ‘Composition of Board’, ‘Meeting of Board’, ‘Composition of
Audit Committee’, ‘Meeting of Audit Committee’ and ‘Report on Corporate’.

A) Composition of Board:

I. At least fifty percent of the Board of directors should be non-executive directors.

II. At least one woman director. In all the 5 financial years the board of “Indusind Bank” has
adequate no. of independent directors i.e. 60% in 2011-12 and 2012-13, 56% in 2013-14,
63% in 2014-15 and 2015-16, which is at least 50% or more than 50% of the total strength.
Bank comply the required number of independent directors as well as at least one woman
director in board as per the policy of “corporate governance”.

B) Meeting of Board:

As per SEBI guidelines the board shall meet at least four times a year, with a maximum time
gap of four months between any two meetings. It has been observed from annual reports of
bank that bank has conducted more than 4 board meeting in each of the financial year with
a time gap of four months between two meetings. It’s complying with the provision of
“corporate governance” as laid down by SEBI in clause 49.

C) Composition of Audit Committee:

As per Clause 49 of SEBI the audit committee shall have minimum three directors as
members. Two-thirds of the Members of audit committee shall be independent directors It
has been observed from annual reports of bank that bank has at least three directors in
Audit Committee. Also observed that Audit Committee of each bank also consist two third
independent directors.

D) Meeting of Audit Committee:

The audit committee should meet at least four times in a year and not more than four
months shall elapse between two meetings. It has been observed from annual reports of
bank that bank has conducted more than four meeting of Audit Committee in each of the
financial year with a time gap offour months between two meetings. It’s complying with the
provision of “corporate governance” as laid down by SEBI in clause 49.
E) Report on “corporate governance”:

There shall be a separate section on “corporate governance” in the Annual Reports of

company, with a detailed compliance report on “corporate governance”. It has observed
that there is a separate section on “corporate governance” in the Annual Reports of bank,
with a detailed compliance report on “corporate governance” as per clause 49 of SEBI on
“corporate governance”.
  ANNUAL REPORT

DIRECTORS’ REPORT
The Board of Directors of the Bank have pleasure in presenting the Twenty-fifth Annual
Report covering business and operations of the Bank, together with the Audited Financial
Statements for the year ended March 31, 2019.

Despite the deceleration in growth rate in the Indian economy and a challenging
macroeconomic environment, the Bank improved its business, with Deposits growing by
28.51% and Advances by 28.59% over the previous year.

The Bank continued to focus on increasing earnings from its core banking business,
strengthening the fee income streams, and maintaining control on operating costs.
Operating Profit (before Depreciation and Provisions and Contingencies) rose by 21.10% to `
8,317.07 crores, as compared to ` 6,867.75 crores in the previous year.

However, the Net Profit for the year under review was adversely impacted when a large
exposure to a group in the infrastructure sector turned non-performing towards end of the
year; in an unprecedented move, the Govt. of India replaced the entire Board of Directors
and the reconstituted Board initiated a resolution plan, and in the interim, the National
Company Law Tribunal ordered a moratorium on all recovery actions.

When adjusted for the one off impact related to infrastructure sector, Operating Profit
(before Depreciation and Provisions and Contingencies) would have been placed at `
8,470.07 crores showing growth of 23.33% y-o-y.

The Net Profit of the Bank for the year under review, after considering all expenses and
necessary Provisions and Contingencies, amounted to ` 3,301.10 crores, as against `
3,605.99 crores in the previous year. If adjusted for the impact of the one off group account
in the infrastructure sector which became NPA, the Net Profit would be placed at ` 4,475.10
crores showing growth of 24.10% y-o-y.

Dividend
The Earning Per Share (EPS) of the Bank amounted to ` 54.90 during the year 2018-19.

The Board of Directors recommend Dividend of ` 7.50 per Equity Share of ` 10 each (at 75%)
for the year ended March 31, 2019 (Dividend for the year 2017-18 was ` 7.50 per Equity
Share of ` 10 each).
Considering the Equity Shares outstanding as at March 31, 2019, the total amount of
dividend payable including Taxes to be borne by the Bank amounts to ` 544.93 crores. An
amount of ` 92.91 crores would be paid as Dividend Distribution Tax by the Bank on the
Dividend.

Consequent upon the amalgamation of Bharat Financial Inclusion Ltd. with the Bank,
Shareholders of Bharat Financial Inclusion Ltd. whose names appear in the Register of
Members of the Bank as on the Record Date (July 4, 2019) shall also be entitled to the
Dividend.

In accordance with the revised AS 4, viz., ‘Contingencies and events occurring after the
Balance Sheet Date’, this amount is not accounted as a liability as at March 31, 2019. The
members may kindly note that the Bank proposes Record Date of August 9, 2019 for the
purposes of Dividend, and all the shareholders as at the Record Date would be entitled to
Dividend for the year 2018-19. The Dividend Pay-out is in accordance with the Bank’s
Dividend Distribution Policy.

Financial Performance and state of the Affairs of the Bank

The year under review was the second year of the new Triennial Planning Cycle of the Bank,
(Planning Cycle 4, for Financial Years 2017-20) with the theme of “Digitize to Differentiate,
Diversify and Create Domain Leadership” with a strategy to gain ‘Market Share with
Profitability (4D)’.

Backed by improved volumes, the Total Income of the Bank for the year under review grew
by 26.68% to ` 27,907.87 crores from ` 22,030.85 crores.

The healthy rise in profitability was the result of growth in Net Interest Income as well as
Non-Interest Income. Net Interest Income improved by 17.99% to ` 8,846.18 crores from `
7,497.45 crores while Non-Interest Income rose to ` 5,646.72 crores from ` 4,750.10 crores,
registering growth of 18.88%.

Core Fee Income such as commission, exchange, loan processing and account management
fees, fees on Investment Banking and distribution of third-party products, and earnings from
foreign exchange business grew by 21.33% to ` 5,067.57 crores from ` 4,176.75 crores
earned during the previous year.

Yield on Advances increased to 11.26% during the year, as against 11.21% in the previous
year, while the Cost of Deposits rose to 6.58% from 5.98% in the previous year. The Net
Interest Margin was 3.80% in FY 2018-19.

The Bank expanded its branch network steadily to reach 1,665 branches (including 65
banking outlets), as against 1,400 branches at the beginning of the year. Revenue per
employee during the year improved to ` 52 lakhs.
On account of a large exposure to the group in the infrastructure sector turning into NPA,
the Net Non-Performing Assets ratio of the Bank stood at 1.21% as of March 31 2019 and
the Provisioning Coverage Ratio (PCR) stood at 43.04% as compared to 56.26% in the
previous year.

The year under review witnessed a number of significant events,

some of which are listed below::
 The Bank is on its silver jubilee year and the celebration journey ‘#Just 25’ is
launched.
 Mixed Business (Deposits plus Advances) crossed ` 3.81 trillion mark.
 The Bank established its first Euro Medium Term Notes Programme with a size of
USD 1 billion on March 27, 2019; MTNs issued by the Bank subsequently on April 15,
2019 are listed in Singapore Exchange Securities Trading Limited and India
International Exchange (IFSC) Limited (India INX which is India’s first international
exchange in IFSC GIFT City); on March 28, 2019, Moody assigned first-time Baa3
issuer rating to the Bank with a stable outlook.
 On March 28, 2019, Bank issued a third tranche of Basel III compliant Additional
Tier 1 Bonds (AT1) for ` 1,489.90 crores; CRISIL assigned AA / Stable and India Ratings
Research assigned IND AA / Stable ratings.
 USD 100 million additional borrowing from OPIC with 8 year tenor; USD 75 million
from JP Morgan with 1.5 year tenor; rollover of existing USD 300 million from SBI NY
were some of the marquee FCY loans drawn down during the year. In addition, a
syndicated facility of USD 320 million (limit of USD 500 million) was arranged with
drawdown in early April 2019.
 RBI Supervisory Programme for Assessment of Risk and Capital completed during the
year, pertaining to the year ended March 31, 2018, did not warrant any disclosure
relating to divergence in identification of NPAs or provisions for the same.
 CFD ranks No. 1 player in AL vehicles, No. 1 financier for JCBs and Small Commercial
Vehicles.
 In respect of a large group in the infrastructure sector, the Bank had an exposure to
the holding company, which is a Core Investment Company, amounting to ` 2,000
crores and an amount of ` 1,004 crores to a few operating companies and SPVs.
Further to defaults in loan servicing, in an unprecedented move, the Govt. of India
replaced the entire Board of Directors, and the reconstituted Board initiated a
Resolution Plan given the large size of the overall exposure to the market and the
number of operating companies and SPVs belonging to the Group. On October 12,
2018, the National Company Law Tribunal (NCLT) placed the entire recovery
proceedings under a moratorium and National Company Law Appellate Tribunal
(NCLAT) restrained banks from declaring the exposure as NPA. The Bank made
contingency provisions towards the exposure, during the year. In March 2019, when
 NCLAT withdrew its earlier order of restraint, the entire exposure became NPA. This
one-off event caused a significant impact for the quarter as well as year. As at March
31, 2019, the Bank classified the exposure to the group as ‘Non-performing-sub-
standard’ and made an accelerated provision, taking the provision against holding
company exposure to 70% and operating companies / SPVs to 25%.
 Composite Scheme of Arrangement involving merger of BFIL was heard on April 23,
2019, and was reserved for order. Since the NCLT sanction for the Scheme was not
available by then, on May 22, 2019 the Board adopted the Standalone and
Consolidated Financial Statements of the Bank for the year ended March 31, 2019,
without giving effect to the Scheme.
 On June 10, 2019, the NCLT passed a final Order sanctioning the Scheme and the
Bank is in the process of giving effect to the Order. Since the Appointed Date for the
Scheme is January 1, 2018, had the Scheme been sanctioned by the NCLT before the
financial statements for FY 2018-19 were approved by the Board, the financial
statements of the Bank would have incorporated the impact of BFIL’s financials as of
the Appointed Date and transactions from the said Appointed Date of January 1,
2018.

Bank’s Directors
The Bank’s Board comprised ten Directors as on March 31, 2019, viz., Mr. R. Seshasayee,
Non-Executive Part-time Chairman, three Non-Executive Independent Directors, viz., Mrs.
Kanchan Chitale, Mr. Shanker Annaswamy, Dr. T. T. Ram Mohan, four Additional Directors
in the category of Non-Executive Independent, viz., Mrs. Akila Krishnakumar, Mr. Arun
Tiwari, Mr. Siraj Chaudhry, Mr. Rajiv Agarwal, Mr. Yashodhan M. Kale, Non-Executive Non-
Independent Director, and Mr. Romesh Sobti, Managing Director & CEO.

(a) Non-Executive Independent Directors

All Independent Directors have submitted Declarations that they meet the criteria of
independence as laid down under sub-section (6) of Section 149 of the Companies Act,
2013. In compliance with Regulation 16 of Listing Regulations, the Declarations were
placed before the Board of Directors at their meeting held on May 22, 2019, and based
on these Declarations, the following Non-Executive Directors continue to be identified
as meeting criteria of Independent Directors as on March 31, 2019:
i) Mrs. Kanchan Chitale
(ii) Mr. Shanker Annaswamy
(iii) Dr. T. T. Ram Mohan
(iv) Mrs. Akila Krishnakumar (Additional Director)
(v) Mr. Arun Tiwari (Additional Director)
(vi) Mr. Siraj Chaudhry (Additional Director)
(vii) Mr. Rajiv Agarwal (Additional Director)
In addition, the Bank’s Board of Directors have pursuant to Regulation 25(9) of Listing
Regulations obtained a Certificate from M/s Bhandari & Associates, Practicing Company
Secretaries that the aforesaid Directors meet the ‘criteria of independence’ and are
independent of the Management. The Board in its meeting held on July 12, 2019 took note
of the Certificate. Copy of the certificate is enclosed as Annexure-I to this report.

(b) Woman Director

In terms of the provisions of Section 149 of the Companies Act, 2013, read with Rule 3
of the Companies (Appointment and Qualification of Directors) Rules, 2014, and
Regulation 17 of Listing Regulations, specified companies are required to have at least
one Woman Director in their Board.

Mrs. Kanchan Chitale (DIN: 00007267), who joined the Board on October 18, 2011 is an
Independent Woman Director, and Chairs some important Committees

Mrs. Akila Krishnakumar (DIN: 06629992), who joined the Board on August 10, 2018 is
appointed as Additional Director in the category of Non-Executive, Independent Director.

(c) Chairman of the Board

Mr. R. Seshasayee, (DIN: 00047985) has been Non-Executive Part-time Chairman of
the Bank since July 24, 2007.

Shareholders of the Bank had, in the 23rd AGM held on July 26, 2017, approved the re-
appointment of Mr. R. Seshasayee as Non-Executive Part-time Chairman for a period of
2 years.

RBI had conveyed approval for the re-appointment of Mr. R. Seshasayee as a Non-
Executive Part-time Chairman for a period of 2 years, i.e., up to July 24, 2019.
(d) Managing Director & CEO

Mr. Romesh Sobti, (DIN: 00031034) has been the Managing Director & CEO of the
Bank since February 1, 2008.

RBI had conveyed their approval for re-appointment of Mr. Romesh Sobti up to March
23, 2020.

Shareholders of the Bank had, in the 24th AGM held on July 26, 2018, approved the re-
appointment of Mr. Romesh Sobti as the Managing Director & CEO of the Bank for a
period from February 1, 2018 up to March 23, 2020.
 System for Internal Financial Controls and its Adequacy

The Bank operates in a fully computerised environment, with a Core Banking Solution,
supported by diverse application platforms for handling special businesses, such as,
Treasury, Trade Finance, Credit Cards, Retail Loans, etc. The process of recording of
transactions in each of the application platforms is subject to various forms of controls
such as in-built system checks, Maker – Checker authorisations, independent post-
transaction reviews, etc. The Financial Statements are prepared based on computer
system outputs. The responsibility of preparation of Financial Statements is entrusted
to a dedicated unit which is completely independent of business, risk, audit or other
functions. This unit does not originate accounting entries except for limited matters
such as Share Capital, Taxes and Transfers to Reserves. The Bank has implemented
adequate procedures and internal controls which provide reasonable assurance
regarding reliability of financial reporting and preparation of Financial Statements, and
that such internal financial controls were adequate and were operating effectively
during the year.

Reporting of Fraud by the Auditors:

During the year under review, there were no instances of fraud reported by the Auditors
pursuant to Section 143(12) of the Companies Act, 2013 to the Audit Committee or the
Board of Directors
Auditors’ Report
AUDITOR’S REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF
INDUSIND BANK LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of
the Companies Act, 2013 (the “Act”)

To the Members of IndusInd Bank Limited

We have audited the internal financial controls over financial reporting of IndusInd Bank
Limited (the “Bank”) as of March 31, 2019 in conjunction with our audit of the Standalone
Financial Statements of the Bank for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Bank’s Management is responsible for establishing and maintaining internal financial
controls based on the internal control over financial reporting criteria established by the
Bank considering the essential components of internal control stated in the Guidance Note
on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India. These responsibilities include the design, implementation
and maintenance of adequate internal financial controls that were operating effectively for
ensuring the orderly and efficient conduct of its business, including adherence to the Bank’s
policies, the safeguarding of its assets, the prevention and detection of frauds and errors,
the accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information, as required under the Companies Act, 2013.

Auditor’s Responsibility
Our responsibility is to express an opinion on the Bank’s internal financial controls over
financial reporting based on our audit. We conducted our audit in accordance with the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the
“Guidance Note”) and the Standards on Auditing as specified under section 143(10) of the
Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both
applicable to an audit of Internal Financial Controls and, both issued by the Institute of
Chartered Accountants of India. Those Standards and the Guidance Note require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether adequate internal financial controls over financial reporting were
established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting, assessing
the risk that a material weakness exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. The procedures selected
depend on the auditor’s judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the internal financial controls system over financial
reporting

Meaning of Internal Financial Controls Over Financial Reporting

A bank’s internal financial control over financial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally accepted
accounting principles. A bank’s internal financial control over financial reporting includes
those policies and procedures that (1) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets
of the bank; (2) provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the bank are being made only
in accordance with authorisations of management and directors of the bank; and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorised acquisition,
use, or disposition of the bank’s assets that could have a material effect on the financial
statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting,
including the possibility of collusion or improper management override of controls, material
misstatements due to error or fraud may occur and not be detected. Also, projections of any
evaluation of the internal financial controls over financial reporting to future periods are
subject to the risk that the internal financial control over financial reporting may become
inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
Opinion
In our opinion, the Bank has, in all material respects, an adequate internal financial controls
system over financial reporting and such internal financial controls over financial reporting
were operating effectively as at March 31, 2019, based on the internal control over financial
reporting criteria established by the Bank considering the essential components of internal
control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting issued by the Institute of Chartered Accountants of India.

For S.R. BATLIBOI & CO. LLP

  Balance Sheet
IndusInd Bank

Standalone Balance Sheet ------------------- in Rs. Cr. -------------------

Mar '19 Mar '18 Mar '17 Mar '16 Mar '15

12 mths 12 mths 12 mths 12 mths 12 mths

Capital and Liabilities:

Total Share Capital 602.69 600.22 598.15 594.99 529.45

Equity Share Capital 602.69 600.22 598.15 594.99 529.45

Share Application Money 11.19 14.57 15.20 13.77 14.05

Reserves 25,746.55 22,864.65 19,658.18 16,706.45 9,710.02

Net Worth 26,360.43 23,479.44 20,271.53 17,315.21 10,253.52

Deposits 194,867.91 151,639.17 126,572.22 93,000.35 74,134.36

Borrowings 47,321.12 38,289.08 22,453.69 22,155.86 20,618.06

Total Debt 242,189.03 189,928.25 149,025.91 115,156.21 94,752.42

Other Liabilities & Provisions 8,944.42 7,856.27 8,976.38 7,204.81 3,718.96

Total Liabilities 277,493.88 221,263.96 178,273.82 139,676.23 108,724.90

Mar '19 Mar '18 Mar '17 Mar '16 Mar '15

12 mths 12 mths 12 mths 12 mths 12 mths

Assets

Cash & Balances with RBI 9,961.17 10,962.41 7,748.75 4,521.04 4,035.14

Balance with Banks, Money at Call 4,822.23 2,253.47 10,879.51 5,590.83 6,744.00

Advances 186,393.50 144,953.66 113,080.51 88,419.34 68,788.20

Investments 59,266.16 50,076.72 36,702.14 31,214.31 24,859.37

Gross Block 1,688.06 1,313.31 1,306.80 1,217.85 1,119.56

Revaluation Reserves 325.55 362.20 374.59 380.77 391.01

Net Block 1,362.51 951.11 932.21 837.08 728.55

 21.95 25.44 28.44 37.48 38.02
Capital Work In Progress

Other Assets 15,666.35 12,041.16 8,902.28 9,056.14 3,531.63

Total Assets 277,493.87 221,263.97 178,273.84 139,676.22 108,724.91

Contingent Liabilities 985,639.95 358,130.43 210,320.07 298,862.17 215,702.02

Book Value (Rs) 437.20 390.94 338.65 290.79 193.40

Source : Dion Global Solutions Limited

  Profit and Loss Account
IndusInd Bank

Standalone Profit & Loss account ------------------- in Rs. Cr. -------------------

Mar 19 Mar 18 Mar 17 Mar 16 Mar 15

12 mths 12 mths 12 mths 12 mths 12 mths

INCOME

Interest / Discount on Advances / Bills 18,256.68 13,699.91 11,479.11 9,244.56 7,716.91

Income from Investments 3,677.34 3,074.38 2,466.89 1,780.63 1,680.42

Interest on Balance with RBI and Other

102.03 321.48 330.83 408.50 277.30
Inter-Bank funds

Others 225.10 184.99 128.84 146.97 17.34

Total Interest Earned 22,261.15 17,280.75 14,405.67 11,580.66 9,691.96

Other Income 5,646.72 4,750.10 4,171.49 3,296.95 2,403.87

Total Income 27,907.87 22,030.85 18,577.16 14,877.61 12,095.84

EXPENDITURE

Interest Expended 13,414.97 9,783.30 8,343.07 7,064.09 6,271.69

Payments to and Provisions for

1,853.51 184.99 1,521.02 1,236.09 980.48
Employees

Depreciation 228.85 211.64 190.70 156.52 126.85

Operating Expenses (excludes Employee

4,322.32 5,194.81 3,071.36 2,279.49 1,618.60
Cost & Depreciation)

Total Operating Expenses 6,404.68 5,591.44 4,783.08 3,672.10 2,725.93

Provision Towards Income Tax 0.00 1,900.02 1,681.33 1,332.38 836.95

Provision Towards Deferred Tax 0.00 -25.33 -189.54 -149.57 78.05

Provision Towards Other Taxes 0.00 0.00 0.00 0.00 0.45

Other Provisions and Contingencies 4,787.12 1,175.43 1,091.34 672.16 389.05

Total Provisions and Contingencies 4,787.12 3,050.12 2,583.13 1,854.97 1,304.50

Total Expenditure 24,606.77 18,424.86 15,709.27 12,591.16 10,302.12

Net Profit / Loss for The Year 3,301.10 3,605.99 2,867.89 2,286.45 1,793.72

Net Profit / Loss After EI & Prior Year

3,301.10 3,605.99 2,867.89 2,286.45 1,793.72
Items

Profit / Loss Brought Forward 9,311.49 7,118.38 5,013.45 3,664.02 2,623.33

Total Profit / Loss available for

12,612.59 10,724.37 7,881.35 5,950.47 4,417.05
Appropriations

APPROPRIATIONS

Transfer To / From Statutory Reserve 825.27 901.50 716.97 571.61 448.43

Transfer To / From Capital Reserve 39.53 7.62 45.54 13.21 12.27

Transfer To / From Investment Reserve 115.12 0.00 0.00 0.00 37.16

Transfer To / From Revenue And Other

-17.22 0.00 0.00 0.00 0.00
Reserves

Dividend and Dividend Tax for The

0.00 71.52 0.00 0.00 0.00
Previous Year

Equity Share Dividend 452.02 432.24 0.46 292.62 212.01

Tax On Dividend 90.92 0.00 0.00 59.57 43.15

Balance Carried Over To Balance Sheet 11,106.94 9,311.49 7,118.38 5,013.45 3,664.02

Total Appropriations 12,612.59 10,724.37 7,881.35 5,950.47 4,417.05

OTHER INFORMATION

EARNINGS PER SHARE

Basic EPS (Rs.) 54.90 60.19 48.06 39.68 34.00

Diluted EPS (Rs.) 54.46 59.57 47.56 39.26 33.00

DIVIDEND PERCENTAGE

Equity Dividend Rate (%) 75.00 75.00 60.00 45.00 40.00

Source : Dion Global Solutions Limited

  Cash Flow Statement
IndusInd Bank

Cash Flow ------------------- in Rs. Cr. -------------------

Mar 19 Mar 19 Mar 18 Mar 18 Mar 17

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit/Loss Before Extraordinary

0.00 4,980.57 5,480.67 5,480.67 4,359.69
Items And Tax

Net CashFlow From Operating Activities 0.00 -6,388.95 -20,700.44 -20,700.44 11,569.30

Net Cash Used In Investing Activities 0.00 -637.94 -219.55 -219.55 -273.64

Net Cash Used From Financing Activities 0.00 8,589.65 15,505.11 15,505.11 -2,768.25

Foreign Exchange Gains / Losses 0.00 4.76 2.50 2.50 -11.03

Net Inc/Dec In Cash And Cash

0.00 1,567.52 -5,412.38 -5,412.38 8,516.38
Equivalents

Cash And Cash Equivalents Begin of Year 0.00 13,215.88 18,628.25 18,628.25 10,111.87

Cash And Cash Equivalents End Of Year 0.00 14,783.40 13,215.88 13,215.88 18,628.25

Source : Dion Global Solutions Limited

  Indusind Bank Ratio
Key Financial Ratios ------------------- in Rs. Cr. -------------------

Mar
Mar '18 Mar '17 Mar '16 Mar '15
'19

Investment Valuation Ratios

Face Value 10.00 10.00 10.00 10.00 10.00

Dividend Per Share 7.50 7.50 6.00 4.50 4.00

Operating Profit Per Share (Rs) 44.31 35.28 24.58 16.82 15.51

Net Operating Profit Per Share (Rs) 369.37 287.91 240.84 194.64 183.06

Free Reserves Per Share (Rs) -- -- -- -- --

Bonus in Equity Capital -- -- -- -- --

Profitability Ratios

Interest Spread 6.41 6.77 7.14 6.96 7.47

Adjusted Cash Margin(%) 12.64 17.32 16.46 16.42 15.87

Net Profit Margin 14.82 20.86 19.90 19.74 18.50

Return on Long Term Fund(%) 63.44 65.05 62.71 60.88 87.70

Return on Net Worth(%) 12.52 15.36 14.15 13.21 17.51

Adjusted Return on Net Worth(%) 12.52 15.36 14.15 13.21 17.51

Return on Assets Excluding Revaluations 437.20 390.94 338.65 290.79 193.40

Return on Assets Including Revaluations 442.60 396.97 344.91 297.19 200.78

Management Efficiency Ratios

Interest Income / Total Funds 8.93 8.65 9.06 9.32 9.92

Net Interest Income / Total Funds 3.55 3.75 3.81 3.64 3.50

Non Interest Income / Total Funds 2.26 2.38 2.62 2.65 2.46

Interest Expended / Total Funds 5.38 4.90 5.25 5.69 6.42

Operating Expense / Total Funds 2.48 2.69 2.89 2.83 2.66

Profit Before Provisions / Total Funds 3.24 3.33 3.43 3.33 3.17

Net Profit / Total Funds 1.32 1.81 1.80 1.84 1.84

Loans Turnover 0.13 0.13 0.14 0.15 0.16

Total Income / Capital Employed(%) 11.19 11.03 11.69 11.98 12.38

Interest Expended / Capital Employed(%) 5.38 4.90 5.25 5.69 6.42

Total Assets Turnover Ratios 0.09 0.09 0.09 0.09 0.10

Asset Turnover Ratio 0.09 0.09 0.10 0.10 0.10

Profit And Loss Account Ratios

Interest Expended / Interest Earned 60.26 56.61 57.92 61.00 64.71

Other Income / Total Income 20.23 21.56 22.45 22.16 19.87

Operating Expense / Total Income 22.13 24.42 24.72 23.63 21.49

Selling Distribution Cost Composition 0.18 0.18 0.34 0.18 --

Balance Sheet Ratios

Capital Adequacy Ratio 14.16 15.03 15.31 15.50 12.09

Advances / Loans Funds(%) 86.27 85.53 85.61 84.25 80.92

Debt Coverage Ratios

Credit Deposit Ratio 95.62 92.75 91.77 94.06 92.02

Investment Deposit Ratio 31.56 31.19 30.93 33.55 34.48

Cash Deposit Ratio 6.04 6.73 5.59 5.12 6.28

Total Debt to Owners Fund 9.19 8.09 7.36 6.66 9.25

Financial Charges Coverage Ratio 1.62 1.70 1.68 1.61 1.51

Financial Charges Coverage Ratio Post

1.26 1.39 1.37 1.35 1.31
Tax

Leverage Ratios

Current Ratio 0.08 0.08 0.07 0.09 0.05

Quick Ratio 23.70 21.38 14.45 14.16 20.53

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 13.69 11.98 0.01 12.79 11.81
Dividend Payout Ratio Cash Profit 12.80 11.32 0.01 11.97 11.03

Earning Retention Ratio 86.31 88.02 99.99 87.21 88.19

Cash Earning Retention Ratio 87.20 88.68 99.99 88.03 88.97

AdjustedCash Flow Times 55.20 39.72 41.38 38.07 38.60

Source : Dion Global Solutions Limited

ANALYSIS AND INTERPRETATION OF DATA
INDUSIND BANK LTD offers a wide range of retail loans to meet various customer needs.
Whether the need is for a new house, children‟s education, and purchase of a new car or
home appliances and need specific loans will enable customer to convert their dreams to
realities.

 Housing Loans Priority.

 Housing Non Priority.
 Education Loans.
 Personal Loans.
 Vehicle Loans.
 Mortgage Loan.
 Staff Loan.

Home Loan is available for:

 Purchase of new / old dwelling unit.
 Construction of house.
 Purchase of plot of land for construction of a house.
 Repaying a loan already taken from other Housing Finance Company / Bank.
 Repayment period up to 25 years (floating rate option)

Interest:
Penal interest of 1% in case of default of three or more consecutive instalments.

Educational Loan:

Purpose:

To enable students with academic brilliance to meet tuition and other fees / maintenance
costs / books and equipment and cost of passage for studies abroad etc., for pursuing
studies at recognised school / college / institution.

Courses Eligible- Higher Studies:

Diploma / Graduate / Post-graduate courses in the faculties of Engineering Technology,
Architecture, Medicine, Dental Science, Agricultural Science, Veterinary Science and
Computer Certificate courses of reputed institutes accredited to department of electronics
or affiliated to university
Personal Loans

Eligibility: Individuals, Employees of State / Central Government, Public Sector

Undertakings, reputed profit making Public Limited Companies, Multinational Companies
with a minimum service of two years and drawing a net salary of Rs. 6,000/- or above.

Purpose: To meet personal expenses like marriage, family functions, medical expenses,
travel etc.

Loan Amount: Up to Rs. 1.50 lacks depending on repayment capacity of the individuals.

Security: Third party guarantee of equal means, Securities like LIC policies, NSC, KVIP, Shares
etc.,

Period of Repayment: 12 months to 36 months.

Type of Loan: Demand loan.

Processing Fee: 1% of loan amount (one time).

Key Benefits:

 Helps customer to take care of all kinds of expenses at a short notice.

 The Loan may be availed to meet expenses related to marriage, travel,
honeymoon, holiday and medical expenditure or for any other personal
use.
 The loan is also available to Pensioners/Defence Pensioners Loan is also
available for Earnest Money Deposits for buyers of home/flat/plot.

Analysis:
The retail loans lend by INDUSIND BANK LTD, the amount has increased from one year to
another which can be analysed from above table. And number of A/c holders also increased
from year to another.

In the year 2009-10 the amount lend was Rs.7,055 thousands and no. Of a/c holders was 29
members. In year 2010-11 the amount lend was Rs.21, 557 thousands and no. Of a/c
holders was 43 members. And in year 2011-12 the amount lend was Rs.55,717 thousands
and no. Of a/c holders was 90 members. So from year 2009-10 to 2010-11 the amount lend
by bank for retail loan was increased by Rs.14,502 thousands. From year 2010-11 to 2011-
12 the amount increased by Rs.34,160 thousands. So from one year to another year there is
increase in the retail loan amount.
PRODUCTS OF INDUSIND (Credit Cards)
We, at IndusInd Bank, understand that you are unique and special. We have therefore
created different credit cards that complement your lifestyle and offer you more than you
expect.

 Important

Note Currently Credit Card product & associated services are

available in the following cities only – Delhi/NCR (Including Noida,
Gurgaon), Mumbai, Kolkata, Pune, Chennai, Bengaluru. You can
apply for your IndusInd Bank Credit Card at all branches in these
cities.
Premium Credit Cards –
• Signature Credit Card

• Platinum Credit Card

• Platinum Aura Credit Card

• Platinum Select Credit Card

• World Miles Credit Card

Co-branded Credit Cards

• Miles & More Credit Card by IndusInd Bank

• IndusInd Bank Landmark Credit Card

Core Credit Cards

• IndusInd Bank Gold Credit Card

• IndusInd Bank Business Credit Card

• IndusInd Bank Classic Credit Card

 PRODUCTS AND SERVICES
ACCOUNT & DEPOSITS SERVICE
Banking should be effortless. With INDUSIND Bank, the efforts are rewarding. No matter
what a customer's need and occupational status, we have a range of solutions that are
second to none. Whether you're employed in a company and need a simple Savings account
or run your own business and require a robust banking partner, INDUSIND Bank not only has
the perfect solution for you, but also can recommend products that can augment your
planning for the future. It includes these services:

• Saving accounts.

• Current accounts.

• Fix deposits.

• Demate account.

• Safe deposits lockers.

 SAVINGS ACCOUNTS
These accounts are primarily meant to inculcate a sense of saving for the future,
accumulating funds over a period of time. Whatever person’s occupation, bank have
confident that person will find the perfect banking solution. There some saving accounts
like: - Regular Saving Account: An easy-to-operate savings account that allows you to issue
cheques, draw Demand Drafts and withdraw cash. Check up on your balances from the
comfort of your home or office through Net Banking, Phone Banking and Mobile Banking. If
you need money urgently then you can take money from the ATM machine. There are 1977
ATM centers across the country.

Saving plus Account

INDUSIND Bank has introduced Savings plus Account. Now we can get access to some of the
finest banking facilities with INDUSIND Bank's Savings plus Account. All that is required is to
maintain an Average Quarterly Balance of Rs. 10,000/-.

Saving Max Account

Indusind bank presents Savings Max account, loaded with maximum benefits to make
banking experience a pleasure. By maintaining an average quarterly balance of just Rs.
25,000/- you get a host of premium services from INDUSIND Bank absolutely free.
Senior Citizen Account
INDUSIND bank understands what senior citizens need. Thus the senior citizen account will
like a dutiful child will help you fulfill your needs in the best manner possible.

No frills Account
In an effort to make banking simpler and more accessible for customers, bank has
introduced the 'No Frills' Savings Account, which offers customer all the basic banking
facilities. Customer can even avail of services like Net Banking, Mobile banking free of cost.
In this customer can put Zero Initial Pay-in and a Zero Balance account.

Institutional saving accounts

A specially designed account that offers twin benefits of a savings as well as a current
account. Customer’s funds continue to earn interest while he enjoys hassle-free banking & a
host of other features. This is a zero balance account.

Salary Accounts
In this account customer can get salary from where he/she doing such job and organization
or company at where the customer of the bank in doing job deposit their salary in to the
salary account a person can get salary.

There are various kinds of salary accounts in the INDUSIND Bank like:

• Pay roll account.

• Classic salary account.

• Regular salary account.

• Premium salary account.

• Defense salary account.

• No frills salary account.

• Reimbursement salary account.

Kid’s advantage account

Open a Savings Account and transfer money every month into customer’s Kids Advantage
Account and watch the savings grow as customer’s child grows. The accumulated savings in
the Kids Advantage Account can over the years help in meeting customer child's needs
 CURRENT ACCOUNTS
INDUSIND Bank Current Account gives the power of inter-city banking with a single account
and access to more than cities. From special cheques that get treated at par with local ones
in any city where branch, faster collection of outstation cheques (payable at branch
locations), free account to account funds transfer between INDUSIND Bank accounts to Free
inter-city clearing of up to 100 lakhs per month, bank’s priority services have become the
benchmark for banking efficiency.

Now, with an INDUSIND Bank Current Account, experience the freedom of multi-city
banking. Person can have the power of multi-location access to his account from any of our
761 branches in 327 cities. Not only that, he can do most of his banking transactions from
the comfort of his office or home without stepping out.

There are various kinds of current account in this bank like: -

Plus current account

INDUSIND Bank plus Current Account gives the power of inter-city banking with a single
account and access to more than cities. Plus Current Account requires maintaining an
average quarterly balance of Rs. 100,000.

Trade current account

In today's changing business requirements, you need to transfer funds across cities, and
time is of the essence. INDUSIND Bank Trade Current Account gives power of inter-city
banking with a single account.

From special cheques that get treated at par with local ones in any city where bank have a
branch, to free account to account funds transfer between INDUSIND Bank accounts, to free
inter-city clearing of up to 50 lakhs per month, bank’s priority services have become the
benchmark for banking efficiency. Trade Current Account requires maintaining an average
quarterly balance of Rs. 40,000.

Premium current account

Business needs a partner who can manage finances while concentrate on growing business.
Form this account customer can avail benefits of inter-city banking account that requires an
average quarterly balance of only Rs. 25,000, offers Payable-At-Par cheque book facility &
FREE inter-city clearing transactions across our network up to Rs.25 lakhs per month. A
Current Account with the benefits of accessing account from a large network of branches,
and through direct access channels - the phone, mobile, Internet and through the ATM.
Regular current account

A Current account is ideal for carrying out day-to-day business transactions. With the
INDUSIND Bank Regular Current Account, customer can access account anytime, anywhere,
pay using payable at par cheques or deposit cheque at any INDUSIND bank branch. It also
facilitates FREE NEFT transactions & FREE RTGS collections for faster collections in account.
Regular Current Account requires maintaining an average quarterly balance of only Rs.
10,000.

With a vast network of branches in cities all over the country, and access to a multitude of
ATM's, customer can keep track of all transactions anytime.

Reimbursement Current Account

No more paperwork, no more receipts to keep track of - a hassle-free account that allows
deposit the reimbursements receive from company/organization on a monthly basis. To
open this account a person has to follow these processes:

Procure an Account Opening Document (AOD) from INDUSIND Bank. (If person has just
joined, first request to company to open up a Salary Account for particular person). Mention
Salary Account number and Debit Card number on the AOD so that Debit card can be linked
to both, Salary Account as well as new Reimbursement Account.

And then request company to directly credit cash payments to the Reimbursement
Account.

Flexi current account

Tired of static transaction limits during peak seasons? INDUSIND Bank Flexi Current Account
is the answer to changing banking needs during peak seasons.

With INDUSIND Bank Flexi Current Account Cash Deposit and Anywhere Transaction limits
are a multiple of the balance you maintain in Current Account. So, during peak seasons,
customer get the benefit of higher transaction limits due to the higher average balances
maintained in account. What’s more, during lean seasons, person need not worry about
maintaining huge balances to enjoy high transaction limits, which person anyway may not
need. Flexi Current Account requires maintaining a minimum Average Monthly Balance
(AMB) of just Rs. 75,000.
Apex current account

The top position is always the desirable position. With the Apex current account, take
business to a new high. On maintaining an average quarterly balance of Rs. 10 lakhs, this
account makes sure person make the most of every business opportunities coming his way.
Unlimited, free, anywhere Banking experience at the APEX is reserved for person who joints
this.

Max current account

Maximum benefits and minimum hassles for customer with Max Current Account with a Rs.
5 lakhs average quarterly balance requirement, bank present to world of privileges that
helps business expand and grow. It offers features like maximum free transaction limits
including other beneficial features on this current account truly enhances business potential
to the Maximum.
 FIX DEPOSITS SERVICE
Long-term investments form the chunk of everybody's future plans. An alternative to simply
applying for loans, fixed deposits allow to borrow from own funds for a limited period, thus
fulfilling needs as well as keeping savings secure.

People can invest his/her money into either in security market or gold or mutual fund or
into a fix deposits. People always go to that way where he/she can get more benefits and
minimum risks. So, for this purpose he has a better chance to deposits money in to the fix
deposit.

If people believe in long-term investments and wish to earn higher interests on his/her
savings, now is the time to invest money in INDUSIND bank Fixed Deposit. Get up to 9.75%
on INDUSIND Bank Fixed Deposit with an additional 0.50% for Senior Citizens. What's more
NO PENALTY if withdraw part of the FD in times of need. Flexibility, Security and High
Returns all bundled into one offering.

Regular fix deposit

As per the rules and regulation of the bank a person can deposit their money in to a fix
deposit in the bank and can get the benefits of these facilities.

Five year tax saving fix deposit

In 2006, it was announced for the first time that Bank fixed deposits booked by an
Individual/HUF for 5 years & up to Rs. 1,00,000/- will be allowed exemption under Sec 80C
of the Income Tax Act,1961 subject to necessary declarations taken from the Customer. .

Super saver facility

Customer can enjoy a high rate of interest along with the liquidity of a Savings Account by
opting for a Super Saver Facility on his or her savings account. Avail of an overdraft facility of
up to 75% of the value of his or her Fixed Deposit.

Sweep-in facility

Do you wish to avoid taking overdrafts, and still take advantage of your Fixed Deposits?
Then what you need is a Sweep-In Facility on savings account. Link Fixed Deposit to Savings
or Current Account and use it to fall back on in case of emergencies. A deficit in Savings or
Current Account is taken care of by using up an exact value from Fixed Deposit. Since
deposits are broken down in units of Re 1/-, customer will lose interest only for the actual
amount that has been withdrawn.
 DEMAT ACCOUNT SERVICE
Nowadays share market is becoming is the main occupation of the person. So to avoid faulty
processes demat account is really most important for the share market and for the safety of
shares it is most important.

INDUSIND BANK is one of the leading Depository Participant (DP) in the country with over 8
Lac demat accounts.

INDUSIND Bank Demat services offers a secure and convenient way to keep track of
securities and investments, over a period of time, without the hassle of handling physical
documents that get mutilated or lost in transit.

INDUSIND BANK is Depository participant both with -National Securities Depositories

Limited (NSDL) and Central Depository Services Limited (CDSL).
 SAFE DEPOSIT LOCKER
A Safe Deposit Locker with INDUSIND Bank is the solution to person’s fear. Located at select
branches in cities all over the country, bank’s lockers ensure the safe keeping of valuables.

Eligibility

An individual (not minor), firms, limited company, associations, clubs, trusts, societies, etc
may hire a locker.

Advantages of safe deposit locker in INDUSIND bank

• Wide Availability.

• Lockers available in various sizes. I.e. Small, Medium, Large and Extra Large with varying
rents.

• Lockers are rented out for a minimum period of one year. Rent is payable in advance.

• No deposits are required to avail a locker. Just open an account and get the locker facility.

• There is a nominal annual charge, which depends on the size of the locker and the centre
in which the branch is located.

• Nomination for Safe Deposit Locker. The Lockers and their contents can be nominated to
people near and dear to you.

• Nomination facility is available to individual hirer of Safe Deposit Locker.

• In the case of a sole hirer of a safe deposit locker, nomination can be made in favor of only
one individual.

• Where the safe deposit locker is hired in the name of a minor, the nomination shall be
made by a person lawfully entitled to act on behalf of the minor.

Terms & Conditions For obtaining a Locker at INDUSIND Bank you must be an account
holder with Bank. Lockers can be allotted individually as well as jointly.

The Locker holder is permitted to add or delete names from the list of persons who can
operate the Locker and can have access to it. Loss of Key is to be immediately informed to
the concerned Branch.
 LOAN SERVICES
INDUSIND BANK provides the following loans to its customers:

Home loan
INDUSIND Bank brings INDUSIND home loans to doorstep. With over 30 years of experience,
a dedicated team of experts and a complete package to meet all housing finance needs,
INDUSIND Home Loans, help people realize dream.

Car and Two-Wheeler loan

Types of automobile loans available:

• Two wheeler loans.

• New car loan.

• Used car loan.

• Tractor loan (for agree culture business).

• Commercial vehicle loan. So, as per the requirement of the person there are these types
of loans are available this are at cheap rates and are hassle free from more documentation
and other procedure. And commercial businessman can get the benefits of the commercial
vehicles loans. Thus as per the need of different people there are vehicle loans available.
And also terms and condition are different as per the requirement.

Express loan plus

Bank offer Express Loans Plus at person Doorstep to help fulfill all his/her needs. The
procedure is simple, documentation is minimal and approval is quick. It is helpful to person
in repairing of house, School admission or also in the family holiday.

Gold loan
With INDUSIND Bank's Gold Loan, person can get an instant loan against gold jewellery and
ornaments. The procedure is simple, documentation is minimal and approval is quick. A
person can get 70% loan on the value of the gold jewellery and ornaments. There is also
availability of the overdraft on the gold jewellery. With this a customer can get free
additional services like free personalized cheque book, free international debit card, and
free net banking phone banking services.
Educational loan A person can get loan up to 10 lakhs to study in India and 20 lakhs if he
wants to study in abroad. Loan is available up to tenure of 7 years including moratorium
period. Loans are disbursed directly to the educational institution. It is released as per fee
schedules of institutes. Exclusive Telegraphic Transfer facility is also available for courses
abroad. Loans are available for short duration/ job oriented courses also.

Loan against security

With INDUSIND Bank's Loan against Securities, person can get an overdraft against
securities like Equity Shares, Mutual Fund Units(Equity, Debt, FMPs), Gold Exchange Traded
Fund(ETF),NABARD's Bhavishya Nirman Bonds, Policies issued by LIC & Select Private
Insurance Companies, NSC, KVP, UTI Bonds (ARS & US64 Bonds) and Gold Deposit
Certificates, while still retaining ownership. And the best part is that he can continue to
enjoy all his shareholder benefits such as rights, dividends and bonuses Loan available to
NRIs against Shares, Mutual Funds (equity, Debt, FMPs), US64 Bonds, Insurance Policies,
NSC, and KVP.

Loan against property

INDUSIND Bank brings Loan against Property (LAP). Person can now take a loan against
residential or commercial property, to expand his business, plan a dream wedding, and fund
his child's education and much more. He can depend on bank to meet all his business
requirements even to purchase a new shop or office for business. Loan to purchase
Commercial Property (LCP) is a specially designed product to help person expand his
business without reducing the capital from his business. These are loans services provided
by INDUSIND bank which are very hassle free and really benefits for most of customer and
most of customer are satisfied by the loan services providing by the bank.

Indus Demat Cash Scheme

the loan is given for any of the purposes broadly categorized as under:

Personal Purposes: For meeting personal expenses like for marriage, housing, education,
medical etc.

Business Purposes: For meeting financial requirements for your professional or business
purposes other than operations on stock markets
Small Business Loan
For any business to succeed, the availability of funds throughout its life cycle is of
paramount importance. We offer a wide range of services to meet all the banking
requirements of small and medium enterprises. The limits are fixed keeping in view the
enterprise's need for funds against the value of the security, margin available and credit
worthiness of the borrower's enterprise

 FOREX AND TRADE SERVICE

People need to deal in foreign currency and keep tabs on exchange rates every now and
then, transfer money to India, make payments etc., INDUSIND Bank has a range of products
and services that people can choose to make transaction smoothly, efficiently and in a
timely manner.

The bank offers the following Foreign Exchange Products and Services.

The following are different methods of transacting in Foreign Exchange and remitting
money.

• Travelers Cheques.

• Foreign Currency Cash.

• Foreign Currency Drafts.

• Cheque Deposits.

• Remittances.

• Cash to Master.

• Trade Services.

• Forex Services Branch Locator.

 PAYMENT SERVICE
With INDUSIND Bank's payment services, one can bid goodbye to queues and paper work.
The bank’s wide range of payment options make it easy to pay for a variety of utilities and
services.

Verified By Visa

Do you want to be worry free for your online purchases? Now you can shop securely online
with your existing Visa Debit/Credit card.

Net Safe

Now you can shop online without revealing your INDUSIND Bank Credit Card number. What
more, you can now use your INDUSIND Bank Debit Card also for online purchases.

Merchant Services

Accept all Visa, MasterCard, credit and Debit cards at your outlets through state of the art
POS Machines or through your website and experience hassle free payment acceptance.

Prepaid Mobile Refill

If you are an INDUSIND Bank Account holder, you can now recharge your Prepaid Mobile
Phone with this service.

Bill Pay

Pay your telephone, electricity and mobile phone bills at your convenience. Through the
Internet, ATMs, your mobile phone and telephone - with Bill Pay, our comprehensive bill
payments solution.

Visa Bill Pay

Pay your utility bills from the comfort of your home! Pay using your INDUSIND Bank Visa
credit card and forget long queue and late payments forever

Pay Now

Use your INDUSIND Bank Credit Card to pay your utility bills online, make subscriptions and
donations; no registration required. Enjoy credit free period and reward points as per your
credit card features.

Insta Pay

Pay your bills, make donations and subscribe to magazines without going through the
hassles of any registration.
Direct Pay

Shop or Pay bills online without cash or card. Debit your account directly with our Direct
Pay service!

Visa Money Transfer

Transfer funds to any Visa Card (debit or credit) within India at your own convenience
through INDUSIND Bank's Net Banking facility.

E-Monies National Electronic Funds Transfer

Transfer funds from your account to other Bank accounts across India - FREE of cost.

Online Payment of Excise & Service Tax

Make your Excise and Service Tax payments at your own convenience through INDUSIND
Bank's Net Banking facility.

Religious Offerings

Now donate to your favorite temple easily and securely using INDUSIND BANK's Net
Banking.

 NRI BANKING
With a view to attract the savings and other remittance into India through banking channels
from the person of Indian Nationality / Origin who are residing abroad and bolster the
balance of payment position, the Government of India introduced in 1970 Non-
Resident(External) Account Rules which are governed by the Exchange Control Regulations.

The funds held in Non-Resident (External) Accounts (NRE Accounts) qualify for certain
benefits like exemptions from taxes in India, free repatriations facilities, etc.

Deposit types

NRI-Banking facilitates the NRI customer to open the following account types.

NRE (Non Resident External Accounts)

It can be in the form of Savings, Current or fixed deposits in Indian rupees. The funds in this
account are fully reportable. 43 | Page
NRO (Non Resident Ordinary Accounts)

It can be in the form of Savings, Current or Fixed Deposits in Indian Rupees. The funds in this
account are not reportable (only interest accrued is reportable).

FCNR (Foreign Currency Non Resident Accounts)

It can be in the form of fixed Deposits only, in the five major currencies, namely US Dollars,
GBP, DM, Euro, and Japanese Yen. The funds in this account are fully reportable

 WHOLESALE BANKING
Wholesale banking is the provision of services by banks to the like of large corporate
clients, mid-sized companies, real estate developers and investors, international trade
finance businesses and institutional customers, such as pension funds and government
entities/agencies. Also included is banking services offered to other financial institutions. In
essence, wholesale banking services usually involve high value transactions. Wholesale
banking compares with retail banking, which is the provision of banking services to
individuals.

Corporate service
Corporate Banking reflects INDUSIND Bank's strengths in providing our corporate clients in
India, a wide array of commercial, transactional and electronic banking products. We
achieve this through innovative product development and a well-integrated approach to
relationship management. 44 | Page

Small & medium term enterprises

INDUSIND Bank understands how much of hard work goes into establishing a successful
SME. Bank also understands that business is anything but "small" and as demanding as ever.
And as business expands and enters new territories and markets, person need to keep pace
with the growing requests that come in, which may lead to purchasing new, or updating
existing plant and equipment, or employing new staff to cope with the demand. That's why
INDUSIND Bank has assembled products, services, resources and expert advice to help
ensure that your business excels.
Government sector
INDUSIND Bank acts as an active medium between the government and the customers by
means of various services. These services include:

• Tax Collection wherein customers can directly pay their taxes like Direct taxes, Indirect
taxes and Sales Tax collections at their local INDUSIND Bank.

• E-Ticketing - Helps the customer by providing him a direct access to book a Railway Ticket
online and get it home delivered.

• Opening of L/C's is done by the bank on behalf of Government of India, Mints and Presses,
thus facilitating imports for the Government.

• Collection of levies and taxes on behalf of Municipal Corporations i.e. Kalyan -Dombivli
Municipal Corporation, is undertaken by the Bank.

• Collection of stamp duty is done via franking mode in the states of Maharashtra & Gujarat.
The Stamp Duty Franking Facility is available at following branches - Fort, Chembur, Lower
Parel, Mira Road, Thane (Talao Pali), Panvel, Ratnagiri, Pune (FC Road), Kolhapur, Nagpur,
and Pimpri.

• Disbursement of Pension to retired Employees of Central Govt and Defence is directly

done by INDUSIND Bank along with the disbursement of pension to the members of EPFO
(Employees Provident Fund Organization).

• Electronic Collection of fees on behalf of DGFT is done by the bank too.

  FINDINGS

 The total loan disbursed was at increasing level and also account holders were also
increased from year to year. There was no decrease level in total amount lent and
account holders for all 3 years.
 It is generally observed that there is an increase in Home loan disbursement that is in
the year 2011-12 it has increased to 71% from 21%in the year 2010-11.
 The Education loan was from year 2009-10 (nil) to year 2010-11(15.%), but in the year
20011-12(85%).
 In Personal loan the amount lent for loan purpose and the account holders was at
increasing level. There was no decrease level found in personal loan.
 The Mortgage loan also increased from the year 2009-10(13%) to the year 2010-11
(34%).but in the year 20010-11(53%) it increased.
 Bank provided loan for purchasing two, three or four wheeler vehicle. In these 3 years
bank had lended about Rs.468 for 2 customers which is 8% in the year 2009-10. The
vehicle loan also increased from the year 20010-11 (35%) to but in the year2011-12
(57.28%) it increased.
 In staff loan the amount lent for loan purpose and the account holders was at increasing
level.
 SUGGESTIONS

 As part of the marketing strategy, banks could organize special exhibitions, trade
shows in strategic locations at times of festival celebrations/events, etc. to create
awareness among people.
 Small pamphlets (containing specific retail loan products, features, EMI structure
both on floating and fixed interest basis, repayment periods, required
documentations, etc.) can be distributed while customers visit to the branches to
avoid delay in the processing of loans as well as to educate them on the importance
of retail loan schemes.
 Depending up on the quantum of loan and credit rating of customer, softer
repayment terms/schedule, especially for availing various schemes, could be
thought of.
 Tie ups between manufacturer and banks, and communicating the finance options,
as part of the product communications to the customer to drive volumes and
increase the retail lending penetrations.
 Before the lending method was quite rigid, security oriented, but now it has
become need based.
 To increase the number of customers and to maintain a good customer relationship
i would like to suggest the bank to make the minimum balance maintenance as
ZERO.
 To liberalise the stringent norms in respect of documents, at the same time to give
more importance to valid documents, so that the bank can increase its transactions
through the existing customers and the new customers as well.

 By educating the illiterate customers through training programmes before granting

them loan will attracts more customers towards the bank
  CONCLUSIONS

Lending to individuals for consumption or investment will be inflationary. Till a decade this
was the maxim driving the banks. Globalization and the resulting opening up of domestic
markets to FII‟S and the permission to the Indian corporate to tab global financial markets
have all dramatically changed the current market scenario.

Recently RBI has increased the CRR rate. It has increased to 75 basis points against 50 basis
points expected by various analysts. Due to the increase in CRR rate the lending among the
banks reduces as they have to keep a large amount with RBI. As CRR rate has increased RBI
has also increased BPLR (Basis Points for Lending Rate). Due to increase in BPLR the interest
rate on loan will also increase.

Under the new system, a base rate will be fixed on the basis of the cost of funds and other
expenses to service the customers. However, RBI, it is learnt, agreed to exempt there kinds
of loans- staff loans, loans against fixed deposits and loans under the differential rate of
interest scheme- from the base rate‟s ambit. Except these three categories, no loan will be
offered at lower than the base rate. Base rate will be revised by the banks every three
months.

By the analysis made of Indusind bank ltd it can be concluded that the performance of The
bank is satisfactory as the branch was placed from past 3 years
  Bibliography
 Text Books:
Keller, Lane, Kevin. Strategic Brand Management- Building, Measuring, and
Managing Brand Equity, Second Edition, Pearson Education, New Delhi 2004.

Kotler, Philip. How to Create, Win & Dominate Markets, The Free Press, 3rd Edition,
New York, 1999.

Levy, Sidney J., brands, Consumers, Symbols, & Research, Sage Publications, 3rd
Edition, New Delhi, 2004.

Magazine:

India Today

Newspaper:

Economic Times

Websites:

• www.indusind.com

• www.wikipedia.com

• http://search.ebscohost.comhttp://web.ebscohost.com/ehost/pdfviewer/pdfviewer?
 QUESTIONNAIRE
Name:

Phone : Phone Res.

Occupation:

Office Address:

 Type of Bank’s you are holding saving account with

1. Nationalized / co-operative

2. Private

3. Multinational

 How long have you been banking with them?

1. Less than 1 year

2. 1-3 year

3. 4 years and above

 How would you rate your experience with your current bankers?
1. Excellent

2. Good

3. Fair

4. Poor
  Do you presently hold a credit Card?
1. Yes

2. No

 Does your bank charges you on the transaction that you do on the
credit Card?
1. Yes

2. NO

 Which of these factors influenced your decision to open an

account with your current bank?
1. Facilities provided by the Bank

2. Recommendation by friend / relatives

3. Advertisement

4. Brand

5. ATM’s

6. Branch timing

 Would you be interested in opening a saving account with the

IndusInd Bank?
1. Yes

2. No
  How long have been you using the Credit card?
1.Less than 6 months

2. 1to 2 years

3. 2 to 4 years

4. More than 4 years

 . Are you satisfied with Bank’s Services?

1. Yes
2. NO

 Which area they belong?

1. Rural
2. urban