1.

CHAPTER

1.1 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.

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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.

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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

3
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.

1.1.1 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 in
India as well as in international markets. Since its inception in 1977, the Corporation has
maintained a consistent and healthy growth in its operations to remain the market leader in
mortgages. Its outstanding loan portfolio covers well over a million dwelling units.

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:

 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

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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.

5
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.

6
1.1.2 FUNCTIONS OF INDUSIND BANK

Primary Functions

 Acceptance of Deposits

 Making loans & advances

 Loans

 Overdraft

 Cash Credit

 Discounting of bills of exchange

Secondary Functions

 Agency functions

 Collection of cheques & Bills etc.

 Collection of interest and dividends.

 Making payment on behalf of customers

 Purchase & sale of securities

 Facility of transfer of funds

 To act as trustee & executor.

Utility Functions

 Safe custody of customers valuable articles & securities.

 Underwriting facility

 Issuing of traveller's cheque letter of credit.

 Facility of foreign exchanges

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 Providing trade information

 Provide information regarding credit worthiness of their customer.

8
1.1.3 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

9
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

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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

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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.

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 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.

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1.2 OBJECTIVES OF INDUSIND BANK

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

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1.3 IMPORTANCE AND SIGNIFICANCE

1. To develop close relationship with individuals households.

2. To maintain its position as premiere housing finance institution in the country.

3. To provide consistently high returns to the shareholders.

4. To transforms ideas into variable and creative situation.

5. To know customer view points and expectation about the product and services of bank

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1.4 SCOPE OF RESERCH 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.

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1.5 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)

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2. CHAPTER

2.1 REVIEW OR THE LITERATURE

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) –Co-operative banking in which, 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) –Borons of banking in which, 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.

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3.Jakob and Razvan (2015)– E-Banking in india which , 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)– Commercial Bank Management in which, 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) – Indian Decades Of in which, 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) –Probationary offer in which, 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)–Marketing Strategies in which, 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)– Consumer Expectation of Service in which, had done an intensive
study regarding “Corporate Governance of Banks in Developing Economies” They observed that

19
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) – Service Marketing Straegies in which, 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

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 3. CHAPTER

3.1 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.

 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.

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3.2 Data Collection

3.2.1. Primary Data

The primary data are the first hand information gathered for research to solve the need by
surveying the sampling units and collection of feedback from them involves the primary data
with structured queries will be prepared for the customers. There will be survey within the
customers giving the questionnaire. The questionnaire were structured non disguised
questionnaire which the questionnaire contained, were arranged in a specific order besides
the questions asked were logical for the study, no questions can be termed as irrelevant.

Sources of primary data:

 Personal interview

 Questionnaire

Personal interview

This method was the most appropriate way of survey, because by personal interview I came
to know about how the respondents feel about the banking companies. The personal
interview is conducting mainly for collecting information for fulfill of the questionnaire.

Questionnaire

This method proved to be even better because it was not possible to interview every one and
it was less time consuming to fill up the questionnaire rather than answering the
interviewer’s questions. The questionnaire is to prepare to know the awareness level. The
questionnaire is fully focused for collecting the brand awareness information and findings
the market potential of Banking Company.

In this method questionnaire were distributed to the respondence and they were asked to
answer the questions in the questionnaire. The questionnaire were structured non disguised
questionnaire because the questions which the questionnaire contained, were arranged in a
specific order every besides every questions asked were logical for the study, no questions

22
 can be termed as irrelevant.
3.2.2 . Secondary Data

The secondary data is collected from the company websites and other websites, through
listing by personal observation. The secondary data are collected by some other people for
their work and it is already exit. The researcher started investigation by first examining the
secondary data to see whether the problem can be partly or fully solved by without
collecting primary data. Since the secondary data were not sufficient to solve the entire
problem, so primary data were not sufficient were collected to fill the gap.

Sources of secondary data:

 Through internet, various officials sites of the companies and other search engines.

 Through pamphlets and brochures of the companies.

 Journals and magazine.

Data collection instruments -Questionnaire were designed as a main instrument to conduct

survey. A questionnaire constraint of 9 set of questions presented to respondents for their answers.
The questionnaire was non-disguised because the questionnaire was constructed so that the
objective is clear to the respondent. The respondents were aware of the objectives. They knew why
they were asked to fill the questionnaire. The questionnaire is used for the purpose is used for the
purpose of knowing the brand awareness among Banking Company and changing investment
pattern of people of Mumbai city.

Field work -Field work is done in this project individually with no biasness. The field work
comprises of filling of questionnaire by different sector individuals. The framed questionnaire was
presented for approval for to college internal guide and company external guide. The study
involved a fieldwork where the consumer contacted individually and were persuaded to discharge
the information through the questionnaire.

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3.3 TABULATION OF DATA

BALANCE SHEET OF INDUSIND BANK

Mar '19 Mar '18 Mar '17 Mar '16 Mar '15
BAL ANCE
SHEET IN (Cr.)
12 12 12 12 12
MONTHS MONTHS MONTHS MONTHS MONTHS
Capital and Liabilities:
Total Share 602.69 600.22 598.15 594.99 529.45
Capital
Equity Share 602.69 600.22 598.15 594.99 529.45
Capital
Share Application 11.19 14.57 15.20 13.77 14.05
Money
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 8,944.42 7,856.27 8,976.38 7,204.81 3,718.96
& Provisions

Total Liabilitie 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 12 12 12 12
MONTHS MONTHS MONTHS MONTYHS MONTHS
Assets

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

with RBI

24
Balance with 4,822.23 2,253.47 10,879.51 5,590.83 6,744.00
Banks, Money at
Call
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 325.55 362.20 374.59 380.77 391.01

Reserves
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 985,639.95 358,130.43 210,320.07 298,862.17 215,702.02

Liabilities
Book Value (Rs) 437.20 390.94 338.65 290.79 193.40

25
 PROFIT AND LOSS ACCOUNT OF INDUDSIND BANK

PROFIT OR LOSS A/C Mar 19 Mar 18 Mar 17 Mar 16 Mar 15

IN (Cr.)

12 12 12 12 12
MONTHS MONTHS MONTHS MONTHS MONTHS

INCOME
Interest / Discount on 18,256.68 13,699.91 11,479.11 9,244.56 7,716.91
Advances / Bills
Income from Investments 3,677.34 3,074.38 2,466.89 1,780.63 1,680.42
Interest on Balance with RBI 102.03 321.48 330.83 408.50 277.30
and Other 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 1,853.51 184.99 1,521.02 1,236.09 980.48
for Employees
Depreciation 228.85 211.64 190.70 156.52 126.85
Operating Expenses (excludes 4,322.32 5,194.81 3,071.36 2,279.49 1,618.60
Employee Cost &
Depreciation)
Total Operating Expenses 6,404.68 5,591.44 4,783.08 3,672.10 2,725.93
Provision Towards Income 0.00 1,900.02 1,681.33 1,332.38 836.95
Tax
Provision Towards Deferred 0.00 -25.33 -189.54 -149.57 78.05
Tax

26
Provision Towards Other 0.00 0.00 0.00 0.00 0.45
Taxes
Other Provisions and 4,787.12 1,175.43 1,091.34 672.16 389.05
Contingencies
Total Provisions and 4,787.12 3,050.12 2,583.13 1,854.97 1,304.50
Contingencies
Total Expenditure 24,606.77 18,424.86 15,709.27 12,591.16 10,302.12
Net Profit / Loss for The 3,301.10 3,605.99 2,867.89 2,286.45 1,793.72
Year
Net Profit / Loss After EI & 3,301.10 3,605.99 2,867.89 2,286.45 1,793.72
Prior Year Items
Profit / Loss Brought Forward 9,311.49 7,118.38 5,013.45 3,664.02 2,623.33
Total Profit / Loss available 12,612.59 10,724.37 7,881.35 5,950.47 4,417.05
for Appropriations
APPROPRIATIONS
Transfer To / From Statutory 825.27 901.50 716.97 571.61 448.43
Reserve
Transfer To / From Capital 39.53 7.62 45.54 13.21 12.27
Reserve
Transfer To / From Investment 115.12 0.00 0.00 0.00 37.16
Reserve
Transfer To / From Revenue -17.22 0.00 0.00 0.00 0.00
And Other Reserves
Dividend and Dividend Tax 0.00 71.52 0.00 0.00 0.00
for The 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 11,106.94 9,311.49 7,118.38 5,013.45 3,664.02

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

27
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

28
 CASH FLOW STATEMENT

CASH FLOW (Cr.) Mar 19 Mar 19 Mar 18 Mar 18 Mar 17

12 12 12 12 12
MONTHS MONTHS MONTHS MONTHS MONTHS

Net Profit/Loss Before 0.00 4,980.57 5,480.67 5,480.67 4,359.69

Extraordinary Items And Tax
Net CashFlow From Operating 0.00 -6,388.95 - - 11,569.30
Activities 20,700.44 20,700.44
Net Cash Used In Investing 0.00 -637.94 -219.55 -219.55 -273.64
Activities
Net Cash Used From Financing 0.00 8,589.65 15,505.11 15,505.11 -2,768.25
Activities
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 0.00 13,215.88 18,628.25 18,628.25 10,111.87
of Year
Cash And Cash Equivalents End Of 0.00 14,783.40 13,215.88 13,215.88 18,628.25
Year

29
 INDUSIND BANK KEY FINANCIAL RATIO

KEY FINANCIAL RATIO Mar Mar '18 Mar '17 Mar '16 Mar '15
IN (Cr.) '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 437.20 390.94 338.65 290.79 193.40
Revaluations
Return on Assets Including 442.60 396.97 344.91 297.19 200.78
Revaluations
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 3.24 3.33 3.43 3.33 3.17

Funds

30
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 11.19 11.03 11.69 11.98 12.38

Employed(%)
Interest Expended / Capital 5.38 4.90 5.25 5.69 6.42
Employed(%)
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 0.18 0.18 0.34 0.18 --
Composition
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 1.26 1.39 1.37 1.35 1.31

Post 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

31
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

COMMENTS :

 The Earning per share (EPS) of the company has decreased to Rs.54.9 in 2019, whereas it
was Rs39.68. for FY 2015-16, and in FY 2017 it was Rs.48.06.It was the highest in the FY
2018 which was Rs.60.19.
 The Net Profit Margin of the company has experienced a slight increase it was 20.86 in the
FY 2018 and has now increased to 14.82 for FY 2019.It was at the peak in the FY 2017
which was 19.00 and in the FY 2015-2016 it was at its lowest in the FY 2016 which was
19.74 and for FY 2015 was 18.50.
 The sales for the company have decreased to a certain point for FY 2017 to Rs.18,577.16
whereas it was Rs.22,030.85 for FY 2018. In the year 2019 it was the highest with
Rs.22,907.87. and it was lower for FY 2015 with Rs.12,095.84.
 The Return on Net Worth for FY 2019 was 12.52% which has decline as compare to 2018
stated as 15.36%.On viewing between FY 2015-17 it was highest for 2015 with17.57%then
2017 -14.15% and lastly 2016 with 13.21%.

32
3.4 AUDITOR 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

33
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

34
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.

35
3.5 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.

36
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

37
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.

38
  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

39
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. Shankar 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)

40
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.

41
 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.

42
 3.6. 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.

1. 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.

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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

2. CURRENT ACCOUNTS

44
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

45
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

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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.

3. 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

47
 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.

4. 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).

5. 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.

48
• 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.

6. 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).

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• 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

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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

7. 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.

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• Cheque Deposits.

• Remittances.

• Cash to Master.

• Trade Services.

• Forex Services Branch Locator.

8. 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.

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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.

9.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

53
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

10.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.

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.

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4. CHAPTER

4.1 SWOT ANALYSIS

SWOT Analysis is a powerful technique for understanding your Strengths and Weaknesses, and for
looking at the Opportunities and Threats you face. Used in a business context, it helps you carve a
sustainable niche in your market. Used in a personal context, it helps you develop your career in a
way that takes best advantage of your talents, abilities and opportunities.

SWOT ANALAYSIS OF INDUSIND BANK

STRENGTH

1. Right strategy for the right products.

2. Superior customer service vs. competitors.

3. Great Brand Image

4. Products have required accreditations.

5. High degree of customer satisfaction.

6. Good place to work

7. Lower response time with efficient and effective service.

8. Dedicated workforce aiming at making a long-term career in the field.

WEAKNESSES

1. Some gaps in range for certain sectors.

2. Customer service staff needs training.

3. Processes and systems, etc

4. Management cover insufficient.

5. Sectoral growth is constrained by low unemployment levels and competition for staff

55
 OPPORTUNITIES

1. Profit margins will be good.

2. Could extend to overseas broadly.

3. New specialist applications.

4. Could seek better customer deals.

5. Fast-track career development opportunities on an industry-wide basis.

6. An applied research centre to create opportunities for developing techniques to provide added-
value services.

THREATS

1. Legislation could impact.

2. Great risk involved

3. Very high competition prevailing in the industry.

4. Vulnerable to reactive

5. Attack by major competitors

6. Lack of infrastructure in rural areas could constrain investment.

7. High volume/low cost market is intensely competitive.

KEY POINT

SWOT Analysis is a simple but powerful framework for analyzing company’s Strengths and
Weaknesses, and the Opportunities and Threats you face. This helps you to focus on your strengths,
minimize threats, and take the greatest possible advantage of opportunities available to you.

56
4.2. FINDINGS
1. 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.

2. 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.

3. The Education loan was from year 2009-10 (nil) to year 2010-11(15.%), but in the year 20011-
12(85%).

4. 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.

5. 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.

6. Bank provided loan for purchasing two, three or four wheeler vehicle. In these 3 years bank had
landed 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.

7. In staff loan the amount lent for loan purpose and the account holders was at increasing level.

57
4.3 SUGGESTION

1. 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.

2. 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.

3. 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.

4. 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.

5. Before the lending method was quite rigid, security oriented, but now it has become need
based.

6. 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.

7. 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.

8. By educating the illiterate customers through training programmes before granting

loan will attracts more customers towards the bank

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4.4 CONCLUSION

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

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4.5 LIMITATION OF 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.

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

2. Study is confined to INDUSIND Bank only.

3. 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.

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

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

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 QUESTIONNAIRE

1. Type of Bank’s you are holding saving account with

Ans - Private

2. How long have you been banking with them?

Ans - 4 years and above

3. How would you rate your experience with your current bankers?

Ans - Good

4.Do you presently hold a credit Card?

Ans -. Yes

5. Does your bank charges you on the transaction that you do on the credit Card?

Ans -Yes

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6.Which of these factors influenced your decision to open an account with your current
bank?

Ans - Facilities provided by the Bank

7.Would you be interested in opening a saving account with the IndusInd Bank?

Ans -Yes

8.How long have been you using the Credit card?

Ans -1to 2 years

9. Are you satisfied with Bank’s Services?

Ans -. Yes

10.Which area they belong?

Ans - Urban

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63