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and Customer Perception towards these products” Submitted in partial fulfillment for the Award of degree Master of Business Administration
Submitted By: Shivanshu Vinay Krishna MBA Part 2nd year
Decision making is a fundamental part of the research process. Decisions regarding that what you want to do, how you want to do, what tools and techniques must be used for the successful completion of the project. In fact it is the researcher’s efficiency as a decision maker that makes project fruitful for those who concern to the area of study. This project report has been prepared as per the requirement of the syllabus of MBA course structure under which the students are required to undertake project. My job during the making of project was to get an overview of availability of microfinance products provided by Banking sector. And how’s the lower availability of credits in market affect the Economy. The project title is-“Comparison of microfinance products of ICICI & SBI Bank and customer perception about these products.” Different types of micro products are provided by the banks. These micro finance products help to raise the level of economy and standard of poor people. Basically when we are playing with computer in every part of life, I used it in my project not for the ease of mine but for the ease of result explanation to those who will read this project. The project presents the role of microfinance products in life of persons. Now I take this opportunity to present the project report and sincerely hope that it will be as much knowledge enhancing to the readers as it was to use during the fieldwork and the completion of the report.
To acknowledge all the persons who had helped for the fulfillment of the project is not possible for any researcher but in spite of all that it becomes the foremost responsibility of the researcher and also the part of research ethics to acknowledge those who had played a great role for the completion of the project. I express my sincere thanks to my project guide Mrs.Prachi Mam & Ms. Ity patni Mam and all my faculty members, Department of management studies, Poornima Group Of Colleges for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge him for extending their valuable guidance, support of literature, critical review of project and the report and above all the moral support they had provided to me with all stages of this project. I would also like to acknowledge Mr. Amish Duggar for expending his valuable guidance. I would also like to thanks the supportive staff, Department of management studies, Poornima Group Of Colleges, for their help & cooperation throughout the project.
Shivanshu Vinay Krishna
It covers the sample procedure. This topic deals with the customer’s perception towards other Micro finance Products from SBI and ICICI investment. The report begins with the introduction to industry and after that introdustion of company. -4- . types of data used and the data collection method. The second chapter is the introduction to the Micro finance Products which gives a brief idea regarding Micro Finance Products . etc. The fifth chapter deals with the findings. methodology adopted in preparing this report is mentioned. It also contains the objectives and limitations of the project.Executive Summary In the growing global competition. its area of operation. the productivity of any business concern depends upon the behavioural aspect of consumers. The third chapter. suggestion & conclusion part which is very much important after analysis is made. its achievements. its organization structure. The fourth chapter comprehensive coverage of forecasting concepts and techniques which shows the analysis of data through tabulation. computation and graphical representation of data collected from survey. This project report contains 5 different chapters.
INDUSTRY PROFILE -5- . Constructive and healthy suggestions for improvements of the report will be great fully appreciated. In each of the five chapters as described above. every chapter has been scheduled in a manner so as to enable the reader to appreciate the contents easily.As we know that only analysis and conclusion is not the end of a research. so in the sixth chapter the recommendation part is covered which are made after a depth study of the analysis part of thesis. The report is supported by figures and data wherever necessary with a view to assist the reader in developing a clear cut understanding of the topic. I hope this report will be extremely useful for those it is meant.
a Muslim businessman could cash an early form of the cheque in China drawn on sources in Baghdad. establishing branches in many other parts of Europe. During the 3rd century AD. They contain a sum to be paid and then the order "May so and so pay the bearer such and such an amount". Italy. Muslim traders are known to have used the cheque or ṣakk system since the time of Harun al-Rashid (9th century) of the Abbasid Caliphate. George). Banks can be traced back to ancient times even before money when temples were used to store commodities. The Bardi and Peruzzi families dominated banking in 14th century Florence. during the Mongol Empire. set up by Giovanni Medici in 1397. a tradition that was significantly strengthened in the 13th and 14th centuries. The date and name of the issuer are also apparent. Banco di San Giorgio (Bank of St. The earliest known state deposit bank. In the 9th century. Perhaps the most famous Italian bank was the Medici bank. was founded in 1407 at Genoa. Fragments found in the Cairo Geniza indicate that in the 12th century cheques remarkably similar to our own were in use. to the rich cities in the north like Florence.History Banking in the modern sense of the word can be traced to medieval and early Renaissance Italy. only smaller to save costs on the paper. Venice and Genoa. banks in Persia and other territories in the Persian Sassanid Empire issued letters of credit known as Ṣakks. -6- .
In fact. Under English common law. c. and collecting cheques for his customers. who used to make their transactions atop desks covered by green tablecloths. even today in Modern Greek the word Trapeza (Τράπεζα) means both a table and a bank. The coin shows a banker's table (trapeza) laden with coins. 350– 325 BC. modern Trabzon. counter". Benches were used as desks or exchange counters during the Renaissance by Florentine bankers. Definition The definition of a bank varies from country to country. from Old High German banc.Origin of the word The word bank was borrowed in Middle English from Middle French banque. which is specified as: conducting current accounts for his customers paying cheques drawn on him. -7- . a pun on the name of the city. a banker is defined as a person who carries on the business of banking. from Old Italian banca. presented in the British Museum in London. The earliest evidence of money-changing activity is depicted on a silver Greek drachm coin from ancient Hellenic colony Trapezus on the Black Sea. bank "bench.
in many cases the statutory definition closely mirrors the common law one. and not necessarily in general. However. paying and collecting cheques drawn by or paid in by customers. Examples of statutory definitions: "Banking business" means the business of receiving money on current or deposit account. who carry on the business of banking' (Section 2. the making of advances to customers.Banco de Venezuela. most of the definitions are from legislation that has the purposes of entry regulating and supervising banks rather than regulating the actual business of banking. it is actually functional. and includes such other business as the Authority -8- . In most common law jurisdictions there is a Bills of Exchange Act that codifies the law in relation to negotiable instruments. whether incorporated or not. the definition above. and this Act contains a statutory definition of the termbanker: banker includes a body of persons. Although this definition seems circular. including cheques. because it ensures that the legal basis for bank transactions such as cheques does not depend on how the bank is organised or regulated. The business of banking is in many English common law countries not defined by statute but by common law. In other English common law jurisdictions there are statutory definitions of the business of banking orbanking business. When looking at these definitions it is important to keep in mind that they are defining the business of banking for the purposes of the legislation. In particular. Interpretation).
may prescribe for the purposes of this Act. direct credit. savings or other similar account repayable on demand or within less than [3 months] .. Section 2. deposit. 2. (Banking Act (Singapore). direct debit and internet banking. Banking Standard activities Large door to an old bank vault.. Receiving from the general public money on current. "Banking business" means the business of either or both of the following: 1. or with a period of call or notice of less than that period. even if they do not pay and collect cheques. -9- . paying or collecting cheques drawn by or paid in by customers Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale). This has led legal theorists to suggest that the cheque based definition should be broadened to include financial institutions that conduct current accounts for customers and enable customers to pay and be paid by third parties. the cheque has lost its primacy in most banking systems as a payment instrument. Interpretation).
EFTPOS. and money market funds. Non-banks that provide payment services such as remittance companies are not normally considered an adequate substitute for having a bank account. Banks lend money by making advances to customers on current accounts. Banks borrow most funds from households and non-financial businesses. paying cheques drawn by customers on the bank. Banks provide almost all payment services.Banks act as payment agents by conducting checking or current accounts for customers. by makinginstallment loans. but non-bank lenders provide a significant and in many cases adequate substitute for bank loans. Banks also enable customer payments via other payment methods such as telegraphic transfer. and ATM. and collecting cheques deposited to customers' current accounts. Channels Banks offer many different channels to access their banking and other services: ATM is a machine that dispenses cash and sometimes takes deposits without the need for a human bank teller. individuals and governments. and by issuing debt securities such as banknotes and bonds. by accepting term deposits. and by investing in marketable debt securities and other forms of money lending. A branch is a retail location Call center . and lend most funds to households and non-financial businesses. Banks borrow money by accepting funds deposited on current accounts.10 - . cash management trusts and other non-bank financial institutions in many cases provide an adequate substitute to banks for lending savings too. and a bank account is considered indispensable by most businesses. Some ATMs provide additional services.
transaction fees and financial advice. Mail: most banks accept check deposits via mail and use mail to communicate to their customers. by sending out statements Mobile banking is a method of using one's mobile phone to conduct banking transactions Online banking is a term used for performing transactions. or via a videoconference enabled bank branch. profitability from lending activities has been cyclical and dependent on the needs and strengths of loan customers and the stage of the economic cycle. Video banking can be performed via purpose built banking transaction machines (similar to an Automated teller machine). Fees and financial advice constitute a more stable revenue stream and banks . often visiting customers at their homes or businesses Telephone banking is a service which allows its customers to perform transactions over the telephone without speaking to a human Video banking is a term used for performing banking transactions or professional banking consultations via a remote video and audio connection. Historically. The bank profits from the differential between the level of interest it pays for deposits and other sources of funds. The main method is via charging interest on the capital it lends out to customer.g. Business model A bank can generate revenue in a variety of different ways including interest. and the level of interest it charges in its lending activities. mostly for private banking or business banking. over the Internet Relationship Managers. payments etc. This difference is referred to as the spread between the cost of funds and the loan interest rate. e.11 - .
These products include debit cards. Second. and insurance functions allows traditional banks to respond to increasing consumer demands for "onestop shopping" by enabling cross-selling of products (which. the banks hope. it is still common to deal strictly in cash. However. This helps in making profit and facilitates economic development as a whole. investment. which means charging higher interest rates to those customers that are considered to be a higher credit risk and thus increased chance of default on loans. They make it easier for consumers to conveniently make transactions and smooth their consumption over time (in some countries with underdeveloped financial systems. they have expanded the use of risk-based pricing from business lending to consumer lending. Banks make money from card products through interest payments and fees charged to consumers andtransaction fees to companies that accept the cards. they have sought to increase the methods of payment processing available to the general public and business clients. First. will also increase profitability). Third. this includes the Gramm-Leach-Bliley Act. and offers credit products to high risk customers who would otherwise be denied credit. lowers the price of loans to those who have better credit histories. and credit cards.have therefore placed more emphasis on these revenue lines to smooth their financial performance. including carrying suitcases filled with cash to purchase a home). smart cards. prepaid cards.12 - . which allows banks again to merge with investment and insurance houses. . with convenience of easy credit. there is also increased risk that consumers will mismanage their financial resources and accumulate excessive debt. Merging banking. In the past 20 years American banks have taken many measures to ensure that they remain profitable while responding to increasingly changing market conditions. This helps to offset the losses from bad loans.
West Yorkshire. An interior of a branch of National Westminster Bank on Castle Street. now a modern retail bank in Leeds.13 - .Liverpool .Products A former building society.
. commodities.14 - . and how well these risks are managed and understood is a key driver behind profitability. interest rates. Liquidity risk: risk that a given security or asset cannot be traded quickly enough in the market to prevent a loss (or make the required profit). Some of the main risks faced by banks include: Credit risk: risk of loss arising from a borrower who does not make payments as promised. and how much capital a bank is required to hold. derivatives) Term loan Risk and capital Banks face a number of risks in order to conduct their business.Retail Business loan Cheque account Credit card Home loan Insurance advisor Mutual fund Personal loan Savings account Wholesale Capital raising (Equity / Debt / Hybrids) Mezzanine finance Project finance Revolving credit Risk management (FX.
These claims on banks can act as money because they are negotiable or repayable on demand. or by drawing a cheque that the payee may bank or cash. They are effectively transferable by mere delivery. 3. will decrease due to the change in value of the market risk factors.15 - . either an investment portfolio or a trading portfolio. and hence valued at par. be presented with. Credit intermediation – banks borrow and lend back-to-back on their own account as middle men. in the form of banknotes and current accounts subject to cheque or payment at the customer's order. Banks in the economy Economic functions The economic functions of banks include: 1. It also enables the offsetting of payment flows between geographical areas. Issue of money. reducing the cost of settlement between them. Netting and settlement of payments – banks act as both collection and paying agents for customers. This enables banks to economise on reserves held for settlement of payments. . present. 2. which sets a framework on how banks and depository institutions must handle their capital. since inward and outward payments offset each other. and pay payment instruments. The categorization of assets and capital is highly standardized so that it can be risk weighted (see riskweighted asset). in the case of banknotes. Operational risk: risk arising from execution of a company's business functions. Market risk: risk that the value of a portfolio. The capital requirement is a bank regulation. participating in interbank clearing and settlement systems to collect.
Prominent examples include the bank run that occurred during the Great Depression. 5. if the bank gets into difficulty and pledges assets as security.4.16 - . Banking crises have developed many times throughout history. However. wholesale cash markets and securities markets). With a stronger credit quality than most other borrowers.g. the Japanese banking crisis during the 1990s. and raising replacement funding as needed from various sources (e. the U. but provide more long term loans. accepting deposits and issuing banknotes) and redemptions (e. These include liquidity risk (where many depositors may request withdrawals in excess of available funds). The improvement comes from diversification of the bank's assets and capital which provides a buffer to absorb losses without defaulting on its obligations. In other words. withdrawals and redemptions of banknotes). banks can do this by aggregating issues (e. Bank crisis Banks are susceptible to many forms of risk which have triggered occasional systemic crises. but are high quality borrowers. if rising interest rates force it to pay relatively more on its deposits than it receives on its loans). and interest rate risk (the possibility that the bank will become unprofitable.g. when one or more risks have materialized for a banking sector as a whole. credit risk (the chance that those who owe money to the bank will not repay it). and the subprime mortgage crisis in the 2000s. they borrow short and lend long. investing in marketable securities that can be readily converted to cash if needed. Savings and Loan crisis in the 1980s and early 1990s.S. this puts the note holders and depositors in an economically subordinated position. Maturity transformation – banks borrow more on demand debt and short term debt. Credit quality improvement – banks lend money to ordinary commercial and personal borrowers (ordinary credit quality).g. maintaining reserves of cash. banknotes and deposits are generally unsecured. . to raise the funding it needs to continue to operate.
by itself. Regulation Currently in most jurisdictions commercial banks are regulated by government entities and require a special bank licence to operate. China's top 4 banks have in excess of 67.000 branches in the UK. down from 61% in the previous year. France. Fee revenue generated by global investment banking totalled $66. The United States has the most banks in the world in terms of institutions (7. In 2004.000 branches—more than double the 15. EU banks held the largest share of the total. and Italy each had more than 30. Asian banks' share increased from 12% to 14% during the year. resulting in a large number of small to medium-sized institutions in its banking system.000). Germany.8% in the 2008/2009 financial year to a record $96.Size of global banking industry Assets of the largest 1. This is an indicator of the geography and regulatory structure of the USA. is generally not included in the definition. CCB:13000+. ABC:24000+) with an additional 140 smaller banks with an undetermined number of branches. . even if they are not repayable to the customer's order—although money lending.4 trillion while profits declined by 85% to $115bn. BOC:12000+.000 banks in the world grew by 6.3bn in 2009. Usually the definition of the business of banking for the purposes of regulation is extended to include acceptance of deposits. 56% in 2008/2009. As of Nov 2009.000 branches. Growth in assets in adverse market conditions was largely a result of recapitalisation.000 branches (ICBC:18000+.17 - . Japan had 129 banks and 12.085 at the end of 2008) and possibly branches (82. while the share of US banks increased from 11% to 13%. up 12% on the previous year.
the extent that the customer is indebted to the bank. e.g. there is a public duty to disclose. or the law demands it. . a cheque drawn by the customer. when the account is overdrawn. the UK government's central bank. The bank agrees to pay the customer's cheques up to the amount The bank may not pay from the customer's account without a mandate The bank agrees to promptly collect the cheques deposited to the standing to the credit of the customer's account. the bank owes the balance to the customer. However. The bank account balance is the financial position between the bank and the customer: when the account is in credit. and to credit the proceeds to the customer's account. from the customer. 3. since each The bank has a lien on cheques deposited to the customer's account. customer's account as the customer's agent. The bank has a right to combine the customer's accounts. and some commercial banks (such as theBank of Scotland) issue their own banknotes in addition to those issued by the Bank of England. 4. being either a publicly or privately governed central bank. plus any agreed overdraft limit. 2. 5.18 - . the customer owes the balance to the bank. 6. the regulator is typically also a participant in the market. The law implies rights and obligations into this relationship as follows: 1. the Financial Services Authority licences banks. for example. In the UK. 7.Unlike most other regulated industries. Banking law is based on a contractual analysis of the relationship between the bank (defined above) and the customer—defined as any entity for which the bank agrees to conduct an account. account—unless the customer consents. in some countries this is not the case. the bank's interests require it. to The bank must not disclose details of transactions through the customer's account is just an aspect of the same credit relationship. Central banks also typically have a monopoly on the business of issuing banknotes.
The requirements for the issue of a bank licence vary between jurisdictions but typically include: 1. days. business banking. dealing directly with individuals and small businesses. Approval of the bank's business plan as being sufficiently prudent and or senior officers plausible. Minimum capital Minimum capital ratio 'Fit and Proper' requirements for the bank's controllers. 3. may be partly or wholly exempt from bank licence requirements.8. The bank must not close a customer's account without reasonable notice. such as building societies and credit unions. directors. owners. Some types of financial institution. The statutes and regulations in force within a particular jurisdiction may also modify the above terms and/or create new rights. and therefore regulated under separate rules. obligations or limitations relevant to the bank-customer relationship. 4.19 - . 2. since cheques are outstanding in the ordinary course of business for several These implied contractual terms may be modified by express agreement between the customer and the bank. providing services to mid-market . Types of banks Banks' activities can be divided into retail banking.
some are owned by government. directed at large business entities. Salt Lake City 1908 . corporate banking. and investment banking. Types of retail banks National Bank of the Republic. or are non-profit organizations. private banking. However.business. private enterprises. providing wealth management services to high net worth individuals and families.20 - . Most banks are profit-making. relating to activities on the financial markets.
21 - . Since the two no longer have to be under separate ownership.S.ATM Al-Rajhi Bank National Copper Bank. . Congress required that banks only engage in banking activities. whereas investment banks were limited to capital market activities. some use the term "commercial bank" to refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses. Salt Lake City 1911 Commercial bank: the term used for a normal bank to distinguish it from an investment bank. After the Great Depression. the U.
. European savings banks have kept their focus on retail banking: payments. membership is restricted to employees of a particular company. Nowadays. Community banks: locally operated financial institutions that empower employees to make local decisions to serve their customers and the partners. however. Many offshore banks are essentially private banks. Building societies and Landesbanks: institutions that conduct retail banking. residents of a defined neighborhood. Typically. members of a certain labor union or religious organizations.22 - . savings banks took their roots in the 19th or sometimes even in the 18th century. Historically a minimum of USD 1 million was required to open an account. Apart from this retail focus. over the last years many private banks have lowered their entry hurdles to USD 250. Private banks: banks that manage the assets of high net worth individuals. savings banks were created on public initiative. credits and insurances for individuals or small and medium-sized enterprises. providing local and regional outreach—and by their socially responsible approach to business and society. Credit unions: not-for-profit cooperatives owned by the depositors and often offering rates more favorable than for-profit banks.000 for private investors. in others. Savings bank: in Europe. In some countries. Offshore banks: banks located in jurisdictions with low taxation and regulation. savings products. Postal savings banks: savings banks associated with national postal systems. they also differ from commercial banks by their broadly decentralised distribution network. Community development banks: regulated banks that provide financial services and credit to under-served markets or populations. Their original objective was to provide easily accessible savings products to all strata of the population. Ethical banks: banks that prioritize the transparency of all operations and make only what they consider to be socially-responsible investments. and their immediate families. socially committed individuals created foundations to put in place the necessary infrastructure.
refers to banks which provide capital to firms in the form of shares rather than loans. however. Types of investment banks Investment banks "underwrite" (guarantee the sale of) stock and bond issues. engage in several of these activities. The modern definition. These big banks are very diversified groups that. Merchant banks were traditionally banks which engaged in trade finance. Both combined Universal banks. among other services. Other types of banks Central banks are normally government-owned and charged with quasi- regulatory responsibilities. a portmanteau wordcombining "banque or bank" and "assurance". make markets. such as supervising commercial banks. signifying that both banking and insurance are provided by the same corporate entity. or controlling the cash interest rate. more commonly known as financial services companies. trade for their own accounts. Unlike venture capital firms. and advise corporations on capital market activities such as mergers and acquisitions. they tend not to invest in new companies. conceived and implemented wholly with networked computers. also distribute insurance— hence the term bancassurance. .23 - . A Direct or Internet-Only bank is a banking operation without any physical bank branches. They generally provide liquidity to the banking system and act as the lender of last resortin event of a crisis.
. Islamic banks adhere to the concepts of Islamic law. This form of banking revolves around several well-established principles based on Islamic canons. the bank earns profit (markup) and fees on the financing facilities that it extends to customers. a concept that is forbidden in Islam. All banking activities must avoid interest.24 - . Instead.
Investment and Insurance Services. Credit Cards. and the processes followed are in compliance with the local regulations and the Bank’s corporate policy. The Indian banking market is growing at an astonishing rate. banks also offer financial services.25 - . and technological innovations are all contributing to this growth. Safe deposit lockers Custodian services. which no other financial institution can offer. middle class.Banking Sector Banking in a traditional sense is the business of accepting deposits of money from public for the purpose of lending and investment. which include: Issuing demand draft & traveler’s cheque. An expanding economy.Banking Products The business of banking is highly regulated since banks deal with money offered to them by the public and ensuring the safety of this public money is one of the prime responsibilities of any bank. That is why banks are expected to be prudent in their leading and investment activities. In addition. Every bank has a compliance department. which is responsible to ensure that all the services offered by the bank. bill of exchange. . with Assets expected to reach US$1 trillion by 2010. Other Pra. Debit Cards Collection of cheques. These deposits can have a distinct feature can be withdrawn by cheques.
The Indian banking Industry is in the middle of an IT revolution. focusing on the expansion of retail and rural banking. Lending is risk taking. In correlation with the growth of the economy. The depositor of banks is also assured of safety of their money by deploying some percentage of deposit in statutory reserves like SLR & CLR. rising income levels. regulation. which has resulted in innovative methods of offering new banking products and services. However.26 - . It represent an important channel of collecting small saving from the households and ending it to the corporate sector.The country’s middle class accounts for over 320 million people. banks do mot finance any speculative activity. 1881 Bank lend money either for productive purposes to individual. Players are becoming increasingly customer centric in their approach. of for buying house property. Corporate etc. firms. increased standard of living. and affordability of banking products are promising factors for continued expansion. . 1949 Foreign Exchange Management Act. Banking System Banking system is an integral sub-system of the financial system. Banks are now realizing the importance of being a big player and are beginning to focus their attention on mergers and acquisitions to take advantage of economies of scale and/or comply with Basel II The major regulations and act govern the banking business are: Banking Regulation Act. cars and other consumer durables and for investment purposes to individuals and the others.1999 Indian Contract Act Negotiable Instruments Act.
They are further classified as back: Central co-operative banks and primary credit societies Commercial Banks 2. 1965. The must satisfy the RBI than its affairs are mot conducted in a manner detrimental to the interests of its depositors.000. Non-Schedule Banks These are banks. which are mot included in the second schedule of the Banking Regulations Act. It means they do mot satisfy the conditions laid down by that schedule.The Indian Banking system has the Reserve Bank of India (RBI) as the apex body for all matters relating to the banking system. Classification of Banks 1. These are further classified as follow: State co-operative Banks Commercial Banks Banks are further sub-divided as:- . 00.27 - . Schedule Banks Must have paid-up capital and reserve of mot less than Rs. 50.
These are further classified into. State Bank of India and its Subsidiaries: This group comprises of the State Bank of India (SBI) and its seven subsidiaries viz. State Bank of Travancore. Regional Rural Banks: The RBI established these in the year 1975 of Banking Commission. State Bank of Bikaner & jaipur State Bank of Indore.1. Indian Banks: These banks are companies registered in India under companies act. 1956. State Bank of Patiala. Old private Sector Banks: . It was Established to operate exclusively in rural areas to provide credit and other facilities to small and marginal armers.28 - . Other Nationalized Banks: This group consists of private sector bank that were national.. agricultural alboras. C. D. B. A. State Bank of Hyderabad. artisans and small entrepreneurs. their place of origin is in India. The Government of India Nationalized 14 private banks in 1969 and another 6 in the year 1980.
are in the process of shedding their flab in terms of excessive manpower. New Private Sector Banks: These banks were started as profit oriented companies after the RBI opened the banking sector to the private sector. 3. On the one hand. while on the other hand the private sector banks are consolidating themselves through mergers and acquisitions. falling revenues from traditional sources. PSBs.This group consists of Banks that were established by the privy states. lack of modern technology and a massive workforce while the new private sector banks are forging ahead and rewriting the traditional banking business model by way of their sheer innovation and service. E. Current Scenario: The industry is currently in a transition phase. community organization or by a group of professionals for the cause of economic betterment in their area of operations. Foreign Banks: There are banks that were registered outside India and had origiented in a foreign country.29 - . excessive non Performing Assets (NPAs) and excessive governmental equity. Initially their branches slowly speard throughout the national as they grew. which currently account for more than 78 percent of total banking industry assets are saddled with NPAs (a mind-boggling Rs 830 billion in 2000). the PSBs. these banks are monthly technology driven and betterment in their branches slowly spread throughout the nation as they grew. . which are the mainstay of the Indian Banking System.
Automatic Teller Machines (ATMs) and combined various other services and integrated them into the mainstream banking arena. phone banking. while the PSBs are still grappling with disgruntled employees in the aftermath of successful VRS schemes. HDFC Bank’s merger with Times Bank. Private sector Banks have pioneered internet banking. debit cards. . ICICI Bank’s acquisition of ITC Classic. great size and access to low cost deposits. For instance. Therefore one of the means for them to combat the PSBs has been through the merger and acquisition (M& A) route. anywhere banking. the industry has witnessed several such instances.30 - . Anagram Finance and Bank of Madurai. and mobile banking.The PSBs are of course currently working out challenging strategies even as 20 percent of their massive employee strength has dwindled in the wake of the successful Voluntary Retirement Schemes (VRS) schemes. Over the last two years. The private players however cannot match the PSB’s great reach.
The description along with a list of scheduled commercial banks is given on this page. The last but not the least explains about the scheduled and unscheduled banks in India. HSBC. Reserve Bank of India (RBI).INDIAN BANKING INDUSTRY The banking section will navigate through all the aspects of the Banking System in India. the past has been well explained under three different heads namely: • • • History of Banking in India Nationalization of Banks in India Scheduled Commercial Banks in India The first deals with the history part since the dawn of banking system in India. the Indian Banks Association (IBA) and top 20 banks like IDBI. in the introduction part of the entire banking cosmos. ICICI. Government took major step in the 1969 to put the banking sector into systems and it nationalized 14 private banks in the mentioned year. ABN AMRO.31 - . However. has been well defined under three separate heads with one page dedicated to each bank. This has been elaborated in Nationalization Banks in India. It will discuss upon the matters with the birth of the banking concept in the country to new players adding their names in the industry in coming few years. etc. Section 42 (6) (a) of RBI Act 1934 lays down the condition of scheduled commercial banks. . The banker of all banks.
the Governor and four Deputy Governors. 1934 (II of 1934) provides the statutory basis of the functioning of the Bank. The Act. Local Boards consist of five members each Central Government appointed for a term of four years to represent territorial and economic interests and the interests of co-operative and indigenous banks. ten nominated Directors by the Government to give representation to important elements in the economic life of the country. Kolkata. The Reserve Bank of India Act. 2. The Government held shares of nominal value of Rs.20. 1935. The share capital was divided into shares of Rs.CENTRAL BANK OF INDIA RESERVE BANK OF INDIA (RBI): The central bank of the country is the Reserve Bank of India (RBI). The Bank was constituted for the need of following: • • • To regulate the issue of banknotes To maintain reserves with a view to securing monetary stability and To operate the credit and currency system of the country to its advantage.32 - . Chennai and New Delhi. one Government official from the Ministry of Finance.000. and four nominated Directors by the Central Government to represent the four local Boards with the headquarters at Mumbai. It was established in April 1935 with a share capital of Rs. . Reserve Bank of India was nationalised in the year 1949. 100 each fully paid which was entirely owned by private shareholders in the begining. The general superintendence and direction of the Bank is entrusted to Central Board of Directors of 20 members. 5 crores on the basis of the recommendations of the Hilton Young Commission. 1934 was commenced on April 1.
Functions of Reserve Bank of India The Reserve Bank of India Act of 1934 entrust all the important functions of a central bank the Reserve Bank of India. Since 1957. The system as it exists today is known as the minimum reserve system. the assets of the Issue Department were to consist of not less than two-fifths of gold coin. 115 crores should be in gold. gold bullion or sterling securities provided the amount of gold was not less than Rs. The distribution of one rupee notes and coins and small coins all over the country is undertaken by the Reserve Bank as agent of the Government. to keep the cash balances as deposits free of interest. eligible bills of exchange and promissory notes payable in India. of which at least Rs. The Reserve Bank has a separate Issue Department which is entrusted with the issue of currency notes. Banker to Government The second important function of the Reserve Bank of India is to act as Government banker. the Reserve Bank of India is required to maintain gold and foreign exchange reserves of Ra. The assets and liabilities of the Issue Department are kept separate from those of the Banking Department. Government of India rupee securities. Due to the exigencies of the Second World War and the post-was period. Originally. via. these provisions were considerably modified. The Reserve Bank is agent of Central Government and of all State Governments in India excepting that of Jammu and Kashmir. 200 crores. to receive and to make payments on behalf of the Government and to carry out their exchange remittances and other banking operations. The Reserve Bank has the obligation to transact Government business. agent and adviser. The remaining three-fifths of the assets might be held in rupee coins. 40 crores in value. the Bank has the sole right to issue bank notes of all denominations.33 - . Bank of Issue Under Section 22 of the Reserve Bank of India Act. The Reserve .
it has the power to influence the volume of credit created by banks in India. It acts as adviser to the Government on all monetary and banking matters. It makes loans and advances to the States and local authorities. Since commercial banks can always expect the Reserve Bank of India to come to their help in times of banking crisis the Reserve Bank becomes not only the banker's bank but also the lender of the last resort.both the Union and the States to float new loans and to manage public debt.34 - .Bank of India helps the Government . Every bank has to get a licence from the Reserve Bank of India to do banking business within India. The scheduled banks can borrow from the Reserve Bank of India on the basis of eligible securities or get financial accommodation in times of need or stringency by rediscounting bills of exchange. selective controls of credit are increasingly being used by the Reserve Bank. It can do so through changing the Bank rate or through open market operations. The minimum cash requirements can be changed by the Reserve Bank of India.e. Controller of Credit The Reserve Bank of India is the controller of credit i. every scheduled bank was required to maintain with the Reserve Bank a cash balance equivalent to 5% of its demand liabilites and 2 per cent of its time liabilities in India. the licence can be cancelled by the Reserve Bank of . the distinction between demand and time liabilities was abolished and banks have been asked to keep cash reserves equal to 3 per cent of their aggregate deposit liabilities. According to the Banking Regulation Act of 1949. According to the provisions of the Banking Companies Act of 1949. By an amendment of 1962. The Bank makes ways and means advances to the Governments for 90 days. Bankers' Bank and Lender of the Last Resort The Reserve Bank of India acts as the bankers' bank. Since 1956. The Reserve Bank of India is armed with many more powers to control the Indian money market. the Reserve Bank of India can ask any particular bank or the whole banking system not to lend to particular groups or persons on the basis of certain types of securities.
certain stipulated conditions are not fulfilled.000. inspection and calling for information. Each scheduled bank must send a weekly return to the Reserve Bank showing. According to the Reserve Bank of India Act of 1934. The rate of exchange fixed was Re. though there were periods of extreme pressure in favour of or against . Custodian of Foreign Reserves The Reserve Bank of India has the responsibility to maintain the official rate of exchange. the Bank was required to buy and sell at fixed rates any amount of sterling in lots of not less than Rs. 10. (c) It controls the banking system through the system of licensing. has the following powers: (a) It holds the cash reserves of all the scheduled banks. (b) It controls the credit operations of banks through quantitative and qualitative controls. Every bank will have to get the permission of the Reserve Bank before it can open a new branch. therefore. Since 1935 the Bank was able to maintain the exchange rate fixed at lsh. in detail.35 - . As supereme banking authority in the country. The Reserve Bank has also the power to inspect the accounts of any commercial bank. This power of the Bank to call for information is also intended to give it effective control of the credit system.6d. (d) It acts as the lender of the last resort by providing rediscount facilities to scheduled banks. 6d. the Reserve Bank of India. 1 = sh. its assets and liabilities.
the Reserve bank has certain non-monetary functions of the nature of supervision of banks and promotion of sound banking in India. The supervisory functions of the RBI have helped a great deal in improving the standard of banking in India to develop on sound lines and to improve the methods of their operation. and the Banking Regulation Act. the RBI has the responsibility of administering the exchange controls of the country. Supervisory functions In addition to its traditional central banking functions. which. liquidity of their assets. and liquidation. The Reserve Bank was asked to promote banking .the rupee. The Reserve Bank Act. were regarded as outside the normal scope of central banking. After India became a member of the International Monetary Fund in 1946. the range of the Reserve Bank's functions has steadily widened. relating to licensing and establishments. The Bank now performs a varietyof developmental and promotional functions.M.F. The vast sterling balances were acquired and managed by the Bank.36 - . amalgamation. management and methods of working. Besides maintaining the rate of exchange of the rupee. the Reserve Bank has to act as the custodian of India's reserve of international currencies. The RBI is authorised to carry out periodical inspections of the banks and to call for returns and necessary information from them. at one time. Promotional functions With economic growth assuming a new urgency since Independence. branch expansion. The nationalisation of 14 major Indian scheduled banks in July 1969 has imposed new responsibilities on the RBI for directing the growth of banking and credit policies towards more rapid development of the economy and realisation of certain desired social objectives. reconstruction. 1949 have given the RBI wide powers of supervision and control over commercial and co-operative banks. 1934. Further. the Reserve Bank has the responsibility of maintaining fixed exchange rates with all other member countries of the I.
control of bank credit. control of foreign exchange operations. management and methods of working.. branch expansion. the Reserve Bank of India set up the Agricultural Credit Department to provide agricultural credit. the Industrial Development Bank of India also in 1964. i. liquidity of their assets.e. Accordingly. the Agricultural Refinance Corporation of India in 1963 and the Industrial Reconstruction Corporation of India in 1972.habit.37 - . it set up the Deposit Insurance Corporation in 1962. inspection.these powers relate to licencing of banks. amalgamation. banker to the Government and to the money market. Monetary functions of the RBI are significant as they control and regulate the volume of money and credit in the country. however. As far back as 1935. the Unit Trust of India in 1964. Equally important. The promotion of sound banking in India is an important goal of the RBI. reconstruction and . The Bank has developed the co-operative credit movement to encourage saving. under the Banking Regulation Act of 1949 . Classification of RBIs functions The monetary functions also known as the central banking functions of the RBI are related to control and regulation of money and credit. The supervisory function of the RBI may be regarded as a non-monetary function (though many consider this a monetary function). But only since 1951 the Bank's role in this field has become extremely important. are the non-monetary functions of the RBI in the context of India's economic backwardness. and to provide industrial finance as well as agricultural finance. the Reserve Bank has helped in the setting up of the IFCI and the SFC. to eliminate moneylenders from the villages and to route its short term credit to agriculture. The RBI has set up the Agricultural Refinance and Development Corporation to provide long-term finance to farmers. the RBI has been given wide and drastic powers. extend banking facilities to rural and semi-urban areas. issue of currency. These institutions were set up directly or indirectly by the Reserve Bank to promote saving habit and to mobilise savings. and establish and promote new specialised financing agencies.
The RBI's powers of supervision have now been extended to non-banking financial intermediaries. the working of banks has greatly improved. Since independence. Commercial banks have developed into financially and operationally sound and viable units.38 - . the RBI has followed the promotional functions vigorously and has been responsible for strong financial support to industrial and agricultural development in the country. .liquidation. particularly after its nationalisation 1949. Under the RBI's supervision and inspection.
Financial and Banking Sector Reforms: The last decade witnessed the maturity of India's financial markets. . Competition among financial intermediaries gradually helped the interest rates to decline. Financial Markets In the last decade. they started making debt in the market. Deregulation added to it. The real interest rate was maintained. With the openings in the insurance sector for these institutions. The important achievements in the following fields is discussed under serparate heads: Financial markets Regulators The banking system Non-banking finance companies The capital market Mutual funds Overall approach to reforms Deregulation of banking system Capital market developments Consolidation imperative Now let us discuss each segment seperately. The borrowers did not pay high price while depositors had incentives to save. Since 1991.39 - . Private Sector Institutions played an important role. They grew rapidly in commercial banking and asset management business. every governments of India took major steps in reforming the financial sector of the country. It was something between the nominal rate of interest and the expected rate of inflation.
The RBI has also been granting licences to industrial houses. Securities and Exchange Board of India (SEBI) and the Insurance Regulatory and Development Authority (IRDA) became important institutions. The Reserve Bank of India (RBI) has become more independant.40 - . the onus is on the Government to encourage the PSBs to be run on professional lines. Development finance institutions . The Government accepted the important role of regulators. Opinions are also there that there should be a superregulator for the financial services sector instead of multiplicity of regulators. retail trade. in order to achieve an efficient banking system.Regulators The Finance Ministry continuously formulated major policies in the field of financial sector of the country. Shares of the leading PSBs are already listed on the stock exchanges. The banking system Almost 80% of the business are still controlled by Public Sector Banks (PSBs). small business and agricultural finance. Hence. Many banks are successfully running in the retail and consumer segments but are yet to deliver services to industrial finance. The PSBs will play an important role in the industry due to its number of branches and foreign banks facing the constrait of limited number of branches. PSBs are still dominating the commercial banking system. The RBI has given licences to new private sector banks as part of the liberalisation process.
The RBI conducts its sales of dated securities and treasury bills through its open market operations (OMO) window.edged market occupies . Now they have to approach the capital market for debt and equity funds. The DFHI is the principal agency for developing a secondary market for money market instruments and Government of India treasury bills. Primary dealers bid for these securities and also trade in them. the money market in India was narrow and circumscribed by tight regulations over interest rates and participants. The RBI has introduced a liquidity adjustment facility (LAF) in which liquidity is injected through reverse repo auctions and liquidity is sucked out through repo auctions. Until recently. On account of the substantial issue of government debt. The move to universal banking has started. strengthening of existing instruments and setting up of the Discount and Finance House of India (DFHI). the gilt. Several measures have been initiated and include new money market instruments. Convertibility clause no longer obligatory for assistance to corporates sanctioned by term-lending institutions.FIs's access to SLR funds reduced. has been raised to Rs. DFIs such as IDBI and ICICI have entered other segments of financial services such as commercial banking. the requirement of minimum net owned funds. Non-banking finance companies In the case of new NBFCs seeking registration with the RBI. The secondary market was underdeveloped and lacked liquidity.2 crores. asset management and insurance through separate ventures.41 - . Capital adequacy norms extended to financial institutions.
With the issuance of SEBI guidelines.70.up. Expectations are that India will be an attractive emerging market with tremendous potential. Long-term debt market: The development of a long-term debt market is crucial to the financing of infrastructure. The biggest shock to the mutual fund industry during recent times was the insecurity generated in the minds of investors regarding the US 64 scheme. Unfortunately. 1996 and amendments thereto. but its share is going down. which started operations in June 1994 has a mandate to develop the secondary market in government securities. However. After bringing some order to the equity market. only an estimated two lakh persons actively trade in stocks. The Unit Trust of India remains easily the biggest mutual fund controlling a corpus of nearly Rs.42 - .000 crores. during recent times the stock markets have been constrained by some unsavoury developments. Stamp duty is being withdrawn at the time of dematerialisation of debt instruments in order to encourage paperless trading. With the growth in the securities markets and tax . The capital market The number of shareholders in India is estimated at 25 million. both Indian and foreign players. There has been a dramatic improvement in the country's stock market trading infrastructure during the last few years.an important position in the financial set. The Securities Trading Corporation of India (STCI). the industry had a framework for the establishment of many more players. the SEBI has now decided to concentrate on the development of the debt market. Mutual funds The mutual funds industry is now regulated under the SEBI (Mutual Funds) Regulations. which has led to retail investors deserting the stock markets.
advantages granted for investment in mutual fund units. with participation restricted to 26 per cent of equity. The entry of foreign players has assisted in the introduction of international practices and systems. Technology developments have improved customer service. in order to improve the low per capita insurance coverage. mutual funds started becoming popular. an active corporate debt market and a developed derivatives market). Overall approach to reforms The last ten years have seen major improvements in the working of various financial market participants. setting new standards of customer service. Foreign companies can only enter joint ventures with Indian companies. The new players will need to bring in innovative products as well as fresh ideas on marketing and distribution. Some gaps however remain (for example: lack of an interbank interest rate benchmark. the cumulative effect of the developments since 1991 has been quite encouraging. It is too early to conclude whether the erstwhile public sector monopolies will successfully be able to face up to the competition posed by the new players. Good regulation will.43 - . The foreign owned AMCs are the ones which are now setting the pace for the industry. The insurance industry is the latest to be thrown open to competition from the private sector including foreign players. not a big bang one. but it can be expected that the customer will gain from improved service. An indication of the strength of the reformed Indian financial system can be seen from the way India was not affected by the Southeast Asian crisis. On the whole. improving disclosure standards and experimenting with new types of distribution. . The government and the regulatory authorities have followed a step-by-step approach. of course. be essential. They are introducing new products.
Interest rates on the deposits and lending sides almost entirely were deregulated. which is often not the case in India. RBI guidelines issued for risk management systems in banks encompassing credit. market and operational risks. Derivative products . substantial capital were provided by the Government to PSBs. PSBs were encouraged to approach the public for raising resources. frauds cannot be totally prevented. Banks asked to set up asset liability management (ALM) systems. the political and legal structures hve to ensure that borrowers repay on time the loans they have taken. Some tough decisions still need to be taken. provisioning for delinquent loans and for capital adequacy. The phenomenon of rich industrialists and bankrupt companies continues. financial stability cannot be ensured. financial liberalisation alone will not ensure stable economic growth. Further. Bank lending norms liberalised and a loan system to ensure better control over credit introduced. Recovery of debts due to banks and the Financial Institutions Act. 1993 was passed. In the case of financial institutions.44 - . and special recovery tribunals set up to facilitate quicker recovery of loan arrears. punishment has to follow crime. The fate of the Fiscal Responsibility Bill remains unknown and high fiscal deficits continue.However. asset classification. even with the best of regulation. Without fiscal control. Deregulation of banking system Prudential norms were introduced for income recognition. Government pre-emption of banks' resources through statutory liquidity ratio (SLR) and cash reserve ratio (CRR) brought down in steps. In order to reach the stipulated capital adequacy norms. However. A credit information bureau being established to identify bad risks. New private sector banks allowed to promote and encourage competition.
office of the Controller of Capital Issues were abolished and the initial share pricing were decontrolled. SEBI reconstituted governing boards of the stock exchanges. Companies were required to disclose all material facts and specific risk factors associated with their projects while making public issues. clearing and settlement facilities was established.45 - . Indian companies were permitted to access international capital markets through euro issues. . the capital market regulator was established in 1992. underwriting by the issuer were made optional. The practice of making preferential allotment of shares at prices unrelated to the prevailing market prices stopped and fresh guidelines were issued by SEBI. To reduce the cost of issue. Dematerialisation of stocks encouraged paperless trading. SEBI. subject to conditions. repealed. introduced capital adequacy norms for brokers. Several local stock exchanges changed over from floor based trading to screen based trading. The National Stock Exchange (NSE). Private mutual funds permitted The Depositories Act had given a legal framework for the establishment of depositories to record ownership deals in book entry form.such as forward rate agreements (FRAs) and interest rate swaps (IRSs) introduced. 1947. and made rules for making client or broker relationship more transparent which included separation of client and broker accounts. Capital market developments The Capital Issues (Control) Act. Foreign institutional investors (FIIs) were allowed to invest in Indian capital markets after registration with the SEBI. with nationwide stock trading and electronic display.
SEBI issued detailed employee stock option scheme and employee stock purchase scheme for listed companies. 100 were abolished. which at one time were much sought after jobs. A number of them can be merged. In the case of insurance.Buy back of shares allowed The SEBI started insisting on greater corporate disclosures. SEBI empowered to register and regulate venture capital funds. Standard denomination for equity shares of Rs. In India the banks are in huge quantity. Companies given the freedom to issue dematerialised shares in any denomination. First. but the situation is different now. Derivatives trading starts with index options and futures.46 - . The merger of Punjab National Bank and New Bank of India was a difficult one. Consolidation imperative Another aspect of the financial sector reforms in India is the consolidation of existing institutions which is especially applicable to the commercial banks. The SEBI (Credit Rating Agencies) Regulations. the Life Insurance Corporation of India is a behemoth. No one expected so many employees to take voluntary retirement from PSBs. 10 and Rs. A system of rolling settlements introduced. Private sector banks will be self consolidated while co-operative and rural banks will be encouraged for consolidation. 1999 issued for regulating new credit rating agencies as well as introducing a code of conduct for all credit rating agencies operating in India. while the four public sector general insurance companies will probably move towards . and anyway play only a niche role. Steps were taken to improve corporate governance based on the report of a committee. there is no need for 27 PSBs with branches all over India.
even though facing difficult times. . The LIC has bought into Corporation Bank in order to spread its insurance distribution network. However. It is not possible to play the role of the Oracle of Delphi when a vast nation like India is involved. Both banks and insurance companies have started entering the asset management business. and most other public sector players are already exiting the mutual fund business. even though it has not always been a success till date. The pensions market is expected to open up fresh opportunities for insurance companies and mutual funds. The UTI is yet again a big institution. the new buzzword internationally. ICICI. Where mergers may not be possible. as there is a great deal of synergy among these businesses. Various forms of bancassurance are being introduced. a few trends are evident. HDFC and SBI are already trying to offer various services to the customer under one umbrella. We finally come to convergence in the financial sector.47 - . Hi-tech and the need to meet increasing consumer needs is encouraging convergence. but the business being comparatively new for the private players. This phenomenon is expected to grow rapidly in the coming years. alliances between organisations may be effective. with the RBI having already come out with detailed guidelines for entry of banks into insurance. In India organisations such as IDBI. and the coming decade should be as interesting as the last one.consolidation with a bit of nudging. it will take some time. There are a number of small mutual fund players in the private sector.
Major Banks in India ABN-AMRO Bank Abu Dhabi Commercial Bank American Express Bank Andhra Bank Allahabad Bank Axis Bank (Earlier UTI Bank) Bank of Baroda Bank of India Bank of Maharastra Bank of Punjab Bank of Rajasthan Bank of Ceylon BNP Paribas Bank Canara Bank Catholic Syrian Bank Central Bank of India Centurion Bank China Trust Commercial Bank Citi Bank City Union Bank Corporation Bank Dena Bank Deutsche Bank Development Credit Bank Dhanalakshmi Bank Federal Bank HDFC Bank HSBC ICICI Bank IDBI Bank Indian Bank Indian Overseas Bank IndusInd Bank ING Vysya Bank Jammu & Kashmir Bank JPMorgan Chase Bank Karnataka Bank Karur Vysya Bank Laxmi Vilas Bank Oriental Bank of Commerce Punjab National Bank Punjab & Sind Bank Scotia Bank South Indian Bank Standard Chartered Bank State Bank of India (SBI) State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Saurastra State Bank of Travancore Syndicate Bank Taib Bank UCO Bank Union Bank of India United Bank of India United Western Bank Vijaya Bank Kotak Mahindra Bank Yes Bank .48 - .
Custodial Services. Their evolution was.49 - . Mobile Banking. the three presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernise India's economy. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). structured products etc – each one of these initiatives having a huge potential for growth. market capitalization and profits is today going through a momentous phase of Change and Transformation – the two hundred year old Public sector behemoth is today stirring out of its Public Sector legacy and moving with an agility to give the Private and Foreign Banks a run for their money. The State Bank of India. A unique institution. it was the first joint-stock bank of British India sponsored by the Government of Bengal. shaped by ideas culled from similar developments in Europe and England. General Insurance. . The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. Point of Sale Merchant Acquisition. however. The bank is entering into many new businesses with strategic tie ups – Pension Funds. and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of the Indian economy to the economy of Europe and the global economic framework. Private Equity.Introduction of SBI The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Advisory Services. Primarily Anglo-Indian creations. number of branches. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921. the country’s oldest Bank and a premier in terms of balance sheet size.
000 villages in the next two years. SBI Life and SBI Cards . It is in the process of raising capital for its growth and also consolidating its various holdings. SBICAP Securities. It presently has 82 foreign offices in 32 countries across the globe. the Bank is also attempting to change old mindsets.forming a formidable group in the Indian Banking scenario. SBI DFHI.The Bank is forging ahead with cutting edge technology and innovative new banking models. It has also 7 Subsidiaries in India – SBI Capital Markets. The bank is also looking at opportunities to grow in size in India as well as Internationally. attitudes and take all employees together on this exciting road to Transformation. The Bank is also in the process of providing complete payment solution to its clientele with its over 8500 ATMs. In a recently concluded mass internal communication programme termed ‘Parivartan’ the . on whole sale banking capabilities to provide India’s growing mid / large Corporate with a complete array of products and services. to expand its Rural Banking base. the Bank is the largest provider of infrastructure debt and the largest arranger of external commercial borrowings in the country. looking at the vast untapped potential in the hinterland and proposes to cover 100. today it offers the largest banking network to the Indian customer. Throughout all this change. SBI Factors. Today.50 - . It is consolidating its global treasury operations and entering into structured products and derivative instruments. etc. With four national level Apex Training Colleges and 54 learning Centres spread all over the country the Bank is continuously engaged in skill enhancement of its employees. It is the only Indian bank to feature in the Fortune 500 list. and other electronic channels such as Internet banking. With about 8500 of its own 10000 branches and another 5100 branches of its Associate Banks already networked. mobile banking. It is also focusing at the top end of the market. The Bank is changing outdated front and back end processes to modern customer friendly processes to help improve the total customer experience. debit cards. Some of the training programes are attended by bankers from banks in other countries.
.51 - . inherited from the Imperial Bank. the commercial banks of the country. because as much as a quarter of the resources of the Indian banking system were controlled directly by the State. Subsequently. in order to serve the economy as a whole and rural sector in particular. Until the Plan. The Act enabled the State Bank of India to make the eight former State-associated banks as its subsidiaries. sub offices and three Local Head Offices. An important turning point in the history of State Bank of India is the launch of the first Five Year Plan of independent India. the former state-owned or state-associate banks. Moreover. The State Bank of India emerged as a pacesetter. an Act was passed in the Parliament of India in May 1955.000 employees in a period of 100 days using about 400 Trainers. confined their services to the urban sector. to drive home the message of Change and inclusiveness. with its operations carried out by the 480 offices comprising branches. As a result. in 1951. This resulted in making the State Bank of India more powerful. The All India Rural Credit Survey Committee proposed the take over of the Imperial Bank of India. in particular. Later on. The Plan aimed at serving the Indian economy in general and the rural sector of the country.Bank rolled out over 3300 two day workshops across the country and covered over 130. the State Bank of India (SBI) was established on 1 July 1955. the All India Rural Credit Survey Committee recommended the formation of a state-partnered and statesponsored bank. the State Bank of India catered to the needs of the customers. they were not equipped to respond to the growing needs of the economic revival taking shape in the rural areas of the country. including the Imperial Bank of India. The bank served the heterogeneous financial needs of the planned economic development. by banking purposefully. the State Bank of India (Subsidiary Banks) Act was passed in 1959. and integrating with it. The workshops fired the imagination of the employees with some other banks in India as well as other Public Sector Organizations seeking to emulate the Program. Therefore. Instead of serving as mere repositories of the community's savings and lending to creditworthy parties.
In order to cater to different functions. The Bank also facilitates the free transaction of money at the ATMs of State Bank Group.Well networked to cater to its customers throughout India. located at major cities throughout India. Through the establishments.Branches The corporate center of SBI is located in Mumbai. factoring services. etc. which includes the ATMs of State Bank of India as well as the Associate Banks – State Bank of Bikaner & Jaipur. ATM Services SBI provides easy access to money to its customers through more than 8500 ATMs in India. State Bank of Hyderabad. Subsidiaries The State Bank Group includes a network of eight banking subsidiaries and several non-banking subsidiaries.52 - . State Bank of Indore. fund management. apart from the corporate center. It is recorded that SBI has about 10000 branches. You may also transact money through SBI Commercial and International Bank Ltd by using the State Bank ATM-cum-Debit (Cash Plus) card. The eight banking subsidiaries are: • • • State Bank of Bikaner and Jaipur (SBBJ) State Bank of Hyderabad (SBH) State Bank of India (SBI) . credit cards and insurance. primary dealership in government securities. it offers various services including merchant banking services. there are several other establishments in and outside Mumbai. The bank boasts of having as many as 14 local head offices and 57 Zonal Offices.
and in some cases conducts retail operations. Foreign Branches: SBI has branches in these countries: Australia Bahrain Bangladesh Belgium Canada Dubai France Germany Hong Kong Israel Japan . The focus of these offices is India-related business.• • • • • State Bank of Indore (SBIR) State Bank of Mysore (SBM) State Bank of Patiala (SBP) State Bank of Saurashtra (SBS) State Bank of Travancore (SBT) Foreign Offices: State Bank of India is present in 32 countries.53 - . where it has 84 offices serving the international needs of the bank's foreign customers.
• People's Republic of China Republic of Maldives Singapore South Africa Sri Lanka Sultanate of Oman The Bahamas U. With more than 9400 branches and a further 4000+ associate bank branches. U. urban and semi-urban branches under its Core Banking System (CBS). SBI has these wholly owned subsidiaries and joint ventures: • Nepal State Bank Limited SBI Mauritius Indian Ocean International Bank (Mauritius) SBI Canada SBI California Growth: State Bank of India has often acted as guarantor to the Indian Government.A Subsidiaries and Joint Ventures: In addition to the foreign branches above. the SBI has extensive coverage.54 - . Following its arch-rival ICICI Bank.K. most notably during Chandra Shekhar's tenure as Prime Minister of India.S. The bank . with over 4500 branches being incorporated so far. State Bank of India has electronically networked most of its metropolitan.
has the largest ATM network in the country having more than 5600 ATMs .1.2 Group companies: SBI Capital Markets Ltd SBI Mutual Fund (A Trust) SBI Factors and Commercial Services Ltd SBI DFHI Ltd SBI Cards and Payment Services Pvt Ltd SBI Life Insurance Co. Revenues 15.3. Fortune Global 500 Ranking – 2007: SBI debuted in the Fortune Global 500 at 498 in 2006. Ltd . the bank has sought to expand its overseas operations by buying foreign banks. According to the Forbes 2000 listing it tops all Indian companies. Profits 1. Assets 187. It is the only Indian bank to feature in the top 100 world banks in the Fortune Global 500 rating and various other rankings. Stockholders' Equity 9.547.786.119.4.Banc assurance (Life Insurance) SBI Funds Management Pvt Ltd SBI Canada IT Initiatives: . The State Bank of India has had steady growth over its history.55 - . In 2007 it moved up to 495. though the Harshad Mehta scam in 1992 marred its image. As per fortune 500-2007 following are the data for SBI in $ million.407. In recent years.
According to PM Network (December 2006. As of December 2006.000 by the end of 2007 raising the total number to 8. Corporate Details: State Bank of India is actively involved since 1973 in non-profit activity called Community Services Banking. 2007 SBI has 7236 ATMs.000 domestic and 70 foreign offices and branches. Internet banking and internal e-mail. No.000 branches have been covered. As of September 20. State Bank of India owns and operates the following subsidiaries and Joint Ventures – State Bank Of India Credit Card State Bank Of India Online State Bank Of India USA State Bank Of India Services State Bank Of India Mutual Funds State Bank Of India Branch State Bank Of India NRI Account Foreign Subsidiaries: State bank of India International (Mauritius) Ltd.56 - . The new infrastructure serves as the bank's backbone. ATM network. 12). such as the IP telephone network. 20. carrying all applications. . State Bank of India launched a project in 2002 to network more than 14. The first and the second phases of the project have already been completed and the third phase is still in progress. State Bank of India is India's largest bank amongst all public and private sector banks operating in India. Vol. over 10. The new infrastructure has enabled the bank to further grow its ATM network with plans to add another 3.600.
banking Subsidiaries SBI Capital Markets Ltd (SBICAP) SBI Funds Management Pvt Ltd (SBI FUNDS) SBI DFHI Ltd (SBI DFHI) SBI Factors and Commercial Services Pvt Ltd (SBI FACTORS) SBI Cards & Payments Services Pvt.57 - . State Bank of India (Canada). Lagos. Ltd. (SBICPSL) Joint ventures: SBI Life Insurance Company Ltd (SBI LIFE). State Bank of India has 52 foreign offices in 34 countries across the globe. The State Bank of India 14 Local Head Offices and 57 Zonal Offices are located at important cities spread throughout the country. INMB Bank Ltd. The main activities of are into - . State Bank of India (California). Activities: State Bank of India administrative structure is well equipped to oversee the large network of branches in India and abroad. The Corporate Accounts Group is a Strategic Business Unit of the Bank set up exclusively to fulfill the specialized banking needs of top corporate in the country. Non.
RBIEFT. Agriculture. MICR Codes. Safe Deposit Lockers. International. State Bank of India offers the following services to its customers Domestic Treasury. Domestic Treasury.58 - . SME. Gift Cheques. E-Pay. SBI Vishwa Yatra Foreign Travel Card. NRI Services. Internet Banking. E-Rail. Broking Services Revised Service Charge. Foreign Inward Remittances. It caters not only to the employees of State Bank of India but also other banks/establishments in India and abroad. Performance: . Moreover. Personal Banking. Corporate. ATM Services. State Bank of India has Colleges/Institutes/Training Centers that are the seats of learning and research and development.
83 crore for the financial year 2006 -07.SBI Bank India had Total Income of Rs 68376. State Bank of India has posted Net Income to the tune of Rs 6364.59 - .38 crore or the financial year 2006 -07. Products And Services Personal Banking • • • • • SBI Term Deposits SBI Loan For Pensioners SBI Recurring Deposits Loan Against Mortgage Of Property SBI Housing Loan Loan Against Shares & Debentures SBI Car Loan Rent Plus Scheme SBI Educational Loan Medi-Plus Scheme Other Services • • • • • • • • • • • • • • • Agriculture/Rural Banking NRI Services ATM Services Demat Services Corporate Banking Internet Banking Mobile Banking International Banking Safe Deposit Locker RBIEFT E-Pay E-Rail SBI Vishwa Yatra Foreign Travel Card Broking Services Gift Cheques .
Grameen EQUITY Shakti. patronised by over 80% of the top corporate houses of the country.Swadhan (Group): SBI Life Dhanaraksha Plus: SBI Life . P. O. the State Bank of India is undertaking. Network 18 recognized this momentous transformation journey. Mumbai.The CNN IBN. one of the world’s leading fund management companies that manages over US$ 500 Billion worldwide. and has awarded the prestigious Indian of the Year – Business. Health Products: ALL TYPES SBI Mutual Fund is India’s largest bank sponsored mutual fund and has an enviable track record in judicious investments and consistent wealth creation. Mr. 2008 – SBI Life Insurance has achieved a unique distinction of ranking third globally in terms of number of Million Dollar Round Table (MDRT) . Bhatt in January 2008 INVESTMENT MUTUAL FUND EQUITY SCHEMES DABT SCHEMES BALANCED SCHEMES LIFE INSURENCE EXCHANGE TREADED SCHEMES Unit Linked Products: Pension Products:Pure Protection Products:Protection cum Savings Products:Money Back Scheme Products:SBI Life . to its Chairman.60 - . August 26. The institution has grown immensely since its inception and today it is India's largest bank. The fund traces its lineage to SBI . SBI Mutual Fund is a joint venture between the State Bank of India and Société Générale Asset Management.India’s largest banking enterprise.SARAL ULIP Protection Plans: Specialized Term Insurance:Retirement Solutions: SBI Life .
. Mr. P. O. reviewing and approving the annual budgets and borrowing limits and fixing exposure limits. Among these.159 595 536 343 125 124 HDFC Standard Life India Max New York Life India ICICI Pru Birla Sunlife India India Management The bank has 14 directors on the Board and is responsible for the management of the Bank’s business.486 2. 124 qualified for Court of Table (COTs) and 20 for Top of Table (TOTs). 2008 RANK COMPANY NAME COUNTRY 1 2 3 Samsung Life Ins New York Life Korea USA MEMBERS 2.61 - .411 1. The board in addition to monitoring corporate performance also carries out functions such as approving the business plan.662 SBI Life Insurance India Northwestern 4 5 11 14 22 68 69 Mutual AIA-Hong Kong LIC of India USA Hong Kong India 1. Bhatt is the Chairman of the bank. 1.662 have qualified for the prestigious MDRT membership.167 1.000 SBI Life Insurance Advisors. Of the 40.members.
Bhatt has more than 30 years of experience in the Indian banking industry and is seen as futuristic leader in his approach towards technology and customer service.The five-year term of Mr. Bhatt will expire in March 2011. T S Bhattacharya is the Managing Director of the bank and known for his vast experience in the banking industry.Deep Roots in SBI: Micro finance is not new to State Bank of India.A noble mission to reach those families who were hitherto having no access to the credit by any formal financial institution and. Mr. We believe that the appointment of Mr. Bhatt would be a key to SBI’s future growth momentum. Recently. and new heads for rural banking and for corporate development and new business banking have been appointed. Mr. The positions of CFO and the head of treasury have been segregated.A Mission: SBI has taken up SHG movement as a mission. were depending on informal sources and moneylenders. Mr. Prior to this appointment. Bhatt was Managing Director at State Bank of Travancore. Micro Credit / Micro Finance : State Bank of India SHG Movement .Bank's association with non-government organizations (NGOs) or voluntary agencies in extending financial help can be traced as far back as 1976 well before NABARD introduced SHG-Bank Credit Linkage Programme as a pilot project in 1992. . Mr. the senior management of the bank has been broadened considerably. Micro Finance . The management’s thrust on growth of the bank in terms of network and size would also ensure encouraging prospects in time to come. therefore.62 - . Bhatt has had the best of foreign exposure in SBI.
43. SBI with a share of approximately 47% of total SHGs financed by Commercial Banks is far ahead of others.89 cr.Leader in SHG .481 12. 1311.31 cr. of SHGs maintaining Savings a/c in the Bank Amount in Savings a/c 261.07.568 5.95 cr.50.553 1.Since then the Bank has made a steady progress in financing SHGs.30. 411. 872. 1459. 2262.82 cr.43 cr.79.84 cr. in Rs.33.36.40.067 Savings Bank account of SHGs out of which more than 5. 2.69. SBI's branches spread throughout the length and breadth of the country have opened 6.07 cr.067 SBI .Bank Credit Linkage SBI is maintaining its position as a leader among Commercial Banks in credit linking of SHGs and is a prime driver for the movement. March .674 75.08.466 3.752 48. 614. 462. 269.Bank Credit Linkage Programme: SBI has actively participated in SHG-Bank Credit Linkage programme since its inception in 1992 as a pilot project of NABARD.63 - .45 cr.05 March .Steady Growth in SHG .77 cr.Majority of these SHGs are women SHGs. Innovations & Initiatives Bank has successfully initiated various measures toward widening its SHG network.36 cr. The yearwise cumulative position of SHGs-Bank Linkage programme for the last 4 years is as under: Year SHGs linked (financed) No.As at the end of March 2006.660 21.) 348.68.04 March .11. (Amt.842 324.To list a few examples: .74. 434.06 1.87 cr.41 lac SHGs have been provided with credit facilities thus benefiting more than 75 lac poor people. of beneficiaries Amount disbursed Amount outstanding No.03 March .As on March 2006.666 3.691 5.08 cr.396 6.
two RUDSETI type training institutes have been established at Gulbarga and Gadag in Karnataka State.Response to this product is very encouraging. especially designed for SHG members.Special feature of the scheme is that entire premium amount paid by the member is refunded after maturity.(i) Sensitisation of staff Bank's aim is to sensitise the entire staff from Manager to Messenger working in rural and semi-urban branches towards the programme.Shakti: SBI Life. our insurance subsidiary. (iii) Close liaison with NGOs Operating functionaries at branch level and region level are in close contact with NGOs in their area to take the movement ahead. (ii) Special training programmes in SHGs are being conducted at 54 training centres of the Bank in the country apart from State Bank Institute of Rural Development. to impart training in self employment to youth free of cost. . Hyderabad. regular meetings are arranged with the NGOs and their support is solicited. (viii) Rural training institutes: To help the rural youth to stand on their feet.e. (v) Lending to NGOs / Federations of SHGs: Lending to credible NGOs / Federations of SHGs on selective basis for on lending to SHGs is being encouraged. is the first to introduce a life insurance scheme. i.64 - .Under the scheme formulated keeping the socio economic conditions of villages insight. (vii) SBI Life . (vi) Sahayog Niwas: SBI has launched its Housing Loan product â€˜SAHAYOG NIWAS meant for SHG members. 10 years..For the purpose. (iv) SHG cells: Special SHG cells have been opened at major branches. housing loans are given to the SHG members without any mortgage of house / land.
(ix) SBI staff as SHPI: The main role of formation and nurturing of SHGs have been played by NGOs who, apart from their fundamental role of social service, also aim to make the poor economically self sufficient.But in SBI, our committed work force is not lagging behind and a number of committed staff members have worked hard to form and nurture SHGs on their own. (x) Appreciation by Government: A number of our branches / Circles have also received commendation and appreciation from various State Governments for doing excellent job in SHG-Bank Credit Linkage programme. NABARD felicitated 15 SHGs at a function organized in New Delhi on 13th September 2005.The function was presided over by the Honâ€™ble Union Finance Minister.Out of total 15 SHGs felicitated, 4 were financed by our branches, one each from Orissa, Jharkhand, Madhya Pradesh and Uttaranchal. (xi) Samanwita: Bank has sponsored and financially supported NGO SAMANWITA in collaboration with Government of Orissa for supplementing the process of socio economic upliftment of the tribals and the downtrodden in the poorest and most backward Kandhamal district of Orissa State where 52% of the population is that of tribals.Core activities performed by Samanwita is empowerment of people through promotion of SHGs, especially women SHGs and development of human resources. (xii) SHPI status: State Bank of India is the first Commercial Bank to which NABARD has recently given SHPI status. Future Plans SBI has set for itself an ambitious target of credit linking 1 million SHGs up to March 2008.The Bank has started to leverage our vast SHG network for various services beyond credit delivery.
INTRODUCTION OF ICICI BANK
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ICICI Group offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised group companies, subsidiaries and affiliates in the areas of personal banking, investment banking, life and general insurance, venture capital and asset management. With a strong customer focus, the ICICI Group Companies have maintained and enhanced their leadership position in their respective sectors. ICICI Bank is India's second-largest bank with total assets of Rs. 3,793.01 billion (US$ 75 billion) at March 31, 2009 and profit after tax Rs. 37.58 billion for the year ended March 31, 2009. The Bank has a network of 1,451 branches and about 4,721 ATMs in India and presence in 18 countries.
1955: The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated at the initiative of the World Bank, the Government of India and representatives of Indian industry, with the objective of creating a development financial institution for providing medium-term and long-term project financing to Indian businesses. Mr.A.Ramaswami Mudaliar elected as the first Chairman of ICICI Limited. ICICI emerges as the major source of foreign currency loans to Indian industry. Besides funding from the World Bank and other multi-lateral agencies, ICICI was also among the first Indian companies to raise funds from international markets. 1956: ICICI declared its first dividend of 3.5%
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The first West German loan of DM 5 million from Kredianstalt obtained 1967: ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed 1972: The second entity in India to set up merchant banking services 1977: ICICI sponsored the formation of Housing Development Finance Corporation. Managed its first equity public issue. 1986: ICICI became the first Indian institution to receive ADB Loans. ICICI, along with UTI, set up Credit Rating Information Services of India Limited, India's first professional credit rating agency. ICICI promotes Shipping Credit and Investment Company of India Limited 1993: Promoted TDICI - India's first venture capital company
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car loans. P. Morgan set up 1996: ICICI Asset Management Company set up.68 - . The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with ICICI Bank. house loans and loans for consumer durables.ICICI Securities and Finance Company Limited in joint venture with J. ICICI assigned higher than sovereign rating by Moody's. . ICICI Ltd became the first company in the Indian financial sector to raise GDR 2000: ICICI launched retail finance . : ICICI Bank launched India's first CDO (Collateralised Debt Obligation) Fund named Indian Corporate Collateralised Debt Obligation Fund (ICCDO Fund). ICICI becomes the first Indian Company to list on the NYSE through an issue of American Depositary Shares 2001: ICICI Bank became the first commercial bank from India to list its stock on NYSE. ICICI Bank announces merger with Bank of Madura. 2002: ICICI Ltd merged with ICICI Bank Ltd to create India's second largest bank in terms of assets. ICICI Bank set up.
ICICI Bank's UK subsidiary launched. launched in Mumbai. India's first mobile ATM. 2003: The first Integrated Currency Management Centre launched in Pune. India's first ever "Visa Mini Credit Card". a self-service banking centre inaugurated in Pune. Representative office set up in China. ICICI Bank announced the setting up of its first ever offshore branch in Singapore.69 - . a 43% smaller credit card in dimensions launched. ICICI Bank launched Private Banking. Mumbai. launched. It was the first of its kind in India. ICICI Bank's representative office inaugurated in Dubai. launched in Pune. ATM-on-Wheels. . 1100-seat Call Centre set up in Hyderabad ICICI Bank Home Shoppe. the first-ever permanent aggregation and display of housing projects in the county. The first offshore banking unit (OBU) at Seepz Special Economic Zone."E Lobby".
from Monday to Saturday. training and promoting the micro-finance clients and ICICI Bank would finance the clients directly on the recommendation of the MFI.70 - . ICICI Bank and Visa jointly launched mChq – a revolutionary credit card on the mobile phone. The MFI would undertake the promotional role of identifying. ICICI Bank introduced the concept of floating rate for home loans in India. Temasek Holdings acquired 5. to 8 p.m. 2005: ICICI Bank and CNBC TV 18 announced India's first ever awards recognising the achievements of SMEs.ICICI Bank subsidiary set up in Canada. "Free for Life" credit cards launched wherein annual fees of all ICICI Bank Credit Cards were waived off. . a pioneering initiative to encourage the contribution of Small and Medium Enterprises to the growth of Indian economy. Hardoi. First rural branch and ATM launched in Uttar Pradesh at Delpandarwa.2% stake in ICICI Bank. ICICI Bank opened its 500th branch in India. ICICI Bank introduced partnership model wherein ICICI Bank would forge an alliance with existing micro finance institutions (MFIs). ICICI Bank introduced 8-8 Banking wherein all the branches of the Bank would remain open from 8a. ICICI Bank became the market leader in retail credit in India.m.
Bhoomi puja conducted for a regional hub in Hyderabad. Financial counseling centre Disha launched.8 billion in India.71 - . this became an effective delivery option for ICICI Bank's micro finance institution partners. the United States and Japan. Disha provides free credit counseling. First Indian company to make a simultaneous equity offering of $1. financial planning and debt management services. A lowcost solution. This event is the largest domestic invitation amateur golf event conducted in India. ICICI Bank became the largest retail player in the market to introduce a biometric enabled smart card that allow banking transactions to be conducted on the field. . Indonesia and Malaysia.Private Banking Masters 2005. Representative offices opened in Thailand.'NRI smart save Deposits' – a unique fixed deposit scheme for nonresident Indians. Andhra Pradesh. Acquired Ivestitsionno Kreditny Bank of Russia. a nationwide Golf tournament for high networth clients of the private banking division launched. ICICI Bank's USD 2 billion 3-tranche international bond offering was the largest bond offering by an Indian bank. ICICI Bank became the largest bank in India in terms of its market capitalisation 2007: Introduced a new product .
72 - . commercial vehicles loans. In a first of its kind. ICICI Bank's GBP 350 million international bond offering marked the inaugural deal in the sterling market from an Indian issuer and also the largest deal in the sterling market from Asia. ICICI Bank launched the "Probationary Officer Programme". to help small and medium enterprises start. ICICI Bank became the first private bank in India to offer both floating and fixed rate on car loans.Sangli Bank amalgamated with ICICI Bank. finance and grow their business. ICICI Bank signed a multi-tranche dual currency US$ 1. an online resource centre.The Visa Signature Credit Card. Launched India's first ever jewellery card in association with jewelry major Gitanjali Group. Foundation stone laid for a regional hub in Gandhinagar. ICICI Bank became the first bank in India to launch a premium credit card -. .5 billion syndication loan agreement in Singapore.000 crore (approx $5 billion) from both domestic and international markets through a follow-on public offer. nation wide initiative to attract bright graduate students to pursue a career in banking. Gujarat. ICICI Bank raised Rs 20. Introduced SME Toolkit. construction equipment loans and professional equipment loans.
73 - . a breakthrough innovation in banking where practically all internet banking transactions can now be simply done on mobile phones. 48. ICICI Bank enters Germany. BANK SEVIES . Russia. ICICI Bank launched iMobile.96 billion (equivalent of USD 1. ICICI Bank concluded India's largest ever securitisation transaction of a pool of retail loan assets aggregating to Rs. launches its first branch in New York. opens its first branch in Frankfurt.Launched Bank@home services for all savings and current a/c customers residing in India ICICI Bank Eurasia LLC inaugurated its first branch at St Petersburg.21 billion) in a multitranche issue backed by four different asset categories. 2008: ICICI Bank enters US. It is also the largest deal in Asia (ex-Japan) in 2008 till date and the second largest deal in Asia (ex-Japan & Australia) since the beginning of 2007.
• Personal Banking o o o o Savings & Deposits Loans Cards Wealth management • • Global Private Clients Corporate Banking o o o o o o o o Transaction Banking Treasury Banking Investment Banking Capital Markets Custodial Services Rural & Agri Banking Structured Finance • Business Banking Technology Finance o Current Account o Business o Forex o Trade o Cash Loans Management • NRI Banking o o o o o o Services Money Transfer Bank Accounts Investment Property Solutions Insurance Loans INSURENCE & INVESTMENT • Life Insurance o o Life Insurance Retirement Solutions .74 - .
75 - .o o Health Solutions o o General Insurance Education Solutions Health Insurance Overseas Travel Student Medical Motor Insurance Insurance o Insurance o o • Securities o o o o Home Insurance Corporate Finance Primary Dealership Institutional Equities Retail Equities Our Funds Performance Analyser Systematic Investing Compare Schemes • Mutual Fund o o o o • Private Equity Practice INVESTOR RELATIONS .
It collects funds from surplus units and lends the same to those units whose income exceeds its expenditure.76 - . Annual Reports Investor Presentations Quarterly Financial Results Share price and ownership SEC Filings Credit Ratings Investor FAQs NATURE OF BUSINESS: ICICI is a financial intermediary which brings together the savers and borrowers in the economic system. treasury and investment banking and other products. fee and commission-based products and services. In the pursuit of these objectives the ICICI Bank Limited (ICICI Bank) offers products and services in the areas of commercial banking to retail and corporate customers (both domestic and international).It is ICICI Group's belief that all stakeholders should have access to complete information regarding its position to enable them to accurately assess its future potential. distribution of third-party investment products and other fee-based products and services. deposits and . such as insurance and asset management. as well as issuance of unsecured redeemable bonds. ICICI Group regularly publishes information on its operations and various initiatives for its investors. ICICI Bank provides a range of commercial banking and project finance products and services. Its commercial banking operations for retail customers consist of retail lending and deposits. including loan products.
1949 ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). This we hope to achieve by: Understanding the needs of customers and offering them superior products and service Leveraging technology to service customers quickly. To be the preferred brand for total financial and banking solutions for both corporates and individuals To be the dominant Life.foreign exchange and derivatives products to corporations. is the joint stock company which is incorporated under the Companies Act. VISION To be the leading provider of financial services in India and a major global bank. ONWNERSHIP TYPE JOINT STOCK COMPANY: ICICI BANK LIMITED.77 - . Health and Pensions player built on trust by world-class people and service. efficiently and conveniently . growth-oriented middle market companies and small and medium enterprises. 1956 and licensed as a bank under the Banking Regulation Act.
Integrity. Given the quality of our parentage and the commitment of our team. MISSION We will leverage our people. technology. maintain high standards of governance and ethics. building transparency in all our dealings The success of the company will be founded in its unflinching commitment to 5 core values -. the qualities of our people and the way we work. create value for our stakeholders Provide the social facilities to the society . speed and financial capital to: Be the banker of first choice for our customers by delivering high quality. worldclass products and services.78 - . Ownership and Passion. Each of the values describe what the company stands for. where we can play a significant role in redefining and reshaping the sector. there are no limits to our growth. We do believe that we are on the threshold of an exciting new opportunity. Customer First. Boundaryless. maintain a healthy financial profile and diversify our earnings across businesses and geographies. play a proactive role in the full realisation of India’s potential. Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders Providing an enabling environment to foster growth and learning for our employees And above all. expand the frontiers of our business globally. contribute positively to the various countries and markets in which we operate.
IN order to build some brand equity by doing social service, ICICI Bank has decided to undertake a MISSION for reducing low birth weight incidence at the village level. Undertaken by ICICI Bank's Social Initiatives Group, the bank has decided to identify effective and scalable strategies for delivering the services required to impact female nutritional status to tackle the incidence of low birth babies. Appointing several partners to work on this project an ICICI Bank official says, ``This is going to be a significant MISSION supported by the bank and the aim to understand whether a suitably trained health worker working with the public health system and the integrated child development scheme can provide quality services to impact low birth incidence at the village level.'' The MISSION is based in Ranchi district in Jharkhand and is being implemented through a partnership between the Department of Health, Government of Jharkhand, Krishi Gram Vokas Kendra(KGVK) and Care, both of whom are NGOs based in Jharkhand and the Child in Need Institute (CINI), an NGO based in West Bengal. Adds the ICICI Bank official, ``ICICI Bank needs to participate in the all round development of the country by focusing on some of its fundamental problems. It seeks to perform this role primarily as a funding agency, through its Social Initiatives Group.'' ICICI Bank's Social Initiative Group's (SIG) mission is ``to identify and support initiatives designed to improve the capacities of the poorest of the poor to participate in the larger economy.'' The group seeks to achieve its mission by supporting initiatives that are costeffective, capable of large-scale replication and have the potential for near and longterm impact. ``ICICI Bank believes in strengthening or supplementing existing systems rather than investing in parallel structures.
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The purpose is also to build long-term relationships with sustainable partners,'', adds the bank official. In the past, ICICI Bank has undertaken projects in the area of elementary education and micro financial services.
ICICI Bank Limited Registered Office: Landmark, Race Course Circle, Vadodara 390 007. Corporate Office: ICICI Bank Towers, Bandra Kurla Complex, Mumbai 400 051.
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An organization structure as an integral part of a system or a group. It has to accept the discipline and regulatory ethics of the system/group. It has also to compete within the group and strive to excel in its performance. An organization structure also operates with in a social, economic and political environment We believe that the structure of an organization needs to be dynamic, constantly evolving and responsive to changes both in the external and internal environments. Our organizational structure is designed to support our business goals, and is flexible while at the same time ensuring effective control and supervision and consistency in standards across business groups.
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and ICICI believes grant money should be limited to the creation of facilitative infrastructure. and that microfinance provides a new. this image has been changing in India in the last few years as commercial banks have been widely entering the sector.000 microfinance clients in 2001.20 billion (US$4. the CEO of one of ICICI Bank's major MFI partners. 9. as banks are looking into MFIs favorably. says Reddy. There is an increasing shift in the microfinance sector from grant-giving to investment in the form of debt or equity. says Nachiket Mor. these clients had never been served by a formal lending institution. ICICI Bank sees an opportunity to make profits in untouched markets. led by ICICI Bank. unlike a few years ago". Spandana. "We need to stop sending government and funding agencies the signal that microfinance is not a commercially viable system". However. "Interest rates have come down from 14% to 10%". and its outstanding portfolio has increased from Rs. As a result of banks entering the game. A few years ago. be interested in serving low-income segments? Simply because it recognizes that poor people are bankable. 0. But why would ICICI. interest rates have also dropped. From 10. "There is no dearth of funds today. And with banks entering the sector. Who would not appreciate the winwin of this situation? Rapid Growth ICICI's microfinance portfolio has been increasing at an impressive speed. says Padmaja Reddy. while improving the lives of poor people.ICICI Banks the Poor in India: Demonstrates That Serving Low-Income Segments Is Profitable The traditional image of microfinance is one of a charitable activity conducted mostly by non-profit organizations and separate from the mainstream financial system. Executive Director of ICICI Bank.98 billion (US$227 million). the sector has changed rapidly.84 - . . ICICI Bank is now lending to 1.5 million) to Rs. the largest private bank in India.2 million clients through its partner microfinance institutions. profitable opportunity.
But how has ICICI Bank been able to achieve such rapid growth in such a short time? This success is due to a series of innovative models and initiatives. While a model of microfinance has emerged in recent years in which a microfinance institution (MFI) borrows from banks and on-lends to clients, few MFIs have been able to grow beyond a certain point. Under this model, MFIs are unable to provide risk capital in large quantities, which limits the advances from banks. In addition, the risk is being entirely borne by the MFI, which limits its risk-taking.
The MFI as Collection Agent
To address these constraints, ICICI Bank initiated a partnership model in 2002 in which the MFI acts as a collection agent instead of a financial intermediary. This model is unique in that it combines debt as mezzanine finance to the MFI. The loans are contracted directly between the bank and the borrower, so that the risk for the MFI is separated from the risk inherent in the portfolio. This model is therefore likely to have very high leveraging capacity, as the MFI has an assured source of funds for expanding and deepening credit. ICICI chose this model because it expands the retail operations of the bank by leveraging comparative advantages of MFIs, while avoiding costs associated with entering the market directly.
Another way to enter into partnership with MFIs is to securitize microfinance portfolios. In 2004, the largest ever securitisation deal in microfinance was signed between ICICI Bank and SHARE Microfin Ltd, a large MFI operating in rural areas of the state of Andra Pradesh. Technical assistance and the collateral deposit of US$325,000 (93% of the guarantee required by ICICI) were supplied by Grameen Foundation USA. Under this agreement, ICICI purchased a part of SHARE's microfinance portfolio against a consideration calculated by computing the Net Present Value of receivables amounting to Rs. 215 million (US$4.9 million) at an agreed discount rate. The interest paid by SHARE is almost 4% less than the rate paid in commercial loans. Partial credit provision was provided by SHARE in the form of a guarantee amounting to 8% of the
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receivables under the portfolio, by way of a lien on fixed deposit. This deal frees up equity capital, allowing SHARE to scale up its lending. On the other hand, it allows ICICI Bank to reach new markets. And by trading this high quality asset in capital markets, the bank can hedge its own risks. Janet MacKinley, chairman of the Income Fund of America and Vice Chair of Grameen Foundation USA's Program Committee welcomes this deal; she says: "I believe it will encourage more of these types of transactions that can play a strategic role in making microfinance more widely available to the world's poorest communities". Another securitisation deal was also signed with Bhartya Samruddhi Finance Limited (BSFL), in which ICICI Bank securitised the receivables of a selected portfolio of microfinance loans by BSFL amounting to Rs 42.1 million (US$ 957,000). Both under the partnership model and under the securitisation deal, the bank provides organizations with financial support at a mezzanine level which enables them to offer credit protection in the microfinance portfolios to a reasonable extent.
Training New Partners
Despite rapid growth, the lack of NGOs and MFIs operating in India remains a constraint. According to ICICI Bank, there is a need for approximately 200 MFIs to cover the country, however there are only 15 large players capable of scale. New players are therefore needed: ICICI believes that new NGOs, entrepreneurs, and corporations who conduct development activities in rural areas can and should become MFIs. ICICI Bank has put in place its Micro Finance Development Team with the objective of identifying and training new partners. The Social Initiative Group of ICICI Bank (SIG) aims to partner with organizations to identify and support entrepreneurs in microfinance.
Working with Venture Capitalists
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Another challenge in scaling-up the microfinance sector is the lack of equity capital. In order to solve this shortage, ICICI Bank is encouraging venture capitalists to start entering the sector. Several venture capital funds in the country have the capability of identifying and mentoring entrepreneurs, including Lok Capital, Aavishkar and Bell Weather. Bell Weather has made three equity commitments for start up, and its committee has decided to increase the size of the fund from US$10 million, to US$25 million. Lok capital mobilizes and directs private capital to fund microfinance activities and to fund long term management and technical support for development of commercially sustainable MFIs. Aavishkar provides micro-equity funding (Rs. 10 lacs to Rs. 50 lacs, approximately US$20,000 to US$100,000) and operational and strategic support to commercially viable companies increasing income in or providing goods and services to rural or semi-urban India. ICICI Bank has come to an agreement with these three venture capitalists under which it will provide take-out financing to the MFI to buy out the venture after a period of three to five years, provided the MFI attains an operational sustainability rating from Micro-Credit Ratings International Ltd (M-CRIL) and Credit Rating Information Services of India Limited (CRISIL).
Microfinance does not only mean microcredit, and ICICI does not limit itself to lending. ICICI's Social Initiative Group, along with the World Bank and ICICI Lombard, the insurance company set up by ICICI and Canada Lombard, have developed India's first index-based insurance product. This insurance policy compensates the insured against the likelihood of diminished agricultural output/yield resulting from a shortfall in the anticipated normal rainfall within the district, subject to a maximum of the sum insured. The insurance policy is linked to a rainfall index.
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One of the main challenges to the growth of the microfinance sector is accessibility. The Indian context, in which 70% of the population lives in rural areas, requires new, inventive channels of delivery. The use of technologies such as kiosks and smart cards will considerably reduce transaction costs while improving access. The ICICI Bank technology team is developing a series of innovative products that can help reduce transaction costs considerably. For example, it is piloting the usage of smart cards with Sewa Bank in Ahmedabad. To maximize the benefits of these innovations, the development of a high quality shared banking technology platform which can be used by MFIs as well as by cooperatives banks and regional rural banks is needed. ICICI is strongly encouraging such an effort to take place. Wipro and Infosys, I-Flex, 3iInfotech, some of the best Indian information technology companies specialized in financial services, and others, are in the process of developing exactly such a platform. At a recent technology workshop at the Institute for Financial Management Research in Chennai, the ICICI Bank Alternate Channels Team presented the benefits of investing in a common technology platform similar to those used in mainstream banking to some of the most promising MFIs. It is hoped that this workshop will unite five to ten MFIs in creating an independent association that will lead these efforts.
The Centre for Microfinance Research
While the sector has been growing rapidly, and while the focus has been largely on growing outreach, there is an urgent need to fill gaps both in practice and understanding in order to maximize the impact of this growth. To fill these gaps, ICICI bank has created the Centre for Microfinance Research (CMFR) at the Institute for Financial Management Research (IFMR) in Chennai. Through research, research-based advocacy, high level training and strategy building, it aims to systematically establish the links between increased access to financial services and the participation of poor people in the larger economy. The CMFR Research Unit supports initiatives aimed at understanding and analyzing the following issues: impact of access to financial services; contract and product designs; constraints to household productivity; combination of microfinance and other
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In order to bring together academics and practitioners. and gaps in knowledge. such as healthcare. health. which in turn impacts household well-being.89 - . Other on-going projects include the impact evaluation of smokeless chulhas on health and productivity in Orissa. international organizations. . and the effect of regulations. costs and profitability of microfinance organizations. as the first randomized evaluation of microcredit. The CMFR Microfinance Strategy Unit will address these issues through a series of workshops which will bring together MFI practitioners and sectoral experts (in energy. it is implementing an impact evaluation of Spandana's microcredit programme in Hyderabad. evidence of credit constraints. In partnership with MicroSave. etc). impact of MFI policies and strategies. A training series on Building Blocks of Banking and Finance will also be conducted. roads. For example. and Yale. infrastructure. a study on the break-up of transaction costs of MFIs and SHGs. government. it will allow estimating the effects of the MFI's programme in an unbiased manner. the CMFR directly helps MFIs in terms of strategy building. and an analysis of Sewa Bank's loans and accounts panel data base in Ahmedabad. In addition to undertaking research. people's behavior and psychology with respect to financial services. aimed at financial institutions both large and small that wish to acquire a comprehensive and detailed set of skills to effect their transformation. economics of micro-enterprises. the CMFR also organizes regular seminars and conducts courses for managers and researchers from NGOs. The CMFR is involved in several studies with researchers from leading universities. there are other missing markets and constraints facing households. water. the CMFR recognizes that while MFIs aim to meet the credit needs of poor households. Harvard. and academics. including MIT. the CMFR Microfinance Strategy Unit will offer advanced financial management training for microfinance practitioners.development interventions. These have implications in terms of the scale and profitability of client enterprises and efficiency of household budget allocation. Finally.
CURRENT SCENARIO SBI profit rises 46% in Q4 on higher other income Kolkata.P.718 crore (Rs 2. 2009. Other income for the quarter under consideration grew by 67 per cent at Rs 4. several questions need to be answered.508 crore on account of sale of investments in the quarter ended March 31. challenges must be addressed in order to make this growth both effective and sustainable. Microfinance needs to become more accessible.90 - . May 9 Riding on higher other income including profits from treasury operations. Mr O.883 crore during the corresponding quarter of last year.The latter will bring to the table knowledge of best practices in their specific areas.742 crore for the fourth quarter ended March 31. While the microfinance sector is growing fast in India. 2009.817 crore). . Is microfinance the solution? ICICI Bank believes it is. more customized and more comprehensive. according to its Chairman. State Bank of India posted a 46 per cent rise in net profit at Rs 2. In order for microfinance to be a useful mechanism for poverty alleviation. and each consultation workshop will result in long-term collaboration between with MFIs for implementing specific pilots. Bhatt. up from Rs 1. The bank made a profit of Rs 1. if growth is properly managed and questions are correctly answered.
Mr Bhatt said.566 crore on account of profit on sale of investments. The bank’s treasury income in 2008-09 increased by 171 per cent to Rs 2. .121 crore.The net profit for the year ended March 31.91 - . The board of directors at a meeting here on Saturday recommended a dividend of 290 per cent or Rs 29 per share (215 per cent) for the year under review.729 crore during the corresponding period last year.5 per cent at Rs 9. 2009 increased by 35. against Rs 6.
627 crore) and term deposits grew by 41. “It was due to the rise in overhead costs due to branch expansion. he said.” Mr Bhatt said explaining the reason for the growth in the bank’s net profit.73.617 crore contributed by commission. treasury was our residual business but this year treasury has registered outstanding growth. Our fee-based income.691 crore (Rs 8.92 - .396 crore (Rs 126.96.36.1990 crore (Rs 5. We are now trying to offer products at par with other multinational banks. Performance The bank’s core fee-based income for the year ended March 2009 grew by 29 per cent to Rs 7. “There has been a robust growth in our advances not only in terms of volumes but also in terms of income.695 crore). Referring to the lower growth in net profit in 2008-09 vis-À-vis 2007-08 when the growth was 48 per cent. “Historically. he maintained.Pillar of growth Treasury would continue to be an important pillar of growth for the bank. also grew by 30 per cent in 2008-09.22. he said. Other income increased by 46 per cent at Rs 12. liquidity overhang and the cost of carrying it and also on account of higher provisioning for salary revisions and for pensions. loan processing fee and account maintenance charges.” A 30 per cent growth in advances also contributed to the growth of net profit.589).” he pointed out. which was earlier growing in single digits. Current Account and Savings Bank Account (CASA) deposits increased by 22 per cent to Rs 2.5 per cent to Rs . Domestic deposits grew by 33 per cent at Rs 6. exchange.
The bank witnessed a two basis point dip in NIM in April 2009. The creditdeposit ratio declined to 66. The net interest margin (NIM) declined to 2. lesser growth and lower yield on advances has put a pressure on our margins. NPAs flat The net non-performing assets remained almost flat at 1.000 crore a day. “The huge growth in deposits.76 per cent (1. particularly in the US and Singapore.” Mr Bhatt observed.774 crore of which Ratnagiri Power alone contributed to Rs 1. the bank was hopeful of either maintaining or registering a slight improvement in its NIM. with the cost of deposits coming down. Advances went up 30 per cent at Rs 5. .78 per cent).81 per cent (14.07 per cent). “International NPAs increased by 955 crore as a result of economic slowdown.944 crore (Rs 2.59 per cent). This has led to a decline in CD ratio. he said.98.651 crore. on the other hand there has been a decline in credit offtake.93 - . “There has been an unprecedented flow of deposits since November 2008 to the tune of Rs 1.63 per cent (72.13 per cent).22.” Mr Bhatt said and added that the bank would be able to manage NPAs at the current level.540 crore (Rs 4.962 crore).” Mr Bhatt said.4.331 crore). Domestic NPAs increased by Rs 1. The share of bulk deposits to total deposits declined to 10.48.22. However.93 per cent (3.
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The selected papers are organized into three categories: the broader context.103 - .Literature Review Dweep Chanana ⋅ January 18. the impact of microcredit. 2010 ⋅ David Roodman called 2009 a “milestone year for microfinance. governments have long known that increasing access to rural and low-income finance was important. Yet. there seems to have been more work done on savings than credit). we present here a short literature review on how microfinance affects the lives of the poor. certainly the literature of microfinance cannot be so new? After all. Simultaneously. . and the impact of microsavings (surprisingly. In order to help get some kind of bearing on the impact of microfinance. Mexico did something similar in 1992.” And it certainly was – providing two separate randomized studies on the impact of microcredit. India instituted a rural bank expansion program in 1977. other studies have also emerged on the broader topic of microfinance.
. as a natural experiment and the 1992 and 1994 National Surveys of Income and Expenditures.FernandoAportelo.BankofMexico December 1999 This paper assesses the impact of increasing financial access on low-income people savings. India’s fifth-largest city. Furthermore. Cynthia Kinnan. had no effect on high income households. India The researchers from the Abdul Latif Jameel Poverty Action Lab (J-PAL) at MIT and the Indian Centre for Micro Finance worked with Spandana to randomize the rollout of its microcredit operations in Hyderabad. Spandana chose 104 areas of the city to expand into eventually. The effect was even higher for the poorest households in the sample: their saving rate increased by more than 7 percentage points in some cases. the expansion. In 2006–-07. Esther Duflo. targeted to low-income people. rejecting some districts as having too many construction workers. MIT Jameel PovertyActionLab. evidence of crowding out of these instruments caused by the expansion is limited. The paper uses an exogenous expansion of a Mexican savings institute.IndianCentreforMicroFinance. Results do not rule out the possibility that a considerable fraction of the increase in households’ savings could have come from new savings. Results show that the expansion increased the average saving rate of affected households by more than 3 to almost 5 percentage points. who come and go and might take Spandana’s money with them. Rachel Glennerster. In the case of informal savings instruments.Spandana October2009 Hyderabad.104 - . Effects on households’ saving rates and on different informal savings instruments are considered. in general. Abhijit Banerjee.
Journal of Entrepreneurial Finance and Business Ventures. and microfinance/microenterprise. initial public offerings. pp. His research includes entrepreneurial finance. 1-26 . They surveyed in “treatment” areas (ones where Spandana worked) and control ones (where it did not yet). Vol. Journal of Small Business Management. Brau* Department of Finance Jim Brau is Assistant Professor of Finance and Goldman Sachs Faculty Fellow at the Marriott School.000 households between August 2007 and April 2008.105 - . 1-26 James C. Researchers followed up by surveying more than 6. 2004. restricting their visits to families that seemed more likely to borrow: ones that had lived in the area at least three years and had at least one working-age woman. pp. The surveyors made sure not to visit an area until Spandana had been there at least a year. Journal of Entrepreneurial Finance and Business Ventures. Brigham Young University. Vol. and Journal of Business Education among others. Journal of Financial Research. 2004. 9. Issue 1. Journal of Business. 9. Issue 1.Spandana started lending in a randomly chosen 52 of the 104. Managerial Finance. He has published in the Journal of Financial Economics. Journal of Entrepreneurial Finance.
and the International Review of Economics and Finance. As the sector expands. Journal of Developmental Entrepreneurship. . so do the challenges faced by practitioners. including Journal of International Development. His articles on microfinance and international development have appeared in a number of peer-reviewed academic journals. Theoretical and empirical studies show that one important solution to some of these challenges is a system for sharing credit information between lending institutions. David Brady Department of Public Policy Microfinance as a tool for economic development has been growing in importance in the past three decades. innovative solutions. but it is critical to explore countries with underdeveloped CIS and consider nontraditional. Experiences with CIS for microfinance reveal trends and lessons about successful models. World Development. December 2005 Valerie Rozycki Advisor: Dr. Woller Department of Public Management Gary Woller is Associate Professor of Public Management at the Marriott School. Gary is co-founder and co-editor of the Journal of Microfinance. Policy Studies Journal.Gary M.106 - . Contemporary Economic Policy. NonProfit and Voluntary Sector Quarterly. Brigham Young University.
Stanford. This approach is based on a partnership between ICICI Bank and selected NGOs/MFIs. USA 94309 Microfinance services (predominantly the disbursement of very small loans to the poorest sectors of society) have expanded rapidly over the past three decades and have much potential to affect grass-roots economic development. When lending institutions lack complete information about the creditworthiness of borrowers. CA.107 - . However. This article explains the model and provides two case study examples. and it is crucial that we share the knowledge gained from these efforts. but the credit (and most of the risk) is directly between ICICI Bank and the SHG or individual clients. without proper information sharing systems in place.Authors: Harper. Malcolm. 30-39(10) Publisher: Practical Action Publishing Linking the formal financial sector with poor microfinance clients seemed impossible even a decade ago. Number 1. Kirsten. either spontaneously or enforced. Volume 17. Increasingly such linkages are emerging. lending decisions are not optimized and the performance of microfinance institutions suffers. according to which the latter takes the responsibility of monitoring and recovering loans from individuals and self-help groups. Several countries have solved this problem with formal systems for sharing credit information. to illustrate this linkage methodology. pp. Valerie Rozycki Stanford University. Current research focuses on country cases . maturing microfinance sectors often operate sub-optimally. One of India's most innovative linkage models is ICICI Bank's recent 'facilitation linkage' with several NGO/MFIs. Marié Source: Small Enterprise Development. March 2006 . PSS and BISWA.
Despite various initiatives taken for the expansion of the commercial bank branch network into the rural and semi-urban areas of the country to promote lending to key disadvantaged and underprivileged economic sectors. is essential for attaining income poverty as prescribed in the Millennium Development Goals (MDGs). saving mobilized etc.and potential . India needs to develop a more inclusive financial market by enhancing direct access to finance for poor communities and small rural businesses. particularly the rural poor. Microfinance has achieved prominence among development strategies because of its scale and continued success. they are among the most profitable financial institutions operating. MFIs continue to expand their reach (in terms of clients served. their socio-economic impact did not match expectations as planned. funds disbursed. Strengthening access to financial services for the rural sector. July 2006 Madhurima Bhattacharyay An outstanding economic growth and a bright future prospect notwithstanding. particularly microfinance. in developing a more inclusive and robust economy.) and in many developing countries. This paper examines the current . This paper which examines rural finance for the poor and its impact on income poverty also analyzes the . by the number and the stage of development of the Microfinance Institutions and the clients they serve. Kofi Annan United Nations secretary-General Micro finance is the provision of financial services to the economically active poor.where such systems have been successful as well as on general analyses of barriers to creating such systems. resiliency to shocks and continued innovation. poverty reduction is still the most daunting challenge for India.in terms of sustainability.the field has grown in both size and sophistication as measured.role of the financial sector.In the last two decades .108 - .
trusts and societies have to register under the Microfinance Development Council. 34 Morduch. 2007 .28 The Indian government has taken a bold step in introducing a new microfinance law to bring microfinance institutions under prudential supervision. The bill will be submitted in Parliament soon for approval. privatization and globalization have transformed the face of service sector in India. expansion of services and wider outreach. However. it analyzes the performance of microfinance institutions (MFIs) in the rural area. and Haley. societies and co-operatives will now be regulated by NABARD. All MFIs. operating in the form of trusts. J. MFIs operating as co-operatives. B. Working Ppaer No. Amlan Ghosh August 9. 1014. service sector has witnessed massive growth in the form of innovative products. Financial services are no exception to his. NY. 2002.) India August 24.K. 2010 The waves of liberalization. New York University. Ambuj Gupta University of Petroleum and Energy Studies Dehradun (U. non-bank finance companies will not come under NABARD. which will be promoted by NABARD. In particular. The Union Cabinet has cleared the bill on 6th February 2007. The present study takes a sneak preview of various financial services developed after economic liberalization in India.109 - . On account of this. with particular emphasis on commercial bank-linked. largely successful Self-Help Group (SHG) programs. Under the provision of the bill. the National Bank for Rural and Agricultural Development (NABARD) will regulate the microfinance sector in India.performance of the rural financial services system in India and outlines trends and patterns in farmers’ access to financial services over the course of the past half-acentury.
To keep the momentum of the growth at present level India needs to serve the financial need of the excluded masses to bring them into the main stream of developmental process. significant foreign portfolio inflows including the largest private equity inflows in Asia.Since the opening up of the economy and reforms in the banking sector in India. Corporate governance norms in India have strengthened rapidly in the past few years. At the same time. In the last few years microfinance has contributed in a big way to financial inclusion and is now attracting venture capital and for-profit companies . This article examines the problems of formal banking in providing credit (micro) to the poor of rural and urban areas in the present era and suggests that the POSB can be used to cater the financial need of rural India where MFIs have very little presence in total demand of finance. Rajesh Chakrabarti Indian School of Business The banking sector has seen major changes with deregulation of interest rates and the emergence of strong domestic private players as well as foreign banks. The banking sector has seen major changes with deregulation of interest rates and the emergence of strong domestic private players as well as foreign banks. however. and a rapidly developing derivatives market. while excellent on paper. India has experienced nothing short of an economic transformation since the liberalization process began in the early 1990's.110 - . there is some evidence of credit constraints for India's SME firms that rely heavily on trade credit. Franklin Allen University of Pennsylvania . Family businesses.Finance Department. there is some evidence of credit constraints for India's SME firms that rely heavily on trade credit. rural finance is in back foot.both domestic and foreign. still dominate the landscape and investor protection. . European Corporate Governance Institute (ECGI) With recent growth rates among large countries second only to China's. appears to be less effective owing to an overburdened legal system and corruption. the Indian financial system has been witnessing an exciting era of transformation. with a soaring stock market. At the same time. In the last few years.
The methodology includes the overall research design.111 - . magazine. sampling procedure & fieldwork done & finally the analysis procedure. The questionnaire has been drafted & presented by the researcher himself. The primary data has been collected with the help of questionnaire as well as personal observation book. The methodology used in the study consistent of sample survey using both primary & secondary data.Research methodology Research methodology is a methodology for collecting all sorts of information & data pertaining to the subject in question. The objective is to examine all the issues involved & conduct situational analysis. Definition of Research .journals have been referred for secondary data.
It disseminates the findings to contribute to generalizeable knowledge. The main steps involved in this phase are as: Sampling Plan: . so it investigates a small sample which can be generalized to a larger population. It is a systematic and a replicable process which identifies and defines problems.The word research is derived from the Latin word meaning to know. The five characteristics of research presented below will be examined in greater detail later are: Systematic problem solving which identifies variables and tests relationships between them. OBJECTIVE OF RESEARCH Research design phase :This phase mainly involve stating the conceptual structure within which research would be conducted.112 - . Empirical. so procedures can be duplicated or understood by others. so others may test the findings by repeating it. so decisions are based on data collected. Logical. Replicable. within specified boundaries. It employs well designed method to collect the data and analyses the results. Reductive.
Sample unit: Under the study the customers are considered the sample unit in Jaipur District. Data Analysis: .113 - . Primary data was collected through Questionnaire.The sample was selected for the study by convenient method. a Simple Random Sampling technique is used. Sampling Technique: To study the Project. and their data was collected. Sample Size: Sample of 50 people was taken into study. Data Collection: Collection of data is done by Secondary Data & through Questionnaire i..e. This type of sampling where each & every item in the population has an equal chance of inclusion in the sample.
The tools that have been used for analyzing data & inference drawing are mainly statistical tools like percentage. ranking. After data collection. Statistical tools used for analysis: Out of the total respondents. etc.114 - . The resultant tables were one dimensional. ideas and opinions related to Advance Product & investment and about SBI & ICICI . Data Interpretation: Interpretation of data is done by using statistical tools like Pie diagrams. According to their responses I analyze the findings and draw certain remarks. the respondents who responded logically were taken into account while going into statistical details & analysis of data. counting sheets & the summary tables were prepared. As per questionnaire and market surveys I have find out different responses from different people. I’m able to analyze customer’s views. . Classification & tabulation of data: The data thus collected were classified according to the categories. two dimensional. Bar graphs. averages. and also using quantitative techniques (by using these techniques) accurate information is obtained.
ICICI Bank. In the area of human relations. has reduced headcount through a voluntary retirement scheme and is cautious about adding headcount. the two are taking divergent paths. 3.FACTS. is setting up regional hubs where its workforce would . FINDINGS & ANALYSIS Facts & Analysis: ADVANTAGES OF ICICI OVER SBI: ICICI is growing at a very fast rate with a total asset of Rs.744.10 billion.115 - . which had over 1 lacks employees. on the other hand. SBI.
.000 branches. Its major stocks are held by government of India. ICICI Bank is also set to outdo SBI is in its international book . SBI have four national level Apex Training Colleges and 54 Learning Centers spread all over the country the Bank is Continuously engaged in skill enhancement of its employees. Some of the training programs are attended by bankers from banks in other countries.000 to its headcount every year. SBI offers flexible tenures of loan repayment. SBI group.000 branches. ADVANTAGES OF SBI OVER ICICI: SBI is the largest and oldest bank of India.An area where it has been very aggressive. State bank of India has vast experience in the field of SME (Small and Medium Enterprises) Financing. The group plans to add between 75. It is also set to become the largest issuer of debit cards and is the second largest credit card issuer. is planning to add another 3.000 and 1. As it is the oldest name so it enjoys public trust a lot. So this bank enjoys the trust of its Customers a lot.116 - .000 employees in the next few years. 00. which has over 10.be concentrated and plans to add 20.
Six reasons why we currently prefer SBI over ICICI Reason #1 .Stronger CASA base CASA franchise of 42% provides comfort on margin sustainability for SBI. Though CASA for ICICI will also improve from the current 27%. .117 - . we believe SBI’s liability franchise will strengthen further with the opening of ~2.000 branches in FY09.
while ~61% of assets have more than 1-year maturity. . with 60% of liabilities of more than 1-year maturity. ICICI has 43% of its liabilities with more than 1-year maturity.118 - .Reason #2 – Asset-liability match of SBI is better SBI has a better asset-liability match. while ~71% of assets have more than 1-year maturity.
Cost ratios of SBI Life are better than ICICI Prudential Life due to its strong bancassurance model and better agency productivity.Proxy insurance plays on both Any upside on insurance reforms can be played through SBI as well.119 - . . Reason #3 .
SBI has more diversified loan book While asset quality risks persist for both banks.Reason #4 .120 - . SBI’s loan book is well diversified across a variety of segments. ICICI’s loan book is still skewed towards retail. .
Reason #5 .Market share gain in favor of SBI . According to our analysis. over the next 18 months the retail segment is likely to be more vulnerable than the corporate segment.121 - .
while for ICICI it was 2% as at Q1FY09. SBI will continue to gain market share in both advances and deposits at ICICI’s expense due to the latter’s strategy of going slow.Return ratios for SBI are better . Deposit growth for SBI was at 25%.122 - . Advances growth for SBI as at Q1FY09 was 28% versus 13% for ICICI. Reason #6 .
while that of SBI will be in the range of 14-16%. Key risks . SBI is trading at 0. ROE for ICICI is expected to be in the range of 8-10% in FY09-10E.0x FY10E adjusted book (assuming value of subsidiaries for SBI at INR 301 and for ICICI at INR 283 on FY10E basis). while ICICI is trading at 1.123 - .94x FY10E adjusted book.
Graphical Representation of data . SBI’s low provisioning coverage (44%) will lead to higher provisioning cost in FY10E. while we expect NPAs to increase for SBI in FY10E and FY11E. unlike the DSA model that ICICI follows. Like any other PSU bank. For ICICI.124 - . we do not expect SBI to go through a similar experience as ICICI. Hence. the bulk of SBI’s loan origination happens through branches where underwriting standards are stricter. the expectation of bad asset quality is priced in and further negative surprises look unlikely. revised loan waiver guidelines could keep SBI’s Q2FY09 profits muted due to higher provision requirement. Also. considering the aggressive balance sheet growth.
125 - . OF PEOPLE 62% 36% 2% 0 31 18 1 0 50 Chart-1 .Q.1 On which bank you depend for your regular transaction? Table-1 SBI ICICI HDFC OTHER TOTAL NO.
Q.126 - . around 36% of people are using ICICI Bank for their transaction and only 2% of people are using HDFC .2 Are you aware of products & services provided by SBI and ICICI? . It also shows that SBI have the highest market position .70% 60% 50% 40% 30% 20% 10% 0% SI B IC I IC H F DC OTH ER It has been observed that approximately 62% correspondents are using the service of SBI for their daily transaction.
Table-2 YES NO Total No. of People 90% 10% 45 5 50 Chart-2 .127 - .
Q. In this 10% most of the people are from typical rural area (Farmers). the rest 10% have no idea about the product they are using.90 % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0 % YS E NO From the above data it is clear that most of the customers (around 90%) of Jaipur have the idea about the product & services of SBI.128 - .3 Are you aware of the micro finance products of SBI and ICICI? .
of People 80% 20% 40 10 50 Chart-3 .129 - .Table-3 YES NO Total No.
Almost all the 80% people who have the idea about the advance product are the user of SBI product & service.130 - .80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0% Y ES NO It is clear that most of the people have the idea about the advance product of SBI.4 which product of SBI or ICICI you have used? . Q.
131 - .Table-4 Fix Deposit INSURANCE MF EQUITY OTHER 30% 20% 30% 16% 4% 15 10 15 8 2 Chart-4 .
30 % 25 % 20 % 15 % 10 % 5 % 0 % F Deposit ix INS ANCE UR MF EQUITY OTHER 30% of People in Jaipur use Fix deposits and others 30% use Mutual funds and about 20% use Insuranse and rest use other products of SBI & ICICI Bank. 5 what do you feel about the services providing by SBI or ICICI in micro finance products? .132 - . Q.
133 - .Table-5 Good Average Best 40% 24% 36% SBI & ICICI 20 12 18 Chart-5 .
6 according to you which factors are most crucial for rapid growth of MFIs? .40% 35% 30% 25% 20% 15% 10% 5% 0% Good Averag e Bes t From this it is clear that the service provide by SBI in its advance product is good in between the customer.40% of people said that the service provide by SBI & ICICI is good & 36% said it is best & 24% of people said that it is average.134 - . All of them satisfy with the product provide by SBI. Q.
135 - .Table-6 Low interset rate Availability Instalment factor Processing & sanctioning of loan Total no. of people 32% 24% 20% 24% 16 12 10 12 50 Chart-6 .
7 Do you think Microfinance has helped in Rural India? .35% 30% 25% 20% 15% 10% 5% 0% Instalm fa ent ctor L interset rate ow Ava bility ila P rocessing& sa nctioningof loa n From this it is clear that the low interest rate is major factor for the success of Banks and after that availability and processing time comes. Q.136 - .
Table-7 Yes NO Toal no. of people 78% 22% 39 11 50 Chart-7 .137 - .
138 - . Q.80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0% Y es NO It is clear that most of the people said that Micro finance helped in Rural areas and rest of the people says no about this. Do you agree? .8 Microfinance concept makes relevance in rural India as well as urban area.
of people 70% 30% 35 15 50 Chart-8 .139 - .Table-8 Yes No Total no.
Q. 9 Which features you like most in SBI and ICICI bank? .70% 60% 50% 40% 30% 20% 10% 0% Y es No It is clear that most of the people said that Micro finance concept has relevance in rural areas and rest of the people says no.140 - .
Table-9 Various products Attractive ROI Transparency Simple & fast processing Strong Capital Any other feature Total no.141 - . of people 20% 24% 22% 20% 12% 2% 10 12 11 10 6 1 50 Chart-9 .
of people 1 5% 0 % From this it is clear that attractive ROI provided by banks attracts customers different products and fast response also attracts the mind of customers. 10 According to you which factor can enhance the popularity of SBI and ICICI micro finance products. Q.142 - . .2 5% V arious products 2 0% Attractive R OI Trans parency S ple & fas im t proces ing s 1 0% S trong C apital Any other feature 5 % Total no.
of people 40% 32% 28% 20 16 14 50 Chart-10 .143 - .Table-10 Customer relationship Transparency Low charges Total No.
144 - . Project Findings : .40 % 35 % 30 % 25 % 20 % 15 % 10 % 5 % 0 % C tom us er relations hip trans parency L charg ow es It is clear that most of the people said that customer relationship affects the customers and 32 % people said that it depends on transparency and rest of the people says that it depends on low charges.
Government employees are more concern than private employees for advance product. It also describes the core features of borrowers as well as bankers for financing loan which is a complex process. People want securities that’s why choose SBI than ICICI bank. All of SBI customers are satisfied with the services provided by the bank. It has been observed that approximately 85% correspondents are using advance product of SBI and 15% are not using any type of advance product of SBI in Delhi & NCR. Approximately 43% of advance product users said that the service of SBI in advance product is excellent. From this project it is found that SBI advance product having the 1st place in the market at Delhi & NCR.145 - . Biggest problem people don’t invest their money in Share due to lack of knowledge. Creating an efficient and effective organization. . The study shows all the important aspects of Bank loan schemes & how this affects to current financial trends. Many customers have no time to call customer care so that they are not able to know about the service & features of SBI advance product. Most of the customers at Delhi & NCR prefer to take loan from SBI. More flexible requirement given by this bank. there is a great opportunity to compete with ICICI Bank & to retain its customer by fulfilling the requirement of customer in SBI and ICICI advance product. This live project topic gives opportunity to know about various loan schemes provided by the bank. A response from customer care is so clear & good.
Transparency Quick prosessing .REASONS FOR HIGHLY USE OF SBI ADVANCE PRODUCT : Biggest bank of india Attractive rate of retorns Transparency Simple & fast processing Quick processing REASON S FOR HIGHLY USE OF ICICI ADVANCE PRODUCT & INVESTMENT : Less paper work Attractive roi but less than sbi.146 - .
Significant thrust on growing retail book poses higher credit risk to the bank. Stiff competition. could impact retail growth of SBI and hence slowdown in earnings growth.SWOT ANALYSIS OF SBI Strength/ Opportunities: The growth for SBI in the coming years is likely to be fueled by the following factors: Continued effort to increase low cost deposit would ensure improvement in NIMs and hence earnings. Growing retail & SMEs thrust would lead to higher business growth. Insufficient capital may restrict the growth prospects of the bank going forward. Management indicated a likely pension shortfall on account of AS-15 to be close to Rs50bn. Weakness/ Threats: The risks that could ensue to SBI in time to come are as under: SBI is currently operating at a lowest CAR. especially in the retail segment. Strong economic growth would generate higher demand for funds pursuant to higher corporate demand for credit on account of capacity expansion.147 - . . Delay in technology upgradation could result in loss of market shares. Slow down in domestic economy would pose a concern over credit off-take thereby impacting earnings growth. Contribution of retail credit to total bank credit stood at 26%.
[D-Mart is a dematerialized account opened by a salaried person for purchase & sale of shares of different companies. proper sitting arrangements to the customers. 4) 12 hrs. It also provides D-Mart account facilities on-line.SWOT ANALYSIS OF ICICI BANK STRENGHTS: 1) Online Services: ICICI Bank provides online services of all it’s banking facilities. They provide faster services along with bonding & personal relationship with the customers. This service is one of it’s kind & is very helpful for the customers who are in urgent need of money. . of services i. The ATM centers of ICICI bank works even after 11:00pm. so a person can access his account from anywhere he is. Banking services: Compared to other bank ICICI bank provides long hrs. 3) Friendly Staff: The staff of ICICI Bank in all branches is very friendly & help the customers in all cases. 5) Other Facilities to the Customers & Employees: ICICI Bank also provides other facilities like drinking water facilities. And there are also proper Ventilation & sanitary facilities for the employees of the bank. 8-8 services to the customers. at night in certain branches.e.] 2) Advanced Infrastructure: Branches of ICICI Bank are well equipped with advanced technology to provide the customers with taster banking services. 6) Late night ATM services: ICICI bank provides late night ATM services to the customers.148 - . All the computerized machines are located in suitable manner & are very useful to the customers & staff of the bank.
This will also upto large extent help the bank earn profits & popularity. limited period.149 - . The bank will advertise & promote the different policies introduced by the insurance company & convince their customers to buy insurance policies. Such students will surely prove as an asset to the bank. That means the bank can have a tie-up with a insurance company. . funding towards natural calamities. Weakness: 1) High Bank Service Charges: ICICI bank charges highly to customers for the services provided by them when compared to other bank & that is why it is only in the reach of higher class of society. Even when the credit period is not over it sends reminder letters to the OPPORTUNITIES: 1) Bank –Insurance services: The bank should also provide insurance services. 2) Increase in percentage of Returns on increase: The bank should provide higher returns on deposits in comparison of the present situation. But this falls in the 4th quadrant so the bank should neglect it. 3) Recruit professionally guided students: Bank & Insurance is a special non-aid course where the students specialize in the functioning & services of the bank & also are knowledge about various tax policies. The bank can recruit these students through tie-ups with colleges. 2) Less Credit Period: ICICI bank provides credit facilities but only upto customers which may annoy them. 4) Associate with social cause: The bank can also associate itself with social causes like providing relief aid patients.
HDFC also provide equivalent facilities like ICICI do and also ICICI do not have consistency in its international operation. 4) No Proper Facilities To Uneducated customers: ICICI Bank provides all services through electronic computerized machines. Bank like CITI Bank. But this threat falls in the 4th quadrant so its negligible. There can be easy access to the e-mail ids of the customers through wrong people. 3) Decentralized Management: Each branch manager is given the authority of taking decisions in their respective branches. 2) Net Services: ICICI Bank provides all kind of services on-line. Standered Chartered.150 - . THREATS 1) Competition: ICICI Bank is facing tight competition locally as well as internationally. HSBC. The decisions made by different managers are diverse and any one wrong decision can laid to heavy losses to the bank. . The company can avoid this threat. This creates problems to the less educated people. ABM. The confidential information of the customers can be leaked easily through the e-mail ids.
. This includes assets. However. ATM network. branch network. and size of profits.151 - . One reason why SBI has lagged in market cap despite its size has been its inability to unlock value from its various businesses. The only place that ICICI Bank has been able to upset the monolith has been in the area of market capitalization. SBI and ICICI are both India’s largest banks. there are signs that this is changing and the bank is making attempts to realize the value of its investments in the life insurance and asset management business.CONCLUSION: The gap between SBI and the rest of the bank is so wide that SBI comes out as number one on almost all counts. And by this competition customers will be benefited and Indian economy will get a boost. Their growth means India’s growth. number of employees.
etc. SBI and ICICI must take feedbacks of customers regarding features & services.152 - . It is the duty of the bank to disclose all the material facts regarding advance product. repayment period and any types of charges. . SBI and ICICI should more focus on Retaining existing customers.Suggestion & Recommendation Customer awareness programme is required so that more people should attract towards advance product. like ROI. Agents should be trained. SBI customer care should more concern about the fastest settlement of customer problems. well educated & proper trained to convince the people about different advance product. Before deducting or charging any monetary charge SBI & ICICI must consult with customer. Both should more concern about physical verification rather than phone verification so it will avoid fraud or cheating. Special scheme should be implemented to encourage both customer and agents. For the better service new offers would be require. Advance product selling agents must not give any type of wrong information regarding advance product. Both bank must focus on Segmentation based on customer knowledge Product offering based on customer demand. ICICI bank is already doing.
Guarantee should give in investment money in share market. Loan sanction date should be according to customer convenient. SBI should take steps to solve customer problems immediately. Education loan should be providing to private college also which is not under AICTE or any kind of University.153 - .Suggestions given by the consumers at the time of survey: There is more time period for repayment of education loan. well educated & proper trained to convince the people about different advance product. A customer awareness programme should be taking place in rural area. . Agents should be trained.
1 On which bank you depend for your regular transaction? a) SBI b) ICICI Bank c) HDFC Bank d) Other Bank. Specify (_____________) Q.2 Are you aware of products & services provided by SBI and ICICI? a) YES b) NO Q._____________________________________ Occupation-__________________________________ Contact Detail -_______________________________ Q.154 - .3 Are you aware of the micro finance products of SBI and ICICI? a) YES b) NO .Appendix Questionnaire Name .
Q.155 - .4 which product of SBI or ICICI you have used? a) Fix deposit b) Insurance c) Mutual Fund d) Equity e) Other. 5 what do you feel about the services providing by SBI or ICICI in micro finance products? a) Good b) Average c) Best Q.7 Do you think Microfinance has helped in Rural India? a)Yes .6 according to you which factors are most crucial for rapid growth of MFIs? a) Low interest rate b) Availability c) Instalment factor d) Processing & sanctioning of loan Q. Specify ( ______________ ) Q.
156 - . 10 According to you which factor can enhance the popularity of SBI and ICICI micro finance products. specify ( _____________ ) Q. 9 Which features you like most in SBI and ICICI bank? a) Various Product b) Attractive ROI c) Transparency d) Simple & fast processing e) Strong capital f) Any other feature.8 Microfinance concept makes relevance in rural India as well as urban area. Do you agree? a) Yes b) No Q. a) Customer Relationship b) Transparency c) Low charges .b) No Q.
11. 4.157 - . 6 7 8 9 10 The Broking House from where people using e-Broking Service prefer to invest The features liked by people using e-Broking Service The age of the people not using e-Broking Service The occupation of the people not using eBroking Service The yearly income of the people not using e102 104 106 107 108 PAGE NO.LIST OF FIGURES : SERIAL NO. 6 44 57 85 96 98 99 100 101 . 1. 9. 7. 1. of Users and Non Users of e-Broking The age of the people using e-Broking Service The occupation of the people using e-Broking Service The yearly income of the people using e-Broking Service 10. TABLE NO. 8. 5. 2. 6. 12. 2. 3. 41 41 LIST OF TABLES : SERIAL NO. FIGURE NO. 1 2 3 4 1 2 3 4 5 DETAILS Angel Group of Companies List of Stock Exchanges Comparison of charges of Broking Houses Profession Tax on Salaries Mode of Data Collection No. 13. 1 2 DETAILS Concept of Financial System Financial System PAGE NO. 14.
5. 2. 11 The Broking House from where people not using e-Broking Service prefer to invest 109 LIST OF GRAPHS: SERIAL NO. GRAPH NO. 9. 1 2 3 4 5 6 7 8 9 10 DETAILS Users and Non Users of e-Broking The age of the people using e-Broking Service The occupation of the people using e-Broking Service The yearly income of the people using eBroking Service The Broking House from where people using e-Broking Service prefer to invest The features liked by people using e-Broking Service The age of the people not using e-Broking Service The occupation of the people not using eBroking Service The yearly income of the people not using eBroking Service The Broking House from where people not using e-Broking Service prefer to invest PAGE NO. 3. 7. 10.158 - . 4. 8. 6.Broking Service 15. 1. 98 99 100 101 102 104 106 107 108 109 .
159 - ..
Questionare master sheet .160 - .
161 - .com www.org www.icmr.geocities.org .com www.Bibliography: www.empowerpoor.icfai.microfinancegateway.org/microfinance/successstories www.nabard.
M. and Fisher. A. D ed.gov/library/publications/the-world-factbook/geos/in. “Community development in sustainable livelihoods approaches An introduction”. World Bank. 2003. “Performance Assessment of Self Help Groups in Poverty Reduction in the state of Uttarakhand in India.30 Brocklesby.. Direction in Development. https://www. 2005. “A Snapshot of Micro enterprises in Hyderabad”. “Key Indicators 2006: Measuring Policy Effectiveness in Health and Education”. 2005 Basu P. Sustainable Rural Livelihoods: What Contribution can we make? Department for International Development (DFID).162 - . The World Factbook 2009-India. February. Mimeo. ADB. Glennerster.. 36448. Banerjee. “Asian Development Outlook: 2010”.cia. Bhattacharyay. E.. Washington D... “Improving Access to Finance to for India’s Rural Poor”. Central Intelligence Agency. A.ADB.. The Banker. Asian Development Bank. Boston. E. Banker. Carney. Asian Development Bank.. Manila. Massachusetts Institute of Technology. 2010.html . 2006. Duflo.C. “Microfinance Gains Momentum”. 38(3). R. 1998 CIA.. Manila. 2006.” a Research Paper submitted to GRIPS (primarily based on the data and information provided by an unpublished report on “Poverty and SHG Movement in Uttarakhand: Role of Institutions and Policies for Performance Assessment of Self Help Groups in Poverty Reduction in the state of Uttarakhand in India). Community Development Journal. M.
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