YASIR PROJECT-1 (Recovered)

A REPORT ON THE STUDY DONE
ON
BANKING SECTOR
(UNION BANK OF INDIA, HDFC BANK, KSCB)

Submitted to
UNIVERSITY OF KERALA
In partial fulfillment of the requirement for the award of degree of
MASTER OF BUSINESS ADMINISTRATION
Submitted by
MOHAMMED YASIR K.V
Register number: 59520941029

Under the guidance of
FACULTY GUIDE
Dr. RAM KRISHNAN S
UIM, POOJAPPURA
UNIVERSITY INSTITUTE OF MANAGEMENT
ICM CAMPUS, POOJAPPURA
MARCH, 2022
UNIVERSITY OF KERALA
DECLARATION
I, MOHAMMED YASIR K.V, Student of University Institute of Management, Poojapura;

declare that the report of the internship in UNION BANK , HDFC BANK , KSCB
Submitted in partial fulfillment of the requirement for award of the Degree of Master of
Business Administration (MBA) is record of the original and independent of work done by
me duringthe period of one month , and has not formed the part or basis for the award of any
other Degree/Diploma, fellowship or any other similar titles to any candidate of this
university or another university.
Place: Poojapura MOHAMMED YASIR K.V
Date: Reg.No : 59520941029

ACKNOWLEDGEMENT
I would like to express my deepest appreciation to all those who provided me the possibility
to complete this report.
First of all I thank almighty God for all the blessings showered upon me to undergo my study.
I would like to express my gratitude to Mr. RADHAKRISHNA MENON, Director,

Institute of Cooperative Management, Poojapura for his excellent guidance, support and
providing me with an excellent atmosphere for the research study.
I would like to express my deepest gratitude to Dr. V. JAYAMOHANAN NAIR, academic

coordinator of University Institute of Management, Poojapura for the valuable guidance and
support provided to complete the study successfully.
I express my foremost sincere thanks to our faculty guide, Dr. RAM KRISHNAN S.,
University Institute of Management, Poojapura for granting me permission to undergo the
study programme and the valuable guidance and support provided to complete the study
successfully.
I am grateful to my family and friends whose encouragement and assistance have helped me
a great deal for the smooth completion of the Internship Programme.
MOHAMMED YASIR K.V

CONTENTS
1. INTRODUCTION.............................................................................................................1
1.1 INTRODUCTION……………………………………………………………………….2
1.2 OBJECTIVES OF THE STUDY………………………………………………………..5
1.3 DATA SOURCES………………………………………..……………………………...5
1.4 DATA ANALYSIS……………………………………………………………………...5
1.5 SCOPE OF THE STUDY……………………………………………………………….6
1.6 LIMITATION OF THE STUDY…………………….………………………………….6
1.7 PERIOD OF THE STUDY..........……………………………………………….……....7
1.8 CHAPTERISATION…………………………………………………..………………...7
2. INDUSTRY PROFILE…………………………………………………………………..8
2.1 HISTORY OF INDIAN BANKING................………………………………………....9
2.2 EVOLUTION AND DEVELOPMENT……………………………………………......16
3. COMPANY PROFILE………………………………………………………………….18
3.1 UNION BANK OF INDIA.........…………………………………………………….....19
3.2 HDFC........................………………………………………………………………….....32
3.3 KSCB.....................................……………………………………………………….........43
4. DATA ANALYSIS………………………………………………………………………50
4.1 SWOT ANALYSIS……………………………………………………………………...51
4.1.1 UNION BANK OF INDIA.....…………………………………………………..........52
4.1.2 HDFC........................……………………………………………………………..........53
4.1.3 KSCB......................................…………………………………………………............54
4.2 PORTER’S FIVE FORCES MODEL…………………………………………………...56
4.2.1 UNION BANK OF INDIA…………………………………………………...............56
4.2.2 HDFC……………………………………………………………..................................58
4.2.3 KSCB…………………………………………………...................................................59
4.3 BCG MATRIX……………………………………………………………………….......61
4.3.1 UNION BANK OF INDIA............................................................................................62
4.3.2 HDFC...............................................................................................................................63
4.3.3 KSCB...............................................................................................................................63
5. FUTURE PROSPECTS……………………………….……………………………….64
5.1 FINDINGS……………………………………………………………………………...65
5.1.1 UNION BANK OF INDIA......…………………………………………………........66
5.1.2 HDFC……………………………………………………………................................67
5.1.3 KSCB…………………………………………………................................................69
5.2 FUTURE PROSPECTS………………………………………………………………...70
5.2.1 UNION BANK OF INDIA………………………………………………….............70
5.2.2 HDFC……………………………………………………………................................71
5.2.3 KSCB…………………………………………………................................................72
5.3 CONCLUSION…………………………………………………………………...........74
BIBLIOGRAPHY………………………………………………………………..………..76
APPENDIX……………………………………........................................................................
LIST OF FIGURES AND TABLES
FIGURE 1. UNION BANK OF INDIA .................................................................................. 19

FIGURE 2. ORGANIZATIONAL STRUCTURE OF UNION BANK OF INDIA ............... 24
FIGURE 3. HDFC BANK ....................................................................................................... 32
FIGURE 4. ORGANIZATIONAL STRUCTURE OF HDFC BANK .................................... 42
FIGURE 5. KSCB ................................................................................................................... 43
FIGURE 6. ORGANIZATIONAL STRUCTURE OF OF KSCB ......................................... .49
FIGURE 7. SWOT ..................................................................................................................51
FIGURE 8. PORTER'S FIVE FORCE MODEL .................................................................... 56
FIGURE 9. BCG MATRIX ..................................................................................................... .61
FIGURE 10. BCG MATRIX OF UNION BANK OF INDIA , HDFC, KSCB ...................... .62
BANKING SECTOR
CHAPTER -1
INTRODUCTION
UNIVERSITY INSTITUTE OF MANAGEMENT, POOJAPURA Page 1

BANKING SECTOR
1.1 INTRODUCTION
An internship is a period of work experience offered by an organization for a limited period of time.
They are typically undertaken by management students looking to gain relevant skills, experience and
exposure to the working environment, often with in a specific industry, which related to the field of
study. Typically and internship consists of an exchange of service for experience between the intern
and the organisation. Internship are used to determine if the Interns still has an interest in that field
after the real life experience. Internship provide management students the ability to participate in a
field of their choice to receive hand on learning about a particular future career, preparing them to
full time work following graduation. But due to the present covid19 scenario, the internship programme
was not possible to acquire. In order to overcome this difficulty,
Here, the internship consists of the details regarding the particular sector and the
capabilities a student should possess in order to acquire a particular career. This summer internship
provides the students an opportunity to know, learn, collect and analyse the nature, vision and objective
and learn about the industrial sector’s culture. This report is about the theoretical study of the three
banks belonging to the banking sector are UNION BANK, HFDC, KERALA STATE
COOPERATIVE BANK
A bank is a financial institution licensed to receive deposits and make loans. Banks may
also provide financial services such as wealth management, currency exchange, and safe deposit
boxes., which sustain and stimulate the business .finance is the fundamental foundation of every
business activities and bank of different types furnishes. Bank are there for called as reservoirs of
money and credit available for productive investment in industry and commerce .The modern
business world would not have reached Such an extensive and impressive pitch but for the existence
of a wide network of banking concerns specializing in creation and disbursement of credit
The Indian banking history, which is governed by the Banking Regulation Act of 1949Can be
broadly classified into major categories.non scheduled banks and scheduled Bank, scheduled bank
comprise commercial bank and cooperative banks, In terms of ownership commercial bank can be
further grouped into nationalized bank.
The banking industry plays a dynamic role in the economic development of the country .The growth
of an economy depends on the robustness of its banking history .Banks act store house of the country
wealth .They use the deposits collected for productive purpose which help in the capital formulation
in the country.

BANKING SECTOR
The journey of Indian Banking industry has faced many waves of economic crisis. There was the
economic crisis of US in 2008-2009 and European crisis. However, a midst all this turmoil, the
Indian banking industry has been among the few to maintain its stability .The tempo of the
development for Indian banking industry has been remarkable over the past decade. It is evident from
the higher pace of credit expansion expanding profitability and productivity similar to the bank in
developed economies, lower incidence of nonperforming asset and focus on financial inclusion have
contributed to growth of Indian banking sector.
1. UNION BANK OF INDIA
Union Bank of India is one of the leading public sector banks of the country. Union Bank of
India is the first large public sector bank in the country to have implemented 100% core banking
solution. The Bank is a listed entity and the Government of India holds 83.50 percent in Bank’s
total share capital. The Bank, having its headquarters at Mumbai (India), was registered on
November 11, 1919 as a limited company. Union Bank of India has a network of 9100+ domestic
branches, 11400+ ATMs, 8216BC Points serving over 120 million customers
with 75000+ employees .The Bank’s total business as of 31st December 2021 stood at
Rs.16,06,986 cr. comprising Rs. 9,37,455 cr. of deposits and Rs. 6,69,531 cr. of advances as of 31st
December 2021. Recently, Andra bank and corporation Bank were amalgamated into Union Bank
of India with effect from01.04.2020. The bank has received several awards and recognition for its
prowess in technology, digital banking, financial inclusion MSME and development of human
resources.
2. HDFC BANK LIMITED
HDFC Bank is one of India’s leading private banks and was among the first to receive approval from
the Reserve Bank of India (RBI) to set up a private sector bank in 1994.
HDFC Bank Limited is an Indian banking and financial services company headquartered in Mumbai.
It is India's largest private sector bank by assets and world's 10th largest bank by market
capitalisation as of April 2021. HDFC Bank provides a number of products and services
including wholesale banking, retail banking, treasury, auto loans, two-wheeler loans, personal loans,
loans against property, consumer durable loan, lifestyle loan and credit cards. Along with this various
digital products are Payzapp and SmartBUY HDFC Bank caters to a wide range of banking services
covering commercial and investment banking on the wholesale side and transactional / branch
banking on the retail side. The bank has three key business segments: Wholesale Banking, Treasury,
Retail Banking. The Bank's target market is primarily large, blue-chip manufacturing companies in

BANKING SECTOR
the Indian corporate sector and to a lesser extent, small & mid-sized corporates and agri-based
businesses. For these customers, the Bank provides a wide range of commercial and transactional
banking services, including working capital finance, trade services, transactional services, cash
management, etc.
Within this business, the bank has three main product areas - Foreign Exchange and Derivatives,
customers through the growing branch network, as well as through alternative delivery channels like
ATMs, Phone Banking, Net Banking and Mobile Banking.
3. KERALA STATE CO-OPERATIVE BANK
The Kerala State Co-operative Bank was registered and retained as an Apex Bank in which only Co-
operative Banks approved by the Registrar of Co-operative Societies were admitted as members.
Kerala Government to set up its own bank, Kerala Bank receives the RBI’s approval. The new
Kerala Bank will be the largest banking network in the state of Kerala. Kerala Bank results from the
amalgamation of the district cooperative banks with the Kerala State Cooperative Bank. In its
formation, 13 District Cooperative Banks are being absorbed into the Kerala Bank.
The co-operative banking in the state of Kerala follows a three tier system. In this system, Kerala
State Co-operative Bank was on the top level followed by District Co-operative Banks in the second
level and Co-operative banks and societies in the lowest third level. Formed and working under the
directives of the Reserve Bank of India, Kerala Bank has adopted a two tier system after
amalgamating the other entities in the three tier system. The new two tier system will have the Kerala
Bank head office and the state wide branches under it.

BANKING SECTOR
1.2 OBJECTIVES OF THE STUDY
1. To get an idea about the banking sector.
2. To understand future performance of currently performing company in one period.
3. To understand the organization structure of the bank

4. To evaluate the existing activities and techniques of co-operative bank.
5. To know the competitive strength and weakness of the banks
1.3 DATA SOURCES
Secondary data means the data that are already available. Secondary data is the data collected by
someone other than user. It may be either published data or that from someone else study. Secondary
data were collected from
* Company manuals
* Annual report
*Journals and book
*website etc.
1.4 DATA ANALYSIS
1. SWOT ANALYSIS
2. FIVE FORCES ANALYSIS
3. BCG ANALYSIS

BANKING SECTOR
1.5 SCOPE OF THE STUDY
This internship analyses in deal about the functions of different departments on the basis of which
strength, weakness, Opportunities and threats are arrived .Here the different refers to human
resources, finance, public relation. The findings of the study would give valuable information or
improving the overall performance of the organizations.
In the present scenario major economical and technical changes are undergoing in industrial and
financial revolution through the new information-processing technology. Especially in finance sector
it has a significant role for overall development.
1.6 LIMITATIONS OF THE STUDY
• This study is only based on secondary data.
• Time has concerned with constraint performing the study
• There is more chances for wrong information.
• Limitation is availability of data.

BANKING SECTOR
1.7 PERIOD OF STUDY
The period of study is one month (01/03/2022-31/03/2022).
1.8 CHAPTERISATION
CHAPTER-1 : Define the introduction about research with its limitation and scope
CHAPTER-2 : Defined industry profile evolution and development.
CHAPTER- 3 : Define the company profile
CHAPTER -4: Define the data analysis in SWOT , PORTER’S Five force analysis and BCG matrix
CHAPTER- 5: The findings and future prospects and includes conclusion of the research study.

BANKING SECTOR
CHAPTER- 2
INDUSTRY PROFILE

BANKING SECTOR
BANKS IN INDIA
Banking industry in India handles finances in a country including cash and credit. Banks are the
institutional bodies that accept deposits and grant credit to the entities and play a major role in
maintaining the economic stature of a country. banks plays an important role in economic
development of the country Given their importance in the economy, banks are kept under strict
regulation in most of the countries. They have a strategic role to play in the economic development
of countries and remain important in the economics of the more highly industrialized country
Banking is a massive employment providing opportunities broad basing entrepreneurship and
securing distribution of economic wealth industry occupy a place of importance in the economy as
potential caretakers of economic resources in particular the labor resources as they provide
employment for substantial work force..
2.1 HISTORY OF INDIAN BANKING
Modern banking in India originated in the last decade of the 18th century. Among the first 4 were the
Bank of Hindustan, which was established in 1770 and liquidated in 1829–32; and the General Bank
of India, established in 1786 but failed in 1791.
The largest bank and the oldest still in existence, is the State Bank of India (S.B.I).It originated and
started working as the Bank of Calcutta in mid-June 1806. In 1809, it was renamed as the Bank of
Bengal. This was one of the three banks founded by a presidency government, the other two were the
Bank of Bombay in 1840 and the Bank of Madras in 1843. The three banks were merged in 1921 to
form the Imperial Bank of India, which upon India's independence, became the State Bank of India in
1955. For many years the presidency banks had acted as quasi-central banks, as did their successors,
until the Reserve Bank of India was established in 1935, under the Reserve Bank of India Act,
1934.In 1960, the State Banks of India was given control of eight state-associated banks under the
State Bank of India (Subsidiary Banks) Act, 1959. These are now called its associate banks. In 1969
the Indian government nationalized 14 major private banks; one of the big banks was Bank of India.
In 1980, 6 more private banks were nationalized. These nationalized banks are the majority of lenders
in the Indian economy.
The Indian banking sector is broadly classified into scheduled and non-scheduled banks. The
scheduled banks are those included under the 2nd Schedule of the Reserve Bank of India Act, 1934.
The scheduled banks are further classified into: nationalised banks; State Bank of India and its
associates; Regional Rural Banks (RRBs); foreign banks; and other Indian private sector banks. The
BANKING SECTOR
commercial banks refers to both scheduled and non-scheduled commercial banks regulated under the
Banking Regulation Act, 1949. Generally the supply, product range and reach of banking in India is
fairly mature-even though reach in rural India and to the poor still remains a challenge. The
government has developed initiatives to address this through the State Bank of India expanding its
branch network and through the National Bank for Agriculture and Rural Development (NABARD)
with facilities like microfinance.
Banking in India forms the base for the economic development of the country. Major changes in the
banking system and management have been seen over the years with the advancement in technology,
considering the needs of people. The Banking system of the country is the base of the economy and
economic development of the country. It is the most leading part of the financial sector of the country
as it is responsible for more than 70 % of the funds flowing through the financial sector in the country.
The banking system in the country has three primary functions:
• Operations of Payment system
• Depositor and protector of people’s savings
• Issue loans to individual and Companies
PRE INDEPENDENCE PERIOD (1786-1947)
The first bank of India was the “Bank of Hindustan”, established in 1770 and located in the then, Indian
capital, Calcutta. However, this bank failed to work and ceased operations in 1832. During the Pre
Independence period over 600 banks had been registered in the country, but only a few managed to
survive. Following the path of Bank of Hindustan, various other banks were established in India. They
were:
 Oudh Commercial Bank (1881-1958)
 Bank Of Bengal (1809)
 Bank Of Bombay(1840)
 Bank Of Madras(1843)
During the British rule in India, the East India Company had established three banks: Bank of Bengal,
Bank of Bombay and Bank of Madras and called them the Presidential Banks. These three banks were
later merged into one single bank in 1921, which was called the “Imperial Bank of India.” The Imperial
Bank of India was later nationalised in 1955 and was named “The State Bank of India”, which is
currently the largest Public sector Bank.

BANKING SECTOR
POST-INDEPENDENCE PERIOD (1947-1991)
At the time, when India got independence, all the major banks of the country were led privately which
was a cause of concern as the people belonging to rural areas were still dependent on money lenders for
financial assistance. With an aim to solve this problem, the then Government decided to nationalise the
banks. These banks were nationalised under the Banking Regulation Act, 1949, whereas the Reserve
Bank of India was nationalised in 1949. Following it was the formation of State Bank of India in 1955
and other 14 banks were nationalised between the time duration of 1969 to 1991. These were the banks
whose national deposits were more than 50 crores. Given below is the list of these 14 Banks nationalised
in 1969:
1. Allahabad Bank
2. Bank of India
3. Bank of Baroda
4. Bank of Maharashtra
5. Central Bank of India
6. Canara Bank
7. Dena Bank
8. Indian Overseas Bank
9. Indian Bank
10. Punjab National Bank
11. Syndicate Bank
12. Union Bank of India
13. United Bank
14. UCO Bank

BANKING SECTOR
In the year 1980, another 6 banks were nationalised, taking the number to 20 banks. These banks
included:
1. Andhra Bank
2. Corporation Bank
3. New Bank of India

4. Oriental Bank of Commerce.
5. Punjab & Sind Bank
6. Vijaya Bank
Apart from the above mentioned 20 banks, there were seven subsidiaries of SBI which were nationalised
in 1959:
1. State Bank of Patiala
2. State Bank of Hyderabad
3. State Bank of Bikaner & Jaipur
4. State Bank of Mysore
5. State Bank of Travancore
6. State Bank of Saurashtra
7. State Bank of Indore

All these banks were later merged with the State Bank of India in 2017, except for the State Bank of
Saurashtra, which was merged in 2008 and State Bank of Indore, which was merged in 2010. This Post
Independence phase was the one that led to major developments in the banking sector of India and also in
the evolution of the banking sector. The major steps to regulate banking included:
 The Reserve Bank of India, India's central banking authority, was established in April 1935, but
was nationalized on 1 January 1949 under the terms of the Reserve Bank of India (Transfer to
Public Ownership) Act, 1948 (RBI, 2005b)
 In 1949, the Banking Regulation Act was enacted, which empowered the Reserve Bank of India
(RBI) to regulate, control, and inspect the banks in India.
 The Banking Regulation Act also provided that no new bank or branch of an existing bank could
be opened without a license from the RBI, and no two banks could have common directors.

BANKING SECTOR
Nationalisation in 1969 and 1980
Despite the provisions, control and regulations of the Reserve Bank of India, banks in
India except the State Bank of India (SBI), remain owned and operated by private persons. By the
1960s, the Indian banking industry had become an important tool to facilitate the development of the
Indian economy. At the same time, it had emerged as a large employer, and a debate had ensued
about the nationalisation of the banking industry. Indira Gandhi, the then Prime Minister of India,
expressed the intention of the Government of India in the annual conference of the All India
Congress Meeting in a paper entitled Stray thoughts on Bank Nationalization
Thereafter, the Government of India issued the Banking Companies (Acquisition and Transfer of
Undertakings) Ordinance, 1969 and nationalised the 14 largest commercial banks with effect from
the midnight of 19 July 1969. These banks contained 85 percent of bank deposits in the country.
Within two weeks of the issue of the ordinance, the Parliament passed the Banking Companies
(Acquisition and Transfer of Undertaking) Bill, and it received presidential approval on 9 August
1969.
Role of banks in economic development and prosperity of a nation does not need any emphasis. It is
specially so in developing countries like India .Banks are not merely dealers in money, but also
manufacturers of money. They act as a link between those who require finance and those who have
finance in the form. of savings, but are unable to make an effective and productive use of it. Besides,
they become manufacturers of money by virtue of their lending operations. It is doubtful whether any
bank is confined only to these primary functions of accepting deposits and lending them. Most of the
banks are discharging a number of other valuable agency and general utility services.
The role of banks in rural reconstruction, elimination of poverty and illiteracy, establishment of
primary health centers and the like are considerable. Banks provide financial help to the needy to
pursue their higher education and later on to employ themselves in some meaningful and useful
activity. In India, banks are the biggest employers, next only to the Railways and the Postal
Department and their potentiality for employing educated unemployed is increasing with the
establishment of more and more branches, especially in rural areas. consequent to nationalisation of
banks, the very concept of banking has undergone a sea change. Security oriented lending has been
replaced by purpose oriented lending

BANKING SECTOR
LIBERALISATION IN 1990
Once the banks were established in the country, regular monitoring and regulations need to be followed
to continue the profits provided by the banking sector. The last phase or the ongoing phase of the
banking sector development plays a significant role. To provide stability and profitability to the
Nationalised Public Sector Banks, the Government decided to set up a committee under the leadership of
Shri. M Narasimhan to manage the various reforms in the Indian banking industry. The biggest
development was the introduction of Private sector banks in India. RBI gave license to 10 Private sector
banks to establish themselves in the country. These banks included:
1. Global Trust Bank
2. ICICI Bank
3. HDFC Bank
4. Axis Bank
5. Bank of Punjab
6. IndusInd Bank
7. Centurion Bank
8. IDBI Bank
9. Times Bank
10. Development Credit Bank
There are different types of banks in India. An exhaustive classification of these banks into various
categories is not an easy task. On the basis of functions, they can be divided into Commercial Banks,
Exchange Banks and Industrial Banks. Taking ownership and management as the basis, they can be
classified into Nationalized Banks, Joint Stock Banks and Co-operative Banks. From the point of view
of inclusion or otherwise of these banks in Schedule of the Reserve Bankof India Act, they can again be
classified into scheduled or non-scheduled banks.

BANKING SECTOR
Co-operative Banking in India :
The concept of co-operative banking in India was first introduced in the year 1904, when the first
Co—operative credit Societies Act was passed. The Act gave a legal status to the credit societies.
The first urban co-operative credit society was registered at Canjeevaram in Madras province. This
was followed by the registration of one society each in Dharwar District and Bangalore city. But the
operations of these societies were confined only to lending. The Co-operative Credit Societies Act.
1912. Expanded the original idea and made it possible for the establishment and organisation of
Central Co-operative Banks and unions of non-credit societies as well.
The development of urban co-operative credit societies did not receive much attention till
1915.when the Maclagan Committee referred to the potentialities for the organisation of such
societies as a means for training the upper and middle urban classes in ordinary banking principles.
The failure of several local joint stock banks in the country at that time gave sufficient impetus to the
growth of urban co-operative credit societies.
It was then realised that urban credit societies are the institutional agencies best suited for collecting
local savings and for offering relief to those who were in the clutches of money lenders, by providing
them with financial accommodation. The passing of the Bombay Co-operative Societies Act. 1925,
was another milestone in this respect. The economic boom created by the second world war provided
as stimulus to the growth of such societies in India.
They grew not only in number, but also in size, diversifying their activities
considerably. For the healthy promotion of Co-operative Banking in India, the Reserve Bank of
India, in 1952,started inspection of State and Central Co-operative Bank sand Central Land
Development Banks. But this was on a voluntary basis, where the institutions had agreed to allow the
Reserve Bank of India to inspect them. All this time, these institutions were registered and
administered under the Co-operative Societies Acts in force in various states and remained outside
the scope of Banking Companies Act which came into force in March 1949 because "co-operation"
was a state subject.
The rapid growth in the operations of Co-operative Banks made it necessary to bring them under the
purview of the Reserve Bank of India. In addition ,the statutory control by the Reserve Bank of India
was a pre-requisite for extending the benefits of Deposit Insurance Scheme to the Cooperative Banks.
In view of these considerations, the Banking Laws (applicable to co-operative societies) Act, 1965,
were enacted to extend the operations of certain provisions of the Reserve Bank of India Act. 1934,

BANKING SECTOR
and the Banking Companies Act, 1949, to Co-operative Banks. As a result, the Banking Company's
Act 1949 was renamed as the Act 1949. It came into force on 1st March 1966.Thus the enactment of
the Act has vested the Reserve Bank of India with various statutory powers of control and
supervision over the Co-operative Banks. But, the Registrar of Co-operative Societies of the state
concerned continues to be the authority to decide matters regarding incorporation and management of
these bank.
The Co-operative Banking System in India consists of 3 tiers in a state set up - State Apex Bank or
State Cooperative Bank, Central Banks or District Co-operative Banks and Primary Co-operative
Banks at the basic level. At present, State Co-operative Banks and Central Co-operative Banks are
under the National Bank for Agriculture and Rural Development (NABARD).
It is to be noted that all primary co-operative societies do not come under the Banking Regulation
Act and the direct purview of the Reserve Bank of India: Co-operative Societies at the primary level
can generally be classified into two viz: Agricultural societies and Non-agricultural Societies.
The Non-agricultural Societies, in turn can again be classified into two : Non-agricultural
Credit Societies and Non-agricultural, Non-credit Societies. of these, only those Non agricultural
Credit Societies which satisfy certain prescribed conditions and come under the Banking Regulation
Act. As on 30.6.1977, there were 1544 Co-operative Banks in India coming under)banking
Regulation Act.
2.2 EVOLUTION AND DEVELOPMENTS
The business of banking is in existence in one from other since the 12th century.
The first bankers in the modern sense were the Goldsmith who were accepted coins for storage from
the public. They also advanced money to merchant .They were carrying Some of the agency
functions of commissions .Thus the role of the Goldsmith became trading activity and gave births to
banks.
The word bank has been derived from the Latin word “BANCUS” or” BANQUE” which means
bench. The early bankers transacted their business of benches in market places. It was in 17 th century
that some sort of stability came in the formation of banks in 1609.Banks of England came in to
existence in 1694.a number of private banking companies also mushroomed around this time.with the
industrial revolution of 18th and 19th centuries. Banking attained a more significant place in area of

BANKING SECTOR
lending. Around the same period Indian witnessed the emergence of western type of banking
institution .
By 1913, there were 41private banks in India. As the bank grew assisting trade commerce and
industry ,its relation to society became important and more relevant .In fact even early 19 th century,
the closure of banks meets suspensions of almost all commercial activity. Today’s banks carry on
various service activities which cannot be strictly termed commercial like acting as trustees,
custodians lending’s to re positions. Perfectly out of social interest, involving in promotions of sports,
culture, health and education etc. As any other developed or developing country in the world India
has also been greatly benefited by this banking concept, in India’s economic and social scene
transport and healthcare, in every sphere we find the significant involvement of banks.

BANKING SECTOR
CHAPTER 3
COMPANY PROFILE

BANKING SECTOR
3.1 UNION BANK OF INDIA
Figure 1. Union bank of India
Union Bank of India completed 91 eventful years of service. Union Bank of India (UBI) was
registered on 11 November 1919 as a limited company in Mumbai and was inaugurated by Mahatma
Gandhi. At the time of India's Independence in 1947, UBI only had four branches – three in Mumbai
and one in Saurashtra, all concentrated in key trade centers. After Independence UBI accelerated its
growth and by the time the government nationalized it in 1969, it had grown to 240 branches in 28
states. Over these years, the bank cares for the common man. The bank was originally incorporated in
Mumbai as “The Union Bank of India Limited” under the Companies Act 1913, on November 11,
1919. After Nationalization, the name of the bank was changed to “Union Bank of India”. The Head
Office of the bank is situated at 239, Vidhan Bahavan Marg, Nariman point, Mumbai. On 30 August
2019, Finance Minister Nirmala Sitharaman announced that Andhra Bank and Corporation
Bank would be merged into Union Bank of India. The proposed merger would make Union Bank the
fifth largest public sector bank in the country with assets of ₹14.59 lakh crore (US$190 billion) and
9,609 branches
The bank is a public sector unit, with 60.85% share capital held by the Government
of India and the rest 39.15% of share capital is held by institutions, individuals and others. The Father
of the Nation Mahatma Gandhi opened this bank in 1921. The bank’s vision should be a shared
vision, i.e. the staff at all levels should actively involve in the transformation process. Union Bank of
India from the beginning had reached Himalayan heights, now ranked third among the nationalized
banks. Its branches spread all over the country and serving more than 26 million customers.
Union Bank of India has come a long way, fostering India’s dreams. For over nine
decades, Bank always put the customer before all else and made him the centre of our universe. The
bank has the habit of making profits consistently for the last 91 years. On the technology front the
bank has taken early initiatives and 100% of its branches are computerized.
Over the years, Union Bank of India have earned the reputation of being techno-sawy bank and is

BANKING SECTOR
one of the front runners amongst public sector bank in the field of technology.
The business of the bank is principally divided into three main areas: Corporate Financial Services,
Retail Financial Services and Agricultural Financial Services. Many innovative products are
developed using the technological plat - form. With its prudent management and good governance,
banks non- performing assets were comparatively lower. In the post-reforms period i.e. from 1993 to
1996,the bank had doubled itself in size. The first safe deposit vault was formally opened- j on 22
April 1939. The bank worked with Export Credit Guarantee Corporation of India in encouraging the
exporters to insure themselves against buyers default or exchange difficulties in the buyer’s country.
Union Bank of India was one of the earliest bank to obtain and operate whole turnover export finance
guarantee from ECGC. The bank had several strengths such as a strong branch network evenly
distributed, an extremely good work culture with a fairly standard of customer services and a history
of effective execution of projects.
Union Bank of India is one in top three nationalized banks in India, with global
presence.
> A financial supermarket, with leadership in identified spaces.

> A bank where customers come first.
> A top creator of shareholder wealth through focus on profitable growth.
> A young organization leveraging its experienced workforce.
> The most trusted brand, admired by all stakeholders.
> A socially responsible organization known for best corporate governance.
The Union Bank of India is the first bank to implement CBS at RRBs. CBS was implemented at two
branches of KashiGomti, SamyuktGrameen Bank and one branch of Reva Siddhi Grameen Bank. In
this initiative, the bank is providing implementation, training and hand holding support to the RRBs.
Bank is pioneer in extending high-tech products to customers at metro and rural centers. UBI
prepared its first business plan for 1972-73, aspects covered by the plan were deposit mobilization,
deployment of resources and advances to priority sector.
The plan was designed to cover at great length both personnel planning as well as profit planning .
A lot of thrust was given to loan recovery, especially recovery of irregular, bad and doubtful accounts
of the bank. Union Bank of India is firmly committed to consolidating and maintaining it identity as a
leading, innovative Commercial Bank, with a proactive approach to the changing needs of the
society.
BANKING SECTOR
This is because of number of products and services made available to its valuable customers. Today,
with its efficient, value-added services, sustained growth, consistent profitability and development of
new technologies, UBI has ensured complete customer delight, living up to its image of,
“GOOD PEOPLE TO BANK WITH”. The key to the success of any organization lies with its people.
Principles of Bank Management:
■ Transparency: Decision taking in all areas are conducted in a transparent

manner. The management at UBI are open, consistent and system driven.
■ Open door: Management is accessible at all times to people and receptive to

ideas and grievances.
■ Team work and cohesiveness: Collective decision taking and shared

responsibility are the need of the hour.
■ Loyalty to the institution: Management loyalty should solely with the institution.
They do not desire or demand any personal loyalty.
On the business and financial parameters management has drawn a 15- point
action plan to strengthen the position-10 of them will require field initiatives and 5
from corporate level.
Business Objectives of UNION BANK OF INDIA:
‘Customer Service: From customer satisfaction to customer delight Customer satisfaction can be
achieved through constant effort to bring the products and services. Customer delight is
completely the initiative of the individual employee of UBI. In today’s market place, customer
retention is the most crucial task. To meet the retail competition ensures to keep up to date and
competitive products like housing loan, car loan, utility payment service etc.
‘Profits: It is the quality and not the size of the balance sheet. Identify profit centers and give them
preferred attention in terms of infrastructure, skills, technology and decision making.
Technology: Technology is the driving force of today’s banking products like anywhere banking,
anytime banking, and funds transfer are to be taken care
Re-Setting Manpower: Extended hours of counter- service, relationship management etc. will
enable the customer to realize the untapped productivity of the bank.

BANKING SECTOR
Business Strategies: Low cost deposits: Bank’s portfolio of low cost deposits, i.e. savings and
current deposits by identifying ways to improve services to customers.
Fee Based Services: Fee based services will bring more income to the bank. They are to be marked
effectively and focused attention for rendering dependable and timely services.
Counter Service Efficiency: Counter service options like single window, tellers,
express DD counters and Tele- banking.
Union Bank of India reaches milestone of 3000 ATMs
Bank announced three remittance products on ATMs viz. NEFT, IMPS and Union e-Cash. All these
remittance products will support online transaction and provide SMS confirmation to the sender and
receiver.
National electronic funds transfer (NEFT) which hitherto is available through branches and internet is
now made available through ATMs also. NEFT transaction on ATM will reach destination bank
account through RBI system in straight through processing mode.
Interbank Mobile Payment Service (IMPS), is interbank funds transfer utility using mobile number
and MMID (Mobile Money Identifier). 34 Banks in India are offering this service through mobile
banking channel. The service for the first time is being introduced on ATMs. Customers will need to
input only mobile number and MMID of beneficiary to make an instant fund transfer to any bank.
Union e-Cash will enable remittances to anyone based only on mobile number alone. No account
number or bank/branch codes are necessary. The beneficiary can draw money from any of the Bank’s
ATMs using a pair of codes, generated during the transaction.
Bank also announced the facility of investments into its own mutual fund Union KBC AMC through
ATMs. Union Bank debit card holders having an existing folio with Union KBC MF, can now
conveniently make their mutual funds investments through ATM. They can also make redemption
requests.
Bank has also enabled self generation of ATM pin for customers. Customers of bank will be able to
generate the ATM PIN on their own, by calling the toll free IVR using their registered mobile
number in two easy steps. Hereafter Union Bank Customers need not wait for receiving the
regenerated PIN through PIN Mailers.

BANKING SECTOR
Bank also unveiled Student Combo Cards. These cards serve dual purpose of Debit card as well as
Identity cards. Students can use the cards at ATMs for drawing cash, for purchases at merchant
establishments and internet, as Identity cards in their college and also as access cards for the library.
At this occasion, bank also announced its tie up with M/s. Loyalty Rewards for offering reward
points on card transactions at merchant establishments and internet. Bank’s 8 million debit card
holders will now have added incentives for use of their debit/credit cards for purchases and e-
commerce. They will be able to redeem online the reward points earned for attractive gifts.
Ministry of External Affairs has authorized TCS to remodel and develop the existing passport offices
into Passport SewaKendras (PSKs). These PSKs will use state of art technology and infrastructure to
provide better ambience and service to the Public. Bank announced a tie up with TCS for
establishing ATMs at all Passport SevaKendras in India. Citizens visiting the PSKs in India will have
the facilities of ATMs and Value added services at all locations.
The launch of multiple facilities through ATM is a part of bank’s current initiative aimed at
Customer Service Excellence and superior customer experience across all its channels.
About IT Migration
Up gradation will not lead to any change in bank account number. They may also continue to
useexisting debit/credit card (including PIN) and cheque book.
However, the following changes will impact customer account:
(a) Change in Branch's IFSC and MICR Code On April 1, 2020, erst-Corporation Bank and
erst-Andhra Bank were amalgamated into Union Bank of India.
Now, in order to provide customers with a seamless banking experience, IT systems of these two
banks will be upgraded over multiple phases.
Customers are requested to note that a few branches of erst-Corporation Bank will be upgraded w.e.f.
October 25, 2020.
Not all branches would not be undergoing this up gradation on October 25. Please referto the list of
branches undergoing IT up gradation in the FAQ section.
Customers are requested to note that IT
(b) Change in Internet Banking & Mobile Banking.

BANKING SECTOR
Organization of Union Bank of India
Figure 2 Organisation Structure of Union bank of India
Awards and Commendations of UBI:
Union Bank of India is the proud recipient of many awards and recognition for its services.
a. On 28th October, 2010 the Dale Carnegie Leadership award for the bank's transformation
initiatives undertaken through project NavNirman from Dale Carnegie Training.
b. In 2010 Association of Business Communicators of India (ABCI) Gold award for marketing and
brand communications. This award is in recognition of the transformation process undertaken by the
bank from ABCI.
c. The prestigious Banking Technology awards 2009 for best user of business intelligence from IBA-
IFCI.

BANKING SECTOR
d. The prestigious Skoch-Challenger award 2009 for excellence in capacity building through
innovative concept of 'Village Knowledge Centre' as part of financial inclusion initiatives.
e. In 2008-09 National awards for excellence in lending to micro enterprises.
f. In 1972-1973 excellent performance award on the exports front by the Ministry of Commerce,
Government of India. That was the first award received by the bank from an outside agency.
g. In 1985 the bank was awarded first prize in region ‘B’, second prize in region’s and fourth prize in
region ‘A’ by the Reserve Bank of India for successfully implementation of the official language
policy of the Government in the year 1984.
h. Prestigious Golden Peacock National Training award 1998 for the best training provider in the
country by the institute of directors (2 times).
i. Reserve Bank of India Raja bhasha Shield for the year 1995 to 1996 and 18offices of the bank were
honoured for better implementation of official language policy in their respective Regions.
j. Corporate Excellence award for reputation on 26th June, 2006 from Rotary Internation
Information Technology of the Bank:
In consonance with the bank’s long term IT strategy adopted in the year 2000
to address the rapidly changing customer expectations and competition from new generation banks,
the bank has successfully implemented CBS in all branches.
A part the migration of all branches to CBS, centralized MIS and other initiatives were developed
and implemented. To provide enterprise- wise comprehensive software solution for lending
processes, transactions and simultaneously paying heed and attention to important areas such as
rating, monitoring, NPA management and MIS in an integrated manner, Lending Automation
Solution (LAS) was implemented at all of the bank.
The bank has implemented Information Security Management (ISM) system for the data centre,
which is ISO 2001; 2005 certified. This certification is the highest standard of information security

BANKING SECTOR
for data centres. In addition to Centralized Operating System (COP), patch management and Anti-
virus management has been implemented to ensure that individual personal computers (PCs) in the
bank’s network are not compromised. The Network Admission Control (NAC) is in place to monitor
isolate and repair PCs that pose security threat to the bank’s network.
The bank participated in the prestigious financial insights innovation awards competition
conducted by Asian financial services congress, Singapore and was awarded the Special Citation for
its 100% Core Banking Initiative.
COMPONENTS OF INCOME AND EXPENDITURE
Income
Interest Earned
Interest earned consists of interest on advances and bills, income on investments, interest on balances
with RBI and other inter-bank funds and other interest earned. Income from investments consists of
interest on investments in India and outside India. Our securities portfolio consists primarily of
Government securities, debentures and bonds, equity shares, mutual fund units, certificates of
deposit, commercial paper and security receipts. We also have investments in our subsidiaries and
joint ventures. On the balances that we maintain with RBI to meet our cash reserve requirements, we
do not receive any interest.
Other Income
Our non-interest income consists principally of (i) commission, exchange and brokerage, (ii) net
profit on the sale of investments, (iii) net profit (loss) on the sale of land, buildings and other assets
(iv) net profit on foreign exchange transactions, (v) miscellaneous income, which primarily includes
recoveries in assets written off.
Expenditure
Interest Expended
Our interest expended include interest on deposits, interest on RBI and inter-bank borrowings and
other interest/ discount such as interest on subordinated debt/ capital bonds, discount on CBLO
borrowings, penal interest paid, interest for delayed payments and other borrowings from other
financial institutions.

BANKING SECTOR
Operating Expenses
Our operating expenses include, among others, (i) payments to and provision for employees, (ii)
rent, taxes and lighting, (iii) depreciation on our Bank’s property, (iv) insurance, (v) repairs and
maintenance, (vi) postage, telegrams, telephones, etc., (vii) advertisement and publicity (viii) printing
and stationery, and (ix) auditors’ fee and expenses.
Provisions and Contingencies (net)
Our provisions and contingencies consist of (i) provision made towards taxation, (ii) provision
towards NPAs, (iii) provision for depreciation in the value of investments, (iv) provision towards
standard assets, and (viii) other provisions which includes provisions and contingencies towards
restructured advances and towards shifting loss.
Interest rates
In interest rates affect the interest rates we charge on our interest-earning assets and that we pay on
our interest-bearing liabilities Changes. Indian banks including us follow the direction of interest
rates set by the RBI and adjust both deposit rates and lending rates upwards or downwards
accordingly. Decreases in the RBI policy rates would prompt Indian banks to re-examine their
lending rates. Adverse changes in prevailing interest rates may result in a decline in net interest
income due to increase in our costs of funds or deposits without a corresponding increase in our yield
on assets. Interest rates are highly sensitive to many external factors beyond our control, including
growth rates in the economy, inflation, money supply, RBI’s monetary policies, deregulation of the
financial sector in India, domestic and international economic and political conditions and other
factors.
Allocation of funds
In recent years, there has been increased demand for funding across many sectors of the Indian
economy. The growth of the Indian economy has enabled us to allocate our funds from Government
securities to advances, which offer us higher returns subject to maintaining minimum statutory
requirements. Further, we diversify our net interest income portfolio by lending to retail customers,
large corporate and small and medium enterprises across various industry segments. If the volume of
the our loans decreases due to a general slowdown in the economy, increased competition or other

BANKING SECTOR
factors, our net interest income will decrease as well. In addition, we seek to allocate our funds in an
optimum manner at any point of time depending on our liquidity and prevailing interest rates.
Change is truly the only constant. Banks, in particular, have been following that rule in recent times.
Bank of Baroda got itself a new logo and brand ambassador a few years ago. In recent times, UTI
Bank was renamed Axis Bank. Canara Bank, too, has revamped itself. Adding
Inclusive Banking and Union Bank of India:
Inclusive growth has attained a priority in the government’s agenda. Though

the inclusive growth is a broader agenda and has many facets, financial inclusion is the most
important starting point. Unless banks are capable of bringing the vast section of excluded segment to
the financial system, other benefits cannot also percolate down. Thus inclusive banking emerged as
the dominance concern of the government. In keeping the directions of RBI, Union Bank of India has
taken the following initiatives:
1. Introduction of “No- Frills” Accounts:
To achieve greater financial inclusion, the bank is making available a basic banking
“No Frills” account either with nil balance or very low minimum balance.
2. Introduction of General Credit Card / Bhumeen Green Card (GCC):
The bank has introduced General Credit Card Scheme for the customers in rural and
semi-urban areas. These cards will operate like Kisan Credit Cards and hassle free credit. Here,
facilities are provided without insistence on security. To provide easy credit facilities to tenant
farmers, oral lessees, sharecroppers, landless labourers, the bank has also introduced Bhumeen Green
Card. These BGC facilities for those farmers who are unable to give any tangible security in the
absence of any title of land on which they raise crops. To inculcate the habit of group based financing
to tenant farmers, the bank is financing through the mechanism of Joint Liability Groups.
3. Business Facilitators and Correspondents Model:
To ensure greater financial inclusion, the bank is appointing business facilitators and
business correspondents to offer services at the doorsteps of the customers. This results in reduction

BANKING SECTOR
of transaction cost, making outreach a viable business proposition. The primary school teachers, ex-
army personnel, heads of SHG shaving good track record are preferred to be engaged as business
facilitators. The bank has also made tie-ups with various agencies as business facilitators or business
correspondents.
4. Formation of Farmers Club:
Farmers' club is an initiative by Union Bank of India to encourage farmers in villages.

This initiative will help in an overall adoption of better farming practices. The main objective of this
is to provide a platform to the farmers to solve their problems themselves. Another objective of this is
to adopt better farming practices through dissemination of new practices and improvement of existing
practices. Any farmer can become a member of this club. These clubs are managed by the fanners
themselves with the help of the Bank's rural branches. Farmers clubs are formed for the development
of the farmers through credit, technology transfer, awareness and capacity building. With a view to
retain the existing clients there is a need for strengthening bank customer relationship and for which
the bank is encouraging formation of farmers club.
5. 100% Banking Habit Villages:
Bringing more number of villages as 100% banking habit villages is to best strengthening
by giving them access to banking services at least through opening a savings bank account to
inculcate the banking habit in rural villages. This offers the bank an opportunity to tap the large
untapped rural market available for financial services. To provide the banking services to each and
every household in the villages, the bank has initiated the exercise of making the banks command
area villages, as100% banking habit villages.
Training System of UBI:
The training is the core of human capital. Traditional banking skills should be converted into
new competencies so as to remain relevant. The starting point of modem training system in banks
requires identifying the various competencies for operations, sales and services, customer service,
newer areas like risk management ,project finance, financial inclusion etc.
The design and execution of training depend upon the competencies mapped. Training plays a
vital role in enabling staff members at all levels to prepare themselves to meet the challenges of today
and tomorrow. Training helps staff members to refresh knowledge and learn new skills, training can
be effective only if it is integrated with the day to day functioning of the bank.

BANKING SECTOR
Training system of the bank started to make an impact and make its presence felt even beyond the
bank, only after the establishment of the staff college at Bangalore. There are 7 staff training centers
located all over India- Lucknow (Uttar Pradesh), Gurgaon (Delhi), Ahmadabad (Gujarat), Powai
(Maharashtra), Aluva (Kerala), Bhubaneswar (Orissa) and Bhopal (Madhya Pradesh),.
The Mother college eat Bangalore oversees the functioning of the activities at all these centers. All
the centers put together provide a training capacity of 11 channels to train 290 persons on any given
day. At staff college Bangalore, this capacity scales up to 16 channels and421 persons per day.
Training in Union Bank is a bank-wide responsibility managed centrally by the Apex Unit - Staff
College, Bangalore - in close consultation with business units. A high-powered committee of top
executives i.e. Chairman, Executive Directors, and General Managers - meets once in six months to
review the training activities and provides directions for the way forward. The Principal of staff
college, Bangalore, is the member-secretary of this committee. The training in Union Bank has a
history of 5 decades.
As early as 1962, the bank's staff college was established at Bombay to take care of the training
requirements. Initially there was only one channel. Now there are 19 channels with a capacity to train
500 persons at a time.
Corporate Social Responsibility (CSR):
Corporate social responsibility (CSR) is directly linked to the core business of the bank. It
encompasses as to how the bank adds social, environmental and economic value in all its activities to
make a positive, sustainable impact on both the society and the business. Banks whose corporate
office was inaugurated by Mahatma Gandhi, bank has been proudly following his footsteps in serving
the society.
The Bank showed its social concerns in many ways:
1. Donated Rs 6 lakh to Cochin child foundation for assistance of under privileged children.
2. Donated Rs 11 lakh to Ramakrishna Mission, Nagpur for building with a Vivekananda
Vidhyarthi Bhavan
3. Rs20 lakh to Bhagwan Mahaveer Viklang Sahayata Samithi for providing artificial limbs
to3,000physically challenged people.
4. The bank gave Rs 50 lakh each to the states of Karnataka and Andhra Pradesh for helping flood
victims when that assistance was desperately needed.

BANKING SECTOR
5. The Union Bank social foundation trust disbursed Rs 67.77 lakh as grants to its Union Adarsh
Gram for carrying out various infrastructural development all activities for the up liftmen in the
lifestyle of villages and family. It approved the adoption of 50 schools in its lead districts to fulfill the
educational needs of the children.
Vision
The main vision of union bank of India is to become the bank of first choice in its chosen areas by
building beneficial and lasting relationship with customers through a process of continuous
improvement.
Mission
The main of union bank of India is to customer centric organization known for its differentiated
customer service. This bank is to offer a comprehensive range of products to meet all financial needs
of customers. To be a top creator of shareholder wealth through focus on profitable growth.

BANKING SECTOR
3.2 HDFC BANK Limited
Figure 3 HDFC bank limited
HDFC Bank was incorporated in August 1994. As of September 30, 2019, the Bank had a
nationwide distribution network 5,314 branches and 13,514 ATM's in 2,768 cities/towns.
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an
'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as
part of RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in
August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India.
HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.
It has a base of 1,04,154 permanent employees as of 30 June 2019. HDFC Bank is India’s largest
private sector bank by assets. It is the largest bank in India by market capitalisation as of March
2020. Its first corporate office and full-service branch at Sandoz House, Worli were inaugurated
the then Union Finance Minister, Manmohan Singh.
As of 30 June 2019, the Bank’s distribution network was at 5500 branches across 2,764 cities. The
bank also installed 430000 POS terminals and issued 23570000 debt cards and 12 million credit in
Financial Year 2020
PRODUCTS AND SERVICE
HDFC Bank provides a number of products and services including wholesale banking, treasury, auto
loans , two-wheeler loans, personal loans, loans against property, consumer durable loan, lifestyle
loan and credit cards. Along with this various digital products are Payzapp and smartBUY

BANKING SECTOR
Personal Banking
 Accounts & Deposits

 Loans
 Cards
 Forex card
 Investments & Insurance
NRI Banking
 Accounts & Deposits
 Remittances
 Investments & Insurance Loans Payment Services
Wholesale Banking
 Corporate
 Small & Medium Enterprises
 Financial Institutions & Trusts
 Government Sector
Personal Banking
The personal banking service can again be sub-divided into the heads:
1. Accounts and Deposits: The bank offers different kinds of accounts to be opened with them like
current accounts, de-mat or dematerialized accounts, fixed deposits, recurring deposits, safety
lockers,salary accounts and savings accounts.
2. Cards: They have got credit, debit as well as prepaid cards of varied advantages, which are widely
used by people.
3. Insurance and Investment: This service offered by the bank includes mutual funds, life
insurances, tax saving options, general insurances, health insurances, bonds etc.
4. Loans: HDFC Bank provides loans for multi categories such as car (New and used), commercial
vehicle, education, gold, home, personal, retail-agriculture, tractor, two wheeler and many more.
Apart from these major services, personal banking of this bank includes many other services, some of
which are mentioned below:
1. ATM
2. Forex Services
3. Insta Alerts

BANKING SECTOR
4. Mobile Banking
5. Net Banking
6. Phone Banking
7.Wholesale Banking
This is mainly meant for banking transactions carried on by the different government sectors,
medium and small sized enterprises, corporate companies and varied other financial trusts and
institutions. Investment banking is even a part of wholesale banking.
HDFC Bank Mortgage services

Housing Development Finance Corporation (HDFC) Bank Mortgage Service is leader in the Indian
mortgage market at present with the State Bank of India (SBI) following the lead. The total worth of
the India Mortgage Market presently is nearly US $ 18 billion. The gross domestic product to
mortgage ratio in India is very low in comparison to other developed countries. The ratio in the
foreign countries ranges from 25% to 60% whereas in India the ratio is 2.5%. The India Mortgage
Market is showing fast growth in the past few years. The foremost players in this sector are the
finance corporation but presently the commercial banks are also started playing an important role in
the development and growth of the India Mortgage Market.
Objectives of the Mortgage Service

1.To provide the customer with the best possible services
2.To focus on cost management and management of gains
3. To put emphasize on the quality of the credit and advance in form of mortgage loan
salient features of the of HDFC Bank Mortgage service
 The mortgage based loans provided in order to acquire real estate for commercial purposes,
and as working capital
 The funding is done up to 3/4 of the cost of the project and the balance is the
customerscontribution
 The documentation is minimal
 The customer has to provide collateral securities against the loan
The main purpose of HDFC Bank Mortgage service is to provide easy access to refinancing,
renovating or owning commercial real estate through the disbursement of loans against mortgages.
The HDFC Bank Mortgage service also provide mortgage based loans as working capital. The HDFC
Bank Mortgage service is provided against presentable security such as residential house or
apartment, industrial property, urban commercial complex, possessed in the name of the receiver of

BANKING SECTOR
the loan. The security such as rented house can be accepted if the same property is on a lease and the
person should also have the authority to collect the rent under the power of attorney.
HDFC Bank Mortgage services
 Debt consolidation service
 Home equity loans
 New home loans
 Latest mortgage quotes
 Mortgage refinancing
 Real estate lending
Mortgage Refinancing scheme

Refinancing scheme allows the customers to take out a second mortgage in order to repay the first
mortgage. This also provides the customer with the advantage of low interest rates. The benefits of
refinancing are
 Reduction in the sum of the monthly payments of the customer
 Reduction in the total sum of interest customer pays throughout his life for his loan
 Reduction in the term period of the loans so the customer may payoff their loan faster.
HDFC Personal Loans

HDFC Personal Loans have been designed by HDFC Bank to suit personal requirements of
individuals like marriage, holiday, education, purchase of any expensive commodity or any such
anticipated or unanticipated monetary involvement.
HDFC Bank, India, announced the arrival of the new generation, technology driven commercial
banks in India. HDFC Bank in India was set up in August 1994 with the approval of Reserve Bank of
India. The bank was promoted by Housing Development Finance Corporation Limited, a premier
housing finance company of India (set up in 1977).
Benefits of HDFC Personal Loans

1. Loans up to Rupees one million for any purpose.
2. Flexible Repayment Options ranging from 12 to 48 months.
3.Repayment through Easy Monthly Installments (EMIs).
4. Low Rate of Interest
5. Hassle free loans - No guarantor/security/collateral required

BANKING SECTOR
6. Speedy loan approval

7. Service at the customer's doorstep
Amalgamation of Times Bank &CBoP with HDFC Bank
On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC
Bank was formally approved by Reserve Bank of India to complete the statutory and regulatory
approval process. As per the scheme of amalgamation, shareholders of CBoP received 1 share of
HDFC Bank for every 29 shares of CBoP.
The amalgamation added significant value to HDFC Bank in terms of increased branch network,
geographic reach, and customer base, and a bigger pool of skilled manpower.
In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private
sector bank promoted by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank
Ltd., effective February 26, 2000. This was the first merger of two private banks in the New
Generation Private Sector Banks. As per the scheme of amalgamation approved by the shareholders
of both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC
Bank for every 5.75 shares of Times Bank
INVESTMENTS
In March 2020 , HDFC (Parent company of HDFC BANK) made an investment of Rs 1,000 cr. in
Yes bank. As pre the scheme of reconstruction of yes Bank , 75% of the total investment by the
corporation would be locked in for three years . On14 March , yes Bank allotted 100 cr. shares of the
face value of Rs 2 each for consideration of Rs 10 per share (including Rs 8 premium) to the
corporation aggregating to 7.97 percent of the post issue equality share capital of Yes bank.
CORPORATE SOCIAL RESPONSIBILITY
Building sustainable communities especially in rural India is a

core CSR objective of the Bank. Your Bank has identified Integrated Rural Development as a vehicle
for socio–economic change and community building. This encompasses Education, Sanitation, Skill
Development and Livelihood Creation. Within these broad areas, particular focus is to impart

BANKING SECTOR
financial literacy / inclusion and sanitation. The recipients of these interventions are primarily women
from the marginal sections of society
HDFC Bank's Parivartan initiative has spent Rs 634.91 cr. in Financial Year 2020-21
CONTROVERSIES
On 29 January 2020, Reserve Bank of India imposes monetary penalty on HDFC Bank Limited for
failure to undertake on-going due diligence in case of 39 current accounts opened for bidding in the
initial public offer. A HDFC bank manager was arrested for aRs 59.41 lakh fraud in Odisha
Altico Capital and Dubai's Mashreq Bank have approached the Reserve Bank of India, accusing
HDFC Bank of violating regulatory provisions by debiting part of the funds the company had raised
through external commercial borrowing (ECB) and parked at the Indian bank. The local bank's
decision to transfer money from the account may be a violation of the RBI's end-use rule
Promoter
HDFC is India's premier housing finance company and enjoys an impeccable track record in India as
well as in international markets. Since its inception in 1977, the Corporation has maintained a
consistent and healthy growth in its operations to remain the market leader in mortgages. Its
outstanding loan portfolio covers well over a million dwelling units.
HDFC has developed significant expertise in retail mortgage loans to different

market segments and also has a large corporate client base for its housing related credit facilities.
With its experience in the financial markets, strong market reputation, large shareholder base and
unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian
environment.
Business Focus
HDFC Bank’s mission is to be a World Class Indian Bank. The objective is to build sound customer
franchises across distinct businesses so as to be the preferred provider of banking services for target
retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent
with the bank’s risk appetite.

BANKING SECTOR
The bank is committed to maintain the highest level of ethical standards,

professional integrity, corporate governance and regulatory compliance. HDFC Bank’s business
philosophy is based on five core values: Operational Excellence, Customer Focus, Product
Leadership, People and Sustainability.
Capital Structure
As on 30-June-2019, the authorized share capital of the Bank is Rs. 650 crore. The paid-up share
capital of the Bank as on the said date is Rs. 546,56,24,542 /- which is comprising of 273,28,12,271
equity shares of the face value of Rs 2/- each. The HDFC Group holds 21.31% of the Bank's equity
and about 18.81% of the equity is held by the ADS / GDR Depositories (in respect of the bank's
American Depository Shares (ADS) and Global Depository Receipts (GDR) Issues). 31.37% of the
equity is held by Foreign Institutional Investors (FIIs) and the Bank has 6,53,843 shareholders.
The shares are listed on the BSE Limited and The National Stock Exchange of
India Limited. The Bank's American Depository Shares (ADS) are listed on the New York Stock
Exchange (NYSE) under the symbol 'HDB' and the Bank's Global Depository Receipts (GDRs) are
listed on Luxembourg Stock Exchange under ISIN No US40415F2002.
Distribution Network
HDFC Bank is headquartered in Mumbai. As of September 30, 2019, the
Bank's distribution network was at 5,314 branches across 2,768 cities. All branches are linked online
on a real-time basis. Customers across India are also serviced through multiple delivery channels
such as Phone Banking, Net Banking, Mobile Banking, and SMS based banking. The Bank's
expansion plans take into account the need to have a presence in all major industrial and commercial
centers, where its corporate customers are located, as well as the need to build a strong retail
customer base for both deposits and loan products. Being a clearing / settlement bank to various
leading stock exchanges, the Bank has branches in centres where the NSE / BSE have a strong and
active member base. The Bank also has a network of 13,514 ATMs across India. HDFC Bank's ATM
network can be accessed by all domestic and international Visa / MasterCard, Visa Electron /
Maestro, Plus / Cirrus and American Express Credit / Charge cardholders.

BANKING SECTOR
Management
HDFC Bank's Board of Directors comprises eminent individuals with a wealth of experience in
public policy, administration, industry and commercial banking. Senior executives representing
HDFC Ltd. are also on the Board.
Various businesses and functions in the Bank are headed by senior executives with work experience
in India and abroad. They report to the Managing Director. The Bank is focused on recruiting and
retaining the best talent in the industry as it believes that its people are a competitive strength.
Technology
HDFC Bank operates in a highly automated environment in terms of information technology and
communication systems. All the bank’s branches have online connectivity, which enables the bank to
offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail
customers through the branch network and Automated Teller Machines (ATMs).
The Bank has made substantial efforts and investments in acquiring the best technology available
internationally, to build the infrastructure for a world class bank. In terms of core banking software,
the Corporate Banking business is supported by Flex cube, while the Retail Banking business by
Finware, both from i-flex Solutions Ltd. The systems are open, scaleable and web-enabled. The Bank
has prioritized its engagement in technology and the internet as one of its key goals and has already
made significant progress in web-enabling its core businesses. In each of its businesses, the Bank has
succeeded in leveraging its market position, expertise and technology to create a competitive
advantage and build market share.
Businesses
HDFC Bank caters to a wide range of banking services covering commercial and investment banking
on the wholesale side and transactional / branch banking on the retail side. The bank has three key
business segments
Wholesale Banking
The Bank’s target market is primarily large, blue-chip manufacturing companies in the Indian
corporate sector and to a lesser extent, small & mid-sized corporates and agri-based businesses. For

BANKING SECTOR
these customers, the Bank provides a wide range of commercial and transactional banking services,
including working capital finance, trade services, transactional services, cash management, etc.
The bank is also a leading provider of structured solutions, which combine cash management
services with vendor and distributor finance for facilitating superior supply chain management for its
corporate customers. Based on its superior product delivery / service levels and strong customer
orientation, the Bank has made significant inroads into the banking consortia of a number of leading
Indian corporates including multinationals, companies from the domestic business houses and prime
public sector companies.
It is recognised as a leading provider of cash management and transactional banking

solutions to corporate customers, mutual funds, stock exchange members and banks.
Treasury
Within this business, the bank has three main product areas - Foreign Exchange and Derivatives,
Local Currency Money Market & Debt Securities, and Equities. With the liberalisation of the
financial markets in India, corporate need more sophisticated risk management information, advice
and product structures. These and fine pricing on various treasury products are provided through the
bank’s Treasury team. To comply with statutory reserve requirements, the bank is required to hold
25% of its deposits in government securities. The Treasury business is responsible for managing the
returns and market risk on this investment portfolio.
Retail Banking
The objective of the Retail Bank is to provide its target market customers a full range of financial
products and banking services, giving the customer a one-stop window for all his/her banking
requirements.
The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the
Investment Advisory Services programs have been designed keeping in mind needs of customers
who seek distinct financial solutions, information and advice on various investment avenues. The
Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable
securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider of Depository
Participant (DP) services for retail customers, providing customers the facility to hold their
investments in electronic form.
HDFC Bank was the first bank in India to launch an International Debit Card in association with
VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank launched its

BANKING SECTOR
credit card business in late 2001. By March 2015, the bank had a total card base (debit and credit
cards) of over 25 million. The Bank is also one of the leading players in the “merchant acquiring”
business with over 235,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at
merchant establishments. The Bank is well positioned as a leader in various net based B2C
opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bill
Payments.
Awards and recognition

2020
 India's Best Bank : Euro money Awards
2019
 Best Bank: New Private Sector - FE Best Bank awards

 Winner in Innovation and Inclusiveness in Priority Sector Lending - 11th Inclusive Finance India
Awards (IFI) 2019
 Ranked 1st in 2019 BrandZ Top 75 Most Valuable Indian Brands HDFC Bank was featured for
the 6th consecutive year.
 Among The Most Honored Company List, Institutional Investor All-Asia (ex-Japan) Executive
Team 2019 survey[
 India’s Best Bank, Euro money Awards for Excellence 2019
 Bank of the Year and Best Large Bank, Business Today – Money Today Financial Awards 2019
 Best Bank in India 2019, by Global magazine Finance Asia.
 Ranked 60th in 2019 BrandZ Top 100 Most Valuable Global Brands HDFC Bank was featured
BrandZ Top 100 Most Valuable Global Brands 2019 for the 5th consecutive year. The Bank's
brand value has gone up from $20.87 billion in 2018 to $22.70 billion in 2019.
 Best Large Bank & Fastest Growing Large Bank in 2019, by Business World Magna Awards
2016
 Best Banking Performer, India in 2016 by Global Brands Magazine Award.

 Best Performing Branch in Microfinance among private sector banks by NABARD, 2016, Award
for Best Performance in Microfinance

BANKING SECTOR
 KPMG study of India's Best Banks, Bank of the year & best digital banking initiative award 2016
 BrandZ Rankings, Most Valued brand in India for third successive year
 Finance Asia poll on Asia's Best Companies 2015, Best managed public company - India
 J. P. Morgan Quality Recognition Award, Best in class straight through processing rate.
ORGANISATIONAL STRUCTURE
Figure 4 Organisation structure of HDFC bank

BANKING SECTOR
3.3 KSCB (KERALA STATE CO-OPERATIVE BANK)
Figure 5 KSCB
The beginning of the Kerala State Co-operative Bank Ltd dates back to early 20th century. In the
year 1914, the then Maharaja of Travancore, His Highness Sree Moolam Thirunal Ramavarma,
through a proclamation introduced “The Travancore Co-operative Societies Regulation Act”. The
Bank was registered in the year 1915 as the “Trivandrum Central Co-operative Bank” which was the
first Cooperative Society to be formed in the former princely State of Travancore . It started
functioning as a Bank on January 18, 1916 with a share capital of Rs.1,00,000 /- made up of 1000
shares of Rs.100/- each. In the beginning there were 16 Co-operative Societies and 69 individuals as
its members.
In 1943, it was converted into the Travancore Central Co-operative Bank, giving it a federal
character of the Travancore State. In the wake of Indian Independence and the reorganization of
States, the Bank was re-organized as a State Co-operative Bank for Travancore-Cochin State in the
year 1954. In the year 1956, the reorganization of Indian States took place and the State of ‘Kerala’
was formed. The Bank was then elevated to the position of State Co-operative Bank for the State of
Kerala and it became “The Kerala State Co-operative Bank Ltd.” At that time, the Bank had a
working capital of Rs.42.90 lakhs, deposit of Rs.30.33 lakhs and loans and advances to the tune of
Rs.21.66 lakhs. The Kerala State Co-operative Bank was registered and retained as an Apex Bank in
which only Co-operative Banks approved by the Registrar of Co-operative Societies were admitted as
members. Since then the Trivandrum District Co-operative Bank and the Government of Kerala were
the only members. Subsequently after the formation of the Districts, District Co-operative Banks
were registered in each District and all the District Co-operative Banks were admitted as members.
In July 1966, the Kerala State Co-operative Bank Ltd was included in the 2nd Schedule of
the Reserve Bank of India Act 1934 . The Reserve Bank of India as per the provisions contained in
the 2nd Schedule of the Act approved the Bank as a Scheduled State Co-operative Bank. The Kerala

BANKING SECTOR
State Co-operative Bank Ltd is the first Scheduled Apex Co-operative Bank in the Co-operative
Banking Sector in the country. In 1972 it was issued a license to carry on the business of Banking
under Section 22 of the Banking Regulation Act ,1966. The Bank is a financing bank as defined in
the Kerala Co-operative Societies Act ,1969 is a Co-operative Society having its members only other
Co-operative Societies. The bank is doing the business of banking within the frame work of
rules/regulations/guidelines stipulated by Reserve Bank of India and National Bank for Agricultural
and Rural Development (NABARD).
The Government of Kerala has taken a policy decision to convert the present three tier short term co-
operative structure within the state into a two tier structure. The Reserve Bank of India had conveyed
their consent for the amalgamation of 13 District Co-operative Banks who approved scheme of
amalgamation with Kerala State Co-operative Bank. The Registrar of Co-operative Societies has
approved the resolution passed by 13 District Co-operative Banks on 07-03-2019 to transfer its assets
and liabilities in whole to Kerala State Co-operative Bank and issued order for amalgamation of 13
District Co-operative Bank with Kerala state Co-operative Bank, based on the resolutions passed by
General Bodies of respective District Co-operative Banks as provided under section 14A of KCS Act.
Accordingly from 29-11-2019 onwards, Kerala State Co-operative Bank and 13 District Co-operative
Banks are functioning as a single entity with Brand Name “Kerala Bank.
GENERAL BODY
The General Body of the Bank shall consist of;
i. Delegates of the A class members (PACS & UCBs)

ii. Ex-officio Directors
iii. Directors nominated by the Government
THE BOARD OF DIRECTORS
The Board of Directors of the Bank shall consist of twenty one members, of which fifteen
membersare elected by the ‘A’ Class members of the Bank. The classification of Members of the
Board of Directors are as follows;

BANKING SECTOR
(a) Fourteen members, one from each district representing the PACS, elected by the A Class
membersof the Bank from among the delegates of PACS, categorized as follows:
i. General - 10 members
ii. Women (Reservation) - 3 members
iii. SC /ST (Reservation) - 1 member
(b)Four ex-officio members ;

i. Secretary, Co-operation, Govt. of Kerala.
ii. Registrar of Cooperative Societies.
iii. Chief General Manager, NABARD, Regional Office, Kerala and
iv. MD, Kerala State Cooperative Bank Ltd.
(c)Apart from the 21 members,
i. One member who shall be invited by the Director Board to represent the non-credit societies for a
period of one year on rotation basis from among the Apex Cooperative Federations of the State. Such
“invitee” shall not have any voting right.
ii. The Government may nominate two members as per section 31 of KCS Act.
BOARD OF MANAGEMENT (BoM)
A Board of Management shall be constituted by the Board of Directors as per the guidelines of RBI.
There shall be a Board of Management consisting of not more than 12 members.
(i) At least fifty per cent of the members of BoM shall consist of persons having special knowledge
or practical experience in respect of one or more of the following matters, namely:-
(i) accountancy, (ii) agriculture and rural economy, (iii) banking, (iv) co-operation, (v) economics,
(vi) finance, (vii) law, (viii) small scale industry, (ix) Information Technology (x) any other matter
the special knowledge of which would be useful to the Bank.
(ii) BoM shall be constituted from the elected members of the Board of Directors provided they meet
the criteria specified. However, not more than 50 per cent of the BoM members shall be from BoD.

BANKING SECTOR
Under all circumstances, BoM shall have at least two members from outside the BoD.The Board of
Management may hold meeting at such periodicity as deemed necessary. The Chairman of BoM shall
be selected from the BoM by the BoD. The independent professional members of Board of
Management will be paid sitting fees/allowances as fixed from time to time by the Board of Directors
in accordance with the RBI guidelines. The tenure of the Board of Management shall be co-terminus
with the tenure of Board of Directors.
PRODUCT & SERVICES
LOANS
The Bank has several loans scheme suited to the needs of the societies as well as Individuals, The
Individual loan schemes are,
a) Gold loan
Attractive scheme for gold loan is introduced by the bank customers for the period of one year
duration. Gold loans are provided on the security of Ornaments
b)Consumer Loans
The maximum period for the repayment of such loan shall not exceed 60month and the maximum
amount shall not exceed Rs 50,000/- The said loanissued against the security of landed property or
salary certificate of Govt.employee.
c)Consumption loan
Consumer loan shall be sanctioned subject to the special sub rulesframed by the managing committee
and approved by the registrar of co-operative bank. The minimum amount of loan is above one lakhs
maximum is Twenty five lakhs. The duration is 120 months.
d)Housing loan
The period of repayment of these loans shall not exceed 15 years and the maximum amount shall not
exceed 25 lacs. The fund of loans shall be granted only for the following purpose.
1.Construction and repairs of residential building

BANKING SECTOR
e)Mortage loan
Mortage loan shall be sanctioned subject to the special sub rules framed by the managing committee
and approved by the registrar of co-operative societies. The minimum amount of loan is above one
lakh, maximum is forty lakhs maximum. The duration is 120 month Purchase of land and building
DEPOSITS
The committee of management shall have the power to fix the rates of interest to be allowed on
deposits provided that rates of interest to be allowed at anytime shall not exceed the rates prescribed
by the registrar of co-operative bank
Deposit may be of 3 kinds
1. Fixed deposits
2. Recurring deposits
3. Saving deposits
Fixed Deposits
A fixed deposit of a fixed amount of money for a fixed period of time. No fixed deposit shall be
received for a sum less than the one fixed by the committee of management from time to time or for a
period less than fixed by the registrar of co-operative bank from time to time. Interest at the rates
fixed from time to time. Shall be paid at the end of three months in the case of deposits for a period
exceeding three months and in other cases on the expiry of the period for which the deposit was
make. The committees may at its discretion pay interest at intervals.
Recurring Deposits
A Recurring deposit is a deposit made by a person is a deposit made by a person who undertakes to
pay to the society every month a fixed amount of one rupee or a multiple therefore a period of 12,24
or 48 months etc. Every recurring depositor shall pay his monthly deposits before the end of the
calendar month to which it relates, failing which he shall be charged for a fine of one paisa per rupee

BANKING SECTOR
per month or fraction thereof on every rupee overdue. A recurring depositor is in arrears to the extent
of a sum equivalent to or more than four monthly installments is deposit a amount shall at once be
closed.
Savings Deposits
The committee of management shall frame such rules and regulators for the conduct of savings
bank account and make such alternations/amendments from time to time in conformity with the
provisions of Kerala co-operative societies Act,1969.
Office and Administrative Set up
The Head Office of the Bank is at Thiruvananthapuram, Corporate Business and Liaison Office at
Ernakulam, Seven Regional Offices (each for two adjacent Revenue Districts) at
Thiruvananthapuram, Alappuzha, Kottayam, Thrissur, Palakkad, Kozhikode and Kannur, Credit
Processing Centers (CPC) at each District Head Quarters and Branch Offices across the State. The
bank operates through a network of 769 branches. The hierarchical order in the Bank is Chief
Executive Officer, Chief General Manager, General Managers, Deputy General Managers, Senior
Managers, Managers, Accounts Officers and assistants with necessary supporting staff.
The head office of the bank consists of the following 6 departments, each headed by a General
Manager.
1. General Administration, HR & Law

2. Credit, Credit Monitoring and Recovery
3. Business Planning and Co-operative Credit
4. General Banking and Treasury
5. Audit, Inspection & Marketing
6. Information Technology and Digital Banking
The Regional Offices are headed by the Regional Managers in the rank of General Manager
OBJECTIVES
1. T To study the operational efficiency of co-operative bank.

2. To evaluate the existing activities and techniques of co-operative bank
3. o develop a network of corporate contacts for future career enhancements

BANKING SECTOR
Open membership is one of the fundamental principles or tenets of co-operative enterprise and
endeavour. The Reserve Bank has been persuading the urban co-operative banks and Registrars of
co-operative societies to follow the broad policy of open membership. Similarly. The District Banks
are required to keep membership open to every registered primary co-operative society in its area,
unless otherwise disqualified.
Vision:
Create and maintain a socially and economically sustainable cooperative system.
Mission:
Promote, regulate and facilitate the social, economic and cultural needs of the cooperative sector and
community within the purview of statues.
ORGANISATIONAL STRUCTURE
Figure 6 Organisation structure of KSCB

BANKING SECTOR
CHAPTER-4
DATA ANALYSIS

BANKING SECTOR
4.1 SWOT ANALYSIS
Figure 7 : SWOT
SWOT analysis is a strategic planning and strategic management technique used to help a person or
organization identify Strengths, Weaknesses, Opportunities, and Threats related
to business competition or project planning. It is sometimes called situational assessment or
situational analysis. SWOT analysis assesses internal and external factors, as well as current and
future potential.
A SWOT analysis is designed to facilitate a realistic, fact-based, data-driven look at the
strengths and weaknesses of an organization, its initiatives, or an industry. The organization needs to
keep the analysis accurate by avoiding pre-conceived beliefs or gray areas and instead focusing on
real-life contexts. Companies should use it as a guide and not necessarily as a prescription.
Understanding SWOT Analysis

Strengths
Strengths describe what an organization excels at and what separates it from the competition: a strong
brand, loyal customer base, a strong balance sheet, unique technology, and so on. For example, a hedge
fund may have developed a proprietary trading strategy that returns market-beating results. It must then
decide how to use those results to attract new investors.
Weaknesses
Weaknesses stop an organization from performing at its optimum level. They are areas where the
business needs to improve to remain competitive: a weak brand, higher-than-average turnover, high
levels of debt, an inadequate supply chain, or lack of capital.
Opportunities
Opportunities refer to favourable external factors that could give an organization a competitive
advantage. For example, if a country cuts tariffs, a car manufacturer can export its cars into a new
market, increasing sales and market share.

BANKING SECTOR
Threats
Threats refer to factors that have the potential to harm an organization. For example, a drought is a
threat to a wheat-producing company, as it may destroy or reduce the crop yield. Other common threats
include things like rising costs for materials, increasing competition, tight labor supply. and so on.
4.1.1 SWOT ANALYSIS OF UNION BANK OF INDIA
 STRENGTH
 Public Bank
 Efficient Services
 Growing Reach
 Financially Backing the Agriculture Sector
 Customers as Main Priority.
 Empowering Employment
 International Presence
 Easement of Banking.
 WEAKNESS
 Less International Presence.

 Lack of Digital Customer Support
 Less Advertisement Leads to Lower Brand Presence
 Companies with High Debt
 OPPOTUNITIES
 Expansion
 Increasing Investments
 Interests Rates
 Digitalization
 Small scale business banking
 more global penetration through international banking
 acquisition of smaller local banks in India
BANKING SECTOR
 THREATS
 Private Sector Banks are Increasing Its Competition

 Economic Crisis
 Changing Policies.
 High Competition.
 Online Banks
 Tech-Platforms
4.1.2 SWOT ANALYSIS OF HDFC BANK
 STRENGTH
 Large Network of Branches

 Strong Consumer Banking
 Higher Customer Satisfaction
 High Employee Retention Rate
 Brand’s Goodwill
 WEAKNESS
 No Rural Presence
 Limited Market Size
 Underperforming Sectors
 Fluctuating Share Prices
 OPPORTUNITIES
 Strong Fundamentals for Growth

 Increasing Corporate Banking Sector
 Efficient Debt Settlement
 Foreign Markets

BANKING SECTOR
 THREATS
 Increasing NPA
 New-Age Banks
 Lack of Growth
 Increasing Competition
 Increasing Foreign Investments
4.1.3 SWOT ANALYSIS OF KSCB
 STRENGTH
 KSCB strictly follows the rules, regulations and guides of both NABARD and RBI.
 In spite of a relatively higher NPA level, the bank could make profit consistently and its
borrowings are on the decline.
 The bank maintains a good relationship with customers and with public.
 The bank prepares and constantly monitors its yearly targets for credit, deposits and
NPAs.
 Highlevel of technology adoption and networking among branches, and high-tech
services.
 KSCB has dedicated and hard-working staff capable of providing good customer
service.
 The bank has good support from the State Government because of its good performance.
 The bank could embrace the high-tech services like ATMs, Mobile Banking, and NEFT etc.
 WEAKNESS
 Poor risk management systems and procedures.
 Lack of customer orientation, projection of itself, and scientific marketing of services
 In general, there is lack of professionalism in its functioning.
 Dual controls (viz. from both the RBI and NABARD) create problems and conflicts.
 The position of KDCB among the banks working in the district has always been good.

BANKING SECTOR
 The bank maintains a good relationship with customers and with public.
 The bank prepares and constantly monitors its yearly targets for credit, deposits and
NPAs.
 High level of technology adoption and networking among branches, and high-tech
services.
 KDCB has dedicated and hard-working staff capable of providing good customer
service.
 The bank has good support from the State Government because of its good
performance.
 The bank could embrace the high-tech services like ATMs, Mobile Banking, and
NEFT etc.
 OPPORTUNITIES
 Growing economy and liberalized business environment offer better business prospects.
 Growing market for banking products. Scope for of more attractive deposits and credit
productswith higher profit.
 Scope for enhancement of business through borrowings, its outside dependence being
less.
 High prospects for expansion of branch network because of growing business every
year.
 Good prospects diversification of business activities in the ongoing reforms era.
 THREATS
 Technology advances and the aggressive entry of new generation private sector banks.
 Political interference and external influences is always a treat for all co-operative bank

BANKING SECTOR
4.2 PORTER’S FIVE FORCES MODEL
Figure 8 Porter’s five forces model
4.2.1 UNION BANK OF INDIA
Threat of New Entrants:
Despite the regulatory and capital requirements of starting a new bank, between 1977 and 2002 an
average of 215 new banks opened each year according to the FDIC1. With so many new banks
entering the market each year the threat of new entrants should be extremely high. However, due to
mergers and bank failures the average number of total banks decreases by roughly 253 a year2. A
core reason for this is, what is arguably, the biggest barrier of entry for the banking
industry, trust. Because the industry deals with other people's money and financial information new
banks find it difficult to start up. Due to the nature of the industry people are more willing to place
their trust in big name, well known, major banks who they consider to be trustworthy.
Power of Suppliers:
Capital is the primary resource on any bank and there are four major suppliers (various other
suppliers [like fees] contribute to a lesser degree) of capital in the industry.
1. Customer deposits. 2. mortgages and loans. 3. mortgage-baked securities. 4. loans from other
financial institutions.

BANKING SECTOR
By utilizing these four major suppliers, the bank can be sure that they have the necessary resources
required to service their customers' borrowing needs while maintaining enough capital to meet
withdrawal expectations. The power of the suppliers is largely based on the market, their power is
often considered to fluctuate between medium to high
Power of Buyers:
The individual doesn't pose much of a threat to the banking industry, but one major factor affecting
the power of buyers is relatively high switching costs. If a person has one bank that services their
banking needs, mortgage, savings, checking, etc, it can be a huge hassle for that person to switch to
another bank.
To try and convince customers to switch to their bank they will often times lower the price of
switching, though most people still prefer to stick with their current bank.
The internet has greatly increased the power of the consumer in the banking industry. The internet
has greatly increased the ease and reduced the cost for consumers to compare the prices of
opening/holding accounts as well as the rates offered at various banks .ING Direct introduced high
yield savings accounts to catch the buyers' attention, then they went a step further and made it very
easy for customers to transfer their money from their current bank to ING. ING was successful in
their attempt because they managed to make switching costs very low in terms of time and capital.
Availability of substitutes :
Some of the banking industry’s largest threats of substitution are not from rival banks but from non-
financial competitors. The industry does not suffer any real threat of substitutes as far as deposits or
withdrawals, however insurances, mutual funds, and fixed income securities are some of the many
banking services that are also offered by non-banking companies. There is also the threat of
payment method substitutes and loans are relatively high for the industry. For example, big name
electronics, jewelers, car dealers, and more tend to offer preferred financing on "big ticket" items.
Often times these non-banking companies offer a lower interest rates on payments then the consumer
would otherwise get from a traditional bank loan.

BANKING SECTOR
Competitive Rivalry:
The banking industry is considered highly competitive. The financial services industry has been
around for hundreds of years, and just about everyone who needs banking services already has them.
Because of this, banks must attempt to lure clients away from competitor banks. They do this by
offering lower financing, higher rates, investment services, and greater conveniences than their rivals.
The banking competition is often a race to determine which bank can offer both the best and fastest
services, but has caused banks to experience a lower ROA (Return on Assets). Given the nature of
the industry it is more likely to see further consolidation in the banking industry. Major banks tend to
prefer to acquire or merge with other banks than to spend money marketing and advertising.a
4.2.2 HDFC BANK
Threats of New Entrants
New entrants in Foreign Regional Banks brings innovation, new ways of doing things and put
pressure on HDFC Bank Limited through lower pricing strategy, reducing costs, and providing new
value propositions to the customers. HDFC Bank Limited has to manage all these challenges and
build effective barriers to safeguard its competitive edge.
Bargaining Power of Suppliers
All most all the companies in the Foreign Regional Banks industry buy their raw material from
numerous suppliers. Suppliers in dominant position can decrease the margins HDFC Bank Limited
can earn in the market. Powerful suppliers in Financial sector use their negotiating power to extract
higher prices from the firms in Foreign Regional Banks field. The overall impact of higher supplier
bargaining power is that it lowers the overall
Bargaining Power of Buyers
Buyers are often a demanding lot. They want to buy the best offerings available by paying the
minimum price as possible. This put pressure on HDFC Bank Limited profitability in the long run.

BANKING SECTOR
The smaller and more powerful the customer base is of HDFC Bank Limited the higher the
bargaining power of the customers and higher their ability to seek increasing discounts and offers.
Threats of Substitute Products or Services
When a new product or service meets a similar customer needs in different ways, industry
profitability suffers. For example services like Drop box and Google Drive are substitute to storage
hardware drives. The threat of a substitute product or service is high if it offers a value proposition
that is uniquely different from present offerings of the industry.
Rivalry among the Existing Competitors
If the rivalry among the existing players in an industry is intense then it will drive down prices and
decrease the overall profitability of the industry. HDFC Bank Limited operates in a very competitive
Foreign Regional Banks industry. This competition does take toll on the
4.2.3 KSCB
Degree of Rivalry among competitors:
We can state that the industry has a high level of rivalry among rivals given that the market is
fragmented and there are a large number of gamers existing separately with their respective
organisation designs. The fact that no large company has actually entered this Porters Analysis of Co
Operative Bank case service contributes to the high level of degree of competition among industry
players. Since the services being provided are mostly similar, the lack of differentiation used by
market players more increases the degree of rivalry amongst market gamers.
Threat of new entrants:
The market has a high danger of brand-new entrants due to the fact that it does not need high
financial investment in innovation to go into the market. With no economies of scale being seen in
the industry due to the absence of larger gamers, the industry uses really low barriers to entry.

BANKING SECTOR
Threat of substitutes:
The dangers of alternative might be low provided the fact that vehicle washing does not particularly
have substitutes. While the concept may have different types of cars and truck Porters Analysis of Co
Operative Bank such as self-service car washes and automated vehicle Porters Analysis of Co
Operative Bank, however the total idea of vehicle wash does not have substitutes.
Bargaining power of suppliers:
The bargaining power of the supplier is rather low provided the reality that there are a large number
of providers in the vehicle wash market. With the absence of vendor agreements and client
commitment, the provider has a low specific power.
Bargaining power of buyers:

With the market having a large number of providing services with their respective rate, quality and
individuality , the client can quickly change in between providers. Because brand switching id
refrained from doing at a high expense to the customer, the industry has a high bargaining power
when it comes to the buyer. Purchasers are not devoted to any specific brand while at the same time
the alternative of washing vehicles in your homes also existe which involves practically no monetary
expenses to the buyer. This further increase the bargaining power that the a buyer has in the industry.

BANKING SECTOR
4.3 BCG MATRIX
Figure 9 BCG Matrix
The Boston Consulting group's product portfolio matrix(BCG matrix) is designed to help
with long-term strategic planning, to help a business consider growth opportunities by reviewing
its portfolio of products to decide where to invest, to discontinue or develop products.
The Stars is the scenario where there is the optimum situation of high growth and high share, this
method requires an increased investment due to the continuous growth. The Cash Cow cycle
deals with low growth and high share. This scenario requires a low investment, but the growth is
very slow. The Dogs method is the situation where the growth is low and the market share is
low, this is one of the worst situations. In this situation if the products are not delivering the cash
then it is best to liquidate. The last part of the cycle is the Question mark which is high market
growth but low shares. In this situation there is a high demand but low returns. It is best to try
and increase market share or get it to deliver cash. The limitation of this business theory is that it
only works with high market share and this is not the only meter for success. Also there are
many situations in business where the Dogs can out earn the Cash Cows.

BANKING SECTOR
HDFC UNION BANK
KSCB
Figure. 10 BCG matrix of Union bank of India , HDFC ,KSCB
4.3.1 BCG MATRIX OF UNION BANK
Union bank belongs to question mark in BCG Matrix. The growth rate is increasing and market share
value is fluctuating for the frequent years because of high competition in banking sector. Question mark
often represent the lack of capabilities or skills data required be the company to excel in the booming
industry.

BANKING SECTOR
4.3.2 BCG MATRIX OF HDFC
HDFC Bank stands in star position in BCG matrix. As HDFC bank have the high market growth and
they also have high market share. There is a lot of growth potential for the banking industry because of
increasing disposable income of customers, increasing working class, more volatility in other markets
also increasing importance of saving and already discussed almost 30% of the market is still untapped.
4.3.3 BCG MATRIX OF KSCB
It including dog because the business unit has been in loss for last five years it also in market that is
declining due to so many reasons in the company also have negative profit. It is expected that market will
growing future. KSCB need to invest in business enough to convert into a Cash Cow.

BANKING SECTOR
CHAPTER 5
FUTURE PROSPECTS

BANKING SECTOR
5.1 FINDINGS
The year 2020-21 was dominated by the COVID-19 pandemic and the resultant
global economic downturn, the most severe one since the Global Financial Crisis. The lockdowns
and social distancing norms brought the already slowing global economy to a standstill.
Economic prosperity has changed consumer demographics and technological factors have made
consumers demand for better quality and efficient services. The service industry is becoming
major contributor to the economy of many countries which were earlier dependent on the
manufacturing sector. Service industry particularly the banking sector is not left behind in the
competition. Banking industry has been highly commoditized. For the Indian economy, the year
2020-21 was challenging due to both supply and demand side disruptions, due to the pandemic.
The Indian economy entered a technical recession in the first half of Financial Year 2021 with
GDP plunging by 31.8% in Financial Year 2021. India recognized the disruptive impact of the
pandemic and charted its own unique path amidst its huge population, high population density
and an overburdened health infrastructure. The intense lockdown implemented at the start of the
pandemic characterized India’s unique response in several ways. The Government has ramped up
its fiscal spending through Atmanirbhar scheme and a favorable monetary policy ensured support
for the economy.
The Governments and central banks across the world deployed a range of policy tools to
support their economies, such as, lowering key policy rates, quantitative easing measures, loan
guarantees, cash transfers and fiscal stimulus measures. The global economy is projected to grow
at 6% in 2021, moderating to 4.4% in 2022. Among advanced economies, the United States is
expected to surpass its pre-COVID GDP level this year, while many others in the group will
return to their pre-COVID levels only in 2022. For emerging and developing market economies,
China had already returned to pre COVID GDP in 2020, whereas many others are not expected to
do so until 2023. 1.3 For the Indian economy, the year 2020-21 was Governments and central
banks across the world deployed a range of policy tools to support their economies, such as,
lowering key policy rates, quantitative easing measures, loan guarantees, cash transfers and fiscal
stimulus measures. The global economy is projected to grow at 6% in 2021, moderating to 4.4%
in 2022. Among advanced economies, the United States is expected to surpass its pre-COVID
GDP level this year, while many others in the group will return to their pre-COVID levels only in

BANKING SECTOR
2022. For emerging and developing market economies, China had already returned to pre
COVID GDP in 2020, whereas many others are not expected to do so until 2023. All the banks
are trying to expand their customer base and are developing their own long-term strategies to stay
in the market. To improve the customer services and relationship management many of the retail
banks adapt information technology that has helped in integrating and consolidating banking
operation.
The latest strategy is in the use of debit/ATM cards in all processing platforms
irrespective of the banks. In other words a single credit/debit/ATM card can be used in any of
the ATM machine without any processing or transaction fee. Retail banks adopted the strategy of
strengthening the online offerings by implementing new direct net features and also integrating
the newer and the traditional sales channels for the clients who are tech-savvy and use the
internet for their transactions and dealing in the banks. Retail banks adopt the strategy of
increasing their product penetration to the existing clients in the traditional market while for the
urban or metro markets, increasing the distribution and selling of specialized business products to
commercial customers is focused more. Many banks focus on those markets that provide them
with the best mix market growth and target clients concentration.
The year 2020-21 was dominated by the COVID-19 pandemic and the resultant global
downturn, the most severe one since the Global Financial Crisis. The economic lockdowns
and social distancing norms brought the already slowing global economy to a standstill. As
per the latest World Economic Outlook of International Monetary Fund (IMF), the Global
economic output contracted by 3.3% in 2020.
 Established in the year 1919, your Bank has 9312 branches and 3 overseas branches,
12957 ATMs across 29 States and 5 Union Territories and 78202 employees as on
March 31, 2021.
 Net Interest Income for FY 21 stood at Rs.24,688 crore.
 Operating profit for FY 21 stood at Rs.19,259 crore.
 Net NPA ratio stood at 4.62% as on March 31, 2021.
 Total Deposits increased to Rs.9,23,805 crore as on March 31, 2021. Out of this
CASA share (current account and saving account) stood at 36.33 % as on March 31,
2021.

BANKING SECTOR
 Bank reported an Operating Profit of Rs.19,259 crore in FY 2020-21 as compared to

Rs.9,181crore in FY 2019-20.
 Netprofit of the Bank stood at Rs.2,906 crore in FY 2020-21.
 Gross Non-Performing Assets (GNPA) of the Bank stood at Rs.89,788 crore as on
March 31, 2021. GNPA as per cent to gross advances stood at 13.74 % as on March
31, 2021.
 The global business of the Bank stood at Rs.15,77,490 crore as on March 31, 2021.
 Implemented digital journey for lead generation through 5 channels (SMS, Missed
Call, Internet Banking, Mobile Banking and Call Centre) for 6 Products (Personal
Loan, Home Loan, Vehicle Loan, Credit Card, MSME loan and Shishu Mudra).
 Launched end-to-end Straight Through Processing for Pre-approved Personal Loans,
Shishu Mudra loans and renewal of MSME Loans.
 Implemented lead registration for KCC Loan through Mobile Banking app.
 Facility to buy Union Mutual Fund schemes through Bank’s website and U-Mobile
App has been commenced.
 Option to buy PMJJBY insurance cover through U Mobile App has been enabled.
 Mobile Banking services enabled for NRIs.
 During 2020-21, the overall digital transactions grew from 74.43% in Mar’20 to
79.11% in Mar’21 registering a growth of around 5% during the year.
 Bank has implemented cyber security framework and instituted Cyber Security
Operation Centre.
5.1.2 HDFC BANK Ltd
HDFC Bank is one of India’s leading private banks and was among the first to receive
approval from the Reserve Bank of India (RBI) to set up a private sector bank in 1994.
The year started with one of the most severe lockdowns in the world. Although it was eased in
stages the economy was bound to take a hit. For the first time in many years India's GDP
contracted by 7.3 per cent in FY 2020-21. This was an improvement after the first quarter low of -
24.4 per cent. As the lockdown eased the economy contracted by 7.4 per cent in the second
quarter and touched positive territory in the third quarter posting a growth of +0.5 per cent and 1.6
per cent in the fourth quarter. The Budget announcements for FY 2021-22 too have given

BANKING SECTOR
confidence to business with its focus on stimulating growth through expansionary fiscal policy at
the centre and increasing capital expenditure at the central as well as state Government levels.
Bank recorded an improvement in a majority of its key financial parameters largely due to its
prudent credit evaluation of targeted customers and diversified loan book across customer
segments products and sectors.
 Net Profit at 31,116.5 crore went up by 18.5 per cent.
 Net Interest Income at 64,879.6 crore rose 15.5 per cent. Net Interest Margin remains stable
at 4.1 per cent.
 Gross Non-Performing Assets (NPAs) at 1.32 per cent were among the lowest in the
industry.
 As on March 31, 2021, the issued, subscribed and paid up capital of your Bank stood at
5,512,776,482/- comprising 5,512,776,482 equity shares of 1/- each. Further, 29,490,022
equity shares of face value of 1/- each were issued by your Bank pursuant to the exercise of
Employee Stock Options (ESOPs).
 15.5 per cent growth in Bank’s Net Interest Income due to acceleration in loan growth in FY
2020-21.
 Cost to Income Ratio improved to 36.3 per cent in FY 2020-21.
 Operating (Non-Interest) Expenses rose to 32,722.6 crore from 30,697.5 crore. During the
year, Bank set up 354 new branches and 1,186 ATMs / Cash Deposit and Withdrawal
Machines (CDMs).
 Net profit increased 18.5 per cent in FY 2020-21.
 Domestic Retail Deposits grew by 21.1 per cent to 1,064,684 crore from 879,145 crore in
the preceding year, while Retail Advances rose 6.7 per cent to 527,586 crore from 494,401
crore.
 Bank leveraged its vast geographical reach, technology backbone, automated processes, suite
of financial products and quick turnaround times to offer a differentiated service, which has
resulted in new customer acquisitions as well as a higher share of the wallet from existing
customers.
 Bank jumped one position to be ranked 2nd in the Bloomberg rankings of Rupee Bond Book
Runners for FY 2020- 21, improving its market share to 17.46% from 13.72%.

BANKING SECTOR
5.1.3 KSCB
Co-operative movement in India leads to its origin to agriculture and allied sectors. The
beginning of cooperative banking in India dates back to about 1904 when official efforts were
initiated to create a new institution based on the principles of cooperation which were considered
to be suitable for solving the problems related to Indian agricultural conditions. The role of
cooperative banks in rural financing continues to be important today and their role has also
increases in urban areas in there recent years. When national economic planning started in
independent India then cooperative banks were given an important role. With the advent of
planning process, cooperatives became an integral part of the five year plans. Cooperative banks
are government sponsored, supported and subsidized financial
agency in India. They get financial and other help from the Reserve Bank of India, NABARD,
Central Government and State Governments.
 The bank's business turnover of Rs.1,06,396 crore during the year 2020-21 grew to
Rs.1,12,028 crore during 2021-22.
 The volume of deposits in Kerala Bank grew from Rs.66,731 crore during 2020-21 to
Rs.69,940 crore during 2021-22. Loan disbursals grew from Rs.39,664 crore to Rs.42,087
crore between the two financial years.
 The bank's NPA was reduced from 27.93% in November last year to 12.79% in March this
year. The actual NPA was Rs.11,394 crore, which was brought down to Rs.5,381 crore.
Current and Savings Accounts deposits rose from Rs.7,166 crore in November last year to
Rs.9,947 crore in March this year.
 One of the key interventions during the COVID-19 pandemic period was the ‘Be The
Number One’ campaign launched by the bank between December 1 last year and March 31
this year.
 The campaign resulted in NPA reduction and growth in business that included increase in
gold-based lending. The campaign also helped increase the confidence of the public in
Kerala Bank.

BANKING SECTOR
5.2 FUTURE PROSPECTS
The beginning of the financial year 2020 saw 10 Public Sector Banks (PSB) amalgamating into
four capital rich banks in a bid to get them at par with global banks across the world. This served
as a much-needed push for such PSBs to have the capability to support the financial needs of
larger enterprises which in turn would help provide impetus to the growing economy.
Unfortunately, before this major decision could yield positive results, they were confronted with
a pandemic that the world was not prepared for. As the country reeled under the shock of how
quickly COVID-19 turned into a global pandemic, the government called for a nationwide
lockdown. However, banks were given directions to be open to service customers and came
under the ‘essential services’ category. Unlike most businesses, banks were unable to give their
employees the safety net of working from home and while they did try and encourage their
customers to avail of their tele-banking or net-banking services, they still had to put on their
masks, adhere to the requisite safety protocols and service their invaluable customers. While
everyone applauded healthcare workers and empathized with the plight of lakhs of migrant
workers, the banking sector went seemingly unnoticed.
The banking sector issued Direct Benefit Transfer (DBT), because of which the Centre could
ensure
16.01 crore beneficiaries received approximately Rs 36,659 in their accounts between March 24,
2020 and April 17, 2020 during the lockdown. DBT ensured that the cash benefit was directly
credited into the account of the beneficiary and eliminated leakage and improved efficiency.
Millions of people across the country benefited instantly as the banking and finance sector
worked tirelessly to ensure that our great country faces one less obstacle on its road to recovering
from this global pandemic.

Public sector lender Union Bank has outlined a hit on its revenue and profitability numbers for
Q1FY21 and Q2FY21. The bank, which on April 1 merged with Corporation Bank and Andhra
Bank, in an exchange filing said the effect of the COVID-19 lockdown will reflect on its
bottomline.
The bank attributed the impact on profitability on account of the economic slowdown brought
aboutby the lockdown, noting “profitability is likely to improve in the second half of the current

BANKING SECTOR
financialyear subject to restoration of normal economic activity.
“Outbreak of COVID-19 Pandemic has impacted credit and recovery segments of the
banking business,” said Union Bank whilst adding “Though there was an impact on recovery,
loan default risk has been largely minimized on account of grant of moratorium on repayment of
loans and other measures,” referring to the move by the Reserve Bank of India (RBI) to provide a
six month moratorium on loan repayments, till August 31.
The bank said it expected to see normalcy in the third and fourth quarter of FY21 due to
measures taken by both the Centre and State Governments. Union Bank however said it was
adequately capitalised, and did not foresee any capital and liquidity constraints on account of the
impact of COVID-19, and further added it had sufficient liquidity to meet its debts. Numerous
Banks and NBFCs have thus far outlined plans to raise capital amidst the pandemic.
Union demand for its products and services would improve in H2FY21, which it said was subject
to restoration normal economic activity. “In addition to banking services, the bank is also
extending need based emergency credit of line to customers to facilitate for continuity of their
operation including a line of credit to MSMEs,” the lender added
5.2.2 HDFC BANK Limited
HDFC Bank doubled provisions for March quarter 2020 at Rs 3,784.5 crore against Rs 1,889.2
crore in the same quarter last year. Bad loan provisions increased by Rs 488 crore to Rs 1,918
crore while general provisions quadrupled to Rs 1,867 crore from Rs 459 crore last year.
“The provisions were made against the potential impact of Covid-19 based on the information
available at this point in time and they are in excess of what is required under the RBI-prescribed
norms. Total floating provisions stood at Rs 1,451 crore as of March 31, 2020, and contingent
provisions at Rs 2,996 crore. Total provisions (comprising specific, floating, contingent and
general provisions) were 142% of the gross non-performing loans as on March 31, 2020,”
Impact highly uncertain
The biggest private lender said the extent to which the pandemic will impact the bank's results
will depend on future developments, which are highly uncertain.

BANKING SECTOR
The bank added that the loan classification will remain standstill during the three-month
moratorium period. The central bank on Saturday asked banks to freeze classifying their assets
as bad loans dueto the moratorium granted on them.
Bad loans come down
Gross non-performing assets (NPA) for the quarter eased to 1.26 per cent from 1.42 per cent in
December quarter and 1.36 per cent in the year-ago quarter. However, net NPA ratio to advances
came down to 0.36 per cent from 0.39 per cent.
No dividend as directed by RBI
The bank said it will not pay any dividend to its shareholders after the Reserve Bank of India
asked the banks to not do so. RBI is of the view that banks must conserve capital in an
environment of heightened uncertainty caused by Covid-19.
5.2.3 KSCB
The mandatory shutdown of businesses and supply chain disruptions caused by COVID-19 are
taking a toll on the activities carried out by cooperative financial institutions (CFIs). These
institutions are crucial providers of financial services to households and small and medium-sized
enterprises, with a large rural presence in many developing countries. Although some rural areas
have been less affected by the spread of the virus, they are being severely impacted by the
economic distortions on demand—and in some cases, exports—associated with the pandemic.
Software integration stuck meanwhile, the software integration and the

establishment of UPI (unified payments interface) or the instant real-time payment system to
facilitate inter-bank transactions on a mobile platform and the constitution of a new board of
directors have been delayed as the government’s focus turned to Covid-related activities. The
Covid-induced lockdown has slowed down the integration of the district cooperative banks, and
expressed the confidence that Malappuram DCB, the lone cooperative bank which has stayed off
the merger plan, will join the Kerala Bank soon.
The Central government’s decision to bring all urban and multi-state cooperative banks
under the direct supervision of Reserve Bank of India (RBI) will, however, have little impact on
the Kerala Bank as the merged entity is already under the supervision of the banking regulator.
“Right now, Kerala Bank is partly regulated by NABARD and partly by RBI. After the

BANKING SECTOR
integration process gets completed, we will come directly under the RBI,
Gross non-performing assets (NPAs) of cooperative banks increased from 7.27 per cent in
March 2019, to over 10 per cent by March 2020, adding as many as 277 urban cooperative banks
have reported losses in 2018-19 fiscal .over 100 urban cooperative banks were unable to meet the
minimum regulatory capital requirement and 47 had negative net worth at the end March 2019.
In June, the Union Cabinet had approved an ordinance to bring cooperative banks under the
supervision of the Reserve Bank of India (RBI). It also extended the provisions applicable on
commercial banksto cooperative banks.

BANKING SECTOR
5.3 CONCLUSION
Banking sector in Indian has given positive and encouraging responses to the financial sector
reforms. Entry of new private banks and shaken up Public sector banks to competition. The financial
sector reforms have brought India financial system closer to global standards. With the India
increasingly getting integrated with the global financial world, the Indian banking sector has a still
long way to go to catch up with their counter parts.
Union Bank has the capability and the yearly mover advantage in internet banking and
mobile banking areas. Though they have made good progress InTechnology, the challenge lies in
quickly disseminating these products amongst their clientele and also present themselves as a techno-
sawy bank, particularly to the younger generation of the society. With the mobile banking revolution
sweeping the country, it will also support the national end ever of financial inclusion of the currently
deprived lower strata of society. Reserve Bank of India is committed to increase transactions through
electronic modes with an intention of not only taking steps to fulfill its dream of Paperless
Banking but also to maintain proper records of all transactions.
Union Bank is the first to introduce NEFT facility to the customers of two Regional Rural banks
sponsored by the Bank. The online RTGS and NEFT facility of Union Bank allows the customer to
transfer funds through internet banking from anywhere in the world. The exchange houses in Gulf
countries which have tie up with Union Bank, can route their rupee remittances for credit of
beneficiary accounts with any bank in India through NEFT / RTGs system using the bank’s ‘E-Remit
package. Financial Inclusion is the buzzword of the Banking Industry and is the thrust area of both
Government of India as well as RBI. The rural populace in remote unbanked and under banked areas
of the country are being mainly reached out by all the banks through the Branchless Banking model.
This cuts down the necessity of establishing regular brick and mortar branches at heavy costs and at
the same time ensures the reach of the bank to the targeted population through the Business
Correspondent Model.
At the end I would like to conclude that there is a lot of stiff competition among the private banks in
India. The race to get on top of the leader board never stops. The majority of customers are satisfied.
But the bank should try to target on the rest of the customers who are not satisfied. The customers are
aware about the bank’s services but the Bank should try to create more bank awareness so that it can
increase its customer base. HDFC Bank should introduce advertising strategies; it can use digital
media as it is one of the strongest emerging tools in today’s scenario. HDFC should also try to target
people of all income groups to increase its consumer base.
BANKING SECTOR
Banking development is a vital phenomenon in National development. The main functions like
deposit mobilization and credit operations are giving extra importance to banking sector. The
distribution of deposit mobilization in the form of resource deployment to improve the socio-
economic status of the people is an immediate need for all the developing countries. In democracy,
the political parties make more promises based only on banking sector and its reforms. Cooperative
banks employ attractive strategies to create awareness among investors and invite them to invest in
their banks. Reforms in cooperative banking depend upon financial sector reforms. Financial sector
reforms are essential to ensure the efficient allocation of funds available for investment thereby
achieves higher growth. In this way, the restructuring of the banks to achieve more deposit
mobilization and proportionate successful credit operation is considered essential to measure
financial performance.

BANKING SECTOR
Bibliography
Books
1. Banking law and practice-Mishra Sukhvinder
2.Computer applications in business-R Parameswaran
3.CR Kothari - Research methodology
Website
1. www.business.standard.com
2. www.investopedia.com
3. www.keralabank.com
4. www.unionbankofindia.com
5. www.acadmedia.edu
6. www.indian bankindustry.org
7. www.en.wikipedia.org

BANKING SECTOR
APPENDIX
1. UNION BANK OF INDIA
Union bank of India
2. HDFC BANK Ltd.
HDFC bank limited
3. KSCB (KERALA STATE CO-OPERATIVE BANK)
KSCB

BANKING SECTOR

YASIR PROJECT-1 (Recovered)

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

YASIR PROJECT-1 (Recovered)

Uploaded by

Copyright:

Available Formats

A REPORT ON THE STUDY DONE

(UNION BANK OF INDIA, HDFC BANK, KSCB)

MASTER OF BUSINESS ADMINISTRATION

MOHAMMED YASIR K.V

Register number: 59520941029

Dr. RAM KRISHNAN S

UNIVERSITY INSTITUTE OF MANAGEMENT

ICM CAMPUS, POOJAPPURA

I, MOHAMMED YASIR K.V, Student of University Institute of Management, Poojapura;

Place: Poojapura MOHAMMED YASIR K.V

Date: Reg.No : 59520941029

I would like to express my gratitude to Mr. RADHAKRISHNA MENON, Director,

I would like to express my deepest gratitude to Dr. V. JAYAMOHANAN NAIR, academic

MOHAMMED YASIR K.V

FIGURE 1. UNION BANK OF INDIA .................................................................................. 19

FIGURE 7. SWOT ..................................................................................................................51

FIGURE 8. PORTER'S FIVE FORCE MODEL .................................................................... 56

FIGURE 9. BCG MATRIX ..................................................................................................... .61

UNIVERSITY INSTITUTE OF MANAGEMENT, POOJAPURA Page 1

UNIVERSITY INSTITUTE OF MANAGEMENT, POOJAPURA Page 2

1. UNION BANK OF INDIA

2. HDFC BANK LIMITED

UNIVERSITY INSTITUTE OF MANAGEMENT, POOJAPURA Page 3

3. KERALA STATE CO-OPERATIVE BANK

UNIVERSITY INSTITUTE OF MANAGEMENT, POOJAPURA Page 4

1.2 OBJECTIVES OF THE STUDY

1. To get an idea about the banking sector.

2. To understand future performance of currently performing company in one period.

3. To understand the organization structure of the bank

1.3 DATA SOURCES

1.4 DATA ANALYSIS

2. FIVE FORCES ANALYSIS

UNIVERSITY INSTITUTE OF MANAGEMENT, POOJAPURA Page 5

1.5 SCOPE OF THE STUDY

1.6 LIMITATIONS OF THE STUDY

• This study is only based on secondary data.

• Time has concerned with constraint performing the study

• There is more chances for wrong information.

• Limitation is availability of data.

UNIVERSITY INSTITUTE OF MANAGEMENT, POOJAPURA Page 6

1.7 PERIOD OF STUDY

The period of study is one month (01/03/2022-31/03/2022).

CHAPTER-2 : Defined industry profile evolution and development.

CHAPTER- 3 : Define the company profile

UNIVERSITY INSTITUTE OF MANAGEMENT, POOJAPURA Page 7

UNIVERSITY INSTITUTE OF MANAGEMENT, POOJAPURA Page 8

2.1 HISTORY OF INDIAN BANKING

• Depositor and protector of people’s savings

• Issue loans to individual and Companies

PRE INDEPENDENCE PERIOD (1786-1947)

UNIVERSITY INSTITUTE OF MANAGEMENT, POOJAPURA Page 10

POST-INDEPENDENCE PERIOD (1947-1991)

5. Central Bank of India

8. Indian Overseas Bank

10. Punjab National Bank

11. Syndicate Bank

12. Union Bank of India

13. United Bank

14. UCO Bank

UNIVERSITY INSTITUTE OF MANAGEMENT, POOJAPURA Page 11

3. New Bank of India

5. Punjab & Sind Bank

2. State Bank of Hyderabad

3. State Bank of Bikaner & Jaipur