nik2 | Mergers And Acquisitions | Reserve Bank Of India

A Project Report On Banking in India, External Growth Opportunity

In Partial Fulfillment of Master of Business Administration [Financial Services] Sem-1st

Submitted To Pro. Mittal Dattani

Submitted by

10 11 12 13 15

Dipenkumar K. Patel. Divya A. Patel. Gaurang B. Patel. Nitish S. Patel Rachana R. Patel.

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Preface

Practical knowledge provides as excellent platform for management student to learn the application of management theories in the world of business aims to build a high profile career for themselves in the corporate world. Times and opportunity once lost are lost forever. So the student should make the best use of this golden opportunity by working hard, learning the best skills and molding themselves to the requirement of the business world which they be facing in near future. We have taken up ‘Banking in India, External Growth Opportunity’ survey to find out the growth in global market, and how this beneficial to Indian banking sector. The present report is sincerely attempted on behalf to present the information collected through secondary source to the best of our ability.

Acknowledgement
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We are grateful to thank our Pro. Mittal Dattani for giving us this great opportunity to do this project.

We also extend our thankfulness to our beloved parents and friends for their continuous encouragement at every moment.

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Table of Contents
Chapter No. 1 2 3 4 5 6 7 8 Introduction What is Bank? Reserve Bank of India History of Indian Banking Sector Structure of Banking Industry ICICI Conclusion Bibliography Chapter Page No.

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India's Growing Banking Sector India's banking sector is boming at a great pace in spite of its relatively small size in comparison of its counterparts in other leading economies. In 2003. 5|Page . In this. the apex bank. In India. Reserve Bank of India (RBI) has issued licenses to 9 new private banks. Most of the banks paid their focus on the retail sector and provide internet banking. The Indian banking sector has seen a proliferation of new services which has shown an improvement in customer service. In 1990s. Times Bank got merged with the HDFC Bank.Chp 1. Indian banking sector has been found lucrative by eminent players from the international world. 200 crore of profit for both banks. For e.. phone banking and mobile banking services to their customers and have cornered one of the largest segments of the India's banking sector by targeting the India's growing middle income class. Citibank and Standard Chartered Bank has more than half of all credit card receivables and personal loans. after a long gap of more than 20 years. These banks have shown their edge over each others with the introduction of new products and technologies. Oriental Bank of Commerce was listed by Forbes magazine in its 'Global 200 Best Companies' list. which has generated more than Rs. The RBI also allowed Kotak Mahindra Finance Company to become a bank.g.

What is a Bank? A banker or bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money.Chp 2. In other words. an institution where one can place and borrow money and take care of financial affairs. Function of Banks • • • • • Lending money to public (loans) Transferring money from one place to another (Remittances) Acting as trustees Keeping valuables in safe custody Government business Types of Banks • • • • Public sector Banks Private sector Banks Co-operative Bank Development Bank/Financial institutions 6|Page .

Services Provided By a Bank • • • • • • • • Demat Account Lockers Cash Management Insurance Product Mutual Fund Product Loans ECS (Electronic clearance system) Taxes An Overview The country’s middle class accounts for over 320 million people. as follows: It must have paid-up capital and reserves of an aggregate value of not less than an amount specified from time to time. called a scheduled bank. rising income levels. and affordability of banking products are promising factors for continued expansion. cooperative. 7|Page . is entitled to facilities of refinance from RBI.Chp 3. subject to fulfillment of the following conditions laid down in Section 42 (6) of the Act. or rural. In correlation with the growth of the economy. 1934. It must satisfy RBI that its affairs are not being conducted in a manner detrimental to the interests of its depositors. Reserve Bank of India RBI is the banker to banks—whether commercial. increased standard of living. The relationship is established once the name of a bank is included in the Second Schedule to the Reserve Bank of India Act. Such bank.

focusing on the expansion of retail and rural banking. Players are becoming increasingly customer-centric in their approach. Banks are now realizing the importance of being a big player and are beginning to focus their attention on mergers and acquisitions to take advantage of economies of scale and/or comply with Basel II regulation. The banking system of India should not only be hassle free but it should be able to meet new 8|Page . History of Indian Banking Sector Without a sound and effective banking system in India it cannot have a healthy economy. The banking industry should focus on having a small number of large players that can compete globally rather than having a large number of fragmented players.The Indian banking Industry is in the middle of an IT revolution. "Indian banking industry assets are expected to reach US$1 trillion by 2010 and are poised to receive a greater infusion of foreign capital. which has resulted in innovative methods of offering new banking products and services." Chp 4.

To make this write-up more explanatory. Phase II and Phase III. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. Central Bank of India. Canara Bank. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks. To streamline the functioning and activities of commercial banks. It is no longer confined to only metropolitans or cosmopolitans in India. I prefix the scenario as Phase I. Foundation. 1949 which was later changed to Banking Regulation Act 1949 as per 9|Page . and Bank of Mysore were set up.Phase The General Bank of India was set up in the year 1786. Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14 major private banks of India. Today. Next were Bank of Hindustan and Bengal Bank. mostly small. mostly Europeans shareholders. Bank of Baroda. an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Punjab National Bank Ltd. Bank of India. the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below: • • • Early phase from 1786 to 1969 of Indian Banks Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms. The first bank in India. the Government of India came up with The Banking Companies Act. This is one of the main reasons of India's growth process. Indian banking system has reached even to the remote corners of the country. Indian Bank.challenges posed by the technology and any other external and internal factors. In 1865 Allahabad Bank was established and first time exclusively by Indians. Not long ago. The East India Company established Bank of Bengal (1809). The most striking is its extensive reach. though conservative. There were approximately 1100 banks. he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days. In fact. Between 1906 and 1913. Now it is simple as instant messaging or dial a pizza. From 1786 till today. Reserve Bank of India came in 1935. For the past three decades India's banking system has several outstanding achievements to its credit. was established in 1786. Money has become the order of the day. was set up in 1894 with headquarters at Lahore. New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991.

Mrs. 1969.000%. Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th July. 1955: Nationalization of State Bank of India. Consolidation Phase 10 | P a g e . 1969: Nationalization of 14 major banks. 1975: Creation of regional rural banks. 1959: Nationalization of SBI subsidiaries. Indira Gandhi. As an aftermath deposit mobilization was slow. Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with seven more banks. major process of nationalization was carried out. 1971: Creation of credit guarantee corporation.amending Act of 1965 (Act No. 1961: Insurance cover extended to deposits. the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11. funds were largely given to traders. 14 major commercial banks in the country was nationalized. After the nationalization of banks. It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country. During those day’s public has lesser confidence in the banks.Phase Government took major steps in this Indian Banking Sector Reform after independence. It was the effort of the then Prime Minister of India. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. This step brought 80% of the banking segment in India under Government ownership. The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country: • • • • • • • • 1949: Enactment of Banking Regulation Act. Moreover. 23 of 1965). In 1955. Expansion. it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions. 1980: Nationalization of seven banks with deposits over 200 crore.

staff productivity and profitability of banks. a committee was set up by his name which worked for the liberalization of banking practices. Efforts are being put to give a satisfactory service to customers. Reforms. The country is flooded with foreign banks and their ATM stations. Time is given more importance than money. On the recommendations of All India Rural Credit Survey Committee. these private owners of banks were at liberty to use the funds in any manner. they deemed appropriate and resultantly. BANK NATIONALISATION & PUBLIC SECTOR BANKING Organized banking in India is more than two centuries old.Phase This phase has introduced many more products and facilities in the banking sector in its reforms measure. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. Measures were also taken to reduce the structural constraints that obstructed the growth of money market. Move towards State ownership of banks started with the nationalization of RBI and passing of Banking Companies Act 1949. During 1968 the scheme of ‘social control’ was introduced. Keeping in view the objectives of nationalization. SBI Act was enacted in 1955 and Imperial Bank of India was transferred to SBI. Resultantly the number of branches increased 7 fold (from 8321 to more than 60000 out of which 58% in rural areas) and no. In the absence of any regulatory framework. PSBs undertook expansion of reach and services. Attention was paid to improving house-keeping. the foreign reserves are high. Till 1935 all the banks were in private sector and were set up by individuals and/or industrial houses which collected deposits from individuals and used them for their own purposes. Similarly. The expansion is significant in terms of geographical distribution. Phone banking and net banking is introduced. Much of this expansion has taken place in rural and semi-urban areas. customer service. the conversion of 8 Stateowned banks (State Bank of Bikaner and State Bank of Jaipur were two separate banks earlier and merged) into subsidiaries (now associates) of SBI during 1959 took place. and banks and their customers have limited foreign exchange exposure. States neglected by private banks before 1969 have a vast network of public 11 | P a g e . credit management. the bank failures were frequent. The financial system of India has shown a great deal of resilience. under the chairmanship of M Narasimham. which was closely followed by nationalization of 14 major banks in 1969 and another six in 1980. This is all due to a flexible exchange rate regime. The entire system became more convenient and swift. In 1991.The phase started in 1985 when a series of policy initiatives were taken by RBI which saw marked slowdown in the branch expansion. of people served per branch office came down from 65000 in 1969 to 10000. the capital account is not yet fully convertible.

commercial banks which conduct the business of banking in India and which (a) have paid up capital and reserves of an aggregate real and exchangeable value of not less than Rs 0.sector banks. Chp 5. The PSBs including RRBs.5 mn and (b) satisfy the RBI that their affairs are not being conducted in a manner detrimental to the interest of their depositors. 1934. are eligible for inclusion in the Second Schedule to the Reserve Bank of India Act. Scheduled Commercial 12 | P a g e . STRUCTURE OF THE BANKING INDUSTRY According to the RBI definition. account for 93% of bank offices and 87% of banking system deposits. and when included are known as ‘Scheduled Commercial Banks’.

Its predecessor. (iv) Foreign Banks and (v) Other Indian Scheduled Commercial Banks (in the private sector). (1932). Public Sector Banks in India Among the Public Sector Banks in India. (ii) Nationalised Banks.177 bank offices spread across the country. United Bank of India is one of the 14 major banks which were nationalized on July 19. (1922) and Hooghly Bank Ltd. 19 Old Private Sector Banks. the United Bank of India Ltd. was formed in 1950 with the amalgamation of four banks viz. 13 | P a g e . Comilla Union Bank Ltd. in the Public Sector Banks. There are 71. (iii) Regional Rural Banks. 19 nationalised banks and the IDBI Ltd.. Bengal Central Bank Ltd. 1969. of which 43 % are located in rural areas. All Scheduled Banks comprise Schedule Commercial and Scheduled Co-operative Banks.Banks in India are categorized in five different groups according to their ownership and/or nature of operation. 18% in urban areas and the rest (17 %) in the metropolitan areas. The major bank groups (as defined by RBI) functioning are State Bank of India and its seven associate banks. Scheduled Cooperative banks consist of Scheduled State Co-operative Banks and Scheduled Urban Cooperative Banks . 8 New Private Sector Banks and 29 Foreign Banks. (1918). Comilla Banking Corporation Ltd. (1914). These bank groups are (i) State Bank of India and its associates. 22% in semi-urban areas.

The following are the list of Public Sector Banks in India • • • • • • • • • • • • • • • • • • • Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Dena Bank Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab & Sind Bank Punjab National Bank Syndicate Bank UCO Bank Union Bank of India United Bank of India Vijaya Bank Private Sector Banks Private banking in India was practiced since the beginning of banking system in India. yet another Private Bank of India was incorporated in the year 1930. to set up a bank in the private sector banks in India as part of the RBI's liberalization of the Indian Banking Industry. It is one of the fastest growing Private Sector Bank in India. ING Vysya. This Public Sector Bank India has implemented 14 point action plan for strengthening of credit delivery to women and has designated 5 branches as specialized branches for women entrepreneurs. It was incorporated in August 1994 as HDFC Bank Limited with registered office in Mumbai and commenced operations as Scheduled Commercial Bank in January 1995. The first Private Bank in India to receive an in principle approval from the Reserve Bank of India was Housing Development Finance Corporation Limited. NRI and Commercial banking services. OBC is implementing a GRAMEEN PROJECT in Dehradun District (UP) and Hanumangarh District (Rajasthan) disbursing small loans. Bangalore has 14 | P a g e . a Government of India Undertaking offers Domestic. The first private bank in India to be set up in Private Sector Banks in India was IndusInd Bank. IDBI ranks the tenth largest development bank in the world as Private Banks in India and has promoted a world class institution in India.Oriental Bank of Commerce (OBC).

With successive years of patronage and constantly setting new standards in banking.a pride of place for having the first branch inception in the year 1934. ING Vysya Bank has many credits to its account. List of Private Banks in India • • • • • • • • • • • • • • • • • • • • Bank of Punjab Bank of Rajasthan Catholic Syrian Bank Centurion Bank City Union Bank Dhanalakshmi Bank Development Credit Bank Federal Bank HDFC Bank ICICI Bank IDBI Bank IndusInd Bank ING Vysya Bank Jammu & Kashmir Bank Karnataka Bank Karur Vysya Bank Laxmi Vilas Bank South Indian Bank United Western Bank UTI Bank Banking Industry at a Glance Table 1: Indian Banking at a Glance Source: Reserve Bank of India 15 | P a g e .

Group Wise Source: Indian Banks’ Association/ Reserve Bank of India. Table 3: Group Wise: Comparative Average Source: Reserve Bank of India.Table 2: Number of Banks. Table 4: Bank Groups: Key Indicators 16 | P a g e . * Includes Industrial Development Bank of India Ltd.

17 | P a g e . Major reforms initiatives Some of the major reform initiatives in the last decade that have changed the face of the Indian banking are:- • Interest Rate Deregulation-Interest rates on deposits and lending have been deregulated with banks enjoying greater freedom to determine their rates.Source: Reserve Bank of India.

gold banking. income recognition. Notable features of the internet banking are 18 | P a g e . web based products. call centers etc. Use of credit cards. Similarly. United Bank of India (UTI) has started its computerization process in 1986 and so far it has completed its computerization work of more than 774 branches. exposure limits. etc. Banks and the Internet World Due to the advantages of inherent conveniences. credit cards. Even the old public sector banks are keeping themselves tune with the new technological changes. factoring. In some of its branches. The RBI issued new bank licenses with the motive of forming a new cohort of private players. online banking. they hold more than 6% of assets and nearly 10% of profits.insurance. asset management. infrastructure financing. which would ensure high level of service to customers and ensure unprecedented growth of the India. Presently. Like State Bank of India (SBI) has set aside more than Rs 500 crore during its 3 years of time span for the up gradation of its IT systems along with the computerization and networking of branches. besides of course investment banking. provisioning. New areas have been opened up for bank financing like. investment fluctuation reserve. leasing. Transactions done through the internet cost relatively less as compare to visit bank branch. The last half of the nineties has witnessed the massive growth of the new private banking players. Banks have specialized committees to measure and monitor various risks and have been upgrading their risk management skills and systems. it has already started doing tele-banking and mobile banking. etc. debit cards has touched the sky of popularity. Adoption of prudential norms in terms of capital adequacy. SBI has more than 3000 computerized branches and over 1000 new ATMs. e-cheques. 24x7 internet banking has proved to be an attractive service for the customers. Effect of New Technologies on Banks The Indian banking sector has seen an acceleration with the introduction of technological transformation like ATMs. Like Punjab National Bank has come up with their new online payment service. asset classification.• • • • • Government equity in banks has been reduced and strong banks have been allowed to access the capital market for raising additional capital. Some banks also offer unique features of internet banking to their customers. facilitating the online railway reservation. It has also set up 25 ATMs in throughout the India and has signed agreement with other banks of the public sector for ATM sharing. which has grown by approximately 50% per year and by 2001. Emergence of New Competitive Spirit in context of the customers Different economic reforms in the early 1990s have injected competition in the banking sector with the entrant of many new private and foreign players. New private sector banks have been set up and foreign banks permitted to expand their operations in India including through subsidiaries. telephone banking.

one needs to know the why mergers and their impact. that too if consolidated with some mergers. Checking of bank balance. credit disbursal. Request for the cheque book. Retail Sector Growth Earlier the Indian mortgage market was minuscule. personal loans. Mergers & Acquisitions There has been in recent months a renewed interest in mergers and acquisitions in the banking sector in view of the growing openness of the Indian financial system. Mergers of banks took place in India in the 1960s under the direction of the Reserve Bank of India. The undercurrent of thinking is that the larger the bank the higher its competitiveness and better its prospects of survival. But the decisions about mergers would require that a view be taken of the optimal number of banks in the country in the context of the opening up of the financial sector for foreign banks to acquire. and amalgamate with banks in the foreign bank category as well as with Indian banks. But after the introduction of economic reforms by the government. let us have a bit of contemporary history of mergers in India. The focal point of interest is about the size of the banking firm. From 566 reporting commercial banks (of which non-scheduled banks were 474) at the end of 1951. Many banks like HDFC. As per an estimate. SBI and ICICI has put the housing finance on their priority list. This argument implies that Indian banks are not in a position to compete for business internationally — in terms of funds mobilization. Credit card has emerged out as another important product of the personal finance which is growing rapidly. It is said that the only Indian bank that could compete internationally would be the State Bank of India. debit cards etc. HDFC Bank is quick enough in providing new products like car loans. In this background. investments and rendering of financial services — essentially because of their relatively small size. to 100 (27 non-scheduled) at the end of 1966. 19 | P a g e . The bank is also engage in loan pricing in various innovative ways for building healthy customer relationship. Personal loan is another area which is growing rapidly. Stopping the clearance of cheque. Issuing of a banker's cheque or a demand draft. tremendous development has been seen in the mortgage market.• • • • • • • Transfer of money to your account at the same bank's branch in another city. getting an impetus from the declination of the interest rates. India's mortgage assets have reached to nearly 2% of the India's GDP.less than 1% of GDP. Opening of a fixed deposit. Before dealing with these issues. Which could heightened to the 20%. the number came down to 292 (of which 210 were non-scheduled) at end 1961. and to 85 (14 non-scheduled) by the end of 1969.

there were private banks mergers since about the late 1990s for diverse reasons including building up financial strength. undertaken for preserving banking stability. There were also mergers of private banks with public sector banks. Much of the general literature on mergers in banking relates to private banking. capturing larger portion of the growing retail business and securing better regional presence. the institutions were strengthened financially. Mergers of ICICI Bank and Bank of Madura. The 1960 episode was essentially an exercise for preserving banking stability. more recently. public sector bank mergers were not contemplated. problems of personnel integration cropped up. On the other hand. The branch offices of scheduled commercial banks increased over this period while those of non-scheduled commercial banks declined. the prominent among them being the mergers of Benares State Bank with Bank of Baroda in 2002. In the early 1990s when the then National Bank of India was merged with Punjab National Bank. were not entirely for reasons of banking stability as such. to 6593 in 1966 and to 9005 in 1969. The merger of ICICI with ICICI Bank and the reverse merger of IDBI Bank with IDBI served multiple objectives. Finally. Second. Also. 20 | P a g e . Implied is the argument that efficiency and profits would be assured once the economies of scale operate. they are not meant. they helped to avoid the complex processes of restructuring the weaker of the units and to foster financial stability. improve efficiency or raise profits. Nedungadi Bank with Punjab National Bank in 2003. The complexities involved in mergers of public sector banking are rarely discussed. and. relatively strong banks. The above examples of mergers have been facilitated to a large extent by banking sector reforms that helped relax some of the restrictions on asset portfolio distribution. to cut costs. On the other hand. however. especially of female labor. This negative aspect of mergers may not. be as serious as when mergers lead to loss of availability of or access to credit or to lower employment. at least in the short term. This process was accelerated when two scheduled banks failed in 1960. mergers could lead to charging of higher fees for the services rendered. After this experiment. Global Trust Bank with Oriental Bank of Commerce. to an extent the advances in information technology have given banks the incentive to consolidate to scale up operations. especially if there is no `effective' competition or if smaller banks exhibit `herd behaviour' in imitating the bigger entities. Unviable banks were weeded out. However. First. This meant either closure or amalgamation with other. as well as HDFC Bank and Times Bank are important examples. mooted by the merging banks in the first instance and approved by the authorities.The number of bank offices increased sharply during this period: From 4151 in 1951 to 5012 in 1961. But these mergers were at the initiative of the authorities. as recommended by the Travancore-Cochin Banking Inquiry Commission (1956). These mergers. they have opened the possibilities of actively promoting universal banking.

Till almost the mid-1990s. The proposition that banks would be `too large to fail' is passé as the 1990s financial crises experience shows. however. One only hopes that political considerations do not influence the final view on the matter. Studies that use stock market data did not show gains from consolidation. What is also important is that it should not lower the number of banks to levels that destroy competition. But there is need for intense research on the issue. each specializing in developing services in a broad region. State Bank of India 21 | P a g e . More recently. studies in the US suggested that mergers based on former did not lead to significant gains either in efficiency or cost-saving. In the present context of global financial market integration. Good internal governance mechanisms and transparency practices need to be also in place. in fact. There is no official view about the optimal number of banks in a country.Unfortunately. before one takes a judgmental view about the number of Indian banks that could have international presence and could compete for international banking business. The Banking Commission recommended in 1972 that national banks be reorganized into two or three all-India banks and six other entities. Banking stability is much more important. suggested that bidders often suffer negative returns partly because of high offer prices and partly because markets revise downward their expectations from the merger. Instead they should allow banks to grow into international entities on their own internal dynamic impulses. The issue however could become complex if foreign banks are allowed to buy out Indian banks. that by itself would not be enough. This was not pursued. The question about the optimal number of banks in the country. Indian banks seeking international presence by exploiting the economies of scale and if possible of scope is an appealing argument. While such a view would obviously be based on their financial strength. and the associated issues of their capital adequacy and their capacity to help Universalisation of banking are matters to be yet settled. The RBI has done well to be transparent by going in for public views on ownership and governance. But this alone cannot be a good ground for consolidation. The general literature on the subject views the impact from two angles: One based on accounting data and the other based on stock price reaction. empirical data supported the view that banks significantly improve their profit and operational efficiency following mergers. there is little of published empirical literature on the impact of mergers in banking in India. Besides the authorities should resist the temptation of taking a proactive stance in determining which Indian bank should have international presence. They.

With an asset base of $126 billion and its reach. In recent years the bank has focused on three priorities. SBI's International Banking Group delivers the full range of cross-border finance solutions through its four wings . In 1955. the Foreign Offices division. international and NRI products and services. changing the attitude of its employees (through an ambitious 22 | P a g e . through its vast network in India and overseas. the Foreign Department and the International Services division. SBI is the largest bank in the world. Today.Company Profile of SBI: State Bank of India (SBI) is India's largest commercial bank. reducing its huge staff through Golden handshake schemes known as the Voluntary Retirement Scheme. If one measures by the number of branch offices and employees. with the Reserve Bank of India taking a 60% ownership stake. The government nationalized the bank in 1955. credit cards and insurance. In 1921. State Bank of India (SBI) has spread its arms around the world and has a network of branches spanning all time zones. computerizing its operations and 3). 2). Established in 1806 as Bank of Calcutta. The eight banking subsidiaries are: • • • • • • • • State Bank of Bikaner and Jaipur (SBBJ) State Bank of Hyderabad (SBH) State Bank of India (SBI) State Bank of Indore (SBIR) State Bank of Mysore (SBM) State Bank of Patiala (SBP) State Bank of Saurashtra (SBS) State Bank of Travancore (SBT) The origins of State Bank of India date back to 1806 when the Bank of Calcutta (later called the Bank of Bengal) was established. fund management. 1). State Bank of India (SBI) (LSE: SBID) is the largest bank in India. it is the oldest commercial bank in the Indian subcontinent. which saw many of its best and brightest defect to the private sector. SBI has a vast domestic network of over 9000 branches (approximately 14% of all bank branches) and commands one-fifth of deposits and loans of all scheduled commercial banks in India. the Bank of Bengal and two other Presidency banks (Bank of Madras and Bank of Bombay) were amalgamated to form the Imperial Bank of India. it is a regional banking behemoth. The State Bank Group includes a network of eight banking subsidiaries and several non-banking subsidiaries offering merchant banking services. SBI provides various domestic. factoring services. the controlling interest in the Imperial Bank of India was acquired by the Reserve Bank of India and the State Bank of India (SBI) came into existence by an act of Parliament as successor to the Imperial Bank of India. primary dealership in government securities.the Domestic division.

namely. 1843: Bank of Madras established. later renamed the Bank of Bengal. enacted by the Parliament of India. 1955: nationalized. The Imperial Bank of India continued as a joint stock company. July 1. to acquire a controlling interest in the Imperial Bank of India. All these Presidency banks had been incorporated as joint stock companies. 1806: The Bank of Calcutta established. January 27. which is the central banking organization of India. at least in terms of issuing the currency. and named the reorganized banking entity the Imperial Bank of India. becomes the first Indian bank to be State Bank of India on 30 April 1955. 1809: This became the Bank of Bengal. The government amalgamated Bank of Bengal and two other Presidency banks.programme aptly named 'Parivartan' which means change) as a large number of employees are very rude to customers. Roots: The State Bank of India traces its roots to the first decade of 19th century. State Bank of India (Subsidiary Banks) Act passed. 1959: State Bank of India formed. when the Bank of Calcutta. The State Bank of India Act 1955. authorized the Reserve Bank of India. 1840: Bank of Bombay established. enabling the State Bank of India to take over eight former State-associated banks as its subsidiaries. July 1. the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras on 27 January 1921. was established on 2 June 1806. which was renamed the Timeline: June 2. 23 | P a g e . 1861: Paper Currency Act passed. and were the result of the royal charters. January 2. Until the establishment of a central bank in India the Imperial Bank and its early predecessors served as India's central bank. April 15. 1921: All three banks amalgamated to form Imperial Bank of India.

the group is merging all the associate banks into SBI. Currently. They all use the "State Bank of" name followed by the regional headquarters' name. These were originally banks belonging to princely states before the government nationalized them in 1959. 2007: The Government of India today acquired the entire Reserve Bank of India (RBI) shareholding in State Bank of India (SBI). merged it with State Bank of India. and one hopes. The State Bank group refers to the seven associates and the parent bank. emphasizing the development of rural India. The focus of these offices is India-related business. streamline operations and unlock value. and in some cases conducts retail operations. the government June 29. these banks with the State Bank of India to expand its rural outreach. Foreign Branches: SBI has branches in these countries: 24 | P a g e . which will create a "mega bank". consisting of over 314 million equity shares at a total amount of over 355 billion rupees.1980s: When Bank of Cochin in Kerala faced a financial crisis. • • • • • • • State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Saurashtra State Bank of Travancore Foreign Offices: State Bank of India is present in 32 countries. Associate Banks: There are seven other associate banks that fall under SBI. All the banks use the same logo of a blue keyhole. where it has 84 offices serving the international needs of the bank's foreign customers. In tune with the first Five the government integrated Year Plan.

S. SBI has these wholly owned subsidiaries and joint ventures: • • • • • Nepal State Bank Limited SBI Mauritius Indian Ocean International Bank (Mauritius) SBI Canada SBI California Growth: Mumbai. U.K. the SBI has extensive coverage. State Bank of India has electronically networked most of its metropolitan. most notably during Chandra Shekhar's tenure as Prime Minister of India. urban and semi-urban branches under its Core Banking 25 | P a g e . Following its arch-rival ICICI Bank.• • • • • • • • • • • • • • • • • • • • Australia Bahrain Bangladesh Belgium Canada Dubai France Germany Hong Kong Israel Japan People's Republic of China Republic of Maldives Singapore South Africa Sri Lanka Sultanate of Oman The Bahamas U. State Bank of India has often acted as guarantor to the Indian Government. With more than 9400 branches and a further 4000+ associate bank branches. India.A Subsidiaries and Joint Ventures: In addition to the foreign branches above.

State Bank of India launched a project in 2002 to network more than 14. over 10.Bancassurance (Life Insurance) SBI Funds Management Pvt Ltd SBI Canada IT Initiatives: According to PM Network (December 2006. As of December 2006.407. As per fortune 500-2007 following are the data for SBI in $ million. No.2 Group companies: • • • • • • • • SBI Capital Markets Ltd SBI Mutual Fund (A Trust) SBI Factors and Commercial Services Ltd SBI DFHI Ltd SBI Cards and Payment Services Pvt Ltd SBI Life Insurance Co. In 2007 it moved up to 495. ATM network.3.547. Vol. 12). In recent years.000 branches have been covered. The new infrastructure serves as the bank's backbone. It is the only Indian bank to feature in the top 100 world banks in the Fortune Global 500 rating and various other rankings.1. the bank has sought to expand its overseas operations by buying foreign banks. The new infrastructure has enabled 26 | P a g e the bank to further grow its ATM network with plans to add another .4. Revenues 15. Profits 1. carrying all applications. such as the IP telephone network. 20. with over 4500 branches being incorporated so far. Fortune Global 500 Ranking – 2007: SBI debuted in the Fortune Global 500[2] at 498 in 2006. The bank has the largest ATM network in the country having more than 5600 ATMs.119. Assets 187.System (CBS). Internet banking and internal e-mail.786.000 domestic and 70 foreign offices and branches. According to the Forbes 2000 listing it tops all Indian companies. Ltd . though the Harshad Mehta scam in 1992 marred its image. Stockholders' Equity 9. The first and the second phases of the project have already been completed and the third phase is still in progress. The State Bank of India has had steady growth over its history.

Corporate Details: This site provides comprehensive information on State Bank of India or SBI Bank. (SBICPSL) 27 | P a g e . State Bank of India is India's largest bank amongst all public and private sector banks operating in India.banking Subsidiaries: • • • • • SBI Capital Markets Ltd (SBICAP) SBI Funds Management Pvt Ltd (SBI FUNDS) SBI DFHI Ltd (SBI DFHI) SBI Factors and Commercial Services Pvt Ltd (SBI FACTORS) SBI Cards & Payments Services Pvt. State Bank of India is actively involved since 1973 in non-profit activity called Community Services Banking. As of September 20. Lagos Non.3.600. Ltd. 2007 SBI has 7236 ATMs. the premier Nationalized Indian Bank.000 by the end of 2007 raising the total number to 8. State Bank of India owns and operates the following subsidiaries and Joint Ventures – • • • • • • • State Bank Of India Credit Card State Bank Of India Online State Bank Of India USA State Bank Of India Services State Bank Of India Mutual Funds State Bank Of India Branch State Bank Of India NRI Account Banking Subsidiaries: • • • • • • • State Bank of Bikaner and Jaipur (SBBJ) State Bank of Hyderabad (SBH) State Bank of Indore (SBI) State Bank of Mysore (SBM) State Bank of Patiala (SBP) State Bank of Saurashtra (SBS) State Bank of Travancore (SBT) Foreign Subsidiaries: • • • • State bank of India International (Mauritius) Ltd State Bank of India (California) State Bank of India (Canada) INMB Bank Ltd.

Internet Banking. E-Rail. Gift Cheques. Foreign Inward Remittances. It caters not only to the employees of State Bank of India but also other banks/establishments in India and abroad. Safe Deposit Lockers. Domestic Treasury State Bank of India offers the following services to its customers: • • • • • • • • • • • • • Domestic Treasury. The main activities are • • • • • • • Personal Banking. International. Activities: State Bank of India administrative structure is well equipped to oversee the large network of branches in India and abroad. Agriculture. NRI Services. SBI Vishwa Yatra Foreign Travel Card. Moreover. SME. E-Pay. The Corporate Accounts Group is a Strategic Business Unit of the Bank set up exclusively to fulfill the specialized banking needs of top corporate in the country. State Bank of India has Colleges/Institutes/Training Centers that are the seats of learning and research and development. MICR Codes.Joint ventures: • SBI Life Insurance Company Ltd (SBI LIFE). Broking Services Revised Service Charge. Performance: 28 | P a g e . ATM Services. Corporate. The State Bank of India 14 Local Head Offices and 57 Zonal Offices are located at important cities spread throughout the country. State Bank of India has 52 foreign offices in 34 countries across the globe. RBIEFT.

While net interest income rose 4. against Rs 23747.31) (85. The bank’s total income went up 39.70 crore during April-June 2009.29 8402.025 crore. there was a 48.52 394.041.18 4894.40 2758.43 13509.758.11 8491.47 5168.330.30 per cent to Rs 5.52 per cent to Rs 33.11 41.71 51.86 per cent higher at Rs 21.52 29. The treasury operations generated pre-tax profit of Rs 4.99 (5.48 2.11 per cent rise in its consolidated net profit to Rs 2. as against a loss of Rs 817 crore during the corresponding period last year.70 17524.75 crore during the first quarter of the current financial year.92 10827.08 3523.01 39. the country’s largest lender.03 per cent to Rs 2.41 % Change .47 33.51 crore.28 1640.132.53 15318.42 1.96 2640.84 141. while total income was 29.075 crore during the quarter-ended June 2009. On a standalone basis. today reported a 68.46 per cent rise in other income to Rs 3.96 18578.59 33132.79 1. Exceeds Expectations: (Rs crore) April-June 2008 Interest income Other income Total income Interest paid Total expenses Operating profit Non-tax provisions Net profit Gross NPA Net NPA Gross NPA % of advances Net NPA % of advances NPA data is for SBI standalone 29 | P a g e 20224.53 crore during the first quarter of the current financial year.06) 68.37 crore.43 crore during the corresponding period last year.55 Source: SBI 21.35 23747.State Bank of India.44 2. thanks largely to the performance of its treasury.81 6298. SBI’s net profit went up 42.42 2009 24641.15 28238.568.

ICICI: 30 | P a g e .656 crore partly due erosion in the value of its bond and equity portfolio.234 crore. bond yields were stable and the value of equities went up. Compared with the 2008-09. there was an improvement.28 per cent to Rs 3.318 crore.The bank’s net interest income was affected due to a rise in interest payments that went up 38.5 per cent due the deposit mobilization under the 1.000 day scheme.673.000 crore on a daily basis for a few months.5 per cent interest in October.87 crore. NIM. reflected in an increase of almost 50 per cent in the BSE Sensex. With operating expenses rising 51 per cent.30 per cent at the end of June 2009.200 crore on investment depreciation. which fell by 73 basis points over the last 12 months to 2. In contrast during April-June 2009. the decrease was to the tune of 63 basis points. The level of gross non-performing assets went up over 41 per cent to Rs 15.589 crore. SBI had provided Rs 1. which went up to Rs 1. The scheme had resulted in a mop up of around Rs 1. The pressure was also seen on the net interest margin (NIM). But compared with the March-end level of Rs 15. under which the bank was paying 10. SBI’s operating profit for the quarter fell by 7.73 crore as it reversed provisions of Rs 1. On non-tax provisions. SBI said it had restructured loans to the tune of Rs 8. as against a write-back of Rs 247 crore on loan-loss provisions. The reversal of the provisions also masked the steep rise in provisions for bad debt. at the end of the first quarter of the current financial year. SBI Chairman O P Bhatt said he expected NIM to improve by four to six basis points during the second quarter but it would still be below his comfort level of 3 per cent. thanks mainly due to higher provision (of Rs 767 crore) for wage revision and a higher pension liability (Rs 429 crore). there was a decline of nearly 89 per cent to Rs 172. During the first quarter of the last financial year.000 crore.

ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services. an equity offering in the form of ADRs listed on the NYSE in fiscal 2000.849. 2008 and profit after tax Rs. Russia and Canada. Bangladesh. branches in United States. 3. In 1999. higher market share in various business segments. and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry. life and non-life insurance. China. and the move towards universal banking. and was its wholly-owned subsidiary. both directly and through a number of subsidiaries and affiliates like ICICI Bank. Our UK subsidiary has established branches in Belgium and Germany. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). ICICI was formed in 1955 at the initiative of the World Bank. Hong Kong. The Bank currently has subsidiaries in the United Kingdom. ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. and access to 31 | P a g e .70 billion (US$ 82 billion) at September 30.400 branches and 4. 17. the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities.ICICI Bank is India's second-largest bank with total assets of Rs.530 ATMs in India and presence in 18 countries. 2008. entry into new business segments. Singapore.42 billion for the half year ended September 30. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. the Government of India and representatives of Indian industry. History: ICICI Bank was originally promoted in 1994 by ICICI Limited. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998. Malaysia and Indonesia. particularly fee-based services. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations. Bahrain. an Indian financial institution. South Africa. In the 1990s. ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001. Thailand. Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates. venture capital and asset management. Sri Lanka. and would create the optimal legal structure for the ICICI group's universal banking strategy. seamless access to ICICI's strong corporate relationships built up over five decades. greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The Bank has a network of about 1.

a network of over 1. by the High Court of Gujarat at Ahmadabad in March 2002. ICICI Bank (BSE: ICICI) (formerly Industrial Credit and Investment Corporation of India) is India's largest private sector bank in market capitalization and second largest overall in terms of assets. both wholesale and retail. and representative offices in Bangladesh. Indonesia. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002. and its ADRs on the New York Stock Exchange (NYSE). In October 2001. ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees.399 branches. Mr. (These data are dynamic. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and specialised subsidiaries and affiliates in the areas of investment banking. venture capital and asset management. about 4.485 ATMs (at the end of September 2008). an advisory branch in Dubai. Russia and the UK. ICICI Bank has got its equity shares listed on the stock exchanges at Kolkata and Vadodara. ICICI Personal Financial Services Limited and ICICI Capital Services Limited. including an offshore unit in Mumbai. China. South Africa. with ICICI Bank. the Bank is targeting the NRI (Non-Resident Indian) population in particular. Bank has total assets of about USD 100 billion (at the end of March 2008). offshore banking units in Bahrain and Singapore. the United Arab Emirates and USA.) ICICI Bank is also the largest issuer of credit cards in India. ICICI Bank now has wholly-owned subsidiaries. have been integrated in a single entity. Overseas. and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002.Ramaswami Mudaliar is elected as the first Chairman of ICICI Limited. Thailand. 22 regional offices and 49 regional processing centres. Timeline: 1955: The Industrial Credit and Investment Corporation of India Limited (ICICI) was incorporated at the initiative of World Bank. the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries. the ICICI group's financing and banking operations. branches and representatives offices in 18 countries. Consequent to the merger. Hong Kong and Sri Lanka. the Government of India and representatives of Indian industry. branches in Belgium.A. Mumbai and the National Stock Exchange of India Limited. life and non-life insurance. The Bank is expanding in overseas markets and has the largest international balance sheet among Indian banks. with the objective of creating a development financial institution for providing medium-term and long-term project financing to Indian businesses. and 24 million customers (at the end of July 2007). This includes wholly owned subsidiaries in Canada. Malaysia. 32 | P a g e .the vast talent pool of ICICI and its subsidiaries.

the first public issue by any Indian entity in the Swiss Capital Market. ICICI. set up Credit Rating Information Services of India Limited. Mr. Parekh appointed the third Chairman of ICICI. 1978: Mr. 1985: Mr. Backbay Reclamation. 1988: Promoted TDICI . The Corporation made a public issue of Swiss Franc 75 million in Switzerland. S.ICICI emerges as the major source of foreign currency loans to Indian industry. along with UTI. ICICI promotes Shipping Credit and Investment Company of India Limited. 1969: The first two regional offices set up in Calcutta and Madras. James Raj appointed the fourth Chairman of ICICI.5%. which was oversubscribed. ICICI was also among the first Indian companies to raise funds from international markets. 1977: ICICI sponsored the formation of Housing Development Finance Corporation and manages its first equity public issue.Siddharth Mehta appointed the fifth Chairman of ICICI. 1967: ICICI made its first debenture issue for Rs. 33 | P a g e . India's first professional credit rating agency. 1958: Mr.L. 1956: ICICI declared its first dividend. T. 1961: The first West German loan of DM 5 million from Kredianstalt obtained.Mehta appointed the second Chairman of ICICI Ltd. N. 1972: ICICI becomes the second entity in India to set up merchant banking services. 1960: ICICI building at 163.India's first venture capital company.G. 1986: ICICI became the first Indian institution to receive ADB Loans. 1979: Mr. of 3.Vaghul appointed the seventh Chairman and Managing Director of ICICI. the first loan by CDC for financing projects in India. 1984: Mr. ICICI commences leasing business. Nadkarni appointed the sixth Chairman of ICICI. 1982: ICICI became the first ever Indian borrower to raise European Currency Units.6 crore. H. 1987: ICICI signed a loan agreement for Sterling Pound 10 million with Commonwealth Development Corporation (CDC). inaugurated. Besides funding from World Bank and other multi-lateral agencies.

SCICI merged with ICICI Ltd. India’s first mobile ATM. 2001: The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI Ltd. Mr.V. 1994: ICICI Bank set up. ICICI announced takeover of Anagram Finance.100-seat Call Centre for Customer Care by phone and e-mail was set up in Hyderabad. 34 | P a g e . ICICI becomes the first Indian company to get listed on the NYSE through an issue of American Depositary Shares. ICICI Bank launched India’s first CDO (Collateralized Debt Obligation) Fund named Indian Corporate Collateralized Debt Obligation Fund (ICCDO Fund). ATM-on-Wheels. "E-Lobby". ICICI Bank Home Shoppe.1993: ICICI Securities and Finance Company Limited in joint venture with J. a self-service banking centre and a first of its kind in India. A 1. the first-ever permanent aggregation and display of housing projects in the county. launched in Mumbai. 2000 : ICICI Bank became the first commercial bank from India to get its stock listed on the NYSE. ICICI Bank announces merger with Bank of Madura. The name "The Industrial Credit and Investment Corporation of India Ltd" changed to "ICICI Ltd. 1998: A new logo symbolizing the common corporate identity for the ICICI Group was introduced. Morgan set up. 1999 : ICICI launched retail finance .car loans. is inaugurated in Pune. with ICICI Bank. launched in Pune. 1996: ICICI Ltd became the first company in the Indian financial sector to raise GDR. 2002: ICICI Ltd merged with ICICI Bank Ltd to create India’s second-largest bank in terms of assets. ICICI Asset Management Company set up. home loans and loans for consumer durables. K. ICICI Bank launched Private Banking. P." ICICI Ltd. announced the takeover of ITC Classic Finance.Kamath appointed the Managing Director and CEO of ICICI Ltd 1997 : ICICI Ltd was the first intermediary to move away from a single prime rate structure to a three-tier prime rates structure and introduced yield-curve-based pricing. ICICI assigned higher than "Sovereign" rating by Moody’s.

India’s first ever "Visa Mini Credit Card". ICICI Bank became the market leader in retail credit in India. introduced. from Monday to Saturday. 2004: Max Money. 35 | P a g e . Hardoi. 2005: First rural branch and ATM launched in Uttar Pradesh at Delpandarwa. Kisan Loan Card and innovative. ICICI Bank opened its 500th branch in India. ICICI Bank and CNBC TV 18 announced India’s first ever awards recognizing the achievements of SMEs.m. ICICI Bank’s representative office inaugurated in Dubai. ICICI Bank announced the setting up of its first-ever offshore branch in Singapore. training and promoting the micro-finance clients and ICICI Bank would finance the clients directly on the recommendation of the MFI. A subsidiary of ICICI Bank was set up in Canada. Temasek Holdings acquired 5. to 8 p. The first offshore banking unit (OBU) at SEEPZ Special Economic Zone. ICICI Bank introduced partnership model wherein ICICI Bank would forge an alliance with existing micro finance institutions (MFIs). ICICI Bank and Visa jointly launched mChq – a revolutionary credit card on the mobile phone. a credit card 43% smaller in dimensions was launched. Mobile banking service in India launched in association with Reliance Infocomm. ICICI Bank introduced the concept of floating rate for home loans in India.m. ICICI Bank introduced 8 to 8 Banking wherein all the branches of the Bank would remain open from 8a. low-cost ATMs were launched in rural India. India’s first multi-branded credit card with HPCL and Airtel launched. was launched. Mumbai. ICICI Bank’s UK subsidiary launched. "Free for Life" credit cards launched wherein annual fees of all ICICI Bank Credit Cards were waived off. Representative office set up in China. a home loan product that offers the dual benefit of higher eligibility and affordability to a customer. a pioneering initiative to encourage the contribution of Small and Medium Enterprises to the growth of the Indian economy.2003: The first Integrated Currency Management Centre launched in Pune.2% stake in ICICI Bank. The MFI would undertake the promotional role of identifying.

financial planning and debt management services. a nationwide Golf tournament for high networth clients of the Private Banking division launched. 2007: ICICI Bank makes a USD 2 billion three-tranche international bond offering. ICICI Bank became the largest retail player in the market to introduce a biometric enabled smart card that allows banking transactions to be conducted on the field. Indonesia and Malaysia. Acquired IvestitsionnoKreditny Bank of Russia. ICICI Bank raised Rs 20. ICICI Bank became the first private entity in India to offer a discount to retail investors for its follow-up offer.8 billion in India.000 crore (approx $5 billion) from domestic and international markets through a follow-on public offer. This event is the largest domestic invitation amateur golf event conducted in India. Sangli Bank was amalgamated with ICICI Bank. this became an effective delivery option for ICICI Bank’s micro-finance institution partners. Launched India’s first ever jewellery card in association with jewellery major Gitanjali Group.Private Banking Masters 2005. 36 | P a g e . Introduced a new product . Representative offices opened in Thailand. Financial counseling centre Disha launched. ICICI Bank’s GBP 350 million international bond offering marked the inaugural deal in the sterling market from an Indian issuer and also the largest deal in the sterling market from Asia. ICICI Bank subsidiary set up in Russia. 2006: ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetual debt in the international markets.‘NRI smart save Deposits’ – a unique fixed deposit scheme for nonresident Indians. Becomes the first Indian company to make a simultaneous equity offering of $1. A low-cost solution. Andhra Pradesh. Bhoomi puja conducted for a regional hub in Hyderabad. Disha provides free credit counseling. ICICI Bank became the first bank in India to launch a premium credit card -. which becomes the largest bond offering by an Indian bank. the United States and Japan. ICICI Bank became the largest bank in India in terms of its market capitalization.The Visa Signature Credit Card.

finance and grow their business. opens its first branch in Frankfurt ICICI Bank launched iMobile. which will allow viewers to see information about the Bank's products and services and contact details on their DISH TV screens. ICICI Bank concluded India's largest ever securitization transaction of a pool of retail loan assets aggregating to Rs. Gujarat was laid. ICICI Bank launches ICICIACTIVE-Banking Interactive Service .The foundation stone for a regional hub in Gandhinagar.21 billion) in a multi-tranche issue backed by four different asset categories. commercial vehicles loans. ICICI Bank and British Airways launch a co-branded credit card. construction equipment loans and professional equipment loans. designed to earn cardholders accelerated reward points with every British Airways flight or by spending on everyday purchases Personal Banking: • • • • • • Deposits Loans Cards Investments Insurance Demat Services 37 | P a g e . Launched Bank@Home services for all savings and current account customers residing in India ICICI Bank Eurasia LLC inaugurated its first branch at St Petersburg. an online resource centre. to help small and medium enterprises start.along with DISH TV. a breakthrough innovation in banking where practically all Internet banking transactions can now be done easily on the mobile phone. ICICI Bank launched the "Probationary Officer Programme". 48. Russia.96 billion (equivalent of USD 1. launches its first branch in New York ICICI Bank enters Germany. In a first-of-its-kind. nationwide initiative to attract bright graduate students to pursue careers in banking. ICICI Bank introduced SME Toolkit. ICICI Bank signed a multi-tranche dual currency US$ 1.5 billion syndication loan agreement in Singapore. ICICI Bank became the first private bank in India to offer both floating and fixed rate on car loans. It is also the largest deal in Asia (ex-Japan) in 2008 till date and the second largest deal in Asia (ex-Japan and Australia) since the beginning of 2007. 2008: ICICI Bank enters USA.

ICICI Bank’s profit after tax (PAT) plunged by around 11% to Rs 3. However.391 crore earned in the corresponding period of fiscal 2007-08. In view of rising bad loans. against Rs 39. The bank’s total income for the reporting period went down by around 11% to Rs 9. 10% rural and 4% of SME. 2009. the bank’s NPA ratio was 1. 38 | P a g e . current and savings accounts (CASA) and feeincome.203 crore against Rs 10.599 crore in 2007-08.2% in 2007-08. 37% of corporate.431 crore deposits as on March 31.348 crore as on March 31. ICICI Bank board has declared a dividend of Rs 11 per share. The total deposits of the bank were Rs 218. compared to Rs 4. the country’s second largest bank. 2009 against Rs 244. 2008. The bank’s total income for the last financial year went down by marginally around 2% to Rs 38.4% in 2008-09.158 crore earned in 2007-08. The net interest margin improved marginally to 2.085 crore. With this. the bank is witnessing the sharpest decline in profit in over six years. ICICI Bank has scaled down its unsecured lending and would focus on enhancing the net interest income (NII). The bank’s total loan book has share of 49% of retail. against 2.758 crore. As on March 31.150 crore in the corresponding period last fiscal.696 crore. has seen its net profit fall by around 35% during the fourth quarter of 2008-09 to Rs 744 crore against Rs 1. For the financial year 2008-09. The bank’s provisioning for the fourth quarter of the fiscal 2008-09 rose by around 15% to Rs 1. The bank expects a 5-10% loan growth in retail and corporate portfolios in the current fiscal 2008-09.96%. against Rs 947 crore in the same period last fiscal.• Wealth management NRI Banking: • • • • • • Money Transfer Bank Accounts Investments Property Solutions Insurance Loans Business Banking: • • • • • • • Corporate net banking Cash Management Trade services FXonline SME services Online taxes Custodial services Performance: ICICI Bank.

ICICI Bank UK PLC and ICICI Bank Canada Review of Literature: The banking sector in India has made remarkable progress since the economic reforms in 1991. prioritization of preferences and close monitoring of customer satisfaction have become essential for banks. Factor Analysis. an attempt has been made in this study to analyze the factors that are essential in influencing the investment decision of the customers of the public sector banks. For this purpose.53% and 28. New private sector banks have brought the necessary competition into the industry and spearheaded the changes towards higher utilization of technology. improved customer service and innovative products. this study also suggests some measures to formulate marketing strategies to lure customers towards banks. ICICI General. 2009 against Rs 226. The bank’s capital adequacy ratio and CASA as on March 31. Keeping these in mind. respectively. Factor analysis identifies common dimensions of factors from the observed variables that link together the seemingly unrelated variables and provides insight into the underlying structure of the data. the bank restructured loans aggregating to Rs 1.616 crore as on March 31.7%. ICICI Securities. ICICI Prudential Asset Management Company. Customers are now becoming increasingly conscious of their rights and are demanding more than ever before. which is the most appropriate multivariate technique. Organization: Chanda Kochhar has been appointed as non-executive chairperson of ICICI Life. During the last fiscal.The loan book of ICICI Bank also decreased to Rs 218. Key Words: 39 | P a g e .311 crore as on March 31. Secondly. 2008. has been used to identify the groups of determinants. In this context. The recent trends show that most banks are shifting from a “product-centric model” to a “customer-centric model” as customer satisfaction has become one of the major determinants of business growth.115 crore. 2009 were 15.

in Portugal). hole-in-the-wall. cash point. mbanking. Mobile banking today (2007) is most often performed via SMS or the Mobile Internet but can also use special programs called clients downloaded to the mobile device. 40 | P a g e .Mobile Banking: Mobile banking (also known as M-Banking. ATMs are known by various other names including automated banking machine. credit union or building society. On most modern ATMs. SMS Banking etc. via a mobile device such as a mobile phone. cash machine. Core Banking System: Core Banking is a general term used to describe the services provided by a group of networked bank branches. the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smartcard with a chip. Bank Customers may access their funds and other simple transactions from any of the member branch offices. Using an ATM. Internet Banking: Online banking (or Internet banking) allows customers to conduct financial transactions on a secure website operated by their retail or virtual bank. money machine. that contains a unique card number and some security information. customers can access their bank accounts in order to make cash withdrawals (or credit card cash advances) and check their account balances as well as purchasing mobile cell phone prepaid credit. Security is provided by the customer entering a personal identification number (PIN). and Any Time Money (in India). Bancomat (in various countries in Europe and Russia).) is a term used for performing balance checks. bank machine. account transactions. such as an expiration date or CVC (CVV). Atm: An automated teller machine (ATM) is a computerized telecommunications device that provides the customers of a financial institution with access to financial transactions in a public space without the need for a human clerk or bank teller. payments etc. Multibanco (after a registered trade mark.

Conclusion so at the end of this project of the Banking in India. External growth opportunity preferred gives us a higher knowledge which could be useful to us in some or the other context. The Banking sector in market has showed up a higher growth rate in external economic market as well. 41 | P a g e .

rbi.googlesearchengine.com 42 | P a g e .org.com www.wikipedia.in www.BIBLIOGRAPHY: www.com www.iba.

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