A Project Report

On

An Economic and Financial Study of Commercial Banks in

Evolving a Competitive Strategy in 20th century
By
RAHUL RANE
SAP ID: 77221671530

A project report submitted in partial fulfillment of the requirements

For the degree of Master of Business Administration of
University, INDIA
 ACKNOLEDGEMENT
On the actual start of this report, I might want to broaden my true and sincere
commitment towards every one of the personages who have helped me in this
undertaking. Without their dynamic direction, help, collaboration and support, I could not
have possibly gained ground in the undertaking. I'm indescribably obligated to Joseph
Roy for principled direction and support to achieve this task. I'm incredibly appreciative
and pay my appreciation to my workforce, for significant direction and backing on
fulfillment of this task in its as of now. I stretch out my appreciation to NMIMS
UNIVERSITY for offering me this chance. I likewise recognize with a profound feeling
of love, my appreciation towards my folks and my relative, who has generally upheld me
ethically as well as financially.

Finally, however not least appreciation goes to each of my companions who

straightforwardly or in a roundabout way assisted me with finishing this venture report.

Any exclusion in this concise affirmation doesn't mean absence of appreciation.

Thanking You.
SYNOPSIS

Indian Indian banks wind up in a situation of more tight guideline, worldwide and
homegrown financial log jam, half-upheld changes, lessening modern execution, a drawn
out quiet in the capital market, expanding rivalry, overabundance liquidity and limiting
exhibit of improvement roads. In such a circumstance the client has become vital for
check the contender's contributions as far as inventive items and administrations to the
client and the purpose for client's dedication to a specific bank.

In this respect, the extent of the venture covers investigating the private area banks in
India with unique accentuation on the item portfolio, both corporate and retail, assessing
the push regions and techniques of these banks, and advancing a procedure for ICICI in
view of the above discoveries.

The philosophy utilized for the above was optional examination supported by essential
exploration as meetings of bank officials and corporates. The review was restricted to the
Bangalore market.

The accompanying private area banks have been comprehensively read up with the end
goal of contest examination.

•ABN Amro Bank

•Citi Bank

•HDFC Bank

•HSBC
•Standard Chartered

•Pivot Bank

A near examination of the banks has been done on two separate grounds:

A. Ratios, realities and accounting report figures-these incorporate the income, PAT,
premium pay as a level of normal working assets and different figures.

B. Product portfolio and highlights these incorporate advance items, Mastercard’s and
Atm's. At last based on these discoveries, suggestions have been accommodated ICICI
bank to improve its serious and give a special proposing to its corporate clients.

Following is the undertaking part's grouping of the review:

Part 1: INTRODUCTION
This is about the overall presentation of the point.
Section 2: RESEARCH METHODOLOGY
This arrangements with the strategy utilized in the review including testing method, test
portrayal, and instrumentation procedure and information examination programming.
Section 3: PROFILE OF THE INDUSTRY, COMPANY
This portrays the back ground and history of Indian Banking area and the profile of
organization, items and its critical strategies
Section 4: DATA ANALYSIS AND INTERPRETATION
This section manages examine the gathered information through survey and it
additionally deciphers the different outline and diagram.
Section 5: FINDING AND RECOMMENDATION
This is the closing section, which portray the general finding and it additionally center
around the suggestion for farther improvement
 TABLE OF CONTENTS

Chapter No Title Page No

1 Introduction 7

2 Research Design 11

Purpose 11

Objectives 11

Methodology 12

Data sources 12

Plan of analysis 13

Scope of project 14

Limitations 14

3 Industry Profile 16

4 Analysis and Interpretation of Data 44

5 Summary of Findings, Conclusions and 66

Recommendation

A Bibliography 73

B Annexure 75-88
 List of Graphs / Charts & Diagrams

Figure No Title Page No

1 General Analysis Of Banks 45

2 Net Profit and Deposits 46

3 Operating Efficiency 47

4 Earning Quality 48

5 Productivity 49

6 Asset Quality 50

7 Management Quality 51
 List of Tables

Table No Title Page No

1 Trends Among The Private Indian Banks 52

2 Comparison of Loan Products 55

3 Home Loans of Different Banks 57

4 Loans Against Shares 59

5 Two Wheeler Loans 61

6 Comparison of ATM 62

7 Comparison of Gold Credit Cards 64

 List of Annexure

Questionnaire No Title Page No

1 Questionnaire to HDFC Bank 76

2 Questionnaire to AXIS Bank 78

3 Questionnaire to Citibank 80

4 Questionnaire to STAN CHART Bank 82

5 Questionnaire to HSBC Bank 84

6 Questionnaire to ABN AMRO 86

 CHAPTER 1
INTRODUCTION

9
Introduction

With years, banks are likewise adding administrations to their clients. The Indian
financial industry is going through a period of clients market. The clients have more
options in picking their banks. A contest has been laid out inside the banks working in
India.

With tough opposition and progression of innovation, the administrations given by banks
have become all the more simple and advantageous. The previous days are observer to an
hour stand by prior to pulling out cash from accounts or a check from north of the nation
being cleared in one month in the south.

In India the banks are being isolated in various gatherings. Each gathering has their own
advantages and constraints in working in India. Each has their own devoted objective
market. Not many of them just work in provincial area while others in both rustic as well
as metropolitan. Many even are just cooking in urban areas. Some are of Indian
beginning and some are unfamiliar players.
This multitude of subtleties and a lot more are examined here. The banks and its
connection with the clients, their method of activity, the names of banks under various
gatherings and other such helpful data's are discussed. Another segment has been
observed is the impending unfamiliar banks in India. The RBI has shown specific
premium to include a greater amount of unfamiliar banks than the current one as of late.
This progression has cleared a way for few additional unfamiliar banks to begin business
in India
In such a circumstance the client has become fundamental for check the contender's
contributions as far as imaginative items and administrations to the client and the
explanation for client's dependability to a specific bank.
In this respects, the extent of the venture covers breaking down the private area banks in
India with extraordinary accentuation on the item portfolio, both corporate and retail,
assessing the push regions and systems of these banks, and developing a methodology for
ICICI in light of the above discoveries.

10
The philosophy utilized for the above was auxiliary exploration supported by essential
examination as meetings of bank officials and corporates. The review was restricted to
the Bangalore market.

Outline
ICICI Bank is India's second-biggest manage an account with absolute resources of about
Rs. 2,513.89 bn at March 31, 2006 and benefit after expense of Rs. 25.40 bn for the year
finished March 31, 2006 (Rs. 20.05 bn for the year finished March 31, 2005). ICICI Bank
has an organization of 741 branches (counting 48 augmentation counters) and north of
3300 ATMs in India and presence in 30 International areas. ICICI Bank offers a wide
scope of banking items and monetary administrations to corporate and retail clients
through an assortment of conveyance channels and through its particular auxiliaries and
partners in the space of speculation banking, life and non-extra security, investment and
resource the board. ICICI Bank set up its worldwide financial gathering in monetary 2002
to take care of the cross boundary needs of clients and influence on its homegrown
financial assets to offer items globally. ICICI Bank is the most significant bank in India
as far as market capitalization.
ICICI Bank's value shares are recorded in India on the Bombay Stock Exchange and the
National Stock Exchange of India Limited and its American Depositary Receipts (ADRs)
are recorded on the New York Stock Exchange (NYSE).
ICICI Bank has figured out a Code of Business Conduct and Ethics for its chiefs and
representatives. At June 5, 2006, ICICI Bank, with free float market capitalization* of
about Rs. 480.00 billion (US$ 10.8 billion) positioned third among every one of the
organizations recorded on the Indian stock trades.
ICICI Bank was initially advanced in 1994 by ICICI Limited, an Indian monetary
organization, and was its completely claimed auxiliary. ICICI's shareholding in ICICI
Bank was decreased to 46% through a public contribution of offers in India in monetary
1998, a value presenting as ADRs recorded on the NYSE in financial 2000, ICICI Bank's
obtaining of Bank of Madura Limited in an all-stock mixture in financial 2001, and
auxiliary market deals by ICICI to institutional financial backers in financial 2001 and
monetary 2002. ICICI was framed in 1955 at the drive of the World Bank, the

11
Government of India and delegates of Indian industry. The central goal was to make an
improvement monetary organization for giving medium-term and long haul project
financing to Indian organizations. During the 1990s, ICICI changed its business from an
advancement monetary establishment offering just venture money to an expanded
monetary administrations bunch offering a wide assortment of items and administrations,
both straightforwardly and through various auxiliaries and offshoots like ICICI Bank. In
1999, ICICI become the principal Indian organization and the main bank or monetary
establishment from non-Japan Asia to be recorded on the NYSE.
After thought of different corporate organizing choices with regards to the arising
cutthroat situation in the Indian financial industry, and the move towards widespread
banking, the administrations of ICICI and ICICI Bank framed the view that the
consolidation of ICICI with ICICI Bank would be the ideal key option for the two
substances, and would make the ideal lawful design for the ICICI gathering's general
financial technique.
The consolidation would upgrade an incentive for ICICI investors through the combined
element's admittance to minimal expense stores, more prominent open doors for
acquiring charge based pay and the capacity to take part in the installments framework
and give exchange banking administrations. The consolidation would improve an
incentive for ICICI Bank investors through an enormous capital base and size of
activities, consistent admittance to ICICI's solid corporate connections developed north of
fifty years, section into new business fragments, higher portion of the overall industry in
different business sections, especially expense based administrations, and admittance to
the huge ability pool of ICICI and its auxiliaries.. The consolidation was endorsed by
investors of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at
Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the
Reserve Bank of India in April 2002. Ensuing to the consolidation, the ICICI gathering's
financing and banking tasks, both discount and retail, have been coordinated in a solitary
substance.

12
 Chapter 2

Research Design

13
PURPOSE:

Indian banks wind up in a situation of more tight guideline, worldwide and homegrown
financial log jam, insane changes, diminishing modern execution, and a drawn out hush
in the capital market, expanding contest, overabundance liquidity and restricting exhibit
of improvement roads. In such a circumstance the client has happened to prime
significance. To remain one up in contest it has become fundamental for check the
contender's contribution as far as inventive items and administration to the client and the
explanations for client's reliability to a specific bank.

In this respects, the extent of the undertaking covers investigating the private area banks
in India with unique accentuation on the item portfolio, both corporate and retail,
assessing the push regions and methodologies of these banks, and advancing a system for
ICICI in view of the task discoveries.

Point

To distinguish and concentrate on the fundamental banks in the private area in India
rivaling ICICI banks, and check the system followed by every contender bank and push
regions.

Targets

 To distinguish the clients of banks and break down the advertising channels
utilized by different banks to promote their items.
 To distinguish and concentrate on the primary banks in the private area in India
contending
 To contrast different keeps money with deference with explicit retail items, for
example, retail credits, cards, compensation a/c and NRI administration.
 To develop a methodology for the bank to follow in view of undertaking
discoveries.

14
Philosophy

The review was exploratory in nature with essential information being gathered however
poll and accounting reports directed to an example of 50 respondents. An individual
meeting was led with respondents. A portion of the polls were topped off after a little
discussion pertinent to the subject of the review. The poll was organized with both open
and close-finished questions. The monetary record additionally effectively calculated the
different proportions. Investigation, organization and understanding of the information
were done as needs be and ends were drawn. Subsequently the survey and interview
technique alongside the asset reports were taken on with the end goal of examination.

AREA OF SAMPLING

The review was directed in Bangalore.

Testing

An example is a little part of the populace chose for perception and examination. By
noticing the qualities of the example, one can make specific surmisings about the
populace from which it is drawn. A populace is any gathering of people that share at least
one attributes for all intents and purpose and are important to the specialists. The
examining strategy embraced was accommodation inspecting. Non-likelihood tests that
are unhindered are called accommodation tests; they incorporate casual pools of
neighbors, companions, papers and so on In this concentrate on the size of the example is
100 respondents and the examining unit establishes the representatives at various degree
of banks.

Information SOURCES

15
Both essential and auxiliary information are used with the end goal of this review.
Essential information is gathered through regulating a poll to respondents and
furthermore through asset reports. Auxiliary information was gathered from paper,
magazines, and Internet.

Instruments FOR DATA COLLECTION

The poll strategy, alongside the accounting reports of the organizations, was utilized as
the principle devices for information assortment. The meeting strategy was additionally
taken on to gather essential information.

FIELD WORK

50 respondents were met and by and by consulted for the essential information of the
review. The review was directed in Bangalore, during the long stretch of March and April
2007. A casual conversation with the respondents likewise was held to obtain extra data
and to test criticism.

PLAN OF ANALYSIS

The information gathered was arranged and delegated required. Factual procedures, for
example, connection investigation, bar outlines, pie diagrams, histograms, network and,
charts and so forth, were taken on in the examination. Ends were drawn in light of the
investigation and discoveries.

16
Extent OF PROJECT

 To recognize and concentrate on the banks in the private area in Bangalore

rivaling ICICI bank.
 Zero in on explicit retail items, for example, retail credits, compensation accounts
and NRI administrations: corporate items, for example, exchange finance
administrations, unfamiliar trade administrations and working capital money of
these keeps money with highlights at every possible opportunity.
 Contrast the banks in regard with every item.
 Endeavor to check the system followed by every contender bank and its pushed
regions.
 Distinguish the clients of these banks Bangalore. In such manner, investigate the
showcasing channels utilized by different banks to push level item.
 Develop a system for ICICI bank to follow in light of the above discoveries.

Limits

 The example size was restricted to just 50 respondents.

 Time was significant limitation.
 The review was bound to Bangalore.
 To acquire data especially in regard of the working of banks is a delicate and
secret angle, consequently a few respondents were hesitant to address the
inquiries.

By and by notwithstanding the aforementioned preventions, the discoveries and ends

illuminate perspectives whose genuineness can't be dismissed.

17
 CHAPTER 3
INDUSTRY PROFILE

18
Industry Profile

Without a sound and successful financial framework in India it can't have a solid
economy. The financial arrangement of India shouldn't just be sans problem however it
ought to have the option to address new difficulties presented by the innovation and some
other outside and inside factors.

For the beyond thirty years India's financial framework has a few exceptional
accomplishments surprisingly. The most striking is its broad reach. It is not generally
restricted to just metropolitans or cosmopolitans in India. Truth be told, Indian financial
framework has reached even to the remote corners of the country. This is one of the
primary explanations of India's development interaction.

The public authority's customary arrangement for Indian bank starting around 1969 has
delivered rich profits with the nationalization of 14 significant private banks of India. In
the relatively recent past, a record holder needed to hang tight for a really long time at the
bank counters for getting a draft or for pulling out his own cash. Today, he has a decision.
Gone are days when the most productive bank moved cash from one branch to other in
two days. Presently it is basic as texting or dial a pizza. Cash has turned into the thing to
take care of.

The first bank in Quite a while, however moderate, was laid out in 1786. From 1786 till
today, the excursion of Indian Banking System can be isolated into three unmistakable
stages. They are as referenced beneath:

•Beginning stage from 1786 to 1969 of Indian Banks

•Nationalization of Indian Banks and up to 1991 before Indian financial area Reforms.

•New period of Indian Banking System with the coming of Indian Financial and Banking
Sector Reforms after 1991.

Stage I

19
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan
and Bengal Bank. The East India Company laid out Bank of Bengal (1809), Bank of
Bombay (1840) and Bank of Madras (1843) as autonomous units and called it Presidency
Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was laid
out what begun as private investors banks, generally Europeans investors.

In 1865 Allahabad Bank was laid out and first time only by Indians, Punjab National
Bank Ltd. was set up in 1894 with central command at Lahore. Somewhere in the range
of 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank,
Indian Endlessly bank of Mysore were set up. Save Bank of India came in 1935.

During the principal stage the development was exceptionally sluggish and banks
likewise experienced occasional disappointments somewhere in the range of 1913 and
1948. There were around 1100 banks, generally little. To smooth out the working and
exercises of business banks, the Government of India thought of The Banking Companies
Act, 1949 which was subsequently different to Banking Regulation Act 1949 according
to altering Act of 1965 (Act No. 23 of 1965). Save Bank of India was vested with broad
powers for the oversight of banking in India as the Central Banking Authority. During
those day's public has lesser trust in the banks. As a fallout store assembly was slow. Side
by side of it the investment funds bank office given by the Postal office was nearly more
secure. Also, reserves were generally given to brokers.

Stage II

Government made significant strides in this Indian Banking Sector Reform after freedom.
In 1955, it nationalized Imperial Bank of India with broad financial offices for a huge
scope particularly in provincial and semi-metropolitan regions. It framed State Bank of
India to go about as the chief specialist of RBI and to deal with banking exchanges of the
Union and State Governments all around the country.

Seven banks framing auxiliary of State Bank of India was nationalized in 1960 on
nineteenth July, 1969, significant course of nationalization was done. It was the work of

20
the then Prime Minister of India, Mrs. Indira Gandhi. 14 significant business banks in the
nation were nationalized. Second period of nationalization Indian Banking Sector Reform
was done in 1980 with seven additional banks. This progression acquired 80% of the
financial fragment India under Government proprietorship.

After the nationalization of banks, the parts of the public area bank India rose to roughly
800% in stores and advances took a tremendous leap by 11,000%.

Banking in the daylight of Government proprietorship gave the public understood

confidence and enormous certainty about the manageability of these establishments.

Stage III

This stage has presented a lot more items and offices in the financial area in its changes
measure. In 1991, under the chairmanship of M Narasimham, a board of trustees was set
up by his name which worked for the progression of banking rehearses.

The nation is overflowed with unfamiliar banks and their ATM stations. Endeavors are
being put to give an acceptable help to clients. Telephone banking and net banking is
presented. The whole framework turned out to be more helpful and quick. Time is given
more significance than cash.

The monetary arrangement of India has shown a lot of versatility. It is protected from any
emergency set off by any outer macroeconomics shock as other East Asian Countries
endured. This is all because of an adaptable swapping scale system, the unfamiliar stores
are high, the capital record isn't yet completely convertible, and banks and their clients
have restricted unfamiliar trade openness

Organization Profile

Introduction

ICICI Bank is India's second-biggest bank, with absolute resources of about Rs.1, 676.59
billion on 31 March 2005. ICICI Bank started its life 1994 as an entirely claimed

21
auxiliary of ICICI Limited, an Indian monetary organization, whose shareholding in the
bank was diminished to 46 percent through a public contribution of offers in India in
1997-98, a value presenting as ADRs recorded on the NYSE in financial 1999-2000, the
ICICI Bank's obtaining of Bank of Madura in monetary 2000-01, and optional market
deals by ICICI to institutional financial backers in financial 2001 and financial 2002.

In 2002, ICICI was converged with ICICI Bank to join the discount and retail tasks of the
two associations into a solitary element. (ICICI, or the Industrial Credit and Investment
Corporation of India was framed in 1955 as an improvement monetary organization at the
drive of the World Bank, the Indian government and delegates of Indian industry.) ICICI
Bank's portions are recorded on the Bombay Stock Exchange and the National Stock
Exchange of India Limited in India and its ADRs are recorded on the New York Stock
Exchange.

Business

ICICI Bank offers a scope of banking items and monetary administrations to corporate
and retail clients through a few conveyance channels and concentrated auxiliaries and
offshoots. The regions include: speculation banking, life and non-extra security, funding
and resource the board. ICICI Bank set up its worldwide financial gathering in monetary
2002 to take care of clients' cross-line needs. It presently has auxiliaries in the UK,
Canada and Russia, branches in Singapore and Bahrain, and agent workplaces in the US,
China, UAE, Bangladesh and South Africanistic Bank, which acknowledges stores under
different investment funds and fixed plans, offers a scope of advances for different
purposes, including lodging, vehicles and 2-wheelers, business vehicles, ranch gear,
clinical hardware, office gear and development gear. The bank likewise has a famous
charge card business.

Location

ICICI Bank has a network of about 573 branches and extension counters and over 2,000
ATMs

22
History of ICICI Bank

1955 : The Industrial Credit and Investment Corporation of India Limited (ICICI) joined
at the drive of the World Bank, the Government of India and delegates of Indian industry,
with the target of making an improvement monetary foundation for giving medium-term
and long haul project financing to Indian organizations. Mr.A.Ramaswami Mudaliar
chose as the principal Chairman of ICICI Limited
: ICICI arises as the significant wellspring of unfamiliar money credits to Indian
industry. Other than financing from the World Bank and other multi-horizontal
organizations, ICICI additionally among the primary Indian organizations to raise assets
from international business sectors.
1956: ICICI announced its first Dividend at 3.5%.
1958: Mr.G.L.Mehta was named the second Chairman of ICICI Ltd.
1960: ICICI working at 163, Backbay Reclamation was initiated.
1961: The first West German credit of DM 5 million from Kredianstalt was acquired by
ICICI.
1967: ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed.
1969: First two territorial workplaces in Calcutta and Madras were opened.
1972: Second element in India to set-up dealer banking administrations.
Mr. H. T. Parekh designated as the third Chairman of ICICI.
1977: ICICI supports the arrangement of Housing Development Finance Corporation.
Dealt with its first value public issue
1978: Mr. James Raj delegated as the fourth Chairman of ICICI.
1979: Mr. Siddharth Mehta delegated as the fifth Chairman of ICICI.
1982: Becomes the very first Indian borrower to raise European Currency Units.
: ICICI initiates renting business.
1984: Mr. S. Nadkarni delegated as the 6th Chairman of ICICI.
1985: Mr.N. Vaghul delegated as the seventh Chairman and Managing Director of
ICICI.
1986: ICICI first Indian Institution to get ADB Loans. First open issue by an Indian
element in the Swiss Capital Markets.

23
: ICICI alongside AXIS sets up Credit Rating Information Services of India
Limited, (CRISIL) India's first expert FICO score office.
: ICICI advances Shipping Credit and Investment Company of India Limited.
(SCICI)
: The Corporation made a public issue of Swiss Franc 75 million in Switzerland,
the primary public issue by any Indian value in the Swiss Capital Market.
1987: ICICI consented to a credit arrangement for Sterling Pound 10 million with
Commonwealth Development Corporation (CDC), the main advance by CDC for
financing projects in India.
1988: ICICI advances TDICI - India's first funding organization.
1993: ICICI sets-up ICICI Securities and Finance Company Limited in joint endeavor
with J. P. Morgan.
: ICICI sets up ICICI Asset Management Company.
1994: ICICI sets up ICICI Bank.
1996: ICICI turns into the primary organization in the Indian monetary area to raise
GDR.
: ICICI declares consolidation with SCICI.
: Mr.K.V.Kamath named the Managing Director and CEO of ICICI Ltd
1997: ICICI was the principal delegate to get away from single prime rate to three-level
prime rates structure and presented yield-bend based estimating.
: The name "The Industrial Credit and Investment Corporation of India Limited"
was changed to "ICICI Limited".
: ICICI reports takeover of ITC Classic Finance.
1998: Introduced the new logo representing a typical corporate character for the ICICI
Group.
: ICICI declares takeover of Anagram Finance.
1999: ICICI dispatches retail finance - vehicle advances, house endlessly advances for
buyer durables.
: ICICI turns into the main Indian Company to list on the NYSE through an issue
of American Depositary Shares.

24
2000: ICICI Bank turns into the principal business bank from India to list its stock on
NYSE.
: ICICI Bank reports consolidation with Bank of Madura.
2001: The Boards of ICICI Ltd and ICICI Bank supported the consolidation of ICICI
with ICICI Bank.
2002: Moodys' allot higher than sovereign rating to ICICI.
: Consolidation of ICICI Limited, ICICI Capital Services Ltd and ICICI Personal
Financial Services Limited with ICICI Bank.
Contenders of ICICI Bank
With years, banks are likewise adding administrations to their clients. The Indian
financial industry is going through a period of clients’ market. The clients have more
options in picking their banks. Subsequently there has been a weighty rivalry between the
banks and inside the bank. A portion of the significant contenders are as per the
following, they are specifically:

1. ABN Amro Bank

2. Citibank
3. HDFC Bank
4. Standard Chartered Bank
5. AXIS Bank
6. HSBC Bank
7. Canara Bank
8. Bank of Baroda
9. Catholic Syrian Bank
10. City Union Bank
11. Deutsche Bank
12. Federal Bank
13. ING Vysya Bank
14. JP Morgan Chase Bank
15. Syndicate Bank
16. Vijya Bank

25
17. Dena Bank
18. Taib Bank
19. Bank of Ceylon
20. Centurion Bank
21. South Indian Bank
22. United Western Bank
23. Scotia Bank
24. BNP Paribas Bank
25. Karun Vysya Bank
26. Indus India Bank
27. Laxmi Vilas Bank
28. UCO Bank
29. Oriental Bank of Commerce
30. Syndicate Bank
Banking administrations in India

With years, banks are likewise adding administrations to their clients. The Indian
financial industry is going through a period of clients market. The clients have more
options in picking their banks. A rivalry has been laid out inside the banks working in
India.

With fierce opposition and headway of innovation, the administrations given by banks
have become all the simpler and more advantageous. The previous days are observer to
an hour stand by prior to pulling out cash from accounts or a check from north of the
nation being cleared in one month in the south.

In India the banks are being isolated in various gatherings. Each gathering has their own
advantages and impediments in working in India. Each has their own committed
objective market. Not many of them just work in country area while others in both
provincial as well as metropolitan. Many even are just providing food in urban
communities. Some are of Indian beginning and some are unfamiliar players.

26
This large number of subtleties and a lot more is examined here. The banks and its
connection with the clients, their method of activity, the names of banks under various
gatherings and other such valuable data are discussed.

Another segment has been observed is the impending unfamiliar banks in India. The RBI
has shown specific premium to include a greater number of unfamiliar banks than the
current one as of late.

OVERVIEW OF PARTICULAR BANKS

The following section presents an overview of seven private sector banks with special
focus on unique products provided by them and their thrust areas.

ABN Amro bank

Basic facts
Revenue- 4942.2 crores
Net profit- 218.83 crores
No: of branches- 16
No: of customers-12 lakhs (approx)

ABN Amro bank has been in India for more than eight decades now. Established in 1920
it was traditionally known as a “diamond- financing bank”. In India it enjoys a strong
image as a corporate bank with comprehensive global transactions. It is gradually
increasing its real banking operations in India. As a first step it has acquired the retail
operations of bank of America. With its alliance with Mellon trust, it has also become
one of the world’s largest financial institutions providing global custody and local
custody. It also has the distinction of being the first custodian bank to handle ADR/GDR
transactions for a leading mutual fund in the country

Clients in Bangalore
 Asea brown boveri nestle

27
  PFC
 Dabur
 Air India

Retail Features
 The bank charges an over limit fees from the
Loan against shares customers if the amount of principal interest
thereupon goes beyond 60%of the value of
deposits
 A time frame of one month is given to the customer
before the shares are sold off
 It also provides loyal discount to the borrowers at the
time of renewal of the loan at the end of the
year
Shakti account  Saving account of women requiring a minimum
balance of Rs.5000
 Free e-mail and sms alerts are given
 Personal loans specially for women working

Corporate Features
Quick enquire id  A quick enquire of id and pass word is provided so
that the clerks in the company can make enquires and
keep track of balances
 A transaction password is also provided to the
company so that the officers can use it to request DDs
etc
 This essentially is an additional feature
Van Gogh banking  Exclusive banking for customers with balances more
than 20-25 lakhs
 The investment and banking aspect of the account is

28

Precious banking
Liquidity management
handled by two different people
 Features of online banking and 24 hours banking is
also provided
 Nominated by RBI to import golds,silver and platinum
 Trading in bullion
 The bank charges a commission over and above the
international price of gold and silver
 Zero balance account permitting a customer to sweep
funds to centralized position so that credit
balances fund the debit balances

Trust areas of the bank

A. Corporate
a. Trade finance services are the core strength and principal thrust area for ABN
Amro bank.
b. The bank also has a centralized trade financing processing center offering
advisory services to exports.
c. The bank was nominated by RBI to import gold, silver, and platinum from
overseas suppliers for bullion trading in India.
d. It has also entered into an alliance with a local registrar and transfer agency to
offer this service to mutual funds.
e. This interbank FX desk is one of the leading market in spot and forward Indian
rupees.
f. The bank is looking at a platform for scaling global transaction services business,
covering trade services, cash management services and payments.
g. The bank has also launched global support services in Chennai.
h. The bank is also planning to establish call centers in India.
i. ABN Amro brought about the first syndications deal based on letter of credit in
India.

29
B. Retail

a. The bank is increasing its number of ATM’s providing 365 days banking facility.
b. The bank also helps NRI’s keep track of values of properties and to go through a
property transaction.
c. It also provides legal advisory services at concessional rate to its customers.
d. The bank is going to launch credit cards and debit cards in June.
e. The bank offers the best rates on fixed deposits.
f. The bank provides cash delivery at the doorstep to all its customers.
g. Free insurance service provided on current accounts.

30
CITIBANK

Basic facts

No: of branches-25
No: of ATM centers-35
No: of customers-30 lakhs (approx)

Citibank began activity in India in 1902. it has been offering a wide scope of
administrations from cards and credits on the retail side to cash the board and overall
security administrations across the globe. The worldwide corporate financial system of
the bank was to develop business with nearby corporates and the public area, as well as
keep up with our worldwide relationship clients in the neighborhood country. Be that as it
may, presently the focal point of the bank is to board base the five areas into twelve
industry explicit regions.

Clients in Bangalore
 Britannia
 MICO
 Sasken technologies
 Birla 3M
 Infosys technologies
 Madura coats
 Ingersoll Rand
 Oracle India Pvt Ltd.

31
INNOVATIVE PRODUCTS

Retail Features
Salary Account  Min balance 1000
 Min balance of employees that a company should
have is 5
 Withdraw cash , take loans , paying utility bills. etc
Citialert  Provide information on credit cards , banking
accounts etc
 Information encompasses reminders , alerts and
confirmations
 Can be accessed from anywhere
 Customer can choose the frequency , mode of
receipt of information as well as contents
Electronic payment  Allow a customer to pay his or her credit card dues
scheme without issuing a cheque
 The customer has to authorize the bank to claim the
amount directly from the bank account
Investplus  Investment product combined with the life and
disability features
 6 different kind of investment option to choose from
 Facility provided to NRIs
Citibank ERA  Specifically designed for employee reimbursement
 Minimum delay in getting bills settled
Corporate Features
Cash management  Citicleared for metros
service  Citispeed is for the 100 big cities
 Citicheck is for the next 500 c class cities

32
  Citianywhere is for all the places
Paylink  Disbursement product offering single window
coverage
 Offered through citidirect online banking
 Customers can send future dated instruction
 Reconciliation and mis facility
 Used to make statutory payments , utility
payments , salary payments etc
Newcitibanking  Electronic platform offering global multicurrency ,
multi product information
 Provides access to cash services ,security services,
global trade import services
Asset based finance  Equipment finance for SMEs to structured finance
solutions like off balance sheet financing, portfolio
management etc

Thrust areas of the bank

A. Corporate
 The bank keeps on having a corporate concentration fully intent on holding its
situation in the area.
 Capital market is significant pushed region for the bank. In Bangalore alone there
are 5-6 individuals dealing with this area.
 Focus of the bank is on expense put together administrations with specific
accentuation with respect to cash the board framework. It spearheaded this office
in India in 1986 and keeps on being a pioneer handling volumes to 6% if the GDP
of India.
 Citibank is perhaps the biggest supplier of unfamiliar trade items in India. It is the
main subordinates house in India.

33
  Citibank has one of the biggest short-term position limits supported by the
converse bank.
 The bank offers help administration for openness following and the board
frameworks.
 The bank likewise has the qualification of being the trailblazer in securitization.
 ISO 9001 certificate for cash the board, custodial administrations, depository, and
assets move and exchange administrations.
 Citibank is the main player dealing with mass profit and interest payment for all
major monetary foundations, corporates, finance organizations, PSU's and
common assets. In 2000, the portion of the overall industry of Citibank in
corporate profit payment was over 60%.
 The bank has been focusing on corporates with incomes of $50 million or less.
 India's shipping business has been one of the designated areas.
 The methodology visualizes expansive basing the prior five center areas (trade,
programming, carrier, maker, vendor) into 12 regions with equivalent
accentuation to all.
 The bank is likewise helping multinationals arrangement shop in India while
simultaneously taking Indian enterprises abroad, consequently holding the two
clients.
 Citibank is additionally focusing on the developing SME area with regards to the
pattern.
 The bank is additionally intending to present two new items surge business and
merchant administrative center getting (of institutional clearers)

B. Retail
 In instance of pay accounts, the bank designated average sized corporates to
arrangement retail financial balances for their whole staff. In three years the bank
multiplied its clients.
 Credit cards have been center regions with Citibank offering 12 various types of
cards.

34
HDFC BANK

Basic facts
Revenue-Rs7108.7 crores
Net profit-310 crores
No: of branches-182
No: of ATM centers-1054
No: of customers-23 lakhs approx

HDFC bank restricted was advanced by India's chief lodging finance organization. The
lodging improvement organization restricted (HDFC). Joined in august 1994, as a booked
business bank it began activity in January 1995. It was among quick to get endorsement
from RBI to set up the bank in private area. It entered in to key business joint effort with
pursue Manhattan bank connecting HDFC's India corporate clients to the pursuit network
around the world. In 2000, times bank restricted was converged with HDFC bank
multiplying the quantity of branches as well as the clients. NRE and NRO accounts that
were especially non-existent developed because of the consolidation.

Clients in Bangalore
 Himatsingka seide
 PSI data systems
 HLL
 Nestle
 SRF ltd.

Retail Features
Defense salary account  Salary accounts of defense personnel
 Zero balance account
 Free international debit cards
 Free fund transfer facility
Direct pay  Register for net banking facility

35
  Purchase and directly debited to the account of the
customers and credited to that of the establishment
 No need to carry cash or cards
Freedom  E-age savings account for people constantly on the
move
 Min wage quarterly balance is a signified lower 1000 Rs
 Owner of a mobile phone
One view  Tracking and managing on line accounts
 Bring together online accounts of HDFC bank , Citibank
and ICICI bank
Corporate Features
Supply chain  End to end e–commerce solutions for collecting from
management service dealers and payment to suppliers
 Reducing processing cost
 Real time information
Corporate internet  ENET provides secure access to banking information
banking  It offers 12 layers of application and system security
 Account information
 Domestic payments
 Customizable user interface
Payment gateway  Payment are effected by debiting the account of
customers
 Transactions are routed such that the merchant portal
does not get to see the credit card number
Cash surplus service  Service related to investment of surplus banking
 Selection of right investment for the desired maturity
period and risk profile

Thrust areas of the bank

A. Corporate

36
  HDFC bank works on three skylines - being a market chief procuring a customary
income stream; zeroing in on the retail business that would contribute 15-20%
development.
 Income offering administrations like money the board administrations, care
administrations and dispersion of monetary items have been a pushed regions for
bank.
 HDFC bank is a prevailing player in giving money the executives administrations
to public and territorial stock trades and is currently clearing bank for the different
stock trades. Truth be told, it is the main bank offering the whole array of capital
market administrations.
 For internet exchanging, the bank has restricted with 40 representatives.
 The bank brings laid out e-net with 60 corporate clients to the table for cash the
board administrations through the net.
 The bank is an individual from the unfamiliar trade sellers relationship of India.
 It is the primary private area bank to be approved by CBDT to acknowledge direct
expenses.

B. Retail
 HDFC bank has been centering the retail side. It is forceful on retail resources
through various retail items it offers.
 It is the main bank to give admittance to each of the 3 significant worldwide card
networks on its ATM organization. The restrict with America express specifically
has assisted the save money with getting a few blue caught clients.
 The bank is pushing safeguard compensation records and desires to have the
compensation records of all the tactical staff with in two years time.

THE HONKONG AND SHANGHAI BANKING CORPORATION LTD. (HSBC)

Basic facts

Revenue-Rs 13731.9 crores

37
Profit-Rs 301 crores
No: of branches- 39
No: of ATM centers- 200 (approx)
No: of customers-15 lakhs (approx)

HSBC, one of the world's biggest global banks, has been in presence in India for around
150 years. The bank opened its first bank - staffed office in Calcutta in the year 1867.
The bank has the differentiation of being a trailblazer in electronic banking in India with
Atm's, charge cards and so on It was the principal bank in the country to present
computerization, ATM's and so on HSBC offers administrations going from current and
investment account on the retail side to partnership and import trade offices on the
corporate side. The bank center is around long haul associations with corporate clients in
light of its worldwide associations and broad information on Asia and Asian business.

Clients in Bangalore
 Arthur Anderson
 Compaq
 Price water house coopers
 The oberoi group
 PFC
 Titan industries
 Mascot systems

INNOVATIVE PRODUCTS

Retail Features
Private clients  One of the type of relationship banking
 Deposits to be more than 50lakhs
 Offers wealth management services ,transaction service,
custody etc
Power vantage  Deposit more than one lakh

38
  No cheque bounce facility
 Auto sweep facility
Insurance service  Offer both personal and business insurance
 Team of insurance professional design employee benefit
programmes and insurance programmes for corporates
Corporate Features
Business account  Avg. quarterly balance of Rs25000
 Door step banking, special ATM cards etc
Business vantage  Similar to power vantage
account  Avg. quarterly balance of Rs100000
 No bounce cheque protection facility
 Telegraphic transfer, etc
Corporate credit  Bill sent directly to company
account  Given to employee based on net worth of the company
Bullion trade  145 years of expertise in precious metals
 Worlds leading bullion house
 One of the 2 foreign banks offering bullion trading in
India

Thrust areas for the bank

A. Corporate

a. Corporate and depository represents 80% of HSBC India's asset report.

b. The bank is intending to zero in on the top finish of the market and hopes to
acquire Rs 75000 lakhs approx. from corporate money.
c. Concentrating on telecom, concrete, drugs, FMCG and monetary administrations
market.
d. Convert India into a worldwide handling center point.

39
e. Increase interest in India and make India the proving ground for items and
administrations.
f. HSBC's system is to get away from being an item - based offering methodology
to a need in light of by focusing on client relationship the board (CMR) there by
making nature of administration as the separating highlights.
g. Another push region is institutional financial where it is among the top players.
h. With a current 700 corporate clients, the gathering is attempting to build the
business from its worldwide clients working in India.
i. Offering considering answers for little and medium endeavors. Likewise
intending to send off items explicitly for the SME fragment.
j. The bank orders 45% of the piece of the pie in the bullion market.
k. Custody and clearing administrations orders near half of the market cash the
executives administration is ISO 9002 affirmed.
l. HSBC is the forerunner in giving undertaking and commodity finance
administrations to states, blue chip corporates and top level banks.

B. Retail

a. The banks are moving towards retailing banking. For this, it has moved from the
letter culture to the relationship culture. It has reoriented itself with abundance the
executives to choose people and target market and shopper banking and as its
fundamental need.
b. Alliance with Punjab public bank for circulation of charge cards
c. Key retail procedure in strategically pitching of items
d. Tie up with Tata AIG forever and general protection
e. Relationship rebate on flexi finance
f. Special offers at various cafés , emergency clinics and shops

40
STANDERD CHARTERD GRINDLAYS BANK

Basic facts
Revenue-Rs16303 crores
Net profit-Rs266.69 crores
No: branches-62
No: customers-22 lakhs(approx)

Standard contracted bank opened its first abroad bank in Quite a while in the year 1858 in
Kolkata. It is one of the most seasoned unfamiliar banks in India. The bank has an
administration in developing business sectors having had exercises in Asia, Africa,
Middle East and Latin America.
Resulting to its consolidation with Grindlays bank to shape standard contracted Grindlays
in the year 2001, it has turned into the biggest unfamiliar bank in India. Anyway it has
been the subject of takeover theory for quite a while and is as of now supposed to be in
converses with citi bunch and Barclays bank.

Clients in Bangalore
 Titan industries
 Britannia industries
 Tata coffee
 Asea brown boveri
 Infosys ltd
 Madura coats
 Ingersoll rand

41
INNOVATIVE PRODUCTS

Retail Features
Homesaver  Helps reduce interest on loan
 A deposit surplus funds in the homesaver account,
reduces the balances outstanding on which interest is
calculated effectively charging the EMI
Mileage  Cash overdraft up to 65%of value of car less than 5 year
old
 Post dated cheques not required
Service guarantee  Every time a service is delayed beyond the guaranteed
time ,the customer can claim Rs 50 for each day of delay
Reminders  The bank reminders for all sorts of events including
personal ones like wife’s birthday
 The reminder alert will appear on the customers
personal home page
Secure messaging  With a confidential login and pass word, through bank
can transfer information to its customers
Corporate Features
Private label  Allow correspondent bankers to generate incremental
from trade in Asia
 This is done by moving the domicile of the letter of
credit issuance to hongkong to take advantage of the
favorable pricing dynamics there

Cash management  Facility of investing end of day cash balance in countries

services where regulations permit or the transfer of funds into
and out of accounts after bank hours

Thrust areas of the bank

42
 A. Corporate

 Stan graph is the no: 1 in depository in India being a market chief in

neighborhood cash and currency markets. As a matter of fact till around 1998 the
bank put resources into the retail area, depository was the main major add to
incomes.
 Merchant banking and resource the board will be the key spotlight regions for the
bank on its corporate side.
 The creation of the corporate portfolios is 40% Mnc's, 15% PSU's and 45%
enormous estimated organizations.
 The bank is wanting to zero in on the Indian obligation market.
 Stan graph is an innovator in exchange finance and furnishes master help with
letter of credit repayment.
 It is a main money the board provider in the developing business sectors with cash
item trained professionals and client care focuses giving clients viable
arrangements.
 ISO license for the functional limit in worldwide exchange.
 Stan outline is likewise a top private area bond arranger.

B. Retail

 The bank is attempting to build its portion in the retail area.

 The bank is setting up booths in mail depots around to use on the circulation
strength and client base of the mailing station.
 As a piece of the arrangement with the postal division, the bank is intending to
utilize speed post to send its Visas to its clients.
 The bank is additionally wanting to send off select Visas for the representatives of
dept. of post.
 Retail banking contributes near 40% of the bank's income and is expecteds to
increment to 60% by 2005.

43
 CHAPTER 4
ANALYSIS AND INTERPRETATION OF DATA

44
 GENERAL ANALYSIS OF THE BANK

This part analyzes the different private area banks involving specific boundaries for
investigation. Every one of the figures given are for the year 2004-2005 given in crores of
rupees.

REVENUE

Figure 1

If there should be an occurrence of incomes for banks, bigger the income procured by the
bank, the better it is as incomes contribute straightforwardly to the productivity of the
bank. In such manner, Stan graph is the undisputed pioneer with incomes of Rs. 15,302.8
crores. ICICI bank follows up as close second with incomes adding up to Rs. 12, 056
crores.

45
NET PROFIT AND DEPOSITS

Figure 2

As on account of any business, even on account of the financial area likelihood and
wellsprings of assets are significant. In that capacity, higher the net benefit and higher the
stores the better for the bank. While high benefits are sign of the bank, high stores talk
about the degree to which the bank has been in a situation to prepare assets from clients.
ICICI bank has both the most noteworthy net benefit as well as the biggest store base
among the private area and unfamiliar banks that have been thought about.

46
OPERATING EFFICENCY

Figure 3

Estimated as far as premium pay/normal working assets, it talks about the degree to
which the assets have been sent actually to procure revenue income for the bank. Higher
this proportion the better. On this boundary, Stan outline is the most effective of the
multitude of banks. ICICI bank's presentation is near the normal execution of the banks.

Estimated as far as non-premium pay/normal working assets, this proportion talks about
how much expense-based pay that a bank can acquire from its functioning assets.
Decided on these boundaries, the exhibition of GTB outperforms that of any remaining
banks. ICICI keep money with a proportion of around 2.01 is by and by near the normal
execution of the banks.

47
EARNING QUALITY

Figure 4

Judged on the basis of operating profit/ avg-working funds, it speaks of how profitably
the funds of the bank have been used. Stan chart is the leader in this arena with a ratio of
4.15. ICICI bank is way below this figure with a ratio of 2.12 indicating that the funds
probably have not been utilized properly.

Taken as a ratio of other income / net interest income, the ratio speaks of the ability of the
bank to work on lower spreads. Based on this parameter, the performance of ICICI bank
is way beyond that of the other banks speaking of the ability of the banks to cut down
interest rates if the need arises.

48
PRODUCTIVITY

Figure 5

Productivity of the bank has been measured in terms of the business and profitability per
employee. It speaks of whether the bank is over or understaffed. Based on these
parameters, ICICI bank is leader with the highest ratios for productivity based on both
business per employee and revenue per employee.

ASSET QUALITY

49
Net NPAs / Net Advances (%)

Figure 6

Asset quality measured in terms of net NPA’s as a percentage of net advances speak of
the assets that are doubtful to return the interest due in the near future. Judged on this
basis, ABN Amro bank has been most judicious in its lending’s. the performance of
ICICI bank is close to average performance for all the banks.

MANAGEMENT QUALITY

50
RETURN ON ASSETS

Figure 7

ABN
ICICI HDFC GTB UTI STANCHART HSBC
AMRO
1.7 1.9 1.3 0.7 4 0.9 1.6

Measured in terms of return on assets, it speaks of how successful the management was
in using the assets judiciously. On this parameter Stan chart once again out performs the
remaining banks. The performance of ICICI banks is again close to average performance
of the banks.

TRENDS AMONG THE PRIVATE INDIAN BANKS

51
Analysis made on the basis of any one year’s figures could always lead to faulty
conclusions as the year of review could have been an exceptional case. For example
around the year 2006 ICICI bank went in for its ADR and this could have affected the
return on assets of the bank. As such the consolidated figures of ICICI bank and ltd have
been taken and compared with the figures of the other banks for the year 2004-2005.
While the scope for error is still present as two years in still not a good indicator, the fact
that any banks have not published the audited results for the year 2005 has been a
constraining factor in this regard.

ICICI HDFC GTB UTI

Branches
2004 820 256 150 169
2005 1400 518 310 314
Size of the bank
Deposits ( in crores)
2004 47378 32658 21734 18924
2005 65749 48759 34976 27985
Net profit ( Rs in crores)
2004 1100 657 265 190
2005 1411 993 357 270
Operational Efficiency
Interest income / Avg Working funds
2004 9.0 4.7 10.7 10.8
2005 40.5 8.6 9.4 8.2
Non-interest income/ Avg working funds
2004 2.0 1.9 3.8 2.0
2005 6.3 1.1 1.7 1.5

Earning Quality
Operating profits / Avg Working fund

52
 2004 2.1 4.2 4.13 2.6
2005 10.6 2.4 2.1 1.3
Other income / net interest income
2004 22.2 40.5 36 18.9
2005 15.7 14.7 18.3 18.6
Productivity
Business per employee
2004 46.44 9.42 8.55 12.49
2005 8.15 14.7 10.08 9.59
Operating profits per employee
2004 .98 .09 .12 .07
2005 .06 NA .17 .07

Table 1
A glance at the proportions and figures and both for 2004 and 2005 uncovers that when
contrasted with the wide range of various banks in the private area in India, ICICI bank
has developed huge amounts at a time. Its branch network has expanded thus has its store
base. However, this was essentially because of the consolidation between ICICI bank and
the bank of Madura. Notwithstanding, the productivity of the organization has dropped
radically. This drop has come principally from the corporate loaning of the past ICICI ltd.
The net benefit as well as the non-premium pay keeps on being far past the pay of the
other three banks in the private area. Comparably is the situation with procuring quality
proportions. The fall in the benefit has additionally impacted the efficiency proportions of
the bank.

Taking everything into account, banks in India have turned risk disinclined. Banks, which
are prevalent monetary delegates in the economy, are going in to business that must be
beneficial. Banks are keener on placing their cash into risk free government protections
as opposed to the business. The justification behind this could be that loaning to the
business involves higher gamble, which impacts the banks capital ampleness constraining
the bank to raise value, which is troublesome in a scarcely dynamic capital market. The

53
very truth that the vast majority of the unfamiliar banks have depository administrations
as a push region makes the statement that banks are disinclined to loaning to corporates.

While the significance exacted on productivity has expanded hugely, banks on the size
are collecting a practically equivalent significance. To battle unfamiliar saves money with
worldwide presence, banks today must be "large". What's more, size here isn't simply as
far as resource base however I likewise as far as geological exploration. Furthermore, to
do as such a greater part of the banks going in consolidations. This is proof by the plenty
of consolidations that have been occurring over the most recent two years. Size is of
significance t cut costs. Assuming a bank wishes to turn into a general bank gave answers
for al the monetary prerequisites of an individual or corporate, on the off chance that it
wishes to need to guarantee that they are large to the point of offering types of assistance
that arrive at the clients.

Aside from size, one region that is acquiring significance is the area of charge-based pay.
Being a gamble free wellspring of incomes, banks are increasingly focusing on pushing
charge-based action. The market size of the charge-based movement is about Rs.111.1
bn. This area developed at around 83% the net expansion in interest pay in 2001 and
added up to going to around half of interest pay.

Another pattern that has occurred in the financial area is the center being exacted upon
the retail side. It has been perceived that the retail loaning draws in far more prominent
spreads and are a ton safer than corporate loaning. As such banks are utilizing innovation
to expand their contributions to the retail clients. Be it laying out more ATM's or
presenting telephone banking, web banking and portable banking, retail clients is
acquiring significance today.

54
COMPARISON OF SPECIFIC PRODUCTS ACROSS BANKS

The section provides a board comparison of certain products across banks on the basis of
the essential features of the products. Specifically, we take a look at loan products, credit
cards and ATMs.

COMPARISON OF LOAN PRODUCTS

The loan products offered by various private sector banks and foreign banks have been
compared to various parameters and an effort has been made to find the bank that makes
the best offering to the customer in each of the loan categories.

Features ICICI HDFC UTI Citibank Standard HSBC ABN

chartered Amro
Loan New car # Up to NA Up to # #
amount up to 80% 85%
90%
Old car
up to
80%
Interest New car 12.5%and 14.55 NA 14.25%- 13% NA
rate 14.5%- above 16% and
16.5% 8.5% above
Old car 18.5%
18.5%- 18.5%
20%
Processing 2%or 0 0 NA NA 2% NA
fees RS1000
if loan<1
lakh
Repayment Max of 5 Used car # # # # #

55
 yrs 4 yrs
Processing 4 days at 2 days 15 days NA 7 days 2 days NA
time maximum
Pre Allowed 6 months Allowed After 6 Allowed After 6 Allowed
payment to 5 years months months
Pre 2% 2% 0 3% 0 2% if 4% if
payment more more
fees than than
25% 25% pa
pa nil after
3 years
Guarantor No No Yes No No No No

Table 2

Vehicle credit proposed to clients have been thought about principally based on advance
sum, loan costs, handling expenses, pre-installment charges and handling time. The
relative table uncovers that of the multitude of banks, the loan costs presented by HDFC
bank are the most serious. HDFC bank offers the least pace of 12.5% for a little fragment
vehicle as against different banks that charge at least 14.5%. Furthermore, the bank
charges no handling expense when 2% is by all accounts the standard. the contribution of
HSBC is additionally basically the same as that of HDFC manage an account with a
financing cost that is 0.5% focuses higher. Furthermore, they likewise charge a handling
expense of 2%. Yet, with a handling season of only 48 hours it is probably going to be
the best option in contrast to a retail client.

When contrasted with those two banks, ICICI bank offers as a lot higher pace of 14.5%.
However, at that point this is comparable to the vast majority of different banks in the
private and unfamiliar area. Further, ICICI bank processes its credit in 4 days, which is
essentially lesser than any remaining banks. With the greater part of its different elements

56
comparable to different banks, ICICI bank is probably going to be the third decision for
all retail clients.

HOME LOANS

Features ICICI UTI Citibank Standard HSBC

chartered
Eligibility 21-65 yrs 24-60 yrs NA 24-53 yrs 25-60 yrs
Interest rates Adj 11% Max NA 11.3% 16.5%
Fix 12% 12.75% 12.3%
Service 1% 1% NA 1.5% 1.5% less
charge 0.5% for
customers,
0.75% for
power
vantage
customers.1%
for premier.
Repayment 20 yrs 15 yrs 15 yrs 15 yrs 15 yrs
Processing 14 days 15 days NA 7-10 days 10-15 days
time
Pre-payment 2% 0 0 0 0
fee
Guarantor Yes only if Yes No No Only if loan
you are soft is more than
ware 12 lakhs
professional
Loan Up to 85% Up to 80% Up to 80% Up to 85% Up to 85%
amount of 30 lakhs

Table 3

57
In the event of home credits, it has been accepted that the chief factors that would impact
the choice taken by a client would be an advance sum, loan fees, reimbursement period
and the help charge. The different banks have been assessed on the highlights. At the out
set apparently both Stan diagram and ICICI make offering that are similarly serious.
Anyway, ICICI bank charges an imperceptibly lower rate both for premium and for
administration charge. Moreover, they likewise give a reimbursement time of 20 years as
against Stan diagram that offers just 15 years. While ICICI bank charges a pre-
installment expense of 2%, it is expected that this is definitely not a significant thought
for a client credit. As such ICICI bank scores better compared to different banks in the
contributions it makes and is probably going to be the best option for a client searching
for home credits.

58
 LOANS AGAINST SHARES

Features ICICI HDFC UTI Citibank Standard HSBC ABN Amro

chartere
d
Eligilibility Should # Tempor # # # #
hold arily
forms in suspend
demat ed
form
Loan amount Up to # # # # # #
60% of
200000
Interest rates Max Max 16% NA 17-19% 16.5% #
14% 15%
Processing 0.5% NA NA # NA 1.5% NA
fees less,0.5%for
customers,0.7
5%for power
vantage
customers,1%
for premier
Disbursement 4 days 3 days NA 1 week 1 week NA
time
Commitment NA NA NA NA NA Applicable
fees
Over limit NA NA NA NA 2% 150+2%
fees

59
Concessional Website NA NA NA NA #
rate of speaks
depositary of ATM
account and phone
car loans banking
services
ATM Free Debit- NA # Debit- #
ATM cum cum
cards ATM ATM
given
Phone # # NA # # #
banking

Table 4

Credits against shares have been looked at on various elements, the most significant
being loan fee and handling time is especially significant in themselves are fluid
protections and if there should be an occurrence of need a client can continuously decide
to sell the offers on the off chance that he/she needed the cash critically. The rates
presented by ICICI bank at 14% are the most cutthroat. The handling season of around 4
days is likewise among the most reduced. On this premise one might say that the
contribution of ICICI bank is generally alluring. Especially so since the wide range of
various elements like ATM cards are additionally given by the bank.
Rivalry for the ICICI bank would be from HDFC bank, which offers credits at 15%.

60
TWO WHEELER LOANS

Features ICICI bank HDFC bank

Loan amount Up to 85% Up to 90%
Interest rates NA Max 11.5%
Processing fees 2% 2%
Repayment 3 yrs 3 yrs
Processing time 48 hours 48 hrs
Pre-payment Allowed Allowed
Pre-payment fees 2% 0
Guarantor NO NO

Table 5

In the bike section, there are just two players-HDFC bank and ICICI bank. None of the
other private area banks or unfamiliar banks offers bike advances and any individual
looking to purchase a bike would need to take an individual credit to do as such. Of these
two banks, the terms of presenting of HDFC bank is more cutthroat when contrasted with
those of ICICI bank. Their loan costs are a cutthroat 11.5% and they charge no
installment expense. Anyway given the way that ICICI bank makes the vast majority of
different contributions, a retail client could pick ICICI bank makes a large portion of
different contributions, a retail client could pick ICICI bank simply a much of the time as
HDFC bank. At the end of the day the opposition is firm.

61
COMPARISONS OF ATM

ATM cards
Bank name GTB HDFC ICICI UTI HSBC CITI ABN STAND
BANK AMRO CHART
Eligilibility Savings All All All All All All All
account account account account account account account account
holder holders holders holders holders holders holders holders
only
Withdrawal Rs Rs Rs Rs Rs Rs 30000 Rs Rs
limit 20000 15000 20000 25000 30000 per day 30000 30000
per day per day per day per day per day per day per day
for all
saving
account
holders
and
100000
per day
for all
current
account
holders

62
Services Account Mini Cheque Cash Withdrawal Withdrawal Withdrawal
status, statement, book withdrawal, and deposit and deposit and deposit
request transfers , request, cheque of cash of cash of cash
for bill cash request and
cheque , payments deposit and deposit,
demand withdrawal, account
draft balance statement
request enquiry and fund
recover
Penalty NA Rs 100 in Rs 250 in Rs 100 in Rs 200 in NA Rs 200 in
case of case of loss case of loss case of loss case of loss
loss of of card of card of card of card
card

Table 6

The offerings most of the banks are the same in case of ATM card. However the
withdrawal limit incase of HSBC is better than Citibank or Stan chart in the sense that the
current holders of HSBC can withdraw greater amounts.

ICICI not only offers a lower withdrawal limit but also charges the highest penalty n case
of replacement of card.

63
COMPARISON OF GOLD CREDIT CARDS

Card Citibank ICICI Stan chart HSBC UTI

schemes
Card Gold Gold Gold Gold card Gold
category preferred standard
Association Master and Visa Both master Master and Master
visa and visa visa
Validity International International International International International
Joining fees NIL Rs 3000 Rs 5000 NIL NA
Add on Rs 5000 Rs 3000 Rs 5000 NIL Rs 5000
cards
Annual Rs 2000 Rs 2000 Rs 3000 Rs 1500 Rs 3000
charges
Cash Rs 25000 for 40% of the 30% of the 40% of the 60% of the
withdrawal the first year credit limit credit limit credit limit credit limit
& then 60%
of the credit
limit

Interest on 2.95% 2.5% 2.5% 2.95% 2.95%

cash
withdrawal
Credit limit Rs 30000-Rs Rs 40000-Rs Rs 60000 Rs 50000- Rs 250000
250000 300000 Rs300000
Interest rate 2.95% 2.5% 1.75% 2.95% 2.95%
Late fees 5% 15% of the 15% of the Rs 1000 5%

64
 min amount min amount
Credit 45 days 52 days 52 days 51days 45 days
period

Lost card Before No coverage No coverage No coverage Zero loss

liability report it is card liability
the liability
to the
customer

Table 7

In the event of Mastercards, it has been accepted that the central factors that have an
effect on the choice taken by a client are credit period, credit limit, loan fees, cash
withdrawal and yearly charge. The relative given above uncovers that the contribution of
Citibank, UTI, and Stan diagram are for the most part appealing. The terms presented by
ICICI however not the best in the market is either extremely near the most incredible if
there should arise an occurrence of credit time of 50 days with that of Stan graph or are
similar with the market normal.

65
 CHAPTER 5
SUMMERY OF FINDINGS, CONCLUSION AND
RECCOMANDATION

66
FINDINGS

1. The old prediction that once a client is a client has turned into a fantasy in
the current day cutthroat world. Brand picture on financial area no longer
does something amazing with the shopper. So to hold the client to the bank
and draw in new purchasers the ICICI Bank should concoct techniques that
is effective and skilled in the current situation.
2. Subsequent to breaking down the reaction of the respondent through poll
and perception coming up next were found in the review.
3. On account of income of banks, Standard Chartered bank is the undisputed
pioneer. ICICI follows up as second in incomes.
4. On account of net benefit and stores ICICI bank is driving with both the
most elevated net benefit and biggest store among the private area and
unfamiliar banks.
5. On account of working productivity, standard sanctioned bank is the most
effective of the multitude of banks. Avg execution is shown by ICICI bank.
6. On account of procuring quality, standard graph is the forerunner in this
field with a proportion of 4.15. ICICI bank is way beneath this figure with a
proportion of 2.12 showing that the assets presumably have not been used as
expected.
7. On account of efficiency, ICICI is the pioneer with the most elevated
proportion of usefulness in view of both business per worker and income per
representative.
8. On account of resource quality, ABN Amro bank has been most reasonable
in its arrivals. ICICI bank is close of Avg execution for every one of the
banks.
9. Yet again on account of the executives quality, stand sanctioned out plays out
different banks

67
Suggestions

In light of the discoveries with respect to the exhibition and push region of
the other contending private area and unfamiliar banks, the patterns in the
financial area and the eventual fate of the area as such an endeavor has been
made to point our regions that the bank might potentially focus upon.

Corporate Sector

1.Continue spotlight on cash the executives administration: with an ever

increasing number of organizations liking to rethink their assortment and
installment, the area expense based action developing. Given the tremendous
geological presence of ICICI bank that can be utilized upon, the bank is
better positioned to offer these administrations at a cutthroat rate when
contrasted with unfamiliar banks.

2.Continue focusing on SME fragment: little and medium ventures through

in presence for a really long time, have acquired noticeable quality just in the
new past. As a matter of fact ICICI bank got this fragment because of their
consolidation with the bank of Madura. The unfamiliar banks have
additionally just barely begun focusing on this fragment. As such utilizing on
the ability of the staff of bank of Madura, ICICI bank ca attempt to move
quicker than serious and utilize the primary move for consolidation.

3.Focus on FX administrations: FX administrations are a region that is being

concentrated upon exclusively by one bank-Citibank. Different banks are not
generally focusing on this item. With Indian ventures searching for a
worldwide presence, the requirement for this item is probably going to
develop. That separated, FX administrations from near 13% of the market
for charge based item. With that market developing, FX administrations

68
would likewise develop. Thusly, ICICI bank could focus on this item and
attempt to make alluring contributions to the clients in the area.

4.Provide warning administrations by means of subject matter experts. The

bank could name experts in specific distinct modern areas who wouldn't just
assess projects for the bank yet would likewise give warning administrations
to the clients on the progressions that make in their speculation. This
individual could be free of any financing that the bank would so there is no
conflict of revenue for him has assessed the ventures.

5.Single point interface: one of the grumblings that clients had against
private area and unfamiliar banks was that, the organization needed to
manage different supervisors relying on the items that the organization
required. That is, for cash the executives administrations there was one
relationship chief, while depository had another. The organizations observed
this exceptionally perturbing and liked to manage a solitary person from a
bank, which could thusly interface with his partners.

6.Decentralization of independent direction: one more objection that clients

had against banks was that there was a postpone data move and
endorsements, principally in light of the fact that all banks branches needed
to contact the authorities in their administrative centers prior to supporting
clients. Decentralization for the bank would take care of this issue.

7.Flexibility and personalization of administrations: one more explanation,

that a portion of the organizations referenced, for their adhering on to the
public area banks was the inflexibility and generic touch with the unfamiliar
and private area banks.

8.Collecting bank for immediate and circuitous duties: a branch-off of the

way that clients managing a couple of unfamiliar banks were managing

69
HDFC bank on account of their sculptures of being a gathering financier for
direct duties.

Retail Sector

1.Loan against offers and house advances: given the developing significance
of the retail area and the bank contributions being the most grounded in the
event of house endlessly advance against shares, ICICI bank could see
pushing home advances and credit against shares.

2.Tie up with American Express: ICICI bank could see conceivable restrict
with American express for secured check as well as for giving ATM offices to
the clients of American express. This would get them high total assets clients.

3.Continue corporate Visas: corporate Mastercards would assist workers

with taking care of true bills through cards. This would save both then and
the organization the difficulty of repaying the use.

4.Electronic clearing house: with RBI giving it endorsement for foundation

of an electronic clearing house by the banks, a move toward this path would
assist keeps money with hurrying their clearing interaction and give retail-
time on-line administration to their clients that would help corporate.

70
CONCLUSION

71
CONCLUSION

A cautious report has been done in the area of business banks in Bangalore to develop a
cutthroat technique for ICICI Bank through surveys, perception, interviews and through
appropriate direction of individual resources.

The review which went on for one month has given data to get the working of various
Banks in Bangalore and their solidarity and shortcoming. The venture covers examining
the private area banks in India with unique accentuation on the item portfolio, both
corporate and retail, assessing the push regions and techniques of these banks, and
advancing a system for ICICI.

The review is confined to 6 Banks to be specific Amro bank, Citibank, HDFC bank,
HSBC, Standard sanctioned and AXIS bank and the realities plainly shows that Standard
Chartered Bank leads in income terms though ICICI leads if there should arise an
occurrence of stores and income. On account of working proficiency Standard contracted
bank is on the top that implies it is the most proficient bank. Yet again on account of the
executives quality, Standard contracted is at the top.

The review assisted me with getting that the association (ICICI Bank) is confronting a cut
off contest and it influences the productivity of the Bank. I was additionally ready to see
a portion of the downsides and issues of the ICICI Bank, for example, Decentralization of
dynamic which make delay in data move and endorsements, non adaptability and
personalization of administrations, non accessibility of expert to counsel the banks clients
on different speculation. I trust that assuming the bank is figured out how to beat these
downsides and issues, it can build its effectiveness.

72
BIBLIOGRAPHY

73
BIBLIOGRAPHY

 www.google.com

 www.citibank.com

 www.icicibank.com

 www.stanchart.com

 www.hdfc.com

 www.hsbc.com

 www.alstavista.com

 Capitaline database from colleges.

 Magazines, journals etc.

 Financial management book.

74
ANNEXURE

75
 INTERVIEW QUUESTIONS

Questionnaire for HDFC bank

(Questionnaire No 1)

1. "… … to stay the reasonable market pioneer in contracts in India". Contracts as in retail
advance? Which part of HDFC's enterprises does a home loan frame?

What is HDFC's portion in the home loans market?

2. What is HDFC's portion in the financial area

3. "the bank marked an essential business coordinated effort concurrence with pursue
Manhattan bank in February 1999." To what end? How did HDFC acquire? Is it checking a
potential consolidation out?

4. Times bank blend what worth did it include terms of branch organization, geographic
reach, client base, elective conveyance channels?

5. Leader in real money the board - what is HDFC's portion? How would you separate your
administration? Pioneer in what the future held exchange or no. of clients?

6. What are HDFC's depositories activities like? How it is situated concerning contenders?

7. In instance of corporate banking/retail banking, what is HDFC's pushed region?

8. Is a protection compensation account any unique in relation to an ordinary compensation

account? Assuming this is the case what are extra highlights accessible on the guard
compensation?

9. Sweep-in-office - is it not accessible for generally fixed store accounts?

10. Where is HDFC set among the banks in India?

11. Who are HDFC's significant rivals?

12. Which area is HDFC focusing on? Limited scope, medium scale or huge scope?

13. How profound is HDFC's managing in the forex market?

14. CMS is one of our push regions. How is HDFC advancing this region?

76
Questionnaire for AXIS bank

(Questionnaire No 2)

1. “AXIS provides an integrated service to an acquire ranging from strategic

vision through to completing the deal & integrating the acquired business”.

Who exactly are the clients and what are the services provided?

2. What are the corporate clients of AXIS bank? Is bank targeting any particular
segment like say the large or the medium enterprises?

3. No of corporate clients AXIS has?

4. What is the revenue per customer for UTI?

5. % shares both in corporate and retail sector?

6. Revenue per branch?

7. No of customers per employees?

8. Revenue per ATM?

9. Do AXIS offers interest options?

10. Who are the major clients of UTI? What is the maximum amount lent to any
one customer? What is the basis by which AXIS is differentiating its products
vis-à-vis its competitor’s products?

11. what is nature of tie up that UTI bank is planning with Belgium financial
group Forties?

12. UTI has set June’ 02 as the deadline for preferential allotment of shares to the
foreign strategic partner… how far has the discussion progressed?

13. How far has UTI’s plan of financing Tata steel succeed?

14. Did the tie up between AXIS and Exim bank finally work out?

77
Questionnaire for Citibank

(Questionnaire No 3)

1. Is a card a thrust area for Citibank? If so, what is Citibank doing to promote its
cards?

2. How many banks in India have an association with all the three card services
providers? Has any special benefit accrued to Citibank as a result of this
association?

3. What is the minimum no of employees required to start a suvidha account?

4. How successful has net banking been? How many customer use net banking?

5. What is the total no of customer Citibank has?

6. What is the total no of ATM centers that Citibank has?

7. What is the revenue per customer, revenue per employee and revenue per ATM
for Citibank?

8. Does Citibank also have some sort of a portfolio investment scheme?

9. Who are Citibank competitors in the retail segment?

10. Who are Citibank’s major competitors?

11. What is Citibank’s share in the Indian baking sector, specifically in the corporate
and retail sector?

12. What is the net return that Citibank gets from a corporate?

13. What is Citibank doing to push cash management service and capital market
products which are thrust areas for the bank?

14. Are there any innovative products that Citibank offers? What has the customer
response to such products been?

78
Questionnaire for Stan Chart Bank

(Questionnaire No 4)

1. What is the total no of branches that Stan chart has in India?

2. What is the total no of ATM centers that Stan chart has?

3. What is the total no of customers Stan chart has?

4. What is the % of share of Stan chart is corporate and retail segment?

5. What is the revenue per customer per customer for Stan chart?

6. What is the revenue per branches?

7. What is the no of customer per employee? What is the revenue per ATM?

8. How often is it that you fail to live up to the services you promise to provide and
are forced to pay the Rs.50 per day penalty?

9. “Stan chart has maintained a long presence, since 1858, with particular emphasis
on relationship banking…. What do you mean by relationship banking? How are
you stressing on this area?

10. “Stan chart is leading player in the world’s major financial centers with clear
leadership in the emerging markets…” said about the global markets. What has
Stan chart does specifically for the emerging markets? What is its % markets
particularly India?

11. “Stan chart earned peer recognition when it over took Citibank in consumer
banking….” In what way has Stan chart overtaken Citibank?

12. What is Stan chart bank doing to increase its share on retail sector?

13. Do you have any charges for investment advisory service?

14. What is the charge incase of the fund transfer and other facilities available on
internet banking?

79
Questionnaire for HSBC

(Questionnaire No 5)

1. What is the total no of branches that HSBC has in India?

2. What is the total no of ATM centers that HSBC has?

3. What is the total no of customers HSBC has?

4. What is the % share of HSBC is corporate and retail segment?

5. What is the revenue per customer for HSBC?

6. What is the revenue per branch?

7. What is the no of customer per employee? What is the revenue per ATM?

8. The cost of the fund for HDFC bank is about 6.4% what is it for HSBC?

9. “HSBC India is large in telecom, cement, pharmaceuticals, FMCG and the

financial service market.” Does the same hold true for HSBC operations in
Bangalore also?

10. Going by the general trend in the market, is HSBC also looking at merging some
bank?

11. Generally how many banks are appointed as clearing bank by the BSE?

Which are the other banks offering this service?

12. “HSBC is one of the largest users of SWIFT in the world, and is a licensed
SWIFT vendor….” Is there any advantage in being a SWIFT vendor?

13. Is HSBC planning go for banc assurance?

14. “Our treasury and capital market group ranks among the largest such business in
the world…” in fact treasury contributes to 55% of HSBC’s total revenue. How is
the bank pushing this area?

15. Do any of the other banks offer co-branded credit cards?

80
Questionnaire for ABN AMRO Bank

(Questionnaire No 6)

1. What is the total no of branches that ABN Amro has in India?

2. what is the total no of ATM centers that ABN has?

3. What is the total no of customer ABN has?

4. What is the % share of ABN is corporate and retail segment?

5. What is the revenue per customer for ABN?

6. What is the revenue per branch?

7. What is the number of customer per employee? What is the revenue per ATM?

8. The cost of fund for HDFC bank is about 6.4%. What is it for ABN Amro?

9. ABN already has housing loans. So in what way it foray into home finance going
to be different from the housing loans?

10. “Dutch banking group ABN Amro NV set up global support center for its trade
and advisory unit in madras”…. What are its implications?

11. ABN Amro is looking at using India as a platform for scaling up its global
transactions services in India? What has bank done in this regard?

12. “Balance transfer programme” – is ABN the only bank making this offers?

13. You claim that ABN rates are among the highest in the country, what are the other
banks offering similar/ higher rates?

14. Does ABN provide real time on line service?

81
THANK YOU

82