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Puneet Arora Ravi Prakash Saurabh Jain Shubhayan Banerjee Sushant Gupta Vaibhav Kabra
History of Indian Banking
Indian banking system can be segregated in 3 phases:1. Phase-I (1786-1935): Early phase where many small banks were formed.
2. Phase-II (1935-1969): Pre Nationalisation, Regularisation & establishment of RBI
3. Phase- III (1969-1990): Post Nationalisation, Regularisation & Growth of Indian Banking 4. Phase-IV (1991 onwards): Liberalisation and its aftermath
Regulate the issue of banknotes. ICICI bank was formed in 1955. particularly as a market regulator rather than as a controlling authority. The British East India Company established Bank of Calcutta in 1806 and later Bank of Madras & Bank of Bombay. Corporation Bank. NABARD was set up in 1982.The RBI was established in1935. PHASE 4. of India in 1969 followed by 7 other banks in 1980. 3. The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community. an apex institution for Agricultural & Rural credit. Indian Bank. Many banks were established namely Bank of India. IDBI was formed in 1964. HISTORY PHASE 3. The above 3 banks merged in 1925 to form Imperial Bank of India. Bank of Baroda. 2. Main functions of RBI were 1.First bank was established in 1786. Canara Bank and Central Bank of India PHASE 2 . To operate the credit and currency system of the country to its advantage. RBI was given the prime responsibility for regulating the banking system Larger role for Securities Exchange Board of India (SEBI). SBI was formed in 1955. Maintain reserves with a view to securing monetary stability. With stability of Indian Economy in at the beginning of 20th Century Imperial Banks played a vital role.PHASE 1. .In 1991 Narasimhan Committee recommended for Financial Sector Reforms.Nationalisation of 14 major private banks by Govt. BIFR came into existence in 1987 under Sick Companies (Special Provisions) Act 1985.
Indian Banking Scenario .
Evolution of SBI .
Evolution of HSBC .
Its strategy of 'managing for value' emphasizes the Group's unique balance of business and earnings between older. •Through the 1990s. HSBC has vigorously developed its role as one of the leading banking and financial services organisations in the world. mature economies and faster-growing emerging markets. . •The acquisition in 1959 by The Hongkong and Shanghai Banking Corporation Limited of the Mercantile Bank was a decisive factor in laying the foundation for today's HSBC Group.HSBC INDIA HISTORY •The antecedents of the HSBC Group in India can be traced back to October 1853 when the Mercantile Bank of India was founded in Bombay.
Needs Catered Stated Need Real Need Unstated Need Delight Need .
Major Players in Indian Banking .
7% Central Bank of India 16485 1253 209757 18.1% 28% PNB HDFC AXIS Bank of India HSBC Canara Bank Bank of Baroda 30599 24263 19786 24393 6983 25767 24695 4433 3926 3388 2488 3074 4025 4241 378325 277352 242713 351172 91148 336078 358397 13.Major Players in Indian Banking (Contd.61% 33.2% 38.53% 33.33% Growth Rate is in terms of Net income All figures are in INR (Crores) .) Bank Name SBI ICICI Revenue (2010-11) 97218 32621 Net Profit (2010-11) 8264 5151 Total Assets (2010-11) 1223736 406233 Growth Rate (2010-11) 14.94 88.2% 26% 42.
banking is bound to see a huge scale-up in the present decade with new operating systems.Future Potential of Banking Sector In contrast to the financial system in the west. There is significant scope for the growth of banking assets from the current level of about 30 per cent of GDP and a change in their composition between the public and the private sector. a paradigm shift in banking systems and technology is possible and desirable. a stable deposit base. Union Finance Minister Pranab Mukherjee Business World Best Bank Awards Function Mumbai 19th November. delivery channels and methods and techniques to manage the risks associated with such growth. 2011 . In short. Indian financial system remains well capitalized with moderate levels of leverage. and relatively safe investments. With sustained growth in the real sector.
Economic Environment • Global Financial Crisis • Consolidation • Steady Growth Regulatory Environment • Deregulation of interest rates • Implementation of strict capital norms • Easing up the License norms Technological Advancement • Introduction of Core Banking Solutions • Increased usage of Internet & Mobile banking .
Threat . Private banks venturing into the rural. Market Leader.SBI SWOT ANALYSIS Strength • Trusted Brand name . • Advent of MNC banks. Bank Licences to private players. Diversified Portfolio Weakness • Beaurocratic management. New Branches and ATM's. Wide Distribution Network. Expansion on Foreign soil. Government Obligations. Lacks modernisation. Less empowerment of Employees. Opportunities • Merger of associate banks with SBI. Opening up of norms for new players. Poor CRM. Growing economy. Government Owned.
Opening up of Indian banking sector for foreign players. Global presence. Strong presence in emerging markets. Strong investment in small business sector.HSBC SWOT ANALYSIS Strength • Large Capital base. Rising disposable income and requirement for personalised services. Claims of losses in US sub prime markets. More autonomy. thus better risk mgmt • Poor reach due to small branch network. Global branding may be taken negatively by few customers • High level of capitalisation to acquire assets. Adequate capital to purchase stronger banks. unlikely to borrow money. • Trust in banks has decreased due to financial losses. Weakness Opportunities Threat .
PORTER FIVE FORCES SBI Buyer Power: Low Threat of New Entrants: Low Competitive Rivalry: High Supplier Power: Low Threat from Substitutes: Low .
PORTER FIVE FORCES HSBC Buyer Power: High Threat of New Entrants: Low Competitive Rivalry: High Supplier Power: High Threat from Substitutes: Moderate .
. Advance >50k-2.5Lac. semi-urban & urban areas while HSBC covers only Urban areas. it also suits their infrastructure and resources. SBI covers rural. General <50K Income SBI is People’s Bank (Banker to every Indian). Senior Citizen Account Women’s Account Started Job–Investment plans Life Insurance Plans Salary Accounts – Premier >2.5Lac<. However HSBC targets HNI & NRI customers.Segmentation Base Descriptor Age Sex Demographic Family lifecycle SBI Child Account Student Account Senior Citizen Account Women’s Account Higher Education Loan Life Insurance Plan Retirement Plan Normal Salary Account HSBC Child Account.
Major Benefits/Solutions for Target Customers SBI Segment: Mass Audience like retail. Customised Banking Solutions International Banking Services Solutions to Global Corporates Primarily focus on investment solutions. corporate. Govt. SMEs. General Banking Solution Easy reach due to Wide Branch Network Solutions to SME business needs as well as needs of large Corporates Focuses on pure banking solution relatively than investments Plain vanilla retail banking Caters to banking needs of all Govt. depts. NRI services. Specialised privilege banking & wealth management services Majorly catering to large Corporates and MNCs . bodies HSBC Segment: HNI customers & Corporates.
Customer Life cycle based solutions Both SBI and HSBC cater to Urban Market customers Ease / convenience of banking Similarities in customers Meet the basic banking needs of customers like saving and investment Customers have trust in both the brands Seek Security and Credibility .
Difference in Customers SBI HSBC Mass Banking so penetration even to rural customers Customers are not that tech savvy Presence in major cities only Customers are very tech savvy Customers rely on branch network Rely more on RMs Saving Oriented Investment Friendly Do not seek preferential treatment Customers seek preferential treatment SBI has literate as well as literate customers Highly Literate customers .
3. 5. To open 100 Overseas Branches in next 2 Years (3-Nov-11) Tie up with Moneygram for money transfer services (17-Nov-11) .SBI Strategic Decisions 1. Technological Advances and greater Financial Inclusion Focus on Customer Centric Banking Environment Consolidation (take over among associates) 4. 2.
HSBC eye on RBS' India Retail Business . 2.HSBC Strategic Decision 1. Increasing Unsecured Loans (19-Nov-11) HSBC Living Business SME Award 3.
com www.Bibliography www.youtube.statebankofindia.co.in www.com www.com www.hsbc.rbi.sbicard.livemint.indianexpress.com www.in www.com .org.afaqs.com www.
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