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Size of India Financial

India has a rapidly growing banking and
financial service sector.
Market capitalisation (NSE) of over US$1.6
billion as of Dec 2007
Mutual funds assets under management of
US$1.30 billion in 2007
Over 44 venture capital and over 100 Private
Equity Funds are in India (still growing)
IFS accounted for 9.7% of India's GDP.
Banking Segment
Currently 2.5 % of the GDP
Assets under Management approx 90% of
If growth and value added services are
included then it would be 5% of GDP
Retail Banking Stands @ $6.4 bn
Total Banking > $100 bn
Banking Segment
Overview contd….
Banks No. of Banks Total Assets US $
Public Sector Banks 28 575
Indian Private Banks 25 175
Foreign Banks 29 48
Total 82 758
Technology in Banking
IT spend by banking and financial services
industry in USA is 7% of the revenue as
against around 1% by Indian Banks.
Shared ATM network to reduce costs, increase
RTGS system running since 2004 and covers
15,000 branches
Adoption of Technology to lead to business
transformation and cost advantage in the long
Sales Organisation
• Sales Channel in the Branch Area Level
– Every Branch has its own sales staff
– Cross Area approach is not allowed
– Contract staff and staff from sister concern Adro
• Personal Bankers in every branch
• Preferred Banking RM account balance of 5L to
• Service RMs Take care of service
• Imperior Banking RM (25L to 50L)
• Wealth management A/c Bal 1cr +
• NRI Desk - NR Banking relationship Bankers and
they cater to Private Banking customers also.
Sales Organisation
Trade and Finance
1 Tr finance RM has 5 branches under him
Current Account trade finance TT Bills

Private Banking (Independent Structure)
Report to TL who reports directly to Group Head
who reports to Aditya Puri
Sales Manager
Maintain and grow branch business
Set Up ATMs
Organize for short term deposit schemes
Closely interact with DSAs to achieve
designated targets
Sales Channels
Through Banking Chanels
Outsourced DSAs
Either thru Outbound call centres.
Customer Direct Contact
Recruiting and selection
Marketing HDFC is conservative
Not good pay masters but good incentives
Direct approaches are preferred e.g. thru the
Through Reference
Recruitment thru placement Companies on a
case to case basis for higher executives.
Selection Practices
Graduates with a passion to sell banking
products and knowledge of Capital Markets
MBAs are prefered.
Candidates should also know basic banking
Product or Sales channel depnedant
On the Job Training
They have a single mentor assigned in terms
of the Team Leader
Special Training prgms for management
Evaluation and
Productivity is measured in the number of
cross sales they do
In addition to the basic Banking Products like
 Savings and Current Accounts
 FDs etc.

They have to sell
 Mutual Funds
 Life Insurance

 Non-Life Insurance
Based on the Banking Deposit base
Unethical way of deciding targets
Refer to the customers account deposits and
net worth
Find out how much money is being across to
and from customers personal accounts in other
Value-added services
Personal Banking
Investment Advice
Helps in a home search too
Customer Relations
Customer Complaint is first priority and sales
people are also responsible for customer
People are taken to task and even fired on
basis of Customer Satisfaction Index.