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Emerging Trends in the Banking Segment BFSI Workshop organised by MTL Manipal for the National Marketing Team

Banking in next 5 to 10 years in India Changes in Customer Offerings, Service Models, Outsourcing and Impact of Technology

Prof Chowdari Prasad Dean (PR) & Chairman-Admissions


TAPMI, Manipal Jan 10, 2014

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SBI & ITS (18) ASSOCIATES


1.SBI Capital Markets Ltd 2.SBI Funds Management Private Ltd

3.SBI Factors & Comml Services Pvt Ltd


4.SBI Cards & Paymts Services Pvt. Ltd.

5.SBI DFHI Ltd


6.SBI General Insurance Co Limited 7.SBI Pension Funds Pvt Ltd (SBIPFPL)
Besides, it has 5 Subsidiaries, 3 Foreign Associates and 3 Joint Ventures
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Key Subsidiaries of ICICI Bank


1. 2. 3. 4. 5. 6. 7. 8. ICICI Prudential LIC ICICI Lombard General Insurance Company ICICI Prudential Asset Management Company ICICI Venture Funds Management Company ICICI Securities ICICI Securities Primary Dealership ICICI Bank UK plc ICICI Bank Canada
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Products & Services of a Bank through segmentation : Personal / Corporate / SME / NRI / International / Agricultural customers
DEPOSITS
Current Accounts & Savings Accounts (CASA) Recurring Deposits / Fixed Deposits/ Others

ADVANCES
Cash Credit, Demand Loans, Term Loans, etc Car Loan, Educational Loan, Housing and Gold Loans

OTHER SERVICES
Safe Deposit Lockers, Safe Custody, PMS, Collections

INVESTMENTS
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Indian Banking System


S No
01 02 03 04

Types of Banks
State Bank of India & Associates (SBH, SBM, SBT, SBP, SBBJ) Public Sector Banks (14 + 6 -1 + 1 IDBI Bank) + BMB (2013*) Old Private Banks (13) + New Private Banks (7) Foreign Banks in India (limited branches / staff/operations)

Number
6 21 20 43

05
06 07 08 09 10
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Total Number of Commercial Banks (1+2+3+4)


Local Area Banks (1996) Regional Rural Banks (1975 : Gross 196 and now merged) Multi-State Urban Cooperative Banks Single State Urban Cooperative Banks Rural Cooperatives / Societies etc / State / District / PACs
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90
4 64 43 1,563 93,551
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Banking Today Branch Network


SN o
1
2 3 4 5 6

Type of Banks
ASCB
Nationalised Banks State Bank Group Old Private Sector Banks New Private Sector Banks Foreign Banks

Rural
26,493
17,036 7,088 1,069 1,292 8

SemiUrban
25,009
13,539 6,015 2,332 3,113 10

Urban
19,027
11,320 3,760 1,514 2,368 65

Metropolitian
18,033
10,585 3,318 1,132 2,749 249

Total
88,562
52,480 20,181 6,047 9,522 332
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All Scheduled Com Banks Profiles


for the year 2012-13 ( Amount in Rs Million)
S No 1 2 3 4 5 6 7 Type of Banks/ Details No. of Banks No. of Offices No. of Employees Business per Employee Profit per Employee Deposits Advances
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SBGrp 6 21,301 2,93,965 101.97 0.60

NatBks 20 54,478 5,07,694 142.23 0.65

Old PBs 13 6,283 66,208 97.24 0.75

New PBs 7 9,718 2,03,733 93.03 1.18

Fn Bks 43 334 25,384 217.33 4.56 2879997 2636799

Tot Bks 89 92,114 10,96,984 121.33 0.83 74295324 58797025


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16184449 41272523 13792240 30935500

3738964 10219391 2699373 8733113

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01 Agricultural Banking 04 Barefoot Banking 07 Cooperative Banking

02 Anywhere Banking 05 Branch Banking 08 Commercial Banking

03 Any time Banking 06 Business Banking 09 Convenience Banking

10 Core Banking
13 Central Banking 16 E-Banking 19 Faceless Banking 22 Home Banking 25 Investment Banking 28 Islamic Banking
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11 Corporate Banking

12 Correspondent Banking

14Developmental Banking 15 Door Step Banking 17 Eco-Friendly Banking 20 Giri Giri Banking 23 International Banking 26 Inter-State Banking 29 Inclusive Banking
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18 Ethical Banking 21 Green Banking 24 Internet Banking 27 Innovative Banking 30 Lazy Banking
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31 Lean Banking 34 Narrow Banking 37 Palm Top Banking 40 Pigmy Banking 43 Retail Banking

32 Lombard Banking 35 Online Banking 38 Paper-less Banking 41 Priority Banking

33 Mobile Banking 36 Overseas Banking 39 Personal Banking 42 Private Banking

44 Relationship Banking 45 SMS Banking

46 Shadow Banking
49 Transaction Banking

47 Sustainable Banking
50 Universal Banking

48 Tele-Banking
51 Unit Banking

52 Video Banking
55 Wholesale Banking
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53 Virtual Banking
56 Womens World Banking
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54 Village Banking
Social? Micro? Gold / Tab / FB / Community / Rural Banking???
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IT & DEVELOPMENTS
ALPMs CLEARING HOUSE CAR,CRR,SLR,PS,NPAs CREDIT/DEBIT CARDS NICNET,I-NET, RABMN INFINET, RBINET BANKNET, NDS, SFMS MICR, ATMs, SWIFT DEMAT, IT ACT-2000 INTERNET BANKING ECS, EFT, SEFT, RTGS CROSS SELLING Interest Rate Deregulation
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ALM & RM, MIS CRM, KYC Core Banking Solutions KISAN /SME CARD CREDIT INFO BUREAU DISASTER MANAGEMENT Cheque Truncation CYBER CRIMES HACKING, PHISHING, VISHING, PHARMING, TROJAN, SKIMMING, ETC SMART CARDS Anti Money Laundering?
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Banks in India 2013 : CASA

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Floating ATM of State Bank of India

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10 Varieties of ATMs in India


1. 2. 3. 4. On-site ATMs Off-site ATMs Solar based ATMs Bio-metric ATMs (for illiterate customers) 5. Floating ATMs (SBI) 6. Mobile ATMs (Van) 7. Micro ATMs
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8. White-labelled ATMs 9. Brown-labelled ATMs 10. And now..Talking ATMs (for blind in Canada : Oct 22,1997) from UBI in Ahmedabad in Sept 2012; -50 by NCR at Indias Passport Offices!
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All Scheduled Com Banks ATMs


for the year 2012-13
SNo Name of Bank type ASCBs Nationalised Banks State Bank Group Old Private Sector Banks New Private Sector Banks Foreign Banks
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On-site ATMs 55,760 21,533 18,708 4,054 11.182 283

Off-site ATMs 58,254 15,528 13,883 3,512 24,353 978

Total ATMs 114,014 37,061 32,591 7,566 35,535 1,261

Total Branches 88,562 52,480 20,181 6,047 9,522 332

% ATMs to Branches 129 71 162 125 373 382


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List of Applicants for New Banking Licences


1. 2. 3. 4. 5. 6. 7. 8. 9. Aditya Birla Group (incl Idea Cellular, etc) Bajaj Finance / Bajaj Auto / Bajaj Group Bandhan Financial Services (MFI) Edelweiss Financial Services IDFC infrastructure lender, PE, MF, etc IFCI Financial Consultancy and advisory co Indiabulls Housing Finance Ltd NBFC India Post Govt Min Com & IT India Infoline, part of IIFL Group - NBFC
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List of Applicants for New Banking Licences-2 10. INMACS Management Services Ltd 11. Janalakshmi Financial Services, MFI 12. JM Financial, for Citi Group CEO Mr Vikram Pandit be non-executive Chairman 13. LIC Housing Finance, unit of LIC of India 14. L&T Finance Holdings, Engineering company 15.Magma Fincorp, NBFC 16. Muthoot Finance gold loans company 17. Reliance Capital Reliance Group AA
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List of Applicants for New Banking Licences-3 18. Religare Capital, of Singh Bros; Fortis Health 19. Shriram Capital, Shriram Group / Transport 20. Smart Global Ventures 21. SREI Infrastructure Finance 22. Suryamani Financing Co 23. Tourism Finance Corp of India 24. UAE Exchange India foreign exchange services 25. Value Industries of Video Industries Withdrawn: Mahindra / Tata / SKS Microfinance
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Banking Tomorrow
Basel III compliance and capital requirements NPA management to maintain global standards Nachiket Mor Committee recommendations GOI moves / Financial Inclusion efforts Aadhar Card link to all Bank Accounts Credit and Debit Cards to increase Mobile Banking / ATM usage to increase Profitability / Productivity / Cost effectiveness
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Non-Banking Finance Companies

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Insurance Industry in India


Insurance in simple terms, is Risk Management 1st Co Oriental Life Insurance Co in 1818 Bombay Mutual Life Assurance Society 1st Life Insurance Company in 1870 1912 Enactment to regulate insurance biz 1928 Law to enable Govt to collect data 1938 Amendment to protect public interest 1956 Nationalisation of 245 companies
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Insurance Industry in India-2


1956 LIC Act passed 1956 General Insurance

Life / General / Health Insurance Regulated by IRDA, Hyderabad from 1999

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Insurance Companies in India


Gen Insurance : PUBLIC SECTOR COMPANIES
National Insurance Company Ltd Oriental Insurance Company Ltd United India Insurance Company Ltd New India Assurance Company Ltd

Export Credit Guarantee Corporation of India Agriculture Insurance Company of India Ltd( GIC Re (Public Sector Re-insurance company)
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Insurance Companies in India-2


PRIVATE SECTOR COMPANIES Gen Insurance
Bharati AXA General Insurance Future Generali India HDFC ERGO General Insurance ICICI Lombard IFFCO Tokio Liberty Videocon L&T General Insurance
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Insurance Companies in India-3


Life Insurance Corporation of India Public Sec PRIVATE SECTOR : LIFE INSURANCE COMPANIES
Aegon Religare Life Insurance Edelweiss Tokio Life Insurance Aviva India Max, Kotak, ING, PNB, Reliance, Sahara, SBI, TATA
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Health Insurance in India : July 2011

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Insurance Industry in India?


Future of the sector looks bright Potential to grow from US$ 72 bn in 2012 to US$ 280 billion by 2020 Favourable regulatory environment Encourages foreign investors to insurance Effective distribution channels Focus on overall financial / insurance inclusion Product innovation / dynamic distribution channels and vibrant publicity campaigns
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Health Insurance
Upcoming segment Caters to 10 per cent of overall US$ 30 bn healthcare expenditure Life Insurance contributes about 4 per cent to Indias GDP in terms of total premiums written LIC has about 71 per cent market share General Insurance grew by 19.6% in May-June13

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New Developments / Product Launches


Cos will have more freedom to invest in sectors such as IT and Pharmaceuticals The e-KYC services used by UIDAI will be accepted as a valid verification process E-Document will be digitally signed by UIDAI UIICI to open 530 new Offices; collected total premiums worth Rs. 9,266 cr and set a target of Rs. 11,000 cro for 2013-14
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