GROUP

GROUP-- 44
• • BISHNU
BISHNU
• • RANJEET
RANJEET
• • SRINIVAS
SRINIVAS
• • IRANNAS
IRANNAS
BANKING
BANKING
Banking
Definition
• In general terms, the Business Activity of accepting and
safeguarding money owned by other individuals and
entities, and then lending out this money in order to earn
a profit.
Banking In India
• Banking in India is governed by
BR Act,1949 and RBI Act,1934

• Banking in India is controlled/monitored

by RBI and Government of India

• The controls for different banks are different

based on whether the bank/s is/are
a) statutory corporation
b) a banking company
c) a cooperative Bank
Structure of Banking Industry in India
FUNCTIONS OF BANK
 Accepting deposit from public/ others (deposit).
 Landing money to public (loans).

 Transferring money from one place to another

(remittance).
 Acting as trustees.
 Government business

• Providing safe deposit lockers

• Acceptance of safe custody items
Cont…………….
 Acceptance of standing instructions
 Offering internet banking facilities
 Issuance of credit and other cards including ATM cards

 Offering various products like Mutual funds, Insurance

products, Merchant banking services
 Acting as executors and trustees
Classification of banking system
• Public sector banks
• Private sector banks
• Co-operative sector banks
• Development banks
Growth of Indian banking
INCOME IN US $(Billions)
1400

1200

1000

800

600

400

200

0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
PRODUCT
60.00%

52.83%
50.00% 49.00%
46.20%
40.00% Bank Deposit
38.42% 37.05% Life insurance fund
Linear (Life insurance
30.00% fund)
Provident fund & prnsion
fund
20.00% Investment(Share,
18.46%
14.00% 15.00% Debenture etc.)
13.04% 12.66%
10.00% 11.00%
5.07%
3.00%
0.00% 1.09% 1.00%
1 2 3 4 5
BANK GROUP-WISE SHARE-BY BUSINESS

COOPERATIVE BANKS RRBs

3% 3%
FOREIGN BANKS
5% NATIONALISED
DOMESTIC PRIVATE BANKS
BANKS 48%
18%
MARKET SHARE

SBI &
ASSOCIATES
23%
VALUE CHAIN
• Value Chain Analysis describes the activities that take
place in a business and relates them to an analysis of
the competitive strength of the business. Influential
work by Michael Porter suggested that the activities
of a business could be grouped under two headings
• Primary activity.
• Secondary activity.
PRIMARY ACTIVITIES
• Those that are directly concerned with creating and delivering
a product
• e.g. component assembly.
SUPPORT ACTIVITIES
• which whilst they are not directly involved in production, may
increase effectiveness or efficiency.
• e.g. human resource management.
• It is rare for a business to undertake all primary and support
activities.
IMPORTANCE OF VALUE CHAIN
• It provides a framework for identifying or developing
distinctive competencies.
BANKING VALUE CHAIN
OPERATION
MARKETING DELIVERY EXTERNAL
PRODUCT & SALES CHANNEL
&
FUNCTION
TRANCATION

STRATEGIC MANAGEMENT
PRIMARY FUNCTION
PRODUCT
• Banking product
• Insurance product
• Investment product
• Business services
• Wealth management services
• Lobby services
MARKETING & SALES
• Branding
• Deposit gathering
• New account acquisition
• Cross sales
• Fee base services
DELIVERY CHANNELS
• Branch network
• ATM network
• Telephone banking
• Bank by mail
• Call center
• Calling officer
OPRATION AND TRANSACTION
• Deposit services
• Loan administration
• Clearing & settlement
• Payment processing
• Treasury operation
EXTERNAL FUNCTION
• Funding and capital structure
• Regulatory operation
• Clearing partner
• Alliance partner
SECONDARY FUNCTION
STRATEGIC MANAGEMENT
• Strategic planning
• Risk management
• Assets and Liability management
HUMAN RESOURCES
• Recruiting
• Training
• Performance & Management
• Incentive programs
TECHNOLOGY DEVELOPMENT
• CRM
• Operational efficiency
• Emerging market
• Self-direct offering
• Competitive positioning
PROCUREMENT & INFRASTRUCTER
• Solution selection
• Strategic Sourcing
• Vander selection
Questions
By….
Vishnu Parsad Sahu
Ranjeet Kumar
Srinivas
Irrna