BY: Aashish bansal. Abhishek sukul. Aji Baby.

Amit singh
: .

Banking is like any other form of economic activity. Like other economic agents, banks are both dealers and producers. They are dealers, in the sense that they bring together lenders and borrowers, and they are producers as they transform raw base money or cash issued by the government into more convenient checks or demand deposits.

Issues credit cards. Consumer finance. Wealth management. Life and general insurance. Investment banking. Mutual funds. Pension fund regulation. Stock broking services. Private equity.

Banks are the backbone of any nations economic activities. Banks lend money to PSUs, Private firms, individuals etc. They transform short-term deposits into longer-term loans. Maintain liquidity in the system. Risk management in the economy. One of the most preferred avenues of employment.

Total market size of Rs. 7500 billion in sep,2010. Accounts for 7.7% of GDP. CAGR growth rate of 18%. Provides over 1.5 million jobs. Deposits of SCBs is Rs 4492825 cr. More than 41000 ATMs in the last decade. 169 Scheduled commercial banks with 82511 branches. Total asset size of $1.3 trillion as of March,2010.

Reserve bank of India. 1: Commercial banks a: Public sector. b: Private sector. c: Foreign sector. d: Cooperative institutions. e: RRBs 2: Financial Institutions a: AIFIs, SFCs, SIDCs. 3: Non banking Financial Corporations. 4: Capital market intermediaries.

NABARD. Export import bank of India(Exim bank). National housing bank(NHB). SIDBI. LIC(life insurance corporation). GIC(General insurance corporation). UTI(Unit trust of India).

CLASSIFICATION Small Medium large Very large

WORKING FUNDS( Rs billion) Upto 50 50-100. 100-250. 250-500.

State bank of India group(8) Nationalised group(19) Private sector banks(27) 34 Foreign banks operating through branch route. 45 Foreign banks operating through representative offices.

5.7

Nationalised Sbi Group 50.4 23.5 Private Foreign

5.6 17.5 Nationalised SBI GROUP 49.7 PRIVATE FOREIGN 24.2

22.7

SBI ICICI CANARA

5.6 7.3 5.5 5.5 . .9 2. 5.3

PNB BANK OF INDIA BANK OF BARODA HDFC STANDARD CHATTERD others

CRR(Cash reserved ratio)= 5.5%. Repo rate= 7.5%. Reverse repo rate= 6%. Statutory liquidity ratio= 24%. Bank rate=6 %.

Has the sole right to issue bank notes of all denominations. RBI acts as Government banker, agent and adviser. The Reserve Bank of India acts as the bankers' bank. The RBI is the controller of credit i.e. it has the power to influence the volume of credit created by banks in India. It controls the banking system through the system of licensing, inspection and calling for inspection. The Reserve Bank of India has the responsibility to maintain the official rate of exchange.

 

  

World bank acts as financial intermediary. Acts as an evangelical agent to change the behavior of governments in developing economies. It transfers financial resources from richer to poorer countries. Promotion of values in government policies. It lends funds to developing countries at lower interest rates.

Assets of the largest 1,000 banks in the world grew by 6.8% in the 2008/2009 financial year to a record $96.4 trillion . The United States has the most banks in the world in terms of institutions (7,085 at the end of 2008) and possibly branches (82,000). As of Nov 2009, China's top 4 banks have in excess of 67,000 branches. Japan had 129 banks and 12,000. Germany, France, and Italy each have more than 30,000 branches. 15,000 branches in the UK.

17

EU 13 56 14 ASIAN US OTHERS

STRENGTHS 1: Brand name. 2: Market leader. 3: Wide distribution network. 4: Government owned. WEAKNESS 1: Minor hindrances. 2: Hierarchical management 3: Lacks modernization.

OPPORTUNITIES 1: Merger of associate banks with SBI. 2: Rural banking. 3: New branches & ATMs. 4: Expansion on foreign soil. THREATS 1: Advent of foreign banks. 2: Customer relationship management. 3: Private banks. 4: Employee retention.

STRENGTHS

1. BRAND NAME: ICICI Bank has earned a reputation in the market for extending quality services to the market vis--vis its competitors. It has earned a strong Brand name in banking in a very short span of time. 2. MARKET SHARE: ICICI Bank has the largest market share of 34% in the IT & ITES industry in Hyderabad according to our survey (within the limitation of the sample size.)

3. HUGE NETWORK: ICICI Bank has the highest number of linked branches in the country. The bank operates through a network of 450 BRANCHES AND over 1800 ATMs across India, thus enabling them to serve customer in better way.

4. DIVERSIFIED PORTFOLIO: ICICI Bank has all the products under its belt, which help it to extend the relationship with existing customer. ICICI Bank has umbrella of products to offer their customers, if once customer has relationship with the bank. Some Products, which ICICI Bank is offering are: Retail Banking Business Banking Merchant Establishment Services (EDC Machine) Personal loans & Car loans Mutual Fund (ICICI Bank is the Distributor of all Mutual Fund) Insurance

WEAKNESSES

1. TRANSACTION COST: ICICI Bank charges high cost for its transactions 2. Focus only on high end customers. 3. Defensive approach in lending. 4. Little presence outside India.

OPPORTUNITIES 1. NEW IT & ITES COMPANIES: IT & ITES sector is on a boom in the Indian market context, with new companies mushrooming in the market; it opens the door for ICICI bank to capture the huge untapped market. 2. Dissatisfied Customers of Other Banks: The group from its survey and analysis of IT companies have found out that there are many companies which are not satisfied with its current bank, so ICICI with its superior service quality and long working hours can capture those customers.

THREATS 1. Ever improving nationalized banks: With PSU banks like SBI going all out to compete with the private banks and government giving them a free hand to do so, it can prove to be serious threat for banks like ICICI 2. Advent of MNC banks: Large numbers of MNC banks are mushrooming in the Indian market due to the friendly policies adopted by the government

Ever rising customer expectations. Risk management. Maintaining growth rate. Human resource management. Employee retention. Making a global mark

Economic growth of India likely to be in double digit in the current decade. Opportunities in Retail, corporate or rural banking. Urban middle class to be 600 million in 2020. About 1$ trillion in social and economic infrastructure is estimated in India in the next 10 years, 50% of funding to infrastructure industry is done through banks. More ATM centers. Micro, small and medium enterprises. More than half of the farmer households do not have access to credit either from institutional or non institutional sources.