bhanu pratap11111

8/9/2019 Bhanu Pratap11111

1/54

TABLE OF CONTENT

1. Introduction to the Industry

2. History of Banking in India

3. Introduction to the organization

4. Research Methodology

Title of the Study

uration of the !ro"ect

#$"ecti%e of the study

Ty&e of the Research

Sa'&le Size and Method of selecting Sa'&les

Sco&e of the Study

(i'itation of the Study

). *acts and *indings

+. ,nalysis and Inter&retation

-. S#T

/. 0onclusion

. ,&&endi

1. Bi$liogra&hy

1


2/54

INTRODUCTION OF BANKING INDUSTRY

Bank

, bankis license $y a go%ern'ent. Its &ri'ary acti%ity is to lend 'oney. Many

other financial acti%ities ere alloed o%er ti'e. *or ea'&le $anks are i'&ortant

&layers in financial 'arkets and offer financial ser%ices such as in%est'ent funds

In so'e countries such as 5er'any6 $anks ha%e historically oned 'a"or stakes

in industrial cor&orations hile in other countries such as the 7nited States$anks

are &rohi$ited fro' oning non8financial co'&anies. In 9a&an6 $anks are usually

the neus of a cross8share holding entity knon as the zai$atsu. In *rance6$anc

assuranceis &re%alent6 as 'ost $anks offer insurance ser%ices :and no real estate

ser%ices; to their clients.

The le%el of go%ern'ent regulationof the $anking industry %aries idely6 ith

counties such as Iceland6 the 7nited


3/54

Origin of the wor

Silver drachm coin from Trapezus, 4th century BC

The na'e bankderi%es fro' the Italianord banco=desk>$ench=6 used during the

Renaissance$y *lorentine$ankers6 ho used to 'ake their transactions a$o%e a

desk co%ered $y a green ta$lecloth. Hoe%er6 there are traces of $anking acti%ity

e%en in ancient ti'es.

ABOUT BANKING!"

Section ):$; of the Banking Regulation ,ct6 14 defines

$anking as ?the acce&ting6 for the &ur&ose of lending or in%est'ent6 of

de&osits of 'oney fro' the &u$lic6 re&aya$le on de'and or otherise6 and

ithdraal $y che@ue6 draft6 order or otherise.A

Section ):c; of the Banking Regulation ,ct6 14 defines a $anking co'&any as Cany

co'&any hich transacts the $usiness of $anking in IndiaA.

Definition of Banking!"

The definition of a $ank %aries fro' country to country.

3
http://en.wikipedia.org/wiki/Italian_languagehttp://en.wikipedia.org/wiki/Renaissancehttp://en.wikipedia.org/wiki/Florencehttp://en.wikipedia.org/wiki/File:Trapezus.pnghttp://en.wikipedia.org/wiki/Italian_languagehttp://en.wikipedia.org/wiki/Renaissancehttp://en.wikipedia.org/wiki/Florence


4/54

7nder Eng#i$h %o&&on #aw6 a $anker is defined as a &erson ho carries on the

$usiness of $anking6 hich is s&ecified asD

0onducting current accounts for his custo'ers

!aying che@ues dran on hi'6 and

0ollecting che@ues for his custo'ers.

The $orroing6 raising or taking u& of 'oney6 the lending or ad%ancing of 'oney

either ith or ithout securityE

,cting as agents for any go%ern'ent or local authority or any other &erson or &ersons.

0ontracting for &u$lic and &ri%ate loans and negotiating and issuing the sa'e.

The effecting6 insuring6 guaranteeing6 underriting6 &artici&ating in 'anaging and

carrying out of any issue6 &u$lic or &ri%ate6 of state6 'unici&al or other loans or of shares6

stock6 de$entures or de$enture stock of any co'&any6 cor&oration or association and the

lending of 'oney for the &ur&ose of any such issue.

Entry regulation:-

0urrently in 'ost "urisdictions co''ercial $anks are regulated $y go%ern'ent

entities and re@uire a s&ecial $ank licence to o&erate.

7sually the definition of the $usiness of $anking for the &ur&oses of regulation is

etended to include acce&tance of de&osits6 e%en if they are not re&aya$le to the

custo'erFs orderGalthough 'oney lending6 $y itself6 is generally not included in

the definition.

7nlike 'ost other regulated industries6 the regulator is ty&ically also a &artici&ant

in the 'arket6 i.e. a go%ern'ent8oned :central; $ank. 0entral $anks also

ty&ically ha%e a 'ono&oly on the $usiness of issuing banknote$' Hoe%er6 in

so'e countries this is not the case. In the 7


5/54

Bank of S%ot#an; issue their on banknote$ in addition to those issued $y the

Bank of Eng#an6 the 7< go%ern'entFs central $ank.

So'e ty&es of financial institution6 such as b)i#ing $o%ietie$and %reit )nion$6

'ay $e &artly or holly ee'&t fro' $ank licence re@uire'ents6 and therefore

regulated under se&arate rules.

The re@uire'ents for the issue of a $ank licence %ary $eteen "urisdictions $ut

ty&ically includeD

1. Mini'u' ca&ital

2. Mini'u' ca&ital ratio

F*it and !ro&erF re@uire'ents for the $ankFs controllers6 oners6 directors6 and>or

senior officersThe re@uire'ents for the issue of a $ank licence %ary $eteen

"urisdictions $ut ty&ically includeD

3. F*it and !ro&erF re@uire'ents for the $ankFs controllers6 oners6

directors6 and>or senior officers4. ,&&ro%al of the $ankFs

). Business &lan as $eing sufficiently &rudent.

The econo'ic functions of $anks includeD

1. Issue of 'oney6 in the for' of banknote$and current accounts su$"ect to

%he+)e or &ay'ent at the custo'erFs order. These clai's on $anks can act as

'oney $ecause they are negotia$le and>or re&aya$le on de'and6 and hence %alued

at &ar. They are effecti%ely transfera$le $y 'ere deli%ery6 in the case of

banknote$6 or $y draing a che@ue that the &ayee 'ay $ank or cash.

2. etting and settle'ent of &ay'ents $anks act as $oth collection and

&aying agents for custo'ers6 &artici&ating in inter$ank clearing and settle'ent

syste's to collect6 &resent6 $e &resented ith6 and &ay &ay'ent instru'ents. This

ena$les $anks to econo'ise on reser%es held for settle'ent of &ay'ents6 sinceinard and outard &ay'ents offset each other. It also ena$les the offsetting of

)
http://en.wikipedia.org/wiki/Bank_of_Scotlandhttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Bank_of_Englandhttp://en.wikipedia.org/wiki/Building_Societyhttp://en.wikipedia.org/wiki/Credit_unionshttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Bank_of_Scotlandhttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Bank_of_Englandhttp://en.wikipedia.org/wiki/Building_Societyhttp://en.wikipedia.org/wiki/Credit_unionshttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Banknotes


6/54


7/54

12 . The $anks ha%e a right to co'$ine the custo'erFs accounts6 since each

account is "ust an as&ect of the sa'e credit relationshi&.

13. The $ank has a lien on che@ues de&osited to the custo'erFs account6 to the

etent that the custo'er is inde$ted to the $ank.

14. The $ank 'ust not disclose details of transactions through the custo'erFs

accountGunless the custo'er consents6 there is a &u$lic duty to disclose6 the

$ankFs interests re@uire it6 or the la de'ands it.

1) . The $anks 'ust not close a custo'erFs account ithout reasona$le notice6

since che@ues are outstanding in the ordinary course of $usiness for se%eral days.

These i'&lied contractual ter's 'ay $e 'odified $y e&ress agree'ent $eteen

the custo'er and the $ank. The statutes and regulations in force ithin a

&articular "urisdiction 'ay also 'odify the a$o%e ter's and>or create ne rights6

o$ligations or li'itations rele%ant to the $ank8custo'er relationshi&.

0urrently in 'ost "urisdictions co''ercial $anks are regulated $y go%ern'ententities and re@uire a s&ecial $ank licence to o&erate.

7sually the definition of the $usiness of $anking for the &ur&oses of regulation is

etended to include acce&tance of de&osits6 e%en if they are not re&aya$le to the

custo'erFs orderGalthough 'oney lending6 $y itself6 is generally not included in

the definition.

7nlike 'ost other regulated industries6 the regulator is ty&ically also a &artici&ant

in the 'arket6 i.e. a go%ern'ent8oned :central; $ank. 0entral $anks also

ty&ically ha%e a 'ono&oly on the $usiness of issuing $anknotes. Hoe%er6 in

so'e countries this is not the case. In the 7


8/54

So'e ty&es of financial institution6 such as$uilding societiesand credit unions6

'ay $e &artly or holly ee'&t fro' $ank licence re@uire'ents6 and therefore

regulated under se&arate rules.

-i$tor* of Banking in Inia

The first $ank in India6 though conser%ati%e6 as esta$lished in 1-/+. *ro' 1-/+ till

today6 the "ourney of Indian Banking Syste' can $e segregated into three distinct

&hases. They are as 'entioned $eloD8

Jarly &hase fro' 1-/+ to 1+ of Indian Banks

ationalization of Indian Banks and u& to 11 &rior to Indian $anking sector Refor's.

e &hase of Indian Banking Syste' ith the ad%ent of Indian *inancial K Banking

Sector Refor's after 11.

To 'ake this rite8u& 'ore e&lanatory6 I &refi the scenario as !hase 6 !hase and

!hase.

.ha$e

The 5eneral Bank of India as set u& in the year 1-/+. et ca'e Bank of Hindustan

and Bengal Bank. The Jast India 0o'&any esta$lished Bank of Bengal :1/;6 Bank of

Bo'$ay :1/4; and Bank of Madras :1/43; as inde&endent units and called it !residency

Banks. These three $anks ere a'alga'ated in 12 and I'&erial Bank of India as

esta$lished hich started as &ri%ate shareholders $anks6 'ostly Juro&eans shareholders.

In 1/+) ,llaha$ad Bank as esta$lished and first ti'e eclusi%ely $y Indians6 !un"a$

ational Bank (td. as set u& in 1/4 ith head@uarters at (ahore. Beteen 1+ and

1136 Bank of India6 0entral Bank of India6 Bank of Baroda6 0anara Bank6 Indian Bank6

and Bank of Mysore ere set u&. Reser%e Bank of India ca'e in 13).

uring the first &hase the groth as %ery slo and $anks also e&erienced &eriodic

failures $eteen 113 and 14/. There ere a&&roi'ately 11 $anks6 'ostly s'all. To

strea'line the functioning and acti%ities of co''ercial $anks6 the 5o%ern'ent of India

ca'e u& ith The Banking 0o'&anies ,ct6 14 hich as later changed to Banking

Regulation ,ct 14 as &er a'ending ,ct of 1+) :,ct o. 23 of 1+);. Reser%e Bank

of India as %ested ith etensi%e &oers for the su&er%ision of $anking in India as the0entral Banking ,uthority.

/
http://en.wikipedia.org/wiki/Building_Societyhttp://en.wikipedia.org/wiki/Credit_unionshttp://en.wikipedia.org/wiki/Building_Societyhttp://en.wikipedia.org/wiki/Credit_unions


9/54

INTRODUCTION TO T-E ORGANI/ATION

BANKING SYSTE, IN INDIA

The Banking Syste' in India consists ofD

1. Reser%e Bank 2. e%elo&'ent Banks

3. !u$lic Sector Bank.

4. *oreign Banks

). !ri%ate Sector Banks

+. 0oo&erati%e Banks

-. Regional Rural Banks

The Re$er(e Bank of Inia!"

The Reser%e Bank of India is the 0entral Bank of the 0ountry and ca'e into $eing $y

the Reser%e Bank of India ,ct 134. It as nationalized in 14/.

Reser%e Bank of India is the $ank that issues and regulates the issue of currency

in India .The $anker to the 5o%ern'ent of India and the State go%ern'ents. It 'anages

the &u$lic de$t. It has the o$ligation to transact the $anking $usiness of the 0entral

5o%ern'ent. It undertakes to acce&t 'oney on $ehalf of the 5o%ern'ent and 'ake

&ay'ent on its $ehalf. The $ankers $ank. 0o''ercial $anks 'aintain their current

account ith the Reser%e Bank of India.

The $ank that 'anages the %olu'e of credit created $y the co''ercial $anks to ensure

&rice sta$ility.

The $ank that 'anages the eternal %alue of the currency :Indian ru&ee;.

De(e#o0&ent Bank$!"


10/54

These ere set u& to gi%e long ter' finance for the de%elo&'ent of the country. These

are the Industrial *inance 0or&oration of India and the Industrial e%elo&'ent Bank of

India6 The Industrial Reconstruction Bank of India and the ational Bank for ,griculture

and Rural e%elo&'ent. , for'er de%elo&'ent $ank6 the Industrial 0redit and

In%est'ent 0or&oration of India (td. $y a re%erse 'erger in 226$eca'e a nor'al

co''ercial $ank.It is e&ected that the other de%elo&'ent $anks6 ha%ing outli%ed their

utility ould also $e either con%erted to co''ercial $anks or 'erged ith co''ercial

$anks.

.)b#i% Se%tor Bank$!"

These are $anks hich the 5o%ern'ent either ons or has a 'a"ority stake in it.

The largest is the State Bank of India hich as for'ed $y the 'erger of the !residency

Banks the Bank of Bengal6 the Bank of Bo'$ay and the Bank of Madras in 121. It

as then knon as the I'&erial Bank. It as nationalized in 1)) $y the &assing of the

State Bank of India ,ct6 1)). It has se%en su$sidiaries or associates.

Foreign Bank$!"

These are $ranches of $anks incor&orated outside India. In 1)> + 'any

other foreign $anks :o&ti'istic in %ie of Indias li$eralization; o&ened $ranches in

India. Hoe%er6 after $anking $egan to $eco'e increasingly co'&etiti%e and 'argins

$egan to $e s@ueezed cou&led ith large non &erfor'ing assets6 'any $anks

closed their $ranches

.ri(ate Se%tor Bank$!"

These are $anks hich are not go%ern'ent oned or controlled. Their shares are

freely traded in the Stock Markets.

Coo0erati(e Bank$!"

0oo&erati%e Banks are those that are created $y a grou& of indi%idual to su&&ort either a

co''unity or a religious grou&. They o&erate in 'etro&olitan6 ur$an and se'i ur$an

centers to cater to the needs of s'all $orroers.

Regiona# R)ra# Bank$!"

1


11/54

These ca'e into $eing on #cto$er 26 1-) hen ) regional rural $anks ere esta$lished

under hat $eca'e the Regional Rural Banks ,ct 1-). These ere to $ridge the ga& in

rural credit granting loans and ad%ances to s'all and 'arginal far'ers6 artisans6 s'all

entre&reneur and &ersons of s'all 'eans engaged in trade6 co''erce6 industry or other

&roducti%e 6acti%ities ithin their area of o&eration.

Lo%a# Area Bank$!"

(ocal ,rea Banks ca'e into eistence in 1 and licenses ere gi%en for these $anks

as it as felt that regular co''ercial $anks ere not financial the rural> agricultural

sector ade@uately. (icenses ere gi%en to o&en $ranches in three districts. Branches in

ur$an> se'i ur$an areas ere granted only after ten $ranches ere esta$lished in rural

areas> %illages.

Se%tor$ Bank$

Centra# Bank!" Reser%e Bank of India

Nationa#i1e

Bank$!"

State Bank of India2 ,llaha$ad Bank2 ,ndhra Bank2 Bank of

Baroda2Bank of India2Bank of Maharashtra20anara Bank 6 0entral

Bank of India 6 0or&oration Bank 6 ena Bank 6 Indian Bank 6 Indian

#%erseas Bank 6 #riental Bank of 0o''erce 6 !un"a$ K Sind Bank 6

!un"a$ ational Bank 6 Syndicate Bank 6 IBI Bank6 7nion Bank of

India 6 7nited Bank of India 6 70# Bank 6 Li"aya Bank.

6

.ri(ate Bank$!",is Bank 6 Bank of Ra"asthan Bharat #%erseas Bank 0atholic

Syrian Bank 0enturion Bank of !un"a$ 0ity 7nion

Bank .e%elo&'ent 0redit Bank hanalaksh'i Bank *ederal

Bank 5anesh Bank of


12/54

Bank (aksh'i Lilas Bankainital BankRatnakar Bank SBI

0o''ercial and International Bank South Indian Bank Ta'ilnad

Mercantile Bank (td..

Foreign

Bank$!"

0iti$ank HSB0 Standard 0hartered

Regiona# R)ra#

Bank$!"

South Mala$ar 5ra'in Bank

Coo0

erati(

e

Bank$

!"

The ,nda'an and ico$ar State 0o8o&erati%e Bank (td. The

,runachal !radesh State co8o&erati%e ,&e Bank (td. The ,ssa' 0o8

o&erati%e ,&e Bank (td The Bihar State 0o8o&erati%e Bank (td. The

0handigarh State 0o8o&erati%e Bank (td.

12
http://en.wikipedia.org/w/index.php?title=Lakshmi_Vilas_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Nainital_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Ratnakar_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Commercial_and_International_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Commercial_and_International_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=South_Indian_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=South_Indian_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Tamilnad_Mercantile_Bank_Ltd.&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Tamilnad_Mercantile_Bank_Ltd.&action=edit&redlink=1http://en.wikipedia.org/wiki/Standard_Charteredhttp://en.wikipedia.org/wiki/Standard_Charteredhttp://en.wikipedia.org/w/index.php?title=Lakshmi_Vilas_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Nainital_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Ratnakar_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Commercial_and_International_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Commercial_and_International_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=South_Indian_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Tamilnad_Mercantile_Bank_Ltd.&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Tamilnad_Mercantile_Bank_Ltd.&action=edit&redlink=1http://en.wikipedia.org/wiki/Standard_Chartered


13/54

INTRODUCTION OF SBI BANK

-ISTORY OF SBI BANK!"

The e%olution of State Bank of India can $e traced $ack to the first decade of the 1th

century. It $egan ith the esta$lish'ent of the Bank of 0alcutta in 0alcutta6 on 2 9une

1/+. The $ank as redesigned as the Bank of Bengal6 three years later6 on 2 9anuary

1/. It as the first e%er "oint8stock $ank of the British India6 esta$lished under the

s&onsorshi& of the 5o%ern'ent of Bengal. Su$se@uently6 the Bank of Bo'$ay

:esta$lished on 1) ,&ril 1/4; and the Bank of Madras :esta$lished on 1 9uly 1/43;

folloed the Bank of Bengal.

,n i'&ortant turning &oint in the history of State Bank of India is the launch of the first

*i%e Near !lan of inde&endent India6 in 1)1. The !lan ai'ed at ser%ing the Indian

econo'y in general and the rural sector of the country6 in &articular. 7ntil the !lan6 the

co''ercial $anks of the country6 including the I'&erial Bank of India6 confined their

ser%ices to the ur$an sector. Moreo%er6 they ere not e@ui&&ed to res&ond to the groing

needs of the econo'ic re%i%al taking sha&e in the rural areas of the country. Therefore6 in

order to ser%e the econo'y as a hole and rural sector in &articular.

The ,ll India Rural 0redit Sur%ey 0o''ittee &ro&osed the take o%er of the I'&erial

Bank of India6 and integrating ith it6 the for'er state8oned or state8associate $anks.

Su$se@uently6 an ,ct as &assed in the !arlia'ent of India in May 1)). ,s a result6 the

State Bank of India :SBI; as esta$lished on 1 9uly 1)). This resulted in 'aking the

State Bank of India 'ore &oerful6 $ecause as 'uch as a @uarter of the resources of the

Indian $anking syste' ere controlled directly $y the State. (ater on6 the State Bank of

India :Su$sidiary Banks; ,ct as &assed in 1).

13


14/54

The State Bank of India e'erged as a &acesetter6 ith its o&erations carried out $y the

4/ offices co'&rising $ranches6 su$ offices and three (ocal Head #ffices6 inherited

fro' the I'&erial Bank. Instead of ser%ing as 'ere re&ositories of the co''unityFs

sa%ings and lending to creditorthy &arties6 the State Bank of India catered to the needs

of the custo'ers6 $y $anking &ur&osefully.

State Bank of Inia:SBI; :(SJD SBI; is the largest$ankinIndia.

The $ank traces its ancestry $ack through the I'&erial Bank of Indiato the founding in

1/+ of the Bank of 0alcutta6 'aking it the oldest co''ercial $ank in the Indian

Su$continent. The 5o%ern'ent of Indianationalised the I'&erial Bank of India in 1))6

ith the Reser%e Bank of Indiataking a +O stake6 and rena'ed it the State Bank of

India. In 2/6 the 5o%ern'ent took o%er the stake held $y the Reser%e Bank of India.

SBI &ro%ides a range of $anking &roducts through its %ast netork in India and o%erseas6

including &roducts ai'ed atRIs. ith an asset $ase of P12+ $illion and its reach6 it is a

regional $anking $ehe'oth. SBI has laid e'&hasis on reducing the huge 'an&oer

through 5olden handshake sche'es6 hich led to a flight of its $est and $rightest

'anagers hich took to retire'ent alloances and then ent on the $eco'e senior

'anagers at ne &ri%ate sector $anks6 and co'&uterizing its o&erations.

The roots of the State Bank of India rest in the first decade of 1th century6 hen the

Bank of 0alcutta6 later rena'ed the Bank of Bengal6 as esta$lished on 2 9une 1/+.

The Bank of Bengal and to other !residency $anks6 na'ely6 the Bank of Bo'$ay

:incor&orated on 1) ,&ril1/4; and the Bank of Madras:incor&orated on 1 9uly1/43;..

These three $anks recei%ed the eclusi%e right to issue &a&er currency in 1/+1 ith the

!a&er 0urrency ,ct6 a right they retained until the for'ation of the Reser%e Bank of

India. The !residency $anks a'alga'ated on 2- 9anuary 1216 and the reorganized

$anking entity took as its na'e I'&erial Bank of India. The I'&erial Bank of India

continued to re'ain a "oint stock co'&any.

!ursuant to the &ro%isions of the State Bank of India ,ct :1));6 the Reser%e Bank of

India6 hich is IndiaFs central $ank6 ac@uired a controlling interest in the I'&erial Bank

14
http://en.wikipedia.org/wiki/London_Stock_Exchangehttp://www.londonstockexchange.com/en-gb/pricesnews/prices/Trigger/genericsearch.htm?bsg=true&ns=SBIDhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/1806http://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Indian_Subcontinenthttp://en.wikipedia.org/wiki/Indian_Subcontinenthttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/1955http://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Non-resident_Indianhttp://en.wikipedia.org/wiki/Golden_handshakehttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/June_2http://en.wikipedia.org/wiki/1806http://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/April_15http://en.wikipedia.org/wiki/1840http://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/July_1http://en.wikipedia.org/wiki/1843http://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/January_27http://en.wikipedia.org/wiki/1921http://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Central_Bankhttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://www.londonstockexchange.com/en-gb/pricesnews/prices/Trigger/genericsearch.htm?bsg=true&ns=SBIDhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/1806http://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Indian_Subcontinenthttp://en.wikipedia.org/wiki/Indian_Subcontinenthttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/1955http://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Non-resident_Indianhttp://en.wikipedia.org/wiki/Golden_handshakehttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/June_2http://en.wikipedia.org/wiki/1806http://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/April_15http://en.wikipedia.org/wiki/1840http://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/July_1http://en.wikipedia.org/wiki/1843http://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/January_27http://en.wikipedia.org/wiki/1921http://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Central_Bank


15/54

of India. #n 3 ,&ril1))the I'&erial Bank of India $eca'e the State Bank of India.In

1) the 5o%ern'ent &assed the State Bank of India :Su$sidiary Banks; ,ct6 ena$ling

the State Bank of India to take o%er eight for'er State8associated $anks as its

su$sidiaries. #n Se&t 136 2/6 State Bank of Saurashtra6one of its ,ssociate Banks6

'erged ith State Bank of India.

ssociate !an"s:-

There are si associate $anks that fall under SBI6 and together these si $anks constitute

the State Bank 5rou&. ,ll use the sa'e logo of a $lue keyhole and all the associates use

the =State Bank of= na'e folloed $y the regional head@uartersF na'e. #riginally6 the

then se%en $anks that $eca'e the associate $anks $elonged to &rincely statesuntil the

go%ern'ent nationalized the' in 1). In tune ith the first *i%e Near !lan6 e'&hasizing

the de%elo&'ent of rural India6 the go%ern'ent integrated these $anks into State Bank of

India to e&and its rural outreach. There has $een a &ro&osal to 'erge all the associate

$anks into SBI to create a ='ega $ank= and strea'line o&erations. The first ste& along

these lines occurred in Se&te'$er 2/ hen State Bank of Saurashtra 'erged ith

State Bank of India6 hich reduced the nu'$er of state $anks fro' se%en to si.

State Bank of Indore

State Bank of Bikaner K 9ai&ur

State Bank of Hydera$ad

State Bank of Mysore

State Bank of !atiala

State Bank of Tra%ancore

#ro$th:-

State Bank of India has often acted as guarantor to the Indian 5o%ern'ent6 'ost nota$ly

during 0handra ShekharFs tenure as !ri'e Minister of India. ith 'ore than 116111

$ranches and a further +)Q associate $ank $ranches6 the SBI has etensi%e co%erage.

State Bank of India has electronically netorked all of its $ranches under 0ore Banking

Syste':0BS;. The $ank has one of the largest ,TMnetorks in the region. More than

1)
http://en.wikipedia.org/wiki/April_30http://en.wikipedia.org/wiki/1955http://en.wikipedia.org/wiki/Sept_13http://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/Indian_Princely_Stateshttp://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/State_Bank_of_Bikaner_%26_Jaipurhttp://en.wikipedia.org/wiki/State_Bank_of_Hyderabadhttp://en.wikipedia.org/wiki/State_Bank_of_Mysorehttp://en.wikipedia.org/wiki/State_Bank_of_Patialahttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Chandra_Shekharhttp://en.wikipedia.org/wiki/Prime_Minister_of_Indiahttp://en.wikipedia.org/wiki/Automatic_Teller_Machinehttp://en.wikipedia.org/wiki/April_30http://en.wikipedia.org/wiki/1955http://en.wikipedia.org/wiki/Sept_13http://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/Indian_Princely_Stateshttp://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/State_Bank_of_Bikaner_%26_Jaipurhttp://en.wikipedia.org/wiki/State_Bank_of_Hyderabadhttp://en.wikipedia.org/wiki/State_Bank_of_Mysorehttp://en.wikipedia.org/wiki/State_Bank_of_Patialahttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Chandra_Shekharhttp://en.wikipedia.org/wiki/Prime_Minister_of_Indiahttp://en.wikipedia.org/wiki/Automatic_Teller_Machine


16/54

/) ,TMs across India. The State Bank of India has had steady groth o%er its history6

though it as 'arred $y the Harshad Mehtasca' in 12. In recent years6 the $ank has

sought to e&and its o%erseas o&erations $y $uying foreign $anks. It is the only Indian

$ank to feature in the to& 1 orld $anks in the *ortune 5lo$al )rating and %arious

other rankings.Group companies:-

SBI 0a&ital Markets (td

SBI Mutual *und:, Trust;

SBI *actors and 0o''ercial Ser%ices (td

SBI *HI (td

SBI 0ards and !ay'ent Ser%ices !%t (td

SBI (ife Insurance 0o. (td8 Bancassurance:(ife Insurance;

SBI *unds Manage'ent !%t (td

SBI 0anada

E$tab#i$h&ent!"

The esta$lish'ent of the Bank of Bengal 'arked the ad%ent of li'ited lia$ility6 "oint8

stock $anking in India. So as the associated inno%ation in $anking6 %iz. the decision to

allo the Bank of Bengal to issue notes6 hich ould $e acce&ted for &ay'ent of &u$lic

re%enues ithin a restricted geogra&hical area. This right of note issue as %ery %alua$le

not only for the Bank of Bengal $ut also its to si$lings6 the Banks of Bo'$ay and

Madras. It 'eant an accretion to the ca&ital of the $anks6 a ca&ital on hich the

&ro&rietors did not ha%e to &ay any interest.

The conce&t of de&osit $anking as also an inno%ation $ecause the &ractice of

acce&ting 'oney for safekee&ing :and in so'e cases6 e%en in%est'ent on $ehalf of the

clients; $y the indigenous $ankers had not s&read as a general ha$it in 'ost &arts of

India. But6 for a long ti'e6 and es&ecially u&to the ti'e that the three &residency $anks

had a right of note issue6 $ank notes and go%ern'ent $alances 'ade u& the $ulk of the

in%esti$le resources of the $anks.

1+
http://en.wikipedia.org/wiki/Harshad_Mehtahttp://en.wikipedia.org/wiki/Fortune_Global_500http://en.wikipedia.org/w/index.php?title=SBI_Capital_Markets_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Mutual_Fund&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Factors_and_Commercial_Services_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_DFHI_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Cards_and_Payment_Services_Pvt_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Life_Insurance_Co._Ltd&action=edit&redlink=1http://en.wikipedia.org/wiki/Bancassurancehttp://en.wikipedia.org/w/index.php?title=SBI_Funds_Management_Pvt_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Canada&action=edit&redlink=1http://en.wikipedia.org/wiki/Harshad_Mehtahttp://en.wikipedia.org/wiki/Fortune_Global_500http://en.wikipedia.org/w/index.php?title=SBI_Capital_Markets_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Mutual_Fund&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Factors_and_Commercial_Services_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_DFHI_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Cards_and_Payment_Services_Pvt_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Life_Insurance_Co._Ltd&action=edit&redlink=1http://en.wikipedia.org/wiki/Bancassurancehttp://en.wikipedia.org/w/index.php?title=SBI_Funds_Management_Pvt_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Canada&action=edit&redlink=1


17/54

The three $anks ere go%erned $y royal charters6 hich ere re%ised fro' ti'e to ti'e.

Jach charter &ro%ided for a share ca&ital6 four8fifth of hich ere &ri%ately su$scri$ed

and the rest oned $y the &ro%incial go%ern'ent. The 'e'$ers of the $oard of directors6

hich 'anaged the affairs of each $ank6 ere 'ostly &ro&rietary directors re&resenting

the large Juro&ean 'anaging agency houses in India. The rest ere go%ern'ent

no'inees6 in%aria$ly ci%il ser%ants6 one of ho' as elected as the &resident of the

$oard.

B)$ine$$D8

The $usiness of the $anks as initially confined to discounting of $ills of echange or

other negotia$le &ri%ate securities6 kee&ing cash accounts and recei%ing de&osits and

issuing and circulating cash notes. (oans ere restricted to Rs.one lakh and the &eriod of

acco''odation confined to three 'onths only. The security for such loans as &u$lic

securities6 co''only called 0o'&anyFs !a&er6 $ullion6 treasure6 &late6 "eels6 or goods

Fnot of a &erisha$le natureF and no interest could $e charged $eyond a rate of tel%e &er

cent. (oans against goods like o&iu'6 indigo6 salt oollens6 cotton6 cotton &iece goods6

'ule tist and silk goods ere also granted $ut such finance $y ay of cash credits

gained 'o'entu' only fro' the third decade of the nineteenth century. ,ll

co''odities6 including tea6 sugar and "ute6 hich $egan to $e financed later6 ere either

&ledged or hy&othecated to the $ank.

,a3or %hange in the %onition$!"

, 'a"or change in the conditions of o&eration of the Banks of Bengal6 Bo'$ay and

Madras occurred after 1/+. ith the &assing of the !a&er 0urrency ,ct of 1/+16 the

right of note issue of the &residency $anks as a$olished and the 5o%ern'ent of India

assu'ed fro' 1 March 1/+2 the sole &oer of issuing &a&er currency ithin British

India. The task of 'anage'ent and circulation of the ne currency notes as conferred

on the &residency $anks and the 5o%ern'ent undertook to transfer the Treasury $alances

to the $anks at &laces here the $anks ould o&en $ranches. one of the three $anks had

till then any $ranches :ece&t the sole atte'&t and that too a short8li%ed one $y the Bank

1-


18/54

of Bengal at Mirza&ore in 1/3; although the charters had gi%en the' such authority. But

as soon as the three &residency $ands ere assured of the free use of go%ern'ent

.re$ien%* Bank$ A%t!"

The &residency Banks ,ct6 hich ca'e into o&eration on 1 May 1/-+6 $rought the three

&residency $anks under a co''on statute ith si'ilar restrictions on $usiness. The

&ro&rietary connection of the 5o%ern'ent as6 hoe%er6 ter'inated6 though the $anks

continued to hold charge of the &u$lic de$t offices in the three &residency tons6 and the

custody of a &art of the go%ern'ent $alances. The ,ct also sti&ulated the creation of

Reser%e Treasuries at 0alcutta6 Bo'$ay and Madras into hich su's a$o%e the s&ecified

'ini'u' $alances &ro'ised to the &residency $anks at only their head offices ere to $e

lodged. The 5o%ern'ent could lend to the &residency $anks fro' such Reser%e

Treasuries $ut the latter could look u&on the' 'ore as a fa%our than as a right.

.er$ona# Banking!"

SBI Ter' e&osits SBI (oan *or !ensioners

SBI Recurring e&osits (oan ,gainst Mortgage #f !ro&erty

SBI Housing (oan (oan ,gainst Shares K e$entures

SBI 0ar (oan Rent !lus Sche'e

SBI Jducational (oan Medi8!lus Sche'e

Other Ser(i%e$!"

,griculture>Rural Banking

RI Ser%ices

,TM Ser%ices

e'at Ser%ices

0or&orate Banking

Internet Banking

Mo$ile Banking

International Banking Safe e&osit (ocker

1/


19/54

RBIJ*T

J8!ay

J8Rail

SBI Lisha Natra *oreign Tra%el 0ard

Broking Ser%ices

5ift 0he@ues

SBI FINANCIAL -IG-LIG-TS!"

.AST 4 YEARS

TABLE I

STATE BANK OF INDIA "FINANCIAL -IG-LIG-TS 5665"67

R$' in Bi##ion FY5668 FY5669 FY56:6 FY56:: FY 56:5 FY56:;

De0o$it$ 5764'< 59


20/54

TABLE II

STATE BANK OF INDIA "FINANCIAL -IG-LIG-TS 5665"67

?IN US @

In US@ Bi##ion*N2/ FY5669 FY56:6 FY56:: FY 56:5 FY56:;

De0o$it$ 44'==


21/54

SBI Ba#an%e Sheet$!"

8

SBI Balance Sheets also knon as State Bank of India &ersonal finance sche'es6 ai' to

&ro%ide the necessary financial assistance to as 'any &eo&le as &ossi$le to hel& the'

realize their drea's or co'e out of situations of financial need. State Bank of India$eing

IndiaFs largest $ank is a trusted na'e and the SBI Balance Sheet rates of interest are ke&t

at the 'ost co'&etiti%e le%el to 'ake a Balance Sheet as a&&roacha$le.

The 'ost &o&ular SBI Balance Sheets include housing loans6 car loans6 education loan6

loans against &ro&erty6 shares or de$entures6 re%erse 'ortgage loans and 'ore.

State Bank of India Housing (oan or SBI Ho'e (oan is a%aila$le in co'&lete

trans&arency and at no hidden costs. The interest rates are charged on daily reducing

$asis.

SBI Car Loan$ offer a lucrati%e deal of lo interest rates6 easy re&ay'ent facilities

and inclusion of all additional charges like %ehicle registration6 insurance6 one8ti'e road

ta and car accessories. State Bank of India offers car loans for &urchase of all kinds of

&ersonal use and co''ercial %ehicles.

State Bank of India offers E)%ation Loan to Indian nationals for &ursuing higherstudies ithin the country or a$road. The SBI education loan co%ers the tra%el e&enses6

tuition fees6 ea'ination fees6 costs of $ooks and other course 'aterial and stationery6

refunda$le caution de&osits6 e&enses for &urchase of co'&uters necessary for the course

and also a to8heeler con%eyance u& to Rs. )6 in costs along ith any other 'a"or

e&enses 'andatory to the course.

Ba#an%e Sheet again$t Thir .art* Se%)rit* of NSC I. RBI Re#ief Bon$ et%'!"

21
http://www.indiahousing.com/sbi.htmlhttp://www.indiahousing.com/sbi-home-loans.htmlhttp://www.indiahousing.com/sbi.htmlhttp://www.indiahousing.com/sbi-home-loans.html


22/54

INTRODUCTION OF -DFC BANK

Ba%kgro)n

H*0 as incor&orated in 1-- ith the &ri'ary o$"ecti%e of 'eeting a social

eed that of &ro'oting ho'e onershi& $y &ro%iding long8ter' finance to households

for their housing needs. H*0 as &ro'oted ith an initial share ca&ital of Rs. 1

'illion.B)$ine$$ Ob3e%ti(e$

The &ri'ary o$"ecti%e of H*0 is to enhance residential housing stock in the 0ountry

through the &ro%ision of housing finance in a syste'atic and &rofessional Manner6 and to

&ro'ote ho'e onershi&. ,nother o$"ecti%e is to increase the flo of resources to the

housing sector $y integrating the housing finance sector ith the o%erall do'estic

financial 'arkets.

Organi1ationa# Goa#$

H*0s 'ain goals are to

a; e%elo& close relationshi&s ith indi%idual households.

$; Maintain its &osition as the &re'ier housing finance institution in the country6

c; Transfor' ideas into %ia$le and creati%e solutions.

d; !ro%ide consistently high returns to shareholders.

e; To gro through di%ersification $y le%eraging off the Jisting client.

-ISTORY OF -DFC BANK

The Housing e%elo&'ent *inance 0or&oration (i'ited :H*0; as a'ongst the first

to recei%e an Fin &rinci&leF a&&ro%al fro' the Reser%e Bank of India :RBI; to set u& a

$ank in the &ri%ate sector6 as &art of the RBIFs li$eralization of the Indian Banking

Industry in 14. The $ank as incor&orated in ,ugust 14 in the na'e of FH*0 Bank

22


23/54

(i'itedF6 ith its registered office in Mu'$ai6 India. H*0 Bank co''enced o&erations

,s a Scheduled 0o''ercial Bank on 1+th 9anuary 1). In the year 1/ H*0 Bank

had tied u& ith the ,h'ada$ad Stock Jchange :,SJ; to act as its clearing $ank

B)$ine$$ Fo%)$!"

H*0 BankFs 'ission is to $e a orld80lass Indian Bank. The o$"ecti%e is to $uild

sound custo'er franchises across distinct $usinesses so as to $e the &referred &ro%ider of

$anking ser%ices for target retail and holesale custo'er seg'ents6 and to achie%e

healthy groth in &rofita$ility6 consistent ith the $ankFs risk a&&etite. The $ank is

co''itted to 'aintain the highest le%el of ethical standards6 &rofessional integrity6

cor&orate go%ernance and regulatory co'&liance.

S)b$iiar* an A$$o%iate Co&0anie$

The $)b$iiarie$ of -DFC %on$i$t$ of

1. H*0 Bank

2. H*0 Mutual *und

3. H*0 Standard (ife Insurance 0o'&any

4. H*0 Realty

). H*0 0hu$$ 5eneral Insurance 0o'&any (i'ited.

+. Intel net 5lo$al Ser%ices (i'ited

-. 0redit Infor'ation Bureau :India; (i'ited

/. #ther 0o'&anies 0o !ro'oted $y H*0

H*0 Trustee 0o'&any (td.

5R7H *inance (td.

H*0 e%elo&ers (td.

H*0 Lenture 0a&ital (td.

H*0 Lenture Trustee 0o'&any (td

23


24/54

H*0 Securities (td.

H*0 Holding (td.

Ho'e (oan Ser%ices India !%t. (td.

-DFC BANK

The Organi1ation!"

The Housing e%elo&'ent *inance 0or&oration (i'ited :H*0; as a'ongst the first

to recei%e an Fin &rinci&leF a&&ro%al fro' the Reser%e Bank of India :RBI; to set u& a

$ank in the &ri%ate sector6 as &art of the RBIFs li$eralisation of the Indian Banking

Industry in 14. The $ank as incor&orated in ,ugust 14 in the na'e of FH*0 Bank

(i'itedF6 ith its registered office in Mu'$ai6 India. H*0 Bank co''enced o&erations

,s a Scheduled 0o''ercial Bank on 1+th 9anuary 1). In the year 1/ H*0 Bank

had tied u& ith the ,h'ada$ad Stock Jchange :,SJ; to act as its clearing $ank.

Ca0ita# Str)%t)re!"

The authorized ca&ital of H*0 Bank is Rs.4) crore :Rs.4.) $illion;. The &aid8u&

ca&ital is Rs.311. crore :Rs.3.1 $illion;. The H*0 5rou& holds 22.1O of the $ankFs

e@uity and a$out 1.4O of the e@uity is held $y the ,S e&ository :in res&ect of the

$ankFs ,'erican e&ository Shares :,S; Issue;. Roughly 31.3O of the e@uity is held

$y *oreign Institutional In%estors :*IIs; and the $ank has a$out 16 shareholders.

The shares are listed on the The Stock Jchange6 Mu'$ai and the ational Stock

Jchange.Ti&e$ Bank A&a#ga&ation!"

In a 'ilestone transaction in the Indian $anking industry6 Ti'es Bank (i'ited :another

ne &ri%ate sector $ank &ro'oted $y Bennett6 0ole'an K 0o.>Ti'es 5rou&; as

'erged ith H*0 Bank (td.6 effecti%e *e$ruary 2+6 2. ,s &er the sche'e of

a'alga'ation a&&ro%ed $y the shareholders of $oth $anks and the Reser%e Bank of

India6 shareholders of Ti'es Bank recei%ed 1 share of H*0 Bank for e%ery ).-) shares

of Ti'es Bank. The ac@uisition added significant %alue to H*0 Bank in ter's of

24


25/54

increased $ranch netork6 e&anded geogra&hic reach6 enhanced custo'er $ase6 skilled

'an&oer and the o&&ortunity to cross8sell and le%erage alternati%e deli%ery channels.

.ro)%t$ an Ser(i%e$ -DFC Bank

.ro)%t rangeD

The folloing is the &roduct range offered at H*0D hile %arious de&osit &roducts

offered $y the $ank are assigned different na'es6 the de&osit &roducts can $e categorized

$roadly into the folloing ty&es. efinition of 'a"or de&osit sche'es are as underD 8

:' De&an e0o$it$!

=e'and e&osits= 'eans a de&osit recei%ed $y the $ank hich is ithdran a$le on

de'andE

a; Sa%ings ,ccountD

=Sa%ings e&osits= 'eans a for' of e'and e&osit hich is su$"ect to restrictions as

to the nu'$er of ithdraals as also the a'ounts of ithdraals &er'itted $y the $ank

during any s&ecified &eriodE H*0 &ro%ides ith sa%ing $ank account ith the usual

facilities6 and one also gets a free ,TM card6 intr$ranch $anking6 $ill &ay'ent facilities6

&hone $anking and 'o$ile $anking.

5' Ter& De0o$it$!

=Ter' e&osit= 'eans a de&osit recei%ed $y the $ank for a fied &eriod ithdra a$le

only after the e&iry of the fied &eriod and includes de&osits such as Recurring > ou$le

Benefit e&osits .

;' Noti%e De0o$it!

FFotice e&ositFF 'eans Ter' e&osit for a s&ecific &eriod $ut hich can $e ithdran

on gi%ing at least one co'&lete $anking dayFs notice.

=' C)rrent A%%o)nt!

=0urrent ,ccount= 'eans a for' of e'and e&osit herefro' ithdraals are

alloed any nu'$er of ti'es de&ending u&on the $alance in the account or u& to a

2)


26/54

&articular agreed a'ount and ill also include other de&osit accounts hich are neither

Sa%ings e&osit nor Ter' e&ositE The account holder gets a &ersonalized che@ue $ook6

'onthly account state'ents6 and Inter8$ranch $anking.

4' Cor0orate A%%o)nt!"

These are 'ore co''only knon as Salary ,ccounts. These are account in H*0 $ank

ith zero $alance. These are gi%en to salaried &eo&le. These accounts are o&ened $y the

e'&loyer for the e'&loyees to de&osit the salary of the e'&loyee directly to the account.


27/54

.erfor&an%e of -DFC Bank

Awar$ an A%hie(e&ent$!

H*0 Bank $egan o&erations in 1) ith a si'&le 'issionD to $e a or#"%#a$$

Inian Bank. e realised that only a single8'inded focus on &roduct @uality and

ser%ice ecellence ould hel& us get there. Today6 e are &roud to say that e are ell

on our ay toards that goal.

It is etre'ely gratifying that our efforts toards &ro%iding custo'er con%enience ha%e

$een a&&reciated $oth nationally and internationally.

2-


28/54

2/


29/54

2


30/54

3


31/54

31


32/54

Snap Shot of %erger The sa& ratio of 1D2 for H*080B#! 'erger turned out to $e 'ore fa%ora$le for H*0

Bank than e&ected $y the 'arket

The sa& ratio as $ased on the reco''endations 'ade $y "oint %aluers alal K Shah6 a

chartered accounting fir'6 and Jrnst K Noung6 a consulting fir'.

H*0 held 23.2/ &er cent in H*0 Bank at the end of ece'$er 316 2-. H*0 ill need

a$out Rs 36 crores to raise its shareholding after it falls to around 1 &er cent after the

'erger.

The ac@uisition of 0enturion Bank of !un"a$ :0Bo!; 8 Rs 6)1 crore in the financial sector

in India. Hoe%er6 the 'erged entity ould still $e to8fifth the size of the countrys second

largest lender6 I0I0I Bank.

The 'arket ca& to $ranch ratio of H*0 Bank is Rs.-21' here the sa'e for 0B#! is Rs.

23/'. Hence6 H*0 Bank has $een a$le to $uy the franchisee of 0B#! at al'ost one8third of

hat the 'arket is currently gi%ing to its on franchisee.

If H*0 Bank 'anages to i'&ro%e the &roducti%ity of these $ranches to e%en half the le%els

of H*0 Bank $ranches6 the 'erger ill $eco'e &ositi%e in longer ter'.

The 'erger as J!S diluti%e for H*0 Bank in the interi'

The &rofita$ility ratios of 0Bo! are @uite lo6 this looked an e&ensi%e &ro&osition for

H*0 in the short run

,ccess to 34 $ranches of 0Bo! and an increased &resence in southern and northern states

1- of 0Bo!s $ranches lie in the orth6 concentrated in the ational 0a&ital Region :0R6

));6 !un"a$ :-/;6 Haryana :2/;E 1) of its $ranches are situated in the South6 'ainly in


33/54

S#T ,nalysis of $anking sector of India

STRENGTH

Indian $anks ha%e co'&ared fa%ora$ly on groth6 asset @uality and &rofita$ility

ith other regional $anks o%er the last fe years. The $anking inde has gron at

a co'&ounded annual rate of o%er )1 &er cent since ,&ril 21 as co'&ared to a

2- &er cent groth in the 'arket inde for the sa'e &eriod. !olicy 'akers ha%e

'ade so'e nota$le changes in &olicy and regulation to hel& strengthen the sector.

These changes include strengthening &rudential nor's6 enhancing the &ay'ents

syste' and integrating regulations $eteen co''ercial and co8o&erati%e $anks.

Bank lending has $een a significant dri%er of 5! groth and e'&loy'ent.

Jtensi%e reachD the %ast netorking K groing nu'$er of $ranches K ,TMs.

Indian $anking syste' has reached e%en to the re'ote corners of the country.

The go%ern'entFs regular &olicy for Indian $ank since 1+ has &aid rich

di%idends ith the nationalization of 14 'a"or &ri%ate $anks of India. In ter's of

@uality of assets and ca&ital ade@uacy6 Indian $anks are considered to ha%e clean6

strong and trans&arent $alance sheets relati%e to other $anks in co'&ara$le

econo'ies in its region. India has // scheduled co''ercial $anks :S0Bs; 8 2-

&u$lic sector $anks :that is ith the 5o%ern'ent of India holding a stake;after

'erger of e Bank of India in !un"a$ ational Bank in

33


34/54

WEAKNESS

!SBs need to funda'entally strengthen institutional skill le%els es&ecially in

sales and 'arketing6 ser%ice o&erations6 risk 'anage'ent and the o%erall

organizational &erfor'ance ethic K strengthen hu'an ca&ital. #ld &ri%ate sector

$anks also ha%e the need to funda'entally strengthen skill le%els. The cost of

inter'ediation re'ains high and $ank &enetration is li'ited to only a fe

custo'er seg'ents and geogra&hies. Structural eaknesses such as a

frag'ented industry structure6 restrictions on ca&ital a%aila$ility and de&loy'ent6

lack of institutional su&&ort infrastructure6 restricti%e la$our las6 eak cor&orate

go%ernance and ineffecti%e regulations $eyond Scheduled 0o''ercial Banks

:S0Bs;6 unless industry utilities and ser%ice $ureaus. Refusal to dilute stake in

!S7 $anksD The go%ern'ent has refused to dilute its stake in !S7 $anks $elo

)1O thus choking the headroo' a%aila$le to these $anks for raining e@uity ca&ital.

OPPORTUNITY

The 'arket is seeing discontinuous groth dri%en $y ne &roducts and ser%ices

that include o&&ortunities in credit cards6 consu'er finance and ealth

'anage'ent on the retail side6 and in fee8$ased inco'e and in%est'ent $anking

on the holesale $anking side. These re@uire ne skills in sales K 'arketing6

credit and o&erations.

Banks ill no longer en"oy indfall treasury gains that the decade8long secular

decline in interest rates &ro%ided. This ill e&ose the eaker $anks. ith

increased interest in India6 co'&etition fro' foreign $anks ill only intensify.

5i%en the de'ogra&hic shifts resulting fro' changes in age &rofile and household

inco'e6 consu'ers ill increasingly de'and enhanced institutional ca&a$ilities

and ser%ice le%els fro' $anks. e &ri%ate $anks could reach the net le%el of

their groth in the Indian $anking sector $y continuing to inno%ate and de%elo&

differentiated $usiness 'odels to &rofita$ly ser%e seg'ents like the rural>lo

34


35/54

inco'e and affluent>HI seg'entsE acti%ely ado&ting ac@uisitions as a 'eans to

gro and reaching the net le%el of &erfor'ance in their ser%ice &latfor's.

,ttracting6 de%elo&ing and retaining 'ore leadershi& ca&acity Foreign $anks

co''itted to 'aking a &lay in India ill need to ado&t alternati%e a&&roaches to

in the Crace for the custo'erA and $uild a %alue8creating custo'er franchise in

ad%ance of regulations &otentially o&ening u& &ost 2. ,t the sa'e ti'e6 they

should stay in the ga'e for &otential ac@uisition o&&ortunities as and hen they

a&&ear in the near ter'. Maintaining a funda'entally long8ter' %alue8creation

'indset. Reaching in rural India for the &ri%ate sector and foreign $anks.

THREATS

Threat of sta$ility of the syste'D failure of so'e eak $anks has often

threatened the sta$ility of the syste'. Rise in inflation figures hich ould lead

to increase in interest rates. Increase in the nu'$er of foreign &layers ould

&ose a threat to the !SB as ell as the &ri%ate &layers.

Increase in 0RR rate

3)


36/54

,ET-ODOLOGY OF T-E STUDY

Re$ear%h ,ethoo#og*

Research as a 'ean of getting knoledge can $e carried out either ar$itrarily or in a

syste'atic fashion. It is a &ur&osi%e in%estigation.

Research 'ay $e a 'ean to kno the s'all change and ti'e forced u&on us as indi%idual

or as a society. Research as &rocess in%ol%es defining the &ro$le'6 for'ulating the

hy&othesis6 organizing and e%aluating the data6 deri%ing inference and conclusion after

careful testing.

Data Co##e%tion

,s data is re@uired for any research acti%ity6 it is collected :for those $oth the !ri'ary

and Secondary; as follosD

.ri&ar* Data!

I ha%e collected this data through @uestionnaire.

Se%onar* Data!

This data is collected fro' different sources a%aila$le consolidated fro' $ook

&u$lication re&orts6 e$sites here used as a source of secondary data in order to do this

&ro"ect and to collect necessary data. I ha%e used the 'anuals and leaflets of the H*0

K S.B.I $ank.

Ob3e%ti(e of $t)*

.ri&ar*! "

1. ,nalysis and e%aluation of custo'er s satisfaction ith res&ect to Balance Sheet

&erfor'ance.

2. To deter'ine the 'ain characteristic hich custo'ers look u&on hile taking Balance

Sheet

3. To deter'ine the other $ank those are co'&eting ith the sa'e &roduct rang in

Balance Sheet.

Se%onar*! "

1. Ser%ice le%el and channel associate a&&roach.

2. To find the le%el of $rand aareness.

3+


37/54

3. To find out the co'&any 'arket share.

T*0e$ of re$ear%h!"

escri&ti%e research

.ri&ar* ata %o##e%tion

Through uestionnaire are filled $y res&ondents.

Se%onar* ata %o##e%tion

ata collection through Internet6 Magazines.

Sa&0#e $i1e H ,etho of $e#e%ting $a&0#e

Sa&0#e $i1e8D 1 res&ondents

,etho of $e#e%ting $a&0#eD8 0on%enience sa'&ling 6 1 custo'er

fro' each $ank

S%o0e of $t)*

i. S&ecial area to $e focused for increasing the sales and for sales

&ro'otion acti%ities to $e ado&ted.

ii. To 'ake &roduct 'ore inno%ati%e and easy to understand

iii. *or &ro%iding 'ai'u' satisfaction to the custo'er $y knoing their needs and

re@uire'ent a$out &roduct and ser%ices.

i%. Ste&s to $e taken at &resent for sur%i%al and facing the co'&etition ith other

e@ui%alent &roduct.

%. 0ontinues i'&ro%e'ent and for $etter 'anage'ent.

%i. Maintaining good relation $eteen 'anager and custo'er.

3-


38/54

Li&itation$ of the $t)*

The study as li'ited only 9ai&ur city Hence findings 'ay $e differ fro' other

&art of country.

Many for'alities and re@uire'ents during &rocess of taking Balance Sheet.

Many ti'es res&ondents ere so $usy that they didnt t gi%e re&ly. There ere

$iased re&lies also.

3/


39/54

FACTS AND FINDINGS

1. 4)O custo'ers are &refer the SBI Bank hen taking Balance Sheet and only 3O

custo'ers

&refer H*0 Bank.

2. *a'ily 'e'$ers are creating 'ore effect on decisions regarding Balance Sheet.

3. Interest rate is 'ain factor consider $y custo'ers hen taking loan.

4. Most of the custo'er &refers the re&ay'ent of loan in higher duration.

). Most of the custo'ers consider the &olicies of $ank regarding Balance Sheet.

+. ) O custo'ers gi%e the higher rating to SBI Bank.

-. In H*0 Bank only 3 O custo'ers gi%e the higher rating to H*0 Bank

/#nly go%ern'ents e'&loyees are &refer the SBI Bank.

. Si'ilarly self e'&loyed K $usiness'ans are &refer the H*0 Bank.

1 (o inco'e class &eo&le face difficulty to taking Balance Sheet

3


40/54

ANALYSIS AND INTER.RETATION

Sa&0#e $i1e :66

': T*0e of %)$to&er$'

Inter0retation!"

,s &er the study the go%t. e'&loyees are 'ain custo'ers of SBI $ank

and $usiness'an are less 'ini'u'. #n the other side orking &rofessional are 'ain

custo'ers of H*0 $ank.

'5 Bank 0referen%e for Ba#an%e Sheet'

SBI -DFC

a B)$ine$$&an :5 56

b Se#f e&0#o*e 56 56

% orking 0rofe$$iona# 58 ;4

Go(t'$er(i%e e&0#o*ee =6 54

4


41/54

a -DFC ;6

b SBI =4

% OT-ERS 54

Inter0retation!"

Mai'u' nu'$er of custo'ers &refer SBI $ank for taking

Balance Sheet co'&are to H*0 $ank $coz of lo interest rate6 good i'age6 and &u$lic

sector $ank. 2)O custo'ers &refer other $ank like I0I0I6 !B6 and Bank of Broad.

'; So)r$ of %o&&)ni%ation ?Fro& where %)$to&er$ get the

41


42/54

Infor&ation abo)t bank'

Inter0retation!"

,s &er as 'y the study the fa'ily 'e'$ers are the 'ain sources of

0o''unication a$out $ank and ad%ertise'ent is other sources. *a'ily 'e'$ers

influence the decision related to taking Balance Sheet.

'= Fa%tor$ %on$ier b* %)$to&er$ whi#e taking #oan'

a A(erti$e&ent ;6b Frien 54

% Fa&i#* &e&ber ;4

Other$ :6

42


43/54

a Intere$t rate 76

b S%he&e 56

% D)ration 8

Other$ 5

Inter0retation!"

hen any custo'ers &lanning for taking Balance Sheet fro' any

$ank they 'ainly consider the interest rate of the &articular $ank and they gi%e second

&reference to duration K sche'es.

.) (oan duration &referred $y custo'ers'

43


44/54

Inter0retation!"

Mai'u' custo'ers &refer the 'ore than ) years duration for Balance

Sheet $ecause of long duration 'onthly install'ent can $e afforda$le $y the custo'ers.

.+ 0onsideration on &olicies of $ank regarding Balance Sheet $y custo'ers.

a 5 *ear$ :5b ; *ear$ 58

% = *ear$ 5=

,ore than 4

*ear$ ;

bhanu pratap11111

Documents