...Introduction Indian banking system has emerged as a vibrant sector in the Indian economy. Strong regulatory mechanism, inherent strength in the economy, and progressive policy framework which supports, nurtures, and helps in growing the financial institutions. Indian financial services industry is dominated by the banking sector that contributes significantly to the level of economic activity. The banking structure in India is broadly classified into public sector banks, private sector banks and foreign banks. The public sector banks continue to dominate the banking industry, in terms of lending and borrowing, and it has widely spread out branches which help greatly in pooling up of resources as well as in revenue generation for credit creation. The role of banks in accelerating economic development of the country has been increasingly recognized since the nationalization This facilitated the rapid expansion of banking in terms of its geographical reach covering rural India, in turn leading to significant growth in deposits and advances. Eventually, however, the government used banking sector to finance its own deficit by frequently increasing cash reserve ratios (CRR) and statutory liquidity ratio (SLR). Deregulation of the Indian financial system in 1991 followed by various financial sector reforms during the period 1990 through 1998 led to a major restructuring of the Indian banking industry. India has entered high growth trajectory with the initiation of economic reforms...
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...Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. HDFC Bank is one of the Big Four banks of India, along with: State Bank of India, ICICI Bank and Punjab National Bank. Mission statement: HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank's business philosophy is based on four core values - Operational Excellence, Customer Focus, Product Leadership and People. PRODUCT VERTICALS HDFC Bank offers a wide range of commercial and transactional banking services and treasury products to wholesale and retail customers. The bank has three key business segments: 1. Wholesale Banking Services The Bank's target market ranges from large, blue-chip manufacturing companies...
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...Banking industry has shown tremendous growth in volume and complexity during the last few decades. Despite amplified thrust by the government on increase of branch network across the country since 1969, still the fruits of the banking not reached to the common man which is evident from the below: Ø Half of the residents are out of the banking system and unable to prove their identity on account of poor financial back ground and belong to Below Poverty Line (BPL) segment. Ø 60% of farmers do not have access to credit from Banks. Ø Poor pay usurious interest at 40% to 50% to Money Lenders. Even Micro Finance Institutions charge 20-30% interest. Ø More than 40% of the government’s subsidy and social spending is being siphoned off, mostly by “ghosts” and undeserving recipients. Ø In spite of best efforts, the various welfare/employment generated programs aimed at poor households with huge budget allocations (NREGS, JSY and PDS) are going into unscrupulous hands and leading to widespread leakage of public money. http://www.allbankingsolutions.com/Articles/Articles-NSNR-Financial-Inculsion-Role-of-IT.shtml Financial Inclusion: How India can achieve it? “Inclusive growth” was one of the important objectives of eleventh five year plan in India. Inclusion of each and every section of the society in the process of economic development and achieving growth with equity is the basic objective of “inclusive...
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...Speech Financial Inclusion and Banks: Issues and Perspectives Financial Inclusion and Banks: Issues and Perspectives* K. C. Chakrabarty Ms Naina Lal Kidwai, Vice President, Federation of Indian Chambers of Commerce and Industry (FICCI) and Country Head HSBC India & Director, HSBC Asia Pacific, Ms Meera Sanyal, Chairperson, FICCI’s Financial Inclusion Committee & Country Executive India, The Royal Bank of Scotland N.V., Ms Caitlin Wiesen, Country Director, UNDP, Mr Mathew Titus, Co-chair, FICCI’s Financial Inclusion Committee & Executive Director, Sa-Dhan, Ms Jyoti Vij, Assistant Secretary General, FICCI, members of the print and electronic media, ladies and gentlemen. It is indeed a pleasure to be present here today to address this gathering on the bankers’ role in promoting financial inclusion, their achievements, and the key issues and challenges being faced by them. Role of FICCI and UNDP 2. As you are all aware, financial inclusion is a mammoth task and it cannot be achieved without the active collaboration of all stakeholders. It is in this context that this particular seminar organised by FICCI, which is an apex industry association and brings a large number of stakeholders under its fold, and United Nations Development Programme (UNDP), which is at the centre of the UN’s efforts to reduce global poverty, assumes significance. FICCI has been playing a leading role in policy debates touching social, economic and political issues and I believe that corporates have a great...
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...A Study of Monetary Policy Impact on Stock Market Returns (With Special Reference to Nifty and Bank Nifty) A PROJECT REPORT Submitted by Chintan Divetia (1011416026) Submitted to Mr. Raviraj Gohil Assistant Professor Department of Finance In partial fulfilment for the award of the degree of POST GRADUATION DIPLOMA IN MANAGEMENT in Finance Shanti Business School, Shela, Ahmedabad. ACKNOWLEDGEMENT It was a great opportunity for me to work with Sharekhan Ltd., pioneers in the field of Stock Market. I am extremely grateful to all those who have shared their expertise and knowledge with me and without whom the completion of this project would have been virtually impossible. Firstly, I would like to thank my Company Mentor Mrs. Raina Vashi who has been a constant source of inspiration for me during the completion of this project. I would also like to thank Mr. Henal Bardoliwala, Relationship Manager of Sharekhan Ltd., for supporting me to complete my project. I am thankful to all staff of Sharekhan Ltd for their valuable support and cooperation during the entire tenure of this project. I thank my faculty guide Mr. Raviraj Gohil who helped me out at every critical situation that i faced in my project and gave us his valuable advice to solve problems. EXECUTIVE SUMMARY I feel great pleasure by presenting this project. As a student of PGDM of ‘Shanti Business School Ahmedabad’, there is a subject of partial training followed...
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...Banking Power-Pack – June 2015 BANKING - 2015 JUNE June 1 • IRDAI removes cap on business from one insurer for banks. IRDAI has done away with the capping of insurance business from one insurer by a bank in its latest draft. As compared to the previous draft that mandated banks to cap business from one insurer to 50%, IRDAI has removed this cap. This would mean that those insurers without a bank partner or promoter would still have to wait longer to get business from bancassurance. The regulator has said that an insurer can have tie-ups with up to three insurers in any line of business-life, non-life or health. Background Presently, banks are allowed to tie-up as a corporate agent with one life, one non-life and one standalone health insurer. Hence, insurers who entered the market later did not have any bank partner. • FinMin, RBI set up panel on reducing cash transactions. To reduce cash transactions in the economy and boost the usage of cards and point of sales (PoS) terminals, the Union finance ministry and Reserve Bank of India (RBI) have set up a committee to look at ways to encourage use of plastic money. The committee has representatives from National Payments Corporation of India, State Bank of India and ICICI Bank. Background RBI data at the end of December 2014 showed 1.05 million PoS machines in the country, whereas there are over 500 mn debit cards and at least 20 mn credit cards. In 2013-14, according to a Boston Consulting Group report, the number of cash...
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...nations, like India have immensely benefited from the globalizing economy. Wealth has been pouring into the country as investments (both direct and institutional). Indian companies are acquiring companies all over the world, hence benefitting from expansion. This has directly affected the lives of many citizens in our country. For many, there has been a dramatic increase in the disposable income. The savings, consumption and investment patterns have changed in the past few years. This has meant that there has been an increase in demand for many financial services from different financial firms. The market has responded to this soaring demand with making attractive offers and services for the customers at affordable rates. Since the LPG reforms of 1991, there have been progressive reforms in the financial sector allowing for better and easier facilities and options to the consumer. An increasing financially aware middle class have realized the importance of financial services. Banks have streamlined and rationalized themselves to meet with the changing demands of the people. However, not all the reforms in the financial services sector have still been able to bring in the other half of India’s population who are un-banked. There are many reasons that are obvious for this kind of financial exclusion. Most of the un-banked or financially excluded population of India lives in rural areas; nevertheless, there is also a significant amount of the urban population of India who faces...
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...Introduction The Government of India and the Reserve Bank of India have been making concerted efforts to promote financial inclusion as one of the important national objectives of the country. Some of the major efforts made in the last five decades include - nationalization of banks, building up of robust branch network of scheduled commercial banks, co-operatives and regional rural banks, introduction of mandated priority sector lending targets, lead bank scheme, formation of self-help groups, permitting BCs/BFs to be appointed by banks to provide door step delivery of banking services, zero balance BSBD accounts, etc. The fundamental objective of all these initiatives is to reach the large sections of the hitherto financially excluded Indian population. The speech is organized in five sections: Section 1 - Definitions Section 2 - Extent of Financial Exclusion Section 3 – RBI Policy Initiatives and Progress in Financial Inclusion Section 4 – Stakeholder-wise Issues in Financial Inclusion Section 5 – Conclusion and Way forward Section - 1 Definitions 1.1 Financial inclusion may be defined as the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost (The Committee on Financial Inclusion, Chairman: Dr. C. Rangarajan). 1.2 Financial Inclusion, broadly defined, refers to universal access to a wide range of financial services at a reasonable...
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...Analysis of IDBI Bank products with Other Banks Summer Internship Program 6/28/2012 AMITY UNIVERSITY-NOIDA LOLI ATHILI MBA-Insurance and Banking Enrollment no. A2828411082 Batch : 2011-2013 Project Report At A Glance Prepared By: Loli Athili Insurance and Banking Amity University, UP Noida Sec 125- 201303 Report Title: A Comparative analysis of IDBI bank products with other banks. Organization: IDBI Bank, Shillong 793003 Period: 10th May to 28th June Organizational Guide: Mr. Tenzing Nima Asst. Manager (Service and Operation) IDBI Bank Police Bazaar, Shillong-793001 Institutional Guide: Mr. J.L. Kapoor Asst. Professor Amity University, Noida, UP. Contents ParticularsDeclaration | Page number 5 | Acknowledgement | 6 | Preface | 7 | Chapter 1: Introduction of Banking Industry in India and Overview of the Organization, IDBI Bank | 9 | Executive Summary | 34 | Research Methodology | 35 | Scope of the study | 36 | ...
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...IN BANKING INDUSTRY | Submitted by- Kartikeya Vairagare 046 laxita Chauhan 048 Manvendra Gautam 050 Mohit dave 053 Pranit Bhagat 055 Piyush Shende 057 Shambhavi Singh 078 | Introduction In recent time, we has witnessed that the World Economy is passing through some intricate circumstances as bankruptcy of banking & financial institutions, debt crisis in major economies of the world and euro zone crisis. The scenario has become very uncertain causing recession in major economies like US and Europe. This poses some serious questions about the survival, growth and maintaining the sustainable development. However, amidst all this turmoil India’s Banking Industry has been amongst the few to maintain resilience. The tempo of development for the Indian banking industry has been remarkable over the past decade. It is evident from the higher pace of credit expansion, expanding profitability and productivity similar to banks in developed markets, lower incidence of non- performing assets and focus on financial inclusion have contributed to making Indian banking vibrant and strong. Indian banks have begun to revise their growth approach and re-evaluate the prospects on hand to keep the economy rolling. 1. HISTORICAL BACKGROUND Bank of Hindustan was set up in 1870; it was the earliest Indian Bank. Later, three presidency banks under Presidency Bank's act 1876 i.e. Bank of Calcutta...
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...18-20, 2013 Digital Inclusion in India: A Case of Mobile Banking Ganesan Parimalarani vini_parimal@yahoo.com Dayananda Sagar Business Academy, Bangalore 1. Introduction Mobile-Banking is a buzz word in the banking sector throughout the world and Indian banks are not exception to it. The liberalization, globalization and privatization of the Indian economy in 1990s paved a more flexible functioning of the services sector and particularly the banking industry. Added to this the adoption of technology in the banking sector has made a remarkable advancement in the service quality of the banks in India. Now bank customers are availing their banking services through internet banking, ATM services and further it has added one more feather to its services by introducing Mobile-Banking to its channel of distribution. Mobile banking is a subset of banking as it allows everyone easy access to their banking activities via., mobile handset (YU&Fang, 2009). Various research findings regarding the penetration of mobile phone, states that the penetration level of mobile in the world is more comparable to that of the banking. The Financial Access Initiative, a research consortium based on New-York University has identified that 2.5 adults worldwide do not have a savings or credit account with either a traditional or alternative financial institution (Chaia, et., 2009). Across the globe the formal banking reaches about 37 per cent of the population, but mobile phone penetration level is 50 per...
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... www.hemonline.com BROKING | DEPOSITORY | DISTRIBUTION | FINANCIAL ADVISORY INDEX INDIAN ECONOMY - 01 BANKING INDUSTRY OVERVIEW RECENT NEWS PRODUCTS & SERVICES ARE INDIAN BANKS SAFE??? GRAPHICAL PRESETATION RBI STEPS TO FIGHT AGAINST LIQUIDITY CRUNCH ANALYSIS OF BANKING SECTOR A) CRAMELS STRATEGY B) PORTER'S FIVE FORCES MODEL C) PEST ANALYSIS D) SWOT ANALYSIS GROWTH PROSPECT & MARKET OPPORTUNITIES THINGS TO WATCH & KEY TAKEAWAYS - 02 - 03 - 04 - 05 - 06 - 07 - 08 - 09 - 10 -11 - 12 - 13 - 14 - 15 - 16 - 17 - 18 - 19 - 20 - 21 - 22 - 23 - 24 - 25 - 27 - 28 - 29 - 30 - 31 - 32 - 34 - 36 - 38 - 40 - 42 - 44 - 46 - 48 - 50 - 52 - 54 TELECOM INDUSTRY OVERVIEW RECENT UPDATES ALL ABOUT TELECOM INDUSTRY SEGMENTS GOVERNMENT REGULATIONS ALL ABOUT ‘3RD GENERATION TECHNOLOGY (3G)’ FUTURE OF INDIAN TELECOM INDUSTRY ANALYSIS OF TELECOM SECTOR A) PORTER'S FIVE FORCES MODEL B) SWOT ANALYSIS & KEY TAKEAWAYS WHAT’S ROAD AHEAD FMCG INDUSTRY OVERVIEW INDUSTRY CATEGORY AND PRODUCTS GROWTH PROSPECT GOVERNMENT INITATIVE MARKET OPPORTUNITIES ANALYSIS OF FMCG SECTOR A) PORTER'S FIVE FORCES MODEL B) SWOT ANALYSIS & KEY TAKEAWAYS COMPANIES BHARTI AIRTEL LIMITED RELIANCE COMMUNICATION HDFC BANK STATE BANK OF INDIA UNION BANK OF INDIA AXIS BANK LIMITED PUNJAB NATIONAL BANK HINDUSTAN UNILEVER LIMITED GODREJ CONSUMER PRODUCTS LIMITED DABUR INDIA LIMITED EMAMI LIMITED ICSA INDIA LIMITED For Private Circulation Only Hem Institutional Research Desk www.hemonline.com BROKING |...
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...Indian Banking – The engine for sustaining India’s growth agenda 5th ICC Banking Summit Kolkata 18 May 2013 Foreword Over the past couple of years, the Indian banking sector has displayed a high level of resilience in the face of high domestic inflation, rupee depreciation and fiscal uncertainty in the US and Europe. In order to stimulate the economy and support growth of the banking sector, the Reserve Bank of India (RBI) adopted several policy measures. © 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Asset quality, capital adequacy, financial inclusion and talent management are some of the key issues facing the Indian banking industry, which despite serving the second largest populated country in the world with a total of 87 banks (including 26 public sector banks, 20 private banks and 41 foreign banks), as per the RBI, reaches out to only about half of the country’s households, scripting a nominal global footprint. The rising consumerism from the emerging ‘middle’ India and the higher purchasing power in rural India on account of rising employment provides opportunities for banks to look beyond the traditional customer segments. However, these segments would require flexible operating models which would ensure responsiveness at the last mile and at the same time be viable for the banks. On the...
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...EXECUTIVE SUMMARY: Finance is the life blood of trade, commerce and industry. Now-a-days, banking sector acts as the backbone of modern business. Development of any country mainly depends upon the banking system. Every bank in India has to compulsorily concentrate on Financial Inclusion as it is one of the developing sectors of Indian Economy. It is one of the segments that have a major impact on Indian Economy. The main purpose of this study is to understand the impact of Financial Inclusion on Indian Economy. The study focuses on the financial exclusion and inclusion. It concentrates on the various reasons, causes and consequences of financial exclusion. It also focuses on the initiatives taken by the Government and RBI to expand the coverage of financial inclusion. The various policy been developed with respect to the financial inclusion. The study has majorly focused on 4 objectives: * To understand the reasons for Financial Exclusion in India * To analyze the extent of financial inclusion coverage in India * To list the various measures & initiatives of state / central government with respect to financial inclusion * To understand the link between Industry growth and financial inclusion With the upcoming years there is a strong hope that the vision and mission of financial inclusion will be successful and a large group of customers would enjoy the benefits of banking services. The financial illiteracy of rural masses will no more be a hindrance in the development...
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...Abstract The paper talks about the primary market, FDIs, capital makets, banking sector and infrastructure financing as well. With all these elements in the India Financial market, it happens to be one of the oldest across the globe and is definitely the fastest growing and best among all the financial markets of the emerging economies. The history of Indian capital markets spans back 200 years, around the end of the 18th century. It was at this time that India was under the rule of the East India Company. The capital market of India initially developed around Mumbai; with around 200 to 250 securities brokers participating in active trade during the second half of the 19th century. The journey of Indian financial markets has been of many shades over the last decade. We have seen a lot of progress, but also significant pauses. Many twists and as many turns. Awe inspiring growth punctuated by its gasping lack of inclusiveness. Presumably, these are the teenage pangs of a free economy which is jostling for its rightful place in the Globe. The fastest free market economy is now face to face with the challenges and opportunities to opt for either slow and steady or fast and furious growth, in the next decade. Financial market You are fully aware that business units have to raise short-term as well as long-term funds to meet their working and fixed capital requirements from time to time. This necessitates not only the ready availability of such funds but also a transmission...
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