Date post: | 06-Apr-2018 |
Category: |
Documents |
Upload: | ashwin-satra |
View: | 229 times |
Download: | 0 times |
of 23
8/3/2019 A 37 Ashwin Satra
1/23
NCRDs Sterling Institute of Management Studies
NCRDs Sterling Institute of Management Studies
Presented to : Prof. Mayur M. & Prof. Aradhana T.
Presented to : Prof. Mayur M. & Prof. Aradhana T.
Div A Ashwin R. Satra Roll No.37
Div A Ashwin R. Satra Roll No.37
Summer Project
On
Depository Services
at
Dena BankMMS 2010-12, Semester III
Faculty Guide : Prof.Rakhi Shrivastava Company Guide : Mr.Ratan K. Khanna
8/3/2019 A 37 Ashwin Satra
2/23
Depository Services
Depository Services
Purpose of Project
Purpose of Project
The purpose of this project was to understand the
current Depository Services in India with special
reference to Dena Bank and then suggest an improvedand viable business model for the Depository
department of Dena Bank
8/3/2019 A 37 Ashwin Satra
3/23
Understanding Banking Sector
Understanding Banking Sector
Indian Banking Sector
Indian Banking Sector
Sector Comprises 26 State Sector banks, besides a number of private as well as co-
operative sector players.
Assets size of the banking industry - US$ 1.3 trillion
A Compound Annual Growth Rate (CAGR) of 18 per cent compared to the average
GDP growth of 7.2 per cent during the last decade.
Nationalized banks accounted for 52.2 per cent of the aggregate deposits, with State
Bank of India (SBI) and its Associates accounting for 22.1 per cent.
Potential to become third largest banking sector by 2050 after China & US
8/3/2019 A 37 Ashwin Satra
4/23
Dena Bank
Dena Bank
Introduction
Introduction
Dena Bank was founded on 26th May, 1938 by the family of Devkaran Nanjee
under the name Devkaran Nanjee Banking Company Ltd.
Dena Bank was nationalized in July 1969 with 13 other major banks and is now a
public sector bank.
The logo of Dena Bank depicts Goddess Lakshmi, the Goddess of Wealth,
according to Hindu mythology.
It was the desire of the founding fathers of the Bank that the Bank should be a
symbol of prosperity for all its clients, and the logo represents this promise.
8/3/2019 A 37 Ashwin Satra
5/23
Dena Bank
Dena Bank
Services offered by Dena Bank
Services offered by Dena Bank
Core Banking Solution
Dena ATM Services
Internet Banking
Dena e-Tax Pay
Mobile Banking
Phone Banking
Inbound Remittances
Direct Tax Collection
Indirect Tax
Demat Services
Dena BillPay
RTGS/NEFT
DEPOSITORY
SERVICES
8/3/2019 A 37 Ashwin Satra
6/23
Introduction to Depositories
Introduction to Depositories
Meaning
Meaning
Depository is used to refer to any place where something is deposited for storage or
security purposes.
More specifically, it can refer to a company, bank or an institution that holds and
facilitates the exchange of securities.
Or
An Organisation that holds securities of investor in electronic format at the request of
the investor through a registered depository participant.
8/3/2019 A 37 Ashwin Satra
7/23
Depositories In IndiaDepositories In India
NSDL & CDSLNSDL & CDSL
Two Depositories in India
1) National Securities Depository Limited
2) Central Depository Securities Ltd
Dena Bank is depository participant of NSDL
Depository Participant :Intermediaries which perform action on behalf of their client are
known as Depository Participants
8/3/2019 A 37 Ashwin Satra
8/23
Introduction to DepositoriesIntroduction to Depositories
Bank & NSDL-An Analogy & DifferenceBank & NSDL-An Analogy & Difference
BANKS NSDL
Holds funds in accounts Holds securities in accounts
Transfers funds between accounts Transfers securities between accounts
Transfers without handling cash Transfers without handling physical
securitiesSafekeeping of money Safekeeping of securities
BANKS NSDL
Either of holders can sign instructions All joint holders to sign instructions
Entitled for interest Interest can be earned only by
participating in Stock Lending Scheme
Uses balances in accounts Does not move balances in account
without account holders
authorizationMinimum balance to be maintained No minimum balance required
8/3/2019 A 37 Ashwin Satra
9/23
Depositories In IndiaDepositories In India
Functions of DepositoryFunctions of Depository
Maintenance of beneficiary holdings through DPs
Dematerialisation
Re-materialisation
Off-market Trades
Distribution of corporate benefits
Pledging and hypothecation facilities
Freezing/locking of investor's account
Stock lending and borrowing facilities
Settlement in dematerialised securities
Receipt of allotment in the dematerialised form
8/3/2019 A 37 Ashwin Satra
10/23
Depository services In Dena BankDepository services In Dena Bank
Dena Laxmi Demat AccountDena Laxmi Demat Account
Dena Bank apart from normal banking services also offers the capital market oriented
product in the form of Demat account called -Dena Laxmi Demat Account.
Dena Bank is Depository participant of National Securities Depository Limited
(NSDL).since 1997 and is extending Depository services to the Demat Account holdersof the Bank.
Dena Bank provides hassle free transactions in the securities through the Dena Laxmi
Demat Account .
8/3/2019 A 37 Ashwin Satra
11/23
Depository services In Dena BankDepository services In Dena Bank
Functions & FacilitiesFunctions & Facilities
Opening and maintaining of Demat Accounts.
Dematerialisation
Rematerialisation
Instant transfers / deliveries of shares / securities
Settlement of transactions done on the Stock Exchanges
Affecting changes in Addresses / Bank account details for the investments in various
companies with a single request.
Pledging of Security
Freezing and unfreezing of account / only specific security or a specific quantity of a
particular security
8/3/2019 A 37 Ashwin Satra
12/23
Competitive Benchmarking of Dena Bank with PeersCompetitive Benchmarking of Dena Bank with Peers
Nationalized BanksNationalized Banks
Nationalized Bank with Depository services
State Bank of India
Canara Bank
Bank of Maharashtra
Central Bank of India
Dena Bank
Bank of India
Bank of Baroda
Union Bank of India
For the purpose of study, top 4 public banks have been selected having depository
services. I visited the following banks, referred their website etc and gathered
information about their products and charges for our study.
8/3/2019 A 37 Ashwin Satra
13/23
Competitive Benchmarking of Dena Bank with PeersCompetitive Benchmarking of Dena Bank with Peers
Statement of chargesStatement of charges
Activity
Canara Bank
(NSDL)
State Bank of
India
(NSDL & CDSL)
Bank Of
Maharashtra
(CDSL)
Central bank of
India
(CDSL)
Account Opening Charges Nil Nil Nil Nil
Annual Maintenance Charges Rs.200/- Rs.400/- Rs.300/- Rs.200/-
Demat Charges Rs.2/- Rs.2/- Rs.2/- Rs.2/-
Remat Charges Rs.25/- Rs.25/- Rs.15/- Rs.25/-
Pledge (Creation) Rs.50 per ISIN Rs.30 per ISIN Rs.50 per ISIN Rs.25 per ISIN
Account Closure Charges Nil Nil Nil Nil
Online Trading facility ? Yes Yes No No
8/3/2019 A 37 Ashwin Satra
14/23
Recommendations & SuggestionsRecommendations & Suggestions
1.Recommendations & Suggestions1.Recommendations & Suggestions
Web Site Improvement
Capital Market Indicator
Approach to Ex-Customers
Online Trading Facility to be made available at the earliest
ASBA Facility to be made available
Improvements in Clients Delivery Instruction Slip (DIS)
Monthly & Quarterly Statements
8/3/2019 A 37 Ashwin Satra
15/23
Recommendations & SuggestionsRecommendations & Suggestions
2. System Support2. System Support
2. Enter ID and Password 3. Select Demat from Services Menu
The screen should like as follows:
4. Monitor your Portfolio Performanceyourself SelectEquity PortfolioLife Insurance PortfolioNon-Life Insurance Portfolio etc
On selecting specific portfolio relatedscreen should appear, tentatively asfollows:
1. Log in to www.denabank.com
8/3/2019 A 37 Ashwin Satra
16/23
Recommendations & SuggestionsRecommendations & Suggestions
2. System Support2. System SupportName : Ashwin Satra Client ID No. : 10073244
Portfolio Type: Equities and Equity Diversified Mutual Funds
Name of Script Date of Purchase Quantity Purchased Acquisition Cost Current Value Over all Gain Gain % Current Value
RIL 15.05.10 100 1520.00 1640.00 12000.00 7.89 164000.00
TATA
RIIL
BAYER
Total
Pru Ici-Power 15.05.10 10000 20.00 20.80 8000.00 4.00 208000.00
MF2
--
MF_N
Total
Average Holding Period Holding Period
Return
8/3/2019 A 37 Ashwin Satra
17/23
Recommendations & SuggestionsRecommendations & Suggestions
3. Training & other requirements for Depository Services3. Training & other requirements for Depository Services
Skill building programme both in-house as well as external programmes. Skill
building will be required for product awareness, USPs of the product, sales and
marketing techniques.
Statutory requirements like necessary approval from NSDL and NCFM for employeeswho will have to clear some basic level examination.
Equity Research/ Insurance and Mutual Funds Updates to be published and made
timely available to Front officers.
Periodical workshops by the third parties.
Special customer awareness camps (like ICICI Bank) for online trading, sharing
research reports, detailing products of third parties which can be availed by them.
8/3/2019 A 37 Ashwin Satra
18/23
Recommendations & SuggestionsRecommendations & Suggestions
3. Training & other requirements for Depository Services3. Training & other requirements for Depository Services
Specific steps required by Dena Bank in addition to above, once new products are
launched:
It should have separate structure right from corporate level to branch level forDepository services, activity based costing be done to establish the viability and
breakeven.
Dedicated staff catering exclusively to the Depository products, services and
customers.
Offering free advisory service to their customers and later adding to their business
fold.
8/3/2019 A 37 Ashwin Satra
19/23
Recommendations & SuggestionsRecommendations & Suggestions
3. Training & other requirements for Depository Services3. Training & other requirements for Depository Services
Specific steps required by Dena Bank in addition to above, once new products are
launched:
Creation of distinct brand names like Dena Demat Lounge, Dena Depository Services,etc. This will further strengthen the brand image and enhance customer loyalty.
Periodical customer awareness campaigns like seminars for nominal fee educating
them about current market trends, activity in specific equities, on-line dealing and
trading, etc.
8/3/2019 A 37 Ashwin Satra
20/23
Limitations of studyLimitations of study
Although the research has reached its aims, there are some unavoidable limitations,
which are as follows:-
A time constraint was one of the major problems.
Study excludes CDSLs role in Depository Services.
Small sample size i.e. only 4 banks were taken into consideration for survey.
Survey restricted only to nationalized bank providing depository services.
Difficulty in collection of the data.
8/3/2019 A 37 Ashwin Satra
21/23
Scope for future studyScope for future study
The review of the past studies and the experience from this present study make me
offer the following areas for further study in this field.
Study may be conducted among different sectors.
Scope for future study would be more, if study includes CDSLs role in Depository
Services.
Sample Size for survey purpose can be increase to at least 10 companies from
different sectors.
Also there is further scope for conducting this study in other areas, as this study
covers only limited areas.
8/3/2019 A 37 Ashwin Satra
22/23
ConclusionConclusion
Depositories is a wide aspect to talk about with new services coming up and each one
having a different view about it.
Doing this project was a colossal experience and in great deal I found out the
importance of depositories in Indian banking sector.
All in all, to sum things up, this project stands out to be an eye opener in real terms
for me towards a broader vision in understanding the interdependence of the economy,
banks, business and technology within the economy.
8/3/2019 A 37 Ashwin Satra
23/23