BANKING INDUSTRY

Tasheen SheikhTulika Chopra

Varsha DebnathVasvee Gupta

Vidhi ChauhanYamini Baghel

BANK• A bank is a financial institution that accepts deposits and channels those deposits into lending activities.

Functions Of Banks

• Accepting Deposits• Lending Money

• Remittances (A remittance is a transfer of money by a foreign worker to his or her home

country.)• Locker’s Facility

• Foreign Exchange Business

BANKING INDUSTRY IN INDIA

• First bank started in 1786.• RBI became central bank in

1934.• Nationalized in 1969.• Liberalization occurred in

1991.

BANKING INDUSTRY

The Public Sector Banks(PSBs), which are the base of the Banking sector in India account for more than 78 per cent of the total banking industry assets.

The Private Sector Banks are making tremendous progress. They are leaders in Internet banking, mobile banking, phone banking, ATMs

INDIAN BANKING INDUSTRY

• The Indian Banking Industry can be categorized into 1.non-scheduled banks 2.scheduled banks.

Types of banks

• Commercial bank:• Community banks:• Co-operative banks: • Private banks:

TYPES OF BANKS

• Offshore banks:• Savings bank:• Ethical banks:• Islamic banks

Public

Sector

Banks

• Lets take State Bank of India and its associate banks called the State Bank Group

• 20 nationalized banks• Regional rural banks mainly sponsored by public sector banks

Private Sector

Banks

• Old generation private banks• New generation private banks• Foreign banks operating in India• Scheduled co-operative banks• Non-scheduled banks

Co-operative

Sector

• State co-operative Banks • Central co-operative banks • Primary Agriculture Credit Societies

Entry regulation

The requirements for the issue of a bank licence vary between jurisdictions but typically include:

• Minimum capital• 'Fit and Proper' requirements for the

bank's controllers, owners, directors, and/or senior officers

• Approval of the bank's business plan as being sufficiently prudent and plausible.

Major players in the Indian Banking sector• State Bank Of India.• Allahabad Bank.• HDFC.• Uco Bank.• Punjab National Bank.• Bank of Baroda.• Canara Bank.• ICICI Bank.• Axis Bank.

HERFINDAHL INDEX: Public

sector source: Capitaline Database

HERFINDAHL INDEX: Private

Sector

source: Capitaline Database

Challenges faced by Banking industry in India• Deregulation: This continuous

deregulation has made the Banking market extremely competitive with greater autonomy, operational flexibility and decontrolled interest rate and liberalized norms for foreign exchange.

• New rules: Banks are transforming to universal banking, adding new channels with lucrative pricing and freebees to offer.

Economies of scale• banking consolidation will result in a small

number of large monopoly banks that can achieve substantial economies of scale and outperform small competitors.

• But research suggests that small banks are sometimes more efficient than their large counterparts. One competitive strategy undertaken by numerous small banks is agricultural lending.

• it is not necessary to be large to be efficient for the banks with loan specialization.

REVENUES• Growth have been more qualitative.• Based on then projections made in the

“India Vision 2020”.• Total asset of all scheduled commercial

banks is estimated at Rs.40,90,000 crores(end march 2012).

• Expected to grow at an annual composite rate of 13.4%.

Future outlook• RISK MANAGEMENT.• CONSOLIDATION.• GLOBALIZATION/ OVERSEAS EXPANSION.• TECHNOLOGY.

Job Opportunities for MBA in Banking Sector.• Specialist Officers.• Loan Officers. • Assistant Manager.

I Public sector Banks recruit mainly graduates , MBAs,CAs and CFAs at the entry level on the basis of All India Level examination.

• However professionals like engineers, doctors, technologists, lawyers, ex-defence officers etc are recruited on senior positions through All India tests.

II Private sector/Foreign Banks prefer to take MBA's, CA's etc at junior positions

• through Campus recruitment and interviews. • However, at the senior positions they opt for

experienced bankers.• Thus the officers from Public sector Banks become

the natural choice for such positions. • Thus job-hopping has become an well-accepted norm

in the Industry.

Thank Youanks Any Queries???