Introduction of IDBI Bank: The Industrial Development Bank of India Limited, now more popularly known as IDBI Bank, was established as a wholly-owned subsidiary of Reserve Bank of India. The foundation of the bank was laid down under an Act of Parliament, in July 1964. The main aim behind the setting up of IDBI was to provide credit and other facilities for the Indian industry, which was still in the initial stages of growth and development. In February 1976, the ownership of IDBI was transferred to Government of India. After the transfer of its ownership, IDBI became the main institution, through which the institutes engaged in financing, promoting and developing industry were to be coordinated. In January 1992, IDBI accessed domestic retail debt market for the first time, with innovative Deep Discount Bonds, and registered path-breaking success. The following year, it set up the IDBI Capital Market Services Ltd., as its wholly-owned subsidiary, to offer a broad range of financial services, including Bond Trading, Equity Broking, Client Asset Management and Depository Services. In September 1994, in response to RBI's policy of opening up domestic banking sector to private participation, IDBI set up IDBI Bank Ltd., in association with SIDBI. In July 1995, public issue of the bank was taken out, after which the Government's shareholding came down (though it still retains majority of the shareholding in the
Transcript
Introduction of IDBI Bank:The Industrial Development Bank of India Limited, now more
popularly known as IDBI Bank, was established as a wholly-owned subsidiary of Reserve Bank of India. The foundation of the bank was laid down under an Act of Parliament, in July 1964. The main aim behind the setting up of IDBI was to provide credit and other facilities for the Indian industry, which was still in the initial stages of growth and development. In February 1976, the ownership of IDBI was transferred to Government of India.
After the transfer of its ownership, IDBI became the main institution, through which the institutes engaged in financing, promoting and developing industry were to be coordinated. In January 1992, IDBI accessed domestic retail debt market for the first time, with innovative Deep Discount Bonds, and registered path-breaking success.The following year, it set up the IDBI Capital Market Services Ltd., as itswholly-ownedsubsidiary, to offer a broad range of financial services, includingBond Trading, Equity Broking, Client Asset Management and Depository Services.
In September 1994, in response to RBI's policy of opening up domestic banking sector to private participation, IDBI set up IDBI Bank Ltd., in association with SIDBI. In July 1995, public issue of the bank was taken out, after which the Government's shareholding came down (though it still retains majority of the shareholding in the bank). In September 2003, IDBI took over Tata Home Finance Ltd, renamed ‘IDBI Home finance Limited’, thus diversifying its business domain and entering the arena of retail finance sector
The year 2005 witnessed the merger of IDBI Bank with the Industrial Development Bank of India Ltd. The new entity continued to its development finance role, while providing an array of wholesale and retail banking products (and does so till date). The following year, IDBI Bank acquired United Western Bank (which, at that time, had 230 branches spread over 47 districts, in 9 states). In the financial year of 2008, IDBI Bank had a net income of Rs 9415.9 crores and total assets of Rs 120,601 crores.
The PresentToday, IDBI Bank is counted amongst the leading public sector
banks of India, apart from claiming the distinction of being the 4th largest bank, in overall ratings. It is presently regarded as the tenth largest development bank in the world, mainly in terms of reach. This is because of its wide network of 509 branches, 900 ATMs and 319 centers. Apart from being involved in banking services, IDBI has set up
Introduction1.1 One of the important functions of the Bank is to accept deposits from thepublic for the purpose of lending. In fact, depositors are the major stakeholders ofthe Banking System. The depositors and their interests form the key area of theregulatory framework for banking in India and this has been enshrined in theBanking Regulation Act, 1949. The Reserve Bank of India is empowered to issuedirectives / advices on interest rates on deposits and other aspects regardingconduct of deposit accounts from time to time. With liberalization in the financialsystem and deregulation of interest rates, banks are now free to formulate depositproducts within the broad guidelines issued by RBI.1.2 This policy document on deposits outlines the guiding principles in respectof formulation of various deposit products offered by the Bank and terms andconditions governing the conduct of the account. The document recognizes therights of depositors and aims at dissemination of information with regard tovarious aspects of acceptance of deposits from the members of the public, conductand operations of various deposits accounts, payment of interest on various depositaccounts, closure of deposit accounts, method of disposal of deposits of deceaseddepositors, etc., for the benefit of customers. It is expected that this document will
impart greater transparency in dealing with the individual customers and createawareness among customers of their rights. The ultimate objective is that thecustomer will get services they are rightfully entitled to receive without demand.Deposit Policy21.3 While adopting this policy, the bank reiterates its commitment to individualcustomers outlined in .Code of Banks Commitment to Customers. issued byBanking Codes and Standards Board of India and Bankers' Fair Practice Code ofIndian Banks' Association. This document is a broad framework under which therights of common depositors are recognized. Detailed operational instructions onvarious deposit schemes and related services will be issued from time to time.2 Types of Deposit Accounts2.1 While various deposit products offered by the Bank are assigned differentnames, the deposit products can be categorized broadly into the following types.(i) "Demand deposits" means a deposit received by the Bank which can bewithdrawn on demand by the depositor.(ii) .Savings deposit. means a form of demand deposit designated as .SavingsAccount., .Savings Bank Account., .Savings Deposit Account. etc which issubject to restrictions as to the number of withdrawals as also the amounts ofwithdrawals permitted by the bank during any specified period. Currently the bankdoes not restrict the number of withdrawals and amounts of withdrawals duringany specified period. The bank will give the notice to the depositor, if suchrestrictions are introduced in future.(iii) "Term deposit" means a deposit received by the Bank for a fixed periodwithdrawable only after the expiry of the fixed period and includes deposits suchas Recurring / Short Deposits / Fixed Deposits /Monthly Income / Quarterly
Income/Sweep-in deposits (held in units) or any other form of Fixed deposits.Deposit Policy3(iv) .Notice Deposit. means term deposit for specific period but withdrawable ongiving at least one complete banking day's notice.(v) "Current Account" means a form of demand deposit wherefrom withdrawalsare allowed any number of times depending upon the balance in the account or upto a particular agreed amount and also includes other deposit accounts which areneither Savings Deposit nor Term Deposit.3 Account Opening and Operation of Deposit Accounts3.1 The Bank, before opening any deposit account, will carry out due diligenceas required under "Know Your Customer" (KYC) guidelines issued by RBI and orother norms or procedures adopted by the Bank. If the decision to open an accountof a prospective depositor requires clearance at a higher level, reasons for anydelay in opening of the account will be informed to him and the final decision ofthe Bank will be conveyed at the earliest to him.3.2 The account opening forms and other material would be provided to theprospective depositor by the Bank. The same will contain details of information tobe furnished and documents to be produced for verification and / or for record. Itis expected of the Bank official opening the account to explain the proceduralformalities and provide necessary clarifications sought by the prospectivedepositor when he approaches for opening a deposit account.3.3 For deposit products like Savings Bank Account and Current DepositAccount, the Bank will normally stipulate certain minimum balances to bemaintained as part of terms and conditions governing operation of such accounts.
Failure to maintain minimum balance in the account will attract levy of charges asspecified by the Bank from time to time. For Savings Bank Account the Bank mayDeposit Policy4also place restrictions on number of transactions, cash withdrawals, etc., for givenperiod. Similarly, the Bank may specify charges for issue of cheques books,additional statement of accounts, duplicate passbook, folio charges, etc. All suchdetails, regarding terms and conditions for operation of the accounts and scheduleof charges for various services provided will be communicated to the prospectivedepositor while opening the account. Any changes in the schedule of charges orthe terms and conditions will be communicated to the customers 30 days inadvance.3.4 Savings Bank Accounts can be opened for eligible person / persons andcertain organizations / agencies (as advised by Reserve Bank of India (RBI) fromtime to time).Current Accounts can be opened by individuals / partnership firms / Private andPublic Limited Companies / HUFs / Specified Associates / Societies / Trusts /Limited Liability Partnerships (LLPs) etc.Term Deposits Accounts can be opened by individuals / partnership firms / Privateand Public Limited Companies / HUFs/ Specified Associates / Societies / Trusts,etc.3.5 The due diligence process, while opening a deposit account will involvesatisfying about the identity of the person and verification of address. Obtainingintroduction of the prospective depositor from a person acceptable to the Bank andobtaining recent photograph of the person/s opening / operating the account are
part of the due diligence process.3.6 In addition to the due diligence requirements under KYC norms, the Bankis required by law to obtain Permanent Account Number (PAN) or General Index
Problem with IDBI recruitmentDear SIr/Madam,
I had applied for post of Asst Manager in IDBI Bank, advertised in the month of January 2009, I Submit form accordingly with the Chalan of Rs. 350 & Rs.50 due to OBC Category, my form was selected & got a Hall ticket for written Exam .written Examination Center was Chennai. I qualifed in the written examination & recieved an interview call letter dated 4th May 2009 at IDBI bank, Bhopal Schedueled time 9.30 am, When I reach at particular center of Interviewat 9.30 am they make me to wait till 1'O clock, at the last moment during varification of my documents the bank people said, " you are not eligible for this interview, you don't have experience of any bank or Finanacial institue", I had submitted my form with my experience in a particular company, that time they accepted all the conditions.No false presentataion from my side during filling the form regarding experience.
If according to Bank people I am not eligible for the post so, WHY they selected my form, WHY they send a INTERVIEW call letter, I am very disappointed BY IDBI bank.They had not even give permission to attend interview, they reject my form after such a long process(qualifiing in the written exam, getting call for interview)
I spend money for travelling( for written exam & interview) & wasted my valuable time, for this interview i had taken leave which will consider as Leave without pay for the month of May 2009,
I suffered alot because of IDBI people mistake, being a lady I travelled alone from Hyd to Bhopal Only for this interview, its kind a mental harrashment that i got from IDBI bank recruitment.
Problem with IDBI paisabuilderApril 1, 2010By soundari
I am using IDBI paisabuilder. for the past 6 months i am not able to login. I raised the complain by mail and by call also. It says that “Invalid connection parameters. Please contact the system administrator. “.
Whenever i called the customercare they are telling that pls try after 24 hrs. I am doing the same for so many time. I am paying the yearly charge but they are not allowing me to use. I dont know to whom to contact and how to solve it. Please help me to solve this
ObjectivesIDBI Properties Corporation aims at the optimal utilization of systems technology to support the people's various initiatives relative to specific aspects of its operations. At present, there is a maximum utilization of systems support in the ongoing enhancements in loan processing, collecting and accounting procedures.
All measures have been undertaken not only to maintain IDBI's status as one of the top consumer lending companies in the World, but also to demonstrate to its stockholders, investors, employees, clients and the general public the magnitude of its commitment to do business in the most professional and efficient manner.
All of this is in line with the Company's vision of becoming, in the near future, a transnational and publicly listed provider of fully automated, world-class consumer lending products and services.
IDBI Ltd is one of the top ten Development Banking Institutions in the world. Over the years since its inception, it has proven itself as a strategic investor and successfully promoted several world-class institutions within India, which have revolutionized the Indian financial markets.
Following the merger, the combined entity is known as IDBI Ltd, undertakes activities ranging from project finance to retail banking, and shortly expects to enter the insurance market as well. IDBI has an asset base of Rs 81,000 crore (as in March 2005) and employee strength of about 4000+.
IDBI Ltd' Approach
IDBI Ltd was prompt to respond & adept to emerging scenario by understanding the impact of changes in distribution of services, customer profiles & preferences, industry trends and acted upon the same to convert the change to its advantage. IDBI Ltd has devised a customer centric service delivery strategy, focusing on simple & value added services by utilizing the most convenient and commonly used delivery channels. This required enhancing the existing technology base to meet the varied and diverse customer requirements.
IT Team @ IDBI Ltd
IT Team at IDBI Ltd under the strong management leadership has successfully aligned business objectives with the smart technological implementations to the optimum utilization for the organizational advantage.
The concept of any time, any where banking has been made possible by offering uniform services across various alternate channels such as ATM, Phone banking, Mobile banking, Internet banking, etc. All the channels are integrated to the core banking system in a secure and real time basis.
In the last 12 months our Bank has launched several technologically innovative and customer-centric key initiatives, providing effective alternate channels of payment to the customers. This has also resulted in weaning away a number of customers from the traditional banking channels to the more cost-effective alternate channels. Furthermore, there has been a
substantial improvement in the staff productivity, since the employees now focus on business development rather than mundane operations.
IDBI Ltd has set the examples in product & services deliveries leveraging the technology platforms available to its efficiency & reliability to overall boost the customer confidence & perspective.
IDBI Ltd believes in the principle of keeping the tech-team trim and utilize their services optimally to deliver cutting-edge; rather bleeding-edge technological solutions. We have very judiciously decided on the outsourcing strategy. This enables our internal team to focus on new initiatives and enhancements to existing products. We also endeavor to ensure that the technological solutions that we provide are scalable and cost-effective.
Technology and Tech Initiatives
In IDBI Ltd, expenditure on technology is considered to be an investment and not a cost. Investment in technology is part of the plan to put in place building blocks for creating the right organizational infrastructure. Large investments have been made in back-end technology to strengthen processes, systems and control. This, in the long run, propelled by a top quality management team has clearly set IDBI Ltd apart from its competitors.
Keeping in line with the policy of leveraging technology to drive its business, IDBI Ltd constantly endeavors to implement and deploy new & emerging technology to drive the business needs to the extent of not just meeting, but exceeding customer expectations. IDBI Ltd has always endeavored to use its high-technology platform to provide cutting-edge services to its customers.
IDBI Ltd offers its clients, fully secured and real time electronic delivery channels, providing convenient and secure access to the banking information. It also provides its customers centralized multi-branch connectivity integrated to a heterogeneous Core Banking System across branches in India. This integration provides a seamless access point for clients for all the banking products and services across the channels.
IDBI Ltd believes in a better-integrated customer relationship channel for superior customer service. The bottom line is to make all services available through all channels as listed below.
Branch banking Internet Banking Mobile banking Tele-banking ATM Network Multi- Functional Kiosk Network Point of Sale transactions
IDBI Ltd is the only bank that allows its customers to pay all their bills across any channel i.e. Branch, ATM, Phone Banking, Mobile banking and Internet banking with Auto pay facility. For example, a customer may register for his mobile bill payment through Internet banking. He can pay the bill through ATM or Phone banking or Mobile banking, when the bill is presented.
Keeping pace with the ever-rising demands of our modern day clients, it has been our endeavor to provide value added service with cutting edge technologies to our clients. In this direction our Bank has launched many payment initiatives. The capabilities of Internet banking and web-enabled talking ATMs have been fully exploited in most of these initiatives.
Using a single access to IDBI Ltd's Internet Banking, a customer can query & transact a variety of information related to different applications / products, access the Demat particulars, access the details with respect to GOI bonds, make a Card-to-Card transfer, effect an online tax payment, purchase National Savings Certificate, Cash Management, etc.
IDBI Ltd was also the frontrunner with respect to secured electronic transmission of tax collection data through the usage of Digital Signature Certificates.
IDBI Ltd launched a strategic Internet Banking platform to facilitate on line payments to & from corporate customers & its dealers /agents, thereby enhancing corporate business through new-age technology and offering supply chain financing solutions.
Overall IT spending for year 2005-2006
Overall IT Spending for year 2005-2006 was approximately 50 Crores approximately. Major spending this year has contributed to the branch automation initiative and the data center set up catering to computing requirements of the growing organization. In tangible benefits derived from smart implementations of IT initiatives are summarized as follows:
The Returns on Investment (ROI) for implementing IT in organizational processes in the range of 50-75%. Organizational processes have improved and tasks get completed with great efficiency, speed and accuracy.
Customer centric initiatives improved the customer satisfaction as measured in terms of Number of Positive responses by customers.
Improved performance levels measured interms of TAT through State of the art computing infrastructure and technology platform Integration for centralized Monitoring, Control and Reporting.
In the Post merger scenario, the very important activity was completed that is to seamlessly integrate the IT team at both the units of IDBI Ltd. The major IT initiatives were focused towards centralization and Application/system integration of both the units i.e. the erstwhile IDBI and IDBI Bank to consolidate and bring it to the common technology platform. Also there was a pressing urgency to set up the state- of-the-art IT Infrastructure to cater to the ambitious growth needs of the merged entity.
Some of the specific Initiatives are showcased below:
Customer Centric Innovative Value Added Service Delivery
Airline ticketing through ATM Network
IDBI Ltd. is the First Bank In The World To Launch Airline Ticketing Through ATM. We launched a first of its kind retail innovation in the world by incorporating the convenience of booking airline tickets on our ATMs. We have tied up with Indian Airlines to provide this service for booking domestic air tickets through our ATMs. IDBI customers can now use their Debit cum ATM card at the nearest IDBI ATM and key in the travel details to buy an airline ticket 24 x 7. The transaction slip generated by the ATM can be exchanged for a boarding pass at the airport upon showing proper identification proof. This utility allows customers to choose the best possible travel option at the best prices.
Internet Banking Enabled Multi-Functional KIOSK
The bank has enabled Internet Banking on Multi-functional Kiosk, which will fulfill the banking, needs of our customer base spread including remote locations through out the country. Customer can access their account summary, clearing details and statement details through their Debit / ATM card, which can be viewed or printed. All services available to Internet Banking customers are available through Kiosk. Non-customers can view the products offered by the Bank and also request for additional information on various products. Website Integration of Both SBUs
IDBI website is the "Single Window" facility for accessing various services offered by the bank ranging from Project finance to Retail banking. Customers can access the Corporate as well as Retail I-Net banking facility through the corporate website. Customers can also access their World Currency & Cash CARD Accounts through Website.
Post merger the Corporate web site was revamped totally by merging the two websites i.e. of IDBI Ltd & erstwhile IDBI Bank into a single website representing truly the IDBI Ltd as a homogeneous entity and accommodated the entire products & services portfolio from both the entities.
Website provides other utilities like EMI calculators, Real time Stock market updates, latest news updates to make the customers feel comfortable.
Corporate Internet Banking
We have migrated our Corporate Internet Banking to Finacle eCorporate, a more robust & functionality rich java based platform. Finacle eCorporate offers a host of additional features and functionalities to our clients, some of which are highlighted below.
1. Multi level workflow rules for financial transactions based on corporate specific needs.
2. Corporate role mapping, where the hierarchy of the corporate users can be mapped and financial transactions can be based on the organizational matrix.
3. Creation of Division wise / Zone wise / Region wise account classification, giving clients the flexibility to decide who views which account within the company.
4. Maker checker facility for online tax payments.
5. Corporate level administrator, who can do user maintenance related activities at the corporate end.
6. Transaction copy feature to save time while entering similar transactions.
7. Multi record entry/approval/ rejection of transactions.
National Electronic Funds Transfer (NEFT)
IDBI has setup a structure to initiate electronic communication with the IDRBT and the other banks. The structure of this system is more tuned towards the decentralized scenario keeping in view the non-networked PSU banks.
We have leveraged the existing setup of fully networked branches and devised an end to end solution which blends seamlessly with our core banking system viz Finacle. This system requires bare minimum data capture on part of branches. The central processing unit can then, at per stipulated times, generate data uploads to-n-fro the NEFT system. This way, outward debit and inward credit transactions through NEFT has become almost an extension of our core banking system. The system is built using the J2EE Architecture and can be ported / scaled up on any other platform should the need be.
Insta Online Account Facility
Insta Online Account is yet another customer friendly initiative from IDBI Bank. It is a web-based account opening facility, which is accessible to the NRI clients through our site. Insta Online Account helps convert a casual NRI browsing our site into our esteemed client - on real-time basis. The facility offers convenience of opening account from anywhere, at anytime to the NRI Customers and it is a Zero cost of high quality customer acquisition with no direct sales effort / cost.
Setting up The Srate-of-The-Aat IT Infrastructure
Setup of Data Center and Disaster Recovery Center
With a view to ensure better customer service and in order to cater to the future computing requirements of the growing organization, we built a new Data Center (DC) at Industrial Development Bank of India Ltd., IDBI
It may be added, this is a LEVEL-3 Data Center with state-of-the-art systems and solutions to provide very high uptimes with no single point of failure. The development of a Disaster Recovery Center (DRC) is also completed at Chennai to take care of Business continuity in case of disaster. Both the centers have state-of-the-art systems and solutions to provide for very high uptimes with no single point of failures. Unique feature about this DRC is that it is a 100% replica of DC with online DRC backup system.
Branch Automation
IDBI Branch network automation is one of the important technology driven initiative that has been kicked off this year. The first phase will automate around 100 branches across country leveraging WAN/LAN/Leased line based network connectivity with the high quality IT softwares, hardwares and network equipments.
Technology Platform Integration
We have successfully integrated following DFI products into the organizational Technology platform Finacle to provide a common technology platform for centralized Monitoring, Control and Reporting.
Suvidha Accounts Centralization
IDBI Ltd has a term deposit product called SUVIDHA offered as Fixed Deposit from DFI. These accounts were managed in decentralized branch level system and there was no centralized set up for monitoring, parameterization and MIS generation at the entire bank level. This centralization initiative aimed at consolidating Bank's Bank's entire customer accounts into single & centralized system and provide a common technology platform for generating MIS centrally.
NCAS (New Centralized Accounting System) Migration into Finacle
NCAS (New Centralized Accounting System) is one of the subsystems used by DFI unit at IDBI Ltd for managing all their GL level entries. All Asset Liability Management MIS are managed by this system. This particular initiative aimed at migrating the existing
NCAS system into common technology platform i.e. Finacle for providing online browser based centralized GL system for entire bank and facilitating online centralized MIS for decision support.
Corporate Finance System Migration to Finacle
IDBI has decided to move from Informix based disparate systems at various locations to an Oracle based centralized and on-line system of Finacle Core Banking Solution, with a view to move to a single centralized database for the entire bank and single unified GL for better MIS and supervision. The requisite system was developed in-house, with the help of external expertise, which will seamlessly integrate with our Core Banking solution without any manual intervention.
Common Exposure Reporting System
The initiative aimed at providing the centralized, online and consolidated MIS Generation system for the entire bank's exposure reporting. The system integrates the centralized core-banking system from commercial banking unit and the distributed branch level systems from DFI unit seamlessly to provide common platform for compliance reporting and managing entire bank's exposures effectively. Functions of IDBI are as follow:
Functions of idbi bank
The responsibility of co-cordinating the working of institutionsengaged in financing, promoting and developing industries was seen asmajor aspect of the bank and it was vested with all the duties statedabove.Suitable plan, procedure, mechanism was adopted to achieve the targets.Undertakes promotional activitiesEntrepreneurship development programmers can be seen in this bankConsultancy services for small and medium enterprises are provided.Up gradation of technology is given importance and the technology is well used.Programmers for economic up liftmen of the underprivileged is taken asthe main aspect and all the necessary steps to achieve its aim weresuccessfully implemented.
Industrial development has been made faster due to the moves of theIDBI .It finances all the industries that are under its cover allextends its support to all the industrial concerns. The size ofoperations performed by IDBI were spectacular and the bank bought up arevolution in the industrial field.
Main functions of IDBI
IDBI is vested with the responsibility of co-ordinating the working of institutions engaged in financing, promoting and developing industries. It has evolved an appropriate mechanism for this purpose. IDBI also undertakes/supports wide-ranging promotional activities including entrepreneurship development programmes for new entrepreneurs, provision of consultancy services for small and medium enterprises, upgradation of technology and programmes for economic upliftment of the underprivileged.
IDBI's role as a catalyst
IDBI's role as a catalyst to industrial development encompasses a wide spectrum of activities. IDBI can finance all types of industrial concerns covered under the provisions of the IDBI Act. With over three decades of service to the Indian industry, IDBI has grown substantially in terms of size of operations and portfolio.
Developmental Activities of IDBI
Promotional activities
In fulfilment of its developmental role, the Bank continues to perform a wide range of promotional activities relating to developmental programmes for new entrepreneurs, consultancy services for small and medium enterprises and programmes designed for accredited voluntary agencies for the economic upliftment of the underprivileged. These include entrepreneurship development, self-employment and wage employment in the industrial sector for the weaker sections of society through voluntary agencies, support to Science and Technology Entrepreneurs' Parks, Energy Conservation, Common Quality Testing Centres for small industries.
Technical Consultancy Organisations
With a view to making available at a reasonable cost,
consultancy and advisory services to entrepreneurs, particularly to new and small entrepreneurs, IDBI, in collaboration with other All-India Financial Institutions, has set up a network of Technical Consultancy Organisations (TCOs) covering the entire country. TCOs offer diversified services to small and medium enterprises in the selection, formulation and appraisal of projects, their implementation and review.
Entrepreneurship Development Institute
Realising that entrepreneurship development is the key to industrial development, IDBI played a prime role in setting up of the Entrepreneurship Development Institute of India for fostering entrepreneurship in the country. It has also established similar institutes in Bihar, Orissa, Madhya Pradesh and Uttar Pradesh. IDBI also extends financial support to various organisations in conducting studies or surveys of relevance
Deconstructing Delhi Land and Finance: DLF
With the DLF IPL craze reaching a crescendo, the surfeit of cricket scores and statistics drove me to delve deeper into the acronym for the phenomenon. And I’m not talking about IPL, but DLF. Delhi Land and Finance or DLF is arguably India’s leading real estate Development Company, with revenues of about $35 Billion, and in 2007 a market capitalization greater than $30 Billion. K.P.Singh, the head of the group has really transformed fragmented holdings of agricultural land into a modern metropolis. He is now one of the world’s wealthiest men (8th in the Forbes list). The transformation of vast acres of undeveloped land into one of India’s most modern places, Gurgaon, with sleek office towers, shopping malls, multiplexes, upscale homes and condominiums, has been an extraordinary feat. The question is how was this feat possible in India’s Paralytic political climate? What came as an even bigger
surprise was that DLF has been around from 1946, before partition (Whoaa!!). Most of the posh South Delhi area has been developed by DLF.K.P.Singh married DLF founder: Raghuvendra Singh’s daughter and inherited the company and thus began his association with DLF and his tryst with destiny. His entry into the family business coincided with India’s changing land policies. In 1957 the Delhi Development Act (DDA) was passed which made the land development a concern of the state. This would have made DLF and similar operators crestfallen, and situation became even grim with the socialist shift in 1961 with a total elimination of private sector in urban development. This was also the time when a plethora of fly-by-night developers started operating under the state patronage. During the sixties, DLF totally went in the background.During Prime minister Rajiv Gandhi’s (wish he could have still been alive..) regime things started to look up. He saw the potential to business, when the state got out of the business of being in business. In Mr. Singh’s words “You know these three and a half thousand acres on which DLF sits? The government did not just hand it to me and say :”Go Build””.The process of acquiring land had been a slow, painful and laborious activity. Mr. Singh negotiated with 700 familes each having 4 to 5 acres. Dealing with such a heterogeneous society was no mean task. Pacifying hostile family members, dealing with various stake-holders , some even living miles away from the land was a torrid time. According to him, assemblage of land remains the biggest problem in developing it. Unlike in other countries (read China), a bull-dozer couldn’t have been run over the occupants. Even if one of them went to court, the litigation that would have followed would have kept Mr. Singh busy for all his life.The modus operandi was pretty simple. Take a loan from one farmer, and then promptly use it to buy additional land. The farmers became the bankers and DLF became the bank for them. It was literally all about trust. The interest was delivered to the
farmers personally, something which cannot be imagined nowadays. The business model followed the contemporary U.S. Businesses that consolidate so-called fragmented industries. The farmers were brought together to accomplish with the large properties, what individual farmers could never have imagined. DLF still operates in much the same way. Brokers, sometimes represent unknown buyers and sellers, and often brokers don’t known one another’s identity (reminds me of a scene from “Khosla ka Ghosla”, where Navin Nischol mouths “Aap broker hain ya party?”). The identity crisis helps DLF to buy the land at less than its actual worth due to government distortions that constrict effective land supply: Urban Land ceiling and Regulation Act.DLF’s success story has definitely been a massive entrepreneurial feat. Though it is a part of India’s big developers which do profit unduly from the opacity of the land market and are complicit in perpetuating such opacity. The widespread suspicion of a nexus made of the mafia, the media, builder and politicians is also rife. But it is definitely compensating for a state that resists development for fear of treading on individual property rights and also doing its popularity no harm by sponsoring Mano-Ranjan ka Baap:IPL.
bfls
ABSTRACT
Location-based routing intends to send packets toward geographic direction of destination. For this, source nodes needs to known about destination position via a location service. Whereas the main concept of ad hoc networking is being independent from an infrastructure, applying a distribution algorithm has been a key design principle for a location service. Destruction of single nodes shouldn't lead to disruption of location service. Moreover, scalability is a desirable characteristic for large networks. So, we offered a distributed and fault tolerant location service method
(DFLS) for ad hoc networks in this paper. This method is a hierarchical and explicit Quorum-based location service method. In this method, location servers in each cluster have abstract information about other clusters. So, this method will have response time similar to flat methods. But, it is similar to hierarchical methods in terms of implementation complexity. Evaluation show that this method (DFLS), compared to the previous methods, decreased the response time to location queries and control overheads, also it increased fault tolerance and packet delivery rate.
DISADVANTAGES IN UNIVERSAL BANKING :- 1. To meet with the increasing demands of customers.
The establishment of new private sector banks and foreign banks have rapidly changed the competitive landscape in the Indian consumer banking industry and placed greater demands on banks to gear themselves up to meet the increasing needs of customers. For the dissatisfied current day bank customers, it is not only relevant to offer a wide menu of services but also provide these in an increasingly efficient manner in terms of cost, time and convenience.
E.g.: Today there is a lot of burden on staff members, they are given no or less number of bank holidays, the time limit is 8-8.
2. Merger with DFI {Biggest Challenge}.
Development Financial Institutions (DFIs) opting for conversion into Universal Banks by merger/reverse merger routes may also face certain difficult situations on account of Asset Liability Mismatches, burden of mounting NPAs and differences in regulatory prescriptions applicable to FIs and banks such as CRR and SLR requirements and priority sector lending. The asset profile of DFIs in India is predominately of long-term nature, which also includes a very high level of non-performing assets.
E.g.: NPAs of ICICI and IDBI were transferred to ICICI Bank and IDBI Bank respectively after their merger.
3. Statutory Liquid Ratio {SLR} and Cash Reserve Ratio {CRR} requirements of DFI.
In case DFIs are converted into banks they would also be subject to the reserve requirement like banks. CRR and SLR burden that wasn't there for DFI will be applied after its merger with any bank. This would mean that all liabilities issued by the DFIs in the past would also be subject to reserve requirements and since the assets structure of DFIs are largely of long term nature it would be very difficult for them to maintain the required level of SLR/CRR.
4. High cost of funds for DFI.
Cost of deposits is high as the only source of funds is Fixed Deposits having higher Rate Of Interest. Costs of funds for Fixed Deposit are higher than CASA {Current account Savings account}. CASA has low cost, as the Rate Of Interest is low. Further, the cost at which DFIs have been raising resources in the past has generally remained high as compared to banks and maintenance of CRR/SLR of such liabilities, which may earn lower returns, would adversely affect the profitability of Universal Banks. Compliance of priority sector lending norms, which earn lower returns, may also create difficult situations for such bank. Risk Management is one of the major challenges, where in the financial activity carries with it various risks, which would need to be identified,
measured, monitored and controlled by Universal Banks. The nature of risks and mitigating techniques for different financial product/services will be different and therefore, Universal Banks will be required to develop comprehensive system of each product/service and each kind of risk.
5. Improving risk management systems
With the increasing degree of deregulation and exposure of banks to various types of risks, efficient risk management systems have become essential. For enhancing the risk management system in banks, Reserve Bank has issued guidelines on asset liability management and risk management systems in banks in 1999 and Guidelines Notes on Credit Risk Management and Market Risk Management in October 2002 and the Guidance Note on Operational risk management in 2005.
E.g.: Today most banks have stopped personal loans because there is no guarantee, no loans are granted for travel and tourism, i.e. holiday loans too are stopped.
1. Supervisory and regulatory infrastructure
Another aspect is related to building up of supervisory infrastructure. The regulatory framework would need to be strengthened so as to cover all aspects of Universal Banking either under control of one regulator or a co-coordinating mechanism would have to be developed among different regulators like the Reserve Bank of India, SEBI, Insurance Regulatory, Authority etc. The regulators will have to frame sound mechanism to protect the interest of all concerned including the customer, the Universal Banking Institution and the financial system of the country.
1. Supervisory of financial conglomerates
In view of increased focus on empowering supervisors to undertake consolidated supervision of bank groups and since the Core Principle for Banking Supervisory issued by the BASEL committee on Banking Supervision have underscored consolidated supervision as an independent principle, the Reserve Bank of India had introduced, as an initial step, consolidated accounting and other quantitative methods to facilitate consolidated supervision. The components of consolidated supervision include, consolidated financial statements intended for public disclosure, consolidated prudential reports intended or supervisory assessment of risk and application of certain prudential regulations on group basis. In due course, consolidated supervision as introduced above would evolve to cover.
1. Technology improvement and compensation and incentive systems for employees
It is likely that Universal Banks of roughly the same size and providing roughly the same range of services may have very different cost levels per unit of output on account of efficiency differences in the use of labour and capital, effectiveness in the sourcing and
application of available technology, and perhaps effectiveness in the acquisition of productive inputs, organization designs, compensation and incentive system-and just plain better management.
1. Conflict of interest between commercial and investment banking
Larger the banks, the greater will be the effects of the failure on the system. Also there is the fear that such institutions, by virtue of their sheer size would gain monopoly power in the market, which can have undesirable consequences for economic efficiency. Further combining commercial and investment banking can give rise to conflict of interest.
10. Sharpening skills
The far-reaching changes in the banking and financial sector entail a fundamental shift in the set of skills required in banking. To meet increased competition and manage risk, the demand for specialized banking functions, using IT, as a competitive tool has to go up. Special skills in retail banking, treasury, risk management, foreign exchange, development banking, etc, will need to be carefully nurtured and built. Thus, the twin pillars of the banking sector i.e. human resource and IT will have to be strengthened. Thus the need of the day is a combination of improved technology and quality human resources.
11. Competition
Monopolistic competition among universal banks will decrease their profit margin.
12. Government interferences
Interferences by government in public sector banks through RBI are hampering progress of universal banks.
13. Present economic recession
Recession is affecting universal banks in a big way as their investment in infrastructure as well as the establishment expenses is much higher as compared to public sector banks.
IDBI bank home loan india
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By rudejohn
IDBI looking to expand it's retail credit foray
Even as the amalgamation of Industrial Development Bank of India Ltd (IDBI) and United Western Bank Ltd (UWB) gets close to completion, IDBI has chalked out an aggressive retail strategy with its partner in major loans like: home loan, education loan, mutual funds and credit cards.
IDBI took over the weak, old private sector bank, headquartered in western Maharashtra, in October 2006. UWB is the second bank that has been taken over by IDBI, a development financial institution that became a bank by merging with IDBI Bank, its own listed subsidiary.Now IDBI wants to transform itself from a wholesale bank to a financial intermediary that seeks to service the masses. Currently, corporate loans account for 77% of IDBI's Rs62,353 crore advance portfolio. IDBI wants to go the whole nine yards in the retail segment over the next three-five years. The lender plans to target small- and medium-sized enterprises (SME) and agricultural businesses.
IDBI home loan news.... Festive cheer: Some banks to cut home, augo rates - Business Standard
Business Standard Festive cheer: Some banks to cut home, augo rates Business Standard Another state-run lender, Bank of Baroda, is also planning to give “better rates” on home and auto loan products. According to an IDBI Bank official, ... and more » - 19 hours ago
Short term plans good for risk averse investors - Myiris.com
Myiris.com Short term plans good for risk averse investors Myiris.com Home loan rates would typically follow the movement in the deposit rates,unless the housing loan segment sees a slowdown wherein higher resources cost may ... and more » - 3 hours ago
Fixed rate home loans are history - mydigitalfc.com
Fixed rate home loans are history mydigitalfc.com Out of the total home loan providers including all banks and housing finance companies, the four largest players — HDFC, SBI, ICICI Bank and LIC Housing ... and more » - 9 days ago
Garware Polyester to issue pref shares to IDBI
Garware Polyester Ltd (GPL) plans to issue cumulative redeemable preference shares aggregating Rs 49.54 crore to Industrial Development Bank of India Ltd(IDBI).
The company is also issuing 10,19,022 equity shares of Rs 10 each at a premium of Rs 48.88 per equity share aggregating to Rs 6 crore, a company statement said here today.The company has received shareholders approval at an extra-ordinary general body meeting (EGM) held here.This is a part of the financial re-structuring undertaken by the company. Its balance sheet ratios have substantially improved, thereby strengthening the financial health of the company, it said.
IDBI reduces fixed home loan rates
IDBI Ltd cut the interest rates on fixed home loans by about 100 basis points with effect from September 1. However, the floating interest rate continues to remain unchanged. The bank has also increased rates on fixed deposits for some maturities.
For fixed loans the revised rate for loans up to three years is 12.5 per cent (13.5-14 per cent) and for loans up to five years it is 12.75 per cent (13.75-14.25 per cent). The floating rate remains unchanged at 11.25 per cent, said a press release from the bank.IDBI also raised deposit rates on fixed deposits up to Rs 15 lakh for a period of nine months to one year to 7.75 per cent (7.25 per cent); from one year to one year six months - 8.5 per cent (8 per cent); one year six months to two years - 8.5 per cent (8 per cent); two years to three years - 8.5 per cent (8 per cent); three years to five years - 8.75 per cent (8.25 per cent); five years to less than 10 years - 8.75 per cent (8.25 per cent) and for 10 years 8.75 per cent (8.25 per cent).
IDBI Bank home loan folio swells to Rs 1040 cr
IDBI Bank's home loan portfolio has grown by 360 per cent to Rs 1040 crore by mid-March in the current fiscal, according to its Managing Director and Chief Executive Gunit Chadha.
"The home loan portfolio, a fastest growing retail segment at the beginning of the current fiscal was at Rs 227 crore and has touched Rs 1040 crore by mid March", he told reporters at the launch of new ATM-based information service here today.The retail asset base was expected to touch Rs 1500 crore and contribute 30 per cent to the total bank business by end of this fiscal, he added.
Don't get burdened from home loan
Are you burdened by the increased rate of EMIs on housing loans? Are you finding it difficult to manage the increased EMIs? Will it be right to buy a house now?
If you want to buy a second house, is it the right time to go for one?I HAVE TWO YEARS OLD HOME LOAN FROM IDBI BANK OF 20 YEARS .. AS THE PRICES OF FLAT HAVE NOW DOUBLED CAN I SELL OFF & WHAT IS THE PROCEDURE???Harsh Roongta CEO Apnaloan.com answers, Off course you can sell of the flat. You will need to clear off the loan before you do so. Read the detailed process for selling a property with an existing loan.
Advantages of IDBI Home Loans
>Flexibility of choosing between Floating or Fixed interest rate
->EMI on monthly reducing balance
->Personalised doorstep service
->Simple documentation
->Legal and technical assistance
->Balance transfer facility
->Reassessment and adjustment of applicant's loan eligibility in case of change of income and residence status
Main functions of IDBI
IDBI is vested with the responsibility of co-ordinating the working of institutions engaged in financing, promoting and developing industries. It has evolved an appropriate mechanism for this purpose. IDBI also undertakes/supports wide-ranging promotional activities including entrepreneurship development programmes for new entrepreneurs, provision of consultancy services for small and medium enterprises, upgradation of technology and programmes for economic upliftment of the underprivileged.
IDBI's role as a catalyst
IDBI's role as a catalyst to industrial development encompasses a wide spectrum of activities. IDBI can finance all types of industrial concerns covered under the provisions of the IDBI Act. With over three decades of service to the Indian industry, IDBI has grown substantially in terms of size of operations and portfolio.
Developmental Activities of IDBI
Promotional activities
In fulfilment of its developmental role, the Bank continues to perform a wide range of promotional activities relating to developmental programmes for new entrepreneurs, consultancy services for small and medium enterprises and programmes designed for accredited voluntary agencies for the economic upliftment of the underprivileged. These include entrepreneurship development, self-employment and wage employment in the industrial sector for the weaker sections of society through voluntary agencies, support to Science and Technology Entrepreneurs' Parks, Energy Conservation, Common Quality Testing Centres for small industries.
Technical Consultancy Organisations
With a view to making available at a reasonable cost, consultancy and advisory services to entrepreneurs, particularly to new and small entrepreneurs, IDBI, in collaboration with other All-India Financial Institutions, has set up a network of Technical Consultancy Organisations (TCOs) covering the entire country. TCOs offer diversified services to small and medium enterprises in the selection, formulation and appraisal of projects, their implementation and review.
Entrepreneurship Development Institute
Realising that entrepreneurship development is the key to industrial development, IDBI played a prime role in setting up of the Entrepreneurship Development Institute of India for fostering entrepreneurship in the country. It has also established similar institutes in Bihar, Orissa, Madhya Pradesh and Uttar Pradesh. IDBI also extends financial support to various organisations in conducting studies or surveys of relevance to ind Citizens' Charter of IDBI Bank for Investors:Responsive and Responsible Preamble IDBI Bank, in its continued and committed endeavour to provide prompt and quality service to its valued clients, has introduced this Citizens' Charter. The Citizens' Charter is intended to provide information in respect of IDBI Bank's various activities relating to customer service, for the benefit of its customers. It is not a legal document creating rights and obligations. Introduction IDBI Bank provides financial assistance to industrial concerns by way of a variety of products and services which include project finance, equipment finance, asset credit, equipment lease, technology upgradation fund scheme, refinance for medium scale industries and bills finance. It provides project-related finance for the establishment of the new industrial projects as well as for expansion, diversification and modernisation of
existing industrial enterprises. In response to the changing financial needs of industries, IDBI Bank has also designed other products to meet the short term funding, core working capital and other short term requirements of industrial units. It also offers fee-based services in the areas of merchant banking, corporate advisory services, forex services, etc. IDBI Bank has also set up subsidiaries and associates to offer banking products & services, capital market and trusteeship services, as also registrar and transfer services structured to meet customised client requirements.
For meeting the fund requirements thereof as well as towards its various other business operations, IDBI Bank raises resources directly from the market (at market - related interest rates) from retail as well as institutional investors - both within India and abroad, through a variety of investor-friendly instruments. IDBI Bank's resource raising efforts have brought it closer to all sections of society. Resource Raising IDBI Bank has been mobilising resources through a combination of debt and equity. It made a public issue of equity shares in 1995 in terms of the Offer Document approved by SEBI. IDBI Bank's shares are listed on National Stock Exchange and Mumbai Stock Exchange. The shares can be held in dematerialised (demat) form in National Securities Depository Ltd. (NSDL) or Central Depository Services (India) Ltd. (CDSL). NSDL/CDSL are depositories where the securities of an investor are held in electronic form through the medium of Depository Participants (DPs). This facility obviates the difficulties of loss, signing of transfer deeds, delay in transfer, etc. and offers scope for paperless trading.
IDBI Bank also raises funds from the public through public issues of unsecured bonds. The objective of various bond issues is to part finance funding requirement of IDBI Bank and at the same time provide appropriate investment opportunities for the retail investors. The three Registrars appointed by IDBI Bank for various public issues have also been retained for servicing the public issues of IDBI Bank. The addresses of these Registrars are:
Investor Relations IDBI Bank has designed a customer-friendly website (www.idbi.com) which contains complete information about the organisation, its products and services, investment opportunities and various deposit schemes. It also has a
contact system for the convenience of posting investors' queries which are responded to on a real-time basis.
In order to create the requisite awareness among investors, a booklet containing guidelines to its shareholders is brought out by IDBI Bank and made available to investors on a complimentary basis.
IDBI Bank has an exclusive team of officers to attend to post-issue complaints / suggestions of equity holders and bond holders.
Besides, IDBI Bank has set up an Customer Relations Management Cell at its Head Office to attend to grievances of investors. The Cell is managed by experienced and trained personnel from IDBI Bank and assisted by representatives of the three Registrars, namely, Investor Services of India Ltd., Karvy Computershare Private Ltd. and Datamatics Financial Software & Services Ltd. Orientation of Staff for Investor Service IDBI Bank makes significant efforts to motivate its staff and inculcate in them the spirit of prompt and diligent servicing, aimed at securing investor satisfaction. Over the years, IDBI Bank has put in every effort to bring about excellence in the service provided and to meet the increasing / changing training needs of the employees, in the evolving business scenario. Grievance Redressal Procedure The following avenues are open to the investors for redressal of their grievances:
Oral representations to IDBI Bank officials at HO/Branch Office convenient to the investor;
Written representation to the Officer-in-charge of the Branch Office nearest to his/her station or to Head Office.
Complaints/Suggestion boxes are also placed at the main entrance/gate of each office for the convenience of investors.
Written complaint can be sent to SEBI/RBI/DOCA for redressal. Complaint proforma has been made available on IDBI Bank website (copy
appended for ready reference). Investors' feedback form is attached which may be filled and dropped in the
suggestion box at the IDBI Bank, Head Office / Branch or mailed to the General Manager, DOMESTIC RESOURCES DEPT.(Customer Relations Management Cell), IDBI, IDBI Tower, 7TH FLOOR, Cuffe Parade, Mumbai 400 005. TEL. NO.(022) - 2216 4385 / 2215 1051; FAX NO. (022) – 2218 0930; EMAIL ID: [email protected].
Time Frame for Various Investor Services It is the endeavour of IDBI Bank to provide prompt and efficient service to its investing public. An indicative time frame for attending to various investor grievances is given below.
Job Description Time-frame
Allotment of Securities/bonds Within 30 days of closure of the public issue
Refund of application money in case of non-allotment
Within 30 days of closure of the public issue and with interest for the period of delay beyond 30 days, if any.
Payment of interest/dividend On due dates (Investors are requested to refer to the
instrument for ascertaining the due date)
Redemption payment of securities
On maturity dates as pre-determined and notified in the Offer Document.
In case of early redemption of securities
Within 30 days after surrender of the instrument duly discharged by the holder(s)
Duplicate issue of BondsWithin 6 weeks of receipt of request along with all relevant documents such as indemnity bond/surety and undertaking.
Postal loss of certificate(s)Only after necessary notification regarding the loss/non-receipt of the original share certificate is given in the newspapers.
Duplicate issue of interest warrants/dividend warrants
Within 20 days after the expiry of the currency of the warrant and on receipt of relevant documents such as indemnity bond/surety, subject to receipt of reconciliation from Bankers.
Revalidation of interest warrants
Immediately over the counter if the request has come within six months from the date of issue of the warrant; otherwise duplicate warrant will be issued within 20 days.
Revalidation of dividend warrants
On expiry of the validity period, subject to receipt of reconciliation from Banks.
Change of address Immediately on receipt of information
Change in Bank Mandate Immediately on receipt of information
Request for transmission of securities in case of death of single holder
Transmission will be effected within 30 days after receipt of securities alongwith all relevant documents such as attested copy of the will, attested copy of the death certificate, attested copy of court order/succession certificate /Letter of administration for effecting the transmission.
Request for transmission of securities in case of death of one of the holders in a joint holding
Within 30 days of the receipt of original securities and an attested copy of the death certificate.
Request for transfer of share certificate
Within 30 days of lodgment of securities.
Request for consolidation of share certificates
Within 30 days of lodgment of securities.
Request for change in name consequent upon change in marital status
Within 30 days of receipt of original certificates along with attested copy of marriage certificate or decree of divorce issued by competent authority, old specimen signature and new specimen signature duly attested by the banker.
Nodal Officer for Investor Grievances Mrs. Kiran S. Balwani Head - Customer Care Center IDBI Bank LtdCentral Road, MIDC Plot No. 82/83,Road No. 7, Street No. 15, MIDC, Andheri (E), Mumbai - 400 093.Tel No. (022) 66977800 extn 7510 Email id: [email protected] Code of Business Principles Business Partners IDBI Bank is committed to establishing mutually beneficial relations with its customers and business partners. It also expects its partners to adhere to business principles consistent with its own, in all its business dealings. Business Integrity IDBI Bank shall not give or receive, whether directly or indirectly, bribes or other improper advantages for business or financial gain. No employee may offer, give or receive any gift or payment, which is, or may be construed as being, a bribe. Any demand for, or offer of, a bribe must be rejected immediately and reported to management. Community Involvement IDBI Bank strives to be a trusted corporate citizen and, as an integral part of society, to fulfil its responsibilities to the societies and communities in which it operates.
All the services and commitments are honoured without the citizen having to pay any bribe
ustrial development. Question
i want to prepay my home loan taken from HDFC .what are the advantages and disadvantages ?
Answer
If you have surplus funds and you can also pre-pay a part of the home loan as it will reduce the monthly EMI burden. Quite a few banks do not charge pre-payment penalty if the loan is prepaid partially. The definition of what constitutes partial pre-payment varies from bank to bank. This will ensure savings in pre-payment penalty and at the same time help you to save on high interest costs on a substantial portion of the loan. However, before you decide to pre-pay a home loan, it is in your interest to first clear off all unsecured dues like credit card dues and personal loans. Also, make sure that you have some money set aside to meet emergency expenses. Tax calculation can change the view on pre-payment. You can also check the Should I PrePay my loan calculator.
cici Bank Home Loan
Features: The bank offers home loans to Indians and NRIs for purchase of new and resale properties as well as plots. The loan tenure is available up to 25 years. A Free Personal Accident Insurance is also offered. The loan is available at fixed and floating interest rates. Loan transfer option is also available.< << <<< INTRODUCTION >>> >> >
ICICI Bank is the largest private sector bank in India. No doubt about it. It was the confluence of one of
the biggest financial corporation and a once great bank known for its service and promptness. Is it still so? No way. I don’t think so. At least, in my opinion. If you asked me an opinion about ICICI Bank in 1998 or earlier, I would have given it a 5 star rating. No doubt about it. Will I give it the same, as I have been a customer for 5+ years? No. Not a chance. In the due course of this review, I shall analyze the pros and cons of this bank and compare it against other banks that I have known. What happened to a once an excellent bank these days? We shall see.
< << <<< HISTORY >>> >> >
To understand about this big bank, we need to understand how it became so big a force to reckon with. ICICI (Industrial Credit Investment Corporation of India) promoted the ICICI bank in 1994 with its stake reducing to 46% after the IPO in 1998. ICICI is a well-known name in India along with IDBI and was formed in 1955 at the initiative of the World Bank, Indian Government and Indian Industries. Both of these institutions have an exceptional brand-image and one of the highest possible ratings from CRISIL and other rating organizations. ICICI can be considered an oligopolistic corporation along with IDBI (please M2M me, if you want to discuss this!). ICIC listed in NYSE in 2000. In 2001 it underwent a tight marriage with Bank of Madura in a stock-only amalgamation. This was a tough marriage and I guess they are still suffering from this hiccup, which kind of substantiates their mediocre performance today, in my perspective. This and the merger with the ICICI Corporation have caused some management strain and some tough merger time. I could only wish they come over this and serve the customers in a better manner.
< << <<< MY ASSOCIATION >>> >> >
I first became an ICICI bank customer in 1998 when I became an NRI customer. Things were rather mundane and normal. Compared to the other big nationalized banks and Citibank, I felt ICICI Bank was the best and got some great feedback from friends and relatives alike. My initial relationship was excellent. This continued till 2001. All the facilities were of the highest grade. Their email follow-ups, request resolution, customer service and everything they served were of the highest grade. They also baffled me by calling me overseas with regard to certain transactions and request. So, I would have given a 5 star rating in 1998.
What changed since then? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
This bank grew leaps and bounds ever since the IPO in 1998 as well as the NYSE listing in 2000. The numbers of customers were huge and the merger with Bank Of Madura added to the woes of the service. As there is a saying “Quality is inversely proportional to Quantity”, ICICI bank yielded to this very true philosophy. I am attaching
an email I sent to their NRI center regarding a change of address for my NRI account that was taking more than 2 months as it involved a written mail, which they lost twice and didn’t do it right first time. A password reset for the infinity (infinitely, infinitesimally, infuriating, inferior information system) that took considerable amount of time and two couriers from them. They sent one to the wrong address, and the other one, to the right address with the wrong password. The Industrial Development Bank of India Limited (IDBI) (BSE: 500116) is one of India's leading public sector banks and 4th largest Bank in overall ratings. RBI categorised IDBI as an "other public sector bank". It was established in 1964 by an Act of Parliament to provide credit and other facilities for the development of the fledgling Indian industry.[1] It is currently 10th largest development bank in the world in terms of reach with 1228 ATMs, 725 branches and 486 centers.[2] Some of the institutions built by IDBI are the National Stock Exchange of India (NSE), the National Securities
Depository Services Ltd (NSDL), the Stock Holding Corporation of India (SHCIL), the Credit Analysis &
Research Ltd, the Export-Import Bank of India(Exim Bank), the Small Industries Development bank of
India(SIDBI), the Entrepreneurship Development Institute of India, and IDBI BANK, which today is owned by the Indian Government, though for a brief period it was a private scheduled bank.
Contents[hide]
1 Recent developments 2 Overview of development banking in India 3 Industrial Development Bank of India (IDBI) 4 Industrial Investment Bank of India Ltd. 5 Acquisition of United Western Bank 6 See also 7 References
8 External links
[edit] Recent developments
To meet emerging challenges and to keep up with reforms in financial sector, IDBI has taken steps to reshape its role from a development finance institution to a commercial institution. With the Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003, IDBI attained the status of a limited company viz. "Industrial Development Bank of India Limited" (IDBIL). Subsequently, the Reserve Bank of India (RBI) issued the requisite notification on 30 September 2004 incorporating IDBI as a 'scheduled bank' under the RBI Act, 1934. Consequently, IDBI, formally entered the portals of banking business as IDBIL from 1 October 2004.
The commercial banking arm, IDBI BANK, was merged into IDBI. In March 2008, IDBI Bank entered into a joint venture with Federal Bank and Fortis Insurance International to form IDBI Fortis Life Insurance, of which IDBI Bank owns 48 percent. The company ended the year with over 300 Cr in premiums as on 31 March 2009.
The concept of development banking rose only after Second World War, after the Great
Depression in 1930s. The demand for reconstruction funds for the affected nations compelled in setting up a worldwide institution for reconstruction. As a result the IBRD was set up in 1945 as a worldwide institution for development and reconstruction. This concept has been widened all over the world and resulted in setting up of large number of banks around the world which coordinating the developmental activities of different nations with different objectives among the world. The Narashimam committee had recommended to give up its direct financing functions and to perform only the promotional and refinancing role. However, the S.H.Khan committee, appointed by the RBI, recommended its transformation into a universal bank.[3]
The course of development of financial institutions and markets during the post-Independence period was largely guided by the process of planned development pursued in India with emphasis on mobilisation of savings and channeling investment to meet Plan priorities. At the time of Independence in 1947, India had a fairly well-developed banking system. The adoption of bank dominated financial development strategy was aimed at meeting the sectoral credit needs, particularly of agriculture and industry. Towards this end, the Reserve Bank concentrated on regulating and developing mechanisms for institution building. The commercial banking network was expanded to cater to the requirements of general banking and for meeting the short-term working capital requirements of industry and agriculture. Specialised development financial institutions (DFIs) such as the IDBI, NABARD, NHB and SIDBI, etc., with majority ownership of the Reserve Bank were set up to meet the long-term financing requirements of industry and agriculture. To facilitate the growth of these institutions, a mechanism to provide concessional finance to these institutions was also put in place by the Reserve Bank.
The first development bank In India incorporated immediately after independence in 1948 under the Industrial Finance Corporation Act as a statutory corporation to pioneer institutional credit to medium and large-scale. Then after in regular intervals the government started new and different development financial institutions to attain the different objectives and helpful to five-year plans.
The early history of Indian banking and finance was marked by strong governmental regulation and control. The roots of the national system were in the State Bank of India Act of 1955, which nationalized the former Imperial Bank of India and its seven associate banks. In the early days, this national system operated alongside of a large private banking system. Banks were limited in their operational flexibility by the government’s desire to maintain employment in the banking system and were often drawn into troublesome loans in order to further the government’s social goals.
The financial institutions in India were set up under the strong control of both central and state Governments, and the Government utilized these institutions for the achievements in planning and development of the nation as a whole. The all India financial institutions can be classified under four heads according to their economic importance that are:
All-India Development Banks Specialized Financial Institutions Investment Institutions State-level institutions Other institutions
[edit] Industrial Development Bank of India (IDBI)
The Industrial Development Bank of India (IDBI) was established on 1 July 1964 under an Act of Parliament as a wholly owned subsidiary of the Reserve Bank of India. In 16 February 1976, the ownership of IDBI was transferred to the Government of India and it was made the principal financial institution for coordinating the activities of institutions engaged in financing, promoting and developing industry in the country. Although Government shareholding in the Bank came down below 100% following IDBI’s public issue in July 1995, the former continues to be the major shareholder (current shareholding: 52.3%). During the four decades of its existence, IDBI has been instrumental not only in establishing a well-developed, diversified and efficient industrial and institutional structure but also adding a qualitative dimension to the process of industrial development in the country. IDBI has played a pioneering role in fulfilling its mission of promoting industrial growth through financing of medium and long-term projects, in consonance with national plans and priorities. Over the years, IDBI has enlarged its basket of products and services, covering almost the entire spectrum of industrial activities, including manufacturing and services. IDBI provides financial assistance, both in rupee and foreign currencies, for green-field projects as also for expansion, modernisation and diversification purposes. In the wake of financial sector reforms unveiled by the government since 1992, IDBI evolved an array of fund and fee-based services with a view to providing an integrated solution to meet the entire demand of financial and corporate advisory requirements of its clients. IDBI also provides indirect financial assistance by way of refinancing of loans extended by State-level financial institutions and banks and by way of rediscounting of bills of exchange arising out of sale of indigenous machinery on deferred payment terms.
IDBI has played a pioneering role, particularly in the pre-reform era (1964–91),in catalyzing broad based industrial development in the country in keeping with its Government-ordained ‘development banking’ charter. In pursuance of this mandate, IDBI’s activities transcended the confines of pure long-term lending to industry and encompassed, among others, balanced industrial growth through development of backward areas, modernisation of specific industries, employment generation, entrepreneurship development along with support services for creating a deep and vibrant domestic capital market, including development of apposite institutional framework.
Narasimam committee [4] recommends that IDBI should give up its direct financing functions and concentrate only in promotional and refinancing role. But this recommendation was rejected by the government. Latter RBI constituted a committee under the chairmanship of S.H.Khan to examine the concept of development financing in the changed global challenges. This committee is the first to recommend the concept of universal banking.
The committee wanted to the development financial institution to diversify its activity. It recommended to harmonise the role of development financing and banking activities by getting away from the conventional distinction between commercial banking and developmental banking.
In September 2003, IDBI diversified its business domain further by acquiring the entire shareholding of Tata Finance Limited in Tata Home finance Ltd., signaling IDBI’s foray into the retail finance sector. The fully-owned housing finance subsidiary has since been renamed ‘IDBI Home finance Limited’. In view of the signal changes in the operating environment, following initiation of reforms since the early nineties, Government of India has decided to transform IDBI into a commercial bank without eschewing its secular development finance obligations. The migration to the new business model of commercial banking, with its gateway to low-cost current, savings bank deposits, would help overcome most of the limitations of the current business model of development finance while simultaneously enabling it to diversify its client/ asset base. Towards this end, the IDB (Transfer of Undertaking and Repeal) Act 2003 was passed by Parliament in December 2003. The Act provides for repeal of IDBI Act, corporatisation of IDBI (with majority Government holding; current share: 58.47%) and transformation into a commercial bank. The provisions of the Act have come into force from 2 July 2004 in terms of a Government Notification to this effect. The Notification facilitated formation, incorporation and registration of Industrial Development Bank of India Ltd. as a company under the Companies Act, 1956 and a deemed Banking Company under the Banking Regulation Act 1949 and helped in obtaining requisite regulatory and statutory clearances, including those from RBI. IDBI would commence banking business in accordance with the provisions of the new Act in addition to the business being transacted under IDBI Act, 1964 from 1 October 2004, the ‘Appointed Date’ notified by the Central Government. IDBI has firmed up the infrastructure, technology platform and reorientation of its human capital to achieve a smooth transition.
IDBI Bank, with which the parent IDBI was merged, was a vibrant new generation Bank. The Pvt Bank was the fastest growing banking company in India. The bank was pioneer in adapting to policy of first mover in tier 2 cities. The Bank also had the least NPA and the highest productivity per employee in the banking industry.
On 29 July 2004, the Board of Directors of IDBI and IDBI Bank accorded in principle approval to the merger of IDBI Bank with the Industrial Development Bank of India Ltd. to be formed incorporated under the Companies Act, 1956 pursuant to the IDB (Transfer of Undertaking and Repeal) Act, 2003 (53 of 2003), subject to the approval of shareholders and other regulatory and statutory approvals. A mutually gainful proposition with positive implications for all stakeholders and clients, the merger process is expected to be completed during the current financial year ending 31 March 2005.
The immediate fall out of the merger of IDBI and idbi bank was the exit of employees of idbi bank. The cultures in the two organizations have taken its toll. The IDBI BANK now is in a growing fold. With its retail banking arm expanding further after the merger of United western Bank.
IDBI would continue to provide the extant products and services as part of its development finance role even after its conversion into a banking company. In addition, the new entity would also provide an array of wholesale and retail banking products, designed to suit the specific needs cash flow requirements of corporates and individuals. In particular, IDBI would leverage the strong corporate relationships built up over the years to offer customised and total financial solutions for all corporate business needs, single-window appraisal for term loans and working capital finance, strategic advisory and “hand-holding” support at the implementation phase of projects, among others.
IDBI’s transformation into a commercial bank would provide a gateway to low-cost deposits like Current and Savings Bank Deposits. This would have a positive impact on the Bank’s overall cost of funds and facilitate lending at more competitive rates to its clients. The new entity would offer various retail products, leveraging upon its existing relationship with retail investors under its existing Suvidha Flexi-bond schemes. In the emerging scenario, the new IDBI hopes to realize its mission of positioning itself as a one stop super-shop and most preferred brand for providing total financial and banking solutions to corporates and individuals, capitalising on its intimate knowledge of the Indian industry and client requirements and large retail base on the liability side.
IDBI upholds the highest standards of corporate governance in its operations. The responsibility for maintaining these high standards of governance lies with its Board of Directors. Two Committees of the Board viz. the Executive Committee and the Audit Committee are adequately empowered to monitor implementation of good corporate governance practices and making necessary disclosures within the framework of legal provisions and banking conventions.
[edit] Industrial Investment Bank of India Ltd.
The industrial investment bank of India is one of oldest banks in India.[5] The Industrial Reconstruction Corporation of India Ltd., set up in 1971 for rehabilitation of sick industrial companies, was reconstituted as Industrial Reconstruction Bank of India in 1985 under the IRBI Act, 1984. With a view to converting the institution into a full-fledged development financial institution, IRBI was incorporated under the Companies Act, 1956, as Industrial Investment Bank of India Ltd. (IIBI) in March 1997. IIBI offers a wide range of products and services, including term loan assistance for project finance, short duration non-project asset-backed financing, working capital/ other short-term loans to companies, equity subscription, asset credit, equipment finance as also investments in capital market and money market instruments.
In view of certain structural and financial problems adversely impacting its long-term viability, IIBI submitted a financial restructuring proposal to the Government of India on 25 July 2003. IIBI has since received certain directives from the Government of India, which, inter alias, include restricting fresh lending to existing clients approved cases rated corporates, restrictions on fresh borrowings, an action plan to reduce the overhead expenditure, disposal of fixed assets and a time-bound plan for asset
recovery/reconstruction. The Government of India had also given its approval for the merger of IIBI with IDBI and the latter had already started the due diligence process.[6]
But on 17 December 2005 the IDBI rejected any such merger.[7]
[edit] Acquisition of United Western Bank
In 2006, IDBI Bank acquired United Western Bank in a rescue.[8] Annasaheb Chirmule, who worked for the cause of Swadeshi movement, founded Satara Swadeshi Commercial Bank in 1907, and some three decades later founded United Western Bank. The bank was incorporated in 1936, and commenced operations the next year, with its head office in Satara, in Maharashtra State. It became a Scheduled Bank in 1951. In 1956 it merged with Union Bank of Kolhapur, and in 1961 with Satara Swadeshi Commercial Bank.[9] At the time of the merger with IDBI, United Western had some 230 branches spread over 47 districts in 9 states, controlled by five Zonal Offices at Mumbai, Pune, Kolhapur, Jalgaon and Nagpur.
[edit] See also IDBI Fortis Life Insurance IDBI Intech Ltd.
[edit] References1. ̂ "List of Top 5 India's Public Sector Banks". Articlesbase.com.
http://www.expressindia.com/fe/daily/19980505/12555134.html. Retrieved 2010-07-26.4. ̂ Our Banking Bureau / Mumbai 26 October 2004 (2004-10-26). "IDBI aims at Rs 1
lakh cr assets by year-end". Business-standard.com. http://www.business-standard.com/india/news/idbi-aims-at-rs-1-lakh-cr-assets-by-year-end/191939/. Retrieved 2010-07-26.
5. ̂ Keith, Kelley. "Banks in India – Web Listings". Business.com. http://www.business.com/directory/financial_services/banking/banking_institutions/commercial_banks/
india/weblistings.asp. Retrieved 2010-07-26.6. ̂ "Mega Merger Of IDBI, IFCI And IIBI Under Consideration". Financialexpress.com. 2003-04-
http://www.idbicapital.com / IDBI Capital Market Services Website BITS Pilani Rajasthan Alumnus takes over as IDBI Chairman Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003 Finacle Success Story on IDBI Bank IDBI Fortis - Life Insurance Company
Advantages of Investing in Mutual Funds
Professional Money Management & Research
Mutual funds are managed by professional fund managers who regularly monitor market trends and economic trends for taking investment decisions. They also have dedicated research professionals working with them who make an in depth study of the investment option to take an informed decision.
Risk Diversification
Diversification reduces risk contained in a portfolio by spreading it. It is about not putting all your eggs in one basket. As mutual funds have huge corpuses to invest in, one can be part of a large and well-diversified portfolio with very little investment.
Convenience
With features like dematerialized account statements, easy subscription and redemption processes, availability of NAVs and performance details through journals, newspapers and updates and lot more; Mutual Funds are sure a convenient way of investing.
Liquidity
One of the greatest advantages of Mutual Fund investment is liquidity. Open-ended funds provide option to redeem on demand, which is extremely beneficial especially during rising or falling Markets.
Mutual funds have a pool of money that they have to invest. So they are often involved in buying and selling of large amounts of securities that will cost much lower than when you invest on your own
Tax Advantages
Investment in mutual funds also enjoys several tax advantages. Dividends from Mutual Funds are tax-free in the hands of the investor (This however depends upon changes in Finance Act). Also Capital Gain accrued from Mutual Fund investment for a period of over one year is treated as long term capital appreciation and is tax free.
Other Advantages
Indian Mutual fund industry also presents several other benefits to the investor like: transparency - as funds have to make full disclosure of investments on a periodic basis, flexibility in terms of needs based choices, very well regulated by SEBI with very strict compliance requirements to investor friendly norms.
ICICI bank provides wide variety of home loans. They provide variety of loans in order to meet people's need. Different people have different interest and needs. So, different people can choose different type of loan according to their requirement. ICICI bank NRI loans are famous. This bank provides many services to NRI's. ICICI bank NRI services are listed here.
Part-prepayment facility for zero fees. Door step service in India till disbursement. Free personal accident insurance to the extent of loan outstanding. Facility for Online application for India Home Loans. Online tracking of the status of your India Home loan application. Attractive interest rates on a monthly reducing basis. Option of choosing from fixed and floating interest rates.
These are the various benefits provided by this bank. ICICI bank NRI home loans are not easy to get. They have certain eligibility criteria to sanction NRI loans. According to his/her need, the applicant can purchase land, build new house and buy new home. Various eligibility criteria are age, residential status and income. The applicant should have a minimum age of 23 years. The maximum age limit allowed is 60 years for salaried applicant and 65 years for self employed applicant.
This maximum age limit is the maximum age allowed at the time of loan maturity. Residential status should be a minimum period of 1 year for salaried applicant and 3 year for self employed applicant. ICICI bank NRI interest rates are denoted by Floating
Reference Rate (FRR) and PLR. Recently FRR has changed from 13.25% to 12.75% and PLR has changed from15.25% to 14.75%.
6. Introduction Banking 6.1 Business of banking
Banking, in a traditional sense is the business of accepting deposits of money from the public for the
purpose of lending and investment. These deposits can have a distinct feature of being withdraw able
by cheques, which no other financial institution can offer. In addition to this banks also offer various
other financial services also which include:
•
Issuing Demand drafts and travellers cheques •
Collection of cheques, bills of exchange •
Safe deposit lockers •
Issuing letters of credit and letters of guarantee •
Sale and purchase of foreign exchange •
Custodial services •
Investment services •
The business of banking is highly regulated since banks deal with money offered to them by the public
and public and ensuring the safety of this public money is one of the prime responsibilities of the
bank. That is why banks are expected to be prudent in their lending and investment activities. The
major regulations and acts that govern the banking business are:
Banks lend money either for productive purposes to individuals, firms, corporate etc or for buying
house property, cars and other consumer durable and for investment purposes to individuals and
others. However, SCB banks do not finance any speculative activity. Lending is risk taking. The risk
should be covered by having prudent norms for lending.
8. History of Standard Chartered Bank
The Standard Chartered Group was formed in 1969 through a merger of two banks: The Standard
Bank of British South Africa founded in 1863, and the Chartered Bank of India, Australia and China,
founded in 1853. Both companies were keen to capitalize on the huge expansion of trade and to earn
the handsome profits to be made from financing the movement of goods from Europe to the East and
to Africa.
8.1 The chartered Bank Funded by James Wilson following the grant of a Royal Charter by Queen Victoria in 1853.
Chartered opened its first branches in Mumbai (Bombay), Calcutta and Shanghai in 1858, followed by
Hong Kong and Singapore in 1859. Traditional business was in cotton from Mumbai (Bombay),
indigo and tea from Calcutta, rice in Burma, sugar from Java, tobacco from Sumatra, hemp in Manila
and silk from Yokohama. Played a major role in the development of trade with the East which
followed the opening of the Suez Canal in 1869, and the extension of the telegraph to China in 1871.
In 1957 Chartered Bank bought the Eastern Bank together with the Ionian Bank’s Cyprus Branches. This established a presence in the Gulf. 8.2 The Standard Bank
Founded in the Cape Province of South Africa in 1862 by John Paterson. Commenced business in Port
Elizabeth, South Africa, in January 1863. Was prominent in financing the development of the
diamond fields of Kimberley from 1867 and later extended its network further north to the new town
of Johannesburg when gold was discovered there in 1885. Expanded in Southern, Central and Eastern
Africa and by 1953 had 600 offices.
In 1965, it merged with the Bank of West Africa expanding its operations into Cameroon, Gambia,
Ghana, Nigeria and Sierra Leone. In 1969, the decision was made by Chartered and by Standard to
undergo a friendly merger. All was going well until 1986, when Lloyds Bank of the United Kingdom
made a hostile takeover bid for the Group. When the bid was defeated,
Standard Chartered entered a period of change. Provisions had to be made against third world debt
exposure and loans to corporations and entrepreneurs who could not meet their commitments.
Standard Chartered began a series of divestments notably in the United States and South Africa, and
also entered into a number of asset sales. From the early 90’s, Standard Chartered has focused on
developing its strong franchises in Asia, the Middle East and Africa using its operations in the United
Kingdom and North America to provide customers with a bridge between these markets. Secondly, it
would focus on consumer, corporate and institutional banking, and on the provision of treasury
services – areas in which the Group had particular strength and expertise. In the new millennium it
acquired Grind lays Bank from the ANZ Group and
the Chase Consumer banking operations in Hong Kon
9. Recent Alliances & acquisitions
In 2000, Standard Chartered acquired Grind lays Bank from ANZ Bank, increasing its presence in
private banking and further expanding its operations in India and Pakistan. Standard Chartered
retained Grind lays private banking operations inLondon andLuxe mbourg and the subsidiary in
Jersey, all of which it integrated into its own private bank. This now serves high net worth
customers in Hong Kong,Duba i, andJohannesburg under the name Standard Chartered Grind lays
Offshore Financial Services. InIndia, Standard Chartered integrated most of Grind lays' operations,
making Standard Chartered the largest foreign bank in the country, despite Standard Chartered having
cut some branches and having reduced the staff from 5500 to 3500 people. On 15th April2005, the
bank acquired Korea First Bank, beatingHSBC in the bid. Since then the bank has rebranded the
branches as SC First Bank. Standard Chartered completed the integration of itsBangkok branch and
Standard Chartered Nakornthon Bank in October, renaming the new entity Standard Chartered Bank
(Thailand).
Standard Chartered also formed strategic alliances with Fleming Family & Partners to expand private wealth management in Asia and the Middle East, and acquired stakes inACB Vietnam,
Travelex, American Express Bankin Bangladeshand Bohai Bankin China. On 9th August 2006
Standard Chartered announced that it had acquired an 81% shareholding in the Union Bankof Pakistan
in a deal ultimately worth $511 million. This deal represented the first acquisition by a
foreign firm of a Pakistani bank and the merged bank, Standard Chartered Bank (Pakistan), is now
Pakistan's sixth largest bank. On 22 October, 2006 Standard Chartered announced that it has received
tenders for more than 51 per cent of the issued share capital of Hsinchu International Bank
(“Hsinchu”), established in 1948 inHsinchu province in Taiwan. Standard Chartered, which had first
enteredTaiw an in 1985, acquired majority ownership of the bank, Taiwan’s
seventh largest private sector bank by loans and deposits as at 30 June, 2006. Prior to the merger,
Hsinchu had suffered extensive losses on defaulted credit card debt. In 2006, Standard Chartered in
Bangladesh announced an alliance with Dutch Bangla Bank to share their respective ATM operations.
On 23 August, 2007 Standard Chartered entered into an agreement to buy a 49 percent of an Indian
brokerage firm (UTI Securities) for $36 million in cash from Securities Trading Corporation of India
Ltd., with the option to raise its stake to 75 percent in 2008 and, if both partners agree, to 100 percent
by 2010. UTI Securities offers broking, wealth management and investment banking services across
60 Indian cities.
On 29th February 2008, Standard Chartered PLC announced it has received all the required approvals
leading to the completion of its acquisition of American Express Bank Ltd (AEB) from the American
Express Company (AXP). The total cash consideration for the acquisition is US$ 823 million. The
acquisition of AEB provides Standard Chartered with an opportunity to add capability, scale and
momentum in the strategically important Financial Institutions and Private Banking businesses. It will
add 19 more markets to the Standard Chartered footprint, while deepening presence in some core
markets and providing access to several new growth markets.
Taiwan
Thailand
Vietnam
11. Standard Chartered Bank – Vision and Strategy Standard Chartered Bank has been established for over 150 years. It spans the developed and emerging economics of the world with a network of over 500 offices in more than 40 countries. With a mission to build a world-class bank, Standard Chartered has adopted the strategies of: Building a world class business: Focus on core business, provide superior customer service, and generate maximum returns and benefits for shareholders. Staying lean and focused: Is vest in core business optimal usage of resource, and manage performance by balancing cost and risks. Recognized as a winning organization: Develop capability to the fullest, instill global
thinking, inject of pride in to people to get connected to Standard Chartered Bank. The Standard
Chartered Group is an unusual banking business. Although its roots are clearly British, its area of
operations, its network and indeed its profit stream are overwhelmingly India.. The name Standard
Chartered comes from the two original banks from which it was founded – The Chartered Bank of
South Africa Australia and China, and the Standard Bank of British International
Principles & ValuesAt Standard Chartered our success is built on teamwork, partnership and the
diversity of our people. At the heart of our values lie diversity and inclusion. They are a fundamental
part of our culture, and constitute a long-term priority in our aim to become the world's best
international bank. Today they employ 73,000 people, representing 115 nationalities, and you'll find
61 nationalities among our 500 most senior leaders. We believe this diversity helps to fuel creativity
and innovation, supporting the development of exciting new products and services for our customers
worldwide.
11.2 Business & Strategy Standard Chartered operates in many of the world's fastest growing markets, and derives over 90 per cent of its profits from the emerging trade corridors of Asia, Africa and the Middle East. We want to be recognized across Asia, Africa and the Middle East for delivering a sustainable business and to lead by example in our markets." 11.3 Indian Operations
The Chartered Bank opened its first overseas branch in India, at Kolkata, on 12 April 1858. Eight
years later the Kolkata agent described the Bank's credit locally as splendid and its business as
flourishing, particularly the substantial turnover in rice bills with the leading Arab firms. When The
Chartered Bank first established itself in India, Kolkata was the most important commercial city, and
was the centre of the jute and indigo trades. With the growth of the cotton trade and the opening of the
Suez Canal in 1869, Bombay took over from Kolkata as India's main trade centre. Today the Bank's
branches and sub-branches in India are directed and administered from Mumbai (Bombay) with
Kolkata remaining an important trading and banking centre. Standard Chartered Bank is the largest
international banking Group in India Standard Chartered offers a range of premium retail banking
services through its network of 83 branches in 33 cities across the country, including Ahmedabad,
Mumbai, Delhi, Chennai, Calcutta, Pune, Bangalore and Kanpur. As their privileged customer, you
can always be assured of a banking service flexible enough to take care of your banking needs. These
are in addition to their Savings account, depot account, current account and depository services
facilities, which are also available. What’s more many of their services are backed by a unique service
guarantee – a reflection of their commitment to provide you with effective and reliable banking
services. Standard Chartered was
the first to issue global credit card in India, the first to issue Photo card, the first Picture Card and was the first credit card issuer to be awarded the ISO 9002 certification. 11.4 Future Plans
After 150 years of services to India, Standard Chartered Bank continues to be committed to the
country and optimistic of positively contributing to the Indian Financial Sector. The Standard
Chartered Group considers being one of the greatest economic opportunities of the 21st century and is
proud to be so strongly positioned here. The Bank has ambitious plans to transform its business in the
country and to further expand operations across the country.
12. Objective of the Study The Research project has been carried out to aid the Standard Chartered bank in offering services that the customer needs and also to improve on some of the existing services of the bank.
The objective of this project was to find out:
1. To study Service Account potential in today’s market scenario as a whole.
2. To Analyze Market Potential of Standard Chartered Bank’s Services Account.
3. Comparing other banks with Standard Chartered on various banking parameters.
4. To find out the various factors on which the bank lags/leads.
5. Finally to find the requirement of the customer by segmenting them on the basis of:
•
Age •
Profession •
Monthly Income Analyzing the data as per the given objectives, reaching a conclusion and finally the factors that the bank should consider in case of improving the service accounts13. Purpose of the Study
To maintain and enhance the position further, the bank decided to have a thorough insight into the
comparison with different banks. As it is a part of the service industry, which depends upon the
customer perception of the product conception and their views towards the service provider, thus the
feedback from the customers becomes important.
The purpose of the undergone study was to study the Current/Saving Accounts services and its rates of
different banks and evaluate the competitive position of Standard chartered so as to suggest ways to
increase its market share.
14. Problems Definition
The main problem faced by the company was that it had a small customer base .The bank’s own
products had a lesser market as compared to its third party selling. The bank does a third party selling
for all the investment products.
The study thus focused on the following dimensions: 1.To identify critical factors that influences the buying behavior of individuals. 2.To know the customer acceptance of the services of Standard chartered bank in Delhi and
NCR regions.
3.To asses the problem volume of future sales.
4.To find the position of Standard Chartered bank vis-à-vis its competitors.
The Bank wants to strengthen its customer base by gathering information about the market scenario
for Current/Savings Accounts. Standard Chartered Bank needs to know about the competitor’s moves
