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MIDAS TOUCH NATIONAL JOURNAL OF
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ISSN: 2320 - 7779

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ISSN: 2320 - 7779

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Journal of Multidisciplinary Research
ISSN: 2320 7779
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Midas Touch National

Journal of Multidisciplinary Research
ISSN: 2320 7779
Vol-2, No. 1-3, January March - 2014
CONTENT
No.
Paper Title
1. Private Sector Banks In India: An Assessment of Financial
Performance
2.
Women Entrepreneurship In India: Need of The Hour
3.
Comparative Study of Efficiency of Bank of Baroda and Dena

Bank With Camel Model
4.
A Study on Business Intelligence and Mobile Business

Intelligence
5.
6.
Author
Ruchi Sharma
Asutosh Goswami
Pradeep Kumar
Ketki P. Sheth
Page
1-9
10-13
S.G. Patel
B.O. Baxi
14-25
Deepa Kesari
26-30
Unsolved Business Dilemma: Human Resource
Bipin T. Vadher
31-36
A Case Study on Innovative Practices In Family Owned

Enterprises - Protagonist- Abhishek Roonwal, Jewel Passion
Sumita Kumar
37-44
Midas Touch Indian Journal of Multidisciplinary Research

Volume 2, No. 1-3, January March 2014
ISSN: 2320 -7779
PRIVATE SECTOR BANKS IN INDIA: AN ASSESSMENT OF FINANCIAL PERFORMANCE
Ruchi Sharma, Assistant Professor, College of Vocational studies, University of Delhi.
Ashutosh Goswami, Assistant Professor, Research scholar, University of Delhi
Pradeep Kumar, Assistant Professor, Department of Commerce, Delhi School of Economics,
University of Delhi, Delhi
ABSTRACT
The Indian banking system has undergone several changes in terms of organization, functions;
resource mobilization, socio-economic role, problems and solutions since 1992. Earlier, the Indian
Banking industry was dominated by public sector banks. But now the situation has been changed,
private sector has gained a reasonable position in the banking industry. The main idea of this article is
to make an evaluation of the financial performance of Indian private sector banks.
Keywords: Financial Performance, Private Sector Banks, India
1. INTRODUCTION:
A bank is a financial institution and a financial intermediary that accepts deposits and channels those
deposits into lending activities, either directly by loaning or indirectly through capital markets.
The private-sector banks in India represent part of the Indian Banking Sector that is made up of both
private and public sector banks. The "private-sector banks" are banks where greater parts of stake
or equity are held by the private shareholders and not by government. Banking in India has been
dominated by public sector banks since the 1969 when all major banks were nationalized by the
Indian government. However since liberalization in government banking policy in 1990s, old and new
private sector banks have re-emerged. They have grown faster and bigger over the two decades
since liberalization using the latest technology, providing contemporary innovations and monetary
tools and techniques.
The private sector banks are split into two groups by financial regulators in India, old and new. The
old private sector banks existed prior to the nationalization in 1969 and kept their independence
because they were either too small or specialist to be included in nationalization. The new private
sector banks are those that have gained their banking license since the liberalization in the 1990s.
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ISSN: 2320 -7779
List of Private Sector Banks
Old Private Sector Banks
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Catholic Syrian Bank

City Union Bank
Dhanlaxmi Bank
Federal Bank
ING Vysya Bank
Jammu & Kashmir Bank
Karnataka Bank
Karur Vysya Bank
Lakshmi Vilas Bank
Nainital Bank
Ratnakar Bank
South Indian Bank
Tamilnadu Mercantile Bank
New Private Sector Banks

14.
15.
16.
17.
18.
19.
20.
Axis Bank
Development Credit Bank
HDFC Bank
ICICI Bank
IndusInd Bank
Kotak Mahindra Bank
Yes Bank
Source: Reserve Bank of India and Indian Banks Association, 2013

2. SIGNIFICANCE OF THE STUDY
In view of several developments in the 1990s, the entire banking products structure has undergone a
major change. As part of the economic reforms, banking industry has been deregulated and made
competitive. New players have added to the competition. IT revolution has made it possible to provide
ease and flexibility in the operations to the customer. Rapid strides in information technology have, in
fact, redefined the role and structure of banking in India. Market focus is shifting from mass banking
products to class banking with introduction of value added and customized products. In this
competitive environment the customers has become increasingly sophisticated and choosy. The
expectations about the services are undergoing changes. The ultimate test of the success of any
economic enterprise lies in the economic use of resources. The Banking Industry is no exception,
more so since it uses resources in the form of funds which are always scarce in an economy like
India. It is therefore necessary to look into financial implications of banking operations so that funds
can be put to use in the best interest of the depositors, the borrower and the stakeholders.
3. REVIEW OF LITERATURE:
Sahay et al., (1997) examined the productive efficiency of 70 Indian commercial banks during the
early stages (19861991) of the ongoing period of liberalization. They used data envelopment
analysis to calculate radial technical efficiency scores. They also used stochastic frontier analysis to
attribute variation in the calculated efficiency scores to three sources: a temporal component, an
ownership component, and a random noise component. They found publicly-owned Indian banks to
have been the most efficient, followed by foreign-owned banks and privately-owned Indian banks.
They also found a temporal improvement in the performance of foreign-owned banks, virtually no
trend in the performance of privately-owned Indian banks, and a temporal decline in the performance
of publicly-owned Indian banks.
Sathey (2003) the objective of this paper was to measure the productive efficiency of banks in a
developing country, that is, India. The measurement of efficiency was done using data envelopment
analysis. Two models had been constructed to show how efficiency scores vary with change in inputs
and outputs. The efficiency scores, for three groups of banks, that were, publicly owned, privately
owned and foreign owned, were measured. The study showed that the mean efficiency score of
Indian banks compares well with the world mean efficiency score and the efficiency of private sector
commercial banks as a group was, paradoxically lower than that of public sector banks and foreign
banks in India. The study recommended that the existing policy of reducing non-performing assets
and rationalization of staff and branches may be continued to obtain efficiency gains and make the
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ISSN: 2320 -7779
Indian banks internationally competitive which was declared as an objective of the Government of
India
Das et al., (2006) investigated the performance of Indian commercial banking sector during the post
reform period 19922002. Several efficiency estimates of individual banks were evaluated using
nonparametric Data Envelopment Analysis (DEA). Three different approaches viz., intermediation
approach, value-added approach and operating approach were employed to differentiate how
efficiency scores vary with changes in inputs and outputs. The analysis links the variation in
calculated efficiencies to a set of variables, i.e., bank size, ownership, capital adequacy ratio, nonperforming loans and management quality. The findings suggest that medium-sized public sector
banks performed reasonably well and are more likely to operate at higher levels of technical
efficiency. A close relationship was observed between efficiency and soundness as determined by
bank's capital adequacy ratio. The empirical result also shows that technically more efficient banks
are those that have, on an average, less non-performing loans. A multivariate analysis based on the
Tobit model reinforces these findings.
Debasish (2006) the study attempted to measure the relative performance of Indian banks over the
period 19972004 using the output-oriented CRR DEA model. The analysis used nine input variables
and seven output variables. Segmentation of the banking sector in India was done along the following
basis: bank assets size, ownership status and years of operation. Overall, the analysis supported the
conclusion that foreign owned banks are on average most efficient and that new banks are more
efficient that old ones, which are often burdened with old debts. In terms of size, the smaller banks
are globally efficient, but large banks are locally efficient. Moreover, this study found evidence of
concentration of efficiency parameters among peer bank groups.
4. OBJECTIVES OF THE STUDY:
Indian banking system has under gone a drastic change since liberalization. The new generation
private sector bank has best used the technology, utilize the manpower in an effective manner. They
are professionally managed. These have made them to attract more customers and made them to
grower faster and stronger. The specific objective of the study is to measure the profitability of the
private sector banks in India in terms of return.
5. METHODOLOGY:
This article is an attempt to study the financial performance of Indian private sector banks and their
statistical analyses for the period of study. Based on last five years data of the numerous private
sector banks, various statistical formulas have been used to calculate their respective mean, standard
deviation, range, skewness, minimum and maximum values. To analyze the financial performance
variables like Business per employee, return on assets, profit per employee, return on equity and net
interest margin are taken for analysis.
Data are collected from secondary sources like RBI bulletin and other web site relating to banking
industry. Data were collected for a period of five years (2008-2009, 2009-2010, 2010-2011, 20112012, and 2012-2013) from all old and new Indian private sector banks.
6. ANALYSIS:
The following are the outcome of the analysis.
1.
The ratio return on assets is used to measure the profitability of the banks. It gives an
indication as to how much profit a business unit (Bank in the instant case) is able to generate
per unit of the assets. Higher value of this ratio is indicative of higher profitability and hence
productivity. During the period of study the return on assets of Tamil Nadu Mercantile Bank
are highest followed by Nainital bank among the old private sector Banks. The return on
assets among new private sector banks is more or less similar. The development credit bank
shows negative return on asset during the period of study.
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ISSN: 2320 -7779
2.
The amount of net income returned as a percentage of shareholders equity. Return on equity
measures a corporation's profitability by revealing how much profit a company generates with
the money shareholders have invested. ROE is expressed as a percentage and calculated
as: Return on Equity = Net Income/Shareholder's Equity. The return on equity is highest for
City union bank and lowest for Dhanlaxmi bank among the old private sector banks. The Yes
bank shows the highest return followed by Axis bank among the new private sector banks
during the period of study.
3.
The business (deposits plus credit) per employee of all private sector banks has increased
over the period of study. Revenue per employee is a measure of how efficiently a particular
company (Bank) is utilizing its employees. In general, relatively high business per employee is
a positive sign that suggests the company (bank) is finding ways to squeeze
more sales (revenue) out of each of its workers. The growth of business per employee is
more in case of new private sector banks as comparison to old private sector banks. The Axis
bank shows highest business per employee and Ratnakar bank shows lowest business per
employee among all the private sector banks in India.
4.
The financial ratio profit per employee is a measure of management efficiency. Profit per
employee takes the company's operating income from the income statement and divides it by
the number of employees needed to produce that revenue. Profit per employee measures
management's ability to use their employee resources effectively to create profits for the
company. The development credit bank shows negative profit per employee among new
private sector banks. The profit per employee is least for Dhanlaxmi bank among old private
sector banks.
5.
The net interest margin (spread) is the difference between interest income and interest
expenditure. The larger the spread, other things being equal, the greater will be the
profitability of banks. With the deregulation of interest rates, banks have been given freedom
to fix and revised rates of interest periodically. The highest net interest margin is for two new
private sector banks i.e. HDFC bank and Kotak Mahindra Bank. There is consistency of net
interest margin among old private sector banks.
7. FINDINGS:
The following are the summarized results of analysis:
1. We can conclude that the best performing bank on the basis return on asset is Tamil
Nadu Mercantile Bank. The Bank which performs least is Development Credit Bank with
negative return on assets.
2. From the analysis we can come to the conclusion that Yes bank employees generate
more business.
3. We can see from the table III that Yes Bank employees are those who generate more
profit. Similarly the operating profit is the highest among all private sector banks.
4. The city union bank is having highest return on equity followed by Yes bank among all
private sector banks.
5. The net interest margin is highest HDFC bank and Kotak Mahindra Bank.
8. CONCLUSION:
Indian banking system has under gone a various reforms since liberalization. The new generation
private sector bank has best used the technology, exploit the manpower in an effective manner. They
are managed by professionals. These have made them to attract more customers and made them to
grower faster and stronger.
Page 4

ISSN: 2320 -7779
REFERENCES
Bhattacharyya, A., Lovell, C. K. and Sahay, P. 1997. The impact of liberalization on the
productive efficiency of Indian commercial banks. European Journal of operational research,
98 (2), pp. 332--345.
Das, A. and Ghosh, S. 2006. Financial deregulation and efficiency: An empirical analysis of
Indian banks during the post reform period. Review of Financial Economics, 15 (3), pp. 193-221.
Debasish, S. S. 2006. Efficiency Performance in Indian BankingUse of Data Envelopment
Analysis. Global Business Review, 7 (2), pp. 325--333.
Kumbhakar, S. C. and Sarkar, S. 2003. Deregulation, ownership, and productivity growth in
the banking industry: evidence from India. Journal of Money, Credit and Banking, pp. 403-424.
Sathye, M. 2003. Efficiency of banks in a developing economy: the case of India. European
Journal of Operational Research, 148 (3), pp. 662--671.
www.rbi.org.in
www.iba.org.in
ANNEXURE
Table 1 showing Return on Assets of private sector banks

200809
Banks
Return on Assets (Amount in million)

2009- 2010- 2011- 201210
11
12
13
Avg. S.D
Skewness
Range
Min
Max
0.57
0.02
0.14
0.24
0.25
0.24
0.204
1.085
0.55
0.02
0.57
City Union Bank
1.5
1.52
1.67
1.71
1.58
1.6
0.092
0.3009041
0.21
1.5
1.71
Dhanlaxmi Bank
1.21
0.35
0.23
-0.73
0.02
0.22
0.696
0.1609176
1.94
-0.7
1.21
Federal Bank
1.48
1.15
1.34
1.41
1.15
1.31
0.15
-0.14112
0.33
1.15
1.48
0.7
0.8
0.89
1.09
1.26
0.95
0.225
0.525104
0.56
0.7
1.26
1.09
1.2
1.22
1.56
1.7
1.35
0.261
0.5989908
0.61
1.09
1.7
Karnataka Bank
1.25
0.67
0.72
0.73
0.89
0.85
0.237
1.6508365
0.58
0.67
1.25
Karur Vysya Bank
1.49
1.76
1.71
1.56
1.35
1.57
0.166
-0.261696
0.41
1.35
1.76
Lakshmi Vilas Bank
0.71
0.33
0.91
0.73
0.54
0.64
0.219
-0.489205
0.58
0.33
0.91
Nainital Bank
1.68
1.72
1.56
1.75
1.3
1.6
0.183
-1.497786
0.45
1.3
1.75
Ratnakar Bank
1.96
1.05
0.53
1.38
1.06
1.2
0.524
0.436131
1.43
0.53
1.96
South Indian Bank

Tamil Nadu Mercantile
Bank
1.09
1.07
1.05
1.12
1.17
1.1
0.046
0.7995027
0.12
1.05
1.17
1.51
1.54
1.74
1.75
1.71
0.197
0.6796326
0.49
1.51
Axis Bank
Development Credit
Bank
1.44
1.67
1.68
1.68
1.7
1.63
0.108
-2.1793
0.26
1.44
1.7
-1.25
-1.3
0.3
0.68
1.06
-0.1
1.104
-0.346739
2.36
-1.3
1.06
HDFC Bank
1.28
1.53
1.58
1.77
1.9
1.61
0.237
-0.290204
0.62
1.28
1.9
ICICI Bank
0.98
1.13
1.35
1.5
1.7
1.33
0.286
0.0482375
0.72
0.98
1.7
IndusInd Bank
0.58
1.14
1.46
1.57
1.63
1.28
0.432
-1.357147
1.05
0.58
1.63
Kotak Mahindra Bank
1.03
1.72
1.77
1.83
1.81
1.63
0.339
-2.15183
0.8
1.03
1.83
Yes Bank
1.59
1.79
1.58
1.57
1.57
1.62
0.095
2.1944864
0.22
1.57
1.79
ING Vysya Bank
Page 5

ISSN: 2320 -7779
Table 2 showing Return on Equity of Private Banks

Return on Equity (Amount in million)
2009- 2010- 2011- 201210
11
12
13
Avg
S.D
Banks
200809
10.72
0.43
2.6
4.66
4.94
4.67
City Union Bank
19.9
20.55
23.47
24.91
22.33
Dhanlaxmi Bank
19.26
5.39
4.06
-14.7
Federal Bank
12.13
10.3
11.98
14.37
ING Vysya Bank
11.66
12.01
12.86
13.82
16.72
18.19
18.96
18.1
9.83
Karur Vysya Bank
18.57
Lakshmi Vilas Bank

Nainital Bank
Karnataka Bank
Skewness
Range
Min
Max
3.839
1.0046265
10.29
0.43
10.7
22.23
2.06
0.1745143
5.01
19.9
24.9
0.35
2.872
12.16
-0.237052
33.96
-15
19.3
13.89
12.53
1.633
-0.258494
4.07
10.3
14.4
14.24
12.92
1.115
0.0916018
2.58
11.7
14.2
21.22
23.56
19.73
2.689
0.6026823
6.84
16.7
23.6
9.6
9.79
12.76
12.02
3.645
1.6352494
8.5
9.6
18.1
22.63
22.26
20.81
19
20.65
1.843
-0.1141
4.06
18.6
22.6
11.54
5.14
12.4
11.56
9.28
9.984
2.945
-1.503843
7.26
5.14
12.4
22.45
20.9
16.24
17.74
13.31
18.13
3.65
-0.142193
9.14
13.3
22.5
Ratnakar Bank
9.19
5.5
1.71
5.9
6.73
5.806
2.701
-0.61748
7.48
1.71
9.19
South Indian Bank

Tamilnad Mercantile
Bank
15.8
16.76
17.56
19.99
19.41
17.9
1.766
0.1241505
4.19
15.8
20
16.27
17.27
19.96
20.89
24.08
19.69
3.096
0.4453944
7.81
16.3
24.1
Axis Bank
Development Credit
Bank
19.12
14.27
19.15
19.34
20.29
18.53
19.29
0.638
0.9191151
1.76
18.5
20.3
13.08
3.51
7.43
10.95
4.14
10.91
-1.658357
27.35
-14
13.1
HDFC Bank
17.17
16.3
16.74
18.69
20.34
17.85
1.659
0.9764514
4.04
16.3
20.3
7.8
7.96
9.65
11.2
13.1
9.942
2.245
0.5836769
5.3
7.8
13.1
9.84
17.25
17.91
18.26
17.15
16.08
3.52
-2.1401
8.42
9.84
18.3
7.36
13.29
14.39
14.65
15.6
13.06
3.29
-1.897682
8.24
7.36
15.6
20.65
20.27
21.13
23.07
24.81
21.99
1.911
0.9387172
4.54
20.3
24.8
ICICI Bank
IndusInd Bank
Kotak Mahindra Bank
Yes Bank
Page 6

ISSN: 2320 -7779
Table 3 showing Business Per Employee of Private Banks

200809
Banks
Business per employee (Amount in million)

200920102011201210
11
12
13
Avg
S.D
Skewness
Range
Min
Max
37.40
41.90
53.70
67.50
73.60
54.82
15.69
0.1313004
36.2
37.4
73.6
City Union Bank
56.52
65.10
78.10
84.70
93.80
75.64
14.96
-0.177512
37.28
56.5
93.8
Dhanlaxmi Bank
58.59
36.96
58.92
59.29
72.97
57.35
12.92
-0.897873
36.01
37
73
Federal Bank
75.00
81.30
92.30
101.10
107.50
91.44
13.46
-0.075389
32.5
75
108
ING Vysya Bank
60.64
62.38
67.48
55.98
64.43
62.18
4.302
-0.430539
11.5
56
67.5
50.00
73.10
85.60
88.60
104.90
80.44
20.44
-0.647784
54.9
50
105
Karnataka Bank
64.90
72.70
77.10
85.90
96.60
79.44
12.23
0.4392972
31.7
64.9
96.6
Karur Vysya Bank
63.80
78.90
92.60
98.40
101.40
87.02
15.59
-0.926936
37.6
63.8
101
Lakshmi Vilas Bank
51.00
56.00
71.90
78.70
86.30
68.78
14.95
-0.164924
35.3
51
86.3
Nainital Bank
42.50
52.10
58.50
65.60
74.80
58.7
12.38
-0.008182
32.3
42.5
74.8
Ratnakar Bank
37.30
39.10
43.50
60.70
73.90
50.9
15.84
0.8952902
36.6
37.3
73.9
South Indian Bank

Tamilnad Mercantile
Bank
64.50
77.10
91.80
107.90
120.10
92.28
22.47
0.014892
55.6
64.5
120
67.93
87.02
95.92
106.88
113.32
94.21
17.83
-0.700213
45.4
67.9
113
Axis Bank
Development Credit
Bank
106.00
111.10
136.60
127.60
121.50
120.6
12.34
0.1204439
30.6
106
137
37.90
51.50
49.10
51.40
67.40
51.46
10.53
0.5508487
29.5
37.9
67.4
HDFC Bank
44.60
59.00
65.30
65.40
75.00
61.86
11.22
-0.830451
30.4
44.6
75
ICICI Bank
115.40
76.50
73.50
70.80
73.50
81.94
18.81
2.1723217
44.6
70.8
115
IndusInd Bank
83.60
83.75
84.40
78.84
84.05
82.93
2.304
-2.136609
5.556
78.8
84.4
Kotak Mahindra Bank
34.70
48.70
53.50
61.30
68.60
53.36
12.9
-0.497026
33.9
34.7
68.6
Yes Bank
98.84
162.38
222.03
174.77
177.42
167.1
44.34
-0.719996
123.2
98.8
222
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Table 4 showing Profit per Employee of Private Banks.

200809
Banks
Profit per employee (Amount in million)

2009- 2010- 2011- 201210
11
12
13
Avg S.D
Skewness
Range
Min
Max
0.14
0.01
0.05
0.10
0.12
0.08
0.055
-0.564893
0.133
0.01
0.14
City Union Bank
0.50
0.60
0.80
0.80
0.90
0.72
0.165
-0.527191
0.402
0.5
0.9
Dhanlaxmi Bank
0.41
0.07
0.07
-0.33
0.01
0.05
0.264
-0.137296
0.743
-0.3
0.41
Federal Bank
0.69
0.60
0.70
0.90
0.90
0.76
0.135
0.2204312
0.299
0.6
0.9
ING Vysya Bank
0.30
0.39
0.45
0.46
0.63
0.45
0.12
0.7460327
0.327
0.3
0.63
0.50
0.70
0.80
0.90
1.10
0.8
0.224
0.6
0.5
1.1
Karnataka Bank
0.50
0.30
0.40
0.40
0.50
0.42
0.084
-0.512241
0.2
0.3
0.5
Karur Vysya Bank
0.60
0.81
0.91
0.88
0.82
0.8
0.123
-1.565857
0.311
0.6
0.91
Lakshmi Vilas Bank
0.21
0.11
0.39
0.35
0.29
0.27
0.11
-0.600731
0.272
0.11
0.39
Nainital Bank
0.60
0.60
0.60
0.80
0.70
0.66
0.089
1.2577882
0.2
0.6
0.8
Ratnakar Bank
0.50
0.30
0.10
0.50
0.50
0.38
0.179
-1.257788
0.4
0.1
0.5
South Indian Bank

Tamilnad Mercantile
Bank
0.40
0.50
0.50
0.70
0.80
0.58
0.164
0.5184205
0.4
0.4
0.8
0.64
0.81
0.99
1.10
1.39
0.99
0.284
0.3765734
0.747
0.64
1.39
Axis Bank
Development Credit
Bank
1.00
1.20
1.40
1.40
1.50
1.3
0.2
-0.9375
0.5
1.5
-0.40
-0.50
0.10
0.20
0.50
-0
0.421
-0.06983
-0.5
0.5
HDFC Bank
0.42
0.60
0.74
0.80
1.00
0.71
0.218
-0.06033
0.582
0.42
ICICI Bank
1.10
0.90
1.00
1.10
1.40
1.1
0.187
1.1454053
0.5
0.9
1.4
IndusInd Bank
0.35
0.65
0.82
0.86
0.92
0.72
0.23
-1.360077
0.571
0.35
0.92
Kotak Mahindra Bank
0.30
0.70
0.80
0.90
1.00
0.74
0.27
-1.338504
0.7
0.3
Yes Bank
1.14
1.68
2.09
2.04
2.10
1.81
0.414
-1.437895
0.962
1.14
2.1
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Table 5 showing Net Interest Margin of private banks

200809
Banks
Net Interest Margin (Amount in million)

2009- 2010- 2011- 201210
11
12
13
Avg S.D
Skewness
Range
Min
Max
2.55
1.67
2.83
2.81
2.64
2.5
0.479
-1.913232
1.16
1.67
2.83
City Union Bank
2.92
2.67
3.21
3.03
3.02
2.97
0.198
-0.699781
0.54
2.67
3.21
Dhanlaxmi Bank
2.51
2.05
2.37
1.71
1.94
2.12
0.324
0.0598692
0.8
1.71
2.51
Federal Bank
3.69
3.42
3.67
3.49
3.00
3.45
0.279
-1.352551
0.69
3.69
ING Vysya Bank
2.26
2.52
2.76
2.81
3.02
2.67
0.292
-0.503429
0.76
2.26
3.02
2.79
2.79
3.32
3.32
3.51
3.15
0.334
-0.351588
0.72
2.79
3.51
Karnataka Bank
2.39
1.08
2.09
2.15
2.32
2.01
0.532
-1.94702
1.31
1.08
2.39
Karur Vysya Bank
2.59
2.90
3.06
2.79
2.75
2.82
0.175
0.1966603
0.47
2.59
3.06
Lakshmi Vilas Bank
2.07
2.65
3.07
2.52
2.32
2.53
0.375
0.4697963
2.07
3.07
Nainital Bank
4.12
3.52
3.76
3.88
3.54
3.76
0.25
0.5579382
0.6
3.52
4.12
Ratnakar Bank
3.99
3.11
3.58
3.58
2.55
3.36
0.551
-0.706734
1.44
2.55
3.99
South Indian Bank

Tamilnad Mercantile
Bank
2.79
2.48
2.71
2.79
2.84
2.72
0.143
-1.693338
0.36
2.48
2.84
3.32
3.02
3.66
3.57
3.91
3.5
0.34
-0.399235
0.89
3.02
3.91
Axis Bank
Development Credit
Bank
2.87
3.05
3.10
3.04
3.09
3.03
0.093
-1.82723
0.23
2.87
3.1
2.92
2.34
2.79
2.83
2.85
2.75
0.232
-2.002381
0.58
2.34
2.92
HDFC Bank
4.69
4.13
4.22
4.19
4.28
4.3
0.224
1.915637
0.56
4.13
4.69
ICICI Bank
2.15
2.19
2.34
2.40
2.70
2.36
0.218
1.1012021
0.55
2.15
2.7
IndusInd Bank
1.80
2.81
3.40
3.30
3.41
2.94
0.685
-1.629286
1.61
1.8
3.41
Kotak Mahindra Bank
5.33
5.62
4.75
4.31
4.29
4.86
0.6
0.3670839
1.33
4.29
5.62
Yes Bank
2.55
2.66
2.61
2.44
2.57
2.57
0.082
-0.821581
0.22
2.44
2.66
AUTHORS PROFILE:
Ruchi Sharma is Assistant Professor at College of Vocational studies, University of Delhi, Delhi
Ashutosh Goswami is Assistant Professor and Research scholar at University of Delhi, Delhi
Pradeep Kumar is Assistant Professor at Department of Commerce, Delhi School of Economics,
University of Delhi, Delhi
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WOMEN ENTREPRENEURSHIP IN INDIA: NEED OF THE HOUR
Ketaki P. Sheth, Associate Professor, Anand Commerce College, Anand
ABSTRACT
During the last two decades, increasing numbers of Indian Women have entered the field of
entrepreneurship and also they are gradually changing the face of business today, both literally and
figuratively.
Today, more women are breaking free from the traditional, gender specific roles and venturing into
the business world. Since 1980, the number of self employed women has increased three times as
fast as the number of self employed men. The area chosen by women is traced out as an extension of
their kitchen and knitting activities, mainly 3ps, pickle, powder and papad, but with the spread of
education and passage of time, women started shifting from 3ps to modern 3Es i.e. Energy
Electronics and Engineering. But still they have not capitalized their potential in India the way it should
be.
Keywords: Women Entrepreneurship, India
1. INTRODUCTION
THAT COUNTRY AND THAT NATION WHICH DOSENT RESPECT WOMEN WILL NEVER
BECOME GREAT NOW AND NOR WILL EVER IN FUTURE AND IN PURSUIT OF MAKING INDIA A
GREAT NATION, LET US WORK TOWARDS GIVING WOMEN THEIR MUCH DESERVED
STATUS. - SWAMI VIVEKANAND
Women from the beginning had to fight for their rights. We have witnessed the revolution made by the
women in last few years in the field of development of society by making association for rights of
women backward class of the society. From this it is implied that they have ability to govern the
society and when anybody can govern the society it can also govern the corporate because corporate
is a subset of society women have proved to be good managers because they know how to manage a
family how to manage relations, how to manage family budget and all these things are needed for
corporate governance.
Despite all the social hurdles, Indian women stand tall from the rest of the crowd and are applauded
for their achievements in their respective fields. She has competed with man and successfully stood
up with him in every walk of life and business is no exception for this.
There is growing trend in women entrepreneurial activities. Women entrepreneurs are now
contributing in large number of enterprises creating employment, fostering economic growth and
development.
Accordingly, during the last two decades, increasing numbers of Indian women have
entered the field of entrepreneurship and also they are gradually changing the face of business of
today, both literally and figuratively. But still they have not capitalized their potential in India the way it
should be.
2. CONCEPT OF WOMEN ENTREPRENEURSHIP
The Government of India has defined a women entrepreneur is an enterprise owned and controlled
by a woman having a minimum financial interest of 51% of the capital and giving atleast 51% of the
employment generated in the enterprise to women
Thus, woman entrepreneur refers equally to someone who is a main (principal) in family business or
partnership or to someone who is shareholder in a public company which she runs.
Women entrepreneurs may be defined as the women or group of women who initiate, organize and
co-operate business enterprise.
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3. OBJECTIVES:
1.
2.
3.
4.
To ponder upon the factors/aspects that encourages women to become entrepreneurs.

To examine the problems faced by women entrepreneurs.
To determine/identify the possible success factors for women in such entrepreneurial
activities.
To evaluate the impact of assistance by the govt. on womens entrepreneurship.
4. REASONS FOR WOMEN BECOMING ENTREPRENEURS:

Today more women are breaking free from the traditional gender specific roles and venturing in to the
business world. Since 1980, the number of self-employed women has increased three times as fast
as the number of self employed men. The area chosen by women is traced out as an extension of
their kitchen and knitting activities, mainly 3ps, pickle, powder and papad. But with the spread of
education and passage of time women started shifting from 3ps to modern 3Es i.e. Energy,
Electronics and Engineering
Skills, Knowledge, adaptability and passion in business are the main reasons for women to
emerge into business ventures.
They have made their mark in business for the following reasons.
1. They want new challenges and opportunities for self-fulfillment.
2. They want change to control the balance between their family responsibilities and their
business lives.
3. A strong desire to do something positive.
4. Women are aware of their own traits rights and also the work situation.
5. Women of digital era are advancing rapidly from job seekers to job creators.
6. In short due to push factors and pull factors women are now willing to become
entrepreneurs.
Table - 1
WOMEN ENTREPRENEURSHIP IN INDIA
States
Gujarat
Karnatak
Kerala
Tamilnadu
Uttar Pradesh
Punjab
Maharastra
Madhya Pradesh
Other states and UTS
Total
No. of units
Registered
3872
3822
5487
9618
7980
4791
4339
2967
14576
57,452
No. of women
entrepreneurs
1538
1026
2135
2930
3180
1618
1394
842
4185
18,848
Percentage
39.72
26.84
38.91
30.36
39.84
33.77
32.12
28.38
28.71
32.82
5. REASONS FOR SLOW PROGRESS OF WOMEN ENTREPRENEURS IN INDIA:

Women entrepreneurs are not getting the same opportunities due to deep rooted discriminatory sociocultural norms which perceive them as wives and mothers.
1. The basic problem or obstacle of a women entrepreneur is that she is a WOMAN This
pertains to her responsibility towards family, society & work.
2. Women in India lead a protected life. They are not self-dependent which reduce their ability to
bear risk and uncertainties involved in a business unit.
3. Women entrepreneurs have to face a stiff competition with the men entrepreneurs who easily
involve in the promotion and development area and carry out easy marketing of their products
with both the organized sector and their mail counterparts.
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ISSN: 2320 -7779
4. The major hurdles that the women face during starting and running a company generally
come from financing and balancing of life.
5. Internal factors like risk aversion by women, lack of confidence, lack of vision of strategic
leaders etc.
6. Women are under a social pressure which restrains them to prosper and achieve success in
the field of entrepreneurship.
7. Indian women give more emphasis to family and relationship.
8. Women controlled business are often small and it is not always easy for women to access the
information they need regarding technology, training, innovative Schemes, Concessions,
alternative markets etc.
9. Achievement motivation of the women found less compared to male members.
10. Lack of awareness about the financial assistance in the form of incentives, loans, schemes
etc. by the institutions in the financial sector.
6. MEASURES/REMEDIES TO REMOVE THE OBSTACLES:
Half of the brainpower on earth is in the heads of women. Today, the difficulty is to move
from the acceptance of equal rights to the reality of equal opportunity. This transition will not
be complete until women and men have equal opportunities for occupying positions in power
structures throughout the world. This includes not only public law-making and policy
formulating bodies, but also the world of private business, society as a whole stands to gain
by accelerating the process - M. Rene Monory, President of the senate, France.
The basic requirement in development of women entrepreneurship is to make aware the
women regarding her existence, her unique identity and her contribution towards the
economic growth and development of country.
Next emerging sectors of the countrys economy, which are vital for Indias growth, should
have more projects, oriented towards women.
A majority of women entrepreneurs are from the middle class families but have traditional
education (low technical education), but desire to become entrepreneurs. This potential
should be identified and tapped.
Mobile training centers should be opened.
Encourage womens participation in decision- making.
Training and professional competence and leadership skill to be extended to women
entrepreneurs
State finance corporations and financing institutions should permit by statute to extend purely
trade related finance to women entrepreneurs.
A women entrepreneurs guidance cell should be set up to handle the various problems of
women entrepreneurs all over the state.
Provision of micro credit system and enterprise credit system to the women entrepreneurs
should make available at local level .
Involvement of Non-Government organization in women entrepreneurial training programmes
and councelling is necessary.
7. CONCLUSION:
India is indeed witnessing the dawn of new entrepreneurial era that is being populated by a
new breed of entrepreneurs that include first generation entrepreneurs, women entrepreneurs
and social entrepreneurs.
In the past few decades women have held the offices in the country and have served with
dignity of success.
India has many women entrepreneurs who have proved their mettle and have taken
the whole country by storm. Few names are Mr. SimonTata, Mrs. Sumati Morarji, Ms. Nina
Mehrtra, Ms. Shahnaz Hussain, Ms. Kiran Mazumdar, Ms. lalita Gupte, Ms. Naina lal Kidwai
and likewise.
We always see that a competent woman becomes sincere and hard working employee, but, if
she becomes an entrepreneur she can provide livelihood to more than 10 women atleast. The
unexplored talents of young women can be identified, trained and used for various types of
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industries to increase the productivity in the industrial sector and also helps nation for its
Economic Development.
REFERANCES:
1. Desai Vasant The Dynamics of Entrepreneurial Development and Management.
2. Gupta C.B and N. P Srinivasan Entrepreneurship Development in India.
3. Moore DP & Buttner, E.H. (1997) Women Entrepreneurs: Moving beyond New Generation of
Women Entrepreneurs Achieving Business Success.
4. Ramani V.V Women Empowerment Issues and Experiences.
5. Winn, Joan (2005) Women Entrepreneurs: Can we remove The Barriers? International
Entrepreneurship and Management Journal, 1(3): 381 397.
v
Website
www. Economist.com
www.forbes.com/site/work-in-progress/2012/06/08/entrepreneurship-is-the-new-omensmovement
www.research.brown.edu/pdf/1100924770.pdf
www.icfaijournals.com
AUTHORS PROFILE:
Dr. Ketaki P. Sheth is Associate Professor at Anand Commerce College, Anand
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A COMPARATIVE STUDY OF EFFICIENCY OF BANK OF BARODA AND DENA BANK WITH
CAMEL MODEL
S. G. Patel, M.P. Arts and M.H. Commerce College, Ahmedabad.
B. O. Baxi, N.R. Institute of Business Administration, Ahmedabad
ABSTRACT
The purpose of this paper is to compare the productivity and profitability of Two Public Sector Banks
started business in Gujarat. Both banks are under the control of Government of Indian but their
performance is highly depending upon the Managerial personnel who drive bank. There is a general
notion that staffs of private sector banks perform better than the staff of public sector banks and this
study has been conducted to compare the business per employee and profit per employee. The study
has been done through the comparison of 5 years profit and loss and balance sheet of two banks.
Analysis of efficiency of Bank is based on several ratios. Employee and business per employee
showed that Bank of Baroda is doing better than Dena Bank and this is mainly because of two
reasons; first being the computerisation and the second being the entry of Bank of Baroda in retail
loans and SME loans. The retail and SME loans on the one side increase the margins and on the
other side are helpful in controlling the NPAs. The other most important factor is higher amount of
staff and higher no of Branches.
However the most significant factor is adoption of Technology in bank. Bank of Baroda is behaving
more professionally as to most conservative Dena Bank. Bank of Baroda has revamped the
organisations mission and vision. Not only this but Re-Brand building by the bank and investment in
Branding and Infrastructure of the bank pays a lot. In comparison of Bank of Baroda Dena Bank has
not done significantly and their scope or area of operation is increasing at constant rate while in case
of Bank of Baroda it is increasing at increasing Rate.
CAMEL models M-component is considered here for comparison. M-component compares the
Managerial efficiency. Data have been obtained from Annual report of Both Banks.
Keywords: Managerial Efficiency, CAMEL Model, Public Sector Bank
1.
IMPORTANCE OF MANAGERIAL DECISIONS IN PSU BANKS IN INDIA
Managerial Decisions are always playing very important role in the organizations success and its
area of operation. Managerial decisions put organization in the organisaiton in the right direction. The
Banking sector is still in the hands of Government of Indian even after more than sixty years of
independence. It is time to examine the quality of managerial decisions in the banking Industry
through various directors of the Banks in PSU Banks. Boards of Banks are key responsible personnel
for the performance of any bank in India. Effectiveness of the board can be measures by the various
parameters. In the present paper, an attempt has been made to under the impact of decision on the
business of banks and profitably of Bank.
Banking Sector is passing though very tough time. Indian Banks are now facing problems of High or
constantly increasing NPA, Lack of Technological Support, Lack of Trained Staff, Tough competition
and strict vigilance of the RBI and many more. Decisions of top level management in respect of
increasing no of branch, (which increases the business of Bank), Efficiency of staff and Branch in
terms of Advances and Deposits are major concern areas for fair evaluation of the Managerial
Performance of Bank. Banks have to determine the place of opening Branch that gives business in
terms of Advances as well as Deposit. Branch opening decision is very crucial, as it requires great
amount of Capital and deployment of Staff and other resources. The effective deployment and
utilisaiton for the resources should be reviewed for decisions.
2.
BANK OF BARODA AND DENA BANK

Bank of Baroda was founded by Maharaja Sayajirao Gaekwad in July 1908. It started with a paid up
capital of Rs 10 lakh. Bank of Baroda is a pioneer in various customer centric initiatives in the Indian
banking sector. Bank is amongst first in the industry to complete an all-inclusive rebranding exercise
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wherein various novel customer centric initiatives were undertaken along with the change of logo. The
initiatives include setting up of specialized NRI Branches, Gen-Next Branches and Retail Loan
Factories/ SME Loan Factories with an assembly line approach of processing loans for speedy
disbursal of loans.
Ever since its rebranding in 2005, bank has consistently promoted its major strengths viz. large
international presence, technological advancement and superior customer service etc. Bank had
introduced the sub brand BARODA NEXT-State of the Art-Straight from the Heart to showcase how it
has utilized technology to nurture long-term relationships for superior customer experience. The sub
brand has been reinforced by alternate delivery channels such as internet banking, ATMs, mobile
banking etc and robust delivery outfits like Retail Loan Factories, SME Loan Factories, and City Sales
Office etc. Bank constant endeavor to strengthen its branch/ATM network combined with well
informed staff offering personalized service at its various touch points have enhanced customer
interactions and satisfaction. Thus, the Bank has firmly positioned itself as a technologically advanced
customer-centric bank.
Dena Bank is one of the most prestigious banks of India having a good market share. The Bank is
one among the few banks to receive the World Bank loan for technological up gradation and training.
In the year 1969, the Dena Bank was nationalized along with 13 other Banks in India. The Bank
entered into arrangement with four mutual funds namely, HDFC Mutual Fund, ING Vysya Mutual
Fund, Reliance Mutual Fund and Kotak Mutual Fund for distribution of their mutual fund products. In
the same year, the Bank introduced new products namely Dena Maha Tax Bachat Yojana, Dena
Double Deposit Scheme, Dena Super Premium Current Account and Denalaxmi Gold Deposit
Scheme. The Bank entered into arrangement with three reputed mutual funds namely, Birla Sunlife
Mutual Fund, Tata Mutual Fund and SBI Mutual Fund for distribution of their mutual fund products. In
November 2008, SBI Card and Dena Bank launched the SBI Dena Bank Card with two variants Gold
& International in Mumbai. The SBI Dena Bank Credit Card is developed with the popular international
credit card franchise Visa International.
1) Capital and Other Aspects
Dena Bank and Bank of Baroda both are under the management of Government India since
long and for the same period. However, the efficiency of bank and its profitability is different to
great extent. Banks are under the shadow of different representatives of Government of India and
Reserve Bank of India. Though both banks are under the Government of India undertaking, their
performance in terms of Profitability and other aspects is very different. Bank of Baroda has
utilised its resources to greater extent and very conscious about its Indian and overseas
operations. Dena Bank is much conservative and becoming tool for the Agriculture finances its
review on behalf of Reserve Bank of India in Gujarat. Both Banks are operated in the Gujarat in
the initial years but Bank of Baroda has extended its scope successfully in the overseas market
also. Quick adoption of technology, right time Brand revamp and Visionary Management makes
Bank of Baroda more Efficinet and Profitable with reference to Dena Bank.
Advances and Deposits by both Banks are as under
350000
ADVANCES BY BOTH BANKS (Rs. Croes) 328187

287377
300000
228676
250000
200000
150000
143251
175035
100000
50000
29185
35721
45163
57159
66457
2008-09
2009-10
2010-11
2011-12
2012-13
ADVANCES BANK OF BARODA
ADVANCES DENA BANK
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ISSN: 2320 -7779
DEPOSITS BY BOTH BANKS (Rs. croes)

473883
500000
384871
400000
305439
300000
200000
100000
192397
43051
241262
51345
77167
64210
97207
2008-09
2009-10
2010-11
DEPOSITS BANK OF BARODA
2011-12
2012-13
DEPOSITS DENA BANK
Advances by Bank of Baroda are very high as compare to Dena Bank. Not only this but raise in
the advances is also increasing at very high rate in Bank of Baroda as to Dena Bank In case of
Deposit also Bank of Baroda is aggressive as to Dena Bank.
2) No of Branches
NO OF BRANCHES
5000
4336
4000
3000
2000
2974
1184
3418
1223
3859
3418
1342
1291
1464
1000
0
2009
2010
2011
BANK OF BARODA
2012
2013
DENA BANK
Bank of Baroda has operations in wider are as to Dena Bank. Bank of Baroda has wider network
of operations, which leads to higher amount of business. Dena Bank has just half no branches as
to Bank of Baroda. Not only this but Dena Bank not increasing Branches significantly in span of
five years. Dena Bank has increased 280 branches in span of five years and Bank of Baroda has
increased 1362 Branches. Aggressive in increase in the span of operation always pays. Bank of
Baroda has developed its business in terms of New Branch nearly six times as to Dena Bank.
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3) No of Employees
NO OF EMPLOYEES
50000
40000
36838
38960
42175
40046
43108
30000
20000
9883
10000
10525
9953
10202
11093
2009
2010
2011
BANK OF BARODA
2012
2013
DENA BANK
Looking to the above chart it can be concluded that the Dena Bank is facing the problem of lower
staff. Banks approach towards the utilisaiotn of Human capital and hiring efficinet Human Capital is
also pathetic. Bank has opened new 280 branches in last five years but total no of employees
increased are just 1210. In case of Bank of Baroda this figure, touch to 6270
3.
CAMEL MODEL-MANAGERIAL ASPECTS
Management of financial institution is generally evaluated in terms of capital adequacy, asset quality,
earnings and profitability, liquidity and risk sensitivity ratings. In addition, performance evaluation
includes compliance with set norms, ability to plan and react to changing circumstances, technical
competence, leadership and administrative ability.
Sound management is one of the most important factors behind financial institutions performance.
Indicators of quality of management, however, are primarily applicable to individual institutions, and
cannot be easily aggregated across the sector. Furthermore, given the qualitative nature of
management, it is difficult to judge its soundness just by looking at financial accounts of the banks.
Nevertheless, total advance to total deposit, business per employee and profit per employee helps in
gauging the management quality of the banking institutions. Several indicators, however, can jointly
serveas, for instance, efficiency measures doas an indicator of management soundness. The
ratios used to evaluate management efficiency are described asunder:It involves a subjective analysis for measuring the efficiency of the management. To evaluate the efficiency of
management the ratios, like Business Per Employee, Profit Per Employee, Advances Per Employee,
Deposits Per Employee, Business Per Branch, Advances Per Branch and Deposits Per Branch, which best
reflect the quality of management are calculated.
Business per Employee;
This ratio measures the efficiency of all the employees of a bank in generating business for the bank.
It is calculated by dividing the total business by the total number of employees. Business means the
sum of total advances and total deposits in a particular year.
Profit per Employee:
This ratio measures the efficiency of all employees of a bank in generating profit for the banks. It is
calculated by dividing the total profit earned by the bank, by the total number of employees. The
higher the ratio, the higher will be the efficiency of employees.
Deposits per Employee:
This ratio measures the efficiency of all employees of a bank in generating output in terms of deposits
for the banks. It is calculated by dividing the total deposits held by the bank, by the total number of
employees. The higher the ratio, the higher will be the efficiency of employees.
Advances per Employee:
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This ratio measures the efficiency of all employees of a bank in generating output in terms of
advances for the banks. It is calculated by dividing the total advances of the bank, by the total number
of employees. The higher the ratio, the higher will be the efficiency of employees.
Business per Branch;
This ratio measures the efficiency of all the branches of a bank in generating business for the bank. It
is calculated by dividing the total business by the total number of branches. Business means the sum
of total advances and total deposits in a particular year.
Deposits per Branch:
This ratio measures the efficiency of all branches of a bank in generating output in terms of deposits
for the banks. It is calculated by dividing the total deposits held by the bank, by the total number of
branches. The higher the ratio, the higher will be the efficiency of branches.
Advances per Branch:
This ratio measures the efficiency of all branches of a bank in generating output in terms of advances
for the banks. It is calculated by dividing the total advances of the bank, by the total number of
branches. The higher the ratio, the higher will be the efficiency of branches.
Here in the comparative analysis we have ignored ratios in direct relation with the Advances and
Deposits. The amount of Deposit and Advances of both banks are significantly different. If we include
the comparison of both banks performance based on the Basis of Absolute Advances and Absolute
Deposits then it might not provide us true result.
4.
Literature Review
Bhayani (2006) conducted a comparative study of Performance of the New Indian Private Sector
Banks: A Comparative Study. He concluded that aggregate performance of IDBI is best among all
the banks under study and followed by UTI.
Ashish and Sunil (2012) has trace out while examining efficiency of Public Sector Banks that
sample banks have the scope of producing 1.045 times as much output from the same inputs. On
the basis of technical efficiency, only six banks have been found to be efficient. With regard to
pure technical efficiency score 10 banks are efficient which indicates that scale inefficiency is the
main reason of inefficiency among banks in India. In the light of these results, inefficient banks
witnessing diseconomies of scale should reduce their size and those inefficient banks, which are
having increasing returns to scale, should expand their business by deploying more resources.
Chaudhry and Tendon (2010) in his study reveals that State Bank of Hyderabad and State Bank
of Bikaner has shown least CAGR of return on equity and return on assets respectively and
compound growth of return on equity and return on assets could not be calculated in case of
Dena Bank, Punjab& Sind Bank and Indian Bank due to negative return on equity and return on
assets. Spread ratio was highest in case of Indian Bank and lowest in case of State Bank of
Patiala. It is suggested that government should formulate bank specific policies and should
implement these policies through Reserve Bank of India for upliftment of Public Sector Banks
.Public sector banks should try to upgrade technology and should formulate customer friendly
policies to face competition at national and international level.
India Banking 2010 Towards a High-performing Sector report by Mc Kinsey reveals that
strengthening human capital will be the single biggest challenge. Old private sector banks also
have the need to fundamentally strengthen skill levels. New private banks could reach the next
level of their growth in the Indian banking sector by continuing to innovate and develop
differentiated business models to profitably serve segments like the rural/low income and affluent/
HNI segments; actively adopting acquisitions as a means to grow and reaching the next level of
performance in their service platforms. Maintaining a fundamentally long-term value-creation
mindset will be their greatest challenge. The extent to which Indian policy makers and bank
managements develop and execute such a clear and complementary agenda to tackle emerging
discontinuities will lay the foundations for a high-performing sector in 2010.
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Rajan Reddy and Pandit (2011) attempts to measure productivity and thereby efficiency of
Indian scheduled commercial banks for the period 1979 through 2008 using the asset approach,
under which bank output is measured as quantum of bank revenue (loans and investments).
Technical efficiency measure has been examined, using semi parametric PSS efficient estimates.
Significant changes in the policy environment have clearly enabled banks to expand their
operations efficiently under the new liberalized atmosphere. It turns out that the public sector
banks (PSB) i.e. the nationalized banks (NB) and state bank of India and its associates (SBI&A)
are more efficient compared to domestic private banks and foreign banks.
5.
RESEARCH METHODOLOGY
a) Research Objectives
I.
To know and compare the managerial efficiency of Branch of Both banks in terms
of Business of both Banks
II.
To know and compare the managerial efficiency of Both Branch
b) Research Design
The said research is describing the impact of managerial decisions on the business of
bank. Hence, we have adopted descriptive research design.
c) Scope of Research
Comparison of various ratios of Managerial Ratios suggested in the CAMEL model is
compared in the research. Hence, the research work has been executed on the basis of
applicability of CAMEL model and in the Managerial aspects only.
d) Type of Data
Secondary data has been utilised which is available from annual report of Bank of Baroda
and Dena Bank
e) Limitations of the Research
Research work is carried on the basis of CAMEL model only. Hence, the research work is
carrying all limitations, which are carried on by model.
6.
DATA ANALYSIS
CAMEL Managerial Ratios:
(Note: All following data are expressed in Rs. Cores)
1) Business Per Employees: (in cores)
BUSINESS PER EMPLOYESS
20
14.66
13.17
15
16.89
14.75
11.26
10.99
10
7.577.31
8.948.27
5
0
2009
2010
2011
BANK OF BARODA
2012
2013
DENA BANK
Base Year Comparison
2009
2010
2011
2012
2013
BANK OF BARODA
100
118
149
194
223
DENA BANK
100
113
150
180
202
In span of five years, there is significant increase in the business of both banks. Very insignificant
difference between both banks in terms of Business per Employee was found in first three years.
Bank of Baroda is proving himself superior in business of bank per employee in last two years as to
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Dena Bank. Bank of Baroda is performing well as it has higher business per employee by 2.14 cores
for Dena Bank.
In span of last five years both banks has doubled the business per employees. Technology adoption
by the Bank of Baroda shows higher efficiency.
In stand-alone position while taking 2008-09 as base year, Bank of Baroda has performed
well as to Dena Bank.
2) Profit Per Employee(in cores):
PROFIT PER EMPLOYEE

14.00
11.87
12.00
10.59
10.39
10.00
8.00
6.00
7.87
7.85
7.31
6.15
6.05
4.86
4.28
4.00
2.00
0.00
2009
2010
2011
BANK OF BARODA
2012
2013
DENA BANK
2009
2010
2011
2012
2013
BANK OF BARODA
100
130
175
196
172
100
113
144
184
171
DENA BANK
Profit Per employee is very important parameter for the measuring the managerial, efficiency
of Bank. As per above comparative chart Bank of Baroda is in far better position as to Dena Bank. In
the year 2008-09 Bank of Baroda had 150% higher profit per employee as to Dena Bank. Gap
betWeen both bank in terms of Profit Per employee has been widen up-to 2011-12. The above chart
clearly state that in last four years profitability is constantly increasing but in last year 2012-13 there is
marginally decline in the Profit per Employee.
There is higher reduction in profit per employee in case of Bank of Baroda in the year 2012-13 in
caparison to year 2011-12 as to Dena Bank. By comparing data mentioned above, we can conclude
Dena Banks profit per employee is less then Bank of Baroda by 30%.
Taking 208-09 as base year Bank of Baroda and Dena Bank both are constantly growing is
first four years but surprisingly down significantly in the last year 2012-13.
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3) Advances Per Employee(in cores):
ADVANCES PER EMPLOYEE

8.0
7.6
6.8
5.7
6.0
4.0
4.5
4.5
3.9
6.0
5.6
3.4
3.0
2.0
0.0
2009
2010
2011
BANK OF BARODA
2012
2013
DENA BANK
2009
2010
2011
2012
2013
BANK OF BARODA
100
115
146
175
195
DENA BANK
100
113
151
187
200
Efficiency of employee in terms of Advances generated by the Bank per employee is one important
parameter, which contribute towards the efficient and effective. In the span of five year Advances per
employee of Dena Bank has been increased it by 100% but Bank Baroda had increased at 90% for
the same time. Advances per Employee are constantly increasing even though there is reduction is
profit in last year. Gap of an average 1.2 cores in terms of Advance per Employee is observed in both
banks in last five years.
4) Deposit Per Employee(in cores):
DEPOSIT PER EMPLOYEE
12.00
10.00
8.00
6.00
5.22
4.36
6.19
4.88
10.99
9.13
7.56
7.63
6.45
8.76
4.00
2.00
0.00
2009
2010
2011
2012
BANK OF BARODA
DENA BANK
2013
BANK OF BARODA
2009
100
2010
119
2011
146
2012
175
2013
211
DENA BANK
100
112
148
173
201
In terms of Deposit collection per employee, also Bank of Baroda is in better position as to Dena
Bank. Bank of Baroda and Dena Bank both have doubled the Deposit per Employee in the span of
five years. However, in each year Bank of Baroda has higher deposit by 2.75 corers per employee as
to Dena Bank. Constant and steady growth of Deposit per employee by both Banks shows higher
efficiency of employees of both banks. Difference in deposit per employee may be due to other
factors.
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Taking 2008-9 as base year for first four years Bank of Baroda and Dena Bank both had achieved
equal amount of growth but in last year, Bank of Baroda has achieved growth at higher rates as to
Dena Bank.
5) Business Per Branch(in cores):
Branch wise efficiency of Bank of Baroda and Dena Bank is measured by Business per Branch Ratio.
Profitability per Branch shows effectiveness of Branch. In the char, comparative analysis is presented
which shows that Bank of Baroda is superior in establishing effective Branches as to Dena Bank.
BUSINESS PER BRANCH

200
156
150
185
170
132
113
92
100
119
108
71
66
50
0
2009
2010
2011
BANK OF BARODA
2012
2013
DENA BANK
BANK OF BARODA
2009
100
2010
117
2011
138
2012
150
2013
164
DENA BANK
100
108
139
163
180
Business per Branch is a parameter, which shows the efficiency of Branch of Bank. From above chart,
we can say that in comparison Bank of Baroda is significantly ahead in Business per Branch. The
performance of Bank Baroda is far ahead then Dena Bank in terms of Business per Branch. Dena
Banks performance is just 3/4th of the Business per Branch.
6) Advance Per Branch(in cores):
ADVANCES PER BRANCH

80
67
70
60
50
51
48
40
30
76
74
25
29
43
45
2012
2013
35
20
10
0
2009
2010
BANK OF BARODA
2011
DENA BANK
ADVANCES PER BRANCH
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BASE YEAR COMPARISON
2009
2010
2011
2012
2013
BANK OF BARODA
100
107
139
155
158
DENA BANK
100
117
140
170
182
Looking to above chart in case of Bank of Baroda Advances per Branch is showing slow growth in
first two year and then after it jumped to 67 cores per Branch in 2010-11 and in last two year, it
becomes more stagnant. In case of Dena Bank, it has achieved slow but steady growth in first three
years and in last two years, it is stagnant. However, in all five years the Gap between the Bank of
Baroda and Dena Bank for Profit Branch is remaining stagnant. On an average Bank Barodas
advance is higher by Rs.30 cores per Branch.
7) Deposit Per Branch (in cores):
DEPOSITS PER BRANCH
120.0
109.3
99.7
100.0
80.0
89.4
64.7
70.6
66.4
60.0
49.7
42.0
36.4
40.0
57.5
20.0
0.0
2009
2010
2011
BANK OF BARODA
2012
2013
DENA BANK
BASE YEAR COMPARISION

BANK OF BARODA
2009
100
2010
109
2011
138
2012
154
2013
169
DENA BANK
100
115
137
158
182
Dena Banks performance is significantly lower than Bank of Baroda in terms of Deposit per Branch.
Branch wise efficiency in getting deposit is just half to Bank of Baroda. In the span of five years, the
GAP or difference in efficiency between both banks has been widened. Growth of Deposit per Branch
is higher in Bank of Baroda in last three years. However, in Case of Dena Bank it is constant but
sluggish. This makes negative impact on overall business of the Bank.
6. FINDINGS
Comparing the performance of both Bank of Baroda is found very strong and aggressive in Banking
operations and expansion also. Dena Bank is far behind to Bank of Baroda in various aspects. The
difference in terms of Business per Employee and Business per Branch shows difference in
managerial capability of both the banks.
1) In the beginning time both banks were at it level of Business per Employees but at the n end of
study time 2012-13 Bank of Baroda having higher Business per Employee by Rs. 2.14 cores per
employee.
2) In the last year of study 2012-13, Bank of Baroda has increased business significantly and
achieved growth of Business Rs. 29 cores per employee in single.
3) Profit per Employee of Bank of Baroda is higher than Dena Bank by 25%.
4) By comparing performance of 2008-09 with other years performance, the performance and
growth of both Banks are same.
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5)
6)
7)
8)
9)
10)
11)
12)
13)
14)
15)
16)
Advance per employee shows the efficiency of each employee to generate business of loan for
bank. This ratio shows very high fluctuations in the span of five years amongst both banks. The
efficiency of Bank of Baroda is higher as to the Dena Bank.
However, by comparing stand-alone performance and taking 2008-09 as base year Dena Bank
is performing slightly better as to Bank of Baroda.
While comparing Deposit per Employee same situation is there. Bank of Barodas employees
performing well and getting higher deposit per employee by Rs.2.23 cores in 2012-13.
Branch wise efficiency shows the effectives working of respective Branch. Bank of Baroda is
paying attention about the infrastructure and communication to the consumers through branch in
much better way as to Dena Bank.
Bank of Baroda is very sensitive and alert for the marketing aspects of banking activities, which
is reflected in the Business Per Bank.
Business per Branch by Bank of Baroda is just double to the Dena Bank in first two years of
study and in the last year of study Bank of Baroda has
Advance per Branch indicates the Advances given by Branch in the different sectors. Bank of
Baroda and Dena Bank both have faces problem in last two years of study.
Sluggish growth is registered in last two years for Advances per Branch.
In comparison of Base year 2008-09 Dena Bank has achieved higher growth as to Bank of
Baroda.
Dena Banks Deposit per Branch is nearly half then Bank of Baroda.
If we compare individual growth of Bank and takes 2008-09 as base year Dena Bank perform
well as to Bank of Baroda in last year of study.
The superior performance of Bank of Baroda as to Dena Bank is due to extensive Branch net
work and higher no of Employee and greater adoption of the Technology.
7. CONCLUSION:
From above study, we found that both banks are working in western part of country and come into
existence in the Government hand on same day but performance of both banks is quite different.
Board of Governors or Directors of Bank is more responsible for the performance of Bank in terms of
all parameters based on Branch and Employees.
Looking to the various ratios it is concluded that the Bank of Baroda has proven efficient in all respect.
Not only this, but high adoptability of technology, trained and efficient staff plays very vital role in the
efficiency and efficacy of Bank. Dena bank is doing fair with the present infrastructure and staff but
not efficiently in comparison to the Bank of Baroda. Brand revamping decisions of Bank of Baroda
and aggressive marketing and adopting mascot for the advertisement and effective Branch level
working makes Bank of Baroda in true sense profitable Bank of Government of India.
8. SUGGESTIONS
Bank of Baroda have to extend their banking in other states which can contributes greater in
the profitability
Dena Bank has to go for exercising Brand Revamp-Brand Building process, which gives new
recognisation to Bank.
Infrastructure and Branch level management of Dena Bank proven hurdle for the growth of
Bank, which requires improvement a lot.
Aggressive marketing and attractive product portfolio is necessary for Dena Bank for better
performance.
Trained staff and extensive Branch Net work and little liberal approach towards Loan are
necessary for the Dena Banks Management.
Selection of proper Branch Location and recruiting right candidates in the Bank is utmost
priority of the Dena Bank.
NO of employees in Dena Bank is remaining stagnant even after span of Five years may be
reason for poor efficiency.
REFERENCES:
Ashish Kumar, Sunil Kumar A Study of Efficiency of Public Sector Banks in India
IJMRSs International Journal of Management Sciences, Vol. 01, Issue 02, June 2012,
ISSN: 2277-968X pp 102-108
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ISSN: 2320 -7779
Bhayani S. J. (2006), Performance of the New Indian Private Sector Banks: A

Comparative Study, The Icfaian Journal of Management Research, Vol. V, No. 11, pp.
53-70.
Evaluation in the Liberalized and Globalized Era, Gyan Management, Vol. 2, No. 2, pp.324
India Banking 2010 Towards a High-performing Sector, McKinsey Company, Report on
Indian Banking. pp1-6
S. S. Rajan, K.L N. Reddy and V. N. Pandit (2011) EFFICIENCY AND PRODUCTIVITY
GROWTH IN INDIAN BANKING working paper June 2011, Centre for Development
Economics Department of Economics, Delhi School of Economics
Uppal, R. K. and Kaur, R. (2007). Indian Banking Industry: Comparative Performance
Vikas Chaudhry and Suman Tondon (2010) PERFORMANCE EVALUATION OF
PUBLIC SECTOR BANKS IN INDIA APJRBM Volume1, Issue1 (Octo,2010) ISSN 22294104 pp 1-17.
www.bankofbaroda.com
www.denabank.com
www.iba.org.in
www.rbi.org
www.ibef.org
http://www.iibf.org.in/scripts/iib_bankquest.asp
AUTHORS PROFILE:
S. G. Patel is Lecturer at M. P .Arts and M.H. Commerce College, Ahmedabad.
Dr. B. O. Baxi is Lecturer at N.R. Institute of Business Administration, Ahmedabad
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A STUDY ON BUSINESS INTELLIGENCE AND MOBILE BUSINESS INTELLIGENCE
Deepa Kesari B.J. Vanijya MahavidyalayaVallabh Vidyanagar
ABSTRACT
Business Intelligence (BI) is much more than software and describes a set of processes and
technologies for simplifying and enhancing the use of information within a Company. In BI data is
gathered from the IT systems in a company, whether they be ERP or CRM systems, or from Excel
spread sheets and other personal productivity tools. Data is cleaned, standardized and then
presented to business users in a friendly way. There are many mobile devices and platforms available
today. The list is constantly growing and so is the platform support. There are hundreds of models
available today, with multiple hardware and software combinations. The mobile BI program must
account for lack of device standardization from the providers by constantly testing devices for the
mobile BI apps. The present paper has been covered Business Intelligence Architecture and
Dashboard, Operational & Collaborative Business Intelligence, Functions of Business Intelligence,
Success factors for BI and its Implementation, advantages and disadvantages of Business
Intelligence, Evolution of MBI & Relation between MBI & BI.
Keywords: Business Intelligence, Mobile Business
1. INTRODUCTION
Business intelligence (BI) is a broad category of applications and technologies for gathering,
storing, analyzing, and providing access to data to help enterprise users make better business
decisions.BI applications include the activities of decision support systems, query and reporting,
online analytical processing (OLAP), statistical analysis, forecasting and data mining.
Business intelligence applications can be:
- Mission-critical and integral to an enterprise's operations or occasional to meet a special
requirement
- Enterprise-wide or local to one division, department
- Centrally initiated or driven by user demand
This term was used as early as September, 1996, when a Gartner Group report said:
By 2000, Information Democracy will emerge in forward-thinking enterprises, with Business
Intelligence information and applications available broadly to employees, consultants, customers,
suppliers, and the public. The key to thriving in a competitive marketplace is staying ahead of the
competition. Making sound business decisions based on accurate and current information takes more
than intuition. Data analysis, reporting, and query tools can help business users wade through a sea
of data to synthesize valuable information from it - today these tools collectively fall into a category
called "Business Intelligence."
Mobile business intelligence (MBI) is the ability to access BI-related data such as KPIs, business
metrics, and dashboards on mobile devices. The concept of mobile BI dates back to the early 1990s
when mobile phone use first began to become widespread. Early advocates of mobile BI immediately
grasped the potential of mobile phones to simplify the distribution of business-critical data to mobile or
remote workers. However, it wasn't until the advent of the smartphone that mobile BI began to
generate widespread attention. Mobile business intelligence is software that extends desktop
business intelligence (BI) applications so they can be used on a mobile device. MBI applications
optimizes traditional BI reports so they can be viewed easily on a small screen and is ideal for
displaying key performance indicators (KPIs) and alerts on small screens with simple charts, graphs
and spark lines. An additional benefit of MBI is that it allows data that's captured by the mobile device
to be integrated on-the-fly so that reports are currents and mobile workers can make informed
decisions in real time. Currently, there is not a unified mobile device standard for MBI, making it
challenging for vendors to accommodate the way different end user devices. Some BI vendors have
integrated mobile capabilities into their existing architecture, while other solutions require an
additional server for mobile publishing. Deployment methods vary depending on the business needs
and types of mobile devices used. Some vendors use push technology to make sure the device has
the most current data, while other vendors require the user to open an application on the mobile
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device and pull the most current data. Regardless of delivery method, data security is an important
consideration for any deployment and most vendors include encryption and strict
authorization components in the applications.
2. OBJECTIVES OF THE STUDY
1.
2.
3.
4.
5.
6.
To know the Business Intelligence Architecture and Dashboard.

To know the Operational & Collaborative Business Intelligence.
To highlight the Functions of Business Intelligence.
To analyze Success factors for BI and its Implementation.
To know the advantages and disadvantages of Business Intelligence.
To state the Evolution of MBI & Relation between MBI & BI.
3. BUSINESS INTELLIGENCE ARCHITECTURE

Business intelligence architecture is a framework for organizing the data, information management
and technology components that are used to build business intelligence (BI) systems for reporting
and data analytics. The underlying BI architecture plays an important role in business intelligence
projects because it affects development and implementation decisions. The data components of a BI
architecture include the data sources that corporate executives and other end users need to access
and analyze to meet their business requirements. Important criteria in the source selection process
include data currency, data quality and the level of detail in the data. Both structured and unstructured
data may be required as part of a BI architecture, as well as information from both internal and
external sources. Information management architectural components are used to transform raw
transaction data into a consistent and coherent set of information that is suitable for BI uses. For
example, this part of a BI architecture typically includes data integration, data cleansing and the
creation of data dimensions and business rules that conform to the architectural guidelines. It may
also define structures for data warehousing or for a data federation approach that aggregates
information in virtual databases instead of physical data warehouses or data marts. The technology
components are used to present information to business users and enable them to analyze the data.
This includes the BI software suite or BI tools to be used within an organization as well as the
supporting IT infrastructure i.e., hardware, database software and networking devices. There are
various types of BI applications that can be built into an architecture: reporting, ad hoc query, data
mining and data visualization tools, plus online analytical processing (OLAP) software, business
intelligence dashboards and performance scorecards.
4. BUSINESS INTELLIGENCE DASHBOARD
A business intelligence dashboard is a data visualization tool that displays the current status of
metrics and key performance indicators (KPIs) for an enterprise. Dashboards consolidate and arrange
numbers, metrics and sometimes performance scorecards on a single screen. They may be tailored
for a specific role and display metrics targeted for a single point of view or department. The essential
features of a BI dashboard product include a customizable interface and the ability to pull real-time
data from multiple sources. Oracle and Microsoft are among the vendors of business
intelligence dashboards. BI dashboards can also be created through other business applications,
such as Excel. Business intelligence dashboards are sometimes referred to as enterprise dashboards.
The business intelligence dashboard is often confused with the performance scorecard. The main
difference between the two, traditionally, is that a business intelligence dashboard, like the dashboard
of a car, indicates the status at a specific point in time. A scorecard, on the other hand, displays
progress over time towards specific goals. Dashboard and scorecard designs are increasingly
converging. For example, some commercial dashboard products also include the ability to track
progress towards a goal. A product combining elements of both dashboards and scorecards is
sometimes referred to as a scoreboard.
5. OPERATIONAL BUSINESS INTELLIGENCE
Operational business intelligence, sometimes called real-time business intelligence, is an approach
to data analysis that enables decisions based on the real-time data companies generate and use on a
day-to-day basis. Typically, the data is queried from within an organizations enterprise
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applications. Operational business intelligence technology is primarily targeted at front-line workers,
such as call center operators, who need timely data to do their jobs. With operational BI, analysis can
take place in tandem with business processing, so that problems can be spotted and dealt with
sooner than with conventional after-the-fact business intelligence (BI) approaches. It enables the
creation of a performance and feedback loop in which decision makers can analyze whats happening
in the business, act upon their findings and immediately see the results of those actions. Data must
be extremely current, which isnt always possible with the traditional bounds of both enterprise
reporting and data warehousing. However, most business processes at a typical company dont
require real-time data. With that in mind, a key part of every operational BI project is determining
which business users need up-to-the-minute data for BI purposes and how they will handle getting
data delivered to them in that fashion.
6. COLLABORATIVE BUSINESS INTELLIGENCE
Collaborative BI (collaborative business intelligence) is the merging of business intelligence software
with collaboration tools, including social and Web 2.0 technologies, to support improved data-driven
decision making. Collaborative BI can be applied to enterprise-wide reporting and analytics, making
the sharing process easier and enabling more efficient decision making among team members who
may have been working to reach conclusions on an individual basis. Compared to more solitary,
conclusion-based traditional BI tools, collaborative BI emphasizes the problem-solving process. Tools
allow peers to analyze data and exchange information and ideas through Web 2.0 tools like blogs
and wikis. Modern tools also support brainstorming through social networking-like features, which
continue to gain popularity for both business and personal use. Collaborative BI vendors
include SAP and Microsoft. Microsoft SharePoint, which focuses on content management, is a
popular collaborative product. Other collaborative software includes Lotus Notes.
7. FUNCTIONS OF BUSINESS INTELLIGENCE
BI technologies provide historical, current, and predictive views of business operations. Common
functions of business intelligence technologies are:
Reporting
Online analytical processing
Analytics
Data mining
Business performance management
Benchmarking
Text mining
Predictive analytics.
8. BUSINESS INTELLIGENCE FOR SUCCESS
Business intelligence equips enterprises to gain business advantage from data. Once an organization
is powered with BI it can anticipate enhanced turnaround time on data collection, come up with fresh
ideas for novel business initiatives, foresee accurate picture of customer needs and demands, and
perform more targeted marketing campaigns. In addition, it will gain enhanced knowledge that will
help it advance its brand into the top slot in terms of market share, reduce its overheads and also
diminish delays in supply chain, among other advantages. Decisions purely based on the gut feeling
cannot assure success; but in BIs fact-based decision-making framework, confident decisions can be
made for assured business success. Further, BI makes an organization agile thereby giving it a
competitive edge in todays evolving market condition.
9. SUCCESS FACTORS OF BI IMPLEMENTATION
Although there could be many factors that could affect the implementation process of a BI system,
research by Naveen K. Vodapalli shows that the following are the critical success factors for business
intelligence implementation:
1. Business - driven methodology and project management.
2. Clear vision and planning.
3. Committed management support & sponsorship.
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4.
5.
6.
7.
Data management and quality.

Mapping solutions to user requirements.
Performance considerations of the BI system.
Robust and expandable framework.
10. ADVANTAGES OF BUSINESS INTELLIGENCE

Business Intelligence, when properly implemented and used, delivers many benefits. Some of the key
advantages include:
Alignment of an organization around a consistent set of Key Performance Indicators (KPIs)
and Metrics
Quicker, fact-based decision making
Simplified graphical presentation of KPIs and metrics
Reliable presentation of information
Combination of multiple data sources (ERP, CRM, Spread sheets, Budgets, etc.)
Faster collection and dissemination of information.
11. DISADVANTAGES OF BUSINESS INTELLIGENCE
Some of the major Business Intelligence disadvantages are:
Piling of Historical Data
Cost
Complexity
Muddling of commercial settings
Limited use
Time Consuming Implementation.
12. EVOLUTION OF MOBILE BUSINESS INTELIGENCE
In the early days Development teams and analysts were quick to realize the potential of making
business intelligence systems available on mobile devices. It wasn't until the mid 2000s, however, that
smartphone technology started to catch up to the ambitions of development teams. Early iterations of
mobile BI systems were constricted by the small screen size of devices like early BlackBerry or
Symbian devices. Data was typically shown using tables of information which, unfortunately, made
reading and using the data quite difficult .The story of Mobile Revolution is When Apple introduced
the first generation of its iPhone in 2007, it heralded the beginning of the mobile revolution. Screen
size increased, usability and performance rapidly improved, and more people than ever before owned
a smartphone. Virtually overnight, the smartphone market had changed giving developers a capable
platform as well as sufficient user demand to start developing mobile BI applications. To this day,
many vendors report that iPhone (along with the iPad) access accounts for the majority of smartphone
access to mobile BI applications. At Present day mobile access to BI applications is typically
accomplished in one of two ways:
Using a mobile-browser to access the application on the web
Using a native application that is designed for a specific mobile OS (such as iOS or
Android)
Each approach has its benefits and disadvantages and, in the end, it depends on the use-case and
scenario to determine which is best for any given business. In either case, mobile BI is one of the
hottest and quickly evolving spaces in the software industry. Its promise attracts users and is fast
gaining buy-in from leading organizations and executives from around the world. The reason behind
this is simple: in the rapid-fire business world of the 21st century businesses and teams rely on realtime, on-demand access to business critical information. And at the end-game for mobile BI there is
no doubt that mobile BI applications are rapidly evolving and are a hot commodity at the moment, but
what's the end-game for these systems? Howard Dresner's independent research reveals high
expectations for the growth of mobile BI. This trend is powered by not only the increasing capability of
mobile technology like smartphones and tablets, but also by development teams hitting their stride
and delivering solid BI platforms to mobile devices. Mobile BI is one piece of the BI puzzle. If BI is
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about making better decisions using the right data, then mobile BI is about making sure that everyone
especially remote workers has access to that data anytime, anywhere.
13. RELATION BETWEEN MOBILE BUSINESS INTELLIGENCE AND BUSINESS INTELLIGENCE
The term business intelligence dates back to the late 1950s, but started getting traction when Howard
Dresner offered up this definition of BI: "concepts and methods to improve business decision making
by using fact-based support systems". As is commonly said, BI is about having the right data at the
right time to make the right call. Mobile BI addresses the use-case of remote or mobile workers that
need on-demand access to business-critical data.
14. CONCLUSION
Business intelligence (BI) encompasses a wide range of applications and technologies useful for
gathering, storing, analyzing and providing access to data. The overarching goal of strategic business
intelligence planning is to help enterprise CIOs make faster, more informed business decisions. And
now that this data can be taken "on the road" via mobile devices, CIOs are looking to put mobile BI in
the palms of their users' hands -- literally. Mobile business intelligence relies upon software that
extends desktop business intelligence applications for use on smartphone and tablets. Mobile BI
allows enterprise users to access reports on the fly and makes decisions in real time, which is a boon
to the business in todays real competitive world.
REFERENCES
http://en.wikipedia.org/
http://www.informationweek.com/
http://www.b-eye-network.com/
http://www.itbusiness.ca/
http://businesssintelligence.blogspot.in/
http://searchbusinessanalytics.techtarget.com/
http://www.itinfo.am/
http://www.klipfolio.com/
http://businessintelligence.com/
AUTHORS PROFILE
Deepa Kesari is Assistant Professor at B. J. Vanijya Mahavidyalaya, Vallabh Vidyanagar
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UNSOLVED BUSINESS DILEMMA: HUMAN RESOURCE
Bipin T. Vadhar, Management Consultant, Jamnagar
ABSTRACT
Ethical conduct in business practice and HR procedures is no longer a matter of choice. Human
Resource Management is a business function that is concerned with managing relations between
groups of people in their capacity as employees, employers and managers. This particularly affects
managers in HR, where decisions will affect peoples jobs and their future employment. This paper
explores some of the ethical dilemmas encountered in the workplace, discussing ethical behaviour
and values that relate to HR. Human resources representatives have access to extremely sensitive
information. Keeping this information private is an ethical matter facing HR. Human resources
personnel has an obligation to maintain the confidentiality of an employee's personal data. Ethics is a
key branch of philosophy, concerned with analysing what is right or wrong in peoples behaviour or
conduct. Philosophy presents us with suggestions about the nature of morality and ethics. Another
very influential view stems from seeing people as having basic human rights. Where a human right
exists, there must also be a duty or responsibility to recognise, support and acknowledge that right.
We accept professional responsibility for our individual decisions and actions. HR professionals are
expected to exhibit individual leadership as a role model for maintaining the highest standards of
ethical conduct.
Keywords: Human resources, business ethics, ethical concerns, ethical approaches
All Human Resource practices have an ethical foundation. HR deals with the practical consequences
of human behaviour.
Johnson, 2003
1. INTRODUCTION
Ethical conduct in business practice and HR procedures is no longer a matter of choice. Human
Resource Management is a business function that is concerned with managing relations between
groups of people in their capacity as employees, employers and managers. Inevitably, this process
may raise questions about what the respective responsibilities and rights of each party are in this
relationship, and about what constitutes fair treatment. These questions are ethical in nature, and this
chapter will focus on debates about the ethical basis of human resource management.
Standards, values, morals and ethics have become increasingly complex in a postmodern society
where absolutes have given way to tolerance and ambiguity. This particularly affects managers in HR,
where decisions will affect peoples jobs and their future employment. This paper explores some of
the ethical dilemmas encountered in the workplace, discussing ethical behaviour and values that
relate to HR. It looks at relevant ethical tools, such as utilitarianism and relativism in order to examine
current practices in the work-place and their links to corporate social responsibility.
2. THE SCOPE OF HUMAN RELATIONS IN MODERN TIMES
Human relations focuses more on group problems and on the individual relations to the group, rather
than on the individual per se or on his job. It also gives more emphasis to informal relationships,
because these are of
-
The individual lives in a dynamic Universe i.e. Philosophy.

He himself is active i.e. Psychology.
His activities are interwoven with the activities of others i.e. Sociology.
Most of his activities are of economic value i.e. Economics.
We have already made one reference before about the interrelatedness of problems in human
relations. All such problems inhuman relations arise from all of these relationships. The making and
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owing of material things do not constitute intrinsically worthful living for the worker or other members
of society.
In many case executives try to make employees happy and interested in their work. Management
often wishes that employee would have a keener sense of interest in their tasks, in the company, and
in industry. Employees do not wish to take over managements responsibilities, or functions, but they
do wish to have the worthfulness of their personalities recognized. Every employee wants to feel that
the management respects him as a personality ad an important organ of the whole organization.
3. A SET OF MANAGEMENT VALUES
1. The value of explaining the WHY of every new plan or program, or every change in policy,
procedure or methods, so that all concerned can understand the thinking behind it and cooperate
intelligently.
2. The value of planning work as far ahead as possible, so that every one who has any contribution to
make will have time to make it.
3. The value of frankness in all company relationships but used in a spirit of sincere and friendly
interest, not of censure or criticism.
4. The value of showing confidence in men, so that they will not fear to express their ideas or use their
initiative.
5. The value of developing loyalty, sincerity, and commitment to excel in the organization.
6. The value of giving warranted praise and the danger in unwarranted kind.
7. The value of being considerate, thoughtful, and appreciative in building a cooperative organization
spirit a sense of truth and justice.
8. The value of explaining clearly the reasons why a suggested idea or plan cannot be adopted if it is
impracticable.
9. The value of questioning the boss if he is wrong.
10. Finally, the value of true teaching rather than mere telling.
4. ETHICAL CONCERNS OF HR
The core concern of business proponents of the market economy argue is in attempting to secure
the best possible return on any investment. Any dilution of this focus will lead to the corruption of what
is a finely balanced system. Businesses that seek to be ethical as well as profitable will probably fail
economically, following which the whole community may suffer. Rather, let the invisible hand guide
the market and all will prosper. Like some evolutionary force, the best will always survive.
Wealth will trickle down from successful enterprises, and humanity will be best served. Any constraint
on the freedoms of the market be they motivated by ethical angst or vote-seeking government policy
will just mess everything up. Notwithstanding the appeal of this position, a critique of business
practice has continued to accumulate and assert itself, and to challenge the notion that business and
morality have no meeting point. Concern has surfaced from a variety of sources: from consumer
groups, political groups, religious and charitable organisations. Entrepreneurs, academics and
researchers and management professionals have all expressed the view that standards of behavior
within business need to be evaluated, and improved.
Discrimination and Harassment
Human resources professionals must ensure the organization remains compliant with antidiscrimination and harassment laws. Employee discrimination and harassment on the basis of race,
gender or religion is an ethical issue human resources personnel face daily. Laws that prohibit
discriminatory behavior such as the Civil Rights Act and Indians with Disabilities Act help HR
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representatives develop training and awareness programs to prevent discrimination and harassment
in the workplace. These laws also establish procedures human resources may use to report and
discipline workers who display inappropriate discriminatory behavior.
Privacy
Human resources are involved in most aspects of employee relations including hiring, firing,
compensation, benefits and leaves. Human resources representatives have access to extremely
sensitive information. Keeping this information private is an ethical matter facing HR. Human
resources personnel has an obligation to maintain the confidentiality of an employee's personal data.
Discrimination
Safety
Ethical
Concerns
of HR
Privacy
Diversity
Diversity
Workplace diversity encompasses the various qualities, characteristics and experiences that
distinguish one worker from another. These characteristics can be differences in race, gender, age,
social status or other traits that make an individual unique. Treating a person differently because of
these differences poses an ethical issue that faces human resources. HR personnel implement
policies that promote diversity in the workplace and welcome the differences of the entire workforce.
Safety
Employee safety is an issue facing human resources personnel. The department must prevent and
correct potentially dangerous situations. Human resources must promptly act on hazardous conditions
that present safety concerns in the workplace. The department is also responsible for identifying
potentially dangerous employees and ensuring they do not harm themselves or others within the
organization.
The unethical practice of HRM itself has also hit public attention:
Off-shoring and exploiting cheap labour markets;
Using child labour;
Reneging on company pension agreements;
Longer working hours;
Increasing work stress;
5. APPROACHES FOR ETHICAL HR DECISIONS
Ethics is a key branch of philosophy, concerned with analysing what is right or wrong in peoples
behaviour or conduct. Ethics and morality are terms that are often used interchangeably in
discussions of good and evil. The term ethics is usually applied to persons (ethics comes from the
Greek ethos, meaning character) and morality to acts and behaviour (moral comes from the Latin
moralis, meaning customs or manners).
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Philosophy presents us with suggestions about the nature of morality and ethics. It also offers us a set
of tools for analysing and exploring morality. Some main issues and approaches will now be
discussed:
Relativism
One core distinction when analysing morality is the issue of relativism the idea that morality varies
with culture, time and circumstances. The opposite position is that of absolutism, the notion that there
are universal truths in morality that apply at all times and in all circumstances. In a global business
world, this aspect becomes significant. When businesses operate globally, how far should they adapt
company rules to local circumstances? Situational ethics can become problematical for organisations
wishing to expand into new international markets.
Consequentialist approaches (utilitarianism)
This approach was developed by Jeremy Bentham and John Stuart Mill. Its main premise suggests
that the morality of an act is determined by its consequences: people should do that which will bring
the greatest utility (which is generally understood to mean whatever the group sees as good) to the
greatest number affected by a given situation.
Critics suggest that in practice it is very difficult to accurately determine what the maximal utility would
be for all affected by a situation. People may not have the necessary information. The notion of utility
is very vague. Are we thinking of the short or long term? These perspectives may lead to different
conclusions. People may vary in their perceptions and requirements. What is the majority? Can we
accept a situation where the benefits of the majority might mean the exploitation, and suffering, of the
minority? In this system, vast income disparity, or even slavery, might be condoned on the grounds
that it maximized the benefits of the majority. Some very morally repugnant acts might be condoned
on the grounds of utilitarianism.
Non-consequentialist or deontological approaches
This approach, associated with Immanuel Kant (17241804), is sometimes referred to as duty ethics.
Kants aim was to establish a set of absolute moral rules, developed through the application of
reason. He also put forward an acid test for evaluating the quality of moral rules and this is termed:
the categorical imperative. This states that: I ought never to act except in such a way that I can also
will that my maxim should become a universal law. In other words, moral rules should follow the
principle of reciprocity: do as you would be done by. This premise can be found in the moral principles
of many religious systems, including Islam, Christianity, Judaism and Buddhism.
Relativism
Utilitarianism
Deontological
Human Rights
Virtue Ethics
Stakeholder's Approach
Corporate Social Responsibility
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A key notion for Kant was that of intentionality. It might well be that the outcome of an act leads to
very bad consequences for people for example, the closure of a site and subsequent job losses
but if ones aims and intentions are good, then the act is a moral one. Its all about motivation and
meaning.
Goodpaster has attempted to develop a set of rules along Kantian lines for business practice:
1. Avoid and prevent harming others.
2. Help those in need.
3. Do not lie or cheat.
4. Respect the rights of others.
5. Keep promises or contracts.
6. Obey the law.
7. Be fair.
8. Encourage others to follow these principles.
Human rights
Another very influential view stems from seeing people as having basic human rights. In this view,
there is recognition of a core set of human rights. Where a human right exists, there must also be a
duty or responsibility to recognise, support and acknowledge that right.
There have been many attempts to codify and elaborate human rights, including the declaration of the
Rights of Man, the Universal Declaration of Human Rights and the European Convention on Human
Rights.
Virtue ethics
Virtue ethics is an approach that is not concerned to identify the qualities of good acts, or principles,
but of good people. Acting as a good person, Macintyre suggests, is the state of being well and
doing well - a complete human life lived at its best. The virtuous man has to know that what he does
is virtuous; a good man has to judge to do the right thing in the right place at the right time in the right
way. This is not just the simple application of rules. The virtues include both intellectual and character
virtues. A key distinction between this approach and others is that it focuses on the issue of agency in
ethical conduct. It suggests that neither good intentions nor outcomes, codes and the recognition of
basic rights will necessarily ensure goodness.
Stakeholder analysis
This approach has emerged from the area of applied business ethics, and proponents include
Freeman (1998) and Weiss (1994). Free market economics accords rights only to shareholders in the
business enterprise. Stakeholder analysis offers an alternative view.
Stakeholder analysis sees morality as evolving within a community of equals, where rights and needs
are recognised as residing within all individuals and groups that partake in business life.
Organisations consist of many interwoven webs of relationships, rights and responsibilities. Many
individuals and groups have a stake in how an organisation performs, apart from just the
shareholders and members of the board. Employees, customers, suppliers and the wider community
should all be considered when decisions are made, and they should be consulted accordingly.
However, there are a number of practical problems with this approach. Firstly, companies must
identify relevant stakeholders and this is not always an obvious matter. Secondly, when
stakeholders are identified, an organisation has a moral obligation to discover their views. This is not
always easy.
Corporate social responsibility (CSR)
Crowe (2002) defines CSR as, all the ways in which a company relates to society from purchasing to
product disposal, from human resources to human rights. The concept is generally used in
management literature to refer to the responsibilities and relations between an organisation and the
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community within which it operates. This focuses attention away from individual practices and
procedures, to the strategic direction and mission of the corporation as a whole. One approach that
companies can take to CSR is to include a social audit in their annual reports. This was first
recommended by Medawar (1978), and shows not just the financial performance of a company, but
also details of its impact on both the environment and the community.
6. CONCLUSION
As HR professionals we are responsible for adding value to the organisations we serve and
contributing to the ethical success of those organisations. We accept professional responsibility for
our individual decisions and actions. We are also advocates for the profession by engaging in
activities that enhance its credibility and value. HR professionals are expected to exhibit individual
leadership as a role model for maintaining the highest standards of ethical conduct. As HR
professionals we must maintain a high level of trust with our stakeholders. We must protect the
interests of our stakeholders as well as our professional integrity and should not engage in activities
that create actual, apparent or potential conflicts of interests.
REFERNCES
Aswathappa K., Human Resource and Personnel Management, 3rd edition, Tata McGraw Hill,
New Delhi, 2004.
Durai Pravin, human Resource Management, 1st edition, Pearson Publication, 2010
Nell Minow; Shareholder Initiatives in 1995: An Activists Perspective; Lens papers October
1996.
Robert A. G. Monks; Corporate Governance In The Twenty-First Century: A Preliminary
Outline; Stanford International Conference, 1994.
www. Citehr/governancefor /html/
AUTHORS PROFILE
Dr. Bipin T. Vadhar is a Management Consultant at Jamnagar.
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"A CASE STUDY ON INNOVATIVE PRACTICES IN FAMILY OWNED ENTERPRISES PROTAGONIST- ABHISHEK ROONWAL, JEWEL PASSION
Sumita Kumar Department of BBM Mount Carmel College, Bangalore
Entrepreneurs become what they are for varied reasons. Entrepreneurs emerge from the population
on demand, and become leaders because not only because of perceived opportunities available but
also due to the fact that they are well-positioned to take advantage of them.
An entrepreneur may believe that they are among the few to recognize or be able to solve a problem
by making necessary changes in their Business Model.
Change or Innovation is therefore not an option but a necessity for all , intensely competitive ,
knowledge driven and subject to uncertainty and rapid changes.
The ability of entrepreneurs to innovate relates to innate traits such as extroversion and a proclivity for
risk-taking. An entrepreneur is passionate while launching a business in order to combine personal
interests and talent with the ability to earn a living.
This case -study focuses on the business model changes this young entrepreneur has adopted. We
have also tried to analyze the relationship between strategy , performance and best practices.
India has seen some very influential families in business (large scale, medium and small scale
business). These families have made a lot of difference in the business and industrial culture of the
country. These families have existed for over hundred years and have influenced the economic and
political situation of the country.
JEWEL PASSION - A CASE STUDY
Goutham Jewellers, an average-sized jewelry showroom amidst the hustling bustling chickpet area in
the heart of the Bangalore city, was started by Mr. Gautham Jain way back in 1986. A young lad and
newly married at that time, started his family business to earn a living on his own after being trained at
a relative's jewelry showroom for nearly 8 years on everything related to the retail jewelry industry.
After 25 years of a roller-coaster ride, today GouthamJewellers have established themselves as a
traditional family business with a good credibility in the market and a large loyal customer base,
surviving in the highly crowded and competitive jewelry market.
About the Entrepreneur
After completing his Masters in Business Administration and taking adequate training under his father,
there was an urge in AbhishekRoonwal to do something on his own rather than just sitting in his
father's establishment . Abhishek just could not do what his father has been doing for years i.e.
coming to the shop, waiting for customers, doing business with them and wait helplessly when there
are no customers knowing for a fact that nothing much could be done about it . He felt there had to be
a change in the way that the business was being done since so many years. So he decided to change
the Business Model.
What is a Business Model?
In the most basic sense, a business model is the method of doing business by which a company can
sustain itself - that is, generate revenue.
Abhishek wanted to do something on his own and something different and for that he had to come out
of his comfort zone. The idea he came up with was rather simple. Instead of waiting for customers to
come to his establishment , he would go down to their place at a time of their convenience, not merely
to sell jewelry but help customers buy jewelry. This willingness and passion to deliver happiness to
customers gave birth to jewel passion.
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After starting the venture in August 2010 with a small team of craftsmen, the business is climbing the
ladder of the growth stage and is doing pretty well with an impressive annual turnover and a satisfied
customer base.
Today Jewel Passion stands out as a unique business venture where we provide customized service
at the doorstep for all jewelry solutions with an advantage of flexible payment options, educating the
customers on the quality, price and tactics of competitors, creating value in the minds of customers
and delivering happiness. The concept of providing service at doorstep was because today people
cannot find time from their busy schedule to go out shopping to buy jewelry and our business helps
them fulfill this need. The flexible payment option was introduced to make jewelry affordable to
everyone without disturbing their financial commitments along with satisfying their jewelry needs.
In his remarkable journey, Abhishek was introduced to National Entrepreneurship Network (NEN), a
Not for profit organization that aims in helping young entrepreneurs in their start- up ventures. It put
him under a rigorous training to conceptualize his business model, understand market segmentation
and implement strategies, identifying strengths and weakness, setting targets and ways to achieve
them. NEN conducted interactive mentoring sessionswith mentors from IBM thus helping him find
solutions to the hurdles he was facing in his start-up venture.
Jewel passion - A venture by AbhishekRoonwal
Concept/ Background
The idea was to help customers buy jewelry, those customers who
Do not have the time to visit a jewelry showroom to fulfil their needs
Cannot afford to buy gold, silver and diamond jewelry due to the mounting prices
Want to buy from a trusted jeweler as many fraudulent things are happening currently in the
jewelry industry
Wish to get best value for their purchase since buying gold is no less than a luxury these days
Wish to stand out of the crowd by adorning elegant, well designed and elite jewelry
Like to be exclusively served in terms of buying jewelry
Mission Statement:
"Jewel Passion aims at catering to the needs of the customers at their door step by offering exquisite
designer Gold, Silver & Diamond jewelry crafted with excellence and highest quality as per industry
standards making jewelry affordable for every pocket size."
Purpose:
In today's scenario people do not have the time to visit a jewelry showroom to fulfill their needs with
regard to jewelry. Besides the escalating gold and silver prices over the years has deprived the
customer from buying jewelry. To win Customer's trust and loyalty in today's competitive world is a
challenge in the jewelry industry. To help customers manage their busy schedule and at the same
time fulfil their needs, jewel passion was started.
Jewel Passion, a mobile jewelry showroom, provides customized solutions to customers with regard
to Gold, Silver and Diamond jewelry at their place and time of convenience with an added advantage
of 'Customer Referral Flexible Payment Options'. As Abhishek says- "We At Jewel Passion do not sell
but help customers buy jewelry and we understand that our customers value jewelry as good as an
heirloom, hence we believe in not only delivering exclusively crafted products but also
uncompromising commitment towards quality, designs and price for which customers can blindfolded
rely on us" .
The Market: (Facts about the Indian jewelry industry)
Jewelry since time immemorial has remained ''neighbor's envy and owner's pride''. The ornaments
have remained exotic, unequalled and invaluable articles of personal glory. And with jewelry
becoming symbol of status, fashion and taste, men and women today are steadily moving away from
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conventional styles of adornment and ornamentation and are gradually adopting modern patterns
better suited to their busy life styles.
The gems and jewelry industry occupies an important position in the Indian economy. According to
the report issued by India Law Offices, it is a leading foreign exchange earner, as well as one of the
fastest growing industries in the country. The two major segments of the sector in India are gold
jewelry and diamonds. Gold jewelry forms around 80 per cent of the Indian jewelry market. Besides,
India has the world's largest cutting and polishing diamond industry. It is well supported by
government policies and the banking sector with around 50 banks providing nearly $3 billion of credit
to the Indian diamond industry.
India was one of the first countries to start making fine jewelry from minerals and metals and even
today, most of the jewelry made in India is hand-made. India was the first country to introduce
diamonds to the world, the first to mine, cut and polish them as well as trade them. The cutting and
polishing of diamonds and other precious stones is one of the oldest traditions in India. In the global
diamond market today, Indian diamonds account for a 55 per cent share in value terms, 80 per cent
share in carat (weight) terms.
India's Gems & Jewelry industry is highly unorganized and fragmented with 96 percent of the total
players being family owned businesses. India's gold market is estimated to have more than 300,000
jewelers, mostly small, family-run businesses. The gold processing industry has around 15,000
players, with only 80 having revenues over USD 5 million.
According to the World Gold Council in the first quarter of 2011, demand for gold jewelry from India
rose 12 percent year on year, accounting for 37 percent of the global total, and this demand is set to
climb. The precious metal, which is widely regarded as a store of wealth by Indians, is traditionally
gifted during weddings and religious occasions, particularly during the months of October and
November. With the festive season marked by Diwali, considered the financial New Year by many
Indian businesses - around the corner, consumers rush to make their annual jewelry purchases,
fearing prices will go up further.
Gold is so central to the Indian psyche, it's at the center of every occasion, every festival. Bridal
demand (for jewelry) makes up 40-50 percent of the total demand.
The Problem & the Opportunity:
In today's socio-cultural life, people want to stand out differently and in terms of jewelry also everyone
wants to own an exclusive piece and not something that is common. Women especially have this
tendency of being conscious about this fact and that they do not like homogeneity as want to look
elegant yet exclusive. Many a time consumers visiting jewelry showrooms have the option of picking
up jewelry which is readily available and the designs may be quite common. But we at jewel passion
provide customized solutions to customers where in they can design their own jewelry or we design
exclusive jewelry for them so that their jewelry become an envy for others. We make sure that every
piece made by our well trained craftsmen is unique and the customer can gracefully adorn them.
Nowadays people, mainly the working class, are so busy that they do not find time to visit any jewelry
showroom and this busy life makes it difficult for them to fulfill their needs of buying jewelry. Besides
the traffic and chaos on roads makes things more miserable. Taking care of these issues, jewel
passion was started to facilitate door step service to enable customers buy anything and everything in
gold, silver and diamond jewelry at their time and place of convenience, be it at their work place or a
coffee shop or at a restaurant.
This is an era of high cost of living where the price for every commodity is escalating overnight and
the same holds for gold and silver. There was a time when the gold and silver prices were so low that
even a peasant could afford to buy something and today is a time when even the middle income
group people are finding it difficult to cope up with the rising prices. The rising price of the metal
affects the purchasing power of the customer and deprives them from buy anything in gold, silver and
diamonds. To overcome this problem faced by the customers, jewel passion has introduced the 'FlexiPayment Option'. Under this scheme, on reference from another customer, the customer can
purchase any jewelry of any amount and after making a down payment, the remaining balance is
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divided over a certain period where in the customer can pay every month and clear the debt. This
scheme comes with 'No additional charges' tag in which no interest or any other costs are added. In a
way this scheme is very useful for customers in which they can fulfill their needs of buying jewelry
they like without disturbing their financial commitments.
The Product/Service & USP:
Jewel Passion aspires to offer high quality products designed to make the customers cherish it for life.
Our products are exclusive and unique in design and craftsmanship unlike the products readily
available at the jewelry showrooms. At Jewel Passion we do not sell but help customers buy jewelry.
If the customer cannot find time to go out to buy jewelry, we go down to his/her place to fulfill their
needs.
Jewel passion deals with Gold, Silver and Diamond jewelry along with a host of other services like
jewelry repair, jewelry re-polishing, old jewelry exchange, etc right at the door step of the customer.
The company had recently introduced many products like crystal lamps, silver photo frames, silver gift
articles, British India coins, CZ 92.5 sterling silver jewelry, etc.
Business Operations/ Strategic Alliances:
Jewel Passion has tie-ups with various wholesalers, suppliers and dealers who are an important part
of business operations. They have tie ups with the bullion dealers who supply pure gold and silver to
us depending on their necessity. They have wholesalers who provide us various kinds of gold jewelry
such as filigree jewelry, Kerala light weight jewelry, Bombay CZ jewelry, south Indian traditional
jewelry, etc. We have suppliers who supply silver articles to cater to the needs of the customers
during festive season, as silver articles like plates, glasses, bowls, pooja items etc are bought mainly
during the festive season. They have allied with dealers of diamond jewelry to cater to the elite class,
who provide us with the finest quality diamonds along with certification of quality. They are also
connected with dealers of various precious and semi precious stones, including birth stones like
Emerald, Blue Sapphire, Yellow Sapphire and Ruby to name a few.
Sales & Marketing strategy:
This kind of unique business model is purely based on 'Word of Mouth', viral marketing and
customer's references. The marketing mix of the 4P's include
Product: The customers are exposed to various types of jewelry products in gold, silver an
diamonds. Gold jewelry includes traditional jewelry, antique jewelry, CZ stone jewelry, casting
jewelry to name a few.
Price: Our ranges of products are offered at prices far lesser than what other jewelry
showroom offer because of the absence of various overheads.
Place: Since this a mobile jewelry showroom, the business is carried on at the place and
convenience of the customer, be it at work place, a coffee shop or a restaurant.
Promotion: A satisfied customer spreads the message of quality, design and service to other
customers (friends and relatives) via 'word of mouth' and viral marketing. During the festive or
peak season, e mails containing festive specific products are sent out to people from various
backgrounds to help them know more about our company, products and service.
Team & their Experience:

The company has a team of well experienced craftsmen who have an uncompromising commitment
towards the quality with an eye for design, style and market trends. The various craftsmen have a
working knowledge of more than a decade in various types of gold and diamond jewelry and silver
articles. Company to date:
Previous funding:
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The initial investment was Rs. 80,000 and at later stages Rs.60,000 was borrowed from an Angel
Investor and the entire loan amount has been returned in the course of the business. The jewelry
industry is enormous in size and how much ever money invested in it is not adequate. Since Jewel
Passion is a medium scale business, not much of investment was pooled in because of limited
resources available. But the available resources are being exploited to the maximum to achieve best
results and set our long term goals.
The Business- Plan of Jewel Passion
Product and service
> What does the product/service satisfy?
Their products satisfy the primary needs of the customers of gold, silver and diamond jewelry by
providing skillfully crafted pieces which the customers can cherish it for life. The team of craftsmen
has an eye for every detail of the jewelry designed and crafted by them. The service of door step
provided exclusively by Jewel Passion aims at delighting the customer by helping the customers to
buy jewelry at their time and place of convenience. With a host of other services like jewelry repair,
jewelry re-polishing, etc, the secondary needs of customers is satisfied.
A customer can be satisfied because of three reasons
Service - the door step service we provide at the time and place of convenience of the
customer like workplace, office, college, restaurant, etc.
Designs - the custom made exquisite and eye-catching designs we offer
Quality and price - best quality according to the industry standards is maintained which is
very important in the Gems & Jewelry industry and the price at which we offer our products is
reasonably less compared to other jewelers as we do not have any overheads.
Jewel Passion is known for its product designs, quality, price and service but out of all the factors,
service is the part in which a customer is satisfied the most. In terms of service we stand out because
of its uniqueness of providing door step service anywhere at the time and place of convenience of the
customer. We have had customers thanking us for this kind of service as they do not have the time to
visit any jewelry showroom to fulfill their needs. Most of the customers are quite happy with the
designs we have given them so far as well as the price because we do not have any overhead
expenses like showroom rent, lighting, staff, etc.
> Are you the first in the market?
The kind or products and exclusive services provided by us right at the door step of the customers are
not provided by any other jeweler in Bangalore as per my research. This fact makes us the pioneer in
terms of the unique service we provide.
>
How do your competitors satisfy or fail to satisfy the needs?
There are no direct competitors to Jewel Passion, but other jewelers are incompetent in providing the
kind of 'Door Step Service' and 'Flexi-Payment Option' provided by us. The flexi-payment option was
introduced keeping in mind the rising gold prices so that customers are not deprived of buying jewelry.
Other jewelers have recently started an option of EMI'S where in the customer pays monthly
installments and at the end of the term, with a bonus the customer can buy jewelry. But with Jewel
Passion we have the opportunity of 'buy first and pay later' which is found nowhere in other jewelry
showrooms.
>
What is the barrier to entry for other competitors?
There is no such barrier entry for competitors as this kind of business model though first and unique,
is highly replicable. But also there are fewer chances of other jewelers with the kind of mind-set would
take the trouble to visit their customer's place to help customers buy jewelry and provide 'the buy first
pay later' option.
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>
Will potential customers be convinced?
Jewel Passion started with just 3 satisfied customers but now after one and half year, there are 45
plus satisfied customers in the list of Jewel Passion's clientele. The customer base has increased only
because of viral marketing and word of mouth by our satisfied customers. Our customers trust us in
terms of quality, purity, designs and service and at the same time we trust our customers with regard
to the payments. We believe in building long term relationship based on trust and ethics.
>
What development do you expect from competitors & when?
As said earlier, we do not have any direct competitors and since Jewel Passion being a unique
business model has taken care that our way of doing business is not exposed to the indirect
competitors. Our aim is to help people buy gold, silver & diamond jewelry and not deprive themselves
because of the rising prices. After a small survey, it has come to our knowledge that few leading
jewelry showrooms in Bangalore have come out with a strategy in order to help customers buy
jewelry. The scheme chalked out by them is, the customers will have a pay a monthly instalment of a
certain amount for a certain period and the end of the term, the customers can avail a bonus and
convert the entire monthly instalments paid by them into jewelry. But the model on which Jewel
Passion works is 'buy first pay later', which is quiet diverse and attractive to customers.
>
Intellectual property protection
Jewel Passion, being a medium scale business and still in the mid-stage of introduction & growth
cannot have any intellectual property as such.
>
The likely life- cycle of the product / service
Jewel Passion does not produce bulk products or homogeneous products, so they cannot have a
product life cycle. Also since the products are high value products and considered to be assets there
can no saturation or decline stage of such products in our kind of industry. But the designs and trend
of our jewelry may go through a life cycle. First when a design is introduced in the market and it is
liked by the customers, it goes through the growth stage via word of mouth and viral marketing. Once
all the prospective buyers have satisfied themselves by buying the particular designer jewelry, then it
might eventually die down giving rise to new designs depending on the current market trend.
Market Analysis
>
How big is the Target market?
The major target market of Jewel Passion is the working class of Bangalore chiefly women. Jewel
Passion targets those people who do not have the time to visit a jewelry showroom to fulfill their
needs of buying gold, silver or diamond jewelry mainly working professionals, school and college
lecturers. Since this is a jewelry industry, our primary target is women of the working class as men are
not much interested in jewelry.
Jewel passion started out with catering to only one college in Bangalore, but now we cover up to
many colleges, serving to the needs of the prospective buyers. The size of the working class in
Bangalore is huge comprising of almost 55% of the total women population. So far we have been
catering to the needs of the college lecturers but now we have expanded our operations to serve
working professionals by helping them buy online through email marketing carried out by us and
through our company website. We aim to target and increase our market share by adding another 500
customers to the list of 50 customers we have right now. They are also looking forward to venture into
new markets and make house wives our prospective buyers by making them aware of our products
and service.
>
What is the market share of each existing competitor?
In this highly competitive and aggressive industry it is difficult to retain the loyalty of the customers
and maintain a market share and since our business model is different from the normal business
carried out by other jewelers, our market share does not conflict with the other jewelers.
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>
Are there opportunities to collaborate with competitors rather than compete head on?
In the first place the business does not have to face aggressive head on competition with our kind of
business model but there have been opportunities where they have collaborated with other jewelers
to satisfy the needs of our customers. Since the business is a small rather medium scale business it
has limited resources available and because of this they have to approach other jewelers to maintain
the smooth running of our business operations.
Marketing & Promotion
Making the product/service known:
The company being a start up requires the support of various marketing and promotional activities to
create awareness of our various products and services. It cannot depend only on word of mouth and
in order to expand our business operations and venture into new targets markets and to increase the
customer base, they have to formulate marketing strategies and ways to promote the products.
Creating interest:
Jewelry since ages has been a women's fantasy and the only challenge in creating interest in the
customer is the eye-catchy designs. The company needs to constantly keep track of the changing
trends in the market and accordingly design and manufacture products that are at par with the latest
fashion and trend in the industry.
Forms of promotion:
The various forms of promotion carried out by Jewel Passion are
Viral marketing - a satisfied customer spreads the message of designs, quality and service to
friends, relatives and colleagues.
Kiosks at exhibitions - it is very important for us to set up stalls at highly crowded and visible places
to promote our existing and newly introduced products. S E-marketing - this is a cost efficient method
where a large number of people can be sent out emails especially during festive seasons where they
can know about our products and approach us for price, delivery and other things.
Website - in today's techno-savvy era, a website is an important part of a business to display about
the company, the products, the service and acts as a virtual representative of the company.
The Management Team
>
Who are your key managers?
Jewel Passion is a recent start up with limited business operations and a small customer base so all
the business operations are sole handedly handled by the owner Abhishek Roonwal as of now. Once
the business starts expanding and enter new markets, one or two managers can be appointed to
handle certain departments like purchase, order follow-up, delivery, payments, etc.
>
How do you intend to retain, attract & compensate key people?
Jewel Passion is associated with many key people including suppliers, dealers and craftsmen. The
most vital part of Jewel Passion are the craftsmen (Goldsmith) who design and craft a beautiful piece
out of raw gold. The craftsmen have an uncompromising commitment towards the quality with an eye
for design, style and market trends. The craftsmen who work have a working knowledge of more than
a decade in crafting variety of gold and diamond jewelry and silver articles. In today's time it is not
only a challenge to retain customers but we also face the challenge to retain good craftsmen.
Everyone seeks for better opportunities and in this aggressively competitive industry there is a huge
demand for good artistic goldsmiths. The best way to retain good talent is to pay the employees well
that is best in the industry. More than the monetary fact it is important to treat the employees like a
family. At jewel passion, the suggestions of the craftsmen regarding the designs and other variables
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attached to a product are given importance as they are the people who actually have the hands on
experience.
>
What are their skills & how does it relate to the success of this venture?
They have the local craftsmen along with other craftsmen who are migrants from various backgrounds
such as Calcutta, Gujarat, Bombay, Andhra Pradesh and Tamil Nadu. Every craftsman is dedicated to
a particular kind of jewelry like antique filigree jewelry, south Indian A.D jewelry, Bombay CZ Signity
jewelry, plain gold Calcutta jewelry, hollow Singapore jewelry, nakshi jewelry and temple jewelry. We
have different set of craftsmen for diamond jewelry and silver articles. Every group of goldsmiths has
a head and all of them work on a particular kind of jewelry. Certain designs in gold and silver which
cannot be made in Bangalore because of non-availability of resources are sent to Chennai or Jaipur
as we have links in these two cities.
The artistic hands of the craftsmen have a great deal of importance relating to the success of our
business. Every customer wishes to own an exclusive and exquisite piece of jewelry which they can
cherish for generations and the master mind and hard work behind it is the talent and skill of the
craftsmen. Whenever a customer suggests a design to be made for her/him, the advice of the
craftsmen is taken into consideration because they can picture as to how the design will look once it is
completed.
Long- term personal objective of management
The primary objective is to retain best talent with them in the form of artistic craftsmen as well as have
good business relations with all our connections and collaborators who supply us with raw materials;
semi- finished products and finished products, for a long term for the smooth running of our business
operations. Jewel Passion understands that the business depends on the smooth transactions with
their associates which help them to cater to the needs of the customers and satisfy them. All these
collaborators are channels through which a customer is delivered the product. Any sort of disturbance
in this channel will cause hindrance in delivering a finished product to a customer.
> Where will you be 5-10 years from now?
The company aspires to establish itself as one of the leading, affordable and trusted jewelry brands in
the minds of the consumers making jewelry an 'everyday affair'. "We shall progress even better in
terms of custom made jewelry, innovative and exquisite designs, superior quality products and
personalized service to fulfill the needs of every customer. We aim to have a strong customer base of
over 1000 customers within 5 years and expanding its operations and service to other cities by setting
up centers as well as seeking new avenues for growth" says Abhishek.
Financial Projections
When Jewel Passion started in August 2010, the revenue for the first six months was just 3 lakhs and
it saw a continuous growth, generating total revenue of 1.5 Crores till date.
Conclusion:
Entrepreneurs have an aptitude for spotting and seizing opportunities. If you read the first pattern
carefully, you'll notice that this pattern has two elements in it. First is spotting the opportunity and
second, seizing it. These are two entirely different things. The first is recognizing an opportunity and
the second is acting on the opportunity .Entrepreneurs have a gift for noticing the extraordinary in the
ordinary. They are able to find opportunities that are hidden in plain sight. To them, problems are
opportunities just waiting to be unlocked. It's not so much about finding a solution that makes one an
entrepreneur. Anyone can find a solution to any problem. What defines an entrepreneur is his or her
ability to find unconventional solutions to ordinary problems. Being unconventional doesn't mean
inventing some new technology rather It is about finding an innovative and creative way of doing
things.
AUTHORS PROFILE:
Ms. Sumita Kumar is Assistant Professor, Department of BBM Mount Carmel College, Bangalore
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MIDAS TOUCH NATIONAL JOURNAL OF

ISSN: 2320 - 7779

MIDAS TOUCH NATIONAL

ISSN: 2320 - 7779

Midas Touch National

Editorial Advisory Board

Dr. Sachin Parikh, Rajkot

Midas Touch National

Women Entrepreneurship In India: Need of The Hour

Comparative Study of Efficiency of Bank of Baroda and Dena

A Study on Business Intelligence and Mobile Business

Unsolved Business Dilemma: Human Resource

A Case Study on Innovative Practices In Family Owned

Midas Touch Indian Journal of Multidisciplinary Research

Midas Touch Indian Journal of Multidisciplinary Research

Catholic Syrian Bank

New Private Sector Banks

Source: Reserve Bank of India and Indian Banks Association, 2013

Midas Touch Indian Journal of Multidisciplinary Research

Midas Touch Indian Journal of Multidisciplinary Research

Midas Touch Indian Journal of Multidisciplinary Research

Table 1 showing Return on Assets of private sector banks

Return on Assets (Amount in million)

City Union Bank

Jammu & Kashmir Bank

Karur Vysya Bank

Lakshmi Vilas Bank

South Indian Bank

Kotak Mahindra Bank

Catholic Syrian Bank

ING Vysya Bank

Midas Touch Indian Journal of Multidisciplinary Research

Table 2 showing Return on Equity of Private Banks

Catholic Syrian Bank

City Union Bank

ING Vysya Bank

Jammu & Kashmir Bank

Karur Vysya Bank

Lakshmi Vilas Bank

South Indian Bank

Midas Touch Indian Journal of Multidisciplinary Research

Table 3 showing Business Per Employee of Private Banks

Business per employee (Amount in million)

Catholic Syrian Bank

City Union Bank

ING Vysya Bank

Jammu & Kashmir Bank

Karur Vysya Bank

Lakshmi Vilas Bank

South Indian Bank

Kotak Mahindra Bank

Midas Touch Indian Journal of Multidisciplinary Research

Table 4 showing Profit per Employee of Private Banks.

Profit per employee (Amount in million)

Catholic Syrian Bank

City Union Bank

ING Vysya Bank

Jammu & Kashmir Bank

Karur Vysya Bank

Lakshmi Vilas Bank

South Indian Bank

Kotak Mahindra Bank

Midas Touch Indian Journal of Multidisciplinary Research

Table 5 showing Net Interest Margin of private banks