1

PRESENTATION ON

Banking
Sector

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INTRODUCTION
What is Bank
A bank is a financial institute whose primary
activity is to act as a payment agent for
customers to borrow and lend.
What is Banking
Indian Definition of Banking
By banking regulation act 1949.
"Banking" means the accepting, for the purpose of
lending or investment, of deposits of money from
the public, repayable on demand or otherwise,
and withdraw able by cheque, drafts, order or
otherwise”.

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 History of Banking
The banking system was prevailing at the
time of Babilon culture, from since 1171 year
 The word ‘BANK’ has evolved from word
‘BANCO’
 It is seen that since 1646 the word ‘Bank’ has
been used in the articles.
Indian History:
Banking in India is said to be developed
during the British era. In the first half of the
19th century.
Bank of Bengal in 1809 , Rs 50 lakhs as capital
 The Bank of Bombay in 1840, Shares capital
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Rs 5225000. IIMP 4
But in the course of time these three banks
were amalgamated to a new bank called
Imperial Bank of India on 27th Jan 1921 and
later it was taken over by the State Bank of
India in 1955.
 Allahabad Bank was the first fully Indian
owned bank. The Reserve Bank of India was
established in 1935 followed by other banks
like Punjab National Bank, Bank of India,
Canada Bank and Indian Bank.
In 1969, 14 major banks were nationalized and
in 1980, 6 major private sector banks were
taken over by the government.

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Types of Banks
 Central Bank
The Reserve Bank of India is the central Bank that is
fully owned by the Government.
 Public Sector Banks
State Bank of India and its associate banks called the
State Bank Group, 20 nationalized banks, Regional
rural banks mainly sponsored by public sector banks.
 Private Sector Banks
Co-operative Sector
The co-operative sector is very much useful for
rural people. The co-operative banking sector is
divided into the following categories.
 State co-operative Banks
 Central co-operative banks
 Primary Agriculture Credit Societies

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Development Banks/Financial
Institutions
IFCI
IDBI
ICICI
IIBI
SCICI Ltd.
NABARD
Export-Import Bank of India
National Housing Bank
Small Industries Development Bank of India
North Eastern Development Finance
Corporation
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RBI
 The Reserve Bank of India was established on
April 1, 1935 in accordance with the provisions of
the Reserve Bank of India Act, 1934.
 The Central Office of the Reserve Bank was
initially established in Calcutta but was
permanently moved to Mumbai in 1937.
The Reserve Bank is fully owned by the
Government of India.
Preamble:
The Preamble of the Reserve Bank of India
describes the basic functions of the Reserve Bank
as:
"...to regulate the issue of Bank Notes and keeping
of reserves with a view to securing monetary
stability in India and generally to operate the
currency and credit system of the country to its
advantage."
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Banking related terms
Inflation Current Rates:
CRR rate Bank Rate: 6%
REPO rate Repo Rate: 9%
Bank rate Reverse Repo rate: 6%
Call rate CRR: 8.75%
Slr rate SLR: 25%
Plr rate PLR: 12.75%-13.25%
Saving Bank Rate: 3.5%
Deposit Rate: 7.5%-
9.6%
Call rate: 7%-9.%
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E-Banking
CORE BANKING:

Core banking is all about knowing customers'

needs. Provide them with the right products at
the right time through the right channels 24
hours a day, 7 days a week. Core Banking is
normally defined as the business conducted
by a banking institution with its retail and
small business customers
MICRO FINANCE
Micro credit, or microfinance, is banking the
unbendable, bringing credit, savings and
other essential financial services within the
reach of millions of people who are too poor to
be served by regular banks, in most cases
because they are unable to offer sufficient
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collateral.
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DUTIES OF THE BANK

FUNDAMENTAL DUTIES

FUNDAMENTAL POWERS

ADVISORY DUTIES

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Banking Services
Deposits

Money
Loans transfer

Services

NRI
services E-
Banking

Lockers

(Limited
to some
banks)

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Indian banking sector Analysis

The nationalized banks have more branches

than any other types of banks in India.
Total number of branches 33,627 in India, as
on March 2005.
Investments of scheduled commercial banks
(SCBs) also saw an increase from Rs 8, 04,
199 crore in March 2005 to Rs 8, 43,081 crore
in the same month of 2006.
India's retail-banking assets are expected to
grow at the rate of 18% a year over the next
four years (2006-2010).
-Retail loan to drive the growth of retail
banking in future.
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JOB OPPORTUNITIES IN BANKING SECTOR

CLERICAL
MANAGERIAL
Duties of workers in specialized areas are :
Personnel - recruiting and training staff, planning career
development of trainees, advising students about careers in
banking;
Marketing - designing campaigns to promote new and
existing services, researching customers' banking habits to
find new
opportunities for the bank;
Operations - processing transactions and loans, researching
new technology or different working methods to increase
the bank's efficiency;
Electronic Services- writing a new section on the bank's
website, developing interactive digital TV banking services;
Card Services- authorizing and issuing cards, managing
transactions;
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IDBI BANK
Vision:
“To the trusted partner in progress by leveraging
quality human capital and setting global standards of
excellence to build the most valued financial
conglomerate”.
our Mission
To continually strive to enhance customer experience
through innovative product offerings, dedicated
relationship management and superior service delivery
while striving to interact with our customers in the
most convenient and cost effective manner.
To be transparent in the way we deal with our
customers and to act with integrity.
To invest in and build quality human capital in order to
achieve our mission.
History (down memory lane…evolution and
changing role )

 1964-On July 1st, IDBI was established by an act of

parliament
 1976-100% ownership was transferred from RBI to the
government of India
 2005-On April 2nd, IBDI merged its hitherto banking
subsidiary (IDBI bank ltd) with itself. However, the”
appointed date” of merger as fixed as October 1, 2004.
Post the October 2004 merger of erstwhile IDBI bank
with its present company (IDBI LTD) IDBI is now a
universal bank.
 2006- IDBI announce it foray into life insurance business
jointly with federal bank and forties insurance international
N.V(fortis).
SWOT ANALYSIS

STRENGTHS WEAKNESS
 It has a diversified
customer profile  Average quarterly balance
 IDBI’S strong market Rs.2500/-
position as one of India’s  Poor level awareness about
leading financial institution, the bank among masses
with consistent profitability  Not proved search option
and sound capitalization. for online services.
 competent human capital
to power its aggressive
growth plans .
 It has exerted a
deterministic influenced on
the development of modern
India by moving beyond the
realm of mere financial
intermediation
Swot Analysis
Cont…
OPPORTUNITIES: THREATS:

A major chunk of semi Threats from existing

urban and rural India is players.
uncovered
Threats from foreign
India’s saving rate i.e. banks and private Indian
33% of GDP is one of the banks
highest
SUBSIDIARIES:
IDBI CAPITAL
IDBI HOMES
IDBI INTECH
IDBI GILTS
IDBI STARATEGIES
Short To Medium-Term Long-Term Strategy
Strategy
 Optimize mix of corporate and
retail banking.  Pursue organic growth
 Leverage core competency in opportunities.
project financing.  Target a stronger domestic
 Emphasize landing to agriculture, network apart from a
micro finance and SMEs. respectable presence abroad.
 Focus on fee based income to  Explore inorganic growth
boost profitability.
through commercially gainful
 Increase the relative share of low bank acquisitions and
cost deposits (CASA) in total
deposit. mergers.
 Foray into associated business  Position the bank as the “Bank
domains like life insurance, mutual of Choice”.
funds, asset management and
private equity areas.
 Leverage technology and planning
for enhancing group’s synergy.
 Enhance and implement
enterprise-wide risk management
systems.
 Reorient human resources through
CSR (Corporate Social Responsibilities)
 Details of the projects and
implementing partners are as follow:
 Prerna
 Child Survival India (CSI)
 New Opportunity for Women (NOW)
 Nav Shrishti
8P’S OF MARKETING
Place
 The detailed study of IDBI is shown below:
 No of branches: 501
 Metro 173
 Urban 176
 Semi urban 99
 Rural 53

No of ATM’s: 851

Product & services

Promotion
Price
People
Physical evidence
Public relation
profit
HR CHALLENGES IN IDBI
MUMBAI: The proposed merger of IDBI and
IDBI Bank could throw up challenges at
several stages.
The pooling and merging of the human
resourses of the two entities could be one of
the biggest challenges, said an official at a
private sector bank.
"Retaining the cream of IDBI Bank personnel
under the new fold will be a big HR
challenge," the official said. "The work
cultures of the two entities are totally different
and could result in a clash."
"It remains to be seen if the IDBI personnel
can take a 180-degree turn in their business
approach," a banking analyst with a local
COMPARATIVE STUDY OF BANKS

 REFERENCES:
 www.Google.com(search engine)
 www.RBI.org.in
 www.ecofin.co.in
 www.idbi.com
 BOOKS:
Marketing management by: Philip kotler
Logo Meaning
 Our logo captures the essence of what our banks stands for.
The teal green backdrop in the logo coveys the immense
prosperity our institution has help bring to modern India,
while the straight standing erect typeface reflects the
steadfastness and solidity of our organization. The orange
flower is a symbol of dynamism and individual well-being.
The blob atop the power conveys that each and every stake
holder is the focal point of our strategy pursuits while the
circle of space around the orange flower suggests that no
matter how big it grows, there will always be scope for it to
further expands its reach(inclusive banking) and bouquet of
products and services(universal banking). Overall, the new
logo reflects the assuring face of a bank that is committed
to help ‘every big-thinking Indian think even bigger’, which
SUGGESTIONS
 More branches across different states of India
especially in rural areas are required to be
opened to meet the requirement of rural
India.
 ATM has become very attractive for
customer, but IDBI has very small ATM
network so need to set up more ATM networks
 IDBI need to adopt aggressive marketing
strategies which include promotion as product
in electronic media, print media and through
other forms of advertisements.
 Door step banking should also be given a
chance.