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An Economic and Financial Analysis of Commercial Banks in Bangalore in Evolving a Competitive Strategy for ICICI Bank
Submitted in partial fulfillment of the requirements of for the award of the degree of
MASTERS OF BUSINESS ADMINISTRATION Of BANGALORE UNIVERSITY
Submitted By Mr. Manu Mohanan
Reg. No. 05JJCM6031 Under the guidance of Mr. Rajesh Pillai
Kristu Jayanti College of Management and Technology 2007
I, Manu Mohanan, hereby declared that this project titled “ An Economic and Financial Analysis of Commercial Banks in Bangalore in Evolving a Competitive Strat Strategy egy for ICICI ICICI Bank” Bank” submi submitte tted d by me to the departmen departmentt of Manage Managemen mentt of
Bangalo Bangalore re Univer Universit sity y in parti partial al fulfil fulfillm lment ent of requir requireme ement nt of MBA progra programme mme is a bonafide bonafide work carried by me under the guidance guidance of Mr. Rajesh Pillai Pillai .This has not been submitt submitted ed earli earlier er to any other univer universit sity y or instit instituti ution on for the award award of any degree diploma / certificate or published any time before.
Signature of the student
CERTIFICATE FROM GUIDE & HEAD OF THE INSTITUTION
Certified that this declaration entitled “An Economic and Financial Analysis of Commercial Banks in Bangalore in Evolving a Competitive Strategy for ICICI Bank ” ” ,
submitted in partial fulfillment for the award of MBA Degree of Bangalore University was carried out by Mr. Manu Mohanan under the guidance of Mr. Rajesh Pillai This has not been submitted to any other o ther university or institution for the award of any degree/ diploma/ certificate.
DEAN MBA DEPARTMENT
My proj projec ectt work work woul would d have have beco become me pract practic ical al with without out the the help help of grac gracee of the the “Almighty” and timely advice and creative support rendered by many. I express my affectionate thanks to The Principal, Kristu Jayanti College, Bangalore for giving me an opportunity to do this training.
I am highly indebted to my faculty guide Prof. Rajesh Pillai of the department of managem management ent studie studiess for inspir inspiring ing me and for his valuab valuable le guidanc guidancee and assis assistan tance ce provided. I also thank all other staff members of the department for guiding me in my training. I would also thank Mr. Venu Krishnan (Branch Manager) of ICICI Bank, jayanagar for permitting me to do the practical training in the organization.
I express my sincere gratitude and special thanks to all employees especially managers of different banks for their valuable suggestions and keen interest which are extremely helpful in shaping this project work to success.
Indian banks find themselves in a scenario of tighter regulation, global and domestic economic slowdown, half-backed reforms, dwindling industrial performance, a prolonged lull in the capital market, increasing competition, exc ess liquidity and narrowing array of development avenues. In such a situation the customer has become essential to gauge the competitor’s offerings in terms of innovative products and services to the customer and the reason behind customer’s loyalty to a particular bank.
In this regards, the scope of the project covers analyzing the private sector banks bank s in India with special emphasis on the product portfolio, both corporate and retail, evaluating the thrust areas and strategies of these banks, and evolving a strategy for ICICI based on the above findings.
The methodology employed for the above was secondary research backed by primary research in the form of interviews of bank officers and corporates. The study was limited to the Bangalore market.
The following private sector banks have been exhaustively studied for the purpose of competition analysis.
ABN Amro bank.
A comparative analysis of the banks has been done on two separate grounds:
A. Ratios, Ratios, facts and balance balance sheet figuresfigures- these include include the revenue, PAT, interes interestt income as a percentage of average working funds and other figures.
B. Product Product portfolio portfolio and featuresfeatures- these these include include loan products, products, credit credit cards and and ATM’s. Finally on the basis of these findings, recommendations have been provided for ICICI bank to enhance its competitive and provide a unique offering to its corporate clients.
Following is the project chapter’s classification of the study:
Chapter 1: INTRODUCTION
This is about the general introduction of the topic.
Chapter 2: RESEARCH METHODOLOGY
This deals with the method used in the study including sampling technique, sample description, and instrumentation technique and data d ata analysis software.
Chapter 3: PROFILE OF THE INDUSTRY, COMPANY
This describes the back ground and history of Indian Banking sector and the profile of company, products and its key policies
Chapter 4: DATA ANALYSIS AND INTERPRETATION
This chapter deals with analyze the collected data through questionnaire and it also interprets the different chart and graph.
Chapter 5: FINDING AND RECOMMENDATION
This is the concluding chapter, which describe the overall finding and it also focus on the recommendation for farther enhancement
Table of Contents
Profile of the Company
Analysis and Interpretation of Data
Summary of Findings, Conclusions and Recommendation
a-b I – VII
List of Graphs / Charts & Diagrams
General Analysis Of Banks
Net Profit and Deposits
List of Tables
Trends Among The Private Indian Banks
Comparison Of Loan Products
Home Loans Of Different Banks
Loans Against Shares
Two Wheeler Loans
Comparison OF ATM
Comparison Of Gold Credit Cards
List of Annexure
Questionnaire to HDFC Bank
Questionnaire to UTI Bank
Questionnaire to Citibank
Questionnaire to STAN CHART Bank
Questionnaire to HSBC Bank
Questionnaire to ABN AMRO
CHAPTER 1 INTRODUCTION
Kristu Jayanti College of Management & Technology 11
With years, banks are also adding services to their customers. The Indian banking industry is passing through a phase of customers market. The customers have more choices in choosing their banks. A competition has been established within the banks operating in India.
With stiff competition and advancement of technology, the services provided by banks have become more easy and convenient. The past days are witness to an hour wait before withdrawing cash from accounts or a cheque from north of the country being cleared in one month in the south.
In India the banks are being segregated in different groups. Each group has their own benefits and limitations in operating in India. Each has their own dedicated target market. Few of them only work in rural sector while others in both rural as well as u rban. Many even are only catering in cities. Some are of Indian origin and some are foreign players. All these details and many more are discussed over here. The banks and a nd its relation with the customers, their mode of operation, the names of banks under different groups and other such useful information’s are talked about. One more section has been taken note of is the upcoming foreign banks in India. The RBI has shown certain interest to involve more of foreign banks than the existing one recently. This step has paved a way for few more foreign banks to start business in India In such a situation the customer has become essential to gauge the competitor’s offerings in terms of innovative products and services to the customer and the reason behind customer’s loyalty to a particular bank. In this regards, the scope of the project covers analyzing the private sector banks bank s in India with special emphasis on the product portfolio, both corporate and retail, evaluating the thrust areas and strategies of these banks, and evolving a strategy for ICICI based on the above findings.
Kristu Jayanti College of Management & Technology 12
ICICI Bank The methodology employed for the above was secondary research backed by primary research in the form of interviews of bank officers and corporates. The study was limited to the Bangalore market.
ICICI Bank is India's second-largest bank with total assets of abou t Rs. 2,513.89 bn at March 31, 2006 and profit after tax tax of Rs. 25.40 bn for the year ended March 31, 2006 (Rs. 20.05 bn for the year ended March March 31, 2005). ICICI Bank has a network network of 741 branches (including 48 extension counters) and over 3300 ATMs in India and presence in 30 International locations. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross border needs of clients and leverage on its domestic banking strengths to offer products internationally. ICICI Bank is the most valuable bank in India in terms of market capitalization. ICICI Bank's equity shares are listed in India on the Bombay Stock Exchange and an d the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees. At June 5, 2006, ICICI Bank, with free float market capitalization* of abou t Rs. 480.00 billion (US$ 10.8 billion) ranked third amongst all the companies listed on the Indian stock exchanges. ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition
Kristu Jayanti College of Management & Technology 13
ICICI Bank of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, op erations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries.. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity.
Kristu Jayanti College of Management & Technology 14
CHAPTER 2 RESEARCH DESIGN
Kristu Jayanti College of Management & Technology 15
ICICI Bank METHODOLOGY PURPOSE:
Indian banks find themselves in a scenario of tighter regulation, global and domestic economic slowdown, half-baked reforms, dwindling industrial performance, and a prolonged lull in the capital market, increasing competition, excess liquidity and narrowing array of development avenues. In such a situation the customer has become prime importance. To stay one up in competition it has become essential to gauge g auge the competitor’s offering in terms of innovative products and service to the customer and the reasons behind customer’s loyalty to a particular bank.
In this regards, the scope of the project covers analyzing the private sector banks bank s in India with special emphasis on the product portfolio, both corporate and retail, evaluating the thrust areas and strategies of these banks, and evolving a strategy for ICICI based on the project findings.
To identify and study the main banks ban ks in the private sector in India competing with ICICI banks, and gauge the strategy followed by each competitor bank and thrust areas.
To identify the clients of these banks in Bangalore Ban galore and analyze the marketing channels used by various banks to push their products.
To identify and study the main banks in the private sector in India competing with ICICI bank.
To compare various banks with respect to specific retail products such as retail loans, cards, salary a/c and NRI service.
To evolve a strategy for ICICI bank to follow based on project findings.
Kristu Jayanti College of Management & Technology 16
The study was exploratory in nature with primary data being collected though questionnaire and balance sheets administered to a sample of 50 respondents. A personal interview was conducted with respondents. Some of the questionnaires were filled up after a small conversation relevant to the subject of the study. The questionnaire was structured with both open and close-ended questions. The balance sheet also served the purpose of calculating the various ratios. Analysis, tabulation and interpretation of the data were done accordingly and conclusions were drawn. Thus the questionnaire and interview method along with the balance sheets were adopted for the purpose of research.
AREA OF SAMPLING
The study was conducted in Bangalore.
A sample is a small portion of the population selected for observation and analysis. By observing the characteristics of the sample, one can make certain inferences about the population from which it is drawn. A population is any group of individuals that have hav e one or more characteristics in common and are of interest to the researchers. The sampling technique adopted was convenience sampling. Non-probability samples that are unrestricted are called convenience samples; they include informal pools of neighbors, friends, newspapers etc. In this study the size of the sample is 100 respondents and the sampling unit constitutes the employees at different level of bank s.
Kristu Jayanti College of Management & Technology 17
ICICI Bank DATA SOURCES
Both primary and secondary data are utilized for the purpose of this study. Primary data is collected by means of administering a questionnaire q uestionnaire to respondents and also through balance sheets. Secondary data was collected from newspaper, magazines, and Internet.
TOOLS FOR DATA COLLECTION
The questionnaire method, along with the balance sheets of the companies, was used as the main tools for data collection. The interview method was also adopted for the purpose of collecting primary data.
50 respondents were met and personally interviewed for the primary data of the survey. The survey was conducted in Bangalore, during the month of March and April 2007. An informal discussion with the respondents also was held to procure additional information and to probe feedback.
PLAN OF ANALYSIS
The data collected was tabulated and classified as required. Statistical techniques such as correlation analysis, bar charts, pie charts, histograms, matrix and, graphs etc, were adopted in the analysis. Conclusions were drawn based on the analysis and findings.
Kristu Jayanti College of Management & Technology 18
SCOPE OF PROJECT
To identify and study the banks in the private sector in Bangalore competing with ICICI bank.
Focus on specific retail products such as retail loans, salary accounts and NRI services: corporate products such as trade finance services, foreign exchange services and working capital finance of these banks with features wherever possible.
Compare the banks in respect to each product.
Attempt to gauge the strategy followed by each competitor bank and its thrust areas.
Identify the clients of these banks Bangalore. In this regard, take a look at the marketing channels used by various banks to push tier product.
Evolve a strategy for ICICI bank to follow based on the above findings.
The sample size was limited to only 50 respondents.
Time was major constraint.
The study was confined to Bangalore.
To obtain information particularly in respect of the functioning of b anks is a sensitive and secret aspect, thus some respondents were reluctant to answer the questions.
Nevertheless in spite of the aforesaid hindrances, the findings and conclusions throw light on aspects whose authenticity cannot be rejected.
Kristu Jayanti College of Management & Technology 19
Profile of the Industry and Compan pany
Analysis of the Data Collected
Findings ngs, S Su ugge ggestions and Conclusion
Kristu Jayanti College of Management & Technology 20
CHAPTER 3 PROFILE OF THE COMPANY
Kristu Jayanti College of Management & Technology 21
Industry Profile Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not n ot only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors.
For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian b anking system has reached even to the remote corners of the country. This is one of the main reason of India's growth process.
The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14 major private banks of India. Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days. Now it is simple as instant messaging or dial a pizza. Money has become the order of the day.
The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below: •
Early phase from 1786 to 1969 of Indian Banks Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.
New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991.
Kristu Jayanti College of Management & Technology 22
ICICI Bank The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders. In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935.
During the first phase the growth was very ve ry slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. During those day’s public has lesser confidence in the banks. As an aftermath deposit mobilization was slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Moreover, funds were largely given to traders.
Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. It formed State Bank of India to act a ct as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country.
Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th
Kristu Jayanti College of Management & Technology 23
ICICI Bank July, 1969, major process of nationalization was carried c arried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country were nationalized. Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking segment in India under Government ownership. After the nationalization of banks, the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11,000%. Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions.
This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalization of banking practices.
The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money.
The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as o ther East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure Company Profile
Kristu Jayanti College of Management & Technology 24
ICICI Bank Introduction
ICICI Bank is India's second-largest bank, with total assets of abou t Rs.1, 676.59 billion on 31 March 2005. ICICI Bank began its life 1994 as a s a wholly-owned subsidiary of ICICI Limited, an Indian financial institution, whose shareholding in the bank was reduced to 46 per cent through a public offering of shares in India in 1997-98, an equity offering in the form of ADRs listed on the NYSE in fiscal 1999-2000, the ICICI Bank's acquisition of Bank of Madura in fiscal 2000-01, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. In 2002, ICICI was merged with ICICI Bank to combine the wholesale and retail operations of both organizations into a single entity. (ICICI, or the Industrial Credit and Investment Corporation of India was formed in 1955 as a development financial institution at the initiative of the World Bank, the Indian government and representatives of Indian industry.) ICICI Bank's shares are listed on the Bo mbay Stock Exchange and the National Stock Exchange of India Limited in India and its ADRs are listed on the New York Stock Exchange. Business
ICICI Bank offers a range of banking products and financial services to corporate and retail customers through several delivery channels and specialized subsidiaries and affiliates. The areas include: investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank set up its international banking group in fiscal 2002 to cater to clients' cross-border needs. It currently has subsidiaries in the UK, Canada and Russia, branches in Singapore and Bahrain, and representative offices in the US, China, UAE, Bangladesh and South Africa.ICICI Bank, which accepts deposits under various savings and fixed schemes, offers a range of loans for various purposes, including housing, cars and 2-wheelers, commercial vehicles, farm equipment, medical equipment, office equipment and construction equipment. The bank also has a popular credit card business.
Kristu Jayanti College of Management & Technology 25
ICICI Bank Location
ICICI Bank has a network of about 573 branches and extension counters and over 2,000 ATMs History of ICICI Bank
1955 : The Industrial Credit and Investment Corporation Corporation of India Limited (ICICI) (ICICI) incorporated at the initiative of the World Bank, the Government of India and representatives of Indian industry, with the objective of creating a development financial institution for providing medium-term and long-term project financing to Indian businesses. Mr.A.Ramaswami Mudaliar elected as the first Chairman of ICICI Limited : ICICI emerges as the major source source of foreign currency loans to Indian industry. Besides funding from the World Bank and other multi-lateral agencies, ICICI also among the 1956 : 1958 : 1960 : 1961 : 1967 : 1969 : 1972 : :
first Indian companies to raise funds from International markets. ICICI declared declared its first first Dividend Dividend at at 3.5%. 3.5%. Mr.G.L.Meht Mr.G.L.Mehtaa was appointe appointed d the 2nd Chairm Chairman an of ICICI ICICI Ltd. Ltd. ICICI buildi building ng at 163, Backbay Backbay Reclamati Reclamation on was inaugurated inaugurated.. The first first West German German loan of DM 5 million million from from Kredianstal Kredianstaltt was obtained obtained by ICICI. ICICI. ICICI made made its first first debenture debenture issue for for Rs.6 crore, crore, which was oversub oversubscri scribed. bed. First two two regional regional offices offices in Calcutta Calcutta and Madras Madras were were opened. opened. Second entity entity in India India to set-up set-up merchant merchant banking banking service services. s. Mr. H. T. Parekh appointed appointed as the third Chairman of ICICI.
1977 : ICICI sponsors the formation formation of Housing Housing Development Finance Corporation. Managed 1978 : 1979 : 1982 : : 1984 : 1985 : 1986 :
its first equity public issue Mr. James James Raj appoint appointed ed as the the fourth fourth Chairman Chairman of ICICI. ICICI. Mr.Siddhart Mr.Siddharth h Mehta appointe appointed d as the fifth fifth Chairman Chairman of ICICI. ICICI. Becomes the first first ever Indian borrower to raise European Currency Units. ICICI commences leasing business. Mr. S. Nadkarni Nadkarni appointed appointed as the the sixth Chairman Chairman of ICICI. ICICI. Mr.N.Vaghul Mr.N.Vaghul appointed appointed as the the seventh Chairman Chairman and Managing Managing Director Director of ICICI. ICICI. ICICI first Indian Institution Institution to receive ADB Loans. First public issue by an Indian
entity in the Swiss Capital Markets. : ICICI along with UTI sets up Credit Rating Rating Information Services of India Limited,
Kristu Jayanti College of Management & Technology 26
ICICI Bank (CRISIL) India's first professional credit rating agency. : ICICI promotes Shipping Credit and Investment Company of India Limited. (SCICI) : The Corporation made a public issue of Swiss Franc 75 million million in Switzerland, the first first public issue by any Indian equity in the Swiss Capital Market. 1987 : ICICI signed a loan agreement for Sterling Pound 10 million with with Commonwealth Development Corporation (CDC), the first loan by CDC for financing projects in India. 1988 : ICICI promotes TDICI - India's first first venture capital company. 1993 : ICICI sets-up ICICI Securities Securities and Finance Company Limited Limited in joint joint venture with J. P. : 1994 : 1996 : : : 1997 :
Morgan. ICICI sets up ICICI ICICI Asset Asset Management Company. ICICI sets up ICICI Bank. ICICI becomes the first company in the Indian financial sector to raise GDR. ICICI announces merger with SCICI. Mr.K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd ICICI was the the first intermediary intermediary to move away from single prime rate rate to three-tier prime
rates structure and introduced yield-curve based pricing. : The name "The Industrial Credit and Investment Corporation of India Limited” Limited” was : 1998 : : 1999 : :
changed to "ICICI Limited". ICICI announces takeover of ITC Classic Finance. Introduced the new logo symbolizing a common corporate identity for the ICICI Group. ICICI announces takeover takeover of Anagram Anagram Finance. ICICI launches launches retail retail finance finance - car loans, loans, house loans loans and loans for consume consumerr durables. durables. ICICI becomes the first Indian Company to list on the NYSE through an issue of
American Depositary Shares. 2000 : ICICI Bank Bank becomes the the first commerc commercial ial bank from India India to list list its stock stock on NYSE. : ICICI Bank announces merger with with Bank of Madura. 2001 : The Boards of ICICI ICICI Ltd and ICICI Bank approved the merger of ICICI with ICICI Bank. 2002 : Moodys' assign assign higher than sovereign rating to ICICI. : Merger of ICICI Limited, Limited, ICICI Capital Services Ltd and ICICI ICICI Personal Financial Services Limited with ICICI Bank.
Competitors of ICICI Bank
Kristu Jayanti College of Management & Technology 27
ICICI Bank With years, banks are also adding services to their customers. The Indian banking industry is passing through a phase of customers market. The customers have more choices in choosing their banks. Therefore there has been a heavy competition between the banks and within the bank. Some of the major competitors are as follows , they are namely:
1. ABN Am Amro Ba Bank 2. Citibank 3. HDFC Bank 4. Stan Standa dard rd Char Charte tere red d Bank Bank 5. UTI Bank 6. HSBC Bank 7. Canara Bank 8. Bank Bank of Baro Baroda da 9. Cath Cathol olic ic Syri Syrian an Bank Bank 10. City Union Bank 11. Deutsc Deutsche he Bank 12. Federal Federal Bank Bank 13. ING Vysya Vysya Bank Bank 14. JP Morgan Morgan Chase Chase Bank Bank 15. Syndicate Syndicate Bank 16. Vijya Vijya Bank Bank 17. Dena Dena Bank Bank 18. Taib Taib Bank Bank 19. Bank Bank of Ceylon Ceylon 20. Centurion Centurion Bank
Kristu Jayanti College of Management & Technology 28
ICICI Bank 21. South Indian Bank 22. United United Western Western Bank Bank 23. Scotia Scotia Bank Bank 24. BNP Pariba Paribass Bank Bank 25. Karun Vysya Vysya Bank 26. Indus India Bank 27. Laxmi Vilas Vilas Bank Bank 28. UCO UCO Bank Bank 29. Oriental Oriental Bank of Commer Commerce ce 30. Syndicate Syndicate Bank Banking services in India
With years, banks are also adding services to their customers. The Indian banking industry is passing through a phase of customers market. The customers have more choices in choosing their banks. A competition has been established within the banks operating in India.
With stiff competition and advancement of technology, the services provided by banks have become more easy and convenient. The past days are witness to an hour wait before withdrawing cash from accounts or a cheque from north of the country being cleared in one month in the south.
In India the banks are being segregated in different groups. Each group has their own benefits and limitations in operating in India. Each has their own dedicated target market. Few of them only work in rural sector while others in both rural as well as u rban. Many even are only catering in cities. Some are of Indian origin and some are foreign players.
Kristu Jayanti College of Management & Technology 29
ICICI Bank All these details and many more is discussed over ov er here. The banks and its relation with the customers, their mode of operation, the names of banks under different groups and other such useful information’s are talked about.
One more section has been taken note of is the upcoming foreign banks in India. The RBI has shown certain interest to involve more of foreign banks than the existing ex isting one recently. This step has paved a way for few more foreign banks to start business in India
Kristu Jayanti College of Management & Technology 30
OVERVIEW OF PARTICULAR BANKS
The following section presents an overview of seven private sector banks with special focus on unique products provided p rovided by them and their thrust areas.
ABN Amro bank
Basic facts Revenue- 4942.2 crores Net profit- 218.83 crores No: of branches- 16 No: of customers-12 lakhs (approx)
ABN Amro bank has been in India for more than eight decades now. Established in 1920 it was traditionally known as a “diamond- financing bank”. ban k”. In India it enjoys a strong image as a corporate bank ba nk with comprehensive global transactions. It is gradually increasing its real banking operations in India. As a first step it has acquired the retail operations of bank of America. With its alliance with Mellon trust, it has also become one of the world’s largest financial institutions providing global custody and local custody. It also has the distinction of being the first custodian bank to handle ADR/GDR transactions for a leading mutual fund in the country
Clients in Bangalore
Asea brown boveri nestle
Kristu Jayanti College of Management & Technology 31
Features The bank charges an over limit fees from the customers if the
Loan against shares
amount of principal interest thereupon goes beyond 60%of the value of deposits A time frame of one month is given to the customer before the shares are sold off It also provides loyal discount to the borrowers at the time of renewal of the loan at the end of the year Saving account of women requiring a minimum balance of
Rs.5000 Free e-mail and sms alerts are given Personal loans specially for women working Corporate Quick enquire id
Features A quick enquire of id and pass word is provided so
that the clerks in the company can make enquires and keep track of balances
A transaction password is also provided to the company so that the officers can use it to request DDs etc
Van Gogh banking
This essentially is an additional feature Exclusive banking for customers with balances more than 2025 lakhs The investment and banking aspect of the account is handled by two different people Features of online banking and 24 hours banking is also
provided Nominated by RBI to import golds,silver and platinum Trading in bullion
Kristu Jayanti College of Management & Technology 32
ICICI Bank The bank charges a commission over and above the Liquidity management
international price of gold and silver Zero balance account permitting a customer to sweep funds to centralized position so that credit balances fund the debit balances
Trust areas of the bank
A. Corporate a. Trade finance finance services services are the the core streng strength th and princi principal pal thrust thrust area area for ABN ABN Amro bank. b. The bank also has has a centralize centralized d trade financi financing ng processing processing center center offeri offering ng advisory services to exports. c. The bank was nominate nominated d by RBI to to import import gold, silver, silver, and platinu platinum m from overseas suppliers for bullion trading in India. d. It has also also entered entered into an allianc alliancee with a local local registrar registrar and and transfer transfer agency agency to offer this service to mutual funds. e. This interb interbank ank FX desk desk is one of the leading leading market market in in spot and and forward forward Indian Indian rupees. f. The bank is looking looking at a platf platform orm for scaling scaling global global transacti transaction on services services busines business, s, covering trade services, cash management services and payments.
g. The bank bank has also also launched launched global support support services services in Chennai. Chennai. h. The bank bank is also also planni planning ng to establi establish sh call call centers centers in India. India. i.
ABN Amro Amro brought brought about the the first first syndicatio syndications ns deal based on on letter letter of credit credit in India.
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ICICI Bank B. Retail
a. The bank is increas increasing ing its number number of ATM’s ATM’s providin providing g 365 days banking banking facilit facility. y. b. The bank also helps helps NRI’s NRI’s keep track of of values values of properti properties es and to go through through a property transaction. c. It also also provides provides legal advisor advisory y services services at concession concessional al rate to to its customers customers.. d. The bank bank is going going to to launch launch credit credit cards cards and debit debit cards cards in June. June. e. The bank bank offer offerss the best best rate ratess on fixed fixed depos deposits its.. f. The bank bank provides provides cash cash delivery delivery at the the doorstep doorstep to to all its custom customers. ers. g. Free insurance insurance service service provided provided on current current accounts. accounts.
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ICICI Bank No: of branches-NA No: of ATM centers-NA No: of customers-30 lakhs (approx)
Citibank started operation in India in 1902. it has been offering a wide range of services from cards and loans on the retail side to cash management and worldwide security services across the globe. The global corporate banking strategy of the bank was to grow business with local corporates and the public pu blic sector, as well as maintain our global relationship customers in the local country. But now the focus of the bank is to board base the five sectors into twelve industry specific areas.
Clients in Bangalore
Oracle India Pvt Ltd.
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ICICI Bank Retail Salary Account
Min balance 1000
Min balance of employees that a company should have is 5
Withdraw cash , take loans , paying utility bills. etc Provide information on credit cards , banking
Information encompasses reminders , alerts and
Electronic payment scheme
Can be accessed from anywhere
Customer can choose the frequency , mode of
receipt of information as well as contents Allow a customer to pay his or her credit card dues
without issuing a cheque
The customer has to authorize the bank to claim the
amount directly from the bank account Investment product combined with the life and disability features
6 different kind of investment option to choose from
Facility provided to NRIs Specifically designed for employee reimbursement
Minimum delay in getting bills settled Features Citicleared for metros
Corporate Cash management
Citispeed is for the 100 big cities
Citicheck is for the next 500 c class cities
Citianywhere is for all the places Disbursement product offering single window coverage
Offered through citidirect online banking
Customers can send future dated instruction
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Reconciliation and mis facility
Used to make statutory payments , utility payments ,
salary payments etc Electronic platform offering global multicurrency , multi
Asset based finance
Provides access to cash services ,security services,
global trade import services Equipment finance for SMEs to structured finance solutions like off balance sheet financing, portfolio management etc
Thrust areas of the bank
A. Corporate a. The bank continues continues to have have a corporate corporate focus focus with with the intenti intention on of retaini retaining ng its position in the sector. b. Capital Capital market market is major major thrust thrust area for for the bank. In In Bangalore Bangalore alone alone there are 5-6 5-6 people working on this area. c. Focus of the bank is on fee-bas fee-based ed services services with with particula particularr emphasis emphasis on cash cash management system. It pioneered this facility in India in 1986 an d continues to be a leader processing volumes to 6% if the GDP of India. d. Citibank Citibank is one of the the largest largest providers providers of of foreign foreign exchange products products in in India. It It is the leading derivatives house in India. e. Citibank Citibank has one of the largest largest overnight overnight positio position n limits limits approved approved by the reverse reverse bank. f. The bank bank provides provides support support service service for exposure exposure tracking tracking and manageme management nt systems. g. The bank also has has the distin distinction ction of being the the pioneer pioneer in securit securitizati ization. on.
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ICICI Bank h. ISO 9001 certif certificati ication on for cash managem management, ent, custodial custodial services, services, treasur treasury, y, and funds transfer and trade services. i.
Citibank Citibank is the leading leading player player handling handling bulk bulk dividend dividend and interest interest disburs disbursements ements for all major financial institutions, corporates, finance companies, PSU’s and mutual funds. In 2000, the market share of Citibank in corporate dividend disbursements was more than 60%.
The bank bank has been been targeti targeting ng corporate corporatess with with revenues revenues of $50 millio million n or less. less.
k. India’s India’s trucking trucking business business has been one one of the the targeted targeted sector sectors. s. l.
The strateg strategy y envisages envisages broad basing basing the earlie earlierr five focus sectors sectors (export, (export, software, transporter, manufacturer, dealer) into 12 areas with equal emphasis to all.
m. The bank is also helping helping multinational multinationalss setup shop in India while while at the same time taking Indian corporations abroad, thereby retaining both customers. n. Citibank Citibank is also also targeting targeting the growing growing SME SME sector in in keeping with with the trend. trend. o. The bank is also also planning planning to introdu introduce ce two new new products products outflow outflow busines businesss and broker back office clearing (of institutional clearers)
B. Retail a. In case of salary salary accounts, accounts, the bank targete targeted d mid sized sized corporates corporates to setup setup retail retail bank accounts for their entire staff. In three years the bank doubled its clients. b. Credit Credit cards have have been focus focus areas with with Citibank Citibank offering offering 12 differe different nt kinds of of cards. HDFC BANK
Revenue-Rs7108.7 crores Net profit-310 crores
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ICICI Bank No: of branches-182 No: of ATM centers-1054 No: of customers-23 lakhs approx
HDFC bank limited was promoted by India’s premier housing finance company. The housing development corporation limited (HDFC). Incorporated in august 1994, as a scheduled commercial bank it started operation in January 1995. It was amongst the first to receive approval from RBI to set up the bank in private sector. It entered in to strategic business collaboration with chase Manhattan bank linking HDFC’s India corporate clients to the chase network worldwide. In 2000, times bank limited was merged with HDFC bank doubling the number of branches as well as the customers. NRE and NRO accounts that were particularly non-existent grew as a result of the merger.
Clients in Bangalore
PSI data systems
Retail Features Defense salary account Salary accounts of defense personnel
Zero balance account
Free international debit cards
Free fund transfer facility Register for net banking facility
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Purchase and directly debited to the account of the customers and credited to that of the establishment
Corporate Supply chain
No need to carry cash or cards E-age savings account for people constantly on the move
Min wage quarterly balance is a signified lower 1000 1 000 Rs
Owner of a mobile phone Tracking and managing on line accounts
Bring together online accounts of HDFC bank , Citibank
and ICICI bank Features End to end e–commerce solutions for collecting from
Corporate internet banking
dealers and payment to suppliers suppliers
Reducing processing cost
Real time information ENET provides secure access to banking information
It offers 12 layers of application and system security
Customizable user interface Payment are effected by debiting the account of
Cash surplus service
Transactions are routed such that the merchant portal
does not get to see the credit card number Service related to investment of surplus banking
Selection of right investment for the desired maturity period and risk profile
Thrust areas of the bank A. Corporate
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ICICI Bank a. HDFC bank bank operates operates on three three horizons horizons – being a market market leader leader earning earning a regular regular revenue stream; focusing on the retail business that would contribute 15-20% growth. b. Income Income offering offering services services like like cash management management service services, s, custody custody services services and and distribution of financial products have been a thrust areas for bank. c. HDFC bank bank is a dominan dominantt player player in providi providing ng cash manageme management nt services services to to national and regional stock exchanges and is now clearing bank for the various stock exchanges. In fact, it is the only bank offering the entire gamut of capital market services. d. For online online trading trading,, the bank bank has tied up up with with 40 brokers brokers.. e. The bank has establis established hed e-net e-net with 60 60 corporate corporate custome customers rs to offer offer cash cash management services through the net. f. The bank bank is a member member of the the foreign foreign exchange exchange dealer dealerss associat association ion of India. India. g. It is the the first first private private sector sector bank to be authoriz authorized ed by CBDT to to accept direct direct taxes. taxes. B. Retail a. HDFC bank bank has been been focusing focusing the the retail retail side. It It is aggress aggressive ive on retai retaill assets assets through numerous retail products it offers. b. It is the the only bank bank to provide provide access to to all 3 major major internation international al card networks networks on its ATM network. The tie up with America express ex press in particular has helped the bank get several blue collared customers. c. The bank is pushing pushing defense defense salary salary accounts accounts and hopes hopes to have have the salary salary accounts of all the military personnel with in two years time. THE HONKONG AND SHANGHAI BANKING CORPORATION LTD. (HSBC)
Revenue-Rs 13731.9 crores Profit-Rs 301 crores No: of branches- 39
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ICICI Bank No: of ATM centers- 200 (approx) No: of customers-15 lakhs (approx)
HSBC, one of the world’s largest international banks, has been in existence in India for about 150 years. The bank opened its first bank – staffed agency in Calcutta in the year 1867. The bank has the distinction of being a pioneer in electronic banking in India with ATM’s, credit cards etc. It was the first bank in the country to introduce computerization, ATM’s etc. HSBC offers services ranging from current and savings account on the retail side to syndication and import export facilities on the corporate side. The bank focus is on-long term relationships with corporate clients based on its global connections and extensive knowledge of Asia and Asian business.
Clients in Bangalore
Price water house coopers
The oberoi group
Retail Private clients
Features One of the type of relationship banking
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Corporate Business account
No cheque bounce facility
Auto sweep facility Offer both personal and business insurance
Team of insurance professional design employee benefit
custody etc Deposit more than one lakh
programmes and insurance programmes for corporates Features Avg. quarterly balance of Rs25000
Door step banking, special ATM cards etc Similar to power vantage
Avg. quarterly balance of Rs100000
No bounce cheque protection facility
Telegraphic transfer, etc Bill sent directly to company
Given to employee based on net worth of the company 145 years of expertise in precious metals
Worlds leading bullion house
One of the 2 foreign banks b anks offering bullion trading in India
Thrust areas for the bank
a. Corporate Corporate and treasu treasury ry accounts accounts for for 80% of HSBC India’s India’s balance balance sheet. sheet. b. The bank is planning planning to focus on on the top top end of the the market market and expects expects to to earn Rs 75000 lakhs approx. from corporate finance. c. Concentratin Concentrating g on telecom, telecom, cement, cement, pharmace pharmaceutical uticals, s, FMCG and financia financiall services services market. d. Conver Convertt India India into into a global global proc process essing ing hub. hub.
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ICICI Bank e. Increase Increase investme investment nt in India India and make make India India the testin testing g ground for for products products and and services. f. HSBC’s HSBC’s strategy strategy is is to move move away from from being being a product product – based based selling selling strateg strategy y to a need based on by concentrating on customer relationship management (CMR) there by making quality of service as the differentiating features. g. Another Another thrust thrust area is insti instituti tutional onal banking banking where it it is among among the top players players.. h. With an existi existing ng 700 corporate corporate clients clients,, the group is is trying trying to increase increase the busines businesss from its global clients operating in India. i.
Offering Offering factori factoring ng solutions solutions to small small and and medium medium enterpri enterprises. ses. Also Also planni planning ng to launch products specifically for the SME segment.
j. The bank bank comman commands ds 45% of the the market market share share in the the bullio bullion n market. market. k. Custody Custody and clearing clearing servic services es commands commands close close to 50% 50% of the the market market cash management service is ISO 9002 certified. l.
HSBC is the the leader leader in providin providing g project project and export export finance finance services services to governments, blue chip corporates and top tier banks.
Thee bank Th bankss are are shif shifti ting ng tow towar ards ds ret retai aili ling ng ban banki king ng.. For For thi this, s, it has has mov moved ed
from the letter culture to the relationship culture. It has reoriented itself with wealth management to select individuals and target market and consumer banking and as its main priority. b. b.
Alli Allian ance ce wit with h Punj Punjab ab nat natio iona nall bank bank for for dis distr trib ibut utio ion n of cre credi ditt card cardss
Key Key retai etaill st strateg ategy y in cr cross oss sel selling ing of of prod produc ucts ts
Tie Tie up up wi with Tat Tataa AI AIG for for life and and gen gener eral al insur nsuran ance ce
Relationshi nship p discount on flexi finance
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ICICI Bank f.
Spec Specia iall off offer erss at at dif diffe fere rent nt rest restau aura rant ntss , hosp hospit ital alss and and shops hops
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Standard chartered bank opened its first overseas bank in India in the year 1858 in kolkata. It is one of the oldest foreign banks in India. The bank has a leadership in emerging markets having had activities in Asia, Africa, Middle East and Latin America. Subsequent to its merger with Grindlays bank to form standard chartered Grindlays in the year 2001, it has become the largest foreign bank in India. However it has been the subject of takeover speculation for a long time and is currently rumored to be in talks with citigroup and Barclays bank.
Clients in Bangalore
Asea brown boveri
Features Helps reduce interest on loan
A deposit surplus funds in the homesaver account, acco unt, reduces the balances outstanding on which interest is calculated effectively charging the EMI
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ICICI Bank Mileage
Cash overdraft up to 65%of value of car less than 5 year old
Service guarantee Reminders
Post dated cheques not required Every time a service is delayed beyond the guaranteed
time ,the customer can claim Rs 50 for each day of delay The bank reminders for all sorts of events including personal ones like wife’s birthday
The reminder alert will appear on the customers personal
home page With a confidential login and pass word, through bank
can transfer information to its customers Features Allow correspondent bankers to generate incremental
Corporate Private label
from trade in Asia
This is done by moving the domicile of the letter of credit issuance to hongkong to take advantage of the favorable pricing dynamics there
Facility of investing end of day cash balance in countries where regulations permit or the transfer of funds into and out of accounts after bank hours
Thrust areas of the bank
A. Corp Corpor orat atee
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ICICI Bank a. Stan chart chart is the no: no: 1 in treasury treasury in India India being being a market market leader leader in local local currency and money markets. In fact till about 1998 the bank invested in the retail sector, treasury was the only major contribute to revenues. b. Merchant Merchant banking banking and asset asset manageme management nt are going going to be the key focus focus areas for the bank on its corporate side. c. The composit composition ion of the the corporate corporate portfo portfolios lios is is 40% MNC’s, MNC’s, 15% 15% PSU’s PSU’s and 45% large sized companies. d. The bank bank is planning planning to focus on the Indian Indian debt market. market. e. Stan chart chart is a leader leader in trade trade finance finance and and provides provides expert expert assistance assistance with with letter letter of credit reimbursement. f. It is a leading leading cash managem management ent supplier supplier in in the emergi emerging ng markets markets with with cash product specialists and customer service centers providing customers with effective solutions. g. ISO accredita accreditation tion for the the operational operational capacit capacity y in international international trade. trade. h. Stan chart chart is is also also a top top private private sector sector bond arranger arranger..
a. The bank bank is tryin trying g to increas increasee its share in the the retail retail sector. sector. b. The bank is setti setting ng up kiosks in post offices offices around around to leverage leverage on the the distributi distribution on strength and customer base of the post office. c. As a part part of the the deal with with the postal postal department, department, the the bank is is planning planning to use use speed speed post to send its credit cards to its customers.
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ICICI Bank d. The bank is also also planning planning to launch launch exclusi exclusive ve credit credit cards for the the employees employees of dept. of post. e. Retail Retail banking banking contributes contributes close close to to 40% of the bank’s bank’s revenue revenue and is is expecteds expecteds to increase to 60% by 2005. f. Tie up up with with MUL to to extend extend finan finances ces to to its cust custome omers. rs.
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CHAPTER 4 ANALYSIS AND INTERPRETATION OF DATA
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GENERAL ANALYSIS OF THE BANK
This section compares the various private sector banks b anks using certain parameters for analysis. All the figures given are for the year 2004-2005 200 4-2005 given in crores of rupees.
ABN AMRO 12000
In case of revenues for banks, larger the revenue earned by the bank, the better it is as revenues contribute directly to the profitability of the bank. In this regard, Stan chart is the undisputed leader with revenues of Rs. 15,302.8 crores. ICICI bank follows up as close second with revenues amounting to Rs. 12, 056 crores.
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ICICI Bank NET PROFIT AND DEPOSITS
NET PROFIT PROFIT (RsCro (Rs Cro 4000
I I C C I
F C D H
B T G
I T U
T R A H C N T A S
B C S H
R O M A N B A
As in the case of any business, even in the case of the banking sector probability and sources of funds are important. As such, higher h igher the net profit and higher the deposits the better for the bank. While high profits are indication of the bank, high deposits speak of the extent to which the bank has been in a position to mobilize funds from customers. ICICI bank has both the highest net profit as well as the largest deposit base among the private sector and foreign banks that have been compared.
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8 INTEREST EST INCOM E/AV G WORKING FUND 6 NON INTEREST INCOM I NCOM E/A WORKING FUND 4
I I C C I
F C D H
B T G
I T U
T R A H C N T A S
R O M A N B A
B C S H
Measured in terms of interest income/ average working wo rking funds, it speaks of the extent to which the funds have been deployed effectively to earn interest revenue for the bank. Higher this ratio the better. On this parameter, Stan chart is the most efficient of all the banks. ICICI bank’s performance is close to the average performance of the banks.
Measured in terms of non-interest income/ average working wo rking funds, this ratio speaks of the amount of fee-based income that a bank can earn from its working funds. Judged on these parameters, the performance of GTB surpasses that of all other banks. ICICI bank with a ratio of about 2.01 is once again close to the average performance of the banks.
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5 4.5 4 3.5 3 OPERATING PROFITS IT S
AV G WORKING FUND
OTHER INCOM E / NET INTERE INTEREST INCOME I NCOME
1.5 1 0.5 0 Figure 4
Judged on the basis of operating profit/ avg-working funds, it speaks of how profitably the funds of the bank have been used. Stan chart is the leader in this arena with a ratio of 4.15. ICICI bank is way below this figure with a ratio of 2.12 indicating that the funds probably have not been utilized properly. Taken as a ratio of other income / net interest income, the ratio speaks of the ability of the bank to work on lower spreads. Based on this parameter, the performance of ICICI bank is way beyond that of the other o ther banks speaking of the ability ab ility of the banks to cut down interest rates if the need arises.
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50 45 40 35 30
BUSINESS PER EMPLO
OPERATING OPERATING PROFIT PR OFIT PE EMPLOYEE
20 15 10 5 0
I C I I C
F C D H
B T G
I T U
T R A H C N T A S
B C R O S M H A N B A
Productivity of the bank has been measured in terms of the business and profitability per employee. It speaks of whether the bank is over or understaffed. Based on these parameters, ICICI bank is leader with the highest ratios for p roductivity based on both business per employee and revenue per employee.
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ICICI Bank Net NPAs / Net Advances (%) 4.5 4 3.5 ABN AMR
1 0.5 0 Figure 6
Asset quality measured in terms of net NPA’s as a percentage of net advances speak of the assets that are doubtful to return the interest due in the near future. Judged on this basis, ABN Amro bank has been b een most judicious in its lending’s. the performance of ICICI bank is close to average performance for all the banks.
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RETURN ON ASSETS
3 ABN AMR 2.5
UTI GTB HDFC
0 Figure 7
HDFC 1 .9
U TI 0.7
Measured in terms of return on assets, it speaks of how successful the management was in using the assets judiciously. On this parameter Stan chart once again out performs the remaining banks. The performance of ICICI banks is again close to average performance of the banks.
TRENDS AMONG THE PRIVATE INDIAN BANKS
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ICICI Bank Analysis made on the basis of any one o ne year’s figures could always lead to faulty conclusions as the year of review could have been an exceptional case. For example around the year 2006 ICICI bank went in for its ADR and this could have affected the return on assets of the bank. As such the consolidated figures of ICICI bank and ltd have been taken and compared with the figures of the other banks for the year 2004-2005. While the scope for error is still present as two years in still not a good indicator, the fact that any banks have not published the audited results for the year 2005 has been a constraining factor in this regard.
ICICI Branches 2 004 2 005
8 20 2 56 1 40 0 5 18 Size of the bank
15 0 31 0
Deposits ( in crores) 2 004 2 005
4 73 78 3 26 58 6 57 49 4 87 59 Net profit ( Rs in crores)
2 1 7 34 3 4 9 76
1 892 4 2 798 5
2 004 2 005
1 10 0 6 57 1 41 1 9 93 Operational Efficiency
26 5 35 7
Interest income / Avg Working funds 2 004 2 005 2 004 2 005
Table 1 A look at the ratios and figures and both for 2004 and 2005 reveals that as compared to all the other banks in the private sector in India, ICICI bank has grown by leaps and bounds. Its branch network has increased and so has its deposit base. But this was primarily due to the merger between ICICI bank and the bank of Madura. However, the profitability of the company has dropped drastically. This drop has co me primarily from the corporate lending of the erstwhile ICICI ltd. The net profit as well as the non interest income continues to be way beyond the income of the other three banks in the private sector. Similarly is the case with earning quality ratios. The fall in the profitability has also affected the productivity ratios of the bank.
As far as the banking sector is concerned, banks in India have turned risk averse. Banks, which are predominant financial intermediaries in the economy, are turning in to business that has to be profitable. Banks are more interested in putting their money into risk free government securities rather than to the industry. The reason for this could be that lending to the industry entails higher risk, which impacts the banks capital adequacy forcing the bank to raise equity, which is difficult in a barely active capital market. The very fact that most of the foreign banks bank s have treasury services as a thrust area proves the point that banks are averse to lending to corporates.
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ICICI Bank While the importance levied on profitability has increased tremendously, banks on the size are levying an almost equal importance. To fight foreign banks with global presence, banks today have to be “big”. And size here is not no t just in terms of asset base but I also in terms of geographical research. And to do so a vast majority of the banks going in mergers. This is evidence by the plethora of mergers that have been taking place in the last two years. Size is of importance t cut costs. If a bank wishes to become a universal bank provided solutions to al the financial requirements of an individual or corporate, if it wishes to have to ensure that they are big enough to provide services that reach the customers.
Apart from size, one area that is gaining importance is the sector of fee-based income. Being a risk free source of revenues, banks are more and more concentrating on pushing fee-based activity. The market size of the fee-based activity is about Rs.111.1 bn. This sector grew at about 83% the net increase in interest income in 2001 and amounted to about to about 50% of interest income.
One other trend that has happened in the banking sector is the focus being levied upon the retail side. It has been recognized that the retail lending attracts far greater spreads and are a whole lot less risky than corporate lending. As such banks are using u sing technology to increase their offerings to the retail customers. Be it establishing more ATM’s or introducing phone banking, internet banking and mobile banking, retail customers is gaining importance today.
COMPARISON OF SPECIFIC PRODUCTS ACROSS BANKS
The section provides a board comparison of certain products across banks on the basis of the essential features of the products. Specifically, we take a look at loan products, credit cards and ATMs.
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ICICI Bank COMPARISON OF LOAN PRODUCTS The loan products offered by various private sector banks and foreign banks have been compared to various parameters and an effort has been made to find the bank that makes the best offering to the customer in each of the loan categories.
U TI Up to
Citibank Standard NA
chartered Up to #
AB N Amro #
90% Old car up to Interest
80% New car
4 yrs 2 days
months 2% if 4% if
if loan<1 lakh Repayment Max of 5 Processing
yrs 4 days at
maximum Allowed 6 months
Allowed After 6
to 5 years 2%
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3 years No
Car loan offered to customers have been compared primarily on the basis of loan amount, interest rates, processing fees, pre-payment fees and processing time. The comparative table reveals that of all the banks, the interest rates offered by HDFC bank are the most competitive. HDFC bank offers the lowest rate of 12.5% for a small segment car as against the other banks that charge a minimum of 14.5%. Additionally the bank does not charge any processing fee at the time when 2% seems to be the norm. the offering of HSBC is also very similar to that of HDFC bank ban k with an interest rate that is 0.5% points po ints higher. Additionally they also charge a processing fee of 2%. But with a processing time of just 48 hours it is likely to be the best alternative to a retail customer.
As compared to those two banks, ICICI bank offers as much higher rate of 14.5%. But then this is on par with most of the other banks in the private and foreign sector. Further, ICICI bank processes its loan in 4 days, which is significantly lesser than all other banks. With most of its other features on par with the other banks, ICICI bank is likely to be the third choice for all retail customers.
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ICICI Bank Features
Eligibility 21-65 yrs Inter nteres estt rat rates es Adj Adj 11% 11% Service
24-60 yrs Max
Fix 12% 1%
chartered 24-53 yrs 11.3%
25-60 yrs 16.5%
0.5% for customers, 0.75% for power vantage customers.1%
20 yrs 14 days
15 yrs 15 days
15 yrs NA
15 yrs 7-10 days
for premier. 15 yrs 10-15 days
Yes only if
Only if loan
you are soft
is more than
professional Up to 85%
Up to 80%
Up to 80%
Up to 85%
Up to 85%
of 30 lakhs Table 3
In case of home loans, it has been assumed that the principal factors that would influence the decision taken by a customer would be a loan amount, interest rates, repayment period and the service charge. The various banks have been evaluated on the features. At the out set it appears that both Stan chart and ICICI make offering that are equally competitive. However ICICI bank charges a marginally lower rate both for interest and
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ICICI Bank for service charge. Additionally they also give a repayment period of 20 years as against Stan chart that offers only 15 years. While ICICI bank does charge a pre-payment fee of 2%, it is assumed that this is not a major consideration for a customer who takes a loan. As such ICICI bank scores better than the other banks in the offerings it makes and is likely to be the first choice for a customer looking for home loans.
LOANS AGAINST SHARES
form Up to
60% of 200000
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ICICI Bank Interest rates
less,0.5%for customers,0.7 5%for power vantage customers,1%
for premier 1 week
fees Over limit
banking Table 4
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ICICI Bank Loans against shares have been compared on a number of features, the most important being interest rate and processing time is particularly important in themselves are liquid securities and in case of need a customer can always choose to sell the shares if he/she wanted the money urgently. The rates offered by ICICI bank at 14% are the most competitive. The processing time of about 4 days is also among the lowest. On this basis it can be said that the offering of ICICI bank is most attractive. Particularly so since all the other features like ATM cards are also a lso provided by the bank. Competition for the ICICI bank would be from HDFC bank, which offers loans at 15%.
TWO WHEELER LOANS
Features Loan amount Interest rates Processing fees Repayment Processing time Pre-payment Pre-payment fees Guarantor
ICICI bank Up to 85% NA 2% 3 yrs 48 hours Allowed 2% NO
HDFC bank Up to 90% Max 11.5% 2% 3 yrs 48 hrs Allowed 0 NO
In the two wheeler segment, there are only two players- HDFC bank and ICICI bank. None of the other private sector banks or foreign banks offers two wheeler loans and any person seeking to buy a two wheeler would have to take a personal loan to do so. Of these two banks, the terms of offering o ffering of HDFC bank is more competitive as compared c ompared to those of ICICI bank. Their interest rates are a competitive 11.5% and they don’t charge
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ICICI Bank any payment fee. However given the fact that ICICI bank makes most of the other offerings, a retail customer might choose ICICI bank makes most of the other offerings, a retail customer might choose ICICI bank just a frequently as HDFC bank. In other words the competition is pretty p retty stiff.
COMPARISONS OF ATM
ATM cards Bank name
C I TI
account account account account account
only Withdrawal Rs
Rs 30000 Rs
Elig Eligil ilib ibil ilit ity y
Savi Saving ngss All
U TI All
per day per day per day per day per day for all saving account holders and 100000
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ICICI Bank per day for all current account holders
Services Account Mini
Withdrawal Withdrawal Withdrawal
withdrawal, and deposit
cheque , payments
Rs 100 in
Rs 250 in
recover Rs 100 in
Rs 200 in
case of loss
case of loss
case of loss
case of loss
Rs 200 in
card Table 6
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The offerings most of the banks are the same in case of ATM card. However the withdrawal limit incase of HSBC is better than Citibank o r Stan chart in the sense that the current holders of HSBC can withdraw greater amounts.
ICICI not only offers a lower withdrawal limit but also charges the highest penalty n case of replacement of card.
COMPARISON OF GOLD CREDIT CARDS
preferred Master and
standard Both master Master and
Vali Validi dity ty Joining fees Add on
visa Inte Intern rnat atio iona nall NIL Rs 5000
Inte Intern rnat atio iona nall Rs 3000 Rs 3000
and visa Inte Intern rnat atio iona nall Rs 5000 Rs 5000
visa Inte Intern rnat atio iona nall NIL NIL
Inte Intern rnat atio iona nall NA Rs 5000
Rs 25000 for 40% of the
30% of the
40% of the
60% of the
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ICICI Bank withdrawal
the fi first ye year credit limit
& then 60% of the credit limit
withdrawal Credit li limit
Rs 30 30000-Rs
Interest rate Late fees
250000 2.95% 5%
300000 2.5% 15% of the
1.75% 15% of the
Rs300000 2.95% Rs 1000
min amount 52 days
min amount 52 days
report it is
the liability to the customer Table 7
In case of credit cards, it has ha s been assumed that the chief factors that make a difference to the decision taken by a client are credit period, credit limit, interest rates, cash withdrawal and annual charge. The comparative given above reveals that the offering of Citibank, UTI, and Stan chart are all attractive. The terms offered by ICICI though not the best in
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ICICI Bank the market is either very close to the best in case of credit period of o f 50 days with that of Stan chart or are comparable with the market average.
CHAPTER 5 SUMMERY OF FINDINGS, CONCLUSION AND RECCOMANDATION
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The old prophecy that once a customer is a customer has become a myth in the present day competitive world. Brand image on banking sector no longer works a magic with the consumer. So to hold the customer to the bank and attract new consumers the ICICI Bank must come up with strategies that is efficient and competent in the present scenario. After analyzing the response of the respondent through questionnaire and observation the following were found in the study.
In the case of revenue of banks, Standard Chartered bank is the undisputed leader. ICICI follows up as second in revenues.
In the case of net profit and deposits ICICI bank is leading with both the highest net profit and largest deposit among the private sector and foreign banks.
In the case case of operat operating ing effici efficienc ency, y, standa standard rd charte chartered red bank bank is the most most efficient of all the banks. Avg performance is shown by ICICI bank.
In the case of earning quality, standard chart is the leader in this arena with a ratio of 4.15. ICICI bank is way below this figure with a ratio of 2.12 indicating that the funds probably have not been utilized properly.
In the case of productivity, ICICI is the leader with the highest ratio of productivity based on both business per employee and revenue per employee.
In the case of asset quality, ABN Amro bank has been most judicious in its landings. ICICI bank is close of Avg performance for all the banks.
In the case of management quality, stand chartered once again out performs the other banks
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ICICI Bank RECOMMENDATIONS
Based on the findings regarding the performance and thrust area of the other competing private sector and foreign banks, the trends in the banking sector and the future of the sector as such an attempt has been made to point our areas that the bank can possibly concentrate upon.
1. Continue Continue focus focus on cash cash management management service service:: with more more and more more companies companies preferring to outsource their collection and payment, the sector fee based activity growing. Given the vast geographical presence of ICICI bank that can be leveraged upon, the bank is better placed to offer these services at a competitive rate as compared to foreign banks.
2. Continue Continue targetin targeting g SME segment: segment: small small and and medium medium enterpris enterprises es through through in existence for long, have gained prominence only in the recent past. In fact ICICI bank got this segment as a result of their merger with the bank of Madura. The foreign banks have also only just started targeting this segment. As such leveraging on the expertise of the personnel of bank of Madura, ICICI bank ca try to move faster than competitive and make use of the first move for merger.
3. Focus on FX services services:: FX services services are are an area that is is being concent concentrated rated upon upon only by one bank- Citibank. None of the other banks are targeting this product. With Indian industries looking for a global presence, the need for this product is likely to grow. That apart, FX services from close to 13% of the market for fee based product. With that market growing, FX services would also grow. As such, ICICI bank could target this product and try to make attractive offerings to the clients in the sector.
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ICICI Bank 4. Provide Provide advisory advisory services services via via specialist specialists. s. The bank could could appoint appoint specialist specialistss in certain definite industrial sectors who would not only evaluate projects for the bank but would also give advisory services to the clients on the changes that make in their investment. This person could be independent of any financing that the bank would so that there is no clash of interest for him has evaluated the projects.
5. Single Single point interfac interface: e: one of the complai complaints nts that clients clients had had against against private private sector sector and foreign banks was that, the company had to deal with multiple managers depending upon the products that the company required. That is, for cash management services there was one relationship manager, while treasury had another. The companies found this highly disconcerting and preferred to deal with a single individual from a bank, which could in turn interact with his colleagues.
6. Decentraliz Decentralization ation of decisi decision on making: making: another another complaint complaint that client clientss had against against banks was that there was a delay information transfer and approvals, primarily because all banks branches had ha d to contact the officials in their head offices before approving clients. Decentralization on behalf of the bank would solve this problem.
7. Flexibilit Flexibility y and personali personalization zation of servic services: es: yet another another reason, reason, that that some some of the companies mentioned, for their sticking on to the public sector banks was the rigidity and impersonal touch with the foreign and private p rivate sector banks.
8. Collecting Collecting bank bank for direct direct and indirect indirect taxes: taxes: an offshoot offshoot of the the fact that that clients clients dealing only with one or two foreign banks were dealing with HDFC bank because of their statues of being a collecting banker for direct taxes.
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ICICI Bank Retail sector
1. Loan against against shares shares and house house loans: loans: given the the growing growing importance importance of the the retail retail sector and the bank offerings being the strongest in case of house loan and loan against shares, ICICI bank could look at pushing home loans and loan against shares.
2. Tie up with with American American expres express: s: ICICI ICICI bank could could look look at possible possible tie tie up with with American express not only for traveler’s cheque but also for providing ATM facilities to the customers of American express. This would get them high net worth clients.
3. Continue Continue corporate corporate credit credit cards: cards: corporate corporate credit credit cards cards would help help employees employees pay pay official bills through cards. This would save both then and the company the trouble of reimbursing the expenditure.
4. Electronic Electronic clearing clearing house: house: with with RBI giving giving it approval approval for establ establishme ishment nt of an electronic clearing house by the banks, a move in this direction would help banks hasten their clearing process and provide retail- time on-line service to their clients that would help corporate.
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A careful study has been done in the sector of commercial banks in Bangalore to evolve a competitive strategy for ICICI Bank through questionnaires, observation, interviews and through proper guidance of respective faculties.
The study which lasted for one month has provided information to understand the working of different Banks in Bangalore and their strength and weakness. The project covers analyzing the private sector banks in India with special emphasis on the product p roduct portfolio, both corporate and retail, evaluating the thrust areas and strategies of these banks, and evolving a strategy for ICICI.
The study is restricted to 6 Banks namely Amro bank, Citibank, HDFC bank, HSBC, Standard chartered and UTI bank ban k and the facts clearly shows that Standard Chartered Bank leads in revenue terms whereas ICICI leads in case of deposits & revenue. In the case of operating efficiency Standard chartered bank is on the top that means it is the most efficient bank. In the case of management quality, once again Standard chartered is at the top.
The study helped me to understand that the organisation (ICICI Bank) is facing a sever competition and it affects the profitability of the Bank. I was also able to understand some of the draw backs and problems of the ICICI Bank such as Decentralization of decision making which make delay in information transfer and approvals, non flexibility and personalization of services, non availability a vailability of specialist to advice the banks clients on various investment. I hope that if the bank is managed to overcome these draw backs and problems, it can increase its efficiency.
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Capitaline database from the college.
Magazines, journals etc.
Financial management book.
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Questionnaire for HDFC bank (Questionnaire No 1)
1. “……to “……to remain the the clear market market leader leader in mortgag mortgages es in India”. India”. Mortgages Mortgages as in in retail loan? What part of HDFC’s corporations does a mortgage form? What is HDFC’s share in the mortgages market? 2. What What is HDFC’ HDFC’ss share share in the the bankin banking g sector sector 3. “the bank bank signed signed a strategi strategicc business business collabor collaboration ation agreemen agreementt with chase chase Manhattan bank in February 1999.” To what end? How did HDFC gain? Is it looking at a possible merger? 4. Times Times bank amalgama amalgamationtion- what what value value did it add in terms terms of branch network network,, geographic reach, customer base, alternative delivery channels? 5. Leader in cash manageme management nt – what is HDFC’s HDFC’s share? share? How How do you diffe differenti rentiate ate your service? Leader in what sense – volume of transaction or no. of customers? 6. What are are HDFC’s treasuries treasuries operati operations ons like? like? How it is positi positioned oned with respect respect to to competitors? 7. In case case of corporate corporate banking banking// retail retail banking, banking, what is HDFC’s HDFC’s thrust thrust area? area? 8. Is a defense defense salary salary account account any differ different ent from a normal normal salary salary account? account? If If so what are additional features available on the defense salary? 9. Sweep-in-fa Sweep-in-facili cility ty – is it not not available available for all all fixed fixed deposit deposit accounts? accounts? 10. Where is HDFC HDFC placed among among the banks in India? India? 11. Who are HDFC’s HDFC’s major competitor competitors? s? 12. Which sector is HDFC targeting? Small scale, medium scale scale or large scale? 13. How deep is HDFC’s dealing in the forex market? 14. CMS is one of our thrust thrust areas. What is HDFC doing to promote this area? 15. How does HDFC market its products? Is HDFC planning to enter bank assurance?
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Questionnaire for UTI bank (Questionnaire No 2)
1. “UTI provides provides an an integrated integrated service service to an acquire acquire ranging ranging from from strategi strategicc vision through to completing the deal de al & integrating the acquired business”. Who exactly are the clients and what are the services provided? 2. What are the the corporate corporate clients clients of UTI UTI bank? Is bank bank targeting targeting any any particular particular segment like say the large or the medium enterprises? 3. No of of corpo corporat ratee clien clients ts UTI has? has? 4. What What is the the revenu revenuee per cust custome omerr for UTI? UTI? 5. % shares shares both both in in corpora corporate te and and retail retail sect sector? or? 6. Reve Revenu nuee per per bra branc nch? h? 7. No of of cust custome omers rs per employ employees ees?? 8. Reve Revenu nuee per per ATM ATM?? 9. Do UTI UTI offers offers intere interest st opti options ons?? 10. Who are the major clients of UTI? What is the the maximum amount lent to any one customer? What is the basis by which UTI is differentiating its products vis-à-vis its competitor’s products? 11. what is nature of tie tie up that UTI bank is planning planning with Belgium financial group Forties? 12. UTI has set June’ 02 as the deadline for preferential preferential allotment of shares to to the foreign strategic partner… how far has the discussion progressed? 13. How far has UTI’s plan of financing Tata steel succeed? 14. Did the tie up between UTI and exim bank finally finally work out? 15. You have a service ‘call linked products similar to MIB OR debentures’… what exactly is this? How does it vary from MIBOR debentures?
Questionnaire for Citibank
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(Questionnaire No 3)
1. Is a card a thrust thrust area area for Citibank Citibank?? If so, what what is Citibank Citibank doing doing to promote promote its cards? 2. How many many banks in India India have an associa association tion with with all the three three card servic services es providers? Has any special benefit accrued to Citibank as a result of this association? 3. What is is the minimum minimum no no of employee employeess required required to start start a suvidha suvidha account account?? 4. How successf successful ul has net net banking banking been? How How many customer customer use net net banking? banking? 5. What What is the the total total no of custom customer er Citib Citibank ank has? has? 6. What is is the total no of ATM centers centers that Citib Citibank ank has? 7. What is is the revenue revenue per per customer, customer, revenue revenue per per employee employee and revenue revenue per ATM for Citibank? 8. Does Citiban Citibank k also have have some sort sort of a portfolio portfolio investm investment ent scheme? scheme? 9. Who are are Citibank Citibank competitors competitors in the the retail retail segment segment?? 10. Who are Citibank’s Citibank’s major competito competitors? rs? 11. What is Citibank’s share in the Indian baking sector, sector, specifically in the corporate corporate and retail sector? 12. What is the net return return that Citibank gets from from a corporate? 13. What is Citibank Citibank doing to push cash management service and capital market products which are thrust areas for the bank? 14. Are there any innovative products that Citibank offers? What What has the customer response to such products been? 15. In the banking sector, sector, a bank can survive survive and get clients clients only through through differentiation… how does Citibank differentiates its service?
Questionnaire for Stan Chart Bank
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(Questionnaire No 4)
1. What is is the total no of branches branches that that Stan chart has in India? India? 2. What is is the total no of ATM centers centers that Stan Stan chart chart has? has? 3. What is the the total total no of custom customers ers Stan Stan chart chart has? has? 4. What is is the % of of share share of Stan chart is is corporate corporate and and retail retail segment? segment? 5. What is is the revenue revenue per custom customer er per customer customer for Stan chart? chart? 6. What What is the revenu revenuee per per branc branches hes?? 7. What is is the no of of customer customer per per employee? employee? What What is the revenue revenue per ATM? ATM? 8. How often often is it that that you fail fail to live live up to the services services you you promise promise to provide provide and are forced to pay the Rs.50 per day penalty? 9. “Stan chart chart has mainta maintained ined a long presence presence,, since 1858, 1858, with particu particular lar emphasis emphasis on relationship banking…. What do you mean by relationship banking? How are you stressing on this area? 10. “Stan chart is leading player player in the world’s major financial centers with clear leadership in the emerging markets…” said about the global markets. What has Stan chart does specifically for the emerging markets? What is its % markets particularly India? 11. “Stan chart earned peer recognition when it it over took Citibank Citibank in consumer banking….” In what way has Stan chart overtaken Citibank? 12. What is Stan chart bank doing to increase its share on retail sector? 13. Do you have any charges for investment investment advisory service? service? 14. What is the charge incase of the fund transfer and other facilities facilities available on internet banking? 15. Secure measuring area is a service service exclusive to Stan chart. But what sort of information transfer takes place between customer and b ank?
Questionnaire for HSBC
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(Questionnaire No 5)
1. What is is the total no of branches branches that that HSBC has in in India? India? 2. What What is the the total total no of ATM cent centers ers that that HSBC HSBC has? has? 3. What What is the the total total no of custom customers ers HSBC HSBC has? has? 4. What is is the % share share of HSBC is is corporate corporate and retail retail segment segment?? 5. What What is the the reven revenue ue per per custom customer er for for HSBC? HSBC? 6. What What is is the the reven revenue ue per branch branch?? 7. What is is the no of of customer customer per per employee? employee? What What is the revenue revenue per ATM? ATM? 8. The cost of the fund fund for HDFC bank bank is about about 6.4% what is is it for for HSBC? HSBC? 9. “HSBC India is is large large in telecom, telecom, cement, cement, pharmac pharmaceutica euticals, ls, FMCG FMCG and the financial service market.” Does the same hold true for HSBC operations in Bangalore also? 10. Going by the general trend in the market, is HSBC also also looking at merging some bank? 11. Generally how many banks are appointed as clearing bank by the the BSE? Which are the other banks offering this service? 12. “HSBC is one of the the largest users of SWIFT SWIFT in the world, and is is a licensed SWIFT vendor….” Is there any advantage in being a SWIFT vendor? 13. Is HSBC planning planning go for banc assurance? assurance? 14. “Our treasury and capital capital market group ranks among the largest largest such business in the world…” in fact treasury contributes to 55% of HSBC’s total revenue . How is the bank pushing this area? 15. Do any of the other banks offer co-branded credit cards?
Questionnaire for ABN AMRO Bank
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(Questionnaire No 6)
1. What is is the total no of branches branches that that ABN Amro Amro has has in India? India? 2. what what is the the total total no of ATM ATM cente centers rs that that ABN ABN has? has? 3. What What is the the total total no of custom customer er ABN ABN has? has? 4. What is is the % share share of ABN is is corporate corporate and retail retail segment segment?? 5. What What is the the reven revenue ue per per custom customer er for for ABN? ABN? 6. What What is is the the reven revenue ue per branch branch?? 7. What is is the number number of customer customer per employee? employee? What What is the the revenue revenue per ATM? ATM? 8. The cost of fund for HDFC HDFC bank is is about 6.4%. 6.4%. What What is it it for ABN ABN Amro? Amro? 9. ABN already already has housing housing loans. loans. So in in what way it it foray into into home finance finance going going to be different from the housing loans? 10. “Dutch banking group ABN Amro NV set up global support center for its trade and advisory unit in madras”…. What are its implications? 11. ABN Amro is looking at using India as a platform platform for scaling up its its global transactions services in India? What has bank done in this regard? 12. “Balance transfer programme” – is is ABN the only bank making making this offers? 13. You claim that ABN rates are among the highest in the country, country, what are the other banks offering similar/ higher rates? 14. Does ABN provide provide real time on line service? service? 15. “Loyal discount on loans against securities”- is it specific to ABN?
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