Scope of Banking sector for MBA

Banking SectorThe Promising future

Banking SectorPresented by:

Zeeshan ShaikhSurya RanaPrashantVermaParvaz ShaikhTahaa Lokhandwala

The word bank was borrowed from Middle French word banque , bank "bench, counter".

A bank is a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital markets.

Banking is generally a highly regulated industry, and government restrictions on financial activities by banks have varied over time and location.

Banking

Commercial banks :

Public sector

Private sector

Foreign Banks

Cooperative Institutions :

Urban cooperative banks

State cooperative banks

Central cooperative banks

The Indian financial system comprises the followinginstitutions:

Financial institutions :

All-India Financial Institutions (AIFIs)

State Financial Corporations (SFCs)

State Industrial Development Corporations (SIDCs)

Nonbanking Financial Companies (NBFCs)

Capital Market Intermediaries

The central banking system of India

Controls the monetary policy of the rupee as well as currency reserves

The main monetary authority of the country

The manager of exchange control

The bank issues and exchanges or destroys currency and coins not fit for circulation

Reserve Bank of India

1. State Bank of India Group:

1. Largest state-owned banking and financial services company in India, by almost every parameter - revenues, profits, assets, market capitalization

2. 131 Foreign offices in 32 countries across the globe

3. 21000 ATMs and SBI group(including associate banks) has about 45000 no of ATMs

4. 26500 branches, inclusive of branches that belong to its Associate banks

5. 29th most reputed company in the world according to Forbes

The public sector commercial banks are divided into three categories:

2. Nationalized banks (19 banks):

In 1969, the Government arranged the nationalization of 14 scheduled

commercial banks in order to expand the branch network, followed by six more in 1980

In contrast to the state bank group, nationalized banks are centrally

Governed, i.e. by their respective head offices

List Of Nationalized Banks:•Bank of Baroda •Bank of India

•Bank of Maharashtra •Canara Bank

•Central Bank of India •Dena Bank

•Indian Bank Union Bank of India

•UCO Bank

•Vijaya Bank

3. Regional Rural Banks (RRBs):

Regional Rural Banks (RRBs): In 1975, RRBs were set up by RBI in partnership with individual states to provide low-cost financing and credit facilities to the rural masses

As on 2006, there were 133 RRBs covering 525 districts with a network of 14,494 branches

RRBs were originally conceived as low cost institutions having a rural ethos, local feel and pro poor focus

Private Banks in India

Private banking is a term for banking and other financial services provided by banks to private individuals In the early 1990 government embarked on a policy of liberalization, licensing a small number of private banks

These came to be known as New Generation tech-savvy banks, and includedGlobal Trust Bank

Thus, public sector banks revived to take up leading role in the banking structure

In 1980, the GOI nationalized 6 more commercial banks, with control over 91% of banking business of India

Liberalization along with the rapid growth in the economy of India, revitalized the banking sector in India

Then Housing Development Finance principle' approval from the HDFC became the first to receive an invite from (RBI) to set up a bank in the private sector

Have made the banking services more efficient and customer friendly

For potential customers, the Bank provides a wide range of commercial and transactional banking services, including:

Target market

Blue chip companies.

Small & mid-sized corporate

Agri-based businesses

Services Provided by Private Banks:

Working capital finance

Trade services

Transactional services

Cash management

Major private banks in India are:

Foreign Banks•Foreign Banks are not new phenomena in Indian bank in system. Standard Charted Bank started its operation in 1858 and Citi Bank opened its branch in India in 1902

•However, globalization and economic policies implemented in late 1980s encouraged many international banks to open their shops here

•At almost all the international banks are operating in India

•Foreign banks in India have brought the latest technology and new banking practices.

•This helped the domestic banks to improve their performance and provide better customer service

•And it has led to Employment Generation in India

Present there are 29 foreign banks are operating in India and some of the important foreign banks in India are:

3-6-3 Rule – An unofficial banking rule !!

3-6-3 is an “UNOFFICIAL RULE” under which the banking industry once operated and which alludes to it being noncompetitive and simplistic.

Banking industry of the 1950s, 1960s, and 1970s is often described as operating according to a 3-6-3 rule .The rule basically explains:How bankers would give 3% interest on depositors’ accountsLend the depositors money at 6% interest and Then be playing golf at 3pm

This alludes to how a bank’s only form of business is lending out money at a higher rate than what it is paying out to its depositors.

.

Rule of 3

•Jagdish Seth & Rajendra Sisodia•The magic number 3•70-90% of market share

Top Banks In India DNB Survey

Bank Name

StateBank Of India

ICICI Bank Limited

HDFC Bank

Punjab National bank

Bank Of Baroda

Branches26500 2,016 1,725 5000 1,456

Employees 200,299 35,000 51,888 580,300 302,000

Income 85,962 crore

59,599.77 crore

 4,419.01 crore

2,32,000 1,03,000

Profit9,166.05 crore

 4,843.41 crore

3,032.92 crore

1,90,000 99,873

Top Banks In India

SBI SWOT Analysis •Strengths

▫King of rural India▫Government

Backing▫Diversified Portfolio▫Low Transaction

Cost▫Brand Name▫Excellent

Penetration

SWOT Analysis

•Weaknesses▫Hierarchical

mgmt. a barrier▫High % of NPA▫Lacks

modernization

SWOT Analysis

•Opportunities▫Merger of banks▫Add branches▫Privileged Banking▫Expansion▫Modernization

SWOT Analysis

•Threats▫Advent of MNC

banks▫Private banks▫Liberalization▫Consumer

Expectations▫Employee Strike

SWOT Analysis

•Strengths▫Brand name▫Huge network▫Aggressive

Marketing▫Technology▫Salary A/c’s

SWOT Analysis

•Weaknesses▫Poor customer

service▫High transaction

cost▫Customer bias▫Meek global

presence

SWOT Analysis

•Opportunities▫New companies▫New services▫Expansion

SWOT Analysis

•Threats ▫Advent of MNC

banks▫Nationalized banks

PROMISING SCOPE IN BANKING SECTOR FOR MBA

Investment Officers

JOB PROFILE: Marketing the Insurance, Mutual Fund and other products of the Bank. Responsible for end-to-end sales. Any other work assigned by the Bank from time to time.

Financial

AnalystJOB PROFILE: Analytical tasks on, maintenance and transactions including:Financial models, Derivatives market and conduct financial valuations. Deliver output that is accurate, insightful and client-read

Manager — ATM Strategy & Planning

JOB PROFILE :Responsibility to track adherence to budgeting for the ATM identification of expense save options, performance measurement of new deployments and take necessary measures.

Retail Risk Analyst – Inventory Finance

JOB PROFILE:

Managing Fresh limits, enhancements, interim approvals and renewals of dealer’s limit. Monitoring end use of funds by appointing CAs for conducting stock audits.

Asst. Manager Systems

• In-depth knowledge in Multi-tire Architecture, Client Server Technology, TCP/IP, Web Technology

Analyst – IT Operations

• Provide remote support to its global business, across the following areas:• IT Service Desk.• Information Security/Access Management.Windows/Unix/Linux Server Operations

IT AND MANAGEMENT

Marketing Manager

Human Resource Manager

JOB PROFILE:Provides HR shared services including Payroll, Benefits, Retiral Management and related Accounting & Reporting activities.

Assistant Manager – Sales

JOB PROFILE: To implement Business Development and Marketing Strategies and Achievement of Sales and Profit Targets of all Financial Products and Services.

Relationship Manager

JOB PROFILE:Involves up selling, cross selling and providing regular market information to customers and ensure superior banking relationships with high value corporates.

Salary Description

Starting salary in the range of 23,ooo to 65,000

Highest for the Vice- President and the Branch Manager

Lowest for the Bank Teller or Cashier.

THANK YOU