...2014, Available at: www.paperpublications.org An Analysis of Indian Banking Industry with Special Reference to ICICI Bank Sana Samreen Abstract: The last decade has seen many positive developments in the Indian banking sector. The policy makers, which comprise the Reserve Bank of India (RBI), Ministry of Finance and related government and financial sector regulatory entities, have made several notable efforts to improve regulation in the sector. The sector now compares favorably with banking sectors in the region on metrics like growth, profitability and non-performing assets (NPAs). However, improved regulations, innovation, growth and value creation in the sector remains limited to a small part of it. The cost of banking intermediation in India is higher and bank penetration is far lower than in other markets. India’s banking industry needs to strengthen itself significantly In this paper, I have mainly focused on the overall analysis of the banking industry through framework like Porter’s five forces model. I have also concentrated upon the various developments being done in the industry along with recognizing the upcoming challenges as well as the opportunities to reap the profits even in troubled waters. Keywords: Indian banking industry, Porters five force model, market regulation. I. Introduction The Indian banking industry, which is governed by the Banking Regulation Act of India, 1949 can be broadly classified into two major categories, non-scheduled...
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...Effectiveness of advertising on real estate sector 4. Study on consumer expectations and perceptions towards consumer loans 5. Workers attrition rate at hotel industry is increasing. Study regarding this issue 6. Attrition rates at different sectors 7. Effectiveness and scope of employee referrals in the process of talent sourcing 8. Study of training needs across different industries 9. Study on creation of luxury brand 10. Strategies used to build successful Internet based customer services 11. Measuring the effectiveness of retail banking of a nationalised bank compared to a MNC 12. Conspicuous consumption 13. Study of awareness and acceptibility of UPVC windows and door systems 14. Opportunities of Financing the NANO’s in Bangalore 15. Changing trends in FMCG industry in India 16. A study of best HR practices in service industry 17. Fundamental analysis of Indian telecom companies 18. Study of consumer behaviour in automobile industry 19. customer buying behaviour towards insurance products 20. Promotion strategies followed in Insurance sector 21. Study on changing consumer preference towards organised retailing from un-organised retailing 22. study on “impact of advertising in B2B marketing” 23. Distribution network & general insurance industry 24. A study on distribution channels in aluminium industry 25. Study on strategies for promoting retailers’ brands 26. Study of operations & marketing of chemical goods in SSI 27. The impact of tax on electronic...
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...Financial Performance Measurement of SBI Groups – An Empirical Study (Synopsis) Prasanta Saha Purash-Kanpur Haridas Nandi Mahavidyalaya, Howrah Introduction: Why you choose SBI? You have to clarify it in a paragraph. The Imperial Bank was established in 1921 by amalgamation of three presidency banks – the Bank of Bengal, the Bank of Bombay and the Bank of Madras under a special legislation. These presidency banks were created as a charter to deal in bill of exchange payable in British India and were an integral part of Indian treasury. The Imperial Bank acted as a banker of the government until the establishment of Reserve Bank of India in 1935. State Bank of India was formed on July 1, 1955 by nationalizing the Imperial Bank under the State Bank of India Act, 1955 which was passed in parliament on May 8, 1955. The main objective of nationalization was not only extending banking facilities to rural and semi-urban areas in the newly formed independent India but also to promote agricultural finance and help the government to pursue the board economic policies. Initially 60% stake in SBI was taken over by the Reserve Bank of India but the controlling interest has been transferred to the Government of India in 2008 to remove any conflict of interest as it is the country's banking regulatory authority. The State Bank Group, with a network of 18,266 branches including 4,724 branches of its five Associate Banks, dominates the banking industry in India. The market share...
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...India Banking 2010 Towards a High-performing Sector India Banking 2010 Executive Summary The last decade has seen many positive developments in the Indian banking sector. The policy makers, which comprise the Reserve Bank of India (RBI), Ministry of Finance and related government and financial sector regulatory entities, have made several notable efforts to improve regulation in the sector. The sector now compares favourably with banking sectors in the region on metrics like growth, profitability and non-performing assets (NPAs). A few banks have established an outstanding track record of innovation, growth and value creation. This is reflected in their market valuation. However, improved regulations, innovation, growth and value creation in the sector remain limited to a small part of it. The cost of banking intermediation in India is higher and bank penetration is far lower than in other markets. India’s banking industry must strengthen itself significantly if it has to support the modern and vibrant economy which India aspires to be. While the onus for this change lies mainly with bank managements, an enabling policy and regulatory framework will also be critical to their success. The failure to respond to changing market realities has stunted the development of the financial sector in many developing countries. A weak banking structure has been unable to fuel continued growth, which has harmed the long-term health of their economies. In this “white paper”, we emphasise...
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...Effectiveness of advertising on real estate sector 4. Study on consumer expectations and perceptions towards consumer loans 5. Workers attrition rate at hotel industry is increasing. Study regarding this issue 6. Attrition rates at different sectors 7. Effectiveness and scope of employee referrals in the process of talent sourcing 8. Study of training needs across different industries 9. Study on creation of luxury brand 10. Strategies used to build successful Internet based customer services 11. Measuring the effectiveness of retail banking of a nationalised bank compared to a MNC 12. Conspicuous consumption 13. Study of awareness and acceptibility of UPVC windows and door systems 14. Opportunities of Financing the NANO's in Bangalore 15. Changing trends in FMCG industry in India 16. A study of best HR practices in service industry 17. Fundamental analysis of Indian telecom companies 18. Study of consumer behaviour in automobile industry 19. customer buying behaviour towards insurance products 20. Promotion strategies followed in Insurance sector 21. Study on changing consumer preference towards organised retailing from un-organised retailing 22. study on "impact of advertising in B2B marketing" 23. Distribution network & general insurance industry 24. A study on distribution channels in aluminium industry 25. Study on strategies for promoting retailers' brands 26. Study of operations & marketing of chemical goods in SSI 27. The impact of tax on electronic...
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...Being Five Star in Productivity Roadmap for Excellence in Indian Banking Being Five Star in Productivity: Roadmap for Excellence in Indian Banking A The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients in all sectors and regions to identify their highest–value opportunities, address their most critical challenges, and transform their businesses. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 74 offices in 42 countries. For more information, please visit www.bcg.com. Federation of Indian Chambers of Commerce and Industry (FICCI) is India’s apex chamber representing over 500 industry associations and over 2,50,000 business units — small, medium and large — employing around 20 million people. FICCI works closely with Central and state governments and regulatory bodies for policy change. Indian Banks’ Association (IBA) is the premier service organization of the banking industry in India. Its members comprise of almost all the Public, Private, Urban co– operative and Foreign banks having offices in India, developmental financial institutions, federations, merchant banks, housing finance corporations...
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...2156-7506 Available online at http://www.akpinsight.webs.com Merger and Acquisitions (M&As) in the Indian Banking Sector in Post Liberalization Regime Dept. of Commerce, AMU, Aligarh India Azeem Ahmad Khan ABSTRACT The purpose of this paper is to explore various motivations of Merger and Acquisitions in the Indian banking sector. This includes the various aspects of banking Industry’s Merger and Acquisitions. It also compares pre and post merger financial performance of merged banks with the help of financial parameters like Gross-Profit Margin, Net- Profit Margin, Operating Profit Margin, Return on Capital Employed (ROCE), Return on Equity (ROE) and Debt-Equity Ratio. Through literature review it comes to know that most of the work done high lightened the impact of Merger and Acquisitions on different aspects of the companies. The data of Merger and Acquisitions since economic liberalization are collected for a set of various financial parameters. This study also examines the changes occurring in the acquiring firms on the basis of financial ground and also the overall impact of Merger and acquisitions (M&As) on acquiring banks. The Researcher used independent t-test for testing the statistical significance and this test is applied not only for the ratio analysis but also to test the effect of Merger and Acquisitions on the performance of banks. This performance is being tested on the basis of two grounds i.e. Pre merger and Post merger. The result of the study indicates...
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...Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. HDFC Bank is one of the Big Four banks of India, along with: State Bank of India, ICICI Bank and Punjab National Bank. Mission statement: HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank's business philosophy is based on four core values - Operational Excellence, Customer Focus, Product Leadership and People. PRODUCT VERTICALS HDFC Bank offers a wide range of commercial and transactional banking services and treasury products to wholesale and retail customers. The bank has three key business segments: 1. Wholesale Banking Services The Bank's target market ranges from large, blue-chip manufacturing companies in the...
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...Innovations and Inclusive Growth A Case of Banking Industry in India Kiran Kumar Kakarlapudi Background and Motivation India has entered high growth trajectory with the initiation of economic reforms in the early 1990s with a policy shift towards free market economy.1 While on the growth front, the economy has performed considerably well, on the other hand the issue of distributional effects of growth has gained momentum in the academic and policy environment. Thus, in the eleventh and twelfth five year plans, emphasis has been laid to achieve sustainable economic growth with inclusive development (Singh, 2011). The empirical evidences on India’s growth pattern show that, the fantabulous growth performance, to a large extent, is driven by high growth in the service sector which has grown at 8.1 percent per annum during 1990-91 to 2007-08. Similarly, the share of service sector Gross Domestic Product (GDP) has increased from less than half to 68 percent in 2007-08 (Acharya, 2008). 2 The insights from the studies on service sector growth in India reveal that the spurt in the service growth is driven by the rapid growth of business services (which include Information Technology), communication services, financial services, hotels and restaurants, and trade (distribution) services, which is facilitated by the advent and rapid diffusion of information technology (Gordon and Gupta, 2004; Banga, 2005; Verma, 2006; Eichengreen and Gupta, 2010).3 Further, it has been argued that, rapid...
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...SUSTAINABLE BANKING -AN INDIAN PERSPECTIVE Abstract ------------------------------------------------- The contribution of financial institutions including banks to sustainable development is dominant, considering the crucial role they play in financing the economic and developmental activities of the world. In this context, the urgency for banks to act as responsible corporate citizens in the society, especially in a developing country like ours, need be hardly overemphasized. Their activities should reflect their concern for human rights and environment. Since banking sector is one of the major stake holders in the Industrial sector, it can find itself faced with credit risk and liability risks. Further, environmental impact might affect the quality of assets and also rate of return of banks in the long-run. Thus the banks should go green and play an upbeat role to take environmental and ecological aspects as part of their lending principle, which would force industries to go for mandated investment for environmental management, use of appropriate technologies and management systems. This paper explores the developments of environmental concern in Indian banks, their environmental impact, and their role in the economy as a driving force for more proactive policies toward sustainable development. 1Introduction Banks and financial intuitions have played major role in the economic development of the country and most of the credit- related schemes of the government...
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...Organizational Analysis Report Raghavendra Satwik - PGPEX 32/9 Rohan Gupta - PGPEX 35/9 Upendra Pisupati - PGPEX 50/9 Table of Contents Objective ....................................................................................................................................................... 3 Company Background ................................................................................................................................... 3 History ....................................................................................................................................................... 3 Operations ................................................................................................................................................ 4 Technology ................................................................................................................................................ 4 Management Team ................................................................................................................................... 5 Products & Services .................................................................................................................................. 6 External Environment ................................................................................................................................... 7 Organizational Culture .........................................................................
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...ABSTRACT Recent reports on banking sector often indicate that India is slowly but surely moving from a regime of `large number of small banks' to `small number of large banks'. The aim of this paper is to probe into the various motivations for mergers and acquisitions in the Indian Banking sector. Thus, literature is reviewed to look into the various motivations behind a banks’ merger/ acquisition event. The paper also takes us through the international mergers & acquisitions scenario comparing it with the Indian scene. Given the increasing role of the economic power in the turf war of nations, the paper looks at the significant role of the state and the central bank in protecting customer’s interests vis-à-vis creating players of international size. While, gazing at the mergers & acquisitions in the Indian Banking Sector both from an opportunity and as imperative perspectives, the paper also glances at the large implications for the nation. INTRODUCTION Generally speaking a bank is an institution dealing in money. The origin of the word bank is traced to the Italian ‘banca’, ‘banc’ or ‘banque’, which means a bench. It is stated that in Middle Ages the European money changers and moneylenders displayed their coins on their benches and conducted their business. Hence the term bank refers to the bench on which the business of money changing and money lending was conducted. Hence, the term banking is defined as accepting for the purpose of lending or investment, of...
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...Banking sector plays a vital role in the economic growth. Sound financial well-being of a bank is the assurance not only to its investors, but is equally important for the owners, personnel and the whole economy as well. As a result efforts have been made from time to time, to gauge the financial position of every bank and oversee it proficiently and viably. In this paper, an effort has been made to assess the financial performance of the ten commercial banks working in Pakistan and the data has been taken for seven years i.e. 2007-2013. Moreover, data were also assembled from articles, papers, the World Wide Web (Internet), Specialized International Journals, and relevant previous studies. In the present study an endeavor was made to evaluate the performance & financial accuracy of commercial banks using CAMEL approach. CAMEL is the supervisory and administrative framework implemented by State Bank of Pakistan. It consists of five...
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...Implications of M&As of Banking sector on Indian economy Author Author Shilpa Vivek Agrawal Shreya Deepak Saraf Novel Institute of Management Studies, Novel Institute of Management Studies Chinchwad, Pune. India. Chinchwad, Pune. India. Co-Author Dr. D.M Gujarathi Chairman BOS, Cost and Works Accounting University of Pune, India --------------------------------------------------------------------------------------------------------------------- Abstract Financial System is the most important institutional and functional vehicle for economic transformation of any country. India is slowly but surely moving from a regime of 'large number of small banks' to 'small number of large banks. The process of mergers and acquisitions has gained substantial importance in today's corporate world. This process is extensively used for restructuring the business organizations. In India, the concept of mergers and acquisitions was initiated by the government bodies. M & A in banking sector have been on rise in recent past both globally & in India. With the help of mergers and acquisitions in the banking sector, the banks can achieve significant growth...
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...COMPARATIVE PERFORMANCE APPRAISAL OF INDIA’S COMMERCIAL BANKS PRESENTED BY Gurlovleen Kaur ABSTRACT Commercial banks form the most important part of Indian financial landscape in terms of their role in channeling credit to the commercial sector and facilitating the process of financial inclusion. In the era of global competition, performance is the key factor for any subject, especially in banking. The Indian banking industry is made up of the Indian public sector banks and private sector banks. In this project an effort has been made to evaluate the financial performance of commercial banks by using key performance indicators as a benchmark, generally the financial performance of bank is evaluated by working out a number of ratios depending upon the data. This study has made use of five financial parameters ,i.e. ,Capital to Risk Weighted Assets Ratio( CRAR) ,Return on Assets ( ROA), Non Performing Asset (NPA),Net interest Margin (NIM), Profit Per Employee( PPE), as these are generally accepted ratios to evaluate the performance of banks ,in order of their performance. Research plan includes decision on data sources, research approaches, research instrument, sampling plan and contact method. The present study is based on secondary data. The data is collected through various journals, studies, websites and publications of banks. The collected data is analyzed to reach at conclusions regarding the various issues related to performance of commercial banks...
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