Sectoral Analysis on Banking sector

1. SECTORAL ANALYSIS
- BANKING.

2. BANKING ORIGIN
• The first records of Banks dates back to around 2000 BC in
Assyria and Babylonia.
• Later, in ancient Greece and during the Roman empire, lenders who were based
in temples made loans but also added two important innovations: accepting
deposits and charging money.
• The word bank can be traced to medieval and early Renaissance Italy
• The history of banking is closely related to the history of money but banking
transactions probably predate the invention of money
• In ancient India during the Maurya dynasty(321 to 185 BC), an instrument
called adesha was in use, which was an order on a banker desiring him to pay
the money of the note to a third person, which corresponds to the definition of a
bill of exchange as we understand it today
• The religious societies regarded inanimate matter as alive, like plants, animals
and people, and capable of reproducing itself. Hence if you lent 'food money', or
monetary tokens of any kind, it was legitimate to charge interest.

3. BANKING HISTORY
IN INDIA
• Banking Originated in 18 th century
• 1786 -1st bank named General Bank was started.
• 1790 -2nd bank named Bank of Hindustan
• 1806 -Oldest bank(SBI) in calcutta started which later became Bank of Bengal
• Presidency Banks established during British East India Company were Bank of
Bengal,Bank of Bombay,Bank of Madras
• 1839 -Union Bank
• 1860 -Arrival of foreign banks in Calcutta, India.
• 1869 -HSBC started in Bengal
• 1865 -Allahabad Bank
• 1881-1st Indian JSC-The Oudh Commercial bank(failed in 1958)
• 1895 -PNB (1 of the largest bank )
• 1906-1911-Establishment of Banks inspired by SWADESHI Movement
• 1913-1918- Failure of 94 Banks
• 1949-Establishment of RBI
• 1960– Banks became important tool for providing funds in the economy
• 1969– Nationalisation of 14 large banks
• 1980- 2nd dose of nationalisatio n

4. HISTORY (CONT..D)
• 1990 - Liberalization Phase ,FDI norms were relaxed.

5. TOP BANKS

6. VALUES PROVIDED TO
CUSTOMERS
• Search and match
Finding other side of the transaction, matching sellers with
borrowers &/or vice versa
• Market Related Info
Delivering real time prices, macro, micro economic
insights/reports & corporate outlooks
• Processing Convenience
Ensuring successful execution of banking transactions
• Capital
Providing funding, guaranteeing liquidity &transferring risk
• Knowledge
Providing information of market flow &drivers generating
insights opportunities & solutions for customers

7. BIFURCATION OF BANKING
SECTORS

8. BASIC TYPES OF
BANKS
Public Sector
Private Sector
Foreign Banks

9. PUBLIC SECTOR
BANKS
• Allahabad Bank • IDBI Bank • SB(B&J)
• Andhra Bank • Indian Bank • SBM
• Bank of Baroda • Indian Overseas • SBP
• Bank of India Bank • SBT
• Bank of • Oriental Bank of • Syndicate Bank
Maharashtra Commerce
• UCO Bank
• Canara Bank • Punjab and Sindh
• Union Bank of
bank
• Central Bank India
• PNB
• Corporation Bank • United Bank of
• SBI india
• Dena Bank
• SBH

10. PRIVATE SECTOR
BANKS
• Axis bank • TamilNadu Mercantile Bank
• City Union • Catholic Syrian Bank
• Development Credit Bank • Federal Bank
• Dhanlaxmi Bank • Karur Vyasa Bank
• HDFC • The Laxmi Vilas Bank
• ICICI • The South Indian Bank
• IndusInd • The Tamil Nadu Bank
• ING Vyasa • Yes Bank
• Karnataka Bank
• Kotak Mahindra

11. FOREIGN BANKS
• The Barclays Bank
• Citi Bank
• DBS
• Deutsche Bank
• The Standard Chartered Bank
• Bank of Nova Scotia
• HSBC
• RBC
• Wells Fargo
• PNC Bank
• The Bank of America
• Goldman Sachs
• Grindlays Bank
• Credit Sussie

12. DIVERSIFICATION IN
BANKING
Merchan
Mutual
t
funds
banking
ATM’ Retail
S banking
Anywh
Factorin ere
g bankin
g

13. BREAKTHROUGHS
• Axis bank adopts SWIFT’S exceptions and investigations
automated solution
• SUB –K-Vijay Mahajan
• ICICI Bank
• Virtual wallet-PNC Bank
• M pesa
• Wizzit

14. VALUE PARAMETERS
• Accessibility • Customer Satisfaction
 ATM • Value Added Services
 Branches
 Check Book
• Flexibility  Transaction SMS
 Timing
 Mobile Banking
• Mode of paymen t
 Cash • Relationship
 Credit  Personal Banking
 RTGS
 NEFT • Services
 Locker
• Usability  Accounts
 Understanding

15. VALUE PARAMETERS
• Facilities • Efficiency
 Checks
 Cards • Safety
 Authentication Doors
• Adherence
 Rules • Affordability
 Regulation  Minimum Balance
 Norms
 Practices • Brand Image
• EER
• Convenience

16. STRATEGY CANVAS
(PUBLIC SECTOR BANKS)
6 Bank of Baroda
Andhra Bank
5
Allahabad Bank
Bank of India
Bank of Maharashtra
4 Canara Bank
Central Bank
3 Corporation Bank
Dena Bank
2 IDBI
Indian Overses Bank
1 Oriental bank of
commerce
Punjab & Sindh
0 Punjab National
SBI
SBBJ
SBH
SBM
SBP
SBT
Syndicate Bank

17. STRATEGY CANVAS
( TOP PUBLIC SECTOR
BANKS)
6 Bank of Baroda
5 Bank of India
4
Canara Bank
Central Bank
3
Corporation Bank
2 IDBI
1 Indian Overses Bank
0 Punjab National
SBI
UCOBank
United Bank Of India
Union Bank of India

18. STRATEGY CANVAS FOR
PRIVATE SECTOR BANK
6 Axis
City Union
5
Dev Credit
4 Dhanlaxmi
HDFC
3 ICICI
IndusInd
2 ING Vyasa
Karnataka
1 Kotak M
0 Federal
YES
Tamilnadu M
Catholic S
Karur V
Laxmi V
South Ind

19. RETRENCHMENT TRENDS
(2011)
SOURCE:WSJ RESEARCH

20. TRENDS W.R.T ASSET RETURN
MISMATCH
SOURCE:livemintmoney.com/BCG.BT Reseach

21. WINNERS
BT-KPMG BEST BANKS SURVEY OF 2011
• GROWTH (MID-SIZED BANKS)
Dhanlaxmi Bank
QUALITY OF ASSETS (MID-SIZED BANKS)
Karur Vysya Bank
• PRODUCTIVITY & EFFICIENCY (MID-SIZED BANKS)
City Union Bank
• PRODUCTIVITY & EFFICIENCY (SMALL BANKS)
JPMorgan Chase
• GROWTH, QUALITY OF ASSETS (SMALL BANKS)
Mizuho Corporate Bank
• QUALITY OF ASSETS (SMALL BANKS)
Bank of America

22. WINNERS
• BEST LARGE BANK
Bank of Baroda
• BEST MID-SIZED BANK
IndusInd Bank
• BEST SMALL BANK
JPMorgan Chase
• MOST CONSISTENT LARGE BANK
Axis Bank
• GROWTH, QUALITY OF ASSETS (LARGE BANKS)
YES Bank
• PRODUCTIVITY & EFFICIENCY (LARGE BANKS)
IDBI Bank
• GROWTH (MID-SIZED BANKS)
Dhanlaxmi Bank
QUALITY OF ASSETS (MID-SIZED BANKS)
Karur Vysya Bank

23. By:
Ruchi Thapar
Business Design
(2011-13)
WE School
Mumbai.