Indian Banking Scenario
Content
Indian Banking Scenario:
Segments:
The Indian financial system comprises the following institutions: 1. Commercial banks a. Public sector b. Private sector c. Foreign banks d. Cooperative institutions (i) Urban cooperative banks (ii) State cooperative banks (iii) Central cooperative banks
2. Financial institutions a. All-India financial institutions (AIFIs) b. State financial corporation¶s (SFCs) c. State industrial development corporations (SIDCs)
3. Nonbanking financial companies (NBFCs) 4. Capital market intermediaries
About 92 percent of the country¶s banking segment is under State control while the balance comprises of private sector and foreign banks. The public sector commercial banks are divided into three categories.
y State bank group (eight banks): This consists of the State Bank of India (SBI) and Associate Banks of SBI. The Reserve Bank of India (RBI) owns the majority share of SBI and some Associate Banks of SBI. It has 13 head offices governed each by a board of directors under the supervision of a central board. y Nationalized banks (19 banks): In 1969, the nationalization of 14 scheduled commercial banks were arranged by the Government in order to expand the branch network, followed by
six more in 1980. A merger reduced the number from 20 to 19. Nationalized banks are wholly owned by the Government, although some of them have made public issues. Nationalized banks are centrally governed, i.e., by their respective head offices. Thus, there is only one board for each nationalized bank and meetings are less frequent (generally, once a month). The state bank group and nationalized banks are together referred to as the public sector banks (PSBs). y Regional Rural Banks (RRBs): In 1975, the state bank group and nationalized banks were required to sponsor and set up RRBs in partnership with individual states to provide low-cost financing and credit facilities to the rural masses.
Commercial Banking, also known as business banking is a bank that provides checking accounts, savings account etc. Commercial Banks can be further grouped into nationalized banks, regional rural banks, private sector banks and the State Bank of India and its group banks. These banks have over 68,681 branches across the country. The Co-operative Banks in India started functioning almost 100 years ago. The co-operative banks in India play an important role in rural financing. The cooperative bank in India finances rural areas under: Farming, Cattle, Milk, Personal Finance etc, whereas they finance urban areas under: Self Employment, Industries, Small scale units, Home finance, Consumer Finance etc. The Public Sector Banks (PSBs) are the base of the Banking Sector in Indian and it accounts for more than 78% of the total banking industry assets. But they are burdened with excessive Non Performing assets(NPAs). They are leaders in Internet banking, mobile banking, ATMs etc. In India some of the Private sector Banks are ING Vyasa Bank, IDBI Bank, SBI commercial and International Bank Ltd etc. The Public Sector includes Vijaya Bank, UCO Bank, Allahabad Bank, Punjab National Bank, oriental bank etc. Some of the foreign banks operating in the Indian Banking Industry are ABNAMRO Bank, Citibank, American Express Bank Ltd, ANZ Grindlays Bank etc.
The broad categories of products or services that the banking industry caters to are as follows:
Retail Banking Retail products such as debit cards, credit cards etc. Portfolio Management like mutual funds etc. Corporate lending and project financing (including loans). Investment banking. Foreign exchange trading
The Structure of Indian Banking System
Table 1 : List of 14 nationalized banks: Central Bank of India Bank of Maharashtra UCO Bank Canara Bank Indian Overseas Bank Union Bank United Bank of India Punjab National Bank Dena Bank Syndicate Bank Indian Bank Bank of Baroda Allahabad Bank Bank of India
Table 2 : The following is a list of the Scheduled Banks in India (Private Sector): ING Vysya Bank Ltd Axis Bank Ltd Indusind Bank Ltd ICICI Bank Ltd South Indian Bank HDFC Bank Ltd Centurion Bank Ltd Bank of Punjab Ltd IDBI Bank Ltd
Table 3 : The following is a list of the Scheduled Banks in India (Public Sector): State Bank of India State Bank of Bikaner and Jaipur State Bank of Indore State Bank of Travancore Bank of Baroda Canara Bank Dena Bank State Bank of Mysore Andhra Bank Bank of India Central Bank of India Indian Overseas Bank State Bank of Saurashtra Allahabad Bank Bank of Maharashtra Corporation Bank Indian Bank State Bank of Hyderabad
Oriental Bank of Commerce Punjab National Bank Syndicate Bank UCO Bank Union Bank of India Vijaya Bank
Punjab and Sind Bank United Bank of India
Table 4 : The following is the list of the Scheduled Foreign Banks in India: American Express Bank Ltd. Bank of America NT & SA Banquc Nationale de Paris Citi Bank N.C. Hongkong and Shanghai Banking Corporation The Chase Manhattan Bank Ltd. ANZ Gridlays Bank Plc. Bank of Tokyo Ltd. Barclays Bank Plc Deutsche Bank A.G. Standard Chartered Bank. Dresdner Bank AG.
Table 5 : The following is the list of Public Sector Banks in India Allahabad Bank Bank of India Central Bank of India Indian Bank Punjab & Sind Bank UCO Bank Vijaya Bank Andhra Bank Bank of Maharashtra Corporation Bank Indian Overseas Bank Punjab National Bank Union Bank of India Bank of Baroda Canara Bank Dena Bank Oriental Bank of Commerce Syndicate Bank United Bank of India
Table 6 : List of State Bank of India and its subsidiary, a Public Sector Banks State Bank of Bikaner & Jaipur State Bank of Indore State Bank of Saurashtra State Bank of Hyderabad State Bank of Mysore State Bank of Travancore
Table 7 : List of Private Banks in India
Bank of Punjab Catholic Syrian Bank City Union Bank Development Credit Bank HDFC Bank IDBI Bank ING Vysya Bank Karnataka Bank Laxmi Vilas Bank United Western Bank
Bank of Rajasthan Centurion Bank Dhanalakshmi Bank Federal Bank ICICI Bank IndusInd Bank Jammu & Kashmir Bank Karur Vysya Bank South Indian Bank UTI Bank
PEST ANALYSIS PEST analysis of any industry sector investigates the important factors that are affecting the industry and influencing the companies operating in that sector. PEST is an acronym for political, economic, social and technological analysis. Political factors include government
policies relating to the industry, tax policies, laws and regulations, trade restrictions and tariffs etc. The economic factors relate to changes in the wider economy such as economic growth, interest rates, exchange rates and inflation rate, etc. Social factors often look at the cultural aspects and include health consciousness, population growth rate, age distribution, changes in tastes and buying patterns, etc. The technological factors relate to the application of new inventions and ideas such as R&D activity, automation, technology incentives and the rate of technological change.
Political Regulatory bodies Government policies International Legislation Economic Economic Trends (Indian and Global) Seasonality and Weather issues Interest and Exchange Rates Social Lifestyle Trends Customer Attitudes and Options Media Views and Brand Image Advertising and Publicity Technological Competent Technology Development Information Technology Global Communication Innovation Potential
ING Annual results in brief
Mar ' 11 Sales 2,694.06 Operating profit 1,516.44 Interest 1,687.54 Gross profit 635.47 EPS (Rs) 26.34 Mar ' 10 2,232.90 1,154.37 1,403.06 611.23 20.19 Mar ' 09 2,239.89 1,337.25 1,590.27 424.81 18.40 Mar ' 08 1,680.44 1,014.95 1,182.05 287.09 13.33 Mar ' 07 1,401.38 792.62 859.32 229.31 9.78
Segments:
The Indian financial system comprises the following institutions: 1. Commercial banks a. Public sector b. Private sector c. Foreign banks d. Cooperative institutions (i) Urban cooperative banks (ii) State cooperative banks (iii) Central cooperative banks
2. Financial institutions a. All-India financial institutions (AIFIs) b. State financial corporation¶s (SFCs) c. State industrial development corporations (SIDCs)
3. Nonbanking financial companies (NBFCs) 4. Capital market intermediaries
About 92 percent of the country¶s banking segment is under State control while the balance comprises of private sector and foreign banks. The public sector commercial banks are divided into three categories.
y State bank group (eight banks): This consists of the State Bank of India (SBI) and Associate Banks of SBI. The Reserve Bank of India (RBI) owns the majority share of SBI and some Associate Banks of SBI. It has 13 head offices governed each by a board of directors under the supervision of a central board. y Nationalized banks (19 banks): In 1969, the nationalization of 14 scheduled commercial banks were arranged by the Government in order to expand the branch network, followed by
six more in 1980. A merger reduced the number from 20 to 19. Nationalized banks are wholly owned by the Government, although some of them have made public issues. Nationalized banks are centrally governed, i.e., by their respective head offices. Thus, there is only one board for each nationalized bank and meetings are less frequent (generally, once a month). The state bank group and nationalized banks are together referred to as the public sector banks (PSBs). y Regional Rural Banks (RRBs): In 1975, the state bank group and nationalized banks were required to sponsor and set up RRBs in partnership with individual states to provide low-cost financing and credit facilities to the rural masses.
Commercial Banking, also known as business banking is a bank that provides checking accounts, savings account etc. Commercial Banks can be further grouped into nationalized banks, regional rural banks, private sector banks and the State Bank of India and its group banks. These banks have over 68,681 branches across the country. The Co-operative Banks in India started functioning almost 100 years ago. The co-operative banks in India play an important role in rural financing. The cooperative bank in India finances rural areas under: Farming, Cattle, Milk, Personal Finance etc, whereas they finance urban areas under: Self Employment, Industries, Small scale units, Home finance, Consumer Finance etc. The Public Sector Banks (PSBs) are the base of the Banking Sector in Indian and it accounts for more than 78% of the total banking industry assets. But they are burdened with excessive Non Performing assets(NPAs). They are leaders in Internet banking, mobile banking, ATMs etc. In India some of the Private sector Banks are ING Vyasa Bank, IDBI Bank, SBI commercial and International Bank Ltd etc. The Public Sector includes Vijaya Bank, UCO Bank, Allahabad Bank, Punjab National Bank, oriental bank etc. Some of the foreign banks operating in the Indian Banking Industry are ABNAMRO Bank, Citibank, American Express Bank Ltd, ANZ Grindlays Bank etc.
The broad categories of products or services that the banking industry caters to are as follows:
Retail Banking Retail products such as debit cards, credit cards etc. Portfolio Management like mutual funds etc. Corporate lending and project financing (including loans). Investment banking. Foreign exchange trading
The Structure of Indian Banking System
Table 1 : List of 14 nationalized banks: Central Bank of India Bank of Maharashtra UCO Bank Canara Bank Indian Overseas Bank Union Bank United Bank of India Punjab National Bank Dena Bank Syndicate Bank Indian Bank Bank of Baroda Allahabad Bank Bank of India
Table 2 : The following is a list of the Scheduled Banks in India (Private Sector): ING Vysya Bank Ltd Axis Bank Ltd Indusind Bank Ltd ICICI Bank Ltd South Indian Bank HDFC Bank Ltd Centurion Bank Ltd Bank of Punjab Ltd IDBI Bank Ltd
Table 3 : The following is a list of the Scheduled Banks in India (Public Sector): State Bank of India State Bank of Bikaner and Jaipur State Bank of Indore State Bank of Travancore Bank of Baroda Canara Bank Dena Bank State Bank of Mysore Andhra Bank Bank of India Central Bank of India Indian Overseas Bank State Bank of Saurashtra Allahabad Bank Bank of Maharashtra Corporation Bank Indian Bank State Bank of Hyderabad
Oriental Bank of Commerce Punjab National Bank Syndicate Bank UCO Bank Union Bank of India Vijaya Bank
Punjab and Sind Bank United Bank of India
Table 4 : The following is the list of the Scheduled Foreign Banks in India: American Express Bank Ltd. Bank of America NT & SA Banquc Nationale de Paris Citi Bank N.C. Hongkong and Shanghai Banking Corporation The Chase Manhattan Bank Ltd. ANZ Gridlays Bank Plc. Bank of Tokyo Ltd. Barclays Bank Plc Deutsche Bank A.G. Standard Chartered Bank. Dresdner Bank AG.
Table 5 : The following is the list of Public Sector Banks in India Allahabad Bank Bank of India Central Bank of India Indian Bank Punjab & Sind Bank UCO Bank Vijaya Bank Andhra Bank Bank of Maharashtra Corporation Bank Indian Overseas Bank Punjab National Bank Union Bank of India Bank of Baroda Canara Bank Dena Bank Oriental Bank of Commerce Syndicate Bank United Bank of India
Table 6 : List of State Bank of India and its subsidiary, a Public Sector Banks State Bank of Bikaner & Jaipur State Bank of Indore State Bank of Saurashtra State Bank of Hyderabad State Bank of Mysore State Bank of Travancore
Table 7 : List of Private Banks in India
Bank of Punjab Catholic Syrian Bank City Union Bank Development Credit Bank HDFC Bank IDBI Bank ING Vysya Bank Karnataka Bank Laxmi Vilas Bank United Western Bank
Bank of Rajasthan Centurion Bank Dhanalakshmi Bank Federal Bank ICICI Bank IndusInd Bank Jammu & Kashmir Bank Karur Vysya Bank South Indian Bank UTI Bank
PEST ANALYSIS PEST analysis of any industry sector investigates the important factors that are affecting the industry and influencing the companies operating in that sector. PEST is an acronym for political, economic, social and technological analysis. Political factors include government
policies relating to the industry, tax policies, laws and regulations, trade restrictions and tariffs etc. The economic factors relate to changes in the wider economy such as economic growth, interest rates, exchange rates and inflation rate, etc. Social factors often look at the cultural aspects and include health consciousness, population growth rate, age distribution, changes in tastes and buying patterns, etc. The technological factors relate to the application of new inventions and ideas such as R&D activity, automation, technology incentives and the rate of technological change.
Political Regulatory bodies Government policies International Legislation Economic Economic Trends (Indian and Global) Seasonality and Weather issues Interest and Exchange Rates Social Lifestyle Trends Customer Attitudes and Options Media Views and Brand Image Advertising and Publicity Technological Competent Technology Development Information Technology Global Communication Innovation Potential
ING Annual results in brief
Mar ' 11 Sales 2,694.06 Operating profit 1,516.44 Interest 1,687.54 Gross profit 635.47 EPS (Rs) 26.34 Mar ' 10 2,232.90 1,154.37 1,403.06 611.23 20.19 Mar ' 09 2,239.89 1,337.25 1,590.27 424.81 18.40 Mar ' 08 1,680.44 1,014.95 1,182.05 287.09 13.33 Mar ' 07 1,401.38 792.62 859.32 229.31 9.78
