Management of Commercial Banks

SUBMITTED TO: PROF. V.K. DUTTA

SUBMITTED BY: GROUP 5, MOCB-2
ABHISHEK JAIN 221175
HIMANSHU SANGAR 221174






2

NUPUR BAGDI 221178
VIPUL SACHDEVA 221170
VINEET KUMAR SINGH 221169


3

S. No. Table of Contents Page No.
Executive Summary 3
1 1.1 Bank Description 5
1.2 Background of Bank promoters 5
1.3 Board of Directors 8
1.4 Location selection 3
1.5 Organization Structure 4
1.6 Committees of Bank 5-8
1.7 Manpower Plan 5
1.8 Marketing Plan 5
1.8.1 Marketing Objectives 5
1.8.2 Marketing Strategy 6
1.8.3 Product Portfolio 6
1.9 Balance Sheet and P&L for three years 8
2 References 9-14


4

Executive Summary

The purpose of this business plan is to obtain banking license from the Reserve Bank of India to
set up a commercial bank while showcasing the expected financials and operations over the next
three years.
“My Bank” will be operating under commercial banking license and following all the regulatory
and compliance requirements constructed for such entities as per the RBI.
The main objectives of this are to add one million new customers to the bank in the next 3 years
while attracting good quality depositors and loaners.
The target segment of “My Bank” will be Middle Income Group, Small and medium sized
companies in the nearby commercial spaces and Corporate Houses in the adjoining areas. The
main aim would be attracting good quality depositors on account of current account and savings
account (CASA), which are low cost funds for the bank.
The banking products and services offered vary for target segment. For example customers from
the household sector would be offered with following products and services from the bank
portfolio: deposits, loans, services. And for customers from Small and medium companies sector
would be offered with following products and service: deposits, loans, services
The USP of “My Bank” i.e. our customers will prefer our services because it provides one with
world class banking solutions with the central theme of – “I Bank My Way”.

5

1.1 Bank description:

“My bank” is a bank established to provide you with world class banking solutions with the
central theme of – “I Bank My Way”. The board members are Anand Sinha, Usha Thorat,
Pratip Chaudhuri, Chandrasekhar Bhaskar Bhave , Dr. Kamalesh Chandra Chakrabarty or K.C.
Chakrabarty. The promoters of the bank are: LIC and Bajaj Finance.
1.2 Background of Bank Promoters
A promotor is a person who enanged in his formation of company. Promoter can also be defined
as a person who solicits people to invest money into a corporation, usually when it is being
formed
1) Bajaj Finserv
Introduction: Bajaj Finance is the financial services company of the Bajaj Group. Its current
business lines include Protection through Bajaj Allianz Life Insurance and Bajaj Allianz General
Insurance, Lending and Wealth through Bajaj Finance Limited
Portfolio of businesses: Here is a quick overview of their portfolio of businesses:
1) Consumer Finance
2) Durables Finance
3) Lifestyle Finance
4) Extended Warranty
Highlights in past few years:
1) 2011 – 2013:
 They created the first EMI (Existing Member Identification) Card and they created Flexi
saver in 2012.
6

 They reduced the approval time for Durable and Lifestyle Financing from their own
benchmarked time of 15 minutes to 5 seconds flat by 2011.
 In the last two years they have delivered delight to consumers and partners through their
Customer Portal and Galaxie, their feature loaded digital apps.
In FY 2013-14, they set to breach the Rs .20, 000 Crore mark for our Assets under Management.
2) 2000 - 2010
 They expanded their expertise to finance dreams beyond Two & Three wheelers and
Durables to Business and Property and a whole host of other personal needs.
 They tied up with the best companies to create robust back ends to manage processes. As
their footprint expanded and as they financed more and more Indian dreams, they
expanded their means to generate the funds.
 They averaged technology to crunch time to approval for consumers across our
businesses.
Awards and Recognitions:
 Ranked amongst the Top 3 Financial Services Companies to work for in India
 Won the CIO 100 Innovation award for two of our innovations - EMI Card and
Flexisaver\

2) LIC (LIFE INSURANCE CORPORATION OF INDIA)
Introduction: Life Insurance Corporation of India is an Indian state-owned insurance group and
investment company headquartered in Mumbai. It is the largest insurance company in India with
an estimated asset value of 1560481.84 crore
Highlights from past few years:
 1818: Oriental Life Insurance Company, the first life insurance company on Indian soil
started functioning.
 1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company
started its business.
7

 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate
the life insurance business.
 1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
 1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.
 1956: 245 Indian and foreign insurers and provident societies are taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act,
1956, with a capital contribution of Rs. 5 crore from the Government of India.
 The General insurance business in India, on the other hand, can trace its roots to the
Triton Insurance Company Ltd., the first general insurance company established in the
year 1850 in Calcutta by the British.
 1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classes of general insurance business.
 1957: General Insurance Council, a wing of the Insurance Association of India, frames a
code of conduct for ensuring fair conduct and sound business practices.
 1968: The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.
 1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the
general insurance business in India with effect from 1st January 1973.
Awards and Recognitions:
 The Economic Times Brand Equity Survey 2012 rated LIC as the No. 6 Most Trusted
Service Brand of India.
 From the year 2006, LIC has been continuously winning the Readers' Digest Trusted
brand award


1.3 Board of Directors
8

A board of directors is a body of elected or appointed members who jointly oversee the activities
of a company or organization.
1. Anand Sinha
He was RBI's alternate representative in the Basel Committee on Banking
Supervision (BCBS), Bank for International Settlements, Basel. He represented India on three
sub-committees the BCBS, namely, Policy Development Group (PDG), Macro Prudential
Supervision Group (MPG) and Macro Variable Task Force (MVTF). He also represented RBI
on the Committee on Global Financial Systems (CGFS), BIS since December 2005.
Shri Sinha served as Director of Export Credit Guarantee Corporation of India Limited since
February 27, 2006. He served as the Reserve Bank's Nominee director on the boards of Dena
Bank, Allahabad Bank, Bank of Baroda, Indian Overseas Bank, Deposit Insurance and Credit
Guarantee Corporation and Export Credit and Guarantee Corporation at different phases of his
career.
On 19 January 2011, Anand Sinha was appointed as Deputy Governor of RBI for a period of two
years.
2. Usha Thorat
She served as Deputy Governor of the Reserve Bank of India (RBI) from November 10, 2005 to
November 8, 2010. Prior to this she was the executive Director of the RBI. Usha Thorat has been
the Reserve Bank of India nominee on the boards of Bank of Baroda, Indian Overseas Bank and
the Securities Trading Corporation of India.
She has been Executive Director of RBI since April 2004. As Deputy Governor she was
responsible for the Department of Currency Management, Deposit Insurance and Credit
Guarantee Corporation, Inspection Department, Premises Department, Rural Planning and Credit
Department and Urban Banks Department.
3. Pratip Chaudhuri
A 1974 batch alumnus of University Business School - Chandigarh, is former chairman of
the State Bank of India.
Prior to that he was the Deputy Managing Director (DMD) of the International Division of SBI.
9

He joined the State Bank of India 38 years back as a probationary officer in 1974.
He has held several important positions in SBI including Chief General Manager
of Chennai Circle. He is also credited with the merger of State Bank of Saurashtra in 2008,
where he was a director.
[4]
He has one daughter and one son Pankaj studying in IIT KGP
4. Chandrasekhar Bhaskar Bhave
He is an Indian financial regulator. He was appointed as Chairman of the Securities and
Exchange Board of India (SEBI) in February 2008 for a period of three years. He was SEBI's
senior executive director from 1992 - 1996. After that he became Chairman and Managing
Director of the then newly created National Securities Depository Limited (NSDL). He is
also member of the government’s technology advisory group, TAGUP.
Many prominent personalities including Jaswant Singh(Former Finance Minister), Vinod Rai
(Former Comptroller and Auditor General), Deepak Parekh (Chairman, Housing Development
Finance Corporation), Jairam Ramesh (Rural Development Minister) have described Bhave as an
"outstanding, honest and upright" officer.
5. Dr. Kamalesh Chandra Chakrabarty or K.C. Chakrabarty
He is an Indian Banker who served as one of the four Deputy Governors of the Reserve Bank of
India from 15 June 2009 to 20 March 2014. His current portfolio comprises Secretary's
Department, Department of Banking Supervision, Financial Stability Unit, Human Resource
Management Department, Rajbhasha Department, Department of Currency Management,
Deposit Insurance and Credit Guarantee Corporation, Customer Service Department and the
Rural Planning and Credit Department.
Dr. Chakrabarty has outstanding academic credentials. He is a second rank holder in his
bachelor’s degree in science, first rank holder gold medalist in M.Sc statistics and has a doctorate
in statistics from the Banaras Hindu University. He started his career in teaching and research at
the same University he worked for 26 years in the Bank of Baroda and went on to become
Chairman of the Indian Bank and then Punjab National Bank before being appointed as Deputy
Governor.

10


1.3 Location selection
Location selection has a strategic importance for many companies. The general procedure for
making location decisions usually consists of the following steps:
 Decide on the criteria that will be used to evaluate location alternatives;
 Select the criteria that are important;
 Develop location alternatives and select the alternatives evaluated.
Selecting a location is very important decision for firms because they are costly and difficult to
reverse. A poor choice of location might result in excessive transportation costs, lost of qualified
labor, competitive advantage or some similar condition that would be detrimental to operations.
Each organization should consider meaningful criteria for location selection suitable to its
mission and strategy in order to make an efficient and effective strategic decision.
There are various factors which could affect the decision of selecting a location. Alternatives
could be evaluated on the following factors:
a) Demographics (total population, urbanization rate etc,)
b) Socioeconomic ( literacy rate, population with higher education, employee rate)
c) Sectoral Employment (agricultural employment rate, manufacturing employment rate,
service employment rate)
d) Banking (no of existing banks and branches)
e) Trade Potential ( no of firms )
We are a new bank, so our main customers will be the middle-income group. The higher income
group has high expectations from a bank, being a new bank it becomes difficult for us to fulfill
all of them. The lower income group has very less to save/store and also have trust issues with a
new bank, so they cannot become a major part of our target segment. So, we will target the
middle income group which can actually consider our bank with less trust issues. It has been
described in three phases as shown below

11

 Phase 1:
In this phase we are basically establishing two branches in tier-1 cities and at least one
branch in tier-2 and tier-3 cities, reason being the major chunk of the business comes
from tier-1 cities, since they are industrial hubs. Once, we have a established a relation
with the corporate employees then we can have a trickle-down effect in terms of their
employees’ accounts, which will be long lasting. This is also done keeping in mind the
size of these cities, so initiating with just single branches will not be of much use.

Classification of City Name of City No. of Branches
Tier-1 Delhi 2
Tier-1 Mumbai 2
Tier-1 Chennai 2
Tier-1 Kolkata 2
Tier-2 Chandigarh 1
Tier-2 Ahmedabad 1
Tier-2 Indore 1
Tier-2 Pune 1
Tier-2 Ludhiana 1
Tier-2 Surat 1
Tier-2 Kochi 1
Tier-3
Ramsar( Ajmer)

1
Tier-3
Tinchuley (Darjiling)

1
Tier-3
Kotla (Firozabad)

1
Tier-3
Datta (Hisar)

1
Tier-3
Dholi (Muzaffarpur)

1

 Phase 2 (Expansion:
In this phase additional cities and branches will be covered and 25 new branches will be
there. Basically, we plan on increasing our presence in the tier-2 cities where our major
12

customer segment resides. This will help us in building trust, enhancing their branch
experience and increasing customer involvement. Breakup is as follows:
 Tier 1: 2 cities::10 Branches: Bangalore, Hyderabad

 Tier 2: 9 cities::10 Branches: Guwahati, Jammu, Nagpur, Merrut, Kanpur,
Dehradun, Ranchi, Gwalior

 Tier 3: 5 Cities::5 Branches: Bhidi (Wardha), Sunray (Vishakhapatnam),
Bharatpur (Ujjain), Perur (Tirupati), Janki (Siliguri)
Classification of City Name of City No. of Branches
Tier-1 Delhi 2
Tier-1 Mumbai 2
Tier-1 Chennai 2
Tier-1 Kolkata 1
Tier-1 Bangalore 2
Tier-1 Hyderabad 1
Tier-2 Guwahati 1
Tier-2 Jammu 1
Tier-2 Nagpur 1
Tier-2 Jaipur 1
Tier-2 Meerut 1
Tier-2 Kanpur 1
Tier-2 Dehradun 1
Tier-2 Chandigarh 1
Tier-3
Bhidi (Wardha)
1
Tier-3
Sunray(Vishakhapatnam)
1
Tier-3
Bharatpur(Ujjain )

1
Tier-3
Perur (Tirupati)

1
Tier-3
Janki (Siliguri)

1

13

 Phase 3 (Penetration):
In this phase we plan to increase maximum branches in tier-2 cities specifically. Tier-3
are basically considered due to RBI specifications. Now, this is for the overall expansion
and presence of the bank in most of the parts of the country.We termed it as penetration
phase
Classification of City Name of City No. of Branches
Tier-1 Delhi 2
Tier-1 Mumbai 2
Tier-1 Chennai 2
Tier-1 Kolkata 2
Tier-1 Bangalore 2
Tier-2 Chandigarh 2
Tier-2 Ahmedabad 2
Tier-2 Ludhiana 2
Tier-2 Surat 2
Tier-2 Indore 1
Tier-2 Pune 1
Tier-2 Kochi 1
Tier-2 Guwahati 1
Tier-2 Jammu 1
Tier-2 Ranchi 1
Tier-2 Gwalior 1
Tier-2 Nagpur 1
Tier-2 Jaipur 1
Tier-2 Meerut 1
Tier-2 Kanpur 1
Tier-2 Dehradun 1
Tier-3 Wardha 1
Tier-3 Vishakhapatnam 1
Tier-3 Ujjain 1
14

Tier-3 Tirupati 1
Tier-3 Siliguri 1
Tier-3 Ajmer 1
Tier-3 Darjiling 1
Tier-3 Firozabad 1
Tier-3 Hisar 1
Tier-3 Muzaffarpur 1



15

1.4 Organization Structure


Chairman
& M.D
Executive
Director
National
Head
Regional
Head
Banking
General
Manager
Branch
Manager
Personal
Bankers
Support
Staff
Sales
General
Manager
Area Sales
Manager
Dept. Sales
Manager
Team
Leader
16

1.5 Committees of Bank:
The Central Board has constituted eight Board Level Committees:
1. Audit Committee: The Audit Committee of the Board of Directors functions with the
following main objectives:
 To provide direction and to oversee the operation of the audit function.
 To review the internal audit system with special emphasis on its quality and
effectiveness.
 To discuss matters related to frauds.
 ACB reviews the Bank’s financial, Risk Management, IS Audit Policies and Accounting
Policies/Systems of the Bank to ensure greater transparency
 To review, with the management, the quarterly financial statements before submission to
the Board for its approval
 To look into the reasons for substantial defaults in the payment to the depositors,
debenture holders, shareholders (in case of non-payment of declared dividends) and
creditors.
2. Risk Management Committee: The Risk Management Committee of the Board of Directors
functions with the following main objectives:
 To perform the role of Risk Management in pursuance of the Risk Management
Guidelines issued periodically by RBI and Board.
 To advise the Board on all high level risk matters.
 To review the Asset Liability Management (ALM) of the Bank on a regular basis.
 To consider any major regulatory issues that may have bearing on the risks and risk
appetite of the Bank
 To provide to the Board with such additional assurance as it may require regarding the
quality of risk information submitted to it.
3. Shareholders’/Investors’ Grievance Committee: The primary objective of the
Shareholders/Investors Grievance Committee is to look into redressal of shareholders’ and
17

investors’ grievances relating to non-receipt of dividend, refund orders, shares sent for transfer,
non-receipt of Annual Report and other similar grievances.
4. Customer Service Committee: The Customer Service Committee of the Board of Directors
functions with the following main objectives:
 Overseeing the functioning of the Bank’s internal committee set-up for customer service.
 To review the level of customer service in the Bank including customer complaints and
the nature of their resolution.
 Provide guidance in improving the customer service level.

5. IT Strategy Committee: The IT Strategy Committee functions with the following main
objectives:
 Approving IT strategy and policies.
 Ensuring that the IT organizational structure serves business requirements and direction.
 Assessing if IT architecture has been designed to derive maximum business value.
 Reviewing IT performance measurement and contribution to businesses;
6. HR & Remuneration Committee: The HR and Remuneration Committee of the Board of
Directors functions with the following main objectives:
 To review and recommend for the approval of the Board, the total increase in manpower
cost budget of the Bank at an aggregate level, for the next year.
 To review organization health through feedback from employee surveys conducted on a
regular basis.
 To review the Code of Conduct and HR strategy, policy and performance appraisal
process within the Bank, as well as any fundamental changes in organization structure
which could have wide ranging or high risk implications.
 To review the performance of the MD & CEO and other Whole Time Directors at the end
of each year.
 To recommend to the Board the compensation payable to the Chairman of the Bank.
18

 To review appointments, promotions and exits of senior managers one level below the
MD & CEO.
1.6 Manpower Plan
This helps in determining number of employees required in each phase and in each tier for the
functioning of bank.
 Phase 1:

Calculation part:
1) No of employees in T1:
No of employees in one branch - 15
Number of branches = 8
Thus Total :: 15*8= 120
2) No of employees in T2:
No of employees in one branch - 25
Number of branches = 7
Classification of City No. of Employees
Tier-1 120
Tier-2 175
Tier-3 50
TOTAL 345
19

Thus Total :: 25*7= 175
3) No of employees in T3:
No of employees in one branch - 10
Number of branches = 5
Thus Total :: 10*5= 50
Similarly for phase 2 and phase, calculations are carried out.
 Phase 2:
Classification of City No. of Employees
Tier-1 150
Tier-2 250
Tier-3 50
TOTAL 450

 Phase 3:
Classification of City No. of Employees
Tier-1 150
Tier-2 500
Tier-3 100
TOTAL 750

20

1.7 Marketing plan
We will be intending to maintain an extensive marketing campaign that will ensure maximum
visibility for the business in its targeted market. Below is an overview of the marketing strategies
and objectives of the Commercial Bank.
1.7.1 Marketing Objectives
 To open and establish a new bank named MyBank in different cities so as to add one
million new customers to the bank in the next 3 years while attracting good quality
depositors and loaners.
 To open 85 branches and 300 ATMs in the location selected by 2017.

In order to assess the economic and commercial viability of the proposed bank, it is
imperative to analyze the following factors:

1) MARKET OVERVIEW: -
Target Customers: The main target customers for the proposed branch of the bank would be:
a) Middle Income Group
b) Small and medium sized companies in the nearby commercial spaces
c) Corporate Houses in the adjoining areas
 The main target would be attracting good quality depositors on account of current
account and savings account (CASA), which are low cost funds for the bank. Big
corporate houses in the vicinity would also hold huge potential.
2) COMPETITION
Competitiors: are ICICI Bank, AXIS Bank, Yes Bank etc.
These are well-established banks with strong customer base, and hence would provide stiff
competition. Therefore, providing differentiated customized products on competitive rates would
be imperative. For example:
21

 Step up loans for customers (mainly students or executives) who are at the verge of
beginning their careers wherein differential EMI structure is enabled, such that, the
borrower would pay lower EMIs in the early years of the term loan, and higher EMIs
in the later stages of the term loan.
 Step down loans for customers who are middle aged or reaching retirement in the
near future wherein the borrower is liable to pay higher EMIs in the early years of the
term loan and lower in the subsequent following years, providing additional benefit of
managing funds as per an individual’s career phase and requirements

SWOT ANALYSIS




STRENGTHS
Valuable contributor to
GDP
Regulatory environment
Government Support
WEAKNESSES
Low penetration
Lack of product
differentiation
Increasing NPA
OPPORTUNITIES
Globalization
Untapped Rural Market
Modern Technology
THREATS
Unorganized money
lending market
Customer dissatisfaction
Rise of monopolistic
structures
22

3) PRODUCTS AND SERVICES
The product and services to be offered needs to be differentiated and competitive and must cater
to the needs and requirement of each target segment:
1) Middle Income Group: Customers of middle income group would be offered with following
products and services from the bank portfolio:
 PAYMENT SERVICES – Credit cards, debit cards, Online money transfer
 DEPOSITS - term deposits and recurring deposits, Accepting deposits from customers &
lending these funds to borrowers.
 LOANS – Housing loans, car loans, educational loans, gold loans, personal loans.
 SERVICES – Net banking, mobile banking, phone banking, ATMs.
2) Small and medium companies: Customers from this sector would be offered with following
products and services from the bank portfolio:
 DEPOSITS –Salary accounts, fixed deposits, demat account, recurring account.
 LOANS – Professional loans- – term loans or overdrafts with maximum amount of
finance of less than 3 Crores.
 SERVICES – Insurance covers, investment advisory services, net banking, mobile
banking, phone banking, ATMs.
3) Big corporate houses: Customers from this sector would be employees of these companies,
and can be offered with following products and services from the bank portfolio:
 DEPOSITS –Salary accounts, fixed deposits, demat accounts, recurring account.
 LOANS – Personal loans, housing loans etc.
 SERVICES – Insurance covers, investment advisory services, net banking, mobile
banking, phone banking, ATMs

23

Add-on benefits
 Currency exchange transactions
 Safe keeping of valuables
 Insurance services
 Retirement plans
 Zero balance accounts
 Competitive deposit and loan rates
 Multi-city cheque facility
 Unlimited withdrawal from the ATM of any bank without any charges on transaction
cost.
1.7.2 Marketing Strategies

Number of marketing strategies is used to generate depositors and borrowers for MyBank. We
will intend to use following tactics which will further increase visibility of our Bank.

 Events and experiences: Events should be organized to create awareness about our bank
and to educate customers about the financial services offered by our bank.

 Advertising: Advertising can be done by using TV & Radio to aware customers and
also using posters & signs at different locations.

 Personal Selling: A group of sales team would be trained to interact with the prospective
customers face-to-face to handle the doubts about the banks & also about the products &
services offered by the bank.


24

1.7.3 PRODUCT PORTFOLIO - DEPOSITS
1. Savings accounts:
Accounts maintained by retail banks that pay interest but cannot be used directly as money (for
example, by writing a cheque). Although not as convenient to use as checking accounts, these
accounts let customers keep liquid assets while still earning a monetary return.
Generally returns are around 6%. So, we have kept it as per the market trends.
2. Current accounts:
A deposit account held at a bank or other financial institution, for the purpose of securely and
quickly providing frequent access to funds on demand, through a variety of different channels.
Because money is available on demand these accounts are also referred to as demand accounts.
As a competitive advantage, we are giving interest at a rate of 1% to attract more deposits
3. Term deposit:
A money deposit at a banking institution that cannot be withdrawn for a preset fixed 'term' or
period of time. When the term is over it can be withdrawn or it can be rolled over for another
term. Generally speaking, the longer the term, the better the yield on the money.
Interest rates vary as per the RBI policies and the economic condition of the country. We are
providing at 11.9% average rate

25

1.8 Balance Sheet & P/L for 3 years

AMOUNT(cr.) RATE AVG. SIZE No of Account Holding
SAVINGS A/C 390 6.00% 10000 390cr/10000= 39000 0
CURRENT A/C 90 1% 15000 90cr/15000= 6,000 0
TERM DEPOSITS 120 11.9% 40000 120cr/40000= 30000

LOANS AND ADVANCES
Year End Advances- 475 cr
AMOUNT(cr.) RATE AVG. SIZE(lakh)
Home loan 160 9% 25
Auto loan 90 10% 5
Personal loan 80 11.25% 2
Educational loan 115 10.5% 5
Credit cards 30 17% 1

26

Our loan portfolio mainly comprises of the housing loans. This is because of the existing
residential area and the new upcoming housing projects in the vicinity of our branch location.
This will help us in developing large customer base.
Capital Expenditure
Particulars Quantity Price Total cost
ATM Machine 100 1200000 120000000
Computer 160 40000 6400000
Printer 80 4000 320000
Fax machine 40 8000 320000
Photocopier 80 40000 3200000
Modem 160 5000 800000
Server 80 50000 4000000
Security Camera 200 8000 1600000
Generator 60 40000 2400000
Alarm System 40 40000 1600000
Air Conditioner 120 50000 6000000
Telephone lines 120 3000 360000
Cash counting machine 60 30000 1800000
Coffee Machine 40 10000 400000
Bank vehicle 20 1000000 20000000
Water Cooler 40 50000 2000000
Safe & Lockers 200 150000 30000000
Miscellaneous 4300000
Total 207500000


27

 Financial Estimates
CAPITAL AND LIABILITIES
For year 1 For year 2 For year 3
Capital 500 500 500
Reserves and surplus 0 0 0
Deposits 600 750 1000
Borrowings 0 0 0
Other Liabilities and Provisions 16.625 21 29.75
Total 1116.625 1271 1529.75
ASSETS
Cash and Balances with reserve Bank Of India 294 337.5 305
Balances with banks and money at call 53.625 35.5 59.75
Investments 270 300 250
Advances 475 570 850
Fixed Assets 20.75 23 50
Other Assets 3.25 5 15
Total 1116.625 1271 1529.75











28

 Income Statement
Particulars Year1 Year2 Year 3
Income
Interest earned 49.875 58.425 87.125
Other Income 14.25 18 25.5
Total 64.125 76.425 112.63
Expenditure
Interest Expended 39 45 62.5
Operating Expenses 12 13.125 12.5
Provisions and Contingent 16.625 19.95 29.75
Miscellaneous 3.56 5 8
Total Expenditure 71.185 83.075 112.75
Profit before tax -7.06 -6.65 -0.125
Income Tax nil nil nil
PAT
P&L Appropriations -7.06 -4.625 -0.125
Statutory Reserve (25%) nil nil nil
Balance in P&L nil nil nil
Total Reserves nil nil nil







29

References
1. http://en.wikipedia.org/wiki/Board_of_directors
2. http://www.bajajfinserv.in/our-brand.aspx
3. http://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_India
4. http://www.bajajfinserv.in/finance/awards-and-accomplishments.aspx
5. http://en.wikipedia.org/wiki/Anand_Sinha
6. http://en.wikipedia.org/wiki/Usha_Thorat
7. http://en.wikipedia.org/wiki/Pratip_Chaudhuri
8. http://en.wikipedia.org/wiki/C._B._Bhave
9. http://en.wikipedia.org/wiki/Kamalesh_Chandra_Chakrabarty