Description
ANALYSIS OF BANKING INDUSTRY
7 P'S
SWOT ANLYSIS
AXIS BANK
ANALYSIS OF BANKING INDUSTRY On the Basis of 7Ps and S.W.O.T
Su !itted To Su !itted B" #$. %i&a" Na'$ani (ain )*+, )./,
1
%edansh Shish -ant
S.NO 1 4 3
PARTI0ULAR A0KNOW2DG2#2NT 2520UTI%2 SU##ARY INTRODU0TION A6is BanYes BanKota- #ahind$a Ban-
Pa'e No. 3 .
* + 7
.
0O#PARISON P$odu7t P$i7e P9a7e P$o!otion Peo:9e P$o7ess Ph"si7a9 e;iden7e / 18 18 11 14 14 13 1. 1< 41 43 4*
*
SWOT ANSLYSIS A5IS BanY2S BanKota- #ahind$a Ban-
+
APP2NDI5
2
0ONT2NT
A0KNOWL2DG2#2NT
“For any successful work, it owes its thanks to many” Hard work, knowledge, dedication & positive attitude all are necessary to do any task successfully but one ingredient which is also very important than others and at times more important than others is cooperation & guidance of experts and experienced person. Firstly I would like to extend my heartfelt gratitude to #$. %i&a" Na'$ani, for his guidance throughout the pro ect! "ithout his support and cooperation I would have failed in my endeavours and targets in this pro ect #eport!
$
2520UTI%2 SU##ARY %he rise of retail lending in emerging economies like India has been of recent origin! &sia 'acific(s vast population, combined with high savings rates, retail explosive economic growth, services, provide the and most underdeveloped banking
significant growth opportunities for banks! )anks will have to serve the retail banking segment effectively in order to utili*e the growth opportunity! )anking strategies are presently undergoing various
transformations, as the overall scenario has changed over the last couple of years! %ill the recent past, most of the banks had adopted fierce cost cutting measures to sustain their competitiveness! %his strategy however has become obsolete in the new light of immense growth opportunities for banking industry! +ost bankers are now confident about their high performance in terms of organic growth and in realising high returns! ,owadays, the growth strategies of banks revolve around customer satisfaction! Improved customer relationship
-
management can only lead to fulfilment of long.term, as well as, short.term ob ectives of the bankers! %his re/uires, efficient and accurate customer database management and development of well.trained sales force to develop and sustain long.term profitable customer relationship! %he banking system in India is significantly different from that of the other &sian nations, because of the country(s uni/ue geographic, social, and economic characteristics! %hough the sector opened up /uite late in India compared to other developed nations, like the 01 and the 02, the profitability of Indian banking sector is at par with that of the developed countries and at times even better on some parameters! For instance, return on e/uity and assets of the Indian banks are on par with &sian banks, and higher when compared to that of the 01 and the 02!
INTRODU0TION A5IS BANK
&xis )ank was the first of the new private banks to have begun operations in 133-, after the 4overnment of India allowed new private banks to be established! %he )ank was promoted ointly
5
by the &dministrator of the specified undertaking of the 0nit %rust of India 60%I . I7, 8ife Insurance 9orporation of India 68I97 and 4eneral Insurance 9orporation of India 64I97 and other four '10 insurance companies, i!e! ,ational Insurance 9ompany 8td!, %he ,ew India &ssurance 9ompany 8td!, %he :riental Insurance 9ompany 8td! and 0nited India Insurance 9ompany 8td! %he )ank today is capitali*ed to the extent of #s! $53!;< crores with the public holding 6other than promoters7 at 5;!;3=! %he )ank>s #egistered :ffice is at &hmedabad and its 9entral :ffice is located at +umbai! %he )ank has a very wide network of more than ?5$ branches and @xtension 9ounters 6as on $Ath Bune 2AA37! %he )ank has a network of over $;2$ &%+s 6as on $Ath Bune 2AA37 providing 2- hrs a day banking convenience to its customers! %his is one of the largest &%+ networks in the country! %he )ank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence!
<
INTRODU0TION OF Y2S BANK C@1 )&,2 pursues a strong @mployee Dalue 'roposition of E9reating & 1haring Dalue(, with a vision to build an organisation, driven by 'rofessional @ntrepreneurship, where all C@1 )ankers truly partner to direct, manage and accelerate the development of C@1 )&,2 as the Coung and Fynamic )ank of G@merging IndiaH! It is this untiring and relentless passion for 'rofessional
@ntrepreneurship that has resulted in C@1 )&,2 being recently ranked as the %HI#F )est )ank in India by )usiness world! C@1 )&,2 also received the 9ontinuous Innovation in H# 1trategy award at %he India times +indscape @mployer )randing &wards 2AA;! C@1 )&,2 recogni*es that the only real source of sustainable competitive advantage for an organi*ation is the power of its High Iuality Human 9apital! %herefore, we foster a leadership mindset that embraces meritocracy as a vital force to reward performance and exceptional competency! "e have also institutionali*ed various key strategic initiatives includingJ :ur :b ectives
• •
%o build a strong employer brand! %o attain a preferred employer status in the )anking and Financial 1ervices industry!
;
%o ensure that the )ank is able to attract, engage and retain high /uality human capital for its long.term success!
INTRODU0TION KOTAK #A=INDRA BANK @stablished in 13?5, the 2otak +ahindra group has been one of India>s reputed financial organi*ations! It was previously known as the 2otak +ahindra Finance 8imited, a non.banking financial organi*ation! In February 2AA$, 2otak +ahindra Finance 8td, the group>s flagship company was given the license to carry on banking business by the #eserve )ank of India 6#)I7! %his approval created banking history since 2otak +ahindra Finance 8td! is the first non.banking finance company in India to convert itself in to a bank as 2otak +ahindra )ank 8td! %he bank has a base of ?AAAK employees! "ithin a small span of < years, the bank has spread it wings in several sphere of finances! 'resently, spread in ?2 cities in India, the bank caters to the needs of its 5!3 million customers spread throughout the length and breadth of country and even abroad! 2otak +ahindra )ank has over 21; branches spread across 12< locations in the country offering both traditional banking products
?
and investment advisory services! %he )ank has the products, the experience, really work! %he )ank offers comprehensive business solutions that include %rade 1ervices, 9ash +anagement 1ervice and 9redit facilities, keeping in mind the needs of the business community! the infrastructure and most importantly the commitment to deliver pragmatic, end to. end solutions that
0O#PARISON ON T=2 BASIS OF 7Ps PRODU0T
A5IS BANK Y2S BANK KOTAK BANK
)anking and 1avings )anking and 1avings )anking and 1avings
•
)anking &ccounts
and
•
)anking &ccounts
and
•
)anking &ccounts
and
•
9onvenience )anking
•
9onvenience )anking
•
9onvenience )anking
• • •
9redit 9ards ,#I 1ervices Femat
• • •
9redit 9ards ,#I 1ervices Femat
• • •
9redit 9ards ,#I 1ervices Femat
3
•
Feposits
•
Feposits
•
Feposits
9orporate Institutional
•
and 9orporate Institutional
•
and 9orporate Institutional
•
and
9orporate Finance %reasury Investment )anking
9orporate Finance %reasury Investment )anking
9orporate Finance %reasury Investment )anking
• •
• •
• •
•
Institutional @/uities
•
Institutional @/uities
•
Institutional @/uities
Investments Insurance
• • •
and Investments Insurance
• • •
and Investments Insurance
• • •
and
8ife Insurance +utual Funds 4old
8ife Insurance +utual Funds 4old
8ife Insurance @state 'lanning +utual Funds
1A
• •
1hare %rading
• •
1hare %rading
• •
4old 1hare %rading
8oans )orrowings
• •
and 8oans )orrowings
• •
and 8oans )orrowings
• •
and
9ar Finance 9ommercial 8oans
9ar Finance 9ommercial 8oans
9ar Finance 9ommercial 8oans
• • •
Home 8oans 'ersonal 8oans 8oans &gainst 'roperty
• •
Home 8oans 'ersonal 8oans 8oans &gainst 'roperty
• •
Home 8oans 'ersonal 8oans 8oans &gainst 'roperty
•
•
•
&griculture 8oan
PRI02
11
A5IS BANK
Y2S BANK
KOTAK BANK
%he pricing decisions or the decisions related to interest and fee or commission charged by banks are found instrumental in motivating or influencing the target market! %he #)I and the I)& are concerned with regulations! %he rate of interest is regulated by the #)I and other charges are controlled by I)&!
PLA02
A5IS BANK Y2S BANK KOTAK BANK
1pread In 12< 9ities In India 21; )ranches 1pread &cross :ver ?AA &%+
?2; )ranch $535 &%+ 1; 1tate In India
12$ )ranch Future %arget 2A15 Is $AAA &%+ &cross 9ountry
12
PRO#OTION
A5IS BANK
Ad;e$tisin'> %elevision #adio +ovies
Y2S BANK
Ad;e$tisin'> %elevision #adio +ovies %heatres
KOTAK BANK
Ad;e$tisin'> %elevision #adio
P$int #edia> Hoardings ,ewspaper +aga*ines
P$int #edia> ,ewspaper +aga*ines
P$int #edia> Hoardings ,ewspaper +aga*ines
Pu 9i7it"> 9ampus Disits 1ponsorship
Pu 9i7it"> 9ampus Disits 1ponsorship
Pu 9i7it"> 9ampus Disits 1ponsorship
Sa9es P$o!otion> 4ifts Pe$sona9 Se99in'> 9ross.1ale 61elling &t
Sa9es P$o!otion> 4ifts Pe$sona9 Se99in'> 9ross.1ale 61elling &t 9ompetitors
1$
Sa9es P$o!otion> 4ifts Pe$sona9 Se99in'> 9ross.1ale 61elling &t 9ompetitors
9ompetitors 'lace7 'ersonali*ed 1ervice
'lace7 'ersonali*ed 1ervice
'lace7 'ersonali*ed 1ervice
P2OPL2
A5IS BANK Y2S BANK KOTAK BANK
1-AAA @mployee base $15A @mployee )ase
3?AA @mployee )ase
PRO02SS
A5IS BANK Y2S BANK KOTAK BANK
1-
Standa$di?ation> )ank has got standardi*ed procedures got typical transactions! In fact not only all the branches of a single.bank, but all the banks have some standardi*ation in them! %his is because of the rules they are sub ect to! )esides this, each of the banks has its standard forms, documentations etc! 1tandardi*ation saves a lot of time behind individual transaction! 0usto!i?ation> %here are specialty counters at each branch to deal with customers of a particular scheme! )esides this the customers can select their deposit period among the available alternatives! Nu! e$ of ste:s> numbers of steps are usually specified and a specific pattern is followed to minimi*e time taken! Si!:9i7it"> )anks various functions are segregated! 1eparate counters exist with clear indication! %hus a customer wanting to deposit money goes to Edeposits( counter and does not mingle elsewhere! %his makes procedures not only simple but consume less time! )esides instruction boards in national boards in national and regional language help the customers further! 0usto!e$ in;o9;e!ent> &%+ does not involve any bank employees! )esides, during usual bank transactions, there is definite customer involvement at some or the other place because of the money matters and signature re/uires!
P=YSI0AL 2%IDAN02
A5IS BANK
• InternetL"eb 'ages • 'aperwork • )rochures
Y2S BANK
• InternetL"eb 'ages • 'aperwork • )rochures
15
KOTAK BANK
• InternetL"eb 'ages • 'aperwork • )rochures
• Furnishings • )usiness 9ards • )uilding
• Furnishings • )usiness 9ards • )uilding
• Furnishings • )usiness 9ards • )uilding
• 1ignage • Financial #eports • %angibles • 'unch 8ines • @mployee(s Fress 9ode
• 1ignage • Financial #eports • %angibles • 'unch 8ines • @mployee(s Fress 9ode
• 1ignage • Financial #eports • %angibles • 'unch 8ines • @mployee(s Fress 9ode
SWOT ANALYSIS OF BANKS
STR2NGT= • Indian banks have compared favourably on growth, asset /uality and profitability with other regional banks over the last few years! %he banking index has grown at a
1<
compounded annual rate of over 51 per cent since &pril 2AA1 as compared to a 2; per cent growth in the market index for the same period! • 'olicy makers have made some notable changes in policy and regulation to help strengthen the sector! %hese changes include strengthening prudential norms, enhancing the payments system and integrating regulations between commercial and co.operative banks! • )ank lending has been a significant driver of 4F' growth and employment! • 26tensi;e $ea7h> the vast networking & growing number of branches & &%+s! Indian banking system has reached even to the remote corners of the country! • %he government>s regular policy for Indian bank since 13<3 has paid rich dividends with the nationalisation of 1- ma or private banks of India! • In terms of /uality of assets and capital ade/uacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region! • India has ?? scheduled commercial banks 619)s7 . 2; public sector banks 6that is with the 4overnment of India holding a stake7after merger of ,ew )ank of India in 'un ab ,ational
1;
)ank in 133$, 23 private banks 6these do not have government stakeM they may be publicly listed and traded on stock exchanges7 and $1 foreign banks! %hey have a combined network of over 5$,AAA branches and 1;,AAA &%+s! &ccording to a report by I9#& 8imited, a rating agency, the public sector banks hold over ;5 percent of total assets of the banking industry, with the private and foreign banks holding 1?!2= and <!5= respectively! • Foreign banks will have the opportunity to own up to ;- per cent of Indian private sector banks and 2A per cent of government owned banks!
1?
W2AKN2SS • '1)s need to fundamentally strengthen institutional skill levels especially in sales and marketing, service operations, risk • :ld • %he management private cost of sector and banks the also overall have organi*ational the high need and to performance ethic & strengthen human capital! fundamentally strengthen skill levels! intermediation remains bank penetration is limited to only a few customer segments and geographies! • 1tructural weaknesses such as a fragmented industry structure, restrictions on capital availability and deployment, lack of institutional support infrastructure, restrictive labour laws, weak corporate governance and ineffective regulations beyond 1cheduled 9ommercial )anks 619)s7, unless industry utilities and service bureaus! • Refusa9 to di9ute sta-e in PSU an-s> %he government has refused to dilute its stake in '10 banks below 51= thus choking the headroom available to these banks for raining e/uity capital!
13
• I!:edi!ents in se7to$a9 $efo$!s>
position from 8eft and resultant cautious approach from the ,orth )lock in terms of approving merger of '10 banks may hamper their growth prospects in the medium term!
OPPORTUNITY • %he market is seeing discontinuous growth driven by new products and services that include opportunities in credit cards, consumer finance and wealth management on the retail side, and in fee.based income and investment banking on the wholesale banking side! %hese re/uire new skills in sales & marketing, credit and operations! • )anks will no longer en oy windfall treasury gains that the decade.long secular decline in interest rates provided! %his will expose the weaker banks! • "ith increased interest in India, competition from foreign banks will only intensify!
2A
• 4iven the demographic shifts resulting from changes in age profile and household income, consumers will increasingly demand enhanced institutional capabilities and service levels from banks! • ,ew private banks could reach the next level of their growth in the Indian banking sector by continuing to innovate and develop differentiated business models to profitably serve segments like the ruralLlow income and affluentLH,I segmentsM actively adopting ac/uisitions as a means to grow and reaching the next level of performance in their service platforms! &ttracting, developing and retaining more leadership capacity • Foreign banks committed to making a play in India will need to adopt alternative approaches to win the Grace for the customerH and build a value.creating customer franchise in advance of regulations potentially opening up post 2AA3! &t the same time, they should stay in the game for potential ac/uisition opportunities as and when they appear in the near term! +aintaining a fundamentally long.term value. creation mindset! • reach in rural India for the private sector and foreign banks! • "ith the growth in the Indian economy expected to be strong for /uite some time.especially in its services sector. the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong!
21
• the #eserve )ank of India 6#)I7 has approved a proposal from the government to amend the )anking #egulation &ct to permit banks to trade in commodities and commodity derivatives! • Li e$a9isation of 20B no$!s> %he government also liberalised the @9) norms to permit financial sector entities engaged in infrastructure funding to raise @9)s! %his enabled banks and financial institutions, which were earlier not permitted to raise such funds, explore this route for raising cheaper funds in the overseas markets! • =" $id 7a:ita9> In an attempt to relieve banks of their capital crunch, the #)I has allowed them to raise perpetual bonds and other hybrid capital securities to shore up their capital! If the new instruments find takers, it would help '10 banks, left with FII little and headroom for raising limits in e/uity! these 1ignificantly, ,#I investment
securities have been fixed at -3=, compared to 2A= foreign e/uity holding allowed in '10 banks!
T=R2ATS • %hreat of stability of the systemJ failure of some weak banks has often threatened the stability of the system!
22
• #ise in inflation figures which would lead to increase in interest rates! • Increase in the number of foreign players would pose a threat to the '1) private players! as well as the
SWOT ANALYSIS OF A5IS BANK
1. STR2NGT= • @xtremely 9ompetitive &nd 'rofitable )anking Franchise • )anking 1ervices Include 9orporate 9redit, #etail )anking, )usiness )anking, 9apital +arkets, %reasury &nd International )anking! • 1ound %echnological 'latform "ith 9entrali*ed Fatabase &nderations • Retai9 Ban-in' 1avings )ank Feposits 4rew %o #s! 25,?22 9r! :n $1st +arch 2AA3 From #s! 13,3?2 9r! &s :n $1st +arch 2AA? 1howing & Cear :n Cear 4rowth :f 23=! • 0o$
$ate Ban-in'J 9urrent &ccount deposits grew by 2-= yoy, from #s! 2A,A-5 crores as at end +arch(A? to #s! 2-,?22 crores as at end +arch(A3!
2$
• 1upport of various 'romoters • 1trong technology • %otal Feposits #s 1,1;,$;- crore • ,et &dvances #s ?1,55; crore • ,et ,'& A!$5= • 9apital &de/uacy #atio 1$!<3= 4. W2AKN2SS • ,ot having Image 0%I 6fraud7 • Higher cost • 9ustomer service • +arket 9apitali*ation Dery 8ow
3. OPPORTUNITY • 8arge retail and corporate market • "ide scope in rural India • :ther &ctivity 6,on )anking &ctivity7 • 'eople are become more service oriented
.. T=R2AT
2-
• :ther better 1aving, investment option available 6like Insurance, +utulfund, #eal.estate, 4old7 • 4overnment #ules &nd #egulation
•
Dery hi'h 7o!:etition @ith P$i;ate se7to$ )I9I9I )ank, HFF9 bank7 or public sector 6)
, ',)7 )ank!
• 9apital +arket slow.down • #ising #ates • Future +arket %rands
SWOT ANALYSIS OF Y2S BANK
1.STR2NGT=
• High Iuality, 9ustomer 9entric, 1ervice Friven, 'rivate Indian )ank 9atering %o %he GFuture Industries :f IndiaH! • %he )ank Has &dopted International )est 'ractices, %he Highest 1tandards :f 1ervice Iuality &nderational @xcellence,
•
"orld.9lass %eam, )ased :n 'rofessional #ecruitment +ethodologies, &nd &ttract %he )est %alent In %he Industry
25
•
)uilding 9ulture.
8earning
&nd
Fevelopment
1olutions
%hat
9ontinuously @nhance @mployee Dalue, High 'erformance
• •
9redible &nd %ransparent 'erformance +anagement 'rocess #obust #ewards &nd #ecognition 1trategy
• 1trong technology, "ell capitali*ed • %otal Feposits #s 1,<1,<3- million • ,et &dvances #s 12-,A$1 million • ,et ,'& A!$$= • 9apital &de/uacy #atio 1<!<=
4.
W2AKN2SS
• • • •
8ess wide network ,ot in every state 8ess promotional activity 0nknown brand
3. OPPORTUNITY
• •
Dery wide market :ther activity6insurance, stock broking, mutulfund7
2<
•
"ide scope in $u$a9 a$ea
.. T=R2AT
•
Dery hi'h 7o!:etition 'rivate bank market 6I9I9I )ank, HFF9 bank7, In public sector 6), ',)7
•
4overnment 'olicy
• :ther better 1aving, investment option available 6like Insurance, +utulfund, #eal.estate, 4old7 • 9apital +arket slow.down • #ising #ates
SWOT ANALYSIS OF KOTAK #A=INDRA BANK
1.STR2NGT=S>
• 9apital markets franchise • 'rofessional management • 1trong technology • "ell capitali*ed • 9onstruction e/uipment financing business • 9omprehensive cash management system • 9apturing supply chain businesses
2;
• ,'& is at 1!$A= • %otal Feposits #s 15,<-5 crore
•
,et &dvances #s 1<,<25 crore
• 9apital &de/uacy #atio 1<=
4.W2AKN2SS>
• "holesale Funding 9osts • 8atecomers • 8ess 'romotional &ctivities 3. OPPORTUNITI2S> • 8ow loan and retail penetration • 1tressed &sset )usiness • 'lans to invest #s! 12A crores over three years for infrastructure, technology and personnel
.. T=R2ATS> • 9apital +arket slow.down • 9ompetition • #ising #ates • :ther better 1aving, investment option available 6like Insurance, +utulfund, #eal.estate, 4old7
2?
• 4overnment #ules &nd #egulation
APP2NDI5
• "ebsite • ,ewspaper • +aga*ine • &nnual #eport
AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA
23
doc_683539195.doc
ANALYSIS OF BANKING INDUSTRY
7 P'S
SWOT ANLYSIS
AXIS BANK
ANALYSIS OF BANKING INDUSTRY On the Basis of 7Ps and S.W.O.T
Su !itted To Su !itted B" #$. %i&a" Na'$ani (ain )*+, )./,
1
%edansh Shish -ant
S.NO 1 4 3
PARTI0ULAR A0KNOW2DG2#2NT 2520UTI%2 SU##ARY INTRODU0TION A6is BanYes BanKota- #ahind$a Ban-
Pa'e No. 3 .
* + 7
.
0O#PARISON P$odu7t P$i7e P9a7e P$o!otion Peo:9e P$o7ess Ph"si7a9 e;iden7e / 18 18 11 14 14 13 1. 1< 41 43 4*
*
SWOT ANSLYSIS A5IS BanY2S BanKota- #ahind$a Ban-
+
APP2NDI5
2
0ONT2NT
A0KNOWL2DG2#2NT
“For any successful work, it owes its thanks to many” Hard work, knowledge, dedication & positive attitude all are necessary to do any task successfully but one ingredient which is also very important than others and at times more important than others is cooperation & guidance of experts and experienced person. Firstly I would like to extend my heartfelt gratitude to #$. %i&a" Na'$ani, for his guidance throughout the pro ect! "ithout his support and cooperation I would have failed in my endeavours and targets in this pro ect #eport!
$
2520UTI%2 SU##ARY %he rise of retail lending in emerging economies like India has been of recent origin! &sia 'acific(s vast population, combined with high savings rates, retail explosive economic growth, services, provide the and most underdeveloped banking
significant growth opportunities for banks! )anks will have to serve the retail banking segment effectively in order to utili*e the growth opportunity! )anking strategies are presently undergoing various
transformations, as the overall scenario has changed over the last couple of years! %ill the recent past, most of the banks had adopted fierce cost cutting measures to sustain their competitiveness! %his strategy however has become obsolete in the new light of immense growth opportunities for banking industry! +ost bankers are now confident about their high performance in terms of organic growth and in realising high returns! ,owadays, the growth strategies of banks revolve around customer satisfaction! Improved customer relationship
-
management can only lead to fulfilment of long.term, as well as, short.term ob ectives of the bankers! %his re/uires, efficient and accurate customer database management and development of well.trained sales force to develop and sustain long.term profitable customer relationship! %he banking system in India is significantly different from that of the other &sian nations, because of the country(s uni/ue geographic, social, and economic characteristics! %hough the sector opened up /uite late in India compared to other developed nations, like the 01 and the 02, the profitability of Indian banking sector is at par with that of the developed countries and at times even better on some parameters! For instance, return on e/uity and assets of the Indian banks are on par with &sian banks, and higher when compared to that of the 01 and the 02!
INTRODU0TION A5IS BANK
&xis )ank was the first of the new private banks to have begun operations in 133-, after the 4overnment of India allowed new private banks to be established! %he )ank was promoted ointly
5
by the &dministrator of the specified undertaking of the 0nit %rust of India 60%I . I7, 8ife Insurance 9orporation of India 68I97 and 4eneral Insurance 9orporation of India 64I97 and other four '10 insurance companies, i!e! ,ational Insurance 9ompany 8td!, %he ,ew India &ssurance 9ompany 8td!, %he :riental Insurance 9ompany 8td! and 0nited India Insurance 9ompany 8td! %he )ank today is capitali*ed to the extent of #s! $53!;< crores with the public holding 6other than promoters7 at 5;!;3=! %he )ank>s #egistered :ffice is at &hmedabad and its 9entral :ffice is located at +umbai! %he )ank has a very wide network of more than ?5$ branches and @xtension 9ounters 6as on $Ath Bune 2AA37! %he )ank has a network of over $;2$ &%+s 6as on $Ath Bune 2AA37 providing 2- hrs a day banking convenience to its customers! %his is one of the largest &%+ networks in the country! %he )ank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence!
<
INTRODU0TION OF Y2S BANK C@1 )&,2 pursues a strong @mployee Dalue 'roposition of E9reating & 1haring Dalue(, with a vision to build an organisation, driven by 'rofessional @ntrepreneurship, where all C@1 )ankers truly partner to direct, manage and accelerate the development of C@1 )&,2 as the Coung and Fynamic )ank of G@merging IndiaH! It is this untiring and relentless passion for 'rofessional
@ntrepreneurship that has resulted in C@1 )&,2 being recently ranked as the %HI#F )est )ank in India by )usiness world! C@1 )&,2 also received the 9ontinuous Innovation in H# 1trategy award at %he India times +indscape @mployer )randing &wards 2AA;! C@1 )&,2 recogni*es that the only real source of sustainable competitive advantage for an organi*ation is the power of its High Iuality Human 9apital! %herefore, we foster a leadership mindset that embraces meritocracy as a vital force to reward performance and exceptional competency! "e have also institutionali*ed various key strategic initiatives includingJ :ur :b ectives
• •
%o build a strong employer brand! %o attain a preferred employer status in the )anking and Financial 1ervices industry!
;
%o ensure that the )ank is able to attract, engage and retain high /uality human capital for its long.term success!
INTRODU0TION KOTAK #A=INDRA BANK @stablished in 13?5, the 2otak +ahindra group has been one of India>s reputed financial organi*ations! It was previously known as the 2otak +ahindra Finance 8imited, a non.banking financial organi*ation! In February 2AA$, 2otak +ahindra Finance 8td, the group>s flagship company was given the license to carry on banking business by the #eserve )ank of India 6#)I7! %his approval created banking history since 2otak +ahindra Finance 8td! is the first non.banking finance company in India to convert itself in to a bank as 2otak +ahindra )ank 8td! %he bank has a base of ?AAAK employees! "ithin a small span of < years, the bank has spread it wings in several sphere of finances! 'resently, spread in ?2 cities in India, the bank caters to the needs of its 5!3 million customers spread throughout the length and breadth of country and even abroad! 2otak +ahindra )ank has over 21; branches spread across 12< locations in the country offering both traditional banking products
?
and investment advisory services! %he )ank has the products, the experience, really work! %he )ank offers comprehensive business solutions that include %rade 1ervices, 9ash +anagement 1ervice and 9redit facilities, keeping in mind the needs of the business community! the infrastructure and most importantly the commitment to deliver pragmatic, end to. end solutions that
0O#PARISON ON T=2 BASIS OF 7Ps PRODU0T
A5IS BANK Y2S BANK KOTAK BANK
)anking and 1avings )anking and 1avings )anking and 1avings
•
)anking &ccounts
and
•
)anking &ccounts
and
•
)anking &ccounts
and
•
9onvenience )anking
•
9onvenience )anking
•
9onvenience )anking
• • •
9redit 9ards ,#I 1ervices Femat
• • •
9redit 9ards ,#I 1ervices Femat
• • •
9redit 9ards ,#I 1ervices Femat
3
•
Feposits
•
Feposits
•
Feposits
9orporate Institutional
•
and 9orporate Institutional
•
and 9orporate Institutional
•
and
9orporate Finance %reasury Investment )anking
9orporate Finance %reasury Investment )anking
9orporate Finance %reasury Investment )anking
• •
• •
• •
•
Institutional @/uities
•
Institutional @/uities
•
Institutional @/uities
Investments Insurance
• • •
and Investments Insurance
• • •
and Investments Insurance
• • •
and
8ife Insurance +utual Funds 4old
8ife Insurance +utual Funds 4old
8ife Insurance @state 'lanning +utual Funds
1A
• •
1hare %rading
• •
1hare %rading
• •
4old 1hare %rading
8oans )orrowings
• •
and 8oans )orrowings
• •
and 8oans )orrowings
• •
and
9ar Finance 9ommercial 8oans
9ar Finance 9ommercial 8oans
9ar Finance 9ommercial 8oans
• • •
Home 8oans 'ersonal 8oans 8oans &gainst 'roperty
• •
Home 8oans 'ersonal 8oans 8oans &gainst 'roperty
• •
Home 8oans 'ersonal 8oans 8oans &gainst 'roperty
•
•
•
&griculture 8oan
PRI02
11
A5IS BANK
Y2S BANK
KOTAK BANK
%he pricing decisions or the decisions related to interest and fee or commission charged by banks are found instrumental in motivating or influencing the target market! %he #)I and the I)& are concerned with regulations! %he rate of interest is regulated by the #)I and other charges are controlled by I)&!
PLA02
A5IS BANK Y2S BANK KOTAK BANK
1pread In 12< 9ities In India 21; )ranches 1pread &cross :ver ?AA &%+
?2; )ranch $535 &%+ 1; 1tate In India
12$ )ranch Future %arget 2A15 Is $AAA &%+ &cross 9ountry
12
PRO#OTION
A5IS BANK
Ad;e$tisin'> %elevision #adio +ovies
Y2S BANK
Ad;e$tisin'> %elevision #adio +ovies %heatres
KOTAK BANK
Ad;e$tisin'> %elevision #adio
P$int #edia> Hoardings ,ewspaper +aga*ines
P$int #edia> ,ewspaper +aga*ines
P$int #edia> Hoardings ,ewspaper +aga*ines
Pu 9i7it"> 9ampus Disits 1ponsorship
Pu 9i7it"> 9ampus Disits 1ponsorship
Pu 9i7it"> 9ampus Disits 1ponsorship
Sa9es P$o!otion> 4ifts Pe$sona9 Se99in'> 9ross.1ale 61elling &t
Sa9es P$o!otion> 4ifts Pe$sona9 Se99in'> 9ross.1ale 61elling &t 9ompetitors
1$
Sa9es P$o!otion> 4ifts Pe$sona9 Se99in'> 9ross.1ale 61elling &t 9ompetitors
9ompetitors 'lace7 'ersonali*ed 1ervice
'lace7 'ersonali*ed 1ervice
'lace7 'ersonali*ed 1ervice
P2OPL2
A5IS BANK Y2S BANK KOTAK BANK
1-AAA @mployee base $15A @mployee )ase
3?AA @mployee )ase
PRO02SS
A5IS BANK Y2S BANK KOTAK BANK
1-
Standa$di?ation> )ank has got standardi*ed procedures got typical transactions! In fact not only all the branches of a single.bank, but all the banks have some standardi*ation in them! %his is because of the rules they are sub ect to! )esides this, each of the banks has its standard forms, documentations etc! 1tandardi*ation saves a lot of time behind individual transaction! 0usto!i?ation> %here are specialty counters at each branch to deal with customers of a particular scheme! )esides this the customers can select their deposit period among the available alternatives! Nu! e$ of ste:s> numbers of steps are usually specified and a specific pattern is followed to minimi*e time taken! Si!:9i7it"> )anks various functions are segregated! 1eparate counters exist with clear indication! %hus a customer wanting to deposit money goes to Edeposits( counter and does not mingle elsewhere! %his makes procedures not only simple but consume less time! )esides instruction boards in national boards in national and regional language help the customers further! 0usto!e$ in;o9;e!ent> &%+ does not involve any bank employees! )esides, during usual bank transactions, there is definite customer involvement at some or the other place because of the money matters and signature re/uires!
P=YSI0AL 2%IDAN02
A5IS BANK
• InternetL"eb 'ages • 'aperwork • )rochures
Y2S BANK
• InternetL"eb 'ages • 'aperwork • )rochures
15
KOTAK BANK
• InternetL"eb 'ages • 'aperwork • )rochures
• Furnishings • )usiness 9ards • )uilding
• Furnishings • )usiness 9ards • )uilding
• Furnishings • )usiness 9ards • )uilding
• 1ignage • Financial #eports • %angibles • 'unch 8ines • @mployee(s Fress 9ode
• 1ignage • Financial #eports • %angibles • 'unch 8ines • @mployee(s Fress 9ode
• 1ignage • Financial #eports • %angibles • 'unch 8ines • @mployee(s Fress 9ode
SWOT ANALYSIS OF BANKS
STR2NGT= • Indian banks have compared favourably on growth, asset /uality and profitability with other regional banks over the last few years! %he banking index has grown at a
1<
compounded annual rate of over 51 per cent since &pril 2AA1 as compared to a 2; per cent growth in the market index for the same period! • 'olicy makers have made some notable changes in policy and regulation to help strengthen the sector! %hese changes include strengthening prudential norms, enhancing the payments system and integrating regulations between commercial and co.operative banks! • )ank lending has been a significant driver of 4F' growth and employment! • 26tensi;e $ea7h> the vast networking & growing number of branches & &%+s! Indian banking system has reached even to the remote corners of the country! • %he government>s regular policy for Indian bank since 13<3 has paid rich dividends with the nationalisation of 1- ma or private banks of India! • In terms of /uality of assets and capital ade/uacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region! • India has ?? scheduled commercial banks 619)s7 . 2; public sector banks 6that is with the 4overnment of India holding a stake7after merger of ,ew )ank of India in 'un ab ,ational
1;
)ank in 133$, 23 private banks 6these do not have government stakeM they may be publicly listed and traded on stock exchanges7 and $1 foreign banks! %hey have a combined network of over 5$,AAA branches and 1;,AAA &%+s! &ccording to a report by I9#& 8imited, a rating agency, the public sector banks hold over ;5 percent of total assets of the banking industry, with the private and foreign banks holding 1?!2= and <!5= respectively! • Foreign banks will have the opportunity to own up to ;- per cent of Indian private sector banks and 2A per cent of government owned banks!
1?
W2AKN2SS • '1)s need to fundamentally strengthen institutional skill levels especially in sales and marketing, service operations, risk • :ld • %he management private cost of sector and banks the also overall have organi*ational the high need and to performance ethic & strengthen human capital! fundamentally strengthen skill levels! intermediation remains bank penetration is limited to only a few customer segments and geographies! • 1tructural weaknesses such as a fragmented industry structure, restrictions on capital availability and deployment, lack of institutional support infrastructure, restrictive labour laws, weak corporate governance and ineffective regulations beyond 1cheduled 9ommercial )anks 619)s7, unless industry utilities and service bureaus! • Refusa9 to di9ute sta-e in PSU an-s> %he government has refused to dilute its stake in '10 banks below 51= thus choking the headroom available to these banks for raining e/uity capital!
13
• I!:edi!ents in se7to$a9 $efo$!s>
position from 8eft and resultant cautious approach from the ,orth )lock in terms of approving merger of '10 banks may hamper their growth prospects in the medium term!OPPORTUNITY • %he market is seeing discontinuous growth driven by new products and services that include opportunities in credit cards, consumer finance and wealth management on the retail side, and in fee.based income and investment banking on the wholesale banking side! %hese re/uire new skills in sales & marketing, credit and operations! • )anks will no longer en oy windfall treasury gains that the decade.long secular decline in interest rates provided! %his will expose the weaker banks! • "ith increased interest in India, competition from foreign banks will only intensify!
2A
• 4iven the demographic shifts resulting from changes in age profile and household income, consumers will increasingly demand enhanced institutional capabilities and service levels from banks! • ,ew private banks could reach the next level of their growth in the Indian banking sector by continuing to innovate and develop differentiated business models to profitably serve segments like the ruralLlow income and affluentLH,I segmentsM actively adopting ac/uisitions as a means to grow and reaching the next level of performance in their service platforms! &ttracting, developing and retaining more leadership capacity • Foreign banks committed to making a play in India will need to adopt alternative approaches to win the Grace for the customerH and build a value.creating customer franchise in advance of regulations potentially opening up post 2AA3! &t the same time, they should stay in the game for potential ac/uisition opportunities as and when they appear in the near term! +aintaining a fundamentally long.term value. creation mindset! • reach in rural India for the private sector and foreign banks! • "ith the growth in the Indian economy expected to be strong for /uite some time.especially in its services sector. the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong!
21
• the #eserve )ank of India 6#)I7 has approved a proposal from the government to amend the )anking #egulation &ct to permit banks to trade in commodities and commodity derivatives! • Li e$a9isation of 20B no$!s> %he government also liberalised the @9) norms to permit financial sector entities engaged in infrastructure funding to raise @9)s! %his enabled banks and financial institutions, which were earlier not permitted to raise such funds, explore this route for raising cheaper funds in the overseas markets! • =" $id 7a:ita9> In an attempt to relieve banks of their capital crunch, the #)I has allowed them to raise perpetual bonds and other hybrid capital securities to shore up their capital! If the new instruments find takers, it would help '10 banks, left with FII little and headroom for raising limits in e/uity! these 1ignificantly, ,#I investment
securities have been fixed at -3=, compared to 2A= foreign e/uity holding allowed in '10 banks!
T=R2ATS • %hreat of stability of the systemJ failure of some weak banks has often threatened the stability of the system!
22
• #ise in inflation figures which would lead to increase in interest rates! • Increase in the number of foreign players would pose a threat to the '1) private players! as well as the
SWOT ANALYSIS OF A5IS BANK
1. STR2NGT= • @xtremely 9ompetitive &nd 'rofitable )anking Franchise • )anking 1ervices Include 9orporate 9redit, #etail )anking, )usiness )anking, 9apital +arkets, %reasury &nd International )anking! • 1ound %echnological 'latform "ith 9entrali*ed Fatabase &nd
erations • Retai9 Ban-in' 1avings )ank Feposits 4rew %o #s! 25,?22 9r! :n $1st +arch 2AA3 From #s! 13,3?2 9r! &s :n $1st +arch 2AA? 1howing & Cear :n Cear 4rowth :f 23=! • 0o$$ate Ban-in'J 9urrent &ccount deposits grew by 2-= yoy, from #s! 2A,A-5 crores as at end +arch(A? to #s! 2-,?22 crores as at end +arch(A3!2$
• 1upport of various 'romoters • 1trong technology • %otal Feposits #s 1,1;,$;- crore • ,et &dvances #s ?1,55; crore • ,et ,'& A!$5= • 9apital &de/uacy #atio 1$!<3= 4. W2AKN2SS • ,ot having Image 0%I 6fraud7 • Higher cost • 9ustomer service • +arket 9apitali*ation Dery 8ow
3. OPPORTUNITY • 8arge retail and corporate market • "ide scope in rural India • :ther &ctivity 6,on )anking &ctivity7 • 'eople are become more service oriented
.. T=R2AT
2-
• :ther better 1aving, investment option available 6like Insurance, +utulfund, #eal.estate, 4old7 • 4overnment #ules &nd #egulation
•
Dery hi'h 7o!:etition @ith P$i;ate se7to$ )I9I9I )ank, HFF9 bank7 or public sector 6)
, ',)7 )ank!• 9apital +arket slow.down • #ising #ates • Future +arket %rands
SWOT ANALYSIS OF Y2S BANK
1.STR2NGT=
• High Iuality, 9ustomer 9entric, 1ervice Friven, 'rivate Indian )ank 9atering %o %he GFuture Industries :f IndiaH! • %he )ank Has &dopted International )est 'ractices, %he Highest 1tandards :f 1ervice Iuality &nd
erational @xcellence,•
"orld.9lass %eam, )ased :n 'rofessional #ecruitment +ethodologies, &nd &ttract %he )est %alent In %he Industry
25
•
)uilding 9ulture.
8earning
&nd
Fevelopment
1olutions
%hat
9ontinuously @nhance @mployee Dalue, High 'erformance
• •
9redible &nd %ransparent 'erformance +anagement 'rocess #obust #ewards &nd #ecognition 1trategy
• 1trong technology, "ell capitali*ed • %otal Feposits #s 1,<1,<3- million • ,et &dvances #s 12-,A$1 million • ,et ,'& A!$$= • 9apital &de/uacy #atio 1<!<=
4.
W2AKN2SS
• • • •
8ess wide network ,ot in every state 8ess promotional activity 0nknown brand
3. OPPORTUNITY
• •
Dery wide market :ther activity6insurance, stock broking, mutulfund7
2<
•
"ide scope in $u$a9 a$ea
.. T=R2AT
•
Dery hi'h 7o!:etition 'rivate bank market 6I9I9I )ank, HFF9 bank7, In public sector 6)
, ',)7•
4overnment 'olicy
• :ther better 1aving, investment option available 6like Insurance, +utulfund, #eal.estate, 4old7 • 9apital +arket slow.down • #ising #ates
SWOT ANALYSIS OF KOTAK #A=INDRA BANK
1.STR2NGT=S>
• 9apital markets franchise • 'rofessional management • 1trong technology • "ell capitali*ed • 9onstruction e/uipment financing business • 9omprehensive cash management system • 9apturing supply chain businesses
2;
• ,'& is at 1!$A= • %otal Feposits #s 15,<-5 crore
•
,et &dvances #s 1<,<25 crore
• 9apital &de/uacy #atio 1<=
4.W2AKN2SS>
• "holesale Funding 9osts • 8atecomers • 8ess 'romotional &ctivities 3. OPPORTUNITI2S> • 8ow loan and retail penetration • 1tressed &sset )usiness • 'lans to invest #s! 12A crores over three years for infrastructure, technology and personnel
.. T=R2ATS> • 9apital +arket slow.down • 9ompetition • #ising #ates • :ther better 1aving, investment option available 6like Insurance, +utulfund, #eal.estate, 4old7
2?
• 4overnment #ules &nd #egulation
APP2NDI5
• "ebsite • ,ewspaper • +aga*ine • &nnual #eport
AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA
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doc_683539195.doc