Description
All About Banking & Finance
Banking and Finance
Satish .s
Banking and Finance - Overview
Financial
Services
Commercial
Bank
Investment
Services
Insurance
Advisory
Services
• Asset
Management
• Hedge Fund
Managers
• Custody services
• Private banking
• Investment
Banks
• Bank cards
• Credit card
machine services
and networks
• Insurance
Brokerage
• Insurance
nderwriting
• !einsurance
• Stock brokers
"#rivate client
services$ and
discount brokers
Evolution of Industry
?
Flexible exchange rates
?
Further trade liberalization in goods and services
?
Increases in the level of FDI
?
Trade liberalization in financial services
?
Deregulation of financial markets both in developed and in a number of emerging countries
?
Securitization
?
Macroeconomic coordination and global financial stability
?
onsolidation of financial institutions
?
Increased mergers and ac!uisitions
?
The gradual integration of stock markets around the "orld
?
Internalization of the securities markets
?
#n increase in the role of corporate governance in national and international investment strategies
?
$egional integration such as those experienced in %urope& #sia and #merica
?
The #sian currency crisis and the call for a 'e" International Financial #rchitecture
?
oordination amongst the central banks through the (IS and financial globalization are amongst
some of the developments
Major Players
?
)lobal
?
*+ Morgan hase
?
(ank of #merica
?
,S(
?
itigroup
?
Deutsche (ank
?
)oldman Sachs
?
Morgan Stanley
?
Merrill -ynch
?
('+ +aribas
?
Indian
?
S(I
?
III
?
+'(
?
,DF
?
(ank of (aroda
?
orporation (ank
?
ID(I
?
.TI
Market Share
Rank Company
Tier 1 Capital
(US$ billions) Country
/ itigroup 01 .S
2 *+ Morgan hase 34 .S
1 ,S( 30 .5
6 (ank of #merica 36 .S
7 redit #gricole )roup 31 France
3 $oyal (ank of Scotland 61 .5
0 Mitsubishi Tokyo Financial )roup 68 *apan
9 Mizuho Financial )roup 14 *apan
4 ,
S 13 .5
/8 ('+ +aribas 17 France
%o# ten banking grou#s in the world ranked by tier & ca#ital
India - Strategic Map
S
e
r
v
i
c
e
Q
u
a
l
i
t
y
$ural .rban
-
o
"
,
i
g
h
$egional
itibank
#(' #mro
State (ank of India
III (ank
,DF
IndusInd (ank
;ysya (ank
5arur ;ysya
+'(
#ndhra (ank
anara (ank
o<operative (anks
$ural (anks
(ank of (aroda
(ank of India
Stan
,S(
Geographical Spread
lo!al Finance Industry
?
Increased Fee $evenue is the )oal as :ne<Stop Shopping is
:ffered by Financial Services Firms& including (anks plus
Traditional and Discount (rokerages < Mean"hile& Financial
+lanning and +rivate (anking are Targeted
?
(ranch (anking (ooms
?
+roperty and asualty .nder"riters $ecover from a Disastrous
288/
?
Insurance Sells =ell on the Internet
"he India Scenario - # $o%parison
?
:nly one Indian (ank in the top /88 (anks in the "orld
?
India>s best and brightest& the S(I& is roughly one<tenth the size of the "orld>s
biggest bank < itigroup
?
Six hinese banks feature among the top 27 #sian banks "hile India has only
t"o representatives < S(I and III (ank.
?
Similarly& S(I>s consolidated pre<tax profit is ?/.4 billion against itigroup>s ?24
billion& (ank of #merica>s ?27 billion and ,S(>s ?2/ billion
?
The one area "here Indian banks are able to compete "ith their global peers
is their return on assets @$o#A. #mong big Indian banks& III (ank& +'(&
anara (ank and ,DF (ank have a return on assets of over / per cent
return& "hile S(I>s return on assets is 8.94 per cent. #mong Indian banks&
,DF (ank has the highest return on assets << /.0/ per cent.
?
This is lo"er than that of itigroup @/.40 per centA but much better than the
$o# of ,S( @/.68 per centA. :ur banks are small but efficient. ,o"ever& if the
economy has to gro" at over 9 per cent& they must build the scale. India Inc
has already announced over $s 378&888 crore @$s 3&788 billionA of investment
plans. =ithout the scale& local banks can>t possibly support this gro"th story
&ey Success Factors
?
onsolidationB #chieving Strategic (alance
?
$etail $enaissanceB (onding "ith ustomers
?
The :ffshoring Decision
?
Transforming the Finance Function
?
Monitoring redit Cuality
?
#chieving omprehensive )overnance of $isk Management
?
orporate )overnance
doc_422270334.ppt
All About Banking & Finance
Banking and Finance
Satish .s
Banking and Finance - Overview
Financial
Services
Commercial
Bank
Investment
Services
Insurance
Advisory
Services
• Asset
Management
• Hedge Fund
Managers
• Custody services
• Private banking
• Investment
Banks
• Bank cards
• Credit card
machine services
and networks
• Insurance
Brokerage
• Insurance
nderwriting
• !einsurance
• Stock brokers
"#rivate client
services$ and
discount brokers
Evolution of Industry
?
Flexible exchange rates
?
Further trade liberalization in goods and services
?
Increases in the level of FDI
?
Trade liberalization in financial services
?
Deregulation of financial markets both in developed and in a number of emerging countries
?
Securitization
?
Macroeconomic coordination and global financial stability
?
onsolidation of financial institutions
?
Increased mergers and ac!uisitions
?
The gradual integration of stock markets around the "orld
?
Internalization of the securities markets
?
#n increase in the role of corporate governance in national and international investment strategies
?
$egional integration such as those experienced in %urope& #sia and #merica
?
The #sian currency crisis and the call for a 'e" International Financial #rchitecture
?
oordination amongst the central banks through the (IS and financial globalization are amongst
some of the developments
Major Players
?
)lobal
?
*+ Morgan hase
?
(ank of #merica
?
,S(
?
itigroup
?
Deutsche (ank
?
)oldman Sachs
?
Morgan Stanley
?
Merrill -ynch
?
('+ +aribas
?
Indian
?
S(I
?
III
?
+'(
?
,DF
?
(ank of (aroda
?
orporation (ank
?
ID(I
?
.TI
Market Share
Rank Company
Tier 1 Capital
(US$ billions) Country
/ itigroup 01 .S
2 *+ Morgan hase 34 .S
1 ,S( 30 .5
6 (ank of #merica 36 .S
7 redit #gricole )roup 31 France
3 $oyal (ank of Scotland 61 .5
0 Mitsubishi Tokyo Financial )roup 68 *apan
9 Mizuho Financial )roup 14 *apan
4 ,
S 13 .5/8 ('+ +aribas 17 France
%o# ten banking grou#s in the world ranked by tier & ca#ital
India - Strategic Map
S
e
r
v
i
c
e
Q
u
a
l
i
t
y
$ural .rban
-
o
"
,
i
g
h
$egional
itibank
#(' #mro
State (ank of India
III (ank
,DF
IndusInd (ank
;ysya (ank
5arur ;ysya
+'(
#ndhra (ank
anara (ank
o<operative (anks
$ural (anks
(ank of (aroda
(ank of India
Stan
,S(
Geographical Spread
lo!al Finance Industry
?
Increased Fee $evenue is the )oal as :ne<Stop Shopping is
:ffered by Financial Services Firms& including (anks plus
Traditional and Discount (rokerages < Mean"hile& Financial
+lanning and +rivate (anking are Targeted
?
(ranch (anking (ooms
?
+roperty and asualty .nder"riters $ecover from a Disastrous
288/
?
Insurance Sells =ell on the Internet
"he India Scenario - # $o%parison
?
:nly one Indian (ank in the top /88 (anks in the "orld
?
India>s best and brightest& the S(I& is roughly one<tenth the size of the "orld>s
biggest bank < itigroup
?
Six hinese banks feature among the top 27 #sian banks "hile India has only
t"o representatives < S(I and III (ank.
?
Similarly& S(I>s consolidated pre<tax profit is ?/.4 billion against itigroup>s ?24
billion& (ank of #merica>s ?27 billion and ,S(>s ?2/ billion
?
The one area "here Indian banks are able to compete "ith their global peers
is their return on assets @$o#A. #mong big Indian banks& III (ank& +'(&
anara (ank and ,DF (ank have a return on assets of over / per cent
return& "hile S(I>s return on assets is 8.94 per cent. #mong Indian banks&
,DF (ank has the highest return on assets << /.0/ per cent.
?
This is lo"er than that of itigroup @/.40 per centA but much better than the
$o# of ,S( @/.68 per centA. :ur banks are small but efficient. ,o"ever& if the
economy has to gro" at over 9 per cent& they must build the scale. India Inc
has already announced over $s 378&888 crore @$s 3&788 billionA of investment
plans. =ithout the scale& local banks can>t possibly support this gro"th story
&ey Success Factors
?
onsolidationB #chieving Strategic (alance
?
$etail $enaissanceB (onding "ith ustomers
?
The :ffshoring Decision
?
Transforming the Finance Function
?
Monitoring redit Cuality
?
#chieving omprehensive )overnance of $isk Management
?
orporate )overnance
doc_422270334.ppt