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Summer project on Depository Services at Dena Bank

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Dena bank

  1. 1. Summer Internship Project<br />NCRD’s Sterling Institute of Management Studies<br />Div ‘A’ Ashwin R. Satra Roll No.37<br />Summer Project<br /> On<br /> Depository Services<br />at<br />Dena Bank <br /> MMS 2010-12, Semester III<br />Faculty Guide : Prof.Rakhi Shrivastava Company Guide : Mr.Ratan K. Khanna<br />Presented to : Prof. MayurM. & Prof. Aradhana<br />
  2. 2. Summer Internship Project<br />Depository Services<br />Purpose of Project<br />”The purpose of this project was to understand the current Depository Services in India with special reference to Dena Bank and then suggest an improved and viable business model for the Depository department of Dena Bank”<br />1-21<br />
  3. 3. Industry Overview<br />Understanding Banking Sector<br />Indian Banking Sector<br /><ul><li> Sector Comprises 26 State Sector banks, besides a number of private as well as co-operative sector players.
  4. 4. Assets size of the banking industry - US$ 1.3 trillion
  5. 5. A Compound Annual Growth Rate (CAGR) of 18 per cent compared to the average GDP growth of 7.2 per cent during the last decade.
  6. 6. Nationalized banks accounted for 52.2 per cent of the aggregate deposits, with State Bank of India (SBI) and its Associates accounting for 22.1 per cent.
  7. 7. Potential to become third largest banking sector by 2050 after China & US </li></ul>2-21<br />
  8. 8. Company Overview<br />Dena Bank<br />Introduction<br /><ul><li> Dena Bank was founded on 26th May, 1938 by the family of DevkaranNanjee under the name DevkaranNanjee Banking Company Ltd.
  9. 9. Dena Bank was nationalized in July 1969 with 13 other major banks and is now a public sector bank.
  10. 10. The logo of Dena Bank depicts Goddess Lakshmi, the Goddess of Wealth, according to Hindu mythology.
  11. 11. It was the desire of the founding fathers of the Bank that the Bank should be a symbol of prosperity for all its clients, and the logo represents this promise. </li></ul>3-21<br />
  12. 12. Company Overview<br />Dena Bank<br />Services offered by Dena Bank<br /><ul><li> Core Banking Solution
  13. 13. Dena ATM Services
  14. 14. Internet Banking
  15. 15. Dena e-Tax Pay
  16. 16. Mobile Banking
  17. 17. Phone Banking
  18. 18. Dena Alert Services
  19. 19. Inbound Remittances
  20. 20. Direct Tax Collection
  21. 21. Indirect Tax
  22. 22. Bancassurance
  23. 23. Demat Services
  24. 24. Dena BillPay
  25. 25. RTGS/NEFT</li></ul>DEPOSITORY SERVICES<br />4-21<br />
  26. 26. “Depository Services”<br />Introduction to Depositories<br />Meaning<br />Depository is used to refer to any place where something is deposited for storage or security purposes. <br />More specifically, it can refer to a company, bank or an institution that holds and facilitates the exchange of securities. <br />Or <br />a depository can refer to a depository institution that is allowed to accept monetary deposits from customers.<br />5-21<br />
  27. 27. “Depository Services”<br />Depositories In India<br />NSDL & CDSL<br />Two Depositories in India<br /> National Securities Depository Limited<br />2) Central Depository Securities Ltd<br /><ul><li>Dena Bank is depository participant of NSDL
  28. 28. Depository Participant :Intermediaries which perform action on behalf of their client are known as Depository Participants</li></ul>6-21<br />
  29. 29. “Depository Services”<br />Introduction to Depositories<br />Bank & NSDL-An Analogy & Difference<br />7-21<br />
  30. 30. “Depository Services”<br />Depositories In India<br />Function Of Depository<br /><ul><li>Maintenance of beneficiary holdings through DPs
  31. 31. Dematerialisation
  32. 32. Re-materialisation
  33. 33. Off-market Trades
  34. 34. Distribution of corporate benefits
  35. 35. Pledging and hypothecation facilities
  36. 36. Freezing/locking of investor's account
  37. 37. Stock lending and borrowing facilities
  38. 38. Settlement in dematerialised securities
  39. 39. Receipt of allotment in the dematerialised form</li></ul>8-21<br />
  40. 40. “Depository Services”<br />Depository services In Dena Bank<br />DenaLaxmi Demat Account<br />Dena Bank apart from normal banking services also offers you the capital market oriented product in the form of Demat account called -Dena Laxmi Demat Account. <br />Dena Bank is Depository participant of National Securities Depository Limited (NSDL).since 1997 and is extending Depository services to the Demat Account holders of the Bank.<br />Dena Bank provides hassle free transactions in the securities through the Dena Laxmi Demat Account .<br />9-21<br />
  41. 41. “Depository Services”<br />Depository services In Dena Bank<br />Functions & Facilities <br /><ul><li> Opening and maintaining of Demat Accounts.
  42. 42. Dematerialisation
  43. 43. Rematerialisation
  44. 44. Instant transfers / deliveries of shares / securities
  45. 45. Settlement of transactions done on the Stock Exchanges
  46. 46. Affecting changes in Addresses / Bank account details for the investments in various companies with a single request.
  47. 47. Pledging of Security
  48. 48. Freezing and unfreezing of account / only specific security or a specific quantity of a particular security</li></ul>10-21<br />
  49. 49. “Depository Services”<br />Competitive Benchmarking of Dena Bank with Peers<br />Nationalized Bank<br />Nationalized Bank with Depository services<br /><ul><li> State Bank of India
  50. 50. Canara Bank
  51. 51. Bank of Maharashtra
  52. 52. Central Bank of India
  53. 53. Dena Bank
  54. 54. Bank of India
  55. 55. Bank of Baroda
  56. 56. Union Bank of India</li></ul>For the purpose of our study, top 4 public banks have been selected having depository services. I visited the following banks, referred their website etc and gathered information about their products and charges for our study.<br />11-21<br />
  57. 57. “Depository Services”<br />Competitive Benchmarking of Dena Bank with Peers<br />Nationalized Bank<br />12-21<br />
  58. 58. “Depository Services”<br />Recommendations & Suggestions<br />1.Recommendations & Suggestions<br /><ul><li> Web Site Improvement
  59. 59. Capital Market Indicator
  60. 60. Approach to Ex-Customers
  61. 61. Online Trading Facility to be made available at the earliest
  62. 62. ASBA Facility to be made available
  63. 63. Improvements in Clients Delivery Instruction Slip (DIS)
  64. 64. Monthly & Quarterly Statements</li></ul>13-21<br />
  65. 65. “Depository Services”<br />2. Enter ID and Password<br />3. Select Demat from Services Menu<br />The screen should like as follows:<br />4. Monitor your Portfolio Performance yourself – Select<br /><ul><li>Equity Portfolio
  66. 66. Life Insurance Portfolio
  67. 67. Non-Life Insurance Portfolio etc</li></ul>On selecting specific portfolio related screen should appear, tentatively as follows:<br />Recommendations & Suggestions<br />2. SystemSupport<br />1. Log in to<br />14-21<br />
  68. 68. “Depository Services”<br />Recommendations & Suggestions<br />2. SystemSupport<br />Name : AshwinSatra Client ID No. : 10073244<br />Portfolio Type: Equities and Equity Diversified Mutual Funds<br />15-21<br />
  69. 69. “Depository Services”<br />Recommendations & Suggestions<br />3. Training & other requirements for Depository Services<br /><ul><li> Skill building programme both in-house as well as external programmes. Skill building will be required for product awareness, USPs of the product, sales and marketing techniques.
  70. 70. Statutory requirements like necessary approval from NSDL and NCFM for employees who will have to clear some basic level examination.
  71. 71. Equity Research/ Insurance and Mutual Funds Updates to be published and made timely available to Front officers.
  72. 72. Periodical workshops by the third parties.
  73. 73. Special customer awareness camps (like ICICI Bank) for online trading, sharing research reports, detailing products of third parties which can be availed by them.</li></ul>16-21<br />
  74. 74. “Depository Services”<br />Recommendations & Suggestions<br />3. Training & other requirements for Depository Services<br />Specific steps required by Dena Bank in addition to above, once new products are launched:<br /><ul><li> It should have separate structure right from corporate level to branch level for Depository services, activity based costing be done to establish the viability and breakeven.
  75. 75. Dedicated staff catering exclusively to the Depository products, services and customers.
  76. 76. Offering free advisory service to their customers and later adding to their business fold.</li></ul>17-21<br />
  77. 77. “Depository Services”<br />Recommendations & Suggestions<br />3. Training & other requirements for Depository Services<br />Specific steps required by Dena Bank in addition to above, once new products are launched:<br /><ul><li> Creation of distinct brand names like Dena Demat Lounge, Dena Depository Services, etc. This will further strengthen the brand image and enhance customer loyalty.
  78. 78. Periodical customer awareness campaigns like seminars for nominal fee educating them about current market trends, activity in specific equities, on-line dealing and trading, etc.</li></ul>18-21<br />
  79. 79. “Depository Services”<br />Limitations Of Study<br />Although the research has reached its aims, there are some unavoidable limitations, which are as follows:-<br /> <br /><ul><li> A time constraint was one of the major problems.
  80. 80. Study excludes CDSL’s role in Depository Services.
  81. 81. Small sample size i.e. only 4 banks were taken into consideration for survey.
  82. 82. Survey restricted only to nationalized bank providing depository services.
  83. 83. Difficulty in collection of the data.</li></ul>19-21<br />
  84. 84. “Depository Services”<br />Scope for Future Study<br />The review of the past studies and the experience from this present study make me offer the following areas for further study in this field.<br /> <br /><ul><li> Study may be conducted among different sectors other than banking sector, which offers depository services. This will bring out the sectors, which have benefited the best from the Depository Services.
  85. 85. Scope for future study would be more, if study includes CDSL’s role in Depository Services.
  86. 86. Sample Size for survey purpose can be increase to at least 10 companies from different sectors.
  87. 87. Also there is further scope for conducting this study in other areas, as this study covers only limited areas.</li></ul>20-21<br />
  88. 88. “Depository Services”<br />Conclusion<br /><ul><li> Depositories is a wide aspect to talk about with new services coming up and each one having a different view about it, but I have tried and put some of the points that I consider to be important and tried to analyse the same. I just hope that I have done justice to the topic in this whole wide world of information where everyone has a different opinion about things.
  89. 89. Doing this project was a colossal experience and in great deal I found out the importance of depositories in Indian banking sector.
  90. 90. All in all, to sum things up, this project stands out to be an ‘eye opener’ in real terms for me towards a broader vision in understanding the interdependence of the economy, banks, business and technology within the economy.</li></ul>21-21<br />