Banking Structure In India
ICICI VS HDFC
Mustahid Ali
Swati Gogawat
Vaibhav Jasani
Management
HDFC
 Aditya Puri HDFC,MD
 Deepak Parekh Chairman, HDFC
 HDFC Bank Ltd is has opened over 300 new
branches a...
ICICI
 Ms. Chanda Kochhar is the Managing Director
and Chief Executive Officer
 ICICI Bank in 2013 led the bank's low-co...
Technology
HDFC
 Multi-branch access is also provided to retail
customers through the branch network and
ATMs
 The Corpo...
ICICI
 ICICI Bank Limited has launched new technologybased initiatives including 25 electronic branches
across 18 locatio...
Products/services
HDFC
 Personal banking

Under Personal Banking, HDFC offers:
 Accounts & Deposits
 Loans
 Cards
 De...
 NRI banking

Under NRI Banking, HDFC offers:
 Accounts & Deposits
 Money Transfer
 Investments & Insurance
 Research...
 SME banking

Under SME Banking, HDFC offers:
 Accounts & Deposits
 Business Financing
 Trade Services
 Payments & Co...
SERVICES
 Wholesale banking services
 Retail banking services
 Treasury
Products/services
ICICI











Savings Account
Family Wealth Account
Home Loans
Car Loans
Foreign Exchange S...
 Life Insurance

 General Insurance
 Mutual Funds
 Portfolio Management Services *
 Alternative Investments
 Deposits
 Pockets by ICICI Bank

key features of 'Pockets by ICICI Bank' are
 Split n share
 Pay a friend
MySavings Rewards
 Cu...
iWish- the flexible recurring deposit

The key features of iWish are:
 Flexibility
 Better returns:
 Sharing:
 Contrib...
Green products and services
 Instabanking
 Vehicle Finance
 Carbon Footprint Calculator
Services
 Internet Banking Services
 Trade Services

 Personal Banking Services
 Privilege Banking Products and Servic...
Subsidiaries
HDFC
 HDB Financial Services Limited
 HDFC Securities Limited
 Atlas Documentary Facilitators Company Priv...
Subsidiaries
ICICI
Domestic












ICICI Prudential Life Insurance Company Limited
ICICI Lombard General I...
International
 ICICI Bank UK PLC
 ICICI Bank Canada
 ICICI Bank Eurasia Limited Liability Company

 ICICI Securities H...
Merger and Acquisitions
HDFC
 Times Bank Ltd. ,February 26, 2000
 Centurion Bank of Punjab Ltd.,. May 23, 2008
Merger and Acquisitions
ICICI






1997: ITC Classic Finance
1998: Anagram Finance
2001: Bank of Madurai
2002:ICICI ...
SWOT ANALYSIS OF HDFC

Strengths
• ‡ One of the leading new age private sector bank
• HDFC Bank has over 3,062 branches an...
Continue…
Weaknesses
• Rural penetration is low.
• Lesser no. of branches when compared with its competitors.
CONTINUE...

Opportunities
• Mobile banking, Internet banking
• Venturing into rural areas
• Providing more complex produc...
CONTINUE...
Threats
• Competitors
• New banking licenses
• Foreign banks that offer complex products
SWOT ANALYSIS OF
STRENGTHS
• 2ND Largest bank in India.
• Successfully diversified it’s operations.
• Listed in NYSE.
• Co...
Continue…
WEAKNESS
• Primarily targets upper middle class and
upper class of the society.
• Higher service charges.
• Poor...
Continue…
OPPORTUNITIES
• New IT & ITES companies
• Dissatisfied customers of other Bank
• Business advising for smaller p...
Continue…
THREATS
• Dissatisfied customers
• Ever improving nationalized bank
• Advent of MNC banks
• More and more banks ...
ICICI
 Strength
 1. Front runner in the Indian Private Banking Sector

2. Strong presence via its branches
3. High use o...
Weakness
 1. Too much competition in the banking

sector affecting employee and customer
management
2. Many branches in u...
Opportunity
 1. Opening more branches in the rural areas

2. Use of technology to penetrate rural
markets
3. Venturing in...
Threats
 1. Ever changing RBI policies

2. International and other Competitors
3.Inability to adapt to changing condition...
Targeting and Positioning strategy
• Target market
– Corporate banking market
– Capital market.
– Retail banking market
Po...
HDFC

(CAGR Returns (%) as on 20th March 2013)
ICICI MARKETING STRATEGY
To make its presence more prominent
Focus on credit quality

To create awareness about product...
Targeting AND Positioning
Targeting
.
ICICI has a separate marketing strategy for different segments. It
tailors its mark...
ICICI
Capital (Rs. In Cr.)
1275
1153

550
475

ICICI BANK

HDFC BANK
Authorized Capital

Paid Up Capital
Shares Held (1339800401)
Directors

Foreign Institution

Financial Institution

Nbanks Mutual Funds

General public

other...
Shares Held (1559248440)
Directors

Foreign Institution

Financial Institution

Nbanks Mutual Funds

other companies

othe...
FINANCIAL RATIOS
Liquidity Ratios
A. Current Ratio
B. Cash Ratio

ICICI
0.77
0.07

HDFC
0.32
0.26

Turnover Ratio
A. Fixed...
Balance Sheet as on 30 September 2013
(Rs. in Crores)

HDFC
Balance Sheet as on 30 September 2013
(Rs. in Crores)
HDFC
Income Statement for the two half yearly of
1st Oct 2012 to 31st March 2013 and 1st April
2013 to 30thSept 2013,Unconsolid...
Balance Sheet as on 30
September 2013 (Rs. in Crores)
ICICI
Income Statement for the two half yearly of 1st Oct
2012 to 31st March 2013 and 1st April 2013 to 30th
Sept 2013,Unconsoli...
THANK YOU
Financial comparision between hdfc & icici
Financial comparision between hdfc & icici
Financial comparision between hdfc & icici
Financial comparision between hdfc & icici
Financial comparision between hdfc & icici
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Financial comparision between hdfc & icici

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this is Financial comparison between hdfc & icici by their latest financial statements, their evolution with pros and cons, this also including their marketing and swot analysis

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  • Automated Teller Machines
  • Corporate banking market : this market target the industries & fulfill their financial needs.Capital market : this segment is targeted on the long term needs of the individual as well as of industries.Retail banking market : this segment is for retail investors & provide them short term financial credit for their personal, house hold needs. Corporate banking market : this market target the industries & fulfill their financial needs.Capital market : this segment is targeted on the long term needs of the individual as well as of industries.Retail banking market : this segment is for retail investors & provide them short term financial credit for their personal, house hold needs.
  • Over the last few years, Indian equity markets have been impacted by the Euro zone crisis; slow down in the global economic growth, various corporate governance pratices, and lack of policy reforms by the government, besides a rising interest rates scenario.As an asset class, equities can provide high returns, but they also come with their fair share of risks. The challenge lies in understanding the behavior of equity markets over a long period of time – not just 1-3 years, but over a decade or even more. Despite some volatility, equities have delivered the best return in the long run. The below graph shows how equities have performed in the long runIn the last 10 years, the returns from equities have been quite impressive. The S&P BSE Sensex has delivered 20% CAGR returns. So, if you are investing for your long-term financial goals, then you must have equity in your portfolio. However, in the short run, the returns tend to be more volatile based on macro-economic and corporate news flowsNote: Past performance may or may not be sustained in future. There is no guarantee or assurance of returns.
  • Financial comparision between hdfc & icici

    1. 1. Banking Structure In India
    2. 2. ICICI VS HDFC Mustahid Ali Swati Gogawat Vaibhav Jasani
    3. 3. Management HDFC  Aditya Puri HDFC,MD  Deepak Parekh Chairman, HDFC  HDFC Bank Ltd is has opened over 300 new branches across the country  Hiring 1,000 to 2,000 people as part of its expansion programme in the current fiscal.
    4. 4. ICICI  Ms. Chanda Kochhar is the Managing Director and Chief Executive Officer  ICICI Bank in 2013 led the bank's low-cost rural push by exploiting technology that's at the disposal of every institution  Kochhar gave away 9,000 tablets to her staff to open accounts.
    5. 5. Technology HDFC  Multi-branch access is also provided to retail customers through the branch network and ATMs  The Corporate Banking business and the Retail Banking business are supported by Flexcube, from Oracle Financial Services Software Limited
    6. 6. ICICI  ICICI Bank Limited has launched new technologybased initiatives including 25 electronic branches across 18 locations and services such as Tab Banking, Banking on the Move and e-Locker  The 24x7 electronic branches are one-stop shops  E-Locker, a virtual online locker available on the ICICI Bank internet banking platform
    7. 7. Products/services HDFC  Personal banking Under Personal Banking, HDFC offers:  Accounts & Deposits  Loans  Cards  Demat  Investments  Insurance  Forex  Premium Banking  Private Banking
    8. 8.  NRI banking Under NRI Banking, HDFC offers:  Accounts & Deposits  Money Transfer  Investments & Insurance  Research Reports  Loans  Premium Banking  Payment Services
    9. 9.  SME banking Under SME Banking, HDFC offers:  Accounts & Deposits  Business Financing  Trade Services  Payments & Collections  Cards
    10. 10. SERVICES  Wholesale banking services  Retail banking services  Treasury
    11. 11. Products/services ICICI           Savings Account Family Wealth Account Home Loans Car Loans Foreign Exchange Services iMobile iWealth Lockers e-Locker Demat Account
    12. 12.  Life Insurance  General Insurance
    13. 13.  Mutual Funds  Portfolio Management Services *  Alternative Investments  Deposits
    14. 14.  Pockets by ICICI Bank key features of 'Pockets by ICICI Bank' are  Split n share  Pay a friend MySavings Rewards  Customers can redeem their reward points by logging into his ICICI Bank internet banking account Calling up customer care Walking into the nearest ICICI Bank branch
    15. 15. iWish- the flexible recurring deposit The key features of iWish are:  Flexibility  Better returns:  Sharing:  Contributions
    16. 16. Green products and services  Instabanking  Vehicle Finance  Carbon Footprint Calculator
    17. 17. Services  Internet Banking Services  Trade Services  Personal Banking Services  Privilege Banking Products and Services  ICICI Merchant Services  Foreign Exchange Services  ICICI Bank Customer Service  NRI Services
    18. 18. Subsidiaries HDFC  HDB Financial Services Limited  HDFC Securities Limited  Atlas Documentary Facilitators Company Private Ltd (“ADFC”)  HBL Global Private Ltd (“HBL”)  HDFC Standard Life Insurance Company Limited  HDFC Asset Management Company:  HDFC ERGO General Insurance Company:  Credila Financial Services:
    19. 19. Subsidiaries ICICI Domestic            ICICI Prudential Life Insurance Company Limited ICICI Lombard General Insurance Company Limited ICICI Prudential Asset Management Company Limited ICICI Prudential Trust Limited ICICI Securities Limited ICICI Securities Primary Dealership Limited ICICI Venture Funds Management Company Limited ICICI Home Finance Company Limited ICICI Investment Management Company Limited ICICI Trusteeship Services Limited ICICI Prudential Pension Funds Management Company Limited
    20. 20. International  ICICI Bank UK PLC  ICICI Bank Canada  ICICI Bank Eurasia Limited Liability Company  ICICI Securities Holdings Inc.  ICICI Securites Inc.  ICICI International LImited
    21. 21. Merger and Acquisitions HDFC  Times Bank Ltd. ,February 26, 2000  Centurion Bank of Punjab Ltd.,. May 23, 2008
    22. 22. Merger and Acquisitions ICICI      1997: ITC Classic Finance 1998: Anagram Finance 2001: Bank of Madurai 2002:ICICI Ltd ICICI Bank Ltd Sangli Bank Ltd. 2005: Investitsionno-Kreditny Bank (IKB), a Russian bank  2007:ICICI Bank Ltd.  2010:The Bank of Rajasthan ICICI Bank Ltd
    23. 23. SWOT ANALYSIS OF HDFC Strengths • ‡ One of the leading new age private sector bank • HDFC Bank has over 3,062 branches and over 10,583 ATMs, in 780 cities in India, • Huge employee base i.e more than 51000 employees • Large collaborations with corporate for employee salary accounts
    24. 24. Continue… Weaknesses • Rural penetration is low. • Lesser no. of branches when compared with its competitors.
    25. 25. CONTINUE... Opportunities • Mobile banking, Internet banking • Venturing into rural areas • Providing more complex products to the ever increasing demands of the industry
    26. 26. CONTINUE... Threats • Competitors • New banking licenses • Foreign banks that offer complex products
    27. 27. SWOT ANALYSIS OF STRENGTHS • 2ND Largest bank in India. • Successfully diversified it’s operations. • Listed in NYSE. • Considered as a pioneer in usage of internet services. • Aggressive and innovative marketing strategies.
    28. 28. Continue… WEAKNESS • Primarily targets upper middle class and upper class of the society. • Higher service charges. • Poor customer care/service • Focus only on high end customers • Transaction cost.
    29. 29. Continue… OPPORTUNITIES • New IT & ITES companies • Dissatisfied customers of other Bank • Business advising for smaller players • Expanding business to the middle and lower income groups.
    30. 30. Continue… THREATS • Dissatisfied customers • Ever improving nationalized bank • Advent of MNC banks • More and more banks are coming up.
    31. 31. ICICI  Strength  1. Front runner in the Indian Private Banking Sector 2. Strong presence via its branches 3. High use of technology to make life simpler for the customers 4.Large no. of facilities for the customers in terms of products and services  5. Over 75,000 employees at ICICI  6. Decades of Experience in the Banking sector along with marketing has added to the brand name  7. Presence in over 19 countries
    32. 32. Weakness  1. Too much competition in the banking sector affecting employee and customer management 2. Many branches in urban areas has led to high cost
    33. 33. Opportunity  1. Opening more branches in the rural areas 2. Use of technology to penetrate rural markets 3. Venturing into countries like Africa where the economy is coming up
    34. 34. Threats  1. Ever changing RBI policies 2. International and other Competitors 3.Inability to adapt to changing conditions due to large size
    35. 35. Targeting and Positioning strategy • Target market – Corporate banking market – Capital market. – Retail banking market Positioning segment : – -Customer centric – -Service oriented – -Product innovation
    36. 36. HDFC (CAGR Returns (%) as on 20th March 2013)
    37. 37. ICICI MARKETING STRATEGY To make its presence more prominent Focus on credit quality To create awareness about products through advertisement To maintain its brand of a global bank
    38. 38. Targeting AND Positioning Targeting . ICICI has a separate marketing strategy for different segments. It tailors its marketing campaigns to meet the needs of target prospects. It has long used technology to track and create differentiated product offering for different customer segments. Positioning The line ‘Hum hain na’, which spells trust, credibility and reinforces its position as a total financial solution provider
    39. 39. ICICI
    40. 40. Capital (Rs. In Cr.) 1275 1153 550 475 ICICI BANK HDFC BANK Authorized Capital Paid Up Capital
    41. 41. Shares Held (1339800401) Directors Foreign Institution Financial Institution Nbanks Mutual Funds General public other companies others ForeignNRI Foreign Others Central Govt. Foreign OCB Foreign Collaborators 0% 0% 0% 0% 0% 0% 0% 2% 33% 43% 16% 6%
    42. 42. Shares Held (1559248440) Directors Foreign Institution Financial Institution Nbanks Mutual Funds other companies others ForeignNRI Central Govt. 0% 0% 3% 9% 0% 1% 3% 10% 74% General public
    43. 43. FINANCIAL RATIOS Liquidity Ratios A. Current Ratio B. Cash Ratio ICICI 0.77 0.07 HDFC 0.32 0.26 Turnover Ratio A. Fixed Asset Turnover Ratio B. Total Asset Turnover Ratio 11.02 0.09 1.82 0.16 Profitability Ratio A. Gross Profit Margin (%) B. Net Profit Margin % C. Return On Asset (%) D. Total Income/ Capital Employed (%) E. Return on Equity(%) 29.05 18.07 8.00 9.33 12.48 24.07 16.35 3 11.36 25.83 79.51 633.13 13.67 15.71 1087.05 29.94 114.65 20.18 Valuation Ratios A. Earnings Per Share (Rs.) B. Book Value (Rs.) C. EST Price Earning Ratio D. Industry PE Ratio E. Previous Close of Market Price (Rs.)(BSE) 677.7
    44. 44. Balance Sheet as on 30 September 2013 (Rs. in Crores) HDFC
    45. 45. Balance Sheet as on 30 September 2013 (Rs. in Crores) HDFC
    46. 46. Income Statement for the two half yearly of 1st Oct 2012 to 31st March 2013 and 1st April 2013 to 30thSept 2013,Unconsolidated (unaudited) (Rs. In lakhs)
    47. 47. Balance Sheet as on 30 September 2013 (Rs. in Crores) ICICI
    48. 48. Income Statement for the two half yearly of 1st Oct 2012 to 31st March 2013 and 1st April 2013 to 30th Sept 2013,Unconsolidated (unaudited)(Rs. in crores)
    49. 49. THANK YOU
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