BANKING A bank is a financial institution that acts as a payment agent for customers and to borrow and lend money. Banks are important factors in financial market. Development of central banking started from London. Establishment of World Bank in 1944. Establishment of RBI in 1935. LOGO of Indian currency is “ ”
BANKING IN INDIA Banking in India originated in the last decades of 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1770; both are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806. The first fully Indian owned bank was the ALLAHABAD BANK, established in 1865.
HISTORY OF HDFC HDFC stands for Housing Development Finance Corporation. It was founded in 1977 by Hasmukh Bhai Parakh HDFC Bank was incorporated in 1994 Indias largest housing finance company It was amongst the first companies to receive Reserve Bank Of India (RBI) approval to set up bank in the private sector Promoted by HDFC, the parent company Listed in NSE, BSE, NYSE etc. IPO in India in 1995
VISIONTo be customer driven best managed enterprise that enjoys marketleadership in providing housing related finance.MISSIONOur mission is to be "a World Class Indian Bank", benchmarkingourselves against international standards and best practices in termsof product offerings, technology, service levels, risk managementand audit & compliance
OBJECTIVES Customers To provide a caring customer service anticipating solutions required by our customers and innovatively satisfying them beyond expectations. Shareholders To optimize return on shareholders funds. Organization To commit ourselves to the highest standards in corporate and business ethics whilst maintaining financial stability and growth. Employees To motivate, develop, recognize and reward our employees.
CONTD.. Community To be strongly committed to contribute to the national goal of providing shelter for all. Industry Setting industry benchmarks of international standard in delivering customer value through out comprehensive product range, customer service and all our activities. Ethics Maintaining the highest ethical standards worth of a leading corporate citizen.
PROFILE OF THE BANK Type- Public Traded as BSE: 500180 NSE: HDFCBANK NYSE: HDB Industry- Banking, Financial services Headquarters- Mumbai, Maharashtra Key People- Mr. C. M. Vasudev (Chairman) Mr. Aditya Puri (Managing Director)
CONTD.. Revenue- US$ 6.480 billion (2012) Profit- US$ 977.2 million (2012) Total assets- US$ 70.098 billion (2012) Total equity- US$ 7.754 billion (2012) Employees- 66,076 (2012) Website- www.hdfcbank.com
NETWORK 2,620 branches in 1,454 cities across India 10,316 networked ATM‟s Customers in over 500 locations are serviced through telephone banking 16 branches in Middle East and 6 in Africa Representative offices in Hong Kong, New York, London and Singapore.
BUSINESS STRATEGIES Increasing the market share in India. Leverage our technology platform and open scaleable systems to deliver more products to more customers and to control operating costs. Maintain our current high standards for asset quality. Develop innovative products and services. Continue to develop products and services that reduce our cost of funds. Focus on high earnings growth with low volatility.
STRENGTHS They have a large number of investors. The bank‟s ATM card is compatible with all domestic and international Visa/Master card, Visa Electron/ Maestro, and American Express HDFC bank has the high degree of customer satisfaction The attrition rate in HDFC is low HDFC has good financial advisors They have lots of awards and achievements
WEAKNESSES HDFC bank doesn‟t have strong presence in rural areas HDFC cannot enjoy first mover advantage in rural areas HDFC lacks in aggressive marketing strategies The bank focuses mostly on high end clients Some of the bank‟s product categories lack in performance The share prices of HDFC are often fluctuating
OPPORTUNITIES HDFC bank has better asset quality parameters over government banks The companies in large and SME are growing at very fast pace HDFC bank has improved its bad debts portfolio and the recovery of bad debts are high when compared to government banks HDFC has very good opportunities in abroad Greater scope for acquisitions and strategic alliances due to strong financial position
THREATS HDFC‟s non-performing assets (NPA) increased from 0.18 % to 0.20%. The non-banking financial companies and new age banks are increasing in India The HDFC is not able to expand its market share as ICICI imposes major threat The government banks are trying to modernize to compete with private banks RBI has opened up to 74% for foreign banks to invest in Indian market
EMPLOYEE FEEDBACK Strongly positioned bank Very systematic Rewarding Experienced senior staff Reviews and suggestions from the staff Flexible and supportive working environment
CUSTOMER FEEDBACK Customer friendly Branches are easily locatable and accessible Good advisors They maintain the secrecy of information of customers They are very systematic and fast
ACHIEVEMENTS Times Bank Limited was merged with HDFC Bank Ltd., in 2000 In 2008 HDFC Bank acquired Centurion Bank of Punjab HDFC Bank was the quickest to cross the one million credit card mark HDFC Bank was the first bank in India to launch debit cards and offer mobile banking, online banking and real- time net banking HDFC Bank is the primary settlement bank to the major stock exchanges in the country and has the biggest market share in the settlement services to commodities exchanges Fitch Ratings India Pvt. Ltd. has assigned the "AAA (ind)"
AWARDS Finance Asia- BEST MANAGED COMPANY and Best CEO to Mr. Aditya Puri Euromoney India Poll 2012- Best Private Bank in the Super Affluent Category Best Performing Bank- Private by UTI MF & CNBC TV18 Financial Advisor Awards 2011 Dun & Bradstreet Banking Awards 2012- - Overall Best Bank, Best Private Sector Bank, Asset Quality - Private Sector, Retail Banking -Private Sector Asia Money 2012 – Best Domestic Bank in India 5th Loyalty Summit Award- Customer and Brand Loyalty Celent Model Bank Award 2012- Great Customer Experience
HISTORY OF CANARA BANK Established as “Canara Bank Hindu Permanent” in 1906 Founded by Ammembal Subba Rao Pai Incorporated in 1910 as Canara Bank Limited Nationalised in 1969 as Canara Bank First Indian Bank to get ISO certification for “Total Branch Banking” IPO in India in 2002
FOUNDING PRINCIPLES To remove superstition and ignorance. To spread education among all to sub-serve the first principle. To inculcate the habit of thrift and savings. To transform the financial institution not only as the financial heart of the community but the social heart as well. To assist the needy. To work with sense of service and dedication. To develop a concern for fellow human being and sensitivity to the surroundings with a view to make changes/remove hardships and sufferings.
VISIONTo emerge as a „Best Practices Bank‟ by pursuing global benchmarksin profitability, operational efficiency, asset quality, risk managementand expanding the global reach.MISSIONTo provide quality banking services with enhanced customerorientation, higher value creation for stakeholders and to continue asa responsive corporate social citizen by effectively blendingcommercial pursuits with social banking.
PROFILE OF THE BANKType- PublicTraded as BSE: 532483 NSE: CANBK Industry- Banking, Financial servicesHeadquarters- Bangalore, Karnataka Key people- Sunderrajan Raman (CMD)
NETWORK 3,595 branches in 1,139 cities across India 2,858 networked ATM‟s Foreign branches in Hong Kong, UK, China, Russia, UAE
BUSINESS STRATEGIES They focus on domestic banking, i.e. increased numbers of banks in home country They have introduced Internet and Mobile banking (IMB) They promote the thought of “Anywhere Banking” They have strong fundamentals Enlightened leadership They promote family like work culture
WEAKNESSES Efforts are concentrated more towards the urban consumers thus ignoring the rural counterpart. Number and spread of branches is very low as compared to PSU banks. Excessive focus on non-branch distribution channel reducing the scope of personal interaction needed for the sale of retail product.
OPPORTUNITIES Changing consumer outlook towards loans and related products. Rising consumer income levels. Increasing banking habits among Indian consumers. Rapid increase in the retail loan market size to the tune of 30 – 40 %.
THREATS Stiff competition in the housing loans segment from HDFC, LIC Housing etc. In the Credit card segment, competition from Citibank, Stan Chart etc. Of late, lots of Non Banking Financial Institutions have emerged and have eaten up the banks‟ market share. Educating people by way of advertisements might help competitors to reap the benefits.
EMPLOYEE FEEDBACK Since its a government bank, bureaucracy is present They don‟t provide flexible work environment Appreciation of work is not being done
CUSTOMER FEEDBACK Many customers have been circling around the bank for getting their work done but all that goes in vain Customers are not valued The equipments provided by the bank are also not technically sound. Rural customers who have an account in this bank can not wholly utilize services provided by Canara bank as very few banks are their in the rural segment. They are very unsystematic and inefficient They are not customer friendly