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Final Banking[1]
Final Banking[1]
Final Banking[1]
Final Banking[1]
Final Banking[1]
Final Banking[1]
Final Banking[1]
Final Banking[1]
Final Banking[1]
Final Banking[1]
Final Banking[1]
Final Banking[1]
Final Banking[1]
Final Banking[1]
Final Banking[1]
Final Banking[1]
Final Banking[1]
Final Banking[1]
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Final Banking[1]

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  • 1. Presented by – Kunal Kurani PG-06-85 Mythili Venugopal PG-06-88 Ambarish Waghmare PG-06-120 Banking
  • 2. A Bank is Financial Institution Licensed to deal with money & substitutes Accepts deposits & lends money Provides services for profit Supervised by the Central Bank
  • 3. Key Terms <ul><li>Net Interest Income </li></ul><ul><ul><li>The difference between the revenues on the assets and the cost of servicing the liabilities. </li></ul></ul><ul><li>Net Interest Margin </li></ul><ul><ul><li>The difference between interest income and interest expenses, divided by average earning assets. </li></ul></ul><ul><li>Non Performing Assets </li></ul><ul><ul><li>Loans on which repayments or interest payments are not being made on time. </li></ul></ul>
  • 4. Key Terms Contd… <ul><li>Cash Reserve Ratio </li></ul><ul><ul><li>CRR requirement is a bank regulation that sets the minimum reserves each bank must hold with RBI </li></ul></ul><ul><li>Statutory Liquidity Ratio </li></ul><ul><ul><li>It is the amount which a bank has to maintain in the form of cash, gold or approved securities. The quantum is specified as some percentage of the total demand and time liabilities of a bank. </li></ul></ul><ul><li>Capital Adequacy Ratio </li></ul><ul><ul><li>Ratio which determines the capacity of the bank in terms of meeting the time liabilities and other risk such as credit risk, operational risk, etc. </li></ul></ul>
  • 5. Parameters for evaluation Growth Valuation Size Safety Efficiency Profitability BANKS
  • 6. Parameters <ul><li>Profitability </li></ul><ul><ul><li>Net Interest Margin </li></ul></ul><ul><ul><li>Net Profit </li></ul></ul><ul><li>Efficiency </li></ul><ul><ul><li>Return on Average Assets </li></ul></ul><ul><ul><li>Profit Per Employee </li></ul></ul><ul><li>Safety </li></ul><ul><ul><li>Net NPA to net Advances </li></ul></ul><ul><ul><li>Capital Adequacy Ratio </li></ul></ul>
  • 7. Parameters <ul><li>Size </li></ul><ul><ul><li>Assets </li></ul></ul><ul><ul><li>Income </li></ul></ul><ul><li>Valuation </li></ul><ul><ul><li>PE Multiple </li></ul></ul><ul><ul><li>Price to Book Value </li></ul></ul><ul><li>Growth </li></ul><ul><ul><li>Net Interest Income </li></ul></ul><ul><ul><li>Net Profit </li></ul></ul>
  • 8. 254584.00 470868.00 Net Interest Income 29.20 times 24.90 times PE Multiple 12.8 % 13.37 % Capital Adequacy Ratio 1.71 % 0.71 % NPA 72.61 % 322.15 % Net Interest Margin 8.50% 9.50% Rate of Interest HDFC Bank ICICI Bank  
  • 9. D F I Commercial Banks N B F C
  • 10. Universal Banking
  • 11. Universal Banking <ul><li>A one stop financial supermarket </li></ul><ul><li>An institution that includes investment banking, insurance, etc. apart from traditional banking services. </li></ul>
  • 12. Universal Banking Traditional Services Investment Banking Commercial Banking Financial Products
  • 13. Why Universal banking…..??? <ul><li>Maximisation of profits </li></ul><ul><li>Sustain the growing competition from global players </li></ul><ul><li>Retaining customers </li></ul>
  • 14. Merits <ul><li>Economies of scale & scope </li></ul><ul><li>Lower risk of substitution </li></ul><ul><li>Industrial development </li></ul><ul><li>Globalisation </li></ul>
  • 15. Limitations <ul><li>Complex supervision </li></ul><ul><li>Holding large block of stocks – influence national interest </li></ul>
  • 16. ICICI ICICI Bank Subsidiary Long Term financing as per sectoral needs Short Term financing fulfilling Working Capital needs Narasimham Committee II ICICI ICICI Bank
  • 17. ICICI BANK Personal Banking NRI Banking Corporate Banking Cards / Loans Insurance Demat Services Investments Money Transfer Investments Property Solutions Cash Management Trade Services Corporate Net banking
  • 18. Happy Holi...

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