ORGANIZATIONAL STUDY In DHANLAXMI BANK, PEENYA, BANGALORE(SPECIAL TASK: “A Study of Preferences of the future investors in mutual funds”) Name : Y Kartheek Guptha Reg No : 421020522
Banking Industry The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country:• 1949: Enactment of Banking Regulation Act.• 1955: Nationalisation of State Bank of India.• 1959: Nationalisation of SBI subsidiaries.• 1961: Insurance cover extended to deposits.• 1969: Nationalisation of 14 major banks.• 1971: Creation of credit guarantee corporation.• 1975: Creation of regional rural banks.• 1980: Nationalisation of seven banks with deposits over 200 crore.
Evolution of Banking in India: Presidency Banks:• 1809 - Bank of Bengal• 1840 - Bank of Bombay• 1843 - Bank of Madras 1921 - Imperial Bank of India 1935 - Reserve Bank of India 1955 - State Bank of India 1969 - Nationalization of 14 Banks 1980 - Second Dose of Nationalization 1990s - Narasimham Committee Reforms 2003 - ICICI Merger
ADVANTAGES OF MUTUAL FUND• Portfolio Diversification• Professional management• Reduction / Diversification of Risk• LiquidityDISADVANTAGE OF MUTUAL FUND• No control over Cost in the Hands of an Investor• No tailor-made Portfolios• Managing a Portfolio Funds• Difficulty in selecting a Suitable Fund Scheme
Dhanlaxmi BankIntroduction : It was incorporated in November 1927 with its head office at Thrissur, Kerala by a group of 7 entrepreneurs with a capital of Rs. 11,000/- and 7 employees. Dhanlaxmi Bank with its 84 years of banking experience and with its rich heritage has earned the trust and goodwill of clients and due to their strong belief in the need to seek innovation, deliver best service and demonstrate responsibility, they have grown from strength to strength. With over 730 touch points across India; their focus has always been on customizing services and personalizing relations.
Vision & Mission• “To become a strong and innovative Bank with integrity and social responsibility and to maximize customer satisfaction and the satisfaction of its employees, shareholders and the community”
Geography Number of Branches14 States State-wise275 Branches460 ATM Andhra Pradesh 18As on March’11 Gujarat 6 Goa 1 Haryana 2 Karnataka 12 Kerala 153 Madhya Pradesh 1 Maharashtra 25 Punjab 1 Rajasthan 2 TamilNadu 36 U.P 5 West Bengal 5 Delhi 8
Achievements• Serviced business Worth Rs 21,595 Crores as on 31 March 2011, Comprising Deposits of Rs 12,530 Crores and Advances of Rs 9,065 Crores• Earned a Net Profit of Rs. 26.1 Crores for the Financial Year Ended 31st March 2011, With a Capital Adequacy Ratio of 11.8% (Basel II) During the Same Period• Set up NRI Boutiques (Relationship Centre’s) Across Nine Locations in Kerala and Tamil Nadu, With Plans to Open specialized NRI Outlets at Potential locations With Emphasis on Impeccable Service Levels• Bank is a Major Player in Micro Credit in Kerala and the Banks Outstanding Under Micro Credit was Rs. 266 crores at the End of March 2011• Attained ISO 9001-2000 Certification for the Banks Corporate Office at Thrissur and Industrial Finance Branch at Kochi
Milestones:• 1927 - Founded on 14 November, 1927, at Thrissur, Kerala•• 1975 - Set up the First Branch Outside the Home State of Kerala, at Chennai Mount Road•• 1977 - Designated as Scheduled Commercial Bank by the Reserve Bank of India (RBI)•• 1980 - 100- Strong Branch Network•• 1986 - Total business of Rs. 100 crores•• 1996 - First Public Issue. Total business of Rs. 1,000 crores•
• 2000 - Installed the First ATM• 2002 - First Rights Issue, Platinum Jubilee Year• 2007 - Total Business of Rs. 5,000 Crores. 80th Anniversary Year• 2008 - Total Business of Rs. 7,500 Crores. Second Rights Issue• 2009 - Opened 45 new Branches and 102 New ATMs• 2010 - Raised Rs. 381 Crores Through QIP in July 2010, Opened 20 New Branches and 280 New ATMs, Launched New Brand Identity; Created Platform for a Unified Image• 2011- Launched its 275th Branch in Jan 2011; ATM Network Expanded to 460, Total Asset Base for the Bank was Rs.14, 268 Crores, as on 31.03.2011
MARKET CAPITAL 2.41% 0.89%3.68% HDFC Bank ICICI Bank Axis Bank 16.85% 38.10% Yes Bank Federal Bank Dhanlaxmi Bank 38.07%
SWOT AnalysisSTRENGTHS :• Strong Network in Kerala & South India• Experience• Unlimited Transactions Through ATM From Any Bank Without Charge• ATM Card Can be Used Internationally• Attractive Fixed Deposit Rates (10.25%):
Weaknesses• Late entry in to North, East & West Indian Markets• Dhanlaxmi Bank Was Only Focusing in Kerala & South India Earlier• Less No. of Branches and ATMs As Compared to Competitors
Opportunities• Expansion Option in North , East & West India• Customers Have Become More Service- oriented• Customers Keep Fluctuating From Banks to Banks
Threats:• Big Players in the Industry• A False Rumor of Reliance Taking Over the Bank• Nationalized Banks are Growing Fast• Economic Conditions In India• RBI’s Policy Regarding CRR
Special Task• Objective : “A Study of Preferences of the future investors in mutual funds”Research data Sources :• Primary data(questionnaire)• Secondary data (Ref books and websites)
Findings• Today’s PG students pulse is most of them Interested in investment• Customer education is very bad• Mis-Guiding the customers• Future preferences of customers in which type of investment i.e. private or public or both• Which feature is attracting investment in mutual fund e.t.c.
Suggestions and Recommendations• Improve sales after services.• Provide customer needed information. Don’t confuse customer with multiple products or scheme.• Always keep employee updated with information.
Conclusion The mutual funds are one of the best avenues ofinvestment as it is a beautiful combination of risk and growth.After the economic reforms, the mutual funds has come along way and has increased manifold since then. Withincreased popularity and better returns in the mutual fundshave miles to go, Better option for investment. Better option for investment but people are notwilling to invest because not wanting risk and this is becausestereotype of Indian culture. Investment community in India is less compare toforeign countries but in savings India is no.1