TOPIC : FINANCIALINSTITUTIONS[INDIAN BANK]Presented By :- Jigar.M.Gogri
INTRODUCTIONTO FINANCIALINSTITUTIONS In financial economic , a financial institution is aninstitution that provides financial services for itsclients or members. Probably the most importantfinancial service provided by financial institutionsis acting as financial intermediaries. Most financialinstitutions are regulated by the government.
Financial Institutions in India Broadly speaking, there are three major types offinancial institutions.1. Depositary Institutions2. Contractual Institutions3. Investment Institutes
Financial Institutions in India These are divided into two categories .First isregulatory bodies & second is the intermediaries.Regulatory bodies Reserve Bank of India (RBI) Securities and Exchange Board of India (SEBI) Central Board of Direct Taxes (CBDT) Central Board of Excise & Customs
Contd… The Intermediaries that include the banking andnon-banking financial institutions. Unit Trust of India (UTI) Securities Trading Corporation of India Ltd. (STCI) Industrial Development Bank of India (IDBI) Industrial Reconstruction Bank of India (IRBI), now(Industrial Investment Bank of India) Export - Import Bank of India (EXIM Bank) Small Industries Development Bank of India (SIDBI)
Contd.. National Bank for Agriculture and RuralDevelopment (NABARD) Life Insurance Corporation of India (LIC) General Insurance Corporation of India (GIC) Shipping Credit and Investment Company of IndiaLtd. (SCICI) Housing and Urban Development CorporationLtd. (HUDCO) National Housing Bank (NHB)
Introduction Indian Bank was Established on 15th August 1907as part of the Swadeshi movement .Serving the nationwith a team of over 18782 ,dedicated staff TotalBusiness crossed Rs. 2,11,988 Crores as on31.03.2012, Operating Profit increased to Rs. 3,463.17 .Crores as on 31.03.2012, Net Profit increased toRs.1746.97 Crores as on 31.03.2012.
Contd… The bank has its Overseas branchesin Singapore, Colombo including a ForeignCurrency Banking Unit at Colombo and Jaffna and240 Overseas Correspondent banks in 70countries.
The bank has itsthreesubsidiary in IndiaNamely The bank has its three subsidiary in IndiaNamely Indbank Merchant Banking Services Ltd IndBank Housing Ltd. IndFund Management Ltd
INDIAN FUND MANAGEMENT LIMITEDIndian Bank Mutual Fund (IBMF) was formed as aTrust during 1990 sponsored by Indian Bank with acorpus of Rs. 25 lakhs.The Asset Management Company was formed duringJanuary 1994 as a wholly owned subsidiary of IndianBank with a paid up capital of Rs.5 crores.IBMF launched 12 close-ended schemes and raisedRs.627.10 crore.
INDIAN BANK HOUSING LIMITED Ind Bank Housing Limited (IBHL), which wasformed as a Subsidiary of Indian Bank during theyear 1991 performed well during the initial years due to various factors including a high level ofNPAs, IBHL started showing financial strains . Now the company is engaged in recovery of duesfrom various categories of borrowers and applyingthe same for reduction of public deposits
INDIAN BANK MERCHANTBANKINGSERVICES LIMITED Indbank was incorporated as a wholly ownedSubsidiary of Indian Bank in 1989 to take over thebusiness of Merchant Banking division of IndianBank and to undertake other specialized activities. The division had managed 133 issues for anaggregate value of Rs.2250 crore between 1982 and1989
PROMOTERS Indbank was promoted by Indian Bank, which wasamong the first native banks to be incorporated insouth India in 1907. Indian Bank was nationalizedin 1969. Indian Bank is also the promoter of IndianBankMutual Fund (a trust) for mutual fundactivities, Indbank Housing Limited (along withHUDCO) and Indfund Management Ltd.
Management Shri Rajeev Rishi, Executive Director, Indian Bank, has beenco-opted as an Additional Director/Chairman on the Boardwith effect from 13th June 2011. Shri V Rajeev Rishi aged 51 years,holds a Bachelors degree in Arts and LLB. He has more than 32years of experience in various positions in the Banking industry. Shri Banabihari Panda, General Manager, Indian Bank hasbeen appointed as the President & Whole time Director of thecompany , Shri Banabihari Panda aged 55 is a B.A.(Hones), LLB, MA, MBA and holds diploma in InternationalBanking & Finance, Certified Treasury ManagerProgram, Diploma in Treasury, Investment and Risk Managementand CAIIB qualifications.
Cont.. Shri G Rangarajan, Deputy General Manager, Indian Bank hasbeen appointed as the President & Whole time Director of thecompany , . Mr. G Rangarajan aged 55 is a M. A. (Economics) andhas P.G. Diploma in Portfolio Management, CAIIB, AIMADiploma in Management qualifications. Shri P M Venkatasubramanian, retired ManagingDirector, General Insurance Company and Chairman, RoyalSundaram Alliance Insurance Company Ltd has been co-optedby the Companys Board as an Independent Non-ExecutiveDirector with effect from April 16, 2010.
Contd.. Shri P V Rajaraman, IAS(Retd) has been co-opted as anIndependent Director Non-Executive Director on the Boardwith effect from July 15, 2009. Shri Anup Sankar Bhattacharya, Executive Director,Indian Bank, has been co-opted as an AdditionalDirector/Chairman on the Board with effect from July 15,2009.
BUSINESS & ACTIVITIES Merchant Banking & Advisory Services Stock Broking Depository Participant Activities Distribution of Mutual Fund and other Investmentproducts
CORPORATE GOVERNANCE POLICY The company firmly believes in transparency,professionalism, accountability, risk managementand code of ethics which are the fundamentalprinciples of corporate governance. The companywill constantly Endeavour to improve on theaspects on an ongoing basis.
RESPONSIBILITIES TO THE COMPANYAND ITS STAKEHOLDERS General Standards of Conduct Applicable Laws Conflict of InterestCorporate OpportunitiesUse of Company Assets on recordsPrevention of Corruption
GUIDELINES BYTHE REGULATORYBODY (SEBI)Regulations for Merchant Banking Application for grant of certificate• Application to conform to the requirement• Furnishing of information, clarification and personal representation• Consideration of application• Capital adequacy requirement• Procedure for registration• Renewal of certificate• Procedure where registration is not granted• Effect of refusal to grant certificate• Payment of fees and the consequences of failure to pay fees
RATIOSEarnings per share = Amt Available For Equity Share Holder/Total NoOf Equity SharesEPS :0.20Price earning ratio = Market Per Share/Earnings Per ShareP/E :36.90Debt equity ratio = Share Capital/Net WorthD/E :1.06