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Analysis of CASA Ratio of IDBI Bank in Sitabuldi, Nagpur
Branch & Solutions for Increasing CASA Ratio of Bank
Guided by:- ...
Flow of Presentation
• Introduction of bank and Company
• Network of IDBI Bank
• Objectives of Project
• Meaning of CASA
•...
Introduction of Bank
• Bank is a financial institution which receives deposits from the public
and lends them for investme...
Introduction of Company
• The Industrial Development Bank of India Limited commonly known by its
acronym IDBI.
• It is one...
Introduction of Company
• The Bank gives Sunday Banking for customer satisfaction and for their
convenience.
• The Bank ha...
Network & delivery channels
(Current Scenario)
No. of Branches 1417
Metro
Urban
Semi Urban
Rural
International
344
422
385...
Objective of the Project
• To Analyze the CASA Ratio of IDBI Bank Limited, Branch Sitabuldi
Nagpur.
• To find out how to i...
Meaning of CASA
• Current Account
• Current accounts are specially for customers those who have to carry out
business and ...
Analysis of CASA Ratio
Deposits in Current & Savings Account
CASA Ratio =
Total Deposits
Particulars
March 2013 FY’14 - 15...
Marketing Strategy
The bank has two ways of marketing namely:-
1. Through Branch
2. Through Sales Department
1. Through Br...
Marketing Strategy
2. Through Sales Department
• In this method the sales department employees take the whole responsibili...
• Video
12
Scope of Project
• CASA stands for current and savings account. Different kinds of deposits —
current account, savings acc...
Scope of Project
The CASA ratio shows how much deposit a bank has in the form of current and
saving account deposits in th...
Limitation of the study
• Analysis was purely based on the responses of respondents.
• There was limited time for the coll...
How is CASA different from term and demand deposits?
• Current and saving accounts remain operational.
• Depositors don't ...
Types of Saving Account in IDBI Bank
• Saving accounts
• Royale & Royale plus Account.
• Preferred Account.
• Power plus A...
Types Of Current Account in IDBI Bank
• Flexi Current Account (Retail).
• Flexi Current (Co-op and other Banks).
• Flexi A...
Solutions for Increasing CASA Ratio of IDBI Bank
CASA plays important role in Bank Cash liquidity. A high CASA ratio indic...
Research Methodology
Data Collection
1) Primary Data Collection:-
Primary survey will be conduct with the help of Structur...
Basic Information of Customers
21
Age of Consumers
22
Education of Customers
23
Occupation of Respondents
24
Marital Status of Customers
25
Banking Details
26
Years wise Segmentation
27
Bank Service used by Respondents
28
Bank Service used by Respondents
29
Account Currently used by Customers
Savings Account
30
Account Currently used by Customers
31
Account Currently used by Customers
Current Account
32
Preference of Transaction by Respondents
33
Problem Facing by Non-Home Branch
Respondents
34
Types of problem facing in Non-Home Branch
35
Satisfied Customers in IDBI Bank on
Account Services
87%
13%
Satisfied Customers in IDBI Bank on Account Services
yes
no
36
Problems facing by customers
37
Continuation of Account Services in IDBI
Bank
96%
4%
Continuation of Account Service in IDBI Bank
yes
no
38
Suggest to anybody for using IDBI Bank
Services
39
Conclusion
• From the analysis part it can be conclude that customers have a good
respond towards IDBI Bank products in Na...
Suggestions for CASA Ratio of IDBI Bank
• Increase Facility in ATM centre i.e. Mobile Top up & Recharge, Railway tickets B...
References
1) Books and Journals
• Annual Report of IDDI Bank (2013), p. 35-37
• Chandel K.S. (2009): "Ethics in Commerce ...
References
• Nair, Tara S. (1999), “Banking Concerns”, Commentary on Economic and Political,
Vol.XXXIV, No.28, p.1871.
• R...
Thank You
44
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CASA Presentation

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CASA Presentation

  1. 1. Analysis of CASA Ratio of IDBI Bank in Sitabuldi, Nagpur Branch & Solutions for Increasing CASA Ratio of Bank Guided by:- Prof. Dilip R. Vahoniya Presented By:- Kirit.V.Kene Assistant Professor IABMI, Anand Company Guide:- Anupam Dhurve Assistant Manager 1
  2. 2. Flow of Presentation • Introduction of bank and Company • Network of IDBI Bank • Objectives of Project • Meaning of CASA • Solutions for Increasing CASA Ratio • Scope and Limitation of Study • Research Methodology • Suggestion and Conclusion • References 2
  3. 3. Introduction of Bank • Bank is a financial institution which receives deposits from the public and lends them for investment purpose . • Banking is a service industry . • Banks provide financial services to the people , business and industries. 3
  4. 4. Introduction of Company • The Industrial Development Bank of India Limited commonly known by its acronym IDBI. • It is one of India's leading public sector banks and 4th largest Bank in overall ratings. • RBI categorized IDBI as an "other public sector bank". It was established on July 1, 1964 by an Act of Parliament . • The main aim behind setting up of IDBI was to provide credit and other facilities for the Indian industry, which was still in the initial stages of growth and development. • The Industrial Development Bank of India (IDBI) was established under an Act of Parliament as a wholly owned subsidiary of the Reserve Bank of India. IDBI Bank Ltd. is a Universal Bank with its operations driven by a cutting edge core Banking IT platform. IDBI Bank logo indicates the Human Development. 4
  5. 5. Introduction of Company • The Bank gives Sunday Banking for customer satisfaction and for their convenience. • The Bank has also set up an overseas branch at Dubai and have plans to open representative offices in various other parts of the Globe, for encashing emerging global opportunities. • The Bank’s experience of financial markets will help them to effectively cope with challenges and capitalize on the emerging opportunities by participating effectively in the country’s growth process. • The Bank's total business, during FY 2013-14, reached Rs. 4,33,460 Crore, Bank earned a net profit of Rs. 1121 Crore, Bank having deposits 2,35,774 crore, Bank having a Gross Income 29,576. 5
  6. 6. Network & delivery channels (Current Scenario) No. of Branches 1417 Metro Urban Semi Urban Rural International 344 422 385 265 1 No. of Branches ATMs Centers Sole Center Rural 2444 1005 998 53 Source:www.idbi.com 6
  7. 7. Objective of the Project • To Analyze the CASA Ratio of IDBI Bank Limited, Branch Sitabuldi Nagpur. • To find out how to increase the CASA Ratio of IDBI Bank Limited Branch Sitabuldi Nagpur. 7
  8. 8. Meaning of CASA • Current Account • Current accounts are specially for customers those who have to carry out business and large number of transactions in the account every day. There are no restrictions on the number of transactions in current accounts. • No interest is paid on the balances in current accounts. • Savings Account:- • Savings Bank accounts are specially for individual persons or jointly individual (Joint Account), which have a transaction limit at every day. i.e. Cash withdrawn once at a day and 100 times deposition at every year. • Bank Pay interest on this account. i.e. Currently 4% Interest rate on saving account 8
  9. 9. Analysis of CASA Ratio Deposits in Current & Savings Account CASA Ratio = Total Deposits Particulars March 2013 FY’14 - 15 Budget Actual Difference March 2014 June 14 Actual June 14 Budget Mar 15 BudgetBudget Actual Difference CASA 101.28 100.48 -2.76 84.18 133.49 49.31 101.14 81.08 135.75 CA 29.05 46.86 17.81 26.71 41.96 15.25 34.78 25.50 44.22 SA 72.23 53.62 -18.62 57.47 91.53 34.06 66.36 52.58 91.53 In Crore 9
  10. 10. Marketing Strategy The bank has two ways of marketing namely:- 1. Through Branch 2. Through Sales Department 1. Through Branch:- • In this method they talk directly to the existing customers about the various new schemes and other important information. • According to the bank people this method is effective but the information does not go to large number of people. • Because of this method the people are not aware of various schemes and important announcements about bank so they cannot open account with us. 10
  11. 11. Marketing Strategy 2. Through Sales Department • In this method the sales department employees take the whole responsibility of giving the information to common people about the new schemes and facilities. • The employees take the help of pamphlets, advertisement in television, etc., go door-to-door for distributing pamphlets, give advertisements on internet on various websites most visited by people, etc. • This method has positive impact that the people come to know about the various new schemes and facilities. • This method is approved by the employees. 11
  12. 12. • Video 12
  13. 13. Scope of Project • CASA stands for current and savings account. Different kinds of deposits — current account, savings account. • A high CASA ratio indicates that a higher portion of the bank’s deposits come from current and savings accounts. • This means that the bank is getting money at low cost, since no interest is paid on the current accounts and the interest paid on savings account is usually low. • Current and Saving Accounts are demand deposits and therefore pay lower interest rates compared to term deposits where the rates are higher. • Thus higher CASA ratio means that more of the money deposited in the bank is in the demand deposits i.e. the CASA, thus bank is getting the money at lower cost. 13
  14. 14. Scope of Project The CASA ratio shows how much deposit a bank has in the form of current and saving account deposits in the total deposit. • Net interest margin is difference between total interest income and expenditure and is shown as a percentage of average earning assets. • Higher income from CASA will improve the net interest margin as the cost of this fund is relatively lower. • For instance, most banks lend at over 10%, whereas, the rate of interest that they pay on saving deposit is just 3.5%. • However, actual realization depends on other expenditure, too. 14
  15. 15. Limitation of the study • Analysis was purely based on the responses of respondents. • There was limited time for the collection of data for study. • Selected sample due to its size may not represent actual population. • Respondent has given answer the question based on their perception and experience which can’t be generalized. • The Study is confined to Branch only not to all over the whole Bank. 15
  16. 16. How is CASA different from term and demand deposits? • Current and saving accounts remain operational. • Depositors don't need to give prior notice to withdraw money, however, in case of term deposits, the money is locked in for a specific period. • If a depositor wishes to withdraw the money before maturity, he may have to pay a fine. • Usually, an overdraft facility is available with the current account deposit. Demand deposit gives you the facility to withdraw your money anytime. 16
  17. 17. Types of Saving Account in IDBI Bank • Saving accounts • Royale & Royale plus Account. • Preferred Account. • Power plus Account. • Super Savings Account. • Powerkidz Savings Account. • Super Shakti Savings Account / Women’s Account. • Jubilee plus Savings Account. • Being Me Account. • Sabka Savings Account-Relaxed KYC. • Sabka Basic Savings-Complete KYC. • Family Account (For Indian Army). 17
  18. 18. Types Of Current Account in IDBI Bank • Flexi Current Account (Retail). • Flexi Current (Co-op and other Banks). • Flexi Accounts for BULK (TASC, Educational Institutes, Government Accounts). 18
  19. 19. Solutions for Increasing CASA Ratio of IDBI Bank CASA plays important role in Bank Cash liquidity. A high CASA ratio indicates that a higher portion of the bank’s deposits come from current and savings accounts. • Bank should concentrate on Opening more Saving Accounts as well as Current Account. • Bank should Increase their Branches and ATM’s in suitable area so that customer preference gives towards our Bank. • Install Cash Deposit Machine in Market Area, Urban Area, Rural and semi-rural area so that customer attracts and deposit conveniently their cash. It is more suitable for the retailers, businessmen, senior citizens and other customers also. • Bank Focus on Green channel counter so that customer give more preference to them. • Give loyality gifts to the creamy customers. • Launch Extra e-services. Like e-lounge, phone banking etc. • Find out the good customers and open their account in our Branch. 19
  20. 20. Research Methodology Data Collection 1) Primary Data Collection:- Primary survey will be conduct with the help of Structured Questionnaire. 2) Secondary Data Collection:- Secondary Data will be collected from as per IDBI Bank,Sitabuldi, Nagpur Branch, Journal, Website, Magazines. 1. Research Design Descriptive Research 2. Sample Unit Bank Customers 3. Sample Size 100 4. Sampling Method Non probability sampling 5. Sampling Technique Convenient Sampling 6. Sampling Area IDBI Bank Ltd. Sitabuldi Nagpur Branch 20
  21. 21. Basic Information of Customers 21
  22. 22. Age of Consumers 22
  23. 23. Education of Customers 23
  24. 24. Occupation of Respondents 24
  25. 25. Marital Status of Customers 25
  26. 26. Banking Details 26
  27. 27. Years wise Segmentation 27
  28. 28. Bank Service used by Respondents 28
  29. 29. Bank Service used by Respondents 29
  30. 30. Account Currently used by Customers Savings Account 30
  31. 31. Account Currently used by Customers 31
  32. 32. Account Currently used by Customers Current Account 32
  33. 33. Preference of Transaction by Respondents 33
  34. 34. Problem Facing by Non-Home Branch Respondents 34
  35. 35. Types of problem facing in Non-Home Branch 35
  36. 36. Satisfied Customers in IDBI Bank on Account Services 87% 13% Satisfied Customers in IDBI Bank on Account Services yes no 36
  37. 37. Problems facing by customers 37
  38. 38. Continuation of Account Services in IDBI Bank 96% 4% Continuation of Account Service in IDBI Bank yes no 38
  39. 39. Suggest to anybody for using IDBI Bank Services 39
  40. 40. Conclusion • From the analysis part it can be conclude that customers have a good respond towards IDBI Bank products in Nagpur. • IDBI Bank is in good position compares to other public sector bank, having large number of customers & providing good services to them. • The bank has a wide customer base, so the bank should concentrate on this to retain these customers and also concentrate to increase the more customers. • Launch Innovative product • Better customer services • Fastest customers problem solving techniques • Customer retention • Apart from all the above, IDBI Bank believe in providing good customer services to their customers which is a key factor for success in future. 40
  41. 41. Suggestions for CASA Ratio of IDBI Bank • Increase Facility in ATM centre i.e. Mobile Top up & Recharge, Railway tickets Booking, Income Tax payment Counter and other services so that more customers attracts. • Increase more products in the current account so that more retailers and business man attracts. • Increase cash Deposit and Cash Withdrawal facility from Non-Home Branches. • Provides Good and rapid service to the Non-Branch Customers also. • Secure Mobile Banking Facility so that more customer use it. • Increase facility on the Internet Banking Facility, so that more customers conveniently banking from Internet also. • Open the BULK current Account in Bank. • Target on Creamy Customer of Market. 41
  42. 42. References 1) Books and Journals • Annual Report of IDDI Bank (2013), p. 35-37 • Chandel K.S. (2009): "Ethics in Commerce Education." Paper presented at the Annual International Conference for the All India Management Association, New Delhi, India, p. 19–22 June. • Crowther & Nicholas Capaldi, Ashgate Research Companion to Corporate Social Responsibility, Chapter 15, p 287-303. • “ Chdrashekhar Verma”, “Corporate Banking and Retail Banking in India”, p.84-94 • Dr. A. Rama Chandran And R. Amuthan, “Impact Of Casa Deposit Growth On The Profitability Of Nse Listed Nationalized Banks And New Generation Banks In India - A Comparative Study” International Journal Of Research In Computer Application & Management. p.33-37 • “ J. Sethraman” “Retail Banking models and Strategies at the Indian Scenario” p.45-49. • “Mukesh Kumar Verma” “International Journal Of Research In Computer Application & Management” P 15-17 42
  43. 43. References • Nair, Tara S. (1999), “Banking Concerns”, Commentary on Economic and Political, Vol.XXXIV, No.28, p.1871. • Ramappa, P and sivasankaraiah, M.,2007, Perforamance of Bank: A astudy. Southern Economist, 46(1): p.25-28. • Sharma T., Kwatra, G. (2008) Effectiveness of Social Advertising: A Study of Selected Campaigns, Corporate Social Responsibility, Edited by David.p.101-107 • Vikas prabha, “IDBI Bank Mumbai Head Quarter” January-March-2014 “p.4-11” • Websites:- • http://www.idbi.com/flexi-current-account.asp accessed on12/07/2014 • http://www.idbi.com/flexi-current-accountbulk&tasc.asp accessed on 29/06/2014 • http://www.idbi.com/idbi-bank-about-us.asp accessed on 31/06/2014 • http://www.idbi.com/super-saving-account.asp accessed on 07/07/2014 • http://www.idbi.com/super-shakti-women-savings-account.asp accessed on 20/06/2014. • http://en.wikipedia.org/wiki/CASA_ratio accessed on 02/07/2014 • http://www.nayamvala.com/casa accessed on 04/07/2014 43
  44. 44. Thank You 44

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