This document analyzes the banking sector in India. It begins with an introduction to the history and types of banks in India, including public sector banks, private sector banks, cooperative banks, and foreign banks. It then discusses the various services provided by banks, including treasury operations, retail banking, corporate banking, investment banking, lending, and agriculture banking. Sales turnover is analyzed for both public and private sector banks. Charts show the sales turnover and employees to sales turnover ratio for major private sector banks compared to public sector banks. In conclusion, the document states that banks play an important role in the Indian economy through activities like money issuance, payments, and credit creation.

1. VIT BUSINESS SCHOOL
Market Analysis Banking Sector
Srinadh Ramanadham
Dixit Bhandari.P
Cynthia Banylla Marbaniang
Archna Gupta

2. Contents
VIT Business School ..........................................................................................................................2
Introduction to Banking Sector ............................................................................................................3
PUBLIC SECTOR BANKS: ...........................................................................................................4
PRIVATE SECTOR BANKS: .........................................................................................................4
CO-OPERATIVE BANKS IN INDIA..............................................................................................4
FOREIGN BANKS IN INDIA.........................................................................................................4
Services Provided By Banking Sector ..................................................................................................5
Sales Turnover ...................................................................................................................................7
Public Bank sector ..........................................................................................................................8
Private Banks Sector .......................................................................................................................8
Employee and Sales turnover ratio .......................................................................................................9
Public sector ................................................................................................................................. 10
Private sector ................................................................................................................................ 10
CONCLUSION ................................................................................................................................ 11

3. VIT Business School
VIT University was established in 1984 by well-known educationalist and former
parliamentarian, Dr. G. Viswanathan, Founder and Chancellor. Dr. V. Raju, Former
Professor of State University of New York, USA, currently the Vice Chancellor, Dr. Anand
A. Samuel, Pro-Vice Chancellor. Chennai Campus is in Vandalur-Kelambakkam Road.VIT
University has more than 17 Bachelor’s and 32 Masters’ programmes, 29000 (including 1000
foreign students from 44 countries) and 4000 faculty members
Accreditation:
 The National Assessment and Accreditation Council (NAAC) of the University Grants
Commission (UGC) has accredited the university with a 'A'.
 The Institution of Engineering and Technology (IET), and the Energy Institute, UK have
audited the teaching- learning processes at VIT and accredited the programmes in 2004, with
the highest validity of five years
 Programmes at VIT are accredited by the Institution of Engineers, India (IEI).
 The Accreditation Board for Engineering and Technology (ABET) of the USA accredited the
Civil, Mech, CSE, biomedical, ECE, EEE programmes.
VIT Business School, under the aegis VIT University has created a niche for itself as an
institution promoting excellence in management education and research with Dr. M J Xavier as
its Executive Director.
Sincere Thanks to Dr. James Daniel Paul for having given us this wonderful opportunity to do a
complete study on market for the companies of our own interest.

4. Introduction to Banking Sector
Banking in India in the modern sense originated in the last decades of the 18th century. The first
banks were Bank of Hindustan (1770-1829) and The General Bank of India, established 1786
and since defunct.
The largest bank, and the oldest still in existence, is the State Bank of India, which originated in
the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This
was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of
Madras, all three of which were established under charters from the British East India Company.
The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's
independence, became the State Bank of India in 1955. For many years the presidency banks
acted as quasi-central banks, as did their successors, until the Reserve Bank of India was
established in 1935.
In 1969 the Indian government nationalized all the major banks that it did not already own and
these have remained under government ownership. They are run under a structure known as
'profit-making public sector undertaking' (PSU) and are allowed to compete and operate as
commercial banks. The Indian banking sector is made up of four types of banks, as well as the
PSUs and the state banks, they have been joined since the 1990s by new private commercial
banks and a number of foreign banks.
Generally banking in India was fairly mature in terms of supply, product range and reach-even
though reach in rural India and to the poor still remains a challenge. The government has
developed initiatives to address this through the State Bank of India expanding its branch
network and through the National Bank for Agriculture and Rural Development with things like
microfinance. This also included the 2014 plan by the then prime minister to bring bank accounts
to the estimated 40% of the population that were still unbanked. The banking sector is one of the
biggest service sector in India and nowadays is in a way to attract
The biggest market of Asia in investment. The banking sector today is focusing on how to
provide efficient services to its customers. The Indian Banking System consisting of various
public and
Private sector financial institutions whose objective is serving the people for their financial and
Economic needs.

5. PUBLIC SECTOR BANKS:
Allahabad Bank, Andhra Bank, Bank of Baroda, Bank of India, Bank of Maharastra, Canara Bank,
Central Bank of India, Corporation Bank, Dena Bank, IDBI Bank, Indian Bank, Indian Overseas Bank,
Oriental Bank of Commerce, Punjab & Sind Bank, Punjab National Bank, Syndicate Bank, UCO Bank,
Union Bank of India, United Bank of India, Vijaya Bank
PRIVATE SECTOR BANKS:
Bank of Punjab, Bank of Rajasthan, Catholic Syrian Bank, Centurion Bank, City Union Bank,
Dhanalakshmi Bank, Development Credit Bank, Federal Bank,HDFC Bank, ICICI Bank,IndusInd Bank,
Vysya Bank, Jammu & Kashmir Bank, Karnataka Bank,Karur Vysya Bank, Laxmi Vilas Bank, South
Indian Bank, United Western Bank, UTI Bank.
CO-OPERATIVE BANKS IN INDIA
Cooperative banks in India finance rural areas under: Farming, Cattle, Milk, Hatchery, and Personal
Finance
Cooperative banks in India finance urban areas under: Self-employment, Industries, Small scale units,
Home Finance, Consumer finance, Personal finance
FOREIGN BANKS IN INDIA
ABN-AMRO Bank, Abu Dhabi Commercial Bank, Bank of Ceylon, BNP Paribas Bank, Citi Bank,
China Trust Commercial Bank, Deutsche Bank, HSBC, JPMorgan Chase Bank, Standard Chartered Bank,
Scotia Bank, Taib Bank

6. Services Provided By Banking Sector
 Treasury operations
 Retail banking
 Corporate/Wholesale banking
 NRI services
 Business banking
 Investment banking
 Lending to small and medium enterprises
 Agriculture banking
Treasury operations:
The Bank’s treasury operation services include investments in sovereign and
corporate debt, equity and mutual funds, trading operations, derivative
trading and foreign exchange operations on the account, and for customers
and central funding.
Retail banking:
In the retail banking category, the bank offers services such as lending to
individuals/small businesses subject to the orientation, product and
granularity criterion, along with liability products, card services, Internet
banking, automated teller machines (ATM) services, depository, financial
advisory services, and Non-resident Indian (NRI) services.
Corporate/wholesale banking:
The Bank offers to corporate and other organizations services including
corporate relationship not included under retail banking, corporate advisory
services, placements and syndication, management of public issues, project
appraisals, capital market related services and cash management services.
NRI services:
Products and services for NRIs that facilitate investments in India.

7. Business banking:
The Bank accepts income and other direct taxes through its authorized
branches different locations and central excise and service taxes (including
e-Payments) through authorized branches at different locations.
Investment banking:
Bank’s Investment Banking business comprises activities related to Equity
Capital Markets, Mergers and Acquisitions and Private Equity Advisory.
Lending to small and medium enterprises:
Bank SME business is segmented in three groups: Small Enterprises,
Medium Enterprises and Supply Chain Finance. Under the Small Business
Group a subgroup for financing micro enterprises is also set up. Axis bank is
the first Indian Bank having TCDC cards in 11 currencies.
Agriculture banking:
Bank provide banking services, including agricultural loans, to farmers.

8. Sales Turnover
Sales turnover represents the value of goods and services provided to customers during a
specified time period - usually one year.
The term is often just referred to as sales or net sales, which means revenues without VAT.
Sales turnover is usually expressed in monetary terms but can also be in total units of stock or
products sold.
It is often described by being converted into the company's accounting currency.
Step 1:
Calculate the average inventory in units by adding the daily inventory for each day of the
period and dividing by the number of days in the period. Or, if daily inventory amounts are
unavailable, use the data available. For example, if you are calculating the annual sales turnover
and you have monthly inventory amounts, add the monthly inventory amounts and divide by 12
to find the average inventory.
Step 2:
Check the company records to find the value of the company's sales, as measured in units,
during the specified time period. Using units rather than dollars is preferable, as dollars can
fluctuate during the year.
Step 3:
Divide the company's total sales by the average inventory value to find the sales turnover
rate. For example, if the average inventory equals 500,000 units, and the company's sales for the
year equals five million units, divide five million units per year by 500,000 units to find that the
company's inventory turns over 10 times per year.

9. Public Bank sector
13%
4%
Private Banks Sector
45%
5% 6%
8%
13%
6%
Turnover(in Cr.)
SBI
Allahabad bank
Andhra bank
Bank of India
Bank of Maharashtra
Canara bank
Central Bank of India
Corporation Bank
SALES TURNOVER(in Cr.)
3% 3% 3%
5%
6%
5%
2%
4%
25%
26%
18%
SOUTH INDIAN BANK
ING VYSYA BANK
KARUR YASYA BANK
KOTAK MAHINDRA BANK
YES BANK
INDUSIND BANK
CITY UNION BANK
FEDERAL BANK
HDFC BANK
ICICI BANK
AXIS BANK

10. Employee and Sales turnover ratio
Revenue per employee measures the amount of sales generated by one employee. This is a
measure of performance of human resources of a company. It is an indicator of productivity of
company’s personnel. It also indicates how efficiently a company is utilizing its human
resources.
Generally speaking higher the revenue per employee figure is, the better it is. But revenue per
employee will vary in different industries according to intensity of labor. Revenue per employee
is less in the industries which are labor-intensive. On the other hand this metric is higher in the
high tech, low labor-intensive companies.
Revenue per employee is an absolute figure in terms of a currency; therefore, it may appear to be
less useful in analytical sense. For analytical purposes this figure should be compared with the
historical data to see any improvement or deterioration. It should also be compared with the other
similar companies operating in the same industry. This comparison over time and across industry
will give usefully insights into the productivity of personnel.
Revenue per employee is also influenced by the age of a company. Young companies usually
have small revenues and they are usually in the process of hiring employees to fill key positions.
Therefore their revenue per employee is lower than the established companies.
CALCULATION (FORMULA):
The formula for calculation of revenue per employee is given below
Revenue per Employee = Sales Revenue / Number of Employees
Usually the number of employees keeps on changing over the period. Therefore, it is preferable
to use average number of employees during the period. The figure for sales revenue can be found
in the income statement.
Sometimes earning per employee is also calculated by using net income, instead of sales
revenue, in the above formula. This is also a useful measure of productivity of employees.

11. Public sector
Private sector
Chart Title
0 100000 200000 300000
Employees Turnover(in cr.)
0 10000 20000 30000 40000 50000
AXIS BANK
ICICI BANK
HDFC BANK
FEDERAL BANK
CITY UNION BANK
INDUSIND BANK
YES BANK
KOTAK MAHINDRA BANK
KARUR YASYA BANK
ING VYSYA BANK
SOUTH INDIAN BANK
Chart Title
EMPLOYEES SALES TURNOVER(IN Cr)

12. CONCLUSION
Banking system has been with us as long as people using money in general it’s what banks do is pretty
easy to figure it out. For an average person bank accepts money and safeguards valuables.
Banks are quite important to the economy and are involved in such economic activity such as issuing
money settling payments credit indetrmation ,transformation and creation inform of fractional revers
banking.