101MFS Final Report

7/31/2019 101MFS Final Report

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A Project Report on

BANKING

INNOVATIONSSUBMITTED TO:

Dr. Hetal Jhaveri

Submitted by:

Milan Dave

Lipi Gandhi

Ankit Joshi

Keyur Khattar

Manisha Ramrakhyani

Amarjeet Jadeja


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Table Of Contents

Sr. No. Title Page No.

1 What Is Banking2 Need For

Banking3 Banking

Structure in India4 Banking Sector

Reforms5 Banking

Activites Pre andPostLiberalisation

6 TraditionalBanking Products

7 Innovative P&Soffered by Banks

8 Study Of ThreeBanks

9 NationalizedBank:

10 Private Bank:Axis Bank11 Foreign Bank:

StandardChartered Bank


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PART

-1


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Need for Banking


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Banking Structure in India

Reserve Bank

Of India

Commercial

Banks

Nationalized

Banks

Private Banks

Co-Operative

Bank

Short-Term

Credit

AgriculturalCredit

Urban Credit

Long Term

Credit

Development

Banks

EXIM

Industrial

Banks

Agricultural

Banks


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Banking Sector Reforms

1. Reduced CRR and SLR: The Cash Reserve Ratio (CRR) and StatutoryLiquidity Ratio (SLR) are gradually reduced during theconomic reforms period inIndia. By Law in India the CRR remains between 3-15% of the Net Demand andTime LiabilitieIt is reduced from the earlier high level of 15% plus incrementCRR of10% to current 4% level. Similarly, the SLR is also reducfrom early 38.5% to currentminimum of 25% level. This has lead to more loan able funds with commercial banks,solving the liquidity problem.

2. Deregulation of Interest Rate: During the economic reforms period, interestrates of commercial banks were deregulated. Banks now enjoy freedom of fixing thelower and upper limit of interest on deposits. Interest rate slabs are reduced fromRs.20 Lakhs to just Rs. 2 Lakhs. Interest rates on the bank loans above Rs.2 lakhs arefull decontrolled. These measures have resulted in more freedom to commercialbankin interest rate regime.

3. Fixing prudential Norm: In order to induce professionalism in its operations,the RBI fixed prudential norms for commercibanks. It includes recognition of incomesources. Classification of assets, provisions for bad debts, maintaining international

standards in accounting practices, etc. It helped banks in reducing and restructuringNon-performing assets (NPAs).

4. Introduction of CRAR: Capital to Risk Weighted Asset Ratio (CRAR) wasintroduced in 1992. It resulted in an improvement of capital position of commercialbanks, all most all the banks in India has reached the Capital Adequacy Ratio (CAR)above tstatutory level of 9%.

5. Operational Autonomy: During the reforms period commercial banks enjoyedthe operational freedom. If a bank satisfies the CAR then it gets freedom in openingnew brancheupgrading the extension counters, closing down existing branches andthey get liberal lending norms.

6. Banking Diversification: The Indian banking sector was diversified, during theeconomic reforms period. Many of the banks have stared new services and newproducts. Some of them have established subsidiaries in merchant banking, mutualfunds, insurance, venture capital, etc which has led to diversified sources of income to

them.


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7. New Generation Banks: During the reforms period many new generation bankshave successfully emerged on the finance horizon. Banks such as ICICI Bank, HDFCBank, UTI Bank have given a big challenge to the public sector banks leading to a

greater degree of competition.

8. Improved Profitability and Efficiency: During the reform period, theproductivity and efficiency of many commercial banks has improved. It has happeneddue to the reduced Nonperforming loans, increased use of technology, morecomputerization and some other relevant measures adopted by the government. Theseare some of the import reforms regarding the banking sector in India. With thesereforms, Indian banks especially the public sector banks have proved that they are no

longer inefficient compared with their foreign counterparts as far as productivity isconcerned.


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PRE and POST LIBERLISATION PERIOD

Nationalization of banks was the first step of growth of banking sector in India before

Liberalization. The need and the impacts of nationalization and liberalization is shown

In detail in the following paragraphs.

Pre-Liberalisation (Nationalization)

Despite the provisions, control and regulations of Reserve Bank of India, banks in India

except the State Bank of India or SBI, continued to be owned and operated by private

persons. By the s1960s, the Indian banking industry had become an important tool to

facilitate the development of the Indian economy. At the same time, it had emerged as a large

employer, and a debate had ensued about the nationalization of the banking industry. Indira

Gandhi, then Prime Minister of India, expressed the intention of the Government of India in

the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts

on Bank Nationalization."The meeting received the paper with enthusiasm.

Thereafter, her move was swift and sudden. The Government of India issued an ordinance

('Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969')) and

nationalised the 14 largest commercial banks with effect from the midnight of July 19, 1969.

These banks contained 85 percent of bank deposits in the country. Jayaprakash Narayan, a

national leader of India, described the step as a "masterstroke of political sagacity."Within

two weeks of the issue of the ordinance, the Parliament passed the Banking Companies

(Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval on 9

August 1969.

A second dose of nationalization of 6 more commercial banks followed in 1980. The stated

reason for the nationalization was to give the government more control of credit delivery.

With the second dose of nationalization, the Government of India controlled around 91% of

the banking business of India. Later on, in the year 1993, the government merged New Bank

of India with Punjab National Bank. It was the only merger between nationalized banks and

resulted in the reduction of the number of nationalised banks from 20 to 19. After this, until

the 1990s, the nationalised banks grew at a pace of around 4%, closer to the average growth

rate of the Indian economy.
http://en.wikipedia.org/wiki/Nationalisationhttp://en.wikipedia.org/wiki/Parliament_of_Indiahttp://en.wikipedia.org/wiki/President_of_Indiahttp://en.wikipedia.org/w/index.php?title=New_Bank_of_India&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=New_Bank_of_India&action=edit&redlink=1http://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/w/index.php?title=New_Bank_of_India&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=New_Bank_of_India&action=edit&redlink=1http://en.wikipedia.org/wiki/President_of_Indiahttp://en.wikipedia.org/wiki/Parliament_of_Indiahttp://en.wikipedia.org/wiki/Nationalisation


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Liberalisation

In the early 1990s, the then Narasimha Rao government embarked on a policy of

liberalization, licensing a small number of private banks. These came to be known as New

Generation tech-savvy banks, and included Global Trust Bank (the first of such new

generation banks to be set up), which later amalgamated with Oriental Bank of Commerce,

UTI Bank(since renamed Axis Bank), ICICI Bankand HDFC Bank. This move, along with

the rapid growth in the economy of India, revitalized the banking sector in India, which has

seen rapid growth with strong contribution from all the three sectors of banks, namely,

government banks, private banks and foreign banks.

The next stage for the Indian banking has been set up with the proposed relaxation in thenorms for Foreign Direct Investment, where all Foreign Investors in banks may be given

voting rights which could exceed the present cap of 10%,at present it has gone up to 74%

with some restrictions.

The new policy shook the Banking sector in India completely. Bankers, till this time, were

used to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4) of functioning. The new

wave ushered in a modern outlook and tech-savvy methods of working for traditional

banks.All this led to the retail boom in India. People not just demanded more from their

banks but also received more.

Currently (2010), banking in India is generally fairly mature in terms of supply, product

range and reach-even though reach in rural India still remains a challenge for the private

sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are

considered to have clean, strong and transparent balance sheets relative to other banks in

comparable economies in its region. The Reserve Bank of India is an autonomous body, withminimal pressure from the government. The stated policy of the Bank on the Indian Rupee is

to manage volatility but without any fixed exchange rate-and this has mostly been true.

With the growth in the Indian economy expected to be strong for quite some time-especially

in its services sector-the demand for banking services, especially retail banking, mortgages

and investment services are expected to be strong. One may also expect M&As, takeovers,

and asset sales.
http://en.wikipedia.org/wiki/Narasimha_Raohttp://en.wikipedia.org/wiki/Liberalizationhttp://en.wikipedia.org/wiki/UTI_Bankhttp://en.wikipedia.org/wiki/Axis_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/HDFC_Bankhttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Retail_bankinghttp://en.wikipedia.org/wiki/Retail_bankinghttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/HDFC_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/Axis_Bankhttp://en.wikipedia.org/wiki/UTI_Bankhttp://en.wikipedia.org/wiki/Liberalizationhttp://en.wikipedia.org/wiki/Narasimha_Rao


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In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in

Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has

been allowed to hold more than 5% in a private sector bank since the RBI announced norms

in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by

them.

In recent years critics have charged that the non-government owned banks are too aggressive

in their loan recovery efforts in connection with housing, vehicle and personal loans. There

are press reports that the banks' loan recovery efforts have driven defaulting borrowers to

suicide.


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Banking Orientation

BANKS MAJOR

ORIENTATIONPERIOD

Traditional Banking

1969-1980

Accounting

Orientation

DevelopmentBankin

Selling Orientation

Bank Marketing PeriodAfter mid 1980s

Towards Marketing

Oreitation

Consequencesof

Nationalized&

PromptExpansion

Targets

SocialBanking

RisingCustomerNeeds

Disintermediation

BankingOperation


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Innovative Products and Services

Products & Services

Banks in India have traditionally offered mass banking products. Most common deposit

products being Savings Bank, Current Account, Term deposit Account and lending products

being Cash Credit and Term Loans. Due to Reserve Bank of India guidelines, Banks have

had little to do besides accepting deposits at rates fixed by Reserve Bank of India and lend

amount arrived by the formula stipulated by Reserve Bank of India at rates prescribed by the

latter. PLR (Prime lending rate) was the benchmark for interest on the lending products. But

PLR itself was, more often than not, dictated by RBI. Further, remittance products were

limited to issuance of Drafts, Telegraphic Transfers, Bankers Cheque and Internal Transfer of

funds.

In view of several developments in the 1990s, the entire banking products structure has

undergone a major change. As part of the economic reforms, banking industry has been

deregulated and made competitive. New players have added to the competition. IT revolution

has made it possible to provide ease and flexibility in operations to customers. Rapid strides

in information technology have, in fact, redefined the role and structure of banking in India.

Further, due to exposure to global trends after Information explosion led by Internet,

customers - both Individuals and Corporates - are now demanding better services with more

products from their banks. Financial market has turned into a buyer's market. Banks are also

changing with time and are trying to become one-stop financial supermarkets. Market focus

is shifting from mass banking products to class banking with introduction of value added and

customised products.

A few foreign & private sector banks have already introduced customized banking products

like Investment Advisory Services, SGL 2accounts, Photo Credit Cards, Cash Management

Services, Investment Products and Tax Advisory Services. A few banks have gone in to

market mutual fund schemes. Eventually the banks plan to market bonds and debentures,

when allowed. Insurance peddling by banks will be a reality soon. The recent policy of RBI


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announced on 27.4.2000 has further facilitated the entry of banks in this sector. Banks also

offer advisory services termed as private banking to high relationship value clients.

The bank of the future has to be essentially a marketing organization that also sells banking

products. New distribution channels are being used; more & more banks are outsourcing

services like disbursement and servicing of consumer loans, Credit card Business. Direct

Selling Agents (DSAs) of various banks go out and sell their products. They make house calls

to get the application form filled in properly and also take your passport sized photo. Home

banking has already become common, where you can order a draft or cash over phone/

internet and have it delivered home.ICICI bank was the first among the new private banks to

launch its net banking services, called Infinity. It allows the users to access account

information over a secure line, request cheque books and stop payment, and even transfer

funds between ICICI bank accounts. Citi bank has been offering net banking to its Suvidha

program to customers.

Products debit cards, fexi deposits, ATM cards, personal loans including consumer loans,

housing loans and vehicle loans have been introduced by a number of banks.

Corporates are also deriving benefit from the increased variety of products and competition

among the banks. Certificates of deposit, Commercial papers, Non-convertible

Debentures(NCDs) that can be traded in the secondary market are gaining popularity.

Recently, market has also seen major developments in treasury advisory services. With the

introduction of rupee floating rates for deposits as well as advances, products like interest rate

swap and forward rate agreements for foreign exchange, risk management products like

forward contract, option contract, currency swap are offered by almost every authorized

dealer bank in the market. The list is growing.

Public Sector Banks like SBI have also started focusing on this area. SBI plans to open 100

new branches called Personal Banking Branches (PBB) this year. The PBBs will also market

SBIs entire spectrum of loan products: hosing loans, car loans, personal loans, consumer

durable loans, education loans, loan against shares, financing against gold.


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1.Banking Products & Services:a.Retail banking A transactional account is a deposit account held at a bank or other financial

institution, for the purpose of securely and quickly providing frequent access to funds

on demand, through a variety of different channels.

Transactional accounts are meant neither for the purpose of earning interest nor for

the purpose of savings, but for convenience of the business or personal client; hence

they do not tend to bear interest. Instead, a customer can deposit or withdraw any

amount of money any number of times, subject to availability of funds.

Money market account

A money market account (MMA) or money market deposit account (MMDA) is a

financial account that pays interest based on current interest rates in the money

markets.

Money market accounts typically have a relatively high rate ofinterest and require a

higher minimum balance (anywhere from $1,000 to $10,000 to $25,000) to earn

interest or avoid monthly fees. The resulting investment strategy is therefore similar

to, and meant to compete with, a money market fund offered by a brokerage. The two

account types are otherwise unrelated.

Individual retirement account (IRA)

An Individual Retirement Arrangement (IRA) is a form ofretirement plan that

provides tax advantages for retirement savings in the United States. The term

encompasses an individual retirement account; a trust or custodial account set up for

the exclusive benefit of taxpayers or their beneficiaries; and an individual retirement

annuity, by which the taxpayers purchase an annuity contract or an endowment

contract from a life insurance company.

Credit card
http://en.wikipedia.org/wiki/Money_markethttp://en.wikipedia.org/wiki/Money_markethttp://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Money_market_fundhttp://en.wikipedia.org/wiki/Brokeragehttp://en.wikipedia.org/wiki/Retirement_planhttp://en.wikipedia.org/wiki/Tax_advantagehttp://en.wikipedia.org/wiki/Retirementhttp://en.wikipedia.org/wiki/Annuity_%28US_financial_products%29http://en.wikipedia.org/wiki/Annuity_%28US_financial_products%29http://en.wikipedia.org/wiki/Retirementhttp://en.wikipedia.org/wiki/Tax_advantagehttp://en.wikipedia.org/wiki/Retirement_planhttp://en.wikipedia.org/wiki/Brokeragehttp://en.wikipedia.org/wiki/Money_market_fundhttp://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Money_markethttp://en.wikipedia.org/wiki/Money_market


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A credit card is a payment card issued to users as a system ofpayment. It allows the

cardholder to pay for goods and services based on the holder's promise to pay for

them.The issuer of the card creates a revolving account and grants a line of credit to

the consumer (or the user) from which the user can borrow money for payment to a

merchant or as a cash advance to the user.

Debit card

A debit card (also known as a bank card or check card) is a plastic card that

provides the cardholder electronic access to his or her bank account(s) at a financial

institution. Some cards have a stored value with which a payment is made, while most

relay a message to the cardholder's bank to withdraw funds from a designated account

in favor of the payee's designated bank account. The card can be used as an

alternative payment method to cash when making purchases.

Unlike credit and charge cards, payments using a debit card are immediately

transferred from the cardholder's designated bank account, instead of them paying the

money back at a later date.

Debit cards usually also allow for instant withdrawal of cash, acting as the ATM card

for withdrawing cash. Merchants may also offer cash backfacilities to customers,

where a customer can withdraw cash along with their purchase.

MortgageA mortgage loan is a loan secured by real property through the use of a mortgage

note which evidences the existence of the loan and the encumbrance of that realty

through the granting of a mortgage which secures the loan. However, the word

mortgage alone, in everyday usage, is most often used to mean mortgage loan.
http://en.wikipedia.org/wiki/Payment_cardhttp://en.wikipedia.org/wiki/Paymenthttp://en.wikipedia.org/wiki/Revolving_accounthttp://en.wikipedia.org/wiki/Line_of_credithttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Merchanthttp://en.wikipedia.org/wiki/Cash_advancehttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Plastichttp://en.wikipedia.org/wiki/Stored-value_cardhttp://en.wikipedia.org/wiki/Cashhttp://en.wikipedia.org/wiki/ATM_cardhttp://en.wikipedia.org/wiki/Debit_card_cashbackhttp://en.wikipedia.org/wiki/Mortgagehttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Collateral_%28finance%29http://en.wikipedia.org/wiki/Mortgage_notehttp://en.wikipedia.org/wiki/Mortgage_notehttp://en.wikipedia.org/wiki/Encumbrancehttp://en.wikipedia.org/wiki/Mortgage_lawhttp://en.wikipedia.org/wiki/Security_interesthttp://en.wikipedia.org/wiki/Security_interesthttp://en.wikipedia.org/wiki/Mortgage_lawhttp://en.wikipedia.org/wiki/Encumbrancehttp://en.wikipedia.org/wiki/Mortgage_notehttp://en.wikipedia.org/wiki/Mortgage_notehttp://en.wikipedia.org/wiki/Collateral_%28finance%29http://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Mortgagehttp://en.wikipedia.org/wiki/Debit_card_cashbackhttp://en.wikipedia.org/wiki/ATM_cardhttp://en.wikipedia.org/wiki/Cashhttp://en.wikipedia.org/wiki/Stored-value_cardhttp://en.wikipedia.org/wiki/Plastichttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Cash_advancehttp://en.wikipedia.org/wiki/Merchanthttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Line_of_credithttp://en.wikipedia.org/wiki/Revolving_accounthttp://en.wikipedia.org/wiki/Paymenthttp://en.wikipedia.org/wiki/Payment_card


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Home equity loanA home equity loan is a type ofloan in which the borrower uses the equity in their

home as collateral. Home equity loans are often used to finance major expenses such

as home repairs, medical bills or college education. A home equity loan creates a lien

against the borrower's house, and reduces actual home equity.

Mutual fundA mutual fund is a type of professionally managed collective investment scheme that

pools money from many investors to purchase securities. While there is no legal

definition of mutual fund, the term is most commonly applied only to those collective

investment schemes that are regulated, available to the general public and open-ended

in nature. Hedge funds are not considered a type of mutual fund.

Personal loanIn finance,unsecured debt refers to any type ofdebt or general obligation that is not

collateralized by a lien on specific assets of the borrower in the case of a bankruptcy

or liquidation or failure to meet the terms for repayment.

Time depositsA time deposit (also known as a certificate of deposit in the United States, a term

deposit, particularly in Canada, Australia and New Zealand; a bond in the United

Kingdom; Fixed Deposits in India and in some other countries) is a money deposit at

a banking institution that cannot be withdrawn for a certain "term" or period of time

(unless a penalty is paid). When the term is over it can be withdrawn or it can be held

for another term. Generally speaking, the longer the term the better the yield on the

money. In its strict sense, certificate deposit is different from that of time deposit in

terms of its negotiability. CD is negotiable and can be rediscounted when the holder

needs some liquidity, while time deposit must be kept until maturity.
http://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Home_equityhttp://en.wikipedia.org/wiki/Homehttp://en.wikipedia.org/wiki/Collateral_%28finance%29http://en.wikipedia.org/wiki/Lienhttp://en.wikipedia.org/wiki/Collective_investment_schemehttp://en.wikipedia.org/wiki/Security_%28finance%29http://en.wikipedia.org/wiki/Hedge_fundshttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Lienhttp://en.wikipedia.org/wiki/Bankruptcyhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Guaranteed_Investment_Certificatehttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Fixed_Depositshttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Banking_institutionhttp://en.wikipedia.org/wiki/Banking_institutionhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Fixed_Depositshttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Guaranteed_Investment_Certificatehttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Bankruptcyhttp://en.wikipedia.org/wiki/Lienhttp://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Hedge_fundshttp://en.wikipedia.org/wiki/Security_%28finance%29http://en.wikipedia.org/wiki/Collective_investment_schemehttp://en.wikipedia.org/wiki/Lienhttp://en.wikipedia.org/wiki/Collateral_%28finance%29http://en.wikipedia.org/wiki/Homehttp://en.wikipedia.org/wiki/Home_equityhttp://en.wikipedia.org/wiki/Loan


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ATM cardAn ATM card (also known as a bank card, client card, key card, or cash card) is a

card issued by a financial institution, such as a bank, credit union, or building society,

that can be used in an Automated Teller Machine (ATM) for transactions such as:

deposits, withdrawals, obtaining account information, and other types of transactions,

often through interbank networks.

Business (or commercial/investment) banking

Business loanA loan is a type ofdebt. Like all debt instruments, a loan entails the redistribution of

financial assets over time, between the lender and the borrower.

In a loan, the borrower initially receives or borrows an amount ofmoney, called the

principal, from the lender, and is obligated to pay backor repay an equal amount of

money to the lender at a later time. Typically, the money is paid back in regular

installments, or partial repayments; in an annuity, each installment is the same

amount.

The loan is generally provided at a cost, referred to as interest on the debt, which

provides an incentive for the lender to engage in the loan. In a legal loan, each of

these obligations and restrictions is enforced by contract, which can also place the

borrower under additional restrictions known as loan covenants. Although this article

focuses on monetary loans, in practice any material object might be lent.

Acting as a provider of loans is one of the principal tasks for financial institutions. For

other institutions, issuing ofdebt contracts such as bonds is a typical source of

funding.
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Capital raising (Equity/Debt/Hybrids)Raising funds can be done in many ways but without the help of bank it is not

possible. Tere are many formalities and transections which are to be done by the

banks.

Mezzanine finance

Mezzanine capital, in finance, refers to a subordinated debt or preferred equity

instrument that represents a claim on a company's assets which is senior only to that

of the common shares. Mezzanine financings can be structured either as debt

(typically an unsecured and subordinated note) or preferred stock.

Project finance

Project finance is the long term financing ofinfrastructure and industrial projects

based upon the projected cash flows of the project rather than the balance sheets of the

project sponsors. Usually, a project financing structure involves a number ofequity

investors, known as sponsors, as well as a syndicate ofbanks or other lending

institutions that provide loans to the operation. The loans are most commonlynon-

recourse loans, which are secured by the project assets and paid entirely from project

cash flow, rather than from the general assets or creditworthiness of the project

sponsors, a decision in part supported by financial modeling.

Revolving credit

Revolving credit is a type ofcredit that does not have a fixed number of payments, in

contrast to installment credit. Examples of revolving credits used by consumers

include credit cards. Corporate revolving credit facilities are typically used to provide

liquidity for a company's day-to-day operations. They were first introduced by the

Strawbridge and Clothier Department Store.
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Risk management (FX, interest rates, commodities, derivatives)

Risk management is the identification, assessment, and prioritization ofrisks

(defined in ISO 31000 as the effect of uncertainty on objectives, whether positive or

negative) followed by coordinated and economical application of resources to

minimize, monitor, and control the probability and/or impact of unfortunate events or

to maximize the realization of opportunities. Risks can come from uncertainty in

financial markets, project failures (at any phase in design, development, production,

or sustainment life-cycles), legal liabilities, credit risk, accidents, natural causes and

disasters as well as deliberate attack from an adversary, or events of uncertain or

unpredictable root-cause.

Term loan

A term loan is a monetary loan that is repaid in regular payments over a set period of

time. Term loans usually last between one and ten years, but may last as long as 30

years in some cases. A term loan usually involves an unfixed interest rate that will add

additional balance to be repaid.

Latest banking products:

o ICICI Bank has launched `Global Indian Credit Card' for NRIs.It is an international credit card denominated in Indian rupees and will cater

to NRIs visiting India. It can be issued in both India and overseas. The card is available

in two variants Silver with maximum credit limit of Rs 1,00,000 and Gold with

maximum credit limit of Rs 3,00,000. The cards also provide insurance, which

includes household insurance, baggage insurance and hospitalisation benefits for

both primary and add-on cards up to Rs 20 lakh. The card will be accepted at 22

million merchant establishments and the re-payment for purchases can be made

through an automatic debit of the customer's savings account.
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o Bank of Rajasthan (BoR) has launched international credit card operations inDecember 2005.

Bank has joined hands with Visa International to facilitate real-time

transaction through Visa gateway. Bank of Rajasthan will offer three types of

international credit cards - Silver Card, Gold Card and Platinum card. Their features

include hospitalisation expenses covered up to Rs 50,000, baggage insurance

expenses up to Rs 30,000, purchase protection up to Rs 40,000 and 30 per cent credit

limit against cash advance. It has also tied up with Electra Card Services (ECS) to

provide complete back-end support for the banks credit card business.

o SBI Card in March 2005 launched a credit card, SBI Social Card, the firstAffinity card in the country to feature four non-governmental organizations (NGOs).

The social card allows the cardholder to donate to the NGOs every time they use it.

The card will earn the customers double reward points. While one half will go to the

NGOs. Moreover, customers also have the option to issue standing instructions for a

fixed amount to be donated to any of the NGOs.

o National Securities Depository Ltd (NSDL) and IDBI Bank has launchedcountrys first online direct tax payment facility. This facility will enable individuals

as well as corporate tax payers, to make payments for income tax, corporation tax, gift

tax, tax deducted at source (TDS) etc. over internet. The details entered by the assesse

would be validated by NSDL and control would be passed to IDBI bank through a

secure payment gateway. The bank will debit the customer account after

authentication and completes the payment of tax to the government as an agency bank

for which it will be paid a service charge.


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Banking technology:

The IT revolution had a great impact in the Indian banking system. The use of computers had

led to introduction of online banking in India. The use of the modern innovation and

computerisation of the banking sector of India has increased many fold after the economic

liberalisation of 1991 as the country's banking sector has been exposed to the world's market.

The Indian banks were finding it difficult to compete with the international banks in terms of

the customer service without the use of the information technology and computers.

Number of branches of scheduled banks of India as of March 2005

The RBI in 1984 formed Committee on Mechanisation in the Banking Industry whose

chairman was Dr C Rangarajan, Deputy Governor, Reserve Bank of India. The major

recommendations of this committee was introducing MICR,Technology in all the banks in

the metropolis in India.This provided use of standardized cheque forms and encoders.

In 1988, the RBI set up Committee on Computerisation in Banks headed by Dr. C.R.

Rangarajan which emphasized that settlement operation must be computerized in the clearing

houses of RBI in Bhubaneshwar, Guwahati, Jaipur, Patna and Thiruvananthapuram.It further

stated that there should be National Clearing of inter-city cheques at

Kolkata,Mumbai,Delhi,Chennai and MICR should be made Operational.It also focused on

computerisation of branches and increasing connectivity among branches through

computers.It also suggested modalities for implementing on-line banking.The committee

submitted its reports in 1989 and computerisation began form 1993 with the settlement

between IBA and bank employees' association.

In 1994, Committee on Technology Issues relating to Payments System, Cheque Clearing andSecurities Settlement in the Banking Industry was set up with chairman Shri WS Saraf,
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Executive Director, Reserve Bank of India. It emphasized on Electronic Funds Transfer

(EFT) system, with the BANKNET communications network as its carrier. It also said that

MICR clearing should be set up in all branches of all banks with more than 100 branches.

Committee for proposing Legislation On Electronic Funds Transfer and other Electronic

Payments emphasized on EFT system. Electronic banking refers to DOING BANKING by

using technologies like computers, internet and networking,MICR,EFT so as to increase

efficiency, quick service,productivity and transparency in the transaction.

Number of ATMs of different Scheduled Commercial Banks Of India as on end March 2005

Apart from the above mentioned innovations the banks have been selling the third party

products like Mutual Funds, insurances to its clients.Total numbers of ATMs installed in

India by various banks as on end March 2005 is 17,642. The New Private Sector Banks in

India is having the largest numbers of ATMs which is fol off site ATM is highest for the SBI

and its subsidiaries and then it is followed by New Private Banks, Nationalised banks and

Foreign banks. While on site is highest for the Nationalised banks of India.
http://en.wikipedia.org/wiki/File:NUMBER_OF_ATM.pnghttp://en.wikipedia.org/wiki/File:NUMBER_OF_ATM.pnghttp://en.wikipedia.org/wiki/File:NUMBER_OF_ATM.pnghttp://en.wikipedia.org/wiki/File:NUMBER_OF_ATM.png


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BANK GROUPNUMBER OF

BRANCHES

ON SITE

ATM

OFF SITE

ATM

TOTAL

ATM

NATIONALISED BANKS 33627 3205 1567 4772

STATE BANK OF INDIA 13661 1548 3672 5220

OLD PRIVATE SECTOR

BANKS4511 800 441 1241

NEW PRIVATE SECTOR

BANKS1685 1883 3729 5612

FOREIGN BANKS 242 218 579 797

Banking Software

The Software Packages for Banking Applications in India had their beginnings in the middle

of 80s, when the Banks. spurred on by RBI and the Rangarajan Committee Report, started

computerising the branches in a limited manner. The approach was to empanel a few

hardware vendors who will also develop the software as per Bank's specifications and also

help to install at the branches. This was a multi-vendor approach to foster competition and to

assess the relative vendor capabilities. These packages were written usually in fox-pro or C

and were dos-based - and rarely Unix-based.

The early 90s saw the plummeting hardware prices and advent of cheap and inexpensive but

high-powered PCs and servers and Banks went in for what was called Total Branch

Automation (TBA) Packages. Architecturally, some were centralised solutions with a

powerful central server maintaining the database, with multiple terminals; others went in for

distributed processing with multiple PCs as nodes linked on a LAN. The Platforms used

ranged from simple UNIX-C to powerful RDBMS like Oracle etc.


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The middle and late 90s witnessed the tornado of financial reforms, deregulation,

globalisation etc coupled with rapid revolution in communication technologies and evolution

of novel concept of 'convergence' of computer and communication technologies, like Internet,

mobile / cell phones etc. The arrival of foreign and private banks with their superior state-of-

the-art technology-based services pushed Indian Banks also to follow suit by going in for the

latest technologies so as to meet the threat of competition and retain customer base. This also

brought in revolutionary products and services to which, we are proud to say, the Indian

Software Industry has significantly contributed.

Present level of Computerisation

Based on the norms worked out by Rangarajan Committee (II), 7827 branches

of the Public Sector banks were identified for full branch computerisation upto

March 2000 of which around 4620 were computerised as on March 99.

Meanwhile, the networking of the already-computerised branches also assumed

urgency and some of the Banks have started inter-connecting their computerised

branches using leased telephone lines or Very Small Aperture Terminals

(VSATS). This is meant to provide a more comprehensive service to customers

and at the same time give banks better centralised control over the branch

operations. As of now, New Private Sector and Foreign Banks have an edge

over Public Sector Banks as far as implementation of technological solutions is

concerned. However, the latter are in the process of making huge investments

in technology.

The Financial Reforms that were initiated in the early 90s and the globalisation

and liberalisation measures brought in a completely new operating environment

to the Banks that were till then operating in a highly protected milieu. The

arrival of foreign Banks and Financial Institutions, the setting up of a number of

private banks and the measures of de-regulation that encouraged competition

has led to a situation where the survival of those who do not join the race will

become difficult. Unless the state-of- the-art IT was introduced as early as


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possible, winning new business and even holding on to the old one will become

increasingly difficult. Services and products like "Anywhere Banking" "Tele-

Banking" "Internet banking" "Web Banking" , e-banking, e-commerce, e-

business etc. have become the buzzwords of the day and the Banks are trying to

cope with the competition by offering innovative and attractively packaged

technology-based services to their customers.

Simultaneously, the importance of effective MIS for control of operations and

of maintaining customer and business/industry data bases for strategic planning

has also surfaced; while Banks are looking at Data warehousing, Data mining,

Business Restructuring etc. as most essential things to have as early as possible,

they are taking urgent steps to computerise the operations in their administrative

and controlling offices (viz. head /zonal/regional offices) as well as the data

collection machinery, so as to evolve an effective MIS. In this phase, the new

communication revolution sweeping the nation and the world has come in

extremely handy, as the communication infrastructure has improved

significantly and the Internet technologies are available to network branches at a

relatively low and affordable cost with a high degree of reliability.

The present level of MIS covers, basically, information needed for control,

performance monitoring, decision making etc. and encompasses most activities

in administrative offices like processing of statutory returns under Reserve

Bank of India Act, monthly/quarterly performance reports from branches, credit

information/BSR, inter-branch transactions, personnel inventory, provident fund

accounting, profit and loss accounts, cash and investment management,

stationery stock accounting, and branch house keeping etc.


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Computerisation in Public Sector Banks (As on March 31, 2006)

i) Branches already Fully Computerised # 48.5%

ii) Branches Under Core Banking Solutions 28.9%

iii) Fully Computerised Branches (i+ii) 77.5%

iv) Partially Computerised Branches 18.2%

v) Non Computerised Branches 4.3%

#: Other than branches under Core Banking Solutions.

(Source- Reserve Bank of India)

Categories of Packages

The IT Packages and services available in India can be broadly classified into

the following 6 types:

(I) Stand-alone branch-level packages-

These are usually written in FoxPro, C or Dbase and handle specific functions

at branches; these are sometimes networked on a LAN to simulate a TBA

environment. But there are also high-end packages with a central Server (which

can be a Pentium PC or NT or a MINI or even a Main Frame, supported by

multiple (dumb or intelligent) terminals. Some of them use sophisticated

RDBMS like ORACLE as back-end and provide user-friendly front-end with

Windows GUI.

(ii) Multi-branch solutions -

These are used to network a cluster of branches in a city (or spread over several

cities); the account maintenance can be central (where facilities like Anywhere

Banking are required) or can be distributed, networking being achieved through


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Wide Area Network (WAN) on terrestrial lines / high speed lines/ satellite

networks - and now even wireless.

(iii) Foreign Packages -

Examples are Bank Master, Kappiti, Sanchez etc. These need to be extensively

customised to suit Indian requirements - but their strength lie in their proven

capabilities in developing and offering modern / global banking products /

services that India is just ushering in.

(iv) Packages for specialized niche areas -

Like Asset Liability Management (ALM), Treasury Management, Trading /

Dealing Room activities, Custodial Services/ Depository Participant etc. These

are high-end packages with sophisticated analytical and decision tools.

(v) Service Branch / high-volume transaction processing packages -

These include, clearing, drafts issue/ payments / reconciliation (Remittances),

Bills (payments/ collection/ purchases), Dividend Warrant Processing, inter-

branch reconciliation etc. These are often developed and implemented by

service providers to whom the work is outsourced.

(vi) IT Services -

These are not Packages in the sense, these are developed to handle specific

problems like disaster recovery, virus protection, security handling, linking /

networking multiple legacy systems between themselves or to new platforms or

to new delivery channels like ATMs, etc.


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o NEFTIntroduction

Reserve Bank of India has introduced an electronic funds transfer system called

"National Electronic Funds Transfer System (hereinafterreferred to as "NEFT System"

or "NEFT" or System, as appropriate). A set of procedures to be followed by various

stakeholders to the system are detailed in this document.

Objective

The objective of the NEFT System is to establish an electronic funds transfer system to

facilitate an efficient, secure, economical, reliable and expeditious system of fundstransfer and clearing in the banking sector throughout India, and to relieve the stress on

the existing paper based funds transfer and clearing system.

o SWIFT

The Society for Worldwide Interbank Financial Telecommunication (SWIFT)

provides a network that enables financial institutions worldwide to send and receive

information about financial transactions in a secure, standardized and reliable

environment. SWIFT also markets software and services to financial institutions, much

of it for use on the SWIFT Net Network, and ISO 9362 bank identifier codes (BICs) are

popularly known as "SWIFT codes".

The majority of international interbank messages use the SWIFT network. As of

September 2010, SWIFT linked more than 9,000 financial institutions in 209 countries

and territories, who were exchanging an average of over 15 million messages per day

(compared to an average of 2.4 million daily messages in 1995). SWIFT transports

financial messages in a highly secure way but does not hold accounts for its members

and does not perform any form ofclearing or settlement.
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SWIFT does not facilitate funds transfer; rather, it sends payment orders, which must be

settled by correspondent accounts that the institutions have with each other. Each

financial institution, to exchange banking transactions, must have a banking relationship

by either being a bank or affiliating itself with one (or more) so as to enjoy those

particular business features.

SWIFT is a cooperative society under Belgian law and it is owned by its member

financial institutions. It has offices around the world. SWIFT headquarters, designed by

Ricardo Bofill Taller de Arquitectura are in La Hulpe, Belgium, near Brussels.

o MICR

Magnetic Ink Character Recognition, or MICR, is a character recognition technology

used primarily by the banking industry to facilitate the processing of cheque and makes

up the routing number and account number at the bottom of a cheque. The technology

allows computers to read information (such as account numbers) off printed documents.

Unlike barcodes or similar technologies, however, MICR codes can be easily read by

humans.

MICR characters are printed in special typefaces with a magnetic ink or toner, usually

containing iron oxide. As a machine decodes the MICR text, it first magnetizes the

characters in the plane of the paper. Then the characters are passed over a MICR read

head, a device similar to the playback head of a tape recorder. As each character passes

over the head it produces a unique waveform that can be easily identified by the system.

MICR is standardized by ISO 1004:1995.
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VALUE ADDED SERVICES Provided by Banks in

India

1. CORE Banking: it is normally defined as the business conducted by bankinginstitution with its retail and small business customer. Many banks consider their

retails customers as Core customers.

Nowadays, most banks use their core banking application to support their operationswhere CORE stands for Centralized Online Real Time Environment. This basically

means that all the bank branches have access applications from centralized datacenters. This means that the deposits made are reflected immediately on the banks

server and the customer can withdraw deposited money from any of the banksbranches throughout the world. These applications now also have the capability to

address the needs of corporate customers, providing a comprehensive bankingsolution.

2. Net Banking: Net banking or Internet Banking or E-Banking, allows customers ofthe bank to conduct their financial transactions on a secured website by the Bank.

a. Non transactional tasks offered like:i. Checking account balances

ii. Checking recent transactionsiii. Downloading bank statementsiv. Images of paid cheques

b. Transact banking tasks like:i. Fund transfer between customers linked accounts

ii. Paying third parties, including bill payment and telegraphic and wiretransfers

iii. Investment purchase or saleiv. Loan application and transaction, such as repayments of enrollments.

c. Some banks also provide the facility of Account Aggregation to theircustomer, to allow them to monitor all their accounts at one place, be it their

main account or of any other institution.

3. Personal Banking: Personal Banking or Retail Banking in which a bankinginstitution that execute transactions directly with the customers, rather than

corporations or the other banks. Services offered include savings and transactional

accounts, mortgages, personal loans, debit cards and credit cards.


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4. Mobile Banking: Also known as M-Banking, is a term use for performing balancechecks, account transaction and other bank transaction through a mobile device such

as Mobile phone or Personal Digital Assistant.

a.

Services offered by mobile banking:i. Account information:1. Mini statements and checkingof account history2. Mutual funds/ equity statements3. Status on cheque/ stop payment on cheque4. PIN provision, change of PIN5. Blocking of Lost/Stolen cards, and many more

ii. Payments, Deposits, Withdrawals and Transfers1. Cash-in, Cash-out2. Mobile recharging3. Bill payment4. Withdrawal and Deposit at Banking Agent5. Commercial payment handling

iii. Investments:1. Real Time Stock Quotes2. Personalized alerts and notifications on security prices

iv. Support:1. ATM location2. Status of request for credit, including mortgage approval and

insurance coverage3. Check (Cheque) book and card request

5. Demat Account:Demat refers to a dematerialized account for an individualIndian citizen to trade in listed stocks or debentures in electronic form rather than

paper, as required by SEBI.

In Demat account, share and securities are held in electronic form.

Depository Participant is an institution holding a pool of pre-verified shares

held in electronic mode that offers efficient settlement of transactions. In order to

cater this demand of customers, banks have started providing Depository Service.

6. Other than the services mentioned above, there are various other services provided bythe banks:

a. Online mobile rechargeb. Booking movie tickets onlinec. Booking air tickets onlined. E-tax (online tax payment)e. Dining reservationf. Hotel reservation


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PART2Study of Three Banks

Nationalized Bank:

Private Bank:Foreign Bank:


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Nationalized Bank


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Private Bank

Axis Bank Limited is an Indian financial services firm that had begun operations in 1994,after the Government of India allowed new private banks to be established. The Bank was

promoted jointly by the Administrator of the Specified Undertaking of the Unit Trust of

India (UTI-I), Life Insurance Corporation of India (LIC), General Insurance Corporation

Ltd., National Insurance Company Ltd., The New India Assurance Company, The Oriental

Insurance Corporation and United India Insurance Company UTI-I holds a special position in

the Indian capital markets and has promoted many leading financial institutions in the

country. As on the year ended 31 March, 2012, Axis Bank had an operating revenue of13,

437 crores and a net profit of 4242 crores. Axis Bank (erstwhile UTI Bank) opened its

registered office in Ahmedabad and corporate office in Mumbai in December

The Bank's Registered Office is situated in Ahmedabad and its Central Office is located at

Mumbai. The Bank has an extensive network of more than 1600 branches (including 169

Service Branches/CPCs as on 31st March, 2012). The Bank has a network of over 10000

ATMs (as on 31st March, 2012) Axis Bank operates one of the worlds highest ATM sites at

Thegu, Sikkim (at a height of 13,200 feet above sea level) and has the largest ATM network

among private banks in India.

AXIS bank

Parent Company Axis Bank Limited

Category Banking

Sector Banking, Financial Services


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Tagline/ Slogan Aapka solution

USPOne of the largest private sector financer in Indian agriculture

STP

Segment People and Enterprises in need of banking and financial services

Target Group People from middle income group, HNIs, Corporates

Positioning Bank that is with you when you are in need

SWOT Analysis

Strength

1. The bank has a good image among urban population

2. The bank is registering a good growth

3. A huge portfolio of product and services

4. Decent penetration in the rural areas

5. One of the largest private sector financer in India for Agriculture loans wiz Retail

Agri & Corporate Agri

Weakness1. Lesser no. of branches compared to its competitors2. Image of the bank still under the shadow of the UTI debacle

Opportunity

1. Expansion in rural areas

2. Going to foreign markets and exploring the new economies

Threats

1. New banking licenses issued by the Reserve Bank Of India

2. Foreign banks

3. Competitors

Competition

Competitors

1. SBI

2. Punjab National Bank

3. ICICI


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Innovation at Axis

In the arena of innovative ePayment Products, Axis Bank had launched an Instant Money

Transfer product in September 2010. It is more than 2 year of its launch, and the transactions

via IMT seem to be on the increase.

These new cutting-edge e Payment options, aid in increasing the reach of the Banking

network to the unbanked and are a part of the Financial Inclusion drive.

RBI is clear that all path-breaking payment products have to designned around the Banking

channel only. At least one leg of the transaction has to be via the Bank Channel.

Keeping this in view, IMT is designed to benefit the Unbanked, but via the Banking channel.

In short, in IMT, the Sender has to have a bank account, whereas the Receiver need not have

a bank account.

The IMT funds receiver, if he/she does not have an account with Axis Bank, has to do an one

time registration of his/her mobile number with Axis Bank.

Once the registration is done, the IMT funds can be withdrawn via ATM on the cardless

mode.Yes, Cash from ATM can be withdrawn without the ATM card.

So, IMT is a double innovation i.e 01) Cash to the Unbanked 02) Withdraw Cash from ATM

without an ATM Card.

Retail and wholesale banking:

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

relationships 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


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UNIQUE SELLING PROPOSITION:

In building any sustainable business, the important thing is to look at adding value to

customers. Axis bank has managed to do the same by offering so many products and services

to its valued customers all over the country to the envy of other banks.

As a result it has grown aggressively by Preferring to leverage the bank's strengths rather than

foray into too many new areas.

Axis bank offers number of products and services to its client to following

are few

1. Personal BankingPersonal Banking offers:

2. Account Zero Balance Savings AccountA savings account that doesnt require a minimum

balance.

Krishi Savings AccountThis product has been specially designed for farmers andothers employed in the allied agricultural activities sector. It is easy to operate and

allows you to transact immediately.

Easy Access Savings AccountInstant access to your money anywhere, anytime. Prime Savings AccountAccess to a wide network of over 1281 branches and one

of the largest ATM networks.

Corporate Salary AccountIt is is designed to offer payroll solutions through in a24 X 7 environment.

Womens Savings AccountManage your money, your life, and instant access toyour money anywhere, anytime.

Demat AccountAvail the depository-related services by just opening an accountwith NSDL through Axis Bank.

Senior Citizens AccountIt is designed by keeping an eye on Senior citizensbanking requirements which is totally different and require special consideration.

Defence salary AccountAbsolutely free and no minimum balance is required.Specially designed for defence forces.

Trust/NGO Savings AccountIt is a complete banking solution for Trusts,Associations, Societies, Government Bodies, Section 25 companies and NGOs.


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Resident Foreign Currency (Domestic) RFC(D) AccountTheres no need towonder how to keep your foreign currency safe, fluctuations in forex market, or if you

regularly issue cheques and drafts for payments abroad.

AzzadiNo FrillsExperience a host of unparalleled features and heightenedconvenience.

Pension Savings AccountSpecially designed for Pensioners (Existing &Prospective) of Central Govt.

3. Deposits Fixed Deposits Recurring Deposits Encash 24 Tax Saver Fixed Deposit

4. Loans Home Loan Car Loan Personal Loan Loan Against Shares Loan Against Property Loan Against Security Study Loan Consumer Loan

5. Cards Credit Cards Debit Cards Prepaid Cards

6. Investments Mohur Gold

Online Trading


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Mutual Funds Demat Account A Smile Solution Kal Bhi, Aaj Bhi

7. Insurance Life Insurance1) Life Insurance Products 2) 5 For Life Health Insurance1) Family Health 2) Silver Health Motor Insurance Jewellery Insurance Personal AccidentSafe Guard Home1) Safe Home 2) Safe Home Plus Travel Companion Critical Illness Business advantage

8.

Payments

Bill Pay Electronic Clearing Service Tax Payments1) Tax e-Payments 2) Direct Tax Payments 3) Pension Disbursement

9. Other Services Mobile Refill Locker Online Shopping IPOSmart E-Statement

10.Corporate Banking Accounts Normal Current AccountAt Monthly Average Balance (MAB) of Rs. 10,000, you

can have an optimum value for your money.


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Business Advantage AccountIt comes with a host of privileges while requiring youto maintain Rs. 25,000 as Monthly Average Balance.

Business Select AccountMonthly Average Balance requirement shall be Rs 50,000. Business Classic AccountA Monthly Average Balance of Rs 1 lac. Business Privilege AccountMaintain Rs 5 lacs monthly average balance to opt for

the great facilities.

Channel One AccountMinimum Monthly Average Balance requirement of Rs. 10lacs (Rs. 5 lacs at SemiUrban / Rural branches).

Current Account for Govt. OrganizationsNo Minimum Balance Stipulation andhost of other services without any charges.

Current Account for BanksSpecial relationship with over 1000 Co-operativeBanks/Private Sector Banks/MNC Banks/Public Sector Banks across the country.

Current Account for Builders & Real EstateMonthly average balance of Rs. 5 lacs. Capital Market Current AccountIt comes with wider choice of variants for brokers. Krishi Current AccountThe product with half yearly average balance requirements. Business Global Current AccountIt satisfies the need of Exporters / Importers for

both domestic & foreign transactions.

Club 50 Current AccountHalf yearly average balance of Rs. 50 lacs (Rs. 25 lacs atSemiUrban / Rural branches).

Shipping and Maritime current accountSpecially designed and customized to meetthe banking requirements of the Shipping and Maritime industry.

Inland Road Transport Current AccountSpecially designed and customized to meetthe banking requirements of the inland road transport industry.

Travel, Tourism, and Hospitality Current AccountExclusively designed andcustomized to meet the banking requirements of players in travel, tourism &

hospitality industry.

Local Current AccountTo fulfill all kinds of local business requirements. Current Account for PharmaA banking product for: Retail Chemists, C & F agent,

Wholesalers, Stockists / Retailers in the, Pharma segment, and Pharmacists.

Cash Management Current AccountGet double benefit of a current account andcash management service clubbed into one.


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Current Account for Chartered AccountantsIt is exclusively designed to fulfill theneeds of Chartered Accountants.

11.CreditLarge Corporates

Working Capital Finance Term Loans Trade Services Structured Finance Supply Chain Management Overseas Transactions

12.Agri Business Kisan Power Powertrac Commodity Power Contract Farming Arthia Power

13.SME Standard14.SME Fast Track15.Microfinance16.Capital Market

Debt Solutions Equity Solutions Private Equity, Mergers & Acquisitions Advisory Services Trusteeship Services Depository Services eDepository Services


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Capital Market Funding Custodial Services e-Broking

17.Govt. Business Authorisation Direct Tax Payment Indirect Tax Payment State Tax Payment Pension Disbursement Other Services e-Payments e-Governance Tie-ups Online Tax Payment New Pension System (NPS)

18.Cash Management Services

Payment Solutions Collection Solutions

19.Treasury Forex International Business Money Market Constituent SGL Facilities Retailing of Government Securities

Foreign Bank


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Standard Chartered PLC is a British multinational banking and financial services company

headquartered in London, United Kingdom. It operates a network of over 1,700 branches and

outlets (including subsidiaries, associates and joint ventures) across more than 70 countries

and employs around 87,000 people. It is a universal bankwith operations in consumer,

corporate and institutional banking, and treasury services. Despite its UK base around 90% of

its profits come from Africa, Asia and the Middle East.

Standard Chartered has a primary listing on the London Stock Exchange and is a constituent

of the FTSE 100 Index. It had a market capitalization of approximately 33 billion as of 23

December 2011, the 13th-largest of any company with a primary listing on the London Stock

Exchange. It has secondary listings on the Hong Kong Stock Exchange and the National

Stock Exchange of India. Its largest shareholder is the Government of Singapore-owned

Temasek Holdings.

The name Standard Chartered comes from the names of the two banks from which it was

formed by merger in 1969The Chartered Bank of India, Australia and China, and StandardBank of British South Africa.

Chartered Bank

The Chartered Bank was founded by James Wilson following the grant of a Royal Charter by

Queen Victoria in 1853.

Chartered opened its first branches in Mumbai, Kolkata and Shanghai in 1858, followed byHong Kong and Singapore in 1859.The Bank started issuing banknotes of the Hong Kong

dollar in 1862. With the opening of the Suez Canal in 1869 and the extension of the telegraph

to China in 1871, Chartered was well placed to expand and develop its business.

Standard Bank
http://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Universal_bankhttp://en.wikipedia.org/wiki/Africahttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://en.wikipedia.org/wiki/FTSE_100_Indexhttp://en.wikipedia.org/wiki/Market_capitalisationhttp://en.wikipedia.org/wiki/Hong_Kong_Stock_Exchangehttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Singaporehttp://en.wikipedia.org/wiki/Temasek_Holdingshttp://en.wikipedia.org/wiki/Chartered_Bank_of_India,_Australia_and_Chinahttp://en.wikipedia.org/wiki/Standard_Bank_(historic)http://en.wikipedia.org/wiki/Standard_Bank_(historic)http://en.wikipedia.org/wiki/Standard_Bank_(historic)http://en.wikipedia.org/wiki/James_Wilson_(UK_politician)http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/James_Wilson_(UK_politician)http://en.wikipedia.org/wiki/Standard_Bank_(historic)http://en.wikipedia.org/wiki/Standard_Bank_(historic)http://en.wikipedia.org/wiki/Chartered_Bank_of_India,_Australia_and_Chinahttp://en.wikipedia.org/wiki/Temasek_Holdingshttp://en.wikipedia.org/wiki/Government_of_Singaporehttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/Hong_Kong_Stock_Exchangehttp://en.wikipedia.org/wiki/Market_capitalisationhttp://en.wikipedia.org/wiki/FTSE_100_Indexhttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Africahttp://en.wikipedia.org/wiki/Universal_bankhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/London


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The Standard Bank was a British bank founded in the Cape Province of South Africa in 1862

by another Scotsman, John Paterson. Having established a considerable number of branches,

Standard was prominent in financing the development of the diamond fields of Kimberley

from 1867 and later extended its network further north to the new town of Johannesburg

when gold was discovered there in 1885.Half the output of the second largest gold field in theworld passed through The Standard Bank on its way to London.

Standard expanded widely in Africa over the years, but from 1883 to 1962 was formally

known as the Standard Bank of South Africa. In 1962 the bank changed its name to Standard

Bank Limited, and the South African operations were formed into a separate subsidiary,

which took the parent bank's previous name, Standard Bank of South Africa Ltd.

Innovation: Standard Chartered Breeze

Standard Chartered Breeze is a mobile banking application for the iPhone & iPad that can

also be used on the computer. It is largely similar to the online banking services offered by

other banks, with the exception of its function to issue electronic bank cheques. Launched in

summer 2010 and aggressively marketed, the reviews have been generally positive. In

addition, it has attracted an uncommon amount of attention due to many innovative marketing

strategies it used to promote its product, mostly focusing on social media. Standard Chartered

Breeze organized a blogger's meet for bloggers to preview Breeze, and its Twitter campaign

to give away a free iPad was extremely successful. To date, Standard Chartered Breeze's

twitter page has more than three times the followers than their closest competitor.

Breeze is currently only available in parts of Asia, primarily Singapore.

Standard Chartered breaks new ground with Breeze Banking

FIRST IN INDIA TO OFFER PERSONALISED AND SOCIAL

MEDIA INTEGRATED BANKING SERVICES

Mumbai, 14 November 2011: Standard Chartered Bank today unveiled Breeze Banking for

Indiabecoming the first international bank to introduce a suite of customizable banking

services incorporating internet, smartphone technology and social media.

Breeze Banking addresses the financial needs of Indias growing segment of tech-savvy,

globally- connected urban tribe who value convenience, personalized services and transaction

freedom.

Breeze Banking enables Standard Chartered customers to co-

create their banking experience:
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Personal card designan online design tool allows customers to create aunique credit or debit card with their own pictures, or from a gallery ofthemed images.

Rewards personalizationcustomers can customize their rewardsprogram by selecting the spend categories relevant to their lifestyles andearn points faster.

Instant access to a Virtual BankerInternet banking customers can chatonline in real time with a Virtual Banker who can provide solutions totheir financial needs.

Savings Wish listour customers can set savings targets and share theirwishes, progress and achievements via their Facebook pages.

Lifestyle offers with mCompassa free smartphone application withlocation-based

Technology and social media integration allows our customers receive and share with

their friends special deals and promotions while they are on the go.

A savings account with a debit card and a MasterCard Titanium credit card completes the

Breeze Banking suite of services.

Breeze Banking is a tangible example of Standard Chartereds leadership in service

innovation by providing an outstanding customer experience through the innovative use of

Internet, smartphone and social media technologies, Mr. Chaudhuri added.

According to Vicky Bindra, Regional President, Asia/Pacific, Middle East & Africa,

MasterCard Worldwide, MasterCard is committed to the development of innovative

payment solutions that address the needs of the next generation of customers both globally

and locally. We are pleased to collaborate with Standard Chartered to cater to this rapidly

evolving consumer segment. Our offerings for the next generation customer include exclusive

benefits in categories like travel, movies and dining, in order to provide priceless experiences

to complement their lifestyles. Visit breezebanking.standardchartered.co.in today and

experience the world of Breeze Banking!


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Standard Chartered Bank in India

Standard Chartered Bank is Indias largest international bank with 94 branches in 37 cities, a

combined customer base of around 2 million retail customers and more than 2,000 corporate

and institutional relationships. Key businesses comprise Consumer Banking, including

deposits, loans, wealth management, private banking and SME banking; and Wholesale

Banking, which includes cash transaction banking, treasury, corporate finance and custody

services.

UNIQUE SELLING PROPOSITION:

Demonstrate Tangible Benefits

STANDARD CHARTERED BANK'S Priority Banking needed a way to demonstrate the

Unique Selling Proposition (USP) of its Standard Chartered Visa Infinite credit card

namely that card-holders were rewarded based directly on investments held with the bank

in a tangible, real-world way.To this end, we came up with the Standard Chartered Visa Infinite Rewards Calculator

application. Used in conjunction with other materials at the launch of the prestigious credit

card, our Rewards Calculator application allowed Standard Chartered's customers to see how

their various investments with the bank could directly translate into air miles and shoppingvoucher rewards.We placed special emphasis on ensuring that the Rewards Calculator fit in seamlessly with

Priority Banking's image of sophisticated elegance while still being intuitive and user-

friendly, so that the entire user experience was fluid and pleasant.

Their Results: Product Value Showcased

THE STANDARD CHARTERED Visa Infinite Rewards Calculator proved such a success

at showcasing the card's tangible benefits that the scope of the project was widened to cover a

web version, as well as the original offline application.


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Services offered by Standard Chartered Bank

oPersonal Banking Savings and Accounts Loans Mortgages Credit cards Insurance Investments Employee banking

o Preferred bankingo Priority Banking

Priority service Priority solutions Priority benefits International banking services

o Private Banking Online services The Journey Reports and commentaries

o SME Banking Working capital Business protection Yield enhancement Business expansion

o Wholesale Banking Transaction Banking


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Financial Markets Principal Finance Corporate Finance

o Islamic Banking

Standard Chartered Banks Approach

Through sustainable finance, improving access to finance and empowering our communities, we

create more value than the profits we make.

Our priorities

Its about getting the basics of banking right, upholding high standards of corporate governance,

social responsibility and environmental protection.


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Documents

101MFS Final Report