Agile Case(MIST2016)

7/25/2019 Agile Case(MIST2016)

http://slidepdf.com/reader/full/agile-casemist2016 1/24

Case Study:

Software development strategy for launching a

Banking product1

Prologue

Anu Kapoor, VP, i-banking platform at Firm-G, a leading Indian bank has just

received a note from the !"#s o$ce%

&he note 'as brief and crisp(

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)ear Anu,

As *ou ma* be a'are, 'e are planning to launch our ne+t generation Portfolio isk

.anager/% &his product is targeted at our top 012 retail banking clients 'ho

cumulativel* have a share of 312 of our asset under management 4retail5%

6uccessful launch of this product is critical to the business strateg* of the bank%

A steering committee has been formed to oversee the design and launch of the

product% &he steering committee 'ill comprise of the hief !+ecutive "$cer, hief

Information "$cer, VP 7 ore 8anking, VP 7 orporate 8anking, 6VP 7 Private

8anking, and VP - Product esearch%

ould *ou please present the steering committee 'ith *our recommendation on theI& development strateg* for the product design and implementation9 &he ne+t

steering committee meeting is scheduled for the Frida* of the follo'ing 'eek% .*

secretar* 'ill revert on the meeting logistics%

6) : !"

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0 &he case 'as developed b* avi A% ao 'ith guidance from Professor ahul )e;, of

the Indian Institute of .anagement 8angalore% esearch assistance 'as provided b*

Abhipsa Pal% op*right is held b* II. 8angalore 4<10=5% >Please do not circulate?%

&hough based on a real @rm, the case data has been changed to protect

con@dentialit* of respondents% &he case is meant for in-class discussion and ma*

not be cited as a resource%



Anu 'as not surprised 'ith the email 7 neither its tone nor the content% Indeed it

'as a strange reuest to receive a note for presenting the I& development strateg*

to the !"#s o$ce% 8ut 'ith Information &echnolog* pla*ing an increasing role in

shaping the market strateg*, Firm-G 'as compelled to launch a product that could

potentiall* disrupt and change the current competition landscape% Bith a ver*

aggressive time-to-market constraint and the challenge of unclear businessreuirements, the development of the soft'are had suddenl* become the most

critical factor in the successful launch of the product%

&he choice that Anu had to make 'as ver* simple 7 a5 'hether to develop in-house

or to outsource, and b5 'hat soft'are development methodolog* to use9 Bhile

these uestions seemed to have te+tbook ans'ers, she kne' that her task 'as

going to be a lot more di$cult%

The Company:Firm-G is a large nationaliCed bank in operation for over D= *ears% Bith over =111

branches, about =1,111 emplo*ees and revenue of over E01 8illion, Firm-G is one of

the leading retail banks in the countr*%

"ver the *ears, Firm-G has e+panded into several other banking related areas

including housing @nance, life insurance and general insurance% Bith a buo*ant

capital market, Firm-G has plans of launching a @nancial securities and derivatives/

oering integrated 'ith the banking business%

A brief overvie' of the banking sector and Firm-G#s market position is available in

!+hibit A%

The IT Department:

Firm-G has been an earl* adopter of a technolog*-led core-banking solution and

prided themselves on their use of technolog*% &he I& department is headed b* %V%

angarajan or V as ever*one in Firm-G kne' him as% V 'as an industr*

veteran of = *ears having spent his initial *ears at -)A% V has been 'ith

Firm-G for close to <= *ears no'% Bith a fe' 'orking *ears left, V has silentl*

desired to spend his remaining time in Firm-G 'ith minimal stress% Ho'ever, his

leadership and vision 'ere being uestioned of late, and he 'as seen to beincreasingl* under stress%

&he I& portfolio at Firm-G consisted of the three groups( ore-8anking, orporate

8anking and Internet 8anking% !ach of the groups is head b* a Vice President 'ho

reported to V%

CoreBanking



Firm-G implemented the core-banking soft'are from I-8ank-Al'a*s 4I8A5% &he

product has evolved over the last t'ent* *ears, and Firm-G had a big role in shaping

the product to their needs% urrentl*, Firm-G has outsourced the maintenance and

operation of the ore-8anking solution to I8A% I8A has deplo*ed a team of 0<

engineers to support this application% "f these 0< engineers, J= are deplo*ed for

operations support across the regional o$ces% &he remaining engineers 'ork out of a dedicated development center that 'as set-up in the I8A o$ce% &hese D

engineers are tasked 'ith providing upgrades, production support, and reporting

services%

&he ore-8anking product is a ni+-based product 'ith a 'eb front end% &ill

recentl*, the product had a 'indo's front-end% A major upgrade activit* undertaken

03 months back migrated the user interface to a 'eb-based front-end%

&he contract 'ith I8A is a @+ed-price Annual .aintenance ontract 4A.5% According

to the rules of the contract, I8A 'as authoriCed to add = personnel for ever* 1 ne'

branches that are opened%

CorporateBanking

orporate banking is run b* )%K% 6engupta, 'ho is kno'n to run a ver* tight shop%

His team consists of onl* 03 emplo*ees and < consultants 'ho oer specialiCed

services such as Assets and 6ecurities, Fore+ 4foreign e+change5, &reasur*, and isk

hedging products% &hese applications are mostl* custom-built that 'ere developed

as an add-on to the ore-8anking product%

&he orporate 8anking group has an ongoing stream of service modules that get

regularl* added to the core-banking product% &he soft'are development process for

each of the modules is a 'ell controlled process% &he modules reuire about 0< to

03 months of design and build% &he t*pical activities for a ne' module involve the

follo'ing steps(

- A business case and product idea from the business group- An approval from the 8usiness leadership and the !"#s o$ce- A 8usiness consulting session of 0 to months 4usuall* led b* one of the

8ig-= consulting groups5 that ended in a 8usiness euirements )ocument

48)5- A reuest for proposal 4FP5 for a @+ed-price development Loated to =

empanelled vendors 4I8A being one of them 7 though the* rarel* 'on the

bid5%- suall* a M-0= month implementation timeline for 6*stem Appreciation,

)esign, 8uild, ser Acceptance &esting 4A&5 and Implementation% &he A& is

usuall* a month e+ercise that involves a production run in a controlled

environment% &'o times in the past, the A& had failed and the vendor had to

take additional time to @+ the defects%



&he contract for the 8) phase is al'a*s a &ime N .aterial 4&N.5 ontract%

Ho'ever, the contract t*pe for the )evelopment phase is usuall* a Fi+ed Price 4FP5

contract having stringent 6OAs and Penalt* clauses% "nce the module 'as

implemented, the support for that 'as taken over b* the internal I& sta%

InternetBanking

Firm-G launched their i-banking services 03 months back% &he i-banking platform

'as integrated 'ith the core-banking platform% &he initial product 'as procured

from I8A over 1 months back% &he product 'as supposed to have a standard

solution and 'as e+pected to be deplo*ed over one uarter% Ho'ever, it took Firm-G

more than 0< months to integrate the i-banking platform to the core-banking

product% As a result, Firm-G 'as at least a *ear behind in their launch of their

i-banking product%

Anu Kapoor is the VP responsible for the i-banking platform% Anu has a premier

engineering degree from an II&% Immediatel* after her graduation, Anu had taken up

emplo*ment 'ith a leading banking @rm in the 6A% After having spent a couple of

decades in the 6A, Anu decided to return back to her roots% )espite advise from

friends, Anu decided to join an old-sector bank and took up the oer from Firm-G to

head their internet banking division%

&he last 1 months in her ne' job had been ever*thing short of being pleasant% Anu

found Firm-G#s 'orking culture constraining her from taking independent decisions

relating to the functioning of the i-banking platform% 6he had a vision of internet

banking that her peers and superiors failed to comprehend% 6he 'as of the opinion

that 'hile the I8A core-banking platform 'as good, the* 4I8A5 did not have a good

internet oering% Ho'ever, the I& core committee decided to go 'ith I8A, despiteher advice%

Further, 'hen it 'as clear that I8A 'as struggling to implement the platform,

Firm-G;s leadership team decided to provide them an e+tended run% o', 'ith over

a *ear of dela* in implementation, and having lost the market share in the internet

banking business, Anu felt that the leadership team suddenl* seemed to realiCe that

the* had lost critical time-to-market advantages% Further, Anu, as the head of the

department, 'as no' being held responsible for Firm-G#s loss in market shareQ

efer to !+hibit 8 for a brief overvie' of Firm-G#s i-banking platform and its

comparison 'ith other bank#s solutions%

!ew Product "#ering

An operations revie' meeting for each of the banking platforms 'as held in the @rst

'eek of ever* uarter% &his meeting 'as attended b* all the business unit heads,

the I" and the VP responsible for the platform% &he !" made a presentation in



the last operations revie' meeting% He had invited a gentleman named K%

amanathan to this meeting%

Bithout mincing his 'ords, the !" communicated his displeasure 'ith the

i-banking platform% Firm-G 'as not onl* a *ear late in launching their internet

businessR the* 'ere also trailing behind on the launch of ne' services and oerings%.ost of the competitors 'ere no' launching ne+t generation products such as

mobile-banking, sms-banking, safe-banking, one-touch banking and a series of

other products% Anu felt that some of these services 'ere indeed revolutionar* -

leveraging 6.A 4an acron*m that stands for 6ocial .edia, Anal*tics and loud5<

technologies to the full e+tent, 'hile others 'ere just there to confuse the

consumers% evertheless, Firm-G had not been a market leader in launching an* of

these services and instead, al'a*s seemed to be out of breath catching up 'ith the

competition%

&he !" introduced amanathan as a *oung recruit 'ho has been roped in to head

the product research team% amanathan 4aka K5 had a masters degree from theIndian 6tatistical Institute and a )octorate in Applied 6tatistics from Harvard% K

proposed to launch a ne' Portfolio isk .anager 4P.5 that 'ould be a

@rst-of-its-kind oering from a banking @rm in India% P. had the potential of being

a ke* business driver for the retail banking business 7 particularl* for the pro@le of

customers 'ho 'ere likel* to bank over the internet%

&he !" told V and Anu in no unclear terms that this 'as their chance for

redemption% Oaunching the P. product should be top priorit*, and that Firm-G

should aim to launch the product 'ithin si+ months%

The Pro$ect

Post the ops revie' meeting, V had a discussion 'ith Anu% For the @rst time, V

con@ded that the* had made a mistake 'ith the i-banking solution and should have

heeded to Anu#s advise and not pursued the I8A solution% He oered Anu a free

hand to decide on the ne+t steps for developing the P. product%

Her @rst action 'as to seek an appointment 'ith K to understand the project#s

comple+it*% K appeared to be a pleasing, though eccentric, personalit*% A brief

interaction 'ith K 'as su$cient for Anu to realiCe that K 'as brilliant in his

subject% Bhile he had an incredible belief on ho' the product could revolutioniCe

retail banking and portfolio management, he seemed to have no idea on ho' toconvert this idea into a soft'are application% He spoke in vague terms such as

.onte-arlo/, )ata !nvelopment/, .arko'itC .odel/ and a 'hole lot of other

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terms that did not mean an*thing to her% And K did not seem to connect to an* of

Anu#s vocabular* such as screens, databases and functionsQQ

A brief outline of the objective of the P. product is provided in !+hibit % K

further mentioned that there is no one 'a* of developing a portfolio risk

management solution% It 'ill need a series of simulations to be performed based onthe dierent class of consumers that the bank has and the response the* get from

these dierent sets of consumers%

After revie'ing the challenges of developing the P. product, Anu 'as becoming

increasingl* a'are of the risk of taking up the assignment in its current form%

Question 1: Highlight the ke* risks and challenges in the project%

%gile Software Development approach

Bhile she 'as pondering over these challenges in her o$ce, she chanced upon an

article on Agile soft'are development that caught her attention% Intrigued b* thearticle, she decided to e+plore further the use of Agile methods as an option for

developing the product% 6he immediatel* commissioned one of the bright ne'

management trainees that she had recentl* hired to provide a summar* overvie'

on the advantages and challenges in adopting agile methods for soft'are

development% A summar* of the report provided b* the management trainee is

provided in !+hibit )%

Question 2: !valuate the suitabilit* of using Agile methods for developing the

Portfolio isk .anager product% Bhat internal skills and resources should the client

@rm have to ensure Agile 'orks9 Bhat are the risks in using Agile9

% skeptic&s opinion on %gile

Having made an initial assessment of the feasibilit* of developing the product in an

Agile 'a*, Anu decided to seek the opinion of her peer from the orporate 8anking

division% )K 'as kno'n to have ver* successfull* implemented several soft'are

modules on top of the core-banking platform% )K#s advice 'as ver* clear% Sou

cannot implement an*thing in si+ months% &hese products are comple+ and critical%

&here is onl* one 'a* of getting it right% !ngage 'ith a top consulting @rm, ensure

that *our reuirements are air tight, have a rigid contract, and recruit the best

outsourcing compan* to deliver it% )K#s @rm advise( I have implemented eighteen

highl* comple+ and critical applications on the corporate-banking platform% &here isonl* one 'a* of doing it right 7 ensure that *our reuirements are air tight and give

it su$cient time% !ver*thing else 'ill fall in place%/

Anu felt that )K#s advice 'as ver* sound% Bith K speaking onl* statistics, she

could visualiCe ho' di$cult it 'ould be to convert his thoughts into business

reuirements% Ho'ever, 'ith mounting pressure from 'ithin and outside to launch

ne' products in the market, Anu kne' that an* project plan that 'ent be*ond si+



months 'ould not be acceptable% 6o, she sought )K#s advise on using Agile

methods for developing the project%

)K came across as uite 'ell-informed on the challenges of using Agile% First, he

pointed out that Agile 'as being used b* the ne'-technolog* industr* and not *et

'idel* adopted b* the @nancial services industr*% 6o, @nding teams that are a'areof Agile methods could be a challenge% He further recounted the e+perience of his

classmate 'ho 'as the I" of a large telecommunications provider% His friend had

apparentl* engaged an Agile/ service provider to develop a mobile based

bill-presentation soft'are for the telecommunication consumers% Bhat 'as

apparentl* a simple mobile application that 'as supposed to be developed in three

months 'as shelved after si+ months of development%

In )K#s o'n 'ords( .* friend engaged Agile-6oft to develop the mobile

bill-presentation soft'are% Agile-6oft suggested developing the soft'are using

6crum and deplo*ed a team of si+ people including a scrum master, four developers

and a tester% .* friend 'as asked to nominate one person from his team 'ho 'asnominated as the product o'ner% &he product o'ner, 'hom m* friend nominated,

'as from the I& team and did not kno' the detailed product reuirements%

Agile-6oft assured that it 'as oka* and that the* don#t need all the reuirements to

be speci@ed upfront% &he* 'ere perfectl* happ* 'ith kno'ing just su$cient

reuirements that the* can develop in t'o 'eeks and then come back and ask for

more reuirements% Sou can imagine 'hat#s going to happen right9 After t'o

months of development, the business users realiCed that the current set of

reuirements 'as not compliant 'ith those developed earlier, so the* 'ent back

and changed the earlier ones% &hen the soft'are developers realiCed that the

database design had become too un'ield* because of the freuent changes in

reuirements% I 'as told that the core bill-presentation engine 'as modi@ed some

03 times in three months% Apparentl*, the business o'ner 'as constantl* given a

demo of the application and the* seemed to be happ* 'ith 'hat the* 'ere seeing%

8ut 'hen it came to user acceptance testing 4kno'n as A&5, the* found that the

application could not be rolled out into production% It took them t'o hours for a

simple transaction to completeQ I suspect that the design and code had become too

un'ield*% Sou can#t develop an application onl* b* sho'ing the screens to the users%

6o, m* friend had an advice for me 7 use agile 'hen *ou don#t kno' the

reuirements and T 'hen *ou don#t intend to complete the projectQ/

% practitioner&s opinion on %gile

At the end of this depressing chat 'ith )K, Anu 'as uite confused% Bhile the

te+tbook agile practices promised a great amount of agilit* and Le+ibilit*, the actual

realit* seemed to be other'ise% "n her 'a* back from )K#s o$ce, she bumped into

Kartik, a ne' manager she had hired% 6he recollected Kartik coming from an Agile

project management background, and thought it 'orth'hile to speak to him%



Karthik shared his e+periences on running an agile project - t*pical approach,

challenges and bene@ts% A transcript of the discussion bet'een Anu and Kartik is

provided in !+hibit !%

&hat evening Anu decided to do her o'n research on cases 'here Agile 'orked% 6he

found that organiCations like G!, and even government organiCations like the F8I inthe 6A 'ere leveraging agile methodolog* successfull* % 8ut these 'ere success

stories from abroad% Anu 'as 'ondering if it 'ould 'ork in a public sector bank like

Firm-G in India%

Decision time

&he ne+t morning, Anu received the note from the !"#s o$ce% &he note 'as copied

to V% A steering committee 'as being formed to decide on the ne+t course of

action for developing the product% 6he had a sense of a dUj vu% &hirt* months back,

'hen she @rst stepped into Firm-G, her @rst task 'as to present a plan for the

i-banking platform development% 6he dreaded the turn of events since then and

'ished she could change things around this time%

Questions:

% Bhat should Anu do9 Heed to )K#s advice and follo' a 'aterfall approach to the

product development, or risk taking an agile approach9% Bhat are the ke* controls she should e+ercise to increase the chances of

success9=% 6hould Anu do the development in-house or out-source the product

development9J% Bhat internal skills and resources should she align 'ithin her team to ensure the

project runs smoothl*9D% Bhat criteria should she use to evaluate the outsourcing @rms for a'arding the

contract 4in the case of outsourced development59 Highlight ke* parameters that

*ou 'ould 'ant to be included in the contract%

http(::blogs%'sj%com:cio:<10<:1=:1:ge-becomes-more-agile:

http(::'''%cio%com:article:<M<MD1:agile-development:ho'-the-fbi-proves-agile-'or

ks-for-government-agencies%html

http://blogs.wsj.com/cio/2012/05/30/ge-becomes-more-agile/

http://blogs.wsj.com/cio/2012/05/30/ge-becomes-more-agile/



'(hi)it % : Banking Sector and *irm+

The history of public sector banks in India dates back in 1955 when Imperial Bank of India became the

State Bank of India. This was followed by Government of India nationaliin! 1" banks in 19#9. $urrently

there are 19 public sector banks %refer to &i!ure' 1(. Bankin! industry is a ma)or developmental tool for

India*s economy. +ost of the banks were founded prior to 195,- and till 19#- they or!anied themselves

independently. /fter nationaliation of banks in 19#9- the public sector bankin! sector !rew heavily under

support from the !overnment. 0rivate banks nearly perished. The epansion of nationalied banks

continued as the total number of branches !rew from ,,, branches in 19#9 to nearly ",-,,, by 195.

2owever- from 195 onwards- the profits and productivity started declinin! due to various reasons like

poor work culture of the employees- no market competition from private banks- corruption and outdated

technolo!y. &ollowin! this- the 3eserve Bank of India %3BI( made private commercial banks* entry into

the industry easy by a liberaliation policy. This resulted in stiff competition- and from 199" onwards- the

public sector banks- already low on profit- started reformatory activities in terms of customer services and

use of modern technolo!y.

Pu)lic Sector Banks in IndiaAllahabad 8ankAndhra 8ank8ank of 8arodanited 8ank of India8ank of India8ank of .aharashtraanara 8ankVija*a 8ankentral 8ank of Indiaorporation 8ank)ena 8ankIndian 8ankIndian "verseas 8ank"riental 8ank of ommercenion 8ank of IndiaPunjab N 6ind 8ankPunjab ational 8ank6*ndicate 8ank" 8ankFigure 0( Public 6ector 8anks in India%

Bankin! is a service industry and customer service plays a ma)or role. 4et- in the first few decades of public sector bankin!- employee work culture was far from bein! customer friendly. In the absence of

convenient money transaction systems like /T+s and internet bankin!- customers were even more

dependent on the banks* branch offices. 0ublic sector banks did not face any competition from private

banks- and therefore the employees followed a relaed work culture. on! 6ueues at the counter- refusal

to process any transaction beyond strict 1,am75pm workin! hours accompanied with etended lunch

breaks- difficulty in openin! new accounts- and unavoidable need of bribin! bank officials for loans and

other transactions- were common eperiences at any of the nationalied banks. In spite of these poor



customer services- public sector banks dominated the bankin! business in India for two reasons. 8ne-

3eserve Bank of India decided the interest rates hence there was little scope of market competition. Two-

3BI had restricted new entry of banks.

In 199"- 3BI issued the policy of liberaliation that reduced the entry barrier for new banks. Soon there

was a sudden sur!e in competition as new private banks started enterin! the market. Some eamples of

private banks currently in India are I$I$I Bank- /is Bank- IG :ysya Bank- ;arnataka Bank- ;otak

+ahindra Bank- etc. The private banks brou!ht modern technolo!y alon! with them. It is these new

private sector banks that have revolutionied customer service. They forced the public sector banks to

adopt similar information technolo!y and customer satisfaction schemes. This directly impacted the

casual workin! culture that had prevailed in the public sector banks- forcin! them to offer services

comparable- if not e6ual- to the private banks. <ith 3BI fiin! the interest rates- thereby restrictin! the

freedom of competin! throu!h better rates- the only way to create a difference was by services.

The technically advanced private banks contributed to the overall development of the bankin! sector in

India. &aced with competition- over =,,, branches of public sector banks were completely computeried.

This resulted in both faster customer services and more centralied control of the branches. There wasstrate!ic plannin! for better operations and services with the new information systems- other than the

basic data7storin! and accountin! activities.

> > >

/lon! with other banks- &irm7G was nationalied in 19#9. $urrently it has a network of more than 5-5,,

branches across India- at places includin! metropolitans- towns and rural villa!es- with "-,, employees

workin! in India and a few offices abroad %ondon- 2on! ;on!- +oscow- ?ubai- ?oha- Shan!hai and

ew 4ork(. It has =-,,, /T+s- with approimately @-,,, branches offerin! Internet and mobile bankin!

%I+B( services and another @-,,, branches providin! anywhere bankin! services.

&irm7G !rew massively durin! the post7nationaliation period- after 19#9. 2owever- 19,s witnessed a

decline in profitability due to various factors includin! poor technolo!y- political intervention in loan

policies- low capital- ecessive branch epansions- etc. &ollowin! this was the liberaliation by 3BI

invitin! new private banks into the industry. The first private bank after liberaliation was Global Trust

Bank- followed by 2ousin! ?evelopment &inance $orporation imited %2?&$(. /lon! with the poor

profitability and productivity- this posed a si!nificant threat to &irm7G. It realied- radical reformation

was etremely important.

8ne such reformatory step was startin! a ma)or IT initiative to network all its branches and move them to

a sin!le software platform. This helped it launch its Internet Bankin! facilities in @,,A- followed by total

computeriation of all branches in @,,". $urrently- about @@ million customers are benefitin! from theseIT services. This initiative tri!!ered the recruitment of software en!ineers with work eperience- and

senior mana!ement employees with +ana!ement in Information Systems education and eperience.

Some key stren!ths of &irm7G are'



It has superior financial performance.

Its capital ade6uacy ratio is !ood. $apital ade6uacy ratio measures the bank*s capital as a

percenta!e of bank*s risk. It is important for the safety of the depositor and determines the bank*s

stability.

It has started new IT initiatives to secure a competitive ed!e with latest technolo!y.

It has innovative schemes and policies- includin! the Solar oan 0ro!ram. It is recruitin! continuously- and currently has employee stren!th of above "5-,,,.

The ma)or weaknesses include'

It has poor marketin! and publicity schemes- compared to the competin! private banks.

There are fewer branches and hence it has a weaker presence in <estern India.

It is facin! continuous threat from the private banks e6uipped with modern technolo!y and

superior customer service policies.

Table 1' $omparison of &irm G with its competitor banks %as on +arch @,1"(

Firm-G Competitor 1 of Firm-G

Competitor 2 of Firm-G

Competitor 3 of Firm-G

ATMs #-5,9 #-#5" 11-"@# 11-""=

Number of

Employees

"-,, "#-,,, #-@,, =@-@,,

Number of

Branches

5-5,= 5-,5# A-" A-5A

eposits !in "s#

millions$

"-@,#-,A= 5-=99-9=1 A-#=,-,A A-595-1@=

A%&ances !in "s#millions$

A-,1A-@#, "-,A=-15" A-15"-19 A-=A-"1

Net fi'e% assets

!in "s# millions$

##-#@, @-"9A A,-@#A 55-,#

(hare capital !in

"s# millions$

"-#1A "-A,= "-=9 11-55,

)n&estments !in

"s# millions$

1-A5"-"5" 1-@@1-1@9 1-195-=11 @-#=#-,9"

Total assets !in

"s# millions$

5-,1,-9# #-=#1-1"1 5-,A#-@,, =-"=5-@5=

Capital a%e*uacy

ratio !+$

1,.# [email protected] 1#.1 19.1

)ncome per

E*uity (hare

!"s#$

5=.9 9"@.A 1==." "@."

Earnin,s per

E*uity share !"s#$

5=., 11#.5 A#." 95.#

Cash flo per

E*uity share !"s#$

1@@.5 @,5.= 99. A=5.9



i&i%en%s per

E*uity share

11.,, @1.5, #.5 @A.,,

Net interest

income !in "s#

millions$

9-#"# 1@-55 191-,9# 19=-##

.peratin,e'pense !in "s#

millions$

#1-1#A =5-9@A 1@"-#9= A,#-##"

Gross profit !in

"s# millions$

@-"" 5@-##@ ##-A99 71,-9==

Net profit mar,in

!+$

#.# 1@." 15.# @@.A

3&3$S

0% Samar Srivastava- Cconomic +ilestone' ationalisation of Banks %19#9(*- %@,1"(- &orbes India

<% /bhiman ?as- Subhash $. 3ay- /shok a!- Cabor7use efficiency in Indian

bankin!'/branch7level analysis*- %@,,9(- International Dournal of +ana!ement Science

% Surabhi Sin!h- 3enu /rora- C/ $omparative Study of Bankin! Services and $ustomer

Satisfaction in 0ublic- 0rivate and &orei!n Banks*- %@,11(- Dournal of conomics

% http'EEmarketpublishers.com

=% https'EEwww.e6uitymaster.comEresearch7it

J% $anara Bank <ebsite 7 https'EEwww.canarabank.in

D% Bank of Baroda <ebsite 7 www.bankofbaroda.co.in

3% 2?&$ Bank <ebsite 7 www.hdfcbank.com

M% I$I$I Bank <ebsite 7 www.icicibank.com

http'EEprofit.ndtv.comEstockEcanara7bankFcanbkEreports

http://marketpublishers.com/

http://marketpublishers.com/



'(hi)it B : Internet Banking

I$I$I bank was the first bank in India to launch internet bankin! services as early as 199. Soon after-

other banks followed suit. / typical internet bankin! facility- also known as i7bankin!- net bankin!- or

online bankin!- consists of the multiple services that can be availed from anywhere via the online bank

account- without any physical presence of the customer at the bank*s branch.The services typically include'

0% :iewin! recent transactions and current balances

<% ?ownloadin! bank statement in 0?& or tet format

% 8rderin! che6ue books

% inkin! other accounts of the same customer and fund transfers to these accounts

=% &und transfers to other account holders %same bank or different bank(

J% +obileE?T2 online rechar!e

D% 8penin! new accounts of the same customer for 3ecurrin! ?eposits- &ied ?eposits- etc.

3% Third7party bill payments in case of 8nline 0ayment durin! online shoppin!- online ticket

bookin!- etc.

M% /pplyin! for a loan

01%/pplyin! for new credit card

Internet bankin! has !ained immense popularity over the years. The common reasons of popularity of

i7bankin! are'

0% Con&enience' It saves tremendous amount of time to accesses the account and doin! transactions

without physically visitin! the bank branch or office. ?aily transactions like fund transfer to

another person- mobile rechar!e and bill payments can be comfortably done from anywhere-

startin! from home- or workplace- or even while travelin!- if the user has a computer or a mobile

phone with internet connection.

<% (ecurity' 8nline bank accounts are linked to the customers mobile and the account holder

receives an S+S for all transactions. This is a protection a!ainst any theft as the customer caninform the bank as soon as it happens. /lso- the ease with which a customer can view hisEher

account helps himEher track all previous transactions- in a chronolo!ically sorted manner.

% No /ueues' arlier- banks used to be identified by lon! 6ueues of customers waitin! for a bank

personnel servin! them individually for activities like cash transactions- new account openin! and

passbook updatin!. I7bankin! has made all these possible via the user*s online account. Banks are

usually much less crowded these days.

% A%%itional (er&ices' Some banks provide etra features in their i7bankin! facility. &or eample-

the iWish scheme launched by I$I$I bank is a fleible recurrin! deposit. / customer can open an

iWish account- and deposit fleible amounts to hisEher account every month- throu!h net bankin!.

(toc0 Tra%in, latforms



&i!ure @' I$I$I Bank*s Internet Bankin! %ser /ccount Screen(

Indian banks have started providin! online stock tradin! platforms for account holders to trade

stocks and monitor the stock prices re!ularly- throu!h a sin!le window. The customer is re6uired

to open a demat account in order to access the facilities. The common features of a stock tradin!

platform provided by banks include'

0% asy transactions between the customer*s various accounts Hbankin!- demat and tradin!

accounts.

<% :iew current stock prices- market fluctuations- top !ainersElosers- etc.

% The customer can view current mar!in status- holdin! report- order and trade- on a real time

basis.

% The bank also provides recommendations and su!!estions to its customers on the tradin!

moves.

=% It also provides the facility for buyin! +utual &unds.

J% The platform has innovative tools to help the user mana!e his stocks and make better

investment decisions.

D% It also allows the user to create and mana!e multiple portfolios of all asset classes.



$urrently several banks in India have online stock tradin! platforms- which include State Bank of

India %SBI(- $anara Bank- 2?&$ Bank- I$I$I Bank- and many more.

&i!ure @' 8nline Stock Tradin! 0latform of $anara Bank

3&3$S

0% S.:i!nesh- CInternet Bankin! In India*- %@,1"(- IS3 /TI8/ Dournal of /dvanced 3esearch

in $omputer Science n!ineerin! and Information Technolo!y

<% I$I$I Bank*s 2omepa!e H www.icici.com- accessed on @A7Dan715

% $anara Bank*s <ebpa!e H www.canarabank.com- accessed on @A7Dan715



'(hi)it C : Portfolio ,isk -anager

"ver the last decade, Firm-G had diversi@ed the solution it oered to its clients% &he

@rm#s product oerings through its various divisions and subsidiaries included(

- ore banking services

- Housing @nance and other loan services- Oife and General insurance- 8rokerage services

o !uities and )erivativeso )ebt, 8onds and .one* market instrumentso Alternative investments such as hedge funds, commodities and real

estates

Bhile Firm-G had diversi@ed its product oerings, more than M12 of their revenue

came from the core-banking services% Firm-G 'as unable to eectivel* sell the

various products to their clients% "ver the *ears, Firm-G had developed a strong

relation 'ith most of the leading corporate @rms in the nation and managed thesalar* accounts of several million customers% Ho'ever, most of these customers

limited their business 'ith the bank to savings bank and related products% As a

result, Firm-G 'as not able to tap into the large disposable income of these clients%

"ver the last couple of *ears, Firm-G had established a strong research desk% &he

@rm had spent considerable amount of time, eort and mone* in branding their

research desk% &he management felt that it 'as time to leverage the brand euit*

of their research desk for ne' customer acuisition and increase their business of

e+isting customers%

A ke* to their plan 'as the patented isk Pro@ling/ algorithm developed b* theirresearch desk% Firm-G aimed at oering portfolio management advice that 'as

po'ered b* the isk Pro@ling/ algorithm as a free service to its clients% Firm-G sa'

this as an opportunit* to gain access to its client#s portfolio, provide

recommendation on portfolio alteration that are essential, and then use this

opportunit* to push Firm-G product%

&he Portfolio isk .anager product 'as conceived as a native mobile app that 'as

to be made available as a free do'nload% &he ke* product reuirements included(

- "er the risk pro@ling/ application as a stand-alone app that can be used

directl* b* the client%- !nable the risk-pro@ling/ of the client through a heuristic based model that

eliminated standard surve* based uestionnaires- ombine past market performances, research desk outlook, asset distribution

pattern and the personal risk pro@le to recommend optimal asset allocations- Provide in-depth anal*tics and 'hat-if models that are simple enough for the

consumers to use but oer po'erful insights to their portfolio



- An advanced version 'ould be to integrate the application 'ith the i-banking

and trading platform%- A fe' ke* technical considerations include

o )ata privac* and protectiono &he high computational reuirementso .obile form factor and the abilit* to provide rich and intuitive anal*sis

reports



'(hi)it D: % )rief introduction to %gile Development -ethodologies

&he Baterfall .odel/ has been the traditional approach to soft'aredevelopment% &he 'aterfall model follo's an approach of developingsoft'are in several 'ell de@ned stages such as reuirements de@nition,

anal*sis, design, coding, testing and implementation% &he focus of each of the stages is to complete the activities of the stage, obtain an approval fromthe sponsor and then proceed on to the ne+t stage% &he focus of the 'aterfallmodel is to bring in predictabilit* to the comple+ activit* of soft'aredevelopment b* prescribing 'ell-de@ned process for each of the stages andensuring adeuate revie's and approvals before proceeding on to the ne+tstage%

6oft'are development is ho'ever seen to be a comple+, chaotic and largel*unpredictable process% 6oft'are reuirements have often been kno'n to beunpredictable and constantl* changing% 6oft'are development is a skillbased activit* that reuires the co-ordination bet'een diverse sets of people%ontrolling the soft'are development process through 'ell-de@ned projectplans and air-tight revie' processes is often seen to be a challenging activit*%

"ver the last decade and half, a ne' set of methodologies in soft'aredevelopment have evolved 'ith a focus on adaptive rather than predictiveRand people-oriented rather than process-oriented methods% &hese methods'ere commonl* kno'n as agile/ development methods% Oeaders andproponents of various agile development methods formed the AgileAlliance/ and developed the Agile .anifesto/= as an alternate soft'aredevelopment paradigm%

&he agile manifesto is based on a set of t'elve principlesJ

% "ne set of theseprinciples is around self-organiCed teams, stressing on the need formotivated and skilled human resources, the need for co-location andco-'orking of users and developers, and freuent interaction bet'een theteam and the users% A second set of principles is around the importance of customer satisfaction, the need to accommodate changing businessreuirements, and collaborating 'ith the customer as against follo'ing acontract% &he principle of accommodating changing reuirements reuiresthat the project teams be adaptive rather than predictive, 'ith a focus onresponding to change rather than follo'ing a strict plan% Another set of principles focuses on creating value b* freuentl* delivering 'orking

soft'are at regular short intervals%

= http(::agilemanifesto%org:

J http(::agilemanifesto%org:principles%html

http://agilemanifesto.org/

http://agilemanifesto.org/principles.html

http://agilemanifesto.org/

http://agilemanifesto.org/principles.html



Scrum and .P

&he various agile methods are oriented around these principles% &'o of themost popular agile methods are 6crum and eWtreme Programming 4WP5%6crumD is a project management based frame'ork for developing soft'are inan agile manner 'hile WP3 focuses on the engineering aspect reuired todevelop soft'are in an agile manner% A combination of agile and WP is oftenused b* soft'are developing vendors adopting agile methods% &he @gureprovided belo' provides an overvie' of 6crum and WP%

D http(::'''%scrumguides%org:scrum-guide%html

3

http(::+programming%com:'hat-is-e+treme-programming:

http://www.scrumguides.org/scrum-guide.html

http://xprogramming.com/what-is-extreme-programming/

http://www.scrumguides.org/scrum-guide.html

http://xprogramming.com/what-is-extreme-programming/



Figure( Agile 6oft'are )evelopment using 6crum and WP

6crum emplo*s an incremental approach to soft'are development and aims to

optimiCe predictabilit* and control risk through transparenc*, inspection and

adaptation% 6crum team consists of three roles( the 6crum .aster responsible for

ensuring that the process is understood and follo'edR the Product "'nerresponsible for ma+imiCing the value of the 'ork done b* the teamR and the &eam

comprising of developers% 6crum processes are time-bo+ed to create regularit*( the

development c*cle is a 6print that is an iteration of one month or lessR dail* 6crum

meetings are limited to @fteen minutes, the 6print planning meeting is limited to

eight hours and the 6print retrospective meeting is time-bo+ed to three hours% &he

primar* objectives of the 6print meetings are to enable inspections and continuous

adaptations% &he 6crum artifacts comprise of the Product-8acklogs that includes the

prioritiCed list of product featuresR the 6print-8acklog that consists of 6print tasksR

and the 8urn-do'n charts that measures the remaining backlog over time% &here

are a set of rules/ that govern the 6crum roles, time-bo+es and artifacts%

&he 6crum .aster#s role is to ensure that the team follo's the 6crum principles and

rules% &his involves coaching the team members and enabling them to form a

self-organiCed team% &he other important role of the 6crum .aster is to remove

impediments/% &he Product "'ner is responsible for managing the product backlog

and ensuring that the output of the team is of value/ to the stake holders% &he

&eam members are skilled, cross-functional developers 'ho form a self-organiCed

team and convert the product backlog into 'orkable soft'are% 8eing a

self-organiCed team means no-one 4not even the 6crum .aster5 commands the

team 'ith respect to converting the product backlog to 'orkable soft'are%

Assignment of tasks is done through a volunteering for tasks b* the team members%

&here are t'o ancillar* roles, the management 4project management e+ternal to the

scrum team5 and the stakeholders 4vendors or customers5 'ho are recipient of the

output of the 6crum team%

&he @nal output of the 6crum team at the end of each 6print is an increment of

product functionalit* that is considered as done/% &he entire 6crum team has to

have a shared understanding of the de@nition of 'hat done/ is( t*picall* a running

increment of the product that is potentiall* shippable to the end customer and

consists of onl* those functionalities that is of considerable value to the stake

holder%

6ome of the concepts introduced b* WP that are freuentl* adopted b* agile projects

include(

- &he concept of the Bhole team/ and ollective ode "'nership/ that

ensures that the entire team is responsible for the code and no single

individual is indispensable



- Practices such as Pair Programming/ that believes that 'orking together in

pairs provides better ualit* and productivit*- ontinuous Integration/ and efactoring/ to ensure that developed soft'are

code is never out of s*nc 'ith the overall product goal and is constantl*

being improved upon%

- &est )riven )evelopment/ that believes that the soft'are code needs to bedeveloped 'ith a test-@rst approach ( 'ith a focus of eliminating redundant

code and having a 'orking soft'are 'ith almost a 011 percent test coverage%

Comparing %gile and /aterfall

&he approach follo'ed b* Agile development is paradigmaticall* dierent from

those of 'aterfall methodologies% A summar* of the dierence bet'een Baterfall

and Agile development is summariCed in the &able belo'%

&raditional 4Baterfall5 AgileFocus "ptimiCation and Predictabilit* Adaptation and learning

Process 6euential, controlled and reliesheavil* on eective

documentation

Parallel, iterative and relies oneective communication

Project

managemen

t

entral, Hierarchical )istributed, 6hared

Personnel Individual accountabilit* ollective o'nership &able 0( )ierence bet'een &raditional and Agile methodologies



'(hi)it ': Transcripts of the discussion )etween %nu and 0artik

A( He* Kartik, *ou have a minute9 I am starting on a ne' product development and

I 'anted to pick *our brain on using Agile methods for doing the product

development% Bould *ou have some time to have a small chat on this9

K( 6ure Anu, in fact, I 'anted to speak 'ith *ou on this topic as 'ell% Sou kno' I am

a erti@ed Product "'ner and an Agile coach% I have been thinking that 'e could

bene@t a lot b* introducing Agile in our organiCation%

A( !+cellent, then this is the time to discuss% Oet#s go, grab a coee, and then *ou

can get started%

K( I suppose *ou are a'are of t*pical Agile practices 7 6crum and WP right9

A( Ses, *es, I have some basic understanding of that% I have an understanding of

'hat the various roles are( product o'ner, scrum master, and the developers% I also

understood that development is undertaken in short iterations that are called6prints, and each sprint has various ceremonies such as 7 6print planning, revie',

retrospective and the dail* scrum% And then I 'as told that there are certain

artifacts that are produced 7 the Product 8acklog that has the reuirements 'ritten

as user stories, 6print backlog comprising of tasks, and the 8urndo'n charts for

measuring progress% 6ee, I have gathered a lot of 'hat Agile soft'are development

does 4!+hibit )5% 8ut the uestion is ho' is it dierent9 &his still does not ans'er

m* uestion on 'h* Agile9

K( Bo', that#s a lot% &hat#s all the* taught me in m* certi@ed scrum training% 8ut

seriousl*, *ou have a good uestion 7 'h* agile% Bell let me attempt that%%%

First is this 'hole notion of reuirements% If *ou read the Agile .anifestoM, one of the

principles is about esponding to change over follo'ing a plan/% 6o, the belief is

that soft'are reuirements are bound to change, there is nothing like a froCen

reuirement% As *ou keep developing soft'are, *ou understand the application and

the reuirements betterT *ou uncover dierent possibilities, and then *ou take

opportunit* of the improved understanding b* changing the reuirements as

necessar*% 6o, agile soft'are development does not believe in having reuirements

completel* done and bo+ed up before *ou start the design and build% Sou start 'ith

a base set of reuirements, there needs to be a great amount of collaboration

bet'een the business and the tech folks, and then *ou design and build those

reuirements% Sou then take the ne+t set and do this iterativel*%

&he product backlog usuall* captures the reuirements in the form of user stories%

&hese are prioritiCed based on their value to the business% Sou need to ensure that

M http(::agilemanifesto%org:



the high priorit* user stories have reasonabl* clear reuirements, the ne+t set not

so much, and ma*be the last set *ou don#t have an* idea at all at this stage%

A( 6o, I suppose, it is appropriate to sa* that Agile soft'are development does need

good reuirements, if not perfect reuirements%

K( &rue, *ou need good reuirements% 8ut it is just in time though% Sou of course

need to have an idea of 'hat *ou are going to build, 'hat the end goal is, and ho'

to get there% &o get there, *ou do a series of incremental builds, and *ou do this

iterativel*% &hese are 'hat 'e call 6prints% For the immediate 6print, and ma*be the

ne+t 6print, the reuirements have to be reasonabl* clear%

As *ou move from one 6print to another, the solution evolves - the reuirements,

design and code all of them evolve% And to make agile projects successful, *ou need

to embrace this evolution%

A( "K, I understand this evolutionar* process, and that reuirements are bound to

change% 8ut doesn#t this developing in short c*cles cause too man* changes9 Isn#t itan ine$cient 'a* of soft'are development 7 design, build, test and then ma*be go

back and change *our design again to accommodate ne' reuirements9 Bon#t

there be e+cessive re'ork9

K( Ses, indeed, *ou got it right% &here is a chance of re'ork% 8ut then it is a trade-o%

an *ou manage the project such that *our cost of re'ork is minimiCed9 In agile, 'e

think 'e can% As I mentioned earlier, *ou need to have a sight of the end goal, *ou

base *our architecture on that% nder this frame'ork, *ou let *our design evolve% As

long as *ou maintain a good technical stack and coding standards, the change in

design should not impact *ou too much% Are *our soft'are components lo' on

coupling and high on cohesion9 )o *ou have a good unit test coverage9 Are *ou

maintaining the discipline of doing a dail* build9 &here are several good engineering

practices from WP 7 continuous integration, refactoring, pair programming,

test-driven-development %% to name a fe', that ensure that *ou are continuousl*

able to provide value to the client%

A( &hese are a completel* dierent ne' set of engineering practicesQ Bhat kind of

demand does this pose on the development teams9

K( Good uestion% Agile soft'are development has an implicit assumption that *ou

have e+perienced cross-functional personnel% Be don#t believe in 'asting eort in

unnecessar* documentation(

- &he reuirements are sparsel* documented in the product-backlog 7 instead,

the soft'are developers activel* discuss this 'ith the business users to

understand reuirements%



- Be do not 'aste eort in elaborate project planning and scheduling 7 instead,

the developers self-assign tasks, provide an estimate and 'e track our

progress using a burn-do'n chart on the agile 'allQ- Be do not 'aste time documenting detailed design and program specs 7 the

best documentation is the code itself% 6o, *ou need developers 'ho can read

code and understand the design from the codeQ "'ing to the incrementalnature of the development, there is a possibilit* that a soft'are component

ma* change repeatedl*, and these changes ma* be undertaken b* dierent

developers% 6o, 'e don#t see one person o'ning the code, it#s the team that

o'ns the code% &he entire team has a right to change and improve the code%

efactoring is the essence of AgileQ

6o, *ou can see, developing in an agile 'a* needs e+perience% Sou need

e+perienced developers 'ho can 'ork independentl* but collaborate 'ith each

other% I don#t think Agile development is meant for rookies%

A( 6o, Kartik, *ou are sa*ing that the business folks and the soft'are developersneed to 'ork together to ensure agile development is successful% 6o, 'hat are the

challenges in outsourcing the development9

K( Bell, I kno' there are a lot of vendors out there 'ho make tall claims about

outsourced agile development% 8ut I don#t see it happening this 'a*% Agile needs

co-location, agile needs e+perienced developers, agile needs an implicit trust

among all the team members% I don#t see ho' an outsourced vendor can @t into this

scheme of things9 Agile talks about collaboration over contract/ 7 isn#t that an

o+*moron9

"utsourced vendors are used to driving ualit* through strong stringent process,stringent scope management, e+cessive documentation and stage-gate revie's% All

of these are against the principles of agile development% I have al'a*s seen

outsourcing 'orking 'ith a tall hierarchical structure, not a Lat structure that agile

mandates% I think outsourcing is good for 'aterfall development, not for agileQ

A( Bell Kartik, thank *ou so much for *our timeQ It 'as indeed ver* useful T%% 'ill

help me in m* decision process% And I do remember *our oer to be the Product

"'ner for the project% &he onl* issue is that I don#t have the rest of the teamQ

Documents

Agile Case(MIST2016)