A Project Study Report OnTraining Undertaken at
TitledANALYSIS OF THE BANKING SERVICES OF HSBC WITH COMPERISSION OF OTHER BANKS Submitted in partial fulfillment for the Award of degree of Master of Business Administration
ARYA COLLEGE OF ENGINEERING &
Submitted By: DAKSH SHARMA MBA Part-IV SEM
Submitted To:Dr. MANISH SHRIVASTAV
PREFACETheories are being developed, designed and stated on the groundwork of their practical implementation and usage. Work experience seems to be more effective and indispensable factor of making an individual an adept. This is because one cannot do without being exposed to varying circumstances and possible consequences. Training not only develops individual skills and abilities but also provides proficiency in work performance. This report is a concrete form of the knowledge that was acquired during summer training in the bank that is part of two year full time management programmed. It emphasizes on learning by doing. The training paves the way for successful entrance in the corporate world for students. I have studied and explored saving a/c and investment process of the bank, its market share in the Jodhpur market and ways of increasing its market share. It was really a great opportunity getting practical insight of the market. Initially I felt that classroom study was irrelevant and to useless in any concerns working, but gradually I realized all the basic fundamental concepts studied are linked in one or the other ways to the organization. Further it could be said that theory and practical training are supplementary to each other and help in drawing meaningful conclusion and its just a matter of modifying the theory, so as to apply in to given a practical solution. I sincerely believe that there is no better place to learn the practical side of management studies than the industry itself. With the data that was collected I have tried my best to provide some fruitful suggestions and recommendations.
I express my sincere thanks to my project guide Dr.Manish Shrivastav, for guiding me right form the inception till the successful completion of the project. I sincerely acknowledge him for extending their valuable guidance , support for literature , critical reviews of project and the report and above all the moral support she had provided to me with all stages of this project. I would also like to thanks the supporting staff for their help and cooperation throughout our project.
(Signature of Student)
Name of the Student
EXECUTIVE SUMMERYThe main objective of this report is to study the wealth management products of HSBC and compare them with that of other banks. The study includes a competitive analysis of the different types of products being offered by the banks, their target customers, the services they render and the extra facilities that they provide to their clients. As various employment scheme are also working with bank to uplift the existing economic status. In a nutshell, it provides employment, money management, interest incomes and lockers facilities to keep safe our precious things and provide many other value added services. It provides a broad view regarding various banking facilities, challenges and dealings with customers. Besides this administrative structure of bank was also analyzed the report to understand the functioning of the same at various levels. The time has gone when people had fewer options to invest their surplus; banks these days are offering a range of customized products to attract investments from the public. The customer is the king in the industry and every bank whether public, private or foreign, is offering best services and facilities. Wealth Management is one of the hottest potential in the market, which is aimed at providing the financial planning and investments services to the High Net Worth Individuals. These clients are treated as the privileged customers of the bank, with many exclusive services. On one hand where theres great cat and dogfight for clients, HSBC is one of the leading players in this category on the other, with many other banks in the foreign and private sectors. It is one of the fastest emerging banks in India with its strong foothold by 151 years of its existence. HSBC leads in Treasury, Custody & Clearing (HSS) and Trade, with strong position in CIB and Mutual funds. Last but not the least; HSBC has wider horizons for engaging the MBA students in a better and hopeful profession.
INDEXCover page Acknowledgement Preface Executive Summary CONTENTS1. INTRODUCTION TO THE INDUSTRY 2. INTRODUCTION TO THE ORGANIZATION HSBC the worlds local bank 3. RESEARCH METHODOLOGY 3.1 TITLE OF THE STUDY 3.2 OBJECTIVE OF THE STUDY 3.3 TYPE OF RESEARCH 3.4 SAMPLE SIZE AND METHOD OF SELECTING SAMPLE 3.5 SCOPE OF STUDY 3.6 LIMITATION OF STUDY 4. 5. 6. 7. 8. 9. ANALYSIS AND INTERPRETATION SWOT ANALYSIS COCLUSION & RECOMMENDATION HOW HSBC IS RESHAPING APPENDIX BIBLIOGRAPHY 81 98 103 108 109 111 76 6 14 1 2 3 4
BANKING INDUSTRYThe Indian banking industry is passing through a phase of customers market. The customers have more choices in choosing their banks. A competition has been established within the banks operating in India. With stiff competition and advancement of technology, the services provided by banks have become more easy and convenient. The past days are witness to an hour wait before withdrawing cash from accounts or a cheque from north of the country being cleared in one month in the south.
Fact Files of Banking in INDIAThe first bank in India to be given an ISO certification Canara Bank and Sind
The first bank in Northern India to get ISO 9002 certification for Punjab their selected branches Bank
The first Indian bank to have been started solely with Indian Punjab capital Bank
The first among the private sector banks in Kerala to become a South Indian Bank scheduled bank in 1946 under the RBI Act India's oldest, largest and most successful commercial bank, State Bank of India offering the widest possible range of domestic, international and NRI products and service, through its vast network in India and overseas India's second largest private sector banks and is now the The Federal Bank largest scheduled commercial bank in India Limited Bank which started as private shareholders banks, mostly Imperial Europeans shareholders India Bank of
The first Indian bank to open a branch outside India in London in Bank of India, 1946 and the first to open a branch in continental Europe at founded in 1906 in Paris in 1974 Mumbai The oldest Public Sector Bank in India having branches all over Allahabad Bank Indian and serving the customers for the lest 132 years The first Indian commercial bank which was wholly owned and Central managed by Indians India Bank of
NEW GENERATION BANKING7
The liberalize policy of Government of India permitted entry to private sector in the banking, the industry has witnessed the entry of nine new generation private banks. The major differentiating parameter that distinguishes these banks from all the other banks in the Indian banking is the level of service that is offered to the customer. Verify the focus has always been centered on the customer understanding his needs, preempting him and consequently delighting him with various configurations of benefits and a wide portfolio of products and services. These banks have generally been established by promoters of repute or by high value domestic financial institutions. The popularity of these banks can be gauged by the fact that in a short span of time, these banks have gained considerable customer confidence and consequently have shown impressive growth rates. Today, the private banks corner almost four per cent share of the total share of deposits. Most of the banks in this category are concentrated in the high-growth urban areas in metros (that account for approximately 70% of the total banking business). With efficiency being the major focus, these banks have leveraged on their strengths and competencies viz. Management, operational efficiency and flexibility, superior product positioning and higher employee productivity skills. The private banks with their focused business and service portfolio have a reputation of being niche players in the industry. A strategy that has allowed these banks to concentrate on few reliable high net worth companies and individuals rather than cater to the mass market. These well-chalked out integrates strategy plans have allowed most of these banks to deliver superlative levels of personalized services. With the Reserve Bank of India allowing these banks to operate 70% of their businesses in urban areas, this statutory requirement has translated into lower deposit mobilization costs and higher margins relative to public sector banks.
BUSINESS OF BANKING
Banking, in a traditional sense is the business of accepting deposits of money from public for the purpose of lending and investment. These deposits can have a distinct feature of being withdraw able by cheques, which no other financial institution can offer. In addition to this banks also offer various other financial services also which include: Issuing Demand Drafts & Travelers Cheques Collection of Cheques, Bills of exchange Safe Deposit Lockers Issuing Letters of Credit & Letters of Guarantee Sale and Purchase of Foreign Exchange Custodial Services Investment services The business of banking is highly regulated since banks deal with money offered to them by the public and ensuring the safety of this public money is one of the prime responsibilities of any bank. That is why banks are expected to be prudent in their lending and investment ac