Upload
daniella-armstrong
View
216
Download
2
Tags:
Embed Size (px)
Citation preview
Indian Banking 2020Giving wings to corporate
aspirations
Indian Banking 2020Giving wings to corporate
aspirations
2Giving wings to corporate aspirations
1,367
1,587
2,261
1,922
0
500
1,000
1,500
2,000
2,500
20102009
Profit Before Tax (Rs Crore)
Wholesale BankingRetail Banking
Source: IBA, Capitaline, Company ARs, BCG analysis
Segment contribution: Average for leading Indian banks
Corporate banking – a significant contributor to industry profits
3Giving wings to corporate aspirations
Top 3 new expectations from banks in the next decade
Sources: FICCI-BCG Market Survey; N = 100.
Small Medium Large
• Quality of relationship management
• Credit turnaround time
• All products that I need at one place
• Technology to integrate into my internal IT system
• All India presence / network
• Quality of relationship management
• Fund my M&A needs
• Support my international expansion
• Technology to integrate into my internal IT system
4Giving wings to corporate aspirations
Strong growth will continue over the next decade – with a shift in mix
23 23
78
100
20
0
Deposits
Advances
Fee Income
I-Banking
Treasury
2020P
38
24
8
2008-09
46
20
4
%
80
60
40
CAGR (09-20)
6x10x
7x
5x
6x
Corporate banking revenue pools
5Giving wings to corporate aspirations
Mixed views about prospects of disintermediation in corporate banking
Survey Q: Wholesale market in India will get disinter mediated and corporate will by pass banks to raise funds
9
18
36
27
9
0 50 100
7
29
64
0 50 100
No Opinion
Highly Unlikely
Unlikely
Likely
Highly Likely
% respondents % respondents
Public
Private/Foreign
Public Private/Foreign
Note : Sample Size - 14-PSU banks, 7-private banks, 4-Foreign BanksSource: IBA-BCG Market Survey 2010
6Giving wings to corporate aspirations
"Winners" see the crisis as an opportunity
Despite crisis, leading corporate banks generating strong and growing economic profit
Outperformance possible in all segments
'Transaction champion' strategy drives superior results
Superior risk management a major performance differentiator
Data transparency still a major challenge for corporate banks
'Blue Chip Corporate Banks' positioned to significantly outperform in coming years
Despite crisis, leading corporate banks generating strong and growing economic profit
Outperformance possible in all segments
'Transaction champion' strategy drives superior results
Superior risk management a major performance differentiator
Data transparency still a major challenge for corporate banks
'Blue Chip Corporate Banks' positioned to significantly outperform in coming years
Source: BCG Corporate Banking Benchmarking Study 2010
7Giving wings to corporate aspirations
Key success factors to win in Corporate Banking
Key Success Factors to win in Corporate Banking
End-to-endtransparen
cy
End-to-endtransparen
cy
•Transaction banking a major priority
•Solutions driven from clients' pain points
•Sales major focus for value creation
Premium client relationships
Transactionchampion
model
Risk culture
•Targeting high value client clusters
•Client experience driven distribution model
•Embedded risk understanding from front to back office
•Discipline to focus on core client relationships with multiple products
Enablers
Highperforman
ceorganizatio
n
Highperforman
ceorganizatio
n
8Giving wings to corporate aspirations
How will the corporate banking industry meet the "next decade's promise"?
How will the corporate banking industry meet the "next decade's promise"?How can the Indian banking industry best meet the evolving needs of large corporates?
• How important would it be for banks to have - international presence? Scale?
How would the investment banking industry evolve in India over the next 5-10 years?
• What does it mean – for Indian commercial banks? For Indian investment banks?
How can the Indian banking industry best meet the evolving needs of large corporates?
• How important would it be for banks to have - international presence? Scale?
How would the investment banking industry evolve in India over the next 5-10 years?
• What does it mean – for Indian commercial banks? For Indian investment banks?