“Emerging Trends in the Banking Segment”BFSI Workshop organised by

MTL Manipalfor the National Marketing Team

‘Banking in next 5 to 10 years in India – Changes in Customer Offerings, Service Models, Outsourcing and Impact of

Technology’

Prof Chowdari PrasadDean (PR) & Chairman-Admissions

TAPMI, ManipalJan 10, 2014

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SBI & ITS (18) ASSOCIATES1.SBI Capital Markets Ltd

2.SBI Funds Management Private Ltd

3.SBI Factors & Comm’l Services Pvt Ltd

4.SBI Cards & Paym’ts Services Pvt. Ltd.

5.SBI DFHI Ltd

6.SBI General Insurance Co Limited

7.SBI Pension Funds Pvt Ltd (SBIPFPL) Besides, it has 5 Subsidiaries, 3 Foreign Associates and 3 Joint Ventures

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Key Subsidiaries of ICICI Bank1. ICICI Prudential LIC 2. ICICI Lombard General Insurance Company3. ICICI Prudential Asset Management Company4. ICICI Venture Funds Management Company5. ICICI Securities6. ICICI Securities Primary Dealership7. ICICI Bank UK plc8. ICICI Bank Canada

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Products & Services of a Bank – through segmentation : Personal / Corporate / SME / NRI / International / Agricultural customers

• DEPOSITS– Current Accounts & Savings Accounts (CASA)– Recurring Deposits / Fixed Deposits/ Others

• ADVANCES– Cash Credit, Demand Loans, Term Loans, etc– Car Loan, Educational Loan, Housing and Gold Loans

• OTHER SERVICES– Safe Deposit Lockers, Safe Custody, PMS, Collections

• INVESTMENTS

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Indian Banking SystemS No Types of Banks Number

01 State Bank of India & Associates (SBH, SBM, SBT, SBP, SBBJ) 6

02 Public Sector Banks (14 + 6 -1 + 1 IDBI Bank) + BMB (2013*) 21

03 Old Private Banks (13) + New Private Banks (7) 20

04 Foreign Banks in India (limited branches / staff/operations) 43

05 Total Number of Commercial Banks (1+2+3+4) 90

06 Local Area Banks (1996) 4

07 Regional Rural Banks (1975 : Gross 196 and now merged) 64

08 Multi-State Urban Cooperative Banks 43

09 Single State Urban Cooperative Banks 1,563

10 Rural Cooperatives / Societies etc / State / District / PACs 93,551

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Banking Today – Branch NetworkSNo Type of

BanksRural

Semi-Urban Urban

Metro-politian Total

1 ASCB 26,493 25,009 19,027 18,033 88,562

2 Nationalised Banks

17,036 13,539 11,320 10,585 52,480

3 State Bank Group

7,088 6,015 3,760 3,318 20,181

4 Old Private Sector Banks

1,069 2,332 1,514 1,132 6,047

5 New Private Sector Banks

1,292 3,113 2,368 2,749 9,522

6 Foreign Banks 8 10 65 249 332

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All Scheduled Com Banks – Profilesfor the year 2012-13 ( Amount in Rs Million)

S No

Type of Banks/ Details

SBGrp Nat’Bks Old PBs New PBs Fn Bks Tot Bks

1 No. of Banks 6 20 13 7 43 89

2 No. of Offices 21,301 54,478 6,283 9,718 334 92,114

3 No. of Employees

2,93,965 5,07,694 66,208 2,03,733 25,384 10,96,984

4 Business per Employee

101.97 142.23 97.24 93.03 217.33 121.33

5 Profit per Employee

0.60 0.65 0.75 1.18 4.56 0.83

6 Deposits 16184449 41272523 3738964 10219391 2879997 74295324

7 Advances 13792240 30935500 2699373 8733113 2636799 58797025

01 Agricultural Banking 02 Anywhere Banking 03 Any time Banking

04 Barefoot Banking 05 Branch Banking 06 Business Banking

07 Cooperative Banking 08 Commercial Banking 09 Convenience Banking

10 Core Banking 11 Corporate Banking 12 Correspondent Banking

13 Central Banking 14Developmental Banking

15 Door Step Banking

16 E-Banking 17 Eco-Friendly Banking 18 Ethical Banking

19 Faceless Banking 20 Giri Giri Banking 21 Green Banking

22 Home Banking 23 International Banking 24 Internet Banking

25 Investment Banking 26 Inter-State Banking 27 Innovative Banking

28 Islamic Banking 29 Inclusive Banking 30 Lazy Banking04/19/2023 11BFSI Workshop for MTL, Manipal

31 Lean Banking 32 Lombard Banking 33 Mobile Banking

34 Narrow Banking 35 Online Banking 36 Overseas Banking

37 Palm Top Banking 38 Paper-less Banking 39 Personal Banking

40 Pigmy Banking 41 Priority Banking 42 Private Banking

43 Retail Banking 44 Relationship Banking 45 SMS Banking

46 Shadow Banking 47 Sustainable Banking 48 Tele-Banking

49 Transaction Banking 50 Universal Banking 51 Unit Banking

52 Video Banking 53 Virtual Banking 54 Village Banking

55 Wholesale Banking 56 Women’s World Banking

Social? Micro? Gold / Tab / FB /Community / Rural Banking???

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IT & DEVELOPMENTS

• ALPMs• CLEARING HOUSE• CAR,CRR,SLR,PS,NPAs• CREDIT/DEBIT CARDS• NICNET,I-NET, RABMN• INFINET, RBINET• BANKNET, NDS, SFMS• MICR, ATMs, SWIFT• DEMAT, IT ACT-2000• INTERNET BANKING• ECS, EFT, SEFT, RTGS• CROSS SELLING• Interest Rate Deregulation

• ALM & RM, MIS• CRM, KYC• Core Banking Solutions• KISAN /SME CARD• CREDIT INFO BUREAU• DISASTER MANAGEMENT• Cheque Truncation• CYBER CRIMES –

HACKING, PHISHING, VISHING, PHARMING, TROJAN, SKIMMING, ETC

• SMART CARDS• Anti Money Laundering?

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Banks in India 2013 : CASA

Floating ATM of State Bank of India

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10 Varieties of ATMs in India1. On-site ATMs2. Off-site ATMs3. Solar based ATMs4. Bio-metric ATMs (for

illiterate customers)5. Floating ATMs (SBI)6. Mobile ATMs (Van)7. Micro ATMs

8. White-labelled ATMs9. Brown-labelled ATMs10. And now…..Talking ATMs (for blind in Canada : Oct 22,1997) -from UBI in Ahmedabad in Sept 2012; -50 by NCR at India’s Passport Offices!

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All Scheduled Com Banks – ATMsfor the year 2012-13

SNo Name of Bank type

On-site ATMs

Off-site ATMs

Total ATMs

Total Branches

% ATMs to

Branches

1 ASCBs 55,760 58,254 114,014 88,562 129

2 Nationalised Banks

21,533 15,528 37,061 52,480 71

3 State Bank Group

18,708 13,883 32,591 20,181 162

4 Old Private Sector Banks

4,054 3,512 7,566 6,047 125

5 New Private Sector Banks

11.182 24,353 35,535 9,522 373

6 Foreign Banks 283 978 1,261 332 382

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List of Applicants for New Banking Licences

1. Aditya Birla Group (incl Idea Cellular, etc)2. Bajaj Finance / Bajaj Auto / Bajaj Group3. Bandhan Financial Services (MFI)4. Edelweiss Financial Services5. IDFC – infrastructure lender, PE, MF, etc6. IFCI – Financial Consultancy and advisory co7. Indiabulls Housing Finance Ltd – NBFC8. India Post – Govt – Min Com & IT9. India Infoline, part of IIFL Group - NBFC

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List of Applicants for New Banking Licences-2

10. INMACS Management Services Ltd11. Janalakshmi Financial Services, MFI12. JM Financial, for Citi Group CEO Mr Vikram Pandit be non-executive Chairman13. LIC Housing Finance, unit of LIC of India14. L&T Finance Holdings, Engineering company15.Magma Fincorp, NBFC 16. Muthoot Finance – gold loans company17. Reliance Capital – Reliance Group AA

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List of Applicants for New Banking Licences-3

18. Religare Capital, of Singh Bros; Fortis Health19. Shriram Capital, Shriram Group / Transport20. Smart Global Ventures21. SREI Infrastructure Finance22. Suryamani Financing Co23. Tourism Finance Corp of India 24. UAE Exchange India – foreign exchange services25. Value Industries of Video IndustriesWithdrawn: Mahindra / Tata / SKS Microfinance

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Banking Tomorrow• Basel III compliance and capital requirements• NPA management to maintain global standards• Nachiket Mor Committee recommendations• GOI moves / Financial Inclusion efforts• Aadhar Card link to all Bank Accounts• Credit and Debit Cards to increase• Mobile Banking / ATM usage to increase• Profitability / Productivity / Cost effectiveness

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Non-Banking Finance Companies

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Insurance Industry in India• Insurance in simple terms, is Risk Management• 1st Co – Oriental Life Insurance Co in 1818• Bombay Mutual Life Assurance Society – 1st Life

Insurance Company in 1870• 1912 – Enactment to regulate insurance biz• 1928 – Law to enable Govt to collect data…• 1938 – Amendment to protect public interest• 1956 – Nationalisation of 245 companies

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Insurance Industry in India-2

• 1956 – LIC Act passed• 1956 – General Insurance

• Life / General / Health Insurance…• Regulated by IRDA, Hyderabad from 1999

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Insurance Companies in India

• Gen Insurance : PUBLIC SECTOR COMPANIES– National Insurance Company Ltd– Oriental Insurance Company Ltd– United India Insurance Company Ltd– New India Assurance Company Ltd

• Export Credit Guarantee Corporation of India• Agriculture Insurance Company of India Ltd(• GIC Re (Public Sector Re-insurance company)

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Insurance Companies in India-2

• PRIVATE SECTOR COMPANIES – Gen Insurance– Bharati AXA General Insurance– Future Generali India – HDFC ERGO General Insurance– ICICI Lombard– IFFCO Tokio– Liberty Videocon– L&T General Insurance– …………………………………………

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Insurance Companies in India-3• Life Insurance Corporation of India – Public Sec• PRIVATE SECTOR : LIFE INSURANCE COMPANIES– Aegon Religare Life Insurance– Edelweiss Tokio Life Insurance– Aviva India– ………………………………………– ………………………………………– Max, Kotak, ING, PNB, Reliance, Sahara, SBI, TATA

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Health Insurance in India : July 2011

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Insurance Industry in India?

• Future of the sector looks bright• Potential to grow from US$ 72 bn in 2012 to US$

280 billion by 2020• Favourable regulatory environment• Encourages foreign investors to insurance• Effective distribution channels• Focus on overall financial / insurance inclusion• Product innovation / dynamic distribution

channels and vibrant publicity campaigns

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Health Insurance • Upcoming segment• Caters to 10 per cent of overall US$ 30 bn

healthcare expenditure• Life Insurance contributes about 4 per cent to

India’s GDP in terms of total premiums written• LIC has about 71 per cent market share• General Insurance grew by 19.6% in May-June’13

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New Developments / Product Launches

• Co’s will have more freedom to invest in sectors such as IT and Pharmaceuticals

• The e-KYC services used by UIDAI will be accepted as a valid verification process…

• E-Document will be digitally signed by UIDAI• UIICI to open 530 new Offices; collected total

premiums worth Rs. 9,266 cr and set a target of Rs. 11,000 cro for 2013-14